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 — Q2 2020 Earnings Presentation
23 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Jul 28, 2020
Slide 1: 2Q 2020 Results
1Q19 Results 2Q 2020 Results July 28, 2020 Exhibit 3
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: COVID-19 Pandemic
COVID-19 Pandemic Solid Cement Plant suspended production and delivery of cement products in the third week of March and resumed operations on May 20, in compliance with government regulations. APO Cement Plant remains operational, complying with all government regulations and the necessary hygiene
Slide 4: Protect the health and safety of our employees and communities
Protect the health and safety of our employees and their families, customers, suppliers, and communities We implemented new hygiene and safety protocols to minimize the risk of COVID-19 threats in our operations, in adherence to local health regulations. Intensified internal information campaigns, a
Slide 5: Serve our customers safely and leverage CEMEX Go
Serve our customers safely and leverage CEMEX Go Our safety protocols apply not only within our facilities, but also to the trucks and vessels that deliver our products. Our CEMEX Go platform allows us to continue our sales and customer service in a virtual and safe manner. Enabled additional online
Slide 6: Prudently manage our costs and expenses
Prudently manage our costs and expenses Cost management remains an essential lever within our control during this time of pandemic. Reduce capital expenditures, and budgeted operating expenses for the remainder of 2020. On June 30, 2020, CHP reached an agreement with BDO Unibank, Inc. amending the T
Slide 7: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices Domestic cement volumes decreased by 31% year-over-year during the second quarter and by 30% on a sequential basis. Volume recovery month-on-month in May and June of 2020. On a year-to-date basis, domestic cement volumes decreased by 17% year-over-year, reflecting
Slide 8: Net Sales
-35% Net Sales As a result of lower volumes and prices, net sales decreased, year-over-year, by 35% during the second quarter and by 22% during the first half of 2020. Net Sales1 1 Millions of Philippine Pesos -22%
Slide 9: Private Sector
Private Sector Construction employment significantly declined year-over-year during the second quarter due to COVID-19 quarantine measures. The ban on construction works imposed during the start of the Luzon ECQ and eventual decline in business activity led to the drop in employment. Residential sec
Slide 10: Public Sector
Public Sector During April and May of 2020, infrastructure cash disbursements reached Php 79.1 B, representing an 11.9% contraction year-over-year. The decline is mainly attributed to the prolonged ECQ in Luzon and the implementation of stricter quarantine measures in other areas in the country, whi
Slide 11: Cost of Sales
Cost of Sales Cost of sales was at 61% of sales during the first six months of 2020, compared with 59% in the same period of 2019. Postponed all major kiln maintenance to the second half of 2020. Optimized operations of our kilns in APO Plant, as part of working capital initiatives. Total fuel cost
Slide 12: Operating Expenses
Operating Expenses Distribution expenses, as a percentage of sales, was at 18% for 6M20. Measures to control distribution expenses limited the increase in our cost to 1.4 percentage points of sales year-over-year despite the significant reduction in sales volumes. Selling and administrative expenses
Slide 13: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA for the first six months of 2020 decreased by 22% year-over-year. 2Q20 was adversely affected by lower activity due to COVID-19 quarantine measures, as operating EBITDA decreased by 40%. Operating EBITDA margin was at 19% for the first ha
Slide 14: Net Income
Net Income Net income was at PHP 135 million for the first six months of 2020. Operating earnings were adversely affected by lower activity due to COVID-19 quarantine measures. Income tax during the first half of the year reflects an increase in deferred tax assets related to Net Operating Loss Carr
Slide 15: Free Cash Flow & Guidance
Free Cash Flow & Guidance 1q19 Free Cash Flow 2Q 2020
Slide 16: Free Cash Flow
Free cash flow after maintenance CAPEX for the first six months of 2020 was at PHP 45 million. Working capital reflected the use of cash as we continued to make payments to suppliers, while payables were lower due to reduced purchases from lower production. Strategic CAPEX for the first half of the
Slide 17: Solid Cement Plant Capacity Expansion
Implemented strict health and safety protocols, and preventive measures to reduce the risk of COVID-19 in our project site. Civil works started again in mid-May, after the easing of Community Quarantine measures in Antipolo, Rizal. Our contractors continue to work on the different buildings and stru
Slide 18: Q&A Session
Q&A SESSION 2Q 2020
Slide 19: Appendix
1Q19 appendix APPENDIX 2Q 2020
Slide 20: Debt Maturity Profile
Debt Maturity Profile Total Debt: PHP 13,681 Avg. life of debt1: 5.1 years Net Debt to EBITDA2: 2.3x All amounts in millions of Philippine Pesos 1 Based on weighted average life of debt 2 Last 12 months Consolidated EBITDA
Slide 21: Additional Debt Information
Additional Debt Information Note: All amounts in millions of Philippine Pesos, except percentages and ratios 1 U.S. dollar debt converted using end-of-period exchange rates 2 Includes leases, in accordance with Philippine Financial Reporting Standards (PFRS) 3 Based on BDO Loan Facility financial co
Slide 22: Definitions
Definitions 6M20 / 6M19 Results for the first six months of the years 2020 and 2019, respectively 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 oth
Slide 23: Contact Information
Contact Information Stock Information PSE: CHP Investor Relations In the Philippines +632 8849 3600 chp.ir@cemex.com