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
31 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Feb 7, 2019
Slide 1: 2018 Fourth Quarter Results
2018 Fourth Quarter Results Exhibit 3
Slide 2: Forward-looking statements
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: 2018 net sales and EBITDA increased on a like-to-like basis
0% Consolidated volumes for cement, ready-mix and aggregates increased by 1%, 3% and 2%, respectively, during 2018 on a like-to-like basis Higher consolidated prices for our three core products in local-currency terms, both during 4Q18 and 2018 Sales on a like-to-like basis increased by 6% during 20
Slide 4: Free cash flow allowed us to reduce debt by close to US$1 billion
Free cash flow generation of more than US$900 million allowed us to reduce debt by close to US$1 billion Free cash flow Millions of U.S. dollars Total debt plus perpetuals
Slide 5: Advanced on our "A Stronger CEMEX" targets
Advanced on our “A Stronger CEMEX” targets Initiatives Progress during 2H18 Targets Asset sales Brazil US$31M FAS1 & other US$53M TotalUS$84M US$1.5 – 2.0B by 2020 Operational initiatives / cost reduction Implemented initiatives during 2018; full benefit should be reflected this year US$150M by 2019
Slide 6: Record-level milestones in health & safety, energy and CEMEX Go adoption
Achieving record-level milestones in health & safety, energy and CEMEX Go adoption Health and Safety 2018 was the first year with no employee fatalities Reduced the total employee and contractor lost-time injuries by 22%, reaching a record low CEMEX Go CEMEX Go, our end-to-end integrated platform, c
Slide 7: Fourth Quarter 2018 Regional Highlights
Fourth Quarter 2018 Regional Highlights
Slide 8: Mexico: increased 2018 operating EBITDA on higher volumes and prices
2018 Operating EBITDA increased by 5%, on a like-to-like basis Both ready-mix and aggregates daily volumes increased by 5% while daily cement volumes remained flat during the quarter reflecting good performance in all market segments, except infrastructure Prices for our three core products up year
Slide 9: United States: high-single-digit increase in 2018 EBITDA
2018 operating EBITDA increased by 7%, with a margin decrease of 0.1pp Domestic gray cement, ready-mix and aggregates volumes increased by 5%, 8% and 3%, respectively, during 2018 driven by the residential and infrastructure sectors Quarterly and full-year prices for our three core products up on a
Slide 10: South, Central America and the Caribbean: improved regional pricing
2018 operating EBITDA for the region declined by 14% on a like-to-like basis with a margin decline of 2.9pp; the decline in margin reflects higher prices offset by lower regional volumes, higher purchased cement in our TCL operations and increased energy and freight costs Quarterly regional cement,
Slide 11: Europe: higher regional prices for our three core products
Higher year-over-year cement prices in local-currency terms during 4Q18 in the UK, Germany, Poland, Czech Republic, Spain and Croatia In the UK, aggregates volumes increased 3% while domestic gray cement and ready-mix volumes decreased by 6% and 4%, respectively, during 4Q18 In Spain, increase in re
Slide 12: Asia, Middle East and Africa: 7% top-line growth
Increase in regional cement volumes during the full year driven by increased demand in the Philippines Increase in regional prices for our three core products in local-currency terms during both the quarter and full year, versus the comparable periods in 2017 In the Philippines, domestic gray cement
Slide 13: Fourth Quarter 2018 Results
Fourth Quarter 2018 4Q18 Results
Slide 14: Operating EBITDA during 4Q18 remained flat like-to-like
Operating EBITDA during 4Q18 remained flat on a like-to-like basis mainly due to a higher contribution from our operations in the U.S. offset by lower contributions from the rest of our regions Cost of sales, as a percentage of net sales, increased by 1.1pp during the fourth quarter of 2018 mainly r
Slide 15: Strong free cash flow conversion rate of 36% during 2018
Strong free cash flow conversion rate1 of 36% during 2018 with record-low, working-capital days During 4Q18 we achieved a record-low level of working capital days, reaching negative 14, from negative 13 days in the same period in 2017 1 Free cash flow conversion rate = free cash flow after maintenan
Slide 16: Total debt plus perpetuals declined by close to US$952 million
Total debt plus perpetuals declined by close to US$952 million during 2018 Total debt plus perpetuals variation Millions of U.S. dollars 1 Includes: ~US$54 million from financial fees & notes buyback premiums and ~US$34 million from the increase in our participation in Lehigh White Cement Company in
Slide 17: Manageable debt maturity profile
Millions of U.S. dollars 1 Convertible Subordinated Notes include only the debt component of US$514 million; total notional amount is about US$521 million Avg. life of debt: 4.5 years Manageable debt maturity profile with no refinancing needs in 2019 Fixed Income Other bank debt Convertible Subordin
Slide 18: Fourth Quarter 2018 2019 Outlook
Fourth Quarter 2018 2019 Outlook
Slide 19: 2019 guidance
2019 guidance 1 Including perpetual and convertible securities Consolidated volumes Cement: 0% to 2% Ready mix: 3% to 5% Aggregates: 2% to 4% Energy cost per ton of cement produced Increase of approximately 0% to 3% Capital expenditures US$550 million Maintenance CapEx US$300 million Strategic CapEx
Slide 20: Fourth Quarter 2018 Appendix
Fourth Quarter 2018 Appendix
Slide 21: Consolidated volumes and prices
Higher consolidated volumes for cement, ready mix and aggregates during 2018 on a year-over-year basis During 2018, year-over-year cement volumes up in Mexico, the U.S., and our Europe and AMEA regions Increased consolidated prices for our three core products during 2018, both in local-currency and
Slide 22: Other income statement items during 4Q18
Other income statement items during 4Q18 Other expenses, net, of US$212 million, mainly due to severance payments and impairment of assets Loss on financial instruments of US$32 million, mainly resulting from the derivatives related to GCC shares Foreign-exchange gain of US$13 million resulting prim
Slide 23: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Currency denomination Interest rate Third Quarter 2018 2017 % var 2018 Total debt 1 9,953 10,901 (9%) 10,191 Short-term 1% 12% 1% Long-term 99% 88% 99% Perpetual notes 444 448 (1%) 445 Total debt plus perpetual notes 10,397 11,349 (8%) 10,636 Cash a
Slide 24: Additional information on debt
Additional information on debt Total debt1 by instrument 2018 % of total 2017 % of total 2018 % of total Fixed Income 5,761 58% 6,984 64% 5,782 57% 2017 Credit Agreement 3,179 32% 2,549 23% 3,341 33% Convertible Subordinated Notes 514 5% 870 8% 512 5% Others 500 5% 498 5% 556 5% Total Debt 1 9,953 1
Slide 25: Expected impact of IFRS 16 on selected free-cash-flow and debt items
Expected impact of IFRS 16 on selected free-cash-flow and debt items Millions of U.S. dollars except CFD / Operating EBITDA ratio 2018 Expected variation due to IFRS 16 1 2018 pro forma 1 EBITDA 2,558 ~ 280 ~ 2,840 Net Financial Expense (651) ~ (70) ~ (720) Total CAPEX (673) ~ (300) ~ (970) FCF afte
Slide 26: 2018 volume and price summary: Selected countries
2018 volume and price summary: Selected countries Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico 1% 0% 3% 10% 5% 8% 10% 5% 8% U.S. 5% 3% 3% 8% 2% 2% 3% 5% 5% Colombia (6%) 1% 2% (11%) 0% 0% (14%) (1%) (0%) Panama (18%) (1%) (1%) (15%) (7%) (
Slide 27: 4Q18 volume and price summary: Selected countries
4Q18 volume and price summary: Selected countries Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico (2%) (3%) 2% 4% (1%) 5% 4% 1% 7% U.S. (2%) 2% 2% 5% 2% 2% 1% 5% 5% Colombia 4% (5%) 2% (8%) (6%) 1% (15%) (4%) 4% Panama (8%) (2%) (2%) (4%) (2%
Slide 28: 2019 expected outlook: Selected countries
2019 expected outlook: Selected countries Domestic gray cement Ready mix Aggregates Volumes Volumes Volumes Consolidated 1 0% - 2% 3% - 5% 2% - 4% Mexico 0% 0% 0% United States 1 2% - 4% 2% - 4% 2% - 4% Colombia 0% - 1% 1% - 3% 1% - 3% Panama (2%) - 0% 5% - 7% 5% - 7% Costa Rica (6%) - (3%) (3%) - (
Slide 29: Definitions
Definitions 2018 / 2017 Results for the years 2018 and 2017, 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 domestic cement including c
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 Calendar of Events March 20, 2019 CEMEX Day March 28, 2019 Ordinary and Extraordinary
Slide 31: Footnotes from slides
Footnotes from slide 3 1 For 4Q17, includes negative ~US$1 million from the Fairborn cement plant, sold in February 2017 For 2017, net amount that includes results of ~US$4 million from Trinidad Cement Limited (“TCL”), consolidated by CEMEX since February 2017, and an aggregate amount of negative ~U