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 2018 Earnings Presentation
29 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Apr 26, 2018
Slide 1: 2018 First Quarter Results
2018 First Quarter Results Exupery International School and Kindergarten, Latvia
Slide 2: Forward-looking statements
This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends, but are not limited to, these forward-looking statements to be covered by the safe harbor provisions for for
Slide 3: Operating EBITDA adjusted for seasonal effects remained flat during 1Q18
Operating EBITDA adjusted for seasonal effects remained flat during 1Q18 EBITDA variation Operating EBITDA during 1Q18 adjusted for fewer business days and an inventory costing-variation effect remained flat on a 0% year-over-year basis; expect these seasonal -4% effects to reverse in upcoming month
Slide 4: On a like-to-like basis, operating EBITDA declined 6%
On a like-to-like basis, operating EBITDA declined 6% EBITDA variation Consolidated daily volumes for cement -4% and ready-mix increased by 3% and 1%, respectively, on a like-to-like basis while -6% daily aggregates volumes remained flat 56 Higher consolidated prices for our three core products on a
Slide 5: Free cash flow reflects increased seasonal working-capital requirements
Free cash flow reflects increased seasonal working-capital requirements which should reverse during rest of the year 535 Free cash flow Controlling interest net income -92% 336 173 78 26 361 50 26 -154 9 -162 EBITDA Net fin. Maint. WC Taxes Other1 FCF Stra- FCF 1Q17 1Q18 1Q18 Exp CapEx after tegic 1
Slide 6: Total debt plus perpetuals remained practically flat during the quarter
Total debt plus perpetuals remained practically flat during the quarter Total debt plus perpetuals variation 0% 11,349 386 11,352 148 162 79 4Q17 Cash balance Debt FX effect FCF after Other 1Q18 variation strategic CapEx Millions of U.S. dollars 6
Slide 7: First Quarter 2018 • Regional Highlights
First Quarter 2018 • Regional Highlights Therapeutic pools for the school La Esperanza, Puerto Rico
Slide 8: Mexico
Mexico l-t-l l-t-l Operating EBITDA increased by 5%, on a 3M18 3M17 % var % var 1Q18 1Q17 % var % var like-to-like basis during 1Q18, with a margin Net Sales 800 725 10% 3% 800 725 10% 3% expansion of 0.5pp Op. EBITDA 299 267 12% 5% 299 267 12% 5% Daily ready-mix volume improvement reflects favorabl
Slide 9: United States
United States l-t-l l-t-l Like-to-like EBITDA margin declined by 1.5 3M18 3M17 % var % var 1Q18 1Q17 % var % var percentage points, reflecting inventory Net Sales 856 815 5% 7% 856 815 5% 7% costing-variation effect, higher maintenance, Op. EBITDA 109 117 (6%) (4%) 109 117 (6%) (4%) geographic and p
Slide 10: South, Central America and the Caribbean
South, Central America and the Caribbean l-t-l l-t-l On a like-to-like basis, regional daily cement, 3M18 3M17 % var % var 1Q18 1Q17 % var % var ready-mix and aggregates volumes Net Sales 464 480 (3%) (7%) 464 480 (3%) (7%) decreased by 4%, 10% and 5%, respectively Op. EBITDA 105 133 (21%) (23%) 105
Slide 11: Europe
Europe Decrease in quarterly regional volumes for our l-t-l l-t-l 3M18 3M17 % var % var 1Q18 1Q17 % var % var three core products mainly due to adverse weather conditions in many of our markets; Net Sales 805 737 9% (5%) 805 737 9% (5%) regional prices for our three core products up Op. EBITDA 15 32
Slide 12: Asia, Middle East and Africa
Asia, Middle East and Africa l-t-l l-t-l Increase in regional daily cement volumes 3M18 3M17 % var % var 1Q18 1Q17 % var % var of 24% during the quarter reflecting double- Net Sales 375 326 15% 13% 375 326 15% 13% digit growth in the Philippines and Egypt Op. EBITDA 62 64 (3%) (3%) 62 64 (3%) (3%) I
Slide 13: First Quarter 2018 • 1Q18 Results
First Quarter 2018 • 1Q18 Results Torre Reforma, Mexico
Slide 14: Operating EBITDA, cost of sales and operating expenses
Operating EBITDA, cost of sales and operating expenses January—March First Quarter Operating EBITDA during the quarter l-t-l l-t-l impacted by seasonal effects; remained 2018 2017 % var % var 2018 2017 % var % var Net sales 3,381 3,142 8% 2% 3,381 3,142 8% 2% flat on a year-over-year basis when adju
Slide 15: Free cash flow
Free cash flow January—March First Quarter Average working capital days during 2018 2017 % var 2018 2017 % var 1Q18 decreased to negative 13, from Operating EBITDA 535 557 (4%) 535 557 (4%) negative 1 day in 1Q17 —Net Financial Expense 173 224 173 224 Average working capital days —Maintenance Capex
Slide 16: Other income statement items during 1Q18
Other income statement items during 1Q18 Gain on financial instruments of US$34 million mainly resulting from derivatives related to CEMEX and GCC shares Foreign-exchange loss of US$82 million resulting primarily from the fluctuation of the Mexican peso versus the U.S. dollar, partially offset by th
Slide 17: Debt-related information
Debt-related information Total debt plus perpetuals variation by security 0% Redeemed €400 million, the full 11,349 478 11,352 outstanding aggregate principal amount of the 4.75% notes due in January 2022 79 31 341 Redeemed US$341 million, the full 365 outstanding aggregate principal amount 700 of t
Slide 18: CEMEX consolidated debt maturity profile
CEMEX consolidated debt maturity profile Total debt excluding perpetual notes as of March 31, 2018: US$10,902 million Credit Agreement Other bank debt Fixed Income Avg. life of debt: 5.1 years Convertible Subordinated Notes 2,511 1,882 1,970 1,154 1,234 997 677 436 41 2018 2019 2020 2021 2022 2023 2
Slide 19: Funded Debt under Credit Agreement increased in 1Q18
While total debt plus perpetuals remained flat, Funded Debt under Credit Agreement increased in 1Q18 Consolidated Funded Debt1 (CFD) variation Leverage ratio as defined under our Credit Agreement reached 4.22x, from 10,802 3.85x in 4Q17, mainly due to increase in Consolidated Funded Debt 215 79 Conv
Slide 20: First Quarter 2018 • 2018 Outlook
First Quarter 2018 • 2018 Outlook Pharmax Pharmaceutical, United Arab Emirates
Slide 21: 2018 guidance
2018 guidance Cement: 2% to 3% Consolidated Ready mix: 3% to 4% volumes Aggregates: 1% to 2% Energy cost per ton of cement Increase of approximately 4% to 6% produced US$550 million Maintenance CapEx Capital US$250 million Strategic CapEx expenditures US$800 million Total CapEx Investment in US$0 mi
Slide 22: First Quarter 2018 • Appendix
First Quarter 2018 • Appendix Chase Center, USA
Slide 23: Consolidated volumes and prices
Consolidated volumes and prices 3M18 vs. 3M17 1Q18 vs. 1Q17 1Q18 vs. 4Q17 Consolidated daily volumes for cement Volume (l-t-l1) 2% 2% (6%) and ready mix increased by 3% and 1%, Domestic gray respectively, on a like-to-like basis, while Price (USD) 5% 5% 4% cement aggregates volumes remained flat Pri
Slide 24: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes First Quarter Fourth Quarter 2018 2017 % var 2017 Other Total debt1 10,902 12,164 (10%) 10,901 7% Short-term 4% 7% 12% Euro Currency 26% Long-term 96% 93% 88% denomination U.S. dollar Perpetual notes 450 439 2% 448 66% Total debt plus perpetual note
Slide 25: Additional information on debt
Additional information on debt First Quarter Fourth Quarter 2018 % of total 2017 % of total 2017 % of total Total debt1 by instrument Fixed Income 6,203 57% 8,080 66% 6,984 64% 2017 Credit Agreement 3,666 34% 2,192 18% 2,549 23% Convertible Subordinated Notes 509 5% 1,166 10% 870 8% 5% 5% Others 524
Slide 26: 1Q18 volume and price summary: Selected countries
1Q18 volume and price summary: Selected countries Domestic gray cement Ready mix Aggregates 1Q18 vs. 1Q17 1Q18 vs. 1Q17 1Q18 vs. 1Q17 Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico (4%) 12% 5% 5% 17% 10% 8% 12% 5% U.S. 4% 2% 2% 8% 1% 1% 5% 4
Slide 27: 2018 expected outlook: Selected countries
2018 expected outlook: Selected countries Domestic gray cement Ready mix Aggregates Volumes Volumes Volumes Consolidated1 2%—3% 3%—4% 1%—2% Mexico 2%—3% 4%—5% 4%—5% United States1 2%—4% 2%—4% 2%—4% Colombia (2%)—0% (1%)—1% 0%—1% Panama (4%)—0% 5%—7% 6%—8% Costa Rica 2%—4% (2%)—0% 5%—7% UK (1%)—1% (1
Slide 28: Definitions
Definitions 3M18 / 3M17 Results for the first three months of the years 2018 and 2017, respectively AMEA Asia, Middle East and Africa Cement When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported cement volumes changed from total d
Slide 29: Contact information
Contact information Investor Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1 29