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 February, 2021
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): ☐
1. | Press release dated February 11, 2021, announcing fourth quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX) (CEMEX). | |
2. | Fourth quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX. | |
3. | Presentation regarding fourth quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX. |
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: February 11, 2021 | By: | /s/ Rafael Garza Lozano | ||||
Name: Rafael Garza Lozano | ||||||
Title: Chief Comptroller |
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EXHIBIT INDEX
EXHIBIT NO. |
DESCRIPTION | |
1.
2.
3. |
Press release dated February 11, 2021, announcing fourth quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX) (CEMEX).
Fourth quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX.
Presentation regarding fourth quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX. |
4
Exhibit 1
Media Relations | Investor Relations | |||
Andrea Castro Velez | Pablo Gutierrez | |||
+57 (1) 603-9134 | +57 (1) 603-9051 | |||
andrea.castro@cemex.com | pabloantonio.gutierrez@cemex.com |
CLHS FREE CASH FLOW REACHED US$79 MILLION, AND NET
DEBT WAS REDUCED BY 11%, DURING 2020
| Improved EBITDA margin by 2.1pp for the full year 2020, supported by our pricing strategy and our costs-savings program, despite volumes were heavily impacted by the pandemic. |
| Free cash flow reached US$79 million during the full year 2020, a 45% free cash flow to EBITDA conversion rate. |
| Reduced net debt by 11% during 2020; our leverage ratio remained relatively stable at 3.7x from December 2019 to December 2020, despite lower EBITDA. |
| Our Net-Promoter-Score during the fourth quarter of 2020 reached a record level of 75 points, driven by our customer support programs, such as Safety Protocols, CEMEX Go, and CEMEX Te Acompaña. |
BOGOTA, COLOMBIA. FEBRUARY 11, 2021 CEMEX Latam Holdings, S.A. (CLH) (BVC: CLH), announced today that its consolidated net sales and EBITDA declined by 3% and 1%, respectively, during the fourth quarter of 2020 compared to those of the same period of 2019*. EBITDA margin improved by 0.4 percentage points during the fourth quarter of 2020.
Jesus Gonzalez, CEO of CLH, said: I am proud of how the organization responded to the challenge of the sudden arrival of COVID-19 in our footprint. We reacted quickly and forcefully to a highly uncertain situation, prioritizing the safety of our employees and customers while ensuring business continuity and financial flexibility. In a very challenging year, we achieved a margin expansion of 2.1pp, a 45% free cash flow to EBITDA conversion rate, and an 11% reduction in net debt. Our customers rewarded our safety, reliability, and consistency efforts with the highest Net-Promoter-Score in our history.
Jesus Gonzalez added, Regarding sustainability, we advanced decisively in our efforts during 2020. We increased our alternative fuel substitution rate by 7 percentage points and reduced our clinker factor by 2 percentage points, on a year-over-year basis.
Consolidated Corporate Results
During the fourth quarter of 2020, controlling interest net income was US$8 million, compared with a loss of US$3 million during the same quarter of 2019.
Geographical Markets Fourth Quarter 2020 Highlights
Operating EBITDA in Colombia reached US$30 million, 1% higher on a like-to-like basis, compared with that of the fourth quarter of 2019. Net sales increased by 1% on a like-to-like basis, versus those of the same period of the previous year, to US$120 million.
In Panama, operating EBITDA during the fourth quarter was US$4 million. Net sales reached US$23 million during the quarter, a decline of 40% compared with those of the same period of 2019.
In Costa Rica, operating EBITDA reached US$8 million during the quarter, 34% higher on a like-to-like basis compared with that of the previous year. Net sales reached US$22 million, 7% higher on a like-to-like basis, compared with those of the fourth quarter of 2019.
1
In the Rest of CLH operating EBITDA increased by 20% on a like-to-like basis, to US$16 million during the quarter. Quarterly net sales reached US$58 million, an increase of 12% on a like-to-like basis, compared with those of the same period of 2019.
* | Like-to-like adjusted for currency fluctuations. |
In accordance with its vision, CLH continues to constantly evolve aiming to become more flexible in our operations, more creative in our commercial offerings, more sustainable in our use of resources, more innovative in conducting our business, and more efficient in our capital allocation. CLH is a regional leader in the building solutions industry that provides high-quality products and reliable services to customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, and Guatemala.
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This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of CLH to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CLH does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy, changes derived from events affecting CEMEX, S.A.B de C.V. and subsidiaries (CEMEX) and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CLH assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating earnings before other expenses, net plus depreciation and operating amortization. Free Cash Flow is defined as operating EBITDA minus net interest expense, maintenance and expansion capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation). All of the above items are prepared under International Financial Reporting Standards as issued by the International Accounting Standards Board. Operating EBITDA and Free Cash Flow (as defined above) are presented herein because CLH believes that they are widely accepted as financial indicators of CLHs ability to internally fund capital expenditures and service or incur debt. Operating EBITDA and Free Cash Flow should not be considered as indicators of CLHs financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
2
Exhibit 2
2020 FOURTH QUARTER RESULTS ? Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH ? Investor Relations Pablo Gutiérrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com
OPERATING AND FINANCIAL HIGHLIGHTS Consolidated net sales during the fourth quarter of 2020 declined by 3% Operating EBITDA margin during the fourth quarter of 2020 increased on a like-to-like basis adjusting for foreign exchange fluctuations, by 0.4pp, compared with that of the fourth quarter of 2019. compared with those of the fourth quarter of 2019. Controlling interest net income during the fourth quarter was US$8 Cost of sales as a percentage of net sales during the fourth quarter million, compared with a loss of US$3 million during the same quarter decreased by 2.3pp from 61.0.% to 58.7%, on a year-over-year basis. of 2019. For the full year 2020 we had a Net loss of US$121 million, primarily to a non-cash impairment of goodwill and idle assets for Operating expenses as a percentage of net sales increased by 0.6pp US$121 million booked during the third quarter. during the quarter, from 27.0% to 27.6%, compared to 2019. Net debt declined US$82 million during the year, reaching US$654 Operating EBITDA during the fourth quarter of 2020 decreased by 1% million. on a like-to-like basis, compared with that of the fourth quarter of 2019. 2020 Fourth Quarter Results Page 2
OPERATING RESULTS Colombia JanuaryDecember Fourth Quarter l-t-l l-t-l 2020 2019 % var % var 2020 2019 % var % var Net sales 404 504 (20%) (10%) 120 128 (6%) 1% Operating EBITDA 87 91 (5%) 6% 30 32 (6%) 1% Operating EBITDA margin 21.4% 18.0% 3.4pp 24.9% 24.9% 0.0pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates JanuaryJanuaryJanuary December Fourth Quarter December Fourth Quarter December Fourth Quarter Volume (17%) (7%) (26%) (13%) (25%) (1%) Price (USD) (4%) (2%) (9%) (6%) (16%) (23%) Price (local currency) 8% 5% 2% 1% (6%) (17%) Year-over-year percentage variation. In Colombia, industry volumes improved by 2% during the quarter and declined by 10% during the full year. Our focus on pricing, in addition to the entry of new capacity by a competitor in late 2019, led to an underperformance of our cement volumes versus those of the industry. Our cement volumes declined by 7% during the quarter and by 17% during the full year. Our cement prices during December reached the highest level since 2016 in local-currency terms. Regarding our pricing strategy for 2021, we implemented a price increase of around 4% for bagged cement effective on January first. Panama JanuaryDecember Fourth Quarter l-t-l l-t-l 2020 2019 % var % var 2020 2019 % var % var Net sales 80 181 (56%) (56%) 23 38 (40%) (40%) Operating EBITDA 12 49 (75%) (75%) 4 10 (65%) (65%) Operating EBITDA margin 14.9% 26.8% (11.9pp) 15.6% 27.1% (11.5pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates JanuaryJanuaryJanuary December Fourth Quarter December Fourth Quarter December Fourth Quarter Volume (55%) (35%) (70%) (56%) (66%) (57%) Price (USD) (6%) (4%) (7%) (8%) (10%) (12%) Price (local currency) (6%) (4%) (7%) (8%) (10%) (12%) Year-over-year percentage variation. In Panama, our operations resumed regular activities in mid-September after several months with severe government restrictions due to COVID-19. During the fourth quarter, our cement volumes improved by 55% sequentially and declined by 35% on a year-over-year basis. Our performance on a year-over-year basis reflects weak demand conditions, and a new cement producer which came into the market during June 2020. 2020 Fourth Quarter Results Page 3
Costa Rica JanuaryDecember Fourth Quarter l-t-l l-t-l 2020 2019 % var % var 2020 2019 % var % var Net sales 89 102 (13%) (13%) 22 22 0% 7% Operating EBITDA 30 30 (1%) (0%) 8 7 26% 34% Operating EBITDA margin 33.8% 29.8% 4.0pp 38.3% 30.5% 7.8pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates JanuaryJanuaryJanuary December Fourth Quarter December Fourth Quarter December Fourth Quarter Volume (11%) (3%) (20%) (17%) (71%) (75%) Price (USD) (5%) (7%) (8%) (11%) 111% 133% Price (local currency) (5%) (0%) (8%) (5%) 109% 149% Year-over-year percentage variation. In Costa Rica, our cement volumes during the fourth quarter improved by 8% sequentially and declined by 3% year-over-year. Our quarterly cement prices remained stable year-over-year and declined by 1% sequentially. Please note that effective on January first, we implemented a cement price increase of around 6% in the distribution and construction segments. Rest of CLH JanuaryDecember Fourth Quarter l-t-l l-t-l 2020 2019 % var % var 2020 2019 % var % var Net sales 231 217 7% 9% 58 52 10% 12% Operating EBITDA 75 60 24% 26% 16 14 18% 20% Operating EBITDA margin 32.3% 27.9% 4.4pp 28.6% 26.6% 2.0pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates JanuaryJanuaryJanuary December Fourth Quarter December Fourth Quarter December Fourth Quarter Volume 11% 11% (15%) (9%) (34%) (25%) Price (USD) (3%) (1%) 2% 5% 4% 10% Price (local currency) (1%) 0% 3% 7% 7% 13% Year-over-year percentage variation. In the Rest of CLH region, our cement volumes improved by 11%, both during the quarter and the full year. Cement volumes increased in the 3 countries of the Rest of CLH region. In Guatemala, our cement volumes were driven by an acceleration in the self-construction sector, a segment where we have a higher relative presence. Additionally, our volumes benefited from tighter controls along the northern borderimplemented because of COVID-19which restricted flows of cement imports. In Nicaragua, we are encouraged by the improvement in construction activity observed during the year. Our cement volumes were driven by the self-construction sector, as well as by government-sponsored projects. Cement consumption was supported by increased remittances. 2020 Fourth Quarter Results Page 4
Operating EBITDA and free cash flow JanuaryDecember Fourth Quarter 2020 2019 % var 2020 2019 % var Operating earnings before other expenses, net 99 116 (14%) 30 29 5% + Depreciation and operating amortization 76 83 19 24 Operating EBITDA 175 199 (12%) 49 53 (6%)Net financial expense 50 52 11 12Capital expenditures for maintenance 16 43 7 12 Change in working Capital (6) (30) (12) (21) Taxes paid 17 52 19 17Other cash items (Net) 15 (14) 10 (12) Free cash flow after maintenance capital exp 83 96 (14%) 15 45 (66%)Strategic Capital expenditures 4 3 2 2 Free cash flow 79 93 (16%) 13 44 (70%) In millions of US dollars, except percentages. Information on Debt Third Fourth Quarter Quarter Fourth Quarter 2020 2019 % var 2020 2020 2019 Total debt 1, 2 678 758 688 Currency denomination Short term 1% 1% 3% U.S. dollar 87% 99% Long term 99% 99% 97% Colombian peso 13% 1% Cash and cash equivalents 24 23 8% 30 Interest rate Net debt 654 736 (11%) 659 Fixed 69% 69% Net debt / LTM3 EBITDA 3.74x 3.70x 3.69x Variable 31% 31% 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. 3 Refers to Last Twelve M onths During December 2020 we obtained bank financings in Colombian pesos for the equivalent to US$85 million, with maturities between 2 to 3 years. The proceeds were used to prepay debt in U.S. dollars, reducing our foreign exchange exposure. 2020 Fourth Quarter Results Page 5
Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts as of December 31 BALANCE SHEET 2020 2019 % var Total Assets 2,667,501 2,994,203 (11%) Cash and Temporary Investments 24,437 22,606 8% Trade Accounts Receivables 56,600 70,650 (20%) Other Receivables 44,388 90,116 (51%) Inventories 74,262 77,973 (5%) Other Current Assets 19,618 22,604 (13%) Current Assets 219,305 283,949 (23%) Fixed Assets 1,042,926 1,131,440 (8%) Other Assets 1,405,270 1,578,814 (11%) Total Liabilities 1,318,052 1,450,397 (9%) Current Liabilities 236,090 260,872 (9%) Long-Term Liabilities 1,026,431 1,125,166 (9%) Other Liabilities 55,531 64,359 (14%) Consolidated Stockholders Equity 1,349,449 1,543,806 (13%) Non-controlling Interest 4,830 5,251 (8%) Stockholders Equity Attributable to Controlling Interest 1,344,619 1,538,555 (13%) 2020 Fourth Quarter Results Page 6
Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in millions of Colombian Pesos in nominal terms, except per share amounts as of December 31 BALANCE SHEET 2020 2019 % var Total Assets 9,156,198 9,812,422 (7%) Cash and Temporary Investments 83,880 74,081 13% Trade Accounts Receivables 194,279 231,530 (16%) Other Receivables 152,362 295,323 (48%) Inventories 254,903 255,529 (0%) Other Current Assets 67,340 74,078 (9%) Current Assets 752,764 930,541 (19%) Fixed Assets 3,579,842 3,707,889 (3%) Other Assets 4,823,592 5,173,992 (7%) Total Liabilities 4,524,213 4,753,153 (5%) Current Liabilities 810,378 854,914 (5%) Long-Term Liabilities 3,523,225 3,687,326 (4%) Other Liabilities 190,610 210,912 (10%) Consolidated Stockholders Equity 4,631,985 5,059,269 (8%) Non-controlling Interest 16,580 17,208 (4%) Stockholders Equity Attributable to Controlling Interest 4,615,405 5,042,061 (8%) 2020 Fourth Quarter Results Page 7
in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales 2020 Fourth Quarter Results Page 8
Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters JanuaryDecember Fourth Quarter 2020 2019 % var 2020 2019 % var Total cement volume 1 5,405 6,454 (16%) 1,487 1,562 (5%) Total domestic gray cement volume 5,003 5,840 (14%) 1,368 1,448 (5%) Total ready-mix volume 1,645 2,401 (31%) 467 570 (18%) Total aggregates volume 3,495 5,705 (39%) 1,068 1,329 (20%) 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Per-country volume summary JanuaryDecember Fourth Quarter Fourth Quarter 2020 2020 vs. 2019 2020 vs. 2019 vs. Third Quarter 2020 DOMESTIC GRAY CEMENT Colombia (17%) (7%) (2%) Panama (55%) (35%) 55% Costa Rica (11%) (3%) 8% Rest of CLH 11% 11% (6%) READY-MIX Colombia (26%) (13%) (5%) Panama (70%) (56%) 186% Costa Rica (20%) (17%) (10%) Rest of CLH (15%) (9%) 22% AGGREGATES Colombia (25%) (1%) 9% Panama (66%) (57%) 130% Costa Rica (71%) (75%) (11%) Rest of CLH (34%) (25%) 42% 2020 Fourth Quarter Results Page 9
Variation in U.S. dollars JanuaryDecember Fourth Quarter Fourth Quarter 2020 2020 vs. 2019 2020 vs. 2019 vs. Third Quarter 2020 DOMESTIC GRAY CEMENT Colombia (4%) (2%) 4% Panama (6%) (4%) (2%) Costa Rica (5%) (7%) (3%) Rest of CLH (3%) (1%) (0%) READY-MIX Colombia (9%) (6%) 4% Panama (7%) (8%) (13%) Costa Rica (8%) (11%) (1%) Rest of CLH 2% 5% 1% AGGREGATES Colombia (16%) (23%) (9%) Panama (10%) (12%) (5%) Costa Rica 111% 133% (7%) Rest of CLH 4% 10% 5% For Rest of CLH, volume-weighted average prices. Variation in local currency JanuaryDecember Fourth Quarter Fourth Quarter 2020 2020 vs. 2019 2020 vs. 2019 vs. Third Quarter 2020 DOMESTIC GRAY CEMENT Colombia 8% 5% 0% Panama (6%) (4%) (2%) Costa Rica (5%) (0%) (1%) Rest of CLH (1%) 0% 1% READY-MIX Colombia 2% 1% (0%) Panama (7%) (8%) (13%) Costa Rica (8%) (5%) 1% Rest of CLH 3% 7% 2% AGGREGATES Colombia (6%) (17%) (13%) Panama (10%) (12%) (5%) Costa Rica 109% 149% (5%) Rest of CLH 7% 13% 6% For Rest of CLH, volume-weighted average prices. 2020 Fourth Quarter Results Page 10
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 readers convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates are provided below. Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under other and intercompany eliminations. Consolidated financial information When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries. Presentation of financial and operating information Individual information is provided for Colombia, Panama and Costa Rica. Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. Exchange rates JanuaryDecember JanuaryDecember Fourth Quarter 2020 EoP 2019 EoP 2020 average 2019 average 2020 average 2019 average Colombian peso 3,432.50 3,277.14 3,729.87 3,299.77 3,634.17 3,396.52 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 617.30 576.49 591.41 588.40 613.00 575.92 Euro 0.82 0.89 0.87 0.89 0.84 0.90 Amounts provided in units of local currency per US dollar. 2020 Fourth Quarter Results Page 11
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 CLHs 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 CLHs 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. 2020 Fourth Quarter Results Page 12
Exhibit 3
RESULTS 4Q20 F e b r u a r y 1 1 , 2 0 2 1
||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, might, should, could, continue, would, can, consider, anticipate, estimate, expect, envision, 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 CLHs 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 CLHs 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; CLHs exposure to other sectors that impact CLHs business, such as, but not limited to, the energy sector; competition in the markets in which we offer our products and services;; 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, health, 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; CLHs ability to satisfy its debt obligations and CEMEX, S.A.B. de C.V.s (CEMEX) ability to satisfy CEMEXs obligations under its material debt agreements, the indentures that govern CEMEXs senior secured notes and CEMEXs other debt instruments; expected refinancing of CEMEXs existing indebtedness; availability of short-term credit lines, which can assist us in connection with market cycles; the impact of CEMEXs below investment grade debt rating on CLHs and CEMEXs cost of capital; lost of reputation of our brands; CEMEXs ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CLHs cost-reduction initiatives and implement CLHs pricing initiatives for CLHs products; the increasing reliance on information technology infrastructure for CLHs 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 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; 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 (including global health hazards such as COVID-19); and the other risks and uncertainties described in CLHs public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CLHs 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 CLHs prices for CLHs 2 products.
||Key messages for the full year 2020 ? Improved EBITDA margin by 2.1pp for the full year, supported by our pricing
strategy and our costs-savings program, despite our volumes were heavily impacted by the pandemic ? Costs-savings program achieved US$46 million; 65% of the savings are recurring ? Alternative fuel substitution rate reached a record of 21% in 2020,
+7pp YoY ? Free Cash Flow reached US$79 million during 2020, a 45% Free Cash Flow to EBITDA conversion rate ? Reduced net debt by 11% during the year; our leverage ratio remained relatively stable despite lower EBITDA ? Obtained bank loans for US$85
million in Colombian pesos, which were used to prepay U.S.-dollar debt, reducing our FX exposure ? The programs to support our customers, such as our safety protocols, CEMEX Go and CEMEX Te Acompaña, paid off, as Net-
Promoter-Score reached a record of 75 during 4Q20, +24 points YoY
||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -15% LtL -7% LtL -20%
-12% 2.1pp -3% LtL -1% LtL 989 -8% 199 -6% . 2% 0.4pp 22 790 175 . 1% 20 237 53 . 7% 22 218 49 . 3% 22 12M19 12M20 4Q19 4Q20 12M19 12M20 4Q19 4Q20 12M19 12M20 4Q19 4Q20 4
||Consolidated Volumes and Prices 12M20 vs. 4Q20 vs. 4Q20 vs. 12M19 4Q19 3Q20 Cement volumes during 4Q20 remained
stable QoQ and declined Volume -14% -5% 0% Domestic 5% YoY. For the full year, our cement gray Price (USD) -3% -2% 2% volumes declined by 14%, mainly due cement to the impact of COVID-19 Price (LtL1) 3% 3% 1% Volume -31% -18% 1% Ready-mix concrete
Price (USD) -11% -8% 5% For the full year, our cement prices Price (LtL1) -3% -2% 2% improved 3% driven by an 8% Volume -39% -20% 15% increase in Colombia on a like-to-like basis. Our cement prices improved Aggregates Price (USD) -7% -15% -8%
despite volumes were heavily Price (LtL ) 1% -9% -11% impacted by the pandemic 1 5 (1) Like-to-like adjusted for foreign-exchange fluctuations
||EBITDA Variation 12M20 -7% -12% 199 -74 4 30 -3 29 185 -10 175 EBITDA Vol. Price Operating Dist SG&A EBITDA FX EBITDA 12M19 Costs 12M20 12M20 LtL1 20.1% 22.2% +2.1pp EBITDA EBITDA Margin 12M19 Margin 12M20 6 (1) Like-to-like adjusted for foreign-exchange fluctuations
REGIONAL HIGHLIGHTS 4 Q 2 0 R e s u l t s
||Colombia Results Highlights Var % Var % Industry cement volumes +2% in 12M20 Var % 4Q20 Var % LtL1 LtL1
4Q20 and -10% in 2020. Our cement Net Sales 404 -20% -10% 120 -6% 1% volumes -17% in 2020, reflecting an Financial Op. EBITDA 87 -5% 6% 30 -6% 1% impact from our price-increase Summary US$ Million strategy and a new competitor as % net sales 21.4%
3.4pp 24.9% 0.0pp 12M20 vs. Our cement prices during 2020 +8% 4Q20 vs. 4Q19 4Q20 vs. 3Q20 12M19 in local currency. Our prices in Dec. Cement -17% -7% -2% reached the highest level since 2016. Volume Implemented a price increase of ~4% Ready-mix -26%
-13% -5% for bagged cement in January first Aggregates -25% -1% 9% 12M20 vs. 4Q20 vs. 4Q19 4Q20 vs. 3Q20 Full year EBITDA +6% despite sales 12M19 Cement 8% 5% 0% -10%, on a l-t-l basis. EBITDA Price improvement driven by pricing and (Local Currency)
Ready-mix 2% 1% 0% our costs-savings program, including Aggregates -6% -17% -13% reduced maintenance 8 Like-to-like adjusted for foreign-exchange fluctuations
||Panama Results Highlights Var % Var % Our cement volumes +55% QoQ and 12M20 Var % 4Q20 Var % LtL1 LtL1 -35%
YoY. Our performance YoY Net Sales 80 -56% -56% 23 -40% -40% reflects the impact of COVID-19 and a Financial Op. EBITDA 12 -75% -75% 4 -65% -65% new cement producer which came Summary US$ Million into the market in June 2020 as % net sales 14.9%
(11.9pp) 15.6% (11.5pp) Pleased with the government 12M20 vs. 4Q20 vs. 4Q19 4Q20 vs. 3Q20 announcement that extends the 30% 12M19 Cement -55% -35% 55% tariff to imported cement for 2021; this Volume should help protect employment in the
Ready-mix -70% -56% 186% construction industry Aggregates -66% -57% 130% 12M20 vs. Country most impacted by COVID-19 4Q20 vs. 4Q19 4Q20 vs. 3Q20 12M19 in our portfolio. In this environment, Cement -6% -4% -2% we stopped discretionary expenses, Price
Ready-mix -7% -8% -13% reduced working hours, among other initiatives. Improving our plant Aggregates -10% -12% -5% utilization by exporting cement/clinker 9 (1) Like-to-like adjusted for foreign-exchange fluctuations
||Costa Rica Results Highlights Var % Var % 12M20 Var % 4Q20 Var % LtL1 LtL1 Our cement volumes during 4Q20
Net Sales 89 -13% -13% 22 0% 7% +8% QoQ and -3% YoY. Our cement Financial prices stable YoY. Implemented a Summary Op. EBITDA 30 -1% 0% 8 26% 34% cement price increase of ~6% US$ Million as % net sales 33.8% 4.0pp 38.3% 7.8pp effective in
January 12M20 vs. 4Q20 vs. 4Q19 4Q20 vs. 3Q20 Our alternative fuel substitution rate 12M19 Cement -11% -3% 8% reached 31% in 2020, vs. 24% in Volume Ready-mix -20% -17% -10% 2019. Kiln-fuel savings by switching to alternative fuels, primarily
used tires Aggregates -71% -75% -11% 12M20 vs. 4Q20 vs. 4Q19 4Q20 vs. 3Q20 Our full year EBITDA remained stable 12M19 on a l-t-l basis, despite sales -13%. Cement -5% 0% -1% Price EBITDA margin expansion of 4pp (Local Currency) Ready-mix -8% -5% 1%
driven by our costs-savings program Aggregates 109% 149% -5% 10 (1) Like-to-like adjusted for foreign-exchange fluctuations
||Rest of CLH Results Highlights Var % Var % 12M20 Var % 4Q20 Var % LtL1 LtL1 Cement volumes +11%, both
during Net Sales 231 7% 9% 58 10% 12% the quarter and the full year; volumes Financial Op. EBITDA 75 24% 26% 16 18% 20% increased in Guatemala, Nicaragua Summary US$ Million and El Salvador as % net sales 32.3% 4.4pp 28.6% 2.0pp 12M20 vs. Regional
prices improved QoQ by 4Q20 vs. 4Q19 4Q20 vs. 3Q20 12M19 1%, 2% and 6% for cement, ready-Cement 11% 11% -6% mix and aggregates, respectively, Volume Ready-mix -15% -9% 22% during 4Q20 Aggregates -34% -25% 42% 12M20 vs. Full year EBITDA +26% on a
l-t-l 4Q20 vs. 4Q19 4Q20 vs. 3Q20 12M19 basis, driven by higher cement Cement -1% 0% 1% volumes, lower clinker costs in Price (LtL ) Guatemala and our costs-savings 1 Ready-mix 3% 7% 2% program Aggregates 7% 13% 6% 11 (1) Like-to-like adjusted
for foreign-exchange fluctuations
OTHER INFORMATION 4 Q 2 0 R e s u l t s
||Free Cash Flow generation US$ Million 12M20 12M19 % var 4Q20 4Q19 % var Our free cash flow reached
US$79 million during 2020, a 45% FCF to Operating . EBITDA EBITDA 175 199 -12% 49 53 -6% EBITDA conversion rateNet financial expense 50 52 11 12Maintenance Capex 16 43 7 12 During 2020, we reduced CAPEX to Change in working cap -6
-30 -12 -21 the minimum and managed working capital effectively. Our average Taxes paid 17 52 19 17 working capital days were negative 11 Other cash items (net) 15 -14 10 -12 during 2020 Free Cash Flow 83 96 -14% 15 45 -66% After
Maintenance CapexStrategic Capex 4 3 2 2 Received tax refunds in Colombia for 79 93 -16% 13 44 -70% ~US$20 million in total during 2Q20 Free Cash Flow and 3Q20 13
||Income Statement US$ Million 12M20 12M19 % var 4Q20 4Q19 % var Net loss during the full year mainly Net sales 790 989 -20% 218 237 -8% due to a non-cash impairment of Cost of sales 471 606 128 144 goodwill and idle assets for US$121 Gross profit 319 383 -17% 90 92 -2% million, booked in 3Q20Operating expenses 220 267 60 64 Operating earnings (loss) before The other expenses, net, line, during 99 116 -14% 30 29 5% other expenses, net 4Q20 reflects an expense of US$11 Other expenses, net 141 13 11 1 million, mainly due to severance Operating earnings (loss) -42 103 n/a 19 28 -30% payments and COVID-19 related Financial expenses 50 52 11 12 expensesOther income (expenses), net -5 17 -23 -6 Net income (loss) before income -87 34 32 21 taxes During 4Q20, the Other Income Income tax 35 29 23 24 (expenses), net, line, reflects an Consolidated net income (loss) -121 4 8 -3 income of US$23 million, mainly due Non-controlling interest net to a favorable FX effect from the USD -1 0 0 0 income depreciation vs. COP from Controlling Interest Net Income (loss) -121 4 n/a 8 -3 n/a September to December 2020 14
||Consolidated debt as of December 31, 2020 US$ Millions 509 US$678 M total debt, US$24 M cash US$654 M net
debt 3.7x Net Debt / LTM EBITDA 118 27 Reduced net debt US$82 million 2021 2022 2023 2024 during 2020. Net debt to EBITDA ratio relatively stable from Dec. 2019 to Borrower Lender Currency US$ M Maturity Dec. 2020, at 3.7x, despite lower Cementos
Bayano S.A. Lomez International B.V.3 USD 89 Dec-2022 1 EBITDA CEMEX Colombia S.A. Local Bank COP 29 Dec-2022 1 CEMEX Colombia S.A. Local Banks COP 56 Dec-2023 1 CEMEX Latam Holdings S.A. Lomez International B.V.3 USD 222 Feb-2023 Lomez
International B.V. USD Obtained bank financings in COP for CCL2 3 231 Feb-2023 ~US$85 million, with maturities from 2 CEMEX Colombia S.A. CEMEX España S.A.3 USD 27 Dec-2024 1 Other (leases and others) 24 to 3 years, at favorable interest
rates. Total USD 678 We used the proceeds to prepay debt in U.S. dollars, reducing the FX (1) Subsidiary company of CEMEX Latam Holdings S.A. exposure of our debt (2) Refers to Corporación Cementera Latinoamericana
S.L.U.. Subsidiary company of CEMEX Latam Holdings S.A. 15 (3) Subsidiary company of CEMEX, S.A.B. de C.V.
||2021 Guidance Volume YoY% Consolidated volumes: Cement: 6% to 8% Cement ReadyMix Ready-mix: 16% to 21% Colombia 9% to 11% 17% to 19% Total CAPEX US$50 M Cement ReadyMix Panama Maintenance US$45 M 26% to 28% 85% to 89% Strategic US$5 M Cement ReadyMix Costa Rica 0% to 2% 10% to 12% Cash Taxes US$55 M 16
||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, might, should, could, continue, would, can, consider, anticipate, estimate, expect, envision, 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 CLHs 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 CLHs 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; CLHs exposure to other sectors that impact CLHs business, such as, but not limited to, the energy sector; competition in the markets in which we offer our products and services;; 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, health, 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; CLHs ability to satisfy its debt obligations and CEMEX, S.A.B. de C.V.s (CEMEX) ability to satisfy CEMEXs obligations under its material debt agreements, the indentures that govern CEMEXs senior secured notes and CEMEXs other debt instruments; expected refinancing of CEMEXs existing indebtedness; availability of short-term credit lines, which can assist us in connection with market cycles; the impact of CEMEXs below investment grade debt rating on CLHs and CEMEXs cost of capital; lost of reputation of our brands; CEMEXs ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CLHs cost-reduction initiatives and implement CLHs pricing initiatives for CLHs products; the increasing reliance on information technology infrastructure for CLHs 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 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; 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 (including global health hazards such as COVID-19); and the other risks and uncertainties described in CLHs public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CLHs 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 CLHs prices for CLHs 17 products.
RESULTS 4Q20 F e b r u a r y 1 1 , 2 0 2 1
||Contact Information Investor Relations Stock Information Pablo Gutiérrez, CFA Colombian Stock Exchange
Phone: +57(1) 603-9051 Ticker: CLH E-mail: pabloantonio.gutierrez@cemex.com Juan Camilo Álvarez Phone: +57(1) 603-9909 E-mail: juancamilo.alvarez@cemex.com