UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2020
Commission File Number: 001-14946
CEMEX, S.A.B. de C.V.
(Translation of Registrants name into English)
Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre,
San Pedro Garza García, Nuevo León 66265, México
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Contents
1. | Press release, dated July 27, 2020, announcing second quarter 2020 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
2. | Second quarter 2020 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
3. | Presentation regarding second quarter 2020 results for CEMEX, S.A.B. de C.V. (NYSE: CX). |
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CEMEX, S.A.B. de C.V. | ||||||
(Registrant) | ||||||
Date: July 27, 2020 |
By: | /s/ Rafael Garza Lozano | ||||
Name: | Rafael Garza Lozano | |||||
Title: | Chief Comptroller |
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EXHIBIT INDEX
EXHIBIT |
DESCRIPTION | |
1. | Press release, dated July 27, 2020, announcing second quarter 2020 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
2. | Second quarter 2020 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
3. | Presentation regarding second quarter 2020 results for CEMEX, S.A.B. de C.V. (NYSE: CX). |
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Exhibit 1
Media Relations | Investor Relations | |
Jorge Pérez | Lucy Rodriguez | |
+52 (81) 8888-4334 | +1 (212) 317-6007 | |
jorgeluis.perez@cemex.com | ir@cemex.com |
CEMEXS COST CONTAINMENT EFFORTS
TRANSLATE INTO HIGHER MARGINS
MONTERREY, MEXICO, JULY 27, 2020 CEMEX, S.A.B. de C.V. (CEMEX) (NYSE: CX), announced today that in a quarter marked by significant disruption from the COVID-19 pandemic, Sales declined 10%* year over year while EBITDA for the quarter fell by 6%*. These declines were largely attributable to lockdown measures in much of the companys footprint. EBITDA margin, however, was higher by 0.7 percentage points due to the proactive initiatives under Operation Resilience where the company undertook significant cost containment efforts across its businesses and geographies.
CEMEXs Consolidated Second Quarter 2020 Financial and Operational Highlights
| The decline in quarterly consolidated Net Sales was due to lower volumes for our three core products in almost all regions. The US was the one exception with cement volumes growing 6%. Impact of volumes was highly correlated to government COVID-19 restrictions. |
| Operating Earnings before Other Expenses, net, decreased 17% to US$279 million on a like-to-like basis. |
| Controlling Interest Net Income (loss) was a loss of US$44 million, compared with a Net Income of US$155 million in the same quarter of 2019. |
| Operating EBITDA on a like-to-like basis decreased 6% during the quarter to US$554 million, as compared to the same period in 2019. |
| Operating EBITDA margin increased by 0.7pp, from 18.3% in the second quarter of 2019 to 19.0% this quarter. |
| Free Cash Flow after Maintenance Capital Expenditures for the quarter was US$140 million. |
| Net debt plus perpetual notes marginally increased sequentially by US$51 million during the quarter. |
Despite the unprecedented conditions in which we are operating due to the pandemic, I am pleased with our second quarter performance and our quick reaction to implement cost containment measures across all geographies. In the quarter, we saw a rapid V-shaped volume recovery in our core products from trough levels in April, reaching slightly below pre COVID-19 volumes in June. Importantly, our health initiatives have helped protect our employees, customers, suppliers and communities, and allowed us and our customers to continue operating in most markets. Our digitalization efforts have also paid off as usage continues to expand on our digital platforms and our sales force has leveraged new tools to connect with our customers virtually. We expect that COVID-19 will continue to challenge our operations in new ways over the next few quarters. We will continue to prioritize the safety of our employees and customers, improve our customer experience, and protect the future of our company, said Fernando A. González, CEO of CEMEX.
Geographical Markets Second-Quarter 2020 Highlights
Net Sales in Mexico decreased 10% on a like-to-like basis to US$568 million. Operating EBITDA, on a like-to-like basis, decreased 10% to US$183 million in the quarter, versus the same period of the previous year.
CEMEXs operations in the United States reported Net Sales of US$1.0 billion, an increase of 1% from the same period in 2019. Operating EBITDA increased by 16% to US$198 million versus the same quarter of 2019.
In our Europe, Middle East, Africa and Asia region, Net Sales decreased by 13% on a like-to-like basis, compared with the same period of the previous year, reaching US$987 million. Operating EBITDA was US$147 million for the quarter, 20% lower than the same period last year on a like-to-like basis.
CEMEXs operations in our South, Central America and the Caribbean region, reported Net Sales of US$279 million, a decline of 30% on a like-to-like basis over the same period of 2019. Operating EBITDA decreased by 25% on a like-to-like basis to US$66 million in the second quarter of 2020, in contrast to the same quarter of 2019.
CEMEX is a global building materials company that provides high-quality products and reliable services. CEMEX has a rich history of improving the wellbeing of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future. For more information, please visit: www.cemex.com
* Year-over-year changes are calculated on a like-to-like basis, for ongoing operations and adjusting for currency fluctuations.
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This press release contains forward-looking statements that reflect CEMEXs current expectations and projections about future events based on CEMEXs knowledge of present facts and circumstances and assumptions about future events, as well as CEMEXs current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEXs expectations. CEMEX assumes no obligation to update or correct the information contained in this press release. The information contained in this press release is subject to change without notice, and CEMEX is not obligated to publicly update or revise any forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEXs prices for CEMEXs products. Operating EBITDA is defined as operating income 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). Net debt is defined as total debt minus the fair value of cross-currency swaps associated with debt minus cash and cash equivalents. The Consolidated Funded Debt to Operating EBITDA ratio is calculated by dividing Consolidated Funded Debt at the end of the quarter by Operating EBITDA for the last twelve months. All of the above items are presented under the guidance of 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 CEMEX believes that they are widely accepted as financial indicators of CEMEXs ability to internally fund capital expenditures and service or incur debt. Operating EBITDA and Free Cash Flow should not be considered as indicators of CEMEXs financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
Exhibit 2
Second Quarter Results 2020 Stock Listing Information NYSE (ADS) Ticker: CX Mexican Stock Exchange Ticker: CEMEXCPO Ratio of CEMEXCPO to CX = 10:1 Investor Relations In the United States: + 1 877 7CX NYSE In Mexico: + 52 (81) 8888 4292 E-Mail: ir@cemex.com
Operating and financial highlights |
January June | Second Quarter | |||||||||||||||||||||||||||||||
2020 | 2019 | % var | l-t-l % var |
2020 | 2019 | % var | l-t-l % var |
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Consolidated cement volume |
29,188 | 30,682 | (5 | %) | 14,360 | 15,970 | (10 | %) | ||||||||||||||||||||||||
Consolidated ready-mix volume |
22,194 | 24,622 | (10 | %) | 10,519 | 12,856 | (18 | %) | ||||||||||||||||||||||||
Consolidated aggregates volume |
62,263 | 68,272 | (9 | %) | 30,432 | 35,996 | (15 | %) | ||||||||||||||||||||||||
Net sales |
5,997 | 6,495 | (8 | %) | (4 | %) | 2,912 | 3,400 | (14 | %) | (10 | %) | ||||||||||||||||||||
Gross profit |
1,898 | 2,113 | (10 | %) | (5 | %) | 932 | 1,141 | (18 | %) | (12 | %) | ||||||||||||||||||||
as % of net sales |
31.6 | % | 32.5 | % | (0.9pp | ) | 32.0 | % | 33.6 | % | (1.6pp | ) | ||||||||||||||||||||
Operating earnings before other expenses, net |
539 | 657 | (18 | %) | (13 | %) | 279 | 366 | (24 | %) | (17 | %) | ||||||||||||||||||||
as % of net sales |
9.0 | % | 10.1 | % | (1.1pp | ) | 9.6 | % | 10.8 | % | (1.2pp | ) | ||||||||||||||||||||
Controlling interest net income (loss) |
(2 | ) | 193 | N/A | (44 | ) | 155 | N/A | ||||||||||||||||||||||||
Operating EBITDA |
1,088 | 1,169 | (7 | %) | (3 | %) | 554 | 623 | (11 | %) | (6 | %) | ||||||||||||||||||||
as % of net sales |
18.1 | % | 18.0 | % | 0.1pp | 19.0 | % | 18.3 | % | 0.7pp | ||||||||||||||||||||||
Free cash flow after maintenance capital expenditures |
(75 | ) | (121 | ) | 38 | % | 140 | 217 | (35 | %) | ||||||||||||||||||||||
Free cash flow |
(190 | ) | (205 | ) | 7 | % | 86 | 168 | (49 | %) | ||||||||||||||||||||||
Total debt plus perpetual notes |
13,638 | 11,492 | 19 | % | 13,638 | 11,492 | 19 | % | ||||||||||||||||||||||||
Earnings (loss) of continuing operations per ADS |
0.01 | (0.02 | ) | N/A | 0.01 | (0.02 | ) | N/A | ||||||||||||||||||||||||
Fully diluted earnings (loss) of continuing operations per |
0.02 | 0.05 | (67 | %) | 0.01 | 0.06 | (87 | %) | ||||||||||||||||||||||||
Average ADSs outstanding |
1,502 | 1,533 | (2 | %) | 1,487 | 1,534 | (3 | %) | ||||||||||||||||||||||||
Employees |
40,150 | 40,759 | (1 | %) | 40,150 | 40,759 | (1 | %) |
This information does not include discontinued operations. Please see page 13 on this report for additional information.
Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters.
In millions of U.S. dollars, except volumes, percentages, employees, and per-ADS amounts. Average ADSs outstanding are presented in millions.
Please refer to page 13 for end-of quarter CPO-equivalent units outstanding.
(1) | For the period of January-June 2020, the effect of the potential dilutive shares generates anti-dilution; therefore, there is no change between the reported basic and diluted gain per share. |
2020 Second Quarter Results | Page 2 |
Operating results |
Mexico
January June | Second Quarter | |||||||||||||||||||||||||||||||
2020 | 2019 | % var | l-t-l % var |
2020 | 2019 | % var | l-t-l % var |
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Net sales |
1,253 | 1,459 | (14 | %) | (3 | %) | 568 | 752 | (25 | %) | (10 | %) | ||||||||||||||||||||
Operating EBITDA |
416 | 500 | (17 | %) | (6 | %) | 183 | 245 | (25 | %) | (10 | %) | ||||||||||||||||||||
Operating EBITDA margin |
33.2 | % | 34.3 | % | (1.1pp | ) | 32.3 | % | 32.5 | % | (0.2pp | ) |
In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation | January June | Second Quarter | January June | Second Quarter | January June | Second Quarter | ||||||||||||||||||
Volume |
(3 | %) | (7 | %) | (23 | %) | (44 | %) | (19 | %) | (35 | %) | ||||||||||||
Price (USD) |
(11 | %) | (16 | %) | (10 | %) | (17 | %) | (7 | %) | (14 | %) | ||||||||||||
Price (local currency) |
0 | % | 1 | % | 1 | % | (0 | %) | 4 | % | 2 | % |
In Mexico, our cement volumes declined by 7%, while ready mix and aggregates dropped by 44% and 35%, respectively, during the quarter. Bagged cement was highly resilient during the quarter, growing by 10% on a year-over-year basis. Private sector construction was the most impacted by COVID-19 lockdown measures. Formal construction activity should gradually improve, albeit at a slow pace, as the economy reopens.
Sequential prices were stable in our three core products, despite declining volumes.
United States
January June | Second Quarter | |||||||||||||||||||||||||||||||
2020 | 2019 | % var | l-t-l % var |
2020 | 2019 | % var | l-t-l % var |
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Net sales |
1,971 | 1,848 | 7 | % | 7 | % | 1,006 | 993 | 1 | % | 1 | % | ||||||||||||||||||||
Operating EBITDA |
361 | 294 | 23 | % | 23 | % | 198 | 171 | 16 | % | 16 | % | ||||||||||||||||||||
Operating EBITDA margin |
18.3 | % | 15.9 | % | 2.4pp | 19.7 | % | 17.3 | % | 2.4pp |
In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation | January June | Second Quarter | January June | Second Quarter | January June | Second Quarter | ||||||||||||||||||
Volume |
8 | % | 6 | % | 2 | % | (5 | %) | 3 | % | (3 | %) | ||||||||||||
Price (USD) |
1 | % | (0 | %) | 3 | % | 2 | % | 1 | % | 0 | % | ||||||||||||
Price (local currency) |
1 | % | (0 | %) | 3 | % | 2 | % | 1 | % | 0 | % |
The United States continued to enjoy strong demand momentum in the second quarter driven by the infrastructure and residential sectors. Cement volumes increased 6% while ready-mix and aggregates decreased by 5% and 3%, respectively, due to geographic mix and bad weather in our US ready-mix footprint.
Pricing for cement, ready-mix and aggregates in the quarter was stable sequentially.
EBITDA margin expanded by 2.4 percentage points during the quarter due to higher ready-mix prices, cost reduction efforts and lower fuel costs.
2020 Second Quarter Results | Page 3 |
Operating results |
Europe, Middle East, Africa and Asia
January June | Second Quarter | |||||||||||||||||||||||||||||||
2020 | 2019 | % var | l-t-l % var |
2020 | 2019 | % var | l-t-l % var |
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Net sales |
1,989 | 2,172 | (8 | %) | (8 | %) | 987 | 1,140 | (13 | %) | (13 | %) | ||||||||||||||||||||
Operating EBITDA |
251 | 290 | (13 | %) | (13 | %) | 147 | 187 | (21 | %) | (20 | %) | ||||||||||||||||||||
Operating EBITDA margin |
12.6 | % | 13.3 | % | (0.7pp | ) | 14.9 | % | 16.4 | % | (1.5pp | ) |
In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation | January June | Second Quarter | January June | Second Quarter | January June | Second Quarter | ||||||||||||||||||
Volume |
(5 | %) | (12 | %) | (8 | %) | (12 | %) | (10 | %) | (13 | %) | ||||||||||||
Price (USD) |
(3 | %) | (2 | %) | (1 | %) | (2 | %) | (1 | %) | (2 | %) | ||||||||||||
Price (local currency) (*) |
(2 | %) | (1 | %) | (1 | %) | (1 | %) | 1 | % | (0 | %) |
In the Europe region, our domestic gray cement volumes decreased 2% while both ready-mix and aggregates volumes decreased by 18% during the second quarter. Solid growth in our Central European markets driven primarily by the infrastructure sector, partially offset declines in the UK, Spain and France due to much stricter lockdown measures.
Cement and aggregates prices in local currency terms were up sequentially in almost all countries in the Europe region.
In the Philippines, domestic gray cement volumes declined 31% during the quarter due to the stringent lockdown measures implemented by the government and by the closure of Solid plant in Luzon for two months. In June, as our Solid Cement Plant reopened, we saw a marked recovery in volumes.
Our ready-mix and aggregates volumes in Israel increased by 10% and by 8%, respectively, during the second quarter of 2020. Volume growth was driven by continued construction activity in all sectors.
In Egypt, cement volumes decreased by 13% during the second quarter. Construction activity in Egypt slowed due to suspension of private residential construction permits and fewer working days.
(*) | Calculated on a volume-weighted-average basis at constant foreign-exchange rates |
2020 Second Quarter Results | Page 4 |
Operating results |
South, Central America and the Caribbean
January June | Second Quarter | |||||||||||||||||||||||||||||||
2020 | 2019 | % var | l-t-l % var |
2020 | 2019 | % var | l-t-l % var |
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Net sales |
651 | 850 | (23 | %) | (19 | %) | 279 | 424 | (34 | %) | (30 | %) | ||||||||||||||||||||
Operating EBITDA |
156 | 195 | (20 | %) | (16 | %) | 66 | 93 | (29 | %) | (25 | %) | ||||||||||||||||||||
Operating EBITDA margin |
24.0 | % | 23.0 | % | 1.0pp | 23.6 | % | 21.9 | % | 1.7pp |
In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation | January June | Second Quarter | January June | Second Quarter | January June | Second Quarter | ||||||||||||||||||
Volume |
(19 | %) | (29 | %) | (42 | %) | (60 | %) | (44 | %) | (61 | %) | ||||||||||||
Price (USD) |
(1 | %) | (1 | %) | (10 | %) | (12 | %) | (0 | %) | (4 | %) | ||||||||||||
Price (local currency) (*) |
5 | % | 6 | % | (1 | %) | (3 | %) | 9 | % | 5 | % |
In our South, Central America and the Caribbean region, our domestic gray cement volumes declined 29% during the quarter impacted by the government measures taken to contain the spread of the virus, including industry shutdowns in Colombia, Panama and Trinidad for significant portions of the quarter. Quarterly cement prices on a sequential basis were higher in practically all markets, in local-currency terms.
In Colombia, our quarterly cement volumes declined by 40%, with a decrease of approximately 75% in April on a year-over year-basis; upon reopening of the industry, our volumes recovered significantly in June recording a decrease in the high single digits versus the same month of last year. During June, we observed increased activity particularly in 4G projects and in the self-construction sector. Our quarterly cement prices improved by 9% year-over-year and by 1% sequentially, in local-currency terms.
(*) | Calculated on a volume-weighted-average basis at constant foreign-exchange rates |
2020 Second Quarter Results | Page 5 |
Operating results |
Operating EBITDA and free cash flow
January - June | Second Quarter | |||||||||||||||||||||||
2020 | 2019 | % var | 2020 | 2019 | % var | |||||||||||||||||||
Operating earnings before other expenses, net |
539 | 657 | (18 | %) | 279 | 366 | (24 | %) | ||||||||||||||||
+ Depreciation and operating amortization |
549 | 513 | 275 | 257 | ||||||||||||||||||||
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Operating EBITDA |
1,088 | 1,169 | (7 | %) | 554 | 623 | (11 | %) | ||||||||||||||||
- Net financial expense |
355 | 353 | 182 | 174 | ||||||||||||||||||||
- Maintenance capital expenditures |
217 | 264 | 94 | 144 | ||||||||||||||||||||
- Change in working capital |
481 | 570 | 71 | 44 | ||||||||||||||||||||
- Taxes paid |
81 | 111 | 40 | 74 | ||||||||||||||||||||
- Other cash items (net) |
43 | 17 | 29 | (5 | ) | |||||||||||||||||||
- Free cash flow discontinued operations |
(13 | ) | (26 | ) | (1 | ) | (25 | ) | ||||||||||||||||
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Free cash flow after maintenance capital expenditures |
(75 | ) | (121 | ) | 38 | % | 140 | 217 | (35 | %) | ||||||||||||||
- Strategic capital expenditures |
115 | 84 | 54 | 48 | ||||||||||||||||||||
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Free cash flow |
(190 | ) | (205 | ) | 7 | % | 86 | 168 | (49 | %) | ||||||||||||||
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In millions of U.S. dollars, except percentages.
Due to our proactive working capital management and lower maintenance capex, we generated US$140 million of free cash flow after maintenance capex and US$86 million of free cash flow during the second quarter.
To further strengthen our liquidity position, during the second quarter, we issued US$1.0 billion of 7.375% Senior Secured Notes due 2027 and drew down US$$446 million from our revolving credit facility, other credit lines and loans. Our cash and cash equivalents as of the end of the second quarter was $2.8 billion.
Net debt plus perpetual notes during the quarter, reflects an unfavorable foreign-exchange conversion effect of US$55 million.
Information on debt and perpetual notes
In millions of U.S. dollars, except percentages and ratios.
(1) | Includes leases, in accordance with International Financial Reporting Standards (IFRS). |
(2) | Calculated in accordance with our contractual obligations under the 2017 Facilities Agreement, as amended and restated. |
(3) | Includes the effect of interest-rate swap instruments related to bank loans to fix floating rates with a nominal amount of US$1,000 million. |
2020 Second Quarter Results | Page 6 |
Operating results |
Consolidated Income Statement & Balance Sheet
CEMEX, S.A.B. de C.V. and Subsidiaries
(Thousands of U.S. dollars, except per ADS amounts)
January June | Second Quarter | |||||||||||||||||||||||||||||||
INCOME STATEMENT | 2020 | 2019 | % var | like-to-like % var |
2020 | 2019 | % var | like-to-like % var |
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Net sales |
5,996,816 | 6,494,525 | (8 | %) | (4 | %) | 2,911,549 | 3,400,377 | (14 | %) | (10 | %) | ||||||||||||||||||||
Cost of sales |
(4,099,169 | ) | (4,381,773 | ) | 6 | % | (1,979,449 | ) | (2,259,180 | ) | 12 | % | ||||||||||||||||||||
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Gross profit |
1,897,646 | 2,112,752 | (10 | %) | (5 | %) | 932,100 | 1,141,197 | (18 | %) | (12 | %) | ||||||||||||||||||||
Operating expenses |
(1,358,461 | ) | (1,456,095 | ) | 7 | % | (653,347 | ) | (775,224 | ) | 16 | % | ||||||||||||||||||||
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Operating earnings before other expenses, net |
539,185 | 656,657 | (18 | %) | (13 | %) | 278,753 | 365,973 | (24 | %) | (17 | %) | ||||||||||||||||||||
Other expenses, net |
(112,522 | ) | (86,792 | ) | (30 | %) | (69,776 | ) | (34,283 | ) | (104 | %) | ||||||||||||||||||||
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Operating earnings |
426,663 | 569,865 | (25 | %) | 208,977 | 331,690 | (37 | %) | ||||||||||||||||||||||||
Financial expense |
(350,905 | ) | (358,748 | ) | 2 | % | (180,661 | ) | (169,768 | ) | (6 | %) | ||||||||||||||||||||
Other financial income (expense), net |
31,330 | (26,274 | ) | N/A | 16,617 | (27,599 | ) | N/A | ||||||||||||||||||||||||
Financial income |
8,921 | 9,658 | (8 | %) | 3,995 | 5,409 | (26 | %) | ||||||||||||||||||||||||
Results from financial instruments, net |
(6,817 | ) | 5,943 | N/A | 20,583 | (1,707 | ) | N/A | ||||||||||||||||||||||||
Foreign exchange results |
57,598 | (12,239 | ) | N/A | 5,877 | (16,500 | ) | N/A | ||||||||||||||||||||||||
Effects of net present value on assets and liabilities and others, net |
(28,372 | ) | (29,636 | ) | 4 | % | (13,837 | ) | (14,800 | ) | 7 | % | ||||||||||||||||||||
Equity in gain (loss) of associates |
13,489 | 11,230 | 20 | % | 8,574 | 10,020 | (14 | %) | ||||||||||||||||||||||||
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Income (loss) before income tax |
120,577 | 196,072 | (39 | %) | 53,507 | 144,343 | (63 | %) | ||||||||||||||||||||||||
Income tax |
(89,844 | ) | (115,174 | ) | 22 | % | (39,816 | ) | (53,243 | ) | 25 | % | ||||||||||||||||||||
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Profit (loss) of continuing operations |
30,733 | 80,898 | (62 | %) | 13,690 | 91,100 | (85 | %) | ||||||||||||||||||||||||
Discontinued operations |
(25,125 | ) | 137,124 | N/A | (55,313 | ) | 72,820 | N/A | ||||||||||||||||||||||||
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Consolidated net income (loss) |
5,608 | 218,022 | (97 | %) | (41,623 | ) | 163,920 | N/A | ||||||||||||||||||||||||
Non-controlling interest net income (loss) |
7,146 | 24,633 | (71 | %) | 2,082 | 9,366 | (78 | %) | ||||||||||||||||||||||||
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Controlling interest net income (loss) |
(1,537 | ) | 193,389 | N/A | (43,705 | ) | 154,554 | N/A | ||||||||||||||||||||||||
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Operating EBITDA |
1,087,787 | 1,169,238 | (7 | %) | (3 | %) | 553,990 | 623,448 | (11 | %) | (6 | %) | ||||||||||||||||||||
Earnings (loss) of continued operations per ADS |
0.01 | (0.02 | ) | N/A | 0.01 | (0.02 | ) | N/A | ||||||||||||||||||||||||
Earnings (loss) of discontinued operations per ADS |
0.02 | 0.04 | (53 | %) | 0.02 | 0.04 | (53 | %) | ||||||||||||||||||||||||
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As of June 30 | ||||||||||||
BALANCE SHEET | 2020 | 2019 | % var | |||||||||
Total assets |
29,959,821 | 28,970,211 | 3 | % | ||||||||
Cash and cash equivalents |
2,831,766 | 304,222 | 831 | % | ||||||||
Trade receivables less allowance for doubtful accounts |
1,550,826 | 1,718,444 | (10 | %) | ||||||||
Other accounts receivable |
313,995 | 330,797 | (5 | %) | ||||||||
Inventories, net |
929,020 | 1,089,136 | (15 | %) | ||||||||
Assets held for sale |
355,788 | 234,894 | 51 | % | ||||||||
Other current assets |
143,058 | 157,124 | (9 | %) | ||||||||
Current assets |
6,124,452 | 3,834,617 | 60 | % | ||||||||
Property, machinery and equipment, net |
11,105,890 | 11,958,102 | (7 | %) | ||||||||
Other assets |
12,729,479 | 13,177,492 | (3 | %) | ||||||||
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Total liabilities |
19,742,516 | 17,916,592 | 10 | % | ||||||||
Current liabilities |
4,662,555 | 5,201,207 | (10 | %) | ||||||||
Long-term liabilities |
11,412,602 | 9,159,619 | 25 | % | ||||||||
Other liabilities |
3,667,359 | 3,555,767 | 3 | % | ||||||||
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Total stockholders equity |
10,217,305 | 11,053,619 | (8 | %) | ||||||||
Non-controlling interest and perpetual instruments |
1,425,281 | 1,542,739 | (8 | %) | ||||||||
Total controlling interest |
8,792,024 | 9,510,880 | (8 | %) | ||||||||
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2020 Second Quarter Results | Page 7 |
Operating results |
Operating Summary per Country
In thousands of U.S. dollars
January - June | Second Quarter | |||||||||||||||||||||||||||||||
like-to-like | like-to-like | |||||||||||||||||||||||||||||||
NET SALES | 2020 | 2019 | % var | % var | 2020 | 2019 | % var | % var | ||||||||||||||||||||||||
Mexico |
1,253,191 | 1,458,897 | (14 | %) | (3 | %) | 567,854 | 752,462 | (25 | %) | (10 | %) | ||||||||||||||||||||
U.S.A. |
1,970,635 | 1,847,895 | 7 | % | 7 | % | 1,005,641 | 993,314 | 1 | % | 1 | % | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
1,989,384 | 2,172,258 | (8 | %) | (8 | %) | 986,744 | 1,140,469 | (13 | %) | (13 | %) | ||||||||||||||||||||
Europe |
1,335,352 | 1,487,145 | (10 | %) | (7 | %) | 684,609 | 801,890 | (15 | %) | (12 | %) | ||||||||||||||||||||
Philippines |
190,487 | 238,080 | (20 | %) | (22 | %) | 79,691 | 118,033 | (32 | %) | (34 | %) | ||||||||||||||||||||
Middle East and Africa |
463,545 | 447,033 | 4 | % | (1 | %) | 222,444 | 220,547 | 1 | % | (3 | %) | ||||||||||||||||||||
South, Central America and the Caribbean |
651,448 | 850,299 | (23 | %) | (19 | %) | 278,875 | 423,660 | (34 | %) | (30 | %) | ||||||||||||||||||||
Others and intercompany eliminations |
132,158 | 165,176 | (20 | %) | (17 | %) | 72,434 | 90,471 | (20 | %) | (20 | %) | ||||||||||||||||||||
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TOTAL |
5,996,816 | 6,494,525 | (8 | %) | (4 | %) | 2,911,549 | 3,400,377 | (14 | %) | (10 | %) | ||||||||||||||||||||
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GROSS PROFIT | ||||||||||||||||||||||||||||||||
Mexico |
648,321 | 753,716 | (14 | %) | (3 | %) | 292,652 | 380,630 | (23 | %) | (8 | %) | ||||||||||||||||||||
U.S.A. |
498,647 | 464,718 | 7 | % | 7 | % | 267,217 | 271,266 | (1 | %) | (1 | %) | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
492,839 | 570,191 | (14 | %) | (13 | %) | 262,739 | 338,652 | (22 | %) | (21 | %) | ||||||||||||||||||||
Europe |
327,220 | 386,410 | (15 | %) | (12 | %) | 189,216 | 241,804 | (22 | %) | (19 | %) | ||||||||||||||||||||
Philippines |
76,191 | 98,257 | (22 | %) | (24 | %) | 29,291 | 54,184 | (46 | %) | (47 | %) | ||||||||||||||||||||
Middle East and Africa |
89,428 | 85,524 | 5 | % | 0 | % | 44,232 | 42,664 | 4 | % | 0 | % | ||||||||||||||||||||
South, Central America and the Caribbean |
238,627 | 308,428 | (23 | %) | (18 | %) | 98,175 | 149,915 | (35 | %) | (30 | %) | ||||||||||||||||||||
Others and intercompany eliminations |
19,212 | 15,699 | 22 | % | 22 | % | 11,317 | 734 | 1443 | % | 1443 | % | ||||||||||||||||||||
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TOTAL |
1,897,646 | 2,112,752 | (10 | %) | (5 | %) | 932,100 | 1,141,197 | (18 | %) | (12 | %) | ||||||||||||||||||||
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OPERATING EARNINGS BEFORE OTHER EXPENSES, NET |
||||||||||||||||||||||||||||||||
Mexico |
345,127 | 422,555 | (18 | %) | (8 | %) | 149,499 | 205,726 | (27 | %) | (12 | %) | ||||||||||||||||||||
U.S.A. |
142,150 | 96,869 | 47 | % | 47 | % | 87,058 | 72,175 | 21 | % | 21 | % | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
91,968 | 139,279 | (34 | %) | (34 | %) | 67,045 | 110,890 | (40 | %) | (39 | %) | ||||||||||||||||||||
Europe |
35,914 | 71,635 | (50 | %) | (47 | %) | 45,609 | 77,384 | (41 | %) | (39 | %) | ||||||||||||||||||||
Philippines |
30,642 | 44,556 | (31 | %) | (32 | %) | 10,667 | 24,080 | (56 | %) | (56 | %) | ||||||||||||||||||||
Middle East and Africa |
25,413 | 23,088 | 10 | % | 6 | % | 10,769 | 9,427 | 14 | % | 9 | % | ||||||||||||||||||||
South, Central America and the Caribbean |
111,663 | 147,495 | (24 | %) | (21 | %) | 43,832 | 69,190 | (37 | %) | (33 | %) | ||||||||||||||||||||
Others and intercompany eliminations |
(151,723 | ) | (149,541 | ) | (1 | %) | (12 | %) | (68,680 | ) | (92,009 | ) | 25 | % | 13 | % | ||||||||||||||||
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TOTAL |
539,185 | 656,657 | (18 | %) | (13 | %) | 278,753 | 365,973 | (24 | %) | (17 | %) | ||||||||||||||||||||
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2020 Second Quarter Results | Page 8 |
Operating results |
Operating Summary per Country
EBITDA in thousands of U.S. dollars. EBITDA margin as a percentage of net sales.
January - June | Second Quarter | |||||||||||||||||||||||||||||||
OPERATING EBITDA | 2020 | 2019 | % var | like-to-like % var |
2020 | 2019 | % var | like-to-like % var |
||||||||||||||||||||||||
Mexico |
416,169 | 499,773 | (17 | %) | (6 | %) | 183,181 | 244,575 | (25 | %) | (10 | %) | ||||||||||||||||||||
U.S.A. |
361,351 | 294,105 | 23 | % | 23 | % | 198,433 | 171,494 | 16 | % | 16 | % | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
250,963 | 289,801 | (13 | %) | (13 | %) | 147,005 | 186,774 | (21 | %) | (20 | %) | ||||||||||||||||||||
Europe |
147,129 | 182,342 | (19 | %) | (16 | %) | 101,649 | 132,919 | (24 | %) | (21 | %) | ||||||||||||||||||||
Philippines |
53,503 | 62,547 | (14 | %) | (16 | %) | 22,539 | 33,121 | (32 | %) | (33 | %) | ||||||||||||||||||||
Middle East and Africa |
50,330 | 44,911 | 12 | % | 7 | % | 22,817 | 20,733 | 10 | % | 5 | % | ||||||||||||||||||||
South, Central America and the Caribbean |
156,265 | 195,242 | (20 | %) | (16 | %) | 65,715 | 92,576 | (29 | %) | (25 | %) | ||||||||||||||||||||
Others and intercompany eliminations |
(96,961 | ) | (109,683 | ) | 12 | % | (2 | %) | (40,345 | ) | (71,970 | ) | 44 | % | 28 | % | ||||||||||||||||
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TOTAL |
1,087,787 | 1,169,238 | (7 | %) | (3 | %) | 553,990 | 623,448 | (11 | %) | (6 | %) | ||||||||||||||||||||
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OPERATING EBITDA MARGIN | ||||||||||||||||||||||||||||||||
Mexico |
33.2 | % | 34.3 | % | 32.3 | % | 32.5 | % | ||||||||||||||||||||||||
U.S.A. |
18.3 | % | 15.9 | % | 19.7 | % | 17.3 | % | ||||||||||||||||||||||||
Europe, Middle East, Asia and Africa |
12.6 | % | 13.3 | % | 14.9 | % | 16.4 | % | ||||||||||||||||||||||||
Europe |
11.0 | % | 12.3 | % | 14.8 | % | 16.6 | % | ||||||||||||||||||||||||
Philippines |
28.1 | % | 26.3 | % | 28.3 | % | 28.1 | % | ||||||||||||||||||||||||
Middle East and Africa |
10.9 | % | 10.0 | % | 10.3 | % | 9.4 | % | ||||||||||||||||||||||||
South, Central America and the Caribbean |
24.0 | % | 23.0 | % | 23.6 | % | 21.9 | % | ||||||||||||||||||||||||
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TOTAL |
18.1 | % | 18.0 | % | 19.0 | % | 18.3 | % | ||||||||||||||||||||||||
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2020 Second Quarter Results | Page 9 |
Operating results |
Volume Summary
Consolidated volume summary
Cement and aggregates: Thousands of metric tons.
Ready-mix: Thousands of cubic meters.
January - June | Second Quarter | |||||||||||||||||||||||
2020 | 2019 | % var | 2020 | 2019 | % var | |||||||||||||||||||
Consolidated cement volume (1) |
29,188 | 30,682 | (5 | %) | 14,360 | 15,970 | (10 | %) | ||||||||||||||||
Consolidated ready-mix volume |
22,194 | 24,622 | (10 | %) | 10,519 | 12,856 | (18 | %) | ||||||||||||||||
Consolidated aggregates volume (2) |
62,263 | 68,272 | (9 | %) | 30,432 | 35,996 | (15 | %) |
Per-country volume summary
January - June | Second Quarter | Second Quarter 2020 vs. | ||||||||||
DOMESTIC GRAY CEMENT VOLUME | 2020 vs. 2019 | 2020 vs. 2019 | First Quarter 2020 | |||||||||
Mexico |
(3 | %) | (7 | %) | (2 | %) | ||||||
U.S.A. |
8 | % | 6 | % | 10 | % | ||||||
Europe, Middle East, Asia and Africa |
(5 | %) | (12 | %) | (5 | %) | ||||||
Europe |
(0 | %) | (2 | %) | 17 | % | ||||||
Philippines |
(17 | %) | (31 | %) | (30 | %) | ||||||
Middle East and Africa |
(2 | %) | (14 | %) | (21 | %) | ||||||
South, Central America and the Caribbean |
(19 | %) | (29 | %) | (20 | %) | ||||||
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READY-MIX VOLUME | ||||||||||||
Mexico |
(23 | %) | (44 | %) | (41 | %) | ||||||
U.S.A. |
2 | % | (5 | %) | (0 | %) | ||||||
Europe, Middle East, Asia and Africa |
(8 | %) | (12 | %) | 1 | % | ||||||
Europe |
(13 | %) | (18 | %) | 5 | % | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa |
2 | % | 1 | % | (6 | %) | ||||||
South, Central America and the Caribbean |
(42 | %) | (60 | %) | (51 | %) | ||||||
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AGGREGATES VOLUME | ||||||||||||
Mexico |
(19 | %) | (35 | %) | (35 | %) | ||||||
U.S.A. |
3 | % | (3 | %) | 1 | % | ||||||
Europe, Middle East, Asia and Africa |
(10 | %) | (13 | %) | 8 | % | ||||||
Europe |
(14 | %) | (18 | %) | 8 | % | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa |
7 | % | 7 | % | 5 | % | ||||||
South, Central America and the Caribbean |
(44 | %) | (61 | %) | (48 | %) | ||||||
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(1) | Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. |
(2) | Consolidated aggregates volumes include aggregates from our marine business in UK. |
2020 Second Quarter Results | Page 10 |
Operating results |
Price Summary
Variation in U.S. dollars
January - June | Second Quarter | Second Quarter 2020 vs. | ||||||||||
DOMESTIC GRAY CEMENT PRICE | 2020 vs. 2019 | 2020 vs. 2019 | First Quarter 2020 | |||||||||
Mexico |
(11 | %) | (16 | %) | (10 | %) | ||||||
U.S.A. |
1 | % | (0 | %) | (0 | %) | ||||||
Europe, Middle East, Asia and Africa (*) |
(3 | %) | (2 | %) | 1 | % | ||||||
Europe (*) |
(2 | %) | (2 | %) | (2 | %) | ||||||
Philippines |
(4 | %) | (3 | %) | 2 | % | ||||||
Middle East and Africa (*) |
(3 | %) | (5 | %) | (5 | %) | ||||||
South, Central America and the Caribbean (*) |
(1 | %) | (1 | %) | 1 | % | ||||||
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READY-MIX PRICE | ||||||||||||
Mexico |
(10 | %) | (17 | %) | (12 | %) | ||||||
U.S.A. |
3 | % | 2 | % | 0 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
(1 | %) | (2 | %) | (2 | %) | ||||||
Europe (*) |
(3 | %) | (4 | %) | (4 | %) | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
5 | % | 4 | % | 1 | % | ||||||
South, Central America and the Caribbean (*) |
(10 | %) | (12 | %) | (6 | %) | ||||||
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AGGREGATES PRICE | ||||||||||||
Mexico |
(7 | %) | (14 | %) | (10 | %) | ||||||
U.S.A. |
1 | % | 0 | % | (0 | %) | ||||||
Europe, Middle East, Asia and Africa (*) |
(1 | %) | (2 | %) | (5 | %) | ||||||
Europe (*) |
(2 | %) | (4 | %) | (7 | %) | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
10 | % | 9 | % | (0 | %) | ||||||
South, Central America and the Caribbean (*) |
(0 | %) | (4 | %) | (8 | %) | ||||||
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(*) | Price variation in U.S. dollars calculated on a volume-weighted-average basis; price variation in local currency calculated on a volume-weighted-average basis at constant foreign-exchange rates |
2020 Second Quarter Results | Page 11 |
Operating results |
Variation in Local Currency
January - June | Second Quarter | Second Quarter 2020 vs. | ||||||||||
DOMESTIC GRAY CEMENT PRICE | 2020 vs. 2019 | 2020 vs. 2019 | First Quarter 2020 | |||||||||
Mexico |
0 | % | 1 | % | 0 | % | ||||||
U.S.A. |
1 | % | (0 | %) | (0 | %) | ||||||
Europe, Middle East, Asia and Africa (*) |
(2 | %) | (1 | %) | 2 | % | ||||||
Europe (*) |
2 | % | 1 | % | (1 | %) | ||||||
Philippines |
(6 | %) | (6 | %) | 1 | % | ||||||
Middle East and Africa (*) |
(11 | %) | (11 | %) | (4 | %) | ||||||
South, Central America and the Caribbean (*) |
5 | % | 6 | % | 3 | % | ||||||
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READY-MIX PRICE | ||||||||||||
Mexico |
1 | % | (0 | %) | (1 | %) | ||||||
U.S.A. |
3 | % | 2 | % | 0 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
(1 | %) | (1 | %) | (2 | %) | ||||||
Europe (*) |
(0 | %) | (1 | %) | (3 | %) | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
1 | % | 1 | % | 0 | % | ||||||
South, Central America and the Caribbean (*) |
(1 | %) | (3 | %) | (6 | %) | ||||||
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AGGREGATES PRICE | ||||||||||||
Mexico |
4 | % | 2 | % | 0 | % | ||||||
U.S.A. |
1 | % | 0 | % | (0 | %) | ||||||
Europe, Middle East, Asia and Africa (*) |
1 | % | (0 | %) | (5 | %) | ||||||
Europe (*) |
0 | % | (1 | %) | (6 | %) | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
6 | % | 6 | % | (1 | %) | ||||||
South, Central America and the Caribbean (*) |
9 | % | 5 | % | (8 | %) | ||||||
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(*) | Price variation in U.S. dollars calculated on a volume-weighted-average basis; price variation in local currency calculated on a volume-weighted-average basis at constant foreign-exchange rates |
2020 Second Quarter Results | Page 12 |
Operating results |
2020 Second Quarter Results | Page 13 |
Other information |
2020 Second Quarter Results | Page 14 |
Definitions of terms and disclosures |
Exchange rates | January - June | Second Quarter | Second Quarter | |||||||||||||||||||||
2020 Average |
2019 Average |
2020 Average |
2019 Average |
2020 End of period |
2019 End of period |
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Mexican peso |
21.90 | 19.26 | 23.08 | 19.25 | 22.99 | 19.21 | ||||||||||||||||||
Euro |
0.9059 | 0.8857 | 0.9041 | 0.8907 | 0.8902 | 0.8797 | ||||||||||||||||||
British pound |
0.7944 | 0.7726 | 0.8069 | 0.7846 | 0.8070 | 0.7877 | ||||||||||||||||||
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Amounts provided in units of local currency per U.S. dollar. |
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2020 Second Quarter Results | Page 15 |
Disclaimer |
This report contains, and the reports we will file in the future may contain, forward-looking statements within the meaning of the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of 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, envision, plan, believe, foresee, predict, potential, target, strategy, intend or other similar words. These forward-looking statements reflect, as of the date such forward-looking statements are made, or unless otherwise indicated, our current expectations and projections about future events based on our knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from our expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on us or our consolidated entities, include, among other things: the cyclical activity of the construction sector; our exposure to other sectors that impact our and our clients businesses, such as, but not limited to, the energy sector; availability of raw materials and related fluctuating prices; competition in the markets in which we offer our products and services; general political, social, health, economic and business conditions in the markets in which we operate or that affect our operations and any significant economic, health, political or social developments in those markets, as well as any inherent risks to international operations; the regulatory environment, including environmental, tax, antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt agreements, the indentures that govern our outstanding senior secured notes and our other debt instruments and financial obligations; the availability of short-term credit lines or working capital facilities, which can assist us in connection with market cycles; the impact of our below investment grade debt rating on our cost of capital; loss of reputation of our brands; our ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from our cost-reduction initiatives, implement our global pricing initiatives for our products and generally meet our A Stronger CEMEX plan and Operation Resilience plans initiatives; the increasing reliance on information technology infrastructure for our sales invoicing, procurement, financial statements and other processes that can adversely affect our 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 and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, our products and services; weather conditions, including but not limited to, excessive rain and snow, and 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 USMCA, if it comes into effect, and NAFTA, while it is in effect, 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 (including global health hazards such as COVID-19); and other risks and uncertainties described in CEMEXs public filings. Readers are urged to read this report and carefully consider the risks, uncertainties and other factors that affect our business. The information contained in this report is subject to change without notice, and we are 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. Readers should review future reports filed by CEMEX with the United States Securities and Exchange Commission. CEMEXs A Stronger CEMEX plan and Operation Resilience plan is designed based on CEMEXs current beliefs and expectations. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEXs prices for CEMEXs products. This report also includes statistical data regarding the production, distribution, marketing and sale of cement, ready-mix concrete, clinker and aggregates. We generated some of this data internally, and some was obtained from independent industry publications and reports that we believe to be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their reports in this report.
UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS,
BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE
Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
2020 Second Quarter Results | Page 16 |
Exhibit 3 Second Quarter 2020 Results HARD ROCK HOTEL, UNITED STATES GOLDEN 1 CENTER, UNITED STATESExhibit 3 Second Quarter 2020 Results HARD ROCK HOTEL, UNITED STATES GOLDEN 1 CENTER, UNITED STATES
This presentation contains, and the reports we will file in the future may contain, forward-looking statements within the meaning of the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of 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,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements reflect, as of the date such forward-looking statements are made, or unless otherwise indicated, our current expectations and projections about future events based on our knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from our expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on us or our consolidated entities, include, among other things: the cyclical activity of the construction sector; our exposure to other sectors that impact our and our clients’ businesses, such as, but not limited to, the energy sector; availability of raw materials and related fluctuating prices; competition in the markets in which we offer our products and services; general political, social, health, economic and business conditions in the markets in which we operate or that affect our operations and any significant economic, health, political or social developments in those markets, as well as any inherent risks to international operations; the regulatory environment, including environmental, tax, antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt agreements, the indentures that govern our outstanding senior secured notes and our other debt instruments and financial obligations; the availability of short-term credit lines or working capital facilities, which can assist us in connection with market cycles; the impact of our below investment grade debt rating on our cost of capital; loss of reputation of our brands; our ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from our cost-reduction initiatives, implement our global pricing initiatives for our products and generally meet our “A Stronger CEMEX” plan and “Operation Resilience” plan’s initiatives; the increasing reliance on information technology infrastructure for our sales invoicing, procurement, financial statements and other processes that can adversely affect our 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 and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, our products and services; weather conditions, including but not limited to, excessive rain and snow, and 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 USMCA, if it comes into effect, and NAFTA, while it is in effect, 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 (including global health hazards such as COVID-19); and other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read this presentation and carefully consider the risks, uncertainties and other factors that affect our business. The information contained in this presentation is subject to change without notice, and we are 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. Readers should review future reports filed by CEMEX with the United States Securities and Exchange Commission. CEMEX’s “A Stronger CEMEX” plan and “Operation Resilience” plan is designed based on CEMEX’s current beliefs and expectations. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. This presentation also includes statistical data regarding the production, distribution, marketing and sale of cement, ready-mix concrete, clinker and aggregates. We generated some of this data internally, and some was obtained from independent industry publications and reports that we believe to be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their reports in this presentation. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries - 2 -This presentation contains, and the reports we will file in the future may contain, forward-looking statements within the meaning of the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of 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,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend” or other similar words. These forward-looking statements reflect, as of the date such forward-looking statements are made, or unless otherwise indicated, our current expectations and projections about future events based on our knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from our expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on us or our consolidated entities, include, among other things: the cyclical activity of the construction sector; our exposure to other sectors that impact our and our clients’ businesses, such as, but not limited to, the energy sector; availability of raw materials and related fluctuating prices; competition in the markets in which we offer our products and services; general political, social, health, economic and business conditions in the markets in which we operate or that affect our operations and any significant economic, health, political or social developments in those markets, as well as any inherent risks to international operations; the regulatory environment, including environmental, tax, antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt agreements, the indentures that govern our outstanding senior secured notes and our other debt instruments and financial obligations; the availability of short-term credit lines or working capital facilities, which can assist us in connection with market cycles; the impact of our below investment grade debt rating on our cost of capital; loss of reputation of our brands; our ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from our cost-reduction initiatives, implement our global pricing initiatives for our products and generally meet our “A Stronger CEMEX” plan and “Operation Resilience” plan’s initiatives; the increasing reliance on information technology infrastructure for our sales invoicing, procurement, financial statements and other processes that can adversely affect our 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 and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, our products and services; weather conditions, including but not limited to, excessive rain and snow, and 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 USMCA, if it comes into effect, and NAFTA, while it is in effect, 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 (including global health hazards such as COVID-19); and other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read this presentation and carefully consider the risks, uncertainties and other factors that affect our business. The information contained in this presentation is subject to change without notice, and we are 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. Readers should review future reports filed by CEMEX with the United States Securities and Exchange Commission. CEMEX’s “A Stronger CEMEX” plan and “Operation Resilience” plan is designed based on CEMEX’s current beliefs and expectations. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. This presentation also includes statistical data regarding the production, distribution, marketing and sale of cement, ready-mix concrete, clinker and aggregates. We generated some of this data internally, and some was obtained from independent industry publications and reports that we believe to be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their reports in this presentation. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries - 2 -
Key messages for 2nd Quarter 2020 ▪ New COVID-19 operational protocols allowed us to continue operating in most markets ▪ Geographic diversification and distinct market consumption modalities paid off ▪ Hard stop on non-essential expenses and capex resulted in higher profitability and FCF in a declining sales environment ▪ Substantially enhanced our customer experience 1 and NPS through proven e-commerce platforms and distribution network ▪ Resilient prices in volatile world ▪ Energy tailwinds throughout portfolio ▪ Liquidity measures taken in 1H20 mitigated financial risks 1 Net Promoter Score - 3 -Key messages for 2nd Quarter 2020 ▪ New COVID-19 operational protocols allowed us to continue operating in most markets ▪ Geographic diversification and distinct market consumption modalities paid off ▪ Hard stop on non-essential expenses and capex resulted in higher profitability and FCF in a declining sales environment ▪ Substantially enhanced our customer experience 1 and NPS through proven e-commerce platforms and distribution network ▪ Resilient prices in volatile world ▪ Energy tailwinds throughout portfolio ▪ Liquidity measures taken in 1H20 mitigated financial risks 1 Net Promoter Score - 3 -
Priorities rolled out in February under “Operation Resilience” assured business continuity and improved customer experience Customer Financial Health Experience Resilience ▪ 52 new health and safety ▪ 13% increase in visits to CEMEX ▪ Maximize liquidity protocols to address Go vs. pre-COVID-19 levels ▪ Hard stop on non-essential COVID-19 ▪ Fortified supply chain and robust operating expenses, capex distribution network to meet ▪ Testing, tracking and deferrals and working capital customer demands timely case management discipline ▪ Sharing COVID-19 safety ▪ Contact tracing to prevent ▪ Obtained important financial protocols with customers and spread of disease covenant flexibilities suppliers ▪ Outreach to employee ▪ Highest ever global Net Promoter families to augment health Score (NPS) of 67 in 2Q20 and safety measures at home 4 - 4 -Priorities rolled out in February under “Operation Resilience” assured business continuity and improved customer experience Customer Financial Health Experience Resilience ▪ 52 new health and safety ▪ 13% increase in visits to CEMEX ▪ Maximize liquidity protocols to address Go vs. pre-COVID-19 levels ▪ Hard stop on non-essential COVID-19 ▪ Fortified supply chain and robust operating expenses, capex distribution network to meet ▪ Testing, tracking and deferrals and working capital customer demands timely case management discipline ▪ Sharing COVID-19 safety ▪ Contact tracing to prevent ▪ Obtained important financial protocols with customers and spread of disease covenant flexibilities suppliers ▪ Outreach to employee ▪ Highest ever global Net Promoter families to augment health Score (NPS) of 67 in 2Q20 and safety measures at home 4 - 4 -
Substantially strengthened our financial position Cash and cash-equivalents variation 86 446 2,832 -87 1,000 1,387 Cash and cash Issuance of Drawdown Free cash Other Sources/Uses Cash and cash equivalents as 7.375% senior USD of revolving flow in 2Q20 of cash, net equivalents as of 1Q20 notes due 2027 credit facility, other of 2Q20 credit lines and loans 5 Millions of U.S. dollars - 5 -Substantially strengthened our financial position Cash and cash-equivalents variation 86 446 2,832 -87 1,000 1,387 Cash and cash Issuance of Drawdown Free cash Other Sources/Uses Cash and cash equivalents as 7.375% senior USD of revolving flow in 2Q20 of cash, net equivalents as of 1Q20 notes due 2027 credit facility, other of 2Q20 credit lines and loans 5 Millions of U.S. dollars - 5 -
Demand for our products was highly correlated to government COVID-19 regulations and improved as restrictions eased Cement volumes June 2Q20 Normal operations YoY % var. 2020 Industry can partially operate/Some restrictions in place CEMEX (10%) 9% Total or partial shutdown for part of quarter United States 6% 18% Mexico (7%) 8% Europe (2%) 14% UK (36%) (14%) MEAA (24%) (1%) Philippines (31%) 8% SCAC (29%) 3% Panama (88%) (68%) Dominican Rep (32%) 10% June EBITDA grew 27% YoY on a like-to-like basis, highest monthly growth in 14 months 6 MEAA = Middle East, Africa and Asia Map color relates to level of restrictions during 2Q20 - 6 -Demand for our products was highly correlated to government COVID-19 regulations and improved as restrictions eased Cement volumes June 2Q20 Normal operations YoY % var. 2020 Industry can partially operate/Some restrictions in place CEMEX (10%) 9% Total or partial shutdown for part of quarter United States 6% 18% Mexico (7%) 8% Europe (2%) 14% UK (36%) (14%) MEAA (24%) (1%) Philippines (31%) 8% SCAC (29%) 3% Panama (88%) (68%) Dominican Rep (32%) 10% June EBITDA grew 27% YoY on a like-to-like basis, highest monthly growth in 14 months 6 MEAA = Middle East, Africa and Asia Map color relates to level of restrictions during 2Q20 - 6 -
Despite volume drop, cost containment efforts and pricing led to improved EBITDA margin Net sales Operating EBITDA Operating EBITDA Free cash flow after margin maintenance capex -10% l-t-l -6% l-t-l +0.7pp -14% -11% -35% 3,400 623 19.0% 217 18.3% 554 2,912 140 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 7 Millions of U.S. dollars - 7 -Despite volume drop, cost containment efforts and pricing led to improved EBITDA margin Net sales Operating EBITDA Operating EBITDA Free cash flow after margin maintenance capex -10% l-t-l -6% l-t-l +0.7pp -14% -11% -35% 3,400 623 19.0% 217 18.3% 554 2,912 140 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 7 Millions of U.S. dollars - 7 -
Achieved ~US$140 M of savings under “Operation Resilience” in 1H20 1H20 savings under Operation Resilience ▪ US$230 M Operation Resilience includes 141 US$150 M of expected savings from A Stronger 25 CEMEX, plus US$80 M COVID-19 related cost containment initiatives for 2020 20 79 15▪ YTD savings primarily driven by SG&A 79 2 ▪ Cost savings contributed 2.4pp to 1H20 EBITDA margin 72 ▪ Savings on maintenance relate primarily to deferrals and will be largely executed in 2H20 SG&A Operations Low-cost Energy Maintenance Total suppliers 8 Millions of U.S. dollars - 8 -Achieved ~US$140 M of savings under “Operation Resilience” in 1H20 1H20 savings under Operation Resilience ▪ US$230 M Operation Resilience includes 141 US$150 M of expected savings from A Stronger 25 CEMEX, plus US$80 M COVID-19 related cost containment initiatives for 2020 20 79 15▪ YTD savings primarily driven by SG&A 79 2 ▪ Cost savings contributed 2.4pp to 1H20 EBITDA margin 72 ▪ Savings on maintenance relate primarily to deferrals and will be largely executed in 2H20 SG&A Operations Low-cost Energy Maintenance Total suppliers 8 Millions of U.S. dollars - 8 -
Regional Highlights CONCRETE HOUSE, UNITED KINGDOMRegional Highlights CONCRETE HOUSE, UNITED KINGDOM
United States: Continued demand momentum and cost savings increased profitability and margin 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,971 1,006 Volume 8% 6% Cement % var (l-t-l) 7% 1% Price (LC) 1% (0%) Operating EBITDA 361 198 Volume 2% (5%) Ready mix % var (l-t-l) 23% 16% Price (LC) 3% 2% Operating EBITDA margin 18.3% 19.7% Volume 3% (3%) Aggregates pp var 2.4pp 2.4pp Price (LC) 1% 0% ▪ Increase in cement volumes driven by infrastructure and residential activity ▪ Residential sector rebounding much faster than expected ▪ Stable prices sequentially in our three core products ▪ EBITDA margin expansion due primarily to higher ready-mix price, cost reduction efforts and lower fuel costs ▪ Highest quarterly EBITDA in a decade 10 Millions of U.S. dollars - 10 -United States: Continued demand momentum and cost savings increased profitability and margin 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,971 1,006 Volume 8% 6% Cement % var (l-t-l) 7% 1% Price (LC) 1% (0%) Operating EBITDA 361 198 Volume 2% (5%) Ready mix % var (l-t-l) 23% 16% Price (LC) 3% 2% Operating EBITDA margin 18.3% 19.7% Volume 3% (3%) Aggregates pp var 2.4pp 2.4pp Price (LC) 1% 0% ▪ Increase in cement volumes driven by infrastructure and residential activity ▪ Residential sector rebounding much faster than expected ▪ Stable prices sequentially in our three core products ▪ EBITDA margin expansion due primarily to higher ready-mix price, cost reduction efforts and lower fuel costs ▪ Highest quarterly EBITDA in a decade 10 Millions of U.S. dollars - 10 -
Mexico: Bagged cement demand and resilient pricing cushion contraction in formal construction activity 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,253 568 Volume (3%) (7%) Cement % var (l-t-l) (3%) (10%) Price (LC) 0% 1% Operating EBITDA 416 183 Volume (23%) (44%) Ready mix % var (l-t-l) (6%) (10%) Price (LC) 1% (0%) Operating EBITDA margin 33.2% 32.3% Volume (19%) (35%) Aggregates pp var (1.1pp) (0.2pp) Price (LC) 4% 2% ▪ Growth in bagged cement supported by government social programs and home improvement activity ▪ Bulk cement and ready-mix impacted by COVID-19 related restrictions on private sector, formal construction ▪ Flat sequential prices in local-currency terms despite declining volumes ▪ Initiatives to contain cost and expenses, a favorable product mix effect and tailwinds from lower fuel prices supported EBITDA margin during the quarter 11 Millions of U.S. dollars - 11 -Mexico: Bagged cement demand and resilient pricing cushion contraction in formal construction activity 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,253 568 Volume (3%) (7%) Cement % var (l-t-l) (3%) (10%) Price (LC) 0% 1% Operating EBITDA 416 183 Volume (23%) (44%) Ready mix % var (l-t-l) (6%) (10%) Price (LC) 1% (0%) Operating EBITDA margin 33.2% 32.3% Volume (19%) (35%) Aggregates pp var (1.1pp) (0.2pp) Price (LC) 4% 2% ▪ Growth in bagged cement supported by government social programs and home improvement activity ▪ Bulk cement and ready-mix impacted by COVID-19 related restrictions on private sector, formal construction ▪ Flat sequential prices in local-currency terms despite declining volumes ▪ Initiatives to contain cost and expenses, a favorable product mix effect and tailwinds from lower fuel prices supported EBITDA margin during the quarter 11 Millions of U.S. dollars - 11 -
EMEAA: Growth in Central Europe and Israel offset by stringent lockdown measures in rest of markets 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,989 987 Volume (5%) (12%) Cement % var (l-t-l) (8%) (13%) Price (l-t-l) (2%) (1%) Operating EBITDA 251 147 Volume (8%) (12%) Ready mix % var (l-t-l) (13%) (20%) Price (l-t-l) (1%) (1%) Operating EBITDA margin 12.6% 14.9% Volume (10%) (13%) Aggregates pp var (0.7pp) (1.5pp) Price (l-t-l) 1% (0%) ▪ Strong cement volume growth and pricing performance in Central Europe ▪ Significant deceleration in construction activity in France, UK, and Spain due to strict COVID-19 restrictions; marked recovery seen in June as economies opened ▪ Philippines volumes adversely impacted by lockdown and resulting closure of Solid plant for two months ▪ Strong performance in Israel driven by continued construction activity in all sectors ▪ Construction activity in Egypt slowed due to suspension of private residential construction permits, fewer working days and mobility restrictions related to COVID-19 Millions of U.S. dollars EMEAA: Europe, Middle East, Africa and Asia region 12 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 12 -EMEAA: Growth in Central Europe and Israel offset by stringent lockdown measures in rest of markets 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,989 987 Volume (5%) (12%) Cement % var (l-t-l) (8%) (13%) Price (l-t-l) (2%) (1%) Operating EBITDA 251 147 Volume (8%) (12%) Ready mix % var (l-t-l) (13%) (20%) Price (l-t-l) (1%) (1%) Operating EBITDA margin 12.6% 14.9% Volume (10%) (13%) Aggregates pp var (0.7pp) (1.5pp) Price (l-t-l) 1% (0%) ▪ Strong cement volume growth and pricing performance in Central Europe ▪ Significant deceleration in construction activity in France, UK, and Spain due to strict COVID-19 restrictions; marked recovery seen in June as economies opened ▪ Philippines volumes adversely impacted by lockdown and resulting closure of Solid plant for two months ▪ Strong performance in Israel driven by continued construction activity in all sectors ▪ Construction activity in Egypt slowed due to suspension of private residential construction permits, fewer working days and mobility restrictions related to COVID-19 Millions of U.S. dollars EMEAA: Europe, Middle East, Africa and Asia region 12 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 12 -
SCAC: Favorable pricing and cost containment despite industry lockdowns 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 651 279 Volume (19%) (29%) Cement % var (l-t-l) (19%) (30%) Price (l-t-l) 5% 6% Operating EBITDA 156 66 Volume (42%) (60%) Ready mix % var (l-t-l) (16%) (25%) Price (l-t-l) (1%) (3%) Operating EBITDA margin 24.0% 23.6% Volume (44%) (61%) Aggregates pp var 1.0pp 1.7pp Price (l-t-l) 9% 5% ▪ Restrictions to construction activity significantly impacted our volume performance; however, improvement in back half of quarter as restrictions eased ▪ Improved sequential pricing in the region in practically all countries ▪ EBITDA margin increased 1.7pp mainly due cost reduction initiatives and higher prices, despite significant volume declines Millions of U.S. dollars SCAC: South, Central America and the Caribbean region 13 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 13 -SCAC: Favorable pricing and cost containment despite industry lockdowns 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 651 279 Volume (19%) (29%) Cement % var (l-t-l) (19%) (30%) Price (l-t-l) 5% 6% Operating EBITDA 156 66 Volume (42%) (60%) Ready mix % var (l-t-l) (16%) (25%) Price (l-t-l) (1%) (3%) Operating EBITDA margin 24.0% 23.6% Volume (44%) (61%) Aggregates pp var 1.0pp 1.7pp Price (l-t-l) 9% 5% ▪ Restrictions to construction activity significantly impacted our volume performance; however, improvement in back half of quarter as restrictions eased ▪ Improved sequential pricing in the region in practically all countries ▪ EBITDA margin increased 1.7pp mainly due cost reduction initiatives and higher prices, despite significant volume declines Millions of U.S. dollars SCAC: South, Central America and the Caribbean region 13 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 13 -
2Q20 Results SOLAZ LOS CABOS, MEXICO2Q20 Results SOLAZ LOS CABOS, MEXICO
Cost improvements, higher prices and energy tailwinds partially offset impact of lower volumes on EBITDA EBITDA variation -6% -11% 623 85 586 -10 554 80 -32 -31 -161 2Q19 Volume Price Variable costs Fixed costs Others 2Q20 FX 2Q20 l-t-l 15 Millions of U.S. dollars - 15 -Cost improvements, higher prices and energy tailwinds partially offset impact of lower volumes on EBITDA EBITDA variation -6% -11% 623 85 586 -10 554 80 -32 -31 -161 2Q19 Volume Price Variable costs Fixed costs Others 2Q20 FX 2Q20 l-t-l 15 Millions of U.S. dollars - 15 -
Proactive working capital management and lower capex strengthened FCF generation January - June Second Quarter 2020 2019 % var 2020 2019 % var Average working capital days Operating EBITDA 1,088 1,169 (7%) 554 623 (11%) - Net Financial Expense 355 353 182 174 - Maintenance Capex 217 264 94 144 - Change in Working Capital 481 570 71 44 - Taxes Paid 81 111 40 74 - Other Cash Items (net) 43 17 29 (5) -6 - Free Cash Flow (13) (26) (1) (25) Discontinued Operations Free Cash Flow after (75) (121) 38% 140 217 (35%) Maintenance Capex -11 - Strategic Capex 115 84 54 48 2Q20 2Q19 Free Cash Flow (190) (205) 7% 86 168 (49%) 16 Millions of U.S. dollars - 16 -Proactive working capital management and lower capex strengthened FCF generation January - June Second Quarter 2020 2019 % var 2020 2019 % var Average working capital days Operating EBITDA 1,088 1,169 (7%) 554 623 (11%) - Net Financial Expense 355 353 182 174 - Maintenance Capex 217 264 94 144 - Change in Working Capital 481 570 71 44 - Taxes Paid 81 111 40 74 - Other Cash Items (net) 43 17 29 (5) -6 - Free Cash Flow (13) (26) (1) (25) Discontinued Operations Free Cash Flow after (75) (121) 38% 140 217 (35%) Maintenance Capex -11 - Strategic Capex 115 84 54 48 2Q20 2Q19 Free Cash Flow (190) (205) 7% 86 168 (49%) 16 Millions of U.S. dollars - 16 -
Stable Net Debt under “Operation Resilience” Net Debt plus perpetuals variation 0% 81 10,807 10,756 55 86 Net Debt plus perpetual Free cash flow in 2Q20 Debt FX effect Other Net Debt plus perpetual notes as of 1Q20 notes as of 2Q20 17 Millions of U.S. dollars - 17 -Stable Net Debt under “Operation Resilience” Net Debt plus perpetuals variation 0% 81 10,807 10,756 55 86 Net Debt plus perpetual Free cash flow in 2Q20 Debt FX effect Other Net Debt plus perpetual notes as of 1Q20 notes as of 2Q20 17 Millions of U.S. dollars - 17 -
Healthy debt maturity profile with manageable refinancing risk Total debt excluding perpetual notes as of June 30, 2020: US$13,196 million 2017 Facilities Agreement Other bank debt Average life of debt: Fixed Income 4.2 years Leases 2,561 2,453 Revolving 2,055 Credit 1,135 Tranche 1,497 1,205 1,061 999 809 528 28 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 18 Millions of U.S. dollars - 18 -Healthy debt maturity profile with manageable refinancing risk Total debt excluding perpetual notes as of June 30, 2020: US$13,196 million 2017 Facilities Agreement Other bank debt Average life of debt: Fixed Income 4.2 years Leases 2,561 2,453 Revolving 2,055 Credit 1,135 Tranche 1,497 1,205 1,061 999 809 528 28 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 18 Millions of U.S. dollars - 18 -
Proactive de-risking through amendment of financial covenants ▪ Amendment was proactive response to impact of COVID-19 on the global economy and our business ▪ Obtained 100% of responding banks consent to amend our Facilities Agreement ▪ Modified leverage and coverage covenants ▪ Interest rate margin grid adjusted to accommodate the changes to the leverage covenant ▪ Temporarily limits certain flexibilities related to capex, acquisitions, share buybacks, among others • Restrictions aligned to previously announced measures to contain the impact of COVID-19 7.00x 7.00x 7.00x 6.75x Applicable 6.00x Leverage 5.75x 5.75x 5.75x margin (bps) 5.25x 5.25x New leverage covenant 4.75x 4.75x Above 6.00x 475 4.50x 5.50x to 5.99x 425 2.75x 2.75x 2.75x 2.50x 2.50x 2.50x 2.50x 5.00x to 5.49x 375 2.25x 2.25x 1.75x 1.75x 1.75x 1.75x Below 5.00x, margin grid remained New coverage covenant unchanged Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 & thereafter 19 - 19 -Proactive de-risking through amendment of financial covenants ▪ Amendment was proactive response to impact of COVID-19 on the global economy and our business ▪ Obtained 100% of responding banks consent to amend our Facilities Agreement ▪ Modified leverage and coverage covenants ▪ Interest rate margin grid adjusted to accommodate the changes to the leverage covenant ▪ Temporarily limits certain flexibilities related to capex, acquisitions, share buybacks, among others • Restrictions aligned to previously announced measures to contain the impact of COVID-19 7.00x 7.00x 7.00x 6.75x Applicable 6.00x Leverage 5.75x 5.75x 5.75x margin (bps) 5.25x 5.25x New leverage covenant 4.75x 4.75x Above 6.00x 475 4.50x 5.50x to 5.99x 425 2.75x 2.75x 2.75x 2.50x 2.50x 2.50x 2.50x 5.00x to 5.49x 375 2.25x 2.25x 1.75x 1.75x 1.75x 1.75x Below 5.00x, margin grid remained New coverage covenant unchanged Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 & thereafter 19 - 19 -
2020 Outlook I.E. LETICIA ARANGO, COLOMBIA2020 Outlook I.E. LETICIA ARANGO, COLOMBIA
1 2020 FCF guidance slightly improved for energy Energy cost per ton (7%) to (5%) of cement produced Capital ~US$700 million in total expenditures Cash taxes ~US$200 million 2 Cost of debt Increase of US$25 to US$50 million 1 Reflects CEMEX’s current expectations 21 2 Including perpetual and convertible securities - 21 -1 2020 FCF guidance slightly improved for energy Energy cost per ton (7%) to (5%) of cement produced Capital ~US$700 million in total expenditures Cash taxes ~US$200 million 2 Cost of debt Increase of US$25 to US$50 million 1 Reflects CEMEX’s current expectations 21 2 Including perpetual and convertible securities - 21 -
What to expect ▪ Pleased with 2Q20 results and the resiliency of our markets under unprecedented industry lockdowns ▪ Challenges remain as market visibility and pace of economic recovery is still quite low ▪ Key macro factors to watch include duration of existing fiscal and monetary stimulus measures, pace of economic recovery, additional lockdown measures as well as infrastructure stimulus ▪ Continue to prioritize the health and safety of our employees and their families as well as our customers in all that we do ▪ Adjust our strategy as necessary to deal with the next phase of COVID-19: the result of declining economic activity on demand in each market and the subsequent recovery ▪ Expect our COVID-19 cost initiatives, excluding maintenance, to remain in place for rest of 2020 ▪ As we become more comfortable on outlook, we will redeploy cash to pay down debt 22 - 22 -What to expect ▪ Pleased with 2Q20 results and the resiliency of our markets under unprecedented industry lockdowns ▪ Challenges remain as market visibility and pace of economic recovery is still quite low ▪ Key macro factors to watch include duration of existing fiscal and monetary stimulus measures, pace of economic recovery, additional lockdown measures as well as infrastructure stimulus ▪ Continue to prioritize the health and safety of our employees and their families as well as our customers in all that we do ▪ Adjust our strategy as necessary to deal with the next phase of COVID-19: the result of declining economic activity on demand in each market and the subsequent recovery ▪ Expect our COVID-19 cost initiatives, excluding maintenance, to remain in place for rest of 2020 ▪ As we become more comfortable on outlook, we will redeploy cash to pay down debt 22 - 22 -
Appendix DUBAI INTERNATIONAL AIRPORT, TERMINAL D, UNITED ARAB EMIRATESAppendix DUBAI INTERNATIONAL AIRPORT, TERMINAL D, UNITED ARAB EMIRATES
Consolidated volumes and prices 6M20 vs. 6M19 2Q20 vs. 2Q19 2Q20 vs. 1Q20 Volume (l-t-l) (5%) (10%) (4%) Domestic gray Price (USD) (4%) (5%) (2%) cement Price (l-t-l) 1% 1% 1% Volume (l-t-l) (10%) (18%) (10%) Ready mix Price (USD) 1% 1% 1% Price (l-t-l) 3% 3% 2% Volume (l-t-l) (9%) (15%) (4%) Aggregates Price (USD) 2% 2% 0% Price (l-t-l) 4% 4% 1% 24 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 24 -Consolidated volumes and prices 6M20 vs. 6M19 2Q20 vs. 2Q19 2Q20 vs. 1Q20 Volume (l-t-l) (5%) (10%) (4%) Domestic gray Price (USD) (4%) (5%) (2%) cement Price (l-t-l) 1% 1% 1% Volume (l-t-l) (10%) (18%) (10%) Ready mix Price (USD) 1% 1% 1% Price (l-t-l) 3% 3% 2% Volume (l-t-l) (9%) (15%) (4%) Aggregates Price (USD) 2% 2% 0% Price (l-t-l) 4% 4% 1% 24 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 24 -
Additional information on debt and perpetual notes Other Second Quarter First Quarter 7% 2020 2019 % var 2020 1 Euro 13,196 11,048 19% 11,701 Total debt 21% Currency Short-term 6% 7% 4% U.S. denomination dollar Long-term 94% 93% 96% 71% Perpetual notes 443 444 (0%) 441 Total debt plus perpetual notes 13,638 11,492 19% 12,143 Cash and cash equivalents 2,832 304 831% 1,387 Net debt plus perpetual notes 10,807 11,187 (3%) 10,756 Variable 2 10,790 10,805 (0%) 10,751 Consolidated funded debt 29% 2 4.57 4.00 4.40 3 Consolidated leverage ratio Interest rate 2 3.69 4.11 3.87 Consolidated coverage ratio Fixed 71% Millions of U.S. dollars 1 Includes convertible notes and leases, in accordance with International Financial Reporting Standard (IFRS) 2 Calculated in accordance with our contractual obligations under the 2017 Facilities Agreement, as amended and restated 25 3 Includes the effect of interest-rate swap instruments related to bank loans to fix floating rates with a nominal amount of US$1,000 million - 25 -Additional information on debt and perpetual notes Other Second Quarter First Quarter 7% 2020 2019 % var 2020 1 Euro 13,196 11,048 19% 11,701 Total debt 21% Currency Short-term 6% 7% 4% U.S. denomination dollar Long-term 94% 93% 96% 71% Perpetual notes 443 444 (0%) 441 Total debt plus perpetual notes 13,638 11,492 19% 12,143 Cash and cash equivalents 2,832 304 831% 1,387 Net debt plus perpetual notes 10,807 11,187 (3%) 10,756 Variable 2 10,790 10,805 (0%) 10,751 Consolidated funded debt 29% 2 4.57 4.00 4.40 3 Consolidated leverage ratio Interest rate 2 3.69 4.11 3.87 Consolidated coverage ratio Fixed 71% Millions of U.S. dollars 1 Includes convertible notes and leases, in accordance with International Financial Reporting Standard (IFRS) 2 Calculated in accordance with our contractual obligations under the 2017 Facilities Agreement, as amended and restated 25 3 Includes the effect of interest-rate swap instruments related to bank loans to fix floating rates with a nominal amount of US$1,000 million - 25 -
Additional information on debt 1 Total debt by instrument Second Quarter First Quarter 2020 % of total 2020 % of total 15% Fixed Income 7,205 55% 6,177 53% 2017 Facilities Agreement 3,984 30% 3,832 33% Others 2,007 15% 1,692 14% 30% 55% 1 13,196 11,701 Total Debt Millions of U.S. dollars 26 1 Includes leases, in accordance with IFRS - 26 -Additional information on debt 1 Total debt by instrument Second Quarter First Quarter 2020 % of total 2020 % of total 15% Fixed Income 7,205 55% 6,177 53% 2017 Facilities Agreement 3,984 30% 3,832 33% Others 2,007 15% 1,692 14% 30% 55% 1 13,196 11,701 Total Debt Millions of U.S. dollars 26 1 Includes leases, in accordance with IFRS - 26 -
2Q20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 2Q20 vs. 2Q19 2Q20 vs. 2Q19 2Q20 vs. 2Q19 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (7%) (16%) 1% (44%) (17%) (0%) (35%) (14%) 2% U.S. 6% (0%) (0%) (5%) 2% 2% (3%) 0% 0% Europe (2%) (2%) 1% (18%) (4%) (1%) (18%) (4%) (1%) Philippines (31%) (3%) (6%) N/A N/A N/A N/A N/A N/A Colombia (40%) (6%) 9% (57%) (10%) 3% (62%) (10%) 4% Panama (88%) (5%) (5%) (99%) 22% 22% (96%) (6%) (6%) Costa Rica (15%) (4%) (7%) (35%) (9%) (11%) (60%) 39% 35% 27 Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates - 27 -2Q20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 2Q20 vs. 2Q19 2Q20 vs. 2Q19 2Q20 vs. 2Q19 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (7%) (16%) 1% (44%) (17%) (0%) (35%) (14%) 2% U.S. 6% (0%) (0%) (5%) 2% 2% (3%) 0% 0% Europe (2%) (2%) 1% (18%) (4%) (1%) (18%) (4%) (1%) Philippines (31%) (3%) (6%) N/A N/A N/A N/A N/A N/A Colombia (40%) (6%) 9% (57%) (10%) 3% (62%) (10%) 4% Panama (88%) (5%) (5%) (99%) 22% 22% (96%) (6%) (6%) Costa Rica (15%) (4%) (7%) (35%) (9%) (11%) (60%) 39% 35% 27 Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates - 27 -
6M20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 6M20 vs. 6M19 6M20 vs. 6M19 6M20 vs. 6M19 Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Mexico (3%) (11%) 0% (23%) (10%) 1% (19%) (7%) 4% U.S. 8% 1% 1% 2% 3% 3% 3% 1% 1% Europe (0%) (2%) 2% (13%) (3%) (0%) (14%) (2%) 0% Philippines (17%) (4%) (6%) N/A N/A N/A N/A N/A N/A Colombia (27%) (5%) 9% (40%) (10%) 3% (42%) (10%) 3% Panama (59%) (6%) (6%) (68%) (6%) (6%) (63%) (5%) (5%) Costa Rica (10%) (4%) (8%) (23%) (7%) (11%) (66%) 90% 82% 28 Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates - 28 -6M20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 6M20 vs. 6M19 6M20 vs. 6M19 6M20 vs. 6M19 Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Mexico (3%) (11%) 0% (23%) (10%) 1% (19%) (7%) 4% U.S. 8% 1% 1% 2% 3% 3% 3% 1% 1% Europe (0%) (2%) 2% (13%) (3%) (0%) (14%) (2%) 0% Philippines (17%) (4%) (6%) N/A N/A N/A N/A N/A N/A Colombia (27%) (5%) 9% (40%) (10%) 3% (42%) (10%) 3% Panama (59%) (6%) (6%) (68%) (6%) (6%) (63%) (5%) (5%) Costa Rica (10%) (4%) (8%) (23%) (7%) (11%) (66%) 90% 82% 28 Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates - 28 -
Definitions 6M20 / 6M19 Results for the first six months of the years 2020 and 2019, respectively SCAC South, Central America and the Caribbean EMEAA Europe, Middle East, Africa and Asia When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for Cement reported cement volumes changed from total domestic cement including clinker to domestic gray cement) LC Local currency l-t-l (like to like) On a like-to-like basis adjusting for currency fluctuations and for investments/divestments when applicable Investments incurred for the purpose of ensuring the company’s operational continuity. These include capital Maintenance capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory expenditures capital expenditures, which are projects required to comply with governmental regulations or company policies Net Promoter Score (NPS) A core KPI that helps us to systematically measure our customer loyalty and satisfaction Operating EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products Investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on Strategic capital expenditures projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs TCL Operations Trinidad Cement Limited includes Barbados, Guyana, Jamaica and Trinidad and Tobago USD U.S. dollars % var Percentage variation 29 - 29 -Definitions 6M20 / 6M19 Results for the first six months of the years 2020 and 2019, respectively SCAC South, Central America and the Caribbean EMEAA Europe, Middle East, Africa and Asia When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for Cement reported cement volumes changed from total domestic cement including clinker to domestic gray cement) LC Local currency l-t-l (like to like) On a like-to-like basis adjusting for currency fluctuations and for investments/divestments when applicable Investments incurred for the purpose of ensuring the company’s operational continuity. These include capital Maintenance capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory expenditures capital expenditures, which are projects required to comply with governmental regulations or company policies Net Promoter Score (NPS) A core KPI that helps us to systematically measure our customer loyalty and satisfaction Operating EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products Investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on Strategic capital expenditures projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs TCL Operations Trinidad Cement Limited includes Barbados, Guyana, Jamaica and Trinidad and Tobago USD U.S. dollars % var Percentage variation 29 - 29 -
Contact Information Investors Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1 Calendar of Events October 28, 2020 Third quarter 2020 financial results conference callContact Information Investors Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1 Calendar of Events October 28, 2020 Third quarter 2020 financial results conference call