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, 2018
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 26, 2018, announcing first quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | First quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 3. | Presentation regarding first quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CEMEX, S.A.B. de C.V. | ||||||||||
| (Registrant) | ||||||||||
| Date: | April 26, 2018 | By: | /s/ Rafael Garza | |||||||
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| Name: Rafael Garza | ||||||||||
| Title: Chief Comptroller | ||||||||||
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Press release, dated April 26, 2018, announcing first quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | First quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 3. | Presentation regarding first quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
Exhibit 1
| Media Relations Paula Andrea Escobar |
Investor Relations Pablo Gutiérrez | |
| +57 (1) 603-9079 paulaandrea.escobar@cemex.com |
+57 (1) 603-9051 pabloantonio.gutierrez@cemex.com |
CEMEX LATAM HOLDINGS REPORTS
FIRST QUARTER 2018 RESULTS
| • | Consolidated prices of our three core products during the quarter increased on a sequential basis both in local-currency and in U.S. dollar terms. Our cement prices increased on a sequential basis in Colombia, Costa Rica and Brazil. |
| • | Our net income reached US$30 M during the quarter compared to US$35 M in the same quarter last year. |
BOGOTA, COLOMBIA. APRIL 26, 2018 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that consolidated net sales reached US$301 million during the first quarter of 2018, decreasing by 8% compared to those of the same period in 2017. Operating EBITDA declined by 29% during the first quarter, compared to that of the same period in 2017.
During the first quarter of 2018, our consolidated domestic gray cement, ready-mix and aggregates volumes decreased by 9%, 11% and 5%, respectively, compared to those of the first quarter of 2017. Our consolidated prices for domestic gray cement, ready-mix and aggregates increased in local-currency by 4%, 3% and 1%, respectively, during the quarter on a sequential basis.
Jaime Muguiro, CEO of CLH, said, “We had significant headwinds during the quarter: weak industry volumes in Colombia and Panama, as well as a difficult comparison base for prices in Colombia.
With regards to pricing performance, we are encouraged with the upward trend of our cement prices in Colombia during the last two quarters, as price recovery is critical to improving our margins which declined materially in 2017.
Our Free Cash Flow during the quarter was negative 31 million dollars mainly due to the payment of the fine imposed by the Superintendence of Industry and Commerce in Colombia”
CLH’s Financial and Operational Highlights
| • | In Colombia, cement prices continued their upward trajectory shown in the fourth quarter of 2017, and increased by 3% during the first quarter of 2018 on a sequential basis, in local currency. |
| • | Cement, ready-mix and aggregates volumes in Costa Rica increased by 5%, 11% and 31%, respectively, during the quarter on a year over year basis. Our cement and concrete prices in local-currency terms increased by 2% sequentially in this period. |
| • | In our Rest of CLH region during the first quarter, our ready-mix and aggregates volumes increased by 20% and 36%, respectively, compared to those of the same period in 2017. |
| • | During the quarter our total debt was reduced by US$25 million to US$935 million, compared to that of the same quarter of 2017. |
| • | Free cash flow decreased to negative US$31 million during the quarter. Lower financial expense, capex and taxes, were more than offset by lower EBITDA, a higher negative working capital variation, as well as the fine imposed by the Superintendent of Industry and Commerce in Colombia. |
1
Jaime Muguiro added, “We expect a better second half of the year driven by improved prices in Colombia, increased demand in Panama, higher volumes and prices in Costa Rica, as well as the start of highway projects in Nicaragua. On the other hand, the construction-workers-union strike in Panama and the protests in Nicaragua, could impact our second quarter results.
Going forward this year, we expect to generate positive free cash flow due to lower taxes and capex, and the recovery of the working-capital invested so far. We are committed to continue reducing our debt and leverage”
Consolidated Corporate Results
During the first quarter of the year, controlling interest net income was US$30 million compared to US$35 million during the first quarter of 2017.
Net debt during the first quarter of 2018 was US$903 million.
Geographical Markets First Quarter 2018 Highlights
Operating EBITDA in Colombia decreased by 34% to US$25 million, versus US$38 million in the first quarter of 2017. Net sales declined 12% to US$136 million during this period.
In Panama, operating EBITDA decreased by 34% to US$20 million during the quarter. Net sales reached US$61 million in the first quarter of 2018, a decline of 12% compared to those of the same period 2017.
In Costa Rica, operating EBITDA reached US$10 million during the quarter, decreasing by 21% on a year-over-year basis. Net sales decline by 5% to US$36 million, compared to those of the first quarter 2017.
In the Rest of CLH operating EBITDA declined by 10% to US$22 million during the quarter. Net sales reached US$72 million in the first quarter of 2018, a decrease of 1% compared to those of the same period 2017.
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.
2
Exhibit 2
2018 First Quarter Results
Stock listing
information
Colombian stock exchange S.A.
Ticker:clh
INvestor Relations
Pablo Gutierrez
+57(1) 603-9051
E-mail: pabloantonio.gutierrez@cemex.com
2018 First Quarter Results Page 2 OPERATING AND FINANCIAL HIGHLIGHTS 20182017% var20182017% varConsolidated cement volume 1,7601,893
(7%)1,7601,893 (7%)Consolidated domestic gray cement 1,5291,675 (9%)1,5291,675 (9%)Consolidated ready-mix volume 670756 (11%)670756 (11%)Consolidated aggregates volume1,6771,764 (5%)1,6771,764 (5%)Net
sales301329 (8%)301329 (8%)Gross profit125150 (17%)125150 (17%) as % of net sales41.5%45.8% (4.3pp)41.5%45.8% (4.3pp)Operating earnings before other expenses, net4671 (36%)4671 (36%) as % of net sales15.1%21.7% (6.6pp)15.1%21.7% (6.6pp)Controlling
interest net income (loss)3035 (15%)3035 (15%)Operating EBITDA6693 (29%)6693 (29%) as % of net sales21.9%28.2% (6.3pp)21.9%28.2% (6.3pp)Free cash flow after maintenance capital expenditures-3017N/A-3017N/AFree
cash flow-311N/A-311N/ANet debt 903925 (2%)903925 (2%)Total debt935960 (3%)935960 (3%)Earnings per share0.05 0.06 (15%)0.05 0.06 (15%)Shares outstanding at end of period5575570%5575570%Employees4,2864,654
(8%)4,2864,654 (8%) In millions of US dollars, except volumes, percentages, employees, and per-share amounts. Shares outstanding are presented in millions. Cement and aggregates volumes in thousands of metric
tons. Ready-mix volumes in thousands of cubic meters.January—MarchFirst Quarter
Consolidated net sales during the
first quarter of 2018 declined by 8% compared to those of the first quarter 2017. The decline in net sales on a year over year basis was mainly due to lower volumes in Colombia and Panama, as well as lower cement prices in Colombia. Cost of sales as
a percentage of net sales during the quarter increased by 4.3pp from 54.2% to 58.5% on a year-over-year basis. Operating expenses as a percentage of net sales during the first quarter increased by 2.4pp from 24.0% to 26.4% compared to that of the
same period in 2017. Operating EBITDA during the first quarter of 2018 declined by 29% compared to that of the first quarter of 2017. The decline is mainly due to weak volumes in Colombia and Panama, a difficult comparison base for prices in
Colombia, as well as a negative product-mix effect and a major kiln maintenance in Panama. Operating EBITDA margin during the first quarter of 2018 declined by 6.3pp, compared to that of the first quarter of
2017. Controlling interest net income during the first quarter of 2018 reached US$30 million compared to US$35 million in the same period of 2017. Total debt at the end of the quarter reached US$935 million.
2018 First Quarter Results Page 3 OPERATING RESULTS Colombia 20182017% var20182017% varNet sales136155 (12%)136155 (12%)Operating EBITDA 2538 (34%)2538 (34%)Operating EBITDA margin18.2%24.3% (6.1pp)18.2%24.3% (6.1pp)January—MarchFirst QuarterIn millions of US dollars, except percentages. January—MarchFirst QuarterJanuary—MarchFirst QuarterJanuary—MarchFirst QuarterVolume (11%) (11%) (16%) (16%) (16%) (16%)Price (USD) (2%) (2%)2%2% (1%) (1%)Price (local currency) (5%) (5%) (1%) (1%) (4%) (4%)Year-over-year percentage variation.Domestic gray cementReady-MixAggregates In Colombia, during the first quarter 2018 our domestic gray cement, ready-mix and aggregates volumes declined by 11%, 16% and 16%, respectively, compared to those of the first quarter 2017. Our focus on pricing strategy, led to a slight underperformance of our cement volumes versus the industry during the quarter on a year over year basis. Our cement prices continued their upward trajectory shown in the fourth quarter of 2017 and increased by 3% this quarter in local currency on a sequential basis. Our cement prices as of March this year, compared to those of June 2017, were 7% higher in local currency terms and 17% higher in U.S. dollar terms. Despite the expected improvement in GDP growth this year, the upward trajectory of oil prices, as well as historic low interest rates, construction activity continued declining during the first quarter of 2018. Our estimations indicate that during the first quarter national cement consumption including imports declined by 8 percent, or by 5 percent when adjusted for fewer working days. Panama 20182017% var20182017% varNet sales61 70 (12%)61 70 (12%)Operating EBITDA 20 31 (34%)20 31 (34%)Operating EBITDA margin33.1% 44.3% (11.2pp)33.1% 44.3% (11.2pp)January—MarchFirst QuarterIn millions of US dollars, except percentages. January—MarchFirst QuarterJanuary—MarchFirst QuarterJanuary—MarchFirst QuarterVolume (18%) (18%) (10%) (10%)4%4%Price (USD) (0%) (0%) (6%) (6%) (5%) (5%)Price (local currency) (0%) (0%) (6%) (6%) (5%) (5%)Year-over-year percentage variation.Domestic gray cementReady-MixAggregates In Panama during the first three months of the year our domestic gray cement and ready-mix volumes decreased by 18% and 10%, respectively, while our aggregates volume increased by 4%, compared to those of the first quarter 2017. Our estimations indicate that industry volumes during the quarter in Panama declined by 9%, or 7% when adjusted for fewer working days. Weak demand was anticipated during the first half of the year because of high home inventories in Panama City, as well as delays in the approval and execution of infrastructure projects. Our cement volumes declined by 18% in this period due to a lower cement market position, as we maintained our prices in a weak demand environment. We expect to recover our market position in coming months.
2018 First Quarter Results Page 4 OPERATING RESULTS Costa Rica 20182017% var20182017% varNet sales36 37 (5%)36 37 (5%)Operating EBITDA 10 12 (21%)10 12 (21%)Operating EBITDA margin26.7% 32.3% (5.6pp)26.7% 32.3% (5.6pp)January—MarchFirst QuarterIn millions of US dollars, except percentages. January—MarchFirst QuarterJanuary—MarchFirst QuarterJanuary—MarchFirst QuarterVolume5%5%11%11%31%31%Price (USD)0%0% (3%) (3%) (29%) (29%)Price (local currency)1%1% (2%) (2%) (28%) (28%)Year-over-year percentage variation.Domestic gray cementReady-MixAggregates In Costa Rica, during the first quarter our domestic gray cement, ready-mix and aggregates volumes increased by 5%, 11% and 31% respectively, compared to those of the first quarter 2017. Regarding our prices, both cement and ready-mix prices increased by 2% on a sequential basis during the quarter. The improvement in cement reflects our price increase implemented during the quarter, while the ready-mix price increase reflects higher sales of our value-added products, as well as the positive effect of services and surcharges. Rest of CLH 20182017% var20182017% varNet sales72 73 (1%)72 73 (1%)Operating EBITDA 2224 (10%)2224 (10%)Operating EBITDA margin30.0% 33.0% (3.0pp)30.0% 33.0% (3.0pp)In millions of US dollars, except percentages.January—MarchFirst Quarter January—MarchFirst QuarterJanuary—MarchFirst QuarterJanuary—MarchFirst QuarterVolume (4%) (4%)20%20%36%36%Price (USD)1%1% (1%) (1%) (8%) (8%)Price (local currency)4%4%1%1% (3%) (3%)Year-over-year percentage variation.Domestic gray cementReady-MixAggregates In the Rest of CLH region which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the first quarter of 2018, our domestic gray cement volume decrease by 4%, while our ready mix and aggregates volumes increased by 20% and 36%, respectively, compared to those of the first quarter 2017. Regarding our cement volumes, we observed delays in already contracted highways projects in Nicaragua, partially offset by higher volumes in Brazil. In the ready-mix business, volumes increased mainly due to improved service from our operation in Guatemala. With regards to Guatemala we partially compensated lost volumes from two mining projects that shutdown during the second quarter of 2017, with increased volumes to retailers and to our ready-mix operations. In our cement business, we are directly reaching more small retailers, while in ready-mix we are strengthening the service and coverage capabilities of our operations.
2018 First Quarter Results Page 5 . OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow 20182017% var20182017% varOperating earnings before other expenses, net46 72 (37%)46 72 (37%)+ Depreciation and operating amortization20 21 20 21 Operating EBITDA66 93 (29%)66 93 (29%)- Net financial expense15 17 15 17—Capital expenditures for maintenance7 10 7 10—Change in working Capital3623 3623—Taxes paid12 22 12 22—Other cash items (Net)26 426 4Free cash flow after maintenance capital exp(30) 17 n/a (30) 17 n/a—Strategic Capital expenditures1 16 1 16 Free cash flow (31) 1 n/a (31) 1 n/a In millions of US dollars, except percentages.January—MarchFirst Quarter Information on Debt 20182017% var201720182017Total debt 1, 2935960 927Currency denomination Short term36% 2% 37% U.S. dollar98%98% Long term64% 98% 63% Colombian peso2%2%Cash and cash equivalents32 35 (8%)45Interest rateNet debt 903 925 (2%)882 Fixed64%73% Variable36%27%Fourth QuarterIn 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.First QuarterFirst Quarter
2018 First Quarter Results Page 6 OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts INCOME STATEMENT20182017% var20182017% varNet sales301,081328,683 (8%)301,081328,683 (8%)Cost of sales(176,133)(178,199) 1%(176,133)(178,199) 1%Gross profit124,948150,484 (17%)124,948150,484 (17%)Operating expenses(79,431)(79,010) (1%)(79,431)(79,010) (1%)Operating earnings before other expenses, net45,51771,474 (36%)45,51771,474 (36%)Other expenses, net(1,411)(2,307) 39%(1,411)(2,307) 39%Operating earnings44,10669,167 (36%)44,10669,167 (36%) Financial expenses(14,755)(16,649) 11%(14,755)(16,649) 11% Other income (expenses), net18,8034,763 295%18,8034,763 295%Net income before income taxes48,15457,281 (16%)48,15457,281 (16%) Income tax(18,095)(21,747) 17%(18,095)(21,747) 17%Consolidated net income30,05935,534 (15%)30,05935,534 (15%)Non-controlling Interest Net Income(68)(114)40%(68)(114)40%Controlling Interest Net Income29,99135,420 (15%)29,99135,420 (15%) Operating EBITDA65,90492,608 (29%)65,90492,608 (29%)Earnings per share0.050.06 (15%)0.050.06 (15%)January—MarchFirst Quarter BALANCE SHEET20182017% varTotal Assets3,362,8933,380,890 (1%) Cash and Temporary Investments32,47735,184 (8%) Trade Accounts Receivables140,519124,859 13% Other Receivables60,19545,457 32% Inventories81,69075,107 9% Other Current Assets36,00823,147 56%Current Assets350,889303,754 16%Fixed Assets1,291,4361,275,233 1%Other Assets1,720,5681,801,903 (5%)Total Liabilities1,767,0351,856,322 (5%)Current Liabilities658,173358,111 84%Long-Term Liabilities1,092,6301,481,955 (26%)Other Liabilities 16,23216,256 (0%)Consolidated Stockholders’ Equity 1,595,8581,524,5685%Non-controlling Interest 6,4495,01029%Stockholders’ Equity Attributable to Controlling Interest 1,589,4091,519,5585%as of March 31
2018 First Quarter Results Page 7 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 INCOME STATEMENT20182017% var20182017% varNet sales851,111954,623 (11%)851,111954,623 (11%)Cost of sales(497,903)(517,559) 4%(497,903)(517,559) 4%Gross profit353,208437,064 (19%)353,208437,064 (19%)Operating expenses(224,537)(229,477) 2%(224,537)(229,477) 2%Operating earnings before other expenses, net128,671207,587 (38%)128,671207,587 (38%)Other expenses, net(3,990)(6,698) 40%(3,990)(6,698) 40%Operating earnings124,681200,889 (38%)124,681200,889 (38%) Financial expenses(41,710)(48,356) 14%(41,710)(48,356) 14% Other income (expenses), net53,15413,833 284%53,15413,833 284%Net income before income taxes136,125166,366 (18%)136,125166,366 (18%) Income tax(51,152)(63,161) 19%(51,152)(63,161) 19%Consolidated net income84,973103,205 (18%)84,973103,205 (18%)Non-controlling Interest Net Income(193)(331)42%(193)(331)42%Controlling Interest Net Income84,780102,874 (18%)84,780102,874 (18%) Operating EBITDA186,302268,971 (31%)186,302268,971 (31%)Earnings per share152.60185.40 (18%)152.60185.40 (18%)January—MarchFirst Quarter BALANCE SHEET20182017% varTotal Assets9,350,4249,737,774 (4%) Cash and Temporary Investments90,302101,339 (11%) Trade Accounts Receivables390,710359,623 9% Other Receivables167,371130,926 28% Inventories227,136216,326 5% Other Current Assets100,11966,671 50%Current Assets975,638874,885 12%Fixed Assets3,590,7983,672,976 (2%)Other Assets4,783,9885,189,913 (8%)Total Liabilities4,913,1885,346,654 (8%)Current Liabilities1,830,0301,031,446 77%Long-Term Liabilities3,038,0244,268,387 (29%)Other Liabilities 45,13446,821 (4%)Consolidated Stockholders’ Equity 4,437,2364,391,1201%Non-controlling Interest 17,93014,42924%Stockholders’ Equity Attributable to Controlling Interest 4,419,3064,376,6911%as of March 31
2018 First Quarter Results Page 8 OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales 20182017% var20182017% varNET SALESColombia136,143 155,168 (12%)136,143 155,168 (12%)Panama61,296 69,606 (12%)61,296 69,606 (12%)Costa Rica35,699 37,427 (5%)35,699 37,427 (5%)Rest of CLH72,059 73,028 (1%)72,059 73,028 (1%)Others and intercompany eliminations (4,116) (6,546) 37%(4,116) (6,546)37%TOTAL301,081 328,683 (8%)301,081 328,683 (8%)GROSS PROFITColombia52,13364,189 (19%)52,13364,189 (19%)Panama25,20534,788 (28%)25,20534,788 (28%)Costa Rica14,15716,234 (13%)14,15716,234 (13%)Rest of CLH28,47030,634 (7%)28,47030,634 (7%)Others and intercompany eliminations 4,9834,6397%4,9834,6397%TOTAL124,948150,484 (17%)124,948150,484 (17%)Colombia17,94030,810 (42%)17,94030,810 (42%)Panama16,47526,224 (37%)16,47526,224 (37%)Costa Rica8,31310,855 (23%)8,31310,855 (23%)Rest of CLH19,89922,735 (12%)19,89922,735 (12%)Others and intercompany eliminations (17,110)(19,150)11%(17,110)(19,150)11%TOTAL45,51771,474 (36%)45,51771,474 (36%)OPERATING EBITDAColombia24,78037,660 (34%)24,78037,660 (34%)Panama20,26230,849 (34%)20,26230,849 (34%)Costa Rica9,52412,101 (21%)9,52412,101 (21%)Rest of CLH21,61124,070 (10%)21,61124,070 (10%)Others and intercompany eliminations (10,273)(12,072)15%(10,273)(12,072)15%TOTAL65,90492,608 (29%)65,90492,608 (29%)OPERATING EBITDA MARGINColombia18.2% 24.3%18.2% 24.3%Panama33.1% 44.3%33.1% 44.3%Costa Rica26.7% 32.3%26.7% 32.3%Rest of CLH30.0% 33.0%30.0% 33.0%TOTAL21.9% 28.2%21.9% 28.2%January—MarchFirst QuarterOPERATING EARNINGS BEFORE OTHER EXPENSES, NET
2018 First Quarter Results Page 9 OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters 20182017% var20182017% varTotal cement volume 11,7601,893 (7%)1,7601,893 (7%)Total domestic gray cement volume1,5291,675 (9%)1,5291,675 (9%)Total ready-mix volume 670756 (11%)670756 (11%)Total aggregates volume 1,6771,764 (5%)1,6771,764 (5%)January—MarchFirst Quarter1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Per-country volume summary January—MarchFirst QuarterFirst Quarter 20182018 vs. 20172018 vs. 2017vs. Fourth Quarter 2017DOMESTIC GRAY CEMENTColombia (11%) (11%) (7%)Panama (18%) (18%)6%Costa Rica5%5%7%Rest of CLH (4%) (4%)1%READY-MIXColombia (16%) (16%) (10%)Panama (10%) (10%)20%Costa Rica11%11% (7%)Rest of CLH20%20% (19%)AGGREGATESColombia (16%) (16%) (9%)Panama4%4%24%Costa Rica31%31% (6%)Rest of CLH36%36% (26%)
2018 First Quarter Results Page 10 OPERATING RESULTS Price Summary Variation in U.S. dollars January—MarchFirst QuarterFirst Quarter 20182018 vs. 20172018 vs. 2017vs. Fourth Quarter 2017DOMESTIC GRAY CEMENTColombia (2%) (2%)10%Panama (0%) (0%) (0%)Costa Rica0%0%2%Rest of CLH1%1%1%READY-MIXColombia2%2%10%Panama (6%) (6%) (2%)Costa Rica (3%) (3%)2%Rest of CLH (1%) (1%) (0%)AGGREGATESColombia (1%) (1%)3%Panama (5%) (5%)4%Costa Rica (29%) (29%) (3%)Rest of CLH (8%) (8%) (1%)For Rest of CLH, volume-weighted average prices. Variation in local currency January—MarchFirst QuarterFirst Quarter 20182018 vs. 20172018 vs. 2017vs. Fourth Quarter 2017DOMESTIC GRAY CEMENTColombia (5%) (5%)3%Panama (0%) (0%) (0%)Costa Rica1%1%2%Rest of CLH4%4%2%READY-MIXColombia (1%) (1%)3%Panama (6%) (6%) (2%)Costa Rica (2%) (2%)2%Rest of CLH1%1%1%AGGREGATESColombia (4%) (4%) (3%)Panama (5%) (5%)4%Costa Rica (28%) (28%) (3%)Rest of CLH (3%) (3%) (0%)For Rest of CLH, volume-weighted average prices.
2018 First Quarter Results Page 11 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 are provided below. 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 2018 EoP2017
EoP2018 average2017 average2018 average2017 averageColombian peso2,780.472,880.242,826.852,904.392,826.852,904.39Panama balboa1.001.001.001.001.001.00Costa Rica colon569.31567.34571.47565.64571.47565.64Euro1.071.091.061.091.061.09Amounts provided in
units of local currency per US dollar.January—MarchJanuary—MarchFirst Quarter
2018 First Quarter Results Page 12 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. EoP equals End of Period. 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.
Exhibit 3
RESULTS1Q18 April 26, 2018
||Forward looking information 2 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 forwardlooking 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 sales, 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.
||Financial Results Summary
3 -8% Operating EBITDA(US$M) Net Sales (US$M) -29% 93 1Q17 66 1Q18 1Q18 301 1Q17
329 28.2% 1Q17 21.9% 1Q18 Margin EBITDA (%) -6.3pp Net sales declined by 8%mainly due to lower volumes and a difficult comparison base for cement prices in Colombia; fewer business days on a year-over-year
basis because of Easter holidays affected our consolidated sales by ~US$9 M EBITDA affected mainly byour results in Colombia and Panama; weak industry volumes in these countries, a difficult comparison base for prices in Colombia, as well as an
adverse product-mix effect in cement and a major kiln maintenance in Panama Also, the EBITDA decline reflects a high comparison base as 1Q17 had the highest quarterly EBITDA of last year
||Consolidated Volumes andPrices
4 (1)Like-to-like prices adjusted for foreign-exchange fluctuations 1Q18
vs.1Q17 1Q18 vs.4Q17 Volume -9%-2% Price (USD)0%6% Price (LtL1)-1%4% Volume-11%-6% Price (USD)0%7% Price (LtL1)-2%3% Volume-5%-4% Price (USD)-6%4% Price (LtL1)-8%1%
||EBITDA Variation
5
28.2% 21.9% EBITDAMargin 1Q17 EBITDA Margin 1Q18 -6.3pp
-29%
EBITDA1Q17 Fx EBITDA1Q18 Vol Price O. Costs SG&A Dist
93 66
-8 0 0 -3 0 -17
REGIONALHIGHLIGHTS Results 1Q18 LATAM HOLDINGS CEMEX
Results Highlights Colombia
||Colombia –Results Highlights
81Q18 vs. 1Q17 1Q18 vs. 4Q17 Cement -5%3% Ready-mix-1%3% Aggregates-4%-3%
9 Despite low-income housing sales reaching historic highs year-to-date February,housing starts decreased by about 12% in this period In the middle-and high-income segment, housing sales and starts continued declining year-to-date February, however, housing starts in this segment increased double-digits in this period compared to those of November-December 2017 Cement dispatches for housing projects remained weak during the quarter ||Colombia –Residential Sector We expect industry cement demand for this sector to accelerate during 2H18 and increase by 1% this year, supported by lower interest rates, improved subsidies execution, as well as by the improvement in the intention-to-buy-a-home-indicator, which is now back up to the 5-year avg.
10 Low levels of public investment during 1Q18 due to the Ley de Garantíaswhich ends its enforcement in coming months after the elections Volumes to this sector supported by two relevant projects in Bogotá:the PTAR Salitrewater plant and the CETIC Hospital 4G projects advancing slowly, estimated total ready-mix consumption to reach 430,000 m3 in 2018, of which we expect to supply 150,000 m3 ||Colombia –Infrastructure Sector We expect industry cement demand to this sector to remain flat during 2018
Results Highlights Panama
||Panama –Results Highlights
121Q18 vs. 1Q17 1Q18 vs. 4Q17 Cement 0%0% Ready-mix-6%-2% Aggregates-5%4%
||Panama –Sector Highlights 13 We expect improved demand conditions in 2H18as projects such as the Panama northern corridor, the ITSE college, the TransísmicaRoad rehabilitation, as well as the Chorrera-San Carlosroad expansion, intensify cement consumption Increased activity in public works should be supported by the country’s healthy fiscal situation, the increasing revenues from the Canal expansion, as well as 2019 presidential elections The construction-workers-union strike will impact our results during the time it remains unresolved
Results Highlights Costa Rica
||Costa Rica –Results Highlights
151Q18 vs. 1Q17 1Q18 vs. 4Q17 Cement 1%2% Ready-mix-2%2% Aggregates-28%-3%
||Costa Rica–Sector Highlights 16 For the rest of 2018 demand for our products should be supported by already contracted projects like a wholesale market in the North Pacific part of the country and the new building for the Parliament Our cement volumes expected to increase from 2% to 4% during 2018 Considering our project pipeline, as well as the expected entrance of new mill capacity during 2H18 We expect a slight demand increase from residential projects this year
Results Highlights Rest of CLH
||Rest of CLH –Results Highlights
181Q18 vs. 1Q17 1Q18 vs. 4Q17 Cement 4%2% Ready-mix1%1% Aggregates-3%0%
||Rest of CLH –Nicaragua highlights 19 The recent social unrest in the country is hampering construction activity Cement volumes declined by 11% mainly due to delays in the execution of already contracted concrete roads In the infrastructure sector, concrete roads such as Bluefields-United Nations, Mulukuku-Siunaand Malacatoya-El Papayal, as well as for the Masaya water plant, should provide volume support In the industrial-and-commercial sector, cement demand from the Chinadengahospital, a new distribution center, as well as tourism-related projects, should drive volumes||
20 ||Rest of CLH –Guatemala highlights Our cement volumes in Guatemala declined by 7%,or by 2% adjusting for fewer working days, while our ready-mix business reached record-high volumes Increased cement volumes to retailers and to our ready-mix operations partially compensated lost volumes to two mining projects that shutdown during 2Q17 In our cement business, we are directly reaching more retailers while in ready-mix we are improving service and client coverage in Guatemala City
FREE CASH FLOW 1Q18 Results
||Free Cash Flow
22US$
Million 1Q18 1Q17 % var Op. EBITDA6693(29%) -Net Financial Expense1517 -Maintenance Capex 710 -Change in Working Cap3623 -Taxes Paid1222 -Other Cash Items (net)264 Free Cash Flow
-3017N/A -Strategic Capex 116 Free Cash Flow -311N/A
GUIDANCE 1Q18 Results
||2018 Guidance 24 Volume YoY%
Consolidated Cash taxes US$75 M Total Capex US$55M Maintenance Capex US$50 M Strategic Capex US$5 MCement Ready -Mix
Aggregates 2% to 4%-2% to 0%5% to 7%
||Consolidateddebt maturity profile
25 2018 339 2023 596 US$ Million US $935 M Total debt as of March 31, 2018 3.2x Net Debt/EBITDAas of March 31, 2018
RESULTS1Q18 April 26, 2018