EX-3 4 d758331dex3.htm EX-3

2014 Second Quarter Results Exhibit 3

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 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 INTERNATIONAL FINANCIAL REPORTING STANDARDS Copyright CEMEX, S.A.B. de C.V. and its subsidiaries.

3 2Q14 results highlights During the quarter, operating EBITDA increased by 3% on a like-to-like basis and adjusting for the fewer number of business days in our operations Millions of US dollars 2014 2013 % var l-t-l % var 2014 2013 % var l-t-l % var Net sales 7,737 7,322 6% 7% 4,154 4,006 4% 4% Gross profit 2,313 2,189 6% 7% 1,331 1,280 4% 4% Operating earnings before other expenses, net 722 690 5% 8% 456 451 1% 2% Operating EBITDA 1,270 1,251 1% 3% 737 730 1% 1% Free cash flow after maintenance capex (396) (568) 30% 63 (86) N/A January – June Second Quarter

4 Consolidated volumes and prices Cement and ready-mix volumes, on a like-to-like basis and adjusting for the fewer number of business days, were up in all regions with the exception of Northern Europe, where some countries had brought forward construction activity as a result of very good weather during the first quarter Consolidated cement and aggregates prices increased sequentially on a like-to-like basis in local- currency terms Consolidated prices in US-dollar terms for cement, ready mix and aggregates increased by 4%, 3%, and 10%, respectively, from December 2013 to June 2014 1 Like-to-like volumes adjusted for investments/divestments and, in the case of prices, foreign-exchange fluctuations 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Volume (l-t-l 1 ) 4% 1% 12% Price (USD) (0%) 2% 2% Price (l-t-l 1 ) 2% 3% 1% Volume (l-t-l 1 ) 3% (1%) 12% Price (USD) 4% 5% 1% Price (l-t-l 1 ) 3% 3% 0% Volume (l-t-l 1 ) 7% 2% 16% Price (USD) 7% 9% 2% Price (l-t-l 1 ) 5% 5% 1% Aggregates Domestic gray cement Ready mix

Consolidated cement, ready-mix and aggregates volumes year-to-date increased by 4%, 3% and 7%, respectively Consolidated prices in local-currency terms for both cement and aggregates increased sequentially by 1% during the quarter Early conversion of approximately US$114.5 million of our 4.875% convertible subordinated notes due 2015 Issuance during April of 6.000% senior secured notes for US$1 billion maturing in 2024 and 5.250% senior secured notes for €400 million maturing in 2021 During the quarter, our subsidiary CLH started the construction of a new 860- thousand-ton cement grinding plant in Nicaragua 5 2Q14 achievements

Second Quarter 2014 Regional Highlights

7 Mexico Volume 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement (0%) (2%) 6% Ready mix 4% 4% 8% Aggregates 13% 11% 10% Price (LC) 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 0% 1% 1% Ready mix 1% 2% 2% Aggregates 2% 4% 4% Millions of US dollars Net Sales 1,551 1,627 (5%) (1%) 816 847 (4%) (1%) Op. EBITDA 497 514 (3%) 0% 247 250 (1%) 1% as % net sales 32.0% 31.6% 0.4pp 30.3% 29.6% 0.7pp 2Q14 2Q13 % var l-t-l % var 6M14 6M13 % var l-t-l % var Increase in adjusted year-over-year volumes for our three core products Cement prices increased 7% from December 2013 to June 2014 Formal construction, especially the formal residential and commercial sectors, was the main driver of consumption for our products The self-construction sector was slightly down during the quarter

8 United States Millions of US dollars Net Sales 1,749 1,604 9% 12% 957 868 10% 13% Op. EBITDA 147 99 48% 46% 119 80 49% 48% as % net sales 8.4% 6.2% 2.2pp 12.4% 9.2% 3.2pp 2Q14 2Q13 % var l-t-l % var 6M14 6M13 % var l-t-l % var Volume 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 8% 7% 20% Ready mix (1%) (2%) 14% Aggregates (3%) (1%) 9% Price (LC) 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 4% 6% 5% Ready mix 8% 9% 2% Aggregates 12% 11% 5% EBITDA increase fueled by steady volume growth, healthy pricing gains and favorable operating leverage Increase in year-over-year cement and pro-forma ready-mix volumes Sequential prices increased in our three core products The residential and industrial-and-commercial sectors continued to be the main drivers of demand in most of our major markets

9 Northern Europe Volume 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 7% (2%) 36% Ready mix 4% (3%) 24% Aggregates 11% 2% 31% Price (LC) 1 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 1% 2% (1%) Ready mix 0% 0% (4%) Aggregates (0%) 1% (4%) Millions of US dollars Net Sales 2,049 1,846 11% 5% 1,138 1,088 5% (2%) Op. EBITDA 133 92 45% 38% 121 108 12% 6% as % net sales 6.5% 5.0% 1.5pp 10.6% 9.9% 0.7pp 2Q14 2Q13 % var l-t-l % var 6M14 6M13 % var l-t-l % var Regional cement and ready-mix volumes declined during the quarter mainly due to declines in Germany and Poland, where good weather in 1Q14 resulted in some activity starting earlier in the year; year-to-date volumes continue to be favorable Year-to-date volume growth in our three core products in all countries in the region In Germany and the UK, demand for our products was driven by the residential sector In Poland, infrastructure is the main contributor to cement demand, from a very low base last year 1 Volume-weighted, local-currency average prices

10 Mediterranean Millions of US dollars Net Sales 861 747 15% 13% 449 400 12% 10% Op. EBITDA 181 168 8% 8% 100 94 6% 6% as % net sales 21.0% 22.5% (1.5pp) 22.2% 23.5% (1.3pp) 2Q14 2Q13 % var l-t-l % var 6M14 6M13 % var l-t-l % var Increase during the quarter in cement volumes in Spain, Croatia and the UAE more than offset the decline in Egypt Sequential increase in regional prices in cement and aggregates In Egypt, the informal sector continued to be the main driver for cement demand In Spain, domestic gray cement volumes showed year-over-year growth for the first time since 1Q11 1 Volume-weighted, local-currency average prices Volume 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 1% 1% 13% Ready mix 6% 1% (3%) Aggregates (3%) (12%) (8%) Price (LC) 1 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 8% 9% 9% Ready mix 3% 2% (0%) Aggregates 21% 25% 2%

11 South, Central America and the Caribean 1 Volume-weighted, local-currency average prices Millions of US dollars Net Sales 1,099 1,059 4% 9% 562 561 0% 3% Op. EBITDA 365 399 (9%) (4%) 178 211 (16%) (14%) as % net sales 33.2% 37.7% (4.5pp) 31.6% 37.6% (6.0pp) 2Q14 2Q13 % var l-t-l % var 6M14 6M13 % var l-t-l % var Increase in regional cement volumes mainly driven by growth in Colombia, the Dominican Republic, Costa Rica and Nicaragua In Colombia, positive performance during the quarter was mainly driven by the residential and infrastructure sectors In Panama, the residential and industrial-and- commercial sectors were the main drivers of consumption; quarterly volumes reflect a construction-workers strike as well as reduced consumption rate from the Canal expansion project Volume 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 8% 1% 1% Ready mix 11% 7% 7% Aggregates 21% 16% 11% Price (LC) 1 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement (0%) (1%) (1%) Ready mix 1% (1%) (2%) Aggregates (0%) (0%) 0%

12 Asia 1 Volume-weighted, local-currency average prices Volume 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 5% 1% 4% Ready mix (21%) (29%) 1% Aggregates 14% (28%) (44%) Price (LC) 1 6M14 vs. 6M13 2Q14 vs. 2Q13 2Q14 vs. 1Q14 Cement 2% 2% 2% Ready mix 14% 15% 2% Aggregates 9% (9%) (20%) Millions of US dollars Net Sales 306 305 0% 11% 160 162 (2%) 7% Op. EBITDA 59 62 (5%) (2%) 34 38 (11%) (8%) as % net sales 19.3% 20.5% (1.2pp) 21.2% 23.5% (2.3pp) 2Q14 2Q13 % var l-t-l % var 6M14 6M13 % var l-t-l % var Increase in regional domestic cement volumes during the quarter reflects positive performance in the Philippines Increase in regional cement and ready-mix prices sequentially, in local-currency terms Growth in cement volumes in the Philippines reflects positive performance in all sectors; infrastructure activity reflects ongoing reconstruction and rehabilitation efforts

2Q14 Results

14 Operating EBITDA, cost of sales and operating expenses Millions of US dollars 2014 2013 % var l-t-l % var 2014 2013 % var l-t-l % var Net sales 7,737 7,322 6% 7% 4,154 4,006 4% 4% Operating EBITDA 1,270 1,251 1% 3% 737 730 1% 1% as % net sales 16.4% 17.1% (0.7pp) 17.7% 18.2% (0.5pp) Cost of sales 5,424 5,134 (6%) 2,823 2,725 (4%) as % net sales 70.1% 70.1% 0.0pp 68.0% 68.0% 0.0pp Operating expenses 1,591 1,498 (6%) 875 829 (6%) as % net sales 20.6% 20.5% (0.1pp) 21.1% 20.7% (0.4pp) January – June Second Quarter Our operating EBITDA increased by 3%, adjusting for the fewer number of business days in our operations during the quarter Operating EBITDA margin, adjusted for business days, decreased by 0.3pp Operating expenses, as a percentage of net sales, increased by 0.4pp mainly due to higher distribution expenses during the quarter

15 Free cash flow Millions of US dollars 2014 2013 % var 2014 2013 % var Operating EBITDA 1,270 1,251 1% 737 730 1% - Net Financial Expense 692 719 343 362 - Maintenance Capex 189 149 121 101 - Change in Working Cap 453 538 148 207 - Taxes Paid 438 408 211 133 - Other Cash Items (net) (108) 5 (148) 14 Free Cash Flow after Maint.Capex (396) (568) 30% 63 (86) N/A - Strategic Capex 55 35 32 8 Free Cash Flow (451) (603) 25% 31 (94) N/A January – June Second Quarter Working capital days declined to 27 in the first half of 2014 versus 28 days during the same period in 2013

Other expenses, net, during the quarter resulted in an income of US$62 million which includes a gain in sales of fixed assets, especially in Northern Europe, mitigated by severance payments Foreign-exchange gain of US$65 million resulting primarily from the fluctuation of the Mexican peso versus the U.S. dollar Gain on financial instruments of US$77 million related mainly to CEMEX shares Controlling interest net income of US$76 million, versus a loss of US$152 in 2Q13, mainly reflects an income in the other expenses line, a gain on financial instruments, lower income taxes, and higher operating earnings before other expenses, mitigated by higher financial expenses and a lower foreign-exchange gain 16 Other income statement items

Second Quarter 2014 Debt Information

Early conversion of additional US$114.5 million of our 4.875% convertible subordinated notes due 2015; approximately US$320 million of these notes remain outstanding Issuance of US$1 billion of 6.000% senior secured notes maturing in 2024 and €400 million of 5.250% senior secured notes maturing in 2021. Proceeds used to pay: • US$597 million of our 9.250% senior secured notes due 2020 • US$483 million of our 9.000% senior secured notes due 2018 • The remaining €130 million of our 9.675% senior secured notes due 2017 • The remaining €115 million of our 8.875% senior secured notes due 2017 During the quarter, total debt plus perpetual securities decreased by US$125 million • Positive conversion effect during the quarter of US$5 million 18 Debt-related information

19 Consolidated debt maturity profile Total debt excluding perpetual notes 1 as of June 30, 2014 US$ 16,569 million 1 CEMEX has perpetual debentures totaling US$476 million 2 Convertible Subordinated Notes include only the debt component of US$1,807 million. Total notional amount is about US$1,988 million 171 1,109 2,748 591 928 1,550 4,297 2,540 Millions of US dollars 1,513 160 • Avg. life of debt: 4.6 years 963 Fixed Income New Facilities Agreement Other bank / WC debt / Certificados Bursátiles Convertible Subordinated Notes 2

Appendix

21 Additional information on debt and perpetual notes Interest rate Fixed 66% Variable 34% Currency denomination U.S. dollar 87% Euro 11% Mexican peso 2% 1 2 3 4 First Quarter 2014 2013 % Var. 2014 Total debt 1 16,569 16,476 1% 16,693 Short-term 3% 3% 6% Long-term 97% 97% 94% Perpetual notes 476 472 1% 477 Cash and cash equivalents 737 746 (1%) 845 Net debt plus perpetual notes 16,308 16,201 1% 16,325 Consolidated Funded Debt 2 / EBITDA 3 5.49 5.54 5.54 Interest coverage 4 2.15 2.06 2.12 Second Quarter Millions of US dollars Includes convertible notes and capital leases, in accordance with IFRS Consolidated Funded Debt as of June 30, 2014 was US$14,629 million, in accordance with our contractual obligations under the Facilities Agreement EBITDA calculated in accordance with IFRS Interest expense in accordance with our contractual obligations under the Facilities Agreement 3

22 6M14 volume and price summary: Selected countries Prices Prices Prices (LC) (LC) (LC) Mexico (0%) (3%) 0% 4% (2%) 1% 13% (2%) 2% U.S. 8% 4% 4% (1%) 8% 8% (3%) 12% 12% Germany 6% 7% 2% 5% 9% 4% 6% 4% (1%) Poland 2% 6% (1%) 2% (6%) (11%) 25% 10% 3% France N/A N/A N/A 1% 3% (1%) 8% 4% (0%) UK 2% 10% 1% 4% 12% 3% 15% 11% 2% Spain 0% (4%) (8%) 2% 10% 5% (23%) 3% (1%) Egypt (3%) 14% 17% (1%) 9% 12% 1% (21%) (18%) Colombia 20% (7%) (2%) 17% (4%) 1% 32% (6%) (0%) Panama (19%) 13% 13% (8%) 0% 0% (6%) (2%) (2%) Costa Rica 7% (4%) 4% (19%) (2%) 6% (4%) (11%) (3%) Philippines 7% (5%) 2% N/A N/A N/A N/A N/A N/A Prices (USD) Volumes Prices (USD) Volumes Prices (USD) Volumes Aggregates 6M14 vs. 6M13 Domestic gray cement 6M14 vs. 6M13 Ready mix 6M14 vs. 6M13

23 2Q14 volume and price summary: Selected countries Prices Prices Prices (LC) (LC) (LC) Mexico (2%) (1%) 1% 4% (1%) 2% 11% 1% 4% U.S. 7% 6% 6% (2%) 9% 9% (1%) 11% 11% Germany (7%) 7% 2% (7%) 9% 4% (12%) 4% (1%) Poland (15%) 6% (1%) (6%) (3%) (10%) 10% 18% 9% France N/A N/A N/A (8%) 4% (1%) 3% 4% (1%) UK 1% 11% 1% 2% 14% 3% 14% 12% 1% Spain 6% (7%) (12%) 7% 9% 3% (21%) 7% 2% Egypt (2%) 17% 19% 10% 9% 11% 34% (15%) (14%) Colombia 9% (3%) (2%) 13% (0%) 1% 27% (0%) 1% Panama (20%) 10% 10% (22%) (2%) (2%) (16%) (5%) (5%) Costa Rica 1% (6%) 3% (21%) (6%) 3% 2% (18%) (10%) Philippines 2% (2%) 3% N/A N/A N/A N/A N/A N/A Prices (USD) Volumes Prices (USD) Aggregates 2Q14 vs. 2Q13 2Q14 vs. 2Q13 Domestic gray cement 2Q14 vs. 2Q13 Prices (USD) Volumes Ready mix Volumes

24 Definitions 6M14 / 6M13: Results for the six months of the years 2014 and 2013, 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) LC: Local currency Like-to-like percentage variation (l-t-l % var): Percentage variations adjusted for investments/divestments and currency fluctuations Maintenance capital expenditures: Investments incurred for the purpose of ensuring the company’s 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. Operating EBITDA: Operating earnings before other expenses, net plus depreciation and operating amortization pp: Percentage points Prices: All references to pricing initiatives, price increases or decreases, refer to our prices for our products Strategic capital expenditures: Investments incurred with the purpose of increasing the company’s 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.

25 Contact information Calendar of Events October 23, 2014 Third quarter 2014 financial results conference call