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. | Second presentation that includes material information of CEMEX, S.A.B. de C.V. (NYSE:CX) discussed by its senior management on February 14, 2013 during its annual event, CEMEX Day. |
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 14, 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. |
Second presentation that includes material information of CEMEX, S.A.B. de C.V. (NYSE:CX) discussed by its senior management on February 14, 2013 during its annual event, CEMEX Day. | |
| Exhibit 1
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CEMEX Day 2013
February 14, 2013
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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.
1
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Jaime Elizondo
President South & Central America, and the Caribbean
February 14, 2013
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Unique value creation strategy based on solutions
Five Pillar Strategy
1 Agile, flexible and market-focused organization
2 Commercial strategy to support market expansion and higher value creation
3 Results-driven operation with superior productivity
4 Full dedication and commitment from highly talented pool of employees
5 Excellent reputation and relationship with stakeholders
Portfolio of Solutions
Housing Infrastructure Solutions Solutions
Distributor
Channel Builder
& Industrial Solutions Solutions
2
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A strategy built around customer needs and operational efficiency
Market Development
Housing New houses being Solutions built in the region
Infrastructure 500K m2 of Solutions pavement
Distribution
150 Construrama
Channel stores Solutions
Builders 13 onsite mini Solutions plants installed
Pricing
Domestic gray cement
+11% +5%
2010 2011 2012
Operational Excellence
Product Availability
Eliminate bottlenecks
New capacity in Colombia and Nicaragua
Efficiency
Energy consumption cost per ton reduced by 3.7% vs. 2011 ??Increased use of alternative fuels to 20%, vs. 9% in 2011
3
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2 Further increasing our efficiency and production capacity
Actions to Assure Product Access
Increase grinding capacity in Colombia and Nicaragua ??Eliminate bottle necks of transport equipment ??Cement packing automation system ??Contingency spare parts to avoid stoppages
Energy Cost Improvement
Plan to increase alternative fuels
40%
25% 20%
9%
2011 2012 2013 2016
Ongoing actions to reduce power cost
Solar panels Long-term contracts
4
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A continuing growth story
EBITDA variation 2012-2016
($ M)
112
267 70 1,040
251 703
EBITDA Volume Price Var. costs Fixed costs EBITDA 2012 & distribution 2016
We expect to grow close to 10% per year on average over the next four years
5
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Ignacio Madridejos
President Northern Europe
February 14, 2013
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Challenging short term, brighter medium term
2013 cement Cement 2013-2016E Cement volume consumption Avg. volume consumption guidance (1) 2013E growth 2016E
(kg per capita (2) ) (kg per capita (2) )
United Kingdom France Germany Poland
-4% 133 +4% 148
-3% 308 +2% 326 +2% 331 +2% 355 -4% 400 +4% 452
1) Cement volume guidance, except for France, where ready-mix guidance is presented
2) Based on internal demand forecasts and 2012 population data 3
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Pricing is key to economic sustainability of the industry
Medium Term Price Targets for our Products
€ / ton 140 120 100 80 60 40 20 0
Country A Country B Country C
Price range to cover WACC
4
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Towards 80% Alternative Fuels Substitution
Alternative Fuels Substitution 2012-2016E
(% of total fuels)
100 80 60 40 20 0
+12pp 2012
84 86 2016
77 80 76
73 72
68 62 59
Germany Poland UK Latvia Northern Europe
• Actively managing energy and fuels costs
• Strategically securing key inputs
5
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Aiming at zero working capital days
Working Capital
(Average days)
29
18
4
0
2007 2012 2014 2016
Strict monitoring of payment terms ?Improved training and incentives for sales forces ?Extension of supplier finance program Aggressive inventory management ?Implementation of raw materials consignments
Continuous improvement programs across the region
6
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Rationalizing our asset base
Asset Divestments
($ M)
350
280
2009-2012 2013-2016
Sale of non productive real estate in the UK
Disposal of idle offices in various countries
Divestment of non-core business units
$106M of divestments in 2012 Aiming for more than $100M in 2013
7
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Selective growth with third party financing
74 TPF Transactions in 2012
(Breakdown by Country)
Norway Hungary Austria Latvia
Germany
Czech Rep.
Poland
UK
France
Aggregates Ready Mix Cement
Royalty schemes and local partnerships
Rental schemes and partnerships with equipment manufacturers
JVs to secure key inputs and fund environmentaly friendly projects
8
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CEMEX Northern Europe – 2012-2016
EBITDA Evolution 2012-2016
($ M)
282 430
90 570
404 (1)
175
EBITDA Volumes Prices Var. Costs & Fixed EBITDA 2012 Distribution Costs 2016
1) Includes a $67M one-time benefit resulting from a change in a pension plan scheme in the region
9
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Jaime Muguiro
President Mediterranean
February 14, 2013
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Key markets affected by recession and social & political instability
Key markets affected by recession and social & political instability
Social and political transformation dampening short term growth Expect currency devaluation and a gradual reduction in energy subsidy Cement demand growing below full potential
Expect cycle to bottom out in 2013, with recovery starting next year Current cement demand at 1962 levels, at around 11 million tons Demand likely to increase to 15-20 million tons from 2016 onwards
3
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Key markets affected by recession and social & political instability
Israel
Others
Economic growth remains strong, despite geopolitics Increased construction to drive demand for ready mix and aggregates Profitable opportunities to expand along the value chain
Croatia will join the EU in July 2013, underpinning structural reforms and future demand growth Gulf states still recovering and industry needs to consolidate
4
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Positioned for a still challenging 2013; growth expected starting in 2014
Costs & Efficiencies
1 Continue downsizing to reduce personnel, SG&A, and corporate expenses
2 Shut down capacity to minimize fixed costs
3 Increase use of alternative fuels and production of low temperature clinker
Revenue
4 Pricing aligned with value before volume strategy
5 Increase the sale of special products, with better margins
6 Improve our offer of concrete paving & walling systems
Return on Capital
7 Reduce CAPEX and working capital
8 Divest non-core and mothballed assets
5
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1 EBITDA has been supported by downsizing efforts in the region
Headcount
-46%
6,639
4,330
3,780 3,588
2007 2011 2012 2013E
Personnel Expenses
($ M)
-48%
281
235
192
146
2007 2011 2012 2013E
Fixed Costs
($ M)
-51%
434
313 264
215
2007 2011 2012 2013E
Corporate Expenses
($ M)
-64%
109
54
44 40 2007 2011 2012 2013E
6
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Spain: significant downsizing in an unprecedented economic downturn
Headcount
-70%
2,996
1,609
1,091 900
2007 2011 2012 2013E
Personnel Expenses
($ M)
-70%
212
148
110
64
2007 2011 2012 2013E
Fixed Costs
($ M)
-74%
329
181
134
86
2007 2011 2012 2013E
Corporate Expenses
($ M)
-80%
72
27
18 14 2007 2011 2012 2013E
7
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2 With the exception of Israel, we have shut down capacity across the region
Croatia
Shut-down 2 kilns representing 44% of clinker capacity
Spain
Shut down 12 kilns representing about 59% of clinker capacity Closed 71 ready-mix and mortar plants, reducing production capacity by 60% Closed 13 aggregates quarries representing 56% of production capacity
UAE
Closed 7 ready-mix plants, representing 44% of production capacity Sold mothballed ready-mix assets and mobile equipment
Egypt
Divested Damietta terminal ($1M )
8
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3 Targeting further increases in alternative fuels
Spain
80%
60%
45%
10%
2007 2012 2013 2016
Egypt
50%
25% 17%
0%
2007 2012 2013 2016
Croatia
35%
11%
1% 4%
2007 2012 2013 2016
Introduction of petcoke in Egypt in 2013 to yield savings of $6—$8 per ton Switched to high-sulfur petcoke in Croatia, with savings of about $1 per ton
9
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4 Our pricing strategy in 2013
Prices at end of 2012 & announced price Increases
Spain
Gray Cement: 73.3 €/ton—+13% Ready-mix: 48.0 €/m3—+5% ??Aggregates: 6.7 €/ton—+2%
Israel
Ready-mix: 292.7 NIS/m3—+6% Aggregates: 32.4 NIS/ton—+13%
Egypt
Gray Cement: 484.6 EGP/ton—+12% Ready-mix: 307.0 EGP/m3—+2% Aggregates: 34.0 EGP/ton—+3%
10
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7 Continuing efforts to maximize cash generation
Severance Payments
($ M) 63
46 45
21
2008 2011 2012 2013
Avg. Working Capital Days
-68%
35
13
11 11
2008 2011 2012 2013
CAPEX
($ M)
-78%
275
73 72 59
2008 2011 2012 2013
8 Expect about $90M of asset sales in 2013-2015
11
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Expectations for 2016
EBITDA variation 2012-2016
($ M)
151 226
28 65 413 375
EBITDA Volume Price Var. costs Fixed costs EBITDA
2012 & distribution 2016
12
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Joaquin Estrada
President Asia
February 14, 2013
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Country operations are moving up the value chain by entering into new businesses
Cement Aggregates Admixtures Ready mix
Philippines Bangladesh Thailand Malaysia China
Note: Lighter shade indicates possible new businesses
3
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Growth in the region translating into strong results
Domestic Cement Sales Volume
(M tons)
5.7
4.6
4.1
2011 2012 2016
Sales and EBITDA
($ M)
Sales 781 EBITDA
542 506
158
79 97
2011 2012 2016
EBITDA
16% 18% 20%
Margin
4
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Philippines: commercial initiatives allows us to provide integrated solutions to clients
Ready mix
Focus on high-quality special concretes and “green” production process.
Basic and non service-oriented market provides a good opportunity
Aggregates
Leading the industry with the introduction of limestone aggregates instead of basalt Facilities well located to serve main markets in the country
Admixtures
R&D and production of admixtures for specialized design applications. Basic and non service-oriented market provides a good opportunity
Construction Solutions
Paving and precast solutions Affordable housing services and solutions
5
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Commercial initiatives to expand our value proposition in the rest of our portfolio
Bangladesh
Promoting premium-quality cement through new channels, brand-building and marketing initiatives
Thailand
Entering niche markets for cement products such as co-branded cement in the do-it-yourself segment
Malaysia
Promoting special products such as Concrete NEXT, Promptis and Self Compacting Concrete Leveraging asset base through contracted quarry operations
China
Focusing on specialized applications such as high-strength concrete Recognized as a top quality ready mix company
6
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EBITDA expected to grow about 12% per year on average over the next 4 years
EBITDA variation 2012-2016
($ M)
46 69
18 158
46
99 53
17
EBITDA Volume Price Var. costs Fixed costs EBITDA
2012 & distribution 2016
EBITDA
18.2% +140 bps 19.6%
Margin
7