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 — Q1 2020 Earnings Presentation
32 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Apr 30, 2020
Slide 1: 2020 First Quarter Results
2020 First Quarter Results Exhibit 3
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: Construction is a safe and essential industry
Tightly controlled work environments Not open to the general public Most work done in the outdoors Low personnel density Strict health and safety standards Construction is a safe and essential industry Can be performed with high degree of safety Significant economic and social contribution Important
Slide 4: Construction considered an essential activity in most of our operations
Construction industry considered an essential activity in most of our operations Europe Construction industry considered essential in all countries where we have operations Spain restarted operations after 2-week shutdown AMEA Stoppage of Solid cement plant in the Philippines No significant impact,
Slide 5: Focused on three main priorities during these challenging times
Focused on three main priorities during these challenging times Protect the health and safety of our employees and their families, customers, suppliers and communities Support our customers and leverage CEMEX Go for a digital and substantially low-touch experience Protect the future of our Company
Slide 6: Monitoring development of COVID-19
Monitoring development of COVID-19 Leveraging information from health organizations and authorities Stricter hygiene protocols in all operations Modified processes to implement physical distancing Working remotely, where possible Restricted work-related travel Enhanced internal information campaigns
Slide 7: Adopted measures designed to maintain business continuity
Adopted measures designed to maintain business continuity Salesforce and service centers enabled with remote-work tools and capabilities Sharing best practices with clients Leveraging on CEMEX Go to support our clients at a distance ~90% of our customers worldwide using platform Committed to support
Slide 8: Protecting the future of our Company
Voluntary waiver or deferral of salaries and fees for the next three months in several layers of the organization Reducing total capex by US$400 million, a 60% reduction in rest-of-year uncommitted spending Adjusting production and inventory levels to market conditions Monitoring demand and market p
Slide 9: Significantly improved cash position by end of 1Q20
Significantly improved cash position by end of 1Q20 Cash and cash equivalents as of 4Q19 Payment of convertible notes Withdrawal of revolving credit facility and other credit lines Proceeds from divest-ments1 Free cash flow deficit in 1Q20 Withdrawal of revolving credit facility and other credit lin
Slide 10: Impact of COVID-19 during March
Impact of COVID-19 during March; timing and magnitude different for each country in our portfolio COVID-19 Transmission Cycle1 1Q20 March 2020 Mexico 2% 1% United States 10% 2% Europe 1% (7%) Colombia (15%) (36%) Philippines (4%) (23%) Cement volumes (YoY2 % var) 1 Based on CEMEX Economics analysis
Slide 11: Improved sales and EBITDA despite impact of COVID-19 during March
Improved sales and EBITDA1 despite impact of COVID-19 during March Net sales Operating EBITDA Operating EBITDA margin Free cash flow after maintenance capex (0.3 pp) 36% +2% l-t-l +1% l-t-l Millions of U.S. dollars 1 On a like-to-like basis
Slide 12: A Stronger CEMEX plan substantially completed
A Stronger CEMEX plan substantially completed, post COVID-19 measures in progress Initiatives Targets Asset sales US$1.5 – 2.0B by 2020 Operational initiatives / cost reduction US$170M in 2019 US$200M in 2020 Total debt plus perpetuals reduction US$3.5B by 2020 2019 cash dividend US$150M in 2019 Giv
Slide 13: Regional results
Mecmcex
Slide 14: Mexico: cement volume growth driven by bagged-cement demand
Mexico: cement volume growth driven by bagged-cement demand Bagged cement demand drove cement volume improvement during 1Q20 Higher LC prices in our products reflecting beginning-of-year price increases EBITDA margin decline mainly due to higher raw-material costs in ready mix and higher freight cos
Slide 15: United States: strong volumes and prices led to double-digit growth
United States: strong volumes and prices led to double-digit growth in sales and EBITDA Continuation of demand momentum coupled with favorable weather conditions Increase in volumes driven by residential and infrastructure Stable pricing on our products sequentially Improved EBITDA margin due primar
Slide 16: Europe: strong volume and price dynamics in Central Europe
Europe: strong volume and price dynamics in Central Europe Cement volumes with solid growth in Central Europe partially offset by declines in UK and Spain Significant deceleration in construction activity in France, Spain and the UK during March impacted by COVID-19 Regional prices in LC terms for o
Slide 17: South, Central America and the Caribbean: improved pricing
Favorable pricing dynamics in the region, despite demand conditions Government measures to contain the spread of COVID-19 significantly impacted performance Increase in EBITDA margin despite declines in volumes South, Central America and the Caribbean: improved pricing despite challenging demand con
Slide 18: Asia, Middle East and Africa: strong EBITDA and margin growth
Asia, Middle East and Africa: strong EBITDA and EBITDA margin growth Increase in regional volumes for our products Decline in regional cement prices reflects competitive dynamics in the Philippines and Egypt Activity in the Philippines impacted by lockdown in Luzon during March and stoppage of Solid
Slide 19: 1Q20 Results
1Q20 Results
Slide 20: EBITDA growth led by improved prices and A Stronger CEMEX savings
EBITDA growth led by improved consolidated prices and “A Stronger CEMEX” savings EBITDA variation Millions of U.S. dollars -2%
Slide 21: Free cash flow: lower investment in working capital
Free cash flow: lower investment in working capital Average working capital days Millions of U.S. dollars
Slide 22: Bolstered liquidity by drawing down revolving credit facility
Bolstered liquidity position by drawing down revolving credit facility and other credit lines Total debt as of 1Q20 Total debt as of Free cash flow deficit in 1Q20 Proceeds from divestments1 Debt plus perpetuals variation Millions of U.S. dollars 1 Proceeds from the divestment of Kentucky Cement Pla
Slide 23: Healthy consolidated debt maturity profile
Average life of debt: 4.3 years Healthy consolidated debt maturity profile Total debt excluding perpetual notes as of March 31, 2020: US$11,701 million Fixed Income Other bank debt 2017 Facilities Agreement Leases Millions of U.S. dollars
Slide 24: 2020 Outlook
2020 Outlook
Slide 25: 2020 guidance
2020 guidance1 1 Reflects CEMEX’s current expectations 2 Including perpetual and convertible securities Energy cost per ton of cement produced (6%) to (4%) Capital expenditures ~US$700 million in total Cash taxes ~US$200 million Cost of debt2 Increase of US$25 to US$50 million
Slide 26: Appendix
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Slide 27: Consolidated volumes and prices
Consolidated volumes and prices Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates
Slide 28: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Currency denomination Interest rate3 Millions of U.S. dollars 1 Includes convertible notes and leases, in accordance with International Financial Reporting Standard (IFRS) 2 Calculated in accordance with our contractual obligations under the 2017 Fa
Slide 29: Additional information on debt
Additional information on debt Total debt1 by instrument Millions of U.S. dollars 1 Includes leases, in accordance with IFRS
Slide 30: 1Q20 volume and price summary: selected countries
1Q20 volume and price summary: selected countries Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates
Slide 31: Definitions
Definitions 3M20 / 3M19 Results for the first three months of the years 2020 and 2019, 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 d
Slide 32: Contact Information
Contact Information Investors Relations In the United States +1 877 7CX NYSE Mecmex Stock Information NYSE (ADS): cx In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to Cx: 10 to 1 Calendar of Events July 27, 2020 Second quarter 2020 financial results confer