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 — Q4 2017 Earnings Presentation
32 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Feb 8, 2018
Slide 1: 2017 Fourth Quarter Results
2017 Fourth Quarter Results Exhibit 3
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: 2017 operating EBITDA declined 6% on a like-to-like basis
Higher like-to-like consolidated prices for our three core products during the quarter and the full year, on a year-over-year basis Sales on a like-to-like basis increased 3% during 2017 due to favorable prices in Mexico and the U.S., as well as higher cement volumes in the U.S. and Europe region 20
Slide 4: Free cash flow conversion rate reached 50%
Free cash flow conversion rate1 reached 50% Controlling interest net income Free cash flow Millions of U.S. dollars 1 Free cash flow conversion rate = Free cash flow after maintenance CAPEX / EBITDA 2 Includes Other Cash Items plus Free Cash Flow Discontinued Operations 2
Slide 5: Free cash flow and asset sales used for debt reduction
Free cash flow and the proceeds from assets sales were mainly used for debt reduction during the year We have reduced total debt plus perpetuals by close to US$4.3 billion on a pro-forma basis, since December 2015, representing a reduction of approximately 28% Close to US$2.1 billion reduction in to
Slide 6: We achieved our 2016-2017 targets toward investment grade
We achieved our 2016-2017 targets to further bolster our road to investment grade Initiatives Achievements Targets 2016 & 2017 Asset divestments ~ US$2.7 billion US$2.5 billion Total debt reduction ~ US$4.3 billion on a pro-forma basis1 ~ US$4 billion 1 Including US$350 million cash reserve created
Slide 7: Fourth Quarter 2017 Regional Highlights
Fourth Quarter 2017 Regional Highlights
Slide 8: Mexico
2017 EBITDA increased by 11%, on a like-to-like basis, with margin expansion of 0.6pp Cement sales volumes increased by 8% during the quarter on a sequential basis supported by reconstruction activity-fueled demand and an improvement in our sequential market position Higher prices for our 3 core pro
Slide 9: United States
2017 operating EBITDA increased by 9% with a margin expansion of 0.8pp, on a like-to-like basis On a like-to-like basis cement volumes increased 5% during the quarter while both ready-mix and aggregates volumes increased by 3% Higher quarterly and full-year prices on a like-to-like basis for our thr
Slide 10: South, Central America and the Caribbean
On a like-to-like basis, regional cement, ready-mix and aggregates volumes decreased by 1%, 3% and 5%, respectively, during the quarter, and by 1%, 6% and 5%, respectively, during 2017 Our regional cement prices in local-currency terms during the quarter remained stable on a sequential basis In Colo
Slide 11: Europe
EBITDA during the quarter on a year-over-year basis increased by 22% and EBITDA margin increased by 0.5 percentage points Improved economic fundamentals supported volume growth both during the quarter and the full year for our 3 core products In the UK, cement volumes declined by 1% during 2017 adju
Slide 12: Asia, Middle East and Africa
Increase in quarterly regional volumes for our three core products; cement and ready-mix volumes increased in the double digits In the Philippines, our cement volumes increased by 10% during the quarter driven by higher infrastructure activity In Egypt, cement volumes growth during the quarter refle
Slide 13: Fourth Quarter 2017 Results
Fourth Quarter 2017 4Q17 Results
Slide 14: Operating EBITDA, cost of sales and operating expenses
Operating EBITDA declined by 7% during the quarter on a like-to-like basis due to lower contributions in the USA, SCAC and AMEA regions, partially offset by higher contributions in Mexico and the Europe region Cost of sales, as a percentage of net sales, increased by 2.2pp during the quarter mainly
Slide 15: Average working capital days and free cash flow
Average working capital days Free cash flow Average working capital days during 2017 decreased to negative 5, from 3 days in 2016 Record level of negative 13 days during 4Q17
Slide 16: Other income statement items during 4Q17
Other income statement items during 4Q17 Other expenses, net, of US$271 million mainly includes impairment of assets, severance payments, as well as the expense related to the antitrust fine in Colombia Foreign-exchange gain of US$58 million resulting primarily from the fluctuation of the Mexican pe
Slide 17: Debt-related information
During the quarter, we: Paid US$328 million, the outstanding aggregate principal amount of the 9.375% senior secured notes due 2022, which were called in September 2017 and redeemed on October 2017 Issued €650 million of 2.75% euro-denominated senior secured notes due 2024 Called and paid US$611 mil
Slide 18: CEMEX consolidated debt maturity profile
Millions of U.S. dollars Avg. life of debt: 5.2 years CEMEX consolidated debt maturity profile Fixed Income Other bank debt Convertible Subordinated Notes Credit Agreement Total debt excluding perpetual notes as of December 31, 2017: US$10,901 million
Slide 19: Debt maturity profile - pro forma
Millions of U.S. dollars Avg. life of debt: 5.2 years 1 US$350 million cash reserve created in December 2017 and used on January 2018, for the redemption of the 4.750% senior secured notes due 2022 CEMEX consolidated debt maturity profile – pro forma1 Fixed Income Other bank debt Convertible Subordi
Slide 20: Fourth Quarter 2017 Outlook
Fourth Quarter 2017 2017 Outlook
Slide 21: 2018 guidance
2018 guidance 1 Including perpetual and convertible securities Consolidated volumes Cement: 2% Ready mix: 4% Aggregates: 2% Energy cost per ton of cement produced Increase of approximately 4% Capital expenditures US$550 million Maintenance CapEx US$250 million Strategic CapEx US$800 million Total Ca
Slide 22: Significant achievements in the past three years
Significant achievements in the past three years despite FX headwinds Asset sales for approximately US$3.1 billion Reduced debt by close to US$5.3 billion1 Deleveraged2 from 5.19x to 3.85x EBITDA to free cash flow conversion rate increased from 15% to 50% Year-end closing working-capital days reduce
Slide 23: Appendix
Fourth Quarter 2017 Appendix
Slide 24: Consolidated volumes and prices
During the quarter and on a like-to-like basis, higher year-over-year cement volumes in the U.S., Europe and AMEA regions Quarterly and full-year increases in our consolidated prices for our three core products, on a like-to-like basis Consolidated volumes and prices 2017 vs. 2016 4Q17 vs. 4Q16 4Q17
Slide 25: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Currency denomination Interest rate Third Quarter 2017 2016 % var 2017 Total debt 1 10,901 12,635 (14%) 11,111 Short-term 12% 1% 7% Long-term 88% 99% 93% Perpetual notes 448 438 2% 446 Total debt plus perpetual notes 11,349 13,073 (13%) 11,558 Cash
Slide 26: Additional information on debt
Additional information on debt Total debt1 by instrument 2017 % of total 2016 % of total 2017 % of total Fixed Income 6,984 64% 8,538 68% 7,114 64% 2017 Credit Agreement 2,549 23% 2,745 22% 2,529 23% Convertible Subordinated Notes 870 8% 1,158 9% 865 8% Others 498 5% 194 2% 604 5% Total Debt 1 10,90
Slide 27: 2017 volume and price summary: selected countries
2017 volume and price summary: Selected countries Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico (4%) 16% 16% (3%) 9% 10% (3%) 11% 11% U.S. (6%) 3% 3% (2%) 1% 1% (3%) 5% 5% Colombia (6%) (17%) (19%) (13%) 0% (2%) (17%) 7% 4% Panama 3% (0%) (
Slide 28: 4Q17 volume and price summary: selected countries
4Q17 volume and price summary: Selected countries Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico (4%) 17% 11% (5%) 17% 12% (2%) 14% 9% U.S. (3%) 4% 4% 2% 2% 2% 1% 4% 4% Colombia (8%) (11%) (12%) (8%) (2%) (4%) (12%) 5% 4% Panama (3%) 0% 0% (
Slide 29: 2018 expected outlook: selected countries
2018 expected outlook: Selected countries
Slide 30: Definitions
Definitions 2017 / 2016 Results for the twelve months of the years 2017 and 2016, 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 domest
Slide 31: Footnotes
Footnotes from slide 3 1 For 4Q16, net amount that includes results of ~US$10 million from Trinidad Cement Limited (“TCL”), consolidated by CEMEX since February 2017, and an aggregate amount of negative ~US$14 million related mainly to results of the Fairborn cement plant, sold in February 2017, and
Slide 32: Contact information
Contact information Stock Information NYSE (ADS): CX Mexican Stock Exchange: CEMEXCPO Ratio of CEMEXCPO to CX: 10 to 1 Investor Relations In the United States +1 877 7CX NYSE In Mexico +52 81 8888 4292 ir@cemex.com