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 — Investor Presentation (September 2020)
17 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's investor presentation, Sep 10, 2020
Slide 1: Introducing Operation Resilience: CEMEX's 2023 Strategy
Introducing Operation Resilience: CEMEX’s 2023 Strategy Fernando A. González, CEO Exhibit 99.1
Slide 2: Forward-looking statements
This presentation contains, and the reports we will file in the future may contain, forward-looking statements within the meaning of the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the
Slide 3: Operation Resilience: CEMEX's 2023 strategy
Operation Resilience: CEMEX’s 2023 strategy Enhancing margin through operational performance and disciplined cost containment Optimizing our portfolio for EBITDA growth Strategic asset divestments to streamline and rebalance our portfolio Bolt-on investments in core businesses within our footprint A
Slide 4: Effective response to immediate COVID-19 challenges
Effective response to immediate COVID-19 challenges Improve customer experience through “One CEMEX” commercial model, supported by digital platforms Minimize financial risk and maintain ample liquidity Prioritize health & safety of employees, customers and community to ensure continuous operations H
Slide 5: "V"-shaped recovery despite COVID-19 headwinds
“V”-shaped recovery despite COVID-19 headwinds V-shaped rebound in volumes coupled with pricing achievements On an average daily sales basis MEAA = Middle East, Africa and Asia Domestic gray cement MEAA US EUR MX SCAC 2020 CEMEX CEMEX 1H20 LC pricing YoY Cement3 +1% Aggregates +4% Ready mix +3% Ceme
Slide 6: Decisive 2H20 management actions
Decisive 2H20 management actions FY 2020 ~US$2.35B +4%1 YoY 3Q20 ~US$700M +12%1 YoY 1) On a like-to-like basis, adjusting for fx, as compared with 3Q19 and FY 2019 Expect stronger 2020 results with more visibility today on COVID-19 impact Sustainable COVID measures: US$140M of further savings in 2H2
Slide 7: 2H20 cash redeployment to pay down ~US$3B in debt
2H20 cash redeployment to pay down ~US$3B in debt 2H20 debt pay down plan 1) Figures in graph in millions of U.S. dollars 1
Slide 8: Improving upon our Bank Credit Agreement
Improving upon our Bank Credit Agreement US$4B 2017 Facilities Agreement will be reduced by ~US$600M Under proposed amendment to Facilities Agreement: 3-year extension of ~US$1.1B of Term Loans from 2022 to 2025 1-year extension of ~US$1.1B Revolver from 2022 to 2023 Incorporates sustainability-link
Slide 9: Operation Resilience provides framework for future growth
Operation Resilience provides framework for future growth Advance 2030 sustainability agenda A path for maximizing shareholder value Achieve investment grade capital structure EBITDA growth through margin enhancement Optimize our portfolio for growth
Slide 10: Comprehensive actions to enhance EBITDA
Comprehensive actions to enhance EBITDA Figures in graph in millions of U.S. dollars EBITDA margin target considering our current portfolio 2020 cost reduction initiatives equivalent to >200bps of sales ≥ 20% Target EBITDA margin by 2023 New 2020 cost reduction target of US$280M Targeting additional
Slide 11: Case study: Strong performance in US
Case study: Strong performance in US Management initiatives led to substantial EBITDA and EBITDA margin improvement +240bps Leveraging a strong footprint Expanded product offerings Investment in logistics and import facilities Switching to lower-cost fuels Low cost country sourcing Increased SG&A ef
Slide 12: Optimizing our portfolio for growth
Optimizing our portfolio for growth Undertake strategic divestments to streamline portfolio Continue to seek attractive, bolt-on investment opportunities in our markets Construct portfolio more weighted towards US and Europe Focus on vertically integrated positions in attractive metropolises Develop
Slide 13: Some examples of recent investments
Some examples of recent investments Rochester railway sleepers factory (London) Fully integrated prefabricated 2D panels (Madrid) Mobile modular hospitals (Mexico) Gennevilliers CDE waste recycling platform (Paris) Investments in attractive metropolises, following a sustainable urbanization approach
Slide 14: Achieving investment grade capital structure remains a top priority
Achieving investment grade capital structure remains a top priority ≤ 3.0x Target net leverage by 2023 Utilize EBITDA growth, free cash flow and divestiture proceeds to improve our capital structure Anticipate significant reduction in net debt Continue active liability management program Extend matu
Slide 15: Robust roadmap to address climate change targets
Robust roadmap to address climate change targets Target 2030 Ambition 2050 35% Further contribution from 2030 cement efforts Carbon capture, usage and storage Admixtures, binders and additions in concrete Recycled aggregates Recarbonation of concrete during lifetime Net specific C02 emissions per to
Slide 16: Creating superior returns for our shareholders
Creating superior returns for our shareholders Targeting EBITDA margin of ≥ 20% by 2023 Strategic divestments and reinvestments 35% reduction in net CO2 emissions by 2030 ≤ 3.0x net leverage by 2023 EBITDA margin target considering our current portfolio Per ton of cementitious product. Reduction vs.
Slide 17: Operation Resilience lays the foundation for the future of CEMEX
Operation Resilience lays the foundation for the future of CEMEX A leading vertically integrated heavy building materials company, with bias towards the US and Europe Focus on our four core businesses – cement, ready mix, aggregates and urbanization solutions Enhanced EBITDA through operational perf
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