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 2019 Earnings Presentation
22 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Jul 26, 2019
Slide 1: 2Q 2019 Results
Mt | 2Q 2019 RESULTS July 26, 2019
Slide 2: Forward-looking statements
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 other similar words. These forw
Slide 3: 2019 Updates
2019 Updates ✓ Major works for Solid Cement new Various civil works already being line expansion to start in 2019 undertaken by main project contractor ✓ Implement new supply chain Achieved 4 pp reduction year-over-year initiatives to lower distribution cost as in the first six months of the year a
Slide 4: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices 6M19 vs. 2Q19 vs. 2Q19 vs. 6M18 2Q18 1Q19 Domestic Volume (2%) (2%) (3%) Cement Price (PHP) 6% 5% 1% Domestic cement volumes decreased by 2% year-over-year during the second quarter. Performance reflects a slowdown in construction activity related to the delayed ap
Slide 5: Net Sales
Net Sales Net sales increased year-over-year by 2% during the second Net Sales1 quarter and by 4% during the first six months of the year. +4% +2% 11,879 12,356 5,988 6,119 2Q18 2Q19 6M18 6M19 1 5 Millions of Philippine Pesos
Slide 6: Private Sector Construction
Private Sector Construction employment increased by 5% year-over-year in 2Q19, slower than the 13% growth in 1Q19 but Total Approved Building Permits marking an all-time high at 4.2 million persons. Year-over-year % growth based on floor area1 The residential sector was stable during the quarter, 40
Slide 7: Public Sector Disbursements on Infrastructure and Capital Outlays
Public Sector Disbursements on Infrastructure and Capital Outlays (in PHP billion)1 Disbursements on Infrastructure and Capital Outlays slowed down from February to April and gently picked up in May, growing mid single-digits, to +31% 240 net a year-to-date decrease in infrastructure +53% 220 spendi
Slide 8: Cost of Sales
Cost of Sales Cost of sales during 6M19 increased by 6% Cost of Sales Fuel and Power year-over-year, slightly above the growth in (% of net sales) (% of cost of sales) sales during the first half. As a percentage of sales, cost of sales was at 59%. Fuel On a unitary basis, fuel costs and power costs
Slide 9: Operating Expenses
Operating Expenses Distribution Selling and Administrative Distribution expenses, as a percentage of (% of net sales) (% of net sales) sales, decreased by 4* pp year-over-year for the first six months of the year mainly due to higher sales from cement imports, and supply-chain-optimization initiativ
Slide 10: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA Variation1 21% Second quarter operating EBITDA increased by 29% year-over-year with 17% an operating EBITDA margin of 21%. Year-to-date, operating EBITDA increased by 18% year-over-year with an operating EBITDA margin of 19%. 19% 17% % Re
Slide 11: Net Income
Net Income Net income for first six months of the year benefited mainly from foreign Net Income1 exchange gains and lower income tax expenses. Higher financial expenses due to increases in benchmark rates and debt level. Foreign exchange gains were realized due to the appreciation of the Philippine
Slide 12: 2Q 2019 Free Cash Flow & Guidance
2Q 2019 FREE CASH FLOW & GUIDANCE
Slide 13: Free Cash Flow
Free Cash Flow January—June Second Quarter Free cash flow during the first six 2019 2018 % var 2019 2018 % var months reached PHP 1.7 billion after Operating EBITDA 2,372 2,010 18% 1,276 989 29% maintenance CAPEX and PHP 1.3 —Net Financial Expenses 715 527 360 278 billion after strategic CAPEX. —Mai
Slide 14: Solid Plant Capacity Expansion
Solid Plant Capacity Expansion Various civil works already being undertaken by main project contractor, CBMI Construction Co., Ltd of China, including site preparation, main platform cutting & levelling, excavations, and construction of ancillary services. Preparatory activities underway, in connect
Slide 15: 2019 Guidance
2019 Guidance Cement volumes 3-5% PHP 975 million Maintenance CAPEX Capital expenditures PHP 6,000 million Solid Cement Plant Expansion CAPEX PHP 6,975 million Total CAPEX 15
Slide 16: Update regarding increase in Authorized Capital Stock
Update regarding increase in Authorized Capital Stock • CHP’s management continues to believe that an equity capital increase of up to US$ 250 million is the best option for CHP to improve its capital structure, provide balance sheet flexibility, and fund the ongoing Solid Cement Plant expansion. CH
Slide 17: Q&A Session
Meacncex peers Q&A SESSION 2Q 2019 RESULTS
Slide 18: Appendix
; Macnee | carat ™ 292019 _* APPENDIX are) er “ee Ly FR ae fas i Fi : 4
Slide 19: Debt-related Information
Debt-related Information In the second quarter of 2019, CHP reached an agreement with BDO Unibank, Inc. (“BDO”) to amend the BDO Facility Agreement dated February 1, 2017, as from time to time amended and/or supplemented (the “Facility Agreement”), mainly to: (i) conform the Facility Agreement with
Slide 20: Debt Information
Debt Information Maturity Profile1 Related Party Loans2 6,406 6,380 BDO Debt 4,839 Total Debt: PHP 19,049 Avg. life of debt: 3.9 years 4,779 Net Debt to EBITDA3: 4.0x 1,144 1,074 1,601 70 140 140 2019 2020 2021 2022 2023 2024 1 Millions of Philippine Pesos 2 Pertains to loans with CEMEX Asia B.V. 3
Slide 21: Definitions
Definitions 6M19 / 6M18 Results for the first six months of the years 2019 and 2018, respectively PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products. Operating EBITDA Operating earnings before oth
Slide 22: Contact Information
Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP chp.ir@cemex.com 22