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 April, 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
San Pedro 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. | Press release, dated April 23, 2015, announcing first quarter 2015 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. | First quarter 2015 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. | Presentation regarding first quarter 2015 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.
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CEMEX, S.A.B. de C.V. | ||||||
| (Registrant) | ||||||
| Date: April 23, 2015 | By: |
/s/ Rafael Garza | ||||
| Name: | Rafael Garza | |||||
| Title: | Chief Comptroller | |||||
EXHIBIT INDEX
| EXHIBIT |
DESCRIPTION | |
| 1. | Press release, dated April 23, 2015, announcing first quarter 2015 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. | First quarter 2015 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. | Presentation regarding first quarter 2015 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
Exhibit 1
CEMEX LATAM HOLDINGS REPORTS
FIRST QUARTER 2015 RESULTS
| • | The positive performance in our operations in Costa Rica and Nicaragua was offset by lower cement volumes in our operations in Colombia |
| • | We already started operations in our expansion project in Nicaragua, and advanced considerably with our capacity expansion projects in Colombia and Costa Rica |
BOGOTÁ, COLOMBIA, APRIL 23, 2015 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that consolidated net sales reached US$354 million during the first quarter of 2015, a decline of 16% versus the first quarter of 2014. This decline is mainly explained by foreign exchange fluctuations and lower sales in our operations in Colombia. Adjusting for the effect of the exchange rate, consolidated net sales in the first quarter decreased by 5%, on a year-over-year basis.
Operating EBITDA, also adjusted for the foreign exchange fluctuations, declined by 10%, during the first quarter of 2015, compared with the same period in 2014.
During the first quarter of 2015, consolidated cement volumes decreased by 8%, while ready-mix and aggregates volumes increased by 4% and 8%, respectively, compared to last year.
Carlos Jacks, CEO of CLH, said, “During the first quarter we reached record sales in Costa Rica, as well as record first-quarter sales in Nicaragua. This positive performance in both operations was offset by the lower cement volumes in our operations in Colombia. Despite this volume decline during the first quarter, we continue to expect a positive volume performance for the full year.”
CLH’s Financial and Operational Highlights
| • | During the first three months of the year, cement volumes in Colombia declined by 15%, while ready-mix and aggregates volumes increased by 5%, compared to the same period a year ago. |
| • | Adjusting for the effect of foreign exchange fluctuations, net sales in Colombia decreased by 9% during the first quarter, on a year-over-year basis. |
| • | In Panama, cement volumes increased by 9%, ready-mix decreased by 9% and our aggregates volumes remained stable in the first quarter, compared to the first quarter a year ago. |
| • | Free cash flow after maintenance capital expenditures reached US $67 million during the first quarter of 2015. Strategic capital expenditures of US $48 millions in the quarter are mainly related to our capacity expansion projects throughout the region. |
Carlos Jacks added, “We already started operations in our expansion project in Nicaragua, and advanced considerably with our cement capacity expansion projects in Colombia and Costa Rica. We remain optimistic with the industry fundamentals in our main markets. We expect the infrastructure and housing sectors to remain important drivers for demand of our products over the following years.”
1
Consolidated Corporate Results
During the first quarter of 2015, controlling interest net income was a gain of US$44 million.
Net debt decreased by US$15 million, to US$1,125 million as of the end of the first quarter 2015.
Geographical Markets First Quarter 2015 Highlights
Operating EBITDA in Colombia decreased by 36% to US$59 million versus US$93 million in the first quarter of 2014, with a decline of 27% in net sales reaching US$176 million.
In Panama, operating EBITDA decreased by 11% to US$29 million during the quarter. Net sales reached US$72 million in the first quarter of 2015, a decrease of 6% compared to the same period in 2014.
In Costa Rica, operating EBITDA reached US$20 million during the quarter, increasing by 33% compared to the same period a year ago. Net sales increased by 21% to US$43 million, compared to the first quarter of 2014.
In the Rest of CLH region net sales during the quarter reached US$66 million. Operating EBITDA in the quarter increased by 5%, versus the comparable period in 2014, 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.
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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
2015 FIRST QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Jesús Ortiz de la Fuente +57 (1) 603-9051 E-mail: jesus.ortizd@cemex.com
OPERATING AND FINANCIAL HIGHLIGHTS January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Consolidated cement volume 1,740 1,967 (12%) 1,740 1,967 (12%) (thousand of metric tons) Consolidated domestic gray cement 1,593 1,734 (8%) 1,593 1,734 (8%) volume (thousand of metric tons) Consolidated ready-mix volume 848 819 4% 848 819 4% (thousand of cubic meters) Consolidated aggregates volume 2,112 1,947 8% 2,112 1,947 8% (thousand of metric tons) Net sales 354 423 (16%) 354 423 (16%) Gross profit 170 208 (18%) 170 208 (18%) Gross profit margin 48.1% 49.2% (1.1pp) 48.1% 49.2% (1.1pp) Operating earnings before other 90 118 (24%) 90 118 (24%) expenses, net Operating earnings before other 25.5% 27.9% (2.4pp) 25.5% 27.9% (2.4pp) expenses, net, margin Controlling interest net income 44 55 (20%) 44 55 (20%) Operating EBITDA 112 141 (20%) 112 141 (20%) Operating EBITDA margin 31.8% 33.4% (1.6pp) 31.8% 33.4% (1.6pp) Free cash flow after maintenance 67 80 (17%) 67 80 (17%) capital expenditures Free cash flow 18 75 (75%) 18 75 (75%) Net debt 1,125 1,234 (9%) 1,125 1,234 (9%) Total debt 1,188 1,292 (8%) 1,188 1,292 (8%) Earnings per share 0.08 0.10 (20%) 0.08 0.10 (20%) Shares outstanding at end of period 556 556 0% 556 556 0% Employees 4,982 4,382 14% 4,982 4,382 14% 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 first quarter of 2015 declined by 16% compared to the first quarter of 2014, mainly as a result of foreign exchange fluctuations and the effect of lower cement volumes from our operations in Colombia. Cost of sales as a percentage of net sales during the first quarter of 2015 increased by 1.1pp from 50.8% to 51.9% on a year-over-year basis. Operating expenses as a percentage of net sales during the first quarter increased by 1.3pp from 21.3% to 22.6% compared to the same period in 2014. Operating EBITDA during the first quarter reached US$112 million, declining by 20% compared to the first quarter of 2014. This decline is mainly explained by foreign exchange fluctuations and the effect of lower cement volumes from our operations in Colombia. Operating EBITDA margin during the first quarter of 2015 declined by 1.6pp, compared to the first quarter of 2014. Controlling interest net income during the first quarter of 2015 reached US$44 million, declining by 20% compared to the first quarter of 2014. Total debt at the end of the first quarter of 2015 reached US$1,188 million. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2015 First Quarter Results Page 2
OPERATING RESULTS Colombia January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 176 242 (27%) 176 242 (27%) Operating EBITDA 59 93 (36%) 59 93 (36%) Operating EBITDA margin 33.7% 38.2% (4.5pp) 33.7% 38.2% (4.5pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January – March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume (15%) (15%) 5% 5% 5% 5% Price (USD) (21%) (21%) (17%) (17%) (20%) (20%) Price (local currency) (1%) (1%) 3% 3% (1%) (1%) In Colombia, during the first quarter our domestic gray cement volumes declined by 15%, while our ready-mix and aggregates volumes increased by 5%, compared to the first quarter of 2014. Cement volumes were affected during the quarter by two main factors. First, a very strong comparison versus first quarter 2014 when we had 34% year-over-year increase and second, our price increase at the beginning of the year which resulted in a decline in our market share. The residential sector, including self-construction and formal housing, continued its positive trend. Infrastructure remained also an important driver for demand of our products with the execution of several ongoing highway projects. The industrial and commercial sectors continued with a strong performance driven by office and commercial buildings. Panama January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 72 76 (6%) 72 76 (6%) Operating EBITDA 29 32 (11%) 29 32 (11%) Operating EBITDA margin 39.9% 42.5% (2.6pp) 39.9% 42.5% (2.6pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January – March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume 9% 9% (9%) (9%) 0% 0% Price (USD) (3%) (3%) (2%) (2%) (2%) (2%) Price (local currency) (3%) (3%) (2%) (2%) (2%) (2%) In Panama during the first quarter our domestic gray cement increased by 9% while our ready-mix declined by 9% and our aggregates volumes remained stable, compared to the first quarter of 2014. During the quarter, there were higher volumes to the Panama Canal expansion project compared with those in first quarter 2014, when this project suffered from stoppages. Excluding volumes to this project, our volumes increased by 4% during the quarter on a year-over-year basis. The residential sector continued to be an important driver of demand for our products. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2015 First Quarter Results Page 3
OPERATING RESULTS Costa Rica January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 43 35 21% 43 35 21% Operating EBITDA 20 15 33% 20 15 33% Operating EBITDA margin 45.7% 41.6% 4.1pp 45.7% 41.6% 4.1pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January –March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume 8% 8% 10% 10% 45% 45% Price (USD) 6% 6% (7%) (7%) (4%) (4%) Price (local currency) 5% 5% (7%) (7%) (5%) (5%) In Costa Rica, during the first quarter our domestic gray cement, ready-mix, and aggregates volumes increased by 8%, 10% and 45%, respectively, compared to the first quarter of 2014. Infrastructure continued to be the main driver of cement demand, with ongoing projects like the Chucás hydroelectric plant as well as the Northern Interamerican Road project. Rest of CLH January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 66 70 (6%) 66 70 (6%) Operating EBITDA 20 19 5% 20 19 5% Operating EBITDA margin 30.3% 27.1% 3.2pp 30.3% 27.1% 3.2pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January – March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume (9%) (9%) 19% 19% 60% 60% Price (USD) (1%) (1%) 3% 3% 5% 5% Price (local currency) 4% 4% 5% 5% 8% 8% In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the first quarter of 2015 our domestic gray cement and decreased by 9%, while our ready-mix and aggregates volumes increased by 19% and 60%, respectively, compared to the first quarter of 2014. The positive performance in our cement volumes in Nicaragua was offset by weak demand conditions in the other markets. New ongoing housing projects in Nicaragua, along with industrial-and-commercial activity in Guatemala, remained the main drivers of demand for our products. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2015 First Quarter Results Page 4
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January – March First Quarter 2015 2014 % Var 2015 2014 % Var Operating earnings before other expenses, net 90 118 (24%) 90 118 (24%) + Depreciation and operating amortization 22 23 22 23 Operating EBITDA 112 141 (20%) 112 141 (20%) - Net financial expense 21 24 21 24 - Capital expenditures for maintenance 4 9 4 9 - Change in working capital 5 7 5 7 - Taxes paid 14 21 14 21 - Other cash items (net) 1 0 1 0 Free cash flow after maintenance capital expenditures 67 80 (17%) 67 80 (17%) - Strategic capital expenditures 48 5 48 5 Free cash flow 18 75 (75%) 18 75 (75%) In millions of US dollars. Information on Debt Fourth First Quarter First Quarter Quarter Var 2014 2015 2014 2015 2014 % Total debt (1)(2) 1,188 1,292 (8%) 1,191 Currency denomination Short- term 12% 27% 12% US dollar 99% 98% Long -term 88% 73% 88% Colombian peso 1% 2% Cash and cash equivalents 63 58 8% 52 Interest rate Net debt 1,125 1,234 (9%) 1,140 Fixed 79% 80% Variable 21% 20% 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. 2015 First 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 – March First Quarter 2015 2014 % Var. 2015 2014 % Var. INCOME STATEMENT Net Sales 353,838 422,753 (16%) 353,838 422,753 (16%) Cost of Sales (183,606) (214,748) 15% (183,606) (214,748) 15% Gross Profit 170,232 208,006 (18%) 170,232 208,006 (18%) Operating Expenses (80,045) (89,939) 11% (80,045) (89,939) 11% Operating Earnings Before Other Expenses, Net 90,187 118,067 (24%) 90,187 118,067 (24%) Other expenses, Net (1,980) (224) (785%) (1,980) (224) (785%) Operating Earnings 88,207 117,843 (25%) 88,207 117,843 (25%) Financial Expenses (20,589) (24,403) 16% (20,589) (24,403) 16% Other Income (Expenses), Net 4,703 854 451% 4,703 854 451% Net Income Before Income Taxes 72,321 94,294 (23%) 72,321 94,294 (23%) Income Tax (28,357) (39,474) 28% (28,357) (39,474) 28% Consolidated Net Income 43,964 54,820 (20%) 43,964 54,820 (20%) Non-controlling Interest Net Income 173 200 (13%) 173 200 (13%) CONTROLLING INTEREST NET INCOME 43,791 54,620 (20%) 43,791 54,620 (20%) Operating EBITDA 112,426 140,999 (20%) 112,426 140,999 (20%) Earnings per share 0.08 0.10 (20%) 0.08 0.10 (20%) As of March 31 As of March 31 BALANCE SHEET 2015 2014 Total Assets 3,458,650 3,812,871 Cash and Temporary Investments 62,561 57,906 Trade Accounts Receivables 134,445 172,965 Other Receivables 31,315 92,248 Inventories 105,726 113,215 Other Current Assets 26,980 29,553 Current Assets 361,028 465,887 Fixed Assets 1,109,691 1,182,463 Other Assets 1,987,931 2,164,521 Total Liabilities 2,076,453 2,454,102 Current Liabilities 435,667 686,128 Long-Term Liabilities 1,629,921 1,755,529 Other Liabilities 10,865 12,446 Consolidated Stockholders’ Equity 1,382,197 1,358,769 Non-controlling Interest 5,600 5,660 Stockholders’ Equity Attributable to Controlling Interest 1,376,597 1,353,109 Please refer to definition of terms and disclosure for presentation of financial information. 2015 First 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 – March First Quarter 2015 2014 % Var. 2015 2014 % Var. INCOME STATEMENT Net Sales 886,263 849,516 4% 886,263 849,516 4% Cost of Sales (459,882) (431,532) (7%) (459,882) (431,532) (7%) Gross Profit 426,381 417,984 2% 426,381 417,984 2% Operating Expenses, net (200,489) (180,731) (11%) (200,489) (180,731) (11%) Operating Earnings Before Other Expenses, Net 225,892 237,253 (5%) 225,892 237,253 (5%) Other Expenses, Net (4,958) (449) (1004%) (4,958) (449) (1004%) Operating Earnings 220,934 236,804 (7%) 220,934 236,804 (7%) Financial Expenses (51,571) (49,038) (5%) (51,571) (49,038) (5%) Other Income (Expenses) Financial, net 11,780 1,716 586% 11,780 1,716 586% Net Income Before Income Taxes 181,143 189,482 (4%) 181,143 189,482 (4%) Income Tax (71,027) (79,322) 10% (71,027) (79,322) 10% Consolidated Net Income 110,117 110,161 (0%) 110,117 110,161 (0%) Non-controlling Interest Net Income 434 402 8% 434 402 8% CONTROLLING INTEREST NET INCOME 109,683 109,759 (0%) 109,683 109,759 (0%) Operating EBITDA 281,596 283,335 (1%) 281,596 283,335 (1%) Earnings per share 197.99 198.11 (0%) 197.99 198.11 (0%) As of March 31 As of March 31 BALANCE SHEET 2015 2014 Total Assets 8,909,656 7,493,512 Cash and Temporary Investments 161,160 113,805 Trade Accounts Receivables 346,338 339,931 Other Receivables 80,670 181,298 Inventories 272,355 222,503 Other Current Assets 69,503 58,081 Current Assets 930,025 915,617 Fixed Assets 2,858,621 2,323,918 Other Assets 5,121,010 4,253,977 Total Liabilities 5,349,047 4,823,096 Current Liabilities 1,122,299 1,348,461 Long-Term Liabilities 4,198,759 3,450,176 Other Liabilities 27,989 24,459 Consolidated Stockholders’ Equity 3,560,608 2,670,416 Non-controlling Interest 14,425 11,125 Stockholders’ Equity Attributable to Controlling Interest 3,546,184 2,659,292 Please refer to definition of terms and disclosure for presentation of financial information. 2015 First 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 – March First Quarter 2015 2014 2015 2014 NET SALES % Var. % Var. Colombia 176,246 242,394 (27%) 176,246 242,394 (27%) Panama 71,915 76,115 (6%) 71,915 76,115 (6%) Costa Rica 43,043 35,467 21% 43,043 35,467 21% Rest of CLH 65,649 69,830 (6%) 65,649 69,830 (6%) Others and intercompany eliminations (3,015) (1,051) (187%) (3,015) (1,051) (187%) TOTAL 353,838 422,754 (16%) 353,838 422,754 (16%) GROSS PROFIT Colombia 85,493 127,598 (33%) 85,493 127,598 (33%) Panama 31,635 35,269 (10%) 31,635 35,269 (10%) Costa Rica 24,442 18,124 35% 24,442 18,124 35% Rest of CLH 25,304 23,972 6% 25,304 23,972 6% Others and intercompany eliminations 3,357 3,043 10% 3,357 3,043 10% TOTAL 170,232 208,006 (18%) 170,232 208,006 (18%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 52,629 84,550 (38%) 52,629 84,550 (38%) Panama 23,856 28,142 (15%) 23,856 28,142 (15%) Costa Rica 18,009 13,006 38% 18,009 13,006 38% Rest of CLH 18,688 17,814 5% 18,688 17,814 5% Others and intercompany eliminations (22,996) (25,446) 10% (22,996) (25,446) 10% TOTAL 90,187 118,066 (24%) 90,187 118,066 (24%) OPERATING EBITDA Colombia 59,313 92,617 (36%) 59,313 92,617 (36%) Panama 28,662 32,344 (11%) 28,662 32,344 (11%) Costa Rica 19,679 14,748 33% 19,679 14,748 33% Rest of CLH 19,924 18,890 5% 19,924 18,890 5% Others and intercompany eliminations (15,151) (17,600) 14% (15,151) (17,600) 14% TOTAL 112,426 140,999 (20%) 112,426 140,999 (20%) OPERATING EBITDA MARGIN Colombia 33.7% 38.2% 33.7% 38.2% Panama 39.9% 42.5% 39.9% 42.5% Costa Rica 45.7% 41.6% 45.7% 41.6% Rest of CLH 30.3% 27.1% 30.3% 27.1% TOTAL 31.8% 33.4% 31.8% 33.4% Please refer to definition of terms and disclosure for presentation of financial information. 2015 First 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 –– March First Quarter 2015 2014 % Var. 2015 2014 % Var. Total cement volume 1 1,740 1,967 (12%) 1,740 1,967 (12%) Total domestic gray cement volume 1,593 1,734 (8%) 1,593 1,734 (8%) Total ready-mix volume 848 819 4% 848 819 4% Total aggregates volume 2,112 1,947 8% 2,112 1,947 8% Per-country volume summary January - March First Quarter First Quarter 2015 Vs. DOMESTIC GRAY CEMENT VOLUME 2015 Vs. 2014 2015 Vs. 2014 Fourth Quarter 2014 Colombia (15%) (15%) (20%) Panama 9% 9% 9% Costa Rica 8% 8% 17% Rest of CLH (9%) (9%) 1% READY-MIX VOLUME Colombia 5% 5% (3%) Panama (9%) (9%) (7%) Costa Rica 10% 10% 15% Rest of CLH 19% 19% 6% AGGREGATES VOLUME Colombia 5% 5% (4%) Panama 0% 0% (9%) Costa Rica 45% 45% 14% Rest of CLH 60% 60% 18% 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. 2015 First Quarter Results Page 9
OPERATING RESULTS Price Summary Variation in U.S. Dollars January - March First Quarter First Quarter 2015 Vs. DOMESTIC GRAY CEMENT PRICE 2015 Vs. 2014 2015 Vs. 2014 Fourth Quarter 2014 Colombia (21%) (21%) (9%) Panama (3%) (3%) 0% Costa Rica 6% 6% 2% Rest of CLH (*) (1%) (1%) (2%) READY-MIX PRICE Colombia (17%) (17%) (9%) Panama (2%) (2%) (1%) Costa Rica (7%) (7%) (3%) Rest of CLH (*) 3% 3% 1% AGGREGATES PRICE Colombia (20%) (20%) (13%) Panama (2%) (2%) (2%) Costa Rica (4%) (4%) 1% Rest of CLH (*) 5% 5% 10% Variation in Local Currency January - March First Quarter First Quarter 2015 Vs. DOMESTIC GRAY CEMENT PRICE 2015 Vs. 2014 2015 Vs. 2014 Fourth Quarter 2014 Colombia (1%) (1%) 4% Panama (3%) (3%) 0% Costa Rica 5% 5% 2% Rest of CLH (*) 4% 4% (2%) READY-MIX PRICE Colombia 3% 3% 4% Panama (2%) (2%) (1%) Costa Rica (7%) (7%) (3%) Rest of CLH (*) 5% 5% 1% AGGREGATES PRICE Colombia (1%) (1%) (1%) Panama (2%) (2%) (2%) Costa Rica (5%) (5%) 1% Rest of CLH (*) 8% 8% 10% (*) Volume weighted-average price. Please refer to definition of terms and disclosure for presentation of operating results. 2015 First Quarter Results Page 10
OTHER ACTIVITIES AND INFORMATION Antitrust Investigation in Colombia Regarding this matter, as of March 31, 2015, the non-binding report prepared by the Superintendent Delegate for Competition Protection has not been issued. A decision by the Colombian Superintendency of Industry and Commerce on this matter is expected during the remainder of 2015. 2015 First Quarter Results Page 11
DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results Consolidated financial information Under IFRS, CLH reports its consolidated results in its functional When reference is made to consolidated financial information means currency, which is the US Dollar, by translating the financial statements the financial information of CLH together with its consolidated of foreign subsidiaries using the corresponding exchange rate at the subsidiaries. reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. Presentation of financial and operating information Individual information is provided for Colombia, Panama and Costa For the reader’s convenience, Colombian peso amounts for the Rica. consolidated entity are calculated by converting the US dollar amounts Countries in Rest of CLH include Nicaragua, Guatemala, El Salvador and using the closing COP/US$ exchange rate at the reporting date for Brazil. 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 March 31, 2015 and March 31, 2014 was $2,576.05 and $1,965.32 Colombian pesos per US dollar, respectively, and (ii) the consolidated results for the First quarter of 2015 and for the First quarter of 2014 were $2,504.71 and $2,009.48 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.” Exchange rates January – March January – March First quarter 2015 2014 2015 2014 2015 2014 Closing Closing Average Average Average Average Colombian peso 2,576.05 1,965.32 2,504.71 2,009.48 2,504.71 2,009.48 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 539.08 553.63 540.91 542.27 540.91 542.27 Euro 1.0738 1.3776 1.1085 1.3680 1.1085 1.3680 Amounts provided in units of local currency per US dollar. 2015 First 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. 2015 First Quarter Results Page 13
| Exhibit 3
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RESULTS1Q15
April 23, 2015
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Forward looking information
Thispresentationcontainscertainforward-lookingstatementsandinformationrelatingtoCEMEXLatamHoldings,S.A.anditssubsidiaries(collectively,“CLH”)
thatarebasedonitsknowledgeofpresentfacts,expectationsandprojections,circumstancesandassumptionsaboutfutureevents.
Manyfactorscouldcausetheactualresults,performanceorachievementsofCLHtobemateriallydifferentfromanyfutureresults,
performanceorachievementsthatmaybeexpressedorimpliedbysuchforward-lookingstatements,including,amongothers,changesingeneraleconomic,political,governmental,andbusinessconditions
globallyandinthecountriesinwhichCLHandCEMEX,S.A.B.deC.V.anditssubsidiaries(“CEMEX”)operate,CLH´sabilityto
complywiththeframeworkagreementsignedwithCEMEX,CEMEX’sabilitytosatisfyitsobligationsunderitsdebtagreementsas
wellasundertheindenturesthatgovernitshighyieldnotes,CLHandCEMEX’sabilitytoachieveanticipatedcostsavings,changesininterestrates,
changesininflationrates,changesinexchangerates,thecyclicalactivityoftheconstructionsectorgenerally,changesincementdemandandprices,
CLHandCEMEX’sabilitytobenefitfromgovernmenteconomicstimulusplans,changesinrawmaterialandenergyprices,changesin
businessstrategy,changesintheprevailingregulatoryframework,naturaldisastersandotherunforeseeneventsandvariousotherfactors.
Shouldoneormoreoftheserisksoruncertaintiesmaterialize,orshouldunderlyingassumptionsproveincorrect,actualresultsmayvarymaterially
fromthosedescribedhereinasanticipated,believed,estimated,expectedortargeted.Forward-lookingstatementsaremadeasofthedatehereof,andCLHdoesnotintend,norisitobligated,toupdatetheseforward-lookingstatements,whetherasaresultofnewinformation,futureev
entsorotherwise.
Unlessthecontextotherwiserequiresit,allreferencestopricesinthisdocumentmeansourpricesforourproducts.
UNLESSOTHERWISENOTED,ALLCONSOLIDATEDFIGURESAREPRESENTEDINDOLLARSANDAREBASEDONTHE
FINANCIALSTATEMENTSOFEACHCOUNTRYPREPAREDUNDERINTERNATIONALFINANCIALREPORTINGSTANDARDS.
CopyrightCEMEXLatamHoldings,S.A.anditssubsidiaries.
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Financial Results SummaryRecord sales in Costa Ricaand positive results in Nicaragua were offset by lower sales mainly in Colombia
Operating EBITDA margin
declined by 1.6pp during 1Q15 on a year over year basis, mainly by the margin decline in our operations in Colombia 3
Operating EBITDA in 1Q15
also on an adjusted basis1, declined by 10%, compared to 1Q14
(1)Adjusting for foreign-exchange fluctuations
-16%
Operating EBITDA(US$M)Net Sales (US$M)
-20%
141
1Q14112
1Q15
1Q15
354
1Q14423
33.4%1Q14
31.8%
1Q15Margin EBITDA(%)
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Consolidated Volumes andPrices
Positive 1Q15 volume
trends in ready-mix and aggregates, growing 4% and 8%, respectively, compared with 1Q14
Our consolidated prices, adjusted for the foreign exchange fluctuations, for cement and ready-mix increased by 2% and 1% respectively, on a sequential basis
(1)Like-to-likeprices adjusted for foreign-exchangefluctuations
Record cement volumes
in recent history in our operations in Costa Rica 1Q15 vs.1Q14 1Q15 vs.4Q14
Volume (8%) (9%)
Price (US) (11%) (4%)
Price (LtL1) 0% 2%
Volume 4% (3%)
Price (US) (13%) (7%)
Price (LtL1) 2% 1%
Volume 8% (3%)
Price (US) (16%) (10%)
Price (LtL1) (1%) (2%)
Domesticgray cement
Aggregates
Ready-mix concrete
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REGIONALHIGHLIGHTS
Results 1Q15
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Results Highlights Colombia
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Colombia –Results HighlightsOur cement volumes
in 1Q15 declined 15% mainly by:
-Market share loss due to our price increases in January
-A strong 1Q14 comparison Our prices show a positive trend in cement increasing by 4% in local currency during 1Q15 on a sequential basis, reaching levels close to those in 1Q14
Operating EBITDA in 1Q15
also on an adjusted basis1, declined by 20%, with 1Q14
Net sales in 1Q15
declined by 9%, year-over-year, on an adjusted basis11Q15 vs. 1Q14 1Q15 vs. 4Q14
Cement (1%) 4%
Ready-mix 3% 4%
Aggregates (1%) (1%)
(1)Adjusting for foreign-exchange fluctuations
Financial Summary
US$ Million
Volume
Price (Local Currency)
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Colombia -Downward economic adjustments –Low potential impact is expected for our businessHousing and infrastructure programs already approved would not be affected8
GDP forecasthas been reduced to 3.6% by the Colombian Central BankUS $6.8 BBudget cuts announced for next 4 years
~ 1%Estimated potential impact of budget cuts in national cement consumption
Government has expressedits commitment to continue investing in infrastructure and housing
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Colombia -In the midst of economic slowdown, a bright outlook for construction
~ US $21 BProbable additional funds to those approved, that could have an impact in construction US $14 B approved fundsrelated to projects in Infrastructure, transportation and housing include:
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400 thousand social homes |
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20 projects in 4G program |
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US $1.1 B approved for works in 39 airports, according to the Minister of Transportation |
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From the ~US $2.1 B from royalties for transportation projects (2012 -2014 period): -More than 50% of projects are still ongoing-About 19% have not been bid |
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Colombia –4G infrastructure projects outlook
Source: Based on information from AgenciaNacionalde Infraestructura*
Current Concessions
New Concessions
Awarded Concessions
CLH’s Cement Plants & Grinding Mills
Second Wave
These 20 projects representan investment of about US $8.8 B. First 10 projects awarded, the remaining expected to be awarded during June-July 2015
Our cement volumes for infrastructure sector
expected to grow in the high-single digits, compared to 2014.
Funds have been earmarked
by CONPES (Planning and Ministries) and CONFIS (fiscal assessment group) for first 20 projects
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Colombia –Government housing initiatives 2014-2018Our volumes in 2015to the residential sector are expected to grow at a mid-single digit rate115 ,000 –7,000 houses expectedto be built under our housing solutions business during 2015
100,000 unitsin new free-home program130,000new subsidies onmortgagerate100,000unitsundernew middle-incomesubsidyprogram
86,000 unitsunderpreviouslyawardedsocial housingsubsidyprogramFunds
Funds for US $ 4 B earmarked to fund these 4 different programs during the next four years
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Results
Highlights
Panama
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Panama –Results Highlights
Excluding volumes to the Canal Project
our cement volumes during 1Q15 increased by 4% year-over-yearEBITDA margin in 1Q15declined by 2.6pp, given the higher cement volumes to the Canal, as well as scheduled maintenance work
Lower ready-mix volumes
are mainly associated with the conclusion of the CintaCosteraand the CorredorNorte projects
Net sales and EBITDA
declined by 6% and 11%, respectively, compared with the same period of last year 1Q15 vs. 1Q14 1Q15 vs. 4Q14
Cement (3%) 0%
Ready-mix (2%) (1%)
Aggregates (2%) (2%)
Financial SummaryUS$ MillionVolumePrice
(Local Currency)
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Panama–Sector Highlights
The residential sector remained the main driver for demand of our products during 1Q155-year public investment planfor about US $11 B announced by the Government includes subway expansions, interstate highways and water management projects, among othersOur volumes in 2015to the residential and industrial and commercial sectors are expected to grow at a mid-single digit rate
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Results
Highlights
Costa Rica
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Costa Rica –Results Highlights
Net Sales record
in 1Q15, achieving year-over-year growth of 21%EBITDA margin expansionof 4.1pp in 1Q15 on a year-over-year basis
Growth in volumes
of 8%, 10%, and 45% for cement, ready-mix and aggregates, respectively, on a year-over-year basis
Cement prices increased
by 5% year-over-year and by 2% sequentially, ready-mix and aggregates prices declined by 7% and 5%, respectively, compared with 1Q141Q15 vs. 1Q14 1Q15 vs. 4Q14
Cement 5% 2%
Ready-mix (7%) (3%)
Aggregates (5%) 1%
VolumePrice (Local Currency)
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Costa Rica–Sector HighlightsMomentum in the infrastructure sectorexpected to increase once projects such as the new container port terminal, the Capulíndam, and the J. Santamaríaairport expansion begin constructionPositive effect in volumesdue to the beginning of construction of the Chucáshydroelectricproject
Medium-term outlook
remains positive. Our capacity expansion project continues according to plan, and we expect to conclude the first stage during 2Q15
Infrastructure remained the main driver forcement demand in 1Q15
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Results
Highlights
Rest of CLH
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Rest of CLH –Results HighlightsPositive growth trend continuesin all of our products in Nicaragua on a year-over-year basis. This increase was more than offset by the results in the other operations
Net sales increase at a double-digit rate year-over-year
for the fourth consecutive quarter in Nicaragua
Higher prices in our 3 products
in local currency terms during 1Q15, growing by 4% in cement, 5% in ready-mix, and 8% in aggregates versus the same period in 20141Q15 vs. 1Q14 1Q15 vs. 4Q14
Cement 4% (2%)
Ready-mix 5% 1%
Aggregates 8% 10%
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Rest of CLH –Sector HighlightsVolume growth in Nicaragua
is explained mainly by increased consumption from the infrastructure and residential sectorsWe expect positive activityin the commercial sector to continue throughout the year in Guatemala
We expect to continue participating
in the Government’s housing projects for the victims of last year’s earthquake in Nicaragua
In Guatemala, during 1Q15 we continued participating in the construction of the first wind farm in the country||
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FREE CASH FLOW
1Q15 Results
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Free Cash Flow22
Free Cash Flow
after maintenance capexreached US$ 67 million in 1Q15
Net debt was reduced by
about US $15 million in 1Q15Strategic capexwas US $48 Min the quarter, and was used mainly for our expansion projects in Colombia, Nicaragua and Costa RicaFree Cash Flow after total capital expenditure reached US $18 M during the first quarterUS$ Million 1Q15 1Q14 % var
Op. EBITDA 112 141 (20%)
-Net Financial Expense 21 24
-Maintenance Capex 4 9
-Change in Working Cap 5 7
-Taxes Paid 14 21
-Other Cash Items (net) 1 0
Free Cash Flow 67 80 (17%)
-Strategic Capex 48 5
Free Cash Flow 18 75 (75%)
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GUIDANCE1Q15 Results
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2015 Guidance
Cement
Ready -Mix
Aggregates
(1%)
6%
9%
Cement
Ready -Mix
Aggregates
(7%)
4%
4%
Cement
Ready -Mix
Aggregates
Mid single-digit growth
Low-teens growth
Low-teens growth
Colombia
Panama
Costa Rica
Volume YoY%
On a consolidated basis
we expect our cement, ready-mix and aggregates volumes to increase by 2%, 10% and 10%, respectively during 2015Maintenance capexis expected to be about US $45 million in 2015Strategic capexis expected to reach US $190 million in 2015Cash taxesona consolidatedbasisare expectedtoincreasebyabout35% in 2015 vs. 2014
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APPENDIX
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Consolidateddebt maturity profile US$ Million
US $1,188 million
Total debt as of March 31, 2015
2015
112
2016
254
2017
2018
680
142
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DefinitionsCement:When providing cement volume variations, refers to our domestic gray cement operations.LC:Local currency.Like-to-like Percentage Variation (l-t-l%var):
Percentage variations adjusted for investments/divestments and currency fluctuations.Maintenancecapital 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.
OperatingEBITDA:
Operating earnings before other expenses, net plus depreciation and operating amortization.pp:
Percentage points.
Restof CLH:
IncludesBrazil, Guatemala, El Salvador and Nicaragua.
Strategiccapital 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.
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RelationsJesúsOrtiz de la FuentePhone: +57(1) 603-9051E-mail: jesus.ortizd@cemex.com
||Contact information
Stock InformationColombian Stock ExchangeCLH
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RESULTS1Q15
April 23, 2015