UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2019
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. | Presentation that includes information of Cemex, S.A.B. de C.V. (NYSE:CX) (“CEMEX”) discussed by Fernando A. González Olivieri, CEMEX’s Chief Executive Officer, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 2. | Presentation that includes information of CEMEX’s plan “A Stronger CEMEX” discussed by Juan Pablo San Agustín, CEMEX’s Executive Vice President of Strategic Planning and New Business Development and José Antonio González Flores CEMEX’s Executive Vice President of Finance and Administration, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 3. | Presentation that includes information of CEMEX’s superior customer experience enabled by digital technologies discussed by Luis Hernández Echávez, CEMEX’s Executive Vice President of Digital and Organizational Development and Juan Romero Torres CEMEX’s Executive Vice President of Global Commercial Development, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 4. | Presentation that includes information of CEMEX’s business and operations in Mexico discussed by Ricardo Naya Barba, President of CEMEX Mexico, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 5. | Presentation that includes information of CEMEX’s business and operations in South, Central America and the Caribbean discussed by Jaime Muguiro Domínguez, President of CEMEX South, Central America and the Caribbean, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 6. | Presentation that includes information of CEMEX’s business and operations in Europe discussed by Sergio Mauricio Menendez Medina, President of CEMEX Europe, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 7. | Presentation that includes information of CEMEX’s business and operations in Asia, the Middle East and Africa discussed by Joaquín Miguel Estrada Suarez, President of CEMEX Asia, Middle East and Africa, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 8. | Presentation that includes information of CEMEX’s business and operations in the United States of America discussed by Ignacio Madridejos Fernández, President of CEMEX USA, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. |
| 9. | Additional presentation related to CEMEX Day that includes information of CEMEX’s energy and sustainability topics. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
CEMEX, S.A.B. de C.V. | ||||||||
| (Registrant) | ||||||||
| Date: | March 20, 2019 |
By: | /s/ Rafael Garza Lozano | |||||
| Name: Rafael Garza Lozano | ||||||||
| Title: Chief Comptroller | ||||||||
3
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Presentation that includes information of Cemex, S.A.B. de C.V. (NYSE:CX) (“CEMEX”) discussed by Fernando A. González Olivieri, CEMEX’s Chief Executive Officer, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 2. | Presentation that includes information of CEMEX’s plan “A Stronger CEMEX” discussed by Juan Pablo San Agustín, CEMEX’s Executive Vice President of Strategic Planning and New Business Development and José Antonio González Flores CEMEX’s Executive Vice President of Finance and Administration, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 3. | Presentation that includes information of CEMEX’s superior customer experience enabled by digital technologies discussed by Luis Hernández Echávez, CEMEX’s Executive Vice President of Digital and Organizational Development and Juan Romero Torres CEMEX’s Executive Vice President of Global Commercial Development, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 4. | Presentation that includes information of CEMEX’s business and operations in Mexico discussed by Ricardo Naya Barba, President of CEMEX Mexico, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 5. | Presentation that includes information of CEMEX’s business and operations in South, Central America and the Caribbean discussed by Jaime Muguiro Domínguez, President of CEMEX South, Central America and the Caribbean, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 6. | Presentation that includes information of CEMEX’s business and operations in Europe discussed by Sergio Mauricio Menendez Medina, President of CEMEX Europe, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 7. | Presentation that includes information of CEMEX’s business and operations in Asia, the Middle East and Africa discussed by Joaquín Miguel Estrada Suarez, President of CEMEX Asia, Middle East and Africa, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 8. | Presentation that includes information of CEMEX’s business and operations in the United States of America discussed by Ignacio Madridejos Fernández, President of CEMEX USA, on March 20, 2019, during CEMEX’s annual event, CEMEX Day. | |
| 9. | Additional presentation related to CEMEX Day that includes information of CEMEX’s energy and sustainability topics. | |
4
Fernando A. González CEMEX CEO Salesforce Tower, USA Exhibit 1
2018 was a year of solid achievements 1) On a like-to-like basis 2) After maintenance CapEx 3) Including perpetuals Attained record Health & Safety results Launched A Stronger CEMEX to accelerate deleveraging and increase shareholder return Achieved top-line growth1 of 6% with higher volumes and prices in core products Generated ~$1B of Free Cash Flow2 used to reduce Total Debt3 by ~8% Proposed $150 M cash dividend and purchased $75 M under share buyback program Enhanced management team and corporate governance CEMEX Go full implementation
Resilient EBITDA generation despite headwinds… Var cost & distr. Fixed cost & other EBITDA variation ($ M) Volume +1% Price 18.9% EBITDA Margin 17.8% -1.1pp
…while generating ~$1B in FCF1 in each of last 3 years 1) After maintenance CapEx
399 881 1,685 1,290 918 2014 2015 2016 2017 2018 Free Cash Flow1 ($ M) reduction in annual net financial expense since 2013 ~$770 M 2018 FCF conversion2 36% Change in working capital FCF1 excluding change in working capital 1) After maintenance CapEx 2) Conversion of EBITDA into free cash flow after maintenance CapEx -89 2013
Contributing to our success since 2013 Generated $5.2 B of Free Cash Flow1 Asset sales of ~$3.6 B at mid-teen multiples Unlocked $1.1 B in working capital investment Reduced $7.1B of Total Debt2 or ~40% decline Operating expenses3 as percentage of sales declined 1.3pp Improved operating efficiency by 3.7 M tons of cement Delevered from 5.49x to 3.84x Improved our credit rating to BB, two notches from investment grade 1) After maintenance CapEx 2) Including perpetuals 3) Excluding distribution, depreciation and amortization
Slowing global growth Shift toward dovish monetary policies Cautious business sentiment Higher market volatility Reduced energy headwinds Strong labor markets and resilient consumer confidence Positive outlook for infrastructure spending in most markets Higher uncertainty and moderating global growth in 2019
Slowing global growth Shift toward dovish monetary policies Cautious business sentiment Higher market volatility Reduced energy headwinds Strong labor markets and resilient consumer confidence Positive outlook for infrastructure spending in most markets Balanced by key demand drivers
We are constructive on 2019 Expecting consolidated volume growth across all products on back of stronger infrastructure spending in most markets Positive pricing outlook due to demand dynamics and need to recover input cost inflation $230 M of cost initiatives of which $170 M expected to be realized in 2019 Energy headwinds to moderate Measurable gains from commercial strategies powered by CEMEX Go
And we expect markets to grow over next 4 years Philippines Strong growth (>6%) Solid growth (4% to 6%) Moderate growth (2% to 4%) Limited growth (1% to 2%) Stagnation (<1%) R 2018 Pricing (LC) Demand growth (2019-2022) Egypt UAE Israel
A Stronger CEMEX keeps us on track toward investment grade…
A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period. Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders $150 M dividends plus opportunistic share repurchases Growth and Capital Recycling Organic growth, divestments, and M&A Operational Initiatives $230 M cost savings program Portfolio Optimization $1.5 to 2.0 B asset sales
…and our medium-term financial targets
1) Consolidated funded debt/EBITDA 2) Conversion of EBITDA into free cash flow after maintenance CapEx 3) ROCE = Net Operating Profit After Tax/Net Assets Leverage ratio 1 ROCE 3 <3.0x FCF conversion 2 >50% EBITDA margin >10% >20% Financial targets
A superior customer experience enabled by digital technologies is well on its way
Customer Centricity
Implementing a digital transformation that is an industry first For all our products For all our segments Device agnostic Available 24/7 End-to-end platform
Fully implemented in all geographies Mexico & USA SCA&C Europe AME&A
Mexico & USA SCA&C Europe 90%+ targeted customers Fully implemented in all geographies AME&A
Mexico & USA SCA&C Europe 45%+ of orders 90%+ targeted customers Fully implemented in all geographies AME&A
Customer feedback Employee experience Emerging technologies Systems integration Benchmark market solutions Will continue transforming our industry
Realigned management to reflect strategic priorities CEO Fernando A. González Europe Sergio Menendez Supply Chain Jaime Elizondo USA Ignacio Madridejos Commercial Dev. Juan Romero SCA&C Jaime Muguiro Sustainability & Ops. Dev. Jesús González AMEA Joaquín Estrada Mexico Ricardo Naya IR, CC & PA Maher Al-Haffar Corp. Affairs & ERM Mauricio Doehner CFO José A. González Digital & Org. Dev. Luis Hernández Planning & Bus. Dev. Juan Pablo San Agustín New assignments/appointments
Remain committed to continually improving Environmental, Social and Governance practices Environmental Social Governance
We are making important contributions to a sustainable environment 1) Vs. 1990 baseline 13 M T of waste used as fuels and raw materials 7.9 M T of avoided CO2 emissions1 27% Alternative fuels utilization 26% Power from renewable sources -6pp Reduction in clinker factor1 1.4 M Emissions generated by electricity consumption 50 M Waste produced in a year Equivalent to:
Health & Safety Employee experience Communities Pursuing the well-being of our stakeholders
First year ever with zero employee fatalities Industry leader in employee LTI frequency rate of 0.5 96% of operations were injury-free Health & Safety Employee experience Communities LTI frequency rate: Lost time injuries per millions hours worked Pursuing the well-being of our stakeholders
Pursuing the well-being of our stakeholders 79% recommend CEMEX as a good place to work 89% recommend CEMEX products and services to family and friends Health & Safety Communities Employee experience
Pursuing the well-being of our stakeholders 16 M+ people positively impacted by social initiatives 100% of our cement plants have community engagement plans Health & Safety Employee experience Communities
Strengthening corporate governance 1) Subject to shareholder approval at Ordinary General Shareholders´ Meeting to be held on March 28, 2019 Separation of Chairman and CEO roles in 2014 60% of current Board members joined in last 4 years1 Reduced average tenure to 11, from 18 years in 20141 Improved Board diversity1 Improved content of proxy materials and disclosure process
What to expect from us Continue to improve Health & Safety performance Continue to implement A Stronger CEMEX Deliver solid top-line growth with pricing in excess of input costs Sustain FCF of ~$1 B per year supporting deleveraging path to reach < 3.0x target Provide a superior customer experience enabled by digital technologies Strengthen Environmental, Social and Governance practices
Casa Acolhúas, Mexico Juan Pablo San Agustín EVP Strategic Planning and New Business Development José Antonio González CFO Exhibit 2
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders $150 M dividends plus opportunistic share repurchases Growth and Capital Recycling Organic growth, divestments, and M&A Operational Initiatives $230 M cost savings program Portfolio Optimization $1.5 to 2.0 B asset sales
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders $150 M dividends plus opportunistic share repurchases Growth and Capital Recycling Organic growth, divestments, and M&A Operational Initiatives $230 M cost savings program Portfolio Optimization $1.5 to 2.0 B asset sales
$230 M of recurring operational improvements to be achieved by 2020 Low-cost sourcing Savings ($ M) $170 M to be captured in 2019
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic growth, divestments, and M&A Operational Initiatives $230 M cost savings program Portfolio Optimization $1.5 to 2.0 B asset sales $150 M dividends plus opportunistic share repurchases
Disciplined framework to identify our divestment pipeline 1) Assets as of December 31, 2017 2) Including integrated plants and standalone mills 3) Land distribution centers and marine terminals Cement plants2 Aggregates quarries Ready-Mix plants Terminals3 Non core + more value for others CEMEX asset pool $3 B pipeline 67 285 1,505 325 1
On track to reach our 2020 asset sale target 1) Refers to Baltics and Nordics assets for $390 M, Brazil $31 M, FAS and other $53 M 2) Includes sale of German assets (€87 M) and most of our white cement business ($180 M) 3) Non Binding Offers Divestments pipeline ($ B) TEV/EBITDA >12X 1 3 2
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic growth, divestments, and M&A Operational Initiatives $230 M cost savings program Portfolio Optimization $1.5 to 2.0 B asset sales $150 M dividends plus opportunistic share repurchases
Another year of robust deleveraging Note: Figures in USD Millions except Total Debt + Perps (USD Billions) Total Debt + Perps Net Financial Expense FCF after Maintenance CapEx Net Income
Recent transactions and credit upgrade enhance debt profile Fixed income Bank debt2 Issued €400 M of 3.125% notes due 2026 Partial redemption of the €550 M 4.375% notes due 2023 Consents received for1: Extending ~$1 B of Jul’20 and Jan’21 maturities for 3 years Incorporating IFRS 16 in calculations Credit rating Fitch Ratings upgrade to BB on the global scale and A+(mex) on the national scale Amendments to neutralize the effects of IFRS 16 (leases) adoption, capital expenditure limits, migration to net debt leverage and move leverage covenant step down to June 2020 Intention to implement on or shortly after April 1st. subject to customary closing conditions and documentation
1) Giving pro-forma effect to issuance of €400M of 3.125% notes due 2026 and partial redemption of €550M of 4.375% notes due 2023 and tenor extension of exchanging lenders and amendments becoming effective in bank debt agreement Bank Debt Pro-forma1 debt profile as of Dec. 31, 2018 (avg. life of 4.9 yrs) Convertible notes 2020 Notional amount US$521 M ADSs upon conversion 47.3 M Conversion price US$11.01 Public Debt Convertibles Healthy debt profile with attractive cash cost of debt 0.1 0.7 1.6 0.8 0.6 0.4 2.0 1.5 2.7 ~$1 B new bank debt maturity €400 M 3.125% Notes 2026
Significant upside from rerating of our cost of capital 1) Source: Company’s financial statements as of Jun’18, Sep’18 and Dec’18 as available; 2) If split rating, the highest is shown 3) Net Financial Leverage calculated as Net Debt divided by EBITDA, CEMEX Net Debt includes perpetual notes BBB- B+ BB- BB BB+ BBB BBB+ Fitch / S&P2 Net Financial Leverage1 Dec’14 3 Dec’18 3 Peers Other LATAM Industrials Other rating drivers: Size/Scale Diversification Operating efficiency Market position Financial policy Other
A Stronger CEMEX accelerates our path to investment grade 1) Asset divestments @10x TEV/EBITDA and FCF neutral 2) FCF of $1.0 B after considering possible dividend payment of $150 M during each year Investment grade metrics area x x 1 2
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic growth, divestments, and M&A Operational Initiatives $230 M cost savings program Portfolio Optimization $1.5 to 2.0 B asset sales $150 M dividends plus opportunistic share repurchases
Focused on shareholder value creation 1) Subject to shareholders approval in AGOM of March 2019 Returning cash to shareholders Dividends Share buybacks First cash dividend since 1996 $150 M dividend expected to be paid semiannually1 $75 M repurchased during 2018 (~1% of outstanding shares) Opportunistically activate share buyback program1
A Stronger CEMEX accelerates our path to investment grade A Stronger CEMEX initiatives and targets refer to the July 2018 – December 2020 period Accelerate Deleveraging Achieve <3x leverage & reduce Total Debt by $3.5 B by 2020 Return Capital to Shareholders Growth and Capital Recycling Organic growth, divestments, and M&A Operational Initiatives $230 M cost savings program Portfolio Optimization $1.5 to 2.0 B asset sales $150 M dividends plus opportunistic share repurchases
Capital recycling strategy maximizes value for shareholders Maximize shareholder value Identified $3 B of assets to optimize portfolio for growth Metropolis centric approach leveraging our related businesses and digital strategy Reach investment grade capital structure (leverage < 3x) by 2020 Portfolio Optimization Debt Repayment Growth
Multi-dimensional approach to complement our organic growth Detailed view of the markets at a metropolis level … … leveraging our current related business footprint Current related business EBITDA ≈ $200M Asphalt Pavement Multi products Modular construction Waste mgmt. Recycling Dry & special mortars Gypsum plasterboard Concrete products Landfill Admixtures
Boosted by CX Ventures’ quest for new value propositions across the construction ecosystem 4 roadshows +3,000 startups reviewed 6 investments signed 1 ConTech fund participation +700 ideas received 6 ideas under incubation BuiltWorlds Venture Investors 50 List 2018 Address pain points in the construction industry Accelerate technology adoption in the construction value chain Develop new sources of value creation Provide a superior customer experience leveraging digital technologies
What to expect from us Deliver $230 M benefit from cost savings program Optimize portfolio by divesting between $1.5 B to $2.0 B of assets Achieve leverage below 3.0x by 2020 Return cash to shareholders Create shareholder value through a cohesive growth strategy
Casa Acolhúas, Mexico
Exhibit 3
Luis Hernández EVP Digital and Organizational Development Juan Romero EVP Global Commercial Development Superior customer experience enabled by digital technologies
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiariesThese presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
Why is digital transformation critical to us? Innovative commercial Customer-driven world models to drive economic value Highly competitive Emerging business environment models Opportunities and risks New sources of presented by new revenue & growth technologiesWhy is digital transformation critical to us? Innovative commercial Customer-driven world models to drive economic value Highly competitive Emerging business environment models Opportunities and risks New sources of presented by new revenue & growth technologies
We know our customers We exceed PEOPLE their needs CUSTOMER TECHNOLOGY CENTRICITY DATA & ANALYTICS We monetize relationshipsWe know our customers We exceed PEOPLE their needs CUSTOMER TECHNOLOGY CENTRICITY DATA & ANALYTICS We monetize relationships
Empower innovation with clear priorities and agile, transparent and disciplined Digital transformation Prospect and invest in execution of our customer new value propositions experience and across the construction supporting operations ecosystem CUSTOMER CENTRICITY Empower innovation with clear priorities and agile, transparent and disciplined Digital transformation Prospect and invest in execution of our customer new value propositions experience and across the construction supporting operations ecosystem CUSTOMER CENTRICITY
Our digital solutions are evolving to offer customers a superior omnichannel experience Salesforce & Online Order Digital Service Agent Stores Fulfillment Marketing EnablementOur digital solutions are evolving to offer customers a superior omnichannel experience Salesforce & Online Order Digital Service Agent Stores Fulfillment Marketing Enablement
Driving impact • Augment growth by improving net promoter score (NPS) and reinforcing CEMEX’s position as the supplier of choice, driving customer loyalty and reducing churn • Reconfigure and optimize our sales force and service centers towards high value added activities • Utilize data and analytics to improve our business as well as that of our customers • Drive operational savings through automation, enabling self-service and paperless interactionsDriving impact • Augment growth by improving net promoter score (NPS) and reinforcing CEMEX’s position as the supplier of choice, driving customer loyalty and reducing churn • Reconfigure and optimize our sales force and service centers towards high value added activities • Utilize data and analytics to improve our business as well as that of our customers • Drive operational savings through automation, enabling self-service and paperless interactions
Digital transformation impacting our customers’ business What exists today… Housing Commerce and industry Infrastructure Self buildersDigital transformation impacting our customers’ business What exists today… Housing Commerce and industry Infrastructure Self builders
Digital transformation impacting our customers’ business Building for tomorrow… Ready Mix Online Store Housing Construrama.com Commerce and industry Infrastructure Construrama.com Self builders Last mile delivery Smart StoreDigital transformation impacting our customers’ business Building for tomorrow… Ready Mix Online Store Housing Construrama.com Commerce and industry Infrastructure Construrama.com Self builders Last mile delivery Smart Store
• 2,000 stores in MX • $2B in annual sales • 8,500 trucks to cover last mile delivery • Average 4,000 SKUs in store• 2,000 stores in MX • $2B in annual sales • 8,500 trucks to cover last mile delivery • Average 4,000 SKUs in store
Driving impact • Onboard all 2,000 Mexican Construrama stores to digital platforms by 2020 • Offer 20,000 SKUs online by 2020 • Gain insight into 35,000 professional end-customers • Drive $400-500M in online retail sales in Mexico by 2022Driving impact • Onboard all 2,000 Mexican Construrama stores to digital platforms by 2020 • Offer 20,000 SKUs online by 2020 • Gain insight into 35,000 professional end-customers • Drive $400-500M in online retail sales in Mexico by 2022
We have developed an innovation process to prioritize investments across the construction value chain Development Planning Construction Operations End usage Market Influencers Builders Distributors Industrial Manufacturers Vendors & SuppliersWe have developed an innovation process to prioritize investments across the construction value chain Development Planning Construction Operations End usage Market Influencers Builders Distributors Industrial Manufacturers Vendors & Suppliers
CEMEX Ventures has built an investment portfolio to complement existing digital offerings Development Planning Construction Operations End usage Market Influencers Construhub Ready Mix Online Store Builders Flexidesign Distributors Industrial Manufacturers Vendors & SuppliersCEMEX Ventures has built an investment portfolio to complement existing digital offerings Development Planning Construction Operations End usage Market Influencers Construhub Ready Mix Online Store Builders Flexidesign Distributors Industrial Manufacturers Vendors & Suppliers
Continue to transform customer experience, improving net promoter score (NPS) Reinforce position of our core digital storefronts, increasing adoption levels to 60-70% What to Onboard 100% customers to Construrama.com, reaching 35,000 end customers to drive expect $400-500 M in sales on digital stores from us Monetize data and analytics to improve commercial offerings (product, positioning, pricing) Continue disciplined investment in line with innovation map to establish entry pointContinue to transform customer experience, improving net promoter score (NPS) Reinforce position of our core digital storefronts, increasing adoption levels to 60-70% What to Onboard 100% customers to Construrama.com, reaching 35,000 end customers to drive expect $400-500 M in sales on digital stores from us Monetize data and analytics to improve commercial offerings (product, positioning, pricing) Continue disciplined investment in line with innovation map to establish entry point
Monterrey Data Center, MexicoMonterrey Data Center, Mexico
La ciudad de los archivos, Oaxaca, Mexico Ricardo Naya CEMEX Mexico Exhibit 4
Record-high EBITDA in local currency in 2018 3% 37.0% 2017 2018 Like-to-like 2018 Var. cost & dist. Fixed cost & other EBITDA margin EBITDA variation ($ M) 35.6% 5% -1.4 pp 1,145 129 113 58 11 23 1,199 1,176 -1.1 pp from product mix effect
Solid performance in spite of slow moving demand 1) Domestic gray cement Cement1 (M tons) EBITDA evolution ($ M) +4% -4% +1%
Challenging outlook in short run, with upside potential Formal Housing Self- Construction Industrial & Commercial Infrastructure Delays in rollout of new housing program and regulations are slowing down social housing demand Stable mortgage offer from public and private sectors Steady job creation and increase in minimum wage Consumer confidence at historic highs Natural slowdown in first year of federal government Potential upside from new government priority projects Continued growth in commercial and tourism sectors Manufacturing activity slowdown 25% 35% 25% 15% Sector Weight
Management focusing on key levers Pricing strategy Commercial growth strategy Step up momentum and recoup input cost inflation Rigorous cost containment efforts A Stronger CEMEX Increase revenues and explore new business opportunities Agile and flawless execution
Continue executing disciplined pricing strategy in 2019 Cement (LC/ton) Ready-mix (LC/m3) Aggregates (LC/ton) ‘18 ‘15 ‘16 ‘17 ‘15 ‘16 ‘17 ‘18 ‘15 ‘16 ‘17 ‘18 +18% +16% +3% +8% +10% +8% +7% +11% +8%
A Stronger CEMEX initiatives already in place Low-cost sourcing Identified savings ($ M)
Important efficiency gains underway Clinker factor (%) Production & supply chain optimization Optimize logistics Rationalize warehouse network Rebalance production capacity ‘16 ‘17 ‘18 ‘19 Mid term 73.9 71.0 73.3 65.0 ‘16 ‘17 ‘18 ‘19 Mid term > < Alternative fuel substitution (%)
An evolving strategy supported by digital technology to achieve a superior customer experience A revitalized and high performing organization Expand revenue opportunities from core value offers Innovate products & digital models to serve customers The customer always at the center Increase cross-selling Monetize value offers Superior employee experience Digital enablement From salesman to expert partners
Achieve and sustain Zero for Life Build a superior customer experience Reinforce cost containment efforts Enhanced contribution to sustainability What to expect from us Leverage our pricing efforts to recover input cost inflation
La ciudad de los archivos, Oaxaca, Mexico
Casa C-17, Colombia Jaime Muguiro CEMEX South, Central America and the Caribbean Exhibit 5
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
2018 EBITDA weighed down by energy costs and weakness in Central America 25.6% EBITDA margin EBITDA variation ($ M) 22.7% 22.7% -2.9pp 473 2017 -34 2018 Like-to-like TCL Group 2018 Var. cost & dist. Fixed cost & other 4 30 -76 14 410 404 2017 Like-to-like -6 477 -14%
EBITDA should improve once volumes in Colombia and Caribbean offset challenging markets in Central America… 1. CEMEX estimates National Cement Consumption1 (2019 – 2021 CAGR ) Decline (<0%) Limited Growth (0% to 2%) Growth (2% to 4%) Central America Colombia Caribbean TCL Group 2018 EBITDA breakdown
…and prices increase in markets with favorable dynamics Cement price variation (Feb. 2019 vs. Dec. 2018) Colombia Dominican Republic Barbados Guatemala Peru
Our differentiated commercial solutions and CEMEX Go should foster customer loyalty and premium pricing Technical consulting C-PRO Certification program Fully integrated portfolio Fully integrated portfolio Construction solutions Value-added concretes 47% of regional orders now placed through CEMEX Go Business consulting and training Multiproducts Microfinancing Construction projects referral Builders Industrials Distributors MIX3R
A Stronger CEMEX initiatives to reduce operating costs Low-cost sourcing Identified savings ($ M) Energy
What to expect from us Reach our Zero for Life target as soon as possible Resume EBITDA growth by leveraging Colombia’s cement demand recovery and favorable markets in the Caribbean Strengthen our market position through CEMEX Go and our commercial strategies Further reduce operating costs by ~$23 M in the next two years Continue increasing the sustainability of our business
C-17 House, Colombia
S6 Expressway, Poland Sergio Menéndez CEMEX Europe Exhibit 6
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
Strong pricing offsets higher input-cost inflation 10.3% EBITDA margin EBITDA variation ($ M) 9.7% 9.7% -0.6pp Var. cost & dist. Fixed cost & other 2018 Like-to-like -4% 0%
Three main factors driving Europe’s results in 2019 Positive industry dynamics Focus on key markets to drive organic growth A Stronger CEMEX: efficiency & optimization
Positive industry dynamics for 2019 So far, positive price traction in most of our markets Underlying demand continues to grow CO2 allowances price increase and new regulation for Phase IV Energy-cost increases slowing Driven by infrastructure and higher housing & commercial Higher electricity and diesel prices Triggering capacity rationalization
Underlying demand continues to grow Significant infrastructure projects Dynamic housing and commercial markets Growth in markets outside London Housing in Spain remains positive High demand for new housing in Czech Republic Foreign direct investment in commercial real estate High demand of housing boosting investments in building renovations €270 B 2030 Federal Transport Infrastructure Plan €100 B+ EU funds to Poland ~€55 B Grand Paris Express, Lyon-Turin tunnel, Seine-Nord Canal ~£30 B High speed 2 (2018-2024)
Well-positioned for new CO2 Phase IV regulation Price of CO2 allowances increased from €8 to €23 per ton in 2018 Tighter CO2 allowance allocations will impact production costs Likely mothballing of capacity and reduction of exports Proactively managing Phase IV, rationalizing capacity in Spain CEMEX has enough CO2 allowances for Phase IV 2021-2030
Leading the way in sustainability with 2020 goals 60% alternative fuels substitution 30% of electricity from renewable sources 30% reduction in CO2 emissions from 1990 baseline 100% biodiversity action plans in our quarries in priority habitat areas 25% Ready-mix products with enhanced sustainability attributes
A Stronger CEMEX: $75 M of savings initiatives Shifting to functional organization is maximizing synergies, agility of decision-making and execution Low-cost sourcing Identified savings ($ M)
Strong presence in key markets to drive organic growth 45 markets across Europe Digital technologies to improve customer experience Grow in related businesses in select markets Increase share of wallet Top 3 position in most markets Go-to-Market strategy focused on segments
What to expect from us Continue to improve Health and Safety performance Deliver price increases to recover input-cost inflation in all markets $50 M in efficiencies in 2019 and $75 M total by 2020 Additional organic growth and superior customer experience Deliver 2pp EBITDA margin expansion in 2019 Achieve sustainability targets
S6 Expressway, Poland
Dubai International Airport, United Arab Emirates Joaquín Estrada CEMEX Asia, Middle East & Africa Exhibit 7
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
16.4% EBITDA margin EBITDA variation ($ M) 14.4% 14.3% -2.1pp Philippines and Israel represent about 80% of EBITDA for the region Var. cost & dist. 2018 Like-to-like Fixed cost & other Pricing effective in offsetting input-cost inflation
-2% 1) Domestic gray cement Cement1 Ready-mix Aggregates +3% +0.3% Double-digit industry volume growth in the Philippines in first 9 months disrupted by landslide Challenge to recover input cost inflation in Egypt Mid-single-digit volume growth in Israel and UAE Achieved record volumes in Israel Focusing on profitable markets in Egypt Achieved record volumes in Israel Optimizing footprint in rest of markets +4% Volume growth Price growth (In USD) +2% +4% Healthy volume growth in key markets
AME&A (USD/ton) Philippines (USD/ton) Egypt (USD/ton) +16% 2017 2018 Cement unitary production cost1 +10% 2017 2018 +28% 2017 2018 1) Data considers variable production cost +7% +11% w/o Naga landslide w/o subsidies removal Input cost inflation expected to normalize going forward Cement cost increase due to energy and Philippines’ landslide
A Stronger CEMEX initiatives already in place Identified savings ($ M)
1) Based on kiln capacity Reaching 7.2 M tons of cement capacity by 4Q 2020 Philippines cement industry (M tons) ‘16 ‘17 ‘18 ’19e ´20e ’21e ´22e Demand Nominal capacity1 107% 119% 133% 120% 121% 113% 114% Demand as % of operational capacity1 Investing in one of the fastest growing markets in the world Operational capacity1
Resilient housing sector and mega projects Supply-side adjustment is necessary UAE 9% Dubai hosting Expo 2020 and infrastructure expansion Robust housing sector with more affordable pricing Demand outlook for region remains robust 1) Percentages refer to 2018 EBITDA before eliminations of AME&A Philippines 40% Israel 39% Egypt 12% Demand buoyed by middle-class growth, urbanization and persistent affordable housing deficit Public construction growth supported by government’s ambitious infrastructure program Major infrastructure projects Growing formal housing sector generating record volumes Industrial & Commercial backed by solid economy Country (% of EBITDA1)
What to expect from us Build on safety performance improvements Focus on profitable markets Pricing efforts to at least recover energy input-cost inflation Optimization of supply-chain costs Maintain the highest kiln operational efficiency in CEMEX Successful execution of Philippines plant expansion Continue supporting community-related programs mainly in Philippines and Egypt
Dubai International Airport, United Arab Emirates
Texas Tower, USA Ignacio Madridejos CEMEX USA Exhibit 8
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
2018 EBITDA driven by top-line growth Note: EBITDA is on a like-to-like basis 17.5% EBITDA margin EBITDA variation ($ M) 17.2% -0.3pp
Key states likely to outperform U.S. average U.S. total cement demand (M tons) 1) CAGR from 2018 to 2023 2) CEMEX key states refers to Arizona, California, Florida and Texas Source: U.S. Geological Survey, CEMEX estimates Residential cement demand (2019e YoY %) CX key states2 Streets & highways cement demand (2019e YoY %) CX key states2 Practical Capacity 1
Offering superior customer experience Los Angeles, CA – Sixth Street Viaduct Strong position in key metro markets Unique capabilities to serve large scale and complex projects San Francisco, CA – Salesforce Tower Digital technology offering, working hand in hand with our customers Quality products and sustainable solutions Orlando, FL – Kennedy Concrete Small-end customers offering Schedule flexibility and quick turnaround Digital marketing approach
Pricing expected to compensate for cost inflation Price Cement (LC/ton) Ready-mix (LC/m3) Aggregates (LC/ton)
Cost headwinds expected to subside Total unitary cost1 Cement (LC/ton) Ready-mix (LC/m3) Aggregates (LC/ton) 1) Total unitary cost includes manufacturing, distribution, SG&A, imports and others
Total 2019 + 2020 A Stronger CEMEX initiatives to improve profitability Identified savings ($ M)
What to expect from us Continue prioritizing health and safety to achieve Zero for Life Leverage our presence in key markets to outperform national growth Implement pricing strategies that reflect input-cost inflation Capture full value of our products through superior customer experience Pursue selective organic growth opportunities to increase top line Improve profitability through A Stronger CEMEX initiatives
Texas Tower, USA
L House, Mexico Jesús González Energy and Sustainability Exhibit 9
These presentations contain forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements, and in particular in the case of CEMEX’s new plan, “A Stronger CEMEX”, reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CEMEX or its subsidiaries, include, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as but not limited to the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and of anti-trust laws and as such, among business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, as well as any inherent risk to international operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability to satisfy CEMEX’s obligations under CEMEX’s material debt agreements, the indentures that govern CEMEX’s outstanding senior secured notes and CEMEX’s other debt instruments; the availability of short-term credit lines, assisting in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; loss of reputation of our brands; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products, including CEMEX’s “A Stronger CEMEX” plan; the increasing reliance on information technology infrastructure for CEMEX’s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX’s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions including disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements , including the United States-Mexico-Canada Agreement (USMCA), if it comes into effect, and the North American Free Trade Agreement (NAFTA), both of which Mexico is a party to; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; natural disasters and other unforeseen events; and the other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements, after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances. CEMEX’s “A Stronger CEMEX” plan is designed based on CEMEX’s current beliefs and expectations. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. CEMEX assumes no obligation to update or correct the information contained in these presentations. CEMEX acts in strict compliance of antitrust laws and as such, among other measures, maintains an independent pricing policy that has been independently developed and its core element is to price CEMEX’s products and services based upon their quality and characteristics as well as their value to CEMEX’s customers. CEMEX does not accept any communications or agreements of any type with competitors regarding the determination of CEMEX’s prices for CEMEX’s products and services. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS. Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
Energy is one of the most important costs for CEMEX $1.6 B 13% 22% 19% Information as of 2018
Despite higher prices, energy strategy has paid off 122% 153% 158% 161% 191% 168%
Hedging strategy has reduced volatility For 2019, about 40% of our energy expenditure is fixed CEMEX energy pricing structure (2019) 24% 54% 46%
Fuel mix for cement is constantly evolving, always in search of the lowest-cost and most sustainable… 40% Biomass Our alternative fuel strategy has generated ~$1.3 B in savings1 since 2006 1) Savings estimated considering the fossil fuel mix that would have been consumed in the absence of alternative fuels
Implementing a comprehensive CO2 reduction strategy 7.9 M tons of avoided CO2 emissions vs. 1990 baseline, equivalent to the electricity use of 1.4 M homes in one year Specific net CO2 emissions 2018 vs.1990 (kg CO2/ton cementitious) -21.6% Alternative fuels (with biomass content) Main CO2 reduction levers moving forward Outlook in Europe ETS - Phase IV runs from 2021 to 2030 - Enough CO2 allowances to cover us through 2030 Lower clinker factor (alternative raw materials) Low temp. clinker, low CO2 clinker & other novel technologies
Best performance in Health & Safety 0 Employee fatalities First year ever with zero employee fatalities LTI: Lost time injuries Employee LTI frequency rate (LTI per million hours worked) 96% of our operations were injury-free in 2018
Proactive sustainability strategy recognized by ESG indexes Created a Board Sustainability Committee in 2014, it meets quarterly EVP of Sustainability & Operations Development created in 2017 Manage and report our business on an integrated basis since 2016 Portfolio of products and services for sustainable construction & urban development Proactive climate change strategy & renewable energy supply Robust environmental management to minimize air emissions, waste and water consumption High impact social programs to improve welfare of communities
L House, Mexico