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 2019 Earnings Presentation
30 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 24, 2019
Slide 1: Exhibit 3
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”) intend, but are not limited to, these forward-looking statements to be covered by the safe harbor provisions for forw
Slide 3: 3Q19 EBITDA affected by decline in volumes
Sales on a like-to-like basis decreased by 1% during 3Q19 due to lower consolidated volumes partially mitigated by price increases for our products in all of our regions Higher quarterly consolidated prices for our three core products on a like-to-like basis, both in local-currency and US-dollars te
Slide 4: Free cash flow conversion rate reached 43% during 3Q19
Free cash flow conversion rate1 reached 43% during 3Q19 Free cash flow Millions of U.S. dollars 1 Free cash flow conversion rate = free cash flow after maintenance capital expenditures / operating EBITDA
Slide 5: Good progress on our A Stronger CEMEX targets
Good progress on our “A Stronger CEMEX” targets Initiatives Progress Targets Asset sales US$830M1 US$1.5 – 2.0B by 2020 Operational initiatives / cost reduction US$128M US$230M by 2020 (US$170M of which are expected to be captured in 2019) Total debt plus perpetuals reduction US$913M2 US$3.5B by 202
Slide 6: Regional Highlights
Slide 7: Mexico: sequential increase in EBITDA margin
Mexico: sequential increase in EBITDA margin reflecting lower energy costs and operating expenses EBITDA margin increased by 1.0pp sequentially, reaching 33.5% during the third quarter, mainly due to lower energy costs and operating expenses Decline in volumes for our three core products during 3Q19
Slide 8: United States: EBITDA growth despite adverse weather
United States: EBITDA growth despite adverse weather and unfavorable competitive dynamics Quarterly prices for our three core products up on a year-over-year basis Volumes for ready-mix and aggregates increased by 1% and 3%, respectively, while domestic gray cement volumes decreased by 1% during 3Q1
Slide 9: South, Central America and the Caribbean: favorable volume dynamics
Regional domestic gray cement volumes increased by 1% during 3Q19 driven by growth in Colombia, the Dominican Republic and El Salvador Both regional cement and aggregates prices increased by 2% year over year during 3Q19; sequentially, regional aggregates prices increased 5% while cement prices rema
Slide 10: Europe: double digit increase in year-to-date EBITDA
Europe: double digit increase in year-to-date EBITDA generation with EBITDA margin expansion Regional cement volumes remained flat while ready-mix and aggregates decreased during 3Q19 on a year-over-year basis mainly due to lower activity in Poland and the UK Higher quarterly regional prices for our
Slide 11: Asia, Middle East and Africa: higher pricing levels
Asia, Middle East and Africa: higher pricing levels both during the quarter and year to date Higher regional prices for our three core products, both in local-currency and US-dollars terms, on a year-over-year basis Increase in ready-mix volumes reflecting favorable contribution from Israel, partial
Slide 12: 3Q19 Results
3Q19 Results
Slide 13: Operating EBITDA decreased 7% like-to-like
Operating EBITDA during 3Q19 decreased 7% on a like-to-like basis mainly due to lower contributions from Mexico and SCAC regions, mitigated by improvement in the rest of our regions Cost of sales, as a percentage of net sales, increased 1.1 pp during the third quarter of 2019 mainly reflecting highe
Slide 14: Free cash flow: working-capital investment expected to reverse in 4Q19
Free cash flow: expect more than two thirds of year-to-date working-capital investment expected to reverse in 4Q19 Average working capital days
Slide 15: Pro-forma total debt plus perpetuals declined by US$913 million
Pro-forma total debt plus perpetuals has declined by US$913 million under our A Stronger CEMEX plan -733 Millions of U.S. dollars 1 Debt adjusted for IFRS 16 2 Divestment of most of our white-cement business for approximately US$180 million which is expected to close during 4Q19 or early in 2020 Tot
Slide 16: Healthy consolidated debt maturity profile
Millions of U.S. dollars 1 Convertible Subordinated Notes include only the debt component of US$518 million; total notional amount is about US$521 million Avg. life of debt: 4.1 years Healthy consolidated debt maturity profile Total debt excluding perpetual notes as of September 30, 2019: US$10,889
Slide 17: 2019 Outlook
Slide 18: 2019 guidance
2019 guidance1 1 Reflects CEMEX’s current expectations 2 Including perpetual and convertible securities Consolidated volumes Cement: (6%) to (3%) Ready mix: (2%) to 0% Aggregates: (2%) to 0% Energy cost per ton of cement produced Decrease of 3% Operating EBITDA ~US$2.45 billion Capital expenditures
Slide 19: Appendix
Mecnex
Slide 20: Consolidated volumes and prices for three core products
Decrease in consolidated volumes for our three core products during the third quarter on a year-over-year basis During 3Q19, year-over-year cement volumes increased in our SCAC region and ready-mix volumes increased in our US and AMEA regions Increased consolidated prices for our three core products
Slide 21: Other income statement items during 3Q19
Other income statement items during 3Q19 Other expenses, net, of US$45 million, mainly due to severance payments and impairment of assets Loss on financial instruments of US$5 million, mainly resulting from the derivatives related to GCC shares Foreign-exchange gain of US$2 million resulting mainly
Slide 22: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Currency denomination Interest rate3 1 Includes convertible notes and leases, in accordance with International Financial Reporting Standard (IFRS) 2 Calculated in accordance with our contractual obligations under the 2017 Facilities Agreement, as am
Slide 23: Additional information on debt
Additional information on debt Total debt1 by instrument
Slide 24: 9M19 volume and price summary: Selected countries
9M19 volume and price summary: Selected countries
Slide 25: 3Q19 volume and price summary: Selected countries
3Q19 volume and price summary: Selected countries Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (15%) (3%) 1% (16%) (1%) 3% (13%) (3%) 1% U.S. (1%) 4% 4% 1% 3% 3% 3% 4% 4% Europe (0%) 0% 7% (2%) (2%) 4% (2%) (4%) 2% Colombia 12% (8%) 5% 6% (11%) 2%
Slide 26: 2019 expected outlook: Selected countries
2019 expected outlook: Selected countries
Slide 27: Cash flows from operating activities, 9M18 reported and restated
9M18 originally reported1 9M18 restated2 Cash flows from (used in) operating activities Profit (loss) 410 604 + Discontinued operations -148 -40 + Adjustments for income tax expense 151 185 + Adjustments for depreciation and amortization expense 804 771 + Adjustments for impairment loss (reversal of
Slide 28: Cash flows from investing and financing activities
9M18 originally reported1 9M18 restated2 Cash flows from (used in) investing activities + Cash flows from losing control of subsidiaries or other businesses 512 28 - Other cash payments to acquire interests in joint ventures 1 0 + Proceeds from sales of property, plant and equipment 44 46 - Purchase
Slide 29: Definitions
Definitions 9M19 / 9M18 Results for the first nine months of the years 2019 and 2018, 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 do
Slide 30: 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