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 November, 2012
Commission File Number: 001-14946
CEMEX, S.A.B. de C.V.
(Translation of Registrant’s name into English)
Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre
Garza García, Nuevo León, México 66265
(Address of principal executive office)
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 X Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Contents
| 1. | Presentation regarding CEMEX, S.A.B. de C.V.’s (NYSE:CX) U.S. operations, the U.S. market and other related topics. |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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CEMEX, S.A.B. de C.V. | ||||||||||
| (Registrant) | ||||||||||
| Date: | November 27, 2012 |
By: | /s/ Rafael Garza | |||||||
| Name: | Rafael Garza | |||||||||
| Title: | Chief Comptroller | |||||||||
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. |
Presentation regarding CEMEX, S.A.B. de C.V.’s (NYSE:CX) U.S. operations, the U.S. market and other related topics. | |
| Exhibit 1
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Exhibit 1
CEMEX USA
November 27, 2012
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Forward Looking Information
This presentation contains certain forward-looking statements and information relating to CEMEX, Inc. and its subsidiaries (“CEMEX”) that are based on knowledge of present facts, expectations and projections, circumstances and assumptions about future events. Many factors could cause the actual results, performance or achievements of CEMEX to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental, and business conditions globally and in the locations in which CEMEX operates, CEMEX’s ability and the ability of its affiliates to comply with the terms and obligations of debt agreements and bond indentures entered into with major creditors to which it is a party, changes in interest rates, changes in inflation rates, changes in exchange rates, the cyclical activity of construction sector generally, changes in cement demand and prices, CEMEX’s ability to benefit from government economic stimulus plans, CEMEX’s ability to realize cost savings, changes in raw material and energy prices, changes in business strategy, changes in the prevailing regulatory framework, natural disasters and other unforeseen events and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or targeted. Forward-looking statements are made as of the date hereof, and CEMEX does not intend, nor is it obligated, to update these forward-looking statements, whether as a result of new information, future events or otherwise.
Copyright CEMEX, Inc. and its subsidiaries
2
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Strong Position in Key Markets
Cement ‘12e Sales ~11 M mt Aggregates ‘12e Sales ~43 M mt Ready-Mix ‘12e Sales ~12 M m3 Concrete Pipe ‘12e Sales ~1.4 M mt
CEMEX (active/total sites) Cement (11/13) Aggregates (73/105) Ready-Mix (296/444) Concrete Pipe (32/38)
3
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Leveraging a Well-Balanced Business Portfolio
Product Mix – 9M12 Geographical Mix – 9M12
(% of Total Sales) (% of Total EBITDA)
Cement Other
23%
29%
16% 33%
Aggregates Ready-Mix
CA/AZ Other
14% 10%
FL 31%
45% TX
4
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Residential Sector Showing Strong Signs of Recovery
Both multi-family and single-family housing picking up
Housing starts expected to increase 16% to approximately 873k in 2013 Inventory on the market back to normal levels Positive fundamentals: record high affordability, existing pent-up demand Residential sector cement demand expected to increase 14% in 2013
Rate of recovery constrained by foreclosures, shadow vacant inventories and credit availability
Job creation major driver to restore confidence, unleash pent-up demand and mitigate foreclosure overhang
5
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Housing Starts Expected to Reach Steady-State Levels in 4 Years
Housing Starts
(‘000 units)
Multi-Family
2,400
2,200 Single Family
2,000
Steady-
1,800 State 1,600 1,600 1,400 1,200 1,000 800 600 400 200 0
77 79 81 83 85 87 89 91 93 95 97 99 01 03 05 07 09 11 13e 15e 17e
Source: U.S. Census, CX estimates 6
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Housing Growth Fueled by Record High Affordability… with Existing Pent-up Demand
US Housing Affordability
(Index)
Affordability Index Index
400 200 300 150 200 100 100 50
0 0
80 85 90 95 00 05 10 15
Cumulative Housing Excess (Shortfall)
(‘000 units)
1,400
(4,200)
01 03 05 07 09 11 13e
Affordability (Avg=100)
Median Existing Home Price (1983=100) Median Income (1983=100)
Source: Moody’s Analytics, CX estimates 7
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In Most of Our Key Markets, Rate of Recovery Expected to Outperform National Average
Total Housing Permits (‘000)
300 Florida
250 200
+27%
150 100 50 0
2000 2004 2008 2012 2016
US Average
Permits (‘000) CAGR ‘11-’16
Texas 22%
300
250 +16%
200 150 100 50 0
2000 2004 2008 2012 2016
California
300 250 200
+25%
150 100 50 0
2000 2004 2008 2012 2016
Arizona
300 250 200 150
100 +34%
50 0
2000 2004 2008 2012 2016
Source: U.S. Census, CX estimates 8
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Industrial & Commercial Sector Expected to Contribute to Cement Demand Growth
I&C sector growing with nominal spending up 15% this year
Spending growth expected to moderate somewhat in 2013
– Contract awards up 12% for 2012 YTD
– Architectural Billing Index below 50 for the last 4 months
Contract awards expected to increase 20% next year as confidence improves post-election and economic growth accelerates
Cement demand from the I&C sector projected to increase 8.5% in 2013
9
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Supported By Increasing I&C Sector Activity
I&C Contract Awards
(Area—M ft2)
881
+19%
512 431 396 387 347
08 09 10 11 12e 13f
I&C Construction Spending
(Billions of 2011 US$ )
246
+10%
186
145 125 132 119
08 09 10 11 12e 13f
Source: U.S. Census, FW Dodge, CX estimates 10
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Public Sector Recovering More Moderately
Public sector nominal YTD spending up by 5%
Nominal highway spending up 3% YTD despite ARRA 62% decline
– Federal (excluding ARRA) up 10%
– State spending up 7%, first increase since 2007
Contract awards for highways down 13% YTD but should recover with federal funding program now in place
MAP21 passed extending federal transportation program to Sept 2014
– US$105 B funding for FY13-14, up slightly from current levels
– Expanded federal direct loan program (TIFIA)
Public sector cement demand expected to increase 2% in 2013
11
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Public Spending Holding Up Despite ARRA Stimulus Wind Down
Public Spending
(Billions of 2011 US$)
494 493 466 Cement Intensity
452 450 (‘000 tons / 2011 $B)
Other 104 434
107 108
89 93 96 91
Utilities 115 117
103 128 118 21 107
Buildings 191 185 168
157 155 158 19
Highways
84 84 87 79 80 81 367
& Streets
2008 2009 2010 2011 2012e 2013f
Source: U.S. Census, PCA, CX estimates 12
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In Terms of Cement Demand, Growth in Key Markets Expected to Exceed National Average
Total Portland Cement Consumption (M mt)
25 Florida
20 15
10 +15%
5 0
03 05 07 09 11 13 15 17
US Average
Consumption (M mt) CAGR ‘12-’17
Texas 10%
25
20 +7%
15 10 5 0
03 05 07 09 11 13 15 17
California
25 20
15 +11%
10 5 0
03 05 07 09 11 13 15 17
Arizona
25 20 15 10
+16%
5 0
03 05 07 09 11 13 15 17
Source: USGS, CX estimates 13
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Well Positioned to Capitalize on Market Recovery
Incremental Portland Cement Consumption
2012-2017f (M mt)
+15.5
+1.7
+3.7
Key States Account for ~40% of Total
+4.8
National Incremental Demand
+5.3
California Texas Florida Arizona Total
Source: USGS, CX estimates 14
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Favorable National Cement Supply/Demand Dynamics Expected
U.S. Cement Supply / Demand Dynamics
(M mt)
123 115
105 Practical Capacity 92
82 77 72
Total Cement Demand
2011 2012 2013 2014 2015 2016 2017
Note: Total cement demand includes Portland, Blended and Masonry cement. Source: USGS, PCA, CX estimates 15
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Cement Prices Need To Reflect Cost of Capital
Prices (in real terms) averaged US$154/ton throughout the 70’s
Since then, increasing fuel and energy costs have not been passed on to the market successfully
Stricter environmental regulations will also require additional investment
At current industry prices, averaging US$90/ton, we will not achieve an adequate return on investment
Pricing, more than ever, is an integral element of our efforts that will allow us to recover our cost of capital
16
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2013 Cement Price Increases
$8.8/mt (Jan ‘13)
$8.8/mt (Jul ‘13)
$8.8/mt (Jan ‘13) $8.8/mt (Jan ‘13)
$8.8/mt (Jul ‘13) $8.8/mt (Jul ‘13)
$8.8/mt (Jan ‘13) $8.8/mt (Jan ‘13)
$8.8/mt (Jul ‘13) $8.8/mt (Jul ‘13)
CX Cement Plant $8.8/mt (Jan ‘13)
$8.8/mt (Jul ‘13)
Achieving Pricing Excellence is Our #1 Priority Going Forward
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In Ready-Mix, We Are Increasing Our Effectiveness to Charge for Our Products
Cost Recovery Charges
Productivity Charges
Transfer input cost volatility
Allocate circumstantial or unexpected charges
Fuel Surcharge Environmental Fees Opening Plant Fee
Less than Truck Load Fee Standing Time Fee After Hour Delivery Fee Cancellation / Reschedule Fee
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During 9M12, Significant Improvement Has Been Achieved on this Front
Ready-Mix Fees & Surcharges
(US$ M)
~150
YoY % +56% +42% +52%
23 32
9
Cost Recovery Productivity 9M12 Total 9M Potential
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Volume Enhancement Initiatives Key to Commercial Strategy
Potential to increase revenue from increased penetration in pavement applications
Pushing value-added infrastructure solutions
Increasing development of Ready-Mix special products
Providing customers with cost saving housing solutions
CEMEX adds value by being a comprehensive solutions provider
20
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Significant Volume Potential From Increase in Penetration of Pavement Applications
Cement Industry Market Potential
(M mt)
~93
~42
Pot. Additional
~31 Volume
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~20
17 Current Industry
11 Penetration
4 2
Highways Streets Parking Total
& Roads
% Penetration 25% 14% 10% 18%
Source: PCA, FHWA Highway Statistics Manual, CX estimates
21
Aiming At Increasing Volume of Ready-Mix Special Products
Ready-Mix Special Products
(% of Total Volume)
55%
35%
28%
2011 2012 YTD 2016 Target
Accelerate
Shotcrete
High-Range Water Reducers
Fiber-reinforced
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Continuous Effort to Achieve Excellence in Cost Management
Key Cement Variable Costs
Index
110 Raw Materials
100
Fuel
90 Power
80
2008 2009 2010 2011 2012e
Cement Production Cash Costs
9M12 Breakdown (% of Total)
Raw
Power Materials
13% 12%
Fuel 18% 17% Labor
40%
Other
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Aiming At Reducing Fuel Costs Through Continuous Management of Fuel Mix
Total Fuels Usage
2012 YTD Fuels Mix (%)
Alt. Fuels
22%
47% Coal
Natural 21%
Gas
11%
Petcoke
Alternative Fuels Usage
Annual Average Substitution Rate (%)
~50%
22.1%
18.2%
13.9%
10.4%
4.8% 7.3%
2007 2008 2009 2010 2011 2012 2016
YTD Target
24
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Examples of Current Alternative Fuels Projects
Clinchfield, GA
Installation of permanent multi-fuel system for burning peanut shells and RDF
Construction underway, commissioning projected for Nov. 2012 Targeting to increase AF substitution rate up to ~79% by 2016
Victorville, CA
Installation of permanent multi-fuel system for burning RDF and wood to supplement existing AF usage (e.g. tires and biosolids) Construction underway, commissioning projected for 2013 Targeting to increase AF substitution rate up to ~43% by 2016
Balcones, TX
Installation of simplified multi-fuel system for burning wood, RDF and other agricultural products on preheater Construction for multi-fuel system has been completed Targeting to increase AF substitution rate up to ~66% by 2016
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Extensive Cement Terminal Network
CEMEX (total sites) Cement (13) Import Terminals (11) Land Terminals (46)
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Freight Costs Kept Down Relative to Fuel Prices
Freight Cost vs. Diesel Price Evolution
(Index)
180 Avg. Diesel Price
160 +61%
140
Freight Cost
120(US$/ton-mile)
100 +3%
80
60
2009 2010 2011 2012e
Optimization executed via equipment rationalization, operational efficiencies, swaps and continuous network improvements
Source: EIA
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New Procurement Initiative Expected to Yield Savings in Spending
CX USA purchases parts, equipment and services from more than 11,000 suppliers
CX Marketplace provides an efficient way to compare prices and place orders
Live since September 24, 2012
More than 1 M negotiated items
Expectations to save 5-10% of total spending annually
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After a Decline in Our Operating Results…
EBITDA Evolution – 2006-2011
(US$ M)
2,330
(2,803)
(93)
(325) 920
(214)
2006 Volume Price Variable Cost Fixed Cost 2011
Proforma Actual
29
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… We Have Experienced 15 Consecutive Months of YoY Cement Volume Growth
Domestic Gray Cement Volume
(YoY %)
29.4%
24.9%
20.3% 21.4%
17.1%
12.8% 13.8% 14.1%
6.6% 6.0% 7.4% 7.9%
3.0% 2.7% 2.2%
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct
2011 2012
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Operating Leverage and “Transformation” Translating Into Improved EBITDA Margins
Operating EBITDA Margin
(YoY % Var.)
+5.8pp
+5.4pp
+4.9pp
+3.4pp
4Q11 1Q12 2Q12 3Q12
Incremental 15% 12% 43% 42%
EBITDA Margin
31
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Actively Managing Working Capital to Improve Free Cash Flow
Working Capital
(Average Days)
-33%
89 79
70
60
71 69 59
49 Inventories
49 48 48 48 Receivables
-19 -25 -24 -26 Payables
-12 -13 -12 -11 Other
2009 2010 2011 9M12
32
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Optimizing Business Portfolio Through Selective Divestments
Potential Non-Core Asset Sales 2012e
(US$ M)
71
30
16
25
Sold Under Contract In Negotiation Total Potential
Sales
33
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Recovery, Operational Leverage and Strategy Expected to Provide Promising Returns Over 5 Years
EBITDA Evolution – 2006-2016f
(US$ M)
2,330
(2,803) 560(305) 1,206
1,044
(93)
706
(325)
2006 Volume Price Cost 2011 Volume Price Cost 2016
Proforma Actual Forecast
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CEMEX USA
November 27, 2012