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 (March 2019)
22 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's investor presentation, Mar 20, 2019
Slide 1: Casa Acolhúas, Mexico
Casa Acolhúas, Mexico Juan Pablo San Agustín EVP Strategic Planning and New Business Development José Antonio González CFO Exhibit 2
Slide 2: Forward-looking statements
These presentations contain 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 these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements
Slide 3: A Stronger CEMEX accelerates our path to investment grade
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders $150 M dividends plus opportunistic share
Slide 4: A Stronger CEMEX accelerates our path to investment grade
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders $150 M dividends plus opportunistic share
Slide 5: $230 M of recurring operational improvements to be achieved by 2020
$230 M of recurring operational improvements to be achieved by 2020 Low-cost sourcing Savings ($ M) $170 M to be captured in 2019
Slide 6: A Stronger CEMEX accelerates our path to investment grade
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic grow
Slide 7: Disciplined framework to identify our divestment pipeline
Disciplined framework to identify our divestment pipeline 1) Assets as of December 31, 2017 2) Including integrated plants and standalone mills 3) Land distribution centers and marine terminals Cement plants2 Aggregates quarries Ready-Mix plants Terminals3 Non core + more value for others CEMEX asse
Slide 8: On track to reach our 2020 asset sale target
On track to reach our 2020 asset sale target 1) Refers to Baltics and Nordics assets for $390 M, Brazil $31 M, FAS and other $53 M 2) Includes sale of German assets (€87 M) and most of our white cement business ($180 M) 3) Non Binding Offers Divestments pipeline ($ B) TEV/EBITDA >12X 1 3 2
Slide 9: A Stronger CEMEX accelerates our path to investment grade
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic grow
Slide 10: Another year of robust deleveraging
Another year of robust deleveraging Note: Figures in USD Millions except Total Debt + Perps (USD Billions) Total Debt + Perps Net Financial Expense FCF after Maintenance CapEx Net Income
Slide 11: Recent transactions and credit upgrade enhance debt profile
Recent transactions and credit upgrade enhance debt profile Fixed income Bank debt2 Issued €400 M of 3.125% notes due 2026 Partial redemption of the €550 M 4.375% notes due 2023 Consents received for1: Extending ~$1 B of Jul’20 and Jan’21 maturities for 3 years Incorporating IFRS 16 in calculations
Slide 12: Healthy debt profile with attractive cash cost of debt
1) Giving pro-forma effect to issuance of €400M of 3.125% notes due 2026 and partial redemption of €550M of 4.375% notes due 2023 and tenor extension of exchanging lenders and amendments becoming effective in bank debt agreement Bank Debt Pro-forma1 debt profile as of Dec. 31, 2018 (avg. life of 4.9
Slide 13: Significant upside from rerating of our cost of capital
Significant upside from rerating of our cost of capital 1) Source: Company’s financial statements as of Jun’18, Sep’18 and Dec’18 as available; 2) If split rating, the highest is shown 3) Net Financial Leverage calculated as Net Debt divided by EBITDA, CEMEX Net Debt includes perpetual notes BBB- B+
Slide 14: A Stronger CEMEX accelerates our path to investment grade
A Stronger CEMEX accelerates our path to investment grade 1) Asset divestments @10x TEV/EBITDA and FCF neutral 2) FCF of $1.0 B after considering possible dividend payment of $150 M during each year Investment grade metrics area x x 1 2
Slide 15: A Stronger CEMEX accelerates our path to investment grade
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic grow
Slide 16: Focused on shareholder value creation
Focused on shareholder value creation 1) Subject to shareholders approval in AGOM of March 2019 Returning cash to shareholders Dividends Share buybacks First cash dividend since 1996 $150 M dividend expected to be paid semiannually1 $75 M repurchased during 2018 (~1% of outstanding shares) Opportuni
Slide 17: A Stronger CEMEX accelerates our path to investment grade
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic grow
Slide 18: Capital recycling strategy maximizes value for shareholders
Capital recycling strategy maximizes value for shareholders Maximize shareholder value Identified $3 B of assets to optimize portfolio for growth Metropolis centric approach leveraging our related businesses and digital strategy Reach investment grade capital structure (leverage < 3x) by 2020 Portfo
Slide 19: Multi-dimensional approach to complement our organic growth
Multi-dimensional approach to complement our organic growth Detailed view of the markets at a metropolis level … … leveraging our current related business footprint Current related business EBITDA ≈ $200M Asphalt Pavement Multi products Modular construction Waste mgmt. Recycling Dry & special mortar
Slide 20: Boosted by CX Ventures' quest for new value propositions
Boosted by CX Ventures’ quest for new value propositions across the construction ecosystem 4 roadshows +3,000 startups reviewed 6 investments signed 1 ConTech fund participation +700 ideas received 6 ideas under incubation BuiltWorlds Venture Investors 50 List 2018 Address pain points in the constru
Slide 21: What to expect from us
What to expect from us Deliver $230 M benefit from cost savings program Optimize portfolio by divesting between $1.5 B to $2.0 B of assets Achieve leverage below 3.0x by 2020 Return cash to shareholders Create shareholder value through a cohesive growth strategy
Slide 22: Casa Acolhúas, Mexico
Casa Acolhúas, Mexico