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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. | Third 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. |
Third 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 Romero
President – CEMEX Mexico
Mid single-digit growth outlook for 2014 CEMEX
Cement volume
guidance for 2014 1
Industrial & Commercial
Low single-digit growth
22%
Infrastructure
Double-digit growth
25%
Formal Residential
Low single-digit decline
16%
Informal Construction
Low single-digit growth
38%
2014 volumes expected to grow in the mid-single digits
(1) Weights are 2013 cement volumes
Significant increase in government’s investment budget CEMEX
Federal investment budget
(US$ B)
YoY
Category 2014 Growth
Roads 5.1 12%
Railways 1.6 910%
Ports 0.3 65%
Other 0.6 7400%
Transportation 7.5 54%
Energy 31.0 10%
Water 3.6 28%
Other 23.7 19%
Total 65.8 18%
Expect on-time execution in 2014
Operating rules for 2014 programs were ready and published before January
Department of Communications & Transportations (SCT) started an early bidding process for major 2014 projects
Technical studies for 92 SCT projects are ready, which would enable biddings
Authorized budget deficit of 1.5% of GDP
Source: SHCP, Cámara Mexicana de la Industria de la Construcción (CMIC), CEMEX estimates
Constant exchange rate: 12.85 MXP/USD
Expect 10% increase in cement volumes from highways and dams in 2014 CEMEX
FONADIN projects pipeline
Project
Investment (US$ M)
Highways 4,425
Palmillas – Apaseo el Grande 725
Tuxpan – Tampico 490
Periférico de Orizaba Stage I 470
Cardel – Poza Rica 450
Jala – Compostela – Banderas 390
15 other 1,900
Water 8,235
Eastern Emitter Tunnel 1,590
Monterrey VI 1,115
El Zapotillo 1,020
WTP Atotonilco 790
Cutzamala System 550
18 other 3,170
Total highways + water 12,660
CEMEX participation in major highways and dams
Recent completion
In construction
In pipeline for 2014
Source: SCT, CONAGUA, CEMEX estimates
Constant exchange rate: 12.85 MXP/USD
FONADIN: National Infrastructure Fund
Largest infrastructure plan in the history of Mexico CEMEX
National Infrastructure Plan 2013-2018
2013-2018 Real growth
(US$ B) versus 2006-2012
Transportation 44 11%
Roads 29 2%
Railways 7 59%
Ports 5 5%
Airports 3 30%
Communications 53 74%
Energy + Water 211 19%
TOTAL 304 25%
Source: Primer Informe de Gobierno (2013), SHCP, INEGI, CEMEX estimates
Value before Volume strategy to deliver growth CEMEX
Ready mix additional services + surcharges
Overtime
Long-distance delivery
Pumping
Minimum order
“Gross Minus Logic” structure for bagged cement
Gross (“street”) price per market
Customer size discount
Payment discount
Pick-up discount
Target price
Transition discount
Promotional discount
Project discount
Invoice price
Volume target fulfillment rebate
Construrama rebate
Net price
Service Manifesto
Includes and clarifies additional services offered
New and integrated solutions for contractors CEMEX
Asphalt projects converted
to concrete pavement
(Thousands of concrete m3)
~2x
233
2013
500
2014e
Cross-selling cement
through concrete salesforce
(Monthly tons per salesman)
~3x
34
2013
100
2014e
Grow the Pie
Growing the pie through new and existing customers
Complete set of solutions for concrete manufacturers CEMEX
Full product offering
% of ready-mixers and concrete products manufacturers buying both cement and aggregates
51%
27%
19%
Jan 13 Nov 13 1Q14e
Differentiated and value-based offer
Integrated cement, aggregates and admixtures offer
Opening of new admixtures plant in central Mexico
Technical assistance and certification
CEMEX
February 13, 2014
Karl Watson Jr.
President - CEMEX USA
We continue to see significant pent-up demand in the housing sector CEMEX
Housing starts
(‘000 units)
2,400
Multi-Family
Single Family
2,000
Steady-
state
1,600
1,600
1,200
800
400
0
00 02 04 06 08 10 12 14e 16e 18e
Cumulative housing excess (shortfall)
(‘000 units)
1,400
(4,600)
02 04 06 08 10 12 14e
Source: U.S. Census, CEMEX estimates
We expect residential to lead growth in 2014 CEMEX
Residential Sector
1 Housing market to continue recovering
2 Record high levels of affordability
3 Inventory levels have bottomed-out
4 Credit availability to gradually improve
’14e Cement
Demand
(YoY %)
18.8%
Non-Residential Sector
1 Commercial real estate prices increasing with occupancy rates and rents increasing
2 Commercial delinquency rates declining
3 Credit availability improving
10.4%
Public Sector
1 State fiscal situation improving, but sector lagging behind
2 MAP21 maintaining grant program, but expires in September
3 MAP21 expanding Federal direct loan program (TIFIA)
4 Concrete becoming more economical and greener than asphalt
3.2%
Source: CEMEX estimates
Most of our main markets expected to grow faster than the 11% national average CEMEX
Cement demand
(M tons, CAGR %)
16.0
05
+13%
9.1
14e
12.9
17e
CALIFORNIA
4.8
05
+20%
2.1
14e
3.7
17e
ARIZONA
15.1
05
15.1
14e
18.3
17e
+7%
TEXAS
12.3
05
+19%
5.6
14e
9.3
17e
FLORIDA
Texas to grow below national average but already above 2005 peak levels
Source: PCA, CEMEX estimates
A long way to go… but we’ve been there before CEMEX
Evolution of cement price and volume in the U.S.
1976 to 2012
Million tons 160 140 120 100 80 60 40 20 0 1976 1982 1988 Domestic Capacity 1994 Cement Demand Real Price Nominal Price 2000 Cement Imports 2006 $/ton 180 160 140 120 100 80 60 40 20 0 2012
Note: Cement demand includes Portland, Blended and Masonry cement. Source: USGS, PCA
Supported by favorable cement supply/demand dynamics CEMEX
U.S. cement supply / demand dynamics
(M tons)
Practical Capacity 72 2011 79 2012 82 2013 89 2014e 97 2015e 108 2016e 116 2017e Cement Demand
Note: Cement demand includes Portland, Blended and Masonry cement.
Source: USGS, PCA and CX estimates
Announced cement price increases for 2014 CEMEX
$7.7/mt (Apr)
$7.7/mt (Oct)
$8.8/mt (Jan)
$8.8/mt (Jul)
$11.0/mt (Apr)
$5.5/mt (Oct)
$8.8/mt (Apr)
$13.8/mt (Apr)
$11.0/mt (Jan)
$8.8/mt (Jul)
CEMEX Cement Plant
Successfully implementing ready-mix fees & surcharges strategy CEMEX
Ready-mix fees & surcharges
(US$ M)
100 +28%
`90
90
80 +60%
70
70
60
+58%
50 44
40
30 28
20
10
0
2011 2012 2013 2014 Target
Managing production costs throughout economic cycle CEMEX
Total production unitary costs
(2009 – 2014e CAGR)
Cement
+0.4%
2009 2014e
Aggregates
+0.3%
2009 2014e
Ready Mix
-1.3%
2009 2014e
Productivity levels above pre-crisis levels for cement and ready mix CEMEX
Productivity
(YoY change in volume per working hour)
Cement
+7% +4%
2007 2011 2012 2013
Aggregates
+6% +2%
2007 2011 2012 2013
Ready Mix
-1% +6%
2007 2011 2012 2013
Driving down our cost base CEMEX
SG&A 1
(as % of Revenue)
11.5% 11.7%
11.1% 10.8%
9.2%
2009 2010 2011 2012 2013
(1) SG&A excluding freight, distribution costs and depreciation
Proactively enhancing our asset base CEMEX
Divested Salem
assets
Odessa cement plant
expansion
Swapped cement
terminal
Sold Couch sand
quarries
Opened Houston
RMX plants
Swapped cement
terminal
JV with
Concrete Supply
Divested block
assets
Divested South
GA RMX plants
CEMEX Footprint
Cement
Ready-Mix
Aggregates
Asphalt
Concrete Pipe
Cement Terminals
Improving working capital management CEMEX
Working Capital
(Average Days)
89 -39%
79
70
60
55
2009 2010 2011 2012 2013
Strong operating leverage embedded in our business CEMEX
Operating leverage
(YoY change) Full-year operating leverage 30% 84% 103% 83% 79% 73% Revenue Revenue US$3.3 B US$3.1 B 43% 42% 38% 12% 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 2012 EBITDA US$43 M
2013 EBITDA US$255 M