Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB · BMV:CEMEX/CPO
Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB — Cemex SAB DE CV — Q1 2019 Earnings Presentation
23 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, May 7, 2019
Slide 1: 1Q 2019 Results
Exhibit 2 1Q 2019 RESULTS April 26, 2019
Slide 2: Forward-looking statements
This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forw
Slide 3: 2019 Updates
2019 Updates Major works for Solid Cement new line expansion to start in 2019 Implement new supply chain initiatives to lower distribution cost as a percentage to sales by 1 to 2 pp Further increase in cement production via lower clinker utilization Shift in coal mix for greater cost efficiency Sche
Slide 4: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices 1Q19 vs. 1Q19 vs. 1Q18 4Q18 Domestic Volume (1%) 9% Cement Price (PHP) 7% 4% Domestic cement volumes decreased by 1% year-over-year during the first quarter • Sales volumes were still recovering at the start of the year from the impact of the September 2018 landsli
Slide 5: Private Sector
Private Sector Strong demand growth seen during the quarter, with the residential segment growing faster than the non-residential segment. Construction employment rose by 13% year-over-year during the first quarter and reached its highest all-time level. Residential segment growth is expected to con
Slide 6: Public Sector Disbursements on Infrastructure and Capital Outlays
Public Sector Disbursements on Infrastructure and Capital Outlays (in PHP billion)1 300 250 233 218 +31% +53% +49% 196 200 157 +34% 150 +26% 118 100 50 0 1Q18 2Q18 3Q18 4Q18 Jan—Feb 19 % Refers to year-over-year growth Source: 1 Department of Budget and Management; Department of Finance 2 Philippine
Slide 7: Cost of Sales
Cost of Sales Cost of Sales Fuel and Power (% of sales) (% of cost of sales) Fuel Power 63% 25% 27% 58% 12% 18% 21% 22%17% 18% 4Q17 4Q18 1Q18 1Q19 1Q18 1Q19 Cost of sales, as a percentage of sales, was 5 pp higher year-over-year mainly due to scheduled kiln maintenance in Solid Cement plant, and cem
Slide 8: Operating Expenses
Operating Expenses Distribution Selling and Administrative (% of net sales) (% of net sales) 19% 15% 13% 12% 1Q18 1Q19 1Q18 1Q19 Distribution expenses, as a percentage of sales, decreased by 4 pp year-over-year mainly due to supply-chain-optimization initiatives, and higher sales from cement imports
Slide 9: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA Variation1 17% 18% % Refers to operating EBITDA margin 1 Millions of Philippine Pesos Operating EBITDA during the quarter increased by 7% year-over-year due to savings in distribution expenses, while increased cost of sales were mitigated
Slide 10: Net Income
Net Income Net income for the quarter was 145% higher year-over-year at PHP 169 million mainly due to lower foreign-exchange losses and higher operating earnings. First Quarter (In Millions of Philippine Pesos) 2019 2018 % Var. Operating earnings 631 595 6% Financial expense, net (355) (249) (43%) F
Slide 11: 1Q 2019 Free Cash Flow & Guidance
1Q 2019 FREE CASH FLOW & GUIDANCE
Slide 12: Free Cash Flow
Free Cash Flow First Quarter 2019 2018 % var Operating EBITDA 1,096 1,021 7%—Net Financial Expense 355 249—Maintenance CAPEX 90 80—Change in Working Capital (283) (266)—Income Taxes Paid 92 104—Other Cash Items (net) (6) (2) Free Cash Flow after 848 858 (1%) Maintenance Capex Strategic CAPEX 65 114
Slide 13: 2019 Guidance
2019 Guidance Cement volumes 8-10% PHP 975 million Maintenance CAPEX Capital expenditures PHP 6,775 million Solid Cement Plant Expansion CAPEX PHP 7,750 million Total CAPEX 13
Slide 14: Solid Plant Expansion: A Strategic Investment
Solid Plant Expansion: A Strategic Investment This expansion will allow us to grow with the market, improve the logistics of our products, and continue to benefit from the long-term favorable outlook of the Philippines • Expected total investment of US$235 million • New line expected to start operat
Slide 15: Current proposal to increase Authorized Capital Stock
Current proposal to increase Authorized Capital Stock • CHP has submitted a proposal to increase Authorized Capital Stock from 5.2 B to 18.3 B shares with a par value of PHP 1.00 per common share for approval at its Annual Shareholders’ Meeting to be held on June 5, 2019:—The par value is not the is
Slide 16: Focused Strategy: Improving Profitability and Capturing Growth
Focused Strategy: Improving Profitability and Capturing Growth 1. Expand integrated cement capacity in the largest market in the Philippines 2. Continue to enhance profitability by optimizing distribution channels and plant operations 3. Ensure safe and sustainable business operations 4. Provide sup
Slide 17: Q&A Session
Macc | Peer Q&A SESSION 1Q 2019 RESULTS
Slide 18: Appendix
/ Mb ccmex | Prurrnes a 1Q 2019 7. APPENDIX (or a EE ee Ly PR Alaa ee ; i; : 4
Slide 19: Debt Information
Debt Information During the first quarter of 2019, SOLID Cement Corporation (“SOLID”) signed an Amendment Agreement to the subordinated revolving credit facility entered into last November 2018 with a related company, CEMEX Asia B.V., increasing the available principal amount from US$ 75 million to
Slide 20: Impact of PFRS on 2018 Income Statement
Impact of PFRS 16 on 2018 Income Statement Estimated Variation due 1 2018 2018 Pro Forma to PFRS 16 Cost of Sales (14,307) 80 (14,227) Gross Profit 9,111 80 9,190 Selling and Administrative (3,009) 10 (2,999) Expenses Distribution Expenses (4,735) 65 (4,671) Operating Earnings before Other 1,366 154
Slide 21: Impact of PFRS on 2018 Balance Sheet
Impact of PFRS 16 on 2018 Balance Sheet Estimated Variation due 1 2018 2018 Pro Forma to PFRS 16 Fixed Assets2 15,617 2,151 17,768 Deferred Tax Asset 720 54 774 Other Assets (Total) 31,482 54 31,536 Total Assets 55,854 2,205 58,059 Other Current Liabilities 5,146 454 5,600 Current Liabilities (Total
Slide 22: Definitions
Definitions PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products. Operating EBITDA Operating earnings before other expenses, net, plus depreciation and operating amortization. Free Cash Flow Operati
Slide 23: Contact Information
Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP chp.ir@cemex.com 23