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 2020 Earnings Presentation
34 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 28, 2020
Slide 1: Third Quarter 2020 Results
Third Quarter 2020 Results Isabel Zendal Emergency Hospital – Madrid, Spain Exhibit 3
Slide 2: Forward-looking statements
This presentation contains, and the reports we will file in the future may contain, forward-looking statements within the meaning of the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the
Slide 3: Key messages for 3rd Quarter 2020
Operational improvements lead to highest EBITDA, EBITDA margin and Free Cash Flow since 2016 Significant volume recovery in markets that experienced 2nd quarter lockdowns Bagged cement growth continues in Emerging Markets even after restrictions are lifted Mexico’s performance showing recovery from
Slide 4: Operation Resilience to create sustainable returns for our shareholders
Operation Resilience to create sustainable returns for our shareholders Operation Resilience lays the foundation for the future of CEMEX EBITDA growth through margin enhancement ≥ 20% target EBITDA margin by 2023 Optimize our portfolio for growth Strategic divestments and reinvestments Achieve inves
Slide 5: With markets reopening, cement volumes deliver year-over-year growth
With markets reopening, cement volumes deliver year-over-year growth On an average daily sales basis MEAA = Middle East, Africa and Asia Domestic gray cement MEAA US EUR MX SCAC 2020 CEMEX CEMEX LC pricing YoY 9M20 3Q20 Cement3 +1% +2% Aggregates +2% +1% Ready mix +3% +1% Cement volumes YoY % variat
Slide 6: Strong bagged cement performance powers Emerging Market volume growth
Mexico Dominican Republic Nicaragua Guatemala Puerto Rico El Salvador Jamaica Bahamas Strong bagged cement performance powers Emerging Market volume growth Home improvements as families quarantine at home High level of remittances, allocating a portion for home renovations to increase quality of lif
Slide 7: Achieved highest quarterly EBITDA, EBITDA margin and Free Cash Flow since 2016
Achieved highest quarterly EBITDA, EBITDA margin and Free Cash Flow since 2016 Net sales Operating EBITDA Operating EBITDA margin Free Cash Flow after maintenance capex +1.8pp +3% l-t-l +15% l-t-l Millions of U.S. dollars
Slide 8: All business levers contributing to EBITDA growth
All business levers contributing to EBITDA growth EBITDA variation Millions of U.S. dollars +15% +11%
Slide 9: Operation Resilience drives margin improvement
“Operation Resilience” drives margin improvement Millions of U.S. dollars 9M20 savings under Operation Resilience 72 79 US$89 M savings realized in 3Q20, contributing to 2.6pp to EBITDA margin YTD savings of US$229 M, contributing to 2.4pp to EBITDA margin Primarily driven by SG&A and operational ef
Slide 10: Superior customer experience enabled by digital technologies
Superior customer experience enabled by digital technologies Umbrella brand that covers all our digital solutions for customers Launched in 2017, and continuously evolving to meet specific customer segment and product needs Available in almost all operations, with ~40k users Up to 90% of our recurri
Slide 11: Robust roadmap to address climate change targets
Robust roadmap to address climate change targets Target 20301 Ambition 2050 35% Further contribution from 2030 cement efforts Carbon capture, usage and storage Admixtures, binders and additions in concrete Recycled aggregates Recarbonation of concrete during lifetime Reduction in CO2 emissions in ce
Slide 12: Mecmcex
Mecmcex
Slide 13: United States: Improved logistics and other efficiencies propel EBITDA margin growth
United States: Improved logistics and other efficiencies propel EBITDA margin growth With more challenging prior year comps, cost efficiencies drive EBITDA growth Increase in cement volumes driven by pickup in residential activity and infrastructure strength Stable prices sequentially in three core
Slide 14: Mexico: Rebounding from challenging 2019 cement industry performance
Mexico: Rebounding from challenging 2019 cement industry performance Double-digit increase in cement volumes points to recovery from 2019 slowdown Bagged cement momentum supported by government social programs, home improvement activity and higher remittances Growth in formal sector as private secto
Slide 15: EMEAA: EBITDA growth resulting from pricing and cost containment initiatives
EMEAA: EBITDA growth resulting from pricing and cost containment initiatives EBITDA growth due to pricing gains in Europe and cost containment initiatives Continued strong cement volume growth and pricing performance in central Europe Marked volume recovery in western Europe as economies opened Well
Slide 16: SCAC: Growth story reemerging after COVID-19 disruption
Recovery in quarterly cement volumes to levels approaching 2019 Cement prices on a sequential basis declined 2% mainly due to geographic mix In Colombia, industry volumes recovered to pre-COVID-19 levels, supported mainly by self-construction and 4G highways projects EBITDA margin increased 6.3pp ma
Slide 17: 3Q20 Results
3Q20 Results
Slide 18: Strong Free Cash Flow generation with Net Income impacted by non-cash impairment charge
Strong Free Cash Flow generation with Net Income impacted by non-cash impairment charge Average working capital days Millions of U.S. dollars 3Q20 3Q19 Controlling Interest Net Income US$ M 3Q20 3Q19
Slide 19: Cash and cash-equivalents variation
Cash and cash-equivalents variation Millions of U.S. dollars 1) Includes redemption of the following senior secured notes during October: US$640 M of 6.0% due 2024, US$750 M of 6.125% due 2025 and EUR400 M of 4.625% due 2024 With improved visibility, cash deployed to paydown debt 1
Slide 20: Bank refinancing highlights our commitment to sustainability
Bank refinancing highlights our commitment to sustainability… Total commitments under the Facilities Agreement decreased from ~$4.1 B to ~$3.5 B Extension of maturities by ~93% of lenders 3-year extension of ~US$1.1 B of Term Loans from 2022 to 2025 1-year extension of ~US$1.1 B Revolver from 2022 t
Slide 21: Average life of debt: 4.7 years
Average life of debt: 4.7 years …and creates runway with no material maturities until July 2023 Proforma1 total debt excluding perpetual notes as of September 30, 2020: US$10,908 million 134 371 449 1,231 1,432 2,377 Fixed Income Other bank debt 2017 Facilities Agreement Leases Millions of U.S. doll
Slide 22: While our leverage ratio declines
While our leverage ratio declines Net Debt plus perpetuals variation Millions of U.S. dollars 1) Calculated in accordance with our contractual obligations under the 2017 Facilities Agreement, as amended and restated 4.57x 4.27x -0.30x Consolidated leverage ratio1
Slide 23: 2020 Outlook
2020 Outlook
Slide 24: 2020 guidance slightly improved for EBITDA
2020 guidance1 slightly improved for EBITDA 1 Reflects CEMEX’s current expectations 2 Including perpetual and convertible securities Energy cost per ton of cement produced (9%) to (7%) Operating EBITDA ~US$2.4 billion Capital expenditures US$750 to US$780 million Investment in working capital ~US$15
Slide 25: What to expect
Pleased to see recovery not only from lockdowns in 2nd quarter, but also from a challenging 2019 performance Expect COVID-19 resurgence in our markets but believe disruptions will be less than in 2019 Potential fiscal and monetary stimulus to benefit US and Europe going forward Strong residential gr
Slide 26: Appendix
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Slide 27: Debt maturity profile as of 3Q20
Average life of debt: 4.1 years Debt maturity profile as of 3Q20 Total debt excluding perpetual notes as of September 30, 2020: US$13,310 million Fixed Income Other bank debt 2017 Facilities Agreement Leases Millions of U.S. dollars Revolving Credit Tranche
Slide 28: Consolidated volumes and prices
Consolidated volumes and prices Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates
Slide 29: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Currency denomination Interest rate3 Millions of U.S. dollars 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 Fa
Slide 30: Additional information on debt
Additional information on debt Total debt1 by instrument Millions of U.S. dollars 1 Includes leases, in accordance with IFRS
Slide 31: 3Q20 volume and price summary: selected countries/region
3Q20 volume and price summary: selected countries/region Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates
Slide 32: 9M20 volume and price summary: selected countries/region
9M20 volume and price summary: selected countries/region Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates
Slide 33: Definitions
Definitions 9M20 / 9M19 Results for the first nine months of the years 2020 and 2019, respectively SCAC South, Central America and the Caribbean EMEAA Europe, Middle East, Africa and Asia Cement When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the
Slide 34: Contact Information
Contact Information Investors Relations In the United States +1 877 7CX NYSE In Mexico +52 81 8888 4292 ir@cemex.com Mecmex Stock Information NYSE (ADS): CX Mexican Stock Exchange: CEMEXCPO Ratio of CEMEXCPO to Cx: 10 to 1