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 March, 2015
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 offices)
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. | Set of presentation slides that include material information of CEMEX, S.A.B. de C.V. (NYSE:CX) (“CEMEX”) discussed by Fernando A. González, CEMEX’s Chief Executive Officer, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 2. | Set of presentation slides that include material information of CEMEX’s business strategy and outlook discussed by Juan Pablo San Agustín, CEMEX’s Executive Vice President of Strategic Planning and New Business Development, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 3. | Set of presentation slides that include material information of CEMEX’s financial strategy discussed by José Antonio González, CEMEX’s Chief Financial Officer, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 4. | Set of presentation slides that include material information of CEMEX discussed by Ignacio Madridejos, President of CEMEX Northern Europe, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 5. | Set of presentation slides that include material information of CEMEX discussed by Jaime Muguiro, President of CEMEX Mediterranean, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 6. | Set of presentation slides that include material information of CEMEX discussed by Joaquín Estrada, President of CEMEX Asia, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 7. | Set of presentation slides that include material information of CEMEX discussed by Juan Romero, President of CEMEX Mexico, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 8. | Set of presentation slides that include material information of CEMEX discussed by Jaime Elizondo, President of CEMEX South, Central America and the Caribbean, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
| 9. | Set of presentation slides that include material information of CEMEX discussed by Karl Watson Jr., President of CEMEX USA, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CEMEX, S.A.B. de C.V. | ||||||||
| (Registrant) | ||||||||
| Date: March 17, 2015 | By: | /s/ Rafael Garza | ||||||
| Name: | Rafael Garza | |||||||
| Title: | Chief Comptroller | |||||||
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Set of presentation slides that include material information of CEMEX, S.A.B. de C.V. (NYSE:CX) (“CEMEX”) discussed by Fernando A. González, CEMEX’s Chief Executive Officer, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 2. | Set of presentation slides that include material information of CEMEX’s business strategy and outlook discussed by Juan Pablo San Agustín, CEMEX’s Executive Vice President of Strategic Planning and New Business Development, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 3. | Set of presentation slides that include material information of CEMEX’s financial strategy discussed by José Antonio González, CEMEX’s Chief Financial Officer, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 4. | Set of presentation slides that include material information of CEMEX discussed by Ignacio Madridejos, President of CEMEX Northern Europe, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 5. | Set of presentation slides that include material information of CEMEX discussed by Jaime Muguiro, President of CEMEX Mediterranean, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 6. | Set of presentation slides that include material information of CEMEX discussed by Joaquín Estrada, President of CEMEX Asia, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 7. | Set of presentation slides that include material information of CEMEX discussed by Juan Romero, President of CEMEX Mexico, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 8. | Set of presentation slides that include material information of CEMEX discussed by Jaime Elizondo, President of CEMEX South, Central America and the Caribbean, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
| 9. | Set of presentation slides that include material information of CEMEX discussed by Karl Watson Jr., President of CEMEX USA, on March 17, 2015, during CEMEX’s annual event, CEMEX Day. | |
Exhibit 1
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Fernando A. González
Chief Executive Officer
Continuing Education Building
Costa Rica
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Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
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Agenda
CEMEX Today
Our Strategic Priorities CEMEX Tomorrow
3
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A lot has happened since we last met
Passing of Lorenzo Zambrano, our former Chairman and CEO
Separation of Chairman and CEO roles, with subsequent changes in certain senior management positions
Reassessed and confirmed our strategy, priorities and expectations
Volatile environment: oil, interest rates, and the “super” dollar
Strong and resilient U.S. economy
Construction activity in Mexico recovering sharply
Further reshaping of industry landscape
4
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We have made good progress
EBITDA and Free Cash Flow
($B)
2.66 2.62 2.64 2.74
2.31 2.37
1.22
0.51 0.19 0.17 0.40
-0.09
2009 2010 2011 2012 2013 2014
EBITDA
Free Cash Flow
Leverage Ratio
(Times)
7.2x 7.4x 6.6x
5.4x 5.5x 5.2x
2009 2010 2011 2012 2013 2014
Working Capital
(Days)
36
31 32 30 28
26
2009 2010 2011 2012 2013 2014
Asset Sales
(Cumulative $B)
3.6 3.8 4.1
1.7 2.0 2.2
2009 2010 2011 2012 2013 2014
5
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Accelerating volume and price trends in 2014
Consolidated price & volume evolution 2011-2014
(Index 2011 = 100)
Cement Ready-Mix Aggregates
Price Index Price Index Price Index
115 115 115
2014 2014
110 2014 110 2013 110
2013 2013
105 2012 105 2012 105
2012
100 2011 100 2011 100 2011
95 95 95
95 100 105 95 100 105 95 100 105
Volume Index Volume Index Volume Index
6
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the 2014 right performance track shows we are on
Highest consolidated revenue and EBITDA since 2008
Highest free cash flow since 2010
Record volumes sold in some of our core markets
Total debt dropped by $1.2B, achieving lowest leverage ratio since 2009, at 5.2x
Refinanced $4.8B of debt, and accessed the bank market for the first time since 2009
Record low SG&A (1) to sales ratio of 10.5%
Lowered working capital days to 26, a record low
1) Excluding distribution costs, depreciation and amortization 7
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We faced some strong headwinds…
Mexican recovery delayed until mid 2014
fect of change
Weak demand in Europe
$2.6 B
EBITDA 2012
$2.7 B
EBITDA 2014
8
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…but also some powerful tailwinds
Positive pricing momentum in most markets
Strong performance in the U. S.
Record high volumes in some markets
$2.6B
EBITDA 2012
$2.7B
EBITDA 2014
9
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Agenda
CEMEX Today
Our Strategic Priorities CEMEX Tomorrow
10
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A well defined strategy overarching our operating model
Strategy
Create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix, and related businesses
People
Value our people as our
main competitive
advantage
Customers
Help our customers
succeed
Markets
Pursue markets that
offer long-term
profitability
Sustainability
Ensure sustainability is
a key component of our
business
11
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A well defined strategy overarching our operating model
Strategy
Create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix, and related businesses
People
Value our people as our main competitive advantage
Customers
Help our customers succeed
Markets
Pursue markets that offer long-term profitability
Sustainability
Ensure sustainability is a key component of our business
Operating Model
Leverage our knowledge and scale to establish best practices and common processes worldwide, in order to operate more effectively and achieve greatest value
12
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. the with entire a clear organization set of priorities that aligns
Health & Safety
Return to Investment Grade Customer Centricity Global CEMEX
13
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Safety is our most important priority
ZERO
Fatalities
Injuries
LTI rate
Lost Time Injuries (LTIs)
2.6
2.3
2.0
1.8
1.2
268 236
214
176
118
123 124 103 89 68
2010 2011 2012 2013 2014
Number of employee LTIs per million hours worked Employee LTI
Contractor LTI
14
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Making investment progress grade towards recovering
Leverage ratio
7.2x 7.4x
6.6x
5.4x 5.5x 5.2x
2009 2010 2011 2012 2013 2014
Average coupon
(CEMEX’s public debt issuances)
9.5% 9.3% 8.6% 9.6%
6.6% 5.6% 5.3%
2009 2010 2011 2012 2013 2014 ‘15 YTD
Progress so far:
Returned to the bank market at better terms
Refinanced ~$8.2B of debt and extended average life (1)
Reduced annual interest expense by $170M (1)
S&P recently upgraded CEMEX’s outlook to “positive”
Going forward:
Reduce leverage ratio at a faster rate than in prior years
Lower debt between $500M and $1.0B in 2015
Continue lowering cost of debt
1) Pro forma the use of proceeds from recent notes offerings to redeem and/or repurchase certain ‘15, ‘18 and ‘20 notes 15
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Our customers, core to our mission
Evolve from a product-driven to a client-driven organization
Improve digital interface to better serve our clients
Provide one face to the customer
Enhance competencies of our sales force through targeted training
Customer Centric
Offer complete, differentiated solutions instead of products
16
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Global networks for a greater global impact
Value before volume
Grow the pie
Cement commercial
Aggregates
Ready mix
Cement operations
Supply chain
17
|
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Agenda
CEMEX Today
Our Strategic Priorities CEMEX Tomorrow
18
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Portfolio markets geared towards high growth
USA
Strong volume, pricing, and operating leverage translating into solid EBITDA growth
Northern Europe
Strong U.K., weak France. Moderate recovery elsewhere
Mexico
Accelerating demand driven by residential and commercial construction, with infrastructure and self-construction picking up
Mediterranean
Spain growing again after 6 years of decline
Asia
Continued growth in the Philippines
Central and South America & Caribbean
Government support for housing and infrastructure to continue driving demand
Expected 2-year CAGR of cement demand
Significant growth (> 6%) Moderate growth (3%—6%) Limited growth (0%—3%) Negative growth (-3%—0%)
19
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The highest Americas contributor will continue to growth to be the
Cement Ready-mix Aggregates
2014 Regional contribution to EBITDA and split by product
72%
Of consolidated EBITDA
23%
Of consolidated EBITDA
5%
Of consolidated EBITDA
9% 7%
84%
25%
59%
16%
2% 1%
97%
Americas
EMEA
Asia
Op. Margin ‘14 Volume
Cement 39% 38 M tons
Ready-mix 7% 28 M m3
Aggregates 15% 80 M tons
Op. Margin ‘14 Volume
Cement 27% 16 M tons
Ready-mix 5% 27 M m3
Aggregates 15% 86 M tons
Cement 30% 5.2 M tons
Ready-mix 4% 1.2 M m3
Aggregates 9% 1.3 M tons
20
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Fundamentals line performance… in place to accelerate our top
4% Volume growth
(‘14 – ‘16 CAGR)
Ongoing housing recovery in the U.S.
Recovery in construction in Mexico
Colombia and Philippines volumes continue to thrive
4% Price growth in local currencies
(‘14 – ‘16 CAGR)
Positive price momentum in key markets
Value before Volume initiatives consistently progressing
21
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. profitable along with growth further efficiencies to deliver
>2.5pp EBITDA margin improvement
(By 2016)
Continue to reap benefits from operating leverage
Cost containment efforts to improve efficiencies
>20% FCF/EBITDA conversion
(By 2016)
Working capital optimization
Sale of non-operating assets
Restrictive allocation of capital expenditures
22
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Responding environment aggressively to a volatile
2015 & beyond In 2015
Initiatives Targets
Further cost reductions $150M
Additional free cash flow $200M
initiatives
Further debt reduction $0.5B – $1.0B
Asset divestments $1.0B – $1.5B
Liability management Potentially $2.9B of notes
with coupon 9 %
23
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What you should expect from us
Generate one of the highest organic growth rates in the industry
Enhance scope and profitability of our client base
Continue strengthening our capital structure
Focus on variables we can control to minimize risk
Leverage local knowledge globally
Continue investing and empowering our people, our greatest asset
24
| Exhibit 2
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Juan Pablo San Agustín
Executive VP of Strategic Planning and Business Development
|
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Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
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CEMEX Strategy
Create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix, and related businesses
1
Value Our People as Our Main Competitive Advantage
2
Help Our Customers Succeed
3
Pursue Markets that Offer Long- Term Profitability
4
Ensure Sustainability is Fully Embedded in Our Business
3
|
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All efforts aimed at enhancing shareholder value
Return on capital drivers
Improving operating performance
Optimizing asset base
CEMEX levers
Global Networks
Value before Volume
Free cash flow improvement
Non-operating assets disposals
Portfolio management
Value creation
Significantly increase cash flow generation
ROCE > WACC
Recover investment grade capital structure
4
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Global Networks. leveraging our global
strengths across our local businesses
Revenue Enhancement
Value before volume
Grow the pie
Cement commercial
Aggregates
Ready mix
Cement operations
Supply chain
Cost Management
5
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Value before Volume to capture full value
delivered through our products and services
Revenue
Enhancement
Value before volume
Grow the pie
Price Roadmaps Debundling Full Transparency
2012 2013 2014
Price Transition Logic Service Manifesto
6
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… with measurable results and
a long way still to go
Sample of services
Cement: multi-stops, cancellations, extra-hours, extra bags, spreader bar…
Aggregates: plant openings, partial loads, split delivery, low water, late load…
Readymix: full freight recovery, returned concrete, waiting time, redirections…
Revenue
Enhancement
Total revenues from services and surcharges
($ M)
500
210
2014 Mid-term
7
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While Grow the Pie increases the market penetration of our products
Revenue
Enhancement
Expecting 11.5 M m2 of pavements in 2015
Roller Compacted Concrete
Decorative pavements
Concrete overlay
And 0.6 M m2 of housing solutions in 2015
Insulated Concrete Forms
Monolithic Cast in Place
LEED Certification
8
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Increasing productivity to capture full operating leverage
Cost
Management
Expecting $100 M of cost savings in 2015
Fuels mix optimization
Maintenance costs reduction
Productivity improvement
Towards a vertically integrated SC model
Logistic cost improvement
Inventory management
Distribution network optimization
9
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Relentlessly unlocking value from more efficient working capital management
Free cash flow improvement
Non-operating assets disposals
Portfolio management
Working Capital
(Days) -14
40
26
18
2008 2014 Mid Term (1)
Unlocked ~ $ 600 M in funding requirements in the past 6 years
10
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We have delivered on our commitments
Free cash flow improvement
Non-operating assets disposals
Portfolio management
Asset disposals
($ M)
250
210
180 185
~200 170
110
2009 2010 2011 2012 2013 2014
Disposed $1.1 B of non operating assets since 2009
11
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We have executed more than $3.5 B in portfolio management transactions
Free cash flow improvement
Non-operating assets disposals
Portfolio management
Portfolio management transactions since 2009
West Germany
AGG Kentucky (USA) Holcim (CZR)
$ 90 M (‘10)
Holcim (SPA)
JV (USA) Other European $ 360 M (’11) assets $ 200 M
CLH
$ 1.0 B (´12)
Australia
$ 1.6 B (´09)
Divestments
Acquisitions
12
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Proven track record of asset sales
~ $4 B
Operating assets
~ $2 B
Non-operating assets
~ $0.8 B
Minority Stake
~ $1 B
Delivered in the past 4 years
13
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All efforts aimed at enhancing shareholder value
Return on capital drivers
CEMEX levers
Value creation
Significantly increase cash flow generation EBITDA $ 4.7B
FCF/EBITDA >35%
ROCE > WACC
Recover investment grade capital structure Leverage ratio < 3.0x
14
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What you should expect from us…
Extracting greater value from our local businesses through global networks
Focus on Value before Volume, value added products and services
Increasing productivity and realizing operating leverage
Continue managing our portfolio: asset swaps, divestments and expansions
Significantly improve shareholder value
15
Exhibit 3
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José Antonio González
Chief Financial Officer
Centro Roberto Garza Sada
Monterrey, Mexico
|
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Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
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Significant progress in strengthening and de-risking our capital structure
December 2011
Total Reported Debt: $18.1 B Avg. life: 3.8 yrs Debt cash cost: 6.3%
December 2014(1)
Total Reported Debt: $16.4 B Avg. life: 5.6 yrs Debt cash cost: 6.0%
Bank and Public Debt
Convertibles
$ B 8.0
2.6 3.1
2.2 2.3 2.2
2.0 2.0
1.4 1.5
1.2 1.1 1.0 1.0
0.6 0.6 0.7 0.5
0.4 0.2
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 >2021 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 >2025
1) Gives proforma effect to the payment for $217 M of the 9.0% Notes due 2018 with proceeds from the new bank facility for the same amount. Also reflects payments of $344 M of the 9.0% Notes due 2018, $224 M of the 9.25% Notes due 2020, and $746 M of the Floating Rate Notes due 2015 with proceeds from the new $750 M 6.125% Notes due 2025 and the €550 M 4.375% EUR Notes due 2023. Additionally reflects $200 M new convertible due 2020.
3
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Realized ~$170 M in cash interest savings
Annualized cash interest savings
($ M)
170 20
96
54
2013 2014 2015 YTD Total
Issuance: $2.2 B $5.0 B $1.3 B $8.6 B
Avg. new debt coupon: 6.5% 4.9% 5.3% 5.4%
Avg. retired coupon: 9.5% 7.1% 6.9% 7.7%
$2.9 B of remaining Notes with coupon > 9% could yield additional interest savings
4
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CEMEX will continue being prepared to tap the markets
7.5% CEMEX credit spread
6.52%
6.5% 6.25% 5.875% March 2019 (Bid Yield to Maturity)
5.60%
5.5% 5.15%
4.76% 5.06%
4.5%
450 bps 475 bps
6.50% 7.25%
3.5% 440 bps Dec’19 Jan’21 333 bps 304 bps 355 bps
5.875% 6.00% 6.125%
5.70%
Mar ’19 Apr ’24 May ’25
2.5% Jan’25
1.51%
1.5% 1.75% 1.77% 1.82% 1.72%
1.20% Mid Swaps Benchmark (6 to 4 years)
0.5%
Mar 13 Jun 13 Sep 13 Dec 13 Mar 14 Jun 14 Sep 14 Dec 14
bps = Spread (Difference between Base Rates and Market Yield of CX Notes) % and Date = Yield to Maturity of CX Notes and due date
5
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|
2014 loan transaction marks CEMEX’s return to bank markets in over 5 years
Amount of Bank Debt outstanding New 2014 bank facility
($ B)
$15.1
68% bank
debt $7.2
$5.0(1) Uncommitted
credit lines
40% bank
Unutilized
debt
21% bank committed
debt credit facility
20092 20122 2014
% Top 13
66% 68% 81%
Banks:
$1.9 B with core banks
4 year avg. life maturity
350 bps with grid (-100 bps)
40% revolver
Relaxed cash management
restrictions
Added flexibility to
operational needs aligned to
business recovery
$1 B uncommitted credit
lines
1) Considers USD 560 M available under revolving credit facility; (2) Prior to bank debt refinancing 6
|
|
Effective debt currency mix
$16.4 B $34.9 B $2.7 B
15% 18% 14% EUR EUR-like EUR-like 8% others 13% others 20%
2% ASIA
LATAM 6% LATAM
15% 84% MXN
USD 37% MXN
46% USD
21% USD
(1)
Debt Asset Base EBITDA
Euro-like EBITDA & asset base
match Euro debt
USD debt for U.S. asset base
with growing EBITDA
Preference to fund Mexico,
Latam & Asia with USD
Optimal cash costs over time
Long run cash flows and asset
values in USD
5+ yr debt life and no maturities
in 12-24 months prevent impact
from short term volatility
1) Gives proforma effect to the payment for $217 M of the 9.0% Notes due 2018 with proceeds from the new bank facility for the same amount. Also reflects payments of $344 M of the 9.0% Notes due 2018, $224 M of the 9.25% Notes due 2020, and $746 M of the Floating Rate Notes due 2015 with proceeds from the new $750 M 6.125% Notes due 2025 and the €550 M 4.375% EUR Notes due 2023. Additionally reflects $200 M new convertible due 2020.
7
|
|
Initiatives in the next 12 to 18 months enhance CEMEX’s road to investment grade
Leverage ratio(1) (Times)
5.2x (~0.5x)
(~0.3x)
(~0.1x) ~4.2x
EoY 2014 EBITDA growth Divestments FCF and other Proforma next 12-18 months initiatives leverage
Aiming to reduce leverage ratio by ~1x in 12 to 18 months
1) In accordance with the 2009 Financing Agreement and the 2012 Facilities Agreement 8
|
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What you should expect from us
Proactively address upcoming maturities to mitigate refinancing risk and maintain a comfortable average life of debt
Continue reducing interest expense through liability management and debt reduction
Continue developing funding sources to accomplish effective mix
Enhance deleverage trajectory through existing equity linked capital structure components, while optimizing dilution costs
9
Exhibit 4
|
|
Ignacio Madridejos
President—CEMEX Northern Europe
Queen’s Terminal – Heathrow Airport
London, UK
|
|
Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
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|
Positive performance in 2014 in spite of volatile context
EBITDA 2013-2014
($M)
+11%
367
331
Improved Operating Contribution Leverage Margin
EBITDA Price Variable Volume Fixed Costs, Other Exchange EBITDA 2013 Costs SG&A & Corp. Rates 2014
3
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|
Value before Volume in Northern Europe Highlights
Defined five-year price roadmaps in all countries and businesses
Implementing price management framework / tool
Services and Surcharges in place in region for all three main businesses
- In ready-mix these generated ~US$ 85 M of revenue in 2014
A distinct Value Added Products strategy developed for each of cement, aggregates and ready-mix businesses
- In aggregates Value Added Products are expected to represent a volume of ~3.5 M tons and in ready-mix, 25% of total volumes in 2015
Value before Volume concepts, frameworks and tools are now integrated into sales force training
Overall, Value before Volume strategy has so far been more effective in aggregates and ready-mix than in cement
Aiming towards sustained increases in contribution margins
4
|
|
Continued efforts to improve efficiency of our operations
Alternative fuels
substitution (%)
74 75 69 78 70 71
58 62
52
32
2010
2014
UK GER POL LAT Total
Internal head count
11,972 11,369 11,031 10,029 9,995
2010 2011 2012 2013 2014
SG&A(1) / Sales
10.7% 9.8% 10.2% 9.8%
8.9%
2010 2011 2012 2013 2014
France 2015 cost savings
($ M)
2.6 9.9
3.1 0.9
3.2
Raw Logistics Maint. SG&A Total
Materials Costs Costs and other
1) Excluding distribution costs, depreciation and amortization 5
|
|
Continued efforts to improve free cash generation
Working capital Annual asset sales
(Days) ($ M)
22 172
18 18
127
106
12
75
7
33
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
6
|
|
Slight volume growth expected in Northern Europe region
2015-2016 Volume expectations by country
Volume Comments
CX benefitting from operating leverage in growing market
UK Positive supply-demand dynamics
Poland Market growth driven by infrastructure projects, EU funds
Relentless price improvement efforts by CX yet to prove effective
Central Stable market showing signs of slight growth, higher in CZE and HUN
Europe Good CX asset base well integrated into regional network
France Market bottoming out with improving residential segment in 2H15
CX maintaining contribution margins thanks to brand strength
> 2% expected growth
0-2% expected growth
< 0% expected decline
7
|
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What you should expect from us
Health and Safety: Our top priority; roadmap towards zero LTI’s in place
Value before Volume: Continued discipline in execution; value offer by segment
Cost Savings:
- Confirmed operational savings in Germany and synergies in Czech Republic as a result of transaction with Holcim
- Additional cost savings in place to mitigate impact of USD appreciation
- Total cost savings for 2015 expected to reach ~$55 M vs. 2014
Working Capital: Target to reach an average of zero working capital days
Asset Base:
- Reduced net asset base by ~$60 M in the region as a result of transaction with Holcim
- Thorough analysis of asset base in all countries; but divestments to be lower vs. 2014
Focused on reaching ROCE > WACC
8
Exhibit 5
|
|
School of Health Sciences
Granada, Spain
Jaime Muguiro
President -C EMEX Mediterranean
|
|
Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
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|
Consistent EBITDA growth, excluding CO2 income
EBITDA
($ M)
375
325 333
3
CO2 110 37
330
265 287
2012 2013 2014
Main Drivers
We increased cement prices in Egypt by an average of 20% in the last two years
Significantly grew our ready-mix volumes in Israel (+18%) and UAE (+62%)
More than doubled cement exports from Spain and Croatia (+3 M tons)
Achieved significant cost reductions in Spain and Croatia ($54 M)
3
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Demand expected to grow throughout the region in the next two years
2015-2016 demand CAGR (1)
Strong Growth (> 6%)
Limited growth (0% - 3%)
Croatia
Spain
Israel
Egypt
UAE
1) Spain, Croatia & Egypt: national cement consumption; Israel & UAE: national ready-mix consumption
4
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However, 2015 will be challenging in some of our markets
Egypt
Israel
Key Issues
Further reduction of energy subsidies and unstable supply of electricity Increased capacity utilization rates in the cement industry Low single-digit demand growth in the informal sector
Lower ready-mix margins, as we could not increase prices last year Lower margins in our aggregates business as a result of higher royalty payments after extending a contract on a large quarry
Our Focus
Maximize cement prices, despite lower volumes Target the formal sector to grow bulk cement and ready-mix volumes Switch to pet-coke as our primary fuel
Announced a 2% price increase in ready-mix effective in March Preserve mineral reserves while we increase our prices to partially offset the increase in royalties
5
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Improved performance in Spain and UAE to partially mitigate headwinds
Spain
UAE
Cement demand growing at an average of 6% in the last 6 months
Announced cement price increase of ~$12 /ton sticking in most markets
Operating leverage as capacity utilization grows
Incremental EBITDA from the integration of Holcim’s assets
Incremental CO2 income after re-opening a cement plant in 2014
Ready-mix volumes expected to grow at double-digit rates
Increased slag exports to Qatar as construction strengthens
Increased capacity utilization rates leading to a reduction in unitary costs
6
|
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EBITDA growth drivers for 2016 and beyond
Spain Israel Egypt
Volumes to grow at a CAGR of 9% in next three years
Better pricing power
Further incremental annual EBITDA from the integration of Holcim’s assets
Ready-mix volumes to grow at a CAGR of 5%, reaching 6 M m 3
Aggregate volumes to grow by 20% in three years as we open a new quarry
Ready-mix margins to increase by 2.0 pp
Our cement volumes have the potential to recover to pre -revolution levels (~6 M tons)
Competitive fuel costs after switch to pet coke is completed
Stable electricity supply as generation capacity improves in the country
7
|
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What you should expect from us
Achieve and sustain zero for life
Increase EBITDA, leveraging the recovery and the integration of Holcim´s assets
Continue implementing Value before Volume strategy
Increase sales of value-added products and ready-mix paving solutions
Grow our cement and clinker exports
Reduce fuel costs, using more alternative fuels and pet-coke
Continue divesting non-core assets
8
Exhibit 6
|
|
Joaquín Estrada
President - CEMEX Asia
City of Dreams
Manila, Philippines
|
|
Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
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Growth in the region translating into strong results
Domestic cement volume
(M Tons)
Sales and EBITDA
($ M)
Domestic cement price
($ / Ton)
+9%
CAGR
5.3
4.9
4.6
4.1
2011 2012 2013 2014
Sales
EBITDA
CAGR 612 577 +7% 542 506
128 142
CAGR 97 79
+22%
2011 2012 2013 2014
16% 18% 22% 23%
EBITDA Margin
+5% CAGR
87 83
78
75
2011 2012 2013 2014
3
|
|
Targeting zero working capital days
Working capital
(Days)
-18 days 26
21
16
8
3
2010 2011 2012 2013 2014
4
|
|
High operating efficiency
Alternative fuels Kilns efficiency SG&A (1)/Sales substitution (%) (%)
(%)
1.8% 93% 1.7%
52% 92% 46%
42% 90% 1.4% 1.4% 1.4%
33%
27% 87%
85%
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
1) Excluding distribution costs, depreciation and amortization
5
|
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Growth trend expected to continue
Growth in public spending to continue driving demand Philippines Strong growth in FDI and expansion of manufacturing sector Increased sales of specialized paving and housing solutions
Public infrastructure and renewed private sector confidence expected Thailand to revive cement demand and require new special types of cement
Increased sales of specialized ready-mix solutions to landmark projects Malaysia in the country
Improved political and economic stability to stimulate much needed Bangladesh growth in infrastructure and housing
6
|
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What you should expect from us
Maintain zero accidents, same as last year
Leverage new capacity and distribution network in the Philippines Continue implementing our Value before Volume strategy Increase our sales of specialized paving solutions Reach zero working capital days Divest non-core or underperforming assets Continue improving operational efficiency Increase our alternative fuels substitution rate to 60%
7
Exhibit 7
|
|
Fotografía: David Cervera
Great Museum of the Mayan World
Mérida, Mexico
Juan Romero
President – CEMEX Mexico
|
|
Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2
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Economy started gaining traction in 2014
Industrial Activity
(YoY growth)
10
Construction
5 4.7%
Industrial Activity 0.8%
0
-5
-10
J F M A M J J A S O N D J F M A M J J A S O N D J
2013 2014 2015
3
|
|
Mexican economy well positioned to grow faster
Strong links with U.S. economy
Impact of structural reforms
Macroeconomic stability
Attractive FDI destination
GDP Growth
(‘11-’14 Real Growth + IMF Projections ’15-’16)
4.0
3.8
3.5
3.2
2.1
1.7
2011 2012 2013 2014 2015 P 2016 P
Source: INEGI and IMF
4
|
|
Favorable demand outlook for 2015-2016 (1)
Formal Housing
Self-Construction
Industrial and Commercial
Infrastructure
Housing starts expected to continue growing at a moderate pace after a strong 2014 Expected expansion in private and public credit availability
Stable job creation during the next two years
Job creation YTD February of 193k versus 147k last year Higher remittances, linked to a stronger U.S. economy
Continued growth in manufacturing exports mainly driven by U.S. industrial activity Strong retail sales YTD February up 5% versus last year
Budget for investment in transportation infrastructure above last year’s levels
National infrastructure plan to drive infrastructure growth Healthy backlog of infrastructure projects
1) Cement and ready-mix volumes YTD February 2015 are up 10% YoY
5
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|
Infrastructure sector expected to start recovering in 2015
Significant ramp up in project biddings in 2H 2014(1)
94% 111%
1H 2014 2H 2014 1H 2014 2H 2014
# of projects Volume (m3)
Expected ready-mix volume to infrastructure projects
24%
13%
7% In bidding process
25% In negotiation
10% About to start
52% In construction
2014 2015
1) Large cement-intensive infrastructure projects
6
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Announced budget cut affects primarily non-cement intensive projects
Budget Cut
Investment in transportation and communications (SCT) (1)
(Billion Mexican Pesos)
Announced
12 budget cuts
+16% growth
95
82 Vs. 2014
2014 2015
budget
Main Reductions
Main SCT reductions are not cement intensive:
MXN4.7B from railway and passenger train projects
MXN4.0B from streets and highways, mainly asphalt
MXN1.5B in telecommunications programs
1) Budgetary investment for “Secretaria de Comunicaciones y Transportes”. Source: SHCP, CEMEX Estimates
7
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New Mexico City airport: A flagship for the current administration
Total investment of MXN 170B
60% government, 40% private
Surface area six times larger than current Mexico City airport
Project to be developed in two phases
2016 – 2020: 3 runways for ~50 M passengers/ year
2020 – 2025: 3 additional runways to reach ~120 M passengers/ year
Small investment in 2015 for auxiliary works: roads, hydraulic works, etc.
CEMEX providing technical collaboration during the design stage
8
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|
Implemented a new commercial organization to better serve our customers
CUSTOMER SEGMENTS
BUILDING BUILDERS AND INDUSTRIAL INFRASTRUCTURE
MATERIAL CONSTRUCTION PRODUCERS AND GOVERNMENT
RETAILERS COMPANIES
Sales
Force
Customer
Customer
Sales
Force
9
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|
Opportunity to further increase profitability of the industrial segment
Admixtures
Aggregates 1%
35% Cement +
Aggregates
10%
Cement +
10% Admixtures
Cement +
5% Aggregates +
39%
Cement Admixtures
75% of our industrial producer customers purchase only one product from us
Potential to Maximize Value
One face to the customer for all construction needs
Shift price conversations from products to all-inclusive solutions
Grow share of wallet
10
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|
Maximize Value Creation Builders Segment
Ready-mix
92%
0.3%
Ready-mix +
8% Rebar
Ready-mix +
.
Cement
92% of our customers in the builders segment category purchase only one product from us
Potential to Maximize Value
Capitalize on cement selling to ready-mix customers
Replicate rebar commercialization efforts of distribution segment
Grow share of wallet
11
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Positive pricing dynamics across our products (1)(2)
2014 Price increases
(Dec ‘14 vs Dec ’13)
9%
6%
3% 3%
Bagged Bulk Ready-Mix Aggregates
cement cement
Implementation of Value before Volume strategy
Recovery of input cost inflation
Short, medium and long term price roadmap for every product
Cement and ready-mix prices in local-currency terms are up 5% and 6%, respectively, YTD February 2015 on a YoY basis
Cement and ready-mix prices in local-currency terms are up 4% and 2%, respectively, from December 2014 to February 2015.
12
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|
Continue improving operational efficiency
SG&A
SG&A/Sales (1)
-0.3 pp
7.2 6.9
2013 2014
Working Capital
Days
-9.0
45.0
36.0
2013 2014
Distribution Efficency
CEMEX’s freight cost vs. diesel cost
(% increase in 2014)
13.0
3.5
Diesel Freight
increase 2014 increase 2014
1) Like to like basis and excluding distribution expenses, depreciation and amortization
13
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What you should expect from us
Achieve zero for life
Continue implementing our Value before Volume across all our businesses
Continue to expand our customer base and ensure higher degree of cross selling of our products
Capture economic growth momentum
Continue reducing our cost base and working capital requirements
14
Exhibit 8
|
|
Panama City Metro
Panama
Jaime Elizondo
President - CEMEX South, Central America and the Caribbean
|
|
Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
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Favorable demand expectations for 2015 and 2016
Dominican
Republic
Puerto Rico
Nicaragua
Guatemala
Costa Rica
Panama
Colombia
Expected 2-year CAGR of
cement demand
Moderate growth (3% – 6%)
Limited growth (0% – 3%)
Negative growth (-3%—0%)
2014 EBITDA
Breakdown by Country
Others
Dominican 23 %
Republic
8 %
Costa Rica 10% 50 % Colombia
19 %
Panama
Expecting a 4% CAGR in cement demand in the region
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Impact of lower oil prices in Colombia
Oil accounts for ~ 10.5% of government fiscal revenues
- Total tax income COP 130 B in 2014 with ~COP 13.6 B from oil
Government is committed to continue investing in infrastructure and housing in spite of spending cuts
- Government spending cuts related to investments of COP 4.8 B in 2015,out of which 16% potentially impacts construction industry
- Expect impact to national cement consumption of less than 1%
- Housing and infrastructure programs already approved will not be affected
Devaluation of the Colombian Peso partially offsets lower oil revenues
- A $10 decline in oil price reduces fiscal revenue by COP 4.2B
- Every COP 100 devaluation in the exchange rate increases fiscal revenues by COP 3.4B
Source: Ministro de Hacienda
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Housing and Infrastructure will continue driving demand in our region
COLOMBIA
PANAMA
DOMINICAN REPUBLIC
4G infrastructure
40 projects for ~ $24B(1), of which $4.2B already awarded.
Second wave of projects to be awarded starting May 2015
Government sponsored housing
100,000 free home program; 300,000 subsidized housing
5-year, $11B public investment plan
Includes significant infrastructure projects such as the $3.0B subway expansion, interstate highways for $3.0B, and $3.6B for water management
Government spending and self-construction to drive construction activity in the coming years
Construction of 10,000 new classrooms, 2,000 childcare facilities, and social housing
Improving domestic economy and growth in remittances and tourism revenues
1) Using an exchange rate of 2,000 Colombian Pesos per U.S. Dollar
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Making our operations more efficient
Alternative fuels substitution
(%)
27%
18%
7%
Kiln efficiency
(%)
87% 90%
81%
Logistics cost
($ per ton of cement)
-12%
2010 2014 2015E
Improving our costs
Increase the utilization of our existing alternative fuels installations
Increase by 300k tons our cement production capacity through debottlenecking and maintenance improvements
Improving our logistics and backhaul opportunities
Improving our cash flow
Reduce investment in working capital
Divest non-core assets
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What you should expect from us
Continue providing integral solutions to our clients making them more profitable while increasing the size of our market
Focus on pricing to compensate for input cost inflation and currency devaluation
Improve our efficiency and reduce our production costs
Reduce working capital and divest non-core assets
Increase our EBITDA and free cash generation
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Exhibit 9
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Port Canaveral Exploration Tower
Florida, United States
Karl Watson Jr.
President - CEMEX USA
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Legal disclaimer
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de
C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE.
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
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CEMEX USA financial highlights
Sales and EBITDA
($ M)
3,678
3,314
3,062 Sales
2,616 EBITDA
421
255
43
-89
2011 2012 2013 2014
EBITDA
-3.4% 1.4% 7.7% 11.4%
Margin
Operating
30% 84% 46%
Leverage
3
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Successfully met 2014 business objectives
EBITDA evolution – 2013-2014
($ M)
205 -118
79
421
255
2013 Volume Price Costs 2014
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Positive volume growth trend continues
Volume by business segment
Cement
(YoY %)
+7%
+28%
’11 ’12 ’13 ’14
Aggregates
(YoY %)
-2%
+14%
’11 ’12 ’13 ’14
Ready-mix (1)(2)
(YoY %)
+7%
+32%
’11 ’12 ’13 ’14
Results for ready-mix on a like to like basis for the current operations
Ready-mix volumes YTD February 2015 up 16% YoY
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Economy gaining momentum
Economy
- GDP growth expected to accelerate from 2.4% in 2014 to 3.0% in 2015
- Job creation expected to remain strong
- Economy approaching full employment, increasing confidence and supporting demand for housing
- Consumer on stronger footing with deleveraging process largely over, household wealth higher and an added boost from decline in energy prices
Construction sector
- Housing starts projected to increase ~20% in 2015
- I&C spending expected to continue at double-digit growth
- Public infrastructure spending projected to remain at low-single-digit growth as new project activity not gaining momentum yet
- Federal aid transportation funding expected to continue at current levels
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Most of our markets expected to grow at a strong rate
2015 cement demand forecast (YoY %)
+8%
+8%
> 9%
5—8%
1—4%
< 0%
Total U.S.
+6.5%
-1%
+12%
Source: CEMEX estimates
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Measuring the oil and gas impact on Texas
Economy
Oil and Gas Sector
Residential, I&C and Public Sectors
Growth slowdown, yet no recession expected
- Texas’ economy more diversified than in the 80’s
Historical relationship indicates ~30% decline in rigs when oil prices decline ~50% to $50/barrel
- Oil well cement demand ~10% of Texas total
Low-single-digit growth in residential
I&C expecting high single digits growth (ex. oil & gas) Public sector boosted by:
- $1.3 B approved through Prop 1
- $3.4 B approved in school bonds
Texas Cement Volume expected to drop -1% YoY, yet market sold out
Supply/Demand—Demand at ~15 M tons with plant capacity at ~13 M tons
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Value before volume strategy continues to drive prices
Price by business segment
Cement
(YoY %)
+6%
+10%
2011 2012 2013 2014
Aggregates
(YoY %)
+11%
+16%
2011 2012 2013 2014
Ready Mix
(YoY %)
+8%
+19%
2011 2012 2013 2014
1) Cement and ready-mix prices in local-currency terms are up 10% and 7%, respectively, YTD February 2015 on a YoY basis
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Coupled with favorable cement supply/demand dynamics
U.S. cement supply / demand dynamics
(M tons)
124
118
111
Practical 103
Capacity 96
89
82
2013 2014 2015e 2016e 2017e 2018e 2019e
Source: USGS, PCA Fall 2014 forecast, CEMEX estimates
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We expect positive trend to continue
CEMEX announced 2015 price increases
$11.0/mt (Jan)
$11.0/mt (Jan)
$11.0/mt (Apr)
$8.8/mt (Oct)
$11.0/mt (Apr) $11.0/mt (Jan)
$11.0/mt (Oct)
Environmental Fee
(Sep 15th, 2015) $5/mt $11.0/mt (Jan)
$8.8/mt (Jul)
CEMEX Cement Plant
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Costs kept in line during current economic cycle
Unitary production costs by business segment
Cement
(YoY %)
+1%
’08 ’09 ’10 ’11 ’12 ’13 ’14
Aggregates
(YoY %)
+2%
’08 ’09 ’10 ’11 ’12 ’13 ’14
Ready Mix
(YoY %)
0%
’08 ’09 ’10 ’11 ’12 ’13 ’14
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Productivity at record levels for most businesses
Productivity by business segment
Cement
(Mt/Working Hr)
+12%
’08 ’09 ’10 ’11 ’12 ’13 ’14
Aggregates
(Mt/Working Hr)
-5%
’08 ’09 ’10 ’11 ’12 ’13 ’14
Ready Mix
(m3/Working Hr)
+29%
’08 ’09 ’10 ’11 ’12 ’13 ’14
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Continuously managing working capital
Working Capital
(Days)
70
60
55
51
30
2011 2012 2013 2014 2015 Target
(End of Year)
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What we said in 2012
Volume in main businesses expected to grow at ~10% CAGR
- Slower job creation and lack of a Highway Bill yielded an ~8% CAGR
Achieving pricing excellence is our #1 priority going forward
- Pricing has contributed more than $300 M in EBITDA since 2011
Cost efficiency continuously being pursued to maximize profitability
- Cost increases below inflation with productivity at record levels
Operating leverage enhancing profitability
- Achieved 48% operating leverage with +15 p.p. margin expansion
Targeting $1.2 B in EBITDA by 2016
- Delayed due to lower than expected volume growth
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What you should expect from us
Health and Safety
Value before Volume
Continuous Improvement
Financial Performance
Free Cash Flow
Achieve and sustain zero for life
Drive prices without losing market share
Improve productivity across all businesses Continue to manage costs effectively
Achieve medium-term EBITDA target of $1.2 B
Reduce working capital tied up in the business Continuous optimization of asset base
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