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
25 slides from Cemex SAB de CV Cert Part Ord Repr 2 ShsA & 1 ShsB's earnings presentation, May 4, 2020
Slide 1: 1Q 2020 Results
1Q19 Results 1Q 2020 Results May 4, 2020 Exhibit 3
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: COVID-19 Situation: Our Priorities
COVID-19 Situation: Our Priorities 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 low-touch experience Ensure the long-term business continuity of CHP
Slide 4: Protect the health and safety of our employees, customers, suppliers, and communities
Protect the health and safety of our employees and their families, customers, suppliers, and communities Activated Rapid Response Teams to continually monitor the situation and implement preventive measures to reduce risks Enabled distance work and skeletal-workforce schemes Applied strict hygiene p
Slide 5: Support our customers and leverage CEMEX Go for a digital experience
Support our customers and leverage CEMEX Go for a digital and low-touch experience Continue to work together with customers, contractors and suppliers to implement measures to maintain business continuity Ready to restart or ramp-up operations, complying with all health and safety requirements, when
Slide 6: Ensure the long-term business continuity of CHP
Ensure the long-term business continuity of CHP Continuously assessing all relevant national and local government pronouncements and ordinances, implementing and applying those applicable. Implemented flexible working arrangements in our sites and offices, in compliance with government advisories an
Slide 7: COVID-19 Situation: Our Cement Plants and Markets
COVID-19 Situation: Our Cement Plants and Markets Construction activity in Luzon halted for the entire duration of the Enhanced Community Quarantine (ECQ). Beginning March 19, suspended production and delivery of cement products in Solid Cement Plant, consistent with the government’s implementation
Slide 8: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices Domestic cement volumes decreased by 4% year-over-year during the first quarter. An 8% increase in volumes during the first two months of the year was offset by the effects of the Enhanced Community Quarantine in Luzon, and other quarantine measures around the coun
Slide 9: Net Sales
Net Sales For the first quarter, net sales decreased by 10% year-over-year due to lower volumes and lower prices. Net Sales1 1 Millions of Philippine Pesos -10%
Slide 10: Private Sector Construction
Private Sector Construction employment decreased year-over-year and sequentially during the first quarter. The Enhanced Community Quarantine (ECQ) in Luzon and persisting COVID-19 transmission restrict labor mobility, which may result in lower employment until the threat of the virus is contained. R
Slide 11: Public Sector Infrastructure and Capital Outlay
Public Sector Infrastructure and Capital Outlay during the first two months of the year reached PHP 93.9 billion, 21% lower year-over-year. This was in part due to a base effect given higher payables for completed projects of the Department of Public Works and Highways (DPWH) during the same period
Slide 12: Cost of Sales
Cost of Sales 1Q20 cost of sales, as a percentage of sales, decreased by 5 pp year-over-year. High comparable base as 1Q19 costs were affected by scheduled kiln maintenance of Solid Cement Plant, higher sales from cement imports, and consumption of purchased clinker in cement production, carried ove
Slide 13: Operating Expenses
Operating Expenses Distribution expenses, as a percentage of sales, increased by 4 pp year-over-year. 1Q19 sales considers higher sales sourced from cement imports, an effect of the Naga landslide incident. Selling and administrative expenses, as a percentage of sales, increased by 2 pp year-over-ye
Slide 14: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Operating EBITDA for the first quarter decreased by 1% year-over-year. March 2020 was impacted by the effects of COVID-19 quarantine measures. Operating EBITDA margin was at 19.2%, 1.7 pp higher compared to the same period in 2019. High comparable base as
Slide 15: Net Income
Net Income Net income for the first quarter was 47% lower compared with the same period in 2019. Operating earnings were impacted by the effects of COVID-19 quarantine measures. Net Income1 1 Millions of Philippine Pesos
Slide 16: Free Cash Flow & Guidance 1Q 2020
Free Cash Flow & Guidance 1q19 Free Cash Flow & Guidance 1Q 2020
Slide 17: Free Cash Flow
Free cash flow after maintenance CAPEX for first quarter 2020 was at PHP 312 million. Strategic CAPEX for the quarter reached almost PHP 1.5 billion due to our Solid Cement Plant Expansion project. Free Cash Flow
Slide 18: Solid Cement Plant Capacity Expansion
Civil works and all other works on halt during the Enhanced Community Quarantine (ECQ) in Luzon. Expected start of operations of second quarter 2021 to be re-evaluated post-ECQ based on work-related guidelines set by the government. Estimated total investment of US$235 million Solid Cement Plant Cap
Slide 19: Q&A Session
Q&A SESSION 1Q 2020
Slide 20: Appendix
1Q19 appendix APPENDIX 1Q 2020
Slide 21: Update regarding the Stock Rights Offering
Update regarding the Stock Rights Offering Stock Rights Offering (“SRO”) of 8,293,831,169 common shares with a par value of Php 1.00 per common share (the “Offer Shares”) set at the price of Php 1.54 per share was successfully completed with the offer period ending last January 24, 2020. Offer Share
Slide 22: Debt Maturity Profile
Debt Maturity Profile Total Debt: PHP 13,481 Avg. life of debt1: 5.4 years Net Debt to EBITDA2: 1.7x All amounts in millions of Philippine Pesos 1 Based on weighted average life of debt 2 Last 12 months Consolidated EBITDA
Slide 23: Additional Debt Information
Additional Debt Information Note: All amounts in millions of Philippine Pesos, except percentages and ratios 1 U.S. dollar debt converted using end-of-period exchange rates 2 Includes leases, in accordance with Philippine Financial Reporting Standards (PFRS) 3 Based on BDO Loan Facility financial co
Slide 24: Definitions
Definitions 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 other expenses, net, plus depreciation and operating amortization. Free Cash Flow Operati
Slide 25: Contact Information
Contact Information Stock Information PSE: CHP Investor Relations In the Philippines +632 8849 3600 chp.ir@cemex.com