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 2017 Earnings Presentation
30 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 26, 2017
Slide 1: 2017 Third Quarter Results
2017 Third Quarter Results Exhibit 99.3
Slide 2: Forward-looking statements disclaimer
This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends, but are not limited to, these forward-looking statements to be covered by the safe harbor provisions for for
Slide 3: Higher like-to-like prices; operating EBITDA declined 8%
Higher like-to-like consolidated prices for our three core products during the quarter and year-to-date September, on a year-over-year basis Sales on a like-to-like basis increased 1% during 3Q17 due to favorable prices in Mexico and the U.S., as well as higher cement volumes in the U.S., Europe and
Slide 4: Free cash flow conversion rate reached 62%
Free cash flow conversion rate1 reached 62% Controlling interest net income Free cash flow Millions of U.S. dollars 1 Free cash flow conversion rate = Free cash flow after maintenance CAPEX / EBITDA 2 Includes Other Cash Items plus Free Cash Flow Discontinued Operations Other2 Maint. CapEx FCF after
Slide 5: Free cash flow and divestments used to reduce debt
Free cash flow generation and divestments proceeds mainly used to reduce debt We have reduced total debt plus perpetuals by close to US$3.8 billion since December 2015, representing a reduction of approximately 25% New facilities agreement for US$4.05 billion under improved conditions, extending ave
Slide 6: Third Quarter 2017 Regional Highlights
Third Quarter 2017 Regional Highlights
Slide 7: Mexico: 3Q17 EBITDA increased 13%
3Q17 EBITDA increased 13% and EBITDA margin increased 2pp, on a year-over-year basis Construction activity affected during the quarter by natural disasters, as well as lower infrastructure spending Higher sequential and year-over-year prices for cement and ready mix during the quarter Slight loss in
Slide 8: United States: operating EBITDA increased 1%
3Q17 operating EBITDA increased by 1% on a like-to-like basis Cement volumes increased 2% during the quarter on a like-to-like basis despite significant precipitation as well as the impact of two hurricanes in our footprint Cement prices on a like-to-like basis increased 5% during the quarter on a y
Slide 9: South, Central America and the Caribbean
Regional cement volumes on a like-to-like basis decreased by 2% reflecting declines in Colombia, Panama and Guatemala, as well as the impact of the hurricanes in Puerto Rico and, to a lesser extent, the Dominican Republic In Colombia, cement volumes declined 4% during the quarter; local-currency cem
Slide 10: Europe: regional volumes increased
Increase in regional volumes for our three core products during the first nine months of the year In the UK, our quarterly cement volumes reflect softening market conditions due to political uncertainties In Spain, cement volume growth reflects continued strong activity in the residential sector In
Slide 11: Asia, Middle East and Africa
Increase in quarterly regional volumes for our three core products In the Philippines, cement volumes increased 2% during the quarter supported by improved infrastructure activity and modest growth in the residential and industrial-and-commercial sectors In Egypt, the slight decrease in cement volum
Slide 12: Third Quarter 2017 Results
Third Quarter 2017 3Q17 Results
Slide 13: Operating EBITDA, cost of sales and operating expenses
Operating EBITDA declined by 8% on a like-to-like basis due to lower contributions in SAC, Europe and AMEA regions, partially offset by higher contributions in Mexico and the U.S. Cost of sales, as a percentage of net sales, increased by 1.4pp during the quarter mainly reflecting higher energy costs
Slide 14: Average working capital days and free cash flow
Average working capital days Free cash flow Average working capital days decreased to -5 during 3Q17 from 1 during the same period in 2016
Slide 15: Other income statement items
Other income statement items Other expenses, net, of US$68 million mainly includes impairment of assets and severance payments Foreign-exchange gain of US$31 million resulting primarily from the fluctuation of the Mexican peso versus the U.S. dollar Gain on financial instruments of US$95 million mai
Slide 16: New US$4.05 billion facilities agreement
In July, CEMEX entered into a new facilities agreement for US$4.05 billion under improved conditions, extending our average life of debt and reducing our cost of debt1: 5-year term, with an average debt maturity of 4.3 years Total amount includes a revolving credit line of approximately US$1.135 bil
Slide 17: Consolidated debt maturity profile
Millions of U.S. dollars Avg. life of debt: 5.0 years 1 CEMEX has perpetual debentures totaling US$446 million 2 Convertible Subordinated Notes include only the debt component of US$865 million; total notional amount is about US$886 million 3 Includes the remaining balance of the 9.375% senior secur
Slide 18: Consolidated debt maturity profile – pro forma
Millions of U.S. dollars Avg. life of debt: 5.1 years 1 Debt maturity profile presented on a proforma basis reflecting call payment on October 12th 2017 of US Senior Secured Notes of 9.375% due on 2022, applying US$174M held in cash reserve, and US$170M withdrawn from the revolving credit facility d
Slide 19: 2017 Outlook
Third Quarter 2017 2017 Outlook
Slide 20: 2017 guidance
2017 guidance 1 Including perpetual and convertible securities Consolidated volumes Cement: 0% Ready mix: 1% - 3% Aggregates: 0% - 3% Energy cost per ton of cement produced Increase of approximately 12% Capital expenditures US$520 million Maintenance CapEx US$210 million Strategic CapEx US$730 milli
Slide 21: Progress of initiatives on road to investment grade
Progress of initiatives as of 3Q17 to further bolster our road to investment grade Initiatives Progress to date Building Blocks Targets 2016 & 2017 Asset divestments ~ US$2.7 billion US$2,655 divestments to date US$2.5 billion Total debt reduction ~ US$3.8 billion US$3,769 debt reduction to date + f
Slide 22: Third Quarter 2017 Appendix
Third Quarter 2017 + Appendix Macncx Centro Roberto Garza Sada, Mexico
Slide 23: Consolidated volumes and prices
During the quarter and on a like-to-like basis, higher year-over-year cement volumes in the U.S., and the Europe and AMEA regions Quarterly and year-to-date increases in consolidated prices for our three core products, on a like-to-like basis Consolidated volumes and prices
Slide 24: Additional information on debt and perpetual notes: currency and rate
Additional information on debt and perpetual notes Currency denomination Interest rate
Slide 25: Additional information on debt and perpetual notes: by instrument
Additional information on debt and perpetual notes Total debt1 by instrument
Slide 26: 9M17 volume and price summary: selected countries
9M17 volume and price summary: Selected countries
Slide 27: 3Q17 volume and price summary: selected countries
3Q17 volume and price summary: Selected countries
Slide 28: 2017 expected outlook: selected countries
2017 expected outlook: Selected countries
Slide 29: Definitions
Definitions 9M17 / 9M16 Results for the first nine months of the years 2017 and 2016, respectively AMEA Asia, Middle East and Africa Cement When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported cement volumes changed from total do
Slide 30: Contact information
Contact information Stock Information NYSE (ADS): CX Mexican Stock Exchange: CEMEXCPO Ratio of CEMEXCPO to CX: 10 to 1 Investor Relations In the United States +1 877 7CX NYSE In Mexico +52 81 8888 4292 ir@cemex.com