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, 2016
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. | Presentation that includes information of CEMEX, S.A.B. de C.V. (NYSE:CX) (“CEMEX”) discussed by Fernando A. González Olivieri, CEMEX’s Chief Executive Officer, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 2. | Presentation that includes 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, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 3. | Presentation that includes information of CEMEX’s financial strategy discussed by José Antonio González Flores, CEMEX’s Executive Vice President of Finance and Chief Financial Officer, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 4. | Presentation that includes information of CEMEX’s business and operations in Europe discussed by Jaime Gerardo Elizondo Chapa, President of CEMEX Europe, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 5. | Presentation that includes information of CEMEX’s business and operations in Asia, the Middle East and Africa discussed by Joaquín Miguel Estrada Suarez, President of CEMEX Asia, Middle East and Africa, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 6. | Presentation that includes information of CEMEX’s business and operations in Mexico discussed by Juan Romero Torres, President of CEMEX Mexico, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 7. | Presentation that includes information of CEMEX’s business and operations in South, Central America and the Caribbean discussed by Jaime Muguiro Domínguez, President of CEMEX South, Central America and the Caribbean, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 8. | Presentation that includes information of CEMEX’s business and operations in the USA discussed by Ignacio Madridejos Fernández, President of CEMEX USA, on March 17, 2016, 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, 2016 | By: |
/s/ Rafael Garza | ||
| Name: | Rafael Garza | |||
| Title: | Chief Comptroller | |||
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EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Presentation that includes information of CEMEX, S.A.B. de C.V. (NYSE:CX) (“CEMEX”) discussed by Fernando A. González Olivieri, CEMEX’s Chief Executive Officer, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 2. | Presentation that includes 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, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 3. | Presentation that includes information of CEMEX’s financial strategy discussed by José Antonio González Flores, CEMEX’s Executive Vice President of Finance and Chief Financial Officer, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 4. | Presentation that includes information of CEMEX’s business and operations in Europe discussed by Jaime Gerardo Elizondo Chapa, President of CEMEX Europe, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 5. | Presentation that includes information of CEMEX’s business and operations in Asia, the Middle East and Africa discussed by Joaquín Miguel Estrada Suarez, President of CEMEX Asia, Middle East and Africa, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 6. | Presentation that includes information of CEMEX’s business and operations in Mexico discussed by Juan Romero Torres, President of CEMEX Mexico, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 7. | Presentation that includes information of CEMEX’s business and operations in South, Central America and the Caribbean discussed by Jaime Muguiro Domínguez, President of CEMEX South, Central America and the Caribbean, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
| 8. | Presentation that includes information of CEMEX’s business and operations in the USA discussed by Ignacio Madridejos Fernández, President of CEMEX USA, on March 17, 2016, during CEMEX’s annual event, CEMEX Day. | |
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Fernando A. González Chief Executive Officer Exhibit 1
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
What is our strategic direction? What is new in our approach? How we are navigating the turbulent short-term? How we are creating value over the long-term? What can you expect from us today
Our strategy creates value… Create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix, and related businesses Strategy Customers Markets Sustainability People
… supported by our operating model We leverage our knowledge and scale to establish best practices and common processes worldwide, in order to operate more effectively and achieve greatest value Operating model
Emphasizing global networks as key management levers… Productivity gains Revenue enhancement Knowledge sharing
… because cross-functional responsibilities strengthen our global operating model Fernando A. González CEO Luis Hernández Adm. & Org. Ramiro Villarreal Legal José Antonio González CFO Maher Al-Haffar IR, Comm. & P.A. Mauricio Doehner Corp. Affairs & ERM Juan Pablo San Agustín Planning & Bus. Dev. USA Ignacio Madridejos Juan Romero Mexico Jaime Muguiro SCA&C Jaime Elizondo Europe Joaquín Estrada AMEA Customer Centricity Aggregates Grow the Pie Ready Mix Cement Ops. Supply Chain Health & Safety Energy Sustainability Global Technology Global Trading Global Sourcing Prod. Dev. & Const. Trends
We remain focused on our top priorities Health & Safety Zero for Life Return to Investment Grade Regain financial flexibility Customer Centricity Reinforce our customer-focused culture Global CEMEX Leverage knowledge across our operations
2015 was a challenging year Outsized appreciation of the dollar Slowdown of the Chinese economy Decreasing oil and other commodity prices Weaker-than-expected growth in many countries Capital outflows from emerging markets
Solid operational improvements, offset by FX headwinds… EBITDA Variation ($ B) 2.64 2.70 (1) -0.40 3.03 -0.15 Variable cost & distr. -0.16 0.52 0.13 +12% -2% 1) Includes impact of dollarized costs in our operations
… but we significantly improved free cash flow generation… 2014 Δ ’15 EBITDA Adj. ‘14 EBITDA WC 2015 0.2 - 0.1 0.1 0.3 0.2 0.6 0.1 Fin. Exp. Taxes Capex Other - 0.1 - 0.0 Free Cash Flow Variation ($ B) +0.4
… with close to $1 B reduction in free cash flow needs… Changes in FCF items ($ B) Maint. Capex Net Fin. Expense - 0.3 0.0 - 0.5 - 0.0 - 0.2
… leading to a $2.1 B reduction of our debt over 2 years -2.1 Total Debt Plus Perpetuals Variation ($ B) -1.2 - 0.8 - 0.5 5.5x 5.2x Leverage(1) - 0.3 0.5 1) Using Consolidated Funded Debt, as defined under our current Facilities Agreement
Highest consolidated cement and ready-mix volumes since 2008 Record SG&A%(1) over sales in 2015 of 10.4% Highest operating EBITDA margin since 2009 despite FX movements Lowest level of working capital days Over ~$900 M of asset sales in the last two years Highest FCF after strategic CAPEX since 2009 ~$2.1 B total debt reduction from December 2013 levels Positive net income for the first time in 6 years Bottom line, we managed to deliver 1) On a like-to-like basis, excludes distribution expense, depreciation and amortization
Delivering on our commitments Initiatives EOY 2015 Asset divestments $1.0 – 1.5 B In 2015 1½ years ~$0.7 B Cost and expense reductions $150 M FCF initiatives Total debt reduction $250 M $0.5 B – 1.0 B ~$475 M ~$1.0 B ~$150 M Targets
Foreign exchange and capital market volatility China deceleration Uncertainty about US economic strength and pace of Fed tightening Limited willingness to use fiscal stimulus Continued impact of low commodity prices in producing countries Geopolitical tensions and uncertainties We expect the operating environment to remain challenging
Amendment of Facilities Agreement to enhance covenant flexibility Payment of $350 M of convertibles, avoiding dilution and reducing cost Raising $1 B through sale of 10 year notes at 7.75% Consent for Philippines IPO, and filing of prospectus Divestment of our operations in Bangladesh & Thailand for $53 M Enhancement of corporate governance practices We are moving fast to execute our strategy….
... we are committing to additional measures... Initiatives Cost and expense reductions $150 M FCF initiatives Asset divestments Total debt reduction $200 M $1.0 – 1.5 B $0.5 B – 1.0 B In 2016 2 years Targets Total debt reduction Up to $2.0 B
... and we are increasing our 2016 FCF initiatives... Initiatives Cost and expense reductions $150 M FCF initiatives Asset divestments Total debt reduction $350 M $1.0 – 1.5 B $0.5 B – 1.0 B In 2016 2 years Targets Total debt reduction Up to $2.0 B
… to maintain momentum toward our mid-term goals After maintenance CAPEX ROCE = NOPAT / Net Assets EBITDA Margin >20% FCF(1)/EBITDA Conversion ~50% Leverage ratio <3.0x ROCE(2) >10%
In summary, why CEMEX? We are executing a comprehensive and resilient strategy We continue to create value through our pricing strategy Our portfolio is delivering higher growth in lower risk markets We are substantially improving operating efficiency We are generating more cash and paying down debt
Juan Pablo San Agustín EVP Strategic Planning & Business Development Exhibit 2
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
Volatility, the new new norm
“Create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix, and related businesses” Our strategy
Our strategy “Create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix, and related businesses” Productivity gains Revenue enhancement Knowledge sharing
Our strategy Working capital optimization Portfolio management Fixed asset sales “Create value by building and managing a global portfolio of integrated cement, aggregates, ready-mix, and related businesses” Productivity gains Revenue enhancement Knowledge sharing
Focused on improving our operating performance ROCE Improvement EBITDA Enhancement Pricing management Variable cost optimization Fixed cost containment Asset optimization Asset base efficiency VbV strategy Efficiency leadership Operating performance
Value before Volume: main driver for value creation Value before Volume Discipline Transparency Clear roadmaps Debundling 2012-2013 2014-2015 ≥ 2016 Planning/design Global rollout Foundations firm up Momentum build up Execution in full swing Optimization/enhancement
Operational cost Full cost recovery Value delivered Services & Surcharges Capacity management A fundamental shift of mindset across businesses… Cement Ready-mix From To Aggregates Markup Operational cost Cost of capital Full cost + COST + %
... well embedded throughout our operations +6% +5% 4% +8% ‘15 ‘14 ‘15 ‘14 ‘15 ‘14 ‘15 ‘14 +4% ‘15 ‘14 Price Evolution by Business Segment (LC/ton) Cement ‘15 ‘14 Ready-mix Aggregates United Kingdom Mexico Colombia USA ‘15 ‘14 ‘15 ‘14 ‘15 ‘14 ‘15 ‘14 ‘15 ‘14 ‘15 ‘14 1) Excluding freight to customer LC: Local currency (1)
>1,800 >520 Pricing already delivering significant results… 2% 1% 0% 4% 4% 4% 1) Volume growth shown on a pro-forma basis after recent transactions Pricing Benefits (l-t-l) ($ M) Cement Ready-mix Aggregates Volume Growth(1) 2014-2015 Price Growth (l-t-l) 2014-2015
… as well as Services & Surcharges Services & Surcharges CAGR from 2013 to 2015 180 30 20 3.4% 0.4% 1.2% >230 160 Cement Ready-mix Aggregates S&S(1) Benefits ($ M) S&S(1) 2015 ($ M) S&S(1) 2015 (% of sales) +19% (2)
Translating into sustainable margin expansion CEMEX EBITDA Margin % +135 bps >> Volume & costs 18.7% -25 bps Value before Volume
Disciplined management of our asset base ~ $ 3,360 M Working capital optimization ~ $700 M Portfolio management ~ $1,860 M Fixed asset sales ~ $800 M 2012 - 2015 ROCE Improvement Asset optimization Asset base efficiency VbV strategy Efficiency leadership Operating performance
We will continue managing our footprint… Divestment of non-core assets Sale of minority interests at accretive valuations Working capital optimization ~ $700 M Portfolio management ~ $1,860 M Fixed asset sales ~ $800 M 2016 – 2018E 1,000 - 1,500 Divestments ($ M)
… and to unlock value through sales of non-EBITDA generative assets > 700 Working capital optimization ~ $700 M Portfolio management ~ $1,860 M Fixed asset sales ~ $800 M Fixed Assets Sales ($ M)
We have already materially reduced working capital Working capital optimization ~ $700 M Portfolio management ~ $1,860 M Fixed asset sales ~ $800 M <20 <7 Working Capital (Days) >10 Days
Global Networks, the engine to drive value across the company Working capital optimization Portfolio management Fixed asset sales Pricing management Cost containment Productivity gains Revenue enhancement Knowledge sharing
What you should expect from us: Take advantage of improving demand dynamics in our key markets Continue to focus on Value before Volume and cost containment Proactively manage our portfolio Further optimize our asset base and release underutilized capital Leverage our global networks to bolster value creation
José Antonio González EVP of Finance (CFO) Cosmopolitan Tower, Mexico Exhibit 3
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
Significant accomplishments in 2015 despite FX headwinds EBITDA Margin 2,696 17.6% 2,636 18.7% -60 +1.1 p.p. Financial expense 1,334 1,151 -183 Change in working capital Avg. days 15 27 -291 20 -306 -7 FCF after total capex EBITDA to FCF conversion rate 210 7.8% 628 23.8% +418 +16.0 p.p. Total reported debt + perps 16,291 15,327 -964 FA leverage 5.2x 5.2x - Net Income -507 75 +582 2014 2015 Millions of USD YoY
Recover Investment Grade capital structure Financial Strategy Objective Reduce refinancing risk Lower financial cost Minimize dilution Delever Financial strategy designed to strengthen capital structure
Executing our strategy proactively Bank debt High yield notes Equity-linked Extended $3.8 B until 2020 Lowered interest rate Additional flexibility through revolver facility Refinanced $11.0 B in 2013–2015 Savings of $224 M in cash interest Addressed $1.7 B of convertibles due 2015–2016 Monetized ~$150 M of 2015 and 2016 CX capped calls Opportunities Progress
Debt reduction of $2.1 B in 2 years, despite relatively stable EBITDA -2.1 Total Debt Plus Perpetuals Variation ($ B) -1.1 - 0.8 - 0.5 - 0.3 0.5
Interest cost reduced by $272 M over last two years -47 Liability mgmt. -162 -63 Net Financial Expense ($ M)
CEMEX faces a very manageable debt maturity profile Avg. life of debt: 5.1 years Avg. cost: 5.9% Total reported debt + perpetuals as of December 31, 2015: $15.3 B ($ B) 0.4 3.3 2.5 1.4 1.5 1.9 1.0 2.0 0.4 0.6 1) Convertible Subordinated Notes include only the debt component of $1,474 M; total notional amount is about $1,563 M Bank debt Other debt Fixed income and perpetuals Convertibles(1) 0.4
Proactive implementation of financial strategy in 2016 Amend financial covenants in bank debt Delay tightening in financial leverage and coverage ratio limits by one year Increase financial flexibility Reduce refinancing risk/ lower cost $1.0 B 10-yr 7.75% Notes (upsized from $0.5 B) Increase average debt life by 0.4 yrs 11x oversubscribed, 62.5 bps tightening
March bond issuance improves maturity schedule Avg. life of debt: 5.7 years(1) Avg. cost: 5.7%(1) Total reported debt + perpetuals pro-forma(1) as of December 31, 2015: $15.0 B ($ B) 0.4 2.4 2.0 1.4 1.8 1.9 1.0 2.0 0.6 1) See annex 2) Convertible Subordinated Notes include only the debt component of $1,126 M; total notional amount is about $1,211 M Bank debt Other debt Fixed income and perpetuals Convertibles(2) 2016 new debt 0.4 1.0 3.25% Convertible 9.50% Notes 9.875% Notes Revolving Credit Facility 7.75% Notes
Effective debt currency mix based on financial strategy 83% USD 16% EUR 26% USD 36% MXN 17% LATAM 6% other $31.5 B 51% USD 14% MXN 5% LATAM 13% other $2.6 B 2015 15% EUR-like 17% EUR-like $15.3 B
USD cash interest expense and EBITDA generation relationship has improved 1) Includes U.S., Panama and Puerto Rico 2) Considering perpetual and convertible securities 3) Analysts’ consensus on USD generated EBITDA for 2016 USD Assets vs. USD Debt ($ B) USD EBITDA vs. Cash Interest Expense ($ B) USD assets(1) USD debt(2) E (3) USD cash int. exp.
2 year deleveraging building blocks EBITDA growth Every +$200 M 1-year ~0.4x Deleverage Contribution FCF available to pay debt Asset sales $600 M2015 + EBITDA growth ~0.3x $1.0 - $1.5 B 2-years ~0.2x 2018 Convertible Notes $690 M ~0.2x Recurring Addtl. measures
What you should expect from us: Maintain ample liquidity and reduce refinancing risk Lower financial cost De-lever Continue strengthening capital structure
Annex Footnote from slide 10 On a pro-forma basis, giving effect to the following payments and transactions (including expected use of proceeds) as if they had occurred on 12-31-15: (a) payment with cash-in hand of US$352 M of 3.250% Convertible Subordinated Notes due 2016; (b), issuance of US$1 billion aggregate principal amount of 7.75% senior secured notes (“SSNs”) due 2026, the net proceeds of which are expected to be used to redeem and/or repurchase approximately (following outstanding amounts do not give effect to repurchases of these SSNs made by CEMEX after 01-01-16): (i) US$448 M aggregate outstanding principal amount of 9.50% SSNs due 2018, (ii) US$621 M aggregate outstanding principal amount of 9.875% SSNs due 2019 and (iii) €179 M aggregate outstanding principal amount of 9.875% SSNs due 2019; and (c) US$326 M drawn from the revolving tranche of the Facilities Agreement. This presentation is not and does not constitute an offer or a solicitation of an offer to purchase any of our securities in any transaction
Jaime Elizondo President CEMEX Europe Exhibit 4
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
The new CEMEX Europe region In 2015, CEMEX Europe represented 24% of consolidated sales and 15% of EBITDA
Despite FX headwinds, 2015 performance shows we are on the right track EBITDA Variation(1) ($ M) 2014 1) Proforma reflecting new Europe region. Croatia considered as discontinued operation 9% 11% EBITDA Margin +5%
In a slow growth environment, construction demand is improving Volume by Business Segment(1) +0.4% -1.1% Ready-mix Aggregates Cement(2) +5.1% Proforma reflecting new Europe region. Croatia considered as discontinued operation Domestic gray cement
Value before Volume is producing results Price by Business Segment(1) Ready-mix ($/m3) Aggregates ($/ton) -0.2% +3.7% Cement(2) ($/ton) +2.3% Proforma reflecting new Europe region. Croatia considered as discontinued operation Domestic gray cement
Continued efforts to improve operational efficiency Cement ($/ton) Ready-mix ($/m3) Aggregates ($/ton) Unitary Production Costs(1) +2.4% +0.6% +3.6% Proforma reflecting new Europe region. Croatia considered as discontinued operation
We are leading in alternative fuels 1) Source: Cembureau - Europe cement industry average AF substitution (%) Alternative Fuel Substitution 2015 (%) EU average 2014(1) EU aspirational average 2050(1) +$60 M savings from alternative fuels vs. using fossil fuels in 2015
We have made excellent progress in maximizing cash generation Proforma reflecting new Europe region. Croatia considered as discontinued operation Working Capital(1) (Average Days)
Strong UK performance should continue Evolution of EBITDA ($ M) Sales Revenue CAGR 3% EBITDA CAGR 21% Reduction in SG&A/Sales Non-operating asset sales, working capital reduction
2016-2017 Demand CAGR(1) Demand growth looks positive for coming years 1) National gray cement consumption (Ready-mix for France) Source: CEMEX estimates Limited growth (0%-3%) Significant growth (>6%) Moderate growth (3%-6%)
What you should expect from us: Health & Safety: Achieve and sustain Zero for Life Value creation to and from our markets Increase competitiveness through operational efficiencies Optimization of asset base Focused on reaching ROCE>10%
Joaquín Estrada President CEMEX Asia, Middle East & Africa Rutenberg Power Station, Israel Exhibit 5
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
Very different situations throughout the region 2014 Egypt Philippines Rest 2015 429 -88 37 -10 1) Proforma reflecting new Asia, Middle East & Africa region 368 -14% EBITDA Variation(1) ($ M)
EBITDA Variation(1) ($ M) Variable cost & distr. Challenging year partially offset by a solid portfolio -14% 1) Proforma reflecting new Asia, Middle East & Africa region
Steady growth trend in volumes… +3.1% ‘15 ‘14 ‘13 ‘12 Cement ‘13 ‘14 ‘15 ‘12 Ready-mix ‘14 ‘15 ‘13 ‘12 Aggregates(2) Volume by Business Segment(1) +7.4% +0.9% +2.6% +5.8% -0.4% (3) (3) (3) 1) Proforma reflecting new Asia, Middle East & Africa region. Gray Cement domestic volume 2) Like-to-like basis (excluding divestment in Malaysia) 3) CAGR from 2012 to 2015
… and positive demand is expected to continue 2016-2017 Demand CAGR(1) 1) National gray cement consumption Source: CX estimates Limited growth (0%-3%) Significant growth (>6%) Moderate growth (3%-6%)
Higher capacity utilization in our major markets Philippines (2015) Cement capacity in M tons Cement demand in M tons +83% Egypt (2015) +72% 84% CX capacity utilization 2015 90% Industry capacity utilization 2015
Strategies create premium pricing in cement ‘11 ‘11 +5.1% Facing volatility in Egypt due to overcapacity Philippines (LC/ton) Egypt (LC/ton) -5.8% +3.1% (1) 1) CAGR from 2011 to 2015
Value added products are boosting profitability Ordinary Portland cement Cement products portfolio (%) 38% 62% Concrete products portfolio (%) Special products Standard concrete Value added products 1) Incremental Contribution Margin related to the entire volume Egypt Cement Special Products Israel Value Added Products 77% 23% 14% Incremental contribution margin(1) 7% Incremental contribution margin(1)
Successful Value before Volume strategy in ready-mix 7.6% 6.8% 22.1% 18.1% Asia, Middle East & Africa Services & Surcharges (% of sales) Value Added Products (% of incremental value created)
Strengthening solutions that leverage on global networks Faster and industrialized construction Gained acceptance among affordable housing developers Solutions to grow concrete and cement volumes at higher margins RCC for industrial pavement Decorative pavements New developments: Legoland theme park…. UAE: Diverse paving solutions Philippines: Housing Egypt: Cairo – Suez extension (completed) Concrete highway construction breakthrough in the country Cement intensity: 100 kg/m2 Philippines: Pavements - Promptis™ Open to traffic in 24 hours Solution to rapid construction requirements
Aiming to reduce working capital significantly Working Capital(1) (Average Days) 0 1) Proforma reflecting new Asia, Middle East & Africa region
What you should expect from us: Health & Safety: Achieve and sustain Zero for Life Strengthen our Value before Volume strategy Value creation through leveraging on global networks Further reduction in fuel cost Focused on free cash flow generation
Juan Romero President CEMEX Mexico Exhibit 6
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
Mexican economy continues to grow in spite of global macro headwinds GDP (%) Construction GDP (%) Cement Consumption (%) Source: INEGI & CEMEX
2015 EBITDA mainly driven by our Value before Volume strategy EBITDA Variation ($ M) FX(1) 2015 Like-to-like 2015 31% EBITDA Margin 34% 1) $40 M impact of dollarized costs in our operations net of exports price benefit -22 -56 27 -228 247 999 966 -3%
Global economic volatility pressures the Mexican peso Exchange Rate (MXN/USD) Fiscal and monetary measures Source: BANXICO and CEMEX 1ST interest hike FED and Banxico
Value before Volume strategy achieving important results… Price by Business Segment Cement (LC/ton) Aggregates (LC/ton) Ready-mix (LC/m3) 1) CAGR from 2012 to 2015 LC: Local currency ‘13 ‘14 ‘12 ‘15 ‘13 ‘14 ‘12 ‘15 ‘13 ‘14 ‘12 ‘15 (1) (1) (1)
… while pursuing operational efficiencies SG&A (SG&A/Sales)(1) 1) Like-to-like basis, excludes distribution expense, depreciation, amortization, Patrimonio Hoy and Promexma 2) Fixed costs for core business: cement and ready-mix Working Capital (Average Days) Fixed Costs ($ M)(2) -1.1 pp -4
Favorable demand outlook for 2016 driven by the private sector Consistent growth in remittance inflows Positive job creation Real income growth Stable housing permits CONAVI reduced funding INFONAVIT and commercial bank mortgages Automakers’ plant expansion plans Gas pipeline network & electricity investment Hotels & retail stores expansion Public spending cut Specific projects for highways & railroads New investment vehicles (FIBRA-E) Formal housing Self construction Industrial & commercial Infrastructure Source: CEMEX Expected performance
Enhancing customer loyalty through our differentiated offer Industrial Producers Offer Professionalization Procurement terms benefits Integrated Offer Aggregates Admixtures Cement Benefits from Cross Selling (% Customers) ‘13 ‘14 ‘15
Best industry service due to our superior logistics capabilities Ready-mix plants across the country +270 ready-mix plants The highest reach in the industry 80 cement distribution centers Ready-mix equipment +2,200 mixer trucks +500 pumping equipment The most robust fleet +330 private trucks +2,420 from partners +4,280 railroad carts, 7 marine terminals and 4 ships +12,000 routes
We are globally enhancing our Customer Experience Management focus towards customer KPIs to monitor customer perception Align processes to customers Attractive value propositions Customer oriented culture Workforce passionate about customer
What you should expect from us: Achieve Zero for Life Continue implementing our Value before Volume strategy adapted to market-specific conditions Positive results in our efforts to improve our costs and expenses Continue with working capital reductions Additionally, we will continue to enhance our customer experience
Jaime Muguiro President CEMEX South, Central America and the Caribbean Supernumerario Dental Center, Puerto Rico Exhibit 7
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
2015 was a very tough year, mainly because of FX headwinds EBITDA Variation ($ M) Volume Variable cost & distr. One-off expenses 2015 Like-to-like FX(1) -132 -21% -3% 1) $34 M impact due to dollarized costs in our operations
Despite short term challenges, demand drivers remain strong 2016-2017 Cement Demand CAGR Source: CEMEX estimates Limited growth (0%-3%) Moderate growth (3%-6%) Panama Nicaragua Costa Rica Dominican Republic Guatemala Colombia El Salvador Haiti Puerto Rico Decline (<0%)
Construction should be pivotal for Colombia’s growth 19 projects for $8.4 B as part of 4G program 9 private initiatives PPP’s for $3 B 57 road projects for $1.2 B (Vías de la Prosperidad) 160K-170K housing subsidies from central government 80k government supported houses announced for Bogota Education Infrastructure projects Magdalena River navigability project for $750 M Urbanization surrounding Bogotá River and lineal parks Pumarejo Bridge for $200 M Bogota’s first subway line $4 B New Transmilenio trunk-lines and trunk-roads in Bogota Expected annual impact of +0.8pp GDP (2016-2018) Source: Ministry of Finance Colombia, Central Government Press office
Panama infrastructure pipeline almost twice the size of the Canal expansion investment (2016–2018) New roads and highways Rural roads program Roads maintenance Total $0.8 B Public Health Hydroelectric dams Expansion of Tocumen airport Total $1.6 B Ciudad Esperanza Urban renovation city of Colon Total $0.6 B New subway lines 4th bridge over Canal Mass transit system of west Panama Total $5.4 B Healthy public accounts and higher revenues from the Canal should fuel construction Source: Ministry of Finance Panama
Value before volume is working… Cement Price LC(1) (December 2015 vs. December 2014) Colombia Panama Nicaragua ‘15 SCA&C +18% +5% +7% +6% ’14 ‘15 ‘14 ‘15 ‘14 ‘15 ‘14 Continue leveraging on value-added products, services and surcharges 1) LC: Local currency
… by fulfilling the needs of our customer segments through “tailor-made” value propositions Distribution Network Help enhance our distributors' business with first in class service and through tangible efficiencies in inventories, sales and logistics Industrial Achieve preferred partner status of this segment by offering value added solutions that increase productivity and profitability Public Sector Work closely with local government officials to make construction projects a reality given tight budgetary constraints Builders Provide our clients with customized building solutions and services that meet specific cost, durability and aesthetic requirements
Significant opportunity for margin expansion SG&A Optimization Operational Excellence Procurement Increase productivity and efficiency Outsource services Capture synergies between cement and ready-mix structures Achieve higher economies of scale in procurement Increase usage of low cost items Further centralize staff functions Extend scope of our Business Service Organization Leveraging Global Networks…
Aiming for a significant reduction in working capital Working Capital (Average Days)
What you should expect from us: Achieve and sustain Zero for Life Increase profitability through Value before Volume and cost-saving initiatives Improve responsibly our cement market position in Colombia Provide more tangible value to each customer segment through our tailor-made solutions Increase free cash flow by selling non-core assets, and by reducing WC and strategic capex
Ignacio Madridejos President CEMEX USA San Francisco Bay Bridge, United States Exhibit 8
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 but not limited to the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects our operations; 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, S.A.B. de C.V. with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of anti-trust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. 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. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.
CEMEX USA continues to improve financial results Var. cost & distrib. Fixed cost & other EBITDA Variation ($ M) 56% operating leverage in 2015
Backed by steady volume growth Volume by Business Segment Cement Ready-mix(1) Aggregates (2) (2) (2) Results for ready-mix on a like-to-like basis for the current operations CAGR from 2012 to 2015
More favorable supply/demand dynamics expected Industrial & Commercial Cement (M tons) Residential Housing Starts (M) Streets & Highways Cement (M tons) Source: U.S. Geological Survey, CEMEX estimates 1) CAGR from 2015 to 2018 U.S. Cement Demand (M tons) Practical Capacity +5% (1) (1) (1) (1)
Positive cement demand expectations in our key markets >9% 5%-9% 0%-5% <0% Source: CEMEX estimates National Average +5% Cement Demand Growth (CAGR 2015-2018) +7% +9% +5% +9%
Value before volume driving prices well above inflation +7% Price by Business Segment Cement Ready-mix Aggregates (1) (1) (1) CAGR from 2012 to 2015
Positive pricing trend expected to continue in 2016(1) Strong Up = Stable Mid-south Ready-mix California Cement Aggregates Ready-mix Arizona Cement Aggregates Ready-mix Texas Cement Aggregates Ready-mix = Florida Cement Aggregates Ready-mix South Atlantic Cement North Atlantic Cement 1) Estimated results of CEMEX announced price increases for 2016
Operational excellence to drive cost reduction Unitary Production Costs Cement Ready-mix Aggregates -1% (1) (1) (1) CAGR from 2012 to 2015
Aiming for a significant reduction in working capital Working Capital (Average Days)
What you should expect from us: Health and Safety: Achieve and sustain Zero for Life Achieve higher prices while maintaining market position Improved productivity through operational excellence Reduce working capital significantly
