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 — Q3 2020 Earnings Presentation
24 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 29, 2020
Slide 1: 3Q 2020 Results
1Q19 Results 3Q 2020 Results October 29, 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 Economy gradually reopening, as lockdown measures from the second quarter were eased and more sectors could operate. Temporary reversion to stricter community quarantine measures by the government during the quarter, depending on the area and impact of the virus. Both our plants, S
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 Promoting and implementing our “Behaviors that Save Lives”, which include wearing of face masks and PPEs, physical distancing, frequent hand washing and sanitation, regular health checks and moni
Slide 5: Serve our customers safely and leverage CEMEX Go
Serve our customers safely and leverage CEMEX Go Our CEMEX Go platform enables digital construction solutions, with contactless ordering, billing, and real-time tracking. Dedicated customer service center and digitalization efforts further enhance our customers’ experience with us.
Slide 6: Prudently manage our costs and expenses
Prudently manage our costs and expenses Cost management has allowed us to partially mitigate the significant decline in our revenues during this time of pandemic. Included in these cost deferrals are maintenance expenses, some of which we are planning to spend in the fourth quarter. We continue to c
Slide 7: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices Domestic cement volumes decreased by 3% year-over-year during the third quarter due to the effects of the ongoing COVID-19 pandemic. Reimposition of stricter lockdown measures during the quarter, in areas including Metro Manila and nearby provinces, which returned
Slide 8: Net Sales
-6% Net Sales As a result of lower volumes and prices, net sales decreased, year-over-year, by 6% during the third quarter and by 17% during the first nine months of 2020. Net Sales1 1 Millions of Philippine Pesos -17%
Slide 9: Private Sector
Private Sector Activity in the residential sector was lower during the third quarter due to persisting COVID-19 risks and effects on the country. Some developers have revised expansion plans, likely to safeguard their balance sheets amid challenging market conditions. Improved remittances, together
Slide 10: Public Sector
Public Sector Infrastructure disbursements during the first two months (July – August) of the third quarter declined by 28.2% YoY to Php 96.6 billion from Php 134.5 billion in the same period last year. The decline is mainly attributed to muted construction activity amid the pandemic, and as Mega Ma
Slide 11: Cost of Sales
Cost of Sales Cost of sales was at 58% of sales during the first nine months of 2020, compared with 59% in the same period of 2019. Decrease was driven by lower costs and our efforts to contain expenses, amidst the pandemic. Planning to execute some major kiln maintenance works in the fourth quarter
Slide 12: Operating Expenses
Operating Expenses Distribution expenses, as a percentage of sales, was at 18% for 9M20. Total distribution expenses decreased by 14% year-over-year for 9M20. Selling and administrative expenses, as a percentage of sales, was at 14% for 9M20. Total S&A expenses were 8% lower year-over-year for 9M20.
Slide 13: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA for the first nine months of 2020 decreased by 5% year-over-year. 3Q20 benefitted from maintenance deferrals, lower costs, and controlling of expenses. Operating EBITDA margin was at 22% for the first nine months of 2020, as lower volumes
Slide 14: Net Income
Net Income Net income was at PHP 758 million for the first nine months of 2020, lower by 13% year-over-year due to the impact of the COVID-19 pandemic on operating earnings. Income tax during the first nine months of the year was lower due to an increase in the company’s deferred tax assets related
Slide 15: Free Cash Flow & Guidance
Free Cash Flow & Guidance 1q19 Free Cash Flow 3Q 2020
Slide 16: Free Cash Flow
Free cash flow after maintenance CAPEX for the first nine months of 2020 was around PHP 1.97 billion. Working capital movement during the third quarter reflected a return to normal operations, with higher payables due to resumed purchases of production materials. Strategic CAPEX for the first nine m
Slide 17: Solid Cement Plant Capacity Expansion
Works remained ongoing, with strict health and safety protocols, in line with government regulations. Our contractors continue to work on the different buildings and structures of the new line. We are coordinating with our contractors to optimize manpower and activities during this time of pandemic.
Slide 18: 2020 Guidance
2020 Guidance Capital expenditures PHP 800 million PHP 2,875 million PHP 3,675 million Maintenance CAPEX Solid Cement Plant Expansion CAPEX Total CAPEX
Slide 19: Q&A Session
Q&A SESSION 3Q 2020
Slide 20: Appendix
1Q19 appendix APPENDIX 3Q 2020
Slide 21: Debt Maturity Profile
Debt Maturity Profile Total Debt: PHP 13,510 Avg. life of debt1: 5.0 years Net Debt to EBITDA2: 1.7x All amounts in millions of Philippine Pesos 1 Based on weighted average life of debt 2 Last 12 months Consolidated EBITDA
Slide 22: 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 23: Definitions
Definitions 9M20 / 9M19 Results for the first nine 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 ot
Slide 24: Contact Information
Contact Information Stock Information PSE: CHP Investor Relations In the Philippines +632 8849 3600 chp.ir@cemex.com