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, 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
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨
Contents
| 1. | Press release, dated July 17, 2014, announcing second quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 2. | Second quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 3. | Presentation regarding second quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of 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 17, 2014 |
By: | /s/ Rafael Garza | |||||||
| Name: | Rafael Garza | |||||||||
| Title: | Chief Comptroller | |||||||||
EXHIBIT INDEX
| EXHIBIT |
DESCRIPTION | |
| 1. | Press release, dated July 17, 2014, announcing second quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. | Second quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. | Presentation regarding second quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
Exhibit 1
| Media Relations Daniel Suárez +57 (1) 603-9079 daniel.suarezm@cemex.com |
Investor Relations Patricio Treviño +57 (1) 603-9823 patricio.trevinog@cemex.com |
CEMEX LATAM HOLDINGS REPORTS
SECOND QUARTER 2014 RESULTS
BOGOTÁ, COLOMBIA, JULY 17, 2014 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that its consolidated net sales reached US$441 million during the second quarter of 2014, an increase of 2% versus the second quarter of 2013. Operating EBITDA declined by 14% during the second quarter of 2014 reaching US$142 million compared to the same quarter in 2013, mainly due to scheduled maintenance works.
Carlos Jacks, CEO of CLH, said, “We are pleased with the continued positive volume trend in markets like Colombia and Nicaragua, where we reached a new sales volume record in our cement and aggregates operations. In fact, in Colombia we have reached a new cement volume record in each of the past 5 quarters.”
CLH’s Financial and Operational Highlights
| • | The increase in consolidated net sales during the second quarter of 2014 is explained by higher sales in Colombia. Adjusting for working days, net sales in Colombia have increased by double-digit rates for the past four quarters. |
| • | Compared to the first quarter of 2014, operating EBITDA margin in the second quarter of 2014 in Panama and Costa Rica increased by 3.9 and 4.3 percentage points, respectively. |
| • | On a consolidated basis, as of the end of the second quarter of 2014, there were close to 350 distributors affiliated to the Construrama network, out of which close to 250 stores are already in operation. |
| • | Free cash flow during the first six months of 2014 reached US$130 million, representing an increase of 4% compared to the same period a year ago. |
Carlos Jacks, added, “In light of the strong volume performance during the first six months of 2014 we are increasing our full-year volume expectations in some of our markets. During the second half of 2014, under our housing solutions initiative, we will participate mainly in Colombia in the construction of about 12,000 houses, which should also contribute to higher demand for our products.”
Consolidated Corporate Results
During the second quarter of 2014, controlling interest net income reached approximately US$67 million.
Net debt decreased to US$1,178 million as of the end of the second quarter 2014.
Geographical Markets Highlights
During the second quarter of 2014 operating EBITDA in Colombia decreased by 14% to US$88 million versus US$103 million in the second quarter of 2013, with a year-over-year increase of 9% in net sales reaching US$260 million.
In Panama, operating EBITDA decreased by 17% to US$34 million during the second quarter of 2014, compared to the second quarter of 2013. Net sales reached US$73 million in the second quarter of 2014, a decline of 11% compared to the same period in 2013.
In Costa Rica, operating EBITDA reached US$19 million during the second quarter of 2014, declining by 4% compared to the same period a year ago. Net sales decreased by 4% to US$41 million, compared to the second quarter of 2013.
In the Rest of CLH net sales in the second quarter of 2014 reached US$73 million. Operating EBITDA in the second quarter of 2014 decreased by 1%, versus the comparable period in 2013, reaching US$21 million.
CLH is a regional leader in the building solutions industry that provides high-quality products and reliable service to customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, Guatemala, and Brazil. CLH’s mission is to encourage the development of the countries where it operates through innovative building solutions that foster well-being.
###
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 CLH 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 CLH 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, changes derived from events affecting CEMEX, S.A.B de C.V. and subsidiaries (“CEMEX”) 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. CLH assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating earnings before other expenses, net 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). All of the above items are prepared under 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 CLH believes that they are widely accepted as financial indicators of CLH’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 CLH’s financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
2
Exhibit 2
2014
SECOND QUARTER RESULTS
CEMEX
LATAM
HOLDINGS
Stock Listing Information
Colombian Stock Exchange S.A.
Ticker: CLH
Investor Relations
Patricio Treviño Garza
+57 (1) 603-9823
E-mail: patricio.trevinog@cemex.com
OPERATING AND FINANCIAL HIGHLIGHTS CEMEX LATAM HOLDINGS
| January – June 2014 2013 % Var. |
Second Quarter 2014 2013 % Var. | |||||||||||
| Consolidated cement volume (thousand of metric tons) |
3,931 |
3,620 |
9% |
1,964 |
1,929 |
2% | ||||||
| Consolidated domestic gray cement volume (thousand of metric tons) |
3,500 |
3,258 |
7% |
1,766 |
1,752 |
1% | ||||||
| Consolidated ready-mix volume (thousand of cubic meters) |
1,670 |
1,534 |
9% |
851 |
827 |
3% | ||||||
| Consolidated aggregates volume (thousand of metric tons) |
4,145 |
3,377 |
23% |
2,197 |
1,830 |
20% | ||||||
| Net sales |
864 |
814 |
6% |
441 |
431 |
2% | ||||||
| Gross profit |
420 |
430 |
(2%) |
212 |
217 |
(2%) | ||||||
| Gross profit margin |
48.6% |
52.8% |
(4.2pp) |
48.0% |
50.3% |
(2.3pp) | ||||||
| Operating earnings before other expenses, net |
236 |
260 |
(9%) |
118 |
143 |
(18%) | ||||||
| Operating earnings before other expenses, net, margin |
27.3% |
32.0% |
(4.7pp) |
26.6% |
33.2% |
(6.6pp) | ||||||
| Controlling interest net income |
121 |
141 |
(14%) |
67 |
115 |
(42%) | ||||||
| Operating EBITDA |
283 |
306 |
(8%) |
142 |
166 |
(14%) | ||||||
| Operating EBITDA margin |
32.8% |
37.6% |
(4.8pp) |
32.2% |
38.5% |
(6.3pp) | ||||||
| Free cash flow after maintenance capital expenditures |
142 |
141 |
0% |
62 |
90 |
(32%) | ||||||
| Free cash flow Net debt Total debt Earnings per share Shares outstanding at end of period Employees |
130 |
125 |
4% |
55 |
85 |
(35%) | ||||||
In millions of US dollars, except percentages, employees, and per-share amounts. Shares outstanding at the end of period are presented in millions. Consolidated net sales in the second quarter of 2014 increased to US$441 million, representing a 2% growth when compared to the second quarter of 2013. During the first six months of 2014 consolidated net sales increased by 6% to US$864 million, compared to the same period in 2013. The increase in net sales is explained by higher sales in Colombia. Cost of sales as a percentage of net sales during the first six months of 2014 increased by 4.2pp from 47.2% to 51.4% compared to the same period in 2013. This increase is explained by scheduled maintenance works. Operating expenses as a percentage of net sales during the first six months of 2014 increased by 0.5pp from 20.8% to 21.3% compared to the same period in 2013. Operating EBITDA during the second quarter reached US$142 million, declining by 14% compared to the second quarter of 2013. During the first six months operating EBITDA reached US$283 million, representing a decline of 8% compared to the same period in 2013. This decline in operating EBITDA is mainly explained by scheduled maintenance works. Operating EBITDA margin during the second quarter of 2014 declined by 6.3pp, compared to the second quarter of 2013. During the first six months of 2014 operating EBITDA margin declined by 4.8pp, compared to the same period in 2013. This decline is explained mainly by scheduled maintenance works. Controlling interest net income during the second quarter of 2014 reached US$66.5 million, declining by 42% compared to the second quarter of 2013. During the first six months of 2014 controlling interest net income reached US$121.2 million, declining by 14% compared to the same period in 2013. Total debt at the end of the second quarter of 2014 reached US$1,237 million. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2014 Second Quarter Results Page 2
OPERATING RESULTS CEMEX LATAM HOLDINGS Colombia
| January – June |
Second Quarter | |||||||||||
| 2014 |
2013 |
% Var. |
2014 |
2013 |
% Var. | |||||||
| Net sales |
502 |
447 |
12% |
260 |
238 |
9% | ||||||
| Operating EBITDA |
181 |
190 |
(5%) |
88 |
103 |
(14%) | ||||||
| Operating EBITDA margin |
36.0% |
42.4% |
(6.4pp) |
34.0% |
43.1% |
(9.1pp) | ||||||
| In millions of US dollars, except percentages. |
||||||||||||
| Domestic gray cement |
Ready-mix |
Aggregates | ||||||||||
| Year-over-year percentage variation |
January – |
Second Quarter |
January – |
Second Quarter |
January – |
Second Quarter | ||||||
| Volume |
20% |
9% |
17% |
13% |
32% |
27% | ||||||
| Price (USD) |
(7%) |
(3%) |
(4%) |
(0%) |
(6%) |
(0%) | ||||||
| Price (local currency) |
(2%) |
(2%) |
1% |
1% |
(0%) |
1% | ||||||
In Colombia, during the second quarter our domestic gray cement, ready-mix and aggregates volumes increased by 9%, 13% and 27%, respectively, compared to the second quarter of 2013. For the first six months of 2014, our domestic gray cement, ready-mix and aggregates volumes increased by 20%, 17% and 32%, respectively, compared to the same period in 2013. Construction activity in the second quarter continued driven by residential, benefiting from the government-sponsored housing initiatives. Infrastructure remained an important driver for demand of our products with the execution of several ongoing projects that were awarded in past years. Panama
Net sales Operating EBITDA Operating EBITDA margin January – June 2014 2013 % Var. 149 154 (3%) 66 74 (11%) 44.4% 48.4% (4.0pp) Second Quarter 2014 2013 % Var. 73 81 (11%) 34 40 (17%) 46.4% 49.8% (3.4pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage variation January – June 2014 Second Quarter 2014 January – June 2014 Second Quarter 2014 January – June 2014 Second Quarter 2014 Volume Price (USD) Price (l ocal currency) (19%) 13% 13% (20%) 10% 10% (8%) 0% 0% (22%) (2%) (2%) (6%) (2%) (2%) (16%) (5%) (5%) In Panama during the second quarter our domestic gray cement, ready-mix and aggregates volumes declined by 20%, 22%, and 16%, respectively, compared to the second quarter of 2013. For the first six months of 2014, our domestic gray cement, ready-mix and aggregates volumes declined by 19%, 8% and 6%, respectively, compared to the same period in 2013. The decline in our cement, ready-mix and aggregates volumes was attributed to the effect of the construction workers strike during the second quarter, as well as to lower cement consumption from the Panama Canal expansion project. The residential sector, along with several commercial and ongoing infrastructure projects like Corredor Norte, contributed to demand for our products during the quarter. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2014 Second Quarter Results Page 3
OPERATING RESULTS CEMEX LATAM HOLDINGS Costa Rica
| January – June |
Second Quarter | |||||||||||
| 2014 |
2013 |
% Var. |
2014 |
2013 |
% Var. | |||||||
| Net sales |
76 |
77 |
(1%) |
41 |
42 |
(4%) | ||||||
| Operating EBITDA |
33 |
35 |
(3%) |
19 |
19 |
(4%) | ||||||
| Operating EBITDA margin |
43.9% |
44.9% |
(1.0pp) |
45.9% |
45.8% |
0.1pp | ||||||
| In millions of US dollars, except percentages. |
||||||||||||
| Domestic gray cement |
Ready-mix |
Aggregates | ||||||||||
| Year-over-year percentage variation |
January –June |
Second Quarter |
January – |
Second Quarter |
January – |
Second Quarter | ||||||
| Volume |
7% |
1% |
(19%) |
(21%) |
(4%) |
2% | ||||||
| Price (USD) |
(4%) |
(6%) |
(2%) |
(6%) |
(11%) |
(18%) | ||||||
| Price (local currency) |
4% |
3% |
6% |
3% |
(3%) |
(10%) | ||||||
In Costa Rica, our domestic gray cement and aggregates volumes in the second quarter of 2014 increased by 1% and by 2%, respectively, while our ready-mix volumes declined by 21%, compared to the second quarter of 2013. For the first six months of 2014, our cement volumes increased by 7%, while our ready-mix and aggregates volumes decreased by 19% and 4%, respectively, on a year-over-year basis. During the second quarter infrastructure remained the main driver for cement demand with the ongoing construction of several highways. Our ready-mix volumes in the quarter were affected by the conclusion of several projects that were in execution last year. Rest of CLH Net sales Operating EBITDA Operating EBITDA margin In millions of US dollars, except percentages. January – June 2014 2013 % Var. 143 145 (1%) 40 41 (2%) 28.0% 28.1% (0.1pp) Second Quarter 2014 2013 % Var. 73 74 (1%) 21 21 (1%) 28.8% 28.9% (0.1pp) Year-over-year percentage variation Volume Price (USD) Price (local currency) Domestic gray cement January – June 2014 Second Quarter 2014 1% (1%) (4%) (2%) 0% 1% Ready-mix January – June 2014 Second Quarter 2014 (3%) (5%) 3% 4% 5% 6% Aggregates January – June 2014 Second Quarter 2014 46% 88% (12%) (16%) (7%) (12%) In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the second quarter of 2014 our domestic gray cement and ready-mix volumes decreased by 1% and 5% respectively, while our aggregates volumes increased by 88%, compared to the second quarter of 2013. For the first six months of 2014, our cement and aggregates volumes increased by 1% and 46%, respectively, while our ready-mix volumes declined by 3%, compared to the same period in 2013. The positive performance in our cement volumes in Nicaragua was offset by weak demand conditions in the other markets. The infrastructure and the industrial-and-commercial sectors remained the main drivers for demand of our products. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2014 Second Quarter Results Page 4
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION CEMEX LATAM HOLDINGS Operating EBITDA and free cash flow
| January – June |
Second Quarter | |||||||||||
| 2014 |
2013 |
% Var |
2014 |
2013 |
% Var | |||||||
| Operating earnings before other expenses, net |
236 |
260 |
(9%) |
118 |
143 |
(18%) | ||||||
| + Depreciation and operating amortization |
47 |
46 |
25 |
23 |
||||||||
| Operating EBITDA |
283 |
306 |
(8%) |
142 |
166 |
(14%) | ||||||
| - Net financial expense |
48 |
59 |
23 |
30 |
||||||||
| - Capital expenditures for maintenance |
26 |
8 |
17 |
5 |
||||||||
| - Change in working capital |
9 |
30 |
2 |
(10) |
||||||||
| - Taxes paid |
59 |
65 |
38 |
47 |
||||||||
| - Other cash items (net) |
0 |
3 |
(1) |
3 |
||||||||
| Free cash flow after maintenance capital expenditures |
142 |
141 |
0% |
62 |
90 |
(32%) | ||||||
| - Strategic capital expenditures |
12 |
16 |
7 |
5 |
||||||||
| Free cash flow |
130 |
125 |
4% |
55 |
85 |
(35%) | ||||||
| In millions of US dollars. |
||||||||||||
The free cash flow generated during the quarter was used to reduce debt. Information on Debt Total debt (1)(2) Short-term Long-term Cash and cash equivalents Net debt In millions of US dollars, except percentages. (1) Includes capital leases, in accordance with International Financial Reporting Standards (IFRS). (2) Represents the consolidated balances of CLH and subsidiaries. Second Quarter 2014 1,237 21% 79% 59 1,178 2013 1,479 12% 88% 68 1,411 % Var (16%) (13%) (17%) First Quarter 2014 1,292 27% 73% 58 1,234 Currency denomination US dollar Colombian peso Interest rate Fixed Variable Second Quarter 2014 98% 2% 79% 21% 2013 98% 2% 82% 18% Please refer to definition of terms and disclosure for presentation of financial information. 2014 Second Quarter Results Page 5
OPERATING RESULTS
CEMEX
LATAM
HOLDINGS
Income statement & balance sheet
CEMEX Latam Holdings, S.A. and Subsidiaries
(Thousands of U.S. Dollars, except per share amounts)
January - June Second Quarter
INCOME STATEMENT 2014 2013%Var. 2014 2013 % Var.
Net Sales 863,955 813,991 6% 441,202 430,649 2%
Cost of Sales (444,152) (384,320) (16%) (229,404) (213,990) (7%)
Gross Profit 419,803 429,671 (2%) 211,797 216,659 (2%)
Operating Expenses (184,216) (169,361) (9%) (94,277) (73,857) (28%)
Operating Earnings Before Other Expenses, Net 235,587 260,310 (9%) 117,520 142,802 (18%)
Other expenses, Net 519 (3,315) N/A 743 (883) N/A
Operating Earnings 236,106 256,995 (8%) 118,263 141,919 (17%)
Financial Expenses (47,627) (58,790) 19% (23,224) (29,390) 21%
Other Income (Expenses), Net (4,305) (4,762) 10% (5,159) (2,325) (122%)
Net Income Before Income Taxes 184,174 193,443 (5%) 89,880 110,204 (18%)
Income Tax (62,617) (51,592) (21%) (23,143) 5,132 N/A
Consolidated Net Income 121,557 141,851 (14%) 66,737 115,336 (42%)
Non-controlling Interest Net Income (392) (468) 16% (192) (235) 18%
CONTROLLING INTEREST NET INCOME 121,165 141,383 (14%) 66,545 115,101 (42%)
Operating EBITDA 283,076 306,393 (8%) 142,077 165,657 (14%)
Earnings per share 0.22 0.26 (14%) 0.12 0.21 (42%)
As of June 30 As of June 30
BALANCE SHEET 2014 2013
Total Assets 3,844,232 3,918,453
Cash and Temporary Investments 59,303 67,551
Trade Accounts Receivables 165,809 119,685
Other Receivables 90,306 90,445
Inventories 114,802 88,731
Other Current Assets 23,913 28,542
Current Assets 454,132 394,954
Fixed Assets 1,218,121 1,169,529
Other Assets 2,171,979 2,353,970
Total Liabilities 2,387,169 2,560,614
Current Liabilities 647,117 498,306
Long-Term Liabilities 1,727,100 2,048,203
Other Liabilities 12,952 14,105
Consolidated Stockholders’ Equity 1,450,953 1,357,839
Non-controlling Interest 6,110 5,894
Stockholders’ Equity Attributable to Controlling Interest 1,457,063 1,351,945
Please refer to definition of terms and disclosure for presentation of financial information.
2014 Second Quarter Results Page 6
OPERATING RESULTS
CEMEX
LATAM
HOLDINGS
Income statement & balance sheet
CEMEX Latam Holdings, S.A. and Subsidiaries
(Millions of Colombian Pesos in nominal terms, except per share amounts)
January - June Second Quarter
INCOME STATEMENT 2014 2013 % Var. 2014 2013 % Var.
Net Sales 1,691,252 1,501,968 13% 841,737 809,159 4%
Cost of Sales (869,459) (709,143) (23%) (437,927) (401,308) (9%)
Gross Profit 821,794 792,825 4% 403,810 407,851 (1%)
Operating Expenses, net (360,616) (312,503) (15%) (179,886) (139,900) (29%)
Operating Earnings Before Other Expenses, Net 461,177 480,321 (4%) 223,924 267,950 (16%)
Other Expenses, Net 1,017 (6,117) N/A 1,466 (1,722) N/A
Operating Earnings 462,194 474,205 (3%) 225,390 266,230 (15%)
Financial Expenses (93,234) (108,479) 14% (44,195) (55,345) 20%
Other Income (Expenses) Financial, net (8,427) (8,787) 4% (10,144) (4,382) (131%)
Net Income Before Income Taxes 360,533 356,939 1% 171,051 206,502 (17%)
Income Tax (122,577) (95,197) (29%) (43,255) 7,320 N/A
Consolidated Net Income 237,957 261,742 (9%) 127,796 213,822 (40%)
Non-controlling Interest Net Income (768) (864) 11% (366) (443) 17%
CONTROLLING INTEREST NET INCOME 237,189 260,878 (9%) 127,430 213,379 (40%)
Operating EBITDA 554,141 565,352 (2%) 270,750 311,947 (13%)
Earnings per share 427.93 470.76 (9%) 229.82 384.57 (40%)
As of June 30 As of June 30
BALANCE SHEET 2014 2013
Total Assets 7,231,730 7,558,696
Cash and Temporary Investments 111,559 130,306
Trade Accounts Receivables 311,919 230,872
Other Receivables 169,882 174,468
Inventories 215,964 171,162
Other Current Assets 44,984 55,058
Current Assets 854,309 761,866
Fixed Assets 2,291,516 2,256,022
Other Assets 4,085,905 4,540,808
Total Liabilities 4,490,719 4,939,425
Current Liabilities 1,217,350 961,232
Long-Term Liabilities 3,249,004 3,950,984
Other Liabilities 24,365 27,209
Consolidated Stockholders’ Equity 2,729,518 2,619,271
Non-controlling Interest 11,494 11,369
Stockholders’ Equity Attributable to Controlling Interest 2,741,012 2,607,902
Please refer to definition of terms and disclosure for presentation of financial information.
2014 Second Quarter Results Page 7
OPERATING RESULTS
CEMEX
LATAM
HOLDINGS
Operating Summary per Country
In thousands of U.S. dollars. EBITDA margin as a percentage of net sales.
January - June Second Quarter
NET SALES 2014 2013 % Var. 2014 2013 % Var.
Colombia 501,937 447,343 12% 259,543 238,446 9%
Panama 148,685 153,559 (3%) 72,569 81,106 (11%)
Costa Rica 75,996 77,048 (1%) 40,530 42,158 (4%)
Rest of CLH 143,227 145,097 (1%) 73,397 73,968 (1%)
Others and intercompany eliminations (5,890) (9,056) (35%) (4,839) (5,030) (4%)
TOTAL 863,955 813,991 6% 441,201 430,648 2%
GROSS PROFIT
Colombia 252,396 250,816 1% 124,798 119,919 4%
Panama 71,442 81,020 (12%) 36,173 43,950 (18%)
Costa Rica 40,351 42,072 (4%) 22,227 23,274 (5%)
Rest of CLH 50,218 50,329 (0%) 26,245 26,289 (0%)
Others and intercompany eliminations 5,397 5,434 (1%) 2,354 3,227 (27%)
TOTAL 419,803 429,671 (2%) 211,797 216,659 (2%)
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET
Colombia 163,205 174,138 (6%) 78,655 94,712 (17%)
Panama 57,436 65,443 (12%) 29,294 35,993 (19%)
Costa Rica 29,868 30,794 (3%) 16,862 17,399 (3%)
Rest of CLH 37,440 38,291 (2%) 19,626 20,124 (2%)
Others and intercompany eliminations (52,363) (48,356) 8% (26,917) (25,426) 6%
TOTAL 235,587 260,310 (9%) 117,521 142,802 (18%)
OPERATING EBITDA
Colombia 180,792 189,871 (5%) 88,175 102,669 (14%)
Panama 66,011 74,315 (11%) 33,667 40,403 (17%)
Costa Rica 33,366 34,571 (3%) 18,618 19,308 (4%)
Rest of CLH 40,055 40,760 (2%) 21,165 21,358 (1%)
Others and intercompany eliminations (37,148) (33,124) 12% (19,548) (18,081) 8%
TOTAL 283,076 306,393 (8%) 142,077 165,657 (14%)
OPERATING EBITDA MARGIN
Colombia 36.0% 42.4% 34.0% 43.1%
Panama 44.4% 48.4% 46.4% 49.8%
Costa Rica 43.9% 44.9% 45.9% 45.8%
Rest of CLH 28.0% 28.1% 28.8% 28.9%
TOTAL 32.8% 37.6% 32.2% 38.5%
Please refer to definition of terms and disclosure for presentation of financial information.
2014 Second Quarter Results Page 8
OPERATING RESULTS
CEMEX
LATAM
HOLDINGS
Volume Summary
CLH volume summary
Cement and aggregates: Thousands of metric tons.
Ready-mix: Thousands of cubic meters.
January - June Second Quarter
2014 2013 % Var. 2014 2013 % Var.
Total cement volume 1 3,931 3,620 9% 1,964 1,929 2%
Total domestic gray cement volume 3,500 3,258 7% 1,766 1,752 1%
Total ready-mix volume 1,670 1,534 9% 851 827 3%
Total aggregates volume 4,145 3,377 23% 2,197 1,830 20%
Per-country volume summary
January - June Second Quarter Second Quarter 2014 Vs.
DOMESTIC GRAY CEMENT VOLUME 2014 Vs. 2013 2014 Vs. 2013 First Quarter 2014
Colombia 20% 9% 1%
Panama (19%) (20%) 6%
Costa Rica 7% 1% 1%
Rest of CLH 1% (1%) 2%
READY-MIX VOLUME
Colombia 17% 13% 9%
Panama (8%) (22%) (17%)
Costa Rica (19%) (21%) 11%
Rest of CLH (3%) (5%) (0%)
AGGREGATES VOLUME
Colombia 32% 27% 11%
Panama (6%) (16%) (9%)
Costa Rica (4%) 2% 21%
Rest of CLH 46% 88% 117%
1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.
Please refer to definition of terms and disclosure for presentation of operating results.
2014 Second Quarter Results Page 9
OPERATING RESULTS
CEMEX
LATAM HOLDINGS
Price Summary
Variation in U.S. Dollars
January - June
Second Quarter
Second Quarter 2014 Vs.
DOMESTIC GRAY CEMENT PRICE
2014 Vs. 2013
2014 Vs. 2013
First Quarter 2014
Colombia (7%) (3%) 3%
Panama 13% 10% (5%)
Costa Rica (4%) (6%) (1%)
Rest of CLH (*) (4%) (2%) 2%
READY-MIX PRICE Colombia (4%) (0%) 5%
Panama 0% (2%) (1%)
Costa Rica (2%) (6%) (4%)
Rest of CLH (*) 3% 4% 3%
AGGREGATES PRICE
Colombia (6%) (0%) 8%
Panama (2%) (5%) (6%)
Costa Rica (11%) (18%) (3%)
Rest of CLH (*) (12%) (16%) (18%)
Variation in Local Currency
January - June
Second Quarter
Second Quarter 2014 Vs.
DOMESTIC GRAY CEMENT PRICE
2014 Vs. 2013
2014 Vs. 2013
First Quarter 2014
Colombia (2%) (2%) (2%)
Panama 13% 4% 10% 3% (5%) 1%
Costa Rica
Rest of CLH (*) 0% 1% (1%)
READY-MIX PRICE
Colombia 1% 1% (0%)
Panama 0% (2%) (1%)
Costa Rica 6% 3% (2%)
Rest of CLH (*) 5% 6% 4%
AGGREGATES PRICE
Colombia (0%) 1% 3%
Panama (2%) (3%) (5%) (10%) (6%) (1%)
Costa Rica
Rest of CLH (*)
(7%) (12%) (17%)
(*) Volume weighted-average price.
Please refer to definition of terms and disclosure for presentation of operating results.
2014 Second Quarter Results Page 10
OTHER ACTIVITIES AND INFORMATION
CEMEX
LATAM
HOLDINGS
Tax Matters in Colombia
Regarding the proceeding notice that was notified to CEMEX Colombia on April 1, 2011, in which the Colombian Tax Authority rejected certain deductions taken by CEMEX Colombia in its 2009 year-end tax return for which a final determination was issued by the Colombian Tax Authority on December 15, 2011, on July 14, 2014, CEMEX Colombia was notified about an adverse resolution to the appeal filed by CEMEX Colombia on May 10, 2013, to the resolution confirming the official liquidation notified by the Colombian Tax Authorities to CEMEX Colombia on January 17, 2013. CEMEX Colombia intends to file an appeal before the Colombian Consejo de Estado by not later than July 24, 2014.
CLH announces senior level organizational changes
Andrés Jiménez has been appointed Director of CEMEX Panamá
Alejandro Ramírez has been appointed Director of CEMEX Costa Rica
Yuri de los Santos has been appointed Director of CEMEX Nicaragua & El Salvador
In addition, Ramón Pizá, Director of CEMEX Panamá, and Roberto Pongutá, Director of CEMEX Costa Rica, left CLH and joined CEMEX, S.A.B. de C.V.’s operations.
These changes were effective July 15, 2014.
The rest of the operational and corporate staff functions at CLH remained unchanged.
CLH to build grinding plant in Nicaragua
CLH announced it has started the construction of a new cement grinding plant in Ciudad Sandino, Managua, that is expected to increase its cement production capacity in Nicaragua by approximately 104%.
The investment is approximately US$55 million and will be completed in two phases, reaching an estimated annual cement production capacity of 860,000 tons by 2017.
During the first phase, US$30 million will be invested for infrastructure procurement and the installation of a cement grinding mill with a production capacity of approximately 220,000 tons. This phase is expected to be completed by the end of the second quarter of 2015. The second phase includes the installation of a second cement grinding mill with an annual production capacity of 220,000 tons and an investment of US$25 million, and is expected to be completed by the end of 2017.
“With this increase in production capacity, CLH strengthens its commitment to Nicaragua, creating the conditions to contribute to its development and ensuring the supply of one of the basic materials for housing and infrastructure construction in the country,” said Andres Jimenez, CLH Director in Nicaragua. “We contribute to Nicaragua’s development offering innovative building solutions that promote the welfare of its population.”
More than 200 direct and indirect jobs are expected to be created during the construction phase, with 100 direct and indirect jobs once operations are started.
Additionally, CLH will implement reforestation in the area and community support plans, starting with the launch of its Self-Employment Productions Centers or Centros Productivos de Auto Empleo (CPAs) program, whereby concrete blocks are produced for home improvement in collaboration with communities and local governments.
2014 Second Quarter Results Page 11
DEFINITIONS OF TERMS AND DISCLOSURES
CEMEX
LATAM
HOLDINGS
Methodology for translation and presentation of results
Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement.
For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates used to convert: (i) the balance sheet as of June 30, 2014 and June 30, 2013 was $1,881.19 and $1,929.00 Colombian pesos per US dollar, respectively, and (ii) the consolidated results for the second quarter of 2014 and for the second quarter of 2013 were $1,905.66 and $1,883.09 Colombian pesos per US dollar, respectively.
Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.”
Consolidated financial information
When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries.
Presentation of financial and operating information
Individual information is provided for Colombia, Panama and Costa Rica.
Countries in Rest of CLH include Nicaragua, Guatemala, El Salvador and Brazil.
Exchange rates
January – June 2014 Closing 2013 Closing
January – June 2014 Average 2013 Average
Second quarter 2014 Average 2013 Average
Colombian peso 1,881.19 1,929.00 1,957.57 1,845.19 1,905.66 1,883.09
Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00
Costa Rica colon 548.66 504.53 548.58 505.28 554.90 504.40
Euro 0.7302 0.7685 0.7304 0.7625 0.7297 0.7661
Amounts provided in units of local currency per US dollar.
2014 Second Quarter Results Page 12
DEFINITIONS OF TERMS AND DISCLOSURES
CEMEX
LATAM
HOLDINGS
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).
Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’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 internal policies.
Net debt equals total debt 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 CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.
Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables.
2014 Second Quarter Results Page 13
Exhibit 3
CEMEX | LATAM HOLDINGS
RESULTS
2Q14
July 17, 2 014
|| Forward looking information
CEMEX | LATAM HOLDINGS
This presentation contains certain forward-looking statements and information relating to CEMEX Latam Holdings, S.A. and its subsidiaries (collectively, “CLH”) 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 CLH 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 CLH and CEMEX, S.A.B. de C.V. and its subsidiaries (“CEMEX”) operate, CLH´s ability to comply with the framework agreement signed with CEMEX, CEMEX’s ability to comply with the terms and obligations of the facilities agreement entered into with major creditors and other debt agreements, CLH and 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, CLH and 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 CLH 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 otherwise requires it, all references to prices in this document means our prices for our products.
UNLESS OTHERWISE NOTED, ALL CONSOLIDATED FIGURES ARE PRESENTED IN DOLLARS AND ARE BASED ON THE FINANCIAL STATEMENTS OF EACH COUNTRY PREPARED UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS.
Copyright CEMEX Latam Holdings, S.A. and its subsidiaries.
2
|| Financial Results Summary
CEMEX | LATAM HOLDINGS
Net Sales
Operating EBITDA
(US$M)
(US$M)
+6%
+2%
-8%
-14%
864
814
441
306
431
166
283
142
6M13
6M14
2Q13
2Q14
6M13
6M14
2Q13
2Q14
Net sales growing by 6%
during 6M14, and by 2% during 2Q14, on a year-over-year basis
Colombia is driving growth
with four consecutive quarter of double-digit growth rates in net sales, adjusting for calendar effects
Operating EBITDA
in 6M14 and 2Q14 declined on a year-over-year basis due mainly to scheduled maintenance works
During 6M14
we carried out routine maintenance in most of our kilns; we execute this activity every 12 to 18 months
3
|| Financial Results Summary
CEMEX | LATAM HOLDINGS
Operating EBITDA Margin
(%)
-4.8pp
-6.3pp
38.5%
37.6%
32.8%
32.2%
6M13
6M14
2Q13
2Q14
Sequential increase
in EBITDA margins in Panama and Costa Rica of 3.9pp and 4.3pp, respectively in 2Q14 vs. 1Q14
Scheduled maintenance
explains close to 4pp of the decline of consolidated EBITDA margin during the first half of 2014, compared to last year
Expect improvement
in our consolidated EBITDA margin during the second half of the year
4
|| Consolidated Volumes and Prices
CEMEX | LATAM HOLDINGS
6M14 vs. 6M13
2Q14 vs. 2Q13
2Q14 vs. 1Q14
Volume
7%
1%
2%
Domestic gray cement
Price (USD)
(3%)
(1%)
1%
Price (LtL1)
2%
1%
(4%)
Volume
9%
3%
4%
Ready-mix concrete
Price (USD)
(3%)
(1%)
3%
Price (LtL1)
1%
1%
(3%)
Volume
23%
20%
13%
Aggregates
Price (USD)
(5%)
(3%)
3%
Price (LtL1)
(1%)
(2%)
(4%)
(1) Like-to-like prices adjusted for foreign-exchange fluctuations
Continued growth trend
in consolidated volumes in all of our three products
Record sales volumes
in our cement and aggregates operations in Colombia and Nicaragua in 2Q14
5th consecutive quarter
with new record cement sales in our operations in Colombia
Higher prices in 2Q14
in local currency terms in our cement and ready-mix operations compared to 2Q13
5
|| Operating Efficiency - Energy Strategy
CEMEX | LATAM HOLDINGS
New energy company in Colombia
to support and increase our electricity generation for our consumption allowing us to participate in the electricity market and optimize our electricity costs
Goal to increase generation to 80%
of our electricity needs in Colombia by 2017, from a current level of 62%
New projects
in a co-investment scheme have been identified and should contribute to strengthen our energy strategy
6
CEMEX | LATAM HOLDINGS
BUILDING SOLUTIONS
2Q14 Results
|| Building Solutions - Housing Projects
CEMEX | LATAM HOLDINGS
246
270
1,504
2,861
1,440
1,272
2,716
460
1,218
About 12,000 houses
are expected to be built by CLH during 2014 mainly in Colombia, under the government-sponsored subsidy program for social housing
Housing projects in Colombia
have already been awarded and construction is expected to take place mainly in the second half of 2014
Additional housing projects
in Panama and Costa Rica in 2014
8
CEMEX | LATAM HOLDINGS
REGIONAL HIGHLIGHTS
2Q14 Results
Results Highlights Colombia
|| Colombia – Results Highlights
CEMEX | LATAM HOLDINGS
6M14 6M13 % var 2Q14 2Q13 % var
Net Sales
502 447 12% 260 238 9%
Financial Summary US$ Million
Op. EBITDA
181 190 (5%) 88 103 (14%)
as % net sales
36.0% 42.4% (6.4pp) 34.0% 43.1% (9.1pp)
6M14 vs. 6M13
2Q14 vs. 2Q13
2Q14 vs. 1Q14
Cement
20% 9% 1%
Volume
Ready mix
17% 13% 9%
Aggregates
32% 27% 11%
6M14 vs. 6M13
2Q14 vs. 2Q13
2Q14 vs. 1Q14
Cement
(2%) (2%) (2%) Price
(Local Currency)
Ready mix
1% 1% (0%)
Aggregates
(0%) 1% 3%
Strong volume growth
in all 3 products in 2Q14 vs. 2Q13 driven by housing and infrastructure
Higher prices in 2Q14
in local currency terms, vs. 2Q13, in our ready-mix and aggregates
Double-digit growth
in net sales in 2Q14 adjusting for fewer working days vs. 2Q13
EBITDA margin in 2Q14
declined by 9.1pp on a year-over-year basis, out of which approx. 6pp are explained by scheduled maintenance works
11
|| Colombia – Residential Sector
CEMEX | LATAM HOLDINGS
Residential sector is benefiting from the government-sponsored initiatives
In the January to April 2014 period, permitted area for non-social housing increased by 17%, on a year-over-year basis
2014
Subsidies programs
for social and middle-income housing to continue supporting construction activity
New housing initiatives
for the next four years have been announced by the government and include new free-home and subsidies programs
Our volumes
to the residential sector are expected to grow by about 12% in 2014
12
|| Colombia – Infrastructure Sector
CEMEX | LATAM HOLDINGS
Activity in the infrastructure sector continues to be supported by ongoing projects awarded in past years like Ruta del Sol and
Corredores de la Prosperidad
2014
New infrastructure law
is improving execution of projects
US$ 1.3 B allocated
for infrastructure under the Fondo de Regalías (Fee System); 78% of these projects have already been awarded
Our volumes
to infrastructure sector are expected to grow by about 15% in 2014
13
|| Colombia – Industrial and Commercial Sector
CEMEX | LATAM HOLDINGS
The industrial and commercial sector continued its positive performance during 2Q14
2014
Building permits
for the industrial and commercial sector have increased by 11% in the January to April period, on a year-over-year basis
High construction levels
of office and industrial buildings is expected to continue in 2014
Our volumes
to this sector are expected to increase by a low-to-mid-single digit rate in 2014
14
Results Highlights Panama
|| Panama – Results Highlights
CEMEX | LATAM HOLDINGS
Financial Summary US$ Million
Volume
Price (Local Currency)
Net Sales Op. EBITDA as % net sales
Cement Ready mix Aggregates
Cement Ready mix Aggregates
6M14 149 66 44.4%
6M13 154 74 48.4%
% var (3%) (11%) (4.0pp)
2Q14 73 34 46.4%
2Q13 81 40 49.8%
% var (11%) (17%) (3.4pp)
6M14 vs. 6M13 (19%) (8%) (6%)
6M14 vs. 6M13 13% 0% (2%)
2Q14 vs. 2Q13 (20%) (22%) (16%)
2Q14 vs. 2Q13 10% (2%) (5%)
2Q14 vs. 1Q14 6% (17%) (9%)
2Q14 vs. 1Q14 (5%) (1%) (6%)
Our cement volumes in 2Q14
declined on a year-over-year basis due to lower demand from the Canal expansion project and the effect of the strike of construction workers
Our cement prices in 2Q14
increased by 10% compared to 2Q13 reflecting our price increase earlier in the year as well a mix effect
EBITDA margin in 2Q14
increased by 3.9pp vs. 1Q14 and declined by 3.4pp vs. 2Q13
16
|| Panama – Sector Highlights
CEMEX LATAM HOLDINGS
The residential and the commercial sectors continued to be the main drivers of demand in the quarter
In the January to April 2014 period, building permits for non-residential increased by 72% compared to the same period last year
2014
Positive trend in housing
expected to continue; we anticipate our volumes to the sector to grow by a low-single-digit rate in 2014
Industrial & commercial
are expected to grow slightly, with our volumes increasing by a low-single-digit rate in 2014
Ongoing & new projects
in infrastructure, like the Corredor Norte should support demand going forward
17
Results Highlights Costa Rica
|| Costa Rica – Results Highlights CEMEX LATAM HOLDINGS
6M14 6M13 % var 2Q14 2Q13 % var
Financial
Summary
US$ Million
Net Sales
Op. EBITDA
as % net
sales
76 33 43.9%
77 35 44.9%
(1%) (3%) (1.0pp)
41 19 45.9%
42 19 45.8%
(4%) (4%) 0.1pp
Volume
Price
(Local Currency)
Cement
Ready mix
Aggregates
Cement
Ready mix
Aggregates
6M14 vs. 6M13
7% (19%) (4%)
6M14 vs. 6M13
4% 6% (3%)
2Q14 vs. 2Q13
1% (21%) 2%
2Q14 vs. 2Q13
3% 3% (10%)
2Q14 vs. 1Q14
1% 11% 21%
2Q14 vs. 1Q14
1% (2%) (1%)
Continued positive trend
in our cement volumes driven mainly by highway infrastructure
Sequential volume growth
in ready-mix and aggregates in 2Q14 vs. 1Q14
Higher prices in 2Q14
in our cement and ready-mix, in local currency terms, compared to 2Q13
EBITDA margin in 2Q14
increased by 4.3pp vs. 1Q14 and by 0.1pp vs. 2Q13
19
|| Costa Rica– Sector Highlights
CEMEX LATAM HOLDINGS
Infrastructure remained the main driver of demand in 2Q14 with projects like the Cañas-Liberia highway
2014
Infrastructure projects
are expected to continue driving cement demand; we anticipate our cement volume to the sector to increase by 10% in 2014
Permits for vertical housing
have increased by about 40% in the January to May period, compared to last year
Housing and commercial
projects expected for 2014 should support ready-mix and aggregates demand
20
Results Highlights Rest of CLH
|| Rest of CLH – Results Highlights CEMEX LATAM HOLDINGS
6M14 6M13 % var 2Q14 2Q13 % var
Net Sales 143 145(1%) 73 74 (1%)
Financial Summary US$ Million
Op. EBITDA 40 41(2%) 21 21 (1%)
as % net sales 28.0% 28.1% (0.1pp) 28.8% 28.9% (0.1pp)
6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14
Cement 1% (1%) 2%
Volume Ready mix (3%) (5%) 0%
Aggregates 46% 88% 117%
6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14
Cement 0% 1% (1%)
Price (Local Currency)
Ready mix 5% 6% 4%
Aggregates (7%) (12%) (17%)
Cement volume growth
in 2Q14 vs. 2Q13 in Nicaragua was offset by weak demand conditions in other markets
Record aggregates volumes
in Nicaragua in 2Q14
Continued positive trend
in ready-mix volumes in Guatemala
EBITDA margin in 2Q14
increased by 1.7pp vs. 1Q14 and remained relatively stable vs. 2Q13
22
|| Rest of CLH – Sector Highlights CEMEX LATAM HOLDINGS
Cement volumes in Nicaragua were driven mainly by infrastructure
In Guatemala, our volume performance was supported by commercial projects
2014
In Nicaragua
infrastructure is expected to continue its positive trend
In Guatemala
commercial projects in
Guatemala City are expected to support demand for our products during 2014
In Brazil
we are supplying cement to the government-sponsored social housing program
23
CEMEX
LATAM HOLDINGS
FREE CASH FLOW
2Q14 Results
|| Free Cash Flow
CEMEX LATAM HOLDINGS
US$ Million 6M14 6M13 % var 2Q14 2Q13 % var
Operating EBITDA 283 306 (8%) 142 166 (14%)
- Net Financial Expense 48 59 23 30
- Maintenance Capex 26 8 17 5
- Change in Working Cap 9 30 2 (10)
- Taxes Paid 59 65 38 47
- Other Cash Items (net) 0 3 (1) 3
Free Cash Flow 142 141 0% 62 90 (32%)
After Maintenance Capex
- Strategic Capex 12 16 7 5
Free Cash Flow 130 125 4% 55 85 (35%)
FCF generation in 2Q14
reached US$55 million
Reduced net debt
by about US$56 million during 2Q14 to US$1,178 million
25
CEMEX LATAM HOLDINGS
GUIDANCE
2Q14 Results
|| 2014 Guidance CEMEX LATAM HOLDINGS
Volume YoY%
Cement Ready - Mix Aggregates
Colombia
12% 12% 15%
Cement Ready - Mix Aggregates
Panama
(12%) (5%) (5%)
Cement Ready - Mix Aggregates
Costa Rica
6% 0% 4%
On a consolidated basis
we expect our cement, ready-mix and aggregates volumes to increase by 5%, 8% and 10%, respectively in 2014, compared to 2013
Maintenance capex
is expected to reach US$44 million in 2014
27
CEMEX LATAM HOLDINGS
APPENDIX
2Q14 Results
|| Consolidated debt maturity profile CEMEX LATAM HOLDINGS
624
US$ Million
184
143 143 143
2014 2015 2016 2017 2018
US$1,237 million
Total debt as of June 30, 2014
29
|| Definitions CEMEX LATAM HOLDINGS
6M14 / 6M13:
Cement:
Operating EBITDA:
Maintenance capital expenditures:
Strategic capital expenditures:
LC:
pp:
Like-to-like Percentage Variation (l-t-l%var):
Rest of CLH:
Results for the first six months of the years 2014 and 2013, respectively
When providing cement volume variations, refers to our domestic gray cement operations.
Operating earnings before other expenses, net plus depreciation and operating amortization.
Investments incurred for the purpose of ensuring CLH’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 internal policies.
Investments incurred with the purpose of increasing CLH’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.
Local currency.
Percentage points.
Percentage variations adjusted for investments/divestments and currency fluctuations.
Includes Brazil, Guatemala, El Salvador and Nicaragua.
30
|| Contact information CEMEX LATAM HOLDINGS
Investor Relations Stock Information Calendar of Events
Patricio Treviño Garza Colombian Stock Exchange 22 – Oct – 14
Phone: +57(1) 603-9823 CLH 3Q14 Earnings Report and Conference Call
E-mail: patricio.trevinog@cemex.com
CEMEX LATAM HOLDINGS
RESULTS 2Q14
July 17, 2014