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 2018 Earnings Presentation
26 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Jul 26, 2018
Slide 1: Results 2Q18
Mecmex | ton ae RESULTS 2Q18 July 26, 2048
Slide 2: Forward looking information
||Forward looking information 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 o
Slide 3: Financial Results Summary
||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -9% 626 572 -8% 305 -25% -4.8pp 280 -19% 1% -3.0pp 170 27 . 76 . 0% 128 . 3% 25 22 62 . 0% 22 6M17 6M18 2Q17 2Q18 6M17 6M18 2Q17 2Q18 6M17 6M18 2Q17 2Q18 3
Slide 4: Consolidated Volumes and Prices
||Consolidated Volumes andPrices 6M18 6M17 vs. 2Q18 2Q17 vs. 2Q18 1Q18 vs. Favorable cement volumes in Costa Rica, Guatemala and El Salvador, Volume -9% -8% -1% Domestic were more than offset by declines in gray Price (USD) 1% 3% -1% Panama, Colombia and Nicaragua, during cement 2Q18 YoY Price (LtL1
Slide 5: EBITDA Variation YTD
||EBITDA Variation YTD 18 -25% 170 -38 -2 -2 1 -2 1 128 EBITDA Vol Price O. Costs Dist SG&A Fx EBITDA YTD 17 YTD 18 27.1% 22.3% -4.8pp EBITDA EBITDA Margin Margin YTD 17 YTD 18 5
Slide 6: Regional Highlights 2Q Results
REGIONAL HIGHLIGHTS 2Q 1 8 R e s u l t s
Slide 7: Results Highlights Colombia
Results Highlights Colombia
Slide 8: Colombia – Results Highlights
||Colombia –Results Highlights The persistent weakness in 6M18 6M17 % var 2Q18 2Q17 % var construction activity as well as the uncertainty around Net Sales 265 291 -9% 129 135 -5% Financial presidential elections affected cement Summary Op. EBITDA 46 60 -23% 22 23 -4% consumption; we estimate that d
Slide 9: Colombia – Residential Sector
||Colombia –Residential Sector We estimate that industry cement dispatches for this sector declined in the mid-single digits during 6M18 Low-income housing sales increased double digits YTD May vs. August-to-December 2017. Housing permits in this segment also increased double digits YTD May on a YoY
Slide 10: Colombia – Infrastructure Sector
||Colombia –Infrastructure Sector Our volumes improved in this sector during 2Q18, supported by two relevant projects in Bogotá, the PTAR Salitre water-treatment plant and the CTIC hospital We increased dispatches to three 4G projects, Autopista Mar 1, Autopista al Rio Magdalena 2 and Bucaramanga-Ba
Slide 11: Results Highlights Panama
Results Highlights Panama
Slide 12: Panama – Results Highlights
||Panama –Results Highlights The construction-workers 6M18 6M17 % var 2Q18 2Q17 % var strike impacted heavily Financial Net Sales 111 141 -21% 50 72 -30% during the quarter as it lasted 30 days; Summary Op. EBITDA 35 58 -40% 14 27 -46% from our 26% cement volume decline, US$ Million about 16pp were
Slide 13: Panama – Sectors Highlights
|| Panama –Sectors Highlights Ongoing infrastructure projects should provide volume support for the rest of the year, particularly the Panama Northern Corridor, the Transismica Road rehabilitation, the 2nd line of the subway, as well as the Tocumen-airport expansion The government recently awarded t
Slide 14: Results Highlights Costa Rica
Results Highlights Costa Rica
Slide 15: Costa Rica – Results Highlights
||Costa Rica –Results Highlights Our 2Q18 cement and ready- 6M18 6M17 % var 2Q18 2Q17 % var mix volumes increased by Financial Net Sales 79 77 3% 43 39 10% 18% and 29%, respectively. We estimate that our market presence Summary Op. EBITDA 25 27 -6% 16 15 6% improved due to the participation in proje
Slide 16: Costa Rica – Sector Highlights
|| Costa Rica –Sector Highlights For the rest of 2018 demand for our products should be supported by ongoing projects like a wholesale market and the new building for the Parliament, as well as already contracted highway maintenance works Two road projects expected to start this year, Ruta 32 Cruce
Slide 17: Results Highlights Rest of CLH
Results Highlights Rest of CLH
Slide 18: Rest of CLH – Results Highlights
||Rest of CLH –Results Highlights 6M18 6M17 % var 2Q18 2Q17 % var Results heavily affected by Net Sales 124 132 -6% 61 66 -8% lower sales in Nicaragua Financial due to the political unrest that started in mid-Summary Op. EBITDA 41 48 -16% 19 24 -18% April and intensified in following months US$ Mill
Slide 19: Nicaragua – Sector Highlights
|| Nicaragua –Sector Highlights Cement volumes during the quarter declined by 22% because of the political unrest that started in mid-April and has intensified since then. The crisis has led to generalized uncertainty and most private investment has been halted Projects funded by the private sector
Slide 20: Guatemala – Sector Highlights
|| Guatemala –Sector Highlights Our cement and ready-mix volumes increased by 6% and 46%, respectively, during 2Q18 reaching quarterly-record levels in both businesses Increased cement volumes to retailers and to our ready-mix operations, more than compensated lost volumes from two mining projects t
Slide 21: Free Cash Flow 2Q Results
FREE CASH FLOW 2Q 1 8 R e s u l t s
Slide 22: Free Cash Flow
||Free Cash Flow Free cash flow increased by US$ Million 6M18 6M17 % var 2Q18 2Q17 % var . EBIT 60% during 2Q18 Operating EBITDA 128 170 -25% 62 76 -19% reaching US$46M compared to US$29M in the same period of 2017—Net financial expense 29 32 14 15—Maintenance Capex 15 23 9 13 Lower financial expens
Slide 23: Guidance
j Sy M MM ecmex | Hoones | GUIDANCE
Slide 24: 2018 Guidance
||2018 Guidance Volume YoY% Consolidated volumes:—Cement: -8% to -10% Cement Ready—Mix Aggregates Colombia—Ready-mix: -5% to -7% -7% to -9% -8% to -10% -10% to -12%—Aggregates: -5% to -7% Cement Ready—Mix Aggregates Total Capex US$55M Panama Maintenance Capex US$50 M -13% to -15% -4% to -8% 3% to 6%
Slide 25: Consolidated debt as of June 30, 2018
||Consolidated debt as of June 30, 2018 US$ Million 555 US $895 M Total debt 209 130 3.2x Net Debt / EBITDA 2018 2020 2023 Type Currency Cost US$ M Interest Rate Banks COP 8.80% 15 Intercompany USD 6ML + 250 bps 130 Variable Intercompany USD 6ML + 255 bps 194 38% Intercompany USD 5.65% 555 Fixed 62%
Slide 26: Results 2Q18
Mecmex | ton ae RESULTS 2Q18 July 26, 2048