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 2019 Earnings Presentation
23 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Apr 26, 2019
Slide 1: CEMEX Holdings Philippines 1Q 2019 Results
CEMEX Holdings Philippines 1Q 2019 RESULTS April 26, 2019
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: 2019 Updates
2019 Updates ? Major works for Solid Cement new Ceremonial groundbreaking on April 25 line expansion to start in 2019 ? Implement new supply chain Achieved 4 pp reduction year-over-year initiatives to lower distribution cost as in the first quarter a percentage to sales by 1 to 2 pp ? Further increa
Slide 4: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices 1Q19 vs. 1Q19 vs. Net Sales1 1Q18 4Q18 +6% Domestic Volume (1%) 9% Cement Price (PHP) 7% 4% Domestic cement volumes decreased by 1% year-over-year during the first quarter Sales volumes were still recovering at the start of the year from the impact of the September
Slide 5: Private Sector
Private Sector Strong demand growth seen during the quarter, with the Approved Building Permits residential segment growing faster than the non-residential segment. Year-over-year growth based on floor area1 Construction employment rose by 13% year-over-year 41% during the first quarter and reached
Slide 6: Public Sector Disbursements on Infrastructure and Capital Outlays
Public Sector Disbursements on Infrastructure and Capital Outlays Infrastructure and Capital Outlays in the first (in PHP billion)1 two months of 2019 grew by 26% mainly due 300 to payments of infrastructure projects and contracts that have recently been completed. 250 233 Groundbreaking for several
Slide 7: Cost of Sales
Cost of Sales Cost of Sales Fuel and Power Cost of sales, as a percentage of (% of sales) (% of cost of sales) sales, was 5 pp higher year-over-year mainly due to scheduled kiln Fuel maintenance in Solid Cement plant, and cement imports and outsourced Power clinker carried over resulting from the Na
Slide 8: Operating Expenses
Operating Expenses Distribution Selling and Administrative Distribution expenses, as a (% of net sales) (% of net sales) percentage of sales, decreased by 4 pp year-over-year mainly due to supply-chain-optimization initiatives, and higher sales from cement imports carried over resulting from the Nag
Slide 9: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA during the quarter increased by 7% year-over-year due to savings in distribution expenses, while Operating EBITDA Variation1 increased cost of sales were mitigated by higher year-over-year prices. 17% 17% Operating EBITDA margin was flat
Slide 10: Net Income
Net Income Net income for the quarter was 137% higher year-over-year at Net Income1 PHP 172 million mainly due to lower foreign-exchange losses and higher operating earnings. First Quarter (In Millions of Philippine Pesos) 2019 2018 % var Operating earnings 615 579 6% 172 Financial expenses, net (33
Slide 11: 1Q 2019 Free Cash Flow & Guidance
1Q 2019 FREE CASH FLOW & GUIDANCE
Slide 12: Free Cash Flow
Free Cash Flow First Quarter Free cash flow during the first quarter 2019 2018 reached PHP 826 million after % var maintenance CAPEX and PHP 761 Operating EBITDA 1,074 1,000 7% million after strategic CAPEX. —Net Financial Expenses 334 228 —Maintenance Capex 90 80 —Change in Working Capital (263) (2
Slide 13: 2019 Guidance
2019 Guidance Cement volumes 8-10% PHP 975 million Maintenance CAPEX Capital expenditures PHP 6,775 million Solid Cement Plant Expansion CAPEX PHP 7,750 million Total CAPEX 13
Slide 14: Solid Plant Expansion: A Strategic Investment
Solid Plant Expansion: A Strategic Investment This expansion will allow us to grow with the market, improve the logistics of our products, and continue to benefit from the long-term favorable outlook of the Philippines Expected total investment of US$235 million New line expected to start operations
Slide 15: Current proposal to increase Authorized Capital Stock
Current proposal to increase Authorized Capital Stock CHP has submitted a proposal to increase Authorized Capital Stock from 5.2 B to 18.3 B shares with a par value of PHP 1.00 per common share for approval at its Annual Shareholders? Meeting to be held on June 5, 2019:—The par value is not the issu
Slide 16: Focused Strategy: Improving Profitability and Capturing Growth
Focused Strategy: Improving Profitability and Capturing Growth 1. Expand integrated cement capacity in the largest market in the Philippines 2. Continue to enhance profitability by optimizing distribution channels and plant operations 3. Ensure safe and sustainable business operations 4. Provide sup
Slide 17: Q&A Session 1Q 2019 Results
Q&A SESSION 1Q 2019 RESULTS
Slide 18: Appendix
/ Mr ccmex | Prurrnes a 1Q 2019 7. APPENDIX egg Pas ah =oee ad Trews Apia Ae er 1 Pee! y
Slide 19: Debt Information
Debt Information During the first quarter of 2019, SOLID Cement Maturity Profile3 Corporation (?SOLID?) signed an Amendment Agreement to the subordinated revolving Related Party Loans4 6,406 credit facility entered into last November 2018 6,326 BDO Debt with a related company, CEMEX Asia B.V., 4,839
Slide 20: Impact of PFRS 16 on 2018 Income Statement
Impact of PFRS 16 on 2018 Income Statement Estimated Variation due 1 2018 2018 Pro Forma to PFRS 16 Cost of Sales (14,307) 16 (14,291) Gross Profit 9,111 16 9,127 Selling and Administrative (3,009) 10 (2,999) Expenses Distribution Expenses (4,735) 65 (4,671) Operating Earnings before Other 1,366 91
Slide 21: Impact of PFRS 16 on 2018 Balance Sheet
Impact of PFRS 16 on 2018 Balance Sheet Estimated Variation due 1 2018 2018 Pro Forma to PFRS 16 Fixed Assets3 15,617 1,043 16,660 Deferred Income Taxes ? net 720 41 762 Other Assets (Total) 31,482 41 31,524 Total Assets 55,854 1,084 56,938 Other Current Liabilities 10,080 17 10,098 Current Liabilit
Slide 22: Definitions
Definitions 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 other expenses, net, plus depreciation and operating amortization. Free Cash Flow Operati
Slide 23: Contact Information
Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP chp.ir@cemex.com 23