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 — Q1 2020 Earnings Presentation
33 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Apr 30, 2020
Slide 1: Results 1Q20
RESULTS 1Q20 April3 0, 2 0 2 zero Photo by: Esteban Vega. Revista Semana. Corabastos market in Bogotá, Colombia.
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,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “e
Slide 3: Construction is a safe and essential industry
Construction is a safe and essential industry Can be performed with low risk of virus Significant economic and social transmission contribution Tightly controlled work environments Important percentage of GDP Not open to the general public Provide infrastructure requirements Work is carried in the o
Slide 4: Focused on three main priorities during these challenging times
Focused on three main priorities during these challenging times Protect the health Support our and safety of our customers as much Strengthen our cash employees and their as possible in a position families, customers, responsible way and communities 4
Slide 5: Health and safety is our number one priority
Health and safety is our number one priority ƒ¼ Established Rapid Response Teams ƒ¼ Appointed a COVID-19 coordinator in all our sites ƒ¼ Developed over 50 new protocols and guidelines designed to protect our employees, customers and communities ƒ¼ Modified processes to implement physical distancing
Slide 6: Committed to supporting our customers
Committed to supporting our customers ƒ¼ Adopted measures designed to maintain business continuity ƒ¼ Sales force and service centers enabled with remote-work tools and capabilities ƒ¼ Sharing best practices with clients ƒ¼ Leveraging on CEMEX Go to support our clients at a distance ƒ¼ Monitoring de
Slide 7: Strengthen our cash position
Strengthen our cash position ƒ¼ Suspending or reducing: ƒ~ Capital expenditures ƒ~ Budgeted operating expenses ƒ~ Production and inventory levels in all our markets ƒ~ Corporate and global networks activities ƒ¼ Voluntary waiver or deferral of salaries for the next three months in several layers of
Slide 8: Financial Results Summary
Financial Results Summary Net sales during 1Q20 down by 11% in local-currency terms. Sales Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) impacted in March by the virus-containment measures -17% -16% 0.2pp The U.S. dollar appreciated vs. the Colombian peso by 17% during 55 1Q20 in averag
Slide 9: Consolidated Volumes and Prices
Consolidated Volumes and Prices 1Q20 1Q19 vs. 1Q20 4Q19 vs. Cement volumes in line with guidance YTD February, however, Domestic Volume -11% -11% declined by 27% in March YoY gray Price (USD) -4% 0% cement Price (LtL1) 3% 3% Cement prices up by 3% during 1Q20 in local-currency terms , both Volume -2
Slide 10: EBITDA Variation 3M20
EBITDA Variation 3M20 -16% 55 -16 4 2 -4 7 -2 46 EBITDA Vol Price Operating Dist. SG&A FX EBITDA 3M19 Costs 3M20 21.2% 21.4% +0.2pp EBITDA EBITDA Margin 3M19 Margin 3M20 10
Slide 11: Regional Highlights
REGIONAL HIGHLIGHTS 1 Q 2 0 R e s u l t s
Slide 12: Results Highlights Colombia
Results Highlights Colombia
Slide 13: Colombia Results Highlights
Colombia Results Highlights Industry cement demand up ~7% 1Q20 1Q19 % var YTD February, with an estimated Net Sales 102 128 -21% 30% decline during March due to Financial the COVID-19 restrictions Summary Op. EBITDA 17 22 -24% US$ Million as % net sales 16.3% 17.1% (0.8pp) Our cement and ready-mix p
Slide 14: Colombia Infrastructure Sector
Colombia Infrastructure Sector Encouraging that infrastructure and construction in general was prioritized to resume activities in Colombia 4G projects restarted first; expect total cement/ready-mix demand to reach 1.2 million m3 during 2020, more than 50% vs. 2019 Regional projects could be delayed
Slide 15: Colombia Housing Sector
Colombia Housing Sector Demand from the self-construction sector, while is typically resilient during crisis, could be impacted by an expected increase in unemployment and lower remittances Low-income housing should restart supported by guaranteed government subsidies and lower interest rates. Howev
Slide 16: Results Highlights Panama
Results Highlights Panama
Slide 17: Panama Results Highlights
Panama Results Highlights 1Q20 1Q19 % var We estimate that industry cement Net Sales 35 50 -31% demand declined by ~30% during Financial 1Q20; in line with our volumes Summary Op. EBITDA 10 14 -25% US$ Million as % net sales 30.0% 27.7% 2.3pp Previous to the COVID-19 impact, 1Q20 vs. 1Q19 1Q20 vs. 4
Slide 18: Panama Highlights
Panama Highlights New 30% tariff to imported cement from April to Dec 31st 2020; implemented to protect local employment during the crisis After an initial quarantine from March 25 to April 25, the government extended the suspension of the construction industry until May 24 Infrastructure should be
Slide 19: Results Highlights Costa Rica
Results Highlights Costa Rica
Slide 20: Costa Rica Results Highlights
Costa Rica Results Highlights 1Q20 1Q19 % var We estimate that industry cement demand declined by ~4% during Net Sales 25 28 -9% 1Q20, in line with our volumes Financial Summary Op. EBITDA 8 10 -21% US$ Million as % net sales 30.9% 35.6% (4.7pp) Economic and construction 1Q20 vs. 1Q19 1Q20 vs. 4Q19
Slide 21: Costa Rica Highlights
Costa Rica Highlights The Government has taken effective actions to limit the spread of COVID-19, while avoiding a shutdown Construction activity continues; infrastructure projects such as “Circunvalación Norte”, “Rio Virilla” bridge and the “Garantías Sociales” bridge, among others, providing volum
Slide 22: Results Highlights Rest of CLH
Results Highlights Rest of CLH
Slide 23: Rest of CLH Results Highlights
Rest of CLH Results Highlights 1Q20 1Q19 % var Cement volumes improved by 5% Net Sales 57 57 1% YoY; volumes increased in Financial Nicaragua, Guatemala and El Summary Op. EBITDA 17 17 2% US$ Million Salvador as % net sales 30.5% 30.2% 0.3pp 1Q20 vs. 1Q19 1Q20 vs. 4Q19 Our prices remained flat for C
Slide 24: Nicaragua Highlights
Nicaragua Highlights Our cement volumes up 2% during the quarter; first year-over-year increase since 4Q17 Cement volumes driven by a mild reactivation of the self-construction sector and government-sponsored projects Economic and social activity remains relatively normal as schools, shops and sport
Slide 25: Guatemala Highlights
Guatemala Highlights Our cement volumes up 7% during the quarter, double-digit increase YTD February, and a low-single-digit decline during March Cement volumes driven by the self-construction sector, as well as by industrial-and-commercial projects in Guatemala City and other main cities The Govern
Slide 26: Other Information
OTHER INFORMATION 1 Q 2 0 R e s u l t s
Slide 27: Free Cash Flow generation
Free Cash Flow generation Free cash flow declined due to US$ Million 1Q20 1Q19 % var lower EBITDA and increased Operating . EBIT EBITDA 46 55 -16% working capital investment, despite lower financial expenses, - Net financial expense 13 14 CAPEX and taxes - Maintenance Capex 2 5—Change in working cap
Slide 28: Income Statement
Income Statement US$ Million 1Q20 1Q19 % var Controlling Interest Net loss mainly Net sales 214 258 -17% due to lower sales and a negative - Cost of sales 127 155 effect in the Other-income-and-Gross profit 87 104 -16% expenses-net line. These effects - Operating expenses 61 70 were partially offset
Slide 29: Consolidated debt as of March 31, 2020
Consolidated debt as of March 31, 2020 US$ Million US$766 M total debt 491 3.9x Net Debt / LTM EBITDA 165 During April, CLH subsidiaries in 84 Colombia and Panama obtained 4 2020 2021 2022 2023 2024 bank financings for the equivalent of US$29 million with a maturity of Borrower Lender Currency Cost
Slide 30: 2020 Guidance
2020 Guidance Total CAPEX US$30 M Maintenance US$25 M Strategic US$5 M Cash Taxes US$50 M 30
Slide 31: 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,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “e
Slide 32: Results 1Q20
RESULTS 1Q20 A pr i l 3 0 , 2 0 2 0 Photo by: Esteban Vega. Revista Semana. Corabastos market in Bogotá, Colombia.
Slide 33: 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 33