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
27 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 25, 2018
Slide 1: Results 3Q18
RESULTS 3Q18 October 25, 2018
Slide 2: Forward looking information
||Forward looking information 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 o
Slide 3: Financial Results Summary
||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -9% 928 849 -8% 302 -22% -4.0pp 277 -17% 1% -2.2pp 242 26 . 72 . 9% 188. 1% 23 22 60. 7% 21 9M17 9M18 3Q17 3Q18 9M17 9M18 3Q17 3Q18 9M17 9M18 3Q17 3Q18 3
Slide 4: Consolidated Volumes and Prices
Consolidated Volumes and Prices 9M18 9M17 vs. 3Q18 3Q17 vs. 3Q18 2Q18 vs. Volume -8% -7% 1% Domestic gray Price (USD) 1% 2% -3% cement Price (LtL ) 1% 3% -2% 1 Ready-mix Volume -11% -9% 7% concrete Price (USD) -1% -3% -2% Price (LtL1) -2% -2% 0% Volume -8% -8% 0% Aggregates Price (USD) -3% -2% 3% Pr
Slide 5: EBITDA Variation 9M18
||EBITDA Variation 9M18 -22% 242 -56 4 -2 0 1 0 188 EBITDA Vol Price O. Costs Dist SG&A Fx EBITDA 9M17 9M18 26.1% 22.1% -4.0pp EBITDA EBITDA Margin 9M17 Margin 9M18 5
Slide 6: Net debt reduction 9M18
||Net debt reduction 9M18 -71 882 -59 25 811 -31 -6 Net Debt Free Cash Flow Brazil Other Fine in Colombia Net Debt 3 Dec. 17 9M18 Divestment Sep. 18 1 2 (1) Excludes “fine in Colombia” (2) Gross amount (3) Fine imposed by the Colombian Superintendence of Industry and Commerce (SIC), paid on January
Slide 7: Regional Highlights 3Q Results
REGIONAL HIGHLIGHTS 3Q 1 8 Results
Slide 8: Results Highlights Colombia
Results Highlights Colombia
Slide 9: Colombia – Results Highlights
Colombia –Results Highlights 9M18 9M17 % var 3Q18 3Q17 % var Net Sales 399 432 -8% 134 142 -5% Financial Op. EBITDA Summary 73 83 -12% 26 22 16% US$ Million as % net sales 18.2% 19.2% (1.0pp) 19.4% 15.9% 3.5pp 9M18 vs. 9M17 3Q18 vs. 3Q17 3Q18 vs. 2Q18 Cement -10% -8% 7% Volume Ready mix -13% -11% 4%
Slide 10: Colombia – Residential Sector
Colombia –Residential Sector During this 4Q18, we expect the residential sector to stabilize, supported by low interest rates, as well as by improvements in consumer confidence and in the intention-to-buy-a-home indicator We estimate that national-cement dispatches to this sector declined in the low
Slide 11: Colombia – Infrastructure Sector
Colombia –Infrastructure Sector We expect the infrastructure sector to increase in the double-digits during 4Q18; our volumes should continue to be supported by projects under execution Positive performance in this sector during 3Q18 our volumes were driven by the Salitre water-treatment plant and t
Slide 12: Results Highlights Panama
Results Highlights Panama
Slide 13: Panama – Results Highlights
Panama –Results Highlights 9M18 9M17 % var 3Q18 3Q17 % var Net Sales 169 212 -20% 58 71 -18% Financial Op. EBITDA Summary 51 88 -42% 16 30 -44% US$ Million as % net sales 30.2% 41.3% (11.1pp) 28.5% 42.1% (13.6pp) 9M18 vs. 9M17 3Q18 vs. 3Q17 3Q18 vs. 2Q18 Cement -20% -16% 10% Volume Ready mix -18% -9
Slide 14: Panama – Sectors Highlights
Panama –Sectors Highlights During 4Q18, ongoing infrastructure projects should provide volume support, particularly the Panama-Northern Corridor, the Transísmica-Road rehabilitation, and the ITSE college Weakness in the residential and industrial-and-commercial sectors expected to continue, inventor
Slide 15: Results Highlights Costa Rica
Results Highlights Costa Rica
Slide 16: Costa Rica – Results Highlights
Costa Rica –Results Highlights 9M18 9M17 % var 3Q18 3Q17 % var Net Sales 112 114 -2% 33 37 -11% Financial Op. EBITDA Summary 37 40 -8% 11 13 -12% US$ Million as % net sales 32.9% 35.2% (2.3pp) 34.8% 35.1% (0.3pp) 9M18 vs. 9M17 3Q18 vs. 3Q17 3Q18 vs. 2Q18 Cement 6% -4% -20% Volume Ready mix 10% -6% -
Slide 17: Costa Rica – Sector Highlights
Costa Rica –Sector Highlights For 4Q18, demand for our products should be supported by projects currently under execution like the wholesale market in the North-Pacific region, the new building for the Parliament, the new Central-Bank building, as well as by the new Coca-Cola plant The government re
Slide 18: Results Highlights Rest of CLH
Results Highlights Rest of CLH
Slide 19: Rest of CLH – Results Highlights
Rest of CLH –Results Highlights 9M18 9M17 % var 3Q18 3Q17 % var Net Sales 180 189 -5% 56 57 -2% Financial Op. EBITDA Summary 56 68 -17% 16 20 -21% US$ Million as % net sales 31.2% 35.8% (4.6pp) 27.7% 34.2% (6.5pp) 9M18 vs. 9M17 3Q18 vs. 3Q17 3Q18 vs. 2Q18 Cement -3% 2% -3% Volume Ready mix 5% 12% -1
Slide 20: Nicaragua – Sector Highlights
Nicaragua –Sector Highlights Because of the economic deterioration, we expect our volumes to decrease in the high-single digits during 4Q18 on a sequential basis Although violence in the country receded, consumer and business confidence has been severely damaged by the socio-political crisis, partic
Slide 21: Guatemala – Sector Highlights
Guatemala –Sector Highlights Our cement and ready-mix volumes increased, by 14% and 19%, respectively, during 3Q18 The residential and industrial-and-commercial sectors were the main drivers of demand during the quarter supported by vertical-housing projects and shopping malls in Guatemala City We e
Slide 22: Other Information 3Q18 Results
OTHER INFORMATION 3Q18 Results
Slide 23: Free Cash Flow
Free Cash Flow US$ Million 9M18 9M17 % var 3Q18 3Q17 % var Operating. EBIT EBITDA 188 242 -22% 60 72 -17% - Net financial expense 43 47 14 14 - Maintenance Capex 26 36 11 13 - Change in working cap 10 -8 0 5 - Taxes paid 40 83 15 19 - Other cash items (net) 32 4 4 2 - Free cash flow 1 4 -2 1 discont
Slide 24: Income statement items
Income statement items Controlling interest net income reached US$20 million during 3Q18, US$8 million lower YoY primarily driven by lower gross profit and a negative effect in discontinued operations, partially offset by a positive effect in other expenses, net, as well as lower financial expenses
Slide 25: 2018 Guidance
2018 Guidance Volume YoY% Cement Ready - Mix Aggregates Colombia -8% -11% -14% Cement Ready - Mix Aggregates Panama -16% -16% 0% Costa Rica Cement Ready - Mix Aggregates 3% 5% 9% Consolidated volumes: - Cement: -8% - Ready-mix: -10% - Aggregates: -9% Total Capex US$55 M Maintenance Capex US$50 M Str
Slide 26: Consolidated debt as of September 30, 2018
Consolidated debt as of September 30, 2018 US$ Million 500 204 130 2018 2020 2023 Type Currency Cost US$ M Banks COP 8.80% 10 Intercompany USD 6ML + 250 bps 130 Intercompany USD 6ML + 255 bps 194 Intercompany USD Fixed 5.65% 500 Average Cost / Total USD 5.41%1 834 (1) Average Cost of USD denominated
Slide 27: Results 3Q18
RESULTS 3Q18 October 25, 2018