High Growth Building Solutions Company

Transcription

1 High Growth Building Solutions Company

2 Who we are CEMEX LatAm Holdings is a regional leader in the building solutions industry that provides high-quality products and reliable service to customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, Guatemala, and Brazil We encourage the development of the countries where we operate through innovative building solutions that foster well-being, meet the needs of our customers and create value for our stakeholders We are constantly evolving in order to become more flexible in our operations, more creative in our commercial offerings, more sustainable in our use of resources, more innovative in conducting our business, and more efficient in our capital allocation

3 Leading presence in a fast-growing region with solid fundamentals Geographic Presence Market Position () Cement Ready-mix Aggregates Colombia 2 2 Guatemala El Salvador Nicaragua Panama Panama 3 Costa Rica Colombia Costa Rica 2 3 Brazil Nicaragua 3 CLH s Operations Cement Plants 5 Cement Mills 4 Marine/River Terminals 2 Cement Capacity 7.6M tons Aggregates Quarries 2 Ready-mix Plants 67 Guatemala Source: CLH estimates. () Market positions as of December 202, based on cement installed capacity and ready-mix and aggregates production volumes. 2

4 Unique value creation strategy focused on solutions Five-Pillar Strategy CLH Portfolio of Solutions Agile, flexible and market-focused organization Innovation 2 Commercial strategy to support market expansion and higher value creation 3 Results-driven operation with superior productivity Housing Solutions Infrastructure Solutions 4 5 Full-dedication and commitment from highly talented pool of employees Excellent reputation and relationship with stakeholders Distributor Channel & Industrial Solutions Builder Solutions 3

5 With complementary and vertically integrated businesses We provide cement, concrete and aggregates, as well as a variety of products and services for construction Clay Limestone Clinker Cement Ready-mix concrete Iron ore Other materials (cementitious materials such as pozzolan slag and fly ash) Gypsum Aggregates Sand Gravel Water 4

6 Support from a global industry leader Increased operational efficiency through best practices sharing Outpacing competition in the use of alternative fuels & energy management R&D Energy & Alternative Fuels Product Innovation Allowing CLH s operations to offer differentiated products and services Global Sourcing Backoffice Branding Implementation of state-of-the-art IT infrastructure Leverage scale for supply agreements Positive Impact on Margins Best in class corporate services (treasury, legal, tax planning) Arms-length charge in return for CEMEX's services (5% of net sales) 5

7 Strong corporate governance Audit Committee Compensation & Nomination Committee Corporate Governance Committee Auditing 0% of shareholders can request an audit Shareholder Meetings Board of Directors 5% of shareholders can call a meeting and include items on the agenda of the ordinary meeting Jaime Elizondo Chairman of the Board of Directors of CLH and President of CEMEX SCA&C Relevant Transactions with Related Parties, including CEMEX To be voted by independent board members only, including lending to CEMEX Carlos Jacks CEO of CLH Any M&A activity that represents 25% of revenues or assets is subject to shareholder meetings and must be at arms length and priced at fair market value Highlights Corporate Areas & Country Heads Corporate governance under Spanish and Colombian regulations Board of Directors comprised of 9 members 3 independent members (33%) Committees are formed by a majority of independent members Management team to function independently Executives will be compensated with CLH stock Upheld to the highest Corporate Governance standards due to ultimate Parent s Sarbanes-Oxley compliance and NYSE and Bolsa Mexicana de Valores regulations Super-majority in board meetings Indebtedness, investments, acquisitions and disposals, exceeding EUR 50 million per year, the use of funds for different purposes other than debt repayment, as well as other transactions, will require approval from 2/3 of board members Asset Purchases from CEMEX Fixed amount of US$50 M in any given year, with possibility of rollover up to US$200 M due to Facilities Agreement limitations CLH has exclusivity to acquire assets in current portfolio except Brazil Corporate & Royalties Charge 5-year fixed agreement with CEMEX at arms-length (5% of net sales) 6

8 Sustainability is key to our business model Model is based on three objectives, reflected in 7 key priorities: Optimizing Value Creation Sustainable Construction Social Housing and Infrastructure Sustainability Model Managing Environmental Footprint Carbon Strategy Environment and Biodiversity Working with Stakeholders Health and Safety Strengthening our communities Stakeholder Involvement 7

9 Highly engaged and talented team Our values: Our behavior is based on: Collaboration. Working with others in the collective path to excellence Integrity. Always act with honesty, respect and responsibility Leadership. Visualize the future and guide our efforts towards service excellence and competitiveness Transparency Efficiency Coherence Accessibility Empowerment 8

10 delivering solid results Net Sales (US$M) Operating EBITDA () (US$M), %,592 Operating EBITDA as % of net sales 29.9% 34.4% % 34.5% 37.6% % % H2 H H2 H3 Breakdown By Country (2) Breakdown By Country (2) Other (3) 8% Costa Rica 8% 8% Panama 56% Colombia Other (3) 2% Costa Rica 8% 20% Panama 60% Colombia () Consolidated operating EBITDA reflects corporate & royalties charge equivalent to 5% of net sales for the corresponding period. (2) Sales breakdown by country is presented before eliminations. Operating EBITDA breakdown by country is presented on a pro forma basis excluding corporate charges. (3) Other countries include: Nicaragua, Guatemala, El Salvador and Brazil. 9

11 Contact Information Investor Relations Patricio Treviño Garza Ph: +57 ()

12 Disclaimer This presentation contains certain forward-looking statements and information relating to CEMEX Latam Holdings, S.A. and its subsidiaries (collectively, CEMEX Latam ), and CEMEX S.A.B. de C.V. ( CEMEX ), that are based on their knowledge of present facts, expectations and projections, circumstances and assumptions about future events. Many factors could cause the actual results, performance or achievements of CEMEX Latam to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic, political, governmental, and business conditions globally and in the countries in which CEMEX Latam operates, CEMEX Latam s ability to achieve anticipated cost savings, changes in interest rates, changes in inflation rates, changes in exchange rates, the cyclical activity of the construction sector generally, changes in cement demand and prices, CEMEX Latam s ability to benefit from government economic stimulus plans, changes in raw material and energy prices, changes in business strategy, changes in the prevailing regulatory framework, natural disasters and other unforeseen events and various other factors affecting CEMEX Latam and/or CEMEX. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or targeted. Forward-looking statements are made as of the date hereof, and CEMEX Latam and CEMEX do not intend, nor are they obligated, to update these forward-looking statements, whether as a result of new information, future events or otherwise. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS Copyright CEMEX Latam Holdings, S.A. and its subsidiaries.

13 High Growth Building Solutions Company