EX-99.3 4 dex993.htm PRESENTATION REGARDING FOURTH QUARTER AND FULL YEAR 2010 RESULTS

Presentation regarding fourth quarter and full year 2010 results

Exhibit 3

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 financing agreement entered into with major creditors and other

debt

agreements,

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, 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.

UNLESS OTHERWISE NOTED, ALL FIGURES  ARE PRESENTED IN DOLLARS, 

BASED ON OUR MEXICAN FRS FINANCIAL STATEMENTS

Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.

2

www.cemex.com

4Q10 RESULTS

4Q10 RESULTS

February 2011

February 2011

4Q10 and 2010 achievements

First quarter with year-over-year growth in operating EBITDA

generation since 1Q07, signaling an important inflection point in our

trailing-twelve-month EBITDA

Achieved US$150 million as part of our 2010 savings program

Increased the use of alternative fuels, reaching  20% utilization during

the year

On

track

to

achieve

a

25%

reduction

in

specific

CO

2

emissions

by

2015 from 1990 levels

Reduced our total debt, including perpetual securities, by more than

US$1.4 billion during the year

4

4Q10 results highlights

January –

December

Fourth Quarter

2010

2009

% var

l-t-l

% var

2010

2009

% var

l-t-l

% var

Net sales

14,069

14,544

(3%)

(4%)

3,492

3,444

1%

2%

Gross profit

3,943

4,274

(8%)

(10%)

893

911

(2%)

(2%)

Operating income

856

1,165

(27%)

(32%)

125

98

28%

20%

Operating EBITDA

2,314

2,657

(13%)

(16%)

482

474

2%

1%

Free cash flow after

maintenance capex

512

1,215

(58%)

248

401

(38%)

Millions of US dollars

5

Infrastructure and housing were the main drivers of demand for our products

Adverse weather conditions, especially in Europe, Colombia, and the U.S., affected our

volumes

Ready mix

Volume (l-t-l

1

)

(5%)

2%

(5%)

Price (USD)

(4%)

(4%)

0%

Price (l-t-l

1

)

(4%)

(2%)

(2%)

Aggregates

Volume (l-t-l

1

)

(4%)

(1%)

(12%)

Price (USD)

(2%)

(5%)

(2%)

Price (l-t-l

1

)

(1%)

(3%)

(4%)

2010 vs. 2009

4Q10 vs. 4Q09

4Q10 vs. 3Q10

Domestic gray

cement

Volume (l-t-l

1

)

(3%)

(2%)

(10%)

Price (USD)

0%

0%

2%

Price (l-t-l

1

)

(2%)

(1%)

0%

6

Consolidated volumes and prices

1

Like-to-like prices adjusted for investments/divestments and, in the case of prices, foreign-exchange fluctuations

Consolidated ready-mix volumes showed growth for the first time in several years, while

the rate of decline in aggregates volumes, on a like-to-like basis, moderated for the

sixth consecutive quarter

www.cemex.com

REGIONAL

HIGHLIGHTS

REGIONAL

HIGHLIGHTS

February 2011

February 2011

Mexico

2010

2009

% var

l-t-l

% var

4Q10

4Q09

% var

l-t-l

% var

Net Sales

3,435

3,113

10%

3%

902

723

25%

18%

Op. EBITDA

1,153

1,160

(1%)

(7%)

287

251

14%

8%

as % sales

33.6%

37.3%

(3.7pp)

31.8%

34.8%

(3.0pp)

Volume

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(4%)

(0%)

(4%)

Ready mix

(4%)

24%

18%

Aggregates

(1%)

30%

27%

Price (LC)

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

0%

4%

1%

Ready mix

3%

6%

2%

Aggregates

11%

10%

4%

8

Federal resources to rebuild public

infrastructure due to natural disasters

helped moderate the contraction in

cement-intensive projects in 2010;

infrastructure spending expected to

grow by 4% in 2011

Investment in the residential sector had

a slight decline of about 1.5% in 2010;

expected to show growth in 2011 of

more than 1% for both, formal and in

the self-construction sectors

Industrial-and-commercial investment

decreased by 4% in 2010; this drop is

expected to reverse in 2011

Millions of

US dollars

United States

2010

2009

% var

l-t-l

% var

4Q10

4Q09

% var

l-t-l

% var

Net Sales

2,491

2,825

(12%)

(12%)

572

602

(5%)

(5%)

Op. EBITDA

(45)

143

N/A

N/A

(36)

(5)

(700%)

(700%)

as % sales

(1.8%)

5.1%

N/A

(6.3%)

(0.7%)

N/A

Volume

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(0%)

3%

(13%)

Ready mix

(7%)

(10%)

(17%)

Aggregates

(5%)

(7%)

(19%)

Price (LC)

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(8%)

(8%)

(1%)

Ready mix

(11%)

(4%)

0%

Aggregates

(4%)

1%

4%

9

4Q10 slightly better than most recent

guidance despite poor December

weather in some of our states

Positive 2011 outlook for infrastructure

reflecting remaining unspent ARRA

1

funds and the delay in spending of 2010

federal highway monies

Gradual recovery expected in the

residential sector

Millions of

US dollars

1

ARRA: American Recovery

and

Reinvestment

Act

Europe

2010

2009

% var

l-t-l

% var

4Q10

4Q09

% var

l-t-l

% var

Net Sales

4,793

5,360

(11%)

(7%)

1,130

1,322

(15%)

(8%)

Op. EBITDA

434

596

(27%)

(24%)

81

109

(26%)

(20%)

as % sales

9.1%

11.1%

(2.0pp)

7.2%

8.2%

(1.0pp)

Volume

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(8%)

(4%)

(24%)

Ready mix

(7%)

(7%)

(19%)

Aggregates

(8%)

(11%)

(23%)

10

Price (LC)

1

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(5%)

(4%)

(1%)

Ready mix

(1%)

0%

1%

Aggregates

1%

1%

1%

1

Volume-weighted, local-currency average prices

The main driver of demand for building

materials in the region was the

residential sector

Adverse weather conditions affected

volumes for the quarter

National budget cuts in several

countries have affected public

infrastructure spending

Record alternative fuel substitution

achieved in several countries in the

region during 2010

Millions of

US dollars

South/Central America and the Caribbean

2010

2009

% var

l-t-l

% var

4Q10

4Q09

% var

l-t-l

% var

Net Sales

1,444

1,443

0%

(5%)

366

341

7%

5%

Op. EBITDA

460

511

(10%)

(15%)

97

115

(16%)

(18%)

as % sales

31.9%

35.4%

(3.5pp)

26.5%

33.8%

(7.3pp)

Volume

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(3%)

(3%)

(0%)

Ready mix

(2%)

8%

(2%)

Aggregates

8%

4%

(7%)

11

Price (LC)

1

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(1%)

1%

(1%)

Ready mix

(6%)

(1%)

1%

Aggregates

(9%)

(6%)

0%

1

Volume-weighted, local-currency average prices

Volume decline reflecting adverse

weather conditions and delayed

infrastructure projects

In Colombia, high confidence levels, low

interest rates, and inflation will continue

to drive the residential sector, especially

low-income housing

In Panama, new projects development

was affected by harsh weather

conditions

Millions of

US dollars

Africa and Middle East

2010

2009

% var

l-t-l

% var

4Q10

4Q09

% var

l-t-l

% var

Net Sales

1,035

1,049

(1%)

(2%)

264

261

1%

3%

Op. EBITDA

369

333

11%

12%

95

68

40%

47%

as % sales

35.7%

31.7%

4.0pp

35.8%

25.9%

9.9pp

Volume

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

(1%)

(4%)

(2%)

Ready mix

(4%)

7%

22%

Aggregates

7%

8%

13%

12

Price (LC)

1

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

3%

3%

(0%)

Ready mix

(10%)

(3%)

0%

Aggregates

3%

4%

(0%)

1

Volume-weighted, local-currency average prices

Year-over-year growth in cement

volume in Egypt was offset by volume

decline in the UAE

The informal residential sector was the

main driver of cement demand in Egypt

during 2010

Millions of

US dollars

Asia

2010

2009

% var

l-t-l

% var

4Q10

4Q09

% var

l-t-l

% var

Net Sales

515

474

9%

3%

125

122

2%

(4%)

Op. EBITDA

123

115

7%

2%

20

21

(9%)

(11%)

as % sales

23.8%

24.2%

(0.4pp)

15.7%

17.5%

(1.8pp)

Volume

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

9%

(8%)

(9%)

Ready mix

(2%)

13%

38%

Aggregates

3%

9%

21%

13

Price (LC)

1

2010 vs.

2009

4Q10 vs.

4Q09

4Q10 vs.

3Q10

Cement

1%

(0%)

(5%)

Ready mix

1%

3%

(0%)

Aggregates

7%

4%

(3%)

1

Volume-weighted, local-currency average prices

Quarterly decrease in cement volumes

in the region, driven mainly by decline

in the Philippines

Positive activity from the residential

sector in the Philippines supported by

overseas remittances

In the Philippines, infrastructure

spending moderated after mid-year

elections, and is expected to resume

this year

Millions of

US dollars

www.cemex.com

4Q10 RESULTS

4Q10 RESULTS

February 2011

February 2011

Operating EBITDA, cost of sales and SG&A

January –

December

Fourth Quarter

2010

2009

% var

l-t-l

% var

2010

2009

% var

l-t-l

% var

Net sales

14,069

14,544

(3%)

(4%)

3,492

3,444

1%

2%

Operating EBITDA

2,314

2,657

(13%)

(16%)

482

474

2%

1%

as % sales

16.4%

18.3%

(1.9pp)

13.8%

13.8%

0.0pp

Cost of sales

10,127

10,270

1%

2,599

2,532

(3%)

as % sales

72.0%

70.6%

1.4pp

74.4%

73.5%

0.9pp

SG&A

3,087

3,109

1%

768

813

6%

as % sales

21.9%

21.4%

0.5pp

22.0%

23.6%

(1.6pp)

15

Millions of US dollars

Operating EBITDA margin affected by lesser economies of scale due to lower volumes,

softer prices, and higher transportation costs, offset by our cost-reduction initiatives

Free Cash Flow

January –

December

Fourth Quarter

2010

2009

% var

2010

2009

% var

Operating EBITDA

2,314

2,657

(13%)

482

474

2%

-

Net Financial Expense

1,118

914

284

263

-

Maintenance Capex

424

241

248

98

-

Change in Working Cap

52

219

(420)

(497)

-

Taxes Paid

335

291

146

147

-

Other Cash Items (net)

(127)

(21)

(25)

62

-

Free cash flow D.O.

0

(202)

0

0

FCF after Maint

Capex

512

1,215

(58%)

248

401

(38%)

-

Expansion Capex

125

402

49

67

-

Expansion Capex

D.O.

0

8

0

0

Free Cash Flow

387

805

(52%)

199

334

(40%)

16

D.O. = Discontinued Operations

Millions of US dollars

Other items

Kiln fuels and electricity cost, on a per-ton-of-cement-produced basis,

increased by 4% during 2010

–

Consolidated

alternative

fuel

utilization

reached

21%

during

the

fourth

quarter

–

Continue pursuing Clean Development Mechanism projects

Other expenses, net, of US$220 million during the quarter due mainly

to impairment of fixed assets and goodwill, a loss on sale of assets,

and severance payments

Gain on financial instruments of US$44 million resulting mainly from

the equity derivatives related to CEMEX shares

17

www.cemex.com

DEBT

INFORMATION

DEBT

INFORMATION

February 2011

February 2011

Debt-related activity in the quarter

We continued to issue notes under our short-term Certificados

Bursátiles

Program during the quarter at rates of about 5%

In January 2011, we issued US$1 billion in senior secured notes

used

to

prepay

or

create

a

reserve

to

pay

Certificados

Bursátiles

maturing in the next 12 months, prepay the Financing Agreement ,

pay other debt, and replenish our cash reserves

With the issuance of these notes, we have substantially addressed

our debt maturities until September 2012

19

US$ million

Consolidated debt maturity profile

Total debt excluding perpetual debentures as of December 31, 2010

US$ 16,409 million

Fixed Income

Financing Agreement

Other bank / WC debt

456

1,163

8,087

631

668

20

2,414

1,231

1,759

Convertible Subordinated Notes

Certificados Bursátiles

2

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

2011

2012

2013

2014

2015

2016

2017

2018

2019

APPENDIX

APPENDIX

Additional information on debt                                 

and perpetual notes

Fourth Quarter

Third Quarter

2010

2009

% Var.

2010

Total debt

16,409

16,130

2%

16,775

Short-term

3%

4%

4%

Long-term

97%

96%

96%

Perpetual notes

1,320

3,045

(57%)

1,328

Cash and cash equivalents

676

1,077

(37%)

838

Net debt plus perpetual notes

17,053

18,098

(6%)

17,265

Consolidated Funded Debt / EBITDA

2

7.43

N/A

7.61

Interest Coverage

2

1.95

N/A

1.96

22

U.S.

dollar

67%

Euro

24%

Mexican

peso

9%

Variable

62%

Fixed

38%

Millions of US dollars

1

Excluding perpetual notes.

2

Starting in the second quarter of 2010, calculated in accordance with our contractual obligations under our Financing Agreement.

Currency denomination

1

Currency denomination

1

Interest rate

1

Interest rate

1

2010 volume and price summary:

Selected countries

Domestic gray cement    

2010 vs. 2009

Ready mix                                        

2009

Aggregates                 

2010 vs. 2009

Volumes

Prices

(USD)

Prices

(LC)

Volumes

Prices

(USD)

Prices

(LC)

Volumes

Prices

(USD)

Prices

(LC)

Mexico

(4%)

8%

0%

(4%)

11%

3%

(1%)

19%

11%

U.S.

(0%)

(8%)

(8%)

(7%)

(11%)

(11%)

(5%)

(4%)

(4%)

Spain

(22%)

(12%)

(7%)

(20%)

(14%)

(9%)

(14%)

(3%)

2%

UK

1%

(6%)

(4%)

(3%)

(5%)

(3%)

(2%)

(6%)

(4%)

France

N/A

N/A

N/A

1%

(6%)

(1%)

(4%)

(2%)

3%

Germany

(2%)

(8%)

(1%)

(10%)

(8%)

(1%)

(7%)

(4%)

3%

Poland

(1%)

(4%)

(4%)

10%

(10%)

(10%)

7%

0%

1%

Colombia

5%

7%

(6%)

1%

5%

(8%)

(5%)

1%

(13%)

Egypt

2%

3%

5%

11%

(5%)

(3%)

2%

(4%)

(3%)

Philippines

8%

8%

2%

N/A

N/A

N/A

N/A

N/A

N/A

23

4Q10 volume and price summary:

Selected countries

Domestic gray cement       

4Q10 vs. 4Q09

Ready mix                                        

4Q10 vs. 4Q09

Aggregates                 

4Q10 vs. 4Q09

Volumes

Prices

(USD)

Prices

(LC)

Volumes

Prices

(USD)

Prices

(LC)

Volumes

Prices

(USD)

Prices

(LC)

Mexico

0%

9%

4%

24%

12%

6%

30%

16%

10%

U.S.

3%

(8%)

(8%)

(10%)

(4%)

(4%)

(7%)

1%

1%

Spain

(12%)

(16%)

(8%)

(9%)

(18%)

(10%)

(19%)

(4%)

5%

UK

(3%)

(6%)

(2%)

1%

(5%)

0%

(6%)

(6%)

(2%)

France

N/A

N/A

N/A

6%

(9%)

(1%)

(2%)

(7%)

2%

Germany

(5%)

(11%)

(3%)

(19%)

(10%)

(2%)

(11%)

(9%)

(1%)

Poland

14%

(6%)

(2%)

8%

(7%)

(3%)

(10%)

5%

10%

Colombia

0%

2%

(4%)

4%

6%

(1%)

(37%)

(19%)

(24%)

Egypt

0%

(3%)

2%

9%

(8%)

(2%)

(5%)

(16%)

(11%)

Philippines

(11%)

8%

0%

N/A

N/A

N/A

N/A

N/A

N/A

24

Definitions

2010

/

2009:

results

for

the

twelve

months

of

the

years

2010

and

2009,

respectively.

Cement:

When

providing

cement

volume

variations,

refers

to

domestic

gray

cement operations (starting in 2Q10, the base for reported cement volumes

changed

from

total

domestic

cement

including

clinker

to

domestic

gray

cement)

Expansion capital expenditures:

consist of expansion spending on our

cement, ready-mix, and other core businesses in existing markets

LC:

Local

currency

Like-to-like

percentage

variation

(l-t-l

%

var):

Percentage

variations

adjusted

for investments/divestments and currency fluctuations

Maintenance capital expenditures:

consist of maintenance spending on our

cement, ready-mix, and other businesses in existing markets

Operating

EBITDA:

Operating

income

plus

depreciation

and

operating

amortization

pp:

percentage points

26

Contact information

Investor Relations

In the United States         

+1 877 7CX NYSE

In Mexico                       

+52 81 8888 4292

ir@cemex.com

Stock Information

NYSE (ADS): CX

Mexican Stock Exchange:

CEMEXCPO

Ratio of CEMEXCPO to

CX:10 to 1

27

Calendar of Events 

February 24, 2011

Annual Shareholders’

Meeting

April 29, 2011

First quarter 2011 financial results and

conference call

July 22, 2011

Second quarter 2011 financial results and

conference call

October 26, 2011

Third quarter 2011 financial results and

conference call