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 2020 Earnings Presentation
29 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Oct 28, 2020
Slide 1: Results 3Q20
Exhibit 3 RESULTS 3Q20 O c t o b e r 2 8 , 2 0 2 0Exhibit 3 RESULTS 3Q20 O c t o b e r 2 8 , 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 3Q20
||Key messages 3Q20 ✓ Relatively normal operations during the quarter in Colombia, Guatemala, Nicaragua and El Salvador, while restrictions impacted in Panama and to a lesser degree in Costa Rica ✓ Quarterly EBITDA up 19% on a like-to-like basis; EBITDA margin up 5.5pp reaching the highest level sin
Slide 4: Financial Results Summary
||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -18% LtL -9% LtL -24% -14% 2.6pp -8% LtL 19% LtL -15% 10% 5.5pp 9M19 9M20 3Q19 3Q20 9M19 9M20 9M19 9M20 3Q19 3Q20 3Q19 3Q20 4 752 571 245 209 146 126 46 51 19.4% 22.0% 18.7% 24.2%||Financial Results Summary Net Sa
Slide 5: Consolidated Volumes and Prices
||Consolidated Volumes andPrices 9M20 vs. 3Q20 vs. 3Q20 vs. 9M19 3Q19 2Q20 Our cement volumes during 3Q20 declined by 7% YoY and improved by Volume -17% -7% 41% 41% QoQ; the improvement QoQ Domestic gray Price (USD) -4% -4% -5% was mainly driven by Colombia cement Price (LtL ) 3% 3% -4% 1 Volume -36
Slide 6: EBITDA Variation 9M20
||EBITDA Variation 9M20 -9% -14% 146 -70 7 25 30 -5 133 -8 126 EBITDA Vol Price Operating Dist SG&A EBITDA FX EBITDA 9M19 Costs 9M20 9M20 LtL 1 19.4% 22.0% +2.6pp EBITDA EBITDA Margin 9M19 Margin 9M20 6 (1) Like-to-like adjusted for foreign-exchange fluctuations||EBITDA Variation 9M20 -9% -14% 146 -
Slide 7: Regional Highlights 3Q20 Results
REGIONAL HIGHLIGHTS 3 Q 2 0 R e s u l t sREGIONAL HIGHLIGHTS 3 Q 2 0 R e s u l t s
Slide 8: Results Highlights Colombia
Results Highlights ColombiaResults Highlights Colombia
Slide 9: Colombia – Results Highlights
||Colombia –Results Highlights Var % Var % Industry cement volumes reached 9M20 Var % 3Q20 Var % LtL LtL 1 1 nearly 2019 levels in 3Q20. Our 284 -25% -14% 115 -9% 1% Net Sales cement volumes up 66% QoQ and Financial down 6% YoY, reflecting a new Op. EBITDA 57 -4% 8% 28 42% 59% Summary US$ Million co
Slide 10: Colombia – Infrastructure Sector
|| Colombia –Infrastructure Sector 4G projects continued at good pace. YTD September, we have delivered— in cement and/or ready-mix—the equivalent of more than 420,000 3 ready-mix m In Bogotá, already awarded projects should start soon, such as 3 hospitals, extensions of the “Transmilenio” BRT syste
Slide 11: Colombia – Housing and Industrial & Commercial Sectors
|| Colombia –Housing and Industrial & Commercial Sectors Cement demand from the self- construction sector recovered in June and this trend continued during 3Q20 Housing sales recovered in 3Q20 increasing 2.8% YoY, according to CAMACOL, however, housing starts were down in the mid-teens In the indust
Slide 12: Results Highlights Panama
Results Highlights PanamaResults Highlights Panama
Slide 13: Panama – Results Highlights
||Panama –Results Highlights Var % Var % COVID-19 restrictions on formal 9M20 Var % 3Q20 Var % LtL LtL 1 1 construction activity eased in mid- 58 -60% -60% 16 -64% -64% Net Sales September; our cement volumes Financial Op. EBITDA were impacted by these measures 8 -78% -78% 1 -89% -89% Summary US$ Mi
Slide 14: Panama – Highlights
|| Panama – Highlights Going forward, the lifting of COVID-19 restrictions should support cement consumption compared with the low levels of 2Q20 and 3Q20; however, visibility remains low Among the projects that should provide volume support in coming months are: City Gardens residential project, th
Slide 15: Results Highlights Costa Rica
Results Highlights Costa RicaResults Highlights Costa Rica
Slide 16: Costa Rica – Results Highlights
||Costa Rica –Results Highlights Var % Var % Our cement volumes declined 21% 9M20 Var % 3Q20 Var % LtL LtL 1 1 during the quarter; COVID-19 67 -17% -18% 21 -15% -12% Net Sales restrictions in July for 9 days impacted Financial industry cement volumes mainly in Op. EBITDA 22 -9% -10% 7 49% 54% Summar
Slide 17: Costa Rica – Highlights
|| Costa Rica –Highlights Visibility for cement demand remains limited because of the COVID-19 impact in the economy, as well as the social unrest triggered by potential government policies directed to weather the economic crisis In the infrastructure sector, ongoing projects as well as upcoming pro
Slide 18: Results Highlights Rest of CLH
Results Highlights Rest of CLHResults Highlights Rest of CLH
Slide 19: Rest of CLH – Results Highlights
||Rest of CLH –Results Highlights Var % Var % Cement volumes improved by 25% 9M20 Var % 3Q20 Var % LtL LtL 1 1 during the quarter reaching the 174 6% 7% 60 18% 19% Net Sales highest level since 3Q16; volumes up Financial in all countries of Rest of CLH Op. EBITDA 58 25% 27% 21 50% 52% Summary US$ Mi
Slide 20: Guatemala – Highlights
|| Guatemala – Highlights Our cement volumes improved during the quarter driven by the self- construction sector—a segment in which we have a higher relative presence—and by tighter controls in the northern border which restrained flows of illegal cement imports Remittances increased 10% from June t
Slide 21: Nicaragua – Highlights
|| Nicaragua –Highlights Our cement volumes increased during the quarter, driven by the self- construction sector, as well as by government-sponsored projects such as a hospital, highways, and a social- housing complex We are cautiously optimistic on Nicaragua’s cement consumption for coming months.
Slide 22: Other Information 3Q20 Results
OTHER INFORMATION 3 Q 2 0 R e s u l t sOTHER INFORMATION 3 Q 2 0 R e s u l t s
Slide 23: Free Cash Flow generation
||Free Cash Flow generation US$ Million Free cash flow reached US$39 million 9M20 9M19 % var 3Q20 3Q19 % var during the quarter vs. US$12 million Op. EBITDA 126 146 -14% 51 46 10% Operating EBITDA during 3Q19; higher EBITDA, lower CAPEX and taxes, as well as a - Net financial expense 39 40 13 13 pos
Slide 24: Income Statement
||Income Statement US$ Million 9M20 9M19 % var 3Q20 3Q19 % var Net sales 571 752 -24% 209 245 -15% Net loss of US$109 million during the - Cost of sales 343 462 122 149 quarter mainly due to a negative Gross profit 229 290 -21% 87 96 -9% impact in Other expenses net, despite 160 203 56 68 higher Ope
Slide 25: Consolidated debt as of September 30, 2020
||Consolidated debt as of September 30, 2020 US$ Million 447 US$688 M total debt, US$30 M cash US$659 M net debt 3.7x Net Debt / LTM EBITDA 114 93 12 Reduced net debt by US$48 million 2020 2021 2022 2023 2024 and leverage ratio by 0.4x, from June Borrower Lender Currency Cost US$ M Maturity to Septe
Slide 26: 2020 Guidance
|| 2020 Guidance Total CAPEX US$25 M Maintenance US$20 M Strategic US$5 M Cash Taxes US$30 M 26|| 2020 Guidance Total CAPEX US$25 M Maintenance US$20 M Strategic US$5 M Cash Taxes US$30 M 26
Slide 27: 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 28: Results 3Q20
RESULTS 3Q20 O c t o b e r 2 8 , 2 0 2 0RESULTS 3Q20 O c t o b e r 2 8 , 2 0 2 0
Slide 29: Contact Information
||Contact Information Investor Relations Stock Information Pablo Gutiérrez, CFA Colombian Stock Exchange Phone: +57(1) 603-9051 Ticker: CLH E-mail: pabloantonio.gutierrez@cemex.com Juan Camilo Álvarez Phone: +57(1) 603-9909 E-mail: juancamilo.alvarez@cemex.com 29||Contact Information Investor Relati