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 2020 Earnings Presentation
34 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Feb 11, 2021
Slide 1: Fourth Quarter 2020 Results
Fourth Quarter 2020 Results Casa Bruma ? Mexico City
Slide 2: Forward-looking statements
This presentation contains, and the reports we will file in the future may contain, forward-looking statements within the meaning of the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the
Slide 3: Positive year-over-year results despite enormous disruptions
Despite enormous disruptions, management action and resilient footprint produced positive year-over-year results Net sales Operating EBITDA Operating EBITDA margin Free Cash Flow after maintenance capex +1% l-t-l -1% +3% 13,130 2,460 9.0% 959 12,970 2,378 18.1% 695 2019 2020 2019 2020 2019 2020 2019
Slide 4: A roller coaster year with V-shaped recovery in 2nd half
A roller coaster year with V-shaped recovery in 2nd half Cement volumes 20% YoY % change1 US 10% EUR 0% MEX -10% -20% Price LC YoY -30% CEMEX FY20 4Q20 Cement2 +1% +0% -40% MEAA Aggregates +2% +1% -50% SCAC Ready mix +2% +0% -60% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 1) On an average
Slide 5: Formal sector in SCA&C and Mexico slower to rebound
while formal sector in SCA&C and Mexico has been slower to rebound Ready-mix volumes YoY % change1 30% 15% US MEAA 0% -15% CEMEX -30% EUR -45% MEX -60% -75% SCAC -90% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2020 1) On an average daily sales basis 5—5—
Slide 6: Advancing against our Operation Resilience goals
Advancing against our ?Operation Resilience? goals 2020 progress EBITDA margin of ?20% by 2023 19.0% margin, an increase of 0.9pp YoY Achieved $280 M savings target France asset divestment Urbanization Solutions EBITDA grew ~15% in Optimize our portfolio for growth 2020, representing ~6% of consolid
Slide 7: Reduction in clinker factor paves the way towards 2030 carbon goal
Reduction in clinker factor paves the way towards 2030 carbon goal 2020 vs. 2019 2021 vs. 2020 Levers for 2021 progress expected progress improvement ? Normalization of alternative fuels Net CO2 emissions supply ? Catch-up of delayed 2020 Clinker factor sustainability capex ? Sustainable clinker fac
Slide 8: Key messages for 4th Quarter 2020
Key messages for 4th Quarter 2020 ? 19% EBITDA growth l-t-l driven by strong momentum in all regions ? In Mexico, largest quarterly volume growth in two decades driven by strong bagged cement performance, coupled with recovery in formal sector ? In SCA&C, region in recovery mode with second cons
Slide 9: Business momentum accelerates in fourth quarter
Business momentum accelerates in fourth quarter Net sales Operating EBITDA Operating EBITDA Free Cash Flow after margin maintenance capex +9% l-t-l +9% +16% +9% 3,537 644 18.2% 575 3,259 526 554 17.0% 4Q19 4Q20 4Q19 4Q20 4Q19 4Q20 4Q19 4Q20 Highest Net sales and EBITDA in a fourth quarter since 2014
Slide 10: With all regions contributing to EBITDA growth
With all regions contributing to EBITDA growth EBITDA variation +19% +16% 12 18 97 658 644 -23 -14 554 4Q19 Volume Price Variable costs Fixed costs 4Q20 l-t-l FX 4Q20 & freight & others Millions of U.S. dollars 10—10—
Slide 11: Profitability gains driven by Operation Resilience
Profitability gains driven by ?Operation Resilience? th 2020 savings under ?Operation Resilience? ? In 4 quarter, ?Operation Resilience? contributed US$50 M, about ~1.4pp in EBITDA 280 margin 50 33 34 134 29 ? For full year, achieved target of US$280 M 79 ? Contributing to ~2.2pp to EBITDA margin ?
Slide 12: Regional Highlights
Regional Highlights CONCRETE HOUSE, UNITED KINGDOM
Slide 13: United States: Double-digit volume growth drove EBITDA margin
United States: Double-digit volume growth with improved logistics in 4th quarter, drove EBITDA margin 2020 vs. 4Q20 vs. 2020 4Q20 2019 4Q19 Net Sales 3,994 1,011 Volume 8% 15% Cement % var (l-t-l) 6% 8% Price (LC) 0% (2%) Operating EBITDA 747 186 Volume 1% 6% Ready mix % var (l-t-l) 19% 25% Price (L
Slide 14: Mexico: Double-digit cement volume growth and higher prices
Mexico: In 4th quarter, double-digit growth in cement volumes and higher prices led to EBITDA margin expansion 2020 vs. 4Q20 vs. 2020 4Q20 2019 4Q19 Net Sales 2,812 836 Volume 6% 17% Cement % var (l-t-l) 7% 23% Price (LC) 2% 3% Operating EBITDA 931 268 Volume (16%) (6%) Ready mix % var (l-t-l) 7% 26
Slide 15: EMEAA: EBITDA growth in 4th quarter
EMEAA: EBITDA growth in 4th quarter resulting from ?Operation Resilience? and volumes 2020 vs. 4Q20 vs. 2020 4Q20 2019 4Q19 Net Sales 4,417 1,192 Volume (1%) 4% Cement % var (l-t-l) (1%) 6% Price (l-t-l) (3%) (6%) Operating EBITDA 630 159 Volume (4%) 3% Ready mix % var (l-t-l) (1%) 5% Price (l-t-l)
Slide 16: SCAC: Improving market conditions and cost containment
SCAC: Improving market conditions and cost containment actions translate into 4th quarter margin expansion 2020 vs. 4Q20 vs. 2020 4Q20 2019 4Q19 Net Sales 1,456 410 Volume (8%) 6% Cement % var (l-t-l) (8%) 6% Price (l-t-l) 4% 2% Operating EBITDA 372 106 Volume (34%) (24%) Ready mix % var (l-t-l) 2%
Slide 17: 4Q20 Results
4Q20 Results SOLAZ LOS CABOS, MEXICO
Slide 18: Strong 2020 Free Cash Flow generation with record working capital days
Strong 2020 Free Cash Flow generation with record working capital days Average working capital days January—December Fourth Quarter 4Q20 4Q19 2020 2019 2020 2019 % var 2020 2019 % var Operating EBITDA 2,460 2,378 3% 644 554 16% -9 —Net Financial Expense 715 701 173 179 —Maintenance Capex 570 799 249
Slide 19: Improved risk profile through decisive actions
Improved risk profile through decisive actions Jan-Mar Mar-Jun Jul-Currently Pre-COVID Initial COVID shock Coexisting with COVID ? Extended maturities under Facilities ? CX shares buyback ? Hard stop on non-essential Agreement ? Increased CHP expenses and capex ? Redenominated US dollar debt to MXN,
Slide 20: No material maturities until July 2023
No material maturities until July 2023, with a 6 year average life Proforma1 total debt excluding perpetual notes as of December 31, 2020: US$ 10,598 million 2017 Facilities Agreement Other bank debt Average life of debt: 6.2 years Fixed Income Leases 1,934 1,672 1,526 934 1,041 1,022 1,025 472 555
Slide 21: Strong net debt reduction despite negative FX effect
Strong net debt reduction despite negative FX effect Net Debt plus perpetuals variation -1,027 -771 10,868 10,097 734 9,841 256 499 200 406 Net Debt plus Free cash Proceeds from Proceeds from Other1 Net Debt plus FX Net Debt plus perpetual notes flow in 2020 Kentucky UK divestment perpetual notes pe
Slide 22: 2021 Outlook
2021 Outlook Casa Vargas ? Quer?taro, Mexico
Slide 23: 2021 guidance
2021 guidance1 Energy cost per ton ~10% increase of cement produced Operating EBITDA ~US$2.7 billion2 Capital ~US$1.1 billlion expenditures Investment in US$100 to US$150 million working capital Cash taxes ~US$225 million 3 ~US$615 million, a decrease of Cost of debt ~US$100 million 1) Reflects CEME
Slide 24: What to expect
What to expect ? Continue to co-exist with COVID-19, but not expecting 2020 level of disruption ? Material GDP recovery expected in all our major markets, with significant monetary and fiscal stimulus in US and Europe ? Most of our operations appear poised at favorable points in the cycle ? Strong e
Slide 25: Appendix
Appendix DUBAI INTERNATIONAL AIRPORT, TERMINAL D, UNITED ARAB EMIRATES
Slide 26: Debt maturity profile as of 4Q20
Debt maturity profile as of 4Q20 Total debt excluding perpetual notes as of December 31, 2020: US$10,598 million 2017 Facilities Agreement Other bank debt Average life of debt: 5.3 years Fixed Income Leases 2,422 1,526 1,552 1,212 1,041 1,022 934 472 385 31 2021 2022 2023 2024 2025 2026 2027 2028 20
Slide 27: Consolidated volumes and prices
Consolidated volumes and prices 2020 vs. 2019 4Q20 vs. 4Q19 4Q20 vs. 3Q20 Volume (l-t-l) 1% 10% 1% Domestic gray Price (USD) (2%) (1%) 1% cement Price (l-t-l) 1% 0% (2%) Volume (l-t-l) (6%) 1% 1% Ready mix Price (USD) 1% 1% 0% Price (l-t-l) 2% 0% (1%) Volume (l-t-l) (3%) 4% (1%) Aggregates Price (US
Slide 28: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes MXN 4% Fourth Quarter Third Quarter Other 2020 2019 % var 2020 9% Total debt1 10,598 11,213 (5%) 13,310 Currency Euro Short-term 4% 8% 22% denomination 23% U.S. Long-term 96% 92% 78% dollar Perpetual notes 449 443 1% 446 64% Total debt plus perpetua
Slide 29: Additional information on debt
Additional information on debt Total debt1 by instrument 16% Fourth Quarter Third Quarter 2020 % of total 2020 % of total Fixed Income 6,480 61% 8,337 62% 2017 Facilities Agreement 2,383 23% 3,280 25% 23% Others 1,736 16% 1,693 13% 61% Total Debt 1 10,598 13,310 Millions of U.S. dollars 1) Includes
Slide 30: 4Q20 volume and price summary: selected countries/region
4Q20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 4Q20 vs. 4Q19 4Q20 vs. 4Q19 4Q20 vs. 4Q19 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico 17% (3%) 3% (6%) (7%) (1%) 1% 3% 10% U.S. 15% (2%) (2%) 6% (1%
Slide 31: 2020 volume and price summary: selected countries/region
2020 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 2020 vs. 2019 2020 vs. 2019 2020 vs. 2019 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico 6% (8%) 2% (16%) (10%) (0%) (10%) (3%) 7% U.S. 8% 0% 0% 1% 1%
Slide 32: 2021 expected volume outlook: selected countries
2021 expected volume outlook1: selected countries CEMENT Ready Mix Aggregates CEMEX +1% to +3% +1% to +3% +1% to +3% Mexico +2% to +5% +8% to +12% +8% to +12% USA +1% to +3% +1% to +3% +1% to +3% Europe (1%) to +1% 0% to +2% 0% to +2% Colombia +9% to +11% +17% to +19% NA Panama +26% to +28% +85% to
Slide 33: Definitions
Definitions SCAC South, Central America and the Caribbean EMEAA Europe, Middle East, Africa and Asia Cement When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported cement volumes changed from total domestic cement including clinker
Slide 34: Contact Information
Contact Information Investors Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1