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 July, 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 July 26, 2017, announcing second quarter 2017 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 2. | Second quarter 2017 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). |
| 3. | Presentation regarding second quarter 2017 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CEMEX, S.A.B. de C.V. | ||||
| (Registrant) | ||||
| Date: July 26, 2017 | By: | /s/ Rafael Garza | ||
| Name: Rafael Garza | ||||
| Title: Chief Comptroller | ||||
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Press release, dated July 26, 2017, announcing second quarter 2017 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 2. | Second quarter 2017 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
| 3. | Presentation regarding second quarter 2017 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX). | |
Exhibit 1
| Media Relations | Investor Relations | |
| Paula Andrea Escobar | Jesús Ortiz | |
| +57 (1) 603-9079 | +57 (1) 603-9051 | |
| paulaandrea.escobar@cemex.com | jesus.ortizd@cemex.com |
CEMEX LATAM HOLDINGS REPORTS
SECOND QUARTER 2017 RESULTS
| • | During the quarter our free cash flow after total capital expenditures increased by 12%, in spite of a 39% decline in operating EBITDA. |
| • | We achieved a new historic cement volume record in our operations in the Rest of CLH region, during the April-June period. |
| • | We reached our lowest level of working capital investment during a second quarter, with minus 9 average working capital days. On a year over year basis, we were able to reduce our quarterly working capital needs by 27 million dollars. |
BOGOTA, COLOMBIA. JULY 26, 2017 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that consolidated net sales reached US$314 million during the second quarter of 2017, decreasing by 12% on a year-over-year basis. During the first half of the year consolidated net sales reached US$643 million, declining by 4% compared to those of the same period of 2016. These declines are mostly explained by lower cement volumes and prices in Colombia. As a result, operating EBITDA declined by 39% and 26% during the second quarter and the first half of 2017, respectively, on a year over year basis.
During the second quarter of 2017, our consolidated domestic gray cement, ready-mix and aggregates volumes were negatively affected by fewer working days and adverse weather conditions, and decreased by 3%, 13% and 9%, compared to those of the second quarter of 2016, respectively. During the quarter, our consolidated daily cement dispatches grew by 1.5%, on a year-over-year basis, and increased in all of our operations with the exception of Colombia and Nicaragua.
Jaime Muguiro, CEO of CLH, said, “Despite the increase in our daily cement dispatches in most of our operations, and in spite of having achieved a new historic cement volume record in our Rest of CLH region, our results were negatively affected by the intense competitive environment in Colombia, fewer working days as a consequence of the Easter holidays, and adverse weather conditions.”
CLH’s Financial and Operational Highlights
| • | We achieved a new historic cement volume record in our operations in the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Manaus, in Brazil. |
| • | Our EBITDA was negatively affected as cement prices in Colombia declined by 23% and 20% during the second quarter and first half of the year, respectively, compared to those of the same periods in 2016. |
| • | For the fifth consecutive quarter, during the April-June period, our working capital investment remained in negative territory. |
| • | Free cash flow after total capital expenditures increased by 12% during the second quarter, compared to that of the same period of last year. |
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Jaime Muguiro added, “Despite a 39% decline in our quarterly EBITDA, mostly explained by lower volumes and prices in Colombia, our Free Cash Flow after total capital expenditures increased by 12%. I am optimistic that in spite of the headwinds we are facing in Colombia as a result of the very challenging competitive dynamics, during 2017 we will be able to continue delivering a strong Free Cash Flow as a consequence of the important reduction in our Strategic Capex and our disciplined working capital management.”
Consolidated Corporate Results
During the second quarter of the year, controlling interest net income reached US$16 million decreasing 72% compared to that of the second quarter of 2016.
Net debt was reduced during the second quarter of 2017 to US$897 million.
Geographical Markets Second Quarter 2017 Highlights
Operating EBITDA in Colombia decreased by 63% to US$23 million, versus US$61 million in the second quarter of 2016, with a decline of 26% in net sales reaching US$135 million.
In Panama, operating EBITDA decreased by 19% to US$27 million during the quarter. Net sales reached US$72 million in the second quarter of 2017, an increase of 6% compared to those in the same period of 2016.
In Costa Rica, operating EBITDA reached US$15 million during the quarter, decreasing by 16% on a year-over-year basis. Net sales declined by 8% to US$39 million, compared to those of the second quarter of 2016.
In the Rest of CLH operating EBITDA declined by 9% to US$23 million during the quarter. Net sales reached US$75 million in the second quarter of 2017, an increase of 6% compared to those of the same period in 2016.
CLH is a regional leader in the building solutions industry that provides high-quality products and reliable services to customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, Guatemala, and Brazil. CLH’s mission is to create sustainable value by providing industry-leading products and solutions to satisfy the construction needs of our customers in the markets where we operate.
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This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of CLH to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CLH does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy, changes derived from events affecting CEMEX, S.A.B de C.V. and subsidiaries (“CEMEX”) and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CLH assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating earnings before other expenses, net plus depreciation and operating amortization. Free Cash Flow is defined as operating EBITDA minus net interest expense, maintenance and expansion capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation). All of the above items are prepared under International Financial Reporting Standards as issued by the International Accounting Standards Board. Operating EBITDA and Free Cash Flow (as defined above) are presented herein because CLH believes that they are widely accepted as financial indicators of CLH’s ability to internally fund capital expenditures and service or incur debt. Operating EBITDA and Free Cash Flow should not be considered as indicators of CLH’s financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
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Exhibit 2
2017 SECOND QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Jesús Ortiz de la Fuente +57 (1) 603-9051 E-mail: jesus.ortizd@cemex.com CEMEX LATAM HOLDINGS
OPERATING AND FINANCIAL HIGHLIGHTS January—June Second Quarter 2017 2016 % var 2017 2016 % var Consolidated cement volume 3,780 3,775 0% 1,887 1,946 (3%) Consolidated domestic gray cement 3,323 3,306 0% 1,647 1,697 (3%) Consolidated ready-mix volume 1,475 1,560 (5%) 719 823 (13%) Consolidated aggregates volume 3,538 3,678 (4%) 1,775 1,943 (9%) Net sales 643 672 (4%) 314 356 (12%) Gross profit 280 328 (15%) 130 176 (26%) as % of net sales 43.6% 48.9% (5.3pp) 41.3% 49.3% (8.0pp) Operating earnings before other expenses, net 125 183 (32%) 53 101 (47%) as % of net sales 19.4% 27.3% (7.9pp) 16.9% 28.3% (11.4pp) Controlling interest net income (loss) 51 101 (49%) 16 55 (72%) Operating EBITDA 168 226 (26%) 75 123 (39%) as % of net sales 26.1% 33.6% (7.5pp) 23.9% 34.4% (10.5pp) Free cash flow after maintenance capital expenditures 58 127 (55%) 40 70 N/A Free cash flow 30 51 (42%) 28 25 12% Net debt 897 984 (9%) 897 984 (9%) Total debt 936 1,034 (10%) 936 1,034 (10%) Earnings per share 0.09 0.18 (49%) 0.03 0.10 (72%) Shares outstanding at end of period 557 556 0% 557 556 0% Employees 4,518 4,737 (5%) 4,518 4,737 (5%) Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters. In millions of US dollars, except volumes, percentages, employees, and per-share amounts. Shares outstanding are presented in millions. Consolidated net sales during the second quarter of 2017 declined by 12% compared to those of the second quarter of 2016. For the first half of the year consolidated net sales decreased by 4%, compared to those of the same period of 2016. These declines are mostly explained by lower cement volumes and prices in Colombia. Cost of sales as a percentage of net sales during the first six months of the year increased by 5.3pp from 51.1% to 56.4%, on a year-over-year basis. Operating expenses as a percentage of net sales during the first half of the year increased by 2.6pp from 21.6% to 24.2%, compared to those of the same period of 2016. Operating EBITDA during the second quarter of 2017 declined by 39% compared to that of second quarter of 2016. During the first half of the year operating EBITDA decreased by 26%, compared to that of the same period in 2016. This decline is mainly explained by lower cement volumes and prices in Colombia. Operating EBITDA margin during the second quarter of 2017 declined by 10.5pp, compared to that of the second quarter of 2016. During the first six months of the year operating EBITDA margin declined by 7.5pp compared to that of the same period last year. Controlling interest net income during the first half of the year reached US$51 million, declining 49% compared to that of the same period in 2016. During the second quarter of 2017 controlling interest net income reached US$16 million, declining by 72% compared to that of the second quarter of 2016. Total debt at the end of the quarter reached US$936 million. 2017 Second Quarter Results Page 2
OPERATING RESULTS Colombia January—June Second Quarter 2017 2016 % var 2017 2016 % var Net sales 291 339 (14%) 135 182 (26%) Operating EBITDA 60 116 (48%) 23 61 (63%) Operating EBITDA margin 20.7% 34.2% (13.5pp) 16.7% 33.5% (16.8pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume (5%) (9%) (14%) (23%) (17%) (26%) Price (USD) (17%) (24%) 4% (3%) 8% 3% Price (local currency) (20%) (23%) (0%) (2%) 4% 4% Year-over-year percentage variation. In Colombia, during the second quarter our domestic gray cement, ready-mix and aggregates volumes declined by 9%, 23%, and 26%, respectively, compared to those of the second quarter of 2016. For the first six months of the year, our domestic gray cement, ready-mix and aggregates volumes decreased by 5%, 14%, and 17%, respectively, compared to those of the same period of 2016. Cement consumption during the quarter was affected by macroeconomic challenges in the country, by adverse weather conditions, as well as by three fewer working days. Despite the soft demand environment, we estimate that our cement market position has remained practically unchanged during the past four consecutive quarters. Our quarterly cement prices, on a year-over-year and sequential basis, were negatively affected by intense competitive dynamics. . Panama January—June Second Quarter 2017 2016 % var 2017 2016 % var Net sales 141 130 9% 72 67 6% Operating EBITDA 58 58 (0%) 27 33 (19%) Operating EBITDA margin 40.9% 44.6% (3.7pp) 37.6% 49.5% (11.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume 9% 9% 23% 18% 19% 10% Price (USD) (0%) (1%) (0%) (1%) (0%) (1%) Price (local currency) (0%) (1%) (0%) (1%) (0%) (1%) Year-over-year percentage variation. In Panama during the second quarter our domestic gray cement, ready-mix and aggregates volumes increased by 9%, 18%, and 10%, respectively, compared to those of the second quarter of 2016. For the first half of 2017, our domestic gray cement, ready-mix and aggregates volumes increased by 9%, 23%, and 19%, respectively, compared to those of the first half of 2016. Our participation in projects like Minera Panama, the second line of the Subway, the AES energy project, and the urban renovation of the city of Colon have been driving demand for our products. During the second quarter our operating EBITDA was negatively affected by the annual major maintenance of kiln #2, which we didn’t have in the second quarter of 2016. 2017 Second Quarter Results Page 3
OPERATING RESULTS Costa Rica January—June Second Quarter 2017 2016 % var 2017 2016 % var Net sales 77 82 (6%) 39 43 (8%) Operating EBITDA 27 35 (22%) 15 18 (16%) Operating EBITDA margin 35.2% 42.5% (7.3pp) 38.0% 41.4% (3.4pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume (2%) (5%) (7%) (4%) 26% 55% Price (USD) (8%) (9%) (17%) (16%) (52%) (63%) Price (local currency) (4%) (4%) (13%) (12%) (49%) (61%) Year-over-year percentage variation. In Costa Rica, during the second quarter our domestic gray cement and ready-mix volumes declined by 5% and 4%, respectively, while our aggregates volumes increased by 55%, compared to those of the second quarter of 2016. For the first six months of the year our domestic gray cement and ready-mix volumes declined by 2% and 7%, respectively, while our aggregates volumes increased by 26%, compared to those of the same period of 2016. During the second quarter construction activity was negatively affected by fewer working days. However, daily dispatches for our three core products increased during the April-June period, on a year-over-year basis. In spite of the negative effect of the Easter holidays, our cement, ready-mix and aggregates volumes increased on a sequential basis, reinforcing our expectations of stronger demand conditions for the rest of the year. Rest of CLH January—June Second Quarter 2017 2016 % var 2017 2016 % var Net sales 148 133 11% 75 71 6% Operating EBITDA 47 44 5% 23 25 (9%) Operating EBITDA margin 31.6% 33.4% (1.8pp) 30.3% 35.2% (4.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume 12% 6% 30% 32% 87% 128% Price (USD) (0%) (2%) (11%) (10%) (15%) (17%) Price (local currency) (1%) (2%) (10%) (10%) (11%) (13%) Year-over-year percentage variation. In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the second quarter of 2017 our domestic gray cement, ready-mix and aggregates volumes increased by 6%, 32%, and 128%, respectively, compared to those of the second quarter of 2016. During the first half of 2017, our domestic gray cement, ready-mix and aggregates volumes increased by 12%, 30%, and 87%, respectively, compared to those of the same period of 2016. While in Nicaragua, infrastructure works continued to drive demand for our products, in Guatemala, a strong activity in the industrial and commercial sector and a resilient private consumption backed by remittances fueled cement dispatches. 2017 Second Quarter Results Page 4
. OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January—June Second Quarter 2017 2016 % var 2017 2016 % var Operating earnings before other expenses, net 125 183 (32%) 52 100 (48%) + Depreciation and operating amortization 43 43 23 23 Operating EBITDA 168 226 (26%) 75 123 (39%)—Net financial expense 32 29 15 14 —Capital expenditures for maintenance 23 22 14 18—Change in working Capital (12) (22) (35) (32) —Taxes paid 65 64 43 51 —Other cash items (Net) 2 6 (2) 2 Free cash flow after maintenance capital exp 58 127 (55%) 40 70 (43%)—Strategic Capital expenditures 28 76 12 45 Free cash flow 30 51 (42%) 28 25 12% In millions of US dollars, except percentages. Information on Debt Second Quarter First Quarter Second Quarter 2017 2016 % var 2017 2017 2016 Total debt 1, 2 936 1,034 960 Currency denomination Short term 2% 25% 2% U.S. dollar 98% 98% Long term 98% 75% 98% Colombian peso 2% 2% Cash and cash equivalents 39 51 (23%) 35 Interest rate Net debt 897 984 (9%) 925 Fixed 66% 76% Variable 34% 24% In millions of US dollars, except percentages. 1 Includes capital leases, in accordance with International Financial Reporting Standards (IFRS). 2 Represents the consolidated balances of CLH and subsidiaries. 2017 Second Quarter Results Page 5
OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts January—June Second Quarter INCOME STATEMENT 2017 2016 % var 2017 2016 % var Net sales 642,755 672,076 (4%) 314,072 356,108 (12%) Cost of sales (362,592) (343,740) (5%) (184,393) (180,437) (2%) Gross profit 280,163 328,336 (15%) 129,679 175,671 (26%) Operating expenses (155,568) (144,860) (7%) (76,557) (74,738) (2%) Operating earnings before other expenses, net 124,595 183,476 (32%) 53,122 100,933 (47%) Other expenses, net (1,458) (274) (432%) 849 (389) N/A Operating earnings 123,137 183,202 (33%) 53,971 100,544 (46%) Financial expenses (32,144) (29,378) (9%) (15,494) (14,505) (7%) Other income (expenses), net (8,174) 11,561 N/A (12,937) 4,800 N/A Net income before income taxes 82,819 165,385 (50%) 25,540 90,839 (72%) Income tax (31,498) (64,516) 51% (9,752) (35,436) 72% Consolidated net income 51,321 100,869 (49%) 15,788 55,403 (72%) Non-controlling Interest Net Income (190) (313) 39% (76) (163) 53% Controlling Interest Net Income 51,131 100,556 (49%) 15,712 55,240 (72%) Operating EBITDA 167,737 226,051 (26%) 75,129 122,635 (39%) Earnings per share 0.09 0.18 (49%) 0.03 0.10 (72%) as of June 30 BALANCE SHEET 2017 2016 % var Total Assets 3,315,647 3,358,440 (1%) Cash and Temporary Investments 38,954 50,541 (23%) Trade Accounts Receivables 112,944 120,326 (6%) Other Receivables 59,345 39,542 50% Inventories 76,823 76,399 1% Other Current Assets 18,603 17,987 3% Current Assets 306,669 304,795 1% Fixed Assets 1,241,541 1,217,641 2% Other Assets 1,767,437 1,836,004 (4%) Total Liabilities 1,809,908 1,890,535 (4%) Current Liabilities 355,778 574,064 (38%) Long-Term Liabilities 1,438,135 1,308,078 10% Other Liabilities 15,995 8,393 91% Consolidated Stockholders’ Equity 1,505,739 1,467,905 3% Non-controlling Interest 4,961 5,757 (14%) Stockholders’ Equity Attributable to Controlling Interest 1,500,778 1,462,148 3% 2017 Second Quarter Results Page 6
OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in millions of Colombian Pesos in nominal terms, except per share amounts January—June Second Quarter INCOME STATEMENT 2017 2016 % var 2017 2016 % var Net sales 1,887,526 2,066,868 (9%) 932,429 1,054,122 (12%) Cost of sales (1,064,794) (1,057,120) (1%) (547,433) (533,698) (3%) Gross profit 822,732 1,009,748 (19%) 384,996 520,424 (26%) Operating expenses (456,843) (445,495) (3%) (227,286) (220,738) (3%) Operating earnings before other expenses, net 365,889 564,253 (35%) 157,710 299,686 (47%) Other expenses, net (4,284) (842) (409%) 2,521 (1,210) N/A Operating earnings 361,605 563,411 (36%) 160,231 298,476 (46%) Financial expenses (94,393) (90,347) (4%) (46,000) (42,674) (8%) Other income (expenses), net (24,005) 35,553 N/A (38,408) 13,882 N/A Net income before income taxes 243,207 508,617 (52%) 75,823 269,684 (72%) Income tax (92,495) (198,409) 53% (28,951) (105,200) 72% Consolidated net income 150,712 310,208 (51%) 46,872 164,484 (72%) Non-controlling Interest Net Income (561) (963) 42% (225) (483) 53% Controlling Interest Net Income 150,151 309,245 (51%) 46,647 164,001 (72%) Operating EBITDA 492,579 695,186 (29%) 223,047 361,220 (38%) Earnings per share 270.75 557.76 (51%) 84.20 295.74 (72%) as of June 30 BALANCE SHEET 2017 2016 % var Total Assets 10,073,799 9,793,716 3% Cash and Temporary Investments 118,353 147,386 (20%) Trade Accounts Receivables 343,153 350,889 (2%) Other Receivables 180,306 115,311 56% Inventories 233,407 222,792 5% Other Current Assets 56,524 52,449 8% Current Assets 931,742 888,827 5% Fixed Assets 3,772,124 3,550,825 6% Other Assets 5,369,932 5,354,064 0% Total Liabilities 5,498,970 5,513,084 (0%) Current Liabilities 1,080,945 1,674,058 (35%) Long-Term Liabilities 4,369,429 3,814,551 15% Other Liabilities 48,596 24,475 99% Consolidated Stockholders’ Equity 4,574,829 4,280,632 7% Non-controlling Interest 15,072 16,790 (10%) Stockholders’ Equity Attributable to Controlling Interest 4,559,757 4,263,842 7% 2017 Second Quarter Results Page 7
OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales January—June Second Quarter 2017 2016 % var 2017 2016 % var NET SALES Colombia 290,518 338,981 (14%) 135,350 182,247 (26%) Panama 141,200 129,782 9% 71,594 67,273 6% Costa Rica 76,563 81,664 (6%) 39,136 42,727 (8%) Rest of CLH 148,174 133,069 11% 75,146 70,723 6% Others and intercompany eliminations (13,700) (11,420) (20%) (7,154) (6,862) (4%) TOTAL 642,755 672,076 (4%) 314,072 356,108 (12%) GROSS PROFIT Colombia 111,320 159,977 (30%) 47,131 83,209 (43%) Panama 65,555 64,356 2% 30,767 36,687 (16%) Costa Rica 35,452 43,116 (18%) 19,218 22,442 (14%) Rest of CLH 59,117 54,314 9% 28,483 29,797 (4%) Others and intercompany eliminations 8,719 6,573 33% 4,080 3,536 15% TOTAL 280,163 328,336 (15%) 129,679 175,671 (26%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 46,361 103,064 (55%) 15,551 54,279 (71%) Panama 48,747 48,955 (0%) 22,523 28,785 (22%) Costa Rica 24,500 31,613 (23%) 13,645 16,178 (16%) Rest of CLH 43,812 41,564 5% 21,077 23,469 (10%) Others and intercompany eliminations (38,825) (41,720) 7% (19,674) (21,778) 10% TOTAL 124,595 183,476 (32%) 53,122 100,933 (47%) OPERATING EBITDA Colombia 60,265 115,777 (48%) 22,605 61,031 (63%) Panama 57,796 57,944 (0%) 26,947 33,323 (19%) Costa Rica 26,986 34,672 (22%) 14,885 17,688 (16%) Rest of CLH 46,808 44,394 5% 22,738 24,898 (9%) Others and intercompany eliminations (24,118) (26,736) 10% (12,046) (14,305) 16% TOTAL 167,737 226,051 (26%) 75,129 122,635 (39%) OPERATING EBITDA MARGIN Colombia 20.7% 34.2% 16.7% 33.5% Panama 40.9% 44.6% 37.6% 49.5% Costa Rica 35.2% 42.5% 38.0% 41.4% Rest of CLH 31.6% 33.4% 30.3% 35.2% TOTAL 26.1% 33.6% 23.9% 34.4% 2017 Second Quarter Results Page 8
OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters January—June Second Quarter 2017 2016 % var 2017 2016 % var Total cement volume 1 3,780 3,775 0% 1,887 1,946 (3%) Total domestic gray cement volume 3,323 3,306 0% 1,647 1,697 (3%) Total ready-mix volume 1,475 1,560 (5%) 719 823 (13%) Total aggregates volume 3,538 3,678 (4%) 1,775 1,943 (9%) 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Per-country volume summary January—June Second Quarter Second Quarter 2017 2017 vs. 2016 2017 vs. 2016 vs. First Quarter 2017 DOMESTIC GRAY CEMENT Colombia (5%) (9%) (4%) Panama 9% 9% 1% Costa Rica (2%) (5%) 1% Rest of CLH 12% 6% 0% READY-MIX Colombia (14%) (23%) (9%) Panama 23% 18% (2%) Costa Rica (7%) (4%) 3% Rest of CLH 30% 32% 24% AGGREGATES Colombia (17%) (26%) (12%) Panama 19% 10% 1% Costa Rica 26% 55% 74% Rest of CLH 87% 128% 48% 2017 Second Quarter Results Page 9
OPERATING RESULTS Price Summary Variation in U.S. dollars January—June Second Quarter Second Quarter 2017 2017 vs. 2016 2017 vs. 2016 vs. First Quarter 2017 DOMESTIC GRAY CEMENT Colombia (17%) (24%) (10%) Panama (0%) (1%) (0%) Costa Rica (8%) (9%) (2%) Rest of CLH (0%) (2%) (1%) READY-MIX Colombia 4% (3%) (5%) Panama (0%) (1%) (0%) Costa Rica (17%) (16%) (1%) Rest of CLH (11%) (10%) 0% AGGREGATES Colombia 8% 3% 0% Panama (0%) (1%) (2%) Costa Rica (52%) (63%) (32%) Rest of CLH (15%) (17%) (6%) For Rest of CLH, volume-weighted average prices. Variation in local currency January—June Second Quarter Second Quarter 2017 2017 vs. 2016 2017 vs. 2016 vs. First Quarter 2017 DOMESTIC GRAY CEMENT Colombia (20%) (23%) (8%) Panama (0%) (1%) (0%) Costa Rica (4%) (4%) (0%) Rest of CLH (1%) (2%) (0%) READY-MIX Colombia (0%) (2%) (3%) Panama (0%) (1%) (0%) Costa Rica (13%) (12%) 1% Rest of CLH (10%) (10%) (1%) AGGREGATES Colombia 4% 4% 3% Panama (0%) (1%) (2%) Costa Rica (49%) (61%) (31%) Rest of CLH (11%) (13%) (6%) For Rest of CLH, volume-weighted average prices. 2017 Second Quarter Results Page 10
DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates used to convert: (i) the balance sheet as of June 30, 2017 and June 30, 2016 was $3,038.26 and $2,916.15 Colombian pesos per US dollar, respectively, and (ii) the consolidated results for the second quarter of 2017 and for the second quarter of 2016 were $2,968.84 and $2,945.49 Colombian pesos per US dollar, respectively. Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Consolidated financial information When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries. Presentation of financial and operating information Individual information is provided for Colombia, Panama and Costa Rica. Countries in Rest of CLH include Nicaragua, Guatemala, El Salvador and Brazil. Exchange rates January—June January—June Second Quarter 2017 closing 2016 closing 2017 average 2016 average 2017 average 2016 average Colombian peso 3,038.26 2,916.15 2,936.62 3,075.35 2,968.84 2,945.49 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 579.87 554.20 571.27 545.25 576.90 547.50 Euro 1.14 1.11 1.09 1.11 1.12 1.12 Amounts provided in units of local currency per US dollar. 2017 Second Quarter Results Page 11
DEFINITIONS OF TERMS AND DISCLOSURES Definition of terms Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation). Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or internal policies. Net debt equals total debt minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points. Strategic capital expenditures investments incurred with the purpose of increasing CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs. Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables. 2017 Second Quarter Results Page 12
Exhibit 3
Exhibit 3
RESULTS 2Q17
J u l y 2 6 , 2 0 1 7
Forward looking information
This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as
“may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,”
“predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect CEMEX Latam Holdings, S.A.’s (“CLH”) current expectations and projections about future events based on
CLH’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CLH’s expectations. Some of the
risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CLH or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CLH’s
exposure to other sectors that impact CLH’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CLH operates; the regulatory environment, including environmental, tax,
antitrust and acquisition-related rules and regulations; CLH’s ability to satisfy its debt obligations and CEMEX, S.A.B. de C.V.’s (“CEMEX”) ability to satisfy CEMEX’s obligations under its material debt agreements, the
indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; expected refinancing of CEMEX’s existing indebtedness; the impact of CEMEX’s below investment grade debt rating on CLH’s and
CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CLH’s cost-reduction initiatives and implement
CLH’s pricing initiatives for CLH’s products; the increasing reliance on information technology infrastructure for CLH’s invoicing, procurement, financial statements
and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen
events; and the other risks and uncertainties described in CLH’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CLH’s business. The information
contained in these presentations is subject to change without notice, and CLH is not obligated to publicly update or revise forward-looking statements. Unless the context indicates otherwise, all references to pricing initiatives, price increases or
decreases, refer to CLH’s prices for CLH’s products.
UNLESS OTHERWISE NOTED, ALL CONSOLIDATED FIGURES ARE PRESENTED IN DOLLARS AND ARE BASED ON THE
FINANCIAL
STATEMENTS OF EACH COUNTRY PREPARED UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS.
Copyright CEMEX Latam Holdings, S.A. and its subsidiaries.
2
Financial Results Summary
Net Sales (US$M)
Operating EBITDA (US$M)
Margin EBITDA (%)
-4%
672
643 -12%
356 - 26% -7.5pp
314 -39% 6% -10.5pp
226 .
33 4% 123 1% .
168 . 34
26 9%
75 23 .
6M16 6M17 2Q16 2Q17 6M16 6M17 2Q16 2Q17 6M16 6M17 2Q16 2Q17
3
Consolidated Volumes and Prices
Domestic gray cement
Ready-mix concrete
Aggregates
6M17vs. 2Q17 vs. 2Q17 vs. 6M16 2Q16 1Q17
Volume 0% -3% -2% Price (USD) -8% -12% -4% Price (LtL1) -9% -11% -3%
Volume -5% -13% -5% Price (USD) 3% -1% -3% Price (LtL1) 1% 0% -1%
Volume -4% -9% 1% Price (USD) -2% -10% -7% Price (LtL1) -4% -9% -6%
(1) Like-to-like prices adjusted for foreign-exchange fluctuations
Our consolidated volumes for our three core products
decreased during 2Q17,
mainly as a result of fewer working days, and weaker demand conditions in Colombia
This quarter, our daily cement dispatches increased
in all of our operations with the
exception of Colombia and Nicaragua
Our cement prices declined by 11% and 3% in 2Q17,
in local currency terms1, against those of 2Q16 and 1Q17, respectively, mainly as a result of intense competitive dynamics in Colombia
4
EBITDA Variation YTD 17
-26%
226 -7
-53
7 -3 -5 2
168
EBITDA Vol Price O. Costs Dist SG&A Fx EBITDA YTD16 YTD17
33.6% 26.1%
- 7.5pp
EBITDA EBITDA Margin Margin YTD16 YTD17
5
REGIONAL HIGHLIGHTS
R e s
u l t s 2 Q 1 7
Results Highlights Colombia
Colombia – Results Highlights
Financial
Summary
US$ Million
Volume
Price
(Local Currency)
6M17 6M16 % var 2Q17 2Q16 % var
Net Sales 291 339 -14% 135 182 -26%
Op. EBITDA 60 116 -48% 23 61 -63%
as % net
sales 20.7% 34.2% (13.5pp) 16.7% 33.5% (16.8pp)
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17
Cement -5% -9% -4%
Ready mix -14% -23% -9%
Aggregates -17% -26% -12%
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17
Cement -20% -23% -8%
Ready mix 0% -2% -3%
Aggregates 4% 4% 3%
National cement dispatches remain subdued.
We estimate that during 2Q17, daily national cement dispatches decreased by 2.6% compared to those of 2Q16
Competitive dynamics intensified during 2Q17,
resulting in significant cement price drops
across the country
Our cement market position has remained stable
since the
price erosion began in 2H16
Our cost containment efforts partially offset the EBITDA decline
8
Colombia – Residential Sector
In recent months we finished the casting of over 1,000 social interest ready-mix concrete homes, and are advancing works for 4,000 more
concrete dwellings
Challenging economic conditions have affected middle and high income housing developments
Social interest housing sales and initiations grew by double digit rates
during the January-May period, on a year-over-year basis
Cement demand from residential sector is expected to decrease in the low single
digits during 2017
9
Colombia – Infrastructure Sector
As of June 30th CLH had secured1 the supply for: 39% of the functional units (4G’s and PPP’s)
34% of the cement requirements
(1) Refers to those functional units which have contracted
cement and ready-mix so far
Infrastructure works should drive cement demand in 2017,
mainly as a consequence of:
- Initial works of 4G program, specially in 2H17
- Higher project execution by local and regional administrations
- Increased disbursements
from the royalties fund
According to the National Infrastructure Agency2:
-
17 projects from the 4G program have officially started construction works
- 5 more are in pre-construction phase
Cement demand from infrastructure projects should grow ~4% in 2017
10
(2) Agencia Nacional de Infraestructura (ANI)
Results Highlights Panama
Panama – Results Highlights
Financial
Summary
US$ Million
Volume
Price
(Local Currency)
6M17 6M16 % var 2Q17 2Q16 % var
Net Sales 141 130 9% 72 67 6%
Op. EBITDA 58 58 0% 27 33 -19% as % net sales 40.9% 44.6% (3.7pp) 37.6% 49.5% (11.9pp)
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17 Cement 9% 9% 1% Ready mix 23% 18% -2% Aggregates 19% 10% 1%
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17 Cement 0% -1% 0% Ready mix 0% -1% 0% Aggregates 0% -1% -2%
Cement, ready-mix and aggregates volumes
grew
during 2Q17,compared to those of 2Q16
Prices for our three core products
remained practically flat during 2Q17 and 1H17
on a year-over-year basis
EBITDA and EBITDA margin declined during the quarter,
compared to those of
2Q16, as a result of maintenance activities, a product-mix effect, and higher fuel costs
12
Panama – Sector Highlights
Construction industry has benefited from government efforts to enhance infrastructure and reduce the housing deficit
Infrastructure and residential sectors were the main drivers of cement demand in 2Q17
Demand
from social and middle income housing projects remained strong this quarter
Tender offers for the 4th bridge over the Canal already presented.
It is likely that execution for the project could start in early 2018
13
Results Highlights Costa Rica
Costa Rica – Results Highlights
Financial
Summary
US$ Million
Volume
Price
(Local Currency)
6M17 6M16 % var 2Q17 2Q16 % var
Net Sales 77 82
-6% 39 43 -8%
Op. EBITDA 27 35 -22% 15 18 -16% as % net sales 35.2% 42.5% (7.3pp) 38.0% 41.4% (3.4pp)
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17 Cement -2% -5% 1% Ready mix -7% -4% 3% Aggregates 26% 55% 74%
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17 Cement -4% -4% 0% Ready mix
-13% -12% 1% Aggregates -49% -61% -31%
In 2Q17, daily dispatches for our three core products increased,
versus 2Q16
levels
On a sequential basis, our cement, ready-mix and aggregates volumes increased,
despite the effect of Easter holidays
EBITDA margin declined 3.4pp
in 2Q17 vs.2Q16, mostly explained by lower cement prices and a mix effect reflecting lower sales of VAPs1
15
(1) Value added products
Costa Rica– Sector Highlights
The improving construction prospects in all demand sectors, and the progress we have made in our value before volume strategy, make us cautiously optimistic with regards to our
operations in Costa Rica
We expect cement volumes for infrastructure to grow ~13%
as the government resumes some projects in advance of the presidential elections
Cement demand
for housing, and industrial and commercial sectors should increase 1% in 2017 During the 2H17 demand for our products should be driven by the execution of :
-
Oxígeno project
- Northern Beltway
- Route 32
- APM port terminal
16
Results Highlights Rest of CLH
Rest of CLH – Results Highlights
Financial
Summary
US$ Million
Volume
Price
(Local Currency)
6M17 6M16 % var 2Q17 2Q16 % var
Net Sales 148 133 11% 75 71 6%
Op. EBITDA 47 44 5% 23 25 -9% as % net sales 31.6% 33.4% (1.8pp) 30.3% 35.2% (4.9pp)
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17 Cement 12% 6% 0% Ready mix 30% 32% 24% Aggregates 87% 128% 48%
6M17 vs. 6M16 2Q17 vs. 2Q16 2Q17 vs. 1Q17 Cement -1% -2% 1% Ready mix
-10% -10% -1% Aggregates -11% -13% -9%
In 2Q17, we reached the highest ever cement volumes in the Rest of CLH region,
despite the Easter holidays and adverse weather conditions
Cement, ready-mix and aggregates volumes increased by 6%, 32% and 128% in 2Q17,
respectively, over those of 2Q16
EBITDA Margin decline 4.9pp
in 2Q17 vs.2Q16, mostly explained by lower cement volumes and
prices in Nicaragua, as well as a product-mix effect reflecting higher ready-mix and aggregates volumes
18
Rest of CLH – Nicaragua highlights
Despite of our positive performance, we remain cautious given some perceived vulnerabilities of the country’s external accounts
We estimate that construction of roads and hospitals,
should drive demand for our products
during the second half of the year.
Regional and local construction activities should remain strong,
in anticipation of local elections and Central American Games in December
Construction works
for new residential projects have slowed down in recent months
19
Rest of CLH – Guatemala highlights
Despite lower volumes for our three core products as a result of Easter, our EBITDA remained flat during 2Q17,
on a year over year basis
Our daily cement dispatches increased by 2% during 2Q17
above 2Q16 levels
Residential, and industrial and commercial continue to be the main cement
demand drivers,
whereas demand from public works remains dull 20
FREE CASH FLOW
2 Q 1 7 R
e s u l t s
We will continue with disciplined working capital management
2015 21
15 12
2
1Q 2Q 3Q 4Q
Working Capital Balance
(Average Days)
2016 2017
In 2Q17, CLH reduced its quarterly average working capital investment by
US$27 million1
2
-1 - 6 - 14 - 11 - 9
1Q 2Q
3Q
2Q 1Q
4Q
(1) Compared to that of the same period in 2016
22
Free Cash Flow
US$
Million 6M17 6M16 % var 2Q17 2Q16 % var
Operating . EBIT EBITDA 168 226 -26% 75 123 -39%
- Net Financial Expense 32 29 15 14
-
Maintenance Capex 23 22 14 18
- Change in Working Cap -12 -22 -35 -32
- Taxes Paid 65 64 43 51
- Other Cash Items (net) 2 6 -2 2
Free Cash Flow
Free Cash Flow 58 127 -55% 40 70 -43%
After Maintenance Capex
- Strategic
Capex 28 76 12 45
Free Free Cash Cash Flow Flow 30 51 -42% 28 25 12%
Free cash flow after strategic Capex increased to US$28 M during the second quarter
The
negative effect from the EBITDA variation was more than offset by:
- Lower maintenance and strategic Capex
- A positive variation in working capital
- Lower cash taxes
Net debt was reduced
during 2Q17 to US$897 M
23
GUIDANCE
2 Q 1 7 R e s u
l t s
2017 Guidance
Volume YoY%
Cement Ready - Mix Aggregates
Colombia
0% to -3% -1% to -3%
-1% to -3%
Cement Ready - Mix Aggregates
Panama
4% to 6% 7% to 9% 7% to 9%
Cement Ready - Mix Aggregates
Costa Rica
1% to 3% 1% to 3% 7% to 9%
Consolidated volumes in 2017 expected to grow:
+ Cement: 1% to 2%
+ Ready-mix: 0% to 2%
+ Aggregates: 1% to 3%
Maintenance and Strategic Capex in 2017
are expected to be about US$51 M and US$29 M, respectively
Consolidated Cash taxes
are expected to range between US$100 M and US$110 M
25
Consolidated debt maturity profile
US$ Million
2017 10
2018 310
2023 616
US $936 Million
Total debt as of June 30, 2017
2.5x Net Debt/EBITDA (LTM)1
as of June 30, 2017
(1) Last twelve months to June 2017 26
RESULTS 2Q17
J u l y 2 6
, 2 0 1 7