Form 6-K

 

 

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, 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

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 21, 2016, announcing first quarter 2016 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

 

2. First quarter 2016 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 2016 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

            CEMEX, S.A.B. de C.V.
            (Registrant)
Date: April 21, 2016   By:  

/s/ Rafael Garza

   

Name:  Rafael Garza

   

Title:    Chief Comptroller


EXHIBIT INDEX

 

EXHIBIT

NO.

  

DESCRIPTION

1.    Press release, dated April 21, 2016, announcing first quarter 2016 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).
2.    First quarter 2016 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 2016 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).
EX-1

EXHIBIT 1

 

Media Relations   Investor Relations
Paula Andrea Escobar   Jesús Ortiz
+57 (1) 603-9079   +57 (1) 603-9051
paulaandrea.escobar@cemex.com   jesus.ortizd@cemex.com

 

LOGO

CEMEX LATAM HOLDINGS REPORTS

FIRST QUARTER 2016 RESULTS

 

    Positive performance in our operations in Colombia and new records achieved in Nicaragua and Guatemala.

 

    Adjusting for foreign-exchange fluctuations, consolidated net sales and EBITDA in the first quarter increased by 3% and 6%, respectively, on a year-over-year basis.

BOGOTÁ, COLOMBIA. APRIL 21, 2016 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that consolidated net sales reached US$316 million during the first quarter of 2016, a decline of 11% versus the first quarter of 2015. This decline is mainly explained by foreign-exchange fluctuations and lower sales in our operations in Panama and Costa Rica. Adjusting for foreign-exchange fluctuations, consolidated net sales in the first quarter increased by 3%, on a year-over-year basis.

Operating EBITDA, also adjusted for foreign-exchange fluctuations, increased by 6%, during the first quarter of 2016, compared with the same period in 2015.

During the first quarter of 2016, our consolidated cement volumes increased by 1%, while our ready-mix and aggregates volumes declined by 13% and 18%, respectively, compared with the first quarter of last year.

Carlos Jacks, CEO of CLH, said, “In the first quarter, adjusting for foreign-exchange fluctuations, our consolidated net sales and EBITDA increased by 3% and 6%, respectively, versus the comparable period in 2015. We are pleased with these achievements in light of the volume decline related to the tough comparison basis associated to our high level of exposure to infrastructure projects in Panama and Costa Rica last year.”

CLH’s Financial and Operational Highlights

 

    Adjusting for the effect of foreign-exchange fluctuations, net sales and EBITDA in Colombia increased by 14% and 18%, respectively, during the first quarter on a year-over-year basis.

 

    During the first three months of the year, cement volumes in Colombia increased by 9%, while ready-mix and aggregates volumes decreased by 12% and 18%, respectively, compared with the same period a year ago.

 

    In Panama, in the first quarter cement and ready-mix volumes increased by 10% and 5%, respectively, while our aggregates volume declined by 2%, compared with the fourth quarter of 2015.

 

    In the January-March period our consolidated EBITDA margin grew by 0.9pp versus the same period in 2015, mainly driven by margin improvements in Colombia and the Rest of CLH.

 

    Free cash flow after total capital expenditures reached US$26 million during the first quarter of 2016 increasing 38% compared with the same period of 2015. Strategic capital expenditures of US$31 million in the quarter are mainly related to our capacity expansion project in Colombia.


Carlos Jacks added, “This quarter was especially significant for us since we already started to see more clearly the benefits of our value-before-volume strategy in Colombia, in which we spent many efforts during 2015. The good results of our Colombian operation helped us more than offset challenging market dynamics in Central America. We are encouraged by these results and we will continue reinforcing our competitive position, while enhancing our profitability.”

Consolidated Corporate Results

During the first quarter of 2016, controlling interest net income reached US$45 million.

Net debt decreased by US$26 million, to US$1,008 million as of the end of the first quarter 2016.

Geographical Markets First Quarter 2016 Highlights

Operating EBITDA in Colombia decreased by 8% to US$55 million versus US$59 million in the first quarter of 2015, with a decline of 11% in net sales reaching US$157 million.

In Panama, operating EBITDA decreased by 14% to US$25 million during the quarter. Net sales reached US$63 million in the first quarter of 2016, a decrease of 13% compared with the same period in 2015.

In Costa Rica, operating EBITDA reached US$17 million during the quarter, decreasing by 14% compared with the same period a year ago. Net sales declined by 10% to US$39 million, compared with the first quarter of 2015.

In the Rest of CLH region net sales during the quarter reached US$62 million. Operating EBITDA in the quarter declined by 2%, versus the comparable period in 2015, reaching US$19 million.

CLH is a regional leader in the building solutions industry that provides high-quality products and reliable services to customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, Guatemala, and Brazil. CLH’s mission is to create sustainable value by providing industry-leading products and solutions to satisfy the construction needs of our customers in the markets where we operate.

###

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

EX-2

EXHIBIT 2

LOGO

 

2016

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


LOGO

 

OPERATING AND FINANCIAL HIGHLIGHTS

January - March First Quarter

2016 2015 % var 2016 2015 % var

Consolidated cement volume 1,829 1,740 5% 1,829 1,740 5%

Consolidated domestic gray cement 1,609 1,593 1% 1,609 1,593 1%

Consolidated ready-mix volume 738 848 (13%) 738 848 (13%)

Consolidated aggregates volume 1,735 2,112 (18%) 1,735 2,112 (18%)

Net sales 316 354 (11%) 316 354 (11%)

Gross profit 153 170 (10%) 153 170 (10%)

as % of net sales 48.3% 48.1% 0.2pp 48.3% 48.1% 0.2pp

Operating earnings before other

83 90 (8%) 83 90 (8%)

expenses, net

as % of net sales 26.1% 25.5% 0.6pp 26.1% 25.5% 0.6pp

Controlling interest net income (loss) 45 44 3% 45 44 3%

Operating EBITDA 103 112 (8%) 103 112 (8%)

as % of net sales 32.7% 31.8% 0.9pp 32.7% 31.8% 0.9pp

Free cash flow after maintenance

57 67 (15%) 57 67 N/A

capital expenditures

Free cash flow 26 19 38% 26 19 38%

Net debt 1,008 1,125 (10%) 1,008 1,125 (10%)

Total debt 1,051 1,188 (12%) 1,051 1,188 (12%)

Earnings per share 0.08 0.08 3% 0.08 0.08 3%

Shares outstanding at end of period 556 556 0% 556 556 0%

Employees 4,813 4,982 (3%) 4,813 4,982 (3%)

Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters. In millions of US dollars, except volumes, percentages, employees, and per-share amounts.

Shares outstanding are presented in millions.

Consolidated net sales during the first quarter of 2016 declined by 11% compared to the first quarter of 2015. This decline is explained mainly as a result of foreign exchange fluctuations and the effect of lower cement volumes from our operations in Panama and Costa Rica.

Cost of sales as a percentage of net sales during the first quarter of 2016 decreased by 0.2pp from 51.9% to 51.7% on a year-over-year basis.

Operating expenses as a percentage of net sales during the first quarter of the year decreased by 0.4pp from 22.6% to 22.2% compared to the same period in 2015.

Operating EBITDA during the first quarter of 2016 declined by 8% compared to the first quarter of 2015. This decline is mainly explained by foreign exchange fluctuations and the effect of lower cement volumes from our operations in Panama and Costa Rica.

Operating EBITDA margin during the first quarter of 2016 increased by 0.9pp, compared to the first quarter of 2015.

Controlling interest net income during the first quarter of 2016 reached US$45 million, increasing 3% compared to the same period in 2015.

Total debt at the first quarter of 2016 was US$1,051 million.

2016 First Quarter Results Page 2


LOGO

 

OPERATING RESULTS

Colombia

January - March First Quarter

2016 2015 % var 2016 2015 % var

Net sales 157 176 (11%) 157 176 (11%)

Operating EBITDA 55 59 (8%) 55 59 (8%)

Operating EBITDA margin 34.9% 33.7% 1.2pp 34.9% 33.7% 1.2pp

In millions of US dollars, except percentages.

Domestic gray cement Ready-Mix Aggregates

January - March First Quarter January - March First Quarter January - March First Quarter

Volume 9% 9% (12%) (12%) (18%) (18%)

Price (USD) (11%) (11%) (17%) (17%) (9%) (9%)

Price (local currency) 13% 13% 6% 6% 16% 16%

Year-over-year percentage variation.

In Colombia, during the first quarter our domestic gray cement volumes increased by 9%, while our ready-mix and aggregates volumes declined by 12% and 18%, respectively, compared to the first quarter of 2015.

During the quarter, our cement market position improved both versus fourth and first quarter 2015, while sequential and year-over-year local currency prices remained stable and increased 13%, respectively. The residential and infrastructure sectors continued as the main drivers of demand during the quarter. The residential sector growth was supported by the middle-income segment which benefited from government-sponsored programs.

Panama

January - March First Quarter

2016 2015 % var 2016 2015 % var

Net sales 63 72 (13%) 63 72 (13%)

Operating EBITDA 25 29 (14%) 25 29 (14%)

Operating EBITDA margin 39.4% 39.9% (0.5pp) 39.4% 39.9% (0.5pp)

In millions of US dollars, except percentages.

Domestic gray cement Ready-Mix Aggregates

January - March First Quarter January - March First Quarter January - March First Quarter

Volume (21%) (21%) (14%) (14%) (12%) (12%)

Price (USD) 5% 5% (6%) (6%) (1%) (1%)

Price (local currency) 5% 5% (6%) (6%) (1%) (1%)

Year-over-year percentage variation.

In Panama, during the first quarter our domestic gray cement, ready-mix and aggregates volumes decreased 21%, 14% and

12%, respectively, compared to the first quarter of 2015.

Our results were negatively affected during the quarter by lower sales to the Panama Canal expansion project, the

completion of some large infrastructure projects, a slow-down in construction license approval, and low levels of execution

of new infrastructure projects.

OPERATING RESULTS


LOGO

 

Costa Rica

January - March First Quarter

2016 2015 % var 2016 2015 % var

Net sales 39 43 (10%) 39 43 (10%)

Operating EBITDA 17 20 (14%) 17 20 (14%)

Operating EBITDA margin 43.6% 45.7% (2.1pp) 43.6% 45.7% (2.1pp)

In millions of US dollars, except percentages.

Domestic gray cement Ready-Mix Aggregates

January - March First Quarter January - March First Quarter January - March First Quarter

Volume (16%) (16%) 5% 5% 8% 8%

Price (USD) (4%) (4%) 11% 11% (9%) (9%)

Price (local currency) (4%) (4%) 12% 12% (8%) (8%)

Year-over-year percentage variation.

In Costa Rica, during the first quarter our domestic gray cement volumes declined by 16%, while our ready-mix and

aggregates volumes increased by 5% and 8%, respectively, compared to the first quarter of 2015.

The decline in our cement volumes is mainly explained by the tough comparison base related to a high exposure to

infrastructure projects in 2015, such as the Northern Interamerican Road.

Rest of CLH

January - March First Quarter

2016 2015 % var 2016 2015 % var

Net sales 62 66 (5%) 62 66 (5%)

Operating EBITDA 19 20 (2%) 19 20 (2%)

Operating EBITDA margin 31.3% 30.3% 1.0pp 31.3% 30.3% 1.0pp

In millions of US dollars, except percentages.

Domestic gray cement Ready-Mix Aggregates

January - March First Quarter January - March First Quarter January - March First Quarter

Volume 8% 8% (38%) (38%) (58%) (58%)

Price (USD) (6%) (6%) (0%) (0%) (19%) (19%)

Price (local currency) (1%) (1%) 2% 2% (16%) (16%)

Year-over-year percentage variation. In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the first quarter of 2016 our domestic gray cement increased by 8%, while our ready-mix and aggregates volumes decreased by 38% and 58%, respectively, compared to the first quarter of 2015.

Housing and infrastructure in Nicaragua, along with industrial-and-commercial activity in Guatemala, remained the main

drivers of demand for our products. Our domestic gray cement volumes in these two countries increased at double digit

rates against the first and fourth quarters of 2015.

2016 First Quarter Results Page 4

The decline in ready-mix and aggregates relates to the conclusion of projects like the Izapa-Nejapa highway, and Calles para el Pueblo.


LOGO

 

OPERATING EBITDA, FREE CASH FLOW AND DEBT

RELATED INFORMATION

Operating EBITDA and free cash flow

January - March First Quarter

2016 2015 % var 2016 2015 % var

Operating earnings before other expenses, net 83 90 (8%) 83 90 (8%)

+ Depreciation and operating amortization 20 22 20 22

Operating EBITDA 103 112 (8%) 103 112 (8%)

- Net financial expense 15 21 15 21

- Capital expenditures for maintenance 4 4 4 4

- Change in working Capital 10 5 10 5

- Taxes paid 13 14 13 14

- Other cash items (Net) 4 1 4 1

Free cash flow after maintenance capital exp 57 67 (15%) 57 67 (15%)

- Strategic Capital expenditures 31 48 31 48

Free cash flow 26 19 38% 26 19 38%

In millions of US dollars, except percentages.

Information on Debt

Fourth

First Quarter First Quarter

Quarter

2016 2015 % var 2015 2016 2015

Total debt 1, 2 1,051 1,188 12% 1,088 Currency denomination

Short term 25% 12% 24% U.S. dollar 98% 99%

Long term 75% 88% 76% Colombian peso 2% 1%

Cash and cash equivalents 43 63 (31%) 54 Interest rate

Net debt 1,008 1,125 (10%) 1,034 Fixed 76% 79%

Variable 24% 21%

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.

2016 First Quarter Results Page 5


LOGO

 

OPERATING RESULTS

Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in thousands of U.S. Dollars, except per share amounts

January - March First Quarter

INCOME STATEMENT 2016 2015 % var 2016 2015 % var

Net sales 315,968 353,838 (11%) 315,968 353,838 (11%)

Cost of sales (163,303) (183,606) 11% (163,303) (183,606) 11%

Gross profit 152,665 170,232 (10%) 152,665 170,232 (10%)

Operating expenses (70,122) (80,045) 12% (70,122) (80,045) 12%

Operating earnings before other expenses, net 82,543 90,187 (8%) 82,543 90,187 (8%)

Other expenses, net 115 (1,980) N/A 115 (1,980) N/A

Operating earnings 82,658 88,207 (6%) 82,658 88,207 (6%)

Financial expenses (14,873) (20,589) 28% (14,873) (20,589) 28%

Other income (expenses), net 6,761 4,703 44% 6,761 4,703 44%

Net income before income taxes 74,546 72,321 3% 74,546 72,321 3%

Income tax (29,080) (28,357) (3%) (29,080) (28,357) (3%)

Consolidated net income 45,466 43,964 3% 45,466 43,964 3%

Non-controlling Interest Net Income (150) (173) 13% (150) (173) 13%

Controlling Interest Net Income 45,316 43,791 3% 45,316 43,791 3%

0 0

Operating EBITDA 103,416 112,426 (8%) 103,416 112,426 (8%)

Earnings per share 0.08 0.08 3% 0.08 0.08 3%

as of March 31

BALANCE SHEET 2016 2015 % var

Total Assets 3,281,586 3,458,651 (5%)

Cash and Temporary Investments 43,279 62,562 (31%)

Trade Accounts Receivables 109,899 134,445 (18%)

Other Receivables 39,753 31,316 27%

Inventories 86,583 105,726 (18%)

Other Current Assets 24,049 26,980 (11%)

Current Assets 303,563 361,029 (16%)

Fixed Assets 1,145,106 1,109,691 3%

Other Assets 1,832,917 1,987,931 (8%)

Total Liabilities 1,890,395 2,076,453 (9%)

Current Liabilities 559,122 435,666 28%

Long-Term Liabilities 1,323,399 1,629,922 (19%)

Other Liabilities 7,874 10,865 (28%)

Consolidated Stockholders’ Equity 1,391,191 1,382,198 1%

Non-controlling Interest 5,536 5,600 (1%)

Stockholders’ Equity Attributable to Controlling Interest 1,385,655 1,376,598 1%

2016 First Quarter Results Page 6


LOGO

 

OPERATING RESULTS

Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in millions of Colombian Pesos in nominal terms, except per share amounts

January - March First Quarter

INCOME STATEMENT 2016 2015 % var 2016 2015 % var

Net sales 1,012,746 886,263 14% 1,012,746 886,263 14%

Cost of sales (523,422) (459,882) (14%) (523,422) (459,882) (14%)

Gross profit 489,324 426,381 15% 489,324 426,381 15%

Operating expenses (224,757) (200,489) (12%) (224,757) (200,489) (12%)

Operating earnings before other expenses, net 264,567 225,892 17% 264,567 225,892 17%

Other expenses, net 368 (4,958) N/A 368 (4,958) N/A

Operating earnings 264,935 220,934 20% 264,935 220,934 20%

Financial expenses (47,673) (51,571) 8% (47,673) (51,571) 8%

Other income (expenses), net 21,671 11,780 84% 21,671 11,780 84%

Net income before income taxes 238,933 181,143 32% 238,933 181,143 32%

Income tax (93,209) (71,027) (31%) (93,209) (71,027) (31%)

Consolidated net income 145,724 110,116 32% 145,724 110,116 32%

Non-controlling Interest Net Income (480) (434) (11%) (480) (434) (11%)

Controlling Interest Net Income 145,244 109,682 32% 145,244 109,682 32%

Operating EBITDA 331,471 281,596 18% 331,471 281,596 18%

Earnings per share 262.01 197.99 32% 262.01 197.99 32%

as of March 31

BALANCE SHEET 2016 2015 % var

Total Assets 9,918,102 8,909,656 11%

Cash and Temporary Investments 130,806 161,160 (19%)

Trade Accounts Receivables 332,154 346,338 (4%)

Other Receivables 120,149 80,670 49%

Inventories 261,684 272,355 (4%)

Other Current Assets 72,682 69,502 5%

Current Assets 917,474 930,025 (1%)

Fixed Assets 3,460,912 2,858,621 21%

Other Assets 5,539,716 5,121,010 8%

Total Liabilities 5,713,436 5,349,047 7%

Current Liabilities 1,689,861 1,122,299 51%

Long-Term Liabilities 3,999,776 4,198,759 (5%)

Other Liabilities 23,799 27,989 (15%)

Consolidated Stockholders’ Equity 4,204,666 3,560,609 18%

Non-controlling Interest 16,733 14,425 16%

Stockholders’ Equity Attributable to Controlling Interest 4,187,933 3,546,184 18%

2016 First Quarter Results Page 7


LOGO

 

OPERATING RESULTS

Operating Summary per Country

in thousands of U.S. dollars

Operating EBITDA margin as a percentage of net sales

January - March First Quarter

2016 2015 % var 2016 2015 % var

NET SALES

Colombia 156,734 176,246 (11%) 156,734 176,246 (11%)

Panama 62,509 71,915 (13%) 62,509 71,915 (13%)

Costa Rica 38,937 43,043 (10%) 38,937 43,043 (10%)

Rest of CLH 62,346 65,649 (5%) 62,346 65,649 (5%)

Others and intercompany eliminations (4,558) (3,015) (51%) (4,558) (3,015) (51%)

TOTAL 315,968 353,838 (11%) 315,968 353,838 (11%)

GROSS PROFIT

Colombia 76,768 85,493 (10%) 76,768 85,493 (10%)

Panama 27,669 31,635 (13%) 27,669 31,635 (13%)

Costa Rica 20,674 24,442 (15%) 20,674 24,442 (15%)

Rest of CLH 24,517 25,304 (3%) 24,517 25,304 (3%)

Others and intercompany eliminations 3,037 3,358 (10%) 3,037 3,358 (10%)

TOTAL 152,665 170,232 (10%) 152,665 170,232 (10%)

OPERATING EARNINGS BEFORE OTHER EXPENSES, NET

Colombia 48,785 52,629 (7%) 48,785 52,629 (7%)

Panama 20,169 23,856 (15%) 20,169 23,856 (15%)

Costa Rica 15,435 18,009 (14%) 15,435 18,009 (14%)

Rest of CLH 18,095 18,688 (3%) 18,095 18,688 (3%)

Others and intercompany eliminations (19,942) (22,995) 13% (19,942) (22,995) 13%

TOTAL 82,543 90,187 (8%) 82,543 90,187 (8%)

OPERATING EBITDA

Colombia 54,746 59,313 (8%) 54,746 59,313 (8%)

Panama 24,621 28,662 (14%) 24,621 28,662 (14%)

Costa Rica 16,984 19,679 (14%) 16,984 19,679 (14%)

Rest of CLH 19,496 19,924 (2%) 19,496 19,924 (2%)

Others and intercompany eliminations (12,431) (15,152) 18% (12,431) (15,152) 18%

TOTAL 103,416 112,426 (8%) 103,416 112,426 (8%)

OPERATING EBITDA MARGIN

Colombia 34.9% 33.7% 34.9% 33.7%

Panama 39.4% 39.9% 39.4% 39.9%

Costa Rica 43.6% 45.7% 43.6% 45.7%

Rest of CLH 31.3% 30.3% 31.3% 30.3%

TOTAL 32.7% 31.8% 32.7% 31.8%

2016 First Quarter Results Page 8


LOGO

 

OPERATING RESULTS

Volume Summary

Consolidated volume summary

Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters

January - March First Quarter

2016 2015 % var 2016 2015 % var

Total cement volume 1 1,829 1,740 5% 1,829 1,740 5%

Total domestic gray cement volume 1,609 1,593 1% 1,609 1,593 1%

Total ready-mix volume 738 848 (13%) 738 848 (13%)

Total aggregates volume 1,735 2,112 (18%) 1,735 2,112 (18%)

1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.

Per-country volume summary

January - March First Quarter First Quarter 2016

2016 vs. 2015 2016 vs. 2015 vs. Fourth Quarter 2015

DOMESTIC GRAY CEMENT

Colombia 9% 9% (5%)

Panama (21%) (21%) 10%

Costa Rica (16%) (16%) 9%

Rest of CLH 8% 8% 7%

READY-MIX

Colombia (12%) (12%) (4%)

Panama (14%) (14%) 5%

Costa Rica 5% 5% 7%

Rest of CLH (38%) (38%) (28%)

AGGREGATES

Colombia (18%) (18%) (7%)

Panama (12%) (12%) (2%)

Costa Rica 8% 8% 18%

Rest of CLH (58%) (58%) (61%)

2016 First Quarter Results Page 9


LOGO

 

OPERATING RESULTS

Price Summary

Variation in U.S. dollars

January - March First Quarter First Quarter 2016

2016 vs. 2015 2016 vs. 2015 vs. Fourth Quarter 2015

DOMESTIC GRAY CEMENT

Colombia (11%) (11%) (5%)

Panama 5% 5% 0%

Costa Rica (4%) (4%) (1%)

Rest of CLH (6%) (6%) 0%

READY-MIX

Colombia (17%) (17%) (2%)

Panama (6%) (6%) (1%)

Costa Rica 11% 11% 4%

Rest of CLH (0%) (0%) (0%)

AGGREGATES

Colombia (9%) (9%) 1%

Panama (1%) (1%) (6%)

Costa Rica (9%) (9%) 4%

Rest of CLH (19%) (19%) (10%)

For Rest of CLH, volume-weighted average prices.

Variation in local currency

January - March First Quarter First Quarter 2016

2016 vs. 2015 2016 vs. 2015 vs. Fourth Quarter 2015

DOMESTIC GRAY CEMENT

Colombia 13% 13% (0%)

Panama 5% 5% 0%

Costa Rica (4%) (4%) (1%)

Rest of CLH (1%) (1%) 1%

READY-MIX

Colombia 6% 6% 3%

Panama (6%) (6%) (1%)

Costa Rica 12% 12% 4%

Rest of CLH 2% 2% 1%

AGGREGATES

Colombia 16% 16% 6%

Panama (1%) (1%) (6%)

Costa Rica (8%) (8%) 5%

Rest of CLH (16%) (16%) (9%)

For Rest of CLH, volume-weighted average prices.

2016 First Quarter Results Page 10


LOGO

 

DEFINITIONS OF TERMS AND DISCLOSURES

Methodology for translation and presentation of results

Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement.

For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates used to convert: (i) the balance sheet as of March 31, 2016 and March 31, 2015 was $3,022.35 and $2,576.05 Colombian pesos per US dollar, respectively, and (ii) the consolidated results for the first quarter of 2016 and for the first quarter of 2015 were $3,205.22 and $2,504.71 Colombian pesos per US dollar, respectively.

Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.”

Consolidated financial information

When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries.

Presentation of financial and operating information

Individual information is provided for Colombia, Panama and Costa Rica.

Countries in Rest of CLH include Nicaragua, Guatemala, El Salvador and Brazil.

Exchange rates

January - March January - March First Quarter

2016 closing 2015 closing 2016 average 2015 average 2016 average 2015 average

Colombian peso 3,022.35 2,576.05 3,205.22 2,504.71 3,205.22 2,504.71

Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00

Costa Rica colon 542.23 539.08 543.00 540.91 543.00 543.00

Euro 1.0864 1.0738 1.0900 1.1085 1.0900 1.0900

Amounts provided in units of local currency per US dollar.

2016 First Quarter Results Page 11


LOGO

 

OTHER ACTIVITIES AND INFORMATION

Information Request in Costa Rica

As a result of a claim made by a third party, in March 2016, the Competition Directorate of Costa Rica notified CEMEX (Costa Rica), S.A.

(“CEMEX Costa Rica”) of a formal information request that has the objective of calculating the cement market share in Costa Rica and the geographical areas in which CEMEX Costa Rica has a presence. CEMEX Costa Rica has delivered the requested information. As of March 31, 2016, we are not able to assess the likelihood of this request for information leading to a formal investigation or any other actions by the Competition Directorate of Costa Rica, but if any formal investigations are commenced or if any actions are taken by the Competition Directorate of Costa Rica or any other governmental authority in Costa Rica we would not expect that any adverse result from any investigation or actions taken by the corresponding authority of the government of Costa Rica would have a material adverse impact on our results of operations, liquidity and financial condition.

2016 First Quarter Results Page 12


LOGO

 

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.

2016 First Quarter Results Page 13

EX-3

EXHIBIT 3

 

LOGO

 

RESULTS 1Q16

A p r i l 2 1 , 2 0 1 6


LOGO

 

|| Forward looking information

This presentation contains forward-looking statements. 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 Latam Holdings, S.A.’s (“CLH”) current expectations and projections about future events based on CLH’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 CLH’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 CLH or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CLH’s exposure to other sectors that impact CLH’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CLH operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CLH’s ability to satisfy its debt obligations and CEMEX, S.A.B. de C.V.’s (“CEMEX”) 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; expected refinancing of CEMEX’s existing indebtedness; the impact of CEMEX’s below investment grade debt rating on CLH’s and CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CLH’s cost-reduction initiatives and implement

CLH’s pricing initiatives for CLH’s products; the increasing reliance on information technology infrastructure for CLH’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 CLH’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CLH’s business. The information contained in these presentations is subject to change without notice, and CLH is not obligated to publicly update or revise forward-looking statements. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CLH’s prices for CLH’s products.

UNLESS OTHERWISE NOTED, ALL CONSOLIDATED FIGURES ARE PRESENTED IN DOLLARS AND ARE BASED ON THE FINANCIAL STATEMENTS OF EACH COUNTRY PREPARED UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS.

Copyright CEMEX Latam Holdings, S.A. and its subsidiaries. 2


LOGO

 

|| Financial Results Summary

Net Sales Operating EBITDA Margin EBITDA

(US$M) (US$M) (%)

-11% —8% 0.9pp

354

316 112 103 8% 32 . 7%

.

31

1Q15 1Q16 1Q15 1Q16 1Q15 1Q16

Consolidated net sales increased by 3%

on a like-to-like basis1 in 1Q16 compared with 1Q15

Consolidated EBITDA increased by 6%

in 1Q16 on an like-to-like basis1 against the same period last year

Consolidated EBITDA margin increased by 0.9pp

in 1Q16 vs.1Q15

Our results continued to be affected by FX

U.S dollar appreciated 28% vs.COP during 1Q16 on a year-over-year basis

(1) Adjusting for FX fluctuations 3


LOGO

 

|| Consolidated Volumes and Prices

1Q16 vs. 1Q16 vs. 1Q15 4Q15

Domestic Volume 1% 1% gray Price (USD) (8%) (2%) cement

Price (LtL1) 6% 1%

Volume (13%) (4%)

Ready-mix concrete Price (USD) (12%) (1%) Price (LtL1) 3% 2%

Volume (18%) (9%) Aggregates Price (USD) (7%) 0% Price (LtL1) 10% 3%

(1) Like-to-like prices adjusted for foreign-exchange fluctuations

Our cement volumes grew by 1% during 1Q16

mainly driven by Colombia, more than offsetting a decline in Panama and Costa Rica

Higher prices in 1Q16

in our three main products in local-currency terms compared with 1Q15

Decline in our ready-mix and aggregates volumes

reflects lower dispatches in Colombia, Panama and Nicaragua

4


LOGO

 

REGIONAL HIGHLIGHTS

R e s u l t s 1 Q 1 6


LOGO

 

Results Highlights Colombia


LOGO

 

|| Colombia – Results Highlights

1Q16 1Q15 % var

Net Sales 157 176 (11%)

Financial

Summary Op. EBITDA 55 59 (8%)

US$ Million as % net sales 34.9% 33.7% 1.2pp

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement 9% (5%) Volume Ready mix (12%) (4%) Aggregates (18%) (7%)

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement 13% 0%

Price

(Local Currency) Ready mix 6% 3%

Aggregates 16% 6%

Net Sales and EBITDA grew 14% and 18%, respectively,

in 1Q16 on a like-to-like basis1 compared with 1Q15

Cement volumes grew 9% in 1Q16 vs. 1Q15

Higher prices in our three core products in 1Q16

in local currency terms, compared with same period in 2015

EBITDA margin increased by 1.2pp and 0.5pp in 1Q16

on a year-over-year-basis and sequentially, respectively

7

(1) Adjusting for FX fluctuations


LOGO

 

|| Colombia – Infrastructure Sector

Development of the Public-Private Partnerships

~US$ 2 B obtained by the sale of ISAGEN, and US$ 675 M loan expected to boost infrastructure investment, mostly through FDN1

FDN1 should play a pivotal role in light of financial challenges for upcoming public and private initiative PPP’s

FDN1 expects to multiply by 4x to 5x level of capital obtained, given its leverage capabilities

Infrastructure authorities estimate 20 new private initiatives PPP’s could be awarded in 2016

First private initiative PPP reached financial closure. First private initiative PPP for Bogota approved by Council of Ministers

Sources: Finance Ministry, National Infrastructure Agency (ANI)

Expected GDP impact of 0.4pp

in 2016 through execution of infrastructure works

Investment in roads expected to reach US$ 2 B in 2016

and it could reach US$ 2.7 B in 20182

We expect a ~ 4% growth

in the infrastructure sector for 2016

(1) Financiera de Desarrollo Nacional

8

(2) Estimates from ANI


LOGO

 

|| Colombia – Infrastructure requirements 2035

Intermodal Transport Fluvial Infrastructure Education Infrastructure

Road network Amazon basin US$ 1.8 B Construction of 51K

US$ 60.7 B US$ 2.4 B

intervention new classrooms

Orinoco basin US$ 0.8 B

Airports construction US$ 5.3 B

Atrato basin US$ 25.5 M

Railway network

rehabilitation US$ 3.3 B Magdalena basin US$ 0.14 B

Pacific basin US$ 0.12 B

Tertiary Roads Urban Infrastructure Public health and justice

Pavement rehab. US$ 9.7 M /Year Bogota US$ 4.6 B New Hospitals US$ 5.8 B

TOTALINVESTMENT New pavement US$ 0.3 B /Year Medellin US$ 10 B New prison capacity US$ 1.5 B

REQUIRED Pavement enhance US$ 0.8 B /Year Mass Transp. System US$ 4.1 B

~ US$ 117.4 B

Maintenance US$ 0.4 B /Year Public Transp. System US$ 0.7 B

Source: National Planning Department


LOGO

 

|| Colombia – Residential Sector

~150K subsidies from Housing Ministry expected in 2016

33,500 social housing subsidies on mortgage rate

37,500 units under “Mi casa ya” subsidy program

51,500 units under “Casa Ahorro” 1 subsidy program

25,000 units under subsidy on middle-income housing on mortgage rate

~20K additional subsidies should be executed for rural housing during 2016

Source: Finance Ministry

Expected GDP impact of 0.4pp

in 2016 from housing initiatives

Building permits grew 13.6%

for middle income housing (LTM2)

We expect to develop 5K to 10K houses in 2016

through our housing solutions initiatives

We expect a ~ 3.5% growth

in this sector in 2016

(1) Social Housing for Savers

10

(2) Last twelve months to Jan. 2016


LOGO

 

|| Colombia— Capacity expansion project

Maceo Plant – Antioquia, Colombia (April. 2016)

Clinker line expected to be operational in 4Q16

Projected cost benefits:

- Production costs 20% lower than our national average in Colombia

- Energy and electricity costs at least 10% lower than in our other facilities in the country

- Reduction of ~7% in national transportation costs

Tax benefits of “zona franca”

- Nominal income tax fixed at 15% until 2026

- Equipment is exempt of VAT and import tariffs

11


LOGO

 

Results Highlights Panama


LOGO

 

|| Panama – Results Highlights

1Q16 1Q15 % var

Net Sales 63 72 (13%)

Financial

Summary Op. EBITDA 25 29 (14%)

US$ Million

as % net sales 39.4% 39.9% (0.5pp)

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement (21%) 10%

Volume Ready mix (14%) 5%

Aggregates (12%) (2%)

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement 5% 0%

Price

(Local Currency) Ready mix (6%) (1%)

Aggregates (1%) (6%)

Tough comparison base during 1Q16 in our three core products

due to Panama Canal expansion project and other heavy infrastructure works

Cement and ready-mix volumes grew sequentially 10% and 5%,

respectively, in 1Q16

Cement prices increased by 5%

during 1Q16 against 1Q15

EBITDA margins declined

0.5pp during 1Q16 compared with 2015 13


LOGO

 

|| Panama – Sector Highlights

2nd line of the subway and urban renovation of Colon already started construction works

Residential sector expected to remain as the main driver

of cement consumption during 2016

Housing projects in West Panama started execution

We expect a slowdown in the industrial-and-commercial sector

due to its high level of growth in 2015

14


LOGO

 

Results Highlights Costa Rica


LOGO

 

|| Costa Rica – Results Highlights

1Q16 1Q15 % var

Net Sales 39 43 (10%)

Financial

Summary Op. EBITDA 17 20 (2%)

US$ Million

as % net sales 43.6% 45.7% (2.1pp)

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement (16%) 9%

Volume Ready mix 5% 7%

Aggregates 8% 18%

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement (4%) (1%)

Price

(Local Currency) Ready mix 12% 4%

Aggregates (8%) 5%

Higher volumes in our three core products

in 1Q16 on a sequential basis

Ready-mix and aggregates volumes grew by 5% and 8%

respectively, in 1Q16 against 1Q15

Prices increased by 4% and 5%

in ready-mix and aggregates, 1Q16 vs. 4Q15 in local currency terms

EBITDA margin during 1Q16 declined by 2.1pp

mostly explained by lower prices and maintenance works during the quarter 16


LOGO

 

|| Costa Rica– Sector Highlights

Port terminal project in the Atlantic contributed

to the demand of our products in 1Q16

Better performance expected in the residential sector

Construction permits increased double digits during the first quarter 2016

Positive impact expected in industrial & commercial sector

in 2016 mostly from construction of hotels

Infrastructure sector is being affected by delays

from Central Government, negatively influencing execution of new works


LOGO

 

Results Highlights Rest of CLH


LOGO

 

|| Rest of CLH – Results Highlights

1Q16 1Q15 % var

Net Sales 62 66 (5%)

Financial

Summary Op. EBITDA 19 20 (2%)

US$ Million

as % net sales 31.3% 30.3% 1.0pp

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement 8% 7%

Volume Ready mix (38%) (28%)

Aggregates (58%) (61%)

1Q16 vs. 1Q15 1Q16 vs. 4Q15

Cement (1%) 1%

Price

(Local Currency) Ready mix 2% 1%

Aggregates (16%) (9%)

Historic 1Q records:

—EBITDA generation in Guatemala

—Cement volumes in Nicaragua

—EBITDA margin in Nicaragua

Cement volumes increased by 8% and 7% in 1Q16

compared with 1Q15 and 4Q15, respectively

Ready-mix and aggregates volumes decreased

mainly by the conclusion of some large infrastructure projects

EBITDA Margin increased by 1pp in 1Q16

explained by higher cement volumes, lower energy costs and the effect of the new grinding mill in Nicaragua 19


LOGO

 

|| Rest of CLH – Sector Highlights

In Nicaragua growth is expected across all sectors in 2016,

in the mid to high single-digits range, driven by public and private investments

CLH was selected as sole supplier of Managua’s baseball stadium

Main drivers of cement demand in 2016 expected to remain

infrastructure in Nicaragua and

Industrial-and-commercial in Guatemala


LOGO

 

FREE CASH FLOW

1

 

Q 1 6 R e s u l t s


LOGO

 

|| We will continue with disciplined working capital management

Working Capital

(Average Days)

2014 2015 2016

24

22 21 21

17

2

 

2

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 22


LOGO

 

|| Free Cash Flow

US$ Million 1Q16 1Q15 % var

Operating. EBITDEBITDA 103 112 (8%)

- Net Financial Expense 15 21

- Maintenance Capex 4 4

- Change in Working Cap 10 5

- Taxes Paid 13 14

- Other Cash Items (net) 4 1

Free Cash Flow

Free Cash Flow 57 67 (15%)

After Maintenance Capex

- Strategic Capex 31 48

FreeFreeCashCash FlowFlow 26 19 38%

Free cash flow after maintenance capex

reached US$57 million in 1Q16

Strategic capex was US$ 31 M

in the quarter, mainly used for our expansion project in Colombia

Free cash flow after total capex increased 38% in 1Q16

and reached US$26 million

Net debt was reduced

by US$26 million during 1Q16 to US$1,008 million

23


LOGO

 

GUIDANCE

1 Q 1 6 R e s u l t s


LOGO

 

|| 2016 Guidance

Volume YoY%

Cement Ready—Mix Aggregates

Colombia Low to Mid-single- High-single-digit High-single-digit

digit growth growth growth

Cement Ready—Mix Aggregates

Panama High-single-digit Low-teens

Flat

decline growth

Cement Ready—Mix Aggregates

Costa Rica Low-single-digit Low-single-digit Low-single-digit

decline decline growth

Consolidated volumes expected to increase in 2016

+ Low-single-digit rate in cement

+ Mid to high-single digit rate in Ready- mix

+ High-single digit rate in Aggregates

Maintenance capex

is expected to be about US$57 M in 2016

Strategic capex

is expected to reach about US$112 M in 2016

Consolidated Cash taxes

are expected to range between US$95 MM and US$105 M

25


LOGO

 

APPENDIX

1 Q 1 6 R e s u l t s


LOGO

 

|| Consolidated debt maturity profile

US$ Million 677

229

142

3 2016 2017 2018 2025

US $1,051 Million

Total debt as of March 31, 2016

2 .3x Net Debt/EBITDA (LTM1)

as of March 31, 2016

27

(1) Last twelve months to March 2016


LOGO

 

|| Definitions

Cement:

Operating EBITDA:

Maintenance capital expenditures:

Strategic capital expenditures:

LC: pp: Like-to-like Percentage Variation (l-t-l%var): Rest of CLH:

When providing cement volume variations, refers to our domestic gray cement operations.

Operating earnings before other expenses, net plus depreciation and operating amortization.

Investments incurred for the purpose of ensuring CLH’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or internal policies.

Investments incurred with the purpose of increasing CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.

Local currency.

Percentage points.

Percentage variations adjusted for investments/divestments and currency fluctuations.

Includes Brazil, Guatemala, El Salvador and Nicaragua.

28


LOGO

 

|| Contact information

Investor Relations

Jesús Ortiz de la Fuente Phone: +57(1) 603-9051

E-mail: jesus.ortizd@cemex.com

Stock Information

Colombian Stock Exchange CLH


LOGO

 

RESULTS 1Q16

A p r i l 2 1 , 2 0 1 6