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 2018 Earnings Presentation
28 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 25, 2018
Slide 1: 2018 Third Quarter Results
2018 Third Quarter Results Exupery International School and Kindergarten, Latvia
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: 3Q18 net sales and EBITDA increased on a like-to-like basis
3Q18 net sales and EBITDA increased by 8% and 2%, respectively, on a like-to-like basis EBITDA variation Quarterly consolidated volumes for 0% cement, ready-mix and aggregates +2% increased by 4%, 5% and 5%, 113 respectively, on a like-to-like basis Quarterly consolidated cement, ready- 63 703 718 7
Slide 4: Free cash flow conversion rate reached 55% during 3Q18
Free cash flow conversion rate1 reached 55% during 3Q18 Free cash flow 704 160 6 390 116 7 37 334 56 EBITDA Net financial Maint. WC Taxes Other FCF after Strategic FCF 3Q18 3Q18 expense CapEx maint. CapEx CapEx Millions of U.S. dollars 1 Free cash flow conversion rate = free cash flow after maintena
Slide 5: Third Quarter 2018 • Regional Highlights
Third Quarter 2018 • Regional Highlights Therapeutic pools for the school La Esperanza, Puerto Rico
Slide 6: Mexico
Mexico l-t-l l-t-l Operating EBITDA increased by 5%, on a like- 9M18 9M17 % var % var 3Q18 3Q17 % var % var Net Sales 2,526 2,314 9% 10% 857 782 10% 15% to-like basis during 3Q18; operating EBITDA margin declined by 3.2pp, mainly due to higher Op. EBITDA 913 868 5% 6% 303 302 0% 5% fuel and transpor
Slide 7: United States
United States l-t-l l-t-l 9M18 9M17 % var % var 3Q18 3Q17 % var % var EBITDA margin increased by 0.4pp, mainly due to robust volumes and pricing Net Sales 2,843 2,647 7% 9% 999 916 9% 11% Op. EBITDA 476 447 7% 7% 178 160 12% 12% Domestic gray cement, ready-mix and aggregates volumes increased 7%, 10
Slide 8: South, Central America and the Caribbean
South, Central America and the Caribbean l-t-l l-t-l 9M18 9M17 % var % var 3Q18 3Q17 % var % var Operating EBITDA for the region declined by 14% on a like-to-like basis with a margin Net Sales 1,358 1,405 (3%) (2%) 442 463 (4%) (1%) decline of 2.7pp; the decline in margin reflects Op. EBITDA 311 368
Slide 9: Europe
Europe l-t-l l-t-l Year-over-year regional prices for our three core 9M18 9M17 % var % var 3Q18 3Q17 % var % var products up in local-currency terms; cement Net Sales 2,844 2,607 9% 3% 991 948 5% 6% prices increased sequentially in Germany, Poland, the Czech Republic and Spain Op. EBITDA 276 265 4%
Slide 10: Asia, Middle East and Africa
Asia, Middle East and Africa l-t-l l-t-l Operating EBITDA for the region declined 9M18 9M17 % var % var 3Q18 3Q17 % var % var by 11% on a like-to-like basis with a margin Net Sales 1,087 999 9% 10% 359 346 4% 7% decline of 2.6pp, reflecting higher energy and Op. EBITDA 164 170 (4%) (3%) 50 57 (13%)
Slide 11: Third Quarter 2018 • 3Q18 Results
Third Quarter 2018 • 3Q18 Results Lumina, USA
Slide 12: Operating EBITDA, cost of sales and operating expenses
Operating EBITDA, cost of sales and operating expenses January—September Third Quarter Operating EBITDA during 3Q18 l-t-l l-t-l increased by 2% on a like-to-like basis 2018 2017 % var % var 2018 2017 % var % var Net sales 10,933 10,218 7% 6% 3,748 3,539 6% 8% mainly due to higher contributions from
Slide 13: Free cash flow
Free cash flow January—September Third Quarter Net financial expenses decreased by 2018 2017 % var 2018 2017 % var US$43 million during the quarter and by Operating EBITDA 1,956 1,949 0% 704 703 0% US$149 million year to date, reflecting a lower debt level and our liability —Net Financial Expense 49
Slide 14: Other income statement items during 3Q18
Other income statement items during 3Q18 Other expenses, net, of US$48 million, mainly due to severance payments and others Gain on financial instruments of US$1 million ï,§ On September 21, CEMEX unwound about 34% of its forward positions in Grupo Cementos de Chihuahua (GCC) shares; CEMEX received
Slide 15: Total debt plus perpetuals has declined by US$713M year to date
Total debt plus perpetuals has declined by US$713M year to date Total debt plus perpetuals variation -6% 11,349 395 133 409 10,636 224 4Q17 Cash balance Debt FX effect FCF after Other 3Q18 variation strategic CapEx Millions of U.S. dollars 15
Slide 16: CEMEX consolidated debt maturity profile
CEMEX consolidated debt maturity profile Total debt excluding perpetual notes as of September 30, 2018: US$10,191 million Credit Agreement Other bank debt Fixed Income Avg. life of debt: 4.8 years Convertible Subordinated Notes1 2,432 1,970 1,608 1,145 1,240 997 639 119 41 2018 2019 2020 2021 2022 2
Slide 17: Third Quarter 2018 • 2018 Outlook
Third Quarter 2018 • 2018 Outlook Pharmax Pharmaceutical, United Arab Emirates
Slide 18: 2018 guidance
2018 guidance Cement: 2% to 3% Consolidated Ready mix: 3% to 4% volumes Aggregates: 1% to 2% Energy cost per ton of cement Increase of approximately 8% to 9% produced US$550 million Maintenance CapEx Capital US$250 million Strategic CapEx expenditures US$800 million Total CapEx Investment in US$0 to
Slide 19: A Stronger CEMEX: progress to date
A Stronger CEMEX: progress to date Initiatives Progress to date Targets Brazil US$31M Asset sales FAS1 & other US$31M US$1.5 – 2.0B by 2020 Total US$62M On track to implement all Operational initiatives / initiatives by end of this year; US$150M by 2019 cost reduction full benefit should be reflecte
Slide 20: Third Quarter 2018 • Appendix
Third Quarter 2018 • Appendix Chase Center, USA
Slide 21: Consolidated volumes and prices
Consolidated volumes and prices 9M18 vs. 9M17 3Q18 vs. 3Q17 3Q18 vs. 2Q18 Consolidated volumes for cement, ready Volume (l-t-l1) 3% 4% (2%) mix and aggregates increased during Domestic gray 3Q18 and the first nine months of the year Price (USD) 2% 1% (0%) cement on a year-over-year basis Price (l-t-
Slide 22: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Third Quarter Second Quarter 2018 2017 % var 2018 Other… Total debt1 10,191 11,111 (8%) 10,444 Short-term 1% 7% 5% Euro Currency 27% Long-term 99% 93% 95% denomination U.S. dollar Perpetual notes 445 446 (0%) 446 Total debt plus perpetual notes 10,6
Slide 23: Additional information on debt
Additional information on debt Third Quarter Second Quarter 2018 % of total 2017 % of total 2018 % of total Total debt1 by instrument Fixed Income 5,782 57% 7,114 64% 6,107 58% 2017 Credit Agreement 3,341 33% 2,529 23% 3,292 32% Convertible Subordinated Notes 512 5% 865 8% 511 5% 5% 5% Others 556 5%
Slide 24: 9M18 volume and price summary: Selected countries
9M18 volume and price summary: Selected countries Domestic gray cement Ready mix Aggregates 9M18 vs. 9M17 9M18 vs. 9M17 9M18 vs. 9M17 Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico 3% 1% 3% 12% 7% 8% 12% 6% 8% U.S. 7% 3% 3% 9% 2% 2% 4% 4% 4%
Slide 25: 3Q18 volume and price summary: Selected countries
3Q18 volume and price summary: Selected countries Domestic gray cement Ready mix Aggregates 3Q18 vs. 3Q17 3Q18 vs. 3Q17 3Q18 vs. 3Q17 Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico 9% (4%) 0% 14% 2% 7% 13% 5% 10% U.S. 7% 3% 3% 10% 3% 3% 8% 3
Slide 26: 2018 expected outlook: Selected countries
2018 expected outlook: Selected countries Domestic gray cement Ready mix Aggregates Volumes Volumes Volumes Consolidated1 2%—3% 3%—4% 1%—2% Mexico 1%—2% 9% 9% United States1 6% 8% 3% Colombia (8%) (11%) (14%) Panama (16%) (16%) 0% Costa Rica 3% 5% 9% UK (4%)—(3%) (5%)—(4%) (1%)—0% Spain 4%—5% 15% 15
Slide 27: 2018 expected outlook: Selected countries
2018 expected outlook: Selected countries Domestic gray cement Ready mix Aggregates Volumes Volumes Volumes Consolidated1 2%—3% 3%—4% 1%—2% Mexico 1%—2% 9% 9% United States1 6% 8% 3% Colombia (8%) (11%) (14%) Panama (16%) (16%) 0% Costa Rica 3% 5% 9% UK (4%)—(3%) (5%)—(4%) (1%)—0% Spain 4%—5% 15% 15
Slide 28: Contact information
Contact information Investor Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1 Calendar of Events February 7, 2019 Fourth quarter 2018 financial results conference