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 2023
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 February 13, 2023, announcing fourth quarter 2022 results for CEMEX, S.A.B. de C.V. (NYSE: CX) (CEMEX). |
2. | Fourth quarter 2022 results for CEMEX. |
3. | Presentation regarding fourth quarter 2022 results for 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 13, 2023 | By: | /s/ Rafael Garza Lozano | ||||
Name: Rafael Garza Lozano | ||||||
Title: Chief Comptroller |
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EXHIBIT INDEX
EXHIBIT NO. |
DESCRIPTION | |
1. | Press release dated February 13, 2023, announcing fourth quarter 2022 results for CEMEX, S.A.B. de C.V. (NYSE: CX) (CEMEX). | |
2. | Fourth quarter 2022 results for CEMEX. | |
3. | Presentation regarding fourth quarter 2022 results for CEMEX. |
4
Exhibit 1
Media Relations Jorge Pérez +52 (81) 8259-6666 jorgeluis.perez@cemex.com |
Analyst and Investor Relations Fabián Orta / Scott Pollak +1 (212) 317-6011 +52 (81) 8888-4327 ir@cemex.com
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CEMEX REPORTS DOUBLE-DIGIT TOP-LINE GROWTH
WITH RECORD REDUCTION IN CO2 EMISSIONS IN 2022
| 12% Net Sales growth in 4th quarter, with prices up 17% to 20% for cement, ready-mix, and aggregates in response to persistent inflation. |
| EBITDA declined 1% in 4th quarter, with regions representing ~90% of Net Sales1 showing growth. |
| Record EBITDA in the US2 in 4th quarter. |
| Growth investments contributed to ~US$100 million of incremental EBITDA in 2022. |
| EBITDA of Urbanization Solutions, our fastest growing business, grew more than 20% in 2022. |
| Record reduction of CO2 emissions in 2022. |
| S&P upgraded CEMEXs credit rating to BB+, one notch away from goal of investment-grade rating. |
| Launch of Regenera, CEMEXs global waste management business, contributing to a more circular society. |
MONTERREY, MEXICO. FEBRUARY 13, 2023 CEMEX, S.A.B. de C.V. (CEMEX) (NYSE: CX) announced today double-digit top-line growth for 2022 and 4th quarter driven by a robust pricing strategy designed to recover margins. For 2022, EBITDA and EBITDA margin showed improving trends in 4th quarter. CO2 emissions declined by ~4.6% in 2022, the second consecutive year of record carbon reductions.
CEMEXs Consolidated 2022 Full Year and 4th Quarter Financial and Operational Highlights.
| Net Sales increased 12% to US$15,577 million in 2022, and 12% to US$3,869 million in 4th quarter. |
| Operating EBITDA decreased 3% to US$2,681 million in 2022, and 1% to US$630 million in 4th quarter. |
| Operating EBITDA margin decreased 2.5pp in 2022, to 17.2%, and declined by 1.7pp, to 16.3% in 4th quarter. |
| Free Cash Flow after Maintenance Capital Expenditures was US$553 million in 2022, and US$391 million in 4th quarter. |
| Net income, after adjusting for non-cash impairments of goodwill, rose 1% in 2022, and 36% in 4th quarter. |
2022 was a year of unique challenges as inflation spiked to 40-year highs, but I am pleased by how we responded and expect to continue to see the benefits of our strategy play out in 2023, said Fernando A. González, CEO of CEMEX. Importantly, after several quarters in which we have been
1
able to offset inflation in dollar terms, I am seeing growing evidence that actual margin recovery is underway. While EBITDA margin declined in 4th quarter, the contraction was the lowest of the year, and sequential margins stabilized in a quarter where we historically see a significant decline due to seasonality. We also continued to achieve record-breaking reductions in CO2 emissions. Since the introduction of our Future in Action program in 2020, we have reduced emissions by approximately 9%, a reduction that in the past took us more than a decade to achieve.
Geographical Markets 2022 Full Year and 4th Quarter Highlights
| Net Sales in Mexico increased 9% in 2022, to US$3,842 million, and 13% in fourth quarter, to US$1,016 million. Operating EBITDA decreased 5% in 2022, to US$1,133 million, and increased 4% in fourth quarter, to US$271 million. |
| CEMEXs operations in the United States reported Net Sales of US$5,038 million in 2022, an increase of 16%, and US$1,221 million in fourth quarter, an increase of 12%. Operating EBITDA remained flat at US$762 million in 2022 and increased 16% to US$202 million in fourth quarter. |
| In the Europe, Middle East, Africa and Asia region, Net Sales increased by 14% in 2022, to US$4,930 million, and 14% in fourth quarter, to US$1,199 million. Operating EBITDA was US$670 million in 2022, 11% higher, and US$146 million for the fourth quarter, 2% higher. |
| CEMEXs operations in the South, Central America and the Caribbean region, reported Net Sales of US$1,605 million in 2022, an increase of 6%, and US$377 million in fourth quarter, an increase of 2%. Operating EBITDA decreased by 8% to US$382 million in 2022 and decreased 13% to US$84 million in the fourth quarter. |
(1) | Before others and intercompany eliminations |
(2) | Highest reported 4th quarter EBITDA since 2007 |
Note: All percentage variations related to Net Sales and EBITDA are on a like-to-like basis for the ongoing operations and for foreign exchange fluctuations compared to the same period of last year.
CEMEX is a global construction materials company that is building a better future through sustainable products and solutions. CEMEX is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. CEMEX is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the use of new technologies. CEMEX offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience, enabled by digital technologies. For more information, please visit: cemex.com
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This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These forward-looking statements 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, uncertainties, and assumptions that could cause actual results to differ materially from CEMEXs expectations, including, among others, risks, uncertainties, and assumptions discussed in CEMEXs most recent annual report and detailed from time to time in CEMEXs other filings with the Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores), which factors are incorporated herein by reference, which if materialized could ultimately lead to CEMEXs expectations and projections not producing the expected benefits and/or results. These factors may be revised or supplemented, but CEMEX is not under, and expressly disclaims, any obligation to update or correct this press release or any forward-looking statement contained herein, whether as a result of new information, future events or otherwise. Any or all of CEMEXs forward-looking statements may turn out to be inaccurate. Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. The content of this press release is for informational purposes only, and you should not construe any such information or other material as legal, tax, investment, financial, or other advice.
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Exhibit 2
Fourth Quarter Results 2022
Crédit Agricole Building, Nimes, France
Built with Vertua Concrete, part of our Vertua family of sustainable products
Stock Listing Information | Investor Relations | |||
NYSE (ADS) | In the United States: | |||
Ticker: CX | + 1 877 7CX NYSE | |||
Mexican Stock Exchange | In Mexico: | |||
Ticker: CEMEXCPO | + 52 (81) 8888 4292 | |||
Ratio of CEMEXCPO to CX = 10:1 | E-Mail: ir@cemex.com |
Operating and financial highlights |
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January - December | Fourth Quarter | |||||||||||||||||||||||||||||||
l-t-l | l-t-l | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | % var | 2022 | 2021 | % var | % var | |||||||||||||||||||||||||
Consolidated cement volume |
63,376 | 66,970 | (5 | %) | 15,569 | 16,500 | (6 | %) | ||||||||||||||||||||||||
Consolidated ready-mix volume |
50,141 | 49,239 | 2 | % | 12,107 | 12,542 | (3 | %) | ||||||||||||||||||||||||
Consolidated aggregates volume |
139,210 | 136,995 | 2 | % | 33,654 | 34,769 | (3 | %) | ||||||||||||||||||||||||
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Net sales |
15,577 | 14,379 | 8 | % | 12 | % | 3,869 | 3,573 | 8 | % | 12 | % | ||||||||||||||||||||
Gross profit |
4,822 | 4,636 | 4 | % | 7 | % | 1,208 | 1,080 | 12 | % | 13 | % | ||||||||||||||||||||
as % of net sales |
31.0 | % | 32.2 | % | (1.2pp | ) | 31.2 | % | 30.2 | % | 1.0pp | |||||||||||||||||||||
Operating earnings before other income and expenses, net |
1,561 | 1,718 | (9 | %) | (8 | %) | 361 | 361 | (0 | %) | (1 | %) | ||||||||||||||||||||
as % of net sales |
10.0 | % | 12.0 | % | (2.0pp | ) | 9.3 | % | 10.1 | % | (0.8pp | ) | ||||||||||||||||||||
SG&A expenses as % of net sales |
8.0 | % | 7.6 | % | 0.4pp | 8.5 | % | 7.9 | % | 0.6pp | ||||||||||||||||||||||
Controlling interest net income (loss) |
858 | 753 | 14 | % | (99 | ) | 195 | N/A | ||||||||||||||||||||||||
Operating EBITDA |
2,681 | 2,839 | (6 | %) | (3 | %) | 630 | 644 | (2 | %) | (1 | %) | ||||||||||||||||||||
as % of net sales |
17.2 | % | 19.7 | % | (2.5pp | ) | 16.3 | % | 18.0 | % | (1.7pp | ) | ||||||||||||||||||||
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Free cash flow after maintenance capital expenditures |
553 | 1,101 | (50 | %) | 391 | 332 | 18 | % | ||||||||||||||||||||||||
Free cash flow |
78 | 722 | (89 | %) | 201 | 227 | (12 | %) | ||||||||||||||||||||||||
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Total debt |
8,147 | 8,555 | (5 | %) | 8,147 | 8,555 | (5 | %) | ||||||||||||||||||||||||
Earnings (loss) of continuing operations per ADS |
0.36 | 0.53 | (32 | %) | (0.12 | ) | 0.16 | N/A | ||||||||||||||||||||||||
Fully diluted earnings (loss) of continuing operations per ADS (1) |
0.36 | 0.53 | (32 | %) | (0.12 | ) | 0.16 | N/A | ||||||||||||||||||||||||
Average ADSs outstanding |
1,478 | 1,495 | (1 | %) | 1,475 | 1,495 | (1 | %) | ||||||||||||||||||||||||
Employees |
43,535 | 45,972 | (5 | %) | 43,535 | 45,972 | (5 | %) | ||||||||||||||||||||||||
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This information does not include discontinued operations. Please see page 14 of 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.
Consolidated net sales in the fourth quarter of 2022 reached US$3.9 billion, an increase of 12% on a like-to-like basis, compared to the fourth quarter of 2021. Higher prices in local currency terms in all our regions were the main driver of our top line growth.
Cost of sales, as a percentage of net sales, decreased by 1.0pp to 68.8% during the fourth quarter of 2022, from 69.8% in the same period last year, as pricing strategy for our products catches up to cost inflation.
Operating expenses, as a percentage of net sales, increased by 1.8pp to 21.9% during the fourth quarter of 2022 compared with the same period last year, mainly due to higher logistic and distribution expenses.
Operating EBITDA in the fourth quarter of 2022 reached US$630 million, decreasing 1% on a like-to-like basis. EBITDA was higher in in three of our four regions, with the US and Europe growing double digit and high single digit, respectively.
Operating EBITDA margin decreased by 1.7pp from 18.0% in the fourth quarter of 2021 to 16.3% this quarter. While EBITDA margin declined, the contraction was the lowest of the year,
Controlling interest net income (loss) resulted in a loss of US$99 million in the fourth quarter of 2022 versus a gain of US$195 million in the same quarter of 2021. The loss primarily reflects a non-cash impairment of goodwill and fixed assets of ~US$390 million. The write-down primarily affects assets in the US and Spain, and results from global high inflationary environment and increasing interest rates.
2022 Fourth Quarter Results | Page 2 |
Operating results |
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Mexico
January December | Fourth Quarter | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | l-t-l % var |
2022 | 2021 | % var | l-t-l % var |
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Net sales |
3,842 | 3,466 | 11 | % | 9 | % | 1,016 | 841 | 21 | % | 13 | % | ||||||||||||||||||||
Operating EBITDA |
1,133 | 1,163 | (3 | %) | (5 | %) | 271 | 243 | 11 | % | 4 | % | ||||||||||||||||||||
Operating EBITDA margin |
29.5 | % | 33.6 | % | (4.1pp | ) | 26.7 | % | 28.9 | % | (2.2pp | ) | ||||||||||||||||||||
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In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation |
January - December | Fourth Quarter | January - December | Fourth Quarter | January - December | Fourth Quarter | ||||||||||||||||||
Volume |
(8 | %) | (5 | %) | 10 | % | 9 | % | 4 | % | 4 | % | ||||||||||||
Price (USD) |
19 | % | 26 | % | 18 | % | 25 | % | 22 | % | 26 | % | ||||||||||||
Price (local currency) |
16 | % | 19 | % | 15 | % | 18 | % | 19 | % | 18 | % | ||||||||||||
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In Mexico, quarterly EBITDA grew for the first time in over a year mainly due to our pricing efforts for our products, which are catching up to the sharp rise in inflation we experienced in our business beginning in second quarter, 2022.
With continued inflation pressuring retail demand, bagged cement volumes moderated in fourth quarter, while bulk grew high-single digit. Total gray domestic cement volumes were down 5% in fourth quarter. Ready-mix and aggregates volumes increased 9% and 4%, respectively, reflecting strength in the formal sector.
Demand in the formal sector continued to benefit from nearshoring investments in border states, tourism construction in the peninsulas, and distribution and logistics activity in the central part of the country.
We remain committed to recovering margins and, with that objective, we announced price increases for all our products effective January 1st, 2023.
United States
January December | Fourth Quarter | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | l-t-l % var |
2022 | 2021 | % var | l-t-l % var |
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Net sales |
5,038 | 4,355 | 16 | % | 16 | % | 1,221 | 1,094 | 12 | % | 12 | % | ||||||||||||||||||||
Operating EBITDA |
762 | 762 | (0 | %) | (0 | %) | 202 | 174 | 16 | % | 16 | % | ||||||||||||||||||||
Operating EBITDA margin |
15.1 | % | 17.5 | % | (2.4pp | ) | 16.5 | % | 15.9 | % | 0.6pp | |||||||||||||||||||||
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In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation |
January - December | Fourth Quarter | January - December | Fourth Quarter | January - December | Fourth Quarter | ||||||||||||||||||
Volume |
1 | % | (7 | %) | 0 | % | (7 | %) | 3 | % | (6 | %) | ||||||||||||
Price (USD) |
16 | % | 21 | % | 15 | % | 22 | % | 16 | % | 25 | % | ||||||||||||
Price (local currency) |
16 | % | 21 | % | 15 | % | 22 | % | 16 | % | 25 | % | ||||||||||||
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2022 Fourth Quarter Results | Page 3 |
Operating results |
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In the United States, our EBITDA grew to a record high reported for a fourth quarter(1), despite bad weather through much of our footprint. EBITDA margin in the quarter expanded for the first time since early 2021, while sequential margin also improved for the second straight quarter, benefiting from higher prices, lower maintenance, and product mix.
Prices for cement, ready-mix, and aggregates grew between 21% and 25% year-over-year, and between 3% and 8% on a sequential basis due to price increases in several markets during the quarter. Cement, ready-mix, and aggregates volumes decreased mid-single digits as a result of difficult weather conditions in many of our markets.
As we aim to recover margins, we implemented price increases for our products in January that reflect the cumulative input cost inflation we have experienced across our portfolio.
Europe, Middle East, Africa and Asia
January - December | Fourth Quarter | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | l-t-l % var |
2022 | 2021 | % var | l-t-l % var |
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Net sales |
4,930 | 4,825 | 2 | % | 14 | % | 1,199 | 1,197 | 0 | % | 14 | % | ||||||||||||||||||||
Operating EBITDA |
670 | 676 | (1 | %) | 11 | % | 146 | 165 | (12 | %) | 2 | % | ||||||||||||||||||||
Operating EBITDA margin |
13.6 | % | 14.0 | % | (0.4pp | ) | 12.2 | % | 13.8 | % | (1.6pp | ) | ||||||||||||||||||||
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In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation |
January - December | Fourth Quarter | January - December | Fourth Quarter | January - December | Fourth Quarter | ||||||||||||||||||
Volume |
(1 | %) | (2 | %) | (1 | %) | (6 | %) | (0 | %) | (5 | %) | ||||||||||||
Price (USD) |
9 | % | 9 | % | 3 | % | 4 | % | (1 | %) | 0 | % | ||||||||||||
Price (local currency) (*) |
23 | % | 27 | % | 13 | % | 16 | % | 10 | % | 13 | % | ||||||||||||
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In EMEA, sales and EBITDA grew double-digit in 2022. During the fourth quarter, sales continued to show strong growth driven by pricing, while EBITDA growth slowed primarily due to energy costs, declining volumes, and higher maintenance. Pricing remained strong. with sequential increases in our cement and ready-mix, reflecting fourth quarter price increases in several markets.
Europe showed strong cement pricing momentum with a 5% sequential increase and 35% year-over-year increase. EBITDA grew 9% in the fourth quarter largely due to our pricing efforts, while volumes declined as a result of a weaker demand in the region.
During the year, our European operations continued leading the way on Climate Action, achieving a 41% reduction in carbon emissions since 1990. The region is well on its way to achieving the EU emissions reduction target of at least a 55% reduction versus the 1990 baseline by 2030.
In the Philippines, cement volumes declined 5% during the fourth quarter as the country transitions to a new government and macro challenges impact demand. Domestic cement prices were 9% higher for 4Q22, as price increases adjusted to input cost inflation. Sales in the country increased 4% during the quarter, while EBITDA and EBITDA margin decreased by 91% and 10.9pp respectively, mainly due to higher energy costs and maintenance. The expected date of completion of the new line of our Solid Cement Plant is end of 1Q24.
Sequentially, our domestic cement price in the fourth quarter of 2022 saw a slight and temporary downward adjustment, mainly due to discounts and rebates.
Our operations in Egypt and Israel continued to show strong top line and EBITDA growth.
(1) | On a reported basis since 2007 |
(*) | Calculated on a volume-weighted-average basis at constant foreign-exchange rates |
2022 Fourth Quarter Results | Page 4 |
Operating results |
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South, Central America and the Caribbean
January - December | Fourth Quarter | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | l-t-l % var |
2022 | 2021 | % var | l-t-l % var |
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Net sales |
1,605 | 1,567 | 2 | % | 6 | % | 377 | 391 | (4 | %) | 2 | % | ||||||||||||||||||||
Operating EBITDA |
382 | 421 | (9 | %) | (8 | %) | 84 | 99 | (15 | %) | (13 | %) | ||||||||||||||||||||
Operating EBITDA margin |
23.8 | % | 26.9 | % | (3.1pp | ) | 22.4 | % | 25.4 | % | (3.0pp | ) | ||||||||||||||||||||
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In millions of U.S. dollars, except percentages.
Domestic gray cement | Ready-mix | Aggregates | ||||||||||||||||||||||
Year-over-year percentage variation |
January - December | Fourth Quarter | January - December | Fourth Quarter | January - December | Fourth Quarter | ||||||||||||||||||
Volume |
(7 | %) | (10 | %) | 11 | % | 5 | % | 5 | % | 2 | % | ||||||||||||
Price (USD) |
8 | % | 6 | % | (6 | %) | (8 | %) | (0 | %) | 1 | % | ||||||||||||
Price (local currency) (*) |
12 | % | 12 | % | 2 | % | 6 | % | 9 | % | 17 | % | ||||||||||||
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In our South, Central America and the Caribbean region, our sales grew 2% mainly driven by a 12% cement price increase in local currency terms.
While informal sector cement volumes declined due to a post-pandemic rebalancing of retail demand. Volumes of bulk cement, ready-mix and aggregates continue to grow, supported by formal sector demand, mainly industrial and residential.
As a result of higher energy costs, together with freight and raw materials costs, EBITDA fell 13% while EBITDA margin declined 3.0 percentage points during the quarter.
In the Dominican Republic, our largest market in SCAC, cement volumes declined 2% in the quarter due to a drop in retail cement demand, partially offset by higher bulk cement demand related to tourism projects. Cement prices increased 21% in local currency terms for the quarter.
In Colombia, cement prices increased 11% in local currency terms and cement volumes improved 2% driven by the social housing segment.
(*) | Calculated on a volume-weighted-average basis at constant foreign-exchange rates |
2022 Fourth Quarter Results | Page 5 |
Operating results |
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Operating EBITDA and free cash flow
January - December | Fourth Quarter | |||||||||||||||||||||||
2022 | 2021 | % var | 2022 | 2021 | % var | |||||||||||||||||||
Operating earnings before other income and expenses, net |
1,561 | 1,718 | (9 | %) | 361 | 361 | (0 | %) | ||||||||||||||||
+ Depreciation and operating amortization |
1,120 | 1,120 | 270 | 283 | ||||||||||||||||||||
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Operating EBITDA |
2,681 | 2,839 | (6 | %) | 630 | 644 | (2 | %) | ||||||||||||||||
- Net financial expense |
529 | 574 | 132 | 123 | ||||||||||||||||||||
- Maintenance capital expenditures |
888 | 706 | 301 | 333 | ||||||||||||||||||||
- Change in working capital |
515 | 137 | (307 | ) | (254 | ) | ||||||||||||||||||
- Taxes paid |
197 | 194 | 41 | 40 | ||||||||||||||||||||
- Other cash items (net) |
6 | 152 | 74 | 88 | ||||||||||||||||||||
- Free cash flow discontinued operations |
(6 | ) | (25 | ) | (3 | ) | (18 | ) | ||||||||||||||||
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Free cash flow after maintenance capital expenditures |
553 | 1,101 | (50 | %) | 391 | 332 | 18 | % | ||||||||||||||||
- Strategic capital expenditures |
475 | 380 | 191 | 105 | ||||||||||||||||||||
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Free cash flow |
78 | 722 | (89 | %) | 201 | 227 | (12 | %) | ||||||||||||||||
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In millions of U.S. dollars, except percentages. |
FCF after maintenance capex for full year 2022 was lower than last years mainly due to a higher investment in working capital and maintenance capex. The higher investment in working capital reflects strong revenue growth and the inflationary impact on inventory, as well as the need to run higher inventories to address persistent supply chain issues. As is typical for fourth quarter, we experienced strong free cash flow after maintenance capex conversion, generating close to US$60 million more than the prior year.
Information on debt
Third Quarter |
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Fourth Quarter | Fourth Quarter | |||||||||||||||||||||||||
2022 | 2021 | % var | 2022 | 2022 | 2021 | |||||||||||||||||||||
Total debt (1) |
8,147 | 8,555 | (5 | %) | 8,188 | Currency denomination(3) | ||||||||||||||||||||
Short-term |
4 | % | 4 | % | 5 | % | U.S. dollar | 78 | % | 83 | % | |||||||||||||||
Long-term |
96 | % | 96 | % | 95 | % | Euro | 14 | % | 8 | % | |||||||||||||||
Cash and cash equivalents |
495 | 613 | (19 | %) | 397 | Mexican peso | 4 | % | 4 | % | ||||||||||||||||
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Net debt |
7,652 | 7,942 | (4 | %) | 7,791 | Other | 4 | % | 5 | % | ||||||||||||||||
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Consolidated net debt (2) |
7,620 | 7,921 | 7,669 | Interest rate(4) | ||||||||||||||||||||||
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Consolidated leverage ratio (2) |
2.84 | 2.73 | 2.82 | Fixed | 71 | % | 90 | % | ||||||||||||||||||
Consolidated coverage ratio (2) |
6.27 | 5.99 | 6.51 | Variable | 29 | % | 10 | % | ||||||||||||||||||
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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 our main bank debt agreements. |
(3) | Information for 2021 includes the effect of our EUR-USD cross-currency swap, which was fully unwound during 4Q22. |
(4) | Includes the effect of our interest rate derivatives, as applicable. |
2022 Fourth Quarter Results | Page 6 |
Operating results |
|
Consolidated Statement of Operations & Statement of Financial Position
CEMEX, S.A.B. de C.V. and Subsidiaries
(Thousands of U.S. dollars, except per ADS amounts)
January - December | Fourth Quarter | |||||||||||||||||||||||||||||||
like-to-like | like-to-like | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | % var | 2022 | 2021 | % var | % var | |||||||||||||||||||||||||
STATEMENT OF OPERATIONS |
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Net sales |
15,576,819 | 14,378,620 | 8 | % | 12 | % | 3,868,517 | 3,572,662 | 8 | % | 12 | % | ||||||||||||||||||||
Cost of sales |
(10,754,908 | ) | (9,742,903 | ) | (10 | %) | (2,660,572 | ) | (2,492,442 | ) | (7 | %) | ||||||||||||||||||||
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Gross profit |
4,821,911 | 4,635,717 | 4 | % | 7 | % | 1,207,945 | 1,080,220 | 12 | % | 13 | % | ||||||||||||||||||||
Operating expenses |
(3,261,376 | ) | (2,917,261 | ) | (12 | %) | (847,045 | ) | (718,803 | ) | (18 | %) | ||||||||||||||||||||
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Operating earnings before other income and expenses, net |
1,560,535 | 1,718,456 | (9 | %) | (8 | %) | 360,901 | 361,416 | (0 | %) | (1 | %) | ||||||||||||||||||||
Other expenses, net |
(467,275 | ) | (82,423 | ) | (467 | %) | (460,997 | ) | (74,476 | ) | (519 | %) | ||||||||||||||||||||
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Operating earnings |
1,093,260 | 1,636,033 | (33 | %) | (100,097 | ) | 286,941 | N/A | ||||||||||||||||||||||||
Financial expense |
(401,387 | ) | (658,178 | ) | 39 | % | (136,408 | ) | (134,774 | ) | (1 | %) | ||||||||||||||||||||
Other financial income (expense), net |
47,218 | (76,892 | ) | N/A | 115,946 | (8,003 | ) | N/A | ||||||||||||||||||||||||
Financial income |
26,697 | 21,580 | 24 | % | 14,302 | 10,269 | 39 | % | ||||||||||||||||||||||||
Results from financial instruments, net |
4,808 | (5,106 | ) | N/A | 3,651 | (2,891 | ) | N/A | ||||||||||||||||||||||||
Foreign exchange results |
72,899 | (35,351 | ) | N/A | 110,774 | (1,972 | ) | N/A | ||||||||||||||||||||||||
Effects of net present value on assets and liabilities and others, net |
(57,186 | ) | (58,016 | ) | 1 | % | (12,782 | ) | (13,409 | ) | 5 | % | ||||||||||||||||||||
Equity in gain (loss) of associates |
30,900 | 53,923 | (43 | %) | (15,432 | ) | 16,153 | N/A | ||||||||||||||||||||||||
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Income (loss) before income tax |
769,991 | 954,886 | (19 | %) | (135,991 | ) | 160,316 | N/A | ||||||||||||||||||||||||
Income tax |
(209,065 | ) | (137,068 | ) | (53 | %) | (37,992 | ) | 89,181 | N/A | ||||||||||||||||||||||
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Profit (loss) of continuing operations |
560,926 | 817,818 | (31 | %) | (173,983 | ) | 249,498 | N/A | ||||||||||||||||||||||||
Discontinued operations |
323,605 | (39,373 | ) | N/A | 71,478 | (45,248 | ) | N/A | ||||||||||||||||||||||||
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Consolidated net income (loss) |
884,530 | 778,445 | 14 | % | (102,504 | ) | 204,250 | N/A | ||||||||||||||||||||||||
Non-controlling interest net income (loss) |
26,173 | 25,331 | 3 | % | (3,364 | ) | 9,445 | N/A | ||||||||||||||||||||||||
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Controlling interest net income (loss) |
858,357 | 753,113 | 14 | % | (99,140 | ) | 194,805 | N/A | ||||||||||||||||||||||||
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Operating EBITDA |
2,680,630 | 2,838,745 | (6 | %) | (3 | %) | 630,463 | 644,034 | (2 | %) | (1 | %) | ||||||||||||||||||||
Earnings (loss) of continued operations per ADS |
0.36 | 0.53 | (32 | %) | (0.12 | ) | 0.16 | N/A | ||||||||||||||||||||||||
Earnings (loss) of discontinued operations per ADS |
0.22 | (0.03 | ) | N/A | 0.05 | (0.03 | ) | N/A |
As of December 31 | ||||||||||||
2022 | 2021 | % var | ||||||||||
STATEMENT OF FINANCIAL POSITION |
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Total assets |
26,447,451 | 26,650,370 | (1 | %) | ||||||||
Cash and cash equivalents |
494,920 | 612,820 | (19 | %) | ||||||||
Trade receivables less allowance for doubtful accounts |
1,644,491 | 1,520,974 | 8 | % | ||||||||
Other accounts receivable |
535,065 | 557,814 | (4 | %) | ||||||||
Inventories, net |
1,668,658 | 1,260,673 | 32 | % | ||||||||
Assets held for sale |
68,926 | 140,639 | (51 | %) | ||||||||
Other current assets |
113,664 | 132,331 | (14 | %) | ||||||||
Current assets |
4,525,723 | 4,225,251 | 7 | % | ||||||||
Property, machinery and equipment, net |
11,284,126 | 11,322,109 | (0 | %) | ||||||||
Other assets |
10,637,602 | 11,103,010 | (4 | %) | ||||||||
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Total liabilities |
15,538,582 | 16,379,252 | (5 | %) | ||||||||
Current liabilities |
5,546,947 | 5,380,321 | 3 | % | ||||||||
Long-term liabilities |
6,919,512 | 7,305,779 | (5 | %) | ||||||||
Other liabilities |
3,072,124 | 3,693,152 | (17 | %) | ||||||||
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Total stockholders equity |
10,908,869 | 10,271,118 | 6 | % | ||||||||
Common stock and additional paid-in capital |
7,810,104 | 7,810,104 | 0 | % | ||||||||
Other equity reserves and subordinated notes |
(1,554,689 | ) | (1,370,266 | ) | (13 | %) | ||||||
Retained earnings |
4,245,780 | 3,387,423 | 25 | % | ||||||||
Non-controlling interest and perpetual instruments |
407,674 | 443,856 | (8 | %) |
2022 Fourth Quarter Results | Page 7 |
Operating results |
|
Operating Summary per Country
In thousands of U.S. dollars
January - December | Fourth Quarter | |||||||||||||||||||||||||||||||
like-to-like | like-to-like | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | % var | 2022 | 2021 | % var | % var | |||||||||||||||||||||||||
NET SALES |
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Mexico |
3,842,407 | 3,465,715 | 11 | % | 9 | % | 1,016,496 | 840,549 | 21 | % | 13 | % | ||||||||||||||||||||
U.S.A. |
5,037,534 | 4,355,485 | 16 | % | 16 | % | 1,221,007 | 1,094,077 | 12 | % | 12 | % | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
4,929,607 | 4,825,402 | 2 | % | 14 | % | 1,198,768 | 1,197,201 | 0 | % | 14 | % | ||||||||||||||||||||
Europe |
3,389,313 | 3,349,146 | 1 | % | 14 | % | 819,660 | 813,196 | 1 | % | 13 | % | ||||||||||||||||||||
Philippines |
378,667 | 424,055 | (11 | %) | (2 | %) | 83,911 | 90,561 | (7 | %) | 4 | % | ||||||||||||||||||||
Middle East and Africa |
1,161,627 | 1,052,202 | 10 | % | 20 | % | 295,197 | 293,444 | 1 | % | 19 | % | ||||||||||||||||||||
South, Central America and the Caribbean |
1,604,708 | 1,567,470 | 2 | % | 6 | % | 377,276 | 391,408 | (4 | %) | 2 | % | ||||||||||||||||||||
Others and intercompany eliminations |
162,562 | 164,548 | (1 | %) | 0 | % | 54,971 | 49,428 | 11 | % | 10 | % | ||||||||||||||||||||
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TOTAL |
15,576,819 | 14,378,620 | 8 | % | 12 | % | 3,868,517 | 3,572,662 | 8 | % | 12 | % | ||||||||||||||||||||
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GROSS PROFIT |
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Mexico |
1,772,121 | 1,702,899 | 4 | % | 2 | % | 463,346 | 369,716 | 25 | % | 18 | % | ||||||||||||||||||||
U.S.A. |
1,284,903 | 1,100,638 | 17 | % | 17 | % | 355,822 | 272,398 | 31 | % | 31 | % | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
1,205,406 | 1,224,512 | (2 | %) | 10 | % | 277,049 | 298,417 | (7 | %) | 6 | % | ||||||||||||||||||||
Europe |
864,581 | 880,758 | (2 | %) | 11 | % | 210,505 | 217,357 | (3 | %) | 9 | % | ||||||||||||||||||||
Philippines |
125,353 | 161,461 | (22 | %) | (15 | %) | 17,508 | 27,737 | (37 | %) | (29 | %) | ||||||||||||||||||||
Middle East and Africa |
215,473 | 182,293 | 18 | % | 30 | % | 49,036 | 53,322 | (8 | %) | 12 | % | ||||||||||||||||||||
South, Central America and the Caribbean |
553,761 | 579,974 | (5 | %) | (2 | %) | 126,949 | 141,879 | (11 | %) | (6 | %) | ||||||||||||||||||||
Others and intercompany eliminations |
5,719 | 27,693 | (79 | %) | (79 | %) | (15,220 | ) | (2,190 | ) | (595 | %) | (595 | %) | ||||||||||||||||||
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TOTAL |
4,821,911 | 4,635,717 | 4 | % | 7 | % | 1,207,945 | 1,080,220 | 12 | % | 13 | % | ||||||||||||||||||||
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OPERATING EARNINGS BEFORE OTHER EXPENSES, NET |
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Mexico |
960,589 | 1,002,291 | (4 | %) | (6 | %) | 224,840 | 200,048 | 12 | % | 5 | % | ||||||||||||||||||||
U.S.A. |
306,590 | 312,356 | (2 | %) | (2 | %) | 105,278 | 65,881 | 60 | % | 60 | % | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
343,777 | 332,154 | 3 | % | 16 | % | 62,106 | 71,087 | (13 | %) | 3 | % | ||||||||||||||||||||
Europe |
206,989 | 211,841 | (2 | %) | 12 | % | 46,167 | 51,654 | (11 | %) | 3 | % | ||||||||||||||||||||
Philippines |
47,261 | 73,856 | (36 | %) | (33 | %) | (1,259 | ) | 9,164 | N/A | N/A | |||||||||||||||||||||
Middle East and Africa |
89,527 | 46,457 | 93 | % | 115 | % | 17,198 | 10,270 | 67 | % | 113 | % | ||||||||||||||||||||
South, Central America and the Caribbean |
304,321 | 340,307 | (11 | %) | (10 | %) | 67,567 | 79,305 | (15 | %) | (13 | %) | ||||||||||||||||||||
Others and intercompany eliminations |
(354,742 | ) | (268,652 | ) | (32 | %) | (32 | %) | (98,890 | ) | (54,905 | ) | (80 | %) | (80 | %) | ||||||||||||||||
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TOTAL |
1,560,535 | 1,718,456 | (9 | %) | (8 | %) | 360,901 | 361,416 | (0 | %) | (1 | %) | ||||||||||||||||||||
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2022 Fourth 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 - December | Fourth Quarter | |||||||||||||||||||||||||||||||
like-to-like | like-to-like | |||||||||||||||||||||||||||||||
2022 | 2021 | % var | % var | 2022 | 2021 | % var | % var | |||||||||||||||||||||||||
OPERATING EBITDA |
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Mexico |
1,132,631 | 1,163,444 | (3 | %) | (5 | %) | 271,022 | 243,252 | 11 | % | 4 | % | ||||||||||||||||||||
U.S.A. |
761,585 | 761,986 | (0 | %) | (0 | %) | 201,808 | 174,253 | 16 | % | 16 | % | ||||||||||||||||||||
Europe, Middle East, Asia and Africa |
669,687 | 675,654 | (1 | %) | 11 | % | 145,817 | 164,806 | (12 | %) | 2 | % | ||||||||||||||||||||
Europe |
424,674 | 446,025 | (5 | %) | 8 | % | 103,930 | 107,515 | (3 | %) | 9 | % | ||||||||||||||||||||
Philippines |
84,280 | 113,644 | (26 | %) | (21 | %) | 7,890 | 18,116 | (56 | %) | (55 | %) | ||||||||||||||||||||
Middle East and Africa |
160,733 | 115,985 | 39 | % | 53 | % | 33,997 | 39,175 | (13 | %) | 7 | % | ||||||||||||||||||||
South, Central America and the Caribbean |
382,329 | 420,870 | (9 | %) | (8 | %) | 84,461 | 99,328 | (15 | %) | (13 | %) | ||||||||||||||||||||
Others and intercompany eliminations |
(265,602 | ) | (183,209 | ) | (45 | %) | (45 | %) | (72,645 | ) | (37,605 | ) | (93 | %) | (86 | %) | ||||||||||||||||
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TOTAL |
2,680,630 | 2,838,745 | (6 | %) | (3 | %) | 630,463 | 644,034 | (2 | %) | (1 | %) | ||||||||||||||||||||
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OPERATING EBITDA MARGIN |
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Mexico |
29.5 | % | 33.6 | % | 26.7 | % | 28.9 | % | ||||||||||||||||||||||||
U.S.A. |
15.1 | % | 17.5 | % | 16.5 | % | 15.9 | % | ||||||||||||||||||||||||
Europe, Middle East, Asia and Africa |
13.6 | % | 14.0 | % | 12.2 | % | 13.8 | % | ||||||||||||||||||||||||
Europe |
12.5 | % | 13.3 | % | 12.7 | % | 13.2 | % | ||||||||||||||||||||||||
Philippines |
22.3 | % | 26.8 | % | 9.4 | % | 20.0 | % | ||||||||||||||||||||||||
Middle East and Africa |
13.8 | % | 11.0 | % | 11.5 | % | 13.3 | % | ||||||||||||||||||||||||
South, Central America and the Caribbean |
23.8 | % | 26.9 | % | 22.4 | % | 25.4 | % | ||||||||||||||||||||||||
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TOTAL |
17.2 | % | 19.7 | % | 16.3 | % | 18.0 | % | ||||||||||||||||||||||||
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2022 Fourth Quarter Results | Page 9 |
Operating results |
|
Volume Summary
Cement and aggregates: Thousands of metric tons.
Ready-mix: Thousands of cubic meters.
January - December | Fourth Quarter | |||||||||||||||||||||||
2022 | 2021 | % var | 2022 | 2021 | % var | |||||||||||||||||||
Consolidated cement volume (1) |
63,376 | 66,970 | (5 | %) | 15,569 | 16,500 | (6 | %) | ||||||||||||||||
Consolidated ready-mix volume |
50,141 | 49,239 | 2 | % | 12,107 | 12,542 | (3 | %) | ||||||||||||||||
Consolidated aggregates volume (2) |
139,210 | 136,995 | 2 | % | 33,654 | 34,769 | (3 | %) |
Per-country volume summary
January - December | Fourth Quarter | Fourth Quarter 2022 vs. | ||||||||||
2022 vs. 2021 | 2022 vs. 2021 | Third Quarter 2022 | ||||||||||
DOMESTIC GRAY CEMENT VOLUME |
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Mexico |
(8 | %) | (5 | %) | 7 | % | ||||||
U.S.A. |
1 | % | (7 | %) | (11 | %) | ||||||
Europe, Middle East, Asia and Africa |
(1 | %) | (2 | %) | (9 | %) | ||||||
Europe |
0 | % | (8 | %) | (16 | %) | ||||||
Philippines |
(10 | %) | (5 | %) | (6 | %) | ||||||
Middle East and Africa |
9 | % | 24 | % | 9 | % | ||||||
South, Central America and the Caribbean |
(7 | %) | (10 | %) | (0 | %) | ||||||
READY-MIX VOLUME |
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Mexico |
10 | % | 9 | % | 2 | % | ||||||
U.S.A. |
0 | % | (7 | %) | (10 | %) | ||||||
Europe, Middle East, Asia and Africa |
(1 | %) | (6 | %) | (5 | %) | ||||||
Europe |
(3 | %) | (11 | %) | (9 | %) | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa |
3 | % | 0 | % | 3 | % | ||||||
South, Central America and the Caribbean |
11 | % | 5 | % | (4 | %) | ||||||
AGGREGATES VOLUME |
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Mexico |
4 | % | 4 | % | 5 | % | ||||||
U.S.A. |
3 | % | (6 | %) | (12 | %) | ||||||
Europe, Middle East, Asia and Africa |
(0 | %) | (5 | %) | (8 | %) | ||||||
Europe |
(1 | %) | (4 | %) | (11 | %) | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa |
3 | % | (6 | %) | 1 | % | ||||||
South, Central America and the Caribbean |
5 | % | 2 | % | (0 | %) |
(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. |
2022 Fourth Quarter Results | Page 10 |
Operating results |
|
Price Summary
Variation in U.S. dollars
January - December | Fourth Quarter | Fourth Quarter 2022 vs. | ||||||||||
2022 vs. 2021 | 2022 vs. 2021 | Third Quarter 2022 | ||||||||||
DOMESTIC GRAY CEMENT PRICE |
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Mexico |
19 | % | 26 | % | 5 | % | ||||||
U.S.A. |
16 | % | 21 | % | 3 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
9 | % | 9 | % | 1 | % | ||||||
Europe (*) |
12 | % | 20 | % | 7 | % | ||||||
Philippines |
(1 | %) | (3 | %) | (2 | %) | ||||||
Middle East and Africa (*) |
17 | % | (5 | %) | (10 | %) | ||||||
South, Central America and the Caribbean (*) |
8 | % | 6 | % | (4 | %) | ||||||
READY-MIX PRICE |
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Mexico |
18 | % | 25 | % | 7 | % | ||||||
U.S.A. |
15 | % | 22 | % | 4 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
3 | % | 4 | % | 2 | % | ||||||
Europe (*) |
2 | % | 8 | % | 6 | % | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
6 | % | (1 | %) | (4 | %) | ||||||
South, Central America and the Caribbean (*) |
(6 | %) | (8 | %) | (5 | %) | ||||||
AGGREGATES PRICE |
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Mexico |
22 | % | 26 | % | 4 | % | ||||||
U.S.A. |
16 | % | 25 | % | 8 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
(1 | %) | 0 | % | 0 | % | ||||||
Europe (*) |
(2 | %) | 1 | % | 2 | % | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
4 | % | (1 | %) | (7 | %) | ||||||
South, Central America and the Caribbean (*) |
(0 | %) | 1 | % | (5 | %) |
(*) | 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 |
2022 Fourth Quarter Results | Page 11 |
Operating results |
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Variation in Local Currency
January - December 2022 vs. 2021 |
Fourth Quarter 2022 vs. 2021 |
Fourth Quarter 2022 vs. Third Quarter 2022 |
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DOMESTIC GRAY CEMENT PRICE |
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Mexico |
16 | % | 19 | % | 1 | % | ||||||
U.S.A. |
16 | % | 21 | % | 3 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
23 | % | 27 | % | 2 | % | ||||||
Europe (*) |
26 | % | 35 | % | 5 | % | ||||||
Philippines |
9 | % | 9 | % | (1 | %) | ||||||
Middle East and Africa (*) |
42 | % | 39 | % | 11 | % | ||||||
South, Central America and the Caribbean (*) |
12 | % | 12 | % | (0 | %) | ||||||
READY-MIX PRICE |
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Mexico |
15 | % | 18 | % | 3 | % | ||||||
U.S.A. |
15 | % | 22 | % | 4 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
13 | % | 16 | % | 1 | % | ||||||
Europe (*) |
15 | % | 20 | % | 4 | % | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
12 | % | 11 | % | (2 | %) | ||||||
South, Central America and the Caribbean (*) |
2 | % | 6 | % | 1 | % | ||||||
AGGREGATES PRICE |
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Mexico |
19 | % | 18 | % | 0 | % | ||||||
U.S.A. |
16 | % | 25 | % | 8 | % | ||||||
Europe, Middle East, Asia and Africa (*) |
10 | % | 13 | % | (1 | %) | ||||||
Europe (*) |
10 | % | 13 | % | 0 | % | ||||||
Philippines |
N/A | N/A | N/A | |||||||||
Middle East and Africa (*) |
8 | % | 10 | % | (5 | %) | ||||||
South, Central America and the Caribbean (*) |
9 | % | 17 | % | 1 | % |
(*) | 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 |
2022 Fourth Quarter Results | Page 12 |
Other information |
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Operating Expenses
The following table shows the breakdown of operating expenses for the period presented.
January - December | Fourth Quarter | |||||||||||||||
In thousands of US dollars |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Administrative expenses |
934,252 | 820,832 | 239,023 | 208,767 | ||||||||||||
Selling expenses |
311,545 | 273,722 | 88,478 | 72,414 | ||||||||||||
Distribution and logistics expenses |
1,824,315 | 1,636,802 | 469,737 | 396,927 | ||||||||||||
Operating expenses before depreciation |
3,070,111 | 2,731,356 | 797,238 | 678,108 | ||||||||||||
Depreciation in operating expenses |
191,265 | 185,904 | 49,806 | 40,696 | ||||||||||||
Operating expenses |
3,261,376 | 2,917,261 | 847,045 | 718,803 | ||||||||||||
As % of Net Sales |
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Administrative expenses |
6.0 | % | 5.7 | % | 6.2 | % | 5.8 | % | ||||||||
SG&A expenses |
8.0 | % | 7.6 | % | 8.5 | % | 7.9 | % |
Equity-related information
One CEMEX ADS represents ten CEMEX CPOs. One CEMEX CPO represents two Series A shares and one Series B share. The following amounts are expressed in CPO-equivalent terms.
Beginning-of-quarter outstanding CPO-equivalents |
14,487,786,971 | |||
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End-of-quarter outstanding CPO-equivalents |
14,487,786,971 |
For purposes of this report, outstanding CPO-equivalents equal the total number of Series A and B shares outstanding as if they were all held in CPO form less CPOs held in subsidiaries, which as of December 31, 2022, were 20,541,277.
Derivative instruments
The following table shows the notional amount for each type of derivative instrument and the aggregate fair market value for all of CEMEXs derivative instruments as of the last day of each quarter presented.
Fourth Quarter | Third Quarter | |||||||||||||||||||||||
2022 | 2021 | 2022 | ||||||||||||||||||||||
In millions of US dollars |
Notional amount |
Fair value |
Notional amount |
Fair value |
Notional amount |
Fair value |
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Exchange rate derivatives (1) |
1,337 | (30 | ) | 1,761 | 9 | 1,862 | 38 | |||||||||||||||||
Interest rate swaps (2) |
1,018 | 53 | 1,005 | (18 | ) | 1,010 | 59 | |||||||||||||||||
Fuel derivatives |
136 | 9 | 145 | 30 | 164 | 21 | ||||||||||||||||||
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2,491 | 32 | 2,911 | 21 | 3,037 | 118 | |||||||||||||||||||
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(1) | The exchange rate derivatives are used to manage currency exposures arising from regular operations, net investment hedge and forecasted transactions. As of December 31, 2022, the derivatives related to net investment hedge represents a notional amount of US$837 million. |
(2) | Interest-rate swap derivatives related to bank loans. |
Under IFRS, companies are required to recognize all derivative financial instruments on the balance sheet as financial assets or liabilities, at their estimated fair market value, with changes in such fair market values recorded in the income statement, except when transactions are entered into for cash-flow-hedging purposes, in such cases, changes in the fair market value of the related derivative instruments are recognized temporarily in equity and then reclassified into earnings as the inverse effects of the underlying hedged items flow through the income statement. Moreover, in transactions related to net investment hedges, changes in fair market value are recorded directly in equity as part of the currency translation effect and are reclassified to the income statement only upon disposal of the net investment. As of December 31, 2022, in connection with its derivatives portfolios fair market value recognition, CEMEX recognized a positive change in mark to market as compared to 3Q22 which increased its net financial assets to US$32 million.
2022 Fourth Quarter Results | Page 13 |
Other information |
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Discontinued operations
On October 25, 2022, CEMEX successfully concluded a partnership with Advent International (Advent). As part of the partnership, Advent acquired a 65% stake in Neoris for US$119 million from CEMEX. While surrendering control to Advent, CEMEX retained a 35% stake and remained as a key strategic partner and customer of Neoris. CEMEXs retained 35% stake in Neoris was remeasured at fair value at the date of loss of control, and was subsequently accounted for under the equity method. Neoris results for the period from January 1 to October 25, 2022 and for the year ended December 31, 2021 are reported in CEMEXs income statements, net of income tax, in the single line item Discontinued operations, including in 2022 a gain on sale of US$239 million, net of the reclassification of foreign currency translation effects accrued in equity until the date of loss of control.
On August 31, 2022, with affiliates of Cementos Progreso Holdings, S.L., CEMEX concluded the sale of its operations in Costa Rica and El Salvador, agreed on December 29, 2021, for a total consideration related to the aggregate majority ownership of US$326 million. The assets divested consisted of one cement plant, one grinding station, seven ready-mix plants, one aggregates quarry, as well as one distribution center in Costa Rica and one distribution center in El Salvador. As of December 31, 2021, the assets and liabilities associated with these operations were presented in the Statement of Financial Position within the line items of Assets held for sale and Liabilities directly related to assets held for sale, as correspond. CEMEXs operations of these assets from January 1 to August 31, 2022, and for the year ended December 31, 2021, are reported in CEMEXs income statements, net of income tax, in the single line item Discontinued operations.
On July 9, 2021, CEMEX concluded the sale of its white cement business to Çimsa Çimento Sanayi Ve Ticaret A.Ş. agreed in March 2019 for a price of approximately US$155 million. Assets sold included CEMEXs Buñol cement plant in Spain and its white cement business outside Mexico and the United States. CEMEXs operations of these assets from January 1 to July 9, 2021, are reported in the income statements, net of income tax, in the single line item Discontinued operations.
On March 31, 2021, CEMEX sold 24 concrete plants and one aggregates quarry in France to LafargeHolcim for approximately US$44 million. These assets were located in the Rhone Alpes region in the Southeast of France, east of CEMEX´s Lyon operations, which the company retained. CEMEXs income statement for the nine-month period ended June 30, 2021, include the results of these assets, net of income tax, for the three-month period ended March 31, 2021, in the single line item Discontinued operations.
The following table presents condensed combined information of the income statements for the years ended December 31, 2022 and 2021 of CEMEXs discontinued operations, previously mentioned, in: a) NEORIS operations for the period from January 1 to October 25, 2022 and the year ended December 31, 2021; b) Costa Rica and El Salvador from January 1 to August 31, 2022 and for the year ended December 31, 2021; c) Spain related to the white cement business from January 1 to July 9, 2021; and d) the southeast of France for the three-month period ended March 31, 2021:
STATEMENT OF OPERATIONS | Jan-Dec | Fourth Quarter | ||||||||||||||
(Millions of U.S. dollars) |
2022 | 2021 | 2022 | 2021 | ||||||||||||
Sales |
256 | 354 | 17 | 82 | ||||||||||||
Cost of sales, operating expenses, and other expenses, net |
(233 | ) | (346 | ) | (13 | ) | (75 | ) | ||||||||
Interest expense, net, and others |
| 5 | (1 | ) | 5 | |||||||||||
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Income (loss) before income tax |
23 | 13 | 3 | 12 | ||||||||||||
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Income tax |
(3 | ) | (48 | ) | 2 | (35 | ) | |||||||||
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Income (loss) from discontinued operations |
20 | (35 | ) | 5 | (23 | ) | ||||||||||
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Net gain (loss) on sale |
304 | (4 | ) | 66 | (22 | ) | ||||||||||
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Net result from discontinued operations |
324 | (39 | ) | 71 | (45 | ) | ||||||||||
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Relevant accounting effects included in the reported financial statements
During the fourth quarter of 2022, CEMEX recognized non-cash impairment charges in the statement of operations for an aggregate amount of US$442 million within the line-item other expenses, net, of which US$365 million refer to impairment of goodwill and US$77 million refer to impairment of property, machinery and equipment. The impairment losses of goodwill refer to CEMEX operating segments in the United States for US$273 million and Spain for US$92 million, which reduced the line item of goodwill in the statement of financial position. Moreover, the impairment losses of property, machinery and equipment relate mainly also to CEMEXs businesses in the United States and Spain.
The impairment losses of goodwill are mainly related to the significant increase in the discount rates as compared to 2021 and the resulting significant decrease in the CEMEXs projected cash flows in these operating segments considering the global high inflationary environment, which increased the risk-free rates, and the material increase in the funding cost observed in the industry during the period. These negative effects more than offset the expected improvements in the estimated Operating EBITDA generation in both of CEMEXs businesses in the United States and Spain. These non-cash impairment losses did not impact CEMEXs liquidity, Operating EBITDA and cash taxes payable. Nevertheless, it decreased CEMEXs total assets and equity and generated net losses in the fourth quarter.
2022 Fourth Quarter Results | Page 14 |
Definitions of terms and disclosures |
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Methodology for translation, consolidation, and presentation of results
Under IFRS, CEMEX translates the financial statements of foreign subsidiaries using exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement.
Breakdown of regions and subregions
The South, Central America and the Caribbean region includes CEMEXs operations in Bahamas, Colombia, the Dominican Republic, Guatemala, Guyana, Haiti, Jamaica, Trinidad & Tobago, Barbados, Nicaragua, Panama, Peru, and Puerto Rico, as well as trading operations in the Caribbean region.
The EMEA region includes Europe, Middle East, Asia, and Africa.
Asia subregion includes our Philippines operations.
Europe subregion includes operations in Spain, Croatia, the Czech Republic, France, Germany, Poland, and the United Kingdom.
Middle East and Africa subregion include the United Arab Emirates, Egypt, and Israel.
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 and coupon payments on our perpetual notes).
l-t-l (like to like) on a like-to-like basis adjusting for currency fluctuations and for investments/divestments when applicable.
Maintenance capital expenditures equal investments incurred for the purpose of ensuring the companys 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 company policies.
Net debt equals total debt (debt plus financial leases) minus cash and cash equivalents.
Operating EBITDA equals operating earnings before other income and expenses, net, plus depreciation and operating amortization.
pp equals percentage points
Prices all references to pricing initiatives, price increases or decreases, refer to our prices for our products and services
SG&A expenses equal selling and administrative expenses
Strategic capital expenditures equal investments incurred with the purpose of increasing the companys 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.
% var percentage variation
Earnings per ADS
Please refer to page 2 for the number of average ADSs outstanding used for the calculation of earnings per ADS.
According to the IAS 33 Earnings per share, the weighted-average number of common shares outstanding is determined considering the number of days during the accounting period in which the shares have been outstanding, including shares derived from corporate events that have modified the stockholders equity structure during the period, such as increases in the number of shares by a public offering and the distribution of shares from stock dividends or recapitalizations of retained earnings and the potential diluted shares (Stock options, Restricted Stock Options and Mandatory Convertible Shares). The shares issued because of share dividends, recapitalizations and potential diluted shares are considered as issued at the beginning of the period.
Exchange rates | January - December |
Fourth Quarter | Fourth Quarter | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Average | Average | Average | Average | End of period | End of period | |||||||||||||||||||
Mexican peso |
20.03 | 20.43 | 19.53 | 20.83 | 19.50 | 20.50 | ||||||||||||||||||
Euro |
0.9522 | 0.8467 | 0.9686 | 0.8735 | 0.9344 | 0.8789 | ||||||||||||||||||
British pound |
0.8139 | 0.7262 | 0.8415 | 0.7386 | 0.8266 | 0.7395 |
Amounts provided in units of local currency per U.S. dollar.
2022 Fourth Quarter Results | Page 15 |
Disclaimer |
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Except as the context otherwise may require, references in this report to CEMEX, we, us or our refer to CEMEX, S.A.B. de C.V. and its consolidated entities. The information contained in this report contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend 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. These forward-looking statements and information are necessarily subject to risks, uncertainties, and assumptions, including but not limited to statements related CEMEXs plans, objectives, expectations (financial or otherwise), and typically can be identified by the use of words such as will, may, assume, might, should, could, continue, would, can, consider, anticipate, estimate, expect, envision, plan, believe, foresee, predict, potential, target, strategy, intend, aimed, and similar terms. Although CEMEX believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially from historical results or results anticipated by forward-looking statements due to various factors. These forward-looking statements reflect, as of the date on which such forward-looking statements are made, our current expectations and projections about future events based on our knowledge of present facts and circumstances and assumptions about future events, unless otherwise indicated. These statements necessarily involve risks, uncertainties and assumptions that could cause actual results to differ materially from historical results or those anticipated in this report. Among others, such risks, uncertainties, and assumptions include those discussed in CEMEXs most recent annual report and those detailed from time to time in CEMEXs other filings with the Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores), which factors are incorporated herein by reference, including, but not limited to: impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to the novel strain of the coronavirus identified in China in late 2019 and its variants (COVID-19), which have affected and may continue to adversely affect, among other matters, the ability of our operating facilities to operate at full or any capacity, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as the availability of, and demand for, our products and services; 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; volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or divested businesses; our ability to secure and permit aggregates reserves in strategically located areas; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and private nonresidential construction; changes in our effective tax rate; 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, energy, tax, labor, antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt agreements, the indentures that govern our outstanding notes, and other debt instruments and financial obligations, including our subordinated notes with no fixed maturity and other 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 and on the cost of the products and services we purchase; 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 pricing initiatives for our products and generally meet our Operation Resilience strategys goals; 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 the demand for consumer goods, consequently affecting 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 United States-Mexico-Canada Agreement (USMCA), which was signed on November 30, 2019 and entered into force on July 1, 2020, superseding the North American Free Trade Agreement (NAFTA); availability and cost of trucks, railcars, barges and ships, as well as their licensed operators, for transport of our materials; labor shortages and constraints; terrorist and organized criminal activities as well as geopolitical events, such as war and armed conflicts, including the current war between Russia and Ukraine; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; and, natural disasters and other unforeseen events (including global health hazards such as COVID-19). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from historical results, performance or achievements and/or results,
2022 Fourth Quarter Results | Page 16 |
Disclaimer |
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performance or achievements expressly or implicitly anticipated by the forward-looking statements, or otherwise could have an impact on us or our consolidated entities. Any or all of CEMEXs forward-looking statements may turn out to be inaccurate and the factors identified above are not exhaustive. Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. These factors may be revised or supplemented, but CEMEX is not under, and expressly disclaims, any obligation to update or correct the information contained in this report or any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise. Readers should review future reports filed by us with the U.S. Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores). This report also includes statistical data regarding the production, distribution, marketing and sale of cement, ready mix concrete, clinker, aggregates and Urbanization Solutions. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEXs prices for CEMEXs products. 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
2022 Fourth Quarter Results | Page 17 |
Exhibit 3 Fourth Quarter 2022 Results Crédit Agricole Building, Nimes, France Built with Vertua Concrete, part of our Vertua family of sustainable products
Except as the context otherwise may require, references in this presentation to “CEMEX,” “we,” “us” or “our” refer to CEMEX, S.A.B. de C.V. and its consolidated entities. The information contained in this presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend 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. These forward-looking statements and information are necessarily subject to risks, uncertainties, and assumptions, including but not limited to statements related CEMEX’s plans, objectives, expectations (financial or otherwise), and typically can be identified by the use of words such as “will”, “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend,” “aimed” and similar terms. Although CEMEX believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially from historical results or results anticipated by forward-looking statements due to various factors. These forward-looking statements reflect, as of the date on which such forward-looking statements are made, our current expectations and projections about future events based on our knowledge of present facts and circumstances and assumptions about future events, unless otherwise indicated. These statements necessarily involve risks, uncertainties and assumptions that could cause actual results to differ materially from historical results or those anticipated in this presentation. Among others, such risks, uncertainties, and assumptions include those discussed in CEMEX’s most recent annual report and those detailed from time to time in CEMEX’s other filings with the Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores), which factors are incorporated herein by reference, including, but not limited to: impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to the novel strain of the coronavirus identified in China in late 2019 and its variants (“COVID-19”), which have affected and may continue to adversely affect, among other matters, the ability of our operating facilities to operate at full or any capacity, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as the availability of, and demand for, our products and services; 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; volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or divested businesses; our ability to secure and permit aggregates reserves in strategically located areas; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and private nonresidential construction; changes in our effective tax rate; 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, energy, tax, labor, antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt agreements, the indentures that govern our outstanding notes, and other debt instruments and financial obligations, including our subordinated notes with no fixed maturity and other 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 and on the cost of the products and services we purchase; 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 pricing initiatives for our products and generally meet our “Operation Resilience” strategy’s goals; 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 the 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 United States-Mexico-Canada Agreement (“USMCA”), which was signed on November 30, 2019 and entered into force on July 1, 2020, superseding the North American Free Trade Agreement (“NAFTA”); availability and cost of trucks, railcars, barges and ships, as well as their licensed operators, for transport of our materials; labor shortages and constraints; terrorist and organized criminal activities as well as geopolitical events, such as war and armed conflicts, including the current war between Russia and Ukraine; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; and, natural disasters and other unforeseen events (including global health hazards such as COVID-19). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from historical results, performance or achievements and/or results, performance or achievements expressly or implicitly anticipated by the forward-looking statements, or otherwise could have an impact on us or our consolidated entities. Any or all of CEMEX’s forward-looking statements may turn out to be inaccurate and the factors identified above are not exhaustive. Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. These factors may be revised or supplemented, but CEMEX is not under, and expressly disclaims, any obligation to update or correct the information contained in this presentation or any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise. Readers should review future reports filed by us with the U.S. Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores). This presentation also includes statistical data regarding the production, distribution, marketing and sale of cement, ready mix concrete, clinker, aggregates, and Urbanization Solutions. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. 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
• Top line growing double-digit Key highlights in • 17% to 20% price growth Fourth Quarter 2022 • EBITDA growth in regions representing ~90% of Net Sales th 1 • Record 4 quarter EBITDA in the US • Growing evidence of margin recovery • Growth investments contributed to ~$100 M of incremental EBITDA in 2022 • ~$600 M of divestments during 2022 • Credit rating upgrade to “BB+” from S&P • Achieved SBTI’s validation for our new 2030 targets and 2050 net zero goal, under their newly announced 1.5ºC scenario • Record reduction in CO emissions in 2022 2 • Launch of Regenera, our global waste management business, contributing to a more circular society • Net income, proforma for non-cash goodwill impairment, rose 36% 2 • ROCE at 12.1% , well above our cost of capital Duo Towers, Paris, France Built with Vertua Concrete, part of our Vertua family of sustainable th 1) Highest reported 4 quarter EBITDA since 2007 2) Trailing twelve months as of December 2022, excluding goodwill 3 products
FY 2022: Despite unprecedented volatility, resilient EBITDA EBITDA FCF after Net Sales EBITDA Margin maint. Capex +12% l-t-l -3% l-t-l -2.5pp +8% -6% 15,577 2,839 19.7% 1,101 17.2% 2,681 14,379 553 2021 2022 2021 2022 2021 2022 2021 2022 Voltaire College, Remoulins, France Millions of U.S. dollars Built with Vertua Concrete, part of our Vertua family of sustainable products 4
4Q22: Improving EBITDA margin trend EBITDA FCF after Net Sales EBITDA Margin maint. Capex +12% l-t-l -1% l-t-l -1.7pp +8% -2% 3,869 644 18.0% 391 16.3% 630 3,573 332 Stable QoQ margin 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 4Q21 4Q22 Highway I-10 Corridor, Los Angeles, United States Millions of U.S. dollars Built with Vertua Concrete, part of our Vertua family of sustainable products 5
Volumes impacted by slowing demand 4Q22 YoY and FY 2022 volume variation CONSOLIDATED VOLUMES (l-t-l) USA -2% EMEA -6% -3% -3% -7% -7% -4% EUROPE -5% 9% FY 2022: 1% 0% 3% -8% -6% -5% 4% -11% -1% -1% -0% -4% 2% 2% MEX 0% -3% -1% -5% FY 2022 volumes -8% 10% 4% 1 5% Cement 2% Ready-mix SCAC Aggregates -10% -7% 11% 5% 1) Gray domestic cement 6
Double-digit growth in pricing across all regions CONSOLIDATED PRICES 4Q22 YoY and QoQ price variation (l-t-l) 20% 27% 18% 17% 25% 22% 35% 21% 16% 13% 20% EMEA 13% USA EUROPE 19% 18% 18% 2% 1% -1% QoQ: 3% 4% 8% 5% 4% 0% 2% 2% 2% MEX 1% 3% 0% Sequential (3Q22 to 4Q22) 17% 1 Cement 12% Ready-mix SCAC 6% Aggregates 0% 1% 1% 1) Gray domestic cement 7 Note: For CEMEX, SCAC, Europe and EMEA, prices (l-t-l) are calculated on a volume-weighted average basis at constant foreign-exchange rates
Net contribution of pricing over cost continues to grow in fourth quarter 4Q22 EBITDA variation -1% -2% -513 580 644 640 -1 630 -9 -70 FX 4Q21 Volume Price Costs Other businesses 4Q22 l-t-l 4Q22 reported & items EBITDA margin 4Q: 18.0% 16.3% -1.7pp Full year: 19.7% 17.2% -2.5pp Millions of U.S. dollars 8
In 4th quarter, cement pricing transitioning from covering dollar cost of inflation to recovering margin Unitary Prices Unitary Costs 1 Cement Aggregates Ready-mix $20 $2.5 $16 $19.3 $14.7 $18 $14.4 $14 $16.0 $2.1 $11.8 $14.9 $16 $2.0 $15.4 $1.8 $12 $1.8 $1.6 $14 $11.5 $14.4 $9.6 $10 $12 $1.5 $13.5 $1.5 $1.4 $9.3 $10 $8 $6.7 $1.2 $8.4 $8 $1.0 $6 $8.2 $6.4 $6 $4 $4 $0.5 $0.7 $2 $2 $0 $0.0 $0 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 1) Own produced cement U.S. dollars per ton 9
Leading the industry with climate ambition... and executing Net CO emissions Records: High levels of adoption 2 SBTi validation • Alternative fuels for our Vertua down ~5% vs 2021 of net-zero CO goals 2 substitution rate of products: under 1.5°C scenario and ~9% in last two 1 35%, +6pp YoY• 41% for cement , years • Clinker factor of +14.8pp YoY • 33% for ready- 74.3%, -1.5pp YoY 2 mix , +16.1pp YoY 1) Vertua cement as a % of cement volumes 2) Vertua ready-mix as a % of ready-mix volumes 10
Regenera: CX’s new global waste management business Urbanization Solutions EBITDA Fastest growing vertical CAGR: +21% 227 128 2019 2022 2022 EBITDA contribution from each Urbanization Solution’s vertical Industrialized Construction 19% Related 37% Services 1 CEMEX managed 65 times the 6% Circularity waste we generated in 2022 38% Performance Materials EBITDA in millions of U.S. dollars. 1) Preliminary figure for 2022 11
Regional Highlights th 6 Street Viaduct, Los Angeles, United States Built with Vertua concrete, part of our Vertua family of sustainable products
Mexico: Quarterly EBITDA up mid-single digit 4Q22 2022 Net Sales 1,016 3,842 % var (l-t-l) 13% 9% Operating EBITDA 271 1,133 % var (l-t-l) 4% (5%) Operating EBITDA margin 26.7% 29.5% pp var (2.2pp) (4.1pp) • Growth in formal sector explained by nearshoring investments, tourism construction, and distribution and logistic activity • Bagged cement continue moderating due to elevated inflation • Price increases supporting top line growth • Margin declined in 4Q22 due to higher energy, raw materials, freight, and wages, as well as a negative product mix effect • Alternative fuels exceeded 40% in 4Q22, highest on record, and ~11pp higher for FY 2022 st • Announced double digit price increases for all products, effective Jan 1 to Avancer Tower, San Luis, Mexico cope with input cost inflation Built with Fortis, part of our Vertua family of sustainable products Millions of U.S. dollars 13
1 US: Record fourth quarter EBITDA despite adverse weather conditions 4Q22 2022 Net Sales 1,221 5,038 % var (l-t-l) 12% 16% Operating EBITDA 202 762 % var (l-t-l) 16% (0%) Operating EBITDA margin 16.5% 15.1% pp var 0.6pp (2.4pp) • Strong double-digit price increases across all products offsetting lower volumes during the quarter nd • Sequential margin improvement for the 2 straight quarter with lower maintenance and higher prices outpacing input cost inflation • Full-year EBITDA driven by mid-teen percentage pricing and low single digit volume growth • Recently announced acquisition of Atlantic Minerals to expand our US aggregates reserves by ~20% • Expect weaker residential volumes in 2023, partially offset by Industrial & Commercial and Infrastructure sectors SDSU Snapdragon Stadium, San Diego, United States Built with Vertua concrete, part of our Vertua family of sustainable products 1) Highest reported fourth quarter EBITDA since 2007 Millions of U.S. dollars 14
EMEA: Consistent growth in Sales and EBITDA throughout 2022 despite volatility 4Q22 2022 Net Sales 1,199 4,930 % var (l-t-l) 14% 14% Operating EBITDA 146 670 % var (l-t-l) 2% 11% Operating EBITDA margin 12.2% 13.6% pp var (1.6pp) (0.4pp) • Strong top line growth driven by double-digit increase in prices across all products, with sequential price growth for cement and ready-mix • Volumes in Europe and the Philippines declined in 4Q22, reflecting macro weakness, but partially offset by growth in Egypt and UAE • Resilient EBITDA margin in Europe, declining only 0.5pp in 4Q22, despite volatility • 41% reduction in CO emissions in Europe; well positioned to 2 College Gilbert Charbroux, Lyon, France reach the EU 55% goal for 2030 Built with Insularis, part of our Vertua family of sustainable products • Strong operational and financial performance in Israel and Egypt Millions of U.S. dollars 15
SCAC: Strong pricing performance driving top-line growth 4Q22 2022 Net Sales 377 1,605 % var (l-t-l) 2% 6% Operating EBITDA 84 382 % var (l-t-l) (13%) (8%) Operating EBITDA margin 22.4% 23.8% pp var (3.0pp) (3.1pp) • Pricing responsible for the quarterly and full-year top-line growth, with double digit increase in cement • Self-construction sector continues moderating while formal activity is driven by the industrial and housing sectors • Decline in quarterly EBITDA and EBITDA margins mainly due to higher energy, freight and raw materials • In Colombia, we expect that construction activity in 2023 will be driven by social housing and infrastructure projects in Bogota Fajas MyD, Medellín, Colombia Built with Vertua Concrete, part of our Vertua family of sustainable products • In the Dominican Republic, demand should remain supported by the continuation of tourism and industrial investments Millions of U.S. dollars 16
Financial Developments La Mexicana Park, Mexico City, Mexico Built with Vertua Concrete, part of our Vertua family of sustainable products
FCF after maintenance capex higher in 4Q22 January - December Fourth Quarter Average working capital days 2022 2021 % var 2022 2021 % var Operating EBITDA 2,681 2,839 (6%) 630 644 (2%) 4Q22 4Q21 - Net Financial Expense 529 574 132 123 - Maintenance Capex 888 706 301 333 -6 - Change in Working Capital 515 137 (307) (254) -15 - Taxes Paid 197 194 41 40 - Other Cash Items (net) 6 152 74 88 Controlling Interest Net Income - Free Cash Flow US$ M (6) (25) (3) (18) Discontinued Operations Free Cash Flow after 553 1,101 (50%) 391 332 18% 195 Maintenance Capex - Strategic Capex 475 380 191 105 Free Cash Flow 78 722 (89%) 201 227 (12%) -99 4Q22 4Q21 Millions of U.S. dollars 18
Further strengthening our capital structure in a volatile environment • Reduced total debt during the year by $409 M. Bought back $1.2 B of bonds at a discount Debt maturity profile as of December 2022 • Protected against rising interest rates, with 71% Billions of U.S. dollars of our debt at fixed rates 1.6 1.6 • Risk management strategies offsetting weaker 1.4 currencies, higher interest rates and energy costs 1.1 0.8 0.7 • Accounts receivables securitization programs 0.6 (∼$750 M) now under our sustainability-linked 0.3 financing framework. Approximately 42% of our 0.1 debt now linked to sustainability KPIs 23 24 25 26 27 28 29 30 ≥31 • Credit rating upgrades from S&P and Fitch, to one No material refinancing needs notch below investment grade until 2025 19
2023 Outlook Panorama High Rise, Miami, United States
1 2023 guidance 2 Operating EBITDA Low single-digit increase Low single-digit decrease for Cement Consolidated volume growth Low single-digit decrease for Ready-mix Low single-digit increase for Aggregates Energy cost/ton of cement produced ~10% increase ~$1,250 million total Capital expenditures ~$850 million Maintenance, ~$400 million Strategic Investment in working capital ~$250 million Cash taxes ~$250 million 3 Cost of debt Increase of ~$70 million 1) Reflects CEMEX’s current expectations 2) Like-to-like for ongoing operations and assuming December 31, 2022 FX levels 3) Including perpetual bonds and subordinated notes with no fixed maturity and the effect of our EUR-USD cross-currency swap 21
Appendix College Port Marianne, Montpellier, France Built with Vertua Concrete, part of our Vertua family of sustainable products
Debt maturity profile as of December 31, 2022 Total debt as of December 31, 2022: $8,147 million Main bank debt agreements Other bank debt Average life of debt: Fixed Income 5.0 years Leases 1,587 1,598 1,365 1,125 786 738 579 309 60 2023 2024 2025 2026 2027 2028 2029 2030≥ 2031 Millions of U.S. dollars 23
Consolidated volumes and prices 2022 vs. 2021 4Q22 vs. 4Q21 4Q22 vs. 3Q22 Volume (l-t-l) (4%) (5%) (4%) Domestic gray Price (USD) 13% 17% 2% cement Price (l-t-l) 17% 20% 2% Volume (l-t-l) 2% (3%) (5%) Ready mix Price (USD) 10% 13% 2% Price (l-t-l) 13% 17% 2% Volume (l-t-l) 2% (3%) (7%) Aggregates Price (USD) 9% 13% 3% Price (l-t-l) 13% 18% 2% Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates 24
Additional information on debt MXN 4% Other 4% Euro Fourth Quarter Third Quarter 14% 2022 2021 % var 2022 Currency 1 8,147 8,555 (5%) 8,188 Total debt 3 denomination Short-term 4% 4% 5% U.S. Long-term 96% 96% 95% dollar 78% Cash and cash equivalents 495 613 (19%) 397 Net debt 7,652 7,942 (4%) 7,791 2 7,620 7,921 (4%) 7,669 Consolidated net debt 2 Variable 2.84 2.73 2.82 Consolidated leverage ratio 29% 2 4 6.27 5.99 6.51 Consolidated coverage ratio Interest rate Fixed 71% Millions of U.S. dollars 1) Includes leases, in accordance with International Financial Reporting Standard (IFRS) 2) Calculated in accordance with our contractual obligations under our main bank debt agreements 3) Includes the effect of our EURUSD cross-currency swap 4) Includes the effect of our interest rate derivatives, as applicable 25
Additional information on debt 1 Total debt by instrument Fourth Quarter Third Quarter 17% 2022 2022 % of total % of total Fixed Income 4,139 51% 4,103 50% Main Bank Debt Agreements 2,578 32% 2,522 31% 51% 1 1,430 17% 1,562 19% Others Total Debt 8,147 8,188 32% Millions of U.S. dollars 1) Includes leases, in accordance with IFRS 26
Reduced net debt by ~$290 M during the year Net debt variation -289 7,942 78 7,652 27 445 150 111 Net Debt as of 4Q21 Free cash Asset Divestments Share Buybacks Others Net FX Net Debt as of 4Q22 flow in 2022 (Costa Rica, El Salvador & Neoris) Millions of U.S. dollars 27
4Q22 volume and price summary: selected countries and regions Domestic gray cement Ready mix Aggregates 4Q22 vs. 4Q21 4Q22 vs. 4Q21 4Q22 vs. 4Q21 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (5%) 26% 19% 9% 25% 18% 4% 26% 18% U.S. (7%) 21% 21% (7%) 22% 22% (6%) 25% 25% Europe (8%) 20% 35% (11%) 8% 20% (4%) 1% 13% Israel N/A N/A N/A (2%) 0% 12% (6%) (1%) 10% Philippines (5%) (3%) 9% N/A N/A N/A N/A N/A N/A Colombia 2% (10%) 11% 5% (13%) 7% 3% (3%) 19% Panama 5% (3%) (3%) 74% 10% 10% 31% 27% 27% Dominican Republic (2%) 24% 21% (2%) 19% 16% N/A N/A N/A Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates 28
2022 volume and price summary: selected countries and regions Domestic gray cement Ready mix Aggregates 2022 vs. 2021 2022 vs. 2021 2022 vs. 2021 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (8%) 19% 16% 10% 18% 15% 4% 22% 19% U.S. 1% 16% 16% 0% 15% 15% 3% 16% 16% Europe 0% 12% 26% (3%) 2% 15% (1%) (2%) 10% Israel N/A N/A N/A 4% 6% 10% 3% 4% 9% Philippines (10%) (1%) 9% N/A N/A N/A N/A N/A N/A Colombia (1%) (4%) 8% 14% (8%) 4% 16% (4%) 8% Panama 7% (4%) (4%) 44% 4% 4% 20% 18% 18% Dominican Republic (7%) 22% 18% 10% 16% 12% N/A N/A N/A Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates 29
1 2023 expected volume outlook : selected countries/regions Cement Ready-mix Aggregates CEMEX Low single-digit decline Low single-digit decline Low single-digit increase Mexico Flat Mid single-digit increase High single-digit increase USA Low single-digit decline Low single-digit decline Low single-digit decline Europe Mid to high single-digit decline Low to mid single-digit decline Flat to low single-digit decline Colombia Flat High single-digit increase N/A Panama Flat ≥25% increase N/A Dominican Republic Flat to low single-digit decline Mid single-digit increase N/A Israel N/A Low single-digit decline Low single-digit decline Philippines Flat to low single-digit decline N/A N/A 1) Reflects CEMEX’s current expectations. Volumes on a like-to-like basis 30
Relevant ESG indicators Carbon strategy 2022 2021 Customers and suppliers 4Q22 4Q21 2021 Kg of CO per ton of 2 Net Promoter Score (NPS) 66 69 68 564 591 cementitious % of sales using CX Go 61% 60% 62% Alternative fuels (%) 35% 29% Clinker factor 74.3% 75.8% Low-carbon products 2022 2021 Health and safety 2022 2021 Blended cement as % of total Employee fatalities 3 1 75% 68% cement produced Employee L-T-I frequency rate 0.5 0.5 Vertua concrete as % of total 33% 17% Operations with zero fatalities 95% 95% and injuries (%) 31
Definitions SCAC South, Central America and the Caribbean EMEA Europe, Middle East, Africa and Asia When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported Cement 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 expenditures on Maintenance capital projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are expenditures projects required to comply with governmental regulations or company policies Operating EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization IFRS International Financial Reporting Standards, as issued by the International Accounting Standards Board 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 projects Strategic capital expenditures designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs USD U.S. dollars % var Percentage variation 32
Contact Information Investors Stock Information Relations NYSE (ADS): CX In the United States +1 877 7CX NYSE Mexican Stock Exchange: CEMEXCPO In Mexico +52 81 8888 4292 Ratio of CEMEXCPO to CX: ir@cemex.com 10 to 1