Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

 

 

For the month of April, 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.    Press release, dated April 25, 2019, announcing first quarter 2019 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
2.    First quarter 2019 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
3.    Presentation regarding first quarter 2019 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

       

CEMEX, S.A.B. de C.V.

        (Registrant)
       
Date:   April 25, 2019       By:   /s/ Rafael Garza Lozano
 

 

       

 

         

Name: Rafael Garza Lozano

         

Title: Chief Comptroller

 

3


EXHIBIT INDEX

 

EXHIBIT
NO.
  

DESCRIPTION

1.    Press release, dated April 25, 2019, announcing first quarter 2019 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
2.    First quarter 2019 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
3.    Presentation regarding first quarter 2019 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).

 

4

Press release, dated April 25 , 2019

Exhibit 1

 

Media Relations

Andrea Castro Velez

  

Investor Relations

Pablo Gutiérrez

+57 (1) 603-9134

andrea.castro@cemex.com

  

+57 (1) 603-9051

pabloantonio.gutierrez@cemex.com

 

LOGO

CEMEX LATAM HOLDINGS REPORTS

FIRST QUARTER 2019 RESULTS

 

   

Free cash flow reached US$17 million during the quarter, an improvement of US$45 million compared to that of the same period of 2018

 

   

Our controlling interest net income reached US$16 million during the quarter

 

   

Our net debt was reduced by US$30 million during the first quarter of 2019, from US$827 million as of December, to US$797 million as of March

BOGOTA, COLOMBIA. APRIL 25, 2019 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that consolidated net sales reached US$258 million during the first quarter of 2019, a decline of 12% in U.S. dollar terms, or of 4% in local-currency terms, compared to those of the same period of 2018. Operating EBITDA reached US$55 million during the first quarter, a decline of 19% in U.S. dollar terms, or of 14% in local-currency terms, on a year-over-year basis.

During the first quarter of 2019, our consolidated domestic gray cement, ready-mix and aggregates volumes decreased by 1%, 4% and 11%, respectively, compared to those of the first quarter of 2018. Our consolidated prices in local-currency terms for domestic gray cement and ready-mix decreased by 1% and 2%, respectively, while for aggregates increased by 3%, during the quarter on a year over year basis.

Jaime Muguiro, CEO of CLH, said, “We are encouraged by the positive trends in Colombian national cement demand and by our cement volume and price performance during the quarter. Nevertheless, this positive trend in Colombia is not strong enough to offset weak markets across Central America. To respond to this challenging environment, we launched the cost saving program “Stronger CEMEX”, that would deliver up to US$10 million of savings per year. So far we have captured US$3 million”

Jaime Muguiro added, “Despite this challenging environment, we are very pleased with our free cash flow generation and debt reduction during the first quarter. Our free cash flow reached US$17 million dollars during this period, an improvement of US$45 million compared to that of the same quarter of 2018. Our net debt was reduced by US$30 million dollars during this period, from US$827 million as of December, to US$797 million as of March.”

Consolidated Corporate Results

During the first quarter, controlling interest net income was US$16 million, compared to US$30 million during the same quarter of 2018.

Geographical Markets First Quarter 2019 Highlights

Operating EBITDA in Colombia reached US$22 million, 13% lower in U.S. dollar terms, or 4% lower in local-currency terms, compared to that of the first quarter of 2018. Net sales during the quarter declined by 6% in U.S.-dollar terms, but increased by 4 percent in local-currency terms, to US$128 million during the first quarter of 2019.

 

1


In Panama, operating EBITDA decreased by 33% to US$14 million during the quarter. Net sales reached US$50 million during the first quarter of 2019, a 18% decline compared to those of the same period of 2018.

In Costa Rica, operating EBITDA reached US$10 million during the quarter, 3% higher in U.S. dollar terms, or 10% higher in local-currency terms, on a year-over-year basis. Net sales reached US$28 million, a decline of 22% in U.S. dollar terms, or of 17% in local-currency terms, compared to those of the first quarter of 2018.

In the Rest of CLH operating EBITDA declined by 22% in U.S. dollar terms, or by 19% in local-currency terms, to US$17 million during the quarter. Net sales reached US$57 million during the first quarter of 2019, 10% lower in U.S. dollar terms, or 6% lower in local-currency terms, compared to those of the same period of 2018.

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.

###

This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of CLH to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CLH does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy, changes derived from events affecting CEMEX, S.A.B de C.V. and subsidiaries (“CEMEX”) and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CLH assumes no obligation to update or correct the information contained in this press release.

Operating EBITDA is defined as operating earnings before other expenses, net plus depreciation and operating amortization. Free Cash Flow is defined as operating EBITDA minus net interest expense, maintenance and expansion capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation). All of the above items are prepared under International Financial Reporting Standards as issued by the International Accounting Standards Board. Operating EBITDA and Free Cash Flow (as defined above) are presented herein because CLH believes that they are widely accepted as financial indicators of CLH’s ability to internally fund capital expenditures and service or incur debt. Operating EBITDA and Free Cash Flow should not be considered as indicators of CLH’s financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.

 

2

First quarter 2019 results for CEMEX Latam Holdings, S..A.

Exhibit 2

 

LOGO

Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutiérrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com 2019 FIRST QUARTER RESULTS


LOGO

OPERATING AND FINANCIAL HIGHLIGHTS January - March First Quarter 2019 2018 % var 2019 2018 % var Consolidated cement volume 1,626 1,694 (4%) 1,626 1,694 (4%) Consolidated domestic gray cement volume 1,453 1,462 (1%) 1,453 1,462 (1%) Consolidated ready-mix volume 642 670 (4%) 642 670 (4%) Consolidated aggregates volume 1,489 1,677 (11%) 1,489 1,677 (11%) Net sales 258 292 (12%) 258 292 (12%) Gross profit 104 125 (17%) 104 125 (17%) as % of net sales 40.1% 42.7% (2.6pp) 40.1% 42.7% (2.6pp) Operating earnings before other expenses, net 34 47 (28%) 34 47 (28%) as % of net sales 13.2% 16.1% (2.9pp) 13.2% 16.1% (2.9pp) Controlling interest net income (loss) 16 30 (48%) 16 30 (48%) Operating EBITDA 55 68 (19%) 55 68 (19%) as % of net sales 21.2% 23.2% (2.0pp) 21.2% 23.2% (2.0pp) Free cash flow after maintenance capital 17 -28 N/A 17 -28 N/A expenditures Free cash flow 17 -28 N/A 17 -28 N/A Net debt 797 926 (14%) 797 926 (14%) Total debt 835 958 (13%) 835 958 (13%) Earnings of continuing operations per share 0.03 0.06 (49%) 0.03 0.06 (49%) Shares outstanding at end of period 557 557 0% 557 557 0% Employees 4,167 4,654 (10%) 4,167 4,654 (10%) 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 first quarter of 2019 declined by 12% compared to those of the first quarter of 2018. The decline in net sales was mainly due to lower consolidated volumes and lower consolidated prices, in U.S. dollar terms. Cost of sales as a percentage of net sales during the quarter increased by 2.6pp from 57.3% to 59.9%, on a year-over-year basis. Operating expenses as a percentage of net sales during the first quarter increased by 0.3pp from 26.6% to 27.0%, compared to those of 2018. Operating EBITDA during the first quarter of 2019 declined by 19% compared to that of the first quarter of 2018. This decline is mainly due to lower volumes, increased energy and distribution costs, as well as the U.S. dollar appreciation. Operating EBITDA margin during the first quarter of 2019 declined by 2.0pp, compared to that of the first quarter of 2018. Controlling interest net income during the first quarter of 2019 reached US$16 million, compared to US$30 million during the same period of 2018. Total debt at the end of the quarter declined to US$835 million, 13% lower than that of 2018. 2019 First Quarter Results Page 2


LOGO

OPERATING RESULTS Colombia January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 128 136 (6%) 128 136 (6%) Operating EBITDA 22 25 (13%) 22 25 (13%) Operating EBITDA margin 17.1% 18.5% (1.4pp) 17.1% 18.5% (1.4pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume 8% 8% 8% 8% (4%) (4%) Price (USD) (8%) (8%) (10%) (10%) (3%) (3%) Price (local currency) 2% 2% (1%) (1%) 8% 8% Year-over-year percentage variation. In Colombia during the first quarter, both our domestic gray cement and ready-mix volumes increased by 8%, while our aggregates volumes declined by 4%, compared to those of the first quarter of 2018. The positive trend in Colombian national cement demand observed since August of last year, continued during the first quarter of 2019. We estimate that national cement demand during the quarter increased by 3%, or by 2% adjusting for an additional working day. We are pleased with our cement volume and price performance during the quarter. Our volumes on a year-over-year basis increased by 8%, or by 7% adjusting for one additional working day, while our cement prices in local-currency terms increased by 2% and 3% on a year-over-year and sequential basis, respectively. Panama January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 50 61 (18%) 50 61 (18%) Operating EBITDA 14 21 (33%) 14 21 (33%) Operating EBITDA margin 27.7% 33.6% (5.9pp) 27.7% 33.6% (5.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume (14%) (14%) (29%) (29%) (31%) (31%) Price (USD) (5%) (5%) (2%) (2%) (4%) (4%) Price (local currency) (5%) (5%) (2%) (2%) (4%) (4%) Year-over-year percentage variation. In Panama, during the first quarter our domestic gray cement, ready-mix and aggregates volumes declined by 14%, 29%, and 31%, respectively, compared to those of the first quarter of 2018. We estimate that industry demand declined by 12%, or by 13% adjusting for one additional working day. Lower cement demand was due to high levels of inventory in apartments and offices, as well as to project delays in the infrastructure sector. We are optimistic in the infrastructure sector going forward, as relevant projects should begin soon. Our cement volumes during the first quarter declined by 14%, or by 15% adjusting for one additional working day, compared with those of the same period of 2018. 2019 First Quarter Results Page 3


LOGO

OPERATING RESULTS Costa Rica January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 28 36 (22%) 28 36 (22%) Operating EBITDA 10 10 3% 10 10 3% Operating EBITDA margin 35.6% 26.8% 8.8pp 35.6% 26.8% 8.8pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume (20%) (20%) (8%) (8%) 20% 20% Price (USD) (4%) (4%) 2% 2% (9%) (9%) Price (local currency) 2% 2% 9% 9% (3%) (3%) Year-over-year percentage variation. In Costa Rica, during the first quarter our domestic gray cement and ready-mix volumes declined by 20% and 8%, respectively, while our aggregates volumes increased by 20%, compared to those of the first quarter of 2018. We estimate that national cement consumption during the quarter declined by 9%, or by 12% adjusting for two additional working days. Uncertainty around the fiscal reform and increasing government financing needs affected consumer and business confidence, particularly impacting volumes to the industrial-and-commercial and residential sectors. Regarding pricing, our cement and ready-mix prices in local-currency terms improved by 2% and 9%, respectively, on a year-over-year basis. The improvement in ready-mix prices reflects a favorable project-mix, as well as the positive impact of incremental services and surcharges. Rest of CLH January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 57 63 (10%) 57 63 (10%) Operating EBITDA 17 22 (22%) 17 22 (22%) Operating EBITDA margin 30.2% 35.1% (4.9pp) 30.2% 35.1% (4.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume (5%) (5%) (39%) (39%) (62%) (62%) Price (USD) (3%) (3%) (0%) (0%) 0% 0% Price (local currency) 1% 1% 4% 4% 5% 5% Year-over-year percentage variation. In the Rest of CLH, region which includes our operations in Nicaragua, Guatemala and El Salvador, during the first quarter our domestic gray cement, ready-mix and aggregates volumes declined by 5%, 39% and 62%, respectively, compared to those of the first quarter of 2018. In Nicaragua, the socio-political crisis remains unresolved one year after its initiation and continues to take a toll in economic activity and cement demand. Our cement volumes during the quarter declined by 19% year-over-year and by 4% sequentially. With regards to Guatemala, we estimate that national-cement demand increased in the mid- to high- single digits during the quarter, supported by improved construction activity related to the general elections which will take place in June, as well as higher volumes to the residential sector. Our cement volumes during the quarter increased by 4%. 2019 First Quarter Results Page 4


LOGO

 

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January - March First Quarter 2019 2018 % var 2019 2018 % var Operating earnings before other expenses, net 34 47 (28%) 34 47 (28%) + Depreciation and operating amortization 21 21 21 21 Operating EBITDA 55 68 (19%) 55 68 (19%) - Net financial expense 14 15 14 15 - Capital expenditures for maintenance 5 7 5 7 - Change in working Capital 6 34 6 34 - Taxes paid 13 12 13 12 - Other cash items (Net) (1) 26 (1) 26 - Free cash flow discontinued operations 0 2 0 2 Free cash flow after maintenance capital exp 17 (28) n/a 17 (28) n/a - Strategic Capital expenditures 0 1 0 1 Free cash flow 17 (28) n/a 17 (28) n/a In millions of US dollars, except percentages. Information on Debt First Quarter Fourth Quarter 2019 2018 % var 2018 Total debt 1, 2 835 958 864 Short term 1% 36% 1% Long term 99% 64% 99% Cash and cash equivalents 38 32 17% 37 Net debt 797 926 (14%) 827 Net debt / EBITDA 3.4x 3.2x 3.3x First Quarter 2019 2018 Currency denomination U.S. dollar 99% 98% Colombian peso 1% 2% Interest rate Fixed 59% 64% Variable 41% 36% In millions of US dollars, except percentages. 1 Includes leases, in accordance with International Financial Reporting Standards (IFRS). 2 Represents the consolidated balances of CLH and subsidiaries. 2019 First Quarter Results Page 5


LOGO

 

OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts January - March First Quarter INCOME STATEMENT 2019 2018 % var 2019 2018 % var Net sales 258,224 291,885 (12%) 258,224 291,885 (12%) Cost of sales (154,663) (167,253) 8% (154,663) (167,253) 8% Gross profit 103,561 124,632 (17%) 103,561 124,632 (17%) Operating expenses (69,597) (77,665) 10% (69,597) (77,665) 10% Operating earnings before other expenses, net 33,964 46,967 (28%) 33,964 46,967 (28%) Other expenses, net 63 (1,372) n/a 63 (1,372) n/a Operating earnings 34,027 45,595 (25%) 34,027 45,595 (25%) Financial expenses (13,856) (15,160) 9% (13,856) (15,160) 9% Other income (expenses), net 2,772 18,621 (85%) 2,772 18,621 (85%) Net income before income taxes 22,943 49,056 (53%) 22,943 49,056 (53%) Income tax (7,303) (18,187) 60% (7,303) (18,187) 60% Profit of continuing operations 15,640 30,869 (49%) 15,640 30,869 (49%) Discontinued operations 0 (858) 100% 0 (858) 0% Consolidated net income 15,640 30,011 (48%) 15,640 30,011 (48%) Non-controlling Interest Net Income (39) (68) 43% (39) (68) 43% Controlling Interest Net Income 15,601 29,943 (48%) 15,601 29,943 (48%) Operating EBITDA 54,638 67,671 (19%) 54,638 67,671 (19%) Earnings of continued operations per share 0.03 0.06 (49%) 0.03 0.06 (49%) Earnings of discontinued operations per share 0.00 (0.00) 100% 0.00 (0.00) 100% as of March 31 BALANCE SHEET 2019 2018 % var Total Assets 3,063,137 3,381,196 (9%) Cash and Temporary Investments 38,050 30,571 24% Trade Accounts Receivables 86,219 138,486 (38%) Other Receivables 48,287 59,514 (19%) Inventories 84,361 80,415 5% Assets held for sale 0 66,304 (100%) Other Current Assets 36,048 35,888 0% Current Assets 292,965 411,178 (29%) Fixed Assets 1,183,429 1,301,239 (9%) Other Assets 1,586,743 1,668,779 (5%) Total Liabilities 1,518,648 1,790,549 (15%) Liabilities available for sale 0 24,376 (100%) Other Current Liabilities 286,453 658,849 (57%) Current Liabilities 286,453 683,225 (58%) Long-Term Liabilities 1,214,257 1,092,984 11% Other Liabilities 17,938 14,340 25% Consolidated Stockholders’ Equity 1,544,489 1,590,647 (3%) Non-controlling Interest 5,268 6,439 (18%) Stockholders’ Equity Attributable to Controlling Interest 1,539,221 1,584,208 (3%) 2019 First Quarter Results Page 6


LOGO

 

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 - March First Quarter INCOME STATEMENT 2019 2018 % var 2019 2018 % var Net sales 809,985 825,116 (2%) 809,985 825,116 (2%) Cost of sales (485,141) (472,801) (3%) (485,141) (472,801) (3%) Gross profit 324,844 352,315 (8%) 324,844 352,315 (8%) Operating expenses (218,308) (219,545) 1% (218,308) (219,545) 1% Operating earnings before other expenses, net 106,536 132,770 (20%) 106,536 132,770 (20%) Other expenses, net 199 (3,880) n/a 199 (3,880) n/a Operating earnings 106,735 128,890 (17%) 106,735 128,890 (17%) Financial expenses (43,467) (42,855) (1%) (43,462) (42,855) (1%) Other income (expenses), net 8,696 52,639 (83%) 8,696 52,639 (83%) Net income before income taxes 71,965 138,674 (48%) 71,965 138,674 (48%) Income tax (22,906) (51,412) 55% (22,906) (51,412) 55% Profit of continuing operations 49,059 87,262 (44%) 49,060 87,262 (44%) Discontinued operations 0 (2,426) 100% 0 (2,426) 100% Consolidated net income 49,059 84,836 (42%) 49,060 84,836 (42%) Non-controlling Interest Net Income (121) (193) 37% (121) (193) 37% Controlling Interest Net Income 48,938 84,643 (42%) 48,936 84,643 (42%) Operating EBITDA 171,387 191,295 (10%) 171,387 191,295 (10%) Earnings of continued operations per share 88 157 (44%) 88 157 (44%) Earnings of discontinued operations per share 0 (4) (100%) 0 (4) 100% as of March 31 BALANCE SHEET 2019 2018 % var Total Assets 9,724,815 9,401,313 3% Cash and Temporary Investments 120,802 85,003 42% Trade Accounts Receivables 273,727 385,055 (29%) Other Receivables 153,301 165,477 (7%) Inventories 267,829 223,591 20% Assets held for sale 0 184,356 (100%) Other Current Assets 114,444 99,787 15% Current Assets 930,103 1,143,269 (19%) Fixed Assets 3,757,138 3,618,055 4% Other Assets 5,037,574 4,639,989 9% Total Liabilities 4,821,386 4,978,568 (3%) Liabilities available for sale 0 67,777 (100%) Other Current Liabilities 909,426 1,831,911 (50%) Current Liabilities 909,426 1,899,688 (52%) Long-Term Liabilities 3,855,012 3,039,008 27% Other Liabilities 56,948 39,872 43% Consolidated Stockholders’ Equity 4,903,429 4,422,745 11% Non-controlling Interest 16,724 17,904 (7%) Stockholders’ Equity Attributable to Controlling Interest 4,886,705 4,404,841 11% 2019 First Quarter Results Page 7


LOGO

 

OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales January - March First Quarter 2019 2018 % var 2019 2018 % var NET SALES Colombia 128,066 136,143 (6%) 128,066 136,143 (6%) Panama 50,024 61,296 (18%) 50,024 61,296 (18%) Costa Rica 27,757 35,699 (22%) 27,757 35,699 (22%) Rest of CLH 56,571 62,863 (10%) 56,571 62,863 (10%) Others and intercompany eliminations (4,194) (4,116) (2%) (4,194) (4,116) (2%) TOTAL 258,224 291,885 (12%) 258,224 291,885 (12%) GROSS PROFIT Colombia 48,485 52,184 (7%) 48,485 52,184 (7%) Panama 17,809 25,329 (30%) 17,809 25,329 (30%) Costa Rica 14,171 14,143 0% 14,171 14,143 0% Rest of CLH 22,941 27,825 (18%) 22,941 27,825 (18%) Others and intercompany eliminations 155 5,151 (97%) 155 5,151 (97%) TOTAL 103,561 124,632 (17%) 103,561 124,632 (17%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 14,889 17,991 (17%) 14,889 17,991 (17%) Panama 9,167 16,599 (45%) 9,167 16,599 (45%) Costa Rica 8,666 8,325 4% 8,666 8,325 4% Rest of CLH 15,265 20,042 (24%) 15,265 20,042 (24%) Others and intercompany eliminations (14,023) (15,990) 12% (14,023) (15,990) 12% TOTAL 33,964 46,967 (28%) 33,964 46,967 (28%) OPERATING EBITDA Colombia 21,885 25,244 (13%) 21,885 25,244 (13%) Panama 13,842 20,620 (33%) 13,842 20,620 (33%) Costa Rica 9,880 9,563 3% 9,880 9,563 3% Rest of CLH 17,110 22,060 (22%) 17,110 22,060 (22%) Others and intercompany eliminations (8,079) (9,816) 18% (8,079) (9,816) 18% TOTAL 54,638 67,671 (19%) 54,638 67,671 (19%) OPERATING EBITDA MARGIN Colombia 17.1% 18.5% 17.1% 18.5% Panama 27.7% 33.6% 27.7% 33.6% Costa Rica 35.6% 26.8% 35.6% 26.8% Rest of CLH 30.2% 35.1% 30.2% 35.1% TOTAL 21.2% 23.2% 21.2% 23.2% 2019 First Quarter Results Page 8


LOGO

 

OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters January - March First Quarter 2019 2018 % var 2019 2018 % var Total cement volume 1 1,626 1,694 (4%) 1,626 1,694 (4%) Total domestic gray cement volume 1,453 1,462 (1%) 1,453 1,462 (1%) Total ready-mix volume 642 670 (4%) 642 670 (4%) Total aggregates volume 1,489 1,677 (11%) 1,489 1,677 (11%) 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Per-country volume summary January - March First Quarter First Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Fourth Quarter 2018 DOMESTIC GRAY CEMENT Colombia 8% 8% (3%) Panama (14%) (14%) (0%) Costa Rica (20%) (20%) 1% Rest of CLH (5%) (5%) (4%) READY-MIX Colombia 8% 8% 5% Panama (29%) (29%) (11%) Costa Rica (8%) (8%) (12%) Rest of CLH (39%) (39%) (42%) AGGREGATES Colombia (4%) (4%) 3% Panama (31%) (31%) (5%) Costa Rica 20% 20% 3% Rest of CLH (62%) (62%) (1%) 2019 First Quarter Results Page 9


LOGO

 

OPERATING RESULTS Price Summary Variation in U.S. dollars January - March First Quarter First Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Fourth Quarter 2018 DOMESTIC GRAY CEMENT Colombia (8%) (8%) 6% Panama (5%) (5%) (3%) Costa Rica (4%) (4%) (0%) Rest of CLH (3%) (3%) 1% READY-MIX Colombia (10%) (10%) 4% Panama (2%) (2%) (2%) Costa Rica 2% 2% (2%) Rest of CLH (0%) (0%) 5% AGGREGATES Colombia (3%) (3%) 4% Panama (4%) (4%) (8%) Costa Rica (9%) (9%) (4%) Rest of CLH 0% 0% 3% For Rest of CLH, volume-weighted average prices. Variation in local currency January - March First Quarter First Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Fourth Quarter 2018 DOMESTIC GRAY CEMENT Colombia 2% 2% 3% Panama (5%) (5%) (3%) Costa Rica 2% 2% (0%) Rest of CLH 1% 1% 1% READY-MIX Colombia (1%) (1%) 1% Panama (2%) (2%) (2%) Costa Rica 9% 9% (2%) Rest of CLH 4% 4% 5% AGGREGATES Colombia 8% 8% 1% Panama (4%) (4%) (8%) Costa Rica (3%) (3%) (3%) Rest of CLH 5% 5% 4% For Rest of CLH, volume-weighted average prices. 2019 First Quarter Results Page 10


LOGO

 

DEFINITIONS OF TERMS AND DISCLOSURES IFRS 16, Leases (“IFRS 16”) Beginning January 1, 2019, IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize, for all leases, allowing exemptions in case of leases with a term of less than 12 months or when the underlying asset is of low value, assets for the right-of-use the underlying asset against a corresponding financial liability, representing the net present value of estimated lease payments under the contract, with a single income statement model in which a lessee recognizes amortization of the right-of-use asset and interest on the lease liability. After concluding the inventory and measurement of its leases, CEMEX Latam adopted IFRS 16 using the full retrospective approach by means of which it determined an opening cumulative effect in its statement of financial position as of January 1, 2018 as follows: (Millions of dollars) January 1st, 2018 Assets for the Right-of-use $ 15.7 Deferred tax assets $ 2.8 Lease financial liabilities $ (23.0) Deferred tax liabilities $ (0.7) Retained earnings1 $ (5.2) 1 The initial effect in retained earnings refers to a temporary difference between the straight-line amortization expense of the right-of-use asset against the amortization of the financial liability under the effective interest rate method since origination of the contracts. This difference will reverse over the remaining term of the contracts. CEMEX Latam modified the previously reported income statement for the three-month period ended March 31, 2018 to give effect to the retrospective adoption of IFRS 16, as follows: Selected information Original Modified Income Statement Reported (Millions of dollars) Jan-Mar 1Q Jan-Mar 1Q Revenues 291.9 291.9 291.9 291.9 Cost of sales (167.7) (167.7) (167.2) (167.2) Operating expenses (77.8) (77.8) (77.7) (77.7) Other expenses, net (1.4) (1.4) (1.4) (1.4) Financial (expense) income and others 4.0 4.0 3.5 3.5 Earnings before income tax 49.1 49.1 49.1 49.1 Income tax (18.2) (18.2) (18.2) (18.2) Earnings from continuing operations 30.9 30.9 30.9 30.9 As of March 31, 2019, and December 31, 2018, assets for the right-of-use amounted to $17.4 million and $14.9 million, respectively. In addition, financial liabilities related to lease contracts amounted to $24.3 million as of March 31, 2019 and $22.3 million as of December 31, 2018 and were included within “Debt and other financial liabilities”. 2019 First Quarter Results Page 11


LOGO

 

DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates are provided below. Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Discontinued operations and assets held for sale On September 27, 2018, after receiving the corresponding authorizations by local authorities, CEMEX Latam concluded the disposal of its construction materials operations in Brazil to Votorantim Cimentos N/NE S.A., comprised of a fluvial cement distribution terminal located in Manaus, Amazonas state and its operating license. The selling price was approximately US$31 million including working capital adjustments. CEMEX Latam’s operations in Brazil for the three-month period ended March 31, 2018 were reclassified and reported net of tax in the single line item “Discontinued Operations”. The following table presents condensed combined information of the income statements of CEMEX Latam discontinued operations in its operating segment in Brazil for the three-month period ended March 31, 2018: INCOME STATEMENT Jan - Mar First Quarter (Millions of dollars) 2019 2018 2019 2018 Sales - 9.2 - 9.2 Cost of sales and operating - (10.2) - (10.2) Other expenses, net - (0.1) - (0.1) Interest expense, net and others - 0.0 - 0.0 Income (loss) before income tax - (1.0) - (1.0) Income tax - 0.1 - 0.1 Loss of discontinued operations - (0.9) - (0.9) Result in sale, withholding and Fx reclassification - - - - Net loss of discontinued operations - (0.9) - (0.9) Consolidated financial information When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries. Presentation of financial and operating information Individual information is provided for Colombia, Panama and Costa Rica. Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. Exchange rates January - March January - March First Quarter 2019 EoP 2018 EoP 2019 average 2018 average 2019 average 2018 average Colombian peso 3,174.79 2,780.47 3,136.75 2,826.85 3,136.75 2,826.85 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 602.36 569.31 609.08 571.47 609.08 571.47 Euro 0.8130 1.09 0.81 1.09 0.81 1.09 Amounts provided in units of local currency per US dollar. 2019 First Quarter Results Page 12


LOGO

 

DEFINITIONS OF TERMS AND DISCLOSURES Definition of terms Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation). Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or internal policies. Net debt equals total debt minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points. EoP equals End of Period. Strategic capital expenditures investments incurred with the purpose of increasing CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs. Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables. 2019 First Quarter Results Page 13

Presentation regarding first quarter 2019 results for CEMEX Latam Holdings, S.A.

Exhibit 3

 

LOGO

 

RESULTS1Q19 April 25, 2019


LOGO

 

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,” “assume,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “foresee,” “predict,” “potential” “target,” “strategy,” and “intend” or other similar words. These forward-looking statements reflect CEMEX Latam Holdings, S.A.’s (“CLH”) current expectations and projection s about future events based on CLH’s knowledge of present facts and circumstances and assumptions about future events, as well as CLH´s current plants based on such facts and circumstances. 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, but not limited to, the energy sector; competition; availability of raw materials and related fluctuating prices; general political, social, economic and business conditions in the markets in which CLH operates or that affects its operations and any significant economic, political or social developments in those markets, including any nationalization or privatization of any assets or operations; 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; availability of short-term credit lines, which can assist us in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CLH’s and CEMEX’s cost of capital; lost of reputation of our brands; 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 operations, sales in general, sales 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 subject to cyber-attacks; weather conditions; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products; weather conditions; trade barriers; including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from free trade agreements; 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 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


LOGO

 

Financial Results Summary Net Sales (US$M) Operating EBITDA (US$M) Margin EBITDA (%) -12% 292 258 1Q18 1Q19 -19% 68 55 1Q18 1Q19 1Q18 23.2% 0pp -2. 1Q19 21.2% Increased sales in Colombia, Guatemala and El Salvador, were more than offset by lower sales in Panama and Costa Rica, in local-currency terms; our net sales in U.S.-dollar and local-currency terms declined by 12% and 4%, respectively, during 1Q19 YoY The U.S.-dollar appreciated during 1Q19 YoY versus the Colombian peso and the Costa Rican Colon by 11% and 7%, respectively, and by 5% versus the currencies of both Nicaragua and Guatemala Our EBITDA during the quarter declined by US$13 million, mainly due to lower volumes, increased energy and distribution costs, as well as the U.S. dollar appreciation 3


LOGO

 

Consolidated Volumes andPrices Domestic gray cement Ready-mix concrete Aggregates 1Q19 vs. 1Q19 vs. 1Q18 4Q18 Volume -1% -2% Price (USD) -8% 3% Price (LtL1 ) -1% 1% Volume -4% -3% Price (USD) -9% 1% Price (LtL1 ) -2% -1% Volume -11% 1% Price (USD) -5% 0% Price (LtL1 ) 3% -2% (1) Like-to-like prices adjusted for foreign-exchange fluctuations Improved cement and ready-mix volumes in Colombia, Guatemala and El Salvador, were more than offset by lower volumes in Panama, Costa Rica and Nicaragua In our cement business, improved prices in local-currency terms in Colombia, Costa Rica and Rest of CLH, were more than offset by lower prices in Panama, on a year-over-year basis In Colombia, our cement prices as of March 2019 versus December 2018 were 7% higher in U.S.-dollar terms and 4% higher in local-currency terms, reflecting the successful price increase implemented in January of this year 4


LOGO

 

EBITDA Variation 3M19 -19% 68 -9 4 -4 -2 1 -4 55 EBITDA Vol Price O. Costs Dist SG&A FX EBITDA 3M18 3M19 23.2% EBITDA Margin 3M18 -2.0pp 21.2% EBITDA Margin 3M19 5


LOGO

 

REGIONAL HIGHLIGHTS 1Q 1 9 R e s u l t s


LOGO

 

Results Highlights Colombia


LOGO

 

Colombia –Results Highlights Financial Summary US$ Million Volume Price (Local Currency) 1Q19 1Q18 % var Net Sales 128 136 -6% Op. EBITDA 22 25 -13% as % net sales 17.1% 18.5% (1.4pp) 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement 8% -3% Ready-mix 8% 5% Aggregates -4% 3% 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement 2% 3% Ready-mix -1% 1% Aggregates 8% 1% We are pleased with our cement volume and price performance during 1Q19 our volumes increased by 8% YoY, while our prices in local-currency terms increased by 2% year-over-year and by 3% sequentially Our BITDA during 1Q19 declined in U.S. dollar and local-currency terms by 13% and 4%, respectively, while our net sales during the quarter declined by 6% in U.S.-dollar terms, but increased by 4% in local-currency terms EBITDA margin declined by 1.4pp, higher volumes and prices, as well as lower fixed costs and SG&A, which in total accounted for an improvement of 3pp, were more than offset by increased variable costs, which accounted for 4.5pp of margin erosion 8


LOGO

 

Colombia –Residencial Sector For the full year 2019, we expect industry cement volumes to the residential sector to increase in the low-single digits, supported by the self-construction and social-housing segments We estimate that cement dispatches to the residential sector remained relatively stable during 1Q19; improved demand to the informal or self-construction segment, as well as to the social housing segment, was offset by lower volumes to the mid-to-high-income segment Informal housing volumes during the quarter were driven by the economic recovery, and improved consumer confidence, which as of March returned to positive after 6 consecutive months in negative territory The social-housing segment showed a mild recovery during the quarter, housing starts improved during the last twelve months by 2% and year-to-date February by 6%, the continuation of the “Mi Casa Ya” subsidy program for new-home acquisition is supporting volumes to this sector 9


LOGO

 

Colombia –Infrastructure Sector During 2019, we expect industry cement volumes to the infrastructure sector to increase in the mid-single digits The infrastructure sector continued its positive performance during the first quarter of 2019, our volumes to this sector were supported by projects in Bogotá, as well as to other projects across the country, including the Picacho cable-car project in Medellín 4G projects continue advancing at good pace, for 2019, we estimate total ready-mix volumes for 4G projects to reach more than 600,000 m3, 38% more compared to those of the previous year Projects worth close to US$500 million were recently awarded in Bogotá and should begin construction soon, and we expect that the Bogotá Metro will be awarded in September and start construction next year 10


LOGO

 

Colombia –Maceo Project Update As already disclosed, we recently reached a new agreement with the government agency “Sociedad de Activos Especiales”, that will allow us to continue using the assets that are subject to domain extinction process for at least 21 years This agreement is a relevant milestone and should support our efforts to obtain the pending permits required to operate the plant; we are doing everything under our control to get these permits and are optimistic that we may obtain them by the end of 2019. Once the permits are granted, we will be able to start building the remaining segments of the access road to the plant Operating Maceo will allow us to optimize our costs and grow profitably at improved levels of cement dispatches 11


LOGO

 

Results Highlights Panama


LOGO

 

Panama –Results Highlights Financial Summary US$ Million Volume Price (Local Currency) 1Q19 1Q18 % var Net Sales 50 61 -18% Op. EBITDA 14 21 -33% as % net sales 27.7% 33.6% (5.9pp) 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement -14% 0% Ready-mix -29% -11% Aggregates -31% -5% 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement -5% -3% Ready-mix -2% -2% Aggregates -4% -8% Cement demand remained weak during 1Q19, we estimate that industry demand declined by 12%, or by 13% adjusting for one additional working day; cement imports reached an estimated 9% participation during the quarter Lower cement demand was due to high levels of inventory in apartments and offices, as well as to project delays in the infrastructure sector. However, we are optimistic in the infrastructure sector going forward, as relevant projects should start soon During the quarter, our EBITDA margin declined by 5.9pp, lower sales and higher freight costs, were partially offset by lower maintenance costs related to the major shutdown of kiln 1 done during the 1Q18, not performed this year 13


LOGO

 

Panama –Sector Highlights We now expect our Panama cement volumes to decline from 4% to 7% during the full year 2019 In 2019, we expect the infrastructure sector to be the main driver of demand, already awarded projects worth more than US$2 billion should start construction during the next 6 months, these are the fourth bridge over the canal, the Corredor de las Playas highway, the second phase of the urban renovation of Colon City, as well as the connection of the metro’s second line to the airport For the full year 2019, we expect national cement demand to bottom out and decline in the mid-single digits, the second quarter has an easier base of comparison because of the construction-workers strike which took place during April and May of last year 14


LOGO

 

Results Highlights Costa Rica


LOGO

 

Costa Rica –Results Highlights Financial Summary US$ Million Volume Price (Local Currency) 1Q19 1Q18 % var Net Sales 28 36 -22% Op. EBITDA 10 10 3% as % net sales 35.6% 26.8% 8.8pp 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement -20% 1% Ready-mix -8% -12% Aggregates 20% 3% 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement 2% 0% Ready-mix 9% -2% Aggregates -3% -3% We estimate that national cement demand declined by 9% during 1Q19; our cement volume performance also reflects a high base of comparison in the same period of last year, as the new competitor commissioned its grinding mill in May 2018, and relevant projects ramped-up volumes during 1Q18 Our cement and ready-mix prices in local-currency terms improved by 2% and 9%, respectively, during the quarter on a year-over-year basis EBITDA margin improved 8.8pp, mainly due to the kiln maintenance performed during 1Q18, which will be done this year during the second quarter. Additionally, the improvement was because of higher prices, a bad-debt provision made last year, and lower fixed costs. These improvements were partially offset by lower volumes and higher freight costs 16


LOGO

 

Costa Rica –Sector Highlights Considering the lower industry demand expectation, as well as the presence of the new competitor for the full year, we now expect our volumes to decline from 8% to 12% during 2019 For the rest of 2019, we expect that the main driver of demand will be the infrastructure sector, volume ramp-up from ongoing projects, as well as projects about to start like Ruta 1: Cañas-Limonal and Limonal-San Gerardo, should provide volume support; most of these projects are financed by multilateral development banks Improved infrastructure volumes might not be enough to offset the weakness in the residential and the industrial-and-commercial sectors considering this, as well as the slow start of the year, we now expect that national cement demand will decline in the mid-single digits during 2019 17


LOGO

 

Results Highlights Rest of CLH


LOGO

 

Rest of CLH –Results Highlights Financial Summary US$ Million Volume Price (Local Currency) 1Q19 1Q18 % var Net Sales 57 63 -10% Op. EBITDA 17 22 -22% as % net sales 30.2% 35.1% (4.9pp) 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement -5% -4% Ready-mix -39% -42% Aggregates -62% -1% 1Q19 vs. 1Q18 1Q19 vs. 4Q18 Cement 1% 1% Ready-mix 4% 5% Aggregates 5% 4% Our cement volumes decreased by 5% during the quarter, improved cement volumes in Guatemala and El Salvador were more than offset by lower volumes in Nicaragua Net sales during the quarter in U.S. dollar and local-currency terms declined by 10% and 6%, respectively, improved sales in Guatemala and El Salvador were more than offset by lower sales in Nicaragua, in local-currency terms EBITDA margin declined by 4.9pp, mainly due to higher purchased-clinker costs in Guatemala. In Nicaragua, the margin remained relatively stable as the unfavorable volume impact was mostly offset by lower operating costs 19


LOGO

 

Nicaragua –Sector Highlights Due to the effect of the political unrest on the construction sector, we expect our volumes in Nicaragua to decline from 10% to 20% in 2019 The socio-political crisis remains unresolved one year after its initiation, and continues to take a toll in economic activity and cement demand Our cement volumes during he quarter declined by 19% on a year-over-year basis, government sponsored projects funded by multilateral banks should continue during 2Q19, but there is no visibility afterwards. The self-construction sector should continue supporting cement consumption in the country 20


LOGO

 

Guatemala –Sector Highlights We expect our cement volumes in Guatemala to increase in the low-single digits during 2019 Our cement volumes increased by 4% and our ready-mix volumes declined by 21%, during the quarter, the decline in ready-mix volumes was due to a high base of comparison in the same period of last year, when some relevant projects were heavily consuming We estimate that national cement demand increased in the mid- to high- single digits during the quarter, supported by improved construction activity related to the general elections which will take place in June, as well as higher volumes to the residential sector 21


LOGO

 

OTHER INFORMATION 1Q 1 9 R e s u l t s


LOGO

 

Free Cash Flow US$ Million 1Q19 1Q18 % var OperatingOp. EBITDAEBITDA 55 68 -19% - Net financial expense 14 15 - Maintenance Capex 5 7 - Change in working cap 6 34 - Taxes paid 13 12 - Other cash items (net) -1 26 - Free cash flow discontinued 0 2 operations Free Cash Flow 17 -28 n/a After Maintenance Capex - Strategic Capex 0 1 Free Cash Flow 17 -28 n/a Our free cash flow improved by US$45 million, to US$17 million during this quarter from negative US$28 million during 1Q18. The improvement was mainly due to a lower working capital investment, and the effect of the US$25 million fine paid in Colombia during 1Q18, both of which more than offset lower EBITDA Financial expenses during 1Q19 were US$1.3 million lower than those of 1Q18, this interest expense reduction was achieved due to the reduction in debt made during the last twelve months We are pleased with our working capital management, our average working capital days during the quarter were reduced to negative 15, from negative 10 during the same period of last year 23


LOGO

 

Income Statement Items Our controlling interest net income reached US$16 million during the quarter, compared to US$30 million during 1Q18. The decline in net income was due to lower operating earnings before other expenses, net, and lower other income, net, partially offset by lower financial expenses and income taxes Other income and expenses, net, was positive US$3 million during the quarter, compared to positive US$19 million during 1Q18. In both cases, the positive effect is due to the U.S.-dollar depreciation against the Colombian peso that happened from December to March in both periods 24


LOGO

 

Consolidateddebt as of March 31, 2019 US$ Million 480 324 7 2019 2020 2021 2022 2023 Type Currency Cost US$ M Banks COP 8.88% 7 Intercompany USD 6ML + 250 bps 130 Intercompany USD 6ML + 255 bps 194 Intercompany USD Fixed 5.65% 480 Other debt (Leases) 24 Average Cost / Total USD 5.55%1 835 (1) Average Cost of USD denominated debt The term “Intercompany” refers to debt with subsidiaries of CEMEX, S.A.B. de C.V. US$835 M total debt Our total debt reflects US$24 million of additional debt related to the IFRS16 accounting treatment for operating leases 3.4x Net Debt / EBITDA Interest Rate Variable Fixed 59% 41% 25


LOGO

 

2019 Guidance Volume YoY% Colombia Panama Costa Rica Cement Ready - Mix Aggregates 0% to 1% 1% to 3% 1% to 3% Cement Ready - Mix Aggregates -7% to -4% -4% to 0% 5% to 7% Cement Ready - Mix Aggregates -12% to -8% -6% to -4% 5% to 7% Consolidated volumes: - Cement: -4% to -2% - Ready-mix: -2% to 0% - Aggregates: -2% to -1% Total Capex US$42 M Maintenance Capex US$35 M Strategic Capex US$7 M Consolidated Cash taxes US$66 M 26


LOGO

 

RESULTS 1Q19 A p r i l 2 5 , 2 0 1 9