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
22 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 25, 2019
Slide 1: 3Q 2019 Results
3Q 2019 RESULTS October 25, 2019
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: 2019 Updates
2019 Updates ✓ Solid Cement ranked as one of the best-in-class1 in operative efficiency within CEMEX for 3Q19. ✓ APO Cement ranked as one of the best-in-class1 in quality within CEMEX for 3Q19. ✓ One-year anniversary of CEMEX Go in the Philippines; client-adoption rate at 96% for 3Q19. ✓ Achieved 3
Slide 4: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices 9M19 vs. 3Q19 vs. 3Q19 vs. 9M18 3Q18 2Q19 Domestic Volume (3%) (6%) (2%) Cement Price (PHP) 5% 3% (2%) Domestic cement volumes decreased by 6% year-over-year during the third quarter. • Performance reflects lower year-over-year construction activity, mainly related
Slide 5: Net Sales
Net Sales Net sales increased by 2% year-over-year during 9M19. Net Sales1 For the third quarter, net sales declined by 3% compared with the same period last year, due to lower volumes. 1 5 Millions of Philippine Pesos
Slide 6: Private Sector Construction
Private Sector Construction employment increased by 4% year-over-year during the third quarter. At 4.0 million persons, this represents the lowest level for 9M19. Residential sector activity remained flat, though macroeconomic fundamentals remain stable, given muted inflation effects, higher disposa
Slide 7: Public Sector Disbursements on Infrastructure and Capital Outlays
Public Sector Disbursements on Infrastructure and Capital Outlays (in PHP billion) +31% 240 220 +53% +49% 200 180 +34% 160 140 120 100 +57% -11% 80 -6% +6% -13% 60 -0.4% -40% 40 -57% 20 1Q18 2Q18 3Q18 4Q18 Jan Feb Mar Apr May Jun Jul Aug 19 19 19 19 19 19 19 19 % Refers to year-over-year growth Sour
Slide 8: Cost of Sales
Cost of Sales Cost of Sales Fuel and Power (% of net sales) (% of cost of sales) Fuel Power 62% 59% 59% 59% 22% 22% 24% 20% 22% 19% 23% 19% 3Q18 3Q19 9M18 9M19 3Q18 3Q19 9M18 9M19 Cost of sales, as a percentage of sales, during 9M19 remained flat at 59%. Efficiencies derived from power and fuels mit
Slide 9: Operating Expenses
Operating Expenses Distribution Selling and Administrative (% of net sales) (% of net sales) 20% 18% 20% 17% 12% 13% 12% 13% 3Q18 3Q19 9M18 9M19 3Q18 3Q19 9M18 9M19 Distribution expenses, as a percentage of sales, decreased by 3 pp year-over-year for 9M19 mainly due to lower double-handling, and sup
Slide 10: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA Variation1 18% 14% 19% 16% % Refers to operating EBITDA margin 1 Millions of Philippine Pesos Third quarter operating EBITDA increased by 28% year-over-year with an operating EBITDA margin of 18%. Year-to-date, operating EBITDA increased
Slide 11: Net Income
Net Income Net income for 9M19 benefited mainly from higher operating earnings, foreign exchange gains and lower income tax expenses. Higher financial expenses due to increases in debt level and benchmark rates. Unrealized foreign exchange losses amounting to PHP 146 million booked in the third quar
Slide 12: 3Q 2019 Free Cash Flow & Guidance
3Q 2019 FREE CASH FLOW & GUIDANCE
Slide 13: Free Cash Flow
Free Cash Flow January—September Third Quarter 2019 2018 % var 2019 2018 % var Operating EBITDA 3,446 2,850 21% 1,075 840 28% - Net Financial Expenses 1,067 799 352 272 - Maintenance Capex 386 493 28 131 - Change in Working Capital (1,140) (778) (583) (30) - Income Taxes Paid 274 420 93 177 - Other
Slide 14: Solid Cement Plant Capacity Expansion
Solid Cement Plant Capacity Expansion Civil works are ongoing, mainly related to excavation and foundation works for the different buildings/structures of the project. Vertical cement mill for the new line also arrived during the quarter. New line expected to start operations in the second quarter o
Slide 15: 2019 Guidance
2019 Guidance Cement volumes Flat PHP 975 million Maintenance CAPEX Capital expenditures PHP 4,700 million Solid Cement Plant Expansion CAPEX PHP 5,675 million Total CAPEX 15
Slide 16: Update regarding the Stock Rights Offering
Update regarding the Stock Rights Offering ✓ Initiated the corresponding processes with the Securities and Exchange Commission of the Philippines and the Philippine Stock Exchange, following approval of stockholders to increase the authorized capital stock of CHP during a special meeting of stockhol
Slide 17: Q&A Session
Macc | Peer Q&A SESSION 3Q 2019 RESULTS
Slide 18: Appendix
/ Mr ccmex | Prurrnes a 3Q 2019 7. APPENDIX egg Pas ah =oee ad Trews Apia Ae er 1 Pee! y
Slide 19: Debt Maturity Profile
Debt Maturity Profile Leases Related Party Loans1 6,317 BDO Debt 32 Total Debt: PHP 20,235 4,493 5,840 Avg. life of debt2: 5.3 years 34 3 104 Net Debt to EBITDA : 4.4x 4,834 1,749 535 5,806 4,389 1,152 244 1,074* 383 1,451 243 35 22 209 35 140 140 2019 2020 2021 2022 2023 2024 2025 2026 ³ 2027 All a
Slide 20: Additional Debt Information
Additional Debt Information Third Quarter Second Quarter 2019 2018 % var 2019 Total debt(1)(2) 20,235 17,769 14% 21,162 Short term 9% 5% 8% Long term 91% 95% 92% Cash and cash equivalents 2,592 2,517 3% 4,275 Net debt 17,643 15,252 16% 16,887 Leverage Ratio(3) 4.04 4.84 Coverage Ratio(3) 3.40 3.28 N
Slide 21: Definitions
Definitions 9M19 / 9M18 Results for the first nine months of the years 2019 and 2018, respectively PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products. Operating EBITDA Operating earnings before ot
Slide 22: Contact Information
Contact Information Investor Relations Stock Information In the Philippines PSE: +632 8849 3600 CHP chp.ir@cemex.com 22