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, 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 66265, México
(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, 2018, announcing second quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | Second 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 second 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: | July 26, 2018 | By: | /s/ Rafael Garza Lozano | |||||||
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| Name: Rafael Garza Lozano | ||||||||||
| Title: Chief Comptroller | ||||||||||
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EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Press release, dated July 26, 2018, announcing second quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | Second 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 second quarter 2018 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
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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
SECOND QUARTER 2018 RESULTS
| • | Free cash flow during the quarter reached US$46 million, 60% higher on a year-over-year basis. |
| • | Our net debt declined by US$47 million during the quarter, reaching US$856 million. |
BOGOTA, COLOMBIA. JULY 26, 2018 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that consolidated net sales reached US$280 million during the second quarter of 2018, 8% lower than those in the same period of 2017. Operating EBITDA reached US$62 million during the second quarter, 19% lower on a year-over-year basis.
During the second quarter of 2018, our consolidated domestic gray cement, ready-mix and aggregates volumes decreased by 8%, 14% and 12%, respectively, compared to those in the second quarter of 2017. Our consolidated prices in US-dollars terms for domestic gray cement increased by 3%, for ready-mix decreased by 1%, while for aggregates remained flat, during the quarter on a year over year basis.
Jaime Muguiro, CEO of CLH, said, “During the quarter, our results were heavily affected by two external factors that I mentioned during the previous call as risks for our results. First, in Panama, the construction workers strike that started in mid-April lasted for 30 days and was the longest nationwide construction strike in the recent history of the country. Second, the situation in Nicaragua that started in mid-April, escalated and is having a material impact in economic activity and construction.
Despite these headwinds, our free cash flow during the quarter reached 46 million dollars, 60% higher than that of the same period of 2017, and our net debt was reduced by 47 million, reaching 856 million. During the rest of this year, we expect to continue generating free cash flow and, as announced in May, we expect to receive 30 million dollars related to the sale of our cement-distribution business in Brazil. Free cash flow and the proceeds from this asset sale will be used to pay down debt.”
CLH’s Financial and Operational Highlights
| • | In Colombia, our cement prices during the quarter continued their upward trajectory since July of last year. Our prices point-to-point July 2017 to June 2018, were 8% and 11% higher in local currency and in dollar terms, respectively. |
| • | In Costa Rica, our cement and ready-mix volumes during the second quarter increased by 18% and 29%, respectively. This positive performance was mainly due to our participation in big projects like the new building for the Parliament and Oxígeno, as well as to our value-added offers for the industrial segment. |
| • | In Guatemala, our cement and ready-mix volumes increased by 6% and 46%, respectively, reaching quarterly record levels in both businesses. |
Jaime Muguiro added, “I’m pleased to share with you an update of the implementation of CEMEX Go, our digital value proposition by which our customers can order, track and trace deliveries, make payments, as well as manage invoices and queries, digitally, quickly and seamlessly.
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In Colombia, after only 4 months of launching CEMEX Go, we have onboarded 100% of our targeted customer base and, so far, we are receiving more than 40% of the purchase orders, as well as about 20% of payments, through our digital solution. We are encouraged by the positive reaction from our customers.
This month we launched CEMEX Go in Panama, Costa Rica and El Salvador, and later this year we will launch it in Guatemala.
We believe that CEMEX Go will give us a competitive advantage as we will be able to deliver a superior customer experience, while we find ways to reduce our cost to serve.”
Consolidated Corporate Results
During the second quarter, controlling interest net income was US$4 million, compared to US$16 million in the same quarter of 2017.
Geographical Markets Second Quarter 2018 Highlights
Operating EBITDA in Colombia reached US$22 million, compared to US$23 million in the second quarter of 2017. Net sales declined 5% to US$129 million during this period.
In Panama, operating EBITDA decreased by 46% to US$14 million during the quarter. Net sales reached US$50 million in the second quarter of 2018, a decline of 30% compared to those in the same period of 2017.
In Costa Rica, operating EBITDA reached US$16 million during the quarter, 6% higher on a year-over- year basis. Net sales reached US$43 million, 10% higher than those in the second quarter of 2017.
In the Rest of CLH operating EBITDA declined by 18% to US$19 million during the quarter. Net sales reached US$61 million in the second quarter of 2018, 8% lower than those in the same period of 2017.
In accordance with its vision, CLH will continue constantly evolving to become more flexible in our operations, more creative in our commercial offerings, more sustainable in our use of resources, more innovative in conducting our business, and more efficient in our capital allocation. 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, and Guatemala.
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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
2018 SECOND QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutiérrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com
OPERATING AND FINANCIAL HIGHLIGHTS January—June Second Quarter 2018 2017 % var 2018 2017 % var Consolidated cement volume 3,331 3,643 (9%) 1,638 1,810 (10%) Consolidated domestic gray cement volume 2,905 3,185 (9%) 1,442 1,571 (8%) Consolidated ready-mix volume 1,287 1,475 (13%) 616 719 (14%) Consolidated aggregates volume 3,235 3,538 (9%) 1,558 1,775 (12%) Net sales 572 626 (9%) 280 305 (8%) Gross profit 233 281 (17%) 108 130 (17%) as % of net sales 40.7% 44.8% (4.1pp) 38.7% 42.6% (3.9pp) Operating earnings before other expenses, net 88 129 (32%) 42 55 (25%) as % of net sales 15.4% 20.6% (5.2pp) 14.9% 18.1% (3.2pp) Controlling interest net income (loss) 34 51 (34%) 4 16 (77%) Operating EBITDA 128 170 (25%) 62 76 (19%) as % of net sales 22.3% 27.1% (4.8pp) 22.0% 25.0% (3.0pp) Free cash flow after maintenance capital 18 58 (69%) 47 41 14% expenditures Free cash flow 17 30 (44%) 46 29 60% Net debt 856 897 (5%) 856 897 (5%) Total debt 895 936 (4%) 895 936 (4%) Earnings of continuing operations per share 0.06 0.10 (37%) 0.01 0.03 (80%) Shares outstanding at end of period 557 557 0% 557 557 0% Employees 4,298 4,518 (5%) 4,298 4,518 (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 2018 declined by explained by lower contributions from Colombia, Panama and Rest of 8% compared to those in the second quarter of 2017. The decline is CLH, partially offset by better results in Costa Rica. mainly due to lower volumes from our operations in Colombia, Panama Operating EBITDA margin during the second quarter of 2018 declined and Nicaragua. by 3.0pp, compared to that in the second quarter of 2017. Cost of sales as a percentage of net sales during the second quarter Controlling interest net income during the second quarter of 2018 increased by 3.9pp from 57.4% to 61.3%, on a year-over-year basis. reached US$4 million, compared to US$16 million in the same quarter Operating expenses as a percentage of net sales during the quarter of 2017. declined by 0.7pp from 24.5% to 23.8%, compared to those of the same Total debt decreased by US$40 million during the quarter, reaching period of 2017. US$895 million. Operating EBITDA during the second quarter of 2018 declined by 19% compared to that of the second quarter of 2017. The decline is mainly 2018 Second Quarter Results Page 2
OPERATING RESULTS Colombia January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 265 291 (9%) 129 135 (5%) Operating EBITDA 46 60 (23%) 22 23 (4%) Operating EBITDA margin 17.5% 20.8% (3.3pp) 16.8% 16.7% 0.1pp 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 (10%) (9%) (14%) (11%) (14%) (13%) Price (USD) 3% 8% 3% 5% (0%) 1% Price (local currency) (0%) 4% 0% 2% (3%) (2%) Year-over-year percentage variation. In Colombia, during the second quarter our domestic gray cement, ready-mix and aggregates volumes declined by 9%, 11%, and 13%, respectively, compared to those in the second quarter of 2017. For the first six months of the year, our domestic gray cement, ready-mix and aggregates volumes decreased by 10%, 14%, and 14%, respectively, compared to those in the same period of 2017. The persistent weakness in construction activity, as well as the uncertainty around the June presidential elections, affected cement consumption during the first semester. We estimate that daily national cement consumption, including imports, declined by 3% during the first semester and by 1.5% during the second quarter of 2018. Our focus on pricing combined led to an underperformance of our cement volumes versus those of the industry. Our cement prices during the quarter continued their upward trajectory since July of last year. Since then, we have implemented 4 prices increases in bagged-cement and 1 price increase in bulk-cement. Our prices point-to-point July 2017 to June 2018, were 8% and 11% higher in local-currency and in dollar-terms, respectively. Panama January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 111 141 (21%) 50 72 (30%) Operating EBITDA 35 58 (40%) 14 27 (46%) Operating EBITDA margin 31.1% 41.0% (9.9pp) 28.8% 37.7% (8.9pp) 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 (22%) (26%) (23%) (36%) (4%) (13%) Price (USD) (0%) (0%) (8%) (10%) (5%) (4%) Price (local currency) (0%) (0%) (8%) (10%) (5%) (4%) Year-over-year percentage variation. In Panama during the second quarter our domestic gray cement, ready-mix and aggregates volumes decreased by 26%, 36%, and 13%, respectively, compared to those in the second quarter of 2017. For the first half of 2018, our domestic gray cement, ready-mix and aggregates volumes declined by 22%, 23%, and 4%, respectively, compared to those in the first half of 2017. Our estimates indicate that industry volumes during the quarter declined by 23%, mainly due to the strike, which impacted heavily across all sectors, but particularly the infrastructure sector. Due to our higher share in infrastructure projects, our cement and ready-mix volumes during the second quarter declined by 26% and 36%, respectively. From the 26% cement-volume decline, about 16% was due to the strike and the rest to subdued construction activity. 2018 Second Quarter Results Page 3
OPERATING RESULTS Costa Rica January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 79 77 3% 43 39 10% Operating EBITDA 25 27 (6%) 16 15 6% Operating EBITDA margin 32.1% 35.3% (3.2pp) 36.6% 38.1% (1.5pp) 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 11% 18% 20% 29% 4% (11%) Price (USD) 2% 4% (1%) 1% (8%) 10% Price (local currency) 2% 3% (1%) (0%) (8%) 9% Year-over-year percentage variation. In Costa Rica, during the second quarter our domestic gray cement and ready-mix volumes increased by 18% and 29%, respectively, while our aggregates volumes declined by 11%, compared to those in the second quarter of 2017. For the first six months of the year our domestic gray cement, ready-mix and aggregates volumes increased by 11%, 20% and 4%, respectively, compared to those of the same period of 2017. Our volumes benefited during the quarter from our participation in big projects like the new building for the parliament and Oxígeno, as well as to our value-added offers for the industrial segment. Regarding pricing of our products, quarterly cement and ready-mix prices increased by 2% and 3%, respectively, on a sequential basis. The improvement in cement reflects our price increase made in February, while the improvement in ready-mix reflects a favorable project-mix, as well as the impact of services and surcharges. Rest of CLH January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 124 132 (6%) 61 66 (8%) Operating EBITDA 41 48 (16%) 19 24 (18%) Operating EBITDA margin 32.8% 36.5% (3.7pp) 31.5% 35.5% (4.0pp) 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 (6%) (5%) 3% (11%) 12% (5%) Price (USD) (1%) (2%) (1%) (1%) (7%) (8%) Price (local currency) 2% 1% 1% 1% (3%) (3%) Year-over-year percentage variation. In the Rest of CLH, region which includes our operations in Nicaragua, Guatemala and El Salvador, during the second quarter our domestic gray cement, ready-mix and aggregates volumes declined by 5%, 11%, and 5%, respectively, compared to those in the second quarter of 2017. During the first half of the year, our domestic gray cement decreased by 6%, while our ready-mix and aggregates volumes increased by 3% and 12%, respectively, compared to those in the same period of 2017. In Nicaragua, our cement volumes were affected by the political unrest that started in mid-April and has intensified since then. This crisis has led to generalized uncertainty and most private investment has been halted, affecting particularly the tourism and commercial sectors. In the construction sector, projects funded by the private sector have been suspended. In contrast, the government has the intention to continue already-funded infrastructure projects. With regards to Guatemala, our cement and ready-mix volumes reached quarterly record levels in both businesses. The residential and the industrial-and-commercial sectors were the main drivers of demand during the quarter mainly due to vertical-housing projects and shopping malls in Guatemala City. 2018 Second Quarter Results Page 4
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January—June Second Quarter 2018 2017 % var 2018 2017 % var Operating earnings before other expenses, net 88 129 (32%) 42 55 (25%) + Depreciation and operating amortization 40 41 20 21 Operating EBITDA 128 170 (25%) 62 76 (19%)—Net financial expense 29 32 14 15 —Capital expenditures for maintenance 15 23 9 13 —Change in working Capital 10 (13) (23) (36) —Taxes paid 25 65 13 43 —Other cash items (Net) 28 2 2 (2)—Free cash flow discontinued operations 3 4 (0) 3 Free cash flow after maintenance capital exp 18 58 (69%) 47 41 14%—Strategic Capital expenditures 1 28 0 12 Free cash flow 17 30 (44%) 46 29 60% In millions of US dollars, except percentages. Information on Debt Second Quarter First Quarter Second Quarter 2018 2017 % var 2018 2018 2017 Total debt 1, 2 895 936 935 Currency denomination Short term 23% 2% 36% U.S. dollar 98% 98% Long term 77% 98% 64% Colombian peso 2% 2% Cash and cash equivalents 39 39 1% 32 Interest rate Net debt 856 897 (5%) 903 Fixed 62% 66% Variable 38% 34% 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. 2018 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 2018 2017 % var 2018 2017 % var Net sales 571,903 626,470 (9%) 280,018 305,109 (8%) Cost of sales (339,398) (345,838) 2% (171,741) (175,100) 2% Gross profit 232,505 280,632 (17%) 108,277 130,009 (17%) Operating expenses (144,350) (151,823) 5% (66,599) (74,673) 11% Operating earnings before other expenses, net 88,155 128,809 (32%) 41,678 55,336 (25%) Other expenses, net (6,026) (1,464) (312%) (4,668) 836 n/a Operating earnings 82,129 127,345 (36%) 37,010 56,172 (34%) Financial expenses (29,154) (32,123) 9% (14,408) (15,481) 7% Other income (expenses), net 4,985 (8,305) n/a (13,774) (13,076) (5%) Net income before income taxes 57,960 86,917 (33%) 8,828 27,615 (68%) Income tax (23,555) (32,119) 27% (5,339) (10,044) 47% Profit of continuing operations 34,405 54,798 (37%) 3,489 17,571 (80%) Discontinued operations (724) (3,477) 79% 134 (1,785) 0% Consolidated net income 33,681 51,321 (34%) 3,623 15,786 (77%) Non-controlling Interest Net Income (79) (190) 58% (11) (76) 85% Controlling Interest Net Income 33,602 51,131 (34%) 3,612 15,710 (77%) Operating EBITDA 127,723 169,898 (25%) 61,577 76,353 (19%) Earnings of continued operations per share 0.06 0.10 (37%) 0.01 0.03 (80%) Earnings of discontinued operations per share (0.00) 0.00 n/a 0.00 0.00 n/a as of June 30 BALANCE SHEET 2018 2017 % var Total Assets 3,247,497 3,315,647 (2%) Cash and Temporary Investments 39,222 38,954 1% Trade Accounts Receivables 112,400 112,944 (0%) Other Receivables 54,224 59,345 (9%) Inventories 84,454 76,823 10% Assets held for sale 54,519 0 n/a Other Current Assets 30,372 18,603 63% Current Assets 375,191 306,669 22% Fixed Assets 1,234,913 1,241,541 (1%) Other Assets 1,637,393 1,767,437 (7%) Total Liabilities 1,681,901 1,809,908 (7%) Current Liabilities 535,596 355,778 51% Long-Term Liabilities 1,131,463 1,438,135 (21%) Other Liabilities 14,842 15,995 (7%) Consolidated Stockholders’ Equity 1,565,596 1,505,739 4% Non-controlling Interest 6,367 4,961 28% Stockholders’ Equity Attributable to Controlling Interest 1,559,229 1,500,778 4% 2018 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 2018 2017 % var 2018 2017 % var Net sales 1,629,632 1,839,704 (11%) 804,247 905,821 (11%) Cost of sales (967,112) (1,015,594) 5% (493,261) (519,845) 5% Gross profit 662,520 824,110 (20%) 310,986 385,976 (19%) Operating expenses (411,324) (445,847) 8% (191,283) (221,694) 14% Operating earnings before other expenses, net 251,196 378,263 (34%) 119,703 164,282 (27%) Other expenses, net (17,170) (4,300) (299%) (13,406) 2,483 n/a Operating earnings 234,026 373,963 (37%) 106,297 166,765 (36%) Financial expenses (83,073) (94,332) 12% (41,383) (45,961) 10% Other income (expenses), net 14,204 (24,390) n/a (39,562) (38,821) (2%) Net income before income taxes 165,157 255,241 (35%) 25,352 81,983 (69%) Income tax (67,121) (94,319) 29% (15,330) (29,818) 49% Profit of continuing operations 98,036 160,922 (39%) 10,022 52,165 (81%) Discontinued operations (2,062) (10,212) 80% 384 (5,300) n/a Consolidated net income 95,974 150,710 (36%) 10,406 46,865 (78%) Non-controlling Interest Net Income (226) (557) 59% (32) (225) 86% Controlling Interest Net Income 95,748 150,153 (36%) 10,374 46,640 (78%) Operating EBITDA 363,945 498,925 (27%) 176,856 226,679 (22%) Earnings of continued operations per share 176 289 (39%) 18 94 (81%) Earnings of discontinued operations per share (4) (18) (80%) 1 (10) n/a as of June 30 BALANCE SHEET 2018 2017 % var Total Assets 9,517,763 10,073,795 (6%) Cash and Temporary Investments 114,952 118,353 (3%) Trade Accounts Receivables 329,423 343,153 (4%) Other Receivables 158,920 180,306 (12%) Inventories 247,518 233,407 6% Assets held for sale 159,783 0 n/a Other Current Assets 89,015 56,521 57% Current Assets 1,099,611 931,740 18% Fixed Assets 3,619,284 3,772,124 (4%) Other Assets 4,798,868 5,369,931 (11%) Total Liabilities 4,929,314 5,498,970 (10%) Current Liabilities 1,569,724 1,080,945 45% Long-Term Liabilities 3,316,092 4,369,429 (24%) Other Liabilities 43,498 48,596 (10%) Consolidated Stockholders’ Equity 4,588,449 4,574,825 0% Non-controlling Interest 18,661 15,071 24% Stockholders’ Equity Attributable to Controlling Interest 4,569,788 4,559,754 0% 2018 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 2018 2017 % var 2018 2017 % var NET SALES Colombia 264,975 290,518 (9%) 128,832 135,351 (5%) Panama 111,480 141,200 (21%) 50,184 71,594 (30%) Costa Rica 78,931 76,563 3% 43,232 39,135 10% Rest of CLH 124,002 131,889 (6%) 61,138 66,183 (8%) Others and intercompany eliminations (7,485) (13,700) 45% (3,368) (7,154) 53% TOTAL 571,903 626,470 (9%) 280,018 305,109 (8%) GROSS PROFIT Colombia 99,171 111,320 (11%) 47,038 47,131 (0%) Panama 44,800 65,555 (32%) 19,595 30,767 (36%) Costa Rica 35,034 35,452 (1%) 20,877 19,218 9% Rest of CLH 52,472 59,259 (11%) 24,880 28,649 (13%) Others and intercompany eliminations 1,028 9,046 (89%) (4,112) 4,242 N/A TOTAL 232,505 280,632 (17%) 108,278 130,008 (17%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 32,467 46,361 (30%) 14,526 15,550 (7%) Panama 27,063 48,748 (44%) 10,587 22,524 (53%) Costa Rica 22,916 24,500 (6%) 14,603 13,644 7% Rest of CLH 37,257 45,264 (18%) 17,523 21,905 (20%) Others and intercompany eliminations (31,548) (36,064) 13% (15,562) (18,286) 15% TOTAL 88,155 128,809 (32%) 41,677 55,337 (25%) OPERATING EBITDA Colombia 46,448 60,364 (23%) 21,668 22,654 (4%) Panama 34,693 57,827 (40%) 14,431 26,959 (46%) Costa Rica 25,349 27,008 (6%) 15,825 14,895 6% Rest of CLH 40,646 48,170 (16%) 19,253 23,522 (18%) Others and intercompany eliminations (19,413) (23,471) 17% (9,600) (11,677) 18% TOTAL 127,723 169,898 (25%) 61,577 76,353 (19%) OPERATING EBITDA MARGIN Colombia 17.5% 20.8% 16.8% 16.7% Panama 31.1% 41.0% 28.8% 37.7% Costa Rica 32.1% 35.3% 36.6% 38.1% Rest of CLH 32.8% 36.5% 31.5% 35.5% TOTAL 22.3% 27.1% 22.0% 25.0% 2018 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 2018 2017 % var 2018 2017 % var Total cement volume 1 3,331 3,643 (9%) 1,638 1,810 (10%) Total domestic gray cement volume 2,905 3,185 (9%) 1,442 1,571 (8%) Total ready-mix volume 1,287 1,475 (13%) 616 719 (14%) Total aggregates volume 3,235 3,538 (9%) 1,558 1,775 (12%) 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 2018 2018 vs. 2017 2018 vs. 2017 vs. First Quarter 2018 DOMESTIC GRAY CEMENT Colombia (10%) (9%) (2%) Panama (22%) (26%) (9%) Costa Rica 11% 18% 14% Rest of CLH (6%) (5%) (3%) READY-MIX Colombia (14%) (11%) (4%) Panama (23%) (36%) (30%) Costa Rica 20% 29% 19% Rest of CLH 3% (11%) (8%) AGGREGATES Colombia (14%) (13%) (10%) Panama (4%) (13%) (16%) Costa Rica 4% (11%) 18% Rest of CLH 12% (5%) 4% 2018 Second Quarter Results Page 9
OPERATING RESULTS Price Summary Variation in U.S. dollars January—June Second Quarter Second Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. First Quarter 2018 DOMESTIC GRAY CEMENT Colombia 3% 8% (1%) Panama (0%) (0%) (0%) Costa Rica 2% 4% 2% Rest of CLH (1%) (2%) (1%) READY-MIX Colombia 3% 5% (2%) Panama (8%) (10%) (4%) Costa Rica (1%) 1% 3% Rest of CLH (1%) (1%) 0% AGGREGATES Colombia (0%) 1% 3% Panama (5%) (4%) (1%) Costa Rica (8%) 10% 5% Rest of CLH (7%) (8%) (6%) For Rest of CLH, volume-weighted average prices. Variation in local currency January—June Second Quarter Second Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. First Quarter 2018 DOMESTIC GRAY CEMENT Colombia (0%) 4% 1% Panama (0%) (0%) (0%) Costa Rica 2% 3% 2% Rest of CLH 2% 1% (0%) READY-MIX Colombia 0% 2% (0%) Panama (8%) (10%) (4%) Costa Rica (1%) (0%) 3% Rest of CLH 1% 1% 1% AGGREGATES Colombia (3%) (2%) 4% Panama (5%) (4%) (1%) Costa Rica (8%) 9% 5% Rest of CLH (3%) (3%) (5%) For Rest of CLH, volume-weighted average prices. 2018 Second Quarter Results Page 10
OTHER ACTIVITIES AND INFORMATION Information related to the Maceo Project xxxxxxxxxxxxxxxxx xxxx xxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxx xxxxxxxxxxxxx xxxxx xxxxxxxx xxxxxxxx xxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxx In July 2013, CEMEX Colombia had entered into a five-year lease agreement xxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx with a depository that had been designated by the Colombian National xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxx Narcotics Directorate (Dirección Nacional de Estupefacientes) (the xxxxxxx xxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx “CNND”) with respect to the assets in Maceo Colombia affected by the xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx expiration of property proceeding. The Colombian Administrator of Special xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxxx Assets (Sociedad de Activos Especiales S.A.S) (the “SAE”) assumed the xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx functions of the CNND after the CNND’s liquidation. x The lease agreement, along with an accompanying governmental mandate, authorized CEMEX Colombia to continue the work necessary for the construction and operation of the Maceo Project during the expiration of property proceeding. The Lease Agreement had a natural term until July 15, 2018. Notwithstanding the expiry of the natural term of Lease Agreement, CEMEX Colombia believes the Lease Agreement has the benefit of a renewal prerogative that operates pursuant to the Lease Agreement’s terms and conditions and by operation of law, and that it is also entitled to continue using the Maceo assets pursuant to the terms of the accompanying mandate until the conclusion of the expiration of property proceeding. Even though the SAE questions the validity of the documents signed with the CNND, the SAE and CEMEX Colombia continue to work on a long-term framework that would allow the Maceo plant to be commissioned while the expiration of property proceedings are resolved. 2018 Second Quarter Results Page 11
DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results The following table presents condensed combined information of the Under IFRS, CLH reports its consolidated results in its functional income statements of CEMEX Latam discontinued operations in its currency, which is the US Dollar, by translating the financial statements operating segment in Brazil for the six-month periods ended June 30, of foreign subsidiaries using the corresponding exchange rate at the 2018 and 2017: reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. INCOME STATEMENT Jan-Jun Second Quarter For the reader’s convenience, Colombian peso amounts for the (Millions of dollars) 2018 2017 2018 2017 consolidated entity are calculated by converting the US dollar amounts Sales 17.7 16.3 8.6 9.0 using the closing COP/US$ exchange rate at the reporting date for Cost of sales and operating exp. (18.5) (20.5) (8.4) (11.2) balance sheet purposes, and the average COP/US$ exchange rate for the Other expenses, net (0.1)—(0.0)—corresponding period for income statement purposes. The exchange rates are provided below. Interest expense, net and others (0.1) 0.1 (0.1) 0.1 Income (loss) before income tax (0.9) (4.1) (0.0) (2.1) Per-country/region selected financial information of the income Income tax 0.2 0.6 0.1 0.3 statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Net loss of discontinued operations (0.7) (3.5) 0.1 (1.8) Discontinued operations and assets held for sale On May 24, 2018, by means of one of its subsidiaries, CEMEX Latam Consolidated financial information entered into binding agreements with Votorantim Cimentos N/NE S.A. When reference is made to consolidated financial information means (“Votorantim”) for the sale of the Company’s operations in Brazil, which the financial information of CLH together with its consolidated comprise a water cement distribution terminal located in Manaus, subsidiaries. Amazonas state and its operating license. The transaction, which is subject to authorization by the authorities, is expected to be completed Presentation of financial and operating information during the fourth quarter of 2018. The selling price is approximately Individual information is provided for Colombia, Panama and Costa Rica. US$30 million subject to working capital adjustments. CEMEX Latam’s operations in Brazil for the six-month periods ended June 30, 2018 and Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. 2017 were reclassified and reported net of tax in the single line item “Discontinued Operations”. Moreover, in addition to assets held for sale presented in the condensed statement of financial position of $54,519 related to CEMEX Latam´s Brazilian operations, current liabilities of $535,596, include $20,584 of liabilities directly related with the Brazilian assets held for sale. Exchange rates January—June January—June Second Quarter 2018 EoP 2017 EoP 2018 average 2017 average 2018 average 2017 average Colombian peso 2,930.80 3,038.26 2,849.49 2,936.62 2,872.13 2,968.84 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 570.08 579.87 570.26 571.27 569.05 576.90 Euro 1.14 1.11 1.09 1.11 1.12 1.12 Amounts provided in units of local currency per US dollar. 2018 Second 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 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. 2018 Second Quarter Results Page 13
Exhibit 3
RESULTS2Q18 July 26, 2018
||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 Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -9% 626 572 -8% 305 -25% -4.8pp 280 -19% 1% -3.0pp 170 27 . 76 . 0% 128 . 3% 25 22 62 . 0% 22 6M17 6M18 2Q17 2Q18 6M17 6M18 2Q17 2Q18 6M17 6M18 2Q17 2Q18 3
||Consolidated Volumes andPrices 6M18 6M17 vs. 2Q18 2Q17 vs. 2Q18 1Q18 vs. Favorable cement volumes in Costa Rica, Guatemala and El Salvador, Volume -9% -8% -1% Domestic were more than offset by declines in gray Price (USD) 1% 3% -1% Panama, Colombia and Nicaragua, during cement 2Q18 YoY Price (LtL1) 0% 2% 0% Volume -13% -14% -8% Volumes during the quarter Ready-mix Price (USD) -1% -1% -3% heavily affected by concrete the construction-workers strike in Panama Price (LtL1) -2% -3% -2% and the protests in Nicaragua Volume -9% -12% -7% Consolidated cement prices Aggregates Price (USD) -3% 0% -1% increased on a YoY basis Price (LtL1) -5% -2% 0% 2% and 3% in local currency and in dollar terms, respectively, during the quarter; cement prices in Colombia were 8 dollars (1) Like-to-like prices adjusted for foreign-exchange fluctuations higher than those in 2Q17 4
||EBITDA Variation YTD 18 -25% 170 -38 -2 -2 1 -2 1 128 EBITDA Vol Price O. Costs Dist SG&A Fx EBITDA YTD 17 YTD 18 27.1% 22.3% -4.8pp EBITDA EBITDA Margin Margin YTD 17 YTD 18 5
REGIONAL HIGHLIGHTS 2Q 1 8 R e s u l t s
Results Highlights Colombia
||Colombia –Results Highlights The persistent weakness in 6M18 6M17 % var 2Q18 2Q17 % var construction activity as well as the uncertainty around Net Sales 265 291 -9% 129 135 -5% Financial presidential elections affected cement Summary Op. EBITDA 46 60 -23% 22 23 -4% consumption; we estimate that daily US$ Million national cement consumption, including as % net imports, declined by 3% during 6M18 and sales 17.5% 20.8% (3.3pp) 16.8% 16.7% 0.1pp by 1.5% during 2Q18, on a YoY basis 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement prices continued their Cement -10% -9% -2% upward trajectory Volume Ready mix -14% -11% -4% since July of last year; our prices point-to-Aggregates -14% -13% -10% point July 2017 to June 2018 were 11% higher in USD; our focus on pricing led to an underperformance of our volumes 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 versus those of the industry during 2Q18 Cement 0% 4% 1% Our EBITDA margin improved Price during 2Q18, despite lower volumes, (Local Currency) Ready mix 0% 2% 0% higher-freight costs, as well as higher-Aggregates -3% -2% 4% cement-maintenance costs, mainly due to higher prices and a one-off effect that impacted negatively our 2Q17 results 8
||Colombia –Residential Sector We estimate that industry cement dispatches for this sector declined in the mid-single digits during 6M18 Low-income housing sales increased double digits YTD May vs. August-to-December 2017. Housing permits in this segment also increased double digits YTD May on a YoY basis The high-income segment Now with the elections uncertainty behind us, we expect the residential may remain sluggish sector to stabilize in the second half of the year supported by low interest rates, the recent improvement in the intention-to-buy-a-home until the housing stock in this segment declines indicator, as well as by the upward trend in customer confidence 9
||Colombia –Infrastructure Sector Our volumes improved in this sector during 2Q18, supported by two relevant projects in Bogotá, the PTAR Salitre water-treatment plant and the CTIC hospital We increased dispatches to three 4G projects, Autopista Mar 1, Autopista al Rio Magdalena 2 and Bucaramanga-Barranca-Yondó We estimate 4G projects to demand 430,000 m3 in total for 2018, of which we were awarded the supply of 135,000 m3. For the rest of this year, we expect volumes to this sector to increase in 69,000 m3 of 2018 volumes to be awarded in coming months 10 the low-single digits
Results Highlights Panama
||Panama –Results Highlights The construction-workers 6M18 6M17 % var 2Q18 2Q17 % var strike impacted heavily Financial Net Sales 111 141 -21% 50 72 -30% during the quarter as it lasted 30 days; Summary Op. EBITDA 35 58 -40% 14 27 -46% from our 26% cement volume decline, US$ Million about 16pp were due to the strike and as % net sales 31.1% 41.0% (9.9pp) 28.8% 37.7% (8.9pp) the rest to subdued construction activity 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Our cement prices Cement -22% -26% -9% remained stable in 2Q18, Volume Ready mix -23% -36% -30% while our ready-mix prices declined by 4% sequentially, mainly due to difficult Aggregates -4% -13% -16% competitive dynamics and a product-mix effect with lower participation of special concretes during the quarter 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement 0% 0% 0% Our EBITDA margin Price (Local Currency) Ready mix -8% -10% -4% declined Aggregates -5% -4% -1% mainly due to lower volumes 12
|| Panama –Sectors Highlights Ongoing infrastructure projects should provide volume support for the rest of the year, particularly the Panama Northern Corridor, the Transismica Road rehabilitation, the 2nd line of the subway, as well as the Tocumen-airport expansion The government recently awarded two relevant infrastructure projects, the 4th bridge over the canal and the Corredor de las Playas, projects which might start later during the year and would demand our products in 2019 and onwards The weakness in the residential and commercial sectors is mainly due to excess inventory, particularly in the middle and high-income housing segments, as well as in malls, 13 offices and hotels
Results Highlights Costa Rica
||Costa Rica –Results Highlights Our 2Q18 cement and ready- 6M18 6M17 % var 2Q18 2Q17 % var mix volumes increased by Financial Net Sales 79 77 3% 43 39 10% 18% and 29%, respectively. We estimate that our market presence Summary Op. EBITDA 25 27 -6% 16 15 6% improved due to the participation in projects US$ Million as % net like the new building for the Parliament and sales 32.1% 35.3% (3.2pp) 36.6% 38.1% (1.5pp) Oxígeno, as well as to our value-added offers for the industrial segment 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Our sequential cement and Cement 11% 18% 14% ready-mix prices increased by Volume Ready mix 20% 29% 19% 2% and 3%, respectively, Aggregates 4% -11% 18% the improvement in cement prices reflects our price increase made in February 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 EBITDA Margin declined by Cement 2% 3% 2% 1.5pp mainly due to Price (Local Currency) Ready mix -1% 0% 3% a 22% increase in energy costs and to clinker sales made during the quarter, which Aggregates -8% 9% 5% more than offset the favorable impact of higher volumes and prices 15
|| Costa Rica –Sector Highlights For the rest of 2018 demand for our products should be supported by ongoing projects like a wholesale market and the new building for the Parliament, as well as already contracted highway maintenance works Two road projects expected to start this year, Ruta 32 Cruce a Río Frío- Limón and Ruta 1 Cañas Limonal Our cement volumes expected to increase from 3% to 5% during 2018, considering our project pipeline and that Elementia just commissioned their new grinding mill 16
Results Highlights Rest of CLH
||Rest of CLH –Results Highlights 6M18 6M17 % var 2Q18 2Q17 % var Results heavily affected by Net Sales 124 132 -6% 61 66 -8% lower sales in Nicaragua Financial due to the political unrest that started in mid-Summary Op. EBITDA 41 48 -16% 19 24 -18% April and intensified in following months US$ Million as % net sales 32.8% 36.5% (3.7pp) 31.5% 35.5% (4.0pp) Higher volumes in Guatemala 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 and El Salvador during 2Q18, Cement -6% -5% -3% were more than offset by volume declines in Nicaragua. Cement and ready-mix volumes Volume Ready mix 3% -11% -8% in Guatemala reached record levels during this period Aggregates 12% -5% 4% 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 During 2Q18, our EBITDA and EBITDA margin decreased by Cement 2% 1% 0% Price 8% and 4pp, respectively, (Local Currency) Ready mix 1% 1% 1% the margin decline was mostly due to lower Aggregates -3% -3% -5% volumes and higher energy costs in Nicaragua 18
|| Nicaragua –Sector Highlights Cement volumes during the quarter declined by 22% because of the political unrest that started in mid-April and has intensified since then. The crisis has led to generalized uncertainty and most private investment has been halted Projects funded by the private sector have been suspended. In contrast, the government has the intention to continue already-funded-infrastructure projects We expect to continue our cement dispatches for concrete roads, such as United Nations-Sector San Francisco, Malacatoya-El Papayal, as well We expect our volumes to remain subdued until the crisis ends, meanwhile we as Puerto Sandino-La Paz are taking cost-reduction measures to partially reduce the impact on our results 19
|| Guatemala –Sector Highlights Our cement and ready-mix volumes increased by 6% and 46%, respectively, during 2Q18 reaching quarterly-record levels in both businesses Increased cement volumes to retailers and to our ready-mix operations, more than compensated lost volumes from two mining projects that ended during the second quarter of 2017 We are executing a disintermediation strategy in our cement business and directly reaching more retailers where we have distribution capabilities 20
FREE CASH FLOW 2Q 1 8 R e s u l t s
||Free Cash Flow Free cash flow increased by US$ Million 6M18 6M17 % var 2Q18 2Q17 % var . EBIT 60% during 2Q18 Operating EBITDA 128 170 -25% 62 76 -19% reaching US$46M compared to US$29M in the same period of 2017—Net financial expense 29 32 14 15—Maintenance Capex 15 23 9 13 Lower financial expenses, capex—Change in working cap 10 -13 -23 -36 and taxes during 2Q18,—Taxes paid 25 65 13 43 more than offset the decline in EBITDA and the lower reversal in working capital —Other cash items (net) 28 2 2 -2 investment—Free cash flow 3 4 0 3 discontinued operations Free Cash Flow 18 58 -69% 47 41 14% Free cash flow mainly used to After Maintenance Capex—Strategic Capex 1 28 0 12 reduce debt. Free Cash Flow Net debt decreased by US$47M during 17 30 -44% 46 29 60% the quarter, reaching US$856 million 22
GUIDANCE 2 Q 1 8 R e s u l t s
||2018 Guidance Volume YoY% Consolidated volumes:—Cement: -8% to -10% Cement Ready—Mix Aggregates Colombia—Ready-mix: -5% to -7% -7% to -9% -8% to -10% -10% to -12%—Aggregates: -5% to -7% Cement Ready—Mix Aggregates Total Capex US$55M Panama Maintenance Capex US$50 M -13% to -15% -4% to -8% 3% to 6% Strategic Capex US$5 M Cement Ready—Mix Aggregates Consolidated Cash taxes Costa Rica 3% to 5% 5% to 7% 5% to 7% US$75 M 24
||Consolidated debt as of June 30, 2018 US$ Million 555 US $895 M Total debt 209 130 3.2x Net Debt / EBITDA 2018 2020 2023 Type Currency Cost US$ M Interest Rate Banks COP 8.80% 15 Intercompany USD 6ML + 250 bps 130 Variable Intercompany USD 6ML + 255 bps 194 38% Intercompany USD 5.65% 555 Fixed 62% Average Cost / Total USD 5.42%1 895 (1) Average Cost of USD denominated debt 25 The term “Intercompany” refers to debt with subsidiaries of CEMEX S.A.B. de C.V.
RESULTS 2Q18 J ul y 2 6 , 2 0 1 8