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
22 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 26, 2018
Slide 1: 3Q 2018 Results
3Q 2018 RESULTS October 26, 2018
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: Third Quarter 2018 Highlights
Third Quarter 2018 Highlights Record cement sales volume All-time-highest cement sales to the institutional segment volume in a quarter (3Q18) (August and September) +10% +8% Growth in Domestic Cement Growth in Net Sales (9M18) Volume (9M18)
Slide 4: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices 9M18 vs. 3Q18 vs. 3Q18 vs. 9M17 3Q17 2Q18 Domestic Volume 10% 5% 2% Cement Price (PHP) (1%) 4% (1%) Domestic cement volumes increased 5% year-over-year during the third quarter. • All-time-highest quarterly sales volume in 3Q18 • Demand mainly driven by sustained i
Slide 5: Net Sales
Net Sales Net sales increased year-over-year by 8% both during the Net Sales1 third quarter and the first nine months of the year. +8% +8% 16,561 17,905 5,572 6,026 3Q17 3Q18 9M17 9M18
Slide 6: Private Sector
Private Sector Residential sector continued its growth in the third Approved Building Permits quarter of 2018. 60% Year-over-year growth based on floor area1 The sector’s performance should be sustained by 40% demand from the growing offshoring and outsourcing 20% (O&O) work force and sustained remi
Slide 7: Public Sector
Public Sector Disbursement on Infrastructure and Capital Outlays Infrastructure activity continued to accelerate in (in PHP billion)1 the third quarter of 2018 supported by 50% year-over-year growth in infrastructure and capital 2017 2018 +75% outlays for the first eight months of 2018. +28% The Dep
Slide 8: Cost of Sales
Cost of Sales Cost of sales, as a percentage of sales, Cost of Sales Fuel and Power increased to 60% during 9M18 due to (% of net sales) (% of cost of sales) increased fuel and power costs, as a result of higher global fuel prices, depreciation of the Fuel Philippine Peso, and impact of tax reform.
Slide 9: Operating Expenses
Operating Expenses Distribution Selling and Administrative Distribution expenses, as a percentage of (% of net sales) (% of net sales) sales, increased by 1 pp year-over-year for the first nine months of the year. Initiatives to increase operational efficiency mitigated higher fuel costs and other i
Slide 10: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA Variation1 Third quarter operating EBITDA decreased 15% year-over-year. 14% 11% Operating EBITDA margin during the quarter was 11%, 3 pp lower than 3Q17. Expenses grew at a higher rate than revenues given annual maintenance shutdown expen
Slide 11: Net Income
Net Income Net income for the quarter was at a loss of PHP 70 million, due to lower Net Income1 operating EBITDA, higher financial expenses and foreign exchange losses. During the first nine months of the year, the company incurred a loss of PHP 605 million due to higher income tax expenses recorded
Slide 12: 3Q 2018 Free Cash Flow & Guidance
3Q 2018 FREE CASH FLOW & GUIDANCE
Slide 13: Free Cash Flow
Free Cash Flow January—September Third Quarter Free cash flow during the first nine 2018 2017 2018 2017 months reached PHP 1.6 billion after % var % var maintenance CAPEX and PHP 1.3 Operating EBITDA 2,410 2,627 (8%) 686 803 (15%) billion after strategic CAPEX. —Net Financial Expenses 677 667 232 20
Slide 14: Solid Plant Capacity Expansion
Solid Plant Capacity Expansion On Oct. 18, 2018, Solid Cement Corporation signed an agreement with CBMI Construction Co., Ltd of China, for the procurement, construction and installation of the new line. Expected total investment: US$ 235 million New line expected to start operations in the fourth q
Slide 15: Updates and Developments
Updates and Developments • CEMEX Go, a digital end-to-end solution that will provide a seamless experience for order placement, tracking of shipments, and managing invoices and payments for CHP’s main products, was launched in the Philippines on Oct. 15, 2018. The initiative is aligned with CEMEX’s
Slide 16: 2018 Guidance
2018 Guidance Cement volumes 10-11% PHP 700 million Maintenance CAPEX PHP 3,000 million Solid Plant Expansion CAPEX Capital expenditures PHP 40 million Other Strategic CAPEX PHP 3,740 million Total CAPEX Working capital Reduction of approximately P1,200 – 1,400 million
Slide 17: Sustaining Growth
Sustaining Growth Improve Customer Experience • CEMEX Go • Net Promoter Score Favorable Macroeconomic Capture growth Fundamentals Empowered to • Solid expansion serve and Growing • Debottlenecking deliver Cement Demand Operational Excellence • Productivity • Alternative Fuels
Slide 18: Q&A Session
Q&A SESSION 3Q 2018 RESULTS
Slide 19: 3Q 2018 Appendix
3Q 2018 APPENDIX
Slide 20: Debt Information
Debt Information Maturity Profile1 2 6,656 Related Party Loans BDO Debt 5,027 Total Debt: PHP 15,270 Avg. life of debt: 4.5 years Net Debt to EBITDA3: 4.2x 1,664 1,214 1,074 429 394 140 140 140 35 2018 2019 2020 2021 2022 2023 2024 1 Millions of Philippine Pesos 2 Pertains to loans with CEMEX Asia B
Slide 21: Definitions
Definitions 6M18 / 6M17 Results for the first six months of the years 2018 and 2017, respectively 9M18 / 9M17 Results for the first nine months of the years 2018 and 2017, respectively PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decrease
Slide 22: Contact Information
Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP chp.ir@cemex.com