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
27 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Feb 7, 2019
Slide 1: Results 4Q18
RESULTS 4Q18 F ebr uar y 7 , 2 0 1 9
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,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or o
Slide 3: Financial Results Summary
||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -8% . 206 1 108 . -7% 1 278 -23% -4.1pp 260 -24% 0% -4.8pp 314 26 . 72 9% 9% 25 . 243 21 . 55 1% 21 . 12M17 12M18 4Q17 4Q18 12M17 12M18 4Q17 4Q18 12M17 12M18 4Q17 4Q18 3
Slide 4: Consolidated Volumes and Prices
||Consolidated Volumes andPrices 12M18 12M17 vs. 4Q18 4Q17 vs. 4Q18 3Q18 vs. Our cement volumes remained flat during 4Q18, Volume -6% 0% 2% improved volumes in Colombia, Guatemala and Domestic El Salvador were offset by lower volumes in gray Price (USD) 0% -5% -6% Costa Rica, Panama and Nicaragua ce
Slide 5: EBITDA Variation 12M18
||EBITDA Variation 12M18 -23% 314 -59 5 -10 -3 -1 -3 243 EBITDA Vol Price O. Costs Dist SG&A FX EBITDA 12M17 12M18 26.0% 21.9% -4.1pp EBITDA EBITDA Margin 12M17 Margin 12M18 5
Slide 6: Net debt reduction 12M18
||Net debt reduction 12M18 -77 882 7 805 25 -77 -31 Net Debt Free Cash Flow Brazil Fine in Colombia Other Net Debt 3 Dec. 17 12M18 Divestment Dec. 18 1 2 (1) Excludes “fine in Colombia” (2) Gross amount (3) Fine imposed by the Colombian Superintendence of Industry and Commerce (SIC), paid on January
Slide 7: Regional Highlights 4Q Results
REGIONAL HIGHLIGHTS 4Q 1 8 R e s u l t s
Slide 8: Results Highlights Colombia
Results Highlights Colombia
Slide 9: Colombia – Results Highlights
||Colombia –Results Highlights 12M18 12M17 % var 4Q18 4Q17 % var We are encouraged by the Net Sales 524 566 -7% 125 134 -6% improving trends in the Colombian Financial Op. EBITDA economy and in cement demand Summary 95 113 -16% 23 30 -24% During 4Q18, our cement volumes increased by US$ Million as %
Slide 10: Colombia – Residential Sector
||Colombia –Residential Sector We estimate that cement dispatches to the residential sector increased in the low-single digits during 4Q18; improving cement demand particularly in the informal or self-construction segment Volumes to the social-housing segment remained relatively flat during 4Q18 how
Slide 11: Colombia – Infrastructure Sector
||Colombia –Infrastructure Sector The infrastructure sector continued its positive performance during 4Q18 Our volumes to this sector were supported by the Salitre water-treatment plant, the CETIC Hospital, a group of 210 schools, and by the expansion of the San Fernando water-treatment plant We dis
Slide 12: Results Highlights Panama
Results Highlights Panama
Slide 13: Panama – Results Highlights
||Panama –Results Highlights We estimate that national cement 12M18 12M17 % var 4Q18 4Q17 % var demand declined by ~6% during 4Q18 Net Sales 222 266 -17% 53 54 -3% Industry volumes were particularly affected Financial Op. EBITDA during 2Q18 due to the construction-workers Summary 64 109 -41% 13 21 -
Slide 14: Panama – Sector Highlights
||Panama –Sector Highlights In 2019, we expect the infrastructure sector to be the main driver of demand; main projects that should start construction are During 1Q19 the Corredor de las Playas highway, during 2Q19 the metro’s-second-line connection to the airport and during 4Q19 the fourth bridge o
Slide 15: Results Highlights Costa Rica
Results Highlights Costa Rica
Slide 16: Costa Rica – Results Highlights
||Costa Rica –Results Highlights We estimate that national cement 12M18 12M17 % var 4Q18 4Q17 % var consumption declined by 7%, both during 4Q18 and 2018 Net Sales 139 149 -7% 27 35 -23% Increased activity in the industrial-and- Financial Op. EBITDA commercial sector was more than offset by lower Su
Slide 17: Costa Rica – Sector Highlights
||Costa Rica –Sector Highlights For 2019, the main driver of demand should be the infrastructure sector projects like Ruta-32-Cruce-a-Río-Frío-Limón and Circunvalación Norte highways, recently started construction, and Ruta-1-Cañas-Limonal is expected to start during 2Q19 Infrastructure spending is
Slide 18: Results Highlights Rest of CLH
Results Highlights Rest of CLH
Slide 19: Rest of CLH – Results Highlights
||Rest of CLH –Results Highlights 12M18 12M17 % var 4Q18 4Q17 % var Our cement volumes increased by Net Sales 239 249 -4% 59 60 -2% 4% during 4Q18, Financial higher cement volumes in Guatemala and El Summary Op. EBITDA 74 87 -15% 18 19 -7% Salvador more than offset lower volumes in US$ Million Nicar
Slide 20: Nicaragua – Sector Highlights
||Nicaragua –Sector Highlights GDP contracted 3.5% in 2018, private investment remains paralyzed and commercial banks continue restricting consumer-and-business credit to preserve liquidity Our cement volumes during the quarter and the full year declined by 10% and 14%, respectively, our sequential
Slide 21: Guatemala – Sector Highlights
||Guatemala –Sector Highlights Our cement and ready-mix volumes increased by 7% and 48%, respectively, during 2018 achieving record volumes in both businesses We estimate that national-cement demand increased in the mid-single digits during 2018 Our cement volumes outperformed the industry because w
Slide 22: Other Information 4Q Results
OTHER INFORMATION 4Q 1 8 R e s u l t s
Slide 23: Free Cash Flow
||Free Cash Flow Free cash flow improved, both US$ Million 12M18 12M17 % var 4Q18 4Q17 % var during the quarter and full year Operating . EBIT EBITDA 243 314 -23% 55 72 -24% increased free cash flow during the full year was due to lower financial expenses, CAPEX and taxes, as well as a positive work
Slide 24: Income Statement Items
||Income Statement Items Our net income improved, both during the quarter and full year, increased net income during these periods was mainly due to lower taxes, as well as a positive effect in other expenses net, related to the fine in Colombia registered in 4Q17, and in discontinued operations, re
Slide 25: Consolidated debt as of December 31, 2018
||Consolidated debt as of December 31, 2018 US$ Million 511 US $842 M Total debt 324 3.3x Net Debt / EBITDA 7 2019 2020 2021 2022 2023 Type Currency Cost US$ M Interest Rate Banks COP 9.23% 7 Intercompany USD 6ML + 250 bps 130 Variable Intercompany USD 6ML + 255 bps 194 39% Intercompany USD Fixed 5.
Slide 26: 2019 Guidance
||2019 Guidance Volume YoY% Consolidated volumes: Cement Ready—Mix Aggregates - Cement: -2% to -1% Colombia - Ready-mix: 0% to 1% 0% to 1% 1% to 3% 1% to 3% - Aggregates: -2% to 0% Cement Ready—Mix Aggregates Total Capex US$40 M Panama Maintenance Capex US$35 M -0.5% to -2% 5% to 7% 5% to 7% Strateg
Slide 27: Results 4Q18
RESULTS 4Q18 F e b r u a r y 7 , 2 0 1 9