UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of February, 2013
Commission File Number: 001-14946
CEMEX, S.A.B. de C.V.
(Translation of Registrant’s name into English)
Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre
Garza García, Nuevo León, México 66265
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Contents
| 1. | Press release, dated February 7, 2013, announcing fourth quarter and full year 2012 results for CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 2. | Fourth quarter and full year 2012 results for CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 3. | Presentation regarding fourth quarter and full year 2012 results for CEMEX, S.A.B. de C.V. (NYSE:CX). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CEMEX, S.A.B. de C.V. |
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| (Registrant) |
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| Date: |
February 7, 2013 |
By: | /s/ Rafael Garza |
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| Name: Rafael Garza |
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| Title: Chief Comptroller |
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EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. |
Press release, dated February 7, 2013, announcing fourth quarter and full year 2012 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. |
Fourth quarter and full year 2012 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. |
Presentation regarding fourth quarter and full year 2012 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
Exhibit 1
| Media Relations Jorge Pérez +52 (81) 8888-4334 mr@cemex.com |
Investor Relations Eduardo Rendón +52 (81) 8888-4256 ir@cemex.com |
Analyst Relations Luis Garza +52 (81) 8888-4136 ir@cemex.com |
CEMEX REPORTS FOURTH-QUARTER
AND FULL-YEAR 2012 RESULTS
MONTERREY, MEXICO, FEBRUARY 7, 2013 – CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX), announced today that for the full year 2012, operating EBITDA increased by 10% to US$2.6 billion, with net sales reaching US$15.0 billion a decline of 2% on a year-over-year basis. During the fourth quarter, operating EBITDA increased by 13% to US$611 million while net sales were stable at US$3.7 billion.
CEMEX’s Consolidated Fourth-Quarter and Full-Year 2012 Financial and Operational Highlights
| • | The infrastructure and residential sectors were the main drivers of demand in most of our markets. |
| • | Operating earnings before other expenses, net, in the fourth quarter increased by 26%, to US$285 million, from the comparable period in 2011 and increased by 35%, to US$1.3 billion, for the full-year 2012. |
| • | Operating EBITDA increased during the fourth quarter by 13% and increased 10% for the full-year 2012. |
| • | Operating EBITDA margin grew by 1.9 and 2.0 percentage points during the quarter and the full year 2012, respectively, on a year-over-year basis. |
| • | Free cash flow after maintenance capital expenditures for the quarter was US$228 million, down 40% compared with US$379 million in the same quarter of 2011. |
Fernando A. González, Executive Vice President of Finance and Administration, said: “2012 was a year of recovery for CEMEX. During the year, we achieved the highest EBITDA generation and operating EBITDA margin since 2009 and the fourth quarter was the sixth consecutive quarter with a year-over-year EBITDA increase. We are particularly pleased with the quarterly performance of our operations in the United States, and the South, Central America and Caribbean and Asia regions. In the case of the U.S., we were EBITDA-profitable again for the first time since 2009. In addition, we had record-high cement volumes in Colombia, Panama, Nicaragua and the Philippines.
Throughout 2012, we took decisive steps to improve our debt maturity profile and strengthen our capital structure. We have now addressed all our required amortizations under the new Facilities Agreement until February 2017. Today, we are not only in a better shape financially, but we are also much more agile and flexible operationally.”
Consolidated Corporate Results
During the fourth quarter of 2012, controlling interest net income was a loss of US$489 million, versus a loss of US$761 million in the fourth quarter of 2011.
1
Total debt plus perpetual notes decreased US$1.0 billion during the quarter.
Geographical Markets Fourth Quarter 2012 Highlights
Net sales in our operations in Mexico increased 2% in the fourth quarter of 2012 to US$832 million, compared with US$818 million in the fourth quarter of 2011. Operating EBITDA decreased 4% to US$297 million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of US$756 million in the fourth quarter of 2012, up 11% from the same period in 2011. Operating EBITDA was US$13 million in the quarter.
In Northern Europe, net sales decreased 8% to US$1.0 billion, compared with US$1.1 billion in the fourth quarter of 2011. Operating EBITDA reached US$80 million for the quarter, 2% lower than the same period last year.
Fourth-quarter net sales in the Mediterranean region were US$354 million, 8% lower versus those in the comparable period in 2011. Operating EBITDA decreased 12% to US$82 million for the quarter versus the same period in 2011.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$520 million during the fourth quarter of 2012, representing an increase of 16% over the same period of 2011. Operating EBITDA increased 37% to US$159 million from US$116 million in the fourth quarter of 2011.
In Asia, our net sales increased 12%, reaching US$139 million, versus the fourth quarter of 2011, while operating EBITDA reached US$28 million, up 55% versus the same period in the previous year.
CEMEX is a global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world. CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future.
###
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of CEMEX to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CEMEX does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, the ability of CEMEX to comply with its debt agreements, changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CEMEX assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating earnings before other expenses, net, plus depreciation and operating amortization. Free Cash Flow is defined as Operating EBITDA minus net interest expense, maintenance and expansion capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation). Net debt is defined as total debt minus the fair value of cross-currency swaps associated with debt minus cash and cash equivalents. The Consolidated Funded Debt to Operating EBITDA ratio is calculated by dividing Consolidated Funded Debt at the end of the quarter by Operating EBITDA for the last twelve months. All of the above items are presented under the guidance of International Financial Reporting Standards as issued by the International Accounting Standards Board. Operating EBITDA and Free Cash Flow (as defined above) are presented herein because CEMEX believes that they are widely accepted as financial indicators of CEMEX’s ability to internally fund capital expenditures and service or incur debt. Operating EBITDA and Free Cash Flow should not be considered as indicators of CEMEX’s financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
2
Exhibit 2
Exhibit 2
2012
FOURTH QUARTER RESULTS
Stock Listing Information
NYSE (ADS) Ticker: CX
Mexican Stock Exchange Ticker: CEMEXCPO Ratio of CEMEXCPO to CX = 10:1
Investor Relations
In the United States: + 1 877 7CX NYSE In Mexico: + 52 (81) 8888 4292
EMail: ir@cemex.com
OPERATING AND FINANCIAL HIGHLIGHTS
January December Fourth Quarter
l t l l t l
2012 2011 % Var. % Var.* 2012 2011 % Var. % Var.*
Consolidated cement volume (thousand
of metric tons) 65,841 66,812 (1%) 15,764 16,328 (3%)
Consolidated ready mix volume
(thousand of cubic meters) 54,931 54,940 (0%) 13,732 13,991 (2%)
Consolidated aggregates volume
(thousand of metric tons) 159,385 159,987 (0%) 40,511 39,008 4%
Net sales 14,984 15,215 (2%) 1% 3,709 3,709 0% (1%)
Gross profit 4,435 4,305 3% 6% 1,135 1,019 11% 9%
Gross profit margin 29.6% 28.3% 1.3pp 30.6% 27.5% 3.1pp
Operating earnings before other
expenses, net 1,308 967 35% 43% 285 227 26% 19%
Operating earnings before other
expenses, net margin 8.7% 6.4% 2.3pp 7.7% 6.1% 1.6pp
Consolidated net income (loss) (853) (1,984) 57% (450) (761) 41%
Controlling interest net income (loss) (904) (1,986) 55% (489) (761) 36%
Operating EBITDA 2,615 2,372 10% 14% 611 540 13% 10%
Operating EBITDA margin 17.5% 15.6% 1.9pp 16.5% 14.5% 2.0pp
Free cash flow after maintenance
capital expenditures 169 191 (11%) 228 379 (40%)
Free cash flow (8) 42 N/A 143 312 (54%)
Net debt plus perpetual notes 15,674 16,830 (7%) 15,674 16,830 (7%)
Total debt 16,171 17,048 (5%) 16,171 17,048 (5%)
Total debt plus perpetual notes 16,644 17,986 (7%) 16,644 17,986 (7%)
Earnings (loss) per ADS (0.80) (1.78) 55% (0.43) (0.68) 37%
Fully diluted earnings per ADS (0.80) (1.78) 55% (0.43) (0.68) 37%
Average ADSs outstanding 1,117.0 1,108.5 1% 1,123.9 1,110.8 1%
Employees 43,905 44,104 (0%) 43,905 44,104 (0%)
In millions of US dollars, except percentages, employees, and per ADS amounts. Average ADSs outstanding are presented in millions. Please refer to page 8 for end of quarter
CPO equivalent units outstanding.
*Like to like (“l t l”) percentage variations adjusted for investments/divestments and currency fluctuations.
(1)For 2012 and 2011, the effects on the denominator and numerator of potential dilutive shares generate anti dilution; therefore, there is no change between the reported basic and diluted loss per share.
Consolidated net sales in the fourth quarter of 2012 remained flat to US$3,709 million compared with the fourth quarter
of 2011, or a decrease of 1% on a like to like basis for the ongoing operations and for foreign exchange fluctuations. The like to like decrease in consolidated net sales was due to lower volumes in Northern Europe and Mediterranean operations
partially offset by higher prices in local currency terms in all our regions.
Cost of sales as a percentage of net sales decreased by 3.1pp during the fourth quarter of 2012 compared to the same
period last year. The decrease was mainly the result of savings from our cost reduction initiatives and lower fuel costs.
Selling, general and administrative (SG&A) expenses as a percentage of net sales increased by 1.5pp during the fourth
quarter of 2012 compared with the same period last year, from 21.4% to 22.9%. The increase in SG&A expenses during
the quarter was due to an increase in variable compensation expenses as well as higher distribution expenses due to
increased volumes in the U.S. and the South, Central America and the Caribbean region.
Operating EBITDA increased by 13% to US$611 million during the fourth quarter of 2012 compared with the same period
last year. The increase was due to higher contributions from the U.S., and the South, Central America and the Caribbean,
and Asia regions. On a like to like basis for the ongoing operations and adjusting for foreign exchange fluctuations, operating EBITDA increased by 10% in the fourth quarter of 2012 compared with the same period
last year. Operating EBITDA margin increased by 2.0pp from 14.5% in the fourth quarter of 2011 to
16.5% this quarter, mainly as a result of higher prices in local currency terms in all our regions, partially mitigated by lower
volumes in Northern Europe and the Mediterranean operations.
Other expenses, net, for the quarter were US$231 million, which mainly included severance payments, impairments of fixed
assets and goodwill and a loss in sales of fixed assets.
Gain (loss) on financial instruments for the quarter was a loss of US$18 million, resulting mainly from options embedded
in our convertible securities.
Controlling interest net income (loss) was a loss of US$489 million in the fourth quarter of 2012 versus a loss of
US$761 million in the same quarter of 2011. The smaller quarterly loss primarily reflects higher operating earnings
before other expenses, net, an exchange gain and lower income taxes, partially offset by higher financial expenses and
other income and expenses, net.
Total debt plus perpetual notes decreased by US$1,007 million during the quarter.
2012 Fourth Quarter Results Page 2
OPERATING RESULTS
Mexico
January December Fourth Quarter
l t l % l t l %
2012 2011 % Var. 2012 2011 % Var.
Var.* Var.*
Net sales 3,377 3,474 (3%) 2% 832 818 2% (3%)
Operating EBITDA 1,208 1,207 0% 5% 297 309 (4%) (9%)
Operating EBITDA margin 35.8% 34.8% 1.0pp 35.7% 37.8% (2.1pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter
variation
Volume (1%) (4%) (2%) 3% 2% 12%
Price (USD) (3%) 8% (1%) 7% (3%) 9%
Price (local currency) 3% 2% 5% 2% 3% 3%
Our Mexican operations’ domestic gray cement volumes decreased by 4% during the quarter versus the same period
last year, while ready mix volumes increased by 3% during the same period. For the full year, domestic gray cement and ready mix volumes decreased by 1% and 2%, respectively, versus the full year 2011.
Homebuilders continued facing working capital financing constraints and high levels of inventories which translated into weak cement volumes in the formal
residential sector. A decline in remittances moderated the activity in the informal residential sector. Private consumption
and manufacturing activity were the main drivers in the industrial and commercial sector. In addition, volumes for our
products during the quarter were affected by 1 less working day.
United States
January December Fourth Quarter
l t l % l t l %
2012 2011 % Var. 2012 2011 % Var.
Var.* Var.*
Net sales 3,062 2,616 17% 14% 756 682 11% 11%
Operating EBITDA 43 (89) N/A N/A 13 (16) N/A N/A
Operating EBITDA margin 1.4% (3.4%) 4.8pp 1.7% (2.3%) 4.0pp
In millions of US dollars, except
percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter
variation
Volume 14% 9% 20% 10% 13% 20%
Price (USD) 1% 3% 4% 6% (0%) (3%)
Price (local currency) 1% 3% 4% 6% (0%) (3%)
Domestic gray cement, ready mix and aggregates volumes for CEMEX’s operations in the United States increased by 9%, 10% and 20%, respectively,
during the fourth quarter of 2012 versus the same period last year. For the full year, domestic gray cement, ready mix and aggregates increased by 14%, 20% and 13%, respectively, versus the full year 2011. On a like to like basis for the ongoing operations, ready mix and aggregates volumes increased by 14% and by 12%, respectively, for the full year versus the full year 2011. Sales
volumes for the quarter reflect improved demand in most of our markets. Record high affordability, low interest rates
and a return to low levels of inventories led to higher activity in the residential sector which continued to gain
momentum during the quarter. The industrial and commercial sector showed a strong performance while demand from infrastructure improved marginally.
2012 Fourth Quarter Results Page 3
OPERATING RESULTS
Northern Europe
January December Fourth Quarter
l t l % l t l %
2012 2011 % Var. 2012 2011 % Var.
Var.* Var.*
Net sales 4,100 4,728 (13%) (8%) 1,014 1,099 (8%) (7%)
Operating EBITDA 404 413 (2%) 4% 80 81 (2%) (0%)
Operating EBITDA margin 9.9% 8.7% 1.2pp 7.9% 7.4% 0.5pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter
variation
Volume (13%) (13%) (8%) (7%) (6%) (3%)
Price (USD) (5%) 1% (5%) (1%) (4%) (0%)
Price (local currency) 2% 1% 2% 2% 2% 2%
Our domestic gray cement volumes in the Northern Europe region decreased by 13% during the fourth quarter of 2012
and decreased by 13% for the full year versus the full year 2011.
In the United Kingdom, during the quarter and on a year over year basis, volumes for domestic gray cement, ready mix and aggregates decreased by 2%, 3% and 4%, respectively. For the full year our domestic gray cement volumes, ready mix and aggregates declined by 7%, 12% and 11%, respectively, versus the comparable period in the previous year.
The economic recession and cuts in public spending resulted in lower construction levels during the quarter. Tight credit
conditions restricted the activity in the residential sector. The performance
of the industrial and commercial sector remained weak.
In our operations in France, domestic ready mix volumes decreased by 8% and our aggregates volumes remained flat during the fourth quarter of 2012 versus the
comparable period last year. For the full year, ready mix volumes and aggregates declined by 5% and 3%, respectively, versus the same period last year.
Construction activity during the quarter reflected the economic slowdown. The decline in the residential sector was
mainly attributable to the elimination of tax incentives and tight credit
availability. Despite deteriorated market conditions, the residential sector continued
to be the main
driver of consumption.
In Germany, our domestic gray cement volumes remained flat during the fourth quarter and decreased by 10% for the
full year versus the same period last year. A slowdown in the economic environment affected our volumes during
the quarter. Demand for building materials during 2012 was driven by the residential sector which maintained its
favorable momentum with low mortgage rates and low levels of unemployment. Bottlenecks in the construction industry
and adverse weather conditions continued to restrict construction work and increase the backlog of projects.
Domestic gray cement volumes of our operations in Poland decreased by 27% during the quarter and declined by 15%
for the full year versus the comparable periods in 2011. Con
struction activity for the quarter was affected by harsh weather conditions and the deterioration of the economy with
low levels of investment and consumption. The financial constraints faced by construction companies and the high
base of consumption in 2011 explained the weak performance of the infrastructure sector. The residential sector also
showed a slowdown during the quarter.
2012 Fourth Quarter Results Page 4
OPERATING RESULTS
Mediterranean
January December Fourth Quarter
l t l % l t l %
2012 2011 % Var. 2012 2011 % Var.
Var.* Var.*
Net sales 1,457 1,719 (15%) (10%) 354 384 (8%) (6%)
Operating EBITDA 375 438 (14%) (10%) 82 94 (12%) (9%)
Operating EBITDA margin 25.7% 25.5% 0.2pp 23.3% 24.3% (1.0pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter
variation
Volume (19%) (14%) (9%) (1%) (15%) (10%)
Price (USD) (6%) (1%) (3%) 1% (4%) 4%
Price (local currency) (1%) 2% 4% 3% 4% 7%
Our domestic gray cement volumes in the Mediterranean region decreased by 14% during the fourth quarter and
decreased by 19% for the full year versus the same periods in 2011.
Domestic gray cement volumes for our operations in Spain decreased by 30% and our ready mix volumes declined by 30% on a year over year basis during the quarter. For the full year, domestic gray cement and ready mix volumes decreased by
40% and 43%, respectively, compared to the previous year. The decrease in volumes for building materials during the
quarter reflects the adverse economic situation. The performance of the residential sector remained affected by high
inventories and limited credit availability. The continued fiscal austerity measures kept infrastructure spending at
very low levels.
In Egypt, our domestic gray cement volumes decreased by 9% during the fourth quarter of 2012 and declined by
10% for the full year versus the same period last year. The informal residential sector continued to be the main
driver of demand. An effort from developers to complete unfinished projects increased the activity in the residential
sector during the quarter. Investments in projects from the infrastructure sector remained on hold.
South, Central America and the Caribbean
January December Fourth Quarter
l t l % l t l %
2012 2011 % Var. 2012 2011 % Var.
Var.* Var.*
Net sales 2,093 1,747 20% 20% 520 449 16% 14%
Operating EBITDA 703 492 43% 42% 159 116 37% 32%
Operating EBITDA margin 33.6% 28.2% 5.4pp 30.6% 25.9% 4.7pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter
variation
Volume 6% 6% 5% 2% 6% 2%
Price (USD) 10% 8% 16% 12% 13% 19%
Price (local currency) 10% 7% 15% 9% 12% 15%
Our domestic gray cement volumes in the region increased by 6% during the fourth quarter of 2012 and increased by
6% for the full year versus the comparable periods last year.
Domestic gray cement volumes for our operations in Colombia increased by 2% during the fourth quarter and
increased by 5% for the full year versus the same period last year. Construction activity during the fourth quarter
was driven by the infrastructure sector, which benefited from ongoing projects and the initiation of new road projects
towards the end of the year. During the same period, the residential sector showed a recovery mainly in the low income
housing due to the start of a government program aimed at providing 100,000 homes for free. Higher confidence levels
and favorable expectations for new trade agreements resulted in higher investment levels favoring the performance of the
industrial and commercial sector primarily in warehouses and commercial buildings.
2012 Fourth Quarter Results Page 5
OPERATING RESULTS
Asia
January December Fourth Quarter
l t l % l t l %
2012 2011 % Var. 2012 2011 % Var.
Var.* Var.*
Net sales 542 505 7% 6% 139 124 12% 8%
Operating EBITDA 99 81 21% 20% 28 18 55% 49%
Operating EBITDA margin 18.2% 16.1% 2.1pp 20.4% 14.8% 5.6pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter
variation
Volume 12% 8% (18%) (16%) (54%) (53%)
Price (USD) 9% 19% 0% 3% (9%) (4%)
Price (local currency) 8% 14% 0% 1% (8%) (7%)
Our domestic gray cement volumes in the region increased by 8% during the fourth quarter and increased by 12%
for the full year versus the same period last year.
In the Philippines, our domestic gray cement volumes increased by 13% during the fourth quarter of 2012 and
increased by 15% for the full year versus the comparable periods of last year. Volumes for the quarter benefited
from the increase in public and private spending activities. Stable levels of inflation and mortgage rates as well as
healthy remittances inflows during the quarter also contributed to the growth in the residential sector. The industrial and commercial sector continued with its positive trend during the same period.
2012 Fourth Quarter Results Page 6
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION
Operating EBITDA and free cash flow
January December Fourth Quarter
2012 2011 % Var 2012 2011 % Var
Operating earnings before other expenses, net 1,308 967 35% 285 227 26%
+ Depreciation and operating amortization 1,307 1,405 325 313
Operating EBITDA 2,615 2,372 10% 611 540 13%
Net financial expense 1,388 1,339 362 337
Maintenance capital expenditures 431 336 214 166
Change in working capital 211 174 (309) (408)
Taxes paid 393 287 95 113
Other cash items (net) 23 45 21 (47)
Free cash flow after maintenance capital expenditures 169 191 (11%) 228 379 (40%)
Strategic capital expenditures 178 149 85 67
Free cash flow (8) 42 N/A 143 312 (54%)
In millions of US dollars, except percentages.
The free cash flow during the quarter plus the proceeds received from CLH in connection with their initial share
offering were used to pay debt and to replenish our cash balance.
Our debt during the quarter reflects a negative foreign exchange conversion effect of US$65 million.
Information on Debt and Perpetual Notes
Third Fourth
Fourth Quarter Quarter Quarter
2012 2011 % Var 2012 2012 2011
Total debt (1) 16,171 17,048 (5%) 17,180 Currency denomination
Short term 1% 2% 1% US dollar 83% 78%
Long term 99% 98% 99% Euro 15% 19%
Perpetual notes 473 938 (50%) 471 Mexican peso 2% 3%
Cash and cash equivalents 971 1,155 (16%) 785 Other 0% 0%
Net debt plus perpetual notes 15,674 16,830 (7%) 16,866
Interest rate
Consolidated funded debt (2)/EBITDA (3) 5.44 5.98 Fixed 69% 56%
Variable 31% 44%
Interest coverage (3) (4) 2.10 2.03
In millions of US dollars, except percentages and ratios.
(1) Includes convertible notes and capital leases, in accordance with International Financial Reporting Standards (IFRS).
(2) Consolidated funded debt as of December 31, 2012 was US$14,195 million, in accordance with our contractual
obligations under the Facilities Agreement.
| (3) |
|
EBITDA calculated in accordance with IFRS. |
| (4) |
|
Interest expense calculated in accordance with our contractual obligations under the Facilities Agreement. |
2012 Fourth Quarter Results Page 7
EQUITY RELATED AND DERIVATIVE INSTRUMENTS INFORMATION
Equity related information
One CEMEX ADS represents ten CEMEX CPOs. The following amounts are expressed in CPO terms.
Beginning of quarter CPO equivalent units outstanding 10,917,209,744
Stock based compensation 909,535
End of quarter CPO equivalent units outstanding 10,918,119,279
Outstanding units equal total CPOs issued by CEMEX less CPOs held in subsidiaries. CEMEX has outstanding mandatory convertible notes which, upon conversion, will increase the number of CPOs
outstanding by approximately 194 million, subject to antidilution adjustments.
Employee long term compensation plans
As of December 31, 2012, executives had outstanding options on a total of 11,600,189 CPOs, with a weighted
average strike price of approximately US$1.40 per CPO (equivalent to US$14.02 per ADS). Starting in 2005, CEMEX
began offering executives a restricted stock ownership program. As of December 31, 2012, our executives held
30,921,769 restricted CPOs, representing 0.3% of our total CPOs outstanding as of such date.
Derivative instruments
The following table shows the notional amount for each type of derivative instrument and the aggregate fair market value
for all of CEMEX’s derivative instruments as of the last day of each quarter presented.
Fourth Quarter Third Quarter
2012 2011 2012
Notional amounts of equity related derivatives (1) (2) 2,775 2,794 2,774
Estimated aggregate fair market value (1) (3) (4) (138) 12 (57)
In millions of US dollars.
The estimated aggregate fair market value represents the approximate settlement result as of the valuation date, based
upon quoted market prices and estimated settlement costs, which fluctuate over time. Fair market values and notional
amounts do not represent amounts of cash currently exchanged between the parties; cash amounts will be determined
upon termination of the contracts considering the notional amounts and quoted market prices as well as other derivative
items as of the settlement date. Fair market values should not be viewed in isolation, but rather in relation to the fair
market values of the underlying hedge transactions and the overall reduction in CEMEX’s exposure to the risks being
hedged.
Note: Under IFRS, companies are required to recognize all derivative financial instruments on the balance sheet as
assets or liabilities, at their estimated fair market value, with changes in such fair market values recorded in the income
statement, except when transactions are entered into for cash flow hedging purposes, in which case changes in the fair
market value of the related derivative instruments are recognized temporarily in equity and then reclassified into earnings
as the inverse effects of the underlying hedged items flow through the income statement. As of December 31, 2012, in
connection with the fair market value recognition of its derivatives portfolio, CEMEX recognized increases in its assets
and liabilities resulting in a net a liability of US$89 million, including a liability of US$365 million corresponding to an
equity embedded derivative related to our convertible notes, which according to our debt agreements, is presented net of
the assets associated with the derivative instruments. The notional amounts of derivatives substantially match the amounts
of underlying assets, liabilities, or equity transactions on which the derivatives are being entered into.
Excludes an interest rate swap related to our long term energy contracts. As of December 31, 2012, the notional amount
of this derivative was US$181 million, with a positive fair market value of approximately US$49 million.
Includes a notional amount of US$360 million in connection with a guarantee by CEMEX of a financial transaction
entered into by its employees’ pension fund trust. As of December 31, 2012, the fair value of this financial guarantee
represented a liability of US$58 million, which is net of a collateral deposit of US$76 million.
Net of a cash collateral deposited under open positions. Cash collateral was US$91 million as of December 31, 2012.
Includes, as required by IFRS, the fair value of conversion call options embedded in CEMEX’s convertible notes,
representing as of December 31, 2012 and 2011 US$365 million and US$66 million, respectively.
2012 Fourth Quarter Results Page 8
OPERATING RESULTS
Consolidated Income Statement & Balance Sheet
CEMEX, S.A.B. de C.V. and Subsidiaries (Thousands of U.S. Dollars, except per ADS amounts)
January December Fourth Quarter
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INCOME STATEMENT 2012 2011 % Var. % Var.* 2012 2011 % Var. % Var.*
Net Sales 14,983,754 15,215,332 (2%) 1% 3,709,291 3,708,636 0% (1%)
Cost of Sales (10,548,382) (10,910,787) 3% (2,574,452) (2,689,164) 4%
Gross Profit 4,435,372 4,304,546 3% 6% 1,134,839 1,019,472 11% 9%
Selling, General and Administrative Expenses (3,127,406) (3,337,833) 6% (849,428) (792,791) (7%)
Operating Earnings before Other Expenses, Net 1,307,966 966,712 35% 43% 285,412 226,681 26% 19%
Other Expenses, Net (432,872) (436,616) 1% (231,086) (149,233) (55%)
Operating Earnings 875,087 530,096 65% 54,319 77,448 (30%)
Financial Expenses (1,467,586) (1,389,153) (6%) (388,809) (353,672) (10%)
Financial Income 47,191 39,315 20% 12,878 12,670 2%
Exchange Gain (loss), Net 86,868 (153,731) N/A 66,261 (48,151) N/A
Gain (loss) on Financial Instruments 13,536 (6,106) N/A (18,209) 26,006 N/A
Total Comprehensive Financing (cost) Income (1,319,990) (1,509,675) 13% (327,880) (363,147) 10%
Net Income Before Income Taxes (444,902) (979,579) 55% (273,560) (285,699) 4%
Income Tax (463,668) (978,159) 53% (199,318) (481,163) 59%
Net Income Before Participation
of Uncons. Subs. (908,570) (1,957,738) 54% (472,878) (766,862) 38%
Participation in Unconsolidated Subsidiaries 55,358 (26,752) N/A 22,952 5,590 311%
Consolidated Net Income (loss) (853,206) (1,984,490) 57% (449,919) (761,272) 41%
Non controlling Interest Net Income (loss) 50,310 1,711 2841% 38,666 (433) N/A
CONTROLLING INTEREST NET INCOME (LOSS) (903,516) (1,986,201) 55% (488,585) (760,839) 36%
Operating EBITDA 2,614,746 2,371,766 10% 14% 610,817 539,543 13% 10%
Earnings (loss) per ADS (0.80) (1.78) 55% (0.43) (0.68) 37%
As of December 31
BALANCE SHEET 2012 2011 % Var.
Total Assets 37,258,266 38,800,217 (4%)
Cash and Temporary Investments 971,027 1,155,332 (16%)
Trade Accounts Receivables 1,844,177 1,877,136 (2%)
Other Receivables 485,563 376,648 29%
Inventories 1,282,883 1,264,589 1%
Other Current Assets 344,014 283,166 21%
Current Assets 4,927,665 4,956,870 (1%)
Fixed Assets 16,521,491 16,741,312 (1%)
Other Assets 15,809,110 17,102,035 (8%)
Total Liabilities 25,149,388 26,500,622 (5%)
Current Liabilities 4,186,240 4,622,782 (9%)
Long Term Liabilities 13,816,289 14,598,711 (5%)
Other Liabilities 7,146,859 7,279,129 (2%)
Consolidated Stockholders’ Equity 12,108,880 12,299,595 (2%)
Non controlling Interest and Perpetual Instruments 1,127,454 1,189,217 (5%)
Stockholders’ Equity Attributable to Controlling Interest 10,981,427 11,110,378 (1%)
2012 Fourth Quarter Results Page 9
OPERATING RESULTS
Consolidated Income Statement & Balance Sheet
CEMEX, S.A.B. de C.V. and Subsidiaries
(Thousands of Mexican Pesos in nominal terms, except per ADS amounts)
January December Fourth Quarter
INCOME STATEMENT 2012 2011 % Var. 2012 2011 % Var.
Net Sales 197,036,359 189,887,346 4% 48,109,508 50,585,791 (5%)
Cost of Sales (138,711,217) (136,166,618) (2%) (33,390,640) (36,680,195) 9%
Gross Profit 58,325,142 53,720,728 9% 14,718,867 13,905,596 6%
Selling, General and Administrative Expenses (41,125,394) (41,656,161) 1% (11,017,077) (10,813,667) (2%)
Operating Earnings before Other Expenses, Net 17,199,748 12,064,567 43% 3,701,791 3,091,929 20%
Other Expenses, Net (5,692,262) (5,448,965) (4%) (2,997,185) (2,035,544) (47%)
Operating Earnings 11,507,401 6,615,603 74% 704,521 1,056,386 (33%)
Financial Expenses (19,298,750) (17,336,626) (11%) (5,042,859) (4,824,083) (5%)
Financial Income 620,567 490,646 26% 167,024 172,820 (3%)
Exchange Gain (loss), Net 1,142,317 (1,918,568) N/A 859,404 (656,774) N/A
Gain (loss) on Financial Instruments 177,998 (76,201) N/A (236,166) 354,717 N/A
Total Comprehensive Financing (cost) Income (17,357,868) (18,840,749) 8% (4,252,598) (4,953,320) 14%
Net Income Before Income Taxes (5,850,467) (12,225,146) 52% (3,548,077) (3,896,934) 9%
Income Tax (6,097,231) (12,207,423) 50% (2,585,150) (6,563,066) 61%
Net Income Before Participation
of Uncons. Subs. (11,947,699) (24,432,569) 51% (6,133,227) (10,460,000) 41%
Participation in Unconsolidated Subsidiaries 727,952 (333,870) N/A 297,691 76,250 290%
Consolidated Net Income (loss) (11,219,660) (24,766,440) 55% (5,835,451) (10,383,751) 44%
Non controlling Interest Net Income (loss) 661,581 21,351 2999% 501,501 (5,903) N/A
CONTROLLING INTEREST NET INCOME (LOSS) (11,881,241) (24,787,791) 52% (6,336,953) (10,377,848) 39%
Operating EBITDA 34,383,915 29,599,638 16% 7,922,302 7,359,366 8%
Earnings (loss) per ADS (10.46) (22.17) 53% (5.59) (9.29) 40%
As of December 31
BALANCE SHEET 2012 2011 % Var.
Total Assets 478,768,716 541,651,024 (12%)
Cash and Temporary Investments 12,477,703 16,128,431 (23%)
Trade Accounts Receivables 23,697,672 26,204,817 (10%)
Other Receivables 6,239,481 5,258,000 19%
Inventories 16,485,053 17,653,656 (7%)
Other Current Assets 4,420,586 3,953,000 12%
Current Assets 63,320,496 69,197,905 (8%)
Fixed Assets 212,301,154 233,708,710 (9%)
Other Assets 203,147,066 238,744,409 (15%)
Total Liabilities 323,169,638 369,948,683 (13%)
Current Liabilities 53,793,196 64,534,040 (17%)
Long Term Liabilities 177,539,310 203,798,000 (13%)
Other Liabilities 91,837,132 101,616,643 (10%)
Consolidated Stockholders’ Equity 155,599,113 171,702,342 (9%)
Non controlling Interest and Perpetual Instruments 14,487,781 16,601,467 (13%)
Stockholders’ Equity Attributable to Controlling Interest 141,111,332 155,100,874 (9%)
2012 Fourth Quarter Results Page 10
OPERATING RESULTS
Operating Summary per Country
In thousands of U.S. dollars
January December Fourth Quarter
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NET SALES 2012 2011 % Var. % Var. * 2012 2011 % Var. % Var. *
Mexico 3,377,353 3,474,439 (3%) 2% 831,933 818,010 2% (3%)
U.S.A. 3,061,704 2,616,257 17% 14% 756,327 682,145 11% 11%
Northern Europe 4,100,169 4,728,139 (13%) (8%) 1,014,440 1,099,495 (8%) (7%)
Mediterranean 1,456,844 1,719,375 (15%) (10%) 353,703 384,311 (8%) (6%)
South, Central America and the Caribbean 2,093,419 1,747,105 20% 20% 519,533 448,595 16% 14%
Asia 541,926 505,486 7% 6% 139,306 124,212 12% 8%
Others and intercompany eliminations 352,338 424,531 (17%) (17%) 94,048 151,868 (38%) (38%)
TOTAL 14,983,754 15,215,332 (2%) 1% 3,709,291 3,708,636 0% (1%)
GROSS PROFIT
Mexico 1,694,993 1,714,493 (1%) 4% 438,133 439,705 (0%) (5%)
U.S.A. 256,113 (11,825) N/A 802% 81,400 10,791 654% 654%
Northern Europe 1,031,572 1,171,363 (12%) (7%) 272,539 287,517 (5%) (5%)
Mediterranean 479,572 586,771 (18%) (14%) 109,638 127,683 (14%) (12%)
South, Central America and the Caribbean 972,118 698,559 39% 38% 234,400 195,132 20% 17%
Asia 137,100 130,133 5% 4% 39,267 29,859 32% 25%
Others and intercompany eliminations (136,097) 15,051 N/A N/A (40,539) (71,214) 43% 43%
TOTAL 4,435,372 4,304,546 3% 6% 1,134,839 1,019,472 11% 9%
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET
Mexico 1,010,274 1,017,868 (1%) 5% 248,834 267,225 (7%) (12%)
U.S.A. (441,571) (635,519) 31% 33% (94,208) (148,630) 37% 37%
Northern Europe 153,394 112,105 37% 45% 14,351 7,606 89% 92%
Mediterranean 258,428 317,049 (18%) (15%) 52,338 64,083 (18%) (16%)
South, Central America and the Caribbean 617,632 393,655 57% 56% 136,319 94,842 44% 39%
Asia 69,659 52,280 33% 32% 20,785 10,959 90% 83%
Others and intercompany eliminations (359,851) (290,725) (24%) (33%) (93,008) (69,403) (34%) (31%)
TOTAL 1,307,966 966,712 35% 43% 285,412 226,681 26% 19%
2012 Fourth Quarter Results Page 11
OPERATING RESULTS
Operating Summary per Country
EBITDA in thousands of U.S. dollars. EBITDA margin as a percentage of net sales.
January December Fourth Quarter
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OPERATING EBITDA 2012 2011 % Var. % Var. * 2012 2011 % Var. % Var. *
Mexico 1,207,552 1,207,416 0% 5% 297,335 309,030 (4%) (9%)
U.S.A. 42,753 (89,310) N/A N/A 12,989 (15,526) N/A N/A
Northern Europe 404,322 413,222 (2%) 4% 80,033 81,291 (2%) (0%)
Mediterranean 374,937 438,159 (14%) (10%) 82,350 93,549 (12%) (9%)
South, Central America and the Caribbean 702,682 492,124 43% 42% 158,823 116,199 37% 32%
Asia 98,530 81,363 21% 20% 28,477 18,338 55% 49%
Others and intercompany eliminations (216,030) (171,208) (26%) (43%) (49,190) (63,338) 22% 26%
TOTAL 2,614,746 2,371,766 10% 14% 610,817 539,543 13% 10%
OPERATING EBITDA MARGIN
Mexico 35.8% 34.8% 35.7% 37.8%
U.S.A. 1.4% (3.4%) 1.7% (2.3%)
Northern Europe 9.9% 8.7% 7.9% 7.4%
Mediterranean 25.7% 25.5% 23.3% 24.3%
South, Central America and the Caribbean 33.6% 28.2% 30.6% 25.9%
Asia 18.2% 16.1% 20.4% 14.8%
TOTAL 17.5% 15.6% 16.5% 14.5%
2012 Fourth Quarter Results Page 12
OPERATING RESULTS
Volume Summary
Consolidated volume summary
Cement and aggregates: Thousands of metric tons.
Ready mix: Thousands of cubic meters.
January December Fourth Quarter
2012 2011 % Var. 2012 2011 % Var. 1
Consolidated cement volume 65,841 66,812 (1%) 15,764 16,328 (3%) 2
Consolidated ready mix volume 54,931 54,940 (0%) 13,732 13,991 (2%) 2
Consolidated aggregates volume 159,385 159,987 (0%) 40,511 39,008 4%
Per country volume summary
January December Fourth Quarter Fourth Quarter 2012 Vs.
DOMESTIC GRAY CEMENT VOLUME 2012 Vs. 2011 2012 Vs. 2011 Third Quarter 2012
Mexico (1%) (4%) (9%)
U.S.A. 14% 9% (9%)
Northern Europe (13%) (13%) (20%)
Mediterranean (19%) (14%) (0%)
South, Central America and the Caribbean 6% 6% 0%
Asia 12% 8% 0%
READY MIX VOLUME
Mexico (2%) 3% (1%)
U.S.A. 20% 10% (7%)
Northern Europe (8%) (7%) (12%)
Mediterranean (9%) (1%) 8%
South, Central America and the Caribbean 5% 2% (6%)
Asia (18%) (16%) 7%
AGGREGATES VOLUME
Mexico 2% 12% 1%
U.S.A. 13% 20% (8%)
Northern Europe (6%) (3%) (12%)
Mediterranean (15%) (10%) (4%)
South, Central America and the Caribbean 6% 2% (8%)
Asia (54%) (53%) 26%
1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement,
mortar and clinker.
2 The 2011 consolidated volumes do not include the Ready Mix USA’s volumes from April 1, 2011 to July 31, 2011
due to the IFRS migration which changed Ready Mix consolidation date from August 1, 2011 to March 31, 2011.
2012 Fourth Quarter Results Page 13
OPERATING RESULTS
Price Summary
Variation in U.S. Dollars
January December Fourth Quarter Fourth Quarter 2012 Vs.
DOMESTIC GRAY CEMENT PRICE 2012 Vs. 2011 2012 Vs. 2011 Third Quarter 2012
Mexico (3%) 8% 3%
U.S.A. 1% 3% 1%
Northern Europe (*) (5%) 1% 4%
Mediterranean (*) (6%) (1%) (1%)
South, Central America and the Caribbean (*) 10% 8% (0%)
Asia (*) 9% 19% 3%
READY MIX PRICE
Mexico (1%) 7% 2%
U.S.A. 4% 6% 1%
Northern Europe (*) (5%) (1%) 5%
Mediterranean (*) (3%) 1% 3%
South, Central America and the Caribbean (*) 16% 12% 0%
Asia (*) 0% 3% 3%
AGGREGATES PRICE
Mexico (3%) 9% 2%
U.S.A. (0%) (3%) 1%
Northern Europe (*) (4%) (0%) 5%
Mediterranean (*) (4%) 4% 7%
South, Central America and the Caribbean (*) 13% 19% 1%
Asia (*) (9%) (4%) 7%
(*) Volume weighted average price.
2012 Fourth Quarter Results Page 14
OPERATING RESULTS
Price Summary
Variation in Local Currency
January December Fourth Quarter Fourth Quarter 2012 Vs.
DOMESTIC GRAY CEMENT PRICE 2012 Vs. 2011 2012 Vs. 2011 Third Quarter 2012
Mexico 3% 2% 2%
U.S.A. 1% 3% 1%
Northern Europe (*) 2% 1% 0%
Mediterranean (*) (1%) 2% (2%)
South, Central America and the Caribbean (*) 10% 7% (0%)
Asia (*) 8% 14% 2%
READY MIX PRICE
Mexico 5% 2% 1%
U.S.A. 4% 6% 1%
Northern Europe (*) 2% 2% 2%
Mediterranean (*) 4% 3% (1%)
South, Central America and the Caribbean (*) 15% 9% 1%
Asia (*) 0% 1% 1%
AGGREGATES PRICE
Mexico 3% 3% 1%
U.S.A. (0%) (3%) 1%
Northern Europe (*) 2% 2% 1%
Mediterranean (*) 4% 7% 2%
South, Central America and the Caribbean (*) 12% 15% 1%
Asia (*) (8%) (7%) 5%
(*) Volume weighted average price.
2012 Fourth Quarter Results Page 15
OTHER ACTIVITIES
CEMEX management presents “Water Project” to standardize its operations´ water
On methodology January 10, to 2013, standardize CEMEX water announced measurement that it and has
management developed a across methodology will be rolled out to all of the businesses in the countries in all
of the company’s operations. Starting this year, this footprint which CEMEX and increase operates its in water order
efficiency. to minimize This “Water the company’s Project” is water the Union result of for a three year Conservation partnership of Nature between (IUCN)CEMEX on the and improvement the International
and efficiency of water management in the cement, ready mix concrete, and
aggregates sectors of the building materials industry. The roll out of this company’s methodology water will
footprint, start in 2013, and and secondly will focus on defining initially actions on measuring to increase the its
partnership water efficiency has so far and leveraged reduce important its water findings usage. from This data three year collection IUCN to minimize CEMEX’s water footprint and increase efficiency. “Water Project” was presented to members of the The CEMEX European day Commission in Brussels, Belgium, on December 12, 2012. conference, CEMEX and IUCN shared lessons learned During the one and ways forward towards improved sustainability of water resources.
CEMEX successfully completes financial plan for 2012
On December 17, 2012, CEMEX announced the completion of its financial plan for 2012, which included
several transactions to refinance and/or prepay company’s debt financial scheduled flexibility to mature and through significantly 2014, reducing
thereby its increasing refinancing the risk. maturing Under that year’s financial plan, CEMEX reduced the amount of debt through March 2015 to about
U.S.$650 million, at currently prevailing million matures during the first quarter of 2014. foreign exchange rates, of which approximately In addition, the average U.S.$600 life of debt increased to 5.6 years, from
3.8 years at the beginning of that year, with no significant change in yearly interest expense. The execution of the 2012
financial plan included various transactions, among others: Financing Refinancing Agreement of close dated to U.as
S.$of 6.7 August billion 14, of 2009, debt as under amended the (the “Financing Agreement”), into a new Facilities
Agreement (the “New Facilities Agreement”) with a final maturity in 2017 and Facilities Agreement provides CEMEX
with more flexible operating U.S.$500 million of new senior secured notes due 2018. The New and financial covenants.
Issuance maturing in of 2019 U.S.$ in 940 exchange million for in approximately new senior U. secured S.$452 million notes resulting in perpetual debentures and U. in a reduction of CEMEX’s S.$619 million in 2014 Eurobonds, overall indebtedness of U.S.$131 million. Issuance
of U. (the “2022 Notes”) S.$1.5 billion of new senior secured notes due 2022 .Initial Latam share Holdings, offering S.A.(“CLH”), of a 26.65%
resulting minority in net position proceeds in of CEMEX about
U.S.$960 million. to Proceeds from the 2022 Notes and CLH’s initial share offering were used prepay debt under the
New Facilities Agreement and the Financing Agreement. LIBOR on the New Facilities Agreement was reduced to 450 basis points, As a result of these prepayments, the spread
over 3 month the while, as a result of the refinancing of this agreement, the final maturity same spread CEMEX had under the
original Financing Agreement of this debt was extended by three years.
Latam CEMEX announces pricing of the initial offering of its subsidiary, CEMEX Holdings, S.A. and subsequently
announces exercise of put option related to initial purchasers’ stabilization activities subsidiary of CEMEX España, S. On November 6, 2012, CEMEX A., priced its initial offering of 170,388,000 announced that CLH, a wholly owned new common shares, at a price of 12,250 Colombian Pesos per common share. The common shares offered
by CLH included (a) 148,164,000 new common shares offered in a public offering to investors in Colombia and in a
concurrent private placement to eligible investors outside of Colombia, and (b) in such private placement an additional that were 22,224,000 new common shares offered subject to a put option
granted to following closing of the offering. the initial purchasers of the private CLH’s assets included substantially all of placement during the 30 day period Brazil, CEMEX’s Guatemala, cement and Nicaragua ready mix and assets El Salvador. in Colombia, CLH expected Panama, Costa to use Rica, the expected net proceeds to apply to repay its net
indebtedness proceeds to owed general to CEMEX, corporate who, purposes, in turn, including the repayment of existing
indebtedness.
On initial December offering 12, of 2012, 170,388,000 CEMEX common announced shares that, of in connection its su
bsidiary, with CLH, the that completed they intend on November to exercise 15, the 2012, put the option initial they
purchasers were granted. notified As CLH a purchasers result, CLH repurchased 22,224,000 of its common shares from the initial at a price of
U.S.$6.75 per common share, the U.S. Dollar equivalent common share. of the These initial shares offering represented price of 12,250 approximately Colombian 13% Pesos of per all shares
sold in the initial share offering and 100% of the shares subject to the put option. CLH used cash proceeds from the
initial share offering to repurchase the repurchased the common shares in shares treasury. from After the initial giving purchasers effect to the and exercise will hold of the CLH’s outstanding common shares,
excluding shares held in treasury. put option, CEMEX España, S.A., owned approximately 73.35% of CLH’s common shares are listed on the
Colombian Stock Exchange (Bolsa de Valores de Colombia S.A.) under the ticker CLH.
CEMEX developed by Clean Energy Fund to provide industry leading expertise for projects to be
On October 30, 2012, CEMEX announced that it will participate in a Clean Energy Fund that is expected
to raise approximately U.S.$300 million Capital through Development a public offer Certificates) of Certificados in de the Capital Bolsa de Mexicana Desarrollo de (CKDs, Valores or clean (Mexican energy stock
projects exchange) in Mexico. which proceeds CEMEX will will provide be invested its industry leading in a series of technical projects. CEMEX’s expertise participation in clean energy in the Clean generation
Energy to Fund all will of the be limited fund’s to technical the management committee and and the advisory certificate
activities holders under meeting the of guidance the projects of a participation authorized by to the a minority fund, not
equity exercising stake
not control, exceeding and 10% limiting in the its sponsored projects will projects. be consolidated Therefore, into neither the CEMEX the balance fund nor sheet. the CEMEX sponsored will development offer its experience and ongoing in energy operation. projects, As part from of initial its responsibilities, planning to related CEMEX will projects, provide an a team extensive
of professionals network of with contacts, experience assistance in energy in negotiating optimizing capital and closing
structures, these and type knowledge of transactions, of the different proficiency stages of in a project’s life cycle
2012 Fourth Quarter Results Page 16
In applicable December in 2012, 2013, the established Federal Revenue that the Law statutory (Ley Federal income de
Ingresos) tax rate 2015 and future years.
remained at 30% in 2013, then lowered it to 29% for 2014 and 28% for not been considered in the tax consolidation was
approximately US$ As of December 31, 2012, the balance of tax loss carryforwards that have 625 million. taxes payable
As of December resulting from 31, 2012, these the changes estimated in the payment tax consolidation schedule of dollars):
regime in Mexico were as follows (approximate amounts in millions of US dollars):
Nationalization of CEMEX Venezuela business, On August assets 18, 2008, and shares the Government of CEMEX
Venezuela of Venezuela and took expropriated control of its all facilities. 17, 2008. CEMEX controlled and operated CEMEX Venezuela until August In October 2008, CEMEX submitted a request to the
seeking International international Centre for arbitration Settlement claiming of Investment that the nationalization
Disputes (“ICSID”), and Venezuela did not comply with the terms of the treaty for the protection seizure of the facilities
located in Venezuela and owned by CEMEX Netherlands and with of investments signed international law, because
CEMEX had not receive by the Government of Venezuela and the any compensation and no public purpose was proven. 2011, following negotiations with the Government of On November 30, Venezuela and its was affiliate Corporación
Socialista de Cemento, S. reached between CEMEX and the Government A., a settlement agreement of Venezuela that received closed on
December 13, 2011. compensation for the Under this settlement agreement, CEMEX expropriation of CEMEX Venezuela and a administrative
services provided after the expropriation in the form of: (i) cash payment of US$240 million; and (ii) notes issued by Petróleos de Venezuela, maturity totaling S.A. (“PDVSA”),
approximately with US$ nominal 360 million. value and Additionally, interest income as part to of and all intercompany payments due from or to CEMEX Venezuela to
and the settlement, claims among all parties and their affiliates were released from accounts CEMEX payable were net
cancelled, of approximately resulting in US$ the 154 cancellation million. Pursuant for CEMEX to this of to settlement agreement, CEMEX and the government of
Venezuela agreed withdraw the ICSID arbitration. As a result of this settlement, CEMEX US$ cancelled 503 million the book and value recognized of its net a settlement assets in Venezuela gain in the of approximately
statement of operations of estimated currency translation effects accrued in equity. of approximately US$25 million, which includes the write off
Nationalization of CEMEX Venezuela business, On August assets 18, 2008, and shares the Government of CEMEX
Venezuela of Venezuela and took expropriated control of its all facilities. 17, 2008. CEMEX controlled and operated CEMEX Venezuela until August In October 2008, CEMEX submitted a request to the
seeking International international Centre for arbitration Settlement claiming of Investment that the nationalization Disputes
(“ICSID”), and Venezuela did not comply with the terms of the treaty for the protection seizure of the facilities located in
Venezuela and owned by CEMEX Netherlands and with of investments signed international law, because CEMEX had not
receive by the Government of Venezuela and the any compensation and no public purpose was proven. 2011, following negotiations with the Government of On November 30, Venezuela and its was affiliate Corporación
Socialista de Cemento, S. reached between CEMEX and the Government A., a settlement agreement of Venezuela that received closed on
December 13, 2011. compensation for the Under this settlement agreement, CEMEX expropriation of CEMEX Venezuela and a administrative
services provided after the expropriation in the form of: (i) cash payment of US$240 million; and (ii) notes issued by Petróleos de Venezuela, maturity totaling S.A. (“PDVSA”),
approximately with US$ nominal 360 million. value and Additionally, interest income as part to of and all intercompany payments due from or to CEMEX Venezuela
to and the settlement, claims among all parties and their affiliates were released from accounts CEMEX payable were net
cancelled, of approximately resulting in US$ the 154 cancellation million. Pursuant for CEMEX to this of to settlement agreement, CEMEX and the government of
Venezuela agreed withdraw the ICSID arbitration. As a result of this settlement, CEMEX US$ cancelled 503 million the book and value recognized of its net a settlement assets in Venezuela gain in the of approximately
statement of operations of estimated currency translation effects accrued in equity. of approximately US$25 million, which includes the write off of estimated currency translation effects accrued in equity.
OTHER INFORMATION
c) Others requirements As of December that 31, differ 2011, from in order MFRS, to there comply are certain with IFRS
reclassifications presentation between follows: a)line Approximately items in the US$ balance 210 million sheet, of the extraction most significant rights and are rights as to for using rented quarries were
reclassified from fixed assets under MFRS intangible assets under IFRS; and b) Approximately US$82 million of IFRS. deferred financing costs under MFRS were reclassified to debt under d) Storage costs
According to IAS 2 under IFRS, storage costs that are incurred during the production process should be excluded from
the cost of inventories and recognized within inventories. are required to be expensed as incurred. As of December 31, 2011, this adjustment Under MFRS, storage costs were represented million. The a corresponding
reduction in inventory effects during under the IFRS twelve month of approximately and US$ the 1 three month decreases in cost of sales against inventories. periods ended December 31, 2011 represented immaterial e) Property, machinery and equipment reserves, As of
December certain buildings 31, 2011, and resulting major machinery from the and valuation equipment of mineral located
in several countries at fair value as deemed cost upon transition to IFRS, this line item decreased approximately
US$102 million under IFRS as compared to the carrying amount that such assets had under MFRS. statements
Under MFRS, by in inflation, order to several restate CEMEX’s certain operations components were of considered the
financial as operating accumulated inflation rate over the last three years exceeded 26%. in highly inflationary environments considering that Upon the threshold transition to IFRS as of January 1, 2010 and as of
December 31, 2011, the to consider whether an economy is hyperinflationary is approaching, or exceeds 100% was not
reached in any country in which presented when the accumulated inflation rate over the last three years CEMEX
elimination operates. under IFRS Consequently, of inflation as restatement of December effects 31, of 2011, property, the machinery resulted
in and a net equipment decrease and in this intangible line item assets for recognized approximately under US$ MFRS 551 million. depreciable For the twelve month amounts of period property, ended machinery December and 31, equipment 2011, the under different IFRS
resulting from increases in the depreciation expense under IFRS for approximately from the reconciling adjustments
described above, resulted US$57 million, as compared to the amounts recognized under MFRS.
f) Intangible assets transition Resulting from the identification and separation as intangible assets upon to IFRS of certain
extraction permits in the cement and ready mix twelve month sectors that and were the recognized three month within periods goodwill ended under December MFRS, 31, for 2011, the the decreased amortization by
approximately expense associated US$with 24 million extraction and permits US$8 under million, IFRS respectively, as
compared to the amounts recognized under MFRS.
g) Deferred financing costs with CEMEX’s Financing Agreement for approximately US$ Upon transition to IFRS, deferred financing costs under MFRS 514 million did associated and not meet all the
requirements for capitalization and deferral under IAS 39 were immediately recognized upon transition against retained
earnings, decreasing CEMEX’s deferred charges under IFRS. with this adjustment, for the twelve month and the three month periods In connection ended under IFRS December recognized 31, 2011, in the the statements amortization of
operations deferred financing decreased costs for compared to the amounts recognized under MFRS. approximately US$160 million and US$35 million, respectively, as compared to the amounts recognized under MFRS.
h) Amortized cost of debt under the Financing Agreement
As cost of of December a portion 31, of the 2011, debt resulting included from in CEMEX’s differences Financing in the
Agreement amortized approximately upon transition US$ to 5 IFRS, million. the For balance the twelve month of debt under and IFRS the decreased three month for periods (interest ended expense) December associated 31, 2011, with changes the accretion in its expense amortized of this cost debt was approximately
US$3 million and US$1 million, respectively. i) Pensions and postretirement benefits
Upon transition to IFRS, CEMEX elected to reset to zero all cumulative net actuarial losses pending for amortization
under MFRS against retained the earnings. employee As of December benefits’ liability 31, 2011, increased in connection for approximately with this adjustment,
US$525 million as compared to the amount recognized under MFRS. under Under MFRS, IFRS, termination such
termination benefits benefits are were expensed accrued as incurred, based on actuarial whereas calculations provision
under of the MFRS estimated was cancelled obligation. against Upon retained transition earnings. to IFRS, As the a benefits liability under IFRS decreased for approximately US$ result of this adjustment, as of December 31, 2011, the 32 million. employee j) Asset retirement obligations (decommissioning costs)
Upon transition to IFRS, there were certain differences between CEMEX’s liabilities for asset retirement obligations
under MFRS and those determined under IFRS against under IFRS, the related which assets. resulted As in of an December increase in 31, the 2011 liability as a result under IFRS increased by approximately US$ of this adjustment, the liabilities for 36 million. asset retirement obligations k) Deferred income taxes changes in the deferred tax assets and liabilities under IFRS as
compared The different amounts of assets and liabilities under IFRS generate to the those net deferred previously tax
recognized asset under under IFRS MFRS. (deferred As tax of December assets less 31, deferred 2011, tax to the net deferred tax asset previously recorded under
MFRS. liabilities) increased for approximately US$176 million, as compared l) Uncertain tax positions recognized Under MFRS,
the income tax effects from an uncertain tax position were following a cumulative probability model; meanwhile, under
value approach or a single best estimate of the most likely outcome only IFRS, the tax effects of a position are measured
using either an expected as of the reporting date. if it is “more likely than not” to be sustained based on its technical merits In making this assessment, CEMEX has assumed that knowledge of all
relevant information. the tax authorities will examine Each position has been considered each position and have full The on its own, regardless
of its relation to any other broader tax settlement. more likely than not threshold represents a positive assertion by position. management If a tax that position CEMEX is is entitled not considered to the economic more likely than not benefits of to a tax be sustained, December 31, no 2011, benefits resulting of the from position the difference are to be
in recognized. the measurement As of and recognition of the effects related to uncertain tax positions between MFRS and IFRS, the
provision for uncertain tax positions recorded under IFRS amounts increased recorded for under approximately MFRS. For US$ the 579 twelve month million as compared and the to three the the uncertain tax positions under IFRS resulted in increase in the income month periods ended December 31, 2011,
the income tax effects from tax respectively, as compared to the amounts recorded under MFRS. expense for approximately US$197 million and US$69million
respectively, as compared to the amounts recorded under MFRS.
2012 Fourth Quarter Results Page 19
OTHER INFORMATION
Most significant reconciliation items from MFRS to IFRS in 2011
Considering following tables present the reconciliation from MFRS to IFRS of the main the disclosure requirements of
IFRS 1 and IAS 34, the the statements of operations for the twelve month and the three month accounts of the consolidated balance sheet as of December 31, 2011 and periods ended December 31, 2011.
Reconciliation period ended December 31, 2011 of statements of operations for the twelve month period ended December 31, 2011
Millions of US Reconciling
dollars notes MFRS Adjustment IFRS
Net sales (m) 15,139 76 15,215
Cost of sales (d, e, f, m) (10,823) (88) (10,911)
Gross profit 4,316 (12) 4,304
Operating expenses (e, f, m) (3,356) 18 (3,338)
Operating earnings
before other 960 6 966
expenses, net
Other expenses, net (e, m) (340) (97) (437)
Operating earnings 620 (91) 529
Comprehensive
financing cost, net (b, g, m) (1,859) 349 (1,510)
Equity in loss of
associates (m) (33) 8 (25)
Loss before income
taxes (1,272) 266 (1,006)
Income tax (k, l, m) (264) (714) (978)
Consolidated net
loss (1,536) (448) (1,984)
Non controlling
interest net income
(loss) (3) 5 2
Controlling interest
net loss (1,533) (453) (1,986)
Reconciliation of statements of operations for the three month
period ended December 31, 2011
Millions of US Reconciling MFRS Adjustment IFRS
dollars notes
Net sales 3,706 3 3,709
Cost of sales (d, e, f) (2,687) (2) (2,689)
Gross profit 1,019 1 1,020
SG&A expenses (e, f) (795) 2 (793)
Operating earnings
before other 224 3 227
expenses, net
Other expenses, net (e) 13 (162) (149)
Operating earnings 237 (159) 78
Comprehensive
financing cost, net (b, g) (319) (44) (363)
Equity in loss of
associates 6 (1) 5
Loss before income
taxes (76) (204) (280)
Income tax (k, l) (71) (410) (481)
Consolidated net
loss (147) (614) (761)
Non controlling
interest net Income (1) 1
Controlling interest
net loss (146) (615) (761)
Balance sheet reconciliation as of December 31, 2011
Millions of US Reconciling MFRS Adjustment IFRS
dollars notes
Total Assets 39,276 (476) 38,800
Cash and
Investments 1,155 1,155
Trade receivables
less allowance for
doubtful accounts (a) 965 912 1,877
Other accounts
receivables and
other current assets (a, b, c) 846 (186) 660
Inventories, net (d, e) 1,256 8 1,265
Property, machinery
and equipment (c, e) 17,605 (863) 16,741
Other non current
assets (c, f, g, k,) 17,449 (347) 17,102
Total Liabilities 24,396 2,105 26,501
Current Liabilities (a, c, i, j) 4,059 563 4,623
Long term
liabilities (b, c, h) 16,756 (2,157) 14,599
(a, b, c, i, j,
Other liabilities k, l) 3,580 3,699 7,279
Total stockholders’
equity 14,881 (2581) 12,300
Total liabilities and
stockholders´
equity 39,276 (476) 38,800
Notes to the reconciliations from MFRS to IFRS a) Derecognition of financial assets and liabilities financial CEMEX
has institutions securitization under programs which, in in several accordance countries with with MFRS various and
considering receivables that sold CEMEX and that surrenders there is control no guarantee associated or with obligation
the trade to reacquire balance sheet the assets, at the the moment accounts of the receivable sale, except were removed
for the unfunded from the IAS amounts that were reclassified to other short term accounts receivable. 39 under IFRS does not permit many securitizations to qualify for retain derecognition due to some ongoing involvement
that causes entities to some of the risks and rewards related to the transferred assets. CEMEX´s Hence, under
securitization IFRS, except programs for non recourse of trade accounts factoring receivable transactions, under IFRS recognized did not against qualify a
corresponding for derecognition, liability. and As the of December funded amount 31, 2011 is there million. was a net increase in short term assets of approximately US$684 b) Fair value of derivative financial instruments instruments IAS 39 under should
IFRS requires reflect the that credit the fair risk value of the of derivative counterparties, financial in comparison of
December 31, 2011, the effect of including the credit risk to CEMEX´s with MFRS that does not provide any related
guidance. As derivative million in the financial net liability instruments under IFRS. represented The corresponding a net increase effect of for US$ the 21 represented twelve month an and approximately the three month loss periods of US$ended 29 million December and a 31, loss 2011 of US$7million, respectively. options Under
IFRS, embedded due to the in CEMEX’s functional convertible currency of notes the are issuer, recognized the
conversion at fair value represented through the the equity statements components of operations. of such Under notes MFRS, and these were options not subsequently the three month periods ended December 31, 2011, changes in fair value valued after initial recognition. For the twelve month and under risk, of IFRS approximately of the aforementioned US$376 million options and resulted a loss, net in
gain, of credit net of risk, credit of US$41 million, respectively.
2012 Fourth Quarter Results Page 18
OTHER INFORMATION
m) Ready Mix Consolidation date Considering of Ready certain Mix USA, potential LLC was voting March rights,
31, 2011, under whereas IFRS, the under acquisition MFRS, CEMEX assumed effective control. CEMEX acquired Ready Mix USA, As a result of this difference, CEMEX’s LLC on August 1, 2011 date in which
statement December 31, 2011, include results of operations of Ready Mix USA, LLC of operations under IFRS for the
twelve month period ended for the same period.
2012 Fourth Quarter Results Page 20
DEFINITIONS OF TERMS AND DISCLOSURES
Methodology for translation, consolidation, and presentation of results
Under IFRS, beginning January 1, 2008, CEMEX translates the financial statements of foreign subsidiaries using
exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement. CEMEX reports its consolidated results in Mexican pesos.
For the reader’s convenience, beginning June 30, 2008, US dollar amounts for the consolidated entity are calculated by
converting the nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter. The exchange rates used to convert results for the fourth quarter of 2012 and the
fourth quarter of 2011 are 12.97 and 13.64 Mexican pesos per US dollar, respectively.
Per country/region figures are presented in US dollars for the reader’s convenience. Figures presented in US dollars for Mexico, as of
December
31, 2012, and December 31, 2011, can be converted into their original local currency amount by multiplying the US dollar
figure by the corresponding average exchange rates for 2012 and 2011, provided below.
Breakdown of regions
Northern Europe includes operations in Austria, the Czech Republic, France, Germany, Hungary, Ireland, Latvia, Poland,
and the United Kingdom, as well as trading operations in several Nordic countries. The Mediterranean region includes
operations in Croatia, Egypt, Israel, Spain, and the United Arab Emirates.
The South, Central America and the Caribbean region includes CEMEX’s operations in Argentina, Bahamas, Brazil,
Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica, Nicaragua, Panama, Peru, and
Puerto Rico, as well as trading operations in the Caribbean region.
The Asia region includes operations in Bangladesh, China, Malaysia, the Philippines, Taiwan, and Thailand.
Definition of terms
Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures,
change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete
and/or substantially depleted operating fixed assets that are no longer in operation and coupon payments on our perpetual notes).
Maintenance capital expenditures investments incurred for the purpose of ensuring the company’s operational continuity.
These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels,
and mandatory capital expenditures, which are projects required to comply with governmental regulations or company
policies.
Net debt equals total debt (debt plus convertible bonds and financial leases) minus cash and cash equivalents.
Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp
equals percentage points Strategic capital expenditures investments incurred with the purpose of increasing the company’s
profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and
margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.
Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus
historical inventories minus operating payables.
Earnings per ADS
The number of average ADSs outstanding used for the calculation of earnings per ADS was 1,123.9 million for the
fourth quarter of 2012; 1,117.0 million for year to date 2012; 1,110.8 million for the fourth quarter of 2011;
and 1,108.5 million for year to date 2011.
According to the IAS 33 Earnings per share, the weighted average number of common shares outstanding is determined
considering the number of days during the accounting
period in which the shares have been outstanding, including shares derived from corporate events that have modified
the stockholder’s equity structure during the period, such as increases in the number of shares by a public offering and
the distribution of shares from stock dividends or recapitalizations of retained earnings and the potential diluted shares
(Stock options, Restricted Stock Options and Mandatory Convertible Shares). The shares issued as a result of share
dividends, recapitalizations and potential diluted shares are considered as issued at the beginning of the period.
Exchange rates January December Fourth Quarter
2012 2011 2012 2011
Average Average Average Average
Mexican peso 13.15 12.48 12.97 13.64
Euro 0.775 0.7164 0.7665 0.7425
British pound 0.6281 0.623 0.6202 0.6348
Amounts provided in units of local currency per US dollar.
2012 Fourth Quarter Results Page 21
| Exhibit 3
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Exhibit 3
Cemex
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Forward looking information
This presentation contains certain forward looking statements and information relating to CEMEX, S.A.B. de C.V. and its subsidiaries (collectively, “CEMEX”) that are based on its knowledge of present facts, expectations and projections, circumstances and assumptions about future events. Many factors could cause the actual results, performance or achievements of CEMEX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward looking statements, including, among others, changes in general economic, political, governmental, and business conditions globally and in the countries in which CEMEX operates, CEMEX’s ability to comply with the terms and obligations of the facilities agreement entered into with major creditors and other debt agreements, CEMEX’s ability to achieve anticipated cost savings, changes in interest rates, changes in inflation rates, changes in exchange rates, the cyclical activity of the construction sector generally, changes in cement demand and prices, CEMEX’s ability to benefit from government economic stimulus plans, changes in raw material and energy prices, changes in business strategy, changes in the prevailing regulatory framework, natural disasters and other unforeseen events and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or targeted. Forward looking statements are made as of the date hereof, and CEMEX does not intend, nor is it obligated, to update these forward looking statements, whether as a result of new information, future events or otherwise.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
| 2 |
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4Q12 results highlights
January – December Fourth Quarter
l t l % l t l %
Millions of US dollars 2012 2011 % var 2012 2011 % var
var var
Net sales 14,984 15,215 (2%) 1% 3,709 3,709 0% (1%)
Gross profit 4,435 4,305 3% 6% 1,135 1,019 11% 9%
Operating Earnings before
1,308 967 35% 43% 285 227 26% 19%
Other Expenses, Net
Operating EBITDA 2,615 2,372 10% 14% 611 540 13% 10%
Free cash flow after
169 191 (11%) 228 379 (40%)
maintenance capex
Sixth consecutive quarter with year over year operating EBITDA growth
During 2012, operating EBITDA and operating EBITDA margin driven by improvements in our pricing and
volume in several of our regions as well as the continued success of our transformation effort
Infrastructure and housing continued to be the main drivers of demand for our products
| 3 |
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Consolidated volumes and prices
2012 vs. 2011 4Q12 vs. 4Q11 4Q12 vs. 3Q12
Volume (l t l1 ) (1%) (2%) (7%)
Domestic gray
Price (USD) 1% 6% 2%
cement
Price (l t l1 ) 5% 5% 1%
Volume (l t l1 ) (2%) (1%) (5%)
Ready mix Price (USD) 0% 4% 2%
Price (l t l1 ) 5% 4% 0%
Volume (l t l1 ) (1%) 4% (8%)
Aggregates Price (USD) (2%) 1% 2%
Price (l t l1 ) 2% 1% 0%
Increase in domestic gray cement volumes in our operations in the U.S., and the South, Central America and the
Caribbean and Asia regions, partially mitigated the declines in the Northern the Europe and Mediterranean regions
and, to a lesser extent, Mexico
Consolidated prices for our cement increased sequentially in local currency terms while our ready mix and aggregates prices remained stable
For the full year, consolidated prices for our three core products showed low to mid single digit increase in local currency terms
| 1 |
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Like to like volumes adjusted for investments/divestments and, in the case of prices, foreign exchange fluctuations |
| 4 |
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4Q12 and 2012 achievements
During 2012, highest operating EBITDA generation and operating EBITDA margin since 2009
EBITDA margin improvement reflects our operating leverage, operating efficiencies and commercial and pricing strategies
Positive EBITDA generation from our U.S. operations for the first time since 2009
Record high cement volumes in Colombia, Panama, Nicaragua and the Philippines and record high ready mix volumes in Israel
Transformation effort resulted in incremental improvement of US$200 million in our steady state operating EBITDA during 2012
2012 financial plan significantly improved debt maturity profile and strengthened capital structure
27% alternative fuel substitution rate during 2012
| 5 |
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Fourth Quarter 2012
Regional Highlights
|
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Mexico
Millions of
2012 2011 % var l t l % var 4Q12 4Q11 % var l t l % var
US dollars
Net Sales 3,377 3,474 (3%) 2% 832 818 2% (3%)
Op. EBITDA 1,208 1,207 0% 5% 297 309 (4%) (9%)
as % net sales 35.8% 34.8% 1.0pp 35.7% 37.8% (2.1pp)
Volume 2012 vs. 4Q12 vs. 4Q12 vs. The industrial and commercial sector was
2011 4Q11 3Q12 the most dynamic during 2012
Cement (1%) (4%) (9%) Cement volumes for infrastructure and
Ready mix (2%) 3% (1%) informal residential sector remained stable
Aggregates 2% 12% 1% during the year
In the formal residential sector, homebuilders
continued facing working capital constraints
2012 vs. 4Q12 vs. 4Q12 vs.
Price (LC) and high inventory levels
2011 4Q11 3Q12
Cement 3% 2% 2% Prices for our three core products reflect
favorable trend in local currency terms
Ready mix 5% 2% 1%
Aggregates 3% 3% 1%
| 7 |
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United States
Millions of
2012 2011 % var l t l % var 4Q12 4Q11 % var l t l % var
US dollars
Net Sales 3,062 2,616 17% 14% 756 682 11% 11%
Op. EBITDA 43 (89) N/A N/A 13 (16) N/A N/A
as % net sales 1.4% (3.4%) 4.8pp 1.7% (2.3%) 4.0pp
2012 vs. 4Q12 vs. 4Q12 vs. Quarterly and full year increase in sales and
Volume 2011 4Q11 3Q12 operating EBITDA reflects continued evidence
of operating leverage in our results
Cement 14% 9% (9%)
Third consecutive quarter of positive EBITDA
Ready mix 20% 10% (7%)
generation
Aggregates 13% 20% (8%)
Volumes showed double digit growth in our
three core products for the full year; December
Price (LC) 2012 vs. 4Q12 vs. 4Q12 vs. was the 17th consecutive month of year over
2011 4Q11 3Q12 year growth in cement volumes
Cement 1% 3% 1% Our cement and ready mix prices continued to
Ready mix 4% 6% 1% reflect favorable trend
Aggregates (0%) (3%) 1% Industrial and commercial and residential
sectors fueled quarterly volumes
| 8 |
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Northern Europe
Millions of
2012 2011 % var l t l % var 4Q12 4Q11 % var l t l % var
US dollars
Net Sales 4,100 4,728 (13%) (8%) 1,014 1,099 (8%) (7%)
Op. EBITDA 404 413 (2%) 4% 80 81 (2%) (0%)
as % net sales 9.9% 8.7% 1.2pp 7.9% 7.4% 0.5pp
Volume 2012 vs. 4Q12 vs. 4Q12 vs. During 2012, volumes in the region were
2011 4Q11 3Q12 affected by continued reduction in public
Cement (13%) (13%) (20%) and private spending
Ready mix (8%) (7%) (12%) The residential sector was the main driver
Aggregates (6%) (3%) (12%) of demand in Germany during the full year
In Poland, decline in volumes continued
affected by a reduction in infrastructure
| 1 |
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2012 vs. 4Q12 vs. 4Q12 vs. |
Price (LC) spending from a high consumption base in
2011 4Q11 3Q12
2011
Cement 2% 1% 0%
Ready mix 2% 2% 2%
Aggregates 2% 2% 1%
| 1 |
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Volume weighted, local currency average prices |
9
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Mediterranean
Millions of
2012 2011 % var l t l % var 4Q12 4Q11 % var l t l % var
US dollars
Net Sales 1,457 1,719 (15%) (10%) 354 384 (8%) (6%)
Op. EBITDA 375 438 (14%) (10%) 82 94 (12%) (9%)
as % net sales 25.7% 25.5% 0.2pp 23.3% 24.3% (1.0pp)
Volume 2012 vs. 4Q12 vs. 4Q12 vs. Increase in ready mix volumes from our
2011 4Q11 3Q12 operations in Israel, Croatia and Egypt
Cement (19%) (14%) (0%) partially mitigated declines in Spain and the
Ready mix (9%) (1%) 8% UAE
Aggregates (15%) (10%) (4%) During 2012, volumes of our products in
Spain reflect the adoption of austerity
measures which affected infrastructure
| 1 |
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2012 vs. 4Q12 vs. 4Q12 vs. spending as well as continued high |
Price (LC)
2011 4Q11 3Q12 inventories in the residential sector
Cement (1%) 2% (2%) In Egypt, the informal sector continued to be
Ready mix 4% 3% (1%) the main driver for cement demand
Aggregates 4% 7% 2%
| 1 |
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Volume weighted, local currency average prices |
10
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South, Central America and the Caribbean
Millions of
2012 2011 % var l t l % var 4Q12 4Q11 % var l t l % var
US dollars
Net Sales 2,093 1,747 20% 20% 520 449 16% 14%
Op. EBITDA 703 492 43% 42% 159 116 37% 32%
as % net sales 33.6% 28.2% 5.4pp 30.6% 25.9% 4.7pp
2012 vs. 4Q12 vs. 4Q12 vs.
Volume Operating EBITDA in the region showed
2011 4Q11 3Q12 double digit growth during the quarter and full
Cement 6% 6% 0% year
Ready mix 5% 2% (6%) Record cement volumes and operating EBITDA
Aggregates 6% 2% (8%) generation in Colombia, Panama, Nicaragua
and Brazil
2012 vs. 4Q12 vs. 4Q12 vs. The infrastructure and residential sectors
Price (LC)1 remain the main drivers of consumption for
2011 4Q11 3Q12
our products
Cement 10% 7% (0%)
Ready mix 15% 9% 1% In Panama, infrastructure activity remained
strong, driven by projects including the
Aggregates 12% 15% 1% Panama Canal, the Panama City metro system,
Cinta Costera 3 highway and hydroelectric
plants
| 1 |
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Volume weighted, local currency average prices 11 |
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Asia
Millions of
2012 2011 % var l t l % var 4Q12 4Q11 % var l t l % var
US dollars
Net Sales 542 505 7% 6% 139 124 12% 8%
Op. EBITDA 99 81 21% 20% 28 18 55% 49%
as % net sales 18.2% 16.1% 2.1pp 20.4% 14.8% 5.6pp
2012 vs. 4Q12 vs. 4Q12 vs.
Volume Increases in domestic cement volumes
2011 4Q11 3Q12 during the quarter and full year reflect
Cement 12% 8% 0% positive performance in the Philippines
Ready mix (18%) (16%) 7% and Bangladesh
Aggregates (54%) (53%) 26% Sequential price increase in our three core
products in local currency terms
2012 vs. 4Q12 vs. 4Q12 vs. The Philippines registered record high
Price (LC)1 domestic cement volumes during 2012
2011 4Q11 3Q12
driven by favorable performance in all
Cement 8% 14% 2%
sectors
Ready mix 0% 1% 1%
Aggregates (8%) (7%) 5%
| 1 |
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Volume weighted, local currency average prices |
12
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4Q12 Results
|
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Operating EBITDA, cost of sales and SG&A
January – December Fourth Quarter
l t l l t l
Millions of US dollars 2012 2011 % var 2012 2011 % var
% var % var
Net sales 14,984 15,215 (2%) 1% 3,709 3,709 0% (1%)
Operating EBITDA 2,615 2,372 10% 14% 611 540 13% 10%
as % net sales 17.5% 15.6% 1.9pp 16.5% 14.5% 2.0pp
Cost of sales 10,548 10,911 3% 2,574 2,689 4%
as % net sales 70.4% 71.7% 1.3pp 69.4% 72.5% 3.1pp
SG&A 3,127 3,338 6% 849 793 (7%)
as % net sales 20.9% 21.9% 1.0pp 22.9% 21.4% (1.5pp)
Decrease in cost of sales and SG&A as a percentage of net sales during 2012 reflect our initiatives to improve
operating efficiencies, lower fuel costs and increased utilization rates
During 2012, kiln fuel and electricity bill on a per ton of cement produced basis decreased by 1.4%
14
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Free cash flow
January – December Fourth Quarter
Millions of US dollars 2012 2011 % var 2012 2011 % var
Operating EBITDA 2,615 2,372 10% 611 540 13%
Net Financial Expense 1,388 1,339 362 337
Maintenance Capex 431 336 214 166
Change in Working Cap 211 174 (309) (408)
Taxes Paid 393 287 95 113
Other Cash Items (net) 23 45 21 (47)
Free Cash Flow after Maint.Capex 169 191 (11%) 228 379 (40%)
Strategic Capex 178 149 85 67
Free Cash Flow (8) 42 N/A 143 312 (54%)
Working capital days declined to a record low 30 days during 2012, from 32 days in 2011
15
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Other income statement items
Other expenses, net, of US$231 million during the quarter included mainly severance payments, impairments of fixed assets and goodwill, as well as losses in sales of fixed assets
Foreign exchange gain of US$66 million due primarily to revaluation of the euro
Loss on financial instruments of US$18 million related mainly to options embedded in our convertible securities
16
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Fourth Quarter 2012
Debt Information
Debt related information
|
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Transactions under 2012 financial plan
Refinancing of close to US$6.7 billion of debt under the Financing Agreement 2009 into new Facilities
with a final maturity in 2017 and US$500 million of new senior secured notes due 2018
Issuance of US$940 million in new senior secured notes due in 2019 in exchange of US$452 million in
perpetual debentures and US$619 million in 2014 Eurobonds
Issuance of US$1.5 billion in new senior secured notes due in 2022
Initial share offering of a 26.65% minority participation in CEMEX Latam Holdings, resulting in net proceeds of US$960 million
Total debt plus perpetual securities decreased by US$1 billion
Negative foreign exchange conversion effect of US$65 million during the quarter
As a result of debt prepayments to the new Facilities Agreement during the quarter, the spread over 3 month LIBOR under this agreement was reduced to 450 basis points
18
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Consolidated debt maturity profile
Total debt excluding perpetual notes1 as of December 31, 2012 US$ 16,171 million
Millions of US dollars
6,000 5,000 4,000 3,000 2,000 1,000 0
110
676
1,436
2,600
4,836
2,679
955
2,880
2013 2014 2015 2016 2017 2018 2019 2020
New Facilities Agreement
Original Financing Agreement
Other bank / WC debt / Certificados Bursátiles
Fixed Income
Convertible Subordinated Notes2
| 1 |
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CEMEX has perpetual debentures totaling US$473 million |
2Convertible Subordinated Notes include only the debt component of US$2,044 million. Total notional amount is about US$2,383 million
19
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Appendix
|
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Additional information on debt and perpetual notes
Currency denomination
Interest rate
Mexican peso 2%
Mexican peso
Euro 2% 15%
U.S. dollar 83%
Variabe 31%
Fixed 69%
Fourth Quarter Third Quarter
Millions of US dollars 2012 2011 % Var. 2012
Total debt1 16,171 17,048 (5%) 17,180
Short term 1% 2% 1%
Long term 99% 98% 99%
Perpetual notes 473 938 (50%) 471
Cash and cash equivalents 971 1,155 (16%) 785
Net debt plus perpetual notes 15,674 16,830 (7%) 16,866
Consolidated Funded Debt2 / EBITDA3 5.44 5.98
Interest Coverage3 4 2.10 2.03
| 1 |
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Includes convertible notes and capital leases, in accordance with IFRS |
2 Consolidated Funded Debt as of December 31, 2012 was US$14,195 million, in accordance with our contractual obligations under the Facilities Agreement
| 3 |
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EBITDA calculated in accordance with IFRS |
4Interest expense in accordance with our contractual obligations under the Facilities Agreement
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2012 volume and price summary: Selected countries
Domestic gray cement Ready mix Aggregates
2012 vs. 2011 2012 vs. 2011 2012 vs. 2011
Prices Prices Prices Prices Prices Prices
Volumes Volumes Volumes
(USD) (LC) (USD) (LC) (USD) (LC)
Mexico (1%) (3%) 3% (2%) (1%) 5% 2% (3%) 3%
U.S. 14% 1% 1% 14%1 3%1 3%1 12%1 0%1 0%1
Spain (40%) (6%) 2% (43%) (5%) 3% (50%) (9%) (1%)
UK (7%) 2% 3% (12%) 1% 2% (11%) (0%) 1%
France N/A N/A N/A (5%) (6%) 2% (3%) (2%) 7%
Germany (10%) (6%) 3% (5%) (8%) 1% (7%) (5%) 3%
Poland (15%) (11%) (2%) (12%) (11%) (2%) (8%) (18%) (9%)
Colombia 5% 22% 19% 14% 23% 20% 25% 9% 6%
Panama 32% 1% 1% 8% 13% 13% (1%) 6% 6%
Costa Rica 12% (1%) (2%) 18% (0%) (1%) (12%) 44% 43%
Egypt (10%) (4%) (2%) 2% (13%) (11%) (5%) (6%) (4%)
Philippines 15% 10% 7% N/A N/A N/A N/A N/A N/A
| 1 |
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On a like to like basis for the ongoing operations 22 |
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4Q12 volume and price summary: Selected countries
Domestic gray cement Ready mix Aggregates
4Q12 vs. 4Q11 4Q12 vs. 4Q11 4Q12 vs. 4Q11
Prices Prices Prices Prices Prices Prices
Volumes Volumes Volumes
(USD) (LC) (USD) (LC) (USD) (LC)
Mexico (4%) 8% 2% 3% 7% 2% 12% 9% 3%
U.S. 9% 3% 3% 10% 6% 6% 20% (3%) (3%)
Spain (30%) (4%) (1%) (30%) (9%) (6%) (53%) (5%) (1%)
UK (2%) 5% 3% (3%) 3% 1% (4%) 1% (1%)
France N/A N/A N/A (8%) (1%) 3% 0% 1% 5%
Germany (0%) (3%) 2% (7%) (3%) 1% (8%) (0%) 4%
Poland (27%) (3%) (6%) (19%) (5%) (8%) (13%) (8%) (11%)
Colombia 2% 22% 14% 12% 24% 16% 11% 19% 12%
Panama 33% (3%) (3%) 7% 1% 1% 11% 11% 11%
Costa Rica 6% 8% 5% 20% 8% 5% 22% (2%) (4%)
Egypt (9%) 1% 5% (9%) (2%) 1% (22%) 21% 24%
Philippines 13% 18% 12% N/A N/A N/A N/A N/A N/A
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Definitions
2012 / 2011: results for the twelve months of the years 2012 and 2011, respectively.
Cement: When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10,
the base for reported cement volumes changed from total domestic cement including clinker to domestic gray cement).
LC: Local currency.
Like to like percentage variation (l t l % var): Percentage variations adjusted for investments/divestments and currency fluctuations.
Maintenance capital expenditures: investments incurred for the purpose of ensuring the company’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or company policies.
Operating EBITDA: Operating earnings before other expenses, net plus depreciation and operating amortization.
pp: percentage points.
Strategic capital expenditures: investments incurred with the purpose of increasing the company’s profitability.
These include capital expenditures on projects designed to increase profitability by expanding capacity, and
margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.
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Contact information
Investor Relations
In the United States
+1 877 7CX NYSE
In Mexico
+52 81 8888 4292 ir@cemex.com
Stock Information
NYSE (ADS): CX
Mexican Stock Exchange: CEMEXCPO
Ratio of CEMEXCPO to CX:10 to 1
Calendar of Events
February 14, 2013 CEMEX Day
March 21, 2013 Ordinary and Extraordinary General Shareholders Meetings
April 26, 2013 First quarter 2013 financial results conference call
July 25, 2013 Second quarter 2013 financial results conference call
October 24, 2013 Third quarter 2013 financial results conference call