EX-99.2 3 d949699dex992.htm EXHIBIT 2 - 2Q2020 RESULTS Exhibit 2 - 2Q2020 Results

Exhibit 2

 

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2020 SECOND QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutierrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com

OPERATING AND FINANCIAL HIGHLIGHTS    LOGO

 

 

     January – June     Second Quarter  
     2020     2019     % var     l-t-l
% var		     2020     2019     % var     l-t-l
% var		  

Consolidated cement volume

      2,444       3,245       (25 %)        1,019       1,620       (37 %)   

Consolidated domestic gray cement volume

      2,261       2,912       (22 %)        974       1,459       (33 %)   

Consolidated ready-mix volume

      715       1,230       (42 %)        235       588       (60 %)   

Consolidated aggregates volume

      1,496       2,951       (49 %)        494       1,462       (66 %)   

Net sales

      362       507       (29 %)      (23 %)      148       249       (41 %)      (36 %) 

Gross profit

      141       194       (27 %)      (22 %)      54       91       (40 %)      (36 %) 

as % of net sales

      39.0 %      38.3 %      0.7pp         36.6 %      36.4 %      0.2pp    

Operating earnings (loss) before other expenses, net

      37       60       (37 %)      (34 %)      11       26       (58 %)      (54 %) 

as % of net sales

      10.3 %      11.8 %      (1.5pp )        7.3 %      10.3 %      (3.0pp )   

Controlling interest net income (loss)

      -20       11       N/A         11       -4       N/A    

Operating EBITDA

      75       100       (25 %)      (21 %)      29       46       (36 %)      (32 %) 

as % of net sales

      20.7 %      19.8 %      0.9pp         19.7 %      18.3 %      1.4pp    

Free cash flow after maintenance capital expenditures

      28       41       (32 %)        25       23       8 %   

Free cash flow

      27       40       (34 %)        25       21       19 %   

Net debt

      707       805       (12 %)        707       805       (12 %)   

Total debt

      785       834       (6 %)        785       834       (6 %)   

Earnings (loss) of continued operations per share

      (0.04 )      0.02       N/A         0.02       (0.01 )      N/A    

Shares outstanding at end of period

      557       557       0 %        557       557       0 %   

Employees

      4,156       4,128       1 %        4,156       4,128       1 %   

Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters.

In millions of US dollars, except volumes, percentages, employees, and per-share amounts.

Shares outstanding are presented in millions.

 

Consolidated net sales during the second quarter of 2020 declined by 41% in U.S.-dollar terms, or by 36% in local-currency terms, compared with those of the second quarter of 2019.

Cost of sales as a percentage of net sales during the second quarter decreased by 0.2pp from 63.6% to 63.4%, on a year-over-year basis.

Operating expenses as a percentage of net sales during the quarter increased by 3.2pp from 26.1% to 29.3%, compared with those of 2019.

Operating EBITDA during the second quarter of 2020 declined in U.S.- dollar and local-currency terms by 36% and 32%, respectively, compared with that of the second quarter of 2019.

Operating EBITDA margin during the second quarter of 2020 increased by 1.4pp, compared with that of the second quarter of 2019.

Controlling interest net income during the second quarter was US$11 million, compared with a loss of US$4 million during the same quarter of 2019.

Total debt declined by 6% during the quarter on a year-over-year basis, reaching US$785 million.

 

 

2020 Second Quarter Results    Page 2

OPERATING RESULTS    LOGO

 

 

 

Colombia

 

     January – June     Second Quarter  
     2020     2019     % var     l-t-l
% var		     2020     2019     % var     l-t-l
% var		  

Net sales

      169       250       (32 %)      (22 %)      67       122       (45 %)      (36 %) 

Operating EBITDA

      28       39       (28 %)      (18 %)      12       17       (32 %)      (23 %) 

Operating EBITDA margin

      16.7 %      15.7 %      1.0pp         17.4 %      14.1 %      3.3pp    

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
     January - June     Second Quarter     January - June     Second Quarter     January - June     Second Quarter  

Volume

      (27 %)      (40 %)      (40 %)      (57 %)      (42 %)      (62 %) 

Price (USD)

      (5 %)      (6 %)      (10 %)      (10 %)      (10 %)      (10 %) 

Price (local currency)

      9 %      9 %      3 %      3 %      3 %      4 % 

Year-over-year percentage variation.

In Colombia, construction activity during the quarter was impacted by the COVID-19 containment measures. During this period, our cement volumes declined by 40%. However, our volumes recovered during June as restrictions eased, declining a high-single digit on a year-over-year basis and improving significantly versus May. During June, we observed increased activity in 4G projects and in the self-construction sector.

Despite the volume decline, our cement prices during June reached the highest levels since September 2016. During the quarter, our cement prices improved by 9% year-over-year and by 1% sequentially, in local-currency terms.

Panama

 

     January – June     Second Quarter  
     2020     2019     % var     l-t-l
% var		     2020     2019     % var     l-t-l
% var		  

Net sales

      41       98       (58 %)      (58 %)      7       48       (86 %)      (86 %) 

Operating EBITDA

      7       24       (72 %)      (72 %)      -3       11       N/A       N/A  

Operating EBITDA margin

      16.8 %      24.9 %      (8.1pp )        -51.4 %      22.1 %      (73.5pp )   

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
     January - June     Second Quarter     January - June     Second Quarter     January - June     Second Quarter  

Volume

      (59 %)      (88 %)      (68 %)      (99 %)      (63 %)      (96 %) 

Price (USD)

      (6 %)      (5 %)      (6 %)      22 %      (5 %)      (6 %) 

Price (local currency)

      (6 %)      (5 %)      (6 %)      22 %      (5 %)      (6 %) 

Year-over-year percentage variation.

Panama is the country in the region with the most severe restrictions imposed to fight the COVID-19 crisis. Following government regulations, the construction industry and its supply chain were fully closed during April and May. Then, in early June, certain infrastructure projects and hardware stores could resume activities although with restrictions.

 

2020 Second Quarter Results    Page 3

OPERATING RESULTS    LOGO

 

 

 

Costa Rica

 

     January – June     Second Quarter  
     2020     2019     % var     l-t-l
% var		     2020     2019     % var     l-t-l
% var		  

Net sales

      46       55       (17 %)      (20 %)      20       27       (26 %)      (28 %) 

Operating EBITDA

      14       19       (24 %)      (26 %)      7       9       (27 %)      (29 %) 

Operating EBITDA margin

      31.4 %      34.1 %      (2.7pp )        32.1 %      32.5 %      (0.4pp )   

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
     January - June     Second Quarter     January - June     Second Quarter     January - June     Second Quarter  

Volume

      (10 %)      (15 %)      (23 %)      (35 %)      (66 %)      (60 %) 

Price (USD)

      (4 %)      (4 %)      (7 %)      (9 %)      90 %      39 % 

Price (local currency)

      (8 %)      (7 %)      (11 %)      (11 %)      82 %      35 % 

Year-over-year percentage variation.

In Costa Rica, our cement volumes during the second quarter declined by 15%, in line with the industry. Our volumes declined by 22% during April, then recovered during May and June. During the quarter, the impact of COVID-19 containment measures had a relatively mild impact on industry cement volumes, supported by the resilience of the self-construction sector.

Regarding cement pricing, our quarterly prices in local-currency terms improved by 1% sequentially. The increased price on a sequential basis partially reflects our price increase of around 4% for bagged cement, that we made effective on June 22.

Rest of CLH

 

     January – June     Second Quarter  
     2020     2019     % var     l-t-l
% var		     2020     2019     % var     l-t-l
% var		  

Net sales

      114       113       0 %      2 %      56       57       (0 %)      1 % 

Operating EBITDA

      37       33       15 %      17 %      20       15       29 %      31 % 

Operating EBITDA margin

      33.0 %      28.8 %      4.2pp         35.5 %      27.3 %      8.2pp    

In millions of US dollars, except percentages.

 

     Domestic gray cement     Ready-Mix     Aggregates  
     January - June     Second Quarter     January - June     Second Quarter     January - June     Second Quarter  

Volume

      5 %      5 %      (10 %)      (3 %)      (26 %)      (38 %) 

Price (USD)

      (4 %)      (4 %)      2 %      0 %      13 %      4 % 

Price (local currency)

      (2 %)      (2 %)      3 %      2 %      18 %      8 % 

Year-over-year percentage variation.

In Guatemala, we estimate that industry volumes declined a low- to mid-single digit during 2Q20, affected by lower formal construction activity in Guatemala City. However, our cement volumes improved during the second quarter due to our relatively low exposure to the formal sector, and to increased activity in our main markets.

In Nicaragua, we are encouraged by the improvement in construction activity observed during the quarter and the first half of the year. Our cement volumes increased by 9% during the quarter, driven by a mild reactivation of the self-construction sector, as well as by government-sponsored projects, such as a hospital, highways, and a social-housing complex.

 

2020 Second Quarter Results    Page 4

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION    LOGO

 

 

 

Operating EBITDA and free cash flow

 

     January - June     Second Quarter  
     2020     2019     % var     2020     2019     % var  

Operating earnings before other expenses, net

      37       60       (37 %)      11       26       (58 %) 

+ Depreciation and operating amortization

      38       41         18       20    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating EBITDA

      75       100       (25 %)      29       46       (36 %) 

- Net financial expense

      26       27         13       13    

- Capital expenditures for maintenance

      4       17         2       12    

- Change in working Capital

      19       (4 )        (2 )      (10 )   

- Taxes paid

      (4 )      24         (11 )      10    

- Other cash items (Net)

      2       (3 )        1       (3 )   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free cash flow after maintenance capital exp

      28       41       (32 %)      25       23       8 % 

- Strategic Capital expenditures

      1       1         0       1    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Free cash flow

      27       40       (34 %)      25       21       19 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

In millions of US dollars, except percentages.

Information on Debt

 

           Second Quarter           First
Quarter		  
     2020     2019     % var     2020  

Total debt 1,2

      785       834         766  

Short term

      6 %      17 %        1 % 

Long term

      94 %      83 %        99 % 
  

 

 

    

 

 

    

 

 

    

 

 

  

Cash and cash equivalents

      78       28       180 %      32  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net debt

      707       805       (12 %)      734  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net debt / EBITDA

      4.1x       3.6x         3.9x  
  

 

 

    

 

 

      

 

 

  

 

    

    

Second Quarter

  
     2020     2019  

Currency denomination

     

U.S. dollar

      96 %      99 % 

Colombian peso

      4 %      1 % 
  

 

 

    

 

 

  

Interest rate

     

Fixed

      61 %      58 % 

Variable

      39 %      42 % 
  

 

 

    

 

 

  
 

 

In millions of US dollars, except percentages.

 

1 

Includes leases, in accordance with International Financial Reporting Standards (IFRS).

2 

Represents the consolidated balances of CLH and subsidiaries.

 

2020 Second Quarter Results    Page 5

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Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in thousands of U.S. Dollars, except per share amounts

 

     January – June     Second Quarter  
INCOME STATEMENT    2020     2019     % var     l-t-l
% var		     2020     2019     % var     l-t-l
% var		  

Net sales

      362,353       507,182       (29 %)      (23 %)      148,128       248,958       (41 %)      (36 %) 

Cost of sales

      (221,013 )      (312,906 )      29 %        (93,847 )      (158,243 )      41 %   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      141,340       194,276       (27 %)      (22 %)      54,281       90,715       (40 %)      (36 %) 

Operating expenses

      (103,946 )      (134,608 )      23 %        (43,418 )      (65,011 )      33 %   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating earnings (loss) before other expenses, net

      37,394       59,668       (37 %)      (34 %)      10,863       25,704       (58 %)      (54 %) 

Other expenses, net

      (4,745 )      (8,093 )      41 %        (3,034 )      (8,156 )      63 %   
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

Operating earnings (loss)

      32,649       51,575       (37 %)        7,829       17,548       (55 %)   

Financial expenses

      (26,474 )      (27,007 )      2 %        (13,194 )      (13,151 )      (0 %)   

Other income (expenses), net

      (21,558 )      (5,887 )      (266 %)        17,160       (8,659 )      n/a    
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

Net income (loss) before income taxes

      (15,383 )      18,681       n/a         11,795       (4,262 )      n/a    

Income tax

      (4,493 )      (7,538 )      40 %        (1,184 )      (235 )      (405 %)   
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

Consolidated net income (loss)

      (19,876 )      11,143       n/a         10,611       (4,497 )      n/a    

Non-controlling interest net income

      86       (9 )      n/a         17       30       (43 %)   
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

Controlling Interest Net Income (loss)

      (19,790 )      11,134       n/a         10,628       (4,467 )      n/a    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating EBITDA

      75,054       100,176       (25 %)      (21 %)      29,252       45,538       (36 %)      (32 %) 

Earnings (loss) of continued operations per share

      (0.04 )      0.02       n/a         0.02       (0.01 )      n/a    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     as of June 30  
BALANCE SHEET    2020      2019      % var  

Total Assets

      2,861,981        3,033,689        (6 %) 

Cash and Temporary Investments

      78,360        28,300        177 % 

Trade Accounts Receivables

      61,748        82,911        (26 %) 

Other Receivables

      56,850        54,190        5 % 

Inventories

      74,793        80,023        (7 %) 

Other Current Assets

      24,510        27,566        (11 %) 

Current Assets

      296,261        272,990        9 % 

Fixed Assets

      1,024,614        1,170,711        (12 %) 

Other Assets

      1,541,106        1,589,988        (3 %) 
  

 

 

     

 

 

     

 

 

  

Total Liabilities

      1,390,363        1,479,606        (6 %) 

Current Liabilities

      254,823        403,749        (37 %) 

Long-Term Liabilities

      1,071,086        1,057,916        1 % 

Other Liabilities

      64,454        17,941        259 % 
  

 

 

     

 

 

     

 

 

  

Consolidated Stockholders’ Equity

      1,471,618        1,554,083        (5 %) 

Non-controlling Interest

      4,924        5,274        (7 %) 

Stockholders’ Equity Attributable to Controlling Interest

      1,466,694        1,548,809        (5 %) 
  

 

 

     

 

 

     

 

 

  

 

2020 Second Quarter Results    Page 6

OPERATING RESULTS    LOGO

 

 

 

Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in millions of Colombian Pesos in nominal terms, except per share amounts

 

     January - June     Second Quarter  
INCOME STATEMENT    2020     2019     % var     2020     2019     % var  

Net sales

      1,357,444       1,624,798       (16 %)      565,900       814,191       (30 %) 

Cost of sales

      (827,958 )      (1,002,418 )      17 %      (358,527 )      (517,518 )      31 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit

      529,486       622,380       (15 %)      207,373       296,673       (30 %) 

Operating expenses

      (389,400 )      (431,229 )      10 %      (165,874 )      (212,610 )      22 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating earnings (loss) before other expenses, net

      140,086       191,151       (27 %)      41,499       84,063       (51 %) 

Other expenses, net

      (17,775 )      (25,926 )      31 %      (11,590 )      (26,671 )      57 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating earnings (loss)

      122,311       165,225       (26 %)      29,909       57,392       (48 %) 

Financial expenses

      (99,177 )      (86,519 )      (15 %)      (50,405 )      (43,009 )      (17 %) 

Other income (expenses), net

      (80,761 )      (18,860 )      (328 %)      65,557       (28,321 )      n/a  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) before income taxes

      (57,627 )      59,846       n/a       45,061       (13,938 )      n/a  

Income tax

      (16,831 )      (24,149 )      30 %      (4,523 )      (771 )      (487 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Consolidated net income (loss)

      (74,458 )      35,697       n/a       40,538       (14,709 )      n/a  

Non-controlling interest net income

      321       (30 )      n/a       66       100       (34 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Controlling Interest Net Income (loss)

      (74,137 )      35,667       n/a       40,604       (14,609 )      n/a  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Operating EBITDA

      281,165       320,921       (12 %)      111,751       148,926       (25 %) 

Earnings (loss) of continued operations per share

      (134 )      64       n/a       73       (26 )      n/a  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     as of June 30  
BALANCE SHEET    2020      2019      % var  

Total Assets

      10,757,927        9,725,005        11 % 

Cash and Temporary Investments

      294,547        90,720        225 % 

Trade Accounts Receivables

      232,107        265,785        (13 %) 

Other Receivables

      213,694        173,715        23 % 

Inventories

      281,139        256,526        10 % 

Other Current Assets

      92,132        88,372        4 % 

Current Assets

      1,113,619        875,118        27 % 

Fixed Assets

      3,851,433        3,752,912        3 % 

Other Assets

      5,792,875        5,096,975        14 % 
  

 

 

     

 

 

     

 

 

  

Total Liabilities

      5,226,248        4,743,128        10 % 

Current Liabilities

      957,858        1,294,285        (26 %) 

Long-Term Liabilities

      4,026,117        3,391,329        19 % 

Other Liabilities

      242,273        57,514        321 % 
  

 

 

     

 

 

     

 

 

  

Consolidated Stockholders’ Equity

      5,531,679        4,981,877        11 % 

Non-controlling Interest

      18,506        16,908        9 % 

Stockholders’ Equity Attributable to Controlling Interest

      5,513,173        4,964,969        11 % 
  

 

 

     

 

 

     

 

 

  

 

2020 Second Quarter Results    Page 7

OPERATING RESULTS    LOGO

 

 

 

Operating Summary per Country

in thousands of U.S. dollars

Operating EBITDA margin as a percentage of net sales

 

NET SALES    January - June     Second Quarter  
     2020     2019     % var     l-t-l
% var		     2020     2019     % var     l-t-l
% var		  
                

Colombia

      168,640       249,651       (32 %)      (22 %)      66,905       121,585       (45 %)      (36 %) 

Panama

      41,184       97,856       (58 %)      (58 %)      6,668       47,832       (86 %)      (86 %) 

Costa Rica

      45,672       55,208       (17 %)      (20 %)      20,322       27,451       (26 %)      (28 %) 

Rest of CLH

      113,614       113,174       0 %      2 %      56,355       56,603       (0 %)      1 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Others and intercompany eliminations

      (6,757 )      (8,707 )      22 %      22 %      (2,122 )      (4,513 )      53 %      53 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL

      362,353       507,182       (29 %)      (23 %)      148,128       248,958       (41 %)      (36 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

GROSS PROFIT

                 

Colombia

      63,647       91,959       (31 %)      (20 %)      23,672       43,474       (46 %)      (38 %) 

Panama

      10,009       31,963       (69 %)      (69 %)      (3,487 )      14,154       N/A       N/A  

Costa Rica

      22,379       27,643       (19 %)      (22 %)      10,218       13,472       (24 %)      (26 %) 

Rest of CLH

      46,919       43,855       7 %      9 %      24,782       20,914       18 %      20 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Others and intercompany eliminations

      (1,614 )      (1,144 )      (41 %)      N/A       (904 )      (1,299 )      30 %      30 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL

      141,340       194,276       (27 %)      (22 %)      54,281       90,715       (40 %)      (36 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

OPERATING EARNINGS BEFORE OTHER EXPENSES, NET

                 

Colombia

      16,270       25,434       (36 %)      (29 %)      6,100       10,545       (42 %)      (33 %) 

Panama

      (1,080 )      15,693       N/A       N/A       (7,574 )      6,526       N/A       N/A  

Costa Rica

      11,946       16,474       (27 %)      (30 %)      5,228       7,808       (33 %)      (34 %) 

Rest of CLH

      33,580       28,638       17 %      19 %      18,234       13,373       36 %      38 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Others and intercompany eliminations

      (23,322 )      (26,571 )      12 %      12 %      (11,126 )      (12,548 )      11 %      11 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL

      37,394       59,668       (37 %)      (34 %)      10,863       25,704       (58 %)      (54 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

OPERATING EBITDA

                 

Colombia

      28,242       39,073       (28 %)      (18 %)      11,654       17,188       (32 %)      (23 %) 

Panama

      6,917       24,412       (72 %)      (72 %)      (3,429 )      10,570       N/A       N/A  

Costa Rica

      14,361       18,811       (24 %)      (26 %)      6,516       8,931       (27 %)      (29 %) 

Rest of CLH

      37,448       32,581       15 %      17 %      20,002       15,471       29 %      31 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Others and intercompany eliminations

      (11,914 )      (14,701 )      19 %      19 %      (5,491 )      (6,622 )      17 %      17 % 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

TOTAL

      75,054       100,176       (25 %)      (21 %)      29,252       45,538       (36 %)      (32 %) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

OPERATING EBITDA MARGIN

                 

Colombia

      16.7 %      15.7 %      l.0pp         17.4 %      14.1 %      3.3pp    

Panama

      16.8 %      24.9 %      (8.1pp )        -51.4 %      22.1 %      (73.5pp )   

Costa Rica

      31.4 %      34.1 %      (2.7pp )        32.1 %      32.5 %      (0.4pp )   

Rest of CLH

      33.0 %      28.8 %      4.2pp         35.5 %      27.3 %      8.2pp    
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

TOTAL

      20.7 %      19.8 %      0.9pp         19.7 %      18.3 %      1.4pp    
  

 

 

    

 

 

    

 

 

      

 

 

    

 

 

    

 

 

    

 

2020 Second Quarter Results    Page 8

OPERATING RESULTS    LOGO

 

 

 

Volume Summary

Consolidated volume summary

Cement and aggregates in thousands of metric tons

Ready mix in thousands of cubic meters

 

     January - June     Second Quarter  
     2020      2019      % var     2020      2019      % var  

Total cement volume 1

      2,444        3,245        (25 %)      1,019        1,620        (37 %) 

Total domestic gray cement volume

      2,261        2,912        (22 %)      974        1,459        (33 %) 

Total ready-mix volume

      715        1,230        (42 %)      235        588        (60 %) 

Total aggregates volume

      1,496        2,951        (49 %)      494        1,462        (66 %) 

 

1 

Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.

Per-country volume summary

 

DOMESTIC GRAY CEMENT    January - June     Second Quarter     Second Quarter 2020  
     2020 vs. 2019     2020 vs. 2019     vs. First Quarter 2020  

Colombia

      (27 %)      (40 %)      (29 %) 

Panama

      (59 %)      (88 %)      (83 %) 

Costa Rica

      (10 %)      (15 %)      (12 %) 

Rest of CLH

      5 %      5 %      1 % 
READY-MIX       

Colombia

      (40 %)      (57 %)      (47 %) 

Panama

      (68 %)      (99 %)      (99 %) 

Costa Rica

      (23 %)      (35 %)      (29 %) 

Rest of CLH

      (10 %)      (3 %)      (19 %) 
AGGREGATES       

Colombia

      (42 %)      (62 %)      (51 %) 

Panama

      (63 %)      (96 %)      (95 %) 

Costa Rica

      (66 %)      (60 %)      42 % 

Rest of CLH

      (26 %)      (38 %)      (13 %) 

 

2020 Second Quarter Results    Page 9

OPERATING RESULTS    LOGO

 

 

 

Price Summary

Variation in U.S. dollars

 

DOMESTIC GRAY CEMENT    January - June     Second Quarter     Second Quarter 2020  
     2020 vs. 2019     2020 vs. 2019     vs. First Quarter 2020  

Colombia

      (5 %)      (6 %)      (3 %) 

Panama

      (6 %)      (5 %)      0 % 

Costa Rica

      (4 %)      (4 %)      1 % 

Rest of CLH

      (4 %)      (4 %)      (0 %) 
READY-MIX       

Colombia

      (10 %)      (10 %)      (4 %) 

Panama

      (6 %)      22 %      28 % 

Costa Rica

      (7 %)      (9 %)      (1 %) 

Rest of CLH

      2 %      0 %      2 % 
AGGREGATES       

Colombia

      (10 %)      (10 %)      (2 %) 

Panama

      (5 %)      (6 %)      (3 %) 

Costa Rica

      90 %      39 %      (46 %) 

Rest of CLH

      13 %      4 %      (8 %) 

For Rest of CLH, volume-weighted average prices.

Variation in local currency

 

DOMESTIC GRAY CEMENT    January - June     Second Quarter     Second Quarter 2020  
     2020 vs. 2019     2020 vs. 2019     vs. First Quarter 2020  

Colombia

      9 %      9 %      1 % 

Panama

      (6 %)      (5 %)      0 % 

Costa Rica

      (8 %)      (7 %)      1 % 

Rest of CLH

      (2 %)      (2 %)      0 % 
READY-MIX       

Colombia

      3 %      3 %      (0 %) 

Panama

      (6 %)      22 %      28 % 

Costa Rica

      (11 %)      (11 %)      (1 %) 

Rest of CLH

      3 %      2 %      2 % 
AGGREGATES       

Colombia

      3 %      4 %      1 % 

Panama

      (5 %)      (6 %)      (3 %) 

Costa Rica

      82 %      35 %      (46 %) 

Rest of CLH

      18 %      8 %      (8 %) 

For Rest of CLH. volume-weighted average prices.

 

2020 Second Quarter Results    Page 10

DEFINITIONS OF TERMS AND DISCLOSURES    LOGO

 

 

 

Methodology for translation and presentation of results

Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement.

For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates are provided below.

Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.”

Consolidated financial information

When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries.

Presentation of financial and operating information

Individual information is provided for Colombia, Panama and Costa Rica.

Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador.

 

 

Exchange rates    January - June      January - June      Second Quarter  
     2020
EoP		      2019
EoP		      2020
average		      2019
average		      2020
average		      2019
average		  

Colombian peso

      3,758.91        3,205.67        3,746.19        3,203.58        3,820.34        3,270.40  

Panama balboa

      1.00        1.00        1.00        1.00        1.00        1.00  

Costa Rica colon

      583.49        583.64        577.49        600.09        577.29        591.09  

Euro

      0.91        0.86        0.91        0.83        0.91        0.85  

Amounts provided in units of local currency per US dollar.

 

2020 Second Quarter Results    Page 11

DEFINITIONS OF TERMS AND DISCLOSURES    LOGO

 

 

 

Definition of terms

Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation).

Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or internal policies.

Net debt equals total debt minus cash and cash equivalents.

Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization.

pp equals percentage points.

EoP equals End of Period.

Strategic capital expenditures investments incurred with the purpose of increasing CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.

Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables.

    

 

 

2020 Second Quarter Results    Page 12