Cemex Sab De CV 6-K/A, filed Apr 28, 2022
Cemex Sab De CV (CX)
About this 6-K/A
Cemex Sab De CV filed this 6-K/A on April 28, 2022.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K/A
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2022
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,
San Pedro Garza García, Nuevo León 66265, México
(Address of principal executive offices)
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 ☒ 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):
EXPLANATORY NOTE
6-K Amendment, Replacing Exhibit 2 - First quarter 2022 results for CEMEX.
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.
| CEMEX, S.A.B. de C.V. | ||||||
| (Registrant) | ||||||
| Date: April 28, 2022 | By: | /s/ Rafael Garza Lozano | ||||
| Name: | Rafael Garza Lozano | |||||
| Title: | Chief Comptroller | |||||
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EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Press release dated April 28, 2022, announcing first quarter 2022 results for CEMEX, S.A.B. de C.V. (NYSE: CX) (“CEMEX”). | |
| 2. | First quarter 2022 results for CEMEX. | |
| 3. |
Presentation regarding first quarter 2022 results for CEMEX. | |
4
Exhibit 1
| Media Relations Jorge Pérez +52 (81) 8259-6666 jorgeluis.perez@cemex.com |
Analyst and Investor Relations Alfredo Garza / Fabián Orta +1 (212) 317-6011 +52 (81) 8888-4327 ir@cemex.com |
CEMEX REPORTS DOUBLE-DIGIT GROWTH
IN SALES AND INCREASE IN EBITDA
| • | All regions contributed to solid growth in sales. |
| • | Consolidated cement prices grew double-digit. |
| • | Expanding EBITDA led by growth in EMEA region. |
| • | Strong underlying demand conditions with robust volume growth in US and Europe. |
| • | Reduction of 4% in CO2 emissions versus same quarter of 2021. |
| • | EBITDA outlook maintained, expecting mid-single digit growth for 2022. |
MONTERREY, MEXICO. APRIL 28, 2022 – CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX) announced today strong results for the first quarter of 2022, with consolidated Net Sales and EBITDA growing 13% and 3%, respectively, on a year-over-year basis, despite a challenging cost environment. The growth was led by a 12% increase in cement prices in like-to-like terms, 8% in ready-mix, and 7% in aggregates, with all regions contributing to pricing gains. CEMEX’s Developed Market portfolio continued to enjoy strong demand dynamics, with cement and ready-mix volumes growing high single to double-digits. CEMEX maintained its 2022 EBITDA outlook, projecting mid-single digit growth.
CEMEX’s Consolidated 2022 First Quarter Financial and Operational Highlights.
| • | Net Sales increased 13% to US$3,770 million. |
| • | Operating EBITDA increased 3% to US$691 million. |
| • | Operating EBITDA margin declined by 1.7pp year-over-year with a sequential margin improvement. |
| • | Free Cash Flow after Maintenance Capital Expenditures was negative US$175 million, due primarily to higher investment in working capital and maintenance capex. |
| • | On a like to like basis, adjusting for an extraordinary gain on sale of assets in 2021, Controlling Interest Net Income tripled to US$198 million. |
“We are quite pleased with our first quarter performance despite the unprecedented global macro challenges. Against the backdrop of the worst inflation headwinds in more than 40 years, we achieved strong pricing traction across our products. Given the tight supply/demand dynamics in most of our markets, we are optimistic that we can recover input cost inflation. In addition, our diversified energy, supply chain, and Climate Action strategies are paying off and helping us respond to energy cost pressures.” said Fernando A. González, CEO of CEMEX. “We are making significant progress on our climate action efforts, pushing the boundaries on innovation – introducing new sustainable products and developing breakthrough decarbonization technologies. Our performance gives me great confidence that we can reach not only our 2030 climate goal but also our Net Zero ambition.”
1
Geographical Markets 2022 First Quarter Highlights
In the Europe, Middle East, Africa and Asia region, Net Sales increased 14% in the first quarter, to US$1,185 million. Operating EBITDA was US$145 million for the quarter, 33% higher.
CEMEX’s operations in the United States reported Net Sales of US$1,196 million in the first quarter, an increase of 18%. Operating EBITDA increased 2% to US$200 million in the first quarter.
Net Sales in Mexico increased 5% in the first quarter, to US$881 million. Operating EBITDA decreased 6% in first the quarter, to US$286 million.
CEMEX’s operations in the South, Central America and the Caribbean region, reported Net Sales of US$416 million in the first quarter, an increase of 9%. Operating EBITDA decreased 3% to US$109 million in the quarter.
Note: All percentage variations related to Net Sales and EBITDA are on a like-to-like basis for the ongoing operations and for foreign exchange fluctuations compared to the same period of last year.
CEMEX is a global construction materials company that is building a better future through sustainable products and solutions. CEMEX is committed to achieving carbon neutrality through relentless innovation and industry-leading research and development. CEMEX is at the forefront of the circular economy in the construction value chain and is pioneering ways to increase the use of waste and residues as alternative raw materials and fuels in its operations with the use of new technologies. CEMEX offers cement, ready-mix concrete, aggregates, and urbanization solutions in growing markets around the world, powered by a multinational workforce focused on providing a superior customer experience, enabled by digital technologies. For more information, please visit: cemex.com
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CEMEX assumes no obligation to update or correct the information contained in this press release. This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX intends these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. These forward-looking statements reflect CEMEX’s current expectations and projections about future events based on CEMEX’s knowledge of present facts and circumstances and assumptions about future events, as well as CEMEX’s current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CEMEX’s expectations. The content of this press release is for informational purposes only, and you should not construe any such information or other material as legal, tax, investment, financial, or other advice. CEMEX is not responsible for the content of any third-party website or webpage referenced to or accessible through this press release.
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Exhibit 2
First Quarter Results 2022 Zoncuantla Apartments, Veracruz, Mexico Built with Hidratium, part of our Vertua family of sustainable products Stock Listing Information Investor Relations NYSE (ADS) In the United States: Ticker: CX + 1 877 7CX NYSE Mexican Stock Exchange In Mexico: Ticker: CEMEXCPO + 52 (81) 8888 4292 Ratio of CEMEXCPO to CX = 10:1 E-Mail: ir@cemex.com
Operating and financial highlights January - March First Quarter l-t-l l-t-l 2022 2021 % var % var 2022 2021 % var % var Consolidated cement volume 15,776 15,934 (1%) 15,776 15,934 (1%) Consolidated ready-mix volume 12,167 11,527 6% 12,167 11,527 6% Consolidated aggregates volume 33,867 31,643 7% 33,867 31,643 7% Net sales 3,770 3,374 12% 13% 3,770 3,374 12% 13% Gross profit 1,160 1,094 6% 7% 1,160 1,094 6% 7% as % of net sales 30.8% 32.4% (1.6pp) 30.8% 32.4% (1.6pp) Operating earnings before other income and expenses, net 410 397 3% 2% 410 397 3% 2% as % of net sales 10.9% 11.8% (0.9pp) 10.9% 11.8% (0.9pp) SG&A expenses as % of net sales 7.8% 7.9% (0.1pp) 7.8% 7.9% (0.1pp) Controlling interest net income (loss) 198 665 (70%) 198 665 (70%) Operating EBITDA 691 674 3% 3% 691 674 3% 3% as % of net sales 18.3% 20.0% (1.7pp) 18.3% 20.0% (1.7pp) Free cash flow after maintenance -175 1 N/A -175 1 N/A capital expenditures Free cash flow -251 -53 (376%) -251 -53 (376%) Total debt 8,963 10,413 (14%) 8,963 10,413 (14%) Earnings (loss) of continuing operations per ADS 0.13 0.42 (70%) 0.13 0.42 (70%) Fully diluted earnings (loss) of continuing operations per ADS (1) 0.13 0.42 (70%) 0.13 0.42 (70%) Average ADSs outstanding 1,489 1,496 (0%) 1,489 1,496 (0%) Employees 46,535 42,304 10% 46,535 42,304 10% This information does not include discontinued operations. Please see page 13 on this report for additional information. Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters. In millions of U.S. dollars, except volumes, percentages, employees, and per-ADS amounts. Average ADSs outstanding are presented in millions. Please refer to page 13 for end-of quarter CPO-equivalent units outstanding. Consolidated net sales in the first quarter of 2022 reached US$3.8 billion, an increase of 13% on a like-to-like basis for the ongoing operations and for foreign exchange fluctuations, compared to the first quarter of 2021. Double digit increases in cement prices in three of our four regions were the main drivers of our top line growth. Cost of sales, as a percentage of net sales, increased by 1.6pp during the first quarter of 2022 compared to the same period last year, from 67.6% to 69.2%. The increase was mainly driven by higher energy costs, as well as higher freight and imports. Operating expenses, as a percentage of net sales, decreased by 0.8pp during the first quarter of 2022 compared with the same period last year, from 20.7% to 19.9% mainly due to higher sales, and cost containment initiatives. Operating EBITDA in the first quarter of 2022 reached US$691 million, increasing 3% on a like-to-like basis for the ongoing operations and for foreign exchange fluctuations. During the quarter, our EMEA and U.S. regions contributed favorably to EBITDA. Operating EBITDA margin decreased by 1.7pp from 20.0% in the first quarter of 2021 to 18.3% this quarter. Controlling interest net income (loss) resulted in an income of US$198 million in the first quarter of 2022 versus an income of US$665 million in the same quarter of 2021. The lower net income reflects lower operating earnings mainly due to an extraordinary gain on sale of assets of $600 million in the previous year. 2022 First Quarter Results Page 2
Operating results Mexico January - March First Quarter l-t-l l-t-l 2022 2021 % var 2022 2021 % var % var % var Net sales 881 822 7% 5% 881 822 7% 5% Operating EBITDA 286 299 (4%) (6%) 286 299 (4%) (6%) Operating EBITDA margin 32.5% 36.4% (3.9pp) 32.5% 36.4% (3.9pp) In millions of U.S. 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 Volume (8%) (8%) 9% 9% 5% 5% Price (USD) 15% 15% 13% 13% 15% 15% Price (local currency) 13% 13% 11% 11% 13% 13% In Mexico, sales increased 5% during the first quarter of 2022 driven by a successful pricing strategy. In local currency terms, cement prices grew 13%, ready-mix 11%, and aggregates 13%. The January cement price announcement experienced record traction with cement prices increasing 9% sequentially. Cement volumes declined 8% reflecting weaker demand in bagged cement, while the formal sector continues to show improvement. Demand for our products was mainly driven by industrial and commercial, and formal residential activity. The decline in bagged cement resulted from a difficult comparison base. We announced a second price increase in bagged cement effective April 1st, 2022. Our pricing strategy and cost containment initiatives should offset the inflation challenges experienced in the country. United States January - March First Quarter l-t-l l-t-l 2022 2021 % var 2022 2021 % var % var % var Net sales 1,196 1,013 18% 18% 1,196 1,013 18% 18% Operating EBITDA 200 196 2% 2% 200 196 2% 2% Operating EBITDA margin 16.8% 19.4% (2.6pp) 16.8% 19.4% (2.6pp) In millions of U.S. 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 Volume 9% 9% 7% 7% 9% 9% Price (USD) 10% 10% 9% 9% 8% 8% Price (local currency) 10% 10% 9% 9% 8% 8% In the United States, our operations continued to enjoy strong demand across all products in a largely sold-out domestic market. Strong volume performance and improved pricing in our three core products led to solid top-line growth during the quarter. While EBITDA margin declined year over year due to cost headwinds from energy, imports, and logistics, sequential margin improved almost 1 percentage point. We successfully implemented price increases in January in markets accounting for 40% of our US cement volumes, resulting in sequential price increases of between 3% to 4% for our core products in the quarter. In April, our remaining markets received their first pricing increase of the year. 2022 First Quarter Results Page 3
Operating results Europe, Middle East, Africa and Asia January - March First Quarter l-t-l l-t-l 2022 2021 % var 2022 2021 % var % var % var Net sales 1,185 1,086 9% 14% 1,185 1,086 9% 14% Operating EBITDA 145 113 29% 33% 145 113 29% 33% Operating EBITDA margin 12.3% 10.4% 1.9pp 12.3% 10.4% 1.9pp In millions of U.S. 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 Volume 6% 6% 3% 3% 7% 7% Price (USD) 11% 11% 4% 4% 0% 0% Price (local currency) (*) 17% 17% 8% 8% 4% 4% In EMEA, double-digit growth in Sales and EBITDA was driven mainly by solid pricing performance across all products and mid-single digit volume growth. Our EBITDA margin in the region increased 1.9pp year over year. Europe was responsible for much of the improvement with like-to-like prices for our three core products rising between 9% and 13% sequentially, reflecting strong January increases. In April, we implemented price increases in markets representing ~40% of European cement volumes, that did not have a January increase. Cement volumes grew 16%, led by infrastructure and residential activity, and milder winter weather. In the Philippines, cement volumes declined 6% mainly as a result of disruptions caused by Typhoon Odette in December 2021 and COVID-19 lockdown measures. Cement prices improved 3% sequentially, marking four consecutive quarters of growth. In Israel, construction activity continued strong, with ready-mix and aggregates volumes growing, while sequential prices increased between mid to high single digits. In Egypt, EBITDA continued to improve mainly driven by the industry rationalization plan announced by the government last year. (*) Calculated on a volume-weighted-average basis at constant foreign-exchange rates 2022 First Quarter Results Page 4
Operating results South, Central America and the Caribbean January - March First Quarter l-t-l l-t-l 2022 2021 % var 2022 2021 % var % var % var Net sales 416 391 6% 9% 416 391 6% 9% Operating EBITDA 109 113 (3%) (3%) 109 113 (3%) (3%) Operating EBITDA margin 26.3% 28.9% (2.6pp) 26.3% 28.9% (2.6pp) In millions of U.S. 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 Volume (2%) (2%) 9% 9% (0%) (0%) Price (USD) 6% 6% (6%) (6%) (4%) (4%) Price (local currency) (*) 9% 9% (2%) (2%) 0% 0% In our South, Central America and the Caribbean region, our sales increased 9%, primarily driven by strong pricing. With high capacity utilization in most of our countries, regional cement prices were up 9% compared to the dirst quarter of 2021. Starting in April, we announced a second round of price increases in markets that represent 30% of our regional cement volumes. As a result of higher energy costs, EBITDA and EBITDA margin declined 3% and 2.6 percentage points, respectively, during the quarter. In Colombia, cement volumes grew 4% and were supported by housing, self-construction, and infrastructure activity. In the Dominican Republic, cement volumes declined 4% led by a reduction in bagged cement sales. The formal sector, however, continues to recover mainly driven by tourism and formal housing. During April, we reopened a kiln in our plant that is expected to increase our production capacity in the Dominican Republic by a third, underscoring our growth strategy and commitment to the development of the country. (*) Calculated on a volume-weighted-average basis at constant foreign-exchange rates 2022 First Quarter Results Page 5
Operating results Operating EBITDA and free cash flow January - March First Quarter 2022 2021 % var 2022 2021 % var Operating earnings before other income and expenses, net 410 397 3% 410 397 3% + Depreciation and operating amortization 281 277 281 277 Operating EBITDA 691 674 3% 691 674 3% - Net financial expense 128 170 128 170 - Maintenance capital expenditures 182 96 182 96 - Change in working capital 498 346 498 346 - Taxes paid 50 48 50 48 - Other cash items (net) 17 21 17 21 - Free cash flow discontinued operations (9) (7) (9) (7) Free cash flow after maintenance capital expenditures (175) 1 N/A (175) 1 N/A - Strategic capital expenditures 76 53 76 53 Free cash flow (251) (53) (376%) (251) (53) (376%) In millions of U.S. dollars, except percentages. Despite higher EBITDA and lower financial expense, FCF after maintenance capex declined versus the prior year due to higher investment in working capital and maintenance capex. Investment in working capital increased due to higher sales, and higher inventories to support customer demand, as markets continue to face supply chain bottlenecks. Our working capital cycle is seasonal, and investments in the first quarter typically turn around in the beginning of the second half. The increase in maintenance capex relates primarily to the delayed delivery of mobile equipment, originally slated for 2021, mostly due to supply chain disruptions. Information on debt Fourth First Quarter Quarter First Quarter 2022 2021 % var 2021 2022 2021 Total debt (1) 8,963 10,413 (14%) 8,555 Currency denomination Short-term 4% 8% 4% U.S. dollar 85% 66% Long-term 96% 92% 96% Euro 7% 22% Cash and cash equivalents 593 1,309 (55%) 613 Mexican peso 3% 4% Net debt 8,370 9,104 (8%) 7,942 Other 5% 9% Consolidated net debt (2) 8,266 9,583 7,921 Interest rate(3) Consolidated leverage ratio (2) 2.83 3.66 2.73 Fixed 86% 83% Consolidated coverage ratio (2) 6.60 4.10 5.99 Variable 14% 17% In millions of U.S. dollars, except percentages and ratios. (1) Includes leases, in accordance with International Financial Reporting Standards (IFRS). (2) Calculated in accordance with our contractual obligations under the 2021 Credit Agreement. (3) Includes the effect of interest-rate swap instruments related to bank loans to fix floating rates with a nominal amount of US$1,013 million. Net debt increased on a sequential basis primarily due to the negative free cash flow and the share buybacks made during the quarter. This also resulted in a slight increase in our consolidated leverage ratio. We entered 2022 with a very solid financial position, with no substantial refinancing needs for the next three years, a strong liquidity position and minimal exposure to interest rates, as close to 90% of our debt is at a fixed rate. During the quarter, we launched a tender offer to purchase up to $500 million dollars of three of our notes. Through the tender process, which closed on April 27th, 2022, we repurchased approximately $440 million in notes at a discount. This exercise should result in more than $11 million dollars in annual interest expense savings and was be funded through our revolving credit facility at a lower rate than the coupon of the notes. 2022 First Quarter Results Page 6
Operating results Consolidated Statement of Operations & Statement of Financial Position CEMEX, S.A.B. de C.V. and Subsidiaries (Thousands of U.S. dollars, except per ADS amounts) January - March First Quarter like-to-like like-to-like STATEMENT OF OPERATIONS 2022 2021 % var % var 2022 2021 % var % var Net sales 3,769,992 3,374,080 12% 13% 3,769,992 3,374,080 12% 13% Cost of sales (2,610,463) (2,280,048) (14%) (2,610,463) (2,280,048) (14%) Gross profit 1,159,528 1,094,031 6% 7% 1,159,528 1,094,031 6% 7% Operating expenses (749,780) (697,152) (8%) (749,780) (697,152) (8%) Operating earnings before other income and expenses, net 409,748 396,879 3% 2% 409,748 396,879 3% 2% Other expenses, net (21,167) 572,138 N/A (21,167) 572,138 N/A Operating earnings 388,581 969,017 (60%) 388,581 969,017 (60%) Financial expense (119,438) (244,440) 51% (119,438) (244,440) 51% Other financial income (expense), net (23,935) (19,383) (23%) (23,935) (19,383) (23%) Financial income 3,896 3,197 22% 3,896 3,197 22% Results from financial instruments, net (2,074) (98) (2020%) (2,074) (98) (2020%) Foreign exchange results (10,405) (6,384) (63%) (10,405) (6,384) (63%) Effects of net present value on assets and liabilities and others, net (15,352) (16,098) 5% (15,352) (16,098) 5% Equity in gain (loss) of associates 5,401 3,345 61% 5,401 3,345 61% Income (loss) before income tax 250,609 708,540 (65%) 250,609 708,540 (65%) Income tax (52,140) (72,859) 28% (52,140) (72,859) 28% Profit (loss) of continuing operations 198,469 635,681 (69%) 198,469 635,681 (69%) Discontinued operations 9,345 36,658 (75%) 9,345 36,658 (75%) Consolidated net income (loss) 207,814 672,339 (69%) 207,814 672,339 (69%) Non-controlling interest net income (loss) 9,729 7,805 25% 9,729 7,805 25% Controlling interest net income (loss) 198,084 664,533 (70%) 198,084 664,533 (70%) Operating EBITDA 690,763 673,812 3% 3% 690,763 673,812 3% 3% Earnings (loss) of continued operations per ADS 0.13 0.42 (70%) 0.13 0.42 (70%) Earnings (loss) of discontinued operations per ADS 0.01 0.02 (74%) 0.01 0.02 (74%) As of March 31 STATEMENT OF FINANCIAL POSITION 2022 2021 % var Total assets 27,176,873 27,562,367 (1%) Cash and cash equivalents 592,863 1,308,733 (55%) Trade receivables less allowance for doubtful accounts 1,793,924 1,631,961 10% Other accounts receivable 580,605 406,358 43% Inventories, net 1,393,335 1,073,814 30% Assets held for sale 146,674 155,764 (6%) Other current assets 139,446 131,157 6% Current assets 4,646,847 4,707,787 (1%) Property, machinery and equipment, net 11,354,360 11,160,912 2% Other assets 11,175,666 11,693,668 (4%) Total liabilities 16,660,504 17,987,728 (7%) Current liabilities 5,393,802 5,417,872 (0%) Long-term liabilities 7,669,721 8,693,079 (12%) Other liabilities 3,596,982 3,876,777 (7%) Total stockholder’s equity 10,516,369 9,574,639 10% Common stock and additional paid-in capital 7,810,104 7,893,304 (1%) Other equity reserves and subordinated notes (1,335,850) (2,506,717) 47% Retained earnings 3,585,508 3,298,843 9% Non-controlling interest and perpetual instruments 456,607 889,209 (49%) 2022 First Quarter Results Page 7
Operating results Operating Summary per Country In thousands of U.S. dollars January - March First Quarter like-to-like like-to-like NET SALES 2022 2021 % var % var 2022 2021 % var % var Mexico 880,700 821,642 7% 5% 880,700 821,642 7% 5% U.S.A. 1,196,130 1,013,157 18% 18% 1,196,130 1,013,157 18% 18% Europe, Middle East, Asia and Africa 1,185,165 1,085,659 9% 14% 1,185,165 1,085,659 9% 14% Europe 791,048 717,551 10% 17% 791,048 717,551 10% 17% Philippines 102,038 107,466 (5%) 1% 102,038 107,466 (5%) 1% Middle East and Africa 292,079 260,642 12% 11% 292,079 260,642 12% 11% South, Central America and the Caribbean 416,109 391,029 6% 9% 416,109 391,029 6% 9% Others and intercompany eliminations 91,887 62,592 47% 50% 91,887 62,592 47% 50% TOTAL 3,769,992 3,374,080 12% 13% 3,769,992 3,374,080 12% 13% GROSS PROFIT Mexico 415,955 427,330 (3%) (4%) 415,955 427,330 (3%) (4%) U.S.A. 297,313 266,151 12% 12% 297,313 266,151 12% 12% Europe, Middle East, Asia and Africa 270,427 235,874 15% 20% 270,427 235,874 15% 20% Europe 172,712 146,065 18% 25% 172,712 146,065 18% 25% Philippines 38,803 42,493 (9%) (3%) 38,803 42,493 (9%) (3%) Middle East and Africa 58,912 47,317 25% 25% 58,912 47,317 25% 25% South, Central America and the Caribbean 152,481 150,174 2% 2% 152,481 150,174 2% 2% Others and intercompany eliminations 23,352 14,502 61% 61% 23,352 14,502 61% 61% TOTAL 1,159,528 1,094,031 6% 7% 1,159,528 1,094,031 6% 7% OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Mexico 246,457 260,021 (5%) (7%) 246,457 260,021 (5%) (7%) U.S.A. 81,719 87,240 (6%) (6%) 81,719 87,240 (6%) (6%) Europe, Middle East, Asia and Africa 62,737 30,465 106% 110% 62,737 30,465 106% 110% Europe 16,626 (4,852) N/A N/A 16,626 (4,852) N/A N/A Philippines 19,136 18,956 1% 5% 19,136 18,956 1% 5% Middle East and Africa 26,975 16,361 65% 67% 26,975 16,361 65% 67% South, Central America and the Caribbean 88,578 91,735 (3%) (4%) 88,578 91,735 (3%) (4%) Others and intercompany eliminations (69,742) (72,581) 4% 5% (69,742) (72,581) 4% 5% TOTAL 409,748 396,879 3% 2% 409,748 396,879 3% 2% 2022 First Quarter Results Page 8
Operating results
2022 First Quarter Results Page
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Operating Summary per Country
EBITDA in thousands of U.S. dollars. EBITDA
margin as a percentage of Net Sales.
January—March First Quarter
like-to-likelike-to-like
OPERATING EBITDA 2022 2021% var % var 20222021% var % var
Mexico 285,938 298,743(4%)(6%)285,938298,743(4%)(6%)
U.S.A. 200,426 196,4642%2%200,426196,4642%2%
Europe,
Middle East, Asia and Africa 145,378 112,60329%33%145,378112,60329%33%
Europe 69,470 52,94031%37%69,47052,94031%37%
Philippines 28,910 30,386(5%)(0%)28,91030,386(5%)(0%)
Middle East and Africa 46,999 29,27761%61%46,99929,27761%61%
South, Central America and the Caribbean 109,255 112,872(3%)(3%)109,255112,872(3%)(3%)
Others and intercompany eliminations (50,234) (46,869)(7%)(6%)(50,234)(46,869)(7%)(6%)
TOTAL 690,763 673,8123%3%690,763673,8123%3%
OPERATING EBITDA
MARGIN
Mexico 32.5% 36.4%32.5%36.4%
U.S.A. 16.8% 19.4%16.8%19.4%
Europe, Middle East, Asia and
Africa 12.3% 10.4%12.3%10.4%
Europe 8.8% 7.4%8.8%7.4%
Philippines 28.3% 28.3%28.3%28.3%
Middle East and
Africa 16.1% 11.2%16.1%11.2%
South, Central America and the Caribbean 26.3% 28.9%26.3%28.9%
TOTAL 18.3% 20.0%18.3%20.0%
Volume Summary
Cement and aggregates: Thousands of
metric tons. Ready-mix: Thousands of cubic meters.
January—March First Quarter
2022 2021 % var 20222021% var
Consolidated cement volume
(1) 15,776 15,934(1%)15,77615,934(1%)
Consolidated ready-mix volume 12,167
11,5276%12,16711,5276%
Consolidated aggregates volume (2) 33,867 31,6437%33,86731,6437%
Per-country volume summary
January—March First Quarter First Quarter 2022 vs.
DOMESTIC GRAY CEMENT VOLUME 2022 vs. 2021 2022 vs. 2021Fourth Quarter 2021
Mexico (8%) (8%)(11%)
U.S.A. 9% 9%6%
Europe, Middle East, Asia and Africa 6% 6%(1%)
Europe 16% 16%(12%)
Philippines (6%) (6%)10%
Middle East and
Africa (1%) (1%)19%
South, Central America and the Caribbean (2%) (2%)(1%)
READY-MIX VOLUME
Mexico 9% 9%(5%)
U.S.A. 7% 7%4%
Europe, Middle East, Asia and Africa 3% 3%(7%)
Europe 8% 8%(7%)
Philippines N/A N/A N/A
Middle East and
Africa (4%) (4%)(8%)
South, Central America and the Caribbean 9% 9%0%
AGGREGATES VOLUME
Mexico 5% 5%(10%)
U.S.A. 9% 9%8%
Europe, Middle East, Asia and
Africa 7% 7%(8%)
Europe 5% 5%(8%)
Philippines N/A N/A N/A
Middle East and
Africa 11% 11%(6%)
South, Central America and the Caribbean (0%) (0%)(3%)
Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar, and clinker.
Consolidated aggregates volumes include aggregates from our marine business in UK.
Price Summary
Variation in U.S. dollars
January—March First Quarter First Quarter 2022 vs.
DOMESTIC GRAY CEMENT PRICE 2022 vs. 2021 2022 vs. 2021Fourth Quarter 2021
Mexico 15% 15%12%
U.S.A. 10% 10%4%
Europe, Middle East, Asia and Africa (*) 11% 11%5%
Europe
(*) 8% 8%10%
Philippines 1% 1%2%
Middle East and Africa (*) 34% 34%4%
South, Central
America and the Caribbean (*) 6% 6%8%
READY-MIX PRICE
Mexico 13% 13%8%
U.S.A. 9% 9%4%
Europe, Middle East, Asia and Africa (*) 4% 4%5%
Europe
(*) (0%) (0%)7%
Philippines N/A N/A N/A
Middle East and Africa (*) 12% 12%3%
South, Central America and the
Caribbean (*) (6%) (6%)1%
AGGREGATES PRICE
Mexico 15% 15%9%
U.S.A. 8% 8%3%
Europe, Middle East, Asia and Africa (*) 0% 0%8%
Europe
(*) (2%) (2%)9%
Philippines N/A N/A N/A
Middle East and Africa (*) 10% 10%5%
South, Central America and the
Caribbean (*) (4%) (4%)1%
(*) Price variation in U.S. dollars calculated on a volume-weighted-average basis; price variation in local
currency calculated on a volume-weighted-average basis at constant foreign-exchange rates
Variation in Local Currency
January—March First Quarter First Quarter 2022 vs. DOMESTIC GRAY CEMENT PRICE 2022 vs. 2021 2022 vs. 2021 Fourth Quarter 2021
Mexico 13% 13% 9% U.S.A. 10% 10% 4% Europe, Middle East, Asia and Africa (*) 17% 17% 8% Europe (*) 15% 15% 13% Philippines 7% 7% 3% Middle East and Africa (*) 41% 41% 9% South, Central America and the
Caribbean (*) 9% 9% 7%
READY-MIX PRICE
Mexico 11% 11% 5% U.S.A. 9% 9% 4% Europe, Middle East, Asia and Africa (*) 8% 8% 8% Europe (*) 6% 6% 9% Philippines N/A N/A N/A
Middle East and Africa (*) 9% 9% 5% South, Central America and the Caribbean (*) (2%) (2%) (0%)
AGGREGATES PRICE
Mexico
13% 13% 6% U.S.A. 8% 8% 3% Europe, Middle East, Asia and Africa (*) 4% 4% 11% Europe (*) 3% 3% 12% Philippines N/A N/A N/A
Middle East and Africa (*) 7% 7% 7% South, Central America and the Caribbean (*) 0% 0% (1%) (*) Price variation in U.S. dollars
calculated on a volume-weighted-average basis; price variation in local currency calculated on a volume-weighted-average basis at constant foreign-exchange rates
Other information
Operating Expenses Derivative
instruments
The following table shows the breakdown of operating expenses for the The following table shows the aggregate notional amount for each type of period
presented. CEMEX’s derivative derivative instrument instruments and the as of the fair last market day of value each for quarter all of
January—March
First Quarter presented.
In thousands of US dollars 2022 2021 2022 2021 First Quarter Fourth Quarter Administrative expenses 219,824 199,695 219,824 199,695 2022
2021 2021 Selling expenses 72,635 66,868 72,635 66,868 Notional Fair Notional Fair Notional Fair Distribution and logistic In millions of US dollars 411,456 378,761 411,456 378,761 amount value amount value amount value expenses Operating expenses
before Exchange rate 1,842 1 1,028 (11) 1,761 9 703,916 645,323 703,916 645,323 (1) depreciation derivatives Depreciation in operating 45,864 51,829 45,864 51,829 Interest rate 1,313 31 1,325 (41) 1,005 (18) expenses (2) Operating expenses
749,780 697,152 749,780 697,152 swaps Fuel 117 68 108 24 145 30 derivatives (3) As % of Net Sales 3,272 100 2,461 (28) 2,911 21 Administrative expenses 5.8% 5.9% 5.8% 5.9%
SG&A expenses 7.8% 7.9% 7.8% 7.9% (1) Exchange rate derivatives to manage currency exposures arising from regular operations, net investment hedge and forecasted transactions.
As of March 31, 2022, it includes a notional of US$1,542 million of net investment hedge.
Equity-related information Interest-rate swap derivatives to
bank loans. In
(2) related addition, as of One CEMEX ADS represents ten CEMEX CPOs. One CEMEX CPO March 31, 2022, it includes a forward interest rate swap
derivative related represents two Series A shares and one Series B share. The following to the exposure to changes in interest rates. The forward interest rate amounts are expressed in CPO-equivalent terms.
swap is recognized as a cash flow hedge for forecasted transaction for a nominal amount of US$300 million.
(3) Forward contracts negotiated to hedge the price
of the fuel for own
Beginning-of-quarter outstanding
CPO-equivalents 14,708,429,449 consumption only in certain operations.
Shares repurchase program 220,642,478 Under IFRS,
companies are required to recognize all derivative End-of-quarter outstanding CPO-equivalents 14,487,786,971 their financial
estimated instruments fair market on the value, balance with sheet changes as assets in such or liabilities, fair market at For purposes of this report, outstanding
CPO-equivalents equal the values recorded in the income statement, except when transactions are entered into for cash-flow-hedging purposes. In such cases, held total in number CPO form of Series less CPOs A
and held B shares in subsidiaries, outstanding which as as if they of March were 31, all changes in the fair market value of the related derivative instruments are recognized temporarily in equity and then reclassified into 2022 were 20,541,277.
earnings as the inverse effects of the underlying hedged items flow through the income statement. Moreover, in transactions related to net investment hedges, changes in fair value are recorded directly in equity to the income as part statement of
the currency only upon translation disposal effect. of the They net are investment. reclassified As market of March value 31, recognition, 2022, in connection CEMEX recognized with its derivatives increases in portfolio’s its assets and fair
liabilities, resulting in a net asset of US$100 million.
Assets held for sale and discontinued operations Other significant transactions Cementos On December Progreso 29, 2021, Holdings, CEMEX S.L. signed for the agreements sale of its operations with affiliates in Costa of As allowances previously in the reported, European in Union connection (the “Allowances”) with the CO2 under emission the EU to Rica final and adjustments. El Salvador, The for a assets total for consideration divestment of consist $335 million of one cement subject Emissions 2021, in different Trading transactions, System (“EU CEMEX ETS”), during sold 12.3 the million second Allowances half of March for plant, quarry, one as grinding well as station, one distribution seven ready-mix center in plants, Costa one Rica aggregates and one approximately was recognized € in 509 the million three-month (approximately period ended US$600 March million) 31, . This 2021, sale as distribution satisfaction of center closing in El conditions Salvador. in The Costa transaction Rica and isEl subject Salvador, to part of the line item “Other expenses, net”. including expects to approvals finalize this by transaction competition during authorities, the first half CEMEX of 2022. currently As of Issuance of Subordinated Notes without Fixed Maturity March 31, 2022, and December 31, 2021, the assets and liabilities On of US$ June 1.0 8, 2021, billion CEMEX, of its S. 5.125% A.B. de Subordinated C.V. successfully Notes closed with the no issuance Fixed associated with these operations were presented in the Statement of Financial Position within the line items of “Assets held for sale and Maturity the Subordinated (the “Subordinated Notes to redeem Notes”) in . full CEMEX in June used 2021 the all proceeds outstanding from liabilities directly related to assets held for sale”, as correspond. CEMEX’s operations of these assets for the three-month periods ended special series of purpose perpetual vehicles debentures for an aggregate previously amount issued of by approximately consolidated March 31, 2022, and 2021 are reported in the income statements, net of income tax, in the single line item “Discontinued operations.” repayment US$447 million of and other for indebtedness. other general corporate The perpetual purposes, debentures including were the On July 9, 2021, CEMEX concluded the sale of its white cement business accounted as part of CEMEX’s non-controlling interest in equity. to Çimsa Çimento Sanayi Ve Ticaret A.Ş. agreed in March 2019 for a price of approximately US$155 million. Assets sold included CEMEX’s Considering including that the they overall do not characteristics have contractual of repayment the Subordinated date and do Notes, not Buñol cement plant in Spain and its white cement business outside Mexico and the United States. CEMEX’s operations of these assets for meet for its the Subordinated definition of Notes a financial as equity liability instruments under IFRS, in the CEMEX line item accounts “Other the three-month period ended March 31, 2021, are reported in the income statements, net of income tax, in the single line item equity September reserves 30, and 2021, subordinated such line item notes includes without the fixed proceeds maturity. from ” As the of “Discontinued operations.” issuance US$994 million. of Subordinated Notes net of issuance costs for a total of quarry On March in 31, France 2021, to CEMEX LafargeHolcim sold 24 concrete for approximately plants and one US$ aggregates 44 million. These assets were located in the Rhone Alpes region in the Southeast intangible Impairment assets of property, in 3Q21 plant and equipment, goodwill and other retained. of France, CEMEX’s east of operations CEMEX´s Lyon of these operations, assets for which the the three-month company period ended March 31, 2021, are reported in the income statements, freight During the and third supply quarter chain of 2021, disruptions rising input led cost to inflation a confirmation and higher of net of income tax, in the single line item “Discontinued operations.” impairment other businesses. indicators As a in result, Spain, we the recognized United Arab a Emirates non-cash (“UAE”) aggregate and The following table presents condensed combined information of the income statements of CEMEX’s discontinued operations, previously goodwill comprised impairment of, approximately, charge US$ of317 approximately million related US$ to our 440 business million mentioned, in: a) Costa Rica and El Salvador for the three-month periods ended March 31, 2022 and 2021; b) Spain related to the white in related Spain, to US$ our 96 IT million business related segment to our business due to in a UAE, reorganization. and $27 million The cement business for the three-month period ended March 31, 2021; and c) the southeast of France for the three-month period ended March excess impairment of the of net goodwill book value in Spain of such and businesses the UAE in 2021 versus resulted the discounted from an 31, 2021: reporting cash flow segments. projections as of September 30, 2021, related to these STATEMENT OF OPERATIONS Jan-Mar First Quarter (Millions of U.S. dollars) 2022 2021 2022 2021 In addition, during the third quarter of 2021 we recognized non-cash Sales 35 60 35 60 impairment of certain internal charges use of software intangible of assets US$49 due million. to a technological revamp Cost of sales, operating expenses, and other expenses -30 -53 -30 -53 These non-cash charges recognized during the third quarter of 2021 Interest expense, net, and did not impact our liquidity, Operating EBITDA and cash taxes payable, others 9—9—nevertheless affected in each our quarter. total assets, net income (loss) and equity were Income before income tax 14 7 14 7 Income tax -4 -2 -4 -2 Income from discontinued operations 10 5 10 5 Net gain on sale -1 32 -1 32 Income from discontinued operations 9 37 9 37
Methodology for translation, consolidation, and presentation of Net debt equals total debt (debt plus convertible bonds and financial results leases) minus cash and cash equivalents. Operating EBITDA equals operating earnings before other income and Under IFRS, CEMEX translates the financial statements of foreign expenses, net, plus depreciation and operating amortization. subsidiaries using exchange rates at the reporting date for the balance pp equals percentage points sheet and the exchange rates at the end of each month for the income Prices all references to pricing initiatives, price increases or decreases, statement. Beginning on March 31, 2019 and for each subsequent refer to our prices for our products period CEMEX reports its consolidated results in U.S. dollars. SG&A expenses equal selling and administrative expenses Strategic capital expenditures equal investments incurred with the Breakdown of regions and subregions purpose of increasing the company’s profitability. These include The South, Central America and the Caribbean region includes capital expenditures on projects designed to increase profitability by CEMEX’s operations in Bahamas, Colombia, the Dominican Republic, expanding capacity, and margin improvement capital expenditures, Guatemala, Guyana, Haiti, Jamaica, Trinidad & Tobago, Barbados, which are projects designed to increase profitability by reducing costs. Nicaragua, Panama, Peru, and Puerto Rico, as well as trading Working capital equals operating accounts receivable (including other operations in the Caribbean region. current assets received as payment in kind) plus historical inventories The EMEA region includes Europe, Middle East, Asia, and Africa. Asia minus operating payables. subregion includes our Philippines operations. % var percentage variation Europe subregion includes operations in Spain, Croatia, the Czech Republic, France, Germany, Poland, and the United Kingdom. Earnings per ADS Middle East and Africa subregion include the United Arab Emirates, Please refer to page 2 for the number of average ADSs outstanding used Egypt, and Israel. for the calculation of earnings per ADS. According to the IAS 33 Earnings per share, the weighted-average Definition of terms number of common shares outstanding is determined considering the Free cash flow equals operating EBITDA minus net interest expense, number of days during the accounting period in which the shares have maintenance, and strategic capital expenditures, change in working been outstanding, including shares derived from corporate events that capital, taxes paid, and other cash items (net other expenses less have modified the stockholder’s equity structure during the period, such proceeds from the disposal of obsolete and/or substantially depleted as increases in the number of shares by a public offering and the operating fixed assets that are no longer in operation and coupon distribution of shares from stock dividends or recapitalizations of retained payments on our perpetual notes). earnings and the potential diluted shares (Stock options, Restricted Stock l-t-l (like to like) on a like-to-like basis adjusting for currency Options and Mandatory Convertible Shares). The shares issued because of fluctuations and for investments/divestments when applicable. share dividends, recapitalizations and potential diluted shares are Maintenance capital expenditures equal investments incurred for the considered as issued at the beginning of the period. 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. Exchange rates January—March First Quarter First Quarter 2022 2021 2022 2021 2022 2021 Average Average Average Average End of period End of period Mexican peso 20.32 20.63 20.32 20.63 19.88 20.43 Euro 0.8959 0.833 0.8959 0.833 0.9038 0.8525 British pound 0.7509 0.7226 0.7509 0.7226 0.7610 0.7256 Amounts provided in units of local currency per U.S. dollar.
Disclaimer
Except as the context otherwise may
require, references in this report to “CEMEX,” “we,” “us” or “our” refer to CEMEX, S.A.B. de C.V. and its consolidated entities. The information contained in this report contains forward-looking statements
within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of the U.S. federal securities laws. These
forward-looking statements and information are necessarily subject to risks, uncertainties, and assumptions, including but not limited to statements related CEMEX’s plans, objectives, expectations (financial or otherwise), and typically can be
identified by the use of words such as “will”, “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,”
“anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,”
“intend,” “aimed”, and similar terms. Although CEMEX believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially from historical
results or results anticipated by forward-looking statements due to various factors. These forward-looking statements reflect, as of the date on which such forward-looking statements are made, our current expectations and projections about future
events based on our knowledge of present facts and circumstances and assumptions about future events, unless otherwise indicated. These statements necessarily involve risks, uncertainties and assumptions that could cause actual results to differ
materially from historical results or those anticipated in this report. Among others, such risks, uncertainties, and assumptions include those discussed in CEMEX’s most recent annual report and those detailed from time to time in CEMEX’s
other filings with the Securities and Exchange Commission, which factors are incorporated herein by reference, including, but not limited to: impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and
other third parties, including with respect to the novel strain of the coronavirus identified in China in late 2019 and its variants (“COVID-19”), which have affected and may continue to adversely
affect, among other matters, the ability of our operating facilities to operate at full or any capacity, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as the availability of,
and demand for, our products and services; the cyclical activity of the construction sector; our exposure to other sectors that impact our and our clients’ businesses, such as, but not limited to, the energy sector; availability of raw
materials and related fluctuating prices; volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or
divested businesses; our ability to secure and permit aggregates reserves in strategically located areas; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and
private nonresidential construction; changes in our effective tax rate; competition in the markets in which we offer our products and services; general political, social, health, economic and business conditions in the markets in which we operate or
that affect our operations and any significant economic, health, political or social developments in those markets, as well as any inherent risks to international operations; the regulatory environment, including environmental, energy, tax, labor,
antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt agreements, the indentures that govern our outstanding notes, and other debt instruments and financial obligations, including
our subordinated notes with no fixed maturity and other financial obligations; the availability of short-term credit lines or working capital facilities, which can assist us in connection with market cycles; the impact of our below investment grade
debt rating on our cost of capital and on the cost of the products and services we purchase; loss of reputation of our brands; our ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from our
cost-reduction initiatives, implement our pricing initiatives for our products and generally meet our “Operation Resilience” strategy’s goals; the increasing reliance on information technology infrastructure for our sales, invoicing,
procurement, financial statements and other processes that can adversely affect our sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; changes in
the economy that affect the demand for consumer goods, consequently affecting demand for our products and services; weather conditions, including but not limited to, excessive rain and snow, and disasters such as earthquakes and floods; trade
barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements, including the United States-Mexico-Canada Agreement (“USMCA”), which was signed on
November 30, 2019 and entered into force on July 1, 2020, superseding the North American Free Trade Agreement (“NAFTA”); availability and cost of trucks, railcars, barges and ships, as well as their licensed operators, for
transport of our materials; labor shortages and constraints; terrorist and organized criminal activities as well as geopolitical events, such as war and armed conflicts, including the current war between Russia and Ukraine; declarations of
insolvency or bankruptcy, or becoming subject to similar proceedings; and, natural disasters and other unforeseen events (including global health hazards such as COVID-19). Should one or more of these risks or
uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from historical results, performance or achievements and/or results, performance or achievements expressly or implicitly anticipated by
the forward-looking statements, or otherwise could have an impact on us or our consolidated entities. Any or all of CEMEX’s forward-looking statements may turn out to be inaccurate and the factors identified above are not exhaustive.
Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. These factors may be revised or supplemented, but CEMEX is not under, and expressly
disclaims, any obligation to update or correct the information contained in this report or any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise. Readers should review
future reports filed by us with the U.S. Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores). This report also includes statistical data regarding the production, distribution, marketing and sale of cement,
ready mix concrete, clinker, aggregates and Urbanization Solutions. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. We generated
some of this data internally, and some was obtained from independent industry publications and reports that we believe to be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their
reports in this report. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries 2022 First Quarter
Results Page 16
Exhibit 3 First Quarter 2022 Results Mexican Professional Baseball Hall of Fame, Monterrey, Mexico Built with Pisocret, part of our Vertua family of sustainable products
Except as the context otherwise may require, references in this presentation to “CEMEX,” “we,” “us” or “our” refer to CEMEX, S.A.B. de C.V. and its consolidated entities. The information contained in this presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of the U.S. federal securities laws. These forward-looking statements and information are necessarily subject to risks, uncertainties, and assumptions, including but not limited to statements related CEMEX’s plans, objectives, expectations (financial or otherwise), and typically can be identified by the use of words such as “will”, “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential,” “target,” “strategy,” “intend,” “aimed” and similar terms. Although CEMEX believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially from historical results or results anticipated by forward-looking statements due to various factors. These forward-looking statements reflect, as of the date on which such forward-looking statements are made, our current expectations and projections about future events based on our knowledge of present facts and circumstances and assumptions about future events, unless otherwise indicated. These statements necessarily involve risks, uncertainties and assumptions that could cause actual results to differ materially from historical results or those anticipated in this presentation. Among others, such risks, uncertainties, and assumptions include those discussed in CEMEX's most recent annual report and those detailed from time to time in CEMEX’s other filings with the Securities and Exchange Commission, which factors are incorporated herein by reference, including, but not limited to: impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to the novel strain of the coronavirus identified in China in late 2019 and its variants (“COVID-19”), which have affected and may continue to adversely affect, among other matters, the ability of our operating facilities to operate at full or any capacity, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as the availability of, and demand for, our products and services; the cyclical activity of the construction sector; our exposure to other sectors that impact our and our clients’ businesses, such as, but not limited to, the energy sector; availability of raw materials and related fluctuating prices; volatility in pension plan asset values and liabilities, which may require cash contributions to the pension plans; the impact of environmental cleanup costs and other liabilities relating to existing and/or divested businesses; our ability to secure and permit aggregates reserves in strategically located areas; the timing and amount of federal, state and local funding for infrastructure; changes in the level of spending for private residential and private nonresidential construction; changes in our effective tax rate; competition in the markets in which we offer our products and services; general political, social, health, economic and business conditions in the markets in which we operate or that affect our operations and any significant economic, health, political or social developments in those markets, as well as any inherent risks to international operations; the regulatory environment, including environmental, energy, tax, labor, antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt agreements, the indentures that govern our outstanding notes, and other debt instruments and financial obligations, including our subordinated notes with no fixed maturity and other financial obligations; the availability of short-term credit lines or working capital facilities, which can assist us in connection with market cycles; the impact of our below investment grade debt rating on our cost of capital and on the cost of the products and services we purchase; loss of reputation of our brands; our ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from our cost-reduction initiatives, implement our pricing initiatives for our products and generally meet our “Operation Resilience” strategy’s goals; the increasing reliance on information technology infrastructure for our sales, invoicing, procurement, financial statements and other processes that can adversely affect our sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber- attacks; changes in the economy that affect demand for consumer goods, consequently affecting the demand for our products and services; weather conditions, including but not limited to, excessive rain and snow, and disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements, including the United States-Mexico-Canada Agreement (“USMCA”), which was signed on November 30, 2019 and entered into force on July 1, 2020, superseding the North American Free Trade Agreement (“NAFTA”); availability and cost of trucks, railcars, barges and ships, as well as their licensed operators, for transport of our materials; labor shortages and constraints; terrorist and organized criminal activities as well as geopolitical events, such as war and armed conflicts, including the current war between Russia and Ukraine; declarations of insolvency or bankruptcy, or becoming subject to similar proceedings; and, natural disasters and other unforeseen events (including global health hazards such as COVID-19). Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from historical results, performance or achievements and/or results, performance or achievements expressly or implicitly anticipated by the forward-looking statements, or otherwise could have an impact on us or our consolidated entities. Any or all of CEMEX’s forward-looking statements may turn out to be inaccurate and the factors identified above are not exhaustive. Accordingly, undue reliance on forward-looking statements should not be placed, as such forward-looking statements speak only as of the dates on which they are made. These factors may be revised or supplemented, but CEMEX is not under, and expressly disclaims, any obligation to update or correct the information contained in this presentation or any forward-looking statement that it may make from time to time, whether as a result of new information, future events or otherwise. Readers should review future reports filed by us with the U.S. Securities and Exchange Commission and the Mexican Stock Exchange (Bolsa Mexicana de Valores). This presentation also includes statistical data regarding the production, distribution, marketing and sale of cement, ready mix concrete, clinker, aggregates and Urbanization Solutions. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. We generated some of this data internally, and some was obtained from independent industry publications and reports that we believe to be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their reports in this presentation. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
Key achievements in • Double digit growth in Sales with all regions 1st Quarter 2022 contributing • Expanding EBITDA led by 33% growth in EMEA • Consolidated cement prices growing double-digit • Strong underlying demand conditions with robust volume growth in US and Europe • Urbanization Solutions Sales and EBITDA growing 11% and 10%, respectively • Continued rollout of our growth investments • Repurchased ~1.5% of shares in quarter The Reflection Space, Monterrey, Mexico • Reduction of 4% in CO emissions vs 1Q21 2 3 Built with Evolution, part of our Vertua family of sustainable products
Future in Action yielding significant results Vertua family of 4% CO reduction, 2 sustainable products with 7 plants below 2030 target • Sales of Vertua cement and concrete volumes doubled in 1Q22 • Alternative fuels increased 7.3pp to new high of 33.3% • Represents >30% of cement and ready-mix volumes sold • Reduced clinker factor by 1.6pp to 74.5% • Goal of 50% of cement and ready-mix sales by 2025 • 6 out of 8 plants in the US producing limestone cement th Unlocking opportunities 6 Integrated through innovation Annual Report • Participating in 7 CCUS industrial pilots • Successfully converted 50% of the CO directly from the flue 2 gases of our kilns, into carbon nanomaterials • Material progress in Climate Action • Established new consortium for Rüdersdorf Carbon • Introduced significant corporate governance changes Neutral Alliance to convert CO into jet fuel 2 • Available at cemex.com CCUS: Carbon Capture, Utilization and Storage 4
Sales and EBITDA growth driven by pricing EBITDA FCF after Net Sales EBITDA Margin maint. Capex -1.7pp +12% +3% 3,770 691 20.0% 18.3% 1 3,374 674 -175 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 1Q21 1Q22 Sales growth in all four regions Double-digit EBITDA growth in EMEA Heart of Stone, Merida, Mexico Built with Evolution, part of our Vertua family of sustainable products 5
Robust volume performance in Europe and US CONSOLIDATED VOLUMES (l-t-l) 1Q22 YoY volume variation 7% 6% 7% 6% 16% 3% 1% 9% 9% 8% EMEA 7% 5% EUROPE USA 9% 5% MEX -8% 1 Cement 9% Ready mix Aggregates SCAC 0% -2% 6 1) Grey domestic cement
Against unprecedented inflation, we achieved high single digit and double-digit growth in consolidated pricing CONSOLIDATED PRICES 1Q22 YoY and QoQ price variation (l-t-l) 12% 17% 10% 9% 15% 8% 8% 7% 8% EMEA 4% 6% USA EUROPE 3% 8% 8% 11% QoQ: 4% 4% 3% 13% 13% 13% 9% 12% 11% 6% 8% 7% MEX Sequential (4Q21 to 1Q22) 9% 5% 6% 9% 1 Cement Ready mix SCAC 0% Aggregates -2% 7% -0% -1% 1) Grey domestic cement 7 Note: For CEMEX, SCAC, Europe and EMEA, prices (l-t-l) are calculated on a volume-weighted average basis at constant foreign-exchange rates
Strong consolidated pricing gain covering variable plus import cost increase 1Q22 EBITDA variation +3% +3% -233 305 -32 -56 691 691 5 674 0 28 1Q21 Volume Urb. Solutions Price Variable costs Cement & Fixed costs 1Q22 l-t-l FX 1Q22 reported & freight Clinker imports & others EBITDA -1.7pp 20.0% 18.3% margin 8
Aiming to recover EBITDA margins EBITDA margin evolution 22.0% 21.0% 20.0% 19.0% 18.0% 17.0% 1Q21 2Q21 3Q21 4Q21 1Q22 9
Regional Highlights Zoncuantla Apartments, Coatepec, Mexico Built with Hidratium, part of our Vertua family of sustainable products
US: Strong volume and price performance with sequential margin improvement YTD 1Q22 1Q22 Net Sales 1,196 1,196 % var (l-t-l) 18% 18% Operating EBITDA 200 200 % var (l-t-l) 2% 2% Operating EBITDA margin 16.8% 16.8% pp var (2.6pp) (2.6pp) • Growth in Sales reflecting double-digit cement pricing and high single-digit volumes • Volume growth attributable to industrial and residential segments • Sequential cement prices up 4%, reflecting price increases in markets representing 40% of volumes • Remaining markets repriced in April and subsequent pricing increases for summer months have been announced • Sequential margin improvement of 0.9pp Chase Center, California, United States Built with CEMSlag, part of our Vertua family of sustainable products 11 Millions of U.S. dollars
Mexico: Successful pricing strategy driving 5% top-line growth YTD 1Q22 1Q22 Net Sales 881 881 % var (l-t-l) 5% 5% Operating EBITDA 286 286 % var (l-t-l) (6%) (6%) Operating EBITDA margin 32.5% 32.5% pp var (3.9pp) (3.9pp) • Formal activity accelerating in industrial and formal housing sector demand • Record traction of January price announcement • EBITDA negatively impacted by higher energy costs and product mix effect • Sequential margin improvement of 3.5pp st • April 1 price increase for bagged cement announced to offset rising energy cost inflation and showing similar traction The Reflection Space, Monterrey, Mexico Built with Evolution, part of our Vertua family of sustainable products 12 Millions of U.S. dollars
EMEA: EBITDA grew 33% with a ~2pp increase in margin, despite significant volatility YTD 1Q22 1Q22 Net Sales 1,185 1,185 % var (l-t-l) 14% 14% Operating EBITDA 145 145 % var (l-t-l) 33% 33% Operating EBITDA margin 12.3% 12.3% pp var 1.9pp 1.9pp • Double-digit top line growth driven by prices and volumes • Solid pricing performance across all products • Prices for our three core products in Europe increasing between 9% and 13% sequentially • Resilient European operations relatively insulated against recent volatility • Strong construction activity in Israel, coupled with continued improvement in Egypt’s EBITDA Duo Towers, Paris, France Built with Vertua Concrete, part of our Vertua family of sustainable products 13 Picture by Jad Sylla Photography Millions of U.S. dollars
SCAC: Improved conditions paving the way for successful pricing YTD 1Q22 1Q22 Net Sales 416 416 % var (l-t-l) 9% 9% Operating EBITDA 109 109 % var (l-t-l) (3%) (3%) Operating EBITDA margin 26.3% 26.3% pp var (2.6pp) (2.6pp) • Top-line driven by 9% growth in cement prices • Formal sector activity improving throughout portfolio while bagged cement returns to normalized levels • Announcing second round of price increases in markets representing ~30% of our cement volumes • In Colombia, activity driven by formal residential and infrastructure • In the Dominican Republic, formal activity is improving on the back of tourism and reactivation of formal housing 978 Building, Bogota, Colombia Built with Vertua Concrete, part of our Vertua family of sustainable products 14 Millions of U.S. dollars
Financial Developments Avancer Tower, San Luis, Mexico Built with Fortis, part of our Vertua family of sustainable products
Lower FCF driven by higher investment in working capital and maintenance capex Average working capital days First Quarter 1Q22 1Q21 2022 2021 Operating EBITDA 691 674 - Net Financial Expense 128 170 -9 - Maintenance Capex 182 96 -17 - Change in Working Capital 498 346 - Taxes Paid 50 48 Controlling Interest Net Income - Other Cash Items (net) 17 21 US$ M 665 - Free Cash Flow (9) (7) Discontinued Operations Free Cash Flow after 198 (175) 1 Maintenance Capex - Strategic Capex 76 53 Free Cash Flow (251) (53) 1Q22 1Q21 16
Partially mitigating energy volatility Kiln fuels - 5% of COGS + Operating Exp. in 2021 Change in energy cost 460 YTD 1Q22 2022 (4Q14: base 100) 2 2 Fuel Source Fuel price structure 420 Alternatives Fossil fuels 33% 1 CX Energy ARA Coal 20% 380 Alternatives Fixed 36% Henry Hub Nat. Gas USGC Petcoke 340 US Appalachian Coal Dutch TTF Gas Petcoke 35% 21% Coal 300 43% 6% 5% Fossil fuels Nat. Gas 260 Other Floating 220 Electricity - 4% of COGS + Operating Exp. in 2021 180 2022 140 2 Power price structure 100 60 50% Fixed Regulated 29% 20 4Q14 4Q15 4Q16 4Q17 4Q18 4Q19 4Q20 1Q22 20% Floating 1) CX energy cost (kiln fuel and electricity) per ton of cement produced 17 2) Based on expected consumption of kilocalories for fuels, and consumption of megawatt hours for power
Executed highly accretive transactions amid current environment • Successful early bond tender results for a principal amount of ~$440 million, achieving annual interest savings >$11 million • Repurchased $111 million of our shares, equivalent to 1.5% of outstanding shares • Closed $300 million interest rate locks, mitigating interest rate risk on potential future liability management transaction • Introducing our sustainability-linked framework in $215 million of securitization programs The Mexican Center of Philanthropy, Mexico City, Mexico Built with Fortis, part of our Vertua family of sustainable products 18
2022 Outlook The Reflection Space, Monterrey, Mexico Built with Evolution, part of our Vertua family of sustainable products
1 2022 guidance 2 Operating EBITDA Mid single-digit growth Flat for Cement Consolidated volume growth Low to mid single-digit for Ready mix Low to mid single-digit for Aggregates Energy cost/ton of cement ~35% increase produced ~$1,200 million total Capital expenditures ~$700 M Maintenance, ~$500 M Strategic Investment in working capital ~$150 million Cash taxes ~$200 million 3 Cost of debt Reduction of ~$20 million 1) Reflects CEMEX’s current expectations 2) Like-to-like for ongoing operations 20 3) Including perpetual bonds and subordinated notes with no fixed maturity
Appendix Casa Piedra, Acapulco, Mexico Built with Duramax, part of our Vertua family of sustainable products
Debt maturity profile as of March 31, 2022 (Proforma) 1 Proforma total debt as of March 31, 2022: $8,951 million 2021 Credit Agreement Other bank debt Average life of debt: Fixed Income 5.7 years Leases 2,029 1,803 1,048 956 914 853 530 511 271 35 2022 2023 2024 2025 2026 2027 2028 2029 2030 >2031 Millions of U.S. dollars 1) Giving proforma effect to the purchase of $438.8 M aggregate principal amount of the following Notes: $167.9 principal amount of the 5.20% Notes due 2030, $111.6 M principal amount of the 5.45% Notes due 2029, and $159.3 M principal amount of the 3.875% Notes due 2031, that were validly tendered by holders of the Notes during the tender offer dated March 28, 2022 and early settled on April 13, 2022 and finally settled on April 27. Additionally, reflects a drawdown of $426 M of our Revolving Credit Facility to fund the purchase of these bonds. 22
Debt maturity profile as of March 31, 2022 Total debt as of March 31, 2022: $8,963 million 2021 Credit Agreement Other bank debt Average life of debt: Fixed Income 6.0 years Leases 1,962 1,603 1,048 1,025 1,021 956 530 511 271 35 2022 2023 2024 2025 2026 2027 2028 2029 2030 >2031 23 Millions of U.S. dollars
Consolidated volumes and prices 3M22 vs. 3M21 1Q22 vs. 1Q21 1Q22 vs. 4Q21 Volume (l-t-l) 1% 1% (2%) Domestic gray Price (USD) 10% 10% 7% cement Price (l-t-l) 12% 12% 7% Volume (l-t-l) 6% 6% (3%) Ready mix Price (USD) 7% 7% 6% Price (l-t-l) 8% 8% 6% Volume (l-t-l) 7% 7% (3%) Aggregates Price (USD) 5% 5% 8% Price (l-t-l) 7% 7% 8% 24 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates
Additional information on debt MXN 3% Other Euro 5% 7% First Quarter Fourth Quarter 2022 2021 % var 2021 Currency 1 8,963 10,413 (14%) 8,555 Total debt denomination Short-term 4% 8% 4% U.S. Long-term 96% 92% 96% dollar 85% Cash and cash equivalents 593 1,309 (55%) 613 Net debt 8,370 9,104 (8%) 7,942 2 8,266 9,583 (14%) 7,921 Consolidated net debt Variable 2 2.83 3.66 2.73 Consolidated leverage ratio 14% 2 3 Interest rate 6.60 4.10 5.99 Consolidated coverage ratio Fixed 86% Millions of U.S. dollars 1) Includes leases, in accordance with International Financial Reporting Standard (IFRS) 2) Calculated in accordance with our contractual obligations under the 2021 Credit Agreement. 25 3) Includes the effect of interest-rate swap instruments related to bank loans to fix floating rates with a nominal amount of US $1,013 million
Additional information on debt 1 Total debt by instrument First Quarter Fourth Quarter 2022 2021 % of total % of total 17% Fixed Income 5,318 59% 5,330 62% 2021 Credit Agreement 2,127 24% 1,728 20% 1 1,518 17% 1,497 18% Others 59% 24% Total Debt 8,963 8,555 Millions of U.S. dollars 26 1) Includes leases, in accordance with IFRS
1Q22 volume and price summary: selected countries and regions Domestic gray cement Ready mix Aggregates 1Q22 vs. 1Q21 1Q22 vs. 1Q21 1Q22 vs. 1Q21 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (8%) 15% 13% 9% 13% 11% 5% 15% 13% U.S. 9% 10% 10% 7% 9% 9% 9% 8% 8% Europe 16% 8% 15% 8% (0%) 6% 5% (2%) 3% Israel N/A N/A N/A 1% 10% 6% 11% 10% 7% Philippines (6%) 1% 7% N/A N/A N/A N/A N/A N/A Colombia 4% (4%) 1% 14% (5%) 1% 16% (6%) 0% Panama 5% (6%) (6%) 15% (7%) (7%) 20% 9% 9% Dominican Republic (4%) 15% 12% 32% 19% 15% N/A N/A N/A 27 Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates
1 2022 expected volume outlook : selected countries/regions Cement Ready Mix Aggregates CEMEX Flat Low to mid single digit increase Low to mid single digit increase Mexico Flat to low single digit decline Mid single digit increase Low to mid single digit increase USA Low single digit increase Low single digit increase Low single digit increase Europe Flat Flat Flat Colombia Low single digit increase Low teens increase N/A Panama Low to mid single digit increase At least 25% increase N/A High single digit to low teens Dominican Republic Flat N/A increase Israel N/A Flat Low single digit increase Philippines Mid single digit increase N/A N/A 28 1) Reflects CEMEX’s current expectations. Volumes on a like-to-like basis
Relevant ESG indicators Carbon strategy 1Q22 1Q21 4Q21 2021 Customers and suppliers 1Q22 1Q21 4Q21 2021 Kg of CO per ton of 2 Net Promoter Score (NPS) 67 65 69 70 577 601 587 591 cementitious % of sales using CX Go 60% 64% 61% 62% Alternative fuels (%) 33.3% 26.0% 30.3% 29.2% Clinker factor 74.5% 76.1% 75.4% 75.8% Low-carbon products 1Q22 1Q21 4Q21 2021 Health and safety 1Q22 1Q21 4Q21 2021 Blended cement as % of total Employee fatalities 0 0 1 1 72.5% 67.8% 70.5% 68.3% cement produced Employee L-T-I frequency rate 0.5 0.3 0.6 0.5 Vertua cement as % of total 34% 17% N/A N/A Operations with zero fatalities 99% 99% 98% 95% and injuries (%) Vertua concrete as % of total 31% 16% N/A N/A 29
Definitions SCAC South, Central America and the Caribbean EMEA Europe, Middle East, Africa and Asia When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported Cement cement volumes changed from total domestic cement including clinker to domestic gray cement) LC Local currency l-t-l (like to like) On a like-to-like basis adjusting for currency fluctuations and for investments/divestments when applicable Investments incurred for the purpose of ensuring the company’s operational continuity. These include capital expenditures on Maintenance capital projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are expenditures projects required to comply with governmental regulations or company policies Operating EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization IFRS International Financial Reporting Standards, as issued by the International Accounting Standards Board Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products Investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects Strategic capital expenditures designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs Trinidad Cement Limited includes Barbados, Guyana, Jamaica and Trinidad and Tobago TCL Operations U.S. dollars USD Percentage variation % var 30
Contact Information Investors Stock Information Relations NYSE (ADS): CX In the United States +1 877 7CX NYSE Mexican Stock Exchange: CEMEXCPO In Mexico +52 81 8888 4292 Ratio of CEMEXCPO to CX: ir@cemex.com 10 to 1