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 April, 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 April 26, 2013, announcing first quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 2. |
First quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 3. |
Presentation regarding first quarter 2013 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. |
||||||||
| (Registrant) |
||||||||
| Date: |
April 26, 2013 |
By: /s/ Rafael Garza |
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| Name: Rafael Garza |
||||||||
| Title: Chief Comptroller |
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EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. |
Press release, dated April 26, 2013, announcing first quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. |
First quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. |
Presentation regarding first quarter 2013 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 FIRST-QUARTER
2013 RESULTS
MONTERREY, MEXICO, APRIL 26, 2013 – CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX), announced today that consolidated net sales reached U.S.$3.3 billion during the first quarter of 2013, a decrease of 5% versus the comparable period in 2012. Operating EBITDA decreased by 8% during the quarter to U.S.$521 million versus the same period in 2012. Adjusting for the fewer business days during the quarter and, in the case of operating EBITDA, for the extraordinary favorable effect in 2012 resulting from the change of a pension plan in our Northern Europe region, net sales declined by 2% and operating EBITDA increased by 9% during the first quarter of 2013.
CEMEX’s Consolidated First-Quarter 2013 Financial and Operational Highlights
| • | The decrease in consolidated net sales was due to fewer business days and lower volumes in the Northern Europe, Mexico, Mediterranean, and South, Central America and the Caribbean operations partially offset by higher prices, in local currency terms, in most of our regions. |
| • | Operating earnings before other expenses, net, in the first quarter remained flat at U.S.$239 million. |
| • | Operating EBITDA for the quarter, on a like-to-like basis adjusting for the effect of the change in pension plan mentioned above and the fewer business days during the quarter, increased by 9%. |
| • | Operating EBITDA margin, adjusting for the effect of the change in pension plan and the fewer business days during the quarter, increased by 1.6 percentage points on a year-over-year basis. |
| • | Controlling interest net income during the quarter was a loss of U.S.$281 million, versus a loss of U.S.$30 million in 2012. The year-over-year difference is mainly due to non-cash foreign exchange fluctuations. |
| • | Free cash flow after maintenance capital expenditures for the quarter was negative U.S.$483 million, compared with negative U.S.$287 million reduction in the same quarter of 2012. |
Fernando A. González, Executive Vice President of Finance and Administration, said: “We are pleased with the operating EBITDA growth and operating EBITDA margin expansion during the quarter on a comparable basis. This is the seventh consecutive quarter with year-over-year improvement in operating EBITDA.
We are also seeing good results from the initial stages of our value-before-volume strategy as evidenced by the sequential increase in our consolidated prices for cement ready-mix and aggregates, in both, local-currency and U.S. dollar terms.”
Consolidated Corporate Results
Total debt plus perpetual notes increased by U.S.$355 million during the quarter.
Geographical Markets First-Quarter 2013 Highlights
Net sales in our operations in Mexico decreased 7% in the first quarter of 2013 to U.S.$780 million, compared with U.S.$838 million in the first quarter of 2012. Operating EBITDA decreased by 11% to U.S.$263 million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of U.S.$736 million in the first quarter of 2013, up 8% from the same period in 2012. Operating EBITDA increased to U.S.$19 million in the quarter, versus the loss of U.S.$24 million in the same quarter of 2012.
In Northern Europe, net sales for the first quarter of 2013 decreased 13% to U.S.$756 million, compared with U.S.$873 million in the first quarter of 2012. Operating EBITDA was a loss of U.S.$17 million for the quarter, from a gain of U.S.$55 million for the same period last year.
First-quarter net sales in the Mediterranean region were U.S.$347 million, 8% lower compared with U.S.$377 million during the first quarter of 2012. Operating EBITDA decreased 25% to U.S.$73 million for the quarter versus the comparable period in 2012.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of U.S.$497 million during the first quarter of 2013, representing a decrease of 5% over the same period of 2012. Operating EBITDA increased 5% to U.S.$188 million in the first quarter of 2013, from U.S.$178 million in the first quarter of 2012.
Operations in Asia reported a 11% increase in net sales for the first quarter of 2013, to U.S.$142 million, versus the first quarter of 2012, and operating EBITDA for the quarter was U.S.$24 million, up 93% from the same period last 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, 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 income 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.
Exhibit 2
2013
FIRST 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 E Mail: ir@cemex.com
OPERATING AND FINANCIAL HIGHLIGHTS
January March First Quarter
l t l l t l
2013 2012 % Var. % Var.* 2013 2012 % Var. % Var.*
Consolidated cement volume (thousand
14,383 15,621 (8%) 14,383 15,621 (8%)
of metric tons)
Consolidated ready mix volume
11,812 12,457 (5%) 11,812 12,457 (5%)
(thousand of cubic meters)
Consolidated aggregates volume
33,460 33,550 (0%) 33,460 33,550 (0%)
(thousand of metric tons)
Net sales 3,319 3,503 (5%) (5%) 3,319 3,503 (5%) (5%)
Gross profit 909 941 (3%) (3%) 909 941 (3%) (3%)
Gross profit margin 27.4% 26.9% 0.5pp 27.4% 26.9% 0.5pp
Operating earnings before other
239 240 (0%) 0% 239 240 (0%) 0%
expenses, net
Operating earnings before other
7.2% 6.9% 0.3pp 7.2% 6.9% 0.3pp
expenses, net margin
Consolidated net income (loss) (265) (30) (786%) (265) (30) (786%)
Controlling interest net income (loss) (281) (30) (845%) (281) (30) (845%)
Operating EBITDA 521 567 (8%) (8%) 521 567 (8%) (8%)
Operating EBITDA margin 15.7% 16.2% (0.5pp) 15.7% 16.2% (0.5pp)
Free cash flow after maintenance
(483) (287) (68%) (483) (287) (68%)
capital expenditures
Free cash flow (510) (302) (69%) (510) (302) (69%)
Net debt plus perpetual notes 16,182 17,158 (6%) 16,182 17,158 (6%)
Total debt 16,528 17,676 (6%) 16,528 17,676 (6%)
Total debt plus perpetual notes 16,999 18,166 (6%) 16,999 18,166 (6%)
Earnings (loss) per ADS (0.24) (0.03) (836%) (0.24) (0.03) (836%)
Fully diluted earnings per ADS (0.24) (0.03) (836%) (0.24) (0.03) (836%)
Average ADSs outstanding 1,166.8 1,156.2 1% 1,166.8 1,156.2 1%
Employees 43,766 44,684 (2%) 43,766 44,684 (2%)
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 2013 and 2012, 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 during the first quarter of 2013 decreased to US$3,3 billion, a decline of 5% compared with the first quarter of 2012. Adjusting for the fewer business days in our operations during the quarter, the decline in net sales was 2%. The decrease in consolidated net sales was due to lower volumes in the Northern Europe, Mexico, Mediterranean, and South, Central America and the Caribbean operations partially offset by higher prices in local currency terms in most of our regions.
Cost of sales as a percentage of net sales decreased by 0.5pp during the first quarter of 2013 compared to the same period last year. The decrease was due mainly to lower fuel and electricity costs and a reduction in workforce related to our cost reduction initiatives.
Operating expenses as a percentage of net sales increased by 0.2pp during the first quarter of 2013 compared with the same period last year, from 20.0% to 20.2%. Adjusting for an extraordinary favorable effect resulting from the change of a pension plan in our Northern Europe region from a defined benefit to a defined contribution and which reduced our liability by US$69 million in 2012, operating expenses as a percentage of net sales were reduced by 1.8pp. The decrease during the quarter was the result of savings from our cost reduction initiatives and lower distribution expenses.
Operating EBITDA decreased by 8% to US$521 million during the first quarter of 2013 compared with the same period last year. Adjusting for the fewer business days during the quarter as well as by the pension
effect, operating EBITDA increased by 9%. The increase was due mainly to higher contributions from the U.S., and the South, Central America and the Caribbean, and Asia regions. Operating EBITDA margin decreased by 0.5pp from 16.2% in the first quarter of 2012 to 15.7% this quarter. Adjusting for
the pension effect and the fewer business days during the quarter, operating EBITDA margin increased 1.6pp mainly as a result of higher prices in local currency terms in most our regions, partially mitigated by lower volumes in Mexico, and our Northern Europe, the Mediterranean and South, Central America and the Caribbean operations.
Exchange gain (loss), net for the quarter was a loss of US$118 million, resulting mainly from the fluctuation of the euro and the Mexican peso.
Gain (loss) on financial instruments for the quarter was a gain of US$123 million, resulting mainly from derivatives related to CEMEX shares.
Controlling interest net income (loss) was a loss of US$281 million in the first quarter of 2013 versus a loss of US$30 million in the same quarter of 2012. The higher quarterly loss primarily reflects the negative effect in foreign exchange fluctuations, higher financial expenses and higher income taxes, partially offset by a gain in financial instruments.
Total debt plus perpetual notes increased by US$355 million during the quarter.
2013 First Quarter Results Page 2
OPERATING RESULTS
Mexico
January March First Quarter
l t l % l t l %
2013 2012 % Var. 2013 2012 % Var.
Var.* Var.*
Net sales 780 838 (7%) (9%) 780 838 (7%) (9%)
Operating EBITDA 263 297 (11%) (13%) 263 297 (11%) (13%)
Operating EBITDA margin 33.8% 35.4% (1.6pp) 33.8% 35.4% (1.6pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage
January March First Quarter January March First Quarter January March First Quarter
variation
Volume (10%) (10%) (8%) (8%) 1% 1%
Price (USD) 2% 2% 2% 2% 3% 3%
Price (local currency) (1%) (1%) 0% 0% 0% 0%
Our Mexican operations’ domestic gray cement volumes decreased by 10% during the quarter versus the same period last year, while ready mix volumes declined by 8% during the same period.
Volumes in the quarter were negatively affected by fewer working days compared to the same quarter last year due to the Holy Week holidays as well as an extra day in 2012 related to leap year. Adjusting for the fewer business days in the quarter, volumes declined by 5% for domestic gray cement and 3% for ready mix.
The industrial and commercial sector had a robust performance during the period. The transition process of the new government resulted in a delay in infrastructure spending as well as reduced spending in social programs. The
formal residential sector showed a slight decline during the quarter mainly due to delays in government subsidies and uncertainty surrounding the new housing policy. The informal residential sector was stable during the quarter reflecting an increase in aggregate wages and employment levels.
United States
January March First Quarter l t l % l t l % 2013 2012 % Var. 2013 2012 % Var.
Var.* Var.*
Net sales 736 684 8% 8% 736 684 8% 8% Operating EBITDA 19 (24) N/A N/A 19 (24) N/A N/A Operating EBITDA margin 2.6% (3.5%) 6.1pp 2.6% (3.5%) 6.1pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage
January March First Quarter January March First Quarter January March First Quarter variation
Volume 2% 2% 8% 8% 15% 15% Price (USD) 5% 5% 6% 6% (2%) (2%) Price (local currency) 5% 5% 6% 6% (2%) (2%)
Domestic gray cement, ready mix, and aggregates volumes for CEMEX’s operations in the United States increased by 2%, 8% and 15%, respectively, during the first quarter of 2013 versus the same period last year.
Sales volumes for the quarter reflect improved demand in most of our markets despite unfavorable weather conditions compared to unseasonably good weather last year. The residential sector continues to be the main driver for cement consumption supported by record high affordability, low interest rates, and low levels of inventories. The industrial and commercial sector maintained its positive momentum during the quarter.
2013 First Quarter Results Page 3
OPERATING RESULTS
Northern Europe
January March First Quarter
l t l % l t l %
2013 2012 % Var. 2013 2012 % Var.
Var.* Var.*
Net sales 756 873 (13%) (12%) 756 873 (13%) (12%)
Operating EBITDA (17) 55 N/A N/A (17) 55 N/A N/A
Operating EBITDA margin (2.2%) 6.3% (8.5pp) (2.2%) 6.3% (8.5pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage
January March First Quarter January March First Quarter January March First Quarter
variation
Volume (15%) (15%) (14%) (14%) (10%) (10%)
Price (USD) (1%) (1%) (1%) (1%) (0%) (0%)
Price (local currency) 1% 1% 1% 1% 2% 2%
During the first quarter of 2012 the operating EBITDA for the region had an extraordinary favorable effect resulting from the change of a pension plan for US$69 million. Excluding this effect, operating
EBITDA during the first quarter of 2012 was negative US$14 miilion versus negative US$17 million in the same period of 2013.
Adjusting for the fewer business days during the quarter, our domestic gray cement, ready mix and aggregates volumes in our Northern Europe region decreased by 11%, 11% and 7%, respectively, during the first quarter of 2013 versus the comparable period in 2012. In addition, adverse weather conditions in most countries of the region negatively affected our volumes.
In the United Kingdom, domestic gray cement volumes decreased, on a year over year basis, by 1%, ready mix volumes declined by 3% while our aggregates volumes decreased by 8% during the first quarter of 2013. Lower construction activity during the quarter reflects the cuts in public spending. Tight credit conditions restricted the activity in the residential sector.
In our operations in France, ready mix volumes decreased by 20% and our aggregates volumes declined by 2% during the first quarter of 2013 versus the comparable period last year. The snowy and cold winter conditions are responsible for most of the drop in ready mix volumes. Infrastructure activity was supported by several highways and high speed railway projects that started during 2012. Tight credit availability and the effect of the less attractive buy to let scheme introduced this year negatively affected the residential sector.
In Germany, our domestic gray cement volumes decreased by 14% during the first quarter on a year over year basis. The residential sector continued to be the main driver of demand for our products during the quarter supported by low mortgage rates and low unemployment. The infrastructure sector experienced some restraints in projects.
Domestic gray cement volumes of our operations in Poland declined by 36% during the quarter versus the comparable period in 2012. About half of the cement volume drop during the quarter was due to adverse weather conditions in the country. Infrastructure spending declined on a year over year basis due to a difficult 2012 comparison with investment leading up to the Euro 2012 championship.
2013 First Quarter Results Page 4
OPERATING RESULTS
Mediterranean
January March First Quarter
l t l % l t l %
2013 2012 % Var. 2013 2012 % Var.
Var.* Var.*
Net sales 347 377 (8%) (4%) 347 377 (8%) (4%)
Operating EBITDA 73 97 (25%) (19%) 73 97 (25%) (19%)
Operating EBITDA margin 21.1% 25.8% (4.7pp) 21.1% 25.8% (4.7pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage
January March First Quarter January March First Quarter January March First Quarter
variation
Volume (12%) (12%) 2% 2% (5%) (5%)
Price (USD) (4%) (4%) 1% 1% 9% 9%
Price (local currency) 5% 5% 1% 1% 8% 8%
Our domestic gray cement volumes in the Mediterranean region decreased by 12% during the first quarter of 2013 versus the same period in 2012.
Domestic gray cement volumes for our operations in Spain decreased by 33% and our ready mix volumes declined by 32% on a year over year basis during the quarter. Demand for our products was affected by fewer working days as well as unfavorable weather conditions during most of the quarter. Volumes during the period were also impacted by low construction activity in the different sectors reflecting the adverse economic situation. The continued fiscal austerity measures kept infrastructure spending at very low levels.
In Egypt, our domestic gray cement volumes decreased by 3% during the first quarter of 2013 on a year over year basis. Volumes during the quarter reflect the increase in cement capacity in the country. Energy shortages had a negative effect on the production and delivery of cement, partially mitigating the impact of this new capacity. The informal residential sector was the main driver of cement consumption during the quarter.
South, Central America and the Caribbean
January March First Quarter
l t l % l t l %
2013 2012 % Var. 2013 2012 % Var.
Var.* Var.*
Net sales 497 524 (5%) (4%) 497 524 (5%) (4%)
Operating EBITDA 188 178 5% 6% 188 178 5% 6%
Operating EBITDA margin 37.8% 34.0% 3.8pp 37.8% 34.0% 3.8pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage
January March First Quarter January March First Quarter January March First Quarter
variation
Volume (9%) (9%) (9%) (9%) (8%) (8%)
Price (USD) 3% 3% 6% 6% 4% 4%
Price (local currency) 5% 5% 7% 7% 5% 5%
Our domestic gray cement volumes in the region decreased by 9% during the first quarter of 2013 versus the comparable period last year.
In Colombia, domestic gray cement and aggregated volumes decreased by 15% and 6%, respectively, while ready mix volumes increased by 2% during the first quarter of 2013 versus the comparable period last year. Adjusting for the fewer business days in the quarter, volumes declined by 10% for domestic gray cement, grew by 7% for ready mix, and remained flat for aggregates. Our price increase at the beginning of the year, as expected, caused a slight reduction in our market share. In previous years after losing market share for this reason we have regained this market share in subsequent quarters.
Self construction sector experienced lower activity as some prospective home buyers have delayed their home purchasing decision awaiting the results of the government’s 100 thousand free homes program. In addition, Bogota experienced a decline in housing. Furthermore, some infrastructure projects which were expected to start during the quarter were delayed and are still in the feasibility stage.
2013 First Quarter Results Page 5
OPERATING RESULTS
Asia
January March First Quarter
l t l % l t l %
2013 2012 % Var. 2013 2012 % Var.
Var.* Var.*
Net sales 142 128 11% 7% 142 128 11% 7%
Operating EBITDA 24 12 93% 86% 24 12 93% 86%
Operating EBITDA margin 16.8% 9.7% 7.1pp 16.8% 9.7% 7.1pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage
January March First Quarter January March First Quarter January March First Quarter
variation
Volume 1% 1% (10%) (10%) 57% 57%
Price (USD) 16% 16% 2% 2% 9% 9%
Price (local currency) 10% 10% 3% 3% 10% 10%
Our domestic gray cement volumes in the region increased by 1% during the first quarter on a year over year basis.
In the Philippines, our domestic gray cement volumes increased by 4% during the first quarter of 2013 versus the comparable period of last year, despite the impact of less working days due to Holy Week.
The increase in volumes was driven by sustained infrastructure spending as well as favorable performance from the industrial and commercial sectors. Stable levels of inflation and mortgage rates as well as healthy remittances inflows during the quarter contributed to the growth in the residential sector.
2013 First Quarter Results Page 6
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION
Operating EBITDA and free cash flow
January March First Quarter
222013013 2012 % Var 2013 2012 % %Var
Operating earnings before other expenses, net 239 240 (1%) 239 240 (1%)
+ Depreciation and operating amortization 282 327 282 327
Operating EBITDA 521 567 (8%) 521 567 (8%)
Net financial expense 357 334 357 334
Maintenance capital expenditures 48 49 48 49
Change in working capital 332 301 332 301
Taxes paid 276 177 276 177
Other cash items (net) (9) (6) (9) (6)
Free cash flow after maintenance capital expenditures (483) (287) (68%) (483) (287) (68%)
Strategic capital expenditures 27 14 27 14
Free cash flow (510) (302) (69%) (510) (302) (69%)
In millions of US dollars, except percentages.
The negative free cash flow during the quarter was met with a decrease in cash balance, as well as the increase in debt during the quarter.
Information on debt and perpetual notes
Fourth First
First Quarter Quarter Quarter
2013 2012 % Var 2012 2013 2012
Total debt (1) 16,528 17,676 (6%) 16,171 Currency denomination
Short term 3% 2% 1% US dollar 85% 79%
Long term 97% 98% 99% Euro 13% 17%
Perpetual notes 471 490 (4%) 473 Mexican peso 2% 4%
Cash and cash equivalents 817 1,008 (19%) 971 Other 1% 0%
Net debt plus perpetual notes 16,182 17,158 (6%) 15,674
Interest rate
Consolidated funded debt (2) /EBITDA (3) 5.58 5.44 Fixed 67% 55%
Variable 33% 45%
Interest coverage (3) (4) 2.06 2.10
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 March 31, 2013 was US$14,319 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.
2013 First 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 10,918,119,279
Less increase (decrease) in the number of CPOs held in subsidiaries (549,760)
Stock?based compensation 355,190
End?of?quarter CPO?equivalent units outstanding 10,919,024,229
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 March 31, 2013, executives had outstanding options on a total of 6,621,309 CPOs, with a weighted?average strike price of approximately US$1.43 per CPO (equivalent to US$14.29 per ADS). Starting in 2005, CEMEX began offering executives a restricted stock?ownership program. As of March 31, 2013,
our executives held 25,899,582 restricted CPOs, representing 0.2% 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.
First Quarter Fourth Quarter
2013 2012 2012
Notional amount of equity related derivatives (1) (2) 2,426 2,787 2,775
Estimated aggregate fair market value (1) (3) (4) 375 (38) (138)
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 March 31, 2013, in connection with the fair market value recognition of its derivatives portfolio, CEMEX recognized increases in its assets and liabilities resulting in a net asset of US$422 million, including a liability of US$43 million corresponding to an embedded derivative related to our Mandatory 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.
(1) Excludes an interest?rate swap related to our long?term energy contracts. As of March 31, 2013, the notional amount of this derivative was US$181 million, with a positive fair market value of approximately US$47 million.
(2) Includes a notional amount of US$13 million in connection with a guarantee by CEMEX of a financial transaction entered into by its employees’ pension fund trust. As of March 31, 2013, the fair value of this financial guarantee represented an asset of US$14 million.
(3) Net of cash collateral deposited under open positions. Cash collateral was US$10 million as of March 31, 2013.
(4) As required by IFRS, the estimated aggregate fair market value as of March 31, 2013 includes a liability of US$43 million relating to an embedded derivative in CEMEX’s Mandatory Convertible Notes while the estimated aggregate fair market value as of March 31, 2012 and December 31, 2012 include a liability of US$179 million and US$365 million, respectively, related to an embedded derivative in CEMEX’s Optional Convertible Subordinated Notes. For more information please refer to page 17 “Change in the Parent Company’s functional currency.”
2013 First 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 ? March First Quarter
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INCOME STATEMENT 2013 2012 % Var. % Var.* 2013 2012 % Var. % Var.*
Net sales 3,318,617 3,502,550 (5%) (5%) 3,318,617 3,502,550 (5%) (5%)
Cost of sales (2,410,019) (2,561,251) 6% (2,410,019) (2,561,251) 6%
Gross profit 908,599 941,300 (3%) (3%) 908,599 941,300 (3%) (3%)
Operating expenses (669,453) (701,049) 5% (669,453) (701,049) 5%
Operating earnings before other expenses, net 239,146 240,251 (0%) 0% 239,146 240,251 (0%) 0%
Other expenses, net (19,551) (17,325) (13%) (19,551) (17,325) (13%)
Operating earnings 219,598 222,926 (1%) 219,598 222,926 (1%)
Financial expense (368,576) (343,024) (7%) (368,576) (343,024) (7%)
Other financial income (expense), net 2,906 179,941 (98%) 2,906 179,941 (98%)
Financial income 7,909 14,305 (45%) 7,909 14,305 (45%)
Results from financial instruments, net 123,144 29,174 322% 123,144 29,174 322%
Foreign exchange results (118,057) 149,576 N/A (118,057) 149,576 N/A
Effects of net present value on assets and liabilities and
others, net (10,090) (13,113) 23% (10,090) (13,113) 23%
Equity in gain (loss) of associates (4,792) (1,150) (317%) (4,792) (1,150) (317%)
Income (loss) before income tax (150,864) 58,693 N/A (150,864) 58,693 N/A
Income tax (114,498) (88,631) (29%) (114,498) (88,631) (29%)
Consolidated net income (loss) (265,363) (29,938) (786%) (265,363) (29,938) (786%)
Non?controlling interest net income (loss) 15,298 (228) N/A 15,298 (228) N/A
Controlling interest net income (loss) (280,661) (29,710) (845%) (280,661) (29,710) (845%)
Operating EBITDA 521,136 567,112 (8%) (8%) 521,136 567,112 (8%) (8%)
Earnings (loss) per ADS (0.24) (0.03) (836%) (0.24) (0.03) (836%)
As of March 31
BALANCE SHEET 2013 2012 % Var.
Total assets 37,274,044 39,612,339 (6%)
Cash and cash equivalents 817,055 1,008,067 (19%)
Trade receivables less allowance for doubtful accounts 1,940,064 2,061,938 (6%)
Other accounts receivable 512,212 470,794 9%
Inventories, net 1,309,884 1,317,767 (1%)
Other current assets 439,472 400,955 10%
Current assets 5,018,686 5,259,522 (5%)
Property, machinery and equipment, net 16,250,296 17,153,366 (5%)
Other assets 16,005,062 17,199,452 (7%)
Total liabilities 24,972,252 27,387,710 (9%)
Current liabilities 4,389,598 4,530,850 (3%)
Long?term liabilities 13,816,289 15,027,900 (8%)
Other liabilities 6,766,365 7,828,960 (14%)
Total stockholders’ equity 12,301,791 12,224,630 1%
Non?controlling interest and perpetual instruments 1,159,773 725,615 60%
Total controlling interest 11,142,019 11,499,015 (3%)
2013 First 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 ? March First Quarter
INCOME STATEMENT 2013 2012 % Var. 2013 2012 % Var.
Net sales 41,847,765 45,217,926 (7%) 41,847,765 45,217,926 (7%)
Cost of sales (30,390,337) (33,065,744) 8% (30,390,337) (33,065,744) 8%
Gross profit 11,457,428 12,152,182 (6%) 11,457,428 12,152,182 (6%)
Operating expenses (8,441,798) (9,050,542) 7% (8,441,798) (9,050,542) 7%
Operating earnings before other expenses, net 3,015,630 3,101,640 (3%) 3,015,630 3,101,640 (3%)
Other expenses, net (246,536) (223,671) (10%) (246,536) (223,671) (10%)
Operating earnings 2,769,133 2,877,969 (4%) 2,769,133 2,877,969 (4%)
Financial expense (4,647,743) (4,428,437) (5%) (4,647,743) (4,428,437) (5%)
Other financial income (expense), net 36,646 2,323,044 (98%) 36,646 2,323,044 (98%)
Financial income 99,734 184,672 (46%) 99,734 184,672 (46%)
Results from financial instruments, net 1,552,844 376,641 312% 1,552,844 376,641 312%
Foreign exchange results (1,488,702) 1,931,023 N/A (1,488,702) 1,931,023 N/A
Effects of net present value on assets and liabilities and
others, net (127,230) (169,293) 25% (127,230) (169,293) 25%
Equity in gain (loss) of associates (60,432) (14,845) (307%) (60,432) (14,845) (307%)
Income (loss) before income tax (1,902,397) 757,731 N/A (1,902,397) 757,731 N/A
Income tax (1,443,825) (1,144,224) (26%) (1,443,825) (1,144,224) (26%)
Consolidated net income (loss) (3,346,221) (386,493) (766%) (3,346,221) (386,493) (766%)
Non?controlling interest net income (loss) 192,908 (2,938) N/A 192,908 (2,938) N/A
Controlling interest net income (loss) (3,539,129) (383,556) (823%) (3,539,129) (383,556) (823%)
Operating EBITDA 6,571,522 7,321,416 (10%) 6,571,522 7,321,416 (10%)
Earnings (loss) per ADS (3.03) (0.33) (814%) (3.03) (0.33) (814%)
As of March 31
BALANCE SHEET 2013 2012 % Var.
Total assets 459,961,700 507,830,192 (9%)
Cash and cash equivalents 10,082,453 12,923,423 (22%)
Trade receivables less allowance for doubtful accounts 23,940,390 26,434,050 (9%)
Other accounts receivable 6,320,698 6,035,583 5%
Inventories, net 16,163,962 16,893,767 (4%)
Other current assets 5,423,079 5,140,247 6%
Current assets 61,930,582 67,427,070 (8%)
Property, machinery and equipment, net 200,528,653 219,906,149 (9%)
Other assets 197,502,465 220,496,972 (10%)
Total liabilities 308,157,594 351,110,439 (12%)
Current liabilities 54,167,643 58,085,496 (7%)
Long?term liabilities 170,160,123 192,657,682 (12%)
Other liabilities 83,829,829 100,367,261 (16%)
Total stockholders’ equity 151,804,105 156,719,753 (3%)
Non?controlling interest and perpetual instruments 14,311,597 9,302,379 54%
Total controlling interest 137,492,508 147,417,374 (7%)
2013 First Quarter Results Page 10
OPERATING RESULTS
Operating Summary per Country
In thousands of U.S. dollars
January ? March First Quarter
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NET SALES 2013 2012 % Var. % Var. * 2013 2012 % Var. % Var. *
Mexico 779,927 837,695 (7%) (9%) 779,927 837,695 (7%) (9%)
U.S.A. 735,985 684,310 8% 8% 735,985 684,310 8% 8%
Northern Europe 755,789 872,866 (13%) (12%) 755,789 872,866 (13%) (12%)
Mediterranean 347,231 377,242 (8%) (4%) 347,231 377,242 (8%) (4%)
South, Central America and the Caribbean 497,108 524,499 (5%) (4%) 497,108 524,499 (5%) (4%)
Asia 142,311 128,264 11% 7% 142,311 128,264 11% 7%
Others and intercompany eliminations 60,266 77,674 (22%) (22%) 60,266 77,674 (22%) (22%)
TOTAL 3,318,617 3,502,550 (5%) (5%) 3,318,617 3,502,550 (5%) (5%)
GROSS PROFIT
Mexico 368,411 407,998 (10%) (12%) 368,411 407,998 (10%) (12%)
U.S.A. 57,673 22,828 153% 153% 57,673 22,828 153% 153%
Northern Europe 116,305 137,305 (15%) (13%) 116,305 137,305 (15%) (13%)
Mediterranean 92,909 123,228 (25%) (20%) 92,909 123,228 (25%) (20%)
South, Central America and the Caribbean 244,006 255,215 (4%) (3%) 244,006 255,215 (4%) (3%)
Asia 31,639 21,171 49% 43% 31,639 21,171 49% 43%
Others and intercompany eliminations (2,344) (26,446) 91% 91% (2,344) (26,446) 91% 91%
TOTAL 908,599 941,300 (3%) (3%) 908,599 941,300 (3%) (3%)
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET
Mexico 214,662 243,758 (12%) (14%) 214,662 243,758 (12%) (14%)
U.S.A. (101,078) (147,956) 32% 32% (101,078) (147,956) 32% 32%
Northern Europe (67,083) (7,198) (832%) (850%) (67,083) (7,198) (832%) (850%)
Mediterranean 45,352 67,848 (33%) (27%) 45,352 67,848 (33%) (27%)
South, Central America and the Caribbean 166,648 157,818 6% 7% 166,648 157,818 6% 7%
Asia 15,798 5,231 202% 193% 15,798 5,231 202% 193%
Others and intercompany eliminations (35,154) (79,251) 56% 57% (35,154) (79,251) 56% 57%
TOTAL 239,146 240,251 (0%) 0% 239,146 240,251 (0%) 0%
2013 First 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 March First Quarter
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OPERATING EBITDA 2013 2012 % Var. % Var. * 2013 2012 % Var. % Var. *
Mexico 263,395 296,712 (11%) (13%) 263,395 296,712 (11%) (13%)
U.S.A. 18,856 (24,049) N/A N/A 18,856 (24,049) N/A N/A
Northern Europe (16,616) 55,166 N/A N/A (16,616) 55,166 N/A N/A
Mediterranean 73,378 97,483 (25%) (19%) 73,378 97,483 (25%) (19%)
South, Central America and the Caribbean 187,704 178,459 5% 6% 187,704 178,459 5% 6%
Asia 23,964 12,411 93% 86% 23,964 12,411 93% 86%
Others and intercompany eliminations (29,545) (49,069) 40% 43% (29,545) (49,069) 40% 43%
TOTAL 521,136 567,112 (8%) (8%) 521,136 567,112 (8%) (8%)
OPERATING EBITDA MARGIN
Mexico 33.8% 35.4% 33.8% 35.4%
U.S.A. 2.6% (3.5%) 2.6% (3.5%)
Northern Europe (2.2%) 6.3% (2.2%) 6.3%
Mediterranean 21.1% 25.8% 21.1% 25.8%
South, Central America and the Caribbean 37.8% 34.0% 37.8% 34.0%
Asia 16.8% 9.7% 16.8% 9.7%
TOTAL 15.7% 16.2% 15.7% 16.2%
2013 First Quarter Results Page 12
OPERATING RESULTS
Volume Summary
Consolidated volume summary
Cement and aggregates: Thousands of metric tons. Readymix: Thousands of cubic meters.
January March First Quarter
2013 2012 % Var. 2013 2012 % Var.
1
Consolidated cement volume 14,383 15,621 (8%) 14,383 15,621 (8%)
2
Consolidated ready mix volume 11,812 12,457 (5%) 11,812 12,457 (5%)
2
Consolidated aggregates volume 33,460 33,550 (0%) 33,460 33,550 (0%)
Per country volume summary
January March First Quarter First Quarter 2013 Vs.
DOMESTIC GRAY CEMENT VOLUME 2013 Vs. 2012 2013 Vs. 2012 Fourth Quarter 2012
Mexico (10%) (10%) (8%)
U.S.A. 2% 2% (6%)
Northern Europe (15%) (15%) (34%)
Mediterranean (12%) (12%) (2%)
South, Central America and the Caribbean (9%) (9%) (7%)
Asia 1% 1% 5%
READY MIX VOLUME
Mexico (8%) (8%) (17%)
U.S.A. 8% 8% 0%
Northern Europe (14%) (14%) (28%)
Mediterranean 2% 2% 3%
South, Central America and the Caribbean (9%) (9%) (6%)
Asia (10%) (10%) (14%)
AGGREGATES VOLUME
Mexico 1% 1% (19%)
U.S.A. 15% 15% 1%
Northern Europe (10%) (10%) (32%)
Mediterranean (5%) (5%) (2%)
South, Central America and the Caribbean (8%) (8%) (5%)
Asia 57% 57% 16%
1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.
2013 First Quarter Results Page 13
OPERATING RESULTS
Price Summary
Variation in U.S. Dollars
January March First Quarter First Quarter 2013 Vs.
DOMESTIC GRAY CEMENT PRICE 2013 Vs. 2012 2013 Vs. 2012 Fourth Quarter 2012
Mexico 2% 2% 2%
U.S.A. 5% 5% 2%
Northern Europe (*) (1%) (1%) 3%
Mediterranean (*) (4%) (4%) (1%)
South, Central America and the Caribbean (*) 3% 3% 1%
Asia (*) 16% 16% 2%
READY MIX PRICE
Mexico 2% 2% 2%
U.S.A. 6% 6% 1%
Northern Europe (*) (1%) (1%) 6%
Mediterranean (*) 1% 1% 3%
South, Central America and the Caribbean (*) 6% 6% 5%
Asia (*) 2% 2% 2%
AGGREGATES PRICE
Mexico 3% 3% 5%
U.S.A. (2%) (2%) 1%
Northern Europe (*) (0%) (0%) 9%
Mediterranean (*) 9% 9% 6%
South, Central America and the Caribbean (*) 4% 4% (3%)
Asia (*) 9% 9% 7%
(*) Volume weighted average price.
2013 First Quarter Results Page 14
OPERATING RESULTS
Price Summary
Variation in Local Currency
January March First Quarter First Quarter 2013 Vs.
DOMESTIC GRAY CEMENT PRICE 2013 Vs. 2012 2013 Vs. 2012 Fourth Quarter 2012
Mexico (1%) (1%) (1%)
U.S.A. 5% 5% 2%
Northern Europe (*) 1% 1% 6%
Mediterranean (*) 5% 5% 5%
South, Central America and the Caribbean (*) 5% 5% 1%
Asia (*) 10% 10% 1%
READY MIX PRICE
Mexico 0% 0% (1%)
U.S.A. 6% 6% 1%
Northern Europe (*) 1% 1% 7%
Mediterranean (*) 1% 1% 1%
South, Central America and the Caribbean (*) 7% 7% 6%
Asia (*) 3% 3% 3%
AGGREGATES PRICE
Mexico 0% 0% 2%
U.S.A. (2%) (2%) 1%
Northern Europe (*) 2% 2% 11%
Mediterranean (*) 8% 8% 3%
South, Central America and the Caribbean (*) 5% 5% (3%)
Asia (*) 10% 10% 8%
(*) Volume weighted average price.
2013 First Quarter Results Page 15
OTHER ACTIVITIES
CEMEX’s self construction initiatives benefit more than 2 million people
On April 16, 2013, CEMEX presented its 2012 Sustainable Development Report. Among other highlights, the company reported that its different self construction initiatives, including Patrimonio Hoy, ConstruApoyo, and Productive Centers of Self Employment, benefited more than 2 million people since the programs started. With the world’s population expected to reach the 9 billion milestone by 2050, CEMEX is focused on meeting the needs of this growing population, while protecting the environment and contributing to the design of resource efficient urban environments. CEMEX´s 2012 Sustainable Development Report summarizes its role in “Building the Cities of the Future.” In this latest report, CEMEX shows significant progress in major priority areas such as the company’s carbon strategy, sustainable construction, environmental and biodiversity management, workplace safety, affordable housing and infrastructure initiatives to strengthen communities around the world, and the development of innovative products designed to promote sustainable behavior of its end users. Key highlights include:
•The company launched CEMEX Green Building Services to support clients in the execution of LEED or BREEAM certified projects with an integrated offer that includes bioclimatic architecture and energy efficient engineering.
•CEMEX conceptualized and engineered global products to positively impact job site safety, promote efficient construction practices, sensibly preserve natural resources vital to life, lower carbon footprint, and improve the quality of life in rapidly transforming cities.
• CEMEX introduced a new modular, lightweight building system for affordable vertical housing construction.
• The company facilitated the completion of nearly 3,000 affordable housing projects during 2012.
•CEMEX supported more than 42,900 families in building 407,000 square meters of living space through its Patrimonio Hoy program.
•In 2012, CEMEX transformed agricultural, industrial, and municipal waste into fuel for our cement kilns, achieving a 27% alternative fuel substitution rate. Overall, the company’s total low carbon initiatives resulted in the avoidance of the emission of 7.8 million tons of CO2 into the atmosphere, equivalent to the emissions made by 1.5 million cars.
•CEMEX completed 315 infrastructure projects in 2012, including solutions for sustainable mass transit systems in Latin America, such as Bus Rapid Transit and metro lines.
The report includes an external limited assurance statement by PricewaterhouseCoopers for the seventh consecutive year, as well as a statement from the company’s Sustainability Reporting Advisory Panel.
CEMEX signs research agreement with the Earth Engineering Center, Columbia University and City College of New York
On April 9, 2013, CEMEX announced a collaboration agreement with the Earth Engineering Center (EEC) at Columbia University and City College of
New York in which EEC will conduct a year long study of the life cycle effects of using alternative fuels in cement manufacturing. This study will result in a better understanding of the role that alternative fuels play in society and the environment. Led by Professors Nickolas Themelis and Marco Castaldi, from Columbia University and the City College of New York, respectively, the study will focus on waste combustion technologies implemented in CEMEX kilns in the United States and Mexico. Since 2005, CEMEX has invested more than US$175 million, adjusting its production process and installing equipment to use alternative fuels in its cement kilns. In 2012, CEMEX achieved approximately a 27% alternative fuel substitution rate in its cement production. CEMEX is on track to achieve its target of a 35% alternative fuel substitution rate in cement production by 2015. The substitution of fossil fuels with alternative fuels results in numerous benefits such as the reduction of GHG emissions and use of greenfields for land filling, the displacement of fossil fuels, and lower energy costs.
CEMEX announces pricing of U.S.$600 million in senior secured notes
On March 14, 2013, CEMEX announced the pricing of U.S.$600 million aggregate principal amount of senior secured notes (the “Notes”) denominated in U.S. dollars. The Notes will bear interest at an annual rate of 5.875% and mature in 2019. The Notes were issued at par and are callable commencing on their 3rd anniversary. The closing of the offering occurred on March 25, 2013. CEMEX used approximately U.S.$55 million of the net proceeds from the offering for the repayment in full of the remaining indebtedness under CEMEX’s 2009 Financing Agreement, dated August 14, 2009, as amended, and the remainder for general corporate purposes, including the repayment of other indebtedness. The Notes share in the collateral pledged for the benefit of the lenders under the Facilities Agreement and other secured obligations having the benefit of such collateral, and are guaranteed by CEMEX México, S.A. de C.V., CEMEX Concretos, S.A. de C.V., Empresas Tolteca de México, S.A. de C.V., New Sunward Holding B.V., CEMEX España, S.A., Cemex Asia B.V., CEMEX Corp., Cemex Egyptian Investments B.V., CEMEX France Gestion (S.A.S.), Cemex Research Group AG, Cemex Shipping B.V. and CEMEX UK.
CEMEX announces winners of INTEGRATE Global Suppliers Innovation Program
On March 14, 2013, CEMEX announced the winners of INTEGRATE, the company’s Global Suppliers Innovation Program. Among other attributes, the winning ideas were recognized for their innovation, financial contribution, speed and ease of implementation, and scalability for different countries and operations. The suppliers’ proposed ideas were subjected to a two phase evaluation process: first, scrutiny by 55 Global Procurement executives, Procurement country heads and Corporate Innovation; and second, analysis by 13 experts from different areas throughout CEMEX. CEMEX presented the awards at a ceremony on Thursday, March 14, at CEMEX Corporate Headquarters in Monterrey, Mexico.
CEMEX provides world class solutions for 315 infrastructure projects during 2012
On March 11, 2013, CEMEX announced that, during 2012, it provided building solutions for the completion of 315 infrastructure projects —representing more than 8 million square meters of pavement for highways, mass transit projects, airport runways, and city streets. Through projects such as the Metro Line in Panama, the first metro in Central America, and the Bus Rapid Transit systems in Mexico, CEMEX continues to innovate and provide state of the art solutions for transportation systems that serve as critical connections between residents, their cities, and their world. Concrete, an essential component for infrastructure development, has demonstrated better economic and environmental performance than competing
materials. The Massachusetts Institute of Technology (MIT) has released research findings that will help set a new standard in life cycle assessment modeling for building materials. The studies, which are part of an ongoing research initiative at the MIT Concrete Sustainability Hub (CSHub), quantify the environmental impact and costs of paving and building materials. The MIT CSHub is a research center established at MIT in collaboration with the Portland Cement Association and the Ready Mixed Concrete (RMC) Research and Education Foundation.
2013 First Quarter Results Page 16
OTHER INFORMATION
Change in the Parent Company’s functional currency
Considering the guidance under IFRS set forth by International Accounting Standard 21, The Effects of Changes in Foreign Exchange Rates (“IAS 21”), and based on changing circumstances on the net monetary position in foreign currencies of CEMEX, S.A.B. de C.V. (on a parent company only basis) resulting mainly from: a) a significant decrease in tax liabilities denominated in Mexican Pesos; b) a significant increase in its U.S. Dollar denominated debt and other financial obligations; and c) the expected increase in U.S. Dollar denominated intra group administrative expenses associated with the externalization of major back office activities with IBM; effective as of January 1, 2013, CEMEX, S.A.B. de C.V., for purposes of its parent company only financial statements, was required to prospectively change its functional currency from the Mexican Peso to the U.S. Dollar, as the U.S. Dollar was determined to be the currency of CEMEX, S.A.B. de C.V.‘s primary economic environment. The aforementioned change has no effect on the functional currencies of CEMEX, S.A.B. de C.V.‘s subsidiaries, which continue to be the currency in the primary economic environment in which each subsidiary operates. Moreover, the reporting currency for the consolidated financial statements of CEMEX, S.A.B. de C.V. and its subsidiaries and the parent company only financial statements of CEMEX, S.A.B. de C.V. continues to be the Mexican Peso.
The main effects in CEMEX, S.A.B. de C.V.‘s parent company only financial statements beginning on January 1, 2013, associated with the change in functional currency, as compared to prior years are: a) all transactions, revenues and expenses in any currency are recognized in U.S. Dollars at the exchange rates prevailing at their execution dates; b) monetary balances of CEMEX, S.A.B. de C.V. denominated in U.S. Dollars will not generate foreign currency fluctuations, while monetary balances in Mexican Pesos and other non U.S. Dollar denominated balances will now generate foreign currency fluctuations through CEMEX, S.A.B. de C.V.‘s statement of operations; and c) the conversion option embedded in CEMEX, S.A.B. de C.V.‘s Mandatory Convertible Notes denominated in Mexican Pesos will now be treated as a stand alone derivative instrument through CEMEX, S.A.B. de C.V.‘s statement of operations, while the options embedded in CEMEX, S.A.B. de C.V.‘s U.S. Dollar Denominated 2010 Optional Convertible Subordinated Notes and 2011 Optional
Convertible Subordinated Notes will cease to be treated as stand alone derivatives through CEMEX, S.A.B. de C.V.‘s statement of operations. Prior period financial statements are not required to be restated.
Significant tax proceedings
In connection with the previously publicly disclosed tax proceeding related to the taxes payable in Mexico from passive income generated by foreign investments for the years 2005 and 2006 and the transitory amnesty provision, on January 31, 2013, CEMEX, S.A.B. de C.V. was notified of the agreement reached with the Mexican tax authorities regarding the settlement of such tax proceeding pursuant to a final payment according to the rules of the transitory provision.
Mexican Tax Reform 2010
In November 2009, the Mexican Congress approved amendments to the income tax law that became effective on January 1, 2010. The new law included changes to the tax consolidation regime that require CEMEX to, among other things, determine income taxes as if the tax consolidation provisions in Mexico did not exist from 1999 onward. These changes also required the payment of taxes on dividends between entities of the consolidated tax group (specifically, dividends paid from profits that were not taxed in the past), certain special items in the tax consolidation, as well as tax loss carryforwards generated by entities within the consolidated tax group that should have been recovered by such individual entities over the succeeding 10 years. These amendments increased the statutory income tax rate from 28% to 30% for the years 2010 to 2012, 29% for 2013, and decreased it to 28% for 2014 and future years. Pursuant to these amendments, the parent company was required to pay in 2010 (at the 30% tax rate) 25% of the tax resulting from eliminating the tax consolidation effects from 1999 to 2004, and to pay an additional 25% in 2011. The remaining 50% is required to be paid as follows: 20% in 2012, 15% in 2013, and 15% in 2014. With respect to the consolidation effects originated after 2004, these should be considered during the sixth fiscal year following their origination and are be payable
over the succeeding five years in the same proportions (25%, 25%, 20%, 15%, and 15%), and, in relation to this, the consolidation effect for 2005 has already been notified to CEMEX and considered. Applicable taxes payable as a result of the changes to the tax consolidation regime will be increased by inflation, as
required by the Mexican income tax law. As of December 31, 2009, based on Interpretation 18, the parent company recognized the nominal value of estimated taxes payable in connection with these amendments of approximately US$799 million. This amount was recognized by the parent company as a tax payable on its balance sheet against “Other non current assets” for approximately US$628 million, in connection with the net liability recognized before the new tax law and that the parent company expects to realize in connection with the payment of this tax liability; and approximately US$171 million against “Retained earnings” for the portion, according to the new law, related to: a) the difference between the sum of the equity of the controlled entities for tax purposes and the equity for tax purposes of the consolidated entity; b) dividends from the controlled entities for tax purposes to CEMEX, S.A.B. de C.V.; and c) other transactions between the companies included in the tax consolidation that represented the transfer of resources within the group. In December 2010, pursuant to additional rules, the tax authorities eliminated certain aspects of the law related to the taxable amount for the difference between the sum of the equity of the controlled entities for tax purposes and the equity for tax purposes of the consolidated entity. As a result, the parent company reduced its estimated tax payable by approximately US$235 million against a credit to “Retained earnings.” In 2012, changes in the parent company’s tax payable associated with the tax consolidation in Mexico are as follows (approximate US$ Millions):
2012
Balance at the beginning of the period $966
Income tax received from subsidiaries $179
Restatement for the period $41
Payments during the period ($54)
Balance at the end of the period $1,132
In December 2012, the Federal Revenue Law (Ley Federal de Ingresos) applicable in 2013, established that the statutory income tax rate remained at 30% in 2013, then lowered it to 29% for 2014 and 28% for 2015 and future years.
As of December 31, 2012, the balance of tax loss carryforwards that have not been considered in the tax consolidation was approximately US$625 million. As of December 31, 2012, the estimated payment schedule of taxes payable resulting from these changes in the tax consolidation regime in Mexico were as follows (approximate amounts in millions of US dollars):
2013 $ 157*
2014 $ 200
2015 $ 209
2016 $ 173
2017 $ 176
2018 and thereafter $217
1,132
* This payment was made in March 2013.
2013 First Quarter Results Page 17
DEFINITIONS OF TERMS AND DISCLOSURES
Methodology for translation, consolidation, and presentation of results
Under IFRS, beginning January 1, 2008, CEMEX translates the financial statements of foreign subsidiaries using exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement. CEMEX reports its consolidated results in Mexican pesos.
For the reader’s convenience, beginning June 30, 2008, US dollar amounts for the consolidated entity are calculated by converting the nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter. The exchange rates used to convert results for the first quarter of 2013 and the first quarter of 2012 are 12.61 and 12.91 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 March 31,
2013, and March 31, 2012, can be converted into their original local currency amount by multiplying the US dollar figure by the corresponding average exchange rates for 2013 and 2012, 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
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 1,166.8 million for the first quarter of 2013; 1,166.8 million for year to date 2013; 1,156.2 million for the first quarter of 2012; and 1,156.2 million for year to date 2012.
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 March
First Quarter
2013
2012
2013
2012
Average
Average
Average
Average
Mexican peso
12.61
12.91
12.61
12.91
Euro
0.7589
0.7511
0.7589
0.7511
British pound
0.6502
0.6502
0.6299
Amounts provided in units of local currency per US dollar.
2013 First Quarter Results Page 18
| Exhibit 3
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Exhibit 3
2013 First Quarter Results
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2 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.
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| 3 |
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January – March First Quarter |
l?t?l % l?t?l %
Millions of US dollars 2013 2012 % var 2013 2012 % var var var
Net sales 3,319 3,503 (5%) (5%) 3,319 3,503 (5%) (5%)
Gross profit 909 941 (3%) (3%) 909 941 (3%) (3%)
Operating earnings before
239 240 (0%) 0% 239 240 (0%) 0% other expenses, net
Operating EBITDA 521 567 (8%) (8%) 521 567 (8%) (8%)
Free cash flow after
(483) (287) (68%) (483) (287) (68%) maintenance capex
Adjusting for the favorable effect last year resulting from the change of a pension plan in the Northern Europe region, as well as the fewer working days this quarter, operating EBITDA increased by 9%, while operating EBITDA margin expanded by 1.6pp 1Q13 results highlights
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Consolidated volumes lumes and prices
3M13 vs. 3M12 1Q13 vs. 1Q12 1Q13 vs. 4Q12
Volume (l?t?l1 ) (7%) (7%) (9%)
Domestic gray
Price (USD) 2% 2% 1%
cement
Price (l?t?l1 ) 3% 3% 1%
Volume (l?t?l1 ) (5%) (5%) (14%)
Ready mix Price (USD) 2% 2% 3%
Price (l?t?l1 ) 3% 3% 3%
Volume (l?t?l1 ) (0%) (0%) (17%)
Aggregates Price (USD) (0%) (0%) 4%
Price (l?t?l1 ) 0% 0% 4%
4 Cement and ready-mix, adjusted for the fewer days during the quarter, declined by 4% and 2%, respectively, while adjusted aggregates volumes increased by 3% Volumes during the quarter were affected by adverse weather conditions in some of our markets Consolidated prices for our three core products increased sequentially in local-currency and in U.S. dollar terms Consolidated volumes and prices 1 Like-to-like volumes adjusted for investments/divestments and, in the case of prices, foreign-exchange fluctuations
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1Q13 achievements Seventh consecutive quarter with year-over-year improvement in operating EBITDA, on a comparable basis Sixth consecutive quarter with year-over-year operating EBITDA margin expansion, on a comparable basis Sequential consolidated price increases in our cement, ready-mix, and aggregates products in both, local-currency and U.S. dollar terms Issuance of 5.875% senior secured notes for US$600 million, maturing in 2019 Tender offer for part of our 2014 Eurobonds 28% alternative fuel substitution rate during the first quarter
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First Quarter 2013 Regional Highlights
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Millions of
2013 2012 % var l?t?l % var 1Q13 1Q12 % var l?t?l % var
US dollars
Net Sales 780 838 (7%) (9%) 780 838 (7%) (9%)
Op. EBITDA 263 297 (11%) (13%) 263 297 (11%) (13%)
as % net sales 33.8% 35.4% (1.6pp) 33.8% 35.4% (1.6pp)
2013 vs. 1Q13 vs. 1Q13 vs.
Volume
2012 1Q12 4Q12
Cement (10%) (10%) (8%)
Ready mix (8%) (8%) (17%)
Aggregates 1% 1% (19%)
2013 vs. 1Q13 vs. 1Q13 vs.
Price (LC)
2012 1Q12 4Q12
Cement (1%) (1%) (1%)
Ready mix 0% 0% (1%)
Aggregates 0% 0% 2%
Mexico 7 Adjusting for fewer working days, quarterly cement and ready-mix volumes declined by 5% and 3%, respectively Delay in infrastructure spending and year- over-year reduction in social program spending; pickup in investment expected during rest of year Residential sector affected by delay in government subsidies and uncertainty surrounding new housing policy Significant growth in the industrial-and- commercial sector, exceeding our expectations
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Millions of
2013 2012 % var l % var 1Q13 1Q12 % var % var
US dollars
Net Sales 736 684 8% 8% 736 684 8% 8%
Op. EBITDA 19 (24) N/A N/A 19 (24) N/A N/A
as % net sales 2.6% (3.5%) 6.1pp 2.6% (3.5%) 6.1pp
2013 vs. 1Q13 vs. 1Q13 vs.
Volume
2012 1Q12 4Q12
Cement 2% 2% (6%)
Ready mix 8% 8% 0%
Aggregates 15% 15% 1%
2013 vs. 1Q13 vs. 1Q13 vs.
Price (LC)
2012 1Q12 4Q12
Cement 5% 5% 2%
Ready mix 6% 6% 1%
Aggregates (2%) (2%) 1%
8 Cement volume increased despite unfavorable weather conditions and fewer working days Industrial-and-commercial and residential sectors continued to be the main drivers of demand Fourth consecutive quarter of positive EBITDA generation Quarterly increase in sales and operating EBITDA reflects strong operating leverage Sequential price increases in our three core products United States
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Millions of
2013 2012 % var ltl % var 1Q13 1Q12 % var ltl % var
US dollars
Net Sales 756 873 (13%) (12%) 756 873 (13%) (12%)
Op. EBITDA (17) 55 N/A N/A (17) 55 N/A N/A
as % net sales (2.2%) 6.3% (8.5pp) (2.2%) 6.3% (8.5pp)
2013 vs. 1Q13 vs. 1Q13 vs.
Volume
2012 1Q12 4Q12
Cement (15%) (15%) (34%)
Ready mix (14%) (14%) (28%)
Aggregates (10%) (10%) (32%)
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2013 vs. 1Q13 vs. 1Q13 vs. |
Price (LC) 2012 1Q12 4Q12
Cement 1% 1% 6%
Ready mix 1% 1% 7%
Aggregates 2% 2% 11%
9 Significant improvement in sequential prices in local-currency terms for all our main products despite decline in volumes Adjusting for fewer working days, quarterly regional cement, ready-mix and aggregates volumes declined by 11% , 11% and 7%, respectively; in addition volumes were affected by unfavorable weather conditions Adjusting for the effect from the change of a pension plan in the region last year, operating EBITDA was relatively stable versus 1Q12 The residential sector continued to be the main driver of demand in Germany supported by low mortgage rates and unemployment 1 Volume-weighted, local-currency average prices Northern Europe
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Millions of
2013 2012 % var ltl % var 1Q13 1Q12 % var ltl % var
US dollars
Net Sales 347 377 (8%) (4%) 347 377 (8%) (4%)
Op. EBITDA 73 97 (25%) (19%) 73 97 (25%) (19%)
as % net sales 21.1% 25.8% (4.7pp) 21.1% 25.8% (4.7pp)
2013 vs. 1Q13 vs. 1Q13 vs.
Volume
2012 1Q12 4Q12
Cement (12%) (12%) (2%)
Ready mix 2% 2% 3%
Aggregates (5%) (5%) (2%)
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2013 vs. 1Q13 vs. 1Q13 vs. |
Price (LC)
2012 1Q12 4Q12
Cement 5% 5% 5%
Ready mix 1% 1% 1%
Aggregates 8% 8% 3%
10 Implementation of value-before-volume strategy resulted in sequential price increase in local-currency terms in our three core products Increase in ready-mix volumes from our operations in Israel, Croatia and the UAE offset the decline in Spain and Egypt In Spain, government austerity measures have affected infrastructure spending, while the residential sector continues with high inventory levels 1 Volume-weighted, local-currency average prices Mediterranean
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Millions of
2013 2012 % var ltl % var 1Q13 1Q12 % var ltl % var
US dollars
Net Sales 497 524 (5%) (4%) 497 524 (5%) (4%)
Op. EBITDA 188 178 5% 6% 188 178 5% 6%
as % net sales 37.8% 34.0% 3.8pp 37.8% 34.0% 3.8pp
2013 vs. 1Q13 vs. 1Q13 vs.
Volume
2012 1Q12 4Q12
Cement (9%) (9%) (7%)
Ready mix (9%) (9%) (6%)
Aggregates (8%) (8%) (5%)
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2013 vs. 1Q13 vs. 1Q13 vs. |
Price (LC) 2012 1Q12 4Q12
Cement 5% 5% 1%
Ready mix 7% 7% 6%
Aggregates 5% 5% (3%)
11 1 Volume-weighted, local-currency average prices Significant operating EBITDA growth and operating EBITDA margin expansion, despite lower volumes In Colombia adjusting for fewer working days, quarterly cement volumes declined 10%, reflecting slight loss in market share resulting from our January price increase, delays in the start of some infrastructure projects and lower activity in residential sector In Panama, quarterly cement volumes increased by 8% adjusting for the fewer working days South, Central America and the Caribbean
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Millions of
2013 2012 % var ltl % var 1Q13 1Q12 % var ltl % var
US dollars
Net Sales 142 128 11% 7% 142 128 11% 7%
Op. EBITDA 24 12 93% 86% 24 12 93% 86%
as % net sales 16.8% 9.7% 7.1pp 16.8% 9.7% 7.1pp
2013 vs. 1Q13 vs. 1Q13 vs.
Volume
2012 1Q12 4Q12
Cement 1% 1% 5%
Ready mix (10%) (10%) (14%)
Aggregates 57% 57% 16%
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2013 vs. 1Q13 vs. 1Q13 vs. |
Price (LC) 2012 1Q12 4Q12
Cement 10% 10% 1%
Ready mix 3% 3% 3%
Aggregates 10% 10% 8%
12 1 Volume-weighted, local-currency average prices Increase in operating EBITDA driven by strong prices and higher cement volumes despite fewer working days Increase in domestic cement volumes during the quarter reflects positive performance in the Philippines Sequential regional price increases in our three core products in local-currency terms Demand for building materials in the Philippines positively affected by sustained infrastructure spending as well as a favorable performance from the residential and industrial-and-commercial sectors Asia
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1Q13 Results
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January – March First Quarter
ltl ltl
Millions of US dollars 2013 2012 % var 2013 2012 % var
% var % var
Net sales 3,319 3,503 (5%) (5%) 3,319 3,503 (5%) (5%)
Operating EBITDA 521 567 (8%) (8%) 521 567 (8%) (8%)
as % net sales 15.7% 16.2% (0.5pp) 15.7% 16.2% (0.5pp)
Cost of sales 2,410 2,561 6% 2,410 2,561 6%
as % net sales 72.6% 73.1% 0.5pp 72.6% 73.1% 0.5pp
Operating expenses 669 701 5% 669 701 5%
as % net sales 20.2% 20.0% (0.2pp) 20.2% 20.0% (0.2pp)
14 Our quarterly operating EBITDA, on a like-to-like basis adjusting for the effect of the change in a pension fund and fewer working days, increased by 9 percent Operating EBITDA margin expansion of 1.6pp on an adjusted basis driven by higher prices in some regions, continued cost reduction efforts and a favorable operating-leverage effect in the U.S. Decline in cost of sales as a percentage of net sales mainly due to lower energy costs as well as a reduction in workforce Operating expenses as a percentage of net sales, adjusting for the effect of the change of the pension plan last year, declined by 1.8pp, reflecting savings from our cost reduction initiatives and lower distribution expenses Operating EBITDA, cost of sales and SG&A
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January – March First Quarter
Millions of US dollars 2013 2012 % var 2013 2012 % var
Operating EBITDA 521 567 (8%) 521 567 (8%)
Net Financial Expense 357 334 357 334
Maintenance Capex 48 49 48 49
Change in Working Cap 332 301 332 301
Taxes Paid 276 177 276 177
Other Cash Items (net) (9) (6) (9) (6)
Free Cash Flow after Maint.Capex (483) (287) (68%) (483) (287) (68%)
Strategic Capex 27 14 27 14
Free Cash Flow (510) (302) (69%) (510) (302) (69%)
15 Free cash flow
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16 Foreign-exchange loss of US$118 million resulting from the fluctuation of the euro and Mexican peso; this loss is non-cash Gain on financial instruments of US$123 million related mainly to CEMEX shares Other income statement items
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First Quarter 2013 Debt Information
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18 Issuance of US$600 million of 5.875%, senior secured notes maturing in 2019 Tender offer for part of our 2014 Eurobonds Successfully exchanged 43% of then outstanding bonds Current outstanding bond is slightly below US$300 million Debt-related information
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Consolidated debt maturity profile
Total debt excluding perpetual notes1 as of March 31, 2013
US$ 16,528 million
New Facilities Agreement
Millions of
US dollars Other bank / WC debt / Certificados
Bursátiles
6,000 Fixed Income
Convertible Subordinated Notes2
5,000 4,801
4,000
2,882
3,000 2,618 2,691
2,000
1,447 1,545
1,000
391
154
0
2013 2014 2015 2016 2017 2018 2019 ?2020
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CEMEX has perpetual debentures totaling US$471 million |
2Convertible Subordinated Notes include only the debt component of US$2,081 million. Total notional amount is about US$2,383 million 19
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Appendix
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First Quarter Fourth Quarter
Millions of US dollars 2013 2012 % Var. 2012
Total debt1 16,528 17,676 (6%) 16,171
Shortterm 3% 2% 1%
Longterm 97% 98% 99%
Perpetual notes 471 490 (4%) 473
Cash and cash equivalents 817 1,008 (19%) 971
Net debt plus perpetual notes 16,182 17,158 (6%) 15,674
Consolidated Funded Debt2 / EBITDA3 5.58 5.44
Interest coverage3 4 2.06 2.10
21 1 Includes convertible notes and capital leases, in accordance with IFRS 2 Consolidated Funded Debt as of March 31, 2013 was US$14,319 million, in accordance with our contractual obligations under the Facilities Agreement 3 EBITDA calculated in accordance with IFRS 4 Interest expense in accordance with our contractual obligations under the Facilities Agreement (CHART) Interest rate Fixed 67% Variable 33% (CHART) Currency denomination U.S. dollar 85% Euro 13% Mexican peso 2% Additional information on debt and perpetual notes
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22 1Q13 volume and price summary: Selected countries
Domestic gray cement Ready mix Aggregates
1Q13 vs. 1Q12 1Q13 vs. 1Q12 1Q13 vs. 1Q12
Prices Prices Prices Prices Prices Prices
Volumes Volumes Volumes
(USD) (LC) (USD) (LC) (USD) (LC)
Mexico (10%) 2% (1%) (8%) 2% 0% 1% 3% 0%
U.S. 2% 5% 5% 8% 6% 6% 15% (2%) (2%)
Spain (33%) 1% 2% (32%) (12%) (11%) (49%) (4%) (3%)
UK (1%) (6%) (3%) (3%) (2%) 2% (8%) (4%) (0%)
France N/A N/A N/A (20%) 2% 4% (2%) 0% 2%
Germany (14%) (1%) 0% (15%) 0% 2% (17%) (1%) 1%
Poland (36%) (6%) (5%) (19%) (6%) (5%) (38%) (18%) (17%)
Colombia (15%) 9% 10% 2% 10% 11% (6%) 0% 1%
Panama (1%) (1%) (1%) (16%) 5% 5% (6%) 13% 13%
Costa Rica (8%) 15% 13% (19%) 14% 12% (9%) (9%) (11%)
Egypt (3%) (4%) 8% (11%) (2%) 10% (23%) 7% 20%
Philippines 4% 15% 10% N/A N/A N/A N/A N/A N/A
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23 3M13 / 3M12: results for the three months of the years 2013 and 2012, 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. Definitions
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24 Stock Information NYSE (ADS): CXMexican Stock Exchange: CEMEXCPORatio of CEMEXCPO to CX:10 to 1 Investor Relations In the United States +1 877 7CX NYSEIn Mexico +52 81 8888 4292ir@cemex.com Calendar of Events Calendar of Events July 25, 2013 Second quarter 2013 financial results conference call October 24, 2013 Third quarter 2013 financial results conference call Contact information