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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 July, 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):
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Contents
| 1. | Press release, dated July 25, 2013, announcing second quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 2. | Second quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 3. | Presentation regarding second 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: |
July 25, 2013 | By: | /s/ Rafael Garza |
|||||
| Name: Rafael Garza | ||||||||
| Title: Chief Comptroller |
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. |
Press release, dated July 25, 2013, announcing second quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. |
Second quarter 2013 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. |
Presentation regarding second 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 SECOND-QUARTER
2013 RESULTS
MONTERREY, MEXICO, JULY 25, 2013 – CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX), announced today that consolidated net sales reached US$4.0 billion during the second quarter of 2013, an increase of 4% versus the comparable period in 2012. Operating EBITDA increased by 4% during the quarter to US$730 million versus the same period in 2012. Adjusting for the higher number of business days in our operations during the quarter, consolidated net sales improved by 2% and operating EBITDA increased 2% versus the same period last year.
CEMEX’s Consolidated Second-Quarter 2013 Financial and Operational Highlights
| • | The increase in consolidated net sales was due mainly to higher prices of our products in local currency terms and higher volumes in most of our regions. |
| • | Operating earnings before other expenses, net, during the second quarter increased by 24%, to US$451 million. |
| • | Operating EBITDA grew during the quarter by 4% and, adjusting for the higher number of business days in our operations during the quarter, increased by 2%. |
| • | Operating EBITDA margin during the quarter reached 18.2%, remaining flat on a year-over-year basis. |
| • | Free cash flow after maintenance capital expenditures for the quarter was negative US$86 million, compared with US$21 million during the same quarter of 2012. |
Fernando A. González, Executive Vice President of Finance and Administration, said: “We are pleased to report that this is the eighth consecutive quarter with year-over-year improvement in EBITDA. We also saw an increase in our consolidated prices in local-currency terms for cement, ready mix and aggregates during the quarter. On the cost side, our alternative fuel substitution initiatives remain a very high priority. On a consolidated basis, our alternative fuel utilization reached 28% during the quarter. In addition, we are implementing targeted cost-reduction initiatives in Mexico and Northern Europe which we expect will result in savings of about US$100 million during the second half of 2013.”
Consolidated Corporate Results
During the second quarter of 2013, controlling interest net income was a loss of US$152 million, an improvement over a loss of US$187 million during the same period last year.
Total debt plus perpetual notes decreased by US$51 million during the quarter.
Geographical Markets Second-Quarter 2013 Highlights
Net sales in our operations in Mexico increased 2% in the second quarter of 2013 to US$847 million, compared with US$833 million in the second quarter of 2012. Operating EBITDA decreased 17% to US$250 million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of US$868 million in the second quarter of 2013, up 9% from the same period in 2012. Operating EBITDA increased to US$80 million in the quarter, versus US$27 million in the same quarter of 2012.
In Northern Europe, net sales for the second quarter of 2013 decreased 1% to US$1,088 million, compared with US$1,100 million in the second quarter of 2012. Operating EBITDA was US$108 million for the quarter, 11% lower than the same period last year.
Second-quarter net sales in the Mediterranean region were US$400 million, 4% higher compared with US$384 million during the second quarter of 2012. Operating EBITDA decreased 2% to US$94 million for the quarter versus the comparable period in 2012.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$561 million during the second quarter of 2013, representing an increase of 6% over the same period of 2012. Operating EBITDA increased 12% to US$211 million in the second quarter of 2013, from US$189 million in the second quarter of 2012.
Operations in Asia reported a 14% increase in net sales for the second quarter of 2013, to US$162 million, versus the second quarter of 2012, and operating EBITDA for the quarter was US$38 million, up 29% from the same period last year.
CEMEX is a global building materials company that provides high-quality products and reliable services to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
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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
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2013
SECOND 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
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OPERATING AND FINANCIAL HIGHLIGHTS
January June Second Quarter
l t l l t l
2013 2012% Var.% Var.* 2013 2012% Var.% Var.*
Consolidated cement volume (thousand
31,677 32,932 (4%) 17,293 17,310 (0%)
of metric tons)
Consolidated ready mix volume
26,282 26,687 (2%) 14,470 14,231 2%
(thousand of cubic meters)
Consolidated aggregates volume
76,203 74,796 2% 42,743 41,246 4%
(thousand of metric tons)
Net sales 7,322 7,373 (1%)(1%) 4,006 3,861 4% 3%
Gross profit 2,189 2,107 4% 3% 1,280 1,160 10% 9%
Gross profit margin 29.9% 28.6% 1.3pp 32.0% 30.0% 2.0pp
Operating earnings before other
690 607 14% 15% 451 363 24% 24%
expenses, net
Operating earnings before other
9.4% 8.2% 1.2pp 11.3% 9.4% 1.9pp
expenses, net margin
Consolidated net income (loss) (388)(214)(81%)(123)(180) 32%
Controlling interest net income (loss) (433)(221)(96%)(152)(187) 19%
Operating EBITDA 1,251 1,273 (2%)(1%) 730 702 4% 4%
Operating EBITDA margin 17.1% 17.3%(0.2pp) 18.2% 18.2% 0.0pp
Free cash flow after maintenance capital
(568)(258)(120%)(86) 21 N/A
expenditures
Free cash flow (603)(318)(90%)(94)(24)(293%)
Net debt plus perpetual notes 16,201 17,012 (5%) 16,201 17,012 (5%)
Total debt 16,476 17,167 (4%) 16,476 17,167 (4%)
Total debt plus perpetual notes 16,948 17,637 (4%) 16,948 17,637 (4%)
Earnings (loss) per ADS (0.36)(0.18)(98%)(0.13) (0.16) 20%
Fully diluted earnings per ADS (0.36)(0.18)(98%)(0.13) (0.16) 20%
Average ADSs outstanding 1,167.8 1,157.0 1% 1,168.9 1,157.9 1%
Employees 42,883 45,022 (5%) 42,883 45,022 (5%)
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 in the second quarter of 2013 increased to US$4.0 billion, representing an increase of 4% compared with the second quarter of 2012. Adjusting for the higher number of business days in our operations during the quarter, the increase in net sales was 2%. The increase in consolidated net sales was due to higher prices of our products in local currency terms in most of our regions, as well as higher volumes in the U.S., and our Mediterranean, South, Central America and the Caribbean and Asia regions.
Cost of sales as a percentage of net sales decreased by 2.0pp during the second quarter of 2013 compared to the same period last year. The decrease includes a reduction in workforce related to our cost reduction initiatives and lower electricity costs. Operating expenses as a percentage of net sales remained practically flat during the second quarter of 2013 compared with the same period last year.
Operating EBITDA increased by 4% to US$730 million during the second quarter of 2013 compared with the same period last year. Adjusting for the higher number of business days in our operations during the quarter, operating EBITDA increased by 2%. The increase was mainly due to higher contributions from the U.S., and the South, Central America and the Caribbean, and Asia regions. Operating EBITDA margin was 18.2%, remaining flat versus the second quarter of 2012.
Other expenses, net, for the quarter were US$106 million, which mainly included impairment of fixed assets, severance payments, and a loss in sales of fixed assets.
Gain (loss) on financial instruments for the quarter was a loss of US$52 million, resulting mainly from derivatives related to CEMEX shares.
Exchange gain (loss), net for the quarter was a gain of US$102 million, resulting mainly from the fluctuations of the euro and the Mexican peso versus the U.S. dollar.
Controlling interest net income (loss) was a loss of US$152 million in the second quarter of 2013 versus a loss of US$187 million in the same quarter of 2012. The smaller quarterly loss primarily reflects higher operating earnings before other expenses, net and the positive effect in foreign exchange fluctuations partially offset by a negative effect in other expenses, net, higher income taxes and a loss in financial instruments.
Total debt plus perpetual notes decreased by US$51 million during the quarter.
2013 Second Quarter Results Page 2
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OPERATING RESULTS
Mexico
January June Second Quarter
l t l % l t l %
2013 2012% Var. 2013 2012% Var.
Var.* Var.*
Net sales 1,627 1,670 (3%)(7%) 847 833 2% (5%)
Operating EBITDA 514 597 (14%)(18%) 250 300 (17%) (22%)
Operating EBITDA margin 31.6% 35.7%(4.1pp) 29.6% 36.0%(6.4pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January June Second Quarter January June Second Quarter January June Second Quarter
variation
Volume (8%) (7%)(6%)(3%) 4% 7%
Price (USD) 3% 5% 5% 8% 5% 8%
Price (local currency) (2%) (2%) 0% 0% 0% 1%
In our Mexican operations, domestic gray cement volumes decreased by 7% during the quarter versus the same period last year, while ready mix volumes declined by 3% during the same period. During the first six months of the year, domestic gray cement volumes decreased by 8% while ready mix volumes declined by 6% versus the comparable period a year ago. Our volumes during the quarter were negatively impacted by the low levels of infrastructure spending reflecting the transition process of the new government and by the reduction in sales of bagged cement to social programs. Uncertainty surrounding the new national housing program and tight credit conditions affected the performance of the formal residential sector. The industrial and commercial sector continued showing positive performance during the same period.
United States
January June Second Quarter
l t l % l t l %
2013 2012% Var. 2013 2012% Var.
Var.* Var.*
Net sales 1,604 1,480 8% 8% 868 795 9% 9%
Operating EBITDA 99 3 3724% 3724% 80 27 201% 201%
Operating EBITDA margin 6.2% 0.2% 6.0pp 9.2% 3.3% 5.9pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January June Second Quarter January June Second Quarter January June Second Quarter
variation
Volume 3% 3% 11% 14% 12% 8%
Price (USD) 4% 4% 6% 5% 1% 3%
Price (local currency) 4% 4% 6% 5% 1% 3%
Domestic gray cement, ready mix, and aggregates volumes for our operations in the United States increased by 3%, 14%, and 8%, respectively, during the second quarter of 2013 versus the same period last year. During the first six months of the year and on a year over year basis, domestic gray cement, ready mix, and aggregates increased by 3%, 11% and 12%, respectively.
Sales volumes for the quarter reflect improved demand in most of our markets in spite of worse weather conditions. The residential sector continued to be the main driver of demand during the quarter and sustained by strong fundamentals such as record high affordability, low interest rates, improved credit availability and low levels of inventories. The industrial and commercial sector also contributed favorably to demand growth.
2013 Second Quarter Results Page 3
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OPERATING RESULTS
Northern Europe
January June Second Quarter
l t l % l t l %
2013 2012% Var. 2013 2012% Var.
Var.* Var.*
Net sales 1,846 1,978 (7%)(6%) 1,088 1,100 (1%) (2%)
Operating EBITDA 92 180 (49%)(49%) 108 122 (11%) (12%)
Operating EBITDA margin 5.0% 9.1%(4.1pp) 9.9% 11.1%(1.2pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January June Second Quarter January June Second Quarter January June Second Quarter
variation
Volume (8%) (4%)(8%)(4%)(4%) 1%
Price (USD) (1%) 0% 1% 3% 1% 2%
Price (local currency) (0%) (0%) 2% 2% 2% 2%
Our domestic gray cement volumes in the Northern Europe region decreased by 4% during the second quarter of 2013 and decreased by 8% during the first six months of the year versus the comparable period in 2012.
In the United Kingdom, domestic gray cement, ready mix, and aggregates volumes increased, on a year over year basis, by 9%, 6%, and 2%, respectively, during the second quarter of 2013. For the first six months of the year our domestic gray cement volumes increased by 4%, ready mix volumes increased by 1% and our aggregates volumes decreased by 3%, versus the comparable period in the previous year. Cement volumes during the quarter were driven by growth in the residential sector and, to a lesser extent, to a catch up effect from the adverse weather conditions during the first quarter. Government policies to promote home ownership, including guarantees and interest free loans as well as low interest rates for home acquisition positively impacted the residential sector.
In our operations in France, domestic ready mix volumes decreased by 6% and our aggregates volumes increased by 2% during the second quarter of 2013 versus the comparable period last year. During the first six months of the year, ready mix volumes decreased by 13% and aggregates volumes remained flat, on a year over year basis. Infrastructure activity continues to be supported by a number of ongoing highway and high speed railway projects that started during 2012. The year over year activity in the residential sector was affected by the reduction of government housing incentives and a less attractive buy to let program.
In Germany, our domestic gray cement volumes increased by 3% during the second quarter and decreased by 3% during the first six months of the year on a year over year basis. The increase in our cement volumes during the quarter was partially offset by unfavorable weather conditions including floods in East Germany and Bavaria. Low unemployment and mortgage rates, as well as the increase in wages and salaries benefited residential activity, which was the main driver of demand for our products.
Domestic gray cement volumes of our operations in Poland declined by 23% during the quarter and decreased by 28% during the first six months of the year versus the comparable periods in 2012. Construction activity during the quarter was affected by continued adverse weather conditions, especially in our markets. There was lower activity in the infrastructure sector on a year over year basis. In addition, the second quarter of 2012 is a high base of comparison due to the activity related to the Euro 2012 Championship.
2013 Second Quarter Results Page 4
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OPERATING RESULTS
Mediterranean
January June Second Quarter
l t l % l t l %
2013 2012% Var. 2013 2012% Var.
Var.* Var.*
Net sales 747 761 (2%) 1% 400 384 4% 7%
Operating EBITDA 168 193 (13%)(7%) 94 96 (2%) 4%
Operating EBITDA margin 22.5% 25.4%(2.9pp) 23.5% 25.0%(1.5pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January June Second Quarter January June Second Quarter January June Second Quarter
variation
Volume (4%) 5% 5% 8%(2%) 1%
Price (USD) (3%) (2%) 4% 6% 8% 7%
Price (local currency) 6% 7% 2% 2% 5% 2%
Our domestic gray cement volumes in the Mediterranean region increased by 5% during the second quarter and decreased by 4% during the first six months of the year versus the same periods in 2012.
Domestic gray cement volumes for our operations in Spain decreased by 31% and our ready mix volumes declined by 36% on a year over year basis during the quarter. For the first six months of the year, domestic gray cement volumes decreased by 32%, while ready mix volumes declined by 34% compared with the same period in 2012. The decrease in volumes for building materials during the uarter reflects the adverse economic situation in the country. The continued fiscal austerity measures and spending cuts kept infrastructure activity at very low levels. In the residential sector, there has been a gradual reduction in home inventories.
In Egypt, our domestic gray cement volumes increased by 18% during the second quarter of 2013 and increased by 7% during the first six months of the year on a year over year basis driven mainly by the informal residential sector and supported by our alternative fuel strategy in the country.
South, Central America and the Caribbean
January June Second Quarter
l t l % l t l %
2013 2012% Var. 2013 2012% Var.
Var.* Var.*
Net sales 1,059 1,054 1% 3% 561 529 6% 10%
Operating EBITDA 399 367 9% 11% 211 189 12% 15%
Operating EBITDA margin 37.7% 34.9% 2.8pp 37.6% 35.7% 1.9pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January June Second Quarter January June Second Quarter January June Second Quarter
variation
Volume (1%) 7%(5%)(1%)(1%) 6%
Price (USD) 1% (0%) 5% 5% 1% (1%)
Price (local currency) 4% 3% 8% 9% 4% 3%
Our domestic gray cement volumes in the region increased by 7% during the second quarter of 2013 and decreased by 1% during the first six months of the year versus the comparable periods last year.
Domestic gray cement, ready mix, and aggregates volumes for our operations in Colombia increased by 3%, 8%, and 3%, respectively, during the second quarter versus the comparable period of last year. For the first six months of the year, our cement and aggregates volumes declined by 6% and by 1%, respectively, while our ready mix volumes increased by 5% compared with the same period in 2012. During the quarter the residential sector was an important driver of demand for our products, mainly supported by the construction of the 100 thousand free home program announced by the government. The industrial and commercial sector continued its favorable performance primarily in terms of warehouses and office buildings on the back of Colombia’s recently signed trade agreements.
2013 Second Quarter Results Page 5
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OPERATING RESULTS
Asia
January June Second Quarter
l t l % l t l %
2013 2012% Var. 2013 2012% Var.
Var.* Var.*
Net sales 305 270 13% 10% 162 142 14% 13%
Operating EBITDA 62 42 49% 45% 38 30 29% 27%
Operating EBITDA margin 20.5% 15.6% 4.9pp 23.5% 20.9% 2.6pp
In millions of US dollars, except percentages.
Domestic gray cement Ready mix Aggregates
Year over year percentage January June Second Quarter January June Second Quarter January June Second Quarter
variation
Volume 4% 6%(1%) 8% 33% 20%
Price (USD) 12% 9% 3% 5% 14% 17%
Price (local currency) 9% 7% 3% 4% 13% 16%
Our domestic gray cement volumes in the region increased by 6% during the second quarter and increased by 4% during the first six months of 2013 on a year over year basis.
In the Philippines, our domestic gray cement volumes increased by 10% during the second quarter of 2013 and increased by 7% during the first six months of 2013 versus the comparable periods of last year.
The residential sector was the main driver of demand during the quarter supported by the increased activity from foreign buyers and favorable conditions, such as stable level of inflation and low mortgage rates, as well as healthy remittances inflows. The infrastructure and industrial and commercial sectors continue with their positive trend during the same period.
2013 Second Quarter Results Page 6
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OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION
Operating EBITDA and free cash flow
January June Second Quarter
2013 2012% Var 2013 2012% Var
Operating earnings before other expenses, net 690 612 13% 451 368 23%
+ Depreciation and operating amortization 561 661 279 334
Operating EBITDA 1,251 1,274 (2%) 730 702 4%
Net financial expense 719 681 362 347
Maintenance capital expenditures 149 124 101 74
Change in working capital 538 462 207 164
Taxes paid 408 250 133 76
Other cash items (net) 5 15 14 21
Free cash flow after maintenance capital expenditures (568)(258)(120%) (86) 21 N/A
Strategic capital expenditures 35 60 8 45
Free cash flow (603)(318)(90%) (94) (24)(293%)
In millions of US dollars, except percentages.
During the quarter, the decrease in the cash balance and the proceeds from our securitization programs were used mainly to meet the negative free cash flow, to reduce debt and to pay coupons on the perpetual notes.
Our debt during the quarter reflects a negative foreign exchage conversion effect of US$13 million.
Information on debt and perpetual notes
First Second
Second Quarter Quarter Quarter
2013 2012% Var 2013 2013 2012
Total debt (1) 16,476 17,167 (4%) 16,528 Currency denomination
Short term 3% 1% 3% US dollar 85% 82%
Long term 97% 99% 97% Euro 13% 16%
Perpetual notes 472 470 0% 471 Mexican peso 2% 2%
Cash and cash equivalents 746 625 19% 817 Other 0% 0%
Net debt plus perpetual notes 16,201 17,012 (5%) 16,182
Interest rate
Consolidated funded debt (2)/EBITDA (3) Fixed 70% 56%
5.54 5.58
Variable 30% 44%
Interest coverage (3) (4) 2.06 2.06
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 June 30, 2013 was US$14,355 million, in accordance wiith 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 Second Quarter Results Page 7
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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 10,919,024,229
CPOs issued due to recapitalization of retained earnings 437,460,110
Less increase (decrease) in the number of CPOs held in subsidiaries 330,673
Stock based compensation 11,335,495
End of quarter CPO equivalent units outstanding 11,367,489,161
CEMEX has Outstanding units equal total outstanding mand CPOs issued by CEM atory convertible notes which, upon EX less CPOs held in subsidiaries. conversion, will in crease the number of CPOs outstanding by approximately 202 million, subject to antidilution adjustments.
Employee long term compensation plans
As of June 30, 2013, executives had outstanding options on a total of 7,184,839 CPOs, with a weighted average strike price of approximately US$1.46 per CPO (equivalent to US$14.57 per ADS). Starting in 2005, CEMEX began offering executives a restricted stock ownership program. As of June 30, 2013, our executives held 33,489,364 restricted CPOs, representing 0.3% of our total CPOs outstanding as of such date.
Derivative instruments
The following table shows the notional amount for each type of derivative instrument and the aggregate fair market value for all of CEMEX’s derivative instruments as of the last day of each quarter presented.
Second Quarter First Quarter
2013 2012 2013
Notional amount of equity related derivatives (1) 2,410 2,774 2,426
Estimated aggregate fair market value (1) (2) (3) 320 (11) 375
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 June 30, 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$357 million, including a liability of US$33 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 June 30, 2013, the notional amount of this derivative was US$177 million, with a positive fair market value of approximately US$37 million.
(2) Net of cash collateral deposited under open positions. Cash collateral was US$10 million as of June 30, 2013.
(3) As required by IFRS, the estimated aggregate fair market value as of June 30, 2013 includes a liability of US$33 million relating to an embedded derivative in CEMEX’s Mandatory Convertible Notes while the estimated aggregate fair market value as of June 30, 2012 includes a liability of US$142 million, 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 Second Quarter Results Page 8
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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 June Second Quarter
like to like like to li e
INCOME STATEMENT 2013 2012% Var. % Var.* 2013 2012 % Var. % Var.*
Net sales 7,322,113 7,373,122(1%) (1%) 4,005,579 3,861,364 4% 3%
Cost of sales (5,133,572)(5,265,975) 3% (2,725,212) (2,701,135)(1%)
Gross profit 2,188,541 2,107,147 4% 3% 1,280,367 1,160,229 10% 9%
Operating expenses (1,498,359)(1,500,621) 0% (829,310) (797,107)(4%)
Operating earnings before other expenses, net 690,181 606,526 14% 15% 451,057 363,122 24% 24%
Other expenses, net (125,137)(27,764)(351%) (105,533) (10,611)(895%)
Operating earnings 565,045 578,761(2%) 345,521 352,510(2%)
Financial expense (731,339)(694,734)(5%) (363,060) (351,493)(3%)
Other financial income (expense), net 44,805 33,187 35% 41,870 (138,581) N/A
Financial income 16,479 23,798(31%) 8,575 9,614(11%)
Results from financial instruments, net 71,378 12,135 488% (51,530) (15,883)(224%)
Foreign exchange results (16,254) 24,567 N/A 101,536 (118,139) N/A
Effects of net present value on assets and liabilities and
others, net (26,797)(27,313) 2% (16,711) (14,172) (18%)
Equity in gain (loss) of associates 2,567 12,021(79%) 7,346 12,812 (43%)
Income (loss) before income tax (118,923)(70,765)(68%) 31,677 (124,752) N/A
Income tax (269,063)(143,128)(88%) (154,624) (55,351)(179%)
Consolidated net income (loss) (387,986)(213,893)(81%) (122,946) (180,103) 32%
Non controlling interest net income (loss) 44,687 6,809 556% 29,390 6,854 329%
Controlling interest net income (loss) (432,673)(220,702)(96%) (152,337) (186,957) 19%
Operating EBITDA 1,251,236 1,272,793(2%) (1%) 730,347 702,215 4% 4%
Earnings (loss) per ADS (0.36)(0.18)(98%) (0.13) (0.16) 20%
As of June 30
BALANCE SHEET 2013 2012% Var.
Total assets 36,583,446 38,397,127(5%)
Cash and cash equivalents 746,281 625,081 19%
Trade receivables less allowance for doubtful accounts 2,178,453 2,169,761 0%
Other accounts receivable 492,416 466,507 6%
Inventories, net 1,250,166 1,304,872(4%)
Other current assets 400,579 364,590 10%
Current assets 5,067,896 4,930,810 3%
Property, machinery and equipment, net 15,710,860 16,586,924(5%)
Other assets 15,804,691 16,879,393(6%)
Total liabilities 24,735,001 26,446,783(6%)
Current liabilities 4,425,033 4,015,209 10%
Long term liabilities 13,816,289 14,850,640(7%)
Other liabilities 6,493,679 7,580,934(14%)
Total stockholders’ equity 11,848,445 11,950,344(1%)
Non controlling interest and perpetual instruments 1,086,848 698,499 56%
Total controlling interest 10,761,598 11,251,845(4%)
2013 Second Quarter Results Page 9
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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 June Second Quarter
INCOME STATEMENT 2013 2012% Var. 2013 2012 % Var.
Net sales 92,478,288 97,693,863(5%) 50,630,523 52,475,938(4%)
Cost of sales (64,837,020)(69,774,167) 7% (34,446,683) (36,708,422) 6%
Gross profit 27,641,268 27,919,697(1%) 16,183,840 15,767,515 3%
Operating expenses (18,924,277)(19,883,232) 5% (10,482,480) (10,832,690) 3%
Operating earnings before other expenses, net 8,716,990 8,036,465 8% 5,701,360 4,934,825 16%
Other expenses, net (1,580,479)(367,879)(330%) (1,333,943) (144,208)(825%)
Operating earnings 7,136,513 7,668,586(7%) 4,367,380 4,790,617(9%)
Financial expense (9,236,818)(9,205,228)(0%) (4,589,074) (4,776,790) 4%
Other financial income (expense), net 565,885 439,725 29% 529,239 (1,883,319) N/A
Financial income 208,124 315,320(34%) 108,389 130,648(17%)
Results from financial instruments, net 901,507 160,789 461% (651,337) (215,852)(202%)
Foreign exchange results (205,293) 325,510 N/A 1,283,409 (1,605,513) N/A
Effects of net present value on assets and liabilities and
others, net (338,452)(361,894) 6% (211,222) (192,601)(10%)
Equity in gain (loss) of associates 32,426 159,274(80%) 92,858 174,119(47%)
Income (loss) before income tax (1,501,994)(937,643)(60%) 400,403 (1,695,373) N/A
Income tax (3,398,271)(1,896,446)(79%) (1,954,446) (752,222)(160%)
Consolidated net income (loss) (4,900,265)(2,834,089)(73%) (1,554,044) (2,447,595) 37%
Non controlling interest net income (loss) 564,400 90,213 526% 371,492 93,151 299%
Controlling interest net income (loss) (5,464,665)(2,924,302)(87%) (1,925,536) (2,540,746) 24%
Operating EBITDA 15,803,114 16,864,512(6%) 9,231,592 9,543,096(3%)
Earnings (loss) per ADS (4.60) (2.44)(89%) (1.61) (2.15) 25%
As of June 30
BALANCE SHEET 2013 2012% Var.
Total assets 474,121,463 512,985,619(8%)
Cash and cash equivalents 9,671,798 8,351,076 16%
Trade receivables less allowance for doubtful accounts 28,232,752 28,988,005(3%)
Other accounts receivable 6,381,717 6,232,528 2%
Inventories, net 16,202,151 17,433,089(7%)
Other current assets 5,191,508 4,870,920 7%
Current assets 65,679,926 65,875,618(0%)
Property, machinery and equipment, net 203,612,741 221,601,308(8%)
Other assets 204,828,795 225,508,692(9%)
Total liabilities 320,565,612 353,329,019(9%)
Current liabilities 57,348,426 53,643,197 7%
Long term liabilities 178,948,315 198,404,547(10%)
Other liabilities 84,268,871 101,281,275(17%)
Total stockholders’ equity 153,555,851 159,656,600(4%)
Non controlling interest and perpetual instruments 14,085,547 9,331,948 51%
Total controlling interest 139,470,304 150,324,652(7%)
2013 Second Quarter Results Page 10
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OPERATING RESULTS
Operating Summary per Country
In thousands of U.S. dollars
January June Second Quarter
like to like like to l ke
NET SALES 2013 2012% Var. % Var. * 2013 2012 % Var. % Var. *
Mexico 1,626,674 1,670,216(3%) (7%) 847,311 832,651 2% (5%)
U.S.A. 1,604,274 1,479,641 8% 8% 868,288 795,331 9% 9%
Northern Europe 1,845,848 1,978,007(7%) (6%) 1,088,199 1,099,956(1%) (2%)
Mediterranean 747,422 761,397(2%) 1% 399,992 383,902 4% 7%
South, Central America and the Caribbean 1,059,271 1,053,552 1% 3% 561,489 529,178 6% 10%
Asia 304,956 270,139 13% 10% 162,398 141,906 14% 13%
Others and intercompany eliminations 133,669 160,169(17%) (17%) 77,902 78,441(1%) (1%)
TOTAL 7,322,113 7,373,122(1%) (1%) 4,005,579 3,861,364 4% 3%
GROSS PROFIT
Mexico 763,274 821,414(7%) (11%) 395,134 413,281(4%) (11%)
U.S.A. 189,040 76,389 147% 147% 131,366 53,561 145% 145%
Northern Europe 396,575 442,200(10%) (9%) 279,383 301,655(7%) (8%)
Mediterranean 265,726 249,080 7% 12% 172,450 125,823 37% 42%
South, Central America and the Caribbean 495,313 497,939(1%) 2% 251,520 242,798 4% 7%
Asia 80,520 60,162 34% 30% 48,612 39,021 25% 23%
Others and intercompany eliminations (1,908) (40,038) 95% 95% 1,901 (15,910) N/A N/A
TOTAL 2,188,541 2,107,147 4% 3% 1,280,367 1,160,229 10% 9%
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET
Mexico 416,082 496,651(16%) (20%) 201,575 252,678(20%) (26%)
U.S.A. (133,087) (254,862) 48% 48% (32,009) (106,906) 70% 70%
Northern Europe (15,429) 55,476 N/A N/A 50,971 60,083(15%) (17%)
Mediterranean 112,907 134,148(16%) (9%) 67,199 66,267 1% 8%
South, Central America and the Caribbean 356,725 325,769 10% 12% 189,757 168,036 13% 17%
Asia 46,297 28,007 65% 61% 30,252 22,811 33% 31%
Others and intercompany eliminations (93,314) (178,664) 48% 51% (56,687) (99,846) 43% 48%
TOTAL 690,181 606,526 14% 15% 451,057 363,122 24% 24%
2013 Second Quarter Results Page 11
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OPERATING RESULTS
Operating Summary per Country
EBITDA in thousands of U.S. dollars. EBITDA margin as a percentage of net sales.
January June Second Quarter
like to like like to l ke
OPERATING EBITDA 2013 2012% Var. % Var. * 2013 2012 % Var. % Var. *
Mexico 513,667 596,910(14%) (18%) 250,466 300,124(17%) (22%)
U.S.A. 99,028 2,590 3724% 3724% 80,171 26,639 201% 201%
Northern Europe 91,861 179,906(49%) (49%) 107,764 121,581(11%) (12%)
Mediterranean 167,918 193,303(13%) (7%) 94,194 95,791 (2%) 4%
South, Central America and the Caribbean 398,926 367,172 9% 11% 210,899 188,866 12% 15%
Asia 62,404 42,019 49% 45% 38,195 29,649 29% 27%
Others and intercompany eliminations (82,568) (109,107) 24% 30% (51,342) (60,435) 15% 23%
TOTAL 1,251,236 1,272,793(2%) (1%) 730,347 702,215 4% 4%
OPERATING EBITDA MARGIN
Mexico 31.6% 35.7% 29.6% 36.0%
U.S.A. 6.2% 0.2% 9.2% 3.3%
Northern Europe 5.0% 9.1% 9.9% 11.1%
Mediterranean 22.5% 25.4% 23.5% 25.0%
South, Central America and the Caribbean 37.7% 34.9% 37.6% 35.7%
Asia 20.5% 15.6% 23.5% 20.9%
TOTAL 17.1% 17.3% 18.2% 18.2%
2013 Second Quarter Results Page 12
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OPERATING RESULTS
Volume Summary
Consolidated volume summary
Cement and aggregates: Thousands of metric tons. Ready mix: Thousands of cubic meters.
January June Second Quarter
2013 2012% Var. 2013 2012% Var.
Consolidated cement volume 1 31,677 32,932(4%) 17,293 17,310(0%)
Consolidated ready mix volume 26,282 26,687(2%) 14,470 14,231 2%
Consolidated aggregates volume 76,203 74,796 2% 42,743 41,246 4%
Per country volume summary
January June Second Quarter Second Quarter 2013 Vs.
DOMESTIC GRAY CEMENT VOLUME 2013 Vs. 2012 2013 Vs. 2012 First Quarter 2013
Mexico (8%) (7%) 10%
U.S.A. 3% 3% 22%
Northern Europe (8%) (4%) 69%
Mediterranean (4%) 5% 14%
South, Central America and the Caribbean (1%) 7% 16%
Asia 4% 6% 14%
READY MIX VOLUME
Mexico (6%) (3%) 8%
U.S.A. 11% 14% 16%
Northern Europe (8%) (4%) 48%
Mediterranean 5% 8% 6%
South, Central America and the Caribbean (5%) (1%) 15%
Asia (1%) 8% 26%
AGGREGATES VOLUME
Mexico 4% 7% 14%
U.S.A. 12% 8% 4%
Northern Europe (4%) 1% 61%
Mediterranean (2%) 1% 10%
South, Central America and the Caribbean (1%) 6% 21%
Asia 33% 20% 29%
1
Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.
2013 Second Quarter Results Page 13
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OPERATING RESULTS
Price Summary
Variation in U.S. Dollars
January June Second Quarter Second Quarter 2013 Vs.
DOMESTIC GRAY CEMENT PRICE 2013 Vs. 2012 2013 Vs. 2012 First Quarter 2013
Mexico 3% 5%(2%)
U.S.A. 4% 4% 1%
Northern Europe (*) (1%) 0%(4%)
Mediterranean (*) (3%) (2%) 5%
South, Central America and the Caribbean (*) 1% (0%)(3%)
Asia (*) 12% 9%(0%)
READY MIX PRICE
Mexico 5% 8% 2%
U.S.A. 6% 5% 1%
Northern Europe (*) 1% 3%(5%)
Mediterranean (*) 4% 6% 4%
South, Central America and the Caribbean (*) 5% 5%(1%)
Asia (*) 3% 5%(1%)
AGGREGATES PRICE
Mexico 5% 8%(1%)
U.S.A. 1% 3% 7%
Northern Europe (*) 1% 2%(8%)
Mediterranean (*) 8% 7%(3%)
South, Central America and the Caribbean (*) 1% (1%)(3%)
Asia (*) 14% 17% 8%
(*) Volume weighted average price.
2013 Second Quarter Results Page 14
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OPERATING RESULTS
Price Summary
Variation in Local Currency
January June Second Quarter Second Quarter 2013 Vs.
DOMESTIC GRAY CEMENT PRICE 2013 Vs. 2012 2013 Vs. 2012 First Quarter 2013
Mexico (2%) (2%)(2%)
U.S.A. 4% 4% 1%
Northern Europe (*) (0%) (0%)(3%)
Mediterranean (*) 6% 7% 7%
South, Central America and the Caribbean (*) 4% 3%(0%)
Asia (*) 9% 7% 3%
READY MIX PRICE
Mexico 0% 0% 2%
U.S.A. 6% 5% 1%
Northern Europe (*) 2% 2%(4%)
Mediterranean (*) 2% 2% 3%
South, Central America and the Caribbean (*) 8% 9% 1%
Asia (*) 3% 4%(1%)
AGGREGATES PRICE
Mexico 0% 1%(1%)
U.S.A. 1% 3% 7%
Northern Europe (*) 2% 2%(7%)
Mediterranean (*) 5% 2%(4%)
South, Central America and the Caribbean (*) 4% 3%(0%)
Asia (*) 13% 16% 8%
(*) Volume weighted average price.
2013 Second Quarter Results Page 15
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OTHER ACTIVITIES
CEMEX launches CEMEX Global Solutions service
On Solutio Julns, a service fro y 1, 2013, CEMEX m the company announce which leverage d the launch s over a centur of CEMEX Global y of proposi industry leading tion in a full ran expertise ge of technical to provideservices for the customers with cement, ready the best value mix concrete, and aggregates industry. project CEMEX s Global in several Solutio countries. ns is available By leveraging around the the wb orld, est practices with ongoing and Switzer innovatland ions from and extra the cting company’s value Res froearch m its and expertise Development as a top Cente cement, r in ready expecte mix d to concrete provide anstate of the art d aggregates company, technological CEMEX support Global Solution across the s is concep entire building tualization materi to eals xpanding manufacturi capacng ity process, and upgradi from ng plant equipment. design This and service by providing them with reinforces CEM reliable and co EX’s commitme st efficient solu nt to suiting ittions. s customers’ needs For offering, please visit w more information ww. about cemex. CEMEX com/Global CEMEXGlobalSo Solutions lutions. and its complete
CEMEX and BirdLife launch new shared vision for nature conservation
On develo Jun ped e 26, an 2013, inspirin CEg MEX new in publicat collaboion ration that with captu Birres dLife the Internati compaonal ny’s approa signals ch significant prog to biodiversress in the comp ity conservation. any’s ten year The launch global conserva of this publication tion partner partnership ship with for natur Birdle. ife Supported Internationa bl, y the CEMEX’s world’s tea largest m in Switzerla civil society nd, environ CEMEX mental and BirdLife sustai hnability ave worked of to CE gether MEX’s since operati 2007 ons to globally increase and the minimi to consze business risk erve important s while creating sites for biodiversity. opportunities f or BirdLife Partners BirdLife The CEMEX BirdLife World Congre document ss, which was high la lighted unched experie at a special nces from event CEM at the EX BirdLife and pra ctitioners from global collaborations 17 nations from and was across the Bird represented by Life Partnership. conservationists The pu World’s blication was tim Birds report. This ely, because Bi important nrdLife just launc ew report highlights hed its State of that, globally, the rapid one in deight species is t eterioration in the hreatened with global environment extinction, pro that is viding evidence affecting all lifeof a on that Earth. th Te he report prov current situatides cautious ho ion can be reversed, pe for optimis given the m, since it indic will and resourates ces, such as by the CEMEX BirdLife the innovative Partnership. approaches to wildlife conservation demonstrated high Looking priority forward, sites CEM –identified EX plans in to the esC tablish EMEX BirdLife BAP pro Scoping jects at Study additi– onal by initiativ 2015. The company is es for CEMEX staff as part of o also working wiur communicati th BirdLife to de ons strategy, w velop new training hich will help generate momentum for new activities to conserve biodiversity.
CEMEX reinforces commitment to Egypt’s development
On approxi June mately 3, 2013, U.S.$100 CEMEX million annou (app nced roximately that it 700 expects million to Egyp invest tian suppor pounds) ting to significantl the country’s y improve housing, its operations commercial in Eand gypt infrastruct and continue ure development. increas A sizabe le its percentage capacity t o o f the use investme coal and nt pet will coke be used as enby ergy the sources compan in y its to Assiut also ex cpects ement to plant, insta helping ll new to waste eliminco processing ate fuel subsidiand es by environme 2014. CEMEX ntal equipm its alternative ent in the plant fuels usage. to continue red Since 2000, ucing its emissi CEMEX has ons and to incre co processed oase ver 2010, 250,000 tons of waste CEMEX inaugurain Egypt, conve ted a new U.S. rting them into $12 million dalternative fuel ust filter equips. ped In with the latest technology to reduce emissions in its Assiut cement plant. constru CEMEX ction also expects of concr tete o invest roads, in whic equipment h represent to build a more and promote durable and the suppor cost efft ective four major building concrete solution. paving The projects company in is Egy already pt during planning 2013. to In addition, the operational improvements are expected to further enhance
fosterin the com g the creation of pany’s affordable new jobs in thi housing effs region. orts, specificall y in Upper Egypt, responsi Since 2000, bility CEMEX initiatives has such implemented as its driving in Egypt safety many prog value added rams, which so ha cial ve benefite has impd roved over 20,000 the livd es rivers of over and its 5,000 Food for Educati children and on program their famili which es. support Additionally, Egypt’s CEMEX comme is rcial providing and infras industry leading tructure develo building pment, solutions such as to a barrage multiple use and hydroelectr complex in ic plant in the N the heart of Cairo, ile River. and a state of the art tidal
CEMEX to expand capacity of Texas cement plant producti On Mayon capacity at i 30, 2013, CEts Odessa, Texa MEX announced s cement plant that it planby 345,000 met s to expand the ric rapidly tons to g nearly rowing 900,000 demand metric in its tons West pe Texas r year market in order ledto mainly keep pace by the with oil product and gas s, industry. the compan By leveraging existing y expects to assets and prod achieve strong ucing value add returns on ed its investment. growing The demas and a result for specia of tlty he use cement of more products efficient used extrac in well tion construction technologies, is such technolo as horizontal gy typically drill reach ing and depths hydrau of thousands lic fracturing. of f O eet. il wells Specialty using w this ell to which cement is these wells are required for the exposed. complex application and extreme conditions in The exp higheansion will utiliz r fuel efficiency e state of the a and improvedrt production te productivity. Tchnology result he expansion will ing more also incl efficient ude an improve truck loading d higher process capacity to load accommo out systdate em, allowing the regio fon’s r a growing demand for cement.
2013 Second Quarter Results Page 16
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OTHER INFORMATION
Change in the Parent Company’s functional currency
Consid Accoun ering ting Standard the guid 21, ance The under Effects IFRS of Changes set forth in Foreign by Internati Excha onal nge moneta Rates (“IAS ry position 21”), and in f oreign based currenci on changing es of CEMEX, circumst S.ances A.B. de on C.V. the (on net a decrea parent se company in tax liabiliti onlyes basis) denominated resulting in mainly Mexican from Pesos; : a)b) a a signific significant ant increas obligatie ons; in and its c) U. S. th e Dollar denomi expected incnated rease in debt U.S. an Dd ollar denomina other financial ted of intra gr majooup r back administra office activities tive expenses with IBa M; ssociated effective with as of the January externaliza 1, 2013, tion statem CEMEX, ents, was requir S.A.B. de C.V., ed to prospecti for purposes of vely change its its parent comfunctional curre pany only finanncy cial from determ the ined Mexican to be th Pe e so currency to the U. of S.CEMEX, Dollar, S. as A.B. th e de U.C. S.V. Dollar ‘s prim was ary econom functional ic environment. currencies of The aforemen CEMEX, S.A. tioned change h B. de C.V.‘s subsidiaries, as no effect on which the continu which ee ach subsidiary to be the cu operates. rrency in More the over, the reporti primary econom ng currency for ic environment the in subsidi consoliaries and the pa dated financial rent company o statements ofnly financial sta CEMEX, S.A.B. tements of CEM de C.V. and EX, its S.A.B. de C.V. continues to be the Mexican Peso. statem The maents in effects in CE beginning MEX, S. on January A.B. de C 1, 2013, .V.‘s parent com associated with pany only finan the change cial in functio revenues nal and currency, expense ass compared in any currenc to prior y are years recognize are: d a)in all U. transacti S. Dollarons, s at balance the exchange s of CEMEX, rates S. pA. revailing B. de C.at V. th deeir nominated execution in d U. ates; S. Dollars b) mone will tary not genera Mexicate n Pesos and oth foreign currency er non U. fluctuatio S. Dollar denominate ns, while mon d balances will n etary balances ow in genera statemte ent foreign of operatio currency ns; and fluctuation c) thes conversion through CEM op EX, tion S.embedde A.B. de C. d V.in ‘s CEMEX, Mexican S.Pesos A.B. de will C.V.‘s now Mandatory be treat Ced onvertible as a stan Notes d alone denominate derivad tive in instrum while the ent options through em CEMEX, bedded S.A. in B. CE d MEX, e C.V. S. ‘s A.statem B. de ent C.V.‘s of U. operati S. Doons, llar Option Denomal inated Convertible 2010 Op Subordinated tional Converti Nble otes Subordinate will cease d to Notes be treated and 2011 as operati stand aons. lone Prior derivative period s through financial CEM staEX, tements S.A.B.are de n C. ot V.‘s required statemen to t be of restated.
Significant tax proceedings
In related connection to the taxes pa with the yable in Mexico previously publicly from passive in disclosed come generate tax proceeding d by foreign amnesty investments provision, for MEX, the S.years A.B. opt 2005 ed to and enter 2006 this and amnesty the transi progtory ram and therefore there ar CEe not any tax liabilities in connection to this matter as of March 31, 2013.
Mexican Tax Reform 2010 income In Nove mber tax law 2009, that the became Mexican effective Congress on January approved a 1, 2010. mendments to The new law the include among d changes to th other things, determine e tax consolidat incomion regime that e taxes as if the require CEMEX tax consolidation to, require provisions in Mexico di d the paymentd not exist from of taxes on dividends 1999 onward. betwe These changes en entities of also the consoli not taxdated tax group ed in the past), (specifically, di certain special vidends paid fro items in the tam profits that w x consolidation, ere as well consoli adated s tax tax loss gro caup rryforwards that should generated have been by e rntities ecovered within by such the individ increasual ed the entities statutor ove y r income the succeedi tax rang te from 10 years. 28% to These 30% for amendm the yents ears 2010 to years. P 2012, 29% for ursuant to thes2013, and decre e amendments, the parent com ased it to 28% for 2014 and fut pany was required ure elimina to pay ting in 2010 the tax (at co th nsolidation e 30% tax effe ratcts e) 25% from of 1999 the to tax 2004, resulting and to from pay an follows additional : 20% in 2012, 15% in 2013, an 25% in 2011. The remaid 15% in 2014. ning 50% is req With respect to uired to be paid the as during consolidation the sixth fiscal y effects originated ear following t after heir origination 2004, these should and are be pay be conside able red over the succeeding five years in the same proportions (25%, 25%, 20%,
15%, an has alred 15%), ady been and, in notified relation to this, to CEMEX and the consolidati considered. on effect for 2005 Applicable taxes payable increased as a result of th by inflation, ae changes to th s required by the e tax consolida Mexican income tion regime will tax law. Asbe of recogniz December ed 31, the 2009, nominal based value on of Interpr estimated etation taxes 18, pay the able parent in connecti compaon ny with was rec the ognized se amendment by the s parent of approxima compantely y as US$ a tax 799 paya million. ble on This its amo balance nt sheet million, ain connection w gainst “Other non current ith the net liabi aslity recognized sets” for apprbefore the new oximately US$628 tax law the and payment that the of paren this tt ax company liability; exp anects d approximatel to realize in y connection US$171 milli with on related against “Retained to: a) the earni difference ngs” for betwee the po n rtion, the sum accordin of the g to equity the new of la the w, controll consolided entities for ta ated entity; b) x purposes and dividends from the equity for t the controlleax purposes of t d entities for tax he purpose companies s to CEMEX, S. included A. in B.the de C.tax V.; and consolidation c) other transac that tions between t represented the he transfer additional rules, the tax of resources w authorities eli ithin the group. minated certain In December 2010, aspects of the l pursuant aw to related t equity of o the taxable a the controlled mount for the d entities for tax ifference betwe purposes and the en the sum of t equity for tax he reduced purposes its of estimated the consolidated tax payable entity. bAs y approximatel a result, they parent US$235 compa million ny against compana y’s credit tax payable to “Retained associated earnings. with “ the In 2012, tax conso changes lidation in the in Mex parent ico are as follows (approximate US$ Millions):
2012
Balance at the beginning of the period $966
Income tax received from subsidiaries $162
Restatement for the period $58
Payments during the period ($54)
Balance at the end of the period $1,132
applicab In December le in 2012, 2013, the established Federal Reven that ue the Law statutory (Ley Federal income de Ingres tax rate os) 2015 an remained future years. d at 30% in 2013, then lowered it to 29% for 2014 and 28% for As of De not been considered in cember 31, 2012, the balance o the tax consolidation was appr f tax loss carryforwards that ha oximately US$549 ve million. taxes p ayable As of Decembe resultingr from 31, 2012, these the changes estimated in the payment tax consolidati schedule on of regime i dollars): n Mexico were as follows (approximate amounts in millions of US
2013 $ 157*
2014 $ 200
2015 $ 209
2016 $ 173
2017 $ 176
2018 and thereafter $217
1,132
* This payment was made in March 2013.
Egypt Share Purchase Agreement
Further regarding to the the annulme decision nt by of a the court Shar oe f Purchase first instance Agreement in Assiut, signed Egypt, in 1999 pu relation rsuant to which to the appeal CEMEX acquire that was filedd Assiut Cemen by Assiut Cement t Company, and Company, in a take pla hearing ce on Septembe was held on June r 16, 2013. 16, 2013 and the next hearing is scheduled to
Antitrust investigations in Europe by the European Commission compan Regardin ies g the related formal to the proceedings antitrust investigations against CEMEX in and Europe the by other the Europea being inn Commission, vestigated were the hearings for completed in CEMEX and th April 2013. We e other compan currently expect ies that the judgement will be rendered before September 2013.
2013 Second Quarter Results Page 17
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OTHER INFORMATION
Investigations in the UK
Compe Regarding tition Commissi the Market on into the supp Investigation commenced ly or acquisitio by tn of cement, rea he United Kingdom dy 12, mix 2013 concrete all intereste and aggregates d parties for to the th pe eriod investigation from 2007 responded to 2011, by to June the We provisi cuonal findings an rrently expect the d notice of poss final findings ible remedies i and remedies ssued in May 2013. to be issued in January 2014.
Tax Matters Colombia
CEMEX Authority (Dirección de Colombia, S.A. has reached a s Impuestos) regettlement with arding its 2007 and 2008 year the Colombian end Tax corresp tax return onding The to amo the unt 2007 paid and 2008 in connection was 47,111,330,000 with the settlem Colombian ent pesos ( COP 1,929 US$24.4 million to US$1.00) as of June 30, 2013, based on . We are currently waiting an exchange rat for the resolution e of regarding the settlement to be fully signed.
2013 Second Quarter Results Page 18
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DEFINITIONS OF TERMS AND DISCLOSURES
Methodology for translation, consolidation, and presentation of results
Under IFRS, beginning January 1, 2008, CEMEX translates the financial statements of foreign subsidiaries using exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement. CEMEX reports its consolidated results in Mexican pesos.
For the reader’s convenience, beginning June 30, 2008, US dollar amounts for the consolidated entity are calculated by converting the nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter. The exchange rates used to convert results for the second quarter of 2013 and the second quarter of 2012 are 12.64 and 13.59 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 June 30, 2013, and June 30, 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
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 a e 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 1,168.9 million for the second quarter of 2013; 1,167.8 million for year to date 2013; 1,157.9 million for the second quarter of 2012; and 1,157.0 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 June Second Quarter
2013 2012 2013 2012
Average Average Average Average
Mexican peso 12.63 13.25 12.64 13.59
Euro 0.7625 0.7677 0.7661 0.7842
British pound 0.6516 0.6312 0.653 0.6324
Amounts provided in units of local currency per US dollar.
2013 Second Quarter Results Page 19
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2013
Second Quarter Results
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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.
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2Q13 results highlights
January – June Second Quarter
l?t?l % l?t?l %
Millions of US dollars 2013 2012% var 2013 2012% var
var var
Net sales 7,322 7,373(1%)(1%) 4,006 3,861 4% 3%
Gross profit 2,189 2,107 4% 3% 1,280 1,160 10% 9%
Operating earnings before
690 607 14% 15% 451 363 24% 24%
other expenses, net
Operating EBITDA 1,251 1,273(2%)(1%) 730 702 4% 4%
Free cash flow after
(568)(258)(120%)(86) 21 N/A
maintenance capex
Eighth consecutive quarter with year?over?year operating EBITDA growth
2Q13 operating EBITDA increased by 4%; adjusting for number of working days growth was 2% 1H13 operating EBITDA increased by 4%, adjusting for the effect of the change in pension plan in the Northern Europe region during 1Q12, with a margin expansion of 0.8pp
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Consolidated volumes and prices
6M13 vs. 6M12 2Q13 vs. 2Q12 2Q13 vs. 1Q13
Volume (l?t?l1 ) (3%) 0% 20%
Domestic gray
Price (USD) 2% 3%(2%)
cement
Price (l?t?l1 ) 3% 2%(0%)
Volume (l?t?l1 ) (2%) 2% 23%
Ready mix Price (USD) 4% 5%(0%)
Price (l?t?l1 ) 3% 3% 0%
Volume (l?t?l1 ) 2% 4% 28%
Aggregates Price (USD) 2% 3%(0%)
Price (l?t?l1 ) 2% 3% 0%
The higher number of working days during the quarter had a positive contribution of 1.0pp in the year over year growth in consolidated volumes for our three core products Increase in domestic gray cement volumes in our operations in the U.S., and the South, Central America and the Caribbean, Mediterranean and Asia regions, offset lower volumes in Mexico and Northern Europe Consolidated prices of our three core products on a like?to?like basis increased on a year?over?year basis
1 Like?to?like volumes adjusted for investments/divestments and, in the case of prices, foreign?exchange fluctuations
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2Q13 achievements
Eighth consecutive quarter with year?over?year improvement in operating EBITDA, on a comparable basis
Year?to date adjusted operating EBITDA increased by 4% and adjusted operating EBITDA margin expanded by 0.8pp
28% alternative fuel substitution rate in our cement operations during the second quarter
Implementation of targeted cost?reduction initiatives in Mexico and the Northern Europe region expected to result in savings of about US$100 million during 2H13
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Second Quarter 2013
Regional Highlights
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Mexico
Millions of
6M13 6M12% var l?t?l % var 2Q13 2Q12% var l?t?l % var
US dollars
Net Sales 1,627 1,670(3%)(7%) 847 833 2%(5%)
Op. EBITDA 514 597(14%)(18%) 250 300(17%)(22%)
as % net sales 31.6% 35.7%(4.1pp) 29.6% 36.0%(6.4pp)
2013 vs. 2Q13 vs. 2Q13 vs.
Volume
2012 2Q12 1Q13
Cement (8%)(7%) 10%
Ready mix (6%)(3%) 8%
Aggregates 4% 7% 14%
2013 vs. 2Q13 vs. 2Q13 vs.
Price (LC)
2012 2Q12 1Q13
Cement (2%)(2%)(2%)
Ready mix 0% 0% 2%
Aggregates 0% 1%(1%)
Volumes affected by low infrastructure investment as well as the uncertainty surrounding the new housing program and tight credit conditions which have affected the formal residential sector The industrial?and?commercial sector continued to have a positive performance during the quarter Earlier this month, the federal government announced new National Infrastructure Program for 2013?2018 with an expected investment of about US$315 billion Nationwide price increase announcements of about 4% on our domestic gray cement and ready mix concrete earlier this month aimed at recovering input cost inflation
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United States
Millions of
6M13 6M12% var l?t?l % var 2Q13 2Q12% var l?t?l % var
US dollars
Net Sales 1,604 1,480 8% 8% 868 795 9% 9%
Op. EBITDA 99 3 3724% 3724% 80 27 201% 201%
as % net sales 6.2% 0.2% 6.0pp 9.2% 3.3% 5.9pp
2013 vs. 2Q13 vs. 2Q13 vs.
Volume
2012 2Q12 1Q13
Cement 3% 3% 22%
Ready mix 11% 14% 16%
Aggregates 12% 8% 4%
2013 vs. 2Q13 vs. 2Q13 vs.
Price (LC)
2012 2Q12 1Q13
Cement 4% 4% 1%
Ready mix 6% 5% 1%
Aggregates 1% 3% 7%
Quarterly increase in sales and operating EBITDA reflects strong operating leverage
Fifth consecutive quarter of positive EBITDA generation
The residential and industrial?and?commercial sectors were the main drivers of demand Prices for our three core products increased sequentially
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Northern Europe
Millions of
6M13 6M12% var l?t?l % var 2Q13 2Q12% var l?t?l % var
US dollars
Net Sales 1,846 1,978(7%)(6%) 1,088 1,100(1%)(2%)
Op. EBITDA 92 180 (49%)(49%) 108 122 (11%)(12%)
as % net sales 5.0% 9.1%(4.1pp) 9.9% 11.1%(1.2pp)
2013 vs. 2Q13 vs. 2Q13 vs.
Volume
2012 2Q12 1Q13
Cement (8%)(4%) 69%
Ready mix (8%)(4%) 48%
Aggregates (4%) 1% 61%
1 2013 vs. 2Q13 vs. 2Q13 vs.
Price (LC) 2012 2Q12 1Q13
Cement (0%)(0%)(3%)
Ready mix 2% 2%(4%)
Aggregates 2% 2%(7%)
Cement volume growth during the quarter in the UK, Germany, Scandinavia and the Czech Republic Cement prices year?to?date (from December 2012 to June 2013) increased in Germany, Poland, Scandinavia and Latvia, in local?currency terms The residential sector was the main driver of demand in Germany and UK supported by low mortgage rates In Poland, volumes were affected by adverse weather conditions and a reduction in infrastructure spending; 2Q12 represents a high base of comparison due to activity related to the EURO 2012 championship
1 Volume?weighted, local?currency average prices
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Mediterranean
Millions of
6M13 6M12% var l?t?l % var 2Q13 2Q12% var l?t?l % var
US dollars
Net Sales 747 761(2%) 1% 400 384 4% 7%
Op. EBITDA 168 193 (13%)(7%) 94 96 (2%) 4%
as % net sales 22.5% 25.4%(2.9pp) 23.5% 25.0%(1.5pp)
2013 vs. 2Q13 vs. 2Q13 vs.
Volume
2012 2Q12 1Q13
Cement (4%) 5% 14%
Ready mix 5% 8% 6%
Aggregates (2%) 1% 10%
1 2013 vs. 2Q13 vs. 2Q13 vs.
Price (LC) 2012 2Q12 1Q13
Cement 6% 7% 7%
Ready mix 2% 2% 3%
Aggregates 5% 2%(4%)
Increase in cement volumes from our operations in Egypt and UAE more than offset the decline in Spain and Croatia Growth in year?over?year ready?mix volumes in Israel, Croatia and UAE
Increase in sequential regional prices in our cement and ready?mix In Spain, continued government austerity measures have affected infrastructure spending, while in the residential sector there has been a gradual reduction in inventories In Egypt, domestic gray cement volumes increased on a year?over?year basis driven by informal construction
1 Volume?weighted, local?currency average prices
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South, Central America and the Caribbean
Millions of
6M13 6M12% var l t % var 2Q13 2Q12% var tl % var
US dollars
Net Sales 1,059 1,054 1% 3% 561 529 6% 10%
Op. EBITDA 399 367 9% 11% 211 189 12% 15%
as % net sales 37.7% 34.9% 2.8pp 37.6% 35.7% 1.9pp
2013 vs. 2Q13 vs. 2Q13 vs.
Volume
2012 2Q12 1Q13
Cement (1%) 7% 16%
Ready mix (5%)(1%) 15%
Aggregates (1%) 6% 21%
1 2013 vs. 2Q13 vs. 2Q13 vs.
Price (LC) 2012 2Q12 1Q13
Cement 4% 3%(0%)
Ready mix 8% 9% 1%
Aggregates 4% 3%(0%)
Regional operating EBITDA margin expansion due to higher pricing levels as well as initiatives to improve efficiency and reduce costs Significant improvement from 1Q13 in the operating environment in most of the countries in the region In Colombia, positive performance during the quarter was mainly driven by the residential and the industrial and commercial sectors In Panama, infrastructure was driven by projects including the Panama Canal, the Cinta Costera 3 and the Corredor Norte highway
1 Volume weighted, local currency average prices
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Asia
Millions of
6M13 6M12% var ll % var 2Q13 2Q12% var lt % var
US dollars
Net Sales 305 270 13% 10% 162 142 14% 13%
Op. EBITDA 62 42 49% 45% 38 30 29% 27%
as % net sales 20.5% 15.6% 4.9pp 23.5% 20.9% 2.6pp
2013 vs. 2Q13 vs. 2Q13 vs.
Volume
2012 2Q12 1Q13
Cement 4% 6% 14%
Ready mix (1%) 8% 26%
Aggregates 33% 20% 29%
1 2013 vs. 2Q13 vs. 2Q13 vs.
Price (LC) 2012 2Q12 1Q13
Cement 9% 7% 3%
Ready mix 3% 4%(1%)
Aggregates 13% 16% 8%
Regional increase in operating EBITDA driven by higher volumes and prices Increase in regional cement volumes during the quarter reflects positive performance in the Philippines Sequential regional price increases in cement and aggregates in local currency terms During the quarter, the Philippines experienced record cement volumes driven by positive performance from the residential sector and sustained infrastructure spending
1 Volume weighted, local currency average prices
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2Q13 Results
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Operating EBITDA, cost of sales and SG&A
January – June Second Quarter
l t l l t l
Millions of US dollars 2013 2012% var 2013 2012% var
% var % var
Net sales 7,322 7,373(1%)(1%) 4,006 3,861 4% 3%
Operating EBITDA 1,251 1,273(2%)(1%) 730 702 4% 4%
as % net sales 17.1% 17.3%(0.2pp) 18.2% 18.2% 0.0pp
Cost of sales 5,134 5,266 3% 2,725 2,701(1%)
as % net sales 70.1% 71.4% 1.3pp 68.0% 70.0% 2.0pp
Operating expenses 1,498 1,501 0% 829 797(4%)
as % net sales 20.5% 20.4%(0.1pp) 20.7% 20.6%(0.1pp)
2Q13 operating EBITDA increased by 4%; adjusting for number of working days growth was 2% Decline in cost of sales as a percentage of net sales during the quarter reflects a reduction in workforce related to our cost reduction initiatives, as well as lower electricity costs
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Free cash flow
January – June Second Quarter
Millions of US dollars 2013 2012% var 2013 2012% var
Operating EBITDA 1,251 1,274 (2%) 730 702 4%
Net Financial Expense 719 681 362 347
Maintenance Capex 149 124 101 74
Change in Working Cap 538 462 207 164
Taxes Paid 408 250 133 76
Other Cash Items (net) 5 15 14 21
Free Cash Flow after Maint.Capex (568)(258)(120%)(86) 21 N/A
Strategic Capex 35 60 8 45
Free Cash Flow (603)(318)(90%)(94)(24)(293%)
Working capital days decreased to 28 days in the first half of 2013 versus 30 days during first half of 2012
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Other income statement items
Other expenses, net, of US$106 million during the quarter mainly included impairment of fixed assets, severance payments as well as a loss in sale of fixed assets
Foreign exchange gain of US$102 million resulting primarily from the fluctuation of the euro and Mexican peso versus the U.S. dollar
Loss on financial instruments of US$52 million related mainly to CEMEX shares
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Second Quarter 2013
Debt Information
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Debt related information
During the quarter, there were proceeds from our securitization programs of about US$110 million
Debt during the quarter reflects a negative foreign exchange conversion effect of US$13 million
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Consolidated debt maturity profile
Total debt excluding perpetual notes1 as of June 30, 2013 US$ 16,476 million
New Facilities Agreement
Millions of
US dollars Other bank / WC debt / Certificados
Bursátiles
6,000 Fixed Income
Convertible Subordinated Notes2
5,000 4,823
4,000
2,878
3,000 2,619 2,693
2,000
1,456 1,547
1,000
383
75
0
2013 2014 2015 2016 2017 2018 2019 ?2020
1 CEMEX has perpetual debentures totaling US$472 million
2 Convertible Subordinated Notes include only the debt component of US$2,084 million. Total notional amount is about US$2,383 million
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Appendix
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Additional information on debt and perpetual notes
Currency denomination
Interest rate
Mexican peso 2%
Euro 13%
U.S. dollar 85%
Variable 30%
Fixed 70%
Second Quarter First Quarter
Millions of US dollars 2013 2012% Var. 2013
Total debt1 16,476 17,167(4%) 16,528
Short?term 3% 1% 3%
Long?term 97% 99% 97%
Perpetual notes 472 470 0% 471
Cash and cash equivalents 746 625 19% 817
Net debt plus perpetual notes 16,201 17,012(5%) 16,182
Consolidated Funded Debt2 / EBITDA3 5.54 5.58
Interest coverage3 4 2.06 2.06
1 Includes convertible notes and capital leases, in accordance with IFRS
2 Consolidated Funded Debt as of June 30, 2013 was US$14,355 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
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6M13 volume and price summary: Selected countries
Domestic gray cement Ready mix Aggregates
6M13 vs. 6M12 6M13 vs. 6M12 6M13 vs. 6M12
Prices Prices Prices Prices Prices Prices
Volumes Volumes Volumes
(USD)(LC)(USD)(LC)(USD)(LC)
Mexico (8%) 3%(2%)(6%) 5% 0% 4% 5% 0%
U.S. 3% 4% 4% 11% 6% 6% 12% 1% 1%
Germany (3%)(0%)(1%)(8%) 4% 3%(4%) 3% 2%
Poland (28%)(2%)(3%)(17%)(4%)(5%)(29%)(14%)(15%)
France N/A N/A N/A (13%) 3% 3% 0% 2% 2%
UK 4%(6%)(3%) 1%(2%) 2%(3%)(2%) 1%
Spain (32%) 5% 4%(34%)(8%)(9%)(47%)(4%)(4%)
Egypt 7%(3%) 11%(7%) 0% 14%(13%) 3% 16%
Colombia (6%) 4% 8% 5% 6% 10%(1%)(1%) 2%
Panama 3% 0% 0%(9%) 7% 7% 2% 11% 11%
Costa Rica 1% 14% 13%(12%) 16% 14%(8%)(3%)(4%)
Philippines 7% 11% 8% N/A N/A N/A N/A N/A N/A
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2Q13 volume and price summary: Selected countries
Domestic gray cement Ready mix Aggregates
2Q13 vs. 2Q12 2Q13 vs. 2Q12 2Q13 vs. 2Q12
Prices Prices Prices Prices Prices Prices
Volumes Volumes Volumes
(USD)(LC)(USD)(LC)(USD)(LC)
Mexico (7%) 5%(2%)(3%) 8% 0% 7% 8% 1%
U.S. 3% 4% 4% 14% 5% 5% 8% 3% 3%
Germany 3%(0%)(3%)(3%) 6% 4% 4% 5% 2%
Poland (23%) 1%(2%)(14%)(3%)(5%)(25%)(12%)(14%)
France N/A N/A N/A (6%) 5% 2% 2% 4% 2%
UK 9%(5%)(3%) 6%(1%) 2% 2%(1%) 2%
Spain (31%) 9% 6%(36%)(3%)(6%)(46%)(4%)(6%)
Egypt 18%(3%) 12%(2%) 3% 19% 3%(4%) 11%
Colombia 3% 1% 6% 8% 3% 9% 3%(1%) 4%
Panama 6% 1% 1%(1%) 9% 9% 10% 9% 9%
Costa Rica 11% 12% 12%(6%) 17% 16%(7%) 3% 2%
Philippines 10% 7% 6% N/A N/A N/A N/A N/A N/A
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Definitions
6M13 / 6M12: results for the six 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.
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Contact information
Investor Relations Stock Information
In the United States NYSE (ADS): CX
+1 877 7CX NYSE Mexican Stock Exchange:
In Mexico CEMEXCPO
+52 81 8888 4292 Ratio of CEMEXCPO to
ir@cemex.com CX:10 to 1
Calendar of Events
October 24, 2013 Third quarter 2013 financial results conference call
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