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: Results 3Q19
RESULTS 3Q19 O c t ober 2 4 , 2 0 1 9
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,” “assume,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “be
Slide 3: Financial Results Summary
Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -11% 849 752 -12% -24% -3.3pp -3.5pp 277 245 -26% 192 . 7% 2% 22 22 . 146 62 4% 19 . . 7% 18 46 9M18 9M19 3Q18 3Q19 9M18 9M19 3Q18 3Q19 9M18 9M19 3Q18 3Q19 3
Slide 4: Consolidated Volumes and Prices
Consolidated Volumes andPrices 9M19 vs. 3Q19 vs. 3Q19 vs. 9M18 3Q18 2Q19 Domestic gray cement volumes during 3Q19 improved by 1% YoY Volume 1% 1% 1% Domestic gray Price (USD) -8% -9% -3% cement Price (LtL ) -1% -1% -2% Improved quarterly cement prices 1 in Colombia and Nicaragua were offset by lower
Slide 5: EBITDA Variation 9M19
EBITDA Variation 9M19 -24% 192 -15 7 -23 -8 4 -10 146 EBITDA Vol Price O. Costs Dist SG&A FX EBITDA 9M18 9M19 22.7% 19.4% -3.3pp EBITDA EBITDA Margin 9M18 Margin 9M19 5
Slide 6: Regional Highlights 3Q Results
REGIONAL HIGHLIGHTS 3Q 1 9 R e s u l t s
Slide 7: Results Highlights Colombia
Results Highlights Colombia
Slide 8: Colombia – Results Highlights
Colombia –Results Highlights 9M19 9M18 % var 3Q19 3Q18 % var We are very pleased with our Net Sales 376 399 -6% 127 134 -6% cement volume and price Financial Op. EBITDA performance during 3Q19 Summary 59 74 -20% 20 26 -25% US$ Million as % net sales 15.7% 18.5% (2.8pp) 15.7% 19.7% (4.0pp) 9M19 vs. 9
Slide 9: Colombia – Residential Sector
Colombia –Residencial Sector We estimate that cement-industry dispatches to the residential sector increased in the low-single digits during the 3Q19 YoY Cement volumes to the self-construction segment improved during 3Q19, driven mainly by the economic recovery In the social-housing segment, housin
Slide 10: Colombia – Infrastructure Sector
Colombia –Infrastructure Sector The infrastructure sector continued its positive performance during 3Q19, increasing in the double digits We continued dispatching our products to several 4G projects; our estimated participation for cement/ready-mix in these projects reached around 40% The Bogota-Met
Slide 11: Colombia – Maceo Project Update
Colombia –Maceo Project Update As disclosed last September, “Corantioquia” approved to remove the Maceo-project land from the “Integrated Management District” This approval, as well as the agreement reached last April with the government agency “SAE”, represent relevant milestones in the process to
Slide 12: Results Highlights Panama
Results Highlights Panama
Slide 13: Panama – Results Highlights
Panama –Results Highlights 9M19 9M18 % var 3Q19 3Q18 % var Cement demand remained weak Net Sales 143 169 -16% 45 58 -22% during the quarter affected by high Financial Op. EBITDA inventories in apartments and Summary 38 52 -27% 14 17 -18% offices US$ Million as % net sales 26.8% 30.8% (4.0pp) 30.7% 2
Slide 14: Panama – Sector Highlights
Panama –Sector Highlights Next year, cement volumes should be driven by infrastructure projects and by the social-housing segment In the infrastructure sector, the “Corredor de las Playas” highway and the Fourth Bridge over the canal, among other projects, should ramp-up volumes next year. Additiona
Slide 15: Results Highlights Costa Rica
Results Highlights Costa Rica
Slide 16: Costa Rica – Results Highlights
Costa Rica –Results Highlights 9M19 9M18 % var 3Q19 3Q18 % var Cement demand remained weak during the quarter, affected by Net Sales 80 112 -28% 25 33 -25% Financial uncertainty related to the tax reform Summary Op. EBITDA 24 37 -36% 5 12 -58% and by the slow execution of US$ Million as % net infras
Slide 17: Costa Rica – Sector Highlights
Costa Rica –Sector Highlights We expect our cement volumes to decline from 21% to 22% during 2019 Next year, cement demand should be driven by the expected reactivation of construction activity in the private sector, and the current pipeline of infrastructure projects which has been delayed this yea
Slide 18: Results Highlights Rest of CLH
Results Highlights Rest of CLH
Slide 19: Rest of CLH – Results Highlights
Rest of CLH –Results Highlights 9M19 9M18 % var 3Q19 3Q18 % var Cement volumes declined due to Net Sales 164 180 -9% 51 56 -9% lower construction activity in Financial Op. EBITDA Nicaragua Summary 46 58 -20% 14 16 -15% US$ Million as % net sales 28.3% 32.4% (4.1pp) 27.1% 29.1% (2.0pp) 9M19 vs. 9M18
Slide 20: Nicaragua – Sector Highlights
Nicaragua –Sector Highlights The socio-political crisis remains unsolved and continues to affect construction activity Our cement volumes during the quarter declined by 20% YoY. Going forward the self-construction sector should continue supporting cement consumption in the country For 2019, we expec
Slide 21: Guatemala – Sector Highlights
Guatemala –Sector Highlights After the 2nd round of the presidential elections held in August, Alejandro Giammattei from a center-right party resulted president elect. There is optimism in the country with the results of the elections Our quarterly cement volumes in the country remained stable YoY W
Slide 22: Other Information 3Q Results
OTHER INFORMATION 3Q 1 9 R e s u l t s
Slide 23: CEMEX Go update
CEMEX Go update As of September, we are receiving about 77% of cement-purchase Our digital solutions are evolving to orders through CEMEX Go offer customers a superior omnichannel experience Services like the invoice administration and the electronic proof of delivery, reached adoption levels of 77%
Slide 24: Free Cash Flow
Free Cash Flow US$ Million 9M19 9M18 % var 3Q19 3Q18 % var Our free cash flow improved to Operating . EBIT EBITDA 146 192 -24% 45 62 -27% US$50 million YTD September - Net financial expense 40 44 13 14 - Maintenance Capex 30 29 13 11 - Change in working cap -9 10 -4 1 Financial expenses during 3Q19
Slide 25: Income Statement
Income Statement US$ Million 9M19 9M18 % var 3Q19 3Q18 % var Our Net Income during the quarter Net sales 752 849 -11% 245 277 -12% - Cost of sales 462 501 149 162 was a US$4 million loss Gross profit 290 347 -16% 96 114 -16% - Operating expenses 203 217 68 73 Operating earnings before other The Othe
Slide 26: Consolidated debt as of September 30, 2019
Consolidated debt as of September 30, 2019 US$788 M total debt. US$ Million The loans due next year are mostly 456 with CEMEX S.A.B. de C.V. 308 subsidiaries, and we are comfortable with the refinancing prospects 2020 2021 2022 2023 3.8x Net Debt / EBITDA Type Currency Cost US$ M Banks COP 9.21% 6 I
Slide 27: 2019 Guidance
2019 Guidance Volume YoY% Consolidated volumes: Cement: -2% to -1% Cement Ready—Mix Aggregates Ready-mix: -8% to -7% Colombia Aggregates: -9% to -8% 8% to 9% 3% to 4% 0% to 1% Cement Ready—Mix Aggregates Total CAPEX US$50 M Panama Maintenance US$45 M -15% to -14% -27% to -26% -25% to -24% Strategic
Slide 28: 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,” “assume,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “be
Slide 29: Results 3Q19
RESULTS 3Q19 O c t ober 2 4 , 2 0 1 9
Slide 30: Contact Information
Contact Information Investor Relations Stock Information Pablo Gutiérrez, CFA Colombian Stock Exchange Phone: +57(1) 603-9051 CLH E-mail: pabloantonio.gutierrez@cemex.com Juan Camilo Álvarez Phone: +57(1) 603-9909 E-mail: juancamilo.alvarez@cemex.com 30