Cemex Sab De CV 6-K, filed Apr 30, 2021
Cemex Sab De CV (CX)
About this 6-K
Cemex Sab De CV filed this 6-K on April 30, 2021.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OFFOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of April, 2021
Commission File Number: 001-14946
CEMEX, S.A.B. de C.V.
(Translation of Registrant’s name into English)
AvenidaRicardo 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):
Contents
| 1. | Press release dated April 30, 2021, announcing first quarter 2021 results for CEMEX Holdings Philippines, Inc. an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX) (“CEMEX”). |
|---|---|
| 2. | First quarter 2021 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX. |
| 3. | Presentation regarding first quarter 2021 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of 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 30, 2021 | By: | /s/ Rafael Garza Lozano |
| Name: Rafael Garza Lozano | ||
| Title: Chief Comptroller |
3
EXHIBIT INDEX
| EXHIBIT<br>NO. | DESCRIPTION |
|---|---|
| 1. | Press release dated April 30, 2021, announcing first quarter 2021 results for CEMEX Holdings Philippines, Inc. an indirect subsidiary of<br>CEMEX, S.A.B. de C.V. (NYSE: CX) (“CEMEX”). |
| 2. | First quarter 2021 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX. |
| 3. | Presentation regarding first quarter 2021 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX. |
4
Press release dated April 30, 2021, announcing first quarter 2021 results
Exhibit 1
| Media Relations | Investor Relations |
|---|---|
| Erlinda Lizardo | Pierre Co |
| +632 8849 3600<br><br><br>erlinda.lizardo@cemex.com | +632 8849 3600<br><br><br>pierre.co@cemex.com |
CHP REPORTS FIRST QUARTER 2021 RESULTS
MANILA, PHILIPPINES. APRIL 30, 2021 – CEMEX HOLDINGS PHILIPPINES, INC. (“CHP”) (PSE: CHP), announced today that its consolidated net sales decreased by 8% during the first quarter of 2021, versus the comparable period in 2020, amounting to PHP 5.2 billion.
CHP’s domestic cement volumes decreased by 4% year-over-year during the first quarter, amidst the ongoing COVID-19 pandemic and its impact on economic activity.
CHP’s domestic cement prices remained flat quarter-on-quarter. Net of freight charges, CHP’s domestic cement prices during the first quarter decreased by 1% year-over-year due to subdued activity and competitive market dynamics.
CHP’s Operating EBITDA for the first quarter was PHP 1.03 billion, a decrease of 5% versus the same period in 2020.
Operating EBITDA margin was higher at 19.7% for the first quarter of 2021, compared with 19.2% in the same period of last year.
Net income for CHP was PHP 205 million for the first quarter of 2021, versus PHP 89 million for the first three months of 2020, mainly due to a 78% decrease in financial expenses, reflecting lower debt levels and declining interest rates.
During the quarter, CHP celebrated the 100-year anniversary of APO Cement Corporation. Ignacio Mijares, President and CEO of CHP, said: “In its century of existence, APO’s milestone is a reminder that institutions outlast challenges through the collective action of its people. We are proud to be a part of APO’s heritage in Cebu, and its long-standing role in nation-building.
CHP, alisted company at the Philippine Stock Exchange, is one of the leading cement producers in the Philippines, based on annual installed capacity. CHP produces and markets cement and cement products, such asready-mix concrete and clinker, in the Philippines through direct sales using its extensive marine and land distribution network. Moreover, CHP’s cement manufacturing subsidiaries have been operating inthe Philippines with well-established brands, such as “APO,” “Island,” and “Rizal,” all having a multi-decade history in the country.
CHP is an indirect subsidiary of CEMEX, S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement productioncapacity. The shares of CEMEX, S.A.B. de C.V. are listed on the Mexican Stock Exchange and the New York Stock Exchange.
For more information onCHP, please visit website: www.cemexholdingsphilippines.com.
1
#
This press release may contain forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Manyfactors could cause the actual results, performance or achievements of CHP to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and businessconditions globally and in the countries in which CHP does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw materialand energy prices, changes in business strategy, changes derived from events affecting CEMEX, S.A.B de C.V. and subsidiaries (“CEMEX”) and various other factors. Should one or more of these risks or uncertainties materialize, or shouldunderlying assumptions prove incorrect, actual results may vary materially from those described herein. CHP assumes no obligation to update or correct the information contained in this press release.
2
First quarter 2021 results for CEMEX Holdings Philippines, Inc.
Exhibit 2
2021
FIRST QUARTER RESULTS
◾ Stock Listing Information
Philippine Stock Exchange
Ticker: CHP
◾ Investor Relations
- 632 8849 3600
E-Mail:
chp.ir@cemex.com
| Operating and Financial Highlights | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| January - March | First Quarter | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 | 2020 | % var | 2021 | 2020 | % var | |||||||||||||
| Net sales | 5,202 | 5,630 | (8 | %) | 5,202 | 5,630 | (8 | %) | ||||||||||
| Gross profit | 2,023 | 2,354 | (14 | %) | 2,023 | 2,354 | (14 | %) | ||||||||||
| as % of net sales | 39 | % | 42 | % | (3pp | ) | 39 | % | 42 | % | (3pp | ) | ||||||
| Operating earnings before other expenses, net | 474 | 521 | (9 | %) | 474 | 521 | (9 | %) | ||||||||||
| as % of net sales | 9 | % | 9 | % | 0pp | 9 | % | 9 | % | 0pp | ||||||||
| Controlling Interest Net Income (Loss) | 205 | 89 | 131 | % | 205 | 89 | 131 | % | ||||||||||
| Operating EBITDA | 1,026 | 1,082 | (5 | %) | 1,026 | 1,082 | (5 | %) | ||||||||||
| as % of net sales | 19.7 | % | 19.2 | % | 0.5pp | 19.7 | % | 19.2 | % | 0.5pp | ||||||||
| Free cash flow after maintenance capital expenditures | 1,266 | 312 | 306 | % | 1,266 | 312 | 306 | % | ||||||||||
| Free cash flow | 580 | (1,140 | ) | N/A | 580 | (1,140 | ) | N/A | ||||||||||
| Net debt^1^ | 6,089 | 7,147 | (15 | %) | 6,089 | 7,147 | (15 | %) | ||||||||||
| Total debt^1^ | 12,153 | 13,481 | (10 | %) | 12,153 | 13,481 | (10 | %) | ||||||||||
| Earnings per share^2^ | 0.02 | 0.01 | 51 | % | 0.02 | 0.01 | 51 | % |
In millions of Philippine Pesos, except percentages and earnings per share
| ^1^ | U.S. dollar debt converted using<br>end-of-period exchange rate. See Debt Information on page 4 and Exchange Rates on page 7 for more detail. |
|---|---|
| ^2^ | In Philippine Pesos |
| --- | --- |
Net sales decreased, year-over-year, by 8% during the first quarter of 2021 due to lower volumes and prices.
Total cost of sales was lower by 3% year-over-year during the first quarter, in line with the decrease in our sales volumes.
Total fuel cost was 18% lower on a year-over-year basis mainly due to the use of a more cost-efficient fuel mix.
Total power cost was 14% higher on a year-over-year basis mainly due to higher electricity rates, and a rebate from the wholesale electricity spot market received in the prior year.
Operating expenses, as a percentage of sales, was 30% during the first quarter of 2021, compared with 33% in the same period of 2020.
Distribution expenses was 16% of sales during the first quarter, a decrease of 3 pp year-over-year. This was mainly driven by lower delivered volumes and initiatives to increase efficiency.
Selling and administrative expenses, as a percentage of sales, was flat year-over-year at 14% during the first quarter of 2021. Total selling and administrative expenses decreased by 6% year-over-year during the quarter mainly due to lower fees related to royalties, and CHP’s Stock Rights Offering, which was concluded during the first quarter of 2020.
Operating EBITDA for the first quarter of 2021 decreased by 5% year-over-year due to lower sales.
Operating EBITDA margin increased by 0.5 pp to 19.7% for the first quarter of 2021, compared with 19.2% in the same period of last year.
Controlling interest net income was PHP 205 million for the first quarter of 2021, 131% higher on a year-over-year basis, mainly due to a 78% decrease in financial expenses.
Financial expenses for the first quarter of 2021 declined 78%, reflecting lower debt levels and interest rates.
Income tax for the first quarter of 2021 was 77% higher mainly due to a one-time expense from the revaluation of deferred tax assets pursuant to income tax rates reduction related to the Corporate Recovery and Tax Incentives for Enterprises or the CREATE Act, which was approved into law on March 26, 2021.
Total debt at the end of March 2021 was at PHP 12,153 million, of which PHP 10,252 million pertained to debt owed to BDO Unibank, Inc.
| 2021 Fourth Quarter Results | Page 2 | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Operating Results | |||||||||
| --- | |||||||||
| Domestic Gray Cement | January - March | First Quarter | First Quarter 2021 | ||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 2021 vs. 2020 | 2021 vs. 2020 | vs. Fourth Quarter 2020 | |||||||
| Volume | (4 | %) | (4 | %) | 14 | % | |||
| Price in PHP | (4 | %) | (4 | %) | 0 | % |
Our domestic cement volumes decreased by 4% year-over-year during the first quarter, amidst the ongoing COVID-19 pandemic and its impact on economic activity.
On a sequential basis, our domestic cement volumes increased by 14%, as the fourth quarter of 2020 was heavily affected by adverse weather conditions.
Our domestic cement prices remained flat quarter-on-quarter.
Year-over-year, the movement in our domestic cement prices mainly driven by a higher proportion of pick-up sales.
Net of freight charges, our domestic cement prices decreased by 1% year-over-year due to subdued activity and competitive market dynamics.
| 2021 First Quarter Results | Page 3 |
|---|---|
| Operating EBITDA, Free Cash Flow and Debt Information | |
| --- |
Operating EBITDA and Free Cash Flow
| January - March | First Quarter | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % var | 2021 | 2020 | % var | |||||||||||||
| Operating earnings before other income, net | **** | 474 | **** | **** | 521 | **** | **** | (9 | %) | **** | 474 | **** | **** | 521 | **** | **** | (9 | %) |
| + Depreciation and operating amortization | 552 | 562 | 552 | 562 | ||||||||||||||
| Operating EBITDA | **** | 1,026 | **** | **** | 1,082 | **** | **** | (5 | %) | **** | 1,026 | **** | **** | 1,082 | **** | **** | (5 | %) |
| - Net financial expenses | 63 | 280 | 63 | 280 | ||||||||||||||
| - Maintenance capital expenditures | 32 | 49 | 32 | 49 | ||||||||||||||
| - Change in working capital | (323 | ) | 332 | (323 | ) | 332 | ||||||||||||
| - Income taxes paid | 27 | 122 | 27 | 122 | ||||||||||||||
| - Other cash items (net) | (38 | ) | (12 | ) | (38 | ) | (12 | ) | ||||||||||
| Free cash flow after maintenance capital expenditures | **** | 1,266 | **** | **** | 312 | **** | **** | 306 | % | **** | 1,266 | **** | **** | 312 | **** | **** | 306 | % |
| - Strategic capital expenditures | 686 | 1,452 | 686 | 1,452 | ||||||||||||||
| Free cash flow | **** | 580 | **** | **** | (1,140 | ) | **** | N/A | **** | **** | 580 | **** | **** | (1,140 | ) | **** | N/A | **** |
In millions of Philippine Pesos
Debt Information
| First Quarter | FourthQuarter | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | % var | 2020 | |||||||||
| Total debt^(1)(2)^ | **** | 12,153 | **** | **** | 13,481 | **** | **** | (10 | %) | **** | 12,853 | **** |
| Short term | 5 | % | 5 | % | 6 | % | ||||||
| Long term | 95 | % | 95 | % | 94 | % | ||||||
| Cash and cash equivalents | 6,064 | 6,334 | (4 | %) | 6,139 | |||||||
| Net debt | **** | 6,089 | **** | **** | 7,147 | **** | **** | (15 | %) | **** | 6,714 | **** |
| Leverage Ratio^(3)^ | **** | 2.95 | **** | **** | 3.20 | **** | **** | 3.08 | **** | |||
| Coverage Ratio^(3)^ | **** | 6.47 | **** | **** | 4.08 | **** | **** | 5.95 | **** | |||
| First Quarter | ||||||||||||
| --- | --- | --- | --- | --- | --- | --- | ||||||
| 2021 | 2020 | |||||||||||
| Currency denomination | ||||||||||||
| U.S. dollar | 3 | % | 4 | % | ||||||||
| Philippine peso | 97 | % | 96 | % | ||||||||
| Interest rate | ||||||||||||
| Fixed | 60 | % | 56 | % | ||||||||
| Variable | 40 | % | 44 | % |
In millions of Philippine Pesos, except percentages
| ^(1)^ | U.S. dollar debt converted using<br>end-of-period exchange rate. See Exchange Rates on page 7 for more detail. |
|---|---|
| ^(2)^ | Includes leases, in accordance with Philippine Financial Reporting Standards (PFRS). |
| --- | --- |
| ^(3)^ | Based on BDO Loan Facility financial covenants which we are required to comply commencing on June 30, 2021.<br> |
| --- | --- |
| 2021 First Quarter Results | Page 4 |
| --- | --- |
| Financial Results | |
| --- |
Income Statement & Balance Sheet Information
CEMEX Holdings Philippines, Inc.
(Thousands ofPhilippine Pesos in nominal terms, except per share amounts)
| January - March | First Quarter | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | 2021 | 2020 | % var | 2021 | 2020 | % var | ||||||||||||
| Net sales | 5,202,237 | 5,629,916 | (8 | %) | 5,202,237 | 5,629,916 | (8 | %) | ||||||||||
| Cost of sales | (3,179,297 | ) | (3,275,817 | ) | 3 | % | (3,179,297 | ) | (3,275,817 | ) | 3 | % | ||||||
| Gross profit | **** | 2,022,940 | **** | **** | 2,354,099 | **** | **** | (14 | %) | **** | 2,022,940 | **** | **** | 2,354,099 | **** | **** | (14 | %) |
| Selling and Administrative expenses | (719,201 | ) | (767,455 | ) | 6 | % | (719,201 | ) | (767,455 | ) | 6 | % | ||||||
| Distribution expenses | (829,894 | ) | (1,065,804 | ) | 22 | % | (829,894 | ) | (1,065,804 | ) | 22 | % | ||||||
| Operating earnings before other expenses, net | **** | 473,845 | **** | **** | 520,840 | **** | **** | (9 | %) | **** | 473,845 | **** | **** | 520,840 | **** | **** | (9 | %) |
| Other income (expenses), net | 38,073 | 12,094 | 215 | % | 38,073 | 12,094 | 215 | % | ||||||||||
| Operating earnings (loss) | **** | 511,918 | **** | **** | 532,934 | **** | **** | (4 | %) | **** | 511,918 | **** | **** | 532,934 | **** | **** | (4 | %) |
| Financial expenses, net | (62,578 | ) | (279,540 | ) | 78 | % | (62,578 | ) | (279,540 | ) | 78 | % | ||||||
| Foreign exchange gain (loss), net | (71,043 | ) | (66,411 | ) | (7 | %) | (71,043 | ) | (66,411 | ) | (7 | %) | ||||||
| Net income (loss) before income taxes | **** | 378,297 | **** | **** | 186,983 | **** | **** | 102 | % | **** | 378,297 | **** | **** | 186,983 | **** | **** | 102 | % |
| Income tax benefit (expenses) | (172,813 | ) | (97,861 | ) | (77 | %) | (172,813 | ) | (97,861 | ) | (77 | %) | ||||||
| Consolidated net income (loss) | **** | 205,484 | **** | **** | 89,122 | **** | **** | 131 | % | **** | 205,484 | **** | **** | 89,122 | **** | **** | 131 | % |
| Non-controlling interest net income (loss) | 8 | 9 | (11 | %) | 8 | 9 | (11 | %) | ||||||||||
| Controlling Interest net income (loss) | **** | 205,492 | **** | **** | 89,131 | **** | **** | 131 | % | **** | 205,492 | **** | **** | 89,131 | **** | **** | 131 | % |
| Operating EBITDA | **** | 1,026,033 | **** | **** | 1,082,436 | **** | **** | (5 | %) | **** | 1,026,033 | **** | **** | 1,082,436 | **** | **** | (5 | %) |
| Earnings per share | **** | 0.02 | **** | **** | 0.01 | **** | **** | 51 | % | **** | 0.02 | **** | **** | 0.01 | **** | **** | 51 | % |
| as of March 31 | as of December 31 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| BALANCE SHEET | 2021 | 2020 | % Var | 2020 | % Var | |||||||||||||
| Total Assets | **** | 63,459,461 | **** | 64,327,987 | **** | (1 | %) | **** | 63,760,347 | **** | (0 | %) | ||||||
| Cash and Temporary Investments | 6,064,369 | 6,334,330 | (4 | %) | 6,139,411 | (1 | %) | |||||||||||
| Derivative Asset | 47,297 | 0 | 24,039 | 97 | % | |||||||||||||
| Trade Accounts Receivables | 896,670 | 1,112,654 | (19 | %) | 700,162 | 28 | % | |||||||||||
| Other Receivables | 36,694 | 53,497 | (31 | %) | 47,512 | (23 | %) | |||||||||||
| Insurance Claims and Premium Receivables | 0 | 92,662 | (100 | %) | 87,569 | (100 | %) | |||||||||||
| Inventories | 2,206,582 | 2,995,714 | (26 | %) | 2,349,966 | (6 | %) | |||||||||||
| Assets Held for Sale | 0 | 0 | 0 | |||||||||||||||
| Other Current Assets | 1,590,611 | 1,515,138 | 5 | % | 1,825,209 | (13 | %) | |||||||||||
| Current Assets | 10,842,223 | 12,103,995 | (10 | %) | 11,173,868 | (3 | %) | |||||||||||
| Fixed Assets | 21,921,009 | 20,947,637 | 5 | % | 21,699,377 | 1 | % | |||||||||||
| Investments in an Associate and Other Investments | 14,097 | 14,097 | 0 | % | 14,097 | 0 | % | |||||||||||
| Other Assets and Noncurrent Accounts Receivables | 826,580 | 882,515 | (6 | %) | 782,399 | 6 | % | |||||||||||
| Advances to Contractors | 1,057,699 | 1,458,603 | (27 | %) | 1,142,685 | (7 | %) | |||||||||||
| Deferred Income Taxes—net | 938,159 | 1,061,446 | (12 | %) | 1,088,227 | (14 | %) | |||||||||||
| Goodwill | 27,859,694 | 27,859,694 | 0 | % | 27,859,694 | 0 | % | |||||||||||
| Other Assets | 30,696,229 | 31,276,355 | (2 | %) | 30,887,102 | (1 | %) | |||||||||||
| Total Liabilities | **** | 20,245,687 | **** | 21,939,209 | **** | (8 | %) | **** | 20,849,759 | **** | (3 | %) | ||||||
| Current Liabilities | 8,131,166 | 8,383,230 | (3 | %) | 8,169,894 | (0 | %) | |||||||||||
| Long-Term Liabilities | 10,038,102 | 11,152,261 | (10 | %) | 10,566,642 | (5 | %) | |||||||||||
| Deferred Tax Liability | 847 | 1,624 | (48 | %) | 853 | (1 | %) | |||||||||||
| Other Liabilities | 2,075,572 | 2,402,094 | (14 | %) | 2,112,370 | (2 | %) | |||||||||||
| Consolidated Stockholders’ Equity | **** | 43,213,774 | **** | 42,388,778 | **** | 2 | % | **** | 42,910,588 | **** | 1 | % | ||||||
| Non-controlling Interest | 142 | 162 | (12 | %) | 150 | (5 | %) | |||||||||||
| Stockholders’ Equity Attributable to Controlling Interest | 43,213,632 | 42,388,616 | 2 | % | 42,910,438 | 1 | % | |||||||||||
| 2021 First Quarter Results | Page 5 | |||||||||||||||||
| --- | --- | |||||||||||||||||
| Financial Results | ||||||||||||||||||
| --- |
Income Statement & Balance Sheet Information
CEMEX Holdings Philippines, Inc.
(Thousands of U.S.Dollars, except per share amounts)
| January - March | First Quarter | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INCOME STATEMENT | 2021 | 2020 | % var | 2021 | 2020 | % var | ||||||||||||
| Net sales | 107,484 | 110,767 | (3 | %) | 107,484 | 110,767 | (3 | %) | ||||||||||
| Cost of sales | (65,688 | ) | (64,451 | ) | (2 | %) | (65,688 | ) | (64,451 | ) | (2 | %) | ||||||
| Gross profit | **** | 41,796 | **** | **** | 46,316 | **** | **** | (10 | %) | **** | 41,796 | **** | **** | 46,316 | **** | **** | (10 | %) |
| Selling and Administrative Expenses | (14,860 | ) | (15,100 | ) | 2 | % | (14,860 | ) | (15,100 | ) | 2 | % | ||||||
| Distribution expenses | (17,147 | ) | (20,969 | ) | 18 | % | (17,147 | ) | (20,969 | ) | 18 | % | ||||||
| Operating earnings before other expenses, net | **** | 9,789 | **** | **** | 10,247 | **** | **** | (4 | %) | **** | 9,789 | **** | **** | 10,247 | **** | **** | (4 | %) |
| Other income (expenses), net | 787 | 238 | 231 | % | 787 | 238 | 231 | % | ||||||||||
| Operating earnings (loss) | **** | 10,576 | **** | **** | 10,485 | **** | **** | 1 | % | **** | 10,576 | **** | **** | 10,485 | **** | **** | 1 | % |
| Financial expenses, net | (1,293 | ) | (5,500 | ) | 76 | % | (1,293 | ) | (5,500 | ) | 76 | % | ||||||
| Foreign exchange gain (loss), net | (1,468 | ) | (1,307 | ) | (12 | %) | (1,468 | ) | (1,307 | ) | (12 | %) | ||||||
| Net income (loss) before income taxes | **** | 7,815 | **** | **** | 3,678 | **** | **** | 112 | % | **** | 7,815 | **** | **** | 3,678 | **** | **** | 112 | % |
| Income tax benefit (expenses) | (3,571 | ) | (1,925 | ) | (86 | %) | (3,571 | ) | (1,925 | ) | (86 | %) | ||||||
| Consolidated net income (loss) | **** | 4,244 | **** | **** | 1,753 | **** | **** | 142 | % | **** | 4,244 | **** | **** | 1,753 | **** | **** | 142 | % |
| Non-controlling interest net income (loss) | 0 | 0 | 0 | 0 | ||||||||||||||
| Controlling Interest net income (loss) | **** | 4,244 | **** | **** | 1,753 | **** | **** | 142 | % | **** | 4,244 | **** | **** | 1,753 | **** | **** | 142 | % |
| Operating EBITDA | **** | 21,199 | **** | **** | 21,297 | **** | **** | (0 | %) | **** | 21,199 | **** | **** | 21,297 | **** | **** | (0 | %) |
| as of March 31 | as of December 31 | |||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | ||||||
| BALANCE SHEET | 2021 | 2020 | % Var | 2020 | % Var | |||||||||||||
| Total Assets | **** | 1,307,633 | **** | 1,269,297 | **** | 3 | % | **** | 1,327,705 | **** | (2 | %) | ||||||
| Cash and Temporary Investments | 124,961 | 124,987 | (0 | %) | 127,843 | (2 | %) | |||||||||||
| Derivative Asset | 975 | 0 | 501 | 95 | % | |||||||||||||
| Trade Accounts Receivables | 18,477 | 21,954 | (16 | %) | 14,580 | 27 | % | |||||||||||
| Other Receivables | 756 | 1,056 | (28 | %) | 989 | (24 | %) | |||||||||||
| Insurance Claims and Premium Receivables | 0 | 1,828 | (100 | %) | 1,823 | (100 | %) | |||||||||||
| Inventories | 45,468 | 59,110 | (23 | %) | 48,934 | (7 | %) | |||||||||||
| Assets Held for Sale | 0 | 0 | 0 | |||||||||||||||
| Other Current Assets | 32,776 | 29,896 | 10 | % | 38,007 | (14 | %) | |||||||||||
| Current Assets | 223,413 | 238,831 | (6 | %) | 232,677 | (4 | %) | |||||||||||
| Fixed Assets | 451,700 | 413,331 | 9 | % | 451,854 | (0 | %) | |||||||||||
| Investments in an Associate and Other Investments | 290 | 278 | 4 | % | 294 | (1 | %) | |||||||||||
| Other Assets and Noncurrent Accounts Receivables | 17,031 | 17,414 | (2 | %) | 16,292 | 5 | % | |||||||||||
| Advances to Contractors | 21,795 | 28,781 | (24 | %) | 23,795 | (8 | %) | |||||||||||
| Deferred Income Taxes—net | 19,332 | 20,944 | (8 | %) | 22,661 | (15 | %) | |||||||||||
| Goodwill | 574,072 | 549,718 | 4 | % | 580,132 | (1 | %) | |||||||||||
| Other Assets | 632,520 | 617,135 | 2 | % | 643,174 | (2 | %) | |||||||||||
| Total Liabilities | **** | 417,178 | **** | 432,896 | **** | (4 | %) | **** | 434,163 | **** | (4 | %) | ||||||
| Current Liabilities | 167,549 | 165,415 | 1 | % | 170,125 | (2 | %) | |||||||||||
| Long-Term Liabilities | 206,843 | 220,053 | (6 | %) | 220,033 | (6 | %) | |||||||||||
| Deferred Tax Liability | 17 | 32 | (47 | %) | 18 | (6 | %) | |||||||||||
| Other Liabilities | 42,769 | 47,396 | (10 | %) | 43,987 | (3 | %) | |||||||||||
| Consolidated Stockholders’ Equity | **** | 890,455 | **** | 836,401 | **** | 6 | % | **** | 893,542 | **** | (0 | %) | ||||||
| Non-controlling Interest | 3 | 3 | 0 | % | 3 | 0 | % | |||||||||||
| Stockholders’ Equity Attributable to Controlling Interest | 890,452 | 836,398 | 6 | % | 893,539 | (0 | %) | |||||||||||
| 2021 First Quarter Results | Page 6 | |||||||||||||||||
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| Definitions of Terms and Disclosures | ||||||||||||||||||
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Methodology for translation, consolidation, and presentation of results
CEMEX Holdings Philippines, Inc. (“CHP”) reports its consolidated financial statements under Philippine Financial Reporting Standards (“PFRS”). When reference is made in 2021 and 2020 to consolidated financial statements, it means CHP financial information together with its subsidiaries.
For the purpose of presenting figures in U.S. dollars, the consolidated balance sheet as of March 31, 2021 has been converted at the end of period exchange rate of 48.53 Philippine pesos per US dollar while the consolidated income statement for the three-month period ended March 31, 2021 has been converted at the January to March 2021 average exchange rate of 48.40 Philippine pesos per US dollar.
Definition of terms
PHP refers to Philippine Pesos.
pp equals percentage points.
Prices all references to pricing initiatives, price increases or decreases, refer to our prices for our products.
Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization.
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 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.
Strategic capital expenditures investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.
Change in Working capital in the Free cash flow statements only include trade receivables, trade payables, receivables and payables from and to related parties, other current receivables, inventories, other current assets, and other accounts payable and accrued expense.
Net debt equals total debt minus cash and cash equivalents.
| Exchange Rates | January -March | First Quarter | January - March | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2021average | 2020average | 2021average | 2020average | 2021End of period | 2020End of period | |||||||
| Philippine peso | 48.40 | 50.83 | 48.40 | 50.83 | 48.53 | 50.68 |
Amounts provided in units of local currency per US dollar
| 2021 First Quarter Results | Page 7 |
|---|
Presentation regarding first quarter 2021 results for CEMEX Holdings Philippines
2021 First Quarter Results Exhibit 3
This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect current expectations and projections about future events of CEMEX Holdings Philippines, Inc. ("CHP") based on CHP’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve, as of the date such statements are made, risks and uncertainties that could cause actual results to differ materially from CHP’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CHP or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CHP’s exposure to other sectors that impact CHP’s business, such as the energy sector; general political, economic, health and business conditions in the markets in which CHP operates; competition in the markets in which we offer our products and services; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CHP’s ability to satisfy its debt obligations and the ability of CEMEX, S.A.B. de C.V. (“CEMEX”), the ultimate parent company of the major shareholder of CHP, to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; expected refinancing of CEMEX’s existing indebtedness; the impact of CEMEX’s below investment grade debt rating on CHP’s and CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CHP’s cost-reduction initiatives and implement CHP’s pricing initiatives for CHP’s products; the increasing reliance on information technology infrastructure for CHP’s invoicing, procurement, financial statements and other processes that can adversely affect 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 demand for our products and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, our products and services; weather conditions, including but not limited to, excessive rain and snow, and disasters such as earthquakes and floods; weather conditions; natural disasters and other unforeseen events (including global health hazards such as COVID-19); and the other risks and uncertainties described in CHP’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CHP’s business. The information contained in these presentations is subject to change without notice, and CHP is not obligated to publicly update or revise forward-looking statements. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CHP’s prices for products sold or distributed by CHP or its subsidiaries. Copyright CEMEX Holdings Philippines, Inc. and its subsidiaries
First Quarter 2021 Update Activity starting to ramp up in 1Q21, following 4Q20 which was adversely affected by several typhoons. During the last two weeks of March, a surge in COVID-19 cases prompted the national government to tighten community quarantine regulations in the National Capital Region and four1 major neighboring provinces. Cement companies are allowed to operate2 with full on-site capacity under the strictest quarantine level. The same applies for companies that manufacture and/or supply equipment or products necessary to perform construction works or maintenance works. Essential and priority construction projects, whether public or private, are also allowed to be undertaken with full on-site capacity, in accordance with the guidelines issued by the Department of Public Works and Highways. 1 Bulacan, Cavite, Laguna, and Rizal 2 Based on Inter-Agency Task Force on Emerging Infectious Diseases (IATF) Resolution No. 106-B Series of 2021 dated March 28, 2021
COVID-19 Pandemic: Initiatives Focused on adhering to our Behaviors that Save Lives. Adapting on-site workforce and protocols to maintain safe and continuous operations. Extended our health and safety campaigns to the families and households of our employees. Enhancing our CEMEX Go digital platform, with more functionality. Improving customer experience, with projects related to paperless initiatives, customer management initiatives, and upgrading of digital capabilities. Seeing progress in our efforts to control cost through our distribution expenses and optimal fuel mix.
Celebrating 100 Years of APO Cement Corporation
Domestic cement volumes decreased by 4% year-over-year during the first quarter, amidst the ongoing COVID-19 pandemic and its impact on economic activity. On a sequential basis, our domestic cement volumes increased by 14%, as the fourth quarter of 2020 was affected by adverse weather conditions. Our domestic cement prices remained flat quarter-on-quarter. Year-over-year, change in our domestic cement prices mainly driven by higher proportion of pick-up sales. Net of freight charges, our domestic cement prices decreased by 1% year-over-year due to subdued activity and competitive market dynamics. As a result of lower volumes and prices, net sales decreased by 8% year-over-year during the first quarter of 2021. Net Sales, Domestic Cement Volumes and Prices Net Sales1 -8% 1 Millions of Philippine Pesos
Private Sector Activity in the residential sector was lower year-over-year in 1Q21 with the COVID-19 pandemic and its impact on the project timeline of developers. Average full-time employment was lower in the first two months of the year versus January 2020. Nonetheless, cash remittances and residential real estate prices have remained resilient. The non-residential sector was down in 1Q21 mainly due to limitations in mobility and subdued market confidence. The application of the CREATE law is expected to benefit commercial, office, retail, and industrial activity. Certain developers have also signified higher capital spending for the year amidst an improved outlook for 2021 compared to 2020. Sources: Bangko Sentral ng Pilipinas, Colliers, Company disclosures by various property firms, Internal Estimates, Leechiu Property Consultants, Philippine Statistics Authority 1 Other classifications include “Part-time”, and “With a job, not at work” Full-time Employment in Construction (K Persons) OFW Cash Remittances (B USD) % of Total Construction Employment1 83% 74% 75%
Public Sector Infrastructure disbursements during the first two months of the year increased by 14% year-over-year to Php 107bn owing to payments for projects that were started late last year. The government expects faster spending for the second quarter given the continuation of on-going projects and commencement of other infrastructure projects in the pipeline. Infrastructure formation remains a key pillar of the present administration, and efforts to fast-track projects should assist in job creation. Disbursements on Infrastructure and Capital Outlays (in PHP billion) Refers to year-over-year growth % Source: Department of Budget and Management
Total cost of sales was lower by 3% year-over-year during the first quarter, in line with the decrease in our sales volumes. Total fuel cost was 18% lower on a year-over-year basis mainly due to the use of a more cost-efficient fuel mix. Total power cost was 14% higher on a year-over-year basis mainly due to higher electricity rates, and a rebate from the wholesale electricity spot market received in the prior year. Total Cost of Sales, Fuel and Power Cost of Sales Note: In Millions of Philippine Pesos +3% Fuel +18% Power -14%
Distribution expenses was 16% of sales during the first quarter, a decrease of 3 pp year-over-year. This was driven by lower delivered volumes and initiatives to increase efficiency. Selling and administrative expenses, as a percentage of sales, was flat year-over-year at 14% during the first quarter of 2021. Absolute selling and administrative expenses decreased by 6% year-over-year during the quarter mainly due to lower fees related to royalties, and due to CHP’s Stock Rights Offering, which was concluded during the first quarter of 2020. Operating Expenses Distribution (% of net sales) Selling and Administrative (% of net sales)
Operating EBITDA in the first quarter decreased by 5% year-over-year due to lower sales. Operating EBITDA margin was higher at 19.7% for the first quarter of 2021, compared with 19.2% in the same period of last year. Operating EBITDA and Operating EBITDA Margin 1 Millions of Philippine Pesos Refers to operating EBITDA margin % Operating EBITDA Variation1 19.2% 19.7% 1,026 247 1,082
Controlling interest net income was at PHP 205 million for the first quarter of 2021, 131% higher on a year-over-year basis, mainly due to a 78% decrease in financial expenses. Financial expenses for the first quarter of 2021 declined 78%, reflecting lower debt levels and interest rates. Income tax was 77% higher mainly due to a one-time expense from the revaluation of deferred tax assets pursuant to income tax rates reduction related to the Corporate Recovery and Tax Incentives for Enterprises or the CREATE Act, which was approved into law on March 26, 2021. Net Income 1 Millions of Philippine Pesos Net Income1
Free Cash Flow & Guidance
Free cash flow after maintenance CAPEX for the first quarter of 2021 was around PHP 1.3 billion. Working capital improvement was mainly due to higher payables and lower inventories. Free Cash Flow
Works remained ongoing throughout the first quarter, with strict health and safety protocols, in line with government regulations. Our contractors have started to work on the different superstructures of the new line. Installation of various equipment continue. Expected completion of construction in December 2021. Estimated total project cost of US$235 million Est. total interest capitalization of US$24 million Solid Cement Plant Capacity Expansion Lifting of new rotary kiln into position at Solid Cement Plant (Jan. 2021)
2021 Guidance Cement Volumes 5-7% Capital expenditures PHP 5,330 million PHP 1,350 million PHP 6,680 million Solid Cement Plant Expansion CAPEX Maintenance and Other CAPEX Total CAPEX
Q&A Session 2021 First Quarter Results
2021 First Quarter Appendix
Debt Maturity Profile Total Debt: PHP 12,153 Avg. life of debt1: 4.9 years Net Debt to EBITDA2: 1.5x All amounts in millions of Philippine Pesos 1 Based on weighted average life of debt 2 Last 12 months Consolidated EBITDA 554 3,965 5,094
Additional Debt Information Note: All amounts in millions of Philippine Pesos, except percentages and ratios 1 U.S. dollar debt converted using end-of-period exchange rates 2 Includes leases, in accordance with Philippine Financial Reporting Standards (PFRS) 3 Based on BDO Loan Facility financial covenants which we are required to comply commencing on June 30, 2021
Definitions PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products. Operating EBITDA Operating earnings before other expenses, net, plus depreciation and operating amortization. Free Cash Flow 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 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, Strategic capital expenditures investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs. Change in Working capital in the Free cash flow statements Only include trade receivables, trade payables, receivables and payables from and to related parties, other current receivables, inventories, other current assets, and other accounts payable and accrued expense. Net Debt Total debt (debt plus leases) minus cash and cash equivalents.
Contact Information Stock Information PSE: CHP Investor Relations In the Philippines +632 8849 3600 chp.ir@cemex.com