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, 2017
Commission File Number: 001-14946
CEMEX, S.A.B. de C.V.
(Translation of Registrants 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 ☒ 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, CEMEXs Chief Executive Officer, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
2. | Presentation that includes information of CEMEXs business strategy and outlook discussed by Juan Pablo San Agustín, CEMEXs Executive Vice President of Strategic Planning and New Business Development, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
3. | Presentation that includes information of CEMEXs financial strategy discussed by José Antonio González Flores, CEMEXs Executive Vice President of Finance and Chief Financial Officer, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
4. | Presentation that includes information of CEMEXs business and operations in Mexico discussed by Juan Romero Torres, President of CEMEX Mexico, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
5. | Presentation that includes information of CEMEXs 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 16, 2017, during CEMEXs annual event, CEMEX Day. | |
6. | Presentation that includes information of CEMEXs business and operations in Europe discussed by Jaime Gerardo Elizondo Chapa, President of CEMEX Europe, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
7. | Presentation that includes information of CEMEXs 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 16, 2017, during CEMEXs annual event, CEMEX Day. | |
8. | Presentation that includes information of CEMEXs business and operations in the United States of America discussed by Ignacio Madridejos Fernández, President of CEMEX USA, on March 16, 2017, during CEMEXs 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 16, 2017 | 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, CEMEXs Chief Executive Officer, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
2. | Presentation that includes information of CEMEXs business strategy and outlook discussed by Juan Pablo San Agustín, CEMEXs Executive Vice President of Strategic Planning and New Business Development, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
3. | Presentation that includes information of CEMEXs financial strategy discussed by José Antonio González Flores, CEMEXs Executive Vice President of Finance and Chief Financial Officer, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
4. | Presentation that includes information of CEMEXs business and operations in Mexico discussed by Juan Romero Torres, President of CEMEX Mexico, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
5. | Presentation that includes information of CEMEXs 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 16, 2017, during CEMEXs annual event, CEMEX Day. | |
6. | Presentation that includes information of CEMEXs business and operations in Europe discussed by Jaime Gerardo Elizondo Chapa, President of CEMEX Europe, on March 16, 2017, during CEMEXs annual event, CEMEX Day. | |
7. | Presentation that includes information of CEMEXs 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 16, 2017, during CEMEXs annual event, CEMEX Day. | |
8. | Presentation that includes information of CEMEXs business and operations in the United States of America discussed by Ignacio Madridejos Fernández, President of CEMEX USA, on March 16, 2017, during CEMEXs annual event, CEMEX Day |
4
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 of anti-trust laws and as such, among 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 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. 2
Our value creation journey Our plan moving forward Our digital transformation What you can expect from us today
2016 2015 2014 Consolidated our strategy and focused on our priorities and expectations Strengthened our operating model and capital structure while stretching our targets to accelerate recovery Significantly improved our capital structure, despite strong headwinds We are advancing on our journey to further create value
Major milestones achieved On a like-to-like basis, excludes distribution expense, depreciation, and amortization Highest consolidated cement volumes since 2008 Record-low SG&A(1) as a percentage of sales of 10.3% in 2016 Highest operating EBITDA margin since 2007 Lowest level of working capital days Highest free cash flow after strategic CAPEX since 2006 ~$4.4 B total debt reduction from December 2013 levels Lowest net financial leverage since 2006 Highest net income since 2007
We delivered a solid operational performance EBITDA Variation ($ M) 2016 Variable cost & dist. 2016 Like-to-like Fixed cost & other FX(1) 2015 Includes $61 M impact due to dollarized costs in our operations
Focusing on cost containment efforts that contributed to our EBITDA Kiln efficiencies up to 89% Energy optimization Continuous improvement Operational efficiencies Cement operations Supply Chain Supply Chain optimization Freight management + $150 M 2016 Benefits Initiatives
While maximizing FCF generation CAPEX Free Cash Flow after Maintenance CAPEX Variation ($ M)
Which led to a significant debt reduction… Total Debt plus Perpetuals Variation ($ M)
… and a solid improvement in our balance sheet risk ≥27 ≥ 25 December 2013 Total Debt + Perps: $17.5 B Avg. life: 4.5 years December 2016 Total Debt + Perps: $13.1 B Avg. life: 5.2 years
Significant progress over the last 3 years EBITDA and Margin (2) Asset sales Debt and financial leverage(1) +32% l-t-l 1.7 -0.1 0.5 22% 61% FCF and conversion rate(1) Data expressed in $B, unless otherwise stated FCF= Free Cash Flow after maintenance CAPEX; Conversion Rate=EBITDA conversion into FCF; Debt= Total debt plus perps; Financial leverage= Debt/EBITDA Includes: U.S. Concrete Pipe Business, Fairborn cement plant, Mexico ready-mix concrete pumping assets and our operations in Croatia.
As a result, we exceeded our targets and set new goals… Target Achieved in 2016 Free Cash Flow initiatives CFD(1) / EBITDA Total debt reduction Asset divestments $670 M 4.25x by December $3.0 – $3.5 B $1.5 – $2.0 B ~ $1.0 B 4.22x ~ $2.3 B ~ $2.0 B Initiatives Total debt reduction $2.0 – $2.5 B ~ $2.3 B Cost and expense reductions $150 M 100% 2016 - 2017 2016 Consolidated Funded Debt as defined under our current Facilities Agreement New Targets $3.5 – $4 B ~ $2.5 B
... despite a challenging 2016 Super dollar Europe’s stagnant growth and weak banking sector Mexico facing a complex macro environment Geopolitical tensions denting economic growth Volatility in the global energy and commodity markets Uncertainty about Federal Reserve’s policies
Expected outlook for 2017 calls for cautious optimism Positive impact from US expansionary policies and infrastructure plans Favorable demand outlook for Mexico driven by housing Sufficient capacity in the Americas to capture growth in the medium term Housing and infrastructure spending in our main European markets Further expectations of a stronger US dollar Political uncertainty in several key markets
We are in a stronger position to accelerate value creation… More resilient More flexible Stronger capital structure Solid Value before Volume strategy
… and getting closer to our mid term goals EBITDA Margin >20% FCF Conversion rate(3) >50% Leverage Ratio(2) <3.0x ROCE(1) >10% 6.7% 4.2x 61% 20.5% 2016 Performance ROCE = Net Operating Profit After Tax/Net Assets Consolidated Funded Debt/EBITDA FCF Conversion Rate = Free Cash Flow after maintenance CAPEX/EBITDA
Driving shareholder return through disciplined capital allocation Accelerate organic growth Re-invest in business Return capital Dividends Share repurchases Pursue incremental growth M&A Prioritize investment grade capital structure
We continue to focus on our top priorities Health & Safety Zero for Life Return to Investment Grade Regain financial flexibility Customer Centricity Reinforce our customer-focused culture One CEMEX Leverage knowledge across our operations
Moving the center of gravity towards the customer Committed to deliver a Superior Customer Experience Accelerating path to transform CEMEX To achieve the best customer satisfaction of any business-to-business company
Redefining the way we engage with clients through a bold digital transformation Continuously innovate Revamp key internal processes and policies Align the organization Measure customer satisfaction Enabled by Digital Solutions
Covering all our products across all the segments we serve Distributors Industrials Builders Segments Products Multiproducts Ready-mix Aggregates Bulk cement Bagged cement
Transforming how we interact with our customers throughout their journey Error-free invoicing & easier payment Customer Journey Easy registering, applying and obtaining credit & quoting Fast, obstacle-free ordering Delivery tracking for all products Complaint & inquires management Credit & Prices Mgmt. Place Order & Fulfillment Invoice & Payment Mgmt. Opportunity Mgmt. After Sales Services Registration, Credit & Prices Placing orders Receive products & Services Invoicing & Payments Inquiries & Complaints
Developing a comprehensive set of eight digital solutions Credit & Prices Mgmt. Place Order & Fulfillment Invoice & Payment Mgmt. Opportunity Mgmt. After Sales Services Registration, Credit & Prices Placing orders Receive products & Services Invoicing & Payments Inquiries & Complaints Customer Journey 2 Quotation and pricing 1 Customer information Orders and product catalogue 3 Delivery schedule 4 Track and trace 5 Drivers service 6 7 Invoice and disputes Payments 8
2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 Getting ready for a global roll out USA & Mexico Colombia & UK Philippines & France Germany & Egypt Rest of the world Preparation Pilot Deployment By early 2018 half of our revenues will come from transactions using our digital platform
While leading the next wave of evolution in the construction industry CEMEX Ventures is an open program and venture capital focused on the entire construction ecosystem Leading partners working together to apply differentiated capabilities Internal and external interactions will be leveraged for new sources of ideas and funds
Health & Safety: Achieve Zero for Life health and safety standards Regain investment grade capital structure as soon as possible Drive shareholder return through disciplined capital allocation Deliver consistently a superior customer experience What you should expect from us
Juan Pablo San Agustín EVP of Strategic Planning and New 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 of anti-trust laws and as such, amongbusiness 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 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.
Solid ROCE improvement Encouraging industry outlook and dynamics Continue driving shareholder returns CEMEX Ventures to unlock value across the construction ecosystem What can you expect from us today
Operating Performance Improvement Asset Base Optimization ROCE Improvement Levers ROCE We doubled our ROCE in the past three years ROCE
Encouraging cement demand outlook National Cement Consumption CAGR 2017-2021 Ready-mix for France, UAE and Israel Source: CEMEX, CemWeek Stagnation (0% to +2%) Strong growth ( > +5%) Growth (+2% to +5%) Decline (-5% to 0%)
Return on Capital is paramount Marginal capacity increases Supportive macro-economics Better pricing momentum Strong operating leverage Positive volume outlook Industry returning to sustainable profitability
2017e >550 >1,900 Pricing Benefits(1) (l-t-l) ($ M) Services & Surcharges Benefits ($ M) 210 2017e 230 230 ~240 Pricing, a key driver for CEMEX’s value creation (2) Excludes TCL. 2016-2017 proforma for divestments. Includes cement, ready-mix and aggregates CAGR from 2014 to 2016
CEMEX Day 2016
Achieving our mid term EBITDA margin target sooner CEMEX EBITDA Margin % +100 bps +310 bps
Multiple refers to EV/EBITDA Excludes fixed asset sales CHP IPO 507 Fairborn 400 West Texas 306 US Pipes 500 GCC Secondary Offering 210 Other 140 Total 2,063 2016-2017 YTD 1,853 2,063 663 Significantly rebalanced portfolio at multiples(1) in excess of 10x… Asset Amount ($ M) Divestments 2014 – 2017 YTD(2) ($ M)
… while executing accretive growth opportunities… On January 24, 2017 CEMEX announced the successful take-over bid of Trinidad Cement Limited (“TCL”) and started consolidating TCL on February 1st, 2017 CEMEX acquired ~114 M ordinary shares representing ~30.3% of TCL’s outstanding shares for a total consideration of ~$86 M With this transaction CEMEX’s stake in TCL will be ~69.8%, consolidating an EBITDA for 2016 of ~$70 M The EV/EBITDA multiple for this transaction was ~6.7x
TCL EBITDA Divested EBITDA (~50) Total EBITDA impact ~70 ~(120) 2016 estimated annualized impact EBITDA divested: ~US$50 M Total net proceeds: ~US$2,000 M … and maximizing the deleveraging effect EBITDA divested from portfolio rebalancing 2016-2017 YTD(1) ($ M)
> Total ‘12-’17e >1,100 2017e 26 2017e Unlocking additional value through asset optimization 28 25 6 -11 -14 19 EoP days Fixed Asset Sales ($ M) Working Capital(1) (Average Days) 30 -4 2015-2017 excludes discontinued operations
Continue to improve shareholder return in 2017… ROCE Improvement Levers Operating Performance Improvement Asset Base Optimization 2017 Expectations Price improvement > $550 M EBITDA margin expansion > 20% Asset disposals > $500 M Working Capital ~ -14 Days (EoP) Supply chain improvements & cement operational efficiencies
… enhancing returns in the medium term through disciplined capital allocation CAPEX deployment Bolt-on acquisitions Asset swaps, JV´s, acquisitions CX Ventures Accelerate organic growth Return capital Pursue incremental growth
Exploring opportunities across the entire construction ecosystem HBM = Heavy Building Materials Development Preliminary Design, Approval, detailed Engineering Property mgmt. Services Construction Raw materials supply Direct material deliveries Development Planning Construction Operations End user Shell Installation Interior Appro- val Construction (civil) Maintenance Residential Commercial/industrial Informal housing Public Infrastructure Instructions for construction Supplier recommendations Stakeholders and Customer segments Distributors (authorized, premium, multi-brand, independent) Retailers (big depots, smaller retailers & re-sale) Distribution Property mgrs., private owners Service companies Developer (owner) Developer or project manager Traders Contract partner: Construction co., Self contractor Architect, civil engineer, specialized planner Subcontractors Raw material suppliers Pure Logistic providers Financial services Mining Manufacturing HBM(1)
Following clear guiding principles to look into new growth opportunities Open and collaborative Low capital intensive Accelerate technology adoption in construction Capitalize on existing inefficiencies in construction
CX Ventures as the vehicle to capture value Collaboration | Flexibility | Transparency Startups Associations Academia Research Construction Leaders Entrepreneurs Mid-Market Corporate Large Corporate City Planning Government IBM Research Watson Ecosystem Smarter Cities Cross-Industry Leaders VCs CEMEX Employees & Global Networks
Take advantage of improving demand dynamics in our key markets Continue to deliver on Value before Volume Actively manage our portfolio, with strict capital allocation discipline Developing new sources of value creation across the construction ecosystem What you should expect from us Deliver improved shareholder value
José Antonio González Chief Financial Officer 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”) intend 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 of anti-trust laws and as such, among 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 antitrust 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. 2
Regain Investment Grade capital structure Financial Strategy Objective Reduce refinancing risk Delever Lower financial cost Minimize dilution Financial strategy designed to strengthen our capital structure
Improvement in capital structure accelerating over last three years… As defined under CEMEX’s Credit Agreement Total Debt + Perpetuals / EBITDA Total Debt + Perpetuals $17.7 B $17.5 B $13.1 B Optional Convertible notes $0.7 B $2.4 B $1.2 B % Bank debt 56% 25% 22% % Fixed debt 38% 68% 73% Avg. Life of debt (years) 3.8 4.5 5.2 Credit Agreement Leverage 7.4x 5.5x 4.2x Financial Leverage 7.7x 6.6x 4.7x 2010 2013 2016 (1) (2)
… which translates into stronger credit metrics Credit rating Intl. scale Fitch S&P B+ B BB- B+ BB- BB- Credit rating Mexico scale Fitch S&P BB- BB+ BBB- BBB A A- Debt cash cost 6.5% 6.6% 5.9% Bank debt spread 450 bps 450 bps 300 bps Margin grid Financial expense $1,118 M $1,423 M $985 M(1) Interest Coverage(2) 1.95x 2.11x 3.18x(1) Committed Revolver Credit Line - - $1.4 B 2010 2013 Current Full year 2016 As defined under CEMEX’s Credit Agreement
25% debt reduction in 3 years Considers deleverage from EBITDA growth of (0.4x) Divestments EBITDA generating deleverage of (0.3x) and Non-EBITDA generating of (0.4x) 6.6x 4.7 x Financial Leverage (-2.0x) (0.8x)(1) (0.7x)(2) (0.3x) (0.2x) (0.2x) 0.3x Total Debt Plus Perpetuals Variation ($ B) (0.8) (1.9) (1.3) (0.5) (0.6) 0.8
≥27 ≥ 25 Improving metrics and market liquidity allowing us to significantly de-risk balance sheet December 2013 Total Debt + Perps: $17.5 B Avg. life: 4.5 years December 2016 Total Debt + Perps: $13.1 B Avg. life: 5.2 years
In 2017 we will further strengthen our capital structure Reduce debt by ~$1.2 - 1.7 B Asset sale proceeds collected YTD $1.1 B Pending announced asset sales$0.3 B Other asset sales + FCF ~$2.3 B notes are callable during next 10 months Extend and optimize conditions of bank debt Prepare for convertible notes maturity of $690 M due in March of 2018 Explore debt in other currencies PHP, GBP and/or EUR
Debt currency mix driven by optimal funding sources and long term cost $ $ $0.2 $ U.S. billions EoY 2016 1) USD Assets, EBITDA and FCF include US, Panama and Puerto Rico $ $ $ $ (1) (1) (1)
We have begun to hedge some of our short term cash flows We typically convert our net operating free cash flow from EM into USD at the spot rate We initiated a cash flow hedging program to smooth out the FX rate at which purchases take place Notional amount of up to $1.25 B in FX forward MXN sales/USD purchases with average life of ~1 year (1 to 24 months) Negative pay-out occurs when MXN is strengthening and vice versa
Deleveraging building blocks EBITDA growth Every +$200 M ~0.3x Deleverage Contribution FCF after Total CAPEX Asset sales(1) Every $1.0 B ~0.4x $1.5 B ~0.4x 2018 Convertible Notes $690 M ~0.2x Recurring Addtl. measures 1) Proceeds from asset sales applied to debt payment
Reach investment grade capital structure Delever Maintain ample liquidity and reduce refinancing risk Lower financial cost Deliver increasing value to shareholders What you should expect from us
Juan Romero President CEMEX Mexico 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 of anti-trust laws and as such, among 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 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. 2
Record EBITDA generation in Mexican pesos Includes $33 M impact due to dollarized costs in our operations Fixed cost & other (1) 2016 Like-to-like EBITDA Variation ($ M) EBITDA Margin +8% 1,249 +29% 1,041 966 68 335 34.0% +2.4pp 36.4%
Value before Volume strategy delivers solid results Data considers CIF prices Domestic gray cement CAGR from 2013 to 2016 Cement(2) (LC/ton) Ready-mix (LC/m3) Aggregates (LC/ton) Price by Business Segment(1) (3) (3) (3)
As we recovered market position Domestic gray cement CAGR from 2013 to 2016 Cement(1) (M tons) Ready-mix (M m3) Aggregates (M tons) Volume by Business Segment (2) (2) (2)
We continued implementing cost containment efforts RDF: Refuse-Derived Fuel RDF Usage (K tons) Refractory, Balls & Crushers (Unitary costs in USD) $7 M savings due to use of alternative fuels in 2016 $2 M incremental savings in 2016 +116% -29%
Significant progress on Working Capital management Working Capital (Average Days) Unlocked ~$180 M in average working capital during 2016
Growth outlook continues to be cautiously optimistic Source: CEMEX and Banxico estimates, and INEGI. Figures are non-seasonally adjusted. Total GDP Growth (%) e e Expected positive industry dynamics State & Federal elections Construction of Mexico’s City Airport Formal Housing driven by diversified financing Expected budgetary pressures & tighter monetary policy NAFTA uncertainty Outstanding results achieved in 2016, despite a complex environment Outlook for 2017-2018
Positive industry dynamics Source: Gray cement plus mortar demand information from INEGI, and CEMEX estimates. Capacity based on public information. 5.1 7.8 3.0 2.0 3.0 (%) e e 0.5 0.5 2.2 3.9 2.1 e e (%) Demand Growth (M tons) Additional Capacity (M tons)
Infrastructure 2017-2018 demand perspectives Supportive private bank mortgage lending Recent changes make INFONAVIT more attractive Lower funding for government housing subsidies (CONAVI) Expected performance Steady growth in job creation Remittances should remain strong State elections provide demand upside Commercial and tourism development Gas pipeline network & electricity investment will continue FDI slowdown Budgetary restrictions Mexico City’s new airport Recently announced PPP program Federal elections in 2018 Formal housing Self construction Industrial & commercial
We have a solid strategy for what lies ahead A robust offer by segment… … generating value for the company… … while providing the best customer experience Builders Segment Cross selling benefits Ready-mix % EBITDA Other products New offer Digital tools Simple processes Internal Culture Distribution Segment Net Promoter Score % Detractors % Promoters = - Customer Centric KPIs
Focused on creating a superior customer experience Support from sales team Speed of product Invoice Placing order Product quality Delivery on time Other Service center support Tech support Brand Product availability 01 Schedule a visit 02 Experience 03 Generate report 04 Follow up on your team 05 Call to action The Customer Journey Experience Program Opportunities identified to improve our customer experience
Achieve and sustain Zero for Life Continue our Value before Volume strategy Reinforce cost containment efforts Maintain our focus on working capital management Build a superior customer experience What you should expect from us
Joaquín Estrada President CEMEX Asia, Middle East and Africa Exhibit 5 Dubai International Airport, United Arab Emirates
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”) intend 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 of anti-trust laws and as such, among 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 antitrust 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. 2
21.9% +2.5pp Focusing on the variables we control offset macro challenges 2016 Variable cost & distr. 2016 Like-to-like FX 2015 Fixed cost & other EBITDA Variation ($ M) EBITDA Margin 24.4%
1)Domestic gray cement 2)CAGR from 2013 to 2016 3)Like-to-like basis (including divestment in Malaysia in 2015) Increasing volumes where we can… -4% +3% +1% 0% Cement (M tons)(1) Ready-mix (M m3) Aggregates (M tons) (2) (2) 2016 vs. 2015 +1% +7% (3)
… while delivering on our pricing strategy 1)Domestic Gray Cement CAGR from 2013 to 2016 Data considers CIF prices Philippines Cement(1) (LC/ton) +1% +2% Israel Ready-mix (LC/m3) 0% +1% Egypt Cement(1) (LC/ton) +3% +5% Israel Aggregates (LC/ton) +5% +10% (2) (2) (2) (2)
Creating value for our customers and for us Ready-mix Value Added Products EBITDA Contribution ($ M) +24% 2016 21 26 Ready-mix Services & Surcharges Revenues ($ M) +53% as % of sales 2% 3% 2016 10 15
94% -4% -32% Philippines ($/ton) Egypt ($/ton) -10% -8% Cement Unitary Production Cost Operational efficiency (%) 92% 90% 90% 92% 94% 91% 91% CAGR from 2013 to 2016 (1) (1) Reducing cement operating costs while maximizing efficiency
Fuel cost (USD/ton) Opportunistically optimizing energy supplies Egypt Philippines Petcoke grinding facility initiated operations in 4Q 2015 to switch between mazot and petcoke as primary kiln fuel Achieved 1 year payback on investment Reduced fuel costs by 58%, ($49 M in savings in 2016) Flexibility to move between the grid and self generation of electricity ($14 M in savings in 2016) Only cement plant to implement an energy efficiency system Energy contracts in place for 2017 with favorable conditions for 75% of coal needs and 100% of fuel oil for electricity 2Q15 4Q15 4Q16 Petcoke Mazot AF
Strong working capital performance by sharing best practices Working Capital (Average Days) Unlocked $21 M in avg. working capital during 2016
e e e e Philippines cement demand likely to grow 109% 104% 112% 115% 107% 110% M tons Demand as % of operational capacity Out of the 19% of cement demand served by imports, 14% are brought in by local producers Source: CEMEX estimates
Egypt supply/demand dynamics are unbalanced e e e e 89% 94% 89% 90% 79% 80% 75 75 79 79 94 101 Potential new capacity Demand as % of operational capacity M tons Source: CEMEX estimates
2004 Ready-mix Volume (M m3) +8% (1) Aggregates Volume (M tons) EBITDA ($ M) 2010 2016 Success story within CEMEX Pioneer in technical sales of high specification concrete Generating value globally by spreading know-how across the organization 1)CAGR 2008 +2% (1) 2012 2016 11x 2004 2010 2016 EBITDA Margin 6% 12% 14% Value added products % penetration Israel: Customer centric organization supporting strong growth
Philippines Israel UAE Taken first steps to stimulate the economy over the medium term Positive demand fundamentals: rising demographics and infrastructure investment Currency flotation has stabilized foreign exchange market, but provoked inflation Positive outlook due to sound fiscal fundamentals Growth driven by government’s infrastructure program and consistent remittances supporting residential sector 2017 GDP forecast upgraded to 3.2% Favorable demographics Strong growth primarily in housing and infrastructure Investments in infrastructure and urban development Construction of facilities for EXPO 2020 Egypt Expected demand outlook
Health & Safety: Achieve and sustain Zero for Life Customer centric organization offering the most innovative building solutions with superior services and value added products, at premium prices Maintain Operational Excellence through the most cost efficient fuel mix Sustaining a high free cash flow conversion Maintain flexibility to optimize our asset footprint What you should expect from us
Jaime Elizondo President CEMEX Europe 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”) intend 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 of anti-trust laws and as such, among 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 antitrust 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. 2
Diversified and attractive European portfolio Croatia considered as discontinued operation 2016 EBITDA Spain France Germany Poland Rest of Europe United Kingdom Cement Aggregates Others Ready-mix
Despite political headwinds, solid 2016 operational performance for the region Croatia considered as discontinued operation EBITDA Variation(1) ($ M) FX Fixed cost & other 2015 Variable cost & distr. 2016 2016 Like-to-like
Improving margins Croatia considered as discontinued operation Proforma reflecting new Europe region EBITDA/Sales(1) (%) (2) (2)
UK performance… beating records CAGR from 2013 to 2016 Improving profitability by reducing fixed and variable costs Reducing SG&A/Sales Working capital optimization Benefiting from 5 year National Productivity and Investment Fund +36% EBITDA Evolution ($ M) (1)
Leaders in alternative fuel usage Source: Cembureau – Europe cement industry average Alternative Fuel substitution (%) Alternative Fuel Substitution 2016 (%) +$50 M savings from alternative fuels vs. using fossil fuels in 2016 % % % % % % EU aspirational avg. 2050(1) EU avg. 2015(1) Fuel Mix 2016 (%) Alternative fuels Petcoke Coal Other
Further efficiencies in working capital Croatia considered as discontinued operation Proforma reflecting new Europe region (2) (2) Working Capital(1) (Average Days) Unlocked ~$60 M in average working capital during 2016 10 5 -1
Europe is changing Opportunities ECB expansionary monetary policy Unsatisfied housing demand exacerbated by immigration Increased government investment in infrastructure Higher construction growth Challenges Political uncertainty Industry overcapacity
Growth opportunities Construction activity should be fostered by improved demand in residential and infrastructure €270 billion through 2030 (over 1,000 projects) ₤8 billion in 4 years in Housing €26 billion in 15 years (x2 Metro Network) National Productivity Investment Fund €31 billion in 4 years (Poland, Czech Republic & Latvia)
Health & Safety: Achieve and sustain Zero for Life Leveraging expertise to respond to emerging opportunities in housing and infrastructure Optimize our asset base Continue price and margin improvements Achieve higher levels of operating excellence What you should expect from us in this environment Improving returns for shareholders
Jaime Muguiro President CEMEX South, Central America and the Caribbean 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 of anti-trust laws and as such, among 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 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. 2
Despite strong headwinds in 2016, solid operational performance for the region Includes $9 M impact due to dollarized costs in our operations EBITDA Variation ($ M) 2016 2016 Like-to-like Fixed cost & other FX(1) Variable cost & distr. 2015 EBITDA Margin 30.2% 31.4% +1.5pp 31.7%
Cement Volume (YoY %) SCA&C Cement Volume (M tons) We were able to maintain our cement volume and price in a difficult market environment During 2016, industry cement demand decreased ~1.5% in the region, while we grew by ~1% 2016 2015 2014 2013 0% +1% -3% +4% -2% +2% -3% Price Var. (% LC)
Further improvements in Working Capital contributed to a strong free cash flow 2014 2013 2015 2016 Unlocked ~$97 M in average working capital during 2016 Targeting negative WC Working Capital (Average Days)
2017, a transition year, with complex competitive dynamics in Colombia Cement Demand Growth (2017e) Colombia: Volumes for 4G’s should drive cement demand, starting 2H17 Panama: Infrastructure projects expected to offset decline in other sectors Costa Rica: Public spending should increase in advance of elections in 1Q18 Dominican Republic: Economic conditions could foster private investment Panama Nicaragua Dominican R. Guatemala Colombia El Salvador Haiti Puerto Rico Jamaica Trinidad Bahamas Guyana Barbados Surinam Costa Rica Tobago TCL Markets St. Vincent Granada Sta. Lucia Decline (<0%) Moderate growth (2%-4%) Limited growth (0%-2%) Significant growth (>4%)
TCL Working Capital (Average Days) TCL EBITDA ($ M) TCL has a cement capacity of 2.4 M tons, serving most of the CARICOM markets 19.6% 28.1% 24.7% EBITDA Margin (%) Consolidation of TCL should support regional EBITDA in 2017 Net Debt / EBITDA 4.3 1.7 1.8 Targeting negative WC 2016 2014 2015 2014 2016 2015
Further opportunities exist to reduce costs in the region... Increase usage of alternative fuels Capture synergies from TCL integration Increase labor productivity Reduce costs along the supply chain Optimize our asset base in Colombia(1) In process of temporarily mothballing Bucaramanga grinding plant in Colombia, as per stated in CLH 4Q16 financial statements. We currently expect the grinding plant to be mothballed in 2Q17.
... while we keep strengthening our market position through a customer centric strategy MIX3R Technical advisory and tailor-made solutions aimed at increasing productivity and profitability for our industrial customers producing ready mix, mortar, and pre-casts Value added solution for our distributors and industrial customers, focused on increasing coverage and share of wallet in construction projects, leveraging on mobile technology Largest building material retail network in Latin America, with +430 stores in SCA&C; selling ~40% of our bagged cement in Colombia, Nicaragua, and Costa Rica Comprehensive management and monitoring system that ensures an effective, simple, and pleasant experience for our customers
Positive outlook for 2018-20 in Colombia, supported by infrastructure and social housing BRT = Bus rapid transit Subsidies for social and middle income housing 30k homes from 2nd phase of free housing program Residential projects in Bogota 4G infrastructure projects Private initiative PPPs Port and airport infrastructure expansion New Transmilenio BRT lines Bogota Metro Project Refurbishing of existing train tracks Potential investments of ~$15 B in pipeline “Vías para la paz” road program Transportation projects from royalties fund Higher investment in roads in Bogota: West Longitudinal Avenue Expansion of Northern Highway
Expected better performance in construction activities in Central America and the Caribbean 2018-2020 Hospitality projects 25k housing units 2nd and 3rd lines of subway Urban renovation of Colon Port of Rodman Transistmica Ave. expansion AES Colon electricity project Chinandega–Guasaule road Mulukuku–Siauna road Bluefields–Naciones Unidas road Industrial and Commercial works Sanarate–El Rancho highway Panama Nicaragua Guatemala Northern beltway San José–San Ramón highway Cañas–Limonal highway Sixaola bridge Capulín hydrolectric dam Costa Rica Dominican Republic Potential investments of ~$12 B in pipeline
Health & Safety: Improve safety until we achieve our Zero for Life target Responsibly maintain our cement market position in Colombia and resume Value before Volume strategy as soon as the market recovers Improve our EBITDA margin at least by 1.5pp in the next three years, through cost efficiencies, and TCL integration Commission Maceo cement plant as soon as possible What you should expect from us
Ignacio Madridejos President CEMEX USA 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”) intend 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 of anti-trust laws and as such, among 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 antitrust 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. 2
(2) Fixed cost & other (1) Variable cost & dist. 2015(1) Highest EBITDA margin since 2008 EBITDA Variation ($ M) More than 100% in operating leverage in 2016 1) 2015 and 2016 figures restated to exclude discontinued operations (concrete pipe) 2) Divestments include West Texas and Fairborn 14.3% +2.6pp EBITDA Margin 16.9%
Volumes increasing at steady pace Domestic gray cement CAGR from 2013 to 2016 Note: Results on a like-to-like basis (excluding West Texas and Fairborn) Volume by Business Segment Cement(1) (M tons) Ready-mix (M m3) Aggregates (M tons) (2) (2) (2)
Pricing strategy yielding strong results Cement(1) ($/ton) Ready-mix ($/m3) Aggregates ($/ton) Freight to customer (2) (2) (2) Price by Business Segment Domestic gray cement CAGR from 2013 to 2016 Data considers CIF prices Data considers FOB prices Note: Results on a like-to-like basis (excluding West Texas and Fairborn) (3) (3) (3) (4) (4)
Positive pricing trend expected to continue in 2017 Mid-south Ready-mix California Cement Aggregates Ready-mix Strong Up = Stable Arizona Cement Aggregates Ready-mix Texas Cement Aggregates Ready-mix = Florida Cement Aggregates Ready-mix South Atlantic Cement North Atlantic Cement Colorado Cement Price increase effective January 2017 Price increase effective April 2017
Contained costs through Operational Excellence Unitary Production Cost (1) (1) (1) In addition, SG&A and distribution expenses reduced by 3% in 2016 1) CAGR from 2013 to 2016 Note: Results on a like-to-like basis (excluding West Texas and Fairborn) Cement ($/ton) Ready-mix ($/m3) Aggregates ($/ton)
Significant reduction in working capital -17 Note: Figures exclude discontinued operations (concrete pipe) Unlocked ~$170 M in avg. working capital during 2016 Working Capital (Average Days)
All sectors expected to continue driving growth Large pent-up demand and low inventory High affordability and improving credit availability Potential tax reform to increase disposable income Office and lodging leading growth Oil and gas turning the corner Deregulation 5-yr secured federal funding (FAST Act) Potential border wall Bipartisan supported $1 trillion infrastructure plan Source: CEMEX estimates Residential Industrial & Commercial Public 4 to 6% 5 to 6% 4 to 6% Cement Demand CAGR ’16 -’19
Creating more favorable supply/demand dynamics e +6% e e Demand MTPA (1) CAGR from 2016 to 2019 is the upper range scenario CAGR from 2016 to 2019 is the lower range scenario Source: US Geological Survey, CEMEX estimates Practical capacity +4% (2) Cement Demand and Practical Capacity
Extensive asset network to capture future growth Cement plant Cement terminal Core asset footprint Ready-mix plant Aggregates quarry ~2.7 M tons of available domestic cement capacity and 11 deep water terminals capable of importing 9 M tons/year Mothballed cement plant
Health & Safety: Continue to put safety first to achieve and sustain Zero for Life Greater profitability as we strive for higher prices while containing costs Increased free cash flow generation supported by negative working capital Capture full value of potential growth by leveraging existing asset base What you should expect from us