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 October, 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 October 22, 2014, announcing third quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 2. | Third 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 third 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: October 22, 2014 | By: | /s/ Rafael Garza | ||||
| Name: | Rafael Garza | |||||
| Title: | Chief Comptroller | |||||
EXHIBIT INDEX
| EXHIBIT |
DESCRIPTION | |
| 1. | Press release, dated October 22, 2014, announcing third quarter 2014 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. | Third 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 third 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 Paula Andrea Escobar +57 (1) 603-9079 paulaandrea.escobar@cemex.com |
Investor Relations Patricio Treviño +57 (1) 603-9823 patricio.trevinog@cemex.com |
CEMEX LATAM HOLDINGS REPORTS
THIRD QUARTER 2014 RESULTS
| • | Net sales increased by 6% during 3Q14 compared to 3Q13, adjusting for the effect of the housing solutions projects |
| • | Operating EBITDA increased by a double-digit growth rate in 3Q14 compared to 2Q14, with an EBITDA margin expansion of 2.5 percentage points |
BOGOTÁ, COLOMBIA, OCTOBER 22, 2014 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that consolidated net sales reached US$1,324 million during the first nine months of the year, increasing by 3% compared to the same period in 2013. During the third quarter of 2014, net sales declined by 3% versus the third quarter of 2013, explained by a lower revenue contribution from the housing solutions projects this year. Adjusting for the effect of the housing solutions projects, consolidated net sales increased by 5% during the first nine months of the year and by 6% during the third quarter, on a year-over-year basis.
Compared to the second quarter of 2014, operating EBITDA in the third quarter increased by 12%, mainly driven by higher EBITDA generation in Colombia and Panama. Consolidated EBITDA margin in the third quarter increased by 2.5 percentage points, compared to the second quarter of 2014, supported by a margin improvement in most of CLH’s markets.
On a year-over-year basis, operating EBITDA during the third quarter declined by 5% to US$160 million, largely due to a scheduled maintenance work in Colombia, lower prices of our products and the effect of a lower EBITDA contribution in 2014 from the housing solutions projects.
Consolidated cement, ready-mix and aggregates volumes during the first nine months of 2014 increased by 7%, 7% and 19%, respectively, compared to the same period last year.
Carlos Jacks, CEO of CLH, said, “During the third quarter we continued to enjoy a favorable demand environment in most of our markets. In Colombia, once again, we reached a new sales volume record in all three products. In Nicaragua we reported double-digit growth rates in all products, and in our operations in Panama we reached new records in terms of net sales and operating EBITDA.”
CLH’s Financial and Operational Highlights
| • | During the first nine months of the year, cement, ready-mix and aggregates volumes in Colombia increased by 18%, 14% and 24%, respectively, compared to the same period a year ago |
| • | Adjusting for the effect of lower revenue in the housing solutions projects, net sales in Colombia increased by 8% during the third quarter, compared to the same quarter in 2013 |
| • | In Panama, ready-mix and aggregates volumes in the third quarter increased by 4% and 7%, respectively, compared to the same period a year ago. Adjusting for the effect of lower cement consumption for the Panama Canal expansion project this year, cement daily volume sales increased by 8% during the quarter, compared to the third quarter a year ago |
| • | Free cash flow after total capital expenditures reached US$83 million during the third quarter of 2014, an increase of 8% compared to the third quarter of 2013 |
| • | For the first nine months of 2014, the conversion rate of operating EBITDA to free cash flow, before strategic capex and interest expense, reached 74% |
1
Carlos Jacks, added, “We remain very optimistic on the growth prospects for the construction industry throughout the region. Over the past years we have worked intensively to expand our operations in our markets, and we continue strengthening our footprint with expansion projects like the new cement plant in Colombia and the grinding facility in Nicaragua. Our solid asset base together with our unique portfolio of building solutions, will allow us to continue promoting growth in our markets.”
Consolidated Corporate Results
During 3Q14, controlling interest net income was a gain of US$88 million.
Net debt decreased by US$89 million, to US$1,088 million as of the end of the third quarter 2014.
Geographical Markets Third Quarter 2014 Highlights
Operating EBITDA in Colombia decreased by 13% to US$100 million in the third quarter of 2014 versus US$115 million in the third quarter of 2013, with a decline of 7% in net sales reaching US$267 million.
In Panama, operating EBITDA increased by 7% to US$42 million during the quarter. Net sales reached US$93 million in the third quarter of 2014, an increase of 10% compared to the same period in 2013.
In Costa Rica, operating EBITDA reached US$18 million during the quarter, increasing by 2% compared to the same period a year ago. Net sales decreased by 6% to US$38 million, compared to the third quarter of 2013.
In the Rest of CLH region net sales during the quarter reached US$67 million. Operating EBITDA in the quarter increased by 9%, versus the comparable period in 2013, reaching US$20 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
THIRD QUARTER RESULTS
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
2014 Third Quarter Results Page 2 OPERATING AND FINANCIAL HIGHLIGHTS Consolidated cement volume (thousand of metric tons) Consolidated
domestic gray cement volume (thousand of metric tons) Consolidated ready-mix volume (thousand of cubic meters) Consolidated aggregates volume (thousand of metric tons) Net sales Gross profit
Gross profit margin
Operating earnings before other expenses, net
Operating earnings before other expenses, net, margin
Controlling interest net income
Operating EBITDA
Operating EBITDA margin
Free cash flow after maintenance capital expenditures
Free cash flow
Net debt
Total debt
Earnings per share
Shares outstanding at end of period
Employees
January – September Third Quarter
2014
2013
% Var.
2014
2013
% Var.
5,986 5,536 8% 2,055 1,915 7%
5,327 4,994 7% 1,827 1,737 5%
2,624 2,443 7% 954 908 5%
6,499 5,456 19% 2,354 2,079 13%
1,324 1,288 3% 460 474(3%)
656 668(2%) 236 238(1%)
49.5% 51.8% (2.3pp) 51.3% 50.2% 1.1pp
372 405(8%) 136 145(6%)
28.1% 31.5% (3.4pp) 29.6% 30.6% (1.0pp)
209 238 (12%) 88 96 (9%)
443 474 (7%) 160 168 (5%)
33.4% 36.8% (3.4pp) 34.7% 35.5% (0.8pp)
253 232 9% 111 91 22%
213 201 6% 83 76 8%
1,088 1,345 (19%) 1,088 1,345 (19%)
1,142 1,424 (20%) 1,142 1,424 (20%)
0.38 0.43 (12%) 0.16 0.17 (9%)
556 556 0% 556 556 0%
4,877 4,106 19% 4,877 4,106 19%
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 during the third quarter of 2014 declined by 3% compared to the third quarter of 2013. Adjusting for the effect of lower revenue from our
housing solutions projects this year, consolidated net sales increased by 6% during the third quarter of 2014, compared to the same period in 2013. Cost of sales as a percentage of net sales declined by 1.1pp from 49.8% to 48.7% during the third
quarter of 2014 compared to last year. Operating expenses as a percentage of net sales during the third quarter increased by 2.1pp from 19.6% to 21.7% compared to the same period in 2013.
Operating EBITDA during the third quarter reached US$160 million, declining by 5% compared to the third quarter of 2013. This decline is mainly explained by the effect of one
scheduled maintenance work in Colombia, lower prices of our products and a lower EBITDA contribution from our housing solutions projects this year. Operating EBITDA margin during the third quarter of 2014 declined by 0.8pp, compared to the third
quarter of 2013. Controlling interest net income during the third quarter of 2014 reached US$88 million, declining by 9% compared to the third quarter of 2013. Total debt at the end of the third quarter of 2014 reached US$1,142 million. Please refer
to definition of terms and disclosure for presentation of financial and operating information.
OPERATING RESULTS
Colombia
January – September Third Quarter
2014 2013 % Var. 2014 2013 % Var.
Net sales 769 735 5% 267 287 (7%)
Operating EBITDA 281 305 (8%) 100 115 (13%)
Operating EBITDA margin 36.5% 41.5% (5.0pp) 37.5% 40.0% (2.5pp)
In millions of US dollars,
except percentages.
Domestic gray cement Ready-mix Aggregates
Year-over-year
percentage variation January – September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014
Volume 18% 14% 14% 8% 24% 12%
Price (USD) (7%) (8%) (3%) (1%) (4%) (3%)
Price (local currency) (3%) (6%) 1% (0%) (1%) (1%)
In Colombia, during the third quarter our domestic gray cement, ready-mix and aggregates volumes increased by 14%, 8% and 12%, respectively, compared to the third
quarter of 2013. For the first nine months of 2014, our domestic gray cement, ready-mix and aggregates volumes increased by 18%, 14% and 24%, respectively, compared to the same period in 2013.
Construction activity in the third quarter was driven by a positive performance in all demand segments. The residential sector continued its positive trend. Infrastructure remained
also an important driver for demand of our products with the execution of several ongoing projects that were awarded in past years.
Panama
January – September Third Quarter
2014 2013 % Var. 2014 2013 % Var.
Net sales 241 238 2% 93 84 10%
Operating EBITDA 108 114 (5%) 42 40 7%
Operating EBITDA margin 44.9% 47.9% (3.0pp) 45.7% 47.1% (1.4pp)
In millions of US dollars,
except percentages.
Domestic gray cement Ready-mix Aggregates
Year-over-year
percentage variation January – September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014
Volume (14%) (6%) (4%) 4% (1%) 7%
Price (USD) 12% 11% (0%) (1%) (2%) (2%)
Price (local currency) 12% 11% (0%) (1%) (2%) (2%)
In Panama during the third quarter our domestic gray cement declined by 6% while our ready-mix and aggregates volumes increased by 4% and 7% respectively, compared
to the third quarter of 2013. For the first nine months of 2014, our domestic gray cement, ready-mix and aggregates volumes declined by 14%,4% and 1%, respectively, compared to the same period in 2013.
The decline in our cement volumes during the quarter, on a year over year basis, was attributed to lower consumption from the Panama Canal expansion project. The residential sector
remained the main driver for demand, along with several ongoing infrastructure projects like Corredor Norte.
Please refer to definition of terms and disclosure for
presentation of financial and operating information.
2014 Third Quarter Results
Page 3
OPERATING RESULTS
Costa Rica
January – September Third Quarter
2014 2013 % Var. 2014 2013 % Var.
Net sales 114 117 (3%) 38 40 (6%)
Operating EBITDA 51 52 (1%) 18 17 2%
Operating EBITDA margin 44.9% 44.3% 0.6pp 47.1% 43.1% 4.0pp
In millions of US dollars, except
percentages.
Domestic gray cement Ready-mix Aggregates
Year-over-year
percentage variation January –September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014
Volume 1% (10%) (24%) (32%) (0%) 7%
Price (USD) (3%) (2%) (4%) (6%) (11%) (10%)
Price (local currency) 5% 5% 4% 1% (3%) (4%)
In Costa Rica, our domestic gray cement and ready mix volumes in the third quarter of 2014 declined by 10% and by 32%, respectively, while our aggregates volumes
increased by 7%, compared to the third quarter of 2013. For the first nine months of 2014, our cement volumes increased by 1%, while our ready-mix volumes decreased by 24% and our aggregates volumes remained stable, on a year-over-year basis.
Construction activity in Costa Rica slowed down during the quarter, due to delays in the start of new projects. Ongoing infrastructure projects, like the
Cañas-Liberia highway, remained the main driver of demand during the third quarter.
Rest of CLH
January – September Third Quarter
2014 2013 % Var. 2014 2013 % Var.
Net sales 210 211 (0%) 67 65 2%
Operating EBITDA 60 59 1% 20 18 9%
Operating EBITDA margin 28.6% 28.1% 0.5pp 29.8% 28.0% 1.8pp
In millions of US dollars, except
percentages.
Domestic gray cement Ready-mix Aggregates
Year-over-year
percentage variation January – September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014 January – September
2014 Third Quarter
2014
Volume (0%) (2%) (0%) 6% 57% 81%
Price (USD) (2%) 2% 5% 9% (9%) (3%)
Price (local currency) 1% 3% 7% 11% (4%) 2%
In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the third quarter of 2014 our domestic gray cement decreased by 2%,
while our ready-mix and aggregates volumes increased by 6% and 81%, compared to the third quarter of 2013. For the first nine months of 2014, our cement and ready-mix volumes remained flat, while our aggregates volumes increased by 57%, compared to
the same period in 2013.
Ongoing infrastructure projects like the Izapa-Nejapa highway, along with the housing sector, 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 Third Quarter Results
Page 4
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION
Operating EBITDA and free cash flow
January – September Third Quarter
2014 2013 % Var 2014 2013 % Var
Operating earnings before other expenses,
net 372 405 (8%) 136 145 (6%)
+ Depreciation and operating amortization 71 69 23 23
Operating EBITDA 443 474 (7%) 160 168 (5%)
- Net financial expense 75 87 28 28
- Capital expenditures for maintenance 38 22 12 14
- Change in working capital (3) 43 (13) 13
- Taxes paid 81 85 22 20
- Other cash items (net) (0) 5 0 2
Free cash flow after maintenance capital expenditures 253 232 9% 111 91 22%
- Strategic
capital expenditures 40 31 28 15
Free cash flow 213 201 6% 83 76 8%
In
millions of US dollars.
The free cash flow generated during the quarter was used to reduce debt.
Information on Debt
Third Quarter Second Third Quarter
Quarter
2014 2013 % Var 2014 2014 2013
Total debt (1)(2) 1,142 1,424(20%) 1,237 Currency denomination
Short- term 22% 12% 21% US
dollar 98% 96%
Long -term 78% 88% 79% Colombian peso 2% 4%
Cash and cash
equivalents 54 79 (32%) 59 Interest rate
Net debt 1,088 1,345 (19%) 1,178 Fixed 78% 82%
Variable 22% 18%
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.
Please refer to definition
of terms and disclosure for presentation of financial information.
2014 Third Quarter Results Page 5
OPERATING RESULTS
Income statement &
balance sheet
CEMEX Latam Holdings, S.A. and Subsidiaries
(Thousands of U.S.
Dollars, except per share amounts)
January – September Third Quarter
INCOME STATEMENT 2014
2013
% Var.
2014
2013
% Var.
Net Sales 1,324,298 1,287,765 3% 460,343 473,774 (3%)
Cost of Sales (668,296)
(620,230) (8%) (224,145) (235,910) 5%
Gross Profit 656,003 667,535 (2%) 236,198 237,864 (1%)
Operating Expenses (284,088) (262,110) (8%) (99,865) (92,749) (8%)
Operating Earnings
Before Other Expenses, Net 371,914 405,425 (8%) 136,333 145,115 (6%)
Other expenses, Net (3,863) (4,674) 17% (4,382) (1,359) (222%)
Operating Earnings 368,051 400,751 (8%) 131,951 143,756 (8%)
Financial Expenses (75,220)
(86,786) 13% (27,595) (27,996) 1%
Other Income (Expenses), Net 5,564 (4,909) N/A 9,870 (147) N/A
Net Income Before Income Taxes 298,395 309,056 (3%) 114,226 115,613 (1%)
Income Tax (88,592)
(70,487) (26%) (25,975) (18,895) (37%)
Consolidated Net Income 209,803 238,569 (12%) 88,251 96,718 (9%)
Non-controlling Interest Net Income (850) (887) 4% (458) (419) (9%)
CONTROLLING
INTEREST NET INCOME 208,953 237,682 (12%) 87,793 96,299 (9%)
Operating EBITDA 442,836 474,413 (7%) 159,766 168,020 (5%)
Earnings per share 0.38 0.43 (12%) 0.16 0.17 (9%)
As of September 30 As of September 30
BALANCE SHEET 2014 2013
Total Assets 3,751,678 3,980,631
Cash and Temporary Investments 53,870 78,996
Trade Accounts Receivables 168,361 124,965
Other Receivables 107,901 146,557
Inventories 107,516 92,501
Other Current Assets 21,375 25,244
Current Assets 459,022 468,263
Fixed Assets 1,183,659 1,194,790
Other Assets 2,108,997 2,317,578
Total Liabilities 2,276,070 2,554,691
Current Liabilities 689,167 584,424
Long-Term Liabilities 1,573,820 1,958,706
Other Liabilities 13,083 11,561
Consolidated Stockholders’ Equity 1,475,608 1,425,940
Non-controlling Interest 6,256
6,006
Stockholders’ Equity Attributable to Controlling Interest 1,469,353 1,419,934
Please refer to definition of terms and disclosure for presentation of financial information.
2014 Third Quarter Results Page 6
OPERATING RESULTS
Income statement &
balance sheet
CEMEX Latam Holdings, S.A. and Subsidiaries
(Millions of
Colombian Pesos in nominal terms, except per share amounts)
January – September Third Quarter
INCOME STATEMENT 2014
2013
% Var. 2014
2013
% Var.
Net Sales 2,584,581 2,405,479 7% 892,992 906,552 (1%)
Cost of Sales(1,304,287)(1,158,558)(13%)(434,805) (451,407) 4%
Gross Profit 1,280,295
1,246,921 3% 458,186 455,145 1%
Operating Expenses, net(554,444)(489,608)(13%)(193,722) (177,472) (9%)
Operating Earnings Before Other Expenses, Net 725,851 757,313(4%) 264,464 277,673 (5%)
Other
Expenses, Net(7,540)(8,731) 14% (8,500) (2,600) (227%)
Operating Earnings 718,311 748,582(4%) 255,964 275,073 (7%)
Financial Expenses(146,804)(162,112) 9%(53,530)(53,570) 0%
Other Income (Expenses) Financial,
net 10,859(9,170) N/A 19,146(281) N/A
Net Income Before Income Taxes 582,366 577,300 1% 221,580 221,222 0%
Income Tax(172,901) (131,666) (31%) (50,387) (36,155) (39%)
Consolidated Net Income 409,465
445,634(8%) 171,193 185,067(7%)
Non-controlling Interest Net Income(1,658)(1,657)(0%)(888)(802)(11%)
CONTROLLING INTEREST NET INCOME 407,806 443,977(8%) 170,304 184,265(8%)
Operating EBITDA
864,267 886,180(2%) 309,911 321,502(4%)
Earnings per share 736.37 798.44(8%) 306.27 331.38(8%)
As of September 30 As of September 30
BALANCE SHEET 2014 2013
Total Assets 7,610,204 7,621,515
Cash and Temporary Investments 109,274 151,250
Trade Accounts Receivables 341,518 239,264
Other Receivables 218,874 280,605
Inventories 218,093 177,107
Other Current Assets 43,359 48,333
Current Assets 931,118 896,559
Fixed Assets 2,401,028 2,287,605
Other Assets 4,278,058 4,437,351
Total Liabilities 4,616,962 4,891,338
Current Liabilities 1,397,961 1,118,967
Long-Term Liabilities 3,192,463 3,750,236
Other Liabilities 26,538 22,135
Consolidated Stockholders’ Equity 2,993,242 2,730,177
Non-controlling Interest 12,689 11,500
Stockholders’ Equity Attributable
to Controlling Interest 2,980,553 2,718,677
Please refer to definition of terms and disclosure for presentation of financial information.
2014 Third Quarter Results Page 7
OPERATING RESULTS
Operating Summary per Country
In thousands of U.S. dollars. EBITDA margin as a percentage of net sales.
January – September Third Quarter
NET SALES 2014
2013
% Var. 2014
2013
% Var.
Colombia 768,629 734,669 5% 266,692 287,326 (7%)
Panama 241,262 237,654 2%
92,577 84,095 10%
Costa Rica 113,729 117,241 (3%) 37,733 40,193 (6%)
Rest of
CLH 210,157 210,588 (0%) 66,930 65,491 2%
Others and intercompany eliminations (9,478) (12,387) 23% (3,588) (3,331) (8%)
TOTAL 1,324,298 1,287,765 3% 460,343 473,774 (3%)
GROSS PROFIT
Colombia 385,990 399,365 (3%) 133,594 148,549 (10%)
Panama 118,353 124,718 (5%) 46,912 43,698
7%
Costa Rica 61,561 63,534 (3%) 21,210 21,462 (1%)
Rest of CLH 75,769 73,799
3% 25,552 23,470 9%
Others and intercompany eliminations 14,329 6,119 134% 8,931 685 1204%
TOTAL 656,003 667,535 (2%) 236,198 237,864 (1%)
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET
Colombia 253,865 281,062 (10%) 90,660 106,924 (15%)
Panama 95,471 100,649
(5%) 38,035 35,206 8%
Costa Rica 45,857 46,217 (1%) 15,989 15,423 4%
Rest of
CLH 56,206 55,441 1% 18,767 17,150 9%
Others and intercompany eliminations (79,485) (77,944) (2%) (27,117) (29,588) 8%
TOTAL 371,914 405,425 (8%) 136,333 145,115 (6%)
OPERATING EBITDA
Colombia 280,678 304,683(8%) 99,886 114,812 (13%)
Panama 108,343 113,930(5%) 42,331 39,615 7%
Costa Rica 51,121 51,899(1%) 17,755 17,328 2%
Rest of CLH 60,009 59,124 1%
19,954 18,364 9%
Others and intercompany eliminations (57,314) (55,223) (4%) (20,160) (22,099) 9%
TOTAL 442,836 474,413(7%) 159,766 168,020 (5%)
OPERATING EBITDA MARGIN
Colombia 36.5% 41.5% 37.5% 40.0%
Panama 44.9% 47.9% 45.7% 47.1%
Costa Rica 44.9% 44.3% 47.1% 43.1%
Rest of CLH 28.6% 28.1% 29.8% 28.0%
TOTAL 33.4% 36.8% 34.7% 35.5%
Please refer to definition of terms and disclosure for
presentation of financial information.
2014 Third Quarter Results Page 8
OPERATING RESULTS
Volume Summary
CLH volume summary
Cement and aggregates: Thousands of metric tons.
Ready-mix: Thousands of cubic meters.
January – September Third Quarter
2014 2013% Var. 2014 2013 % Var.
Total cement volume 1 5,986 5,536 8% 2,055 1,915 7%
Total domestic gray cement volume 5,327 4,994 7% 1,827 1,737 5%
Total
ready-mix volume 2,624 2,443 7% 954 908 5%
Total aggregates volume 6,499 5,456 19% 2,354 2,079 13%
Per-country volume summary
January—September Third Quarter Third Quarter 2014 Vs.
DOMESTIC GRAY CEMENT VOLUME 2014 Vs. 2013 2014 Vs. 2013 Second Quarter 2014
Colombia 18% 14% 6%
Panama(14%)
1% (6%)
(10%) 21%
(9%)
Costa Rica
Rest of CLH(0%) (2%) (10%)
READY-MIX VOLUME
Colombia 14% 8% 8%
Panama(4%)
(24%) 4%
(32%) 40%
(11%)
Costa Rica
Rest of CLH(0%) 6% 9%
AGGREGATES VOLUME
Colombia 24% 12% 6%
Panama(1%) 7% 25%
Costa Rica(0%)
57% 7%
81% 12%
(13%)
Rest of CLH
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 Third Quarter Results Page 9
OPERATING RESULTS
Price Summary
Variation in U.S. Dollars
January - September Third Quarter Third Quarter 2014 Vs.
DOMESTIC GRAY CEMENT PRICE 2014 Vs. 2013 2014 Vs. 2013 Second Quarter 2014
Colombia(7%)(8%)(5%)
Panama 12% 11% 0%
Costa Rica(3%)(2%) 3%
Rest of CLH (*)(2%) 2% 1%
READY-MIX PRICE
Colombia(3%)(1%)(2%)
Panama(0%)
(4%)(1%)
(6%) 2%
3%
Costa Rica
Rest of CLH (*) 5% 9% 2%
AGGREGATES PRICE
Colombia(4%)(3%)(4%)
Panama(2%)(2%) 2%
Costa Rica(11%)(10%)(1%)
Rest of CLH (*)(9%)(3%) 5%
Variation in Local Currency
January - September Third Quarter Third Quarter 2014 Vs.
DOMESTIC GRAY CEMENT PRICE 2014 Vs.
2013 2014 Vs. 2013 Second Quarter 2014
Colombia(3%)(6%)(3%)
Panama 12%
5% 11%
5% 0%
1%
Costa Rica
Rest of CLH (*) 1% 3%(0%)
READY-MIX PRICE
Colombia 1%(0%)(1%)
Panama(0%)(1%) 2%
Costa Rica 4% 1% 1%
Rest of CLH (*) 7% 11% 2%
AGGREGATES PRICE
Colombia(1%)(1%)(3%)
Panama(2%)
(3%)(2%)
(4%) 2%
(2%)
Costa Rica
Rest of CLH (*)(4%) 2% 7%
(*) Volume weighted-average price.
Please refer to definition of terms and disclosure for
presentation of operating results.
2014 Third Quarter Results Page 10
OTHER ACTIVITIES AND INFORMATION
CLH announces a
new cement plant in Colombia
CLH announced it will begin the construction of a cement plant in Colombia. The total investment is expected to reach approximately
US$340 million and to increase CLH’s cement production capacity in Colombia from 4.5 to close to 5.5 million tons per year.
The first phase of this
project includes the construction of a new grinding mill that is expected to start cement production during the second quarter of 2015. The rest of the plant should be completed during the second half of 2016. The plant will operate using modern and
efficient technology to comply with high quality and environmental standards.
This facility will be strategically located in the Antioquia department. This region
has enjoyed high levels of economic growth and is expected to further benefit from the construction of infrastructure projects under the highway concession program in Colombia.
Carlos Jacks, CEO of CLH, said: “This plant will strengthen our position in Colombia, allowing us to capitalize on the increasing levels of construction activity. We will be
closer to our customers tailoring our unique portfolio of innovative building solutions to suit their evolving needs.”
“The complete project will be
financed with our free cash flow. It is expected to generate approximately 1,000 direct jobs during the construction phase and about 300 jobs once the operations begin, reiterating our commitment to promote the development of our communities.”
Neighboring communities will also benefit from CLH’s social initiatives and inclusive businesses like Bloqueras Solidarias and Patrimonio Hoy, community
training and education programs, team-sports facilities, among others.
With this project CLH continues its expansion in Colombia. In 2013, CLH started operations
in a new cement grinding plant in the Caribbean coast in Colombia, with an investment of about US$50 million. Since 2010, the number of ready-mix plants in CLH’s operations in Colombia has more than doubled, with a significant increase in the
ready-mix and cement fleet.
2014 Third Quarter Results Page11
DEFINITIONS OF TERMS AND DISCLOSURES
Methodology
for translation and presentation of results
Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the
financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement.
For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ 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 September 30, 2014 and
September 30, 2013 was $2,028.48 and $1,914.65 Colombian pesos per US dollar, respectively, and (ii) the consolidated results for the third quarter of 2014 and for the third quarter of 2013 were $1,939.84 and $1,913.47 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 – September January – September Third quarter
2014 2013 2014
2013 2014 2013
Closing Closing Average Average Average Average
Colombian peso
2,028.48 1,914.65 1,951.66 1,867.95 1,939.84 1,913.47
Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00
Costa Rica colon 545.52 505.57 547.36 505.75 544.93 506.68
Euro 0.7917 0.7393 0.7421 0.7582
0.7655 0.7495
Amounts provided in units of local currency per US dollar.
2014
Third Quarter Results Page 12
DEFINITIONS OF TERMS AND DISCLOSURES
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 Third Quarter Results Page 13
| Exhibit 3
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Exhibit 3
RESULTS 3Q14
October 22, 2014
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Forward looking information
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 satisfy its obligations under its debt agreements as well as under the indentures that govern its high yield notes, 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 |
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Financial Results Summary
Net Sales
(US$M)
Operating EBITDA
(US$M)
+3% -3% -7% -5%
1,324
1,288
474
460
474
168
443
160
9M13 9M14 3Q13 3Q14 9M13 9M14 3Q13 3Q14
High growth in net sales of 6% in 3Q14 and 5% in 9M14, compared to last year, adjusting for the effect of lower revenue in our housing solutions projects this year
Sequential EBITDA growth in 3Q14 of 12%, driven by Colombia and Panama, with higher volumes and lower maintenance works, compared to 2Q14
EBITDA decline YoY in 3Q14 mainly due to one scheduled maintenance work, lower prices in our products, and a lower EBITDA contribution from our housing solutions projects
3
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Financial Results Summary
Operating EBITDA Margin
(%)
9M13 36.8%
-3.4pp .
9M14 33.4%
3Q13 35.5%
-0.8pp .
3Q14 34.7%
2Q14 32.2%
+2.5pp
3Q14 34.7%
Sequential increase in EBITDA margins in most of our markets
Sequential margin growth of 2.5pp during 3Q14 vs. 2Q14 mainly explained by less scheduled maintenance
Lower EBITDA margin in 3Q14 YoY due to one scheduled maintenance and the effect of lower prices in our products
4
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Consolidated Volumes and Prices
Domestic gray cement
Ready-mix concrete
Aggregates
Volume
Price (USD)
Price (LtL1 )
Volume
Price (USD)
Price (LtL1 )
Volume
Price (USD)
Price (LtL1 )
9M14 vs. 9M13
7%
(3%)
1%
7%
(2%)
1%
19%
(5%)
(1%)
3Q14 vs. 3Q13
5%
(2%)
(1%)
5%
(1%)
0%
13%
(4%)
(2%)
3Q14 vs. 2Q14
3%
(2%)
(3%)
12%
0%
(1%)
7%
(3%)
(3%)
(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 all three products in Colombia, and in aggregates and ready-mix in Panama, over the past four years
6th consecutive quarter with new record cement volume sales in our operations in Colombia
Higher prices in 3Q14 in local currency terms YoY in our cement operations throughout our markets, were offset by lower prices in Colombia
5
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CAPACITY EXPANSION PROJECTS
3Q14 Results
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Capacity Expansion Project—Colombia
Autopista Conexión Norte
Río Magdalena
Project to increase navegability
Railroad Concession
Autopistaal Mar 2
AutopistaRío Magdalena 1 & 2
Medellín
AutopistaAl Mar 1
Connection to Rutadel Sol
New Concessions (4G)
AutopistasPacífico1, 2 & 3
Existing Concessions
Source: Based on information from Agencia Nacional de Infraestructura
New greenfield project in Colombia increasing our cement capacity in the country from 4.5 to close to 5.5 million tons per year with an investment of about US$340 million
Cement production to start in 2Q15 with the completion of the grinding phase; clinker production line to start operations in 2H16
Strategically located in Antioquia a region that will benefit from the construction of highway infrastructure projects
Higher operating efficiencies Fuel and electricity costs at this new plant are expected to be 15% and 10% lower than our current cement operation
Lower distribution expenses are expected in our cement network once we start operations
7
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Capacity Expansion Project - Nicaragua
New cement grinding plant
Pacific Ocean
Atlantic Ocean
Managua
Current Asset Base
Cement Plant
Ready-mix Plant
Aggregates Quarry
New cement grinding plant to increase cement production capacity in Nicaragua by 440 thousand tons reaching 860 thousand tons per year in 2017, with a total investment of US$55 million in Ciudad Sandino, Managua
Construction in two phases with first phase including a 220 thousand ton mill and representing an investment of US$30 million; second phase includes a second 220 thousand ton mill with an investment of US$25 million
First phase to be completed in 2Q15 and the second phase of construction is expected to finalize in 2017; construction is progressing according to schedule
New capacity to support growth and allow CLH to continue participating in the development of Nicaragua
8
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Uniquely Positioned to Participate in Infrastructure Projects in the Region
ENHANCED ASSET FOOTPRINT
ROBUST COMMERCIAL OFFERINGS
Ready-mix plants
Distribution centers
In Colombia since 2010 we have
More than doubled the number of ready-mix plants
Expanded our ready-mix operation from 11 cities to 30
Doubled our distribution centers
Opened grinding mill in Caribbean coast last year
Started construction of a new cement plant
Portfolio of Infrastructure Solutions
Design and construction of urban and highway pavement
Pre-cast concrete elements for bridges
Project analysis, financial planning, structuring and management
Use of specialty products
9
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REGIONAL HIGHLIGHTS
3Q14 Results
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Results Highlights Colombia
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Colombia –Results Highlights
9M14 9M13% var 3Q14 3Q13% var
Net Sales 768.6 734.7 5% 266.7 287.3(7%)
Financial Summary US$ Million
Op. EBITDA 280.7 304.7(8%) 99.9 114.8(13%)
as % net sales 36.5% 41.5% (5.0pp) 37.5% 40.0% (2.5pp)
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement 18% 14% 6%
Volume Ready mix 14% 8% 8%
Aggregates 24% 12% 6%
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement (3% )(6%) (3%)
Price
(Local Currency) Ready mix 1% 0%(1%)
Aggregates (1%) (1%) (3%)
Double-digit growth in volumes in all of our three products during 9M14 compared to 9M13
High growth in net sales of 8% in 3Q14 vs. 3Q13, and 9% in 9M14 vs. 9M13, when adjusting for the effect of lower revenue in our housing solutions projects this year
Double-digit growth in EBITDA in 3Q14 vs. 2Q14, with a margin expansion of 3.5pp
Lower EBITDA in 3Q14 driven by one scheduled maintenance, lower prices in our products and a lower contribution from our housing solutions projects this year, vs. 3Q13
12
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Colombia –Residential Sector
Continued positive trend in residential sector supported by government-sponsored initiatives and a favorable performance in self-construction
In the January to August 2014 period, permitted area for non-social housing increased by 11%, on a year-over-year basis
Subsidies program for social housing should start construction soon and will continue supporting activity in the sector
Expect to build ~700 houses in 4Q14, under our housing solutions projects, after delays in the execution of the subsidies program; construction is expected to continue in 2015 and 2016
New free-home program expected to be announced before end of year
Our volumes to the residential sector are expected to grow by about 13% in 2014
13
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Colombia –Infrastructure Sector
Activity in the infrastructure sector continues to be supported by ongoing projects awarded in past years like Ruta del Sol and Corredoresde la Prosperidad
US$ 1.7 B allocated for infrastructure under the Royalty Fund; about 80% of these projects have been awarded
7 highway projects of 4G have already been awarded; the remaining 2 under the first wave of projects are expected to be awarded during the remainder of the year
Other projects awarded include the Río Magdalena project to improve its navigability, as well as four airport concessions
Our volumes to infrastructure sector are expected to grow by about 16% in 2014
14
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Colombia – Industrial and Commercial Sector
Activity in the industrial and commercial sectors has accelerated in 2014
Building permits for the industrial and commercial sector have increased by 30% in the January to August period, on a year-over-year basis
High activity levels of office and commercial buildings with permits growing by close to 80% and 40%, respectively in the January to August period, compared to last year
Our volumes to this sector are now expected to increase by a double-digit rate in 2014, in light of the recent strong performance
15
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Results Highlights Panama
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Panama – Results Highlights
Financial Summary US$ Million
9M14 9M13% var 3Q14 3Q13% var
Net Sales 241.3 237.7 2% 92.6 84.1 10%
Op. EBITDA 108.3 113.9 (5%) 42.3 39.6 7%
as % net
sales 44.9% 47.9% (3.0pp) 45.7% 47.1% (1.4pp)
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement (14%) (6%) 21%
Volume Ready mix (4%) 4% 40%
Aggregates (1%) 7% 25%
Price (Local Currency)
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement 12% 11% 0%
Ready mix 0% (1%) 2%
Aggregates (2%) (2%) 2%
8% volume growth in 3Q14 in our cement daily sales, compared to 3Q13, adjusting for the effect of lower cement consumption in the Canal expansion project this year
New volume record in 3Q14 in our aggregates, and also new volume record in our ready-mix volumes, over the past four years
New sales and EBITDA record during 3Q14
EBITDA margin in 3Q14 declined by 1.4pp vs. 3Q13 due to higher revenue from our paving solutions initiatives 17
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Panama – Sector Highlights
The residential sector continued to be the main driver for demand of our products during the quarter
Infrastructure in 3Q14 also had a favorable performance with ongoing projects like “Corredor Norte” and a wind farm project in the central region of Panama
Industrial & commercial building permits increased by 28.5% in the January to August period, compared to last year; this is expected to translate into higher demand going forward
Ongoing & new projects in infrastructure should support construction activity going forward
18
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Results Highlights Costa Rica
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Costa Rica – Results Highlights
Financial Summary US$ Million
9M14 9M13% var 3Q14 3Q13% var
Net Sales 113.7 117.2 (3%) 37.7 40.2 (6%)
Op. EBITDA 51.1 51.9 (1%) 17.8 17.3 2%
as % net
sales 44.9% 44.3% 0.6pp 47.1% 43.1% 4.0pp
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement 1%(10%)(9%)
Volume Ready mix (24%) (32%) (11%)
Aggregates 0% 7% 12%
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement 5% 5% 1%
Price (Local Currency) Ready mix 4% 1% 1%
Aggregates (3% ) (4%) (2%)
Cement and ready-mix vols. in 3Q14 were affected by a slowdown in construction activity and delays in new projects
Double-digit growth rate in our total cement volumes in 3Q14, including exports, compared to 3Q13
Higher prices in 3Q14 in our cement and ready-mix, in local currency terms, compared to 3Q13
EBITDA margin expansion of 4pp in 3Q14 vs. 3Q13
20
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Costa Rica – Sector Highlights
Ongoing infrastructure projects, like the Cañas-Liberia highway, continued driving cement demand in 3Q14
Government is committed to continue supporting investment in infrastructure but still has to present infrastructure plan for the following years
Infrastructure is expected to continue driving cement demand
New expected projects like the Chucás hydroelectric dam, the Guacamaya overpass, the Circunvalación Norte in San José, and the APM container port terminal project in Moín, expected to be approved shortly
21
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Results Highlights Rest of CLH
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Rest of CLH – Results Highlights
Financial Summary US$ Million
9M14 9M13% var 3Q14 3Q13% var
Net Sales 210.2 210.6 (0%) 66.9 65.5 2%
Op. EBITDA 60.0 59.1 1% 20.0 18.4 9%
as % net
sales 28.6% 28.1% 0.5pp 29.8% 28.0% 1.8pp
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement 0% (2%) (10%)
Volume Ready mix 0% 6% 9%
Aggregates 57% 81% (13%)
9M14 vs. 9M13 3Q14 vs. 3Q13 3Q14 vs. 2Q14
Cement 1% 3% 0%
Price (Local Currency) Ready mix 7% 11% 2%
Aggregates (4%) 2% 7%
Double-digit volume growth in all of our three products in Nicaragua in 3Q14 vs. 3Q13, driven by infrastructure and housing
Cement and ready-mix vols. in our operations in Guatemala during the quarter were affected by delays in construction due to heavy rain conditions
Higher prices in 3Q14 in local currency terms in all of our three products compared to 3Q13
EBITDA margin in 3Q14 increased by 1.8pp vs. 3Q13
23
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Rest of CLH – Sector Highlights
Infrastructure remains the main driver for cement demand in Nicaragua
Housing also contributed to demand growth in 3Q14
In Nicaragua Infrastructure is expected to continue its positive trend
We are also participating in the housing developments for the population affected by the earthquake in April of this year
In Guatemala we expect to see a recovery in construction activity after the rainy season
24
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FREE CASH FLOW
3Q14 Results
|
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Free Cash Flow
US$ Million 9M14 9M13% var 3Q14 3Q13% var
Operating EBITDA 443 474 (7%) 160 168 (5%)
- Net Financial Expense 75 87 28 28
- Maintenance Capex 38 22 12 14
- Change in Working Cap (3) 43 (13) 13
- Taxes Paid 81 85 22 20
- Other Cash Items (net) (0) 5 0 2
Free Cash Flow
Free Cash Flow 253 232 9% 111 91 22%
After Maintenance Capex
- Strategic Capex 40 31 28 15
Free Cash Flow 213 201 6% 83 76 8%
FCF generation in 3Q14 reached US$83 million and was used to reduce debt
Strong FCF conversion rate during the first nine months of 2014, reaching 74%, before strategic capex and financial expense
Net debt was reduced by by about US$89 million during 3Q14 to US$1,088 million
26
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GUIDANCE
3Q14 Results
|
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2014 Guidance
Volume YoY%
Colombia Cement Ready - Mix Aggregates
15% 13% 18%
Panama Cement Ready - Mix Aggregates
(13%)(4%)(3%)
Costa Rica Cement Ready - Mix Aggregates
2%(15%) 1%
On a consolidated basis we expect our cement, ready-mix and aggregates volumes to increase by 6%, 8% and 13%, respectively in 2014, compared to 2013
Maintenance capex is expected to reach US$52 million in 2014
Strategic capex is expected to reach US$120 million in 2014
28
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APPENDIX
3Q14 Results
|
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Consolidated debt maturity profile
US$1,142 million Total debt as of September 30, 2014
US$ Million
153 143 143 143 560
2014 2015 2016 2017 2018
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Definitions
9M14 / 9M13: Results for the first nine months of the years 2014 and 2013, respectively
Cement: When providing cement volume variations, refers to our domestic gray cement operations.
Operating EBITDA: Operating earnings before other expenses, net plus depreciation and operating amortization.
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.
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.
LC: Local currency.
pp: Percentage points.
Like-to-like Percentage Variation (l-t-l%var): Percentage variations adjusted for investments/divestments and currency fluctuations.
Rest of CLH: Includes Brazil, Guatemala, El Salvador and Nicaragua.
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Contact information
Investor Relations
Patricio Treviño Garza
Phone: +57(1) 603-9823
E-mail: patricio.trevinog@cemex.com
Stock Information
Colombian Stock Exchange CLH
Calendar of Events
4 – Feb – 2015
4Q14 Earnings Report and Conference Call
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RESULTS 3Q14
October 22, 2014
33