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, 2017
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 ☒ 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 27, 2017, announcing first quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. | First quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. | Presentation regarding first quarter 2017 results for 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 27, 2017 | By: | /s/ Rafael Garza | |||||
| Name: Rafael Garza | ||||||||
| Title: Chief Comptroller | ||||||||
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. |
Press release, dated April 27, 2017, announcing first quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. |
First quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. |
Presentation regarding first quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE:CX). | |
Exhibit 1
| Media Relations Jorge Pérez |
Investor Relations Eduardo Rendón |
Analyst Relations Lucy Rodriguez | ||
| +52(81) 8888-4334 mr@cemex.com |
+52(81) 8888-4256 ir@cemex.com |
+1(212) 317-6007 ir@cemex.com |
CEMEX REPORTS CLOSE TO A TENFOLD INCREASE IN NET INCOME DURING THE FIRST QUARTER OF 2017
| • | Net income reached US$336 million in the first quarter of 2017, close to tenfold increase from an income of US35 million in the same period last year. |
| • | Consolidated net sales and operating EBITDA increased on a like-to-like basis by 6% and 2%, respectively, during the first quarter of 2017 versus the comparable period in 2016. |
MONTERREY, MEXICO, APRIL 27, 2017– CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX), announced today that, on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 6% during the first quarter of 2017 to US$3.1 billion versus the comparable period in 2016. Operating EBITDA on a like-to-like basis increased by 2% during the quarter to US$559 million versus the same period in 2016.
CEMEX’s Consolidated First-Quarter 2017 Financial and Operational Highlights
| • | The increase in quarterly consolidated net sales was due to higher prices of our products, in local currency terms, in most of our operations, as well as higher volumes in Mexico and our Europe and South, Central America and the Caribbean regions. |
| • | Operating earnings before other expenses, net, in the first quarter increased on a like-to-like basis by 3%, to US$351 million. |
| • | Controlling interest net income during the quarter improved to US$336 million, from an income of US$35 million in the same period last year. |
| • | Operating EBITDA on a like-to-like basis increased by 2% during the quarter and compared to the same period in 2016, to US$559 million. |
| • | Operating EBITDA margin decreased by 0.5 percentage points on a year-over-year basis reaching 17.8%. |
| • | Free cash flow after maintenance capital expenditures for the quarter was negative US$153 million, compared with US$8 million in the same quarter of 2016. |
Fernando A. Gonzalez, Chief Executive Officer, said: “We continued to see favorable results from our value-before-volume strategy during the quarter. Sequential and year-over-year pricing increased in the low- to mid-single digits for our three core products. This, together with favorable volume dynamics in Mexico and our Europe and South, Central America and Caribbean regions led to solid growth in consolidated sales and operating EBITDA, on a like-to-like basis. In addition, net income increased close to a tenfold during the quarter.
During the quarter, we reduced our total debt by US$470 million. This debt level is more than US$2.7 billion lower than that at the end of 2015, representing a reduction of close to 18%. We have about US$230 million of announced asset sales pending to close. This, plus free cash flow generation during the rest of the year should help us continue to de-lever, reach our debt reduction target for this year, and bring us closer to an investment-grade capital structure.”
Consolidated Corporate Results
During the first quarter of 2017, controlling interest net income was a gain of US$336 million, an improvement over a gain of US$35 million in the same period last year.
Total debt plus perpetual notes decreased by US$470 million, or nearly 4%, during the quarter.
Geographical Markets First-Quarter 2017 Highlights
Net sales in our operations in Mexico increased 28% on a like-to-like basis in the first quarter of 2017 to US$725 million. Operating EBITDA increased by 31% on a like-to-like basis to US$267 million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of US$834 million in the first quarter of 2017, up 2% on a like-to-like basis from the same period in 2016. Operating EBITDA increased by 32% on a like-to-like basis to US$118 million in the quarter.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$480 million during the first quarter of 2017, representing a decrease of 1% on a like-to-like basis over the same period of 2016. Operating EBITDA decreased 15% on a like-to-like basis to US$133 million in the first quarter of 2017.
In Europe, net sales for the first quarter of 2017 increased 5% on a like-to-like basis to US$711 million. Operating EBITDA was US$33 million for the quarter, 30% lower on a like-to-like basis than the same period last year.
Operations in Africa, Middle East and Asia reported an 8% decrease on a like-to-like basis in net sales for the first quarter of 2017, to US$326 million, versus the first quarter of 2016. Operating EBITDA for the quarter was US$64 million, down 26% on a like-to-like basis from the same period last year.
CEMEX is a global building materials company that provides high-quality products and reliable services to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
###
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 CEMEX 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 CEMEX 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 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. CEMEX assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating income 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). Net debt is defined as total debt minus the fair value of cross-currency swaps associated with debt minus cash and cash equivalents. The Consolidated Funded Debt to Operating EBITDA ratio is calculated by dividing Consolidated Funded Debt at the end of the quarter by Operating EBITDA for the last twelve months. All of the above items are presented under the guidance of 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 CEMEX believes that they are widely accepted as financial indicators of CEMEX’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 CEMEX’s financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
.
Exhibit 2
2017
FIRST QUARTER RESULTS
Stock Listing Information NYSE (ADS) Ticker: CX
Mexican Stock Exchange
Ticker: CEMEXCPO Ratio of CEMEXCPO to CX = 10:1
Investor Relations
In the United States:
+ 1 877 7CX NYSE In Mexico:
+ 52 (81) 8888 4292
E-Mail:
ir@cemex.com
Operating and financial highlights
January – March First Quarter
l-t-l l-t-l
2017 2016 % Var. % Var.* 2017 2016 % Var. % Var.*
Consolidated cement volume 15,569 15,622
(0%) 15,569 15,622 (0%)
Consolidated ready-mix volume 12,218 11,725 4% 12,218 11,725 4%
Consolidated aggregates volume 34,573 33,394 4% 34,573 33,394 4%
Net sales 3,137 3,114 1% 6%
3,137 3,114 1% 6%
Gross profit 1,009 1,012 (0%) 6% 1,009 1,012 (0%) 6%
as %
of net sales 32.2% 32.5% (0.3pp) 32.2% 32.5% (0.3pp)
Operating earnings before other 351 353 (1%) 3% 351 353 (1%) 3%
expenses, net
as % of net sales 11.2% 11.3% (0.1pp) 11.2% 11.3% (0.1pp)
Controlling interest net income (loss) 336 35 847% 336 35 847%
Operating EBITDA 559 570 (2%)
2% 559 570 (2%) 2%
as % of net sales 17.8% 18.3% (0.5pp) 17.8% 18.3% (0.5pp)
Free cash flow after maintenance
capital expenditures (153) 8 N/A (153) 8 N/A
Free cash flow (181) (35) (412%) (181) (35) (412%)
Total debt plus perpetual
notes 12,603 15,999 (21%) 12,603 15,999 (21%)
Earnings (loss)of continuing operations 0.14 0.02 464% 0.14 0.02 464%
per ADS
Fully diluted earnings (loss) of
continuing operations per ADS (1) 0.14 0.02 457% 0.14 0.02 457%
Average ADSs outstanding
1,490.5 1,482.6 1% 1,490.5 1,482.6 1%
Employees 40,550 41,185 (2%) 40,550 41,185 (2%)
This information does not include discontinued operations. Please see page 14 on this report for additional information. 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-ADS amounts. Average ADSs outstanding
are presented in millions.
Please refer to page 7 for end-of quarter CPO-equivalent units outstanding.
*Like-to-like (“l-t-l”) percentage variations adjusted for investments/divestments and currency fluctuations.
(1)For 2016, the effect of the potential dilutive shares generate anti-dilution; therefore, there is no change between the reported basic
and diluted loss per share.
Consolidated net sales in the first quarter of 2017 reached US$3.1
billion, representing an increase of 1%, or an increase of 6% on a like- to-like basis for the ongoing operations and for foreign exchange fluctuations compared with the first quarter of 2016. The increase in consolidated net sales was due to higher
prices of our products, in local currency terms, in most of our operations, as well as higher volumes in Mexico and our Europe and South, Central America and the Caribbean regions.
Cost of sales as a percentage of net sales increased by 0.3pp during the first quarter of 2017 compared with the same period last year, from
67.5% to 67.8%. The increase was mainly driven by higher energy costs.
Operating expenses as a
percentage of net sales decreased by 0.2pp during the first quarter of 2017 compared with the same period last year, from 21.2% to 21.0%. The decrease was mainly driven by our cost reduction initiatives.
Operating EBITDA decreased by 2% to US$559 million or increased 2% on a like-to-like basis for the ongoing operations and for foreign exchange fluctuations during the first quarter
of 2017 compared with the same period last year. The increase on a like to like basis was mainly due to higher contributions in Mexico and USA.
Operating EBITDA
margin decreased by 0.5pp from 18.3% in the first quarter of 2016 to 17.8% this quarter.
Other expenses, net, for the quarter was an income of US$140 million,
which mainly includes the net gain on sale of assets in the U.S.
Gain (loss) on financial instruments for the quarter was a gain of US$
98 million, resulting mainly from the gain on sale of a stake in Grupo
Cementos de Chihuahua.
Foreign exchange result for the quarter was a loss of US$66 million, mainly due to the fluctuation of the Mexican peso versus the U.S. dollar.
Discontinued operations for the quarter reached US$152 million, which mainly include a gain on sale of assets in the U.S.
Controlling interest net income (loss) was a gain of US$336 million in the first quarter of 2017 versus a gain of US$35 million in the same quarter of 2016. The income primarily
reflects higher operating earnings, lower financial expenses, better results from financial instruments and a positive effect in discontinued operations, partially offset by a foreign exchange loss, higher income tax and higher non- controlling
interest net income.
Total debt plus perpetual notes decreased by US$470 million during the quarter.
2017 First Quarter Results
Operating results
Mexico
January - March First Quarter
l-t-l % l-t-l %
2017 2016 % Var. 2017 2016 % Var.
Var.* Var.*
Net sales 725 633 15% 28% 725 633 15% 28%
Operating EBITDA 267 227 18% 31% 267 227 18% 31%
Operating EBITDA margin 36.8% 35.9% 0.9pp
36.8% 35.9% 0.9pp
In millions of US dollars, except percentages.
Domestic
gray cement Ready-mix Aggregates
Year-over-year percentage January - March First Quarter January - March First Quarter January - March First Quarter
variation
Volume 10% 10% 7% 7% 4% 4%
Price (USD) 8% 8% (1%) (1%) 6% 6%
Price (local currency) 20% 20% 10% 10% 17% 17%
In Mexico, our domestic gray cement, ready mix and aggregates volumes increased by 10%, 7%, and 4%, respectively, during the quarter versus the same period last year. Domestic gray
cement prices in local currency increased on a year over year and sequential basis by 20% and 9%, respectively, during the quarter.
Cement volume growth during the
quarter benefited from improved volumes in all of our main demand sectors, a low base of comparison versus the same period last year, as well as 2 additional working days. In the industrial-and-commercial sector, construction of shopping malls,
hotels, warehouses, as well as some manufacturing projects, was supported by consumption growth. The self-construction sector was sustained by sound economic indicators including remittances, job creation and consumption credit. In the formal
residential sector, double-digit growth in private bank mortgage lending supported higher value, more cement-intensive home investment, and compensated a decline in affordable housing. The infrastructure sector was supported by our participation in
specific projects like the final phase of the Apaseo - Palmillas highway in the state of Querétaro.
United States
January – March First Quarter
l-t-l % l-t-l %
2017 2016 % Var. 2017 2016 % Var.
Var.* Var.*
Net sales 834 849 (2%) 2% 834 849 (2%) 2%
Operating EBITDA 118 96 22% 32% 118 96 22% 32%
Operating EBITDA margin 14.1% 11.4% 2.7pp 14.1% 11.4% 2.7pp
In millions of US
dollars, except percentages.
Domestic gray cement Ready-mix Aggregates
Year-over-year percentage January - March First Quarter January - March First Quarter January - March First Quarter
variation
Volume (5%) (5%) (5%) (5%) (7%) (7%)
Price (USD) 3% 3% 3% 3% 5% 5%
Price (local currency) 3% 3% 3% 3% 5% 5%
In the United States, our domestic gray cement and ready-mix volumes decreased by 5%, while our aggregates volumes decreased by 7%, during the first quarter of 2017 and compared to
the same period last year. On a like-to-like basis, excluding volumes related to the cement plants sold in Odessa and Fairborn, domestic gray cement volumes remained flat during the quarter compared with the same period last year. Ready-mix and
aggregates volumes on a like-to-like basis, excluding the West Texas operations, declined by 4% and 5%, respectively, during the quarter and on a year-over-year basis. On a like-to-like and sequential basis, domestic gray cement prices increased by
2% during the quarter reflecting the implementation of our January price increases in Florida, Colorado and the North Atlantic.
Our year-over-year volume
performance reflects a difficult base of comparison in the first quarter 2016, which had the highest quarterly volume growth since 2013. Additionally, first quarter 2017 volumes were impacted by significant precipitation in our western states. In
the residential sector housing starts increased 8% during the quarter, supported by wage growth, job creation, low inventories, positive consumer sentiment, and improved lending conditions. Construction spending in the industrial-and-commercial
sector increased 8% year-to-date February, with growth in office and lodging. On the infrastructure sector, streets-and-highways spending started slow this year with a 9% decline year-to-date February. The weakness in this sector is attributable to
the benign winter weather of the prior year where infrastructure projects were brought forward into first quarter as well as reduced state and local highway expenditures.
South, Central America and the Caribbean
January - March First Quarter
l-t-l % l-t-l %
2017 2016 % Var. 2017 2016 % Var.
Var.* Var.*
Net sales 480 422 14% (1%) 480 422 14% (1%)
Operating EBITDA 133 136 (2%) (15%) 133 136 (2%)
(15%)
Operating EBITDA margin 27.8% 32.3% (4.5pp) 27.8% 32.3% (4.5pp)
In
millions of US dollars, except percentages.
Domestic gray cement Ready-mix Aggregates
Year-over-year percentage January - March First Quarter January - March First Quarter January - March First Quarter
variation
Volume 13% 13% 1% 1% 7% 7%
Price (USD) (1%) (1%) 5% 5% 6% 6%
Price (local currency) (3%) (3%) 1% 1% 1% 1%
Our domestic gray cement volumes in the region increased by 13% during the first quarter of 2017 versus the comparable period last year. On a like-to-like basis, including the
operations of Trinidad Cement Limited, which CEMEX began consolidating starting in February 2017, domestic gray cement and aggregates volumes increased 2% and 4%, respectively, while ready-mix volumes remained flat, during the quarter and on a
year-over-year basis.
In Colombia, during the first quarter and on a year-over-year basis, our domestic gray cement, ready-mix, and aggregates volumes decreased by
2%, 4%, and 6%, respectively. Cement consumption during the quarter was affected by the macroeconomic challenges that the country is facing. Despite the soft demand environment, we estimate that our cement market position during the quarter remained
practically unchanged compared to that of the first and fourth quarter of last year. Our quarterly cement prices, both on a year-over-year and sequential basis, were affected by difficult competitive dynamics and a soft demand market environment.
Europe
January - March First Quarter
l-t-l % l-t-l %
2017 2016 % Var. 2017 2016 % Var.
Var.* Var.*
Net sales 711 729 (2%) 5% 711 729 (2%) 5%
Operating EBITDA 33 52 (37%) (30%) 33 52 (37%) (30%)
Operating EBITDA margin 4.6% 7.1% (2.5pp)
4.6% 7.1% (2.5pp)
In millions of US dollars, except percentages.
Domestic
gray cement Ready-mix Aggregates
Year-over-year percentage January - March First Quarter January - March First Quarter January - March First Quarter
variation
Volume 6% 6% 13% 13% 11% 11%
Price (USD) (7%) (7%) (7%) (7%) (10%) (10%)
Price (local currency) (1%) (1%) (1%) (1%) (2%)
(2%)
In the Europe region, our domestic gray cement, ready-mix and aggregates volumes increased by 6%, 13%, and 11%, respectively, during the first quarter of 2017
on a year-over-year basis.
In the United Kingdom, our domestic gray cement volumes decreased 10%, while ready-mix volumes increased 5% and aggregates volumes
remained flat, during the first quarter of 2017 on a year-over-year basis. Our cement volume decline reflects a high base of comparison due to non-recurring industry sales in the same period last year. Cement volume during the quarter was driven by
the residential sector and the commercial segment of the industrial and commercial sector.
In Spain, our domestic gray cement, ready-mix and aggregates
volumes increased 19%, 1%, and 38%, respectively, during the quarter and on a year-over-year basis. Our cement volume growth during the quarter reflects continued activity in the residential sector, a reactivation of the industrial-and-commercial
sector, as well as 3 additional working days. The residential sector benefited from favorable credit conditions and income perspectives, job creation, and pent-up housing demand. The industrial-and-commercial sector reactivation during the quarter
was supported by the recent growth in construction permits.
In Germany, our domestic gray cement, ready-mix and aggregates volumes increased 12%, 14%, and 9%,
respectively, during the first quarter of 2017 compared with the same period of last year. Volume growth in our three core products reflects increased infrastructure activity as well as 3 additional working days. The residential sector continued to
benefit from low unemployment and mortgage rates, rising purchasing power and growing immigration.
In Poland, domestic gray cement, ready-mix and aggregates
volumes for our operations increased 8%, 29%, and 80%, respectively, during the first quarter versus the comparable period in 2016. Our cement prices increased on year-over-year basis by 2% during the quarter. Higher volumes during the quarter
reflect the acceleration of delayed infrastructure projects, favorable weather conditions and additional working days. In addition, ready-mix volume growth reflects 2 new plants which started operations in the second quarter of last year, while
aggregates volumes include increased trading activity.
In our operations in France, ready-mix and aggregates volumes increased by 14% and 20%, respectively, during
the first quarter and on a year-over-year basis. Volume growth during the quarter reflects the continuation of the positive trends observed last year, as well as 2 additional working days. The residential and industrial-and-commercial sectors were
the main drivers of demand during the quarter. The residential sector was supported by low interest rates and government’s initiatives including a buy-to-let program and zero-rates loans for first time buyers.
Asia, Middle East and Africa
January - March First Quarter
l-t-l % l-t-l %
Var.* Var.*
2017 2016 % Var. 2017 2016 % Var.
Net sales 326 408 (20%) (8%) 326 408 (20%) (8%)
Operating EBITDA 64 104 (38%) (26%) 64 104 (38%) (26%)
Operating EBITDA margin 19.6% 25.4%
(5.8pp) 19.6% 25.4% (5.8pp)
In millions of US dollars, except percentages.
Domestic gray cement Ready-mix Aggregates
Year-over-year percentage January -
March First Quarter January - March First Quarter January - March First Quarter
variation
Volume (19%) (19%) 5% 5% 12% 12%
Price (USD) (23%) (23%) (1%) (1%) 7% 7%
Price (local currency) 2% 2% 0% 0% 3% 3%
Our domestic gray cement volumes in the Asia, Middle
East and Africa region decreased 19% during the first quarter on a year-over-year basis.
In the Philippines, our domestic gray cement volumes decreased 9% during
the first quarter of 2017, versus the comparable period of last year. Our volumes during the first quarter were affected by adverse weather conditions with 24 additional downtime days compared with the same quarter last year. In addition, first
quarter of 2016 is a high base of comparison with high construction activity prior to the elections.
In Egypt, our domestic gray cement volumes decreased 32%
during the first quarter of 2017, versus the comparable period of previous year. This reflects a high base of comparison with the same period last year, reduced consumer purchasing power due to high inflation, government efforts to curb inflation,
as well as difficult competitive dynamics. During the quarter, our cement prices increased 16% on a year-over-year basis. Government projects related to the Suez Canal tunnels and port platforms in the city of Port Said, as well housing complexes
continued during the quarter, albeit at a slower pace.
Operating EBITDA, free cash flow and debt-related information
Operating EBITDA and free cash flow
2017
January - March
2016
% Var
2017
First Quarter
2016
% Var
Operating earnings before other expenses, net 351 353 (0%) 351 353 (0%)
+ Depreciation and operating amortization 207 217 207 217
Operating EBITDA 559 570 (2%) 559
570 (2%)
- Net financial expense 224 269 224 269
- Maintenance capital
expenditures 58 56 58 56
- Change in working capital 371 206 371 206
- Taxes
paid 49 56 49 56
- Other cash items (net) 12 (11) 12 (11)
- Free cash flow
discontinued operations (3) (14) (3) (14)
Free cash flow after maintenance capital expenditures (153) 8 N/A (153) 8 N/A
- Strategic capital expenditures 28 44 28 44
Free cash flow (181) (35) (412%) (181) (35)
(412%)
During the quarter, proceeds from asset divestments were applied to reduce debt, to meet first quarter 2017 free cash flow deficit and to other corporate
purposes.
Our debt during the quarter reflects a negative foreign exchange conversion effect of US$46 million.
Information on debt and perpetual notes
Fourth First
First Quarter Quarter Quarter
2017 2016 % Var 2016 2017 2016
Total debt (1) 12,164 15,555 (22%) 12,635 Currency denomination
Short-term 7% 0% 1% US dollar
74% 83%
Long-term 93% 100% 99% Euro 22% 16%
Perpetual notes 439 444 (1%) 438
Mexican peso 1% 0%
Cash and cash equivalents 435 1,273 (66%) 558 Other 3% 0%
Net debt plus perpetual notes 12,168 14,726 (17%) 12,516
Interest rate
Consolidated funded debt (2)/EBITDA (3) Fixed 74% 75%
4.07 5.17 4.22 Variable
26% 25%
Interest coverage (3) (4) 3.30 2.68 3.18
In millions of US dollars,
except percentages and ratios.
(1) Includes convertible notes and capital leases, in accordance with International Financial Reporting Standards (IFRS).
(2) Consolidated funded debt as of March 31, 2017 was US$11,258 million, in accordance with our contractual obligations under the Credit Agreement.
(3) EBITDA calculated in accordance with IFRS.
(4) Interest expense calculated in accordance
with our contractual obligations under the Credit Agreement.
Equity-related and derivative instruments information
Equity-related information
One CEMEX ADS represents ten CEMEX CPOs. The following amounts are
expressed in CPO terms.
Beginning-of-quarter CPO-equivalent units outstanding 14,041,040,345
End-of-quarter CPO-equivalent units outstanding 14,041,040,345
Outstanding units equal total
CEMEX CPO-equivalent units less CPOs held in subsidiaries, which as of March 31, 2017 were 19,751,229.
CEMEX has outstanding mandatorily convertible securities
which, upon conversion, will increase the number of CPOs outstanding by approximately
227 million, subject to antidilution adjustments.
Employee long-term compensation plans
As of March 31, 2017, our executives held 26,715,104
restricted CPOs, representing 0.2% of our total CPOs outstanding as of
such date.
Derivative instruments
First Quarter Fourth Quarter
2017 2016 2016
In millions of US dollars. Notional amount Fair value Notional amount Fair
value Notional amount Fair value
Exchange rate derivatives (1) 639 (22) 224 (8) 80 –
Equity related derivatives (2) (5) 461 36 690 38 576 26
Interest rate swaps (3) 147 22 157 33
147 23
Fuel derivatives (4) 78 7 29 1 77 15
1,325 43 1,100 64 880 64
(1) Exchange rate derivatives are used to manage currency exposures that arise from the regular operations and from expected sale of assets. (2) Equity derivatives
related with options on the Parent Company own shares.
(3) Interest-rate swap related to our long-term energy contracts.
(4) Forward contracts negotiated to hedge the price of the fuel consumed in certain operations.
(5) As required by IFRS, the equity related derivatives fair market value as of March 31, 2017 and 2016 includes a liability of US$41 million and US$26 million,
respectively, relating to an embedded derivative in CEMEX’s mandatorily convertible securities.
Note: Under IFRS, companies are required to recognize all
derivative financial instruments on the balance sheet as assets or liabilities, at their estimated fair market value, with changes in such fair market values recorded in the income statement, except when transactions are entered into for
cash-flow-hedging purposes, in which case changes in the fair market value of the related derivative instruments are recognized temporarily in equity and then reclassified into earnings as the inverse effects of the underlying hedged items flow
through the income statement, and/or transactions related to net investment hedges, in which case changes in fair value are recorded directly in equity as part of the currency translation effect, and are reclassified to the income statement only
upon disposal of the net investment. As of March 31, 2017, in connection with the fair market value recognition of its derivatives portfolio, CEMEX recognized increases in its assets and liabilities resulting in a net asset of US$43 million,
including a liability of US$41 million corresponding to an embedded derivative related to our mandatorily convertible securities, which according to our debt agreements, is presented net of the assets associated with the derivative instruments.
Operating results
Consolidated Income Statement & Balance Sheet
CEMEX, S.A.B. de C.V. and Subsidiaries
(Thousands of U.S. Dollars, except per ADS amounts)
January - March First
Quarter
like-to-like like-to-like
INCOME STATEMENT 2017 2016 % Var. % Var.*
2017 2016 % Var. % Var.*
Net sales 3,136,603 3,113,943 1% 6% 3,136,603 3,113,943 1% 6%
Cost of sales (2,127,150) (2,101,570) (1%) (2,127,150) (2,101,570) (1%)
Gross profit 1,009,453
1,012,373 (0%) 6% 1,009,453 1,012,373 (0%) 6%
Operating expenses (658,280) (659,091) 0% (658,280) (659,091) 0%
Operating earnings before other expenses, net 351,173 353,282 (1%) 3% 351,173 353,282 (1%) 3%
Other expenses, net 140,026 (14,476) N/A 140,026 (14,476) N/A
Operating
earnings 491,199 338,806 45% 491,199 338,806 45%
Financial expense (268,507) (270,065) 1% (268,507) (270,065) 1%
Other financial income (expense), net 23,833 17,783 34% 23,833 17,783 34%
Financial income
4,718 7,710 (39%) 4,718 7,710 (39%)
Results from financial instruments, net 97,776 22,255 339% 97,776 22,255 339%
Foreign exchange results (65,946) 2,620 N/A (65,946) 2,620 N/A
Effects of net present value on
assets and liabilities and
others, net (12,715) (14,802) 14% (12,715) (14,802) 14%
Equity in gain (loss) of associates 2,078 2,404 (14%) 2,078 2,404 (14%)
Income (loss) before
income tax 248,603 88,927 180% 248,603 88,927 180%
Income tax (45,258) (41,271) (10%) (45,258) (41,271) (10%)
Profit (loss) of continuing operations 203,346 47,656 327% 203,346 47,656 327%
Discontinued
operations 151,659 1,199 12553% 151,659 1,199 12553%
Consolidated net income (loss) 355,005 48,855 627% 355,005 48,855 627%
Non-controlling interest net income (loss) 19,101 13,398 43% 19,101 13,398 43%
Controlling
interest net income (loss) 335,904 35,457 847% 335,904 35,457 847%
Operating EBITDA 558,642 570,242 (2%) 2% 558,642 570,242 (2%) 2%
Earnings (loss) of continued operations per ADS 0.14 0.02 464% 0.14 0.02 464%
Earnings (loss)
of discontinued operations per ADS 0.10 - 12485% 0.10 - 12485%
As of March 31
BALANCE SHEET 2017 2016 % Var.
Total assets 29,133,576 32,193,030 (10%)
Cash and cash equivalents 434,506 1,273,055 (66%)
Trade receivables less
allowance for doubtful accounts 1,645,603 1,724,970 (5%)
Other accounts receivable 304,065 281,517 8%
Inventories, net 995,325 1,052,331 (5%)
Assets held for sale 609,254 405,137 50%
Other current assets 204,834 243,279 (16%)
Current assets 4,193,587 4,980,288 (16%)
Property, machinery and equipment, net 11,500,855 12,347,267 (7%)
Other
assets 13,439,133 14,865,475 (10%)
Total liabilities 19,050,714 22,839,596 (17%)
Liabilities held for sale 60,457 70,594 (14%)
Other current liabilities 4,650,097 4,010,713
16%
Current liabilities 4,710,554 4,081,307 15%
Long-term liabilities
10,691,136 14,310,191 (25%)
Other liabilities 3,649,023 4,448,098 (18%)
Total
Stockholder’s equity 10,082,862 9,353,434 8%
Non-controlling interest and perpetual instruments 1,448,083 1,177,814 23%
Total Controlling interest 8,634,779 8,175,620 6%
Operating results
Consolidated Income Statement & Balance Sheet
CEMEX, S.A.B. de C.V. and Subsidiaries
(Thousands of Mexican Pesos in nominal terms, except per ADS amounts)
January
- March First Quarter
INCOME STATEMENT 2017 2016 % Var. 2017 2016 % Var.
Net
sales 62,387,034 55,583,888 12% 62,387,034 55,583,888 12%
Cost of sales (42,309,005) (37,513,032) (13%) (42,309,005) (37,513,032) (13%)
Gross profit 20,078,029 18,070,856 11% 20,078,029 18,070,856 11%
Operating expenses
(13,093,197) (11,764,769) (11%) (13,093,197) (11,764,769) (11%)
Operating earnings before other expenses, net 6,984,833 6,306,087 11% 6,984,833 6,306,087 11%
Other expenses, net 2,785,112 (258,393) N/A 2,785,112 (258,393) N/A
Operating
earnings 9,769,945 6,047,693 62% 9,769,945 6,047,693 62%
Financial expense (5,340,597) (4,820,665) (11%) (5,340,597) (4,820,665) (11%)
Other financial income (expense), net 474,043 317,419 49% 474,043 317,419 49%
Financial income
93,843 137,616 (32%) 93,843 137,616 (32%)
Results from financial instruments, net 1,944,764 397,245 390% 1,944,764 397,245 390%
Foreign exchange results (1,311,666) 46,773 N/A (1,311,666) 46,773 N/A
Effects of net present
value on assets and liabilities and
others, net (252,899) (264,215) 4% (252,899) (264,215) 4%
Equity in gain (loss) of associates 41,330 42,907 (4%) 41,330 42,907 (4%)
Income (loss) before
income tax 4,944,721 1,587,355 212% 4,944,721 1,587,355 212%
Income tax (900,175) (736,689) (22%) (900,175) (736,689) (22%)
Profit (loss) of continuing operations 4,044,546 850,666 375% 4,044,546 850,666 375%
Discontinued operations 3,016,499 21,395 13999% 3,016,499 21,395 13999%
Consolidated net income (loss) 7,061,045 872,062 710% 7,061,045 872,062 710%
Non-controlling net income (loss) 379,909 239,160 59% 379,909 239,160 59%
Controlling net income (loss) 6,681,135 632,902 956% 6,681,135 632,902 956%
Operating EBITDA 11,111,382 10,178,819 9% 11,111,382 10,178,819 9%
Earnings
(loss) of continued operations per ADS 2.73 0.43 528% 2.73 0.43 528%
Earnings (loss) of discontinued operations per ADS 2.02 0.01 13924% 2.02 0.01 13924%
As of March 31
BALANCE SHEET 2017 2016 % Var.
Total assets 545,671,873 556,295,551 (2%)
Cash and cash equivalents 8,138,298 21,998,388 (63%)
Trade receivables less allowance for doubtful accounts 30,822,153 29,807,482 3%
Other accounts receivable 5,695,144 4,864,607 17%
Inventories, net 18,642,428
18,184,273 3%
Assets held for sale 11,411,324 7,000,766 63%
Other current
assets 3,836,545 4,203,858 (9%)
Current assets 78,545,893 86,059,374 (9%)
Property, machinery and equipment, net 215,411,012 213,360,777 1%
Other
assets 251,714,968 256,875,400 (2%)
Total liabilities 356,819,868 394,668,214 (10%)
Liabilities held for sale 1,132,359 1,219,865 (7%)
Other current liabilities 87,096,320
69,305,125 26%
Current liabilities 88,228,679 70,524,990 25%
Long-term
liabilities 200,244,984 247,280,094 (19%)
Other liabilities 68,346,204 76,863,130 (11%)
Total stockholders’ equity 188,852,005 161,627,337 17%
Non-controlling interest and
perpetual instruments 27,122,591 20,352,622 33%
Total controlling interest 161,729,414 141,274,715 14%
Operating results
Operating Summary per Country
In thousands of U.S. dollars
January - March First Quarter
like-to-like like-to-like
NET SALES 2017 2016 % Var. % Var. * 2017 2016 % Var. % Var. *
Mexico 725,365 633,072 15% 28%
725,365 633,072 15% 28%
U.S.A. 833,888 848,520 (2%) 2% 833,888 848,520 (2%) 2%
South, Central America and the Caribbean 479,710 421,832 14% (1%) 479,710 421,832 14% (1%)
Europe 710,910 728,507 (2%) 5% 710,910 728,507 (2%) 5%
Asia, Middle East and Africa 326,014
407,659 (20%) (8%) 326,014 407,659 (20%) (8%)
Others and intercompany eliminations 60,716 74,352 (18%) 5% 60,716 74,352 (18%) 5%
TOTAL 3,136,603 3,113,943 1% 6% 3,136,603 3,113,943 1% 6%
GROSS PROFIT
Mexico 376,731 322,776 17% 30% 376,731 322,776 17% 30%
U.S.A. 196,415 188,397 4% 8% 196,415
188,397 4% 8%
South, Central America and the Caribbean 187,713 178,958 5% (7%) 187,713 178,958 5% (7%)
Europe 142,294 163,991 (13%) (5%) 142,294 163,991 (13%) (5%)
Asia, Middle East and Africa
105,115 138,340 (24%) (12%) 105,115 138,340 (24%) (12%)
Others and intercompany eliminations 1,186 19,912 (94%) 161% 1,186 19,912 (94%) 161%
TOTAL 1,009,453 1,012,373 (0%) 6% 1,009,453 1,012,373 (0%) 6%
OPERATING EARNINGS BEFORE OTHER
EXPENSES, NET
Mexico 238,426 194,146 23% 36% 238,426 194,146 23% 36%
U.S.A.
28,950 5,896 391% N/A 28,950 5,896 391% N/A
South, Central America and the Caribbean 111,489 117,920 (5%) (19%) 111,489 117,920 (5%) (19%)
Europe (11,013) 4,299 N/A N/A (11,013) 4,299 N/A N/A
Asia, Middle East and Africa 48,594
84,495 (42%) (33%) 48,594 84,495 (42%) (33%)
Others and intercompany eliminations (65,272) (53,474) (22%) (35%) (65,272) (53,474) (22%) (35%)
TOTAL 351,173 353,282 (1%) 3% 351,173 353,282 (1%) 3%
Operating results
Operating Summary per Country
EBITDA in thousands of U.S. dollars. EBITDA margin as a
percentage of net sales.
January - March First Quarter
like-to-like
like-to-like
OPERATING EBITDA 2017 2016 % Var. % Var. * 2017 2016 % Var. % Var. *
Mexico 267,063 227,081 18% 31% 267,063 227,081 18% 31%
U.S.A. 117,642 96,451 22% 32% 117,642
96,451 22% 32%
South, Central America and the Caribbean 133,286 136,139 (2%) (15%) 133,286 136,139 (2%) (15%)
Europe 32,827 51,722 (37%) (30%) 32,827 51,722 (37%) (30%)
Asia, Middle East and Africa 63,892
103,505 (38%) (26%) 63,892 103,505 (38%) (26%)
Others and intercompany eliminations (56,068) (44,657) (26%) (41%) (56,068) (44,657) (26%) (41%)
TOTAL 558,642 570,242 (2%) 2% 558,642 570,242 (2%) 2%
OPERATING EBITDA MARGIN
Mexico 36.8% 35.9% 36.8% 35.9%
U.S.A. 14.1% 11.4% 14.1% 11.4%
South, Central America and the Caribbean 27.8% 32.3% 27.8% 32.3%
Europe 4.6% 7.1% 4.6% 7.1%
Asia, Middle East and Africa 19.6% 25.4% 19.6% 25.4%
TOTAL 17.8% 18.3% 17.8%
18.3%
Operating results
Volume Summary
Consolidated volume summary
Cement and aggregates: Thousands of metric tons. Ready-mix: Thousands of cubic meters.
January
- March First Quarter
2017 2016 % Var. 2017 2016 % Var.
Consolidated cement
volume 1 15,569 15,622 (0%) 15,569 15,622 (0%)
Consolidated ready-mix volume 12,218 11,725 4% 12,218 11,725 4%
Consolidated aggregates volume 34,573 33,394 4% 34,573 33,394 4%
Per-country volume summary
January - March First Quarter First Quarter 2017 Vs.
DOMESTIC GRAY CEMENT
VOLUME 2017 Vs. 2016 2017 Vs. 2016 Fourth Quarter 2016
Mexico 10% 10% (5%)
U.S.A. (5%) (5%) (10%)
South, Central America and the Caribbean 13% 13% 13%
Europe 6% 6% (8%)
Asia, Middle East and Africa (19%) (19%) (1%)
READY-MIX VOLUME
Mexico 7% 7% (8%)
U.S.A. (5%) (5%) (4%)
South, Central America and the Caribbean 1% 1% 6%
Europe 13% 13% (10%)
Asia, Middle East and Africa 5% 5% 9%
AGGREGATES VOLUME
Mexico 4% 4% (13%)
U.S.A. (7%) (7%) (8%)
South, Central America and the Caribbean 7% 7% 9%
Europe 11% 11% (9%)
Asia, Middle East and Africa 12% 12% (3%)
1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.
Operating results
Price Summary
Variation in U.S. Dollars
January - March First Quarter First Quarter 2017 Vs.
DOMESTIC GRAY CEMENT PRICE 2017 Vs. 2016
2017 Vs. 2016 Fourth Quarter 2016
Mexico 8% 8% 10%
U.S.A. 3% 3% 1%
South, Central America and the Caribbean (*) (1%) (1%) 4%
Europe (*) (7%)
(7%) 2%
Asia, Middle East and Africa (*) (23%) (23%) (10%)
READY-MIX PRICE
Mexico (1%) (1%) 6%
U.S.A. 3% 3% 1%
South, Central America and the Caribbean (*) 5% 5% 4%
Europe (*) (7%) (7%) 4%
Asia, Middle East and Africa (*) (1%) (1%) 3%
AGGREGATES PRICE
Mexico 6% 6% 11%
U.S.A. 5% 5% 5%
South, Central America and the Caribbean (*) 6% 6% 3%
Europe (*) (10%) (10%) 7%
Asia, Middle East and Africa (*) 7% 7% 4%
Variation in Local Currency
January - March First Quarter First Quarter 2017 Vs.
DOMESTIC GRAY CEMENT PRICE 2017 Vs. 2016
2017 Vs. 2016 Fourth Quarter 2016
Mexico 20% 20% 9%
U.S.A. 3% 3% 1%
South, Central America and the Caribbean (*) (3%) (3%) 3%
Europe (*) (1%)
(1%) 1%
Asia, Middle East and Africa (*) 2% 2% (4%)
READY-MIX PRICE
Mexico 10% 10% 5%
U.S.A. 3% 3% 1%
South, Central America and the Caribbean (*) 1% 1% 2%
Europe (*) (1%) (1%) 4%
Asia, Middle East and Africa (*) 0% 0% 1%
AGGREGATES PRICE
Mexico 17% 17% 9%
U.S.A. 5% 5% 5%
South, Central America and the Caribbean (*) 1% 1% 1%
Europe (*) (2%) (2%) 6%
Asia, Middle East and Africa (*) 3% 3% 0%
(*) Volume weighted-average price.
Other information
Mexican Tax Reform 2016
In October 2015, a new tax reform approved by Congress (the “new
tax reform”) which became effective in January 1, 2016 granted entities the option to settle a portion of the liability for the exit of the tax consolidation regime using available tax loss carryforwards of the previously consolidated entities,
considering a discount factor, and a tax credit to offset certain items of the aforementioned liability. Consequently, during 2015, as a result of payments made, the liability was further reduced to approximately US$784 million, which after the
application of tax credits and assets for tax loss carryforwards (as provided by the new tax reform) which had a book value for CEMEX before discount of approximately US$537 million, as of December 31,
2015, the Parent Company’s liability was reduced to approximately US$192 million. After payments made in 2016 the liability as of December 31, 2016 is US$151 million. No
payments were made during the first quarter 2017. All USD amounts are based on an exchange rate of Ps20.72 to US$1.00 as of December 31, 2016.
Capped Calls
In relation to the capped calls purchased by CEMEX with proceeds of its subordinated convertibles notes issued in March 2011 and due in March
2018, during March 2017 we amended capped calls transactions over
12.9 million CEMEX ADSs
maturing in March 2018 with the purpose of
unwinding the position. As a result, CEMEX received approximately
US$13 million in cash. After this amendment, CEMEX retains an amount
of capped calls over
approximately 36.1 million CEMEX ADSs maturing in
March 2018, with weighted average strike prices of US$8.0 and US$12.0
and an amount of capped calls over approximately 19.3 million CEMEX
ADSs maturing in March
2018 with strike prices of US$8.92 and
US$14.41.
Successful offer and
take-over bid of Trinidad Cement Limited (TCL)
On January 24, 2017, Sierra Trading (“Sierra”), which is an indirect subsidiary of CEMEX, communicated
that having received the Foreign Investment License from the Trinidad and Tobago Ministry of Finance, all terms and conditions have been complied with or waived and the Offer has accordingly been declared unconditional. In addition, the Offer closed
in Jamaica on February 7, 2017. Sierra acquired all TCL shares deposited pursuant to the Offer up to the maximum number of the Offered Shares. TCL shares deposited in response to the Offer together with Sierra’s existing shareholding in TCL
represented approximately
69.83% of the outstanding TCL shares. The total consideration paid by
Sierra for the TCL shares was approximately US$86 million. After conclusion of the Offer, CEMEX consolidates TCL for financial reporting purposes beginning February 1, 2017. During
the quarter, TCL delisted from Jamaica and Barbados stock exchanges.
Discontinued Operations, Other Disposal Groups and Assets held for
Sale
Discontinued Operations
On November 28, 2016, CEMEX announced that one of its subsidiaries in the United States signed a definitive agreement to divest its Concrete Reinforced Pipe Manufacturing Business
(“Concrete Pipe Business”) in the United States to Quikrete Holdings, Inc. (“Quikrete”) for approximately US$500 million plus an additional US$40 million contingent consideration based on future performance. On January 31,
2017, after the satisfaction of certain conditions precedent including approval from regulators, CEMEX announced the closing of the sale to Quikrete according to
the agreed upon price conditions. Considering the disposal of the entire Concrete Pipe Business, their operations for the one-month period ended January 31, 2017 and the three-month period ended March 31 2016, included in CEMEX’s statements of
operations were reclassified net of tax to the single line item “Discontinued Operations.” CEMEX determined a net gain on disposal of these assets for approximately US$148 million recognized during January 2017 as part of discontinued
operations, which included a proportional allocation of goodwill for approximately US$260 million.
On May 26, 2016, CEMEX concluded the sale to SIAM City Cement
Public Company limited (“SIAM Cement”) of its operations in Bangladesh and Thailand for approximately US$53 million. CEMEX’s operations in Bangladesh and Thailand for the three-month period ended March 31,
2016 included in CEMEX’s statement of operations for the respective period were reclassified net of tax to the single line item “Discontinued operations.”
In addition, on August 12, 2015, CEMEX agreed with Duna-Dráva Cement, the sale of its Croatian operations, including assets in Bosnia and Herzegovina,
Montenegro and Serbia (jointly the “Croatian Operations”), which mainly consist of three cement plants with aggregate annual production capacity of approximately 2.4 million tons of cement, two aggregates quarries and seven ready-mix
plants, for approximately
€230.9 million, amount subject to adjustments for changes in cash and working capital at the change of control date. As of March 31,
2017, the closing of this transaction was still pending of the approval from the relevant authorities. The Croatian Operations included in CEMEX’s statements of operations for the three-month periods ended March 31,
2017 and 2016 were reclassified net of tax to the single line item “Discontinued Operations.” On April 5, 2017, CEMEX announced that the European Commission issued a
decision that ultimately does not allow Duna-Dráva Cement to purchase the aforementioned operations. Consequently, the transaction will not close and CEMEX will maintain its Croatian Operations and continue to operate them. Beginning in the
second quarter of 2017, CEMEX will reclassify the income statements of its Croatian Operations from the single line item “Discontinued Operations” to each specific line item of the statements of operations.
The following table presents condensed combined information of the statement of operations of CEMEX discontinued operations mainly in: a) the Croatian Operations for the
three-month periods ended March 31,
2017 and 2016; b) the Concrete Pipe Business for the one-month period ended January 31, 2017 and the three-month period ended
March 31
2016; and c) Bangladesh and Thailand for the three-month period ended
March 31 2016:
INCOME STATEMENT Jan-Mar First Quarter
(Millions of Mexican pesos) 2017 2016 2017 2016 Sales 1,076 2,245 1,076 2,245
Cost of sales
and operating expenses (1,121) (2,131) (1,121) (2,131)
Other expenses, net (7) (10) (7) (10)
Interest expense, net and others (4) (58) (4) (58)
Income (loss) before income tax (56) 46
(56) 46
income tax 0 (22) 0 (22)
Net income (loss) (56) 24 (56) 24
Non controlling interest net income (0) (1) (0) (1)
Controlling interest net
income (56) 23 (56) 23
Net gain on sale 3,072 (2) 3,072 (2)
Discontinued
operations 3,016 21 3,016 21
Other information
Other disposal groups
Other disposal groups do not represent the disposal of an entire sector
or line of business and, due to the remaining ongoing activities and the relative size, are not considered discontinued operations and were consolidated by CEMEX line-by-line in the statement of operations for all reported periods. The main disposal
groups are as follows:
On November 18, 2016, a subsidiary of CEMEX in the United States closed the sale to an affiliate of Grupo Cementos de Chihuahua, S.A.B. de
C.V. (“GCC”) of certain assets consisting in CEMEX’s cement plant in Odessa, Texas, two cement terminals and the building materials business in El Paso, Texas and Las Cruces, New Mexico, for an amount of approximately US$306 million.
Odessa plant has an annual production capacity of approximately 537 thousand tons. CEMEX’s statement of operations for the three-month period ended March 31, 2016 includes the operations of these assets consolidated line-by-line.
On September 12, 2016, CEMEX announced that one of its subsidiaries in the United States signed a definitive agreement for the sale of its Fairborn, Ohio cement plant and cement
terminal in Columbus, Ohio to Eagle Materials Inc. (“Eagle Materials”) for approximately US$400 million. Fairborn plant has an annual production capacity of approximately 730 thousand tons. On February 10, 2017, CEMEX announced that such
subsidiary in the United States closed the divestment of these assets. CEMEX’s statements of operations include the operations of the Fairborn cement plant and the Columbus cement terminal consolidated line-by- line for the period in 2017 until
their disposal in February 10 and for the three-month period ended March 31, 2016. CEMEX determined a net gain on disposal of these assets for approximately US$188 million recognized during February 2017 as part of Other expenses, net, which
included a proportional allocation of goodwill for approximately US$211 million.
The following table presents selected combined statement of operations information
of the net assets sold to GCC for the three-month period ended March 31, 2016 and those sold to Eagle Materials for the period in
2017 until their disposal in
February 10 and for the three-month period ended March 31, 2016:
SELECTED INFORMATION Jan-Mar First Quarter
(Millions of Mexican pesos) 2017 2016 2017 2016
Sales 83 674 83 674
Cost of sales and operating expenses
Operating earnings before other (69) (660) (69) (660)
expenses, net 14 15 14 15
Assets held for sale
On April 17, 2017, CEMEX announced that one of its subsidiaries in the U.S. signed a definitive agreement for the sale of its Pacific Northwest Materials Business consisting of
aggregate, asphalt and ready mix concrete operations in Oregon and Washington to Cadman Materials, Inc., a subsidiary of HeidelbergCement Group, for approximately US$150 million. The closing of this transaction is subject to the satisfaction of
certain conditions, including approval from regulators. CEMEX currently expects to finalize this divestiture during the second quarter of 2017 or soon thereafter.
As of March 31, 2017, the condensed combined balance sheet of CEMEX’s Croatian Operations and of the Pacific Northwest Materials Business expected to be sold
to Cadman Materials was as follows:
BALANCE SHEET 1 As of March 31
(Millions
of Mexican pesos) 2017
Current assets 819
Non-current assets 5,992
Assets held for sale 6,811
Current liabilities 534
Non-current liabilities 388
Liabilities directly related to assets held for sale 922
Net assets held for sale 5,890
1 As of March 31, 2017, excludes other assets
held for sale and other directly related liabilities for approximately $4,600 and $210, respectively, included in CEMEX’s consolidated balance sheet
Definitions of terms and disclosures
Methodology for translation, consolidation, and presentation of results
Under IFRS, beginning
January 1, 2008, CEMEX translates the financial statements of foreign subsidiaries using exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement. CEMEX reports its
consolidated results in Mexican pesos.
For the reader’s convenience, beginning June 30, 2008, US dollar amounts for the consolidated entity are calculated by
converting the nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter. The exchange rates used to convert results for the first quarter of 2017 and the first quarter of 2016 are 19.89 and
17.85 Mexican pesos per US dollar, respectively.
Per-country/region figures are presented in US dollars for the reader’s convenience. Figures presented in US
dollars for Mexico, as of March 31, 2017, and March 31, 2016, can be converted into their original local currency amount by multiplying the US-dollar figure by the corresponding average exchange rates for 2017 and 2016, provided below.
Breakdown of regions
The South, Central America and the Caribbean region includes CEMEX’s
operations in Argentina, Bahamas, Brazil, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica, Nicaragua, Panama, Peru, Trinidad y Tobago, Barbados and Puerto Rico, as well as trading operations in the Caribbean
region.
Europe includes operations in Spain, the Czech Republic, France, Germany, Latvia, Poland, and the United Kingdom, as well as trading operations in several
Nordic countries.
The Asia, Middle East and Africa region includes operations in United Arab Emirates, Egypt, Israel, and the Philippines.
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 and coupon payments on our perpetual notes).
Maintenance capital expenditures investments incurred for the purpose of ensuring the company’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 company policies.
Net debt equals total debt (debt plus convertible bonds and financial leases) minus cash and cash equivalents.
Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points Prices all references to pricing
initiatives, price increases or decreases, refer to our prices for our products Strategic capital expenditures investments incurred with the purpose of increasing the company’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.
Earnings per ADS
The number of average ADSs outstanding used for the calculation of earnings
per ADS was 1,490.5 million for the first quarter of 2017; 1,490.5 million for year-to-date 2017; 1,482.6 million for the first quarter of 2016; and 1,482.6 million for year-to-date 2016.
According to the IAS 33 Earnings per share, the weighted-average number of common shares outstanding is determined considering the number of days during the accounting period in
which the shares have been outstanding, including shares derived from corporate events that have modified the stockholder’s equity structure during the period, such as increases in the number of shares by a public offering and the distribution
of shares from stock dividends or recapitalizations of retained earnings and the potential diluted shares (Stock options, Restricted Stock Options and Mandatory Convertible Shares). The shares issued as a result of share dividends, recapitalizations
and potential diluted shares are considered as issued at the beginning of the period.
Exchange rates January - March First Quarter First Quarter
2017 2016 2017 2016 2017 2016
Average Average Average Average End of period End of period
Mexican peso 19.89 17.85 19.89 17.85 18.73 17.28
Euro 0.9391 0.9022 0.9391
0.9022 0.938 0.8785
British pound 0.801 0.7043 0.801 0.7043 0.7981 0.6959
Amounts provided in units of local currency per US dollar.
2017 First Quarter Results Exhibit 3
This presentation contains 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, but are not limited to, 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, but are not limited to, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; expected refinancing of existing indebtedness; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
Higher consolidated ready-mix and aggregates volumes during the quarter, on a like-to-like basis; consolidated cement volumes remained flat Higher like-to-like consolidated prices for our three core products both on a sequential and on a year-over-year basis Favorable prices in most of our operations and higher volumes in Mexico and our Europe and South, Central America and the Caribbean regions resulted in a 6% growth in like-to-like sales during 1Q17 Operating EBITDA increased by 2% during quarter on a like-to-like basis reflecting higher contributions from Mexico and the U.S. During 1Q17, operating EBITDA margin declined by 0.5pp Operating EBITDA increased 2% on a like-to-like basis 559 570 -3 1Q17 599 -64 Var. cost & distr. 117 -3 Vol. 16 1Q16 +2% -2% 1Q17 l-t-l EBITDA variation 586 -37 -37 1Q16 pro-forma Acq./div.1 Acq./div.2 Millions of U.S. dollars 1 Includes US$23 million from Trinidad Cement Limited (“TCL”), which CEMEX began consolidating starting February 2017, and US$7 million from the Fairborn cement plant divestment, which closed in February 2017 2 Includes US$3.4 million of TCL’s January 2017 results and US$0.4 million of the Fairborn’s cement plant January 2017 results
Sixth consecutive quarter with positive net income Controlling interest net income Free cash flow Millions of U.S. dollars 1 Includes Other Cash Items plus Free Cash Flow Discontinued Operations 336 1Q17 3Q16 4Q16 2Q16 1Q16 286 35 205 214 WC Maint. CapEx Net fin. exp. EBITDA1Q17 Taxes Other1 FCF after maint. CapEx FCF 1Q17 -224 -58 -371 -49 -8 -28 -181 559 144 4Q15 -153 Stra-tegic CapEx Higher seasonal requirement of WC during 1Q17, most of this investment should reverse by the end of the year
Proceeds from divestments used to meet free cash flow deficit during the quarter and to reduce debt We have reduced total debt plus perpetuals by more than US$2.7 billion since December 2015, representing a reduction of approximately 18% Acquisition of shares in Trinidad Cement Limited (“TCL”) during the quarter CEMEX started consolidating TCL starting in February of 2017 About US$145 million of debt from TCL was recognized as of 1Q17 as part of its consolidation Reduction of US$470 million in total debt during the first quarter of the year Total debt plus perpetuals variation 13,073 46 86 181 -123 -1,110 Other2 TCL debt FCF Divest-ments1 4Q16 12,603 1Q17 -470 Debt FX effect 145 305 Cash balance var. TCL shares acq. Millions of U.S. dollars 1 Includes: US$500 million from the divestment of the U.S. Concrete Pipe Business, US$400 million from the divestment of the Fairborn cement plant in the U.S., and US$210 million from the sale of a stake in Grupo Cementos de Chihuahua 2 Includes: US$108 million from the conversion of operating leases to capital leases, US$101 million from lower funding in our securitization programs, US$48 million from financial fees and bond buyback premiums, among others
First Quarter 2017 Regional Highlights
Operating EBITDA increased by 31% on a like-to-like basis during 1Q17, with a margin expansion of 0.9pp Daily cement volume improvement reflects positive performance from all sectors, as well as a low base of comparison during 1Q16 Prices for our three core products increased during the quarter on a year-over-year and sequential basis, in local-currency terms In the industrial-and-commercial sector private investment projects were supported by consumption growth The self-construction sector was favored by remittances, job creation and consumption credit In the formal residential sector private bank mortgage lending supported more cement-intensive home investment, and compensated a decline in affordable housing Mexico l-t-l l-t-l % var % var Net Sales 725 633 15% 28% 725 633 15% 28% Op. EBITDA 267 227 18% 31% 267 227 18% 31% as % net sales 36.8% 35.9% 0.9pp 36.8% 35.9% 0.9pp 1Q17 1Q16 % var 3M17 3M16 % var Millions of U.S. dollars 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement 10% 10% (5%) Ready mix 7% 7% (8%) Aggregates 4% 4% (13%) Volume 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement 20% 20% 9% Ready mix 10% 10% 5% Aggregates 17% 17% 9% Price (LC)
1Q17 operating EBITDA increased by 32% on a like-to-like basis, with a margin expansion of 2.7pp Cement volumes during the quarter remained flat on like-to-like basis, reflecting a difficult base of comparison and significant precipitation in our western states during 1Q17 Cement prices on a like-to-like basis increased 2% sequentially; improved prices reflect the implementation of our January price increases in Florida, Colorado and the North Atlantic Housing starts increased 8% during the quarter with both single and multi-family activity driving growth In the industrial-and-commercial sector construction spending increased 8% year-to-date February United States l-t-l l-t-l % var % var Net Sales 834 849 (2%) 2% 834 849 (2%) 2% Op. EBITDA 118 96 22% 32% 118 96 22% 32% as % net sales 14.1% 11.4% 2.7pp 14.1% 11.4% 2.7pp 1Q17 1Q16 % var 3M17 3M16 % var Millions of U.S. dollars 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement (5%) (5%) (10%) Ready mix (5%) (5%) (4%) Aggregates (7%) (7%) (8%) Volume 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement 3% 3% 1% Ready mix 3% 3% 1% Aggregates 5% 5% 5% Price (LC)
Pro-forma regional cement and aggregates volumes increased by 2% and 4%, respectively, while pro-forma regional ready-mix volumes remained flat On a sequential basis, higher prices for our three core products, in local-currency terms In Colombia, daily cement volumes declined by 4% during the quarter, affected by macro challenges the country is facing; we estimate our cement market position remained relatively unchanged sequentially and on a year-over-year basis In Panama, cement volumes, adjusted for volumes to the Canal project, increased by 13% during the quarter Cement volumes from our TCL operations declined by 6% during the quarter South, Central America and the Caribbean l-t-l l-t-l % var % var Net Sales 480 422 14% (1%) 480 422 14% (1%) Op. EBITDA 133 136 (2%) (15%) 133 136 (2%) (15%) as % net sales 27.8% 32.3% (4.5pp) 27.8% 32.3% (4.5pp) 1Q17 1Q16 % var 3M17 3M16 % var Millions of U.S. dollars 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement 13% 13% 13% Ready mix 1% 1% 6% Aggregates 7% 7% 9% Volume 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement (3%) (3%) 3% Ready mix 1% 1% 2% Aggregates 1% 1% 1% Volume-weighted, local-currency average prices Price (LC)
Increase in quarterly regional volumes for our three core products In the UK, cement volume decline reflects a high base of comparison with 1Q16, when we had some non-recurring industry sales In Spain, volume growth mainly reflects continued strong activity in the residential sector, as well as reactivation of the industrial and commercial sector In Germany, participation in infrastructure projects like the A100 motorway in Berlin and the Bremerhaven Port Tunnel supported volume growth In Poland, cement volume growth resulted from favorable weather conditions and participation in infrastructure projects such as the Expressway S7 and the Turow power plant; cement prices increased by 2% on a year-over-year basis during the quarter Europe l-t-l l-t-l % var % var Net Sales 711 729 (2%) 5% 711 729 (2%) 5% Op. EBITDA 33 52 (37%) (30%) 33 52 (37%) (30%) as % net sales 4.6% 7.1% (2.5pp) 4.6% 7.1% (2.5pp) 1Q17 1Q16 % var 3M17 3M16 % var Millions of U.S. dollars 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement 6% 6% (8%) Ready mix 13% 13% (10%) Aggregates 11% 11% (9%) Volume 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement (1%) (1%) 1% Ready mix (1%) (1%) 4% Aggregates (2%) (2%) 6% Volume-weighted, local-currency average prices Price (LC)
Increase in quarterly regional ready-mix and aggregates volumes reflects positive performance from our operations in Israel Increase in year-over-year regional prices for cement and aggregates, in local-currency terms In the Philippines, quarterly volumes were affected by tough weather conditions, a high base of comparison, and a slower execution of infrastructure projects In Egypt, quarterly volumes mainly reflect a high base of comparison and reduced purchasing power due to high inflation; cement prices increased 16% on a year-over-year basis Asia, Middle East and Africa 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement (19%) (19%) (1%) Ready mix 5% 5% 9% Aggregates 12% 12% (3%) Volume 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Cement 2% 2% (4%) Ready mix 0% 0% 1% Aggregates 3% 3% 0% Volume-weighted, local-currency average prices Price (LC)
First Quarter 2017 1Q17 Results
Operating EBITDA during 1Q17 increased by 2% on a like-to-like basis mainly due to higher contributions from Mexico and the U.S. Cost of sales, as a percentage of net sales, increased by 0.3pp during the quarter, mainly reflecting higher energy costs Operating expenses, as a percentage of net sales, declined by 0.2pp during the quarter mainly driven by our cost reduction initiatives Operating EBITDA, cost of sales and operating expenses l-t-l l-t-l % var % var Net sales 3,137 3,114 1% 6% 3,137 3,114 1% 6% Operating EBITDA 559 570 (2%) 2% 559 570 (2%) 2% as % net sales 17.8% 18.3% (0.5pp) 17.8% 18.3% (0.5pp) Cost of sales 2,127 2,102 (1%) 2,127 2,102 (1%) as % net sales 67.8% 67.5% (0.3pp) 67.8% 67.5% (0.3pp) Operating expenses 658 659 0% 658 659 0% as % net sales 21.0% 21.2% 0.2pp 21.0% 21.2% 0.2pp Millions of U.S. dollars 2017 2016 % var 2017 2016 % var January - March First Quarter
Average working capital days Free cash flow Average working capital days decreased to -1, from 10 days during the same period in 2016 7 10 -4 -1 1
Other income statement items Other income, net, of US$140 million which mainly includes the gain in sale of assets in the United States Foreign-exchange loss of US$66 million resulting primarily from the fluctuation of the Mexican peso versus the U.S. dollar Gain on financial instruments of US$98 million related mainly to the sale of a stake in Grupo Cementos de Chihuahua Gain on discontinued operations of US$152 million related primarily to the gain on disposal of the concrete pipe business in the United States Controlling interest net income of US$336 million, versus an income of US$35 million in 1Q16, mainly reflects higher operating earnings before other expenses, lower financial expenses, better results from financial instruments, and a positive effect in discontinued operations, partially offset by a foreign-exchange loss, higher income tax, and higher non-controlling interest net income Millions of U.S. dollars 35 336 Controlling interest net income 1Q16 1Q17
Debt-related information We repurchased approximately US$475 million of 7.250% senior secured notes due 2021 and 6.500% senior secured notes due 2019 through a cash tender offer We acquired Trinidad Cement Ltd, which resulted in CEMEX recognizing the equivalent of US$145 million of debt as of 1Q17 S&P Global Ratings ("S&P") upgraded our Corporate credit rating in its global scale to “BB-” from “B+” and to “mxA-” from “mxBBB” in its national scale, which will allow CEMEX to potentially access the institutional Mexican bond market. The rating outlook is stable Fitch Ratings revised our outlook to Positive from Stable while affirming our global scale credit rating at “BB-” CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, signed an agreement for a 7-year loan facility for the Philippine peso equivalent of US$280 million, to refinance indebtedness owed to an indirect subsidiary of CEMEX
Millions of U.S. dollars 92 1,549 1,271 790 1,711 1,534 1,664 1,970 586 997 Avg. life of debt: 5.2 years 1 CEMEX has perpetual debentures totaling US$439 million 2 Convertible Subordinated Notes include only the debt component of US$1,166 million; total notional amount is about US$1,211 million CEMEX consolidated debt maturity profile Fixed Income Other bank debt Convertible Subordinated Notes2 Credit Agreement Total debt excluding perpetual notes1 as of March 31, 2017: US$12,164 million
First Quarter 2017 2017 Outlook
2017 guidance 1 Includes US$30 million of maintenance and strategic CapEx for Trinidad Cement Limited 2 Including perpetual and convertible securities Consolidated volumes Cement: 1% - 3% Ready mix: 1% - 3% Aggregates: 0% - 3% Energy cost per ton of cement produced Increase of approximately 5% Capital expenditures1 US$520 million Maintenance CapEx US$210 million Strategic CapEx US$730 million Total CapEx Investment in working capital Investment of approximately US$50 million Cash taxes Approximately US$325 million Cost of debt2 Reduction of approximately US$125 million
Progress of initiatives as of 1Q17 to further bolster our road to investment grade Initiatives Progress to date Building Blocks Targets 2016 & 2017 Asset divestments ~ US$2.4 billion (~US$230 million to be collected1) US$2,408 divestments to date + other divestments + fixed asset sales US$2.5 billion Total debt reduction ~ US$2.7 billion US$2,724 debt reduction to date US$230 divestments to be collected1 US$2,954 + free cash flow Apr.-Dec. 2017 + other divestments US$3.5 – 4 billion 1 Includes US$80 million from the divestment of the ready-mix concrete pumping assets in Mexico and US$150 million from the divestment of the Pacific Northwest Materials Business in the U.S.; closing of these transactions is subject to the satisfaction of standard conditions for this type of transactions
First Quarter 2017 Appendix
Higher consolidated ready-mix and aggregates volumes during the quarter; consolidated cement volumes remained flat During the quarter, higher year-over-year cement volumes in Mexico and the Europe and South, Central America and the Caribbean regions Higher consolidated prices for our three core products both on a sequential and on a year-over-year basis Consolidated volumes and prices 3M17 vs. 3M16 1Q17 vs. 1Q16 1Q17 vs. 4Q16 Volume (l-t-l 1 ) (0%) (0%) (3%) Price (USD) (0%) (0%) 4% Price (l-t-l 1 ) 6% 6% 3% Volume (l-t-l 1 ) 5% 5% (4%) Price (USD) (2%) (2%) 3% Price (l-t-l 1 ) 1% 1% 2% Volume (l-t-l 1 ) 4% 4% (7%) Price (USD) (2%) (2%) 6% Price (l-t-l 1 ) 2% 2% 5% 1 Like-to-like volumes adjusted for investments/divestments and, in the case of prices, foreign-exchange fluctuations Aggregates Domestic gray cement Ready mix
Additional information on debt and perpetual notes Euro 22% U.S. dollar 74% Other 4% Fixed 74% Variable 26% Currency denomination Interest rate Fourth Quarter 2017 2016 % var 2016 Total debt 1 12,164 15,555 (22%) 12,635 Short-term 7% 0% 1% Long-term 93% 100% 99% Perpetual notes 439 444 (1%) 438 Cash and cash equivalents 435 1,273 (66%) 558 Net debt plus perpetual notes 12,168 14,726 (17%) 12,516 Consolidated Funded Debt 2 / EBITDA 3 Interest coverage 3 4 3.30 2.68 3.18 First Quarter 1 Includes convertible notes and capital leases, in accordance with IFRS 2 Consolidated Funded Debt as of March 31, 2017 was US$11,258 million, in accordance with our contractual obligations under the Credit Agreement 3 EBITDA calculated in accordance with IFRS 4 Interest expense in accordance with our contractual obligations under the Credit Agreement Millions of U.S. dollars 4.07 5.17 4.22
Additional information on debt and perpetual notes Total debt1 by instrument
1Q17 volume and price summary: Selected countries Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico 10% 8% 20% 7% (1%) 10% 4% 6% 17% U.S. (5%) 3% 3% (5%) 3% 3% (7%) 5% 5% Colombia (2%) (10%) (18%) (4%) 11% 1% (6%) 15% 5% Panama 9% 0% 0% 29% 0% 0% 29% 1% 1% Costa Rica 1% (8%) (4%) (11%) (17%) (14%) (6%) (32%) (29%) UK (10%) (8%) 4% 5% (11%) 1% 0% (11%) 1% Spain 19% (6%) (2%) 1% (1%) 3% 38% 8% 13% Germany 12% (6%) (2%) 14% (5%) (0%) 9% (2%) 3% Poland 8% (1%) 2% 29% (6%) (4%) 80% 7% 10% France N/A N/A N/A 14% (4%) (0%) 20% (7%) (3%) Philippines (9%) (13%) (7%) N/A N/A N/A N/A N/A N/A Egypt (32%) (46%) 16% (6%) (51%) 6% 29% (40%) 31% Ready mix Aggregates 1Q17 vs. 1Q16 1Q17 vs. 1Q16 Domestic gray cement 1Q17 vs. 1Q16
2017 expected outlook: Selected countries Domestic gray cement Ready mix Aggregates Volumes Volumes Volumes Consolidated 1 1% - 3% 1% - 3% 0% - 3% Mexico 0% - 3% 0% - 3% 0% - 3% United States 1 1% - 3% 1% - 3% 1% - 3% Colombia 0% 1% - 3% 1% - 3% Panama 4% - 6% 7% - 9% 7% - 9% Costa Rica 1% - 3% 1% - 3% 0% UK (2%) (2%) (2%) Spain 5% 2% 5% Germany 2% 2% 2% Poland 2% 2% 2% France N/A 6% 7% Philippines 3% N/A N/A Egypt (5%) 0% N/A 1 On a like-to-like basis for the ongoing operations
Definitions 3M17 / 3M16 Results for the first three months of the years 2017 and 2016, respectively Cement When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported cement volumes changed from total domestic cement including clinker to domestic gray cement) LC Local currency Like-to-like percentage variation (l-t-l % var) Percentage variations adjusted for investments/divestments and currency fluctuations Maintenance capital expenditures Investments incurred for the purpose of ensuring the company’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 company policies Operating EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products Strategic capital expenditures Investments incurred with the purpose of increasing the company’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
Contact information Stock Information NYSE (ADS): CX Mexican Stock Exchange: CEMEXCPO Ratio of CEMEXCPO to CX: 10 to 1 Investor Relations In the United States +1 877 7CX NYSE In Mexico +52 81 8888 4292 ir@cemex.com Calendar of Events July 26, 2017 Second quarter 2017 financial results conference call October 25, 2017 Third quarter 2017 financial results conference call