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 — Q2 2020 Earnings Presentation
33 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Jul 27, 2020
Slide 1: Results 2Q20
Exhibit 3 RESULTS 2Q20 J u l y 2 7 , 2 0 2 0Exhibit 3 RESULTS 2Q20 J u l y 2 7 , 2 0 2 0
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,”
Slide 3: Key messages 2Q20
||Key messages 2Q20 ✓ New COVID-19 safety protocols designed to allow us to continue operating safely and effectively ✓ Volumes significantly impacted during the quarter by COVID-19. Despite the declining sales environment during 2Q20: ➢ Improved EBITDA margin by 1.4pp YoY ➢ Increased cement volumes
Slide 4: Update on our three main priorities during these challenging times
||Update on our three main priorities during these challenging times Strengthen our Health & Safety Customer Experience Financial Position 4||Update on our three main priorities during these challenging times Strengthen our Health & Safety Customer Experience Financial Position 4
Slide 5: Health and safety is our number one priority
||Health and safetyis our number onepriority ✓ Implemented >50 protocols to reduce contagion risks; deploying family playbook ✓ Developed “Health Check” app to track employees health; conducted ~870 tests to detect asymptomatic employees ✓ Appointed a COVID-19 coordinator in all our sites, 132 in to
Slide 6: Committed to enhance our customer experience
||Committed to enhance our customer experience ✓ Launched the “CEMEX te acompaña” program for our customers ➢ Providing trainings on our protocols ➢ Offering webinars on topics of interest: >80,000 people watched ➢ Providing high technology products that improve construction efficiency ➢ Offering su
Slide 7: Strengthen our financial position
||Strengthen ourfinancial position ✓ Hard stop of fees and expenses, hiring and salary freezes, maintenance adjustments, headcount optimization, among others. These measures are in addition to our pre-COVID savings plan which included initiatives related to our low- cost-sourcing program, supply cha
Slide 8: Financial Results Summary
||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -29% -25% 0.9pp -41% -36% 1.4pp 6M19 6M20 2Q19 2Q20 6M19 6M20 6M19 6M20 2Q19 2Q20 2Q19 2Q20 8 507 362 249 148 100 75 46 29 19.8% 20.7% 18.3% 19.7%||Financial Results Summary Net Sales Operating EBITDA Margin EBITD
Slide 9: Consolidated Volumes and Prices
||Consolidated Volumes andPrices 6M20 vs. 2Q20 vs. 2Q20 vs. 6M19 2Q19 1Q20 Volumes were impacted during 2Q20 by the COVID-19 restrictions in most of our markets Volume -22% -33% -24% Domestic gray Price (USD) -3% -3% 0% cement Price (LtL ) 3% 4% 0% 1 Strong pickup in activity in the back half of the
Slide 10: EBITDA Variation 6M20
||EBITDA Variation 6M20 -25% 100 -60 9 16 -5 18 -4 75 EBITDA Vol Price Operating Dist SG&A FX EBITDA 6M19 Costs 6M20 19.8% 20.7% +0.9pp EBITDA EBITDA Margin 6M19 Margin 6M20 10||EBITDA Variation 6M20 -25% 100 -60 9 16 -5 18 -4 75 EBITDA Vol Price Operating Dist SG&A FX EBITDA 6M19 Costs 6M20 19.8% 2
Slide 11: Regional Highlights 2Q20 Results
REGIONAL HIGHLIGHTS 2 Q 2 0 R e s u l t sREGIONAL HIGHLIGHTS 2 Q 2 0 R e s u l t s
Slide 12: Results Highlights Colombia
Results Highlights ColombiaResults Highlights Colombia
Slide 13: Colombia – Results Highlights
||Colombia –Results Highlights Our cement volumes declined by 6M20 6M19 % var 2Q20 2Q19 % var 40% in 2Q20, however, volumes 169 250 -32% 67 122 -45% Net Sales recovered during June, declining a Financial Op. EBITDA 28 39 -28% 12 17 -32% high-single digit YoY and Summary US$ Million significantly imp
Slide 14: Colombia – Infrastructure Sector
|| Colombia –Infrastructure Sector 4G projects restarted first; expect industry ready-mix demand to 3 reach 1.2 million m during 2020, 50% higher vs. 2019 In Bogota, projects already awarded should start soon, such as 3 hospitals, “Transmilenio” extensions and a water-treatment plant. The Metro and
Slide 15: Colombia – Housing and Industrial & Commercial Sectors
|| Colombia –Housing and Industrial & Commercial Sectors Cement demand from the self- construction sector recovered significantly during June Regarding formal housing, we are encouraged by the government announcement of 200,000 subsidies for low- and mid-income new housing in next 2 years In the ind
Slide 16: Results Highlights Panama
Results Highlights PanamaResults Highlights Panama
Slide 17: Panama – Results Highlights
||Panama –Results Highlights Country with the most severe 6M20 6M19 % var 2Q20 2Q19 % var COVID-19 restrictions; 41 98 -58% 7 48 -86% Net Sales construction industry fully stopped Financial Op. EBITDA 7 24 -72% -3 11 n/a during April and May Summary US$ Million as % net 16.8% 24.9% (8.1pp) -51.4% 22
Slide 18: Panama – Highlights
|| Panama – Highlights We partially resumed activities in early June for the supply of certain infrastructure projects and hardware stores Limited cement demand visibility due to COVID-19, however, government stated that infrastructure projects will drive economic reactivation th Landmark projects s
Slide 19: Results Highlights Costa Rica
Results Highlights Costa RicaResults Highlights Costa Rica
Slide 20: Costa Rica – Results Highlights
||Costa Rica –Results Highlights Our cement volumes declined by 6M20 6M19 % var 2Q20 2Q19 % var 15% during 2Q20, in line with the 46 55 -17% 20 27 -26% Net Sales industry; COVID-19 restrictions Financial Op. EBITDA 14 19 -24% 7 9 -27% had a relatively mild impact during Summary US$ Million as % net
Slide 21: Costa Rica – Highlights
|| Costa Rica –Highlights Stricter COVID-19 containment measures implemented in July; construction activity was restricted for 9 days in districts marked in “orange alert” In the infrastructure sector, ongoing projects should continue supporting cement volumes. Additionally, the “Taras-La Lima” over
Slide 22: Results Highlights Rest of CLH
Results Highlights Rest of CLHResults Highlights Rest of CLH
Slide 23: Rest of CLH – Results Highlights
||Rest of CLH –Results Highlights Cement volumes improved by 5% 6M20 6M19 % var 2Q20 2Q19 % var during 2Q20; volumes increased in 114 113 0% 56 57 0% Net Sales Guatemala and Nicaragua Financial Op. EBITDA 37 33 15% 20 15 29% Summary US$ Million as % net 33.0% 28.8% 4.2pp 35.5% 27.3% 8.2pp sales Our
Slide 24: Guatemala – Highlights
|| Guatemala – Highlights We estimate that industry volumes declined a low- to mid-single digit during 2Q20, affected by lower formal construction activity in Guatemala City However, our cement volumes improved during this period due to our relatively low exposure to the formal sector and to increas
Slide 25: Nicaragua – Highlights
|| Nicaragua –Highlights Our cement volumes improved by 9% during 2Q20 YoY Cement volumes driven by a reactivation of the self construction sector and government-sponsored projects Economic and social activity remains relatively normal as schools, shops and sporting events remain open; we are seekin
Slide 26: Other Information 2Q20 Results
OTHER INFORMATION 2 Q 2 0 R e s u l t sOTHER INFORMATION 2 Q 2 0 R e s u l t s
Slide 27: Free Cash Flow generation
||Free Cash Flow generation US$ Million 6M20 6M19 % var 2Q20 2Q19 % var Free cash flow during the quarter improved YoY, mainly due to lower Op. EBITDA 75 100 29 46 Operating EBITDA -25% -36% CAPEX and a positive effect in - Net financial expense 26 27 13 13 taxes paid, despite the EBITDA decline - M
Slide 28: Income Statement
||Income Statement US$ Million 6M20 6M19 % var 2Q20 2Q19 % var Net income reached US$11 million Net sales 362 507 -29% 148 249 -41% during 2Q20, compared with a - Cost of sales 221 313 94 158 US$4 million loss during 2Q19; net Gross profit 141 194 -27% 54 91 -40% income improved mainly due to a - Op
Slide 29: Consolidated debt as of June 30, 2020
||Consolidated debt as of June 30, 2020 US$ Million US$785 M total debt, US$78 M cash 465 US$707 M net debt 4.1x Net Debt / LTM EBITDA 166 90 42 Net debt reduced by US$28 M, from US$734 M as of March to 2023 2024 2020 2021 2022 US$707 M as of June, however, our Borrower Lender Currency Cost US$ M Ma
Slide 30: 2020 Guidance
|| 2020 Guidance Total CAPEX US$25 M Maintenance US$20 M Strategic US$5 M Cash Taxes US$35 M 30|| 2020 Guidance Total CAPEX US$25 M Maintenance US$20 M Strategic US$5 M Cash Taxes US$35 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,”
Slide 32: Results 2Q20
RESULTS 2Q20 J u l y 2 7 , 2 0 2 0RESULTS 2Q20 J u l y 2 7 , 2 0 2 0
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||Contact Information Investor Relations Stoc