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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 February, 2014
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 | ||||
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Garza García, Nuevo León, México 66265 |
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(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. | Set of presentation slides that include material information of CEMEX, S.A.B. de C.V. (NYSE:CX) discussed by its senior management on February 13, 2014 during its annual event, CEMEX Day. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CEMEX, S.A.B. de C.V. | ||||||||
| (Registrant) | ||||||||
| Date: | February 13, 2014 |
By: /s/ Rafael Garza | ||||||
| Name: Rafael Garza | ||||||||
| Title: Chief Comptroller | ||||||||
EXHIBIT INDEX
| EXHIBIT NO. | DESCRIPTION | |
| 1. |
Set of presentation slides that include material information of CEMEX, S.A.B. de C.V. (NYSE:CX) discussed by its senior management on February 13, 2014 during its annual event, CEMEX Day. | |
Exhibit 1
CEMEX
February 13, 2014
CEMEX Day 2014
Legal Disclaimer
CEMEX
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 the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to our prices for our products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
CEMEX
February 13, 2014
Juan Pablo San Agustín
Executive VP of Strategic Planning and Business Development
CEMEX decisively coped with a long crisis and is now recovering from recession
CEMEX
CEMEX Consolidated EBITDA 1
(US$ B)
4.6
4.1
2.7
2.3
2.4
2.6
2.6
3.0 - 3.1
4.7
2007
2008
2009
2010
2011 2012
2013
2014
Consensus
…
Mid-term
Recession Stabilization Recovery
(1) Proforma for the current operations
Global recovery will provide some tailwinds for our main markets
CEMEX
USA & Canada
9.3%
Mexico
4.2%
Europe
2.5%
Middle East &
Northern Africa
5.8%
Sub-Saharan Africa
6.8%
Central and South America & Caribbean
3.4%
Central Asia
& Caucasus
5.2%
Greater China
5.1%
Greater India
7.9%
Russia
4.3%
East Asia
1.9%
South East Asia
5.7%
Oceania
3.1%
Cement Demand CAGR
2013e - 2017e
Regional Cement Demand Growth Trend
Significant growth (> 6%)
Moderate growth (3 - 6%)
Limited growth (0 - 3%)
Source: CEMEX estimates
Our portfolio is geared towards high growth markets
CEMEX
Growth potential for
CEMEX regions vs. risk
Sovereign risk spread
0
100
200
300
0
N.EUR China USA
MEX
ASIA
SCA&C
Brazil MED Indonesia
Russia
Turkey
India
Nigeria
1 2 3 4 5 6 7 8 9 10
% 5Yr CAGR national cement demand
EBITDA by region
(US$ B)
~4.7
ASIA ~ 5%
MED ~10%
N. EUR ~10%
SCA&C ~20%
USA ~25%
MEX ~30%
Mid-term
CEMEX Regions; Size = Mid-term EBITDA
Reference countries
Grow the Pie: Expanding boundaries through displacement of other construction materials
CEMEX
GROW THE PIE
INFRASTRUCTURE
COMMERCIAL & INDUSTRIAL BUILDING
RESIDENTIAL
Initiatives to further grow demand:
- Displacing asphalt for road construction, parking lots, etc.
- Gaining market share against clay, timber, steel, and other building materials
Infrastructure Solutions
Commercial & Residential Solutions
Cementitious bound layers
Cement intensive constructive systems
Roller compacted concrete
Sustainable solutions
Concrete pavements
Low income housing
High potential for operating leverage across all regions…
CEMEX
% of CEMEX
Installed Capacity
Cement capacity utilization by region 1
(2013)
31%
18%
18%
13%
13% 6%
94M tons
52%
66%
45%
62%
78%
84%
60%
MEX
USA
MED
N.EUR
SCA&C
ASIA
CEMEX
Ability to capture growth without major investments
(1) Utilization to meet current domestic volumes
…coupled with aggressive structural cost reductions
CEMEX
Structural costs savings 2007-2013 Additional value creating
(US$ B) initiatives
1.2 Outsourced back-office functions to
yield US$100 M/year in savings
Increased alternative fuels substitution
0.8 from 7% to 28% (US$135 M/year in
savings)
Improved working capital by 6 days
(-US$770 M)
0.4 Fixed asset sales of ~US$700 M in the
last four years
Fixed Costs SG&A Total
Maximizing mid-term operational leverage: EBITDA to grow twice as fast as sales
Three overarching questions on our Value before Volume framework
CEMEX
Total revenue
proportion
targets
1. How to price our products in Prices 70%
order to capture full value?
2. How to capture the extra value Service Fees 25%
in delivery and servicing?
3. How to deal with input cost Surcharges 5%
dynamics?
Value before Volume is the key lever to reach mid-term EBITDA
CEMEX
Consolidated EBITDA variation 2007 to mid-term
(US$ B)
Value before
Volume
1.1
4.6 GrowPie the 2.0 0.2 4.7
2.0 1.4
2.6
0.1
1.2 1.3
Operating
Leverage
EBITDA 2007 Volume Price Var. costs & distribution Fixed cost & other EBITDA 2013 Volume Price Var. costs & distribution Fixed cost & other EBITDA mid-term
EBITDA Margin ~22% – 500 bps ~17% + 600 bps >23% ROCE >10%
(1) Includes SG&A and Other
A cohesive set of strategies being implemented to meet our mid-term targets
CEMEX
Value creation drivers
Portfolio with high growth potential
Value before Volume
Grow the Pie
Operating Leverage
Mid-term targets
ROCE >WACC
EBITDA ~US$4.7 B
FCF conversion
>35%
Leverage <3.0x
Investment Grade
CEMEX
February 13, 2014
Fernando A. González
Executive VP of Finance and Administration, CFO
On the road towards investment grade
CEMEX
Leverage ratio 2007 – mid-term 1
4.3x
+4.1x
EBITDA
(1.0x)
Equity Convertibles Asset Sales
7.4x
(0.7x)
EBITDA
(1.2x)
Convertibles CLH Asset Sales
5.5x
(2.0x)
EBITDA
(0.8x)
FCF
<3.0x
2007
2010
2013
Mid-term Target
Recession
Stabilization
Recovery
(1) Leverage ratio in accordance with the Financing Agreement signed in 2009 and the Facilities Agreement signed in 2012
Free cash flow conversion of more than 35% in the mid-term
CEMEX
FCF conversion 1
(% of EBITDA)
8%
6%
(3%)
>35%
Mid-term Target
11
12
13
Mid-term action plan
Deliver on EBITDA growth
Reduce interest expense via liability management and debt reduction
Sell non-productive and other assets
Keep capex in line with overall growth
Maintain stable working capital investment
FCF generation will contribute to debt pay down and deleverage in mid-term plan
(1) Free Cash Flow after maintenance capex
Continue to lower cost of debt and extend maturities
CEMEX
Address maturities over next 24 months
Convertible Notes currently in the money
Floating Rate Note due September 2015
Opportunistic liability management transactions to reduce debt cost and extend average life
US$6.1 B with average cost of 9.3% can be called in the next 4 years
Continue enhancing liquidity position
US$1.2 B of cash & equivalents
US$650 M of available bank credit lines