Concreat Holdings Philippines, Inc. · PSE:CHP
Concreat Holdings Philippines — CEMEX Holdings Philippines — Q3 2017 Earnings Presentation
22 slides from Concreat Holdings Philippines's earnings presentation, Oct 27, 2017
Slide 1: 3Q 2017 Results
3Q 2017 RESULTS October 27, 2017 1
Slide 2: Forward-looking statements
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 forw
Slide 3: Domestic Cement Volumes and Prices
Domestic Cement Volumes and Prices 9M17 vs. 3Q17 vs. 3Q17 vs. Net Sales1 9M16 3Q16 2Q17 -13% Volume (3%) 2% 4% -11% 19,009 Domestic 16,561 Price (USD) (16%) (19%) (6%) Cement 6,290 5,572 Price (PHP) (10%) (13%) (5%) 3Q16 3Q172 9M16 9M17 Domestic cement volumes increased 2% year-on-year during the th
Slide 4: Residential Sector
Residential Sector The residential sector appears to have sustained its Remittances growth in the third quarter of 2017. (US$ Billion)1 +5% Steady inflation and low interest rate environment +11% +6% +8% 18.6 +6% +7% prevailing. +9% +3% -6% 17.6 2.6 2.4 2.2 2.1 2.2 2.3 2.3 2.5 2.3 2.5 2.0 2.2 2.1 2.
Slide 5: Industrial-and-Commercial Sector
Industrial-and-Commercial Sector Information Technology and Industrial and commercial construction grew Business Process Outsourcing Revenues moderately in the third quarter compared to the (US$ Billion)2 same period last year. +9% Lower office take-up from the business process +18% outsourcing sect
Slide 6: Infrastructure Sector
Infrastructure Sector National Government Disbursements National government disbursements picked (PHP billion)1 up in the third quarter as government agencies continued catching up on Infrastructure and Capital Outlay implementation delays encountered at the Others start of the year. • Sustained dou
Slide 7: Cost of Sales
Cost of Sales Millions of Percentage Philippine Pesos of Net Sales Cost of sales, as a percentage of net sales, increased 13.2 percentage points during the quarter, due to +13.2pp +6.5pp higher fuel prices, timing differences in -1% the recognition of annual shutdown expenses, as well as the effect
Slide 8: Operating Expenses
Operating Expenses Distribution1 Selling and Administrative1 Distribution expenses, as a percentage of sales, increased for the quarter due to higher fuel cost and lower utilization of logistics assets. +9% +6% Selling and administrative expenses, as a percentage of net sales, stayed at a 3,243 simi
Slide 9: Operating EBITDA and Operating EBITDA Margin
Operating EBITDA and Operating EBITDA Margin Millions of Percentage Philippine Pesos of Net Sales Operating EBITDA declined during the quarter, mainly resulting from -51% lower prices. Higher fuel and -16.9pp distribution costs, as well as increased -12.0pp maintenance cost also contributed to this
Slide 10: Net Income
Net Income Net income year-to-date declined by 63% mainly due to Net Income1 lower operating earnings before other expenses, net. On a sequential basis, net income increased by 48% versus previous quarter. -63% Financial expenses during the first nine months declined 37% as a result of the refinanci
Slide 11: 3Q 2017 Free Cash Flow & Guidance
3Q 2017 FREE CASH FLOW & GUIDANCE 11
Slide 12: Free Cash Flow
Free Cash Flow January - September Third Quarter Free cash flow after maintenance 2017 2016 2017 2016 % var % var capex during the quarter reached PHP Pro Forma Pro Forma 675 M, a 41% decline year over year, Operating EBITDA 2,627 5,311 (51%) 803 1,970 (59%) reflecting lower EBITDA mitigated by - Ne
Slide 13: Solid Plant Capacity Expansion
Solid Plant Capacity Expansion New line expected to start operations in the fourth quarter of 2019. Expected total investment: US$ 225 million 13
Slide 14: 2017 Guidance
2017 Guidance Cement volumes 1% PHP 918 million Maintenance CAPEX PHP 303 million Solid Plant Expansion CAPEX Capital expenditures PHP 291 million Other Strategic CAPEX PHP 1,512 million Total CAPEX 14
Slide 15: Q&A Session
Q&A SESSION 3Q 2017 RESULTS 15
Slide 16: 3Q 2017 Appendix
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Slide 17: Income Statement Information (PHP)
Income Statement Information (Thousands of Philippine Pesos in nominal terms, except per share amounts) January - September Third Quarter INCOME STATEMENT 2017 2016 % var 2016 2017 2016 % var 2016 1 1 Pro Forma Actual Pro Forma Actual Net sales 16,561,253 19,008,531 (13%) 19,008,531 5,571,912 6,290,
Slide 18: Income Statement Information (USD)
Income Statement Information (Thousands of U.S. Dollars, except per share amounts) January - September Third Quarter INCOME STATEMENT 2017 2016 % var 2016 2017 2016 % var 2016 1 1 Pro Forma Actual Pro Forma Actual Net sales 329,199 403,331 (18%) 403,331 109,651 132,716 (17%) 132,716 Cost of sales (1
Slide 19: Debt Information
Debt Information Maturity Profile1 Revolving Facility2 BDO Debt 6,656 Total Debt: PHP 15,016 Avg. life of debt: 5.1 years Net Debt to EBITDA3: 3.3x 5,027 1,664 1,214 35 140 140 140 20174 2018 2019 2020 2021 2022 2023 2024 1 Millions of Philippine Pesos 2 Pertains to Philippine Peso-denominated revol
Slide 20: Definitions
Definitions 9M17 / 9M16 Results for the first nine months of the years 2017 and 2016, respectively; in some cases, as indicated on a pro forma basis. PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our prod
Slide 21: Presentation of Pro Forma Financial Information
Presentation of Pro Forma Financial Information (For the purpose of the below clarification, the term “Company” refers to CEMEX Holdings Philippines, Inc., “CHP” refers to the Company and its subsidiaries, and “CEMEX” refers CEMEX, S.A.B. de C.V. and its subsidiaries excluding CHP.) CEMEX Holdings P
Slide 22: Contact Information
Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP [email protected] 22
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