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 2020 Earnings Presentation
30 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, Jul 27, 2020
Slide 1: Second Quarter 2020 Results
Exhibit 3 Second Quarter 2020 Results HARD ROCK HOTEL, UNITED STATES GOLDEN 1 CENTER, UNITED STATESExhibit 3 Second Quarter 2020 Results HARD ROCK HOTEL, UNITED STATES GOLDEN 1 CENTER, UNITED STATES
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: Key messages for 2nd Quarter 2020
Key messages for 2nd Quarter 2020 ▪ New COVID-19 operational protocols allowed us to continue operating in most markets ▪ Geographic diversification and distinct market consumption modalities paid off ▪ Hard stop on non-essential expenses and capex resulted in higher profitability and FCF in a decli
Slide 4: Operation Resilience priorities assured business continuity and improved customer experience
Priorities rolled out in February under “Operation Resilience” assured business continuity and improved customer experience Customer Financial Health Experience Resilience ▪ 52 new health and safety ▪ 13% increase in visits to CEMEX ▪ Maximize liquidity protocols to address Go vs. pre-COVID-19 level
Slide 5: Substantially strengthened our financial position
Substantially strengthened our financial position Cash and cash-equivalents variation 86 446 2,832 -87 1,000 1,387 Cash and cash Issuance of Drawdown Free cash Other Sources/Uses Cash and cash equivalents as 7.375% senior USD of revolving flow in 2Q20 of cash, net equivalents as of 1Q20 notes due 20
Slide 6: Demand correlated to government COVID-19 regulations and improved as restrictions eased
Demand for our products was highly correlated to government COVID-19 regulations and improved as restrictions eased Cement volumes June 2Q20 Normal operations YoY % var. 2020 Industry can partially operate/Some restrictions in place CEMEX (10%) 9% Total or partial shutdown for part of quarter United
Slide 7: Cost containment and pricing led to improved EBITDA margin
Despite volume drop, cost containment efforts and pricing led to improved EBITDA margin Net sales Operating EBITDA Operating EBITDA Free cash flow after margin maintenance capex -10% l-t-l -6% l-t-l +0.7pp -14% -11% -35% 3,400 623 19.0% 217 18.3% 554 2,912 140 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20
Slide 8: Achieved ~US$140 M of savings under Operation Resilience in 1H20
Achieved ~US$140 M of savings under “Operation Resilience” in 1H20 1H20 savings under Operation Resilience ▪ US$230 M Operation Resilience includes 141 US$150 M of expected savings from A Stronger 25 CEMEX, plus US$80 M COVID-19 related cost containment initiatives for 2020 20 79 15▪ YTD savings pri
Slide 9: Regional Highlights
Regional Highlights CONCRETE HOUSE, UNITED KINGDOMRegional Highlights CONCRETE HOUSE, UNITED KINGDOM
Slide 10: United States: Continued demand momentum and cost savings increased profitability
United States: Continued demand momentum and cost savings increased profitability and margin 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,971 1,006 Volume 8% 6% Cement % var (l-t-l) 7% 1% Price (LC) 1% (0%) Operating EBITDA 361 198 Volume 2% (5%) Ready mix % var (l-t-l) 23% 16% Price (LC) 3% 2%
Slide 11: Mexico: Bagged cement demand and resilient pricing cushion contraction
Mexico: Bagged cement demand and resilient pricing cushion contraction in formal construction activity 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,253 568 Volume (3%) (7%) Cement % var (l-t-l) (3%) (10%) Price (LC) 0% 1% Operating EBITDA 416 183 Volume (23%) (44%) Ready mix % var (l-t-l) (6%)
Slide 12: EMEAA: Growth in Central Europe and Israel offset by lockdowns
EMEAA: Growth in Central Europe and Israel offset by stringent lockdown measures in rest of markets 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,989 987 Volume (5%) (12%) Cement % var (l-t-l) (8%) (13%) Price (l-t-l) (2%) (1%) Operating EBITDA 251 147 Volume (8%) (12%) Ready mix % var (l-t-l) (
Slide 13: SCAC: Favorable pricing and cost containment despite lockdowns
SCAC: Favorable pricing and cost containment despite industry lockdowns 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 651 279 Volume (19%) (29%) Cement % var (l-t-l) (19%) (30%) Price (l-t-l) 5% 6% Operating EBITDA 156 66 Volume (42%) (60%) Ready mix % var (l-t-l) (16%) (25%) Price (l-t-l) (1%) (3
Slide 14: 2Q20 Results
2Q20 Results SOLAZ LOS CABOS, MEXICO2Q20 Results SOLAZ LOS CABOS, MEXICO
Slide 15: Cost improvements, higher prices and energy tailwinds offset lower volumes on EBITDA
Cost improvements, higher prices and energy tailwinds partially offset impact of lower volumes on EBITDA EBITDA variation -6% -11% 623 85 586 -10 554 80 -32 -31 -161 2Q19 Volume Price Variable costs Fixed costs Others 2Q20 FX 2Q20 l-t-l 15 Millions of U.S. dollars - 15 -Cost improvements, higher pri
Slide 16: Working capital management and lower capex strengthened FCF generation
Proactive working capital management and lower capex strengthened FCF generation January - June Second Quarter 2020 2019 % var 2020 2019 % var Average working capital days Operating EBITDA 1,088 1,169 (7%) 554 623 (11%) - Net Financial Expense 355 353 182 174 - Maintenance Capex 217 264 94 144 - Cha
Slide 17: Stable Net Debt under Operation Resilience
Stable Net Debt under “Operation Resilience” Net Debt plus perpetuals variation 0% 81 10,807 10,756 55 86 Net Debt plus perpetual Free cash flow in 2Q20 Debt FX effect Other Net Debt plus perpetual notes as of 1Q20 notes as of 2Q20 17 Millions of U.S. dollars - 17 -Stable Net Debt under “Operation R
Slide 18: Healthy debt maturity profile with manageable refinancing risk
Healthy debt maturity profile with manageable refinancing risk Total debt excluding perpetual notes as of June 30, 2020: US$13,196 million 2017 Facilities Agreement Other bank debt Average life of debt: Fixed Income 4.2 years Leases 2,561 2,453 Revolving 2,055 Credit 1,135 Tranche 1,497 1,205 1,061
Slide 19: Proactive de-risking through amendment of financial covenants
Proactive de-risking through amendment of financial covenants ▪ Amendment was proactive response to impact of COVID-19 on the global economy and our business ▪ Obtained 100% of responding banks consent to amend our Facilities Agreement ▪ Modified leverage and coverage covenants ▪ Interest rate margi
Slide 20: 2020 Outlook
2020 Outlook I.E. LETICIA ARANGO, COLOMBIA2020 Outlook I.E. LETICIA ARANGO, COLOMBIA
Slide 21: 2020 FCF guidance slightly improved for energy
1 2020 FCF guidance slightly improved for energy Energy cost per ton (7%) to (5%) of cement produced Capital ~US$700 million in total expenditures Cash taxes ~US$200 million 2 Cost of debt Increase of US$25 to US$50 million 1 Reflects CEMEX’s current expectations 21 2 Including perpetual and convert
Slide 22: What to expect
What to expect ▪ Pleased with 2Q20 results and the resiliency of our markets under unprecedented industry lockdowns ▪ Challenges remain as market visibility and pace of economic recovery is still quite low ▪ Key macro factors to watch include duration of existing fiscal and monetary stimulus measure
Slide 23: Appendix
Appendix DUBAI INTERNATIONAL AIRPORT, TERMINAL D, UNITED ARAB EMIRATESAppendix DUBAI INTERNATIONAL AIRPORT, TERMINAL D, UNITED ARAB EMIRATES
Slide 24: Consolidated volumes and prices
Consolidated volumes and prices 6M20 vs. 6M19 2Q20 vs. 2Q19 2Q20 vs. 1Q20 Volume (l-t-l) (5%) (10%) (4%) Domestic gray Price (USD) (4%) (5%) (2%) cement Price (l-t-l) 1% 1% 1% Volume (l-t-l) (10%) (18%) (10%) Ready mix Price (USD) 1% 1% 1% Price (l-t-l) 3% 3% 2% Volume (l-t-l) (9%) (15%) (4%) Aggreg
Slide 25: Additional information on debt and perpetual notes
Additional information on debt and perpetual notes Other Second Quarter First Quarter 7% 2020 2019 % var 2020 1 Euro 13,196 11,048 19% 11,701 Total debt 21% Currency Short-term 6% 7% 4% U.S. denomination dollar Long-term 94% 93% 96% 71% Perpetual notes 443 444 (0%) 441 Total debt plus perpetual note
Slide 26: Additional information on debt
Additional information on debt 1 Total debt by instrument Second Quarter First Quarter 2020 % of total 2020 % of total 15% Fixed Income 7,205 55% 6,177 53% 2017 Facilities Agreement 3,984 30% 3,832 33% Others 2,007 15% 1,692 14% 30% 55% 1 13,196 11,701 Total Debt Millions of U.S. dollars 26 1 Includ
Slide 27: 2Q20 volume and price summary: selected countries/region
2Q20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 2Q20 vs. 2Q19 2Q20 vs. 2Q19 2Q20 vs. 2Q19 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (7%) (16%) 1% (44%) (17%) (0%) (35%) (14%) 2% U.S. 6% (0%) (0%
Slide 28: 6M20 volume and price summary: selected countries/region
6M20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 6M20 vs. 6M19 6M20 vs. 6M19 6M20 vs. 6M19 Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Mexico (3%) (11%) 0% (23%) (10%) 1% (19%) (7%) 4% U.S. 8% 1% 1% 2%
Slide 29: Definitions
Definitions 6M20 / 6M19 Results for the first six months of the years 2020 and 2019, respectively SCAC South, Central America and the Caribbean EMEAA Europe, Middle East, Africa and Asia When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base fo
Slide 30: Contact Information
Contact Information Investors Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE 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 October 28, 2020 Third quarter 2020 financial results conference