EX-2 3 d912930dex2.htm EX-2

EX-2

Exhibit 2

2015 FIRST QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Jesús Ortiz de la Fuente +57 (1) 603-9051 E-mail: jesus.ortizd@cemex.com

OPERATING AND FINANCIAL HIGHLIGHTS January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Consolidated cement volume 1,740 1,967 (12%) 1,740 1,967 (12%) (thousand of metric tons) Consolidated domestic gray cement 1,593 1,734 (8%) 1,593 1,734 (8%) volume (thousand of metric tons) Consolidated ready-mix volume 848 819 4% 848 819 4% (thousand of cubic meters) Consolidated aggregates volume 2,112 1,947 8% 2,112 1,947 8% (thousand of metric tons) Net sales 354 423 (16%) 354 423 (16%) Gross profit 170 208 (18%) 170 208 (18%) Gross profit margin 48.1% 49.2% (1.1pp) 48.1% 49.2% (1.1pp) Operating earnings before other 90 118 (24%) 90 118 (24%) expenses, net Operating earnings before other 25.5% 27.9% (2.4pp) 25.5% 27.9% (2.4pp) expenses, net, margin Controlling interest net income 44 55 (20%) 44 55 (20%) Operating EBITDA 112 141 (20%) 112 141 (20%) Operating EBITDA margin 31.8% 33.4% (1.6pp) 31.8% 33.4% (1.6pp) Free cash flow after maintenance 67 80 (17%) 67 80 (17%) capital expenditures Free cash flow 18 75 (75%) 18 75 (75%) Net debt 1,125 1,234 (9%) 1,125 1,234 (9%) Total debt 1,188 1,292 (8%) 1,188 1,292 (8%) Earnings per share 0.08 0.10 (20%) 0.08 0.10 (20%) Shares outstanding at end of period 556 556 0% 556 556 0% Employees 4,982 4,382 14% 4,982 4,382 14% In millions of US dollars, except percentages, employees, and per-share amounts. Shares outstanding at the end of period are presented in millions. Consolidated net sales during the first quarter of 2015 declined by 16% compared to the first quarter of 2014, mainly as a result of foreign exchange fluctuations and the effect of lower cement volumes from our operations in Colombia. Cost of sales as a percentage of net sales during the first quarter of 2015 increased by 1.1pp from 50.8% to 51.9% on a year-over-year basis. Operating expenses as a percentage of net sales during the first quarter increased by 1.3pp from 21.3% to 22.6% compared to the same period in 2014. Operating EBITDA during the first quarter reached US$112 million, declining by 20% compared to the first quarter of 2014. This decline is mainly explained by foreign exchange fluctuations and the effect of lower cement volumes from our operations in Colombia. Operating EBITDA margin during the first quarter of 2015 declined by 1.6pp, compared to the first quarter of 2014. Controlling interest net income during the first quarter of 2015 reached US$44 million, declining by 20% compared to the first quarter of 2014. Total debt at the end of the first quarter of 2015 reached US$1,188 million. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2015 First Quarter Results Page 2

OPERATING RESULTS Colombia January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 176 242 (27%) 176 242 (27%) Operating EBITDA 59 93 (36%) 59 93 (36%) Operating EBITDA margin 33.7% 38.2% (4.5pp) 33.7% 38.2% (4.5pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January – March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume (15%) (15%) 5% 5% 5% 5% Price (USD) (21%) (21%) (17%) (17%) (20%) (20%) Price (local currency) (1%) (1%) 3% 3% (1%) (1%) In Colombia, during the first quarter our domestic gray cement volumes declined by 15%, while our ready-mix and aggregates volumes increased by 5%, compared to the first quarter of 2014. Cement volumes were affected during the quarter by two main factors. First, a very strong comparison versus first quarter 2014 when we had 34% year-over-year increase and second, our price increase at the beginning of the year which resulted in a decline in our market share. The residential sector, including self-construction and formal housing, continued its positive trend. Infrastructure remained also an important driver for demand of our products with the execution of several ongoing highway projects. The industrial and commercial sectors continued with a strong performance driven by office and commercial buildings. Panama January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 72 76 (6%) 72 76 (6%) Operating EBITDA 29 32 (11%) 29 32 (11%) Operating EBITDA margin 39.9% 42.5% (2.6pp) 39.9% 42.5% (2.6pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January – March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume 9% 9% (9%) (9%) 0% 0% Price (USD) (3%) (3%) (2%) (2%) (2%) (2%) Price (local currency) (3%) (3%) (2%) (2%) (2%) (2%) In Panama during the first quarter our domestic gray cement increased by 9% while our ready-mix declined by 9% and our aggregates volumes remained stable, compared to the first quarter of 2014. During the quarter, there were higher volumes to the Panama Canal expansion project compared with those in first quarter 2014, when this project suffered from stoppages. Excluding volumes to this project, our volumes increased by 4% during the quarter on a year-over-year basis. The residential sector continued to be an important driver of demand for our products. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2015 First Quarter Results Page 3

OPERATING RESULTS Costa Rica January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 43 35 21% 43 35 21% Operating EBITDA 20 15 33% 20 15 33% Operating EBITDA margin 45.7% 41.6% 4.1pp 45.7% 41.6% 4.1pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January –March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume 8% 8% 10% 10% 45% 45% Price (USD) 6% 6% (7%) (7%) (4%) (4%) Price (local currency) 5% 5% (7%) (7%) (5%) (5%) In Costa Rica, during the first quarter our domestic gray cement, ready-mix, and aggregates volumes increased by 8%, 10% and 45%, respectively, compared to the first quarter of 2014. Infrastructure continued to be the main driver of cement demand, with ongoing projects like the Chucás hydroelectric plant as well as the Northern Interamerican Road project. Rest of CLH January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. Net sales 66 70 (6%) 66 70 (6%) Operating EBITDA 20 19 5% 20 19 5% Operating EBITDA margin 30.3% 27.1% 3.2pp 30.3% 27.1% 3.2pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January – March First Quarter January – March First Quarter January – March First Quarter variation 2015 2015 2015 2015 2015 2015 Volume (9%) (9%) 19% 19% 60% 60% Price (USD) (1%) (1%) 3% 3% 5% 5% Price (local currency) 4% 4% 5% 5% 8% 8% In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the first quarter of 2015 our domestic gray cement and decreased by 9%, while our ready-mix and aggregates volumes increased by 19% and 60%, respectively, compared to the first quarter of 2014. The positive performance in our cement volumes in Nicaragua was offset by weak demand conditions in the other markets. New ongoing housing projects in Nicaragua, along with industrial-and-commercial activity in Guatemala, remained the main drivers of demand for our products. Please refer to definition of terms and disclosure for presentation of financial and operating information. 2015 First Quarter Results Page 4

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January – March First Quarter 2015 2014 % Var 2015 2014 % Var Operating earnings before other expenses, net 90 118 (24%) 90 118 (24%) + Depreciation and operating amortization 22 23 22 23 Operating EBITDA 112 141 (20%) 112 141 (20%) - Net financial expense 21 24 21 24 - Capital expenditures for maintenance 4 9 4 9 - Change in working capital 5 7 5 7 - Taxes paid 14 21 14 21 - Other cash items (net) 1 0 1 0 Free cash flow after maintenance capital expenditures 67 80 (17%) 67 80 (17%) - Strategic capital expenditures 48 5 48 5 Free cash flow 18 75 (75%) 18 75 (75%) In millions of US dollars. Information on Debt Fourth First Quarter First Quarter Quarter Var 2014 2015 2014 2015 2014 % Total debt (1)(2) 1,188 1,292 (8%) 1,191 Currency denomination Short- term 12% 27% 12% US dollar 99% 98% Long -term 88% 73% 88% Colombian peso 1% 2% Cash and cash equivalents 63 58 8% 52 Interest rate Net debt 1,125 1,234 (9%) 1,140 Fixed 79% 80% Variable 21% 20% In millions of US dollars, except percentages. (1)Includes capital leases, in accordance with International Financial Reporting Standards (IFRS). (2)Represents the consolidated balances of CLH and subsidiaries. Please refer to definition of terms and disclosure for presentation of financial information. 2015 First Quarter Results Page 5

OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries (Thousands of U.S. Dollars, except per share amounts) January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. INCOME STATEMENT Net Sales 353,838 422,753 (16%) 353,838 422,753 (16%) Cost of Sales (183,606) (214,748) 15% (183,606) (214,748) 15% Gross Profit 170,232 208,006 (18%) 170,232 208,006 (18%) Operating Expenses (80,045) (89,939) 11% (80,045) (89,939) 11% Operating Earnings Before Other Expenses, Net 90,187 118,067 (24%) 90,187 118,067 (24%) Other expenses, Net (1,980) (224) (785%) (1,980) (224) (785%) Operating Earnings 88,207 117,843 (25%) 88,207 117,843 (25%) Financial Expenses (20,589) (24,403) 16% (20,589) (24,403) 16% Other Income (Expenses), Net 4,703 854 451% 4,703 854 451% Net Income Before Income Taxes 72,321 94,294 (23%) 72,321 94,294 (23%) Income Tax (28,357) (39,474) 28% (28,357) (39,474) 28% Consolidated Net Income 43,964 54,820 (20%) 43,964 54,820 (20%) Non-controlling Interest Net Income 173 200 (13%) 173 200 (13%) CONTROLLING INTEREST NET INCOME 43,791 54,620 (20%) 43,791 54,620 (20%) Operating EBITDA 112,426 140,999 (20%) 112,426 140,999 (20%) Earnings per share 0.08 0.10 (20%) 0.08 0.10 (20%) As of March 31 As of March 31 BALANCE SHEET 2015 2014 Total Assets 3,458,650 3,812,871 Cash and Temporary Investments 62,561 57,906 Trade Accounts Receivables 134,445 172,965 Other Receivables 31,315 92,248 Inventories 105,726 113,215 Other Current Assets 26,980 29,553 Current Assets 361,028 465,887 Fixed Assets 1,109,691 1,182,463 Other Assets 1,987,931 2,164,521 Total Liabilities 2,076,453 2,454,102 Current Liabilities 435,667 686,128 Long-Term Liabilities 1,629,921 1,755,529 Other Liabilities 10,865 12,446 Consolidated Stockholders’ Equity 1,382,197 1,358,769 Non-controlling Interest 5,600 5,660 Stockholders’ Equity Attributable to Controlling Interest 1,376,597 1,353,109 Please refer to definition of terms and disclosure for presentation of financial information. 2015 First Quarter Results Page 6

OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries (Millions of Colombian Pesos in nominal terms, except per share amounts) January – March First Quarter 2015 2014 % Var. 2015 2014 % Var. INCOME STATEMENT Net Sales 886,263 849,516 4% 886,263 849,516 4% Cost of Sales (459,882) (431,532) (7%) (459,882) (431,532) (7%) Gross Profit 426,381 417,984 2% 426,381 417,984 2% Operating Expenses, net (200,489) (180,731) (11%) (200,489) (180,731) (11%) Operating Earnings Before Other Expenses, Net 225,892 237,253 (5%) 225,892 237,253 (5%) Other Expenses, Net (4,958) (449) (1004%) (4,958) (449) (1004%) Operating Earnings 220,934 236,804 (7%) 220,934 236,804 (7%) Financial Expenses (51,571) (49,038) (5%) (51,571) (49,038) (5%) Other Income (Expenses) Financial, net 11,780 1,716 586% 11,780 1,716 586% Net Income Before Income Taxes 181,143 189,482 (4%) 181,143 189,482 (4%) Income Tax (71,027) (79,322) 10% (71,027) (79,322) 10% Consolidated Net Income 110,117 110,161 (0%) 110,117 110,161 (0%) Non-controlling Interest Net Income 434 402 8% 434 402 8% CONTROLLING INTEREST NET INCOME 109,683 109,759 (0%) 109,683 109,759 (0%) Operating EBITDA 281,596 283,335 (1%) 281,596 283,335 (1%) Earnings per share 197.99 198.11 (0%) 197.99 198.11 (0%) As of March 31 As of March 31 BALANCE SHEET 2015 2014 Total Assets 8,909,656 7,493,512 Cash and Temporary Investments 161,160 113,805 Trade Accounts Receivables 346,338 339,931 Other Receivables 80,670 181,298 Inventories 272,355 222,503 Other Current Assets 69,503 58,081 Current Assets 930,025 915,617 Fixed Assets 2,858,621 2,323,918 Other Assets 5,121,010 4,253,977 Total Liabilities 5,349,047 4,823,096 Current Liabilities 1,122,299 1,348,461 Long-Term Liabilities 4,198,759 3,450,176 Other Liabilities 27,989 24,459 Consolidated Stockholders’ Equity 3,560,608 2,670,416 Non-controlling Interest 14,425 11,125 Stockholders’ Equity Attributable to Controlling Interest 3,546,184 2,659,292 Please refer to definition of terms and disclosure for presentation of financial information. 2015 First Quarter Results Page 7

OPERATING RESULTS Operating Summary per Country In thousands of U.S. dollars. EBITDA margin as a percentage of net sales. January – March First Quarter 2015 2014 2015 2014 NET SALES % Var. % Var. Colombia 176,246 242,394 (27%) 176,246 242,394 (27%) Panama 71,915 76,115 (6%) 71,915 76,115 (6%) Costa Rica 43,043 35,467 21% 43,043 35,467 21% Rest of CLH 65,649 69,830 (6%) 65,649 69,830 (6%) Others and intercompany eliminations (3,015) (1,051) (187%) (3,015) (1,051) (187%) TOTAL 353,838 422,754 (16%) 353,838 422,754 (16%) GROSS PROFIT Colombia 85,493 127,598 (33%) 85,493 127,598 (33%) Panama 31,635 35,269 (10%) 31,635 35,269 (10%) Costa Rica 24,442 18,124 35% 24,442 18,124 35% Rest of CLH 25,304 23,972 6% 25,304 23,972 6% Others and intercompany eliminations 3,357 3,043 10% 3,357 3,043 10% TOTAL 170,232 208,006 (18%) 170,232 208,006 (18%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 52,629 84,550 (38%) 52,629 84,550 (38%) Panama 23,856 28,142 (15%) 23,856 28,142 (15%) Costa Rica 18,009 13,006 38% 18,009 13,006 38% Rest of CLH 18,688 17,814 5% 18,688 17,814 5% Others and intercompany eliminations (22,996) (25,446) 10% (22,996) (25,446) 10% TOTAL 90,187 118,066 (24%) 90,187 118,066 (24%) OPERATING EBITDA Colombia 59,313 92,617 (36%) 59,313 92,617 (36%) Panama 28,662 32,344 (11%) 28,662 32,344 (11%) Costa Rica 19,679 14,748 33% 19,679 14,748 33% Rest of CLH 19,924 18,890 5% 19,924 18,890 5% Others and intercompany eliminations (15,151) (17,600) 14% (15,151) (17,600) 14% TOTAL 112,426 140,999 (20%) 112,426 140,999 (20%) OPERATING EBITDA MARGIN Colombia 33.7% 38.2% 33.7% 38.2% Panama 39.9% 42.5% 39.9% 42.5% Costa Rica 45.7% 41.6% 45.7% 41.6% Rest of CLH 30.3% 27.1% 30.3% 27.1% TOTAL 31.8% 33.4% 31.8% 33.4% Please refer to definition of terms and disclosure for presentation of financial information. 2015 First Quarter Results Page 8

OPERATING RESULTS Volume Summary CLH volume summary Cement and aggregates: Thousands of metric tons. Ready-mix: Thousands of cubic meters. January –– March First Quarter 2015 2014 % Var. 2015 2014 % Var. Total cement volume 1 1,740 1,967 (12%) 1,740 1,967 (12%) Total domestic gray cement volume 1,593 1,734 (8%) 1,593 1,734 (8%) Total ready-mix volume 848 819 4% 848 819 4% Total aggregates volume 2,112 1,947 8% 2,112 1,947 8% Per-country volume summary January - March First Quarter First Quarter 2015 Vs. DOMESTIC GRAY CEMENT VOLUME 2015 Vs. 2014 2015 Vs. 2014 Fourth Quarter 2014 Colombia (15%) (15%) (20%) Panama 9% 9% 9% Costa Rica 8% 8% 17% Rest of CLH (9%) (9%) 1% READY-MIX VOLUME Colombia 5% 5% (3%) Panama (9%) (9%) (7%) Costa Rica 10% 10% 15% Rest of CLH 19% 19% 6% AGGREGATES VOLUME Colombia 5% 5% (4%) Panama 0% 0% (9%) Costa Rica 45% 45% 14% Rest of CLH 60% 60% 18% 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Please refer to definition of terms and disclosure for presentation of operating results. 2015 First Quarter Results Page 9

OPERATING RESULTS Price Summary Variation in U.S. Dollars January - March First Quarter First Quarter 2015 Vs. DOMESTIC GRAY CEMENT PRICE 2015 Vs. 2014 2015 Vs. 2014 Fourth Quarter 2014 Colombia (21%) (21%) (9%) Panama (3%) (3%) 0% Costa Rica 6% 6% 2% Rest of CLH (*) (1%) (1%) (2%) READY-MIX PRICE Colombia (17%) (17%) (9%) Panama (2%) (2%) (1%) Costa Rica (7%) (7%) (3%) Rest of CLH (*) 3% 3% 1% AGGREGATES PRICE Colombia (20%) (20%) (13%) Panama (2%) (2%) (2%) Costa Rica (4%) (4%) 1% Rest of CLH (*) 5% 5% 10% Variation in Local Currency January - March First Quarter First Quarter 2015 Vs. DOMESTIC GRAY CEMENT PRICE 2015 Vs. 2014 2015 Vs. 2014 Fourth Quarter 2014 Colombia (1%) (1%) 4% Panama (3%) (3%) 0% Costa Rica 5% 5% 2% Rest of CLH (*) 4% 4% (2%) READY-MIX PRICE Colombia 3% 3% 4% Panama (2%) (2%) (1%) Costa Rica (7%) (7%) (3%) Rest of CLH (*) 5% 5% 1% AGGREGATES PRICE Colombia (1%) (1%) (1%) Panama (2%) (2%) (2%) Costa Rica (5%) (5%) 1% Rest of CLH (*) 8% 8% 10% (*) Volume weighted-average price. Please refer to definition of terms and disclosure for presentation of operating results. 2015 First Quarter Results Page 10

OTHER ACTIVITIES AND INFORMATION Antitrust Investigation in Colombia Regarding this matter, as of March 31, 2015, the non-binding report prepared by the Superintendent Delegate for Competition Protection has not been issued. A decision by the Colombian Superintendency of Industry and Commerce on this matter is expected during the remainder of 2015. 2015 First Quarter Results Page 11

DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results Consolidated financial information Under IFRS, CLH reports its consolidated results in its functional When reference is made to consolidated financial information means currency, which is the US Dollar, by translating the financial statements the financial information of CLH together with its consolidated of foreign subsidiaries using the corresponding exchange rate at the subsidiaries. reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. Presentation of financial and operating information Individual information is provided for Colombia, Panama and Costa For the reader’s convenience, Colombian peso amounts for the Rica. consolidated entity are calculated by converting the US dollar amounts Countries in Rest of CLH include Nicaragua, Guatemala, El Salvador and using the closing COP/US$ exchange rate at the reporting date for Brazil. balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates used to convert: (i) the balance sheet as of March 31, 2015 and March 31, 2014 was $2,576.05 and $1,965.32 Colombian pesos per US dollar, respectively, and (ii) the consolidated results for the First quarter of 2015 and for the First quarter of 2014 were $2,504.71 and $2,009.48 Colombian pesos per US dollar, respectively. Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Exchange rates January – March January – March First quarter 2015 2014 2015 2014 2015 2014 Closing Closing Average Average Average Average Colombian peso 2,576.05 1,965.32 2,504.71 2,009.48 2,504.71 2,009.48 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 539.08 553.63 540.91 542.27 540.91 542.27 Euro 1.0738 1.3776 1.1085 1.3680 1.1085 1.3680 Amounts provided in units of local currency per US dollar. 2015 First Quarter Results Page 12

DEFINITIONS OF TERMS AND DISCLOSURES 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). Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’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 internal policies. Net debt equals total debt minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points. Strategic capital expenditures investments incurred with the purpose of increasing CLH’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. Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables. 2015 First Quarter Results Page 13