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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 | ||||
| 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. | Second 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. |
Second 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
February 13, 2014
CEMEX Day 2014
Legal Disclaimer
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.
February 13, 2014
Jaime Elizondo
President – CEMEX South & Central America, and the Caribbean
Continue implementing our Value before Volume strategy
Domestic gray cement price Revenue from ready-mix services
(FOB, US$/ton) (US$ M)
n Implement a price increase to recover input cost n Value before Volume implementation inflation ü Formal and transparent price structure to customers ü Additional services and surcharges
Further increasing our efficiency
Fuel cost improvement Regional integration
(Alternative fuels substitution rate)
40%
n Improve communications among country
20% 21%
8% operations
Mid-term n Foster best practice and knowledge sharing
2011 2012 2013
Cement distribution expense within CEMEX operations in the region and other industries
(US$/Ton)
-1.4 n Comparing operations / benchmarking
-1.0
n Achieve excellence through integrated regional functions
2012 2013 Mid-term
Opportunities for continued improvement in energy, logistics, raw materials and others.
February 13, 2014
Ignacio Madridejos
President—CEMEX Northern Europe
Better performance despite delays in recovery
EBITDA 2012-2013
(US$ M)
Value Before Volume Tight Cost Discipline =
= Increased Compensated Volume Contribution Margin Declines (+US$35 M)
NE 2012 Price Variable Volume Fixed SG&A & Other FX NE 2013 EBITDA Costs Costs Corporate EBITDA
Costs
Main Efforts Preliminary Results
Pricing Create system an agile, based flexible on segmentation by product, region,
| 1 |
|
organization in every 4.5% price increase in customer, job type, etc. country, that is … 1 stagnant market in |
| 2 |
|
Full freight cost recovery (new partial load limit at 6 m3) 2013 |
Create an agile, flexible
Additional organization charges in every considering input costs (energy surcharge
| 3 |
|
8.4% price increase of country, +US$1. that 3/mis 3) … |
| 2 |
|
(+US$8/m3) in Dec 2013 Charging for additional services (waiting time, express vs. Dec 2012 |
| 4 |
|
Create an agile, flexible delivery, organization winter in every charge, etc.) Roadmap towards country, that is … |
| 5 |
|
Proactive communication, internally and to customers 3 ROCE>WACC requiring |
>4 % annual average
| 6 |
|
Specialized training for sales force price increase |
Similar initiatives implemented in all countries to reach ROCE > WACC. Additional income from services and surcharges of >US$50 M
Value before Volume in cement— a success story in Poland
Main Efforts Preliminary Results
Rebates Creat an based agile, on flexible specific customer characteristics (volume,
| 1 |
|
organization in every length of cooperation, payment terms) Maintained prices country, that is … despite significant |
| 1 |
|
| 2 |
|
Additional charges considering input costs (energy surcharge market decline (-8.5%) |
+US$ Create 2/ton) an agile, flexible organization in every country, that is … 3.7% price increase Charging for special services (express delivery, small load, 2 (+US$3.3/ton) in Dec
| 3 |
|
order cancellation, waiting time, silo rental, etc.) 2013 vs. Dec 2012 |
Create an agile, flexible organization in every
| 4 |
|
Proactive communication, internally and to customers Roadmap towards c untry, that s … |
ROCE>WACC requiring
| 3 |
|
>5% annual average
| 5 |
|
Specialized trainings for all sales force price increase |
Similar initiatives in UK and Germany. Expect favorable market conditions in 2014 to help reflect efforts undertaken
Value before Volume in aggregates—a success story in the UK
Main Efforts Preliminary Results
Minimum Create an price agile, per flexible quarry based on forward looking price of
| 1 |
|
organization in every 2.1% price increase in reserves country, that is … 1 stagnant market in |
| 2 |
|
Local market analysis based on supply demand curves 2013 |
Create an agile, flexible
Introducing organization additional in every charges considering input costs (fuel 3.9% price increase
3 surcharge) country, that is … 2 (+0.8$/ton) in Dec 2013 vs. Dec 2012 Value Create adding an agile, service flexible fees (technical advisory, partial loads,
| 4 |
|
express/peak organization in time every delivery, waiting time, etc.) |
Roadmap towards country, that is …
| 5 |
|
Proactive communication, internally and to customers ROCE>WACC requiring |
| 3 |
|
>5% annual average
| 6 |
|
Specialized trainings for all sales force price increase |
Similar initiatives implemented in Germany, Poland, France, Austria and Czech Republic
We continue to reduce our cost base
Costs savings in 2013
(US$ M)
12 65
| • |
|
Increased use of alternative fuels |
12
| • |
|
Optimized the use of energy |
12
| • |
|
Reduced headcount by 9% in |
| 5 |
|
2013 |
24
| • |
|
Plant closures/mothballing |
| • |
|
Back office outsourcing and SG&A reduction |
Variable CO2 Fixed Distrib. SG&A Total costs Costs Costs Corp & savings Others
Advancing towards goal of 80% alternative fuels substitution
Alternative fuels substitution
(%)
85
80 81 80
77 77 75
73 72 71
69 68
63 63 62 59
44
32 34
0
United Germany Poland Latvia Northern Kingdom Europe
2008 2012 2013 Mid-term Goal
Continuing to lower asset intensity
Fixed asset sales and divestments
(US$ M)
Planned Executed
223
280
127
2009-2012 2013-2016
Additionally advancing in ways to grow with lower asset intensity
Sound mid-term prospects
Mid-term expectations by sector
Infrastructure Residential Non-residential
UK France
Germany
Poland
0-2% expected CAGR 2013-2017 >2% expected CAGR 2013-2017
Commitments to deliver ROCE > WACC
Value Before n Full roll out of Value before Volume Volume n Sustained increase in contribution margins
n Towards 80% alternative fuels substitution Cost Discipline n Towards SG&A/Sales below 6%
n Maximize operating leverage: EBITDA CAGR > 4x volume
n Asset sales & divestments of US$350M between 2013-2016
Lowering Asset
n Towards zero working capital days
Intensity n
Growth in strategic markets, mainly via third party financing
Safety, n Towards Zero Incidents
Sustainability, and n Exceed CEMEX sustainability targets
Leadership n Reference in leadership & talent management
February 13, 2014
Jaime Muguiro
President – CEMEX Mediterranean
Expect favorable demand in our largest cement, concrete and aggregates operations
Estimated 2014 national demand growth
Continued focus on Value before Volume, efficiencies and returns
Revenue Cost & Efficiencies Return on Capital
Implementing pricing
1 5 Adapting cost structure 7 Reducing CAPEX and strategy, including to current demand severance payments service fees and environment surcharges
| 8 |
|
Divesting non-core and |
| 6 |
|
Increasing use of mothballed assets |
| 2 |
|
Increasing the sale of alternative fuels special products, with 9 |
Upon approval, better margins completing combination of assets
| 3 |
|
Growing the pie through with Holcim in Spain concrete paving and concrete walling systems |
| 4 |
|
Increasing clinker and cement exports |
Continuing with the implementation of our pricing strategy
2013 prices increases / 2014 price increases announced
Balkans
Spain n Gray Cement: -0% / n Gray Cement: +5% / n Fast delivery: +1.7 US$/Ton n Partial load: +19.5 US$/m3
Israel
n Ready-mix : +3% / +2% n Aggregates : +8% / +4% n Partial load +14 US$/m3
Egypt
n Gray Cement: +14% / +7%
UAE
n Temperature control: +1.4 US$/m3
| • |
|
Ready-mix: +0% / |
n Drum washing: +0.5 US$/m3)
Increasing the sale of specialty products to improve profitability: the examples of Egypt & Israel
Cement specialty products: Egypt Concrete specialty products: Israel
Introducing concrete paving solutions to grow concrete and cement volumes, and EBITDA
0 5 44
Peace Victor Airport Ausejo de la Sierra (16 km)
| • |
|
Cement Intensity: 100 kg/m2 Cement Intensity: 18 kg/m2 |
0 25 91
| • |
|
Extra EBITDA: US$4/m2 Extra EBITDA: US$0.8/m2 |
- 0.9 3.4
M)
In 5 years we could generate additional EBITDA of US$10 M/year
Expect to export close to 3 million tons of cement and clinker in 2014
(UK, Norway, Finland, Sweden, Italy, Bulgaria, Bosnia)
AMERICA: 0.1 M tons
(Brazil, Colombia, Venezuela, Peru, Dominican Rep, Uruguay)
MED & MIDDLE EAST: 0.4 M tons
(Turkey, Israel, Greece)
NORTH & WEST AFRICA: 1.9 M tons
(Algeria, Morocco, Guinea)
Continuing efforts to maximize cash generation
Severance Payments Avg. Working Capital CAPEX
(US$ M) (Days) (US$ M)
February 13, 2014
Joaquín Estrada
President—CEMEX Asia