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 — Q4 2018 Earnings Presentation
24 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Feb 8, 2019
Slide 1: 4Q 2018 Results
4Q 2018 RESULTS February 8, 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: 2018 Highlights
2018 Highlights ✓ Zero Employee and Contractor LTI (Lost Time Injury) in 2018 ✓ Record sales volume for the full year (2018) ✓ Record sales volume for a semester (1H18) ✓ Record sales volume for a quarter (3Q18) ✓ Operative efficiency above 90% for all kilns (Solid Cement and APO Cement) ✓ Plant Qua
Slide 4: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices 4Q18 vs. 4Q18 vs. 9M18 vs. 2018 vs. 2017 4Q17 3Q18 9M17 Domestic Volume 7% 0% (10%) 10% Cement Price (PHP) 1% 6% 1% (1%) Domestic cement volumes were flat year-over-year during the fourth quarter. • Production constraints caused by the landslide in Naga, Cebu, near
Slide 5: Net Sales
Net Sales Net sales increased year-over-year by 6% during the Net Sales1 fourth quarter and by 7% in 2018. +7% +6% 21,784 23,418 5,223 5,513 4Q17 4Q18 2017 2018 1 Millions of Philippine Pesos 5
Slide 6: Private Sector construction
Private Sector Total construction gross value grew by 19% and 15%, Approved Building Permits respectively, in the fourth quarter and full year 2018. Year-over-year growth Residential construction remained solid in the fourth based on floor area1 quarter of 2018, supported by the demand from OFWs, 60
Slide 7: Public Sector Disbursement on Infrastructure and Capital Outlays
Public Sector Disbursement on Infrastructure and Capital Outlays Infrastructure construction continued to grow in (in PHP billion)1 the fourth quarter of 2018 supported by 50% y-o-y 2017 2018 growth in infrastructure and capital outlay +83% disbursements in the first eleven months of 2018. +75% The
Slide 8: Cost of Sales
Cost of Sales Cost of sales, as a percentage of sales, was 7 Cost of Sales Fuel and Power pp* higher year-over-year in 4Q18 due to (% of sales) (% of cost of sales) increased raw material costs as APO Cement Plant used raw materials from other sources following the landslide in Naga, Cebu. Excluding
Slide 9: Operating Expenses
Operating Expenses Distribution Selling and Administrative Distribution expenses, as a percentage of (% of net sales) (% of net sales) sales, decreased by 2 pp year-over-year during the fourth quarter mainly due to optimization of vessel charter agreements. For 2018, distribution expenses, as a perc
Slide 10: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA Variation1 Fourth quarter operating EBITDA decreased by 41% year-over-year. 12% 7% 13%2 Operating EBITDA margin during the quarter was 7%, 5 pp lower than 4Q17. Margins were affected by increased raw material costs as APO Cement Plant use
Slide 11: Net Income
Net Income Net income for the fourth quarter recorded a loss of PHP 325 million, Net Income1 mainly due to lower operating EBITDA, higher financial expenses, and higher income tax expenses. For 2018, the company incurred a loss of PHP 930 million due to higher 659 income tax expenses recorded in the
Slide 12: 4Q 2018 Free Cash Flow & Guidance
4Q 2018 FREE CASH FLOW & GUIDANCE
Slide 13: Free Cash Flow
Free Cash Flow January—December Fourth Quarter Free cash flow in 2018 reached 2018 2017 2018 2017 % var % var PHP 1.0 billion after maintenance 1 CAPEX and PHP 733 million after Operating EBITDA 2,783 3,256 (15%) 372 628 (41%) strategic CAPEX as efforts to extend —Net Financial Expenses 952 895 275
Slide 14: Sustaining Growth
Sustaining Growth Capture growth • Solid Cement expansion Improve Customer Experience Favorable Macroeconomic • CEMEX Go Fundamentals Empowered to • Net Promoter Score serve and Growing deliver Operational Improvements Cement Demand • Increase production via lower clinker utilization • Productivity
Slide 15: Solid Cement Plant Capacity Expansion
Solid Cement Plant Capacity Expansion Expected total investment of US$ 235 million New line expected to start operations in the fourth quarter of 2020 Approval of Philippine Board of Investments (BOI) application, entitling the new line to tax incentives Investment to date of US$ 64 million, of whic
Slide 16: 2019 Updates
2019 Updates ✓ Major works for Solid Cement new line expansion to start in 2019 ✓ Implement new supply chain initiatives to lower distribution cost as a percentage to sales by 1 to 2 pp ✓ Further increase in cement production via lower clinker utilization ✓ Shift in coal mix for greater cost-efficie
Slide 17: 2019 Guidance
2019 Guidance Cement volumes 8-10% PHP 975 million Maintenance CAPEX Capital expenditures PHP 6,775 million Solid Cement Plant Expansion CAPEX PHP 7,450 million Total CAPEX
Slide 18: Performance and Strategy Highlights
Performance and Strategy Highlights ✓ Highly efficient operations, ranking among the top in CEMEX globally ✓ Operating in a growing market, supported by private and public construction, with sound macroeconomic fundamentals ✓ Running at high capacity utilization, requiring additional capacity to con
Slide 19: 4Q 2018 Results
SESSION ry al 4Q 2018 RESULTS
Slide 20: Appendix
Sn 4Q 2018 APPENDIX
Slide 21: Debt-related Information
Debt-related Information During the fourth quarter of 2018, SOLID Cement Corporation (“SOLID”) availed of a subordinated revolving credit facility from a related company, CEMEX Asia, B.V. Principal Amount: Up to US$ 75 million Use of Proceeds: General corporate purposes including the refinancing of
Slide 22: Debt Information
Debt Information Maturity Profile1 2 6,656 Related Party Loans BDO Debt 5,027 Total Debt: PHP 17,378 4,201 Avg. life of debt: 4.2 years Net Debt to EBITDA3: 5.6x 2,537 1,214 1,074 1,664 140 140 140 2019 2020 2021 2022 2023 2024 1 Millions of Philippine Pesos 2 Pertains to loans with CEMEX Asia B.V.
Slide 23: Definitions
Definitions 9M18 / 9M17 Results for the first nine months of the years 2018 and 2017, 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 24: Contact Information
Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP chp.ir@cemex.com