Fernando A. González. EVP Finance and Administration, CFO. February 14,

Transcription

1 Fernando A. González EVP Finance and Administration, CFO February 14,

2 Forward looking information This presentation contains certain forward-looking statements and information relating to CEMEX, S.A.B. de C.V. and its subsidiaries (collectively, CEMEX ) that are based on its 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 countries in which CEMEX operates, CEMEX s ability to comply with the terms and obligations of the facilities agreement entered into with major creditors and other debt agreements, CEMEX s ability to achieve anticipated cost savings, changes in interest rates, changes in inflation rates, changes in exchange rates, the cyclical activity of the construction sector generally, changes in cement demand and prices, CEMEX s ability to benefit from government economic stimulus plans, 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 forwardlooking statements, whether as a result of new information, future events or otherwise. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS Copyright CEMEX, S.A.B. de C.V. and its subsidiaries. 2

3 Our objective today is to show you How we have progressed in recovering our financial flexibility How we have improved our credit profile and financial metrics How we are prepared to address future challenges How we expect to create value for our stakeholders in the coming years 3

4 CEMEX has made significant progress towards regaining its financial flexibility Refinanced ~$15.0B of bank debt and PPNs in 2009 Extended ~$6.7B of the outstanding Financing Agreement in 2012 Issued $8.9B of high yield notes since 2009 Raised $4.5B of equity and equity-like securities since 2009 Sold assets for ~$4.3B since 2009, 9.8% of our 2009 asset base Reduced total debt by $5.6 B since June

5 The end of 2011 was characterized by volatility and uncertainty Capital markets characterized by volatility and risk aversion Market concerns surrounding covenant compliance Premature uncertainty about 2014 maturities Rating downgrade by S&P 5

6 CEMEX was diligent in implementing 2012 financial plan to address challenges Transaction March LIABILITY MANAGEMENT Description Reduced debt by exchanging 53% of 2014 Eurobonds into new Notes September NEW FINANCING AGREEMENT Negotiated a 5 year extension of $6.7 B of Financing Agreement debt Substantially de-risked capital structure Regained financial flexibility to access the capital markets Improved margin for covenant compliance October CAPITAL MARKETS Issued $1.5B, 9.375% 10 year Note to prepay Facilities Agreement debt, resulting in a 25 bp spread reduction November CAPITAL STRUCTURE Completed CEMEX Latam Holdings IPO for ~$1.0 B, reducing leverage ratio and restoring Facilities Agreement debt spread to 450 bps 6

7 2012 financial plan significantly improved and de-risked our capital structure December 2011 December 2012 Total Debt: $18.1B Avg. life: 3.8 yrs Debt cash cost: 6.3% Total Debt: $16.6B Avg. life: 5.0 yrs Debt cash cost: 7.1% $ B 8.0 Bank and Capital Markets Debt Optional Convertibles Perpetual Securities > >2021 In position to implement opportunistic transactions to further enhance debt profile and reduce funding costs 7

8 Debt reduction and EBITDA growth resulted in improved credit metrics Leverage Ratio (times) (1) Coverage Ratio (times) (1) Covenant (1) Committed to deleveraging and regaining financial flexibility 1) As defined in CEMEX s Financing Agreement (2010 & 2011) and Facilities Agreement (2012) 8

9 Improved operating and capital market conditions expected to continue Positive outlook in the US, Mexico, SAC, and Asia Continued margin improvement Favorable capital market conditions Historically low yields Improving outlook by rating agencies In position to implement transactions to further enhance debt profile and reduce funding costs 9

10 Manageable challenges ahead Refinancing needs of only ~$750M through March 2015 Maturities of $4.8B through including convertibles represent only 23% of fundraising activities executed in No bank debt maturities until 2017 Improving leverage and credit ratings Maintaining adequate liquidity 10

11 Improving EBITDA through 2016 should improve our credit profile and unlock value for our stakeholders Targeted leverage ratio below 3.0 times by 2016 Improved free cash flow conversion rate Investment grade capital structure Continue diversifying funding sources and investor base Reduced cost of capital Regaining financial flexibility 11

12 Fernando A. González EVP Finance and Administration, CFO February 14,