Caribbean n Cement Pete ter Donke kersloo rsloot General - - PowerPoint PPT Presentation

Pete ter Donke kersloo rsloot

General Manager

Caribbean n Cement Co Comp mpan any Limi mited ted

DIS ISCL CLAIM AIMER ER

• The purpose of this document is to provide analytical tools to CCCL (Caribbean Cement Company Limited) ("the Company” hereinafter)

for use in their own decisions

• The following document is strictly internal to the Company and shall not be copied, reproduced or circulated to third parties without
• permission. The contents of this document belongs exclusively to the Company and are private and confidential
• To perform the various analysis contained in this document, we have estimated market volumes, prices and calculations with the

Company's internal data or from public sources an contained in reports published by independent analysts as well as the information

• btained through the DD proceedings
• Any reference to costs, market positions, volumes and pricing of third parties have been made with the Company's estimates

considering also the information obtained in the DD

• This presentation contains analysis, comments, perceptions and value judgments (of the Company and third parties) that have been

made exclusively by the Company based on data compiled in this presentation and analysis above has not shared any information with third parties

• All users of this presentation have been informed of their obligation to strictly enforce the law and the provisions contained in the

CEMEX Code of Ethics

Ag Agen enda da

HI HISTOR ORY OUR R NEW BUSINES NESS PARTNE RTNER POST ME MERGER GER INTEGRATION GRATION PRO ROCES ESS OPORTUNI ORTUNITIES TIES AND RISK WHA HAT`S NEXT Q&A

Sha hare e pr price ce ev evol

• lution

ution in the n the pa past st 20 20 ye year ars

1999 2000

3,5

2013 2012

2,0 2,9

2017

32,5

2016

34,8

2015 2002

2,4 3,0 1,7 19,0

2014

2,4 9,5

2004

12,9

1998 2006

3,5

2007

8,9

2005

4,3

2003

3,1 3,0 4,0 1,0

2011 2009 2010

4,1

2008 2001 * As of 31st of December each year

1,558 1,351 1,726 256

• 3
• 2,672
• 2,984
• 2,242
• 241

572 2015 2012 2011 2014 2013 2017 2016 2008 2010 2009 Profit its s (loss

• ss) before
• re taxation
• n

(2008 8 – 2017; 7; M J J$)

Re Refle lected cted over r outst tstanding anding result ults s in in the pas ast t year ars s

Ag Agen enda da

HI HISTOR ORY OUR R NEW BUSINES NESS PARTNE RTNER POST ME MERGER GER INTEGRATION GRATION PRO ROCES ESS OPORTUNI ORTUNITIES TIES AND RISK WHA HAT`S NEXT Q&A

CE CEMEX X has as sho hown wn strong rong gr growt

• wth

h ov

• ver

r the e pas ast ~30 30 year ars

CEMEX’s sales and EBITDA evolution (US$ B, 1985-2017e)

00 98 97 90 92 89 85 91 86 87 88 03 02 93 94 01 04 95 96 16 13 11 14 17E 99 10 05 15 12 09 08 07 06 EBITDA Sales

13.7 2.6 .6 93 93 54 54 1,5 ,555 249 249 Net sales es (US$ S$ B) B) EBI BITD TDA A (US$ S$ B) B)

Cement ent Capac acity ity (MTPY TPY) Cement ent Plan ants ts Aggrega regates tes Qua uarrie rries Read ady-mix ix Plants ts

2016 6 Figur ures

CE CEMEX X to top p pr priorities

• rities gu

guide de ou

• ur st

strate ategy gy

8

HEALTH & SAFETY

• Zero for Life

RETURN TO INVESTMENT GRADE

• Regain financial flexibility

CUSTOMER CENTRICITY

• Reinforce our customer-focused culture

GLOBAL CEMEX

• Leverage knowledge across our operations

Ag Agen enda da

HI HISTOR ORY OUR R NEW BUSINES NESS PARTNE RTNER POST ME MERGER GER INTEGRATION GRATION PRO ROCES ESS OPORTUNI ORTUNITIES TIES AND RISK WHA HAT`S NEXT Q&A

We a e are on tr e on trac ack to to rea each ch

• ur target of ZERO LTI’s

Lost Time Injuries

5 4 2 3

Ou Our goal al

• 50%

2017 2016

• 50%

2015

10

Total Recordable Injuries

5 6 4 3 2 2

2015

• 25%

25%

Our goal 2016

0% 0%

2017

Direc rect Extern rnal al

“If you take care of your employees, the hey y wil ill l tak ake e ca care e of

• f you
• ur

r customers” JW JW Ma Marriot rriot

Fo Focus us on

• n fi

fixed ed cos

• sts

ts red eduction uction

571 607 2016 2,681 3,252 3,859 2015 2017

Fixed Cost M JA$ Fixed cost improvements:

• Scheduling maintenance

through preventive methodology

• Implementing a contractor

management strategy

• Redefining our structures

…decreasing Ja $ 1,2 B (~US$ 9,4 M) in 3 years

1,178

We h e hav ave e si sign gnifica ificantly ntly red educed uced ou

• ur wo

working ing cap apital tal

• 1,040

38 327 364 1,702 1,338 1,077 2016 2014 2015 2017

Working Capital Balance in $ Ja M End of period

Working Capital Improvements

• Decidedly reducing our

accounts receivables

• Focus on inventories

reduction and specially spare parts

• Supplier financing

program

38 8 1

• 23

WCAP Days

2,742

…releasing Ja $ 2,742 B (~US$ 21,4 M) in 3 years

Fi Findi nding ng th the e be best st al alte ternative rnative to to br bring ng ba back th the e as asse sets ts to to CC CCCL CL

• TCL lease

sed d asse sets s to CCCL for US$ 272 M

• 38 M U

US$ Write-Off ffs

• 52 MUS$ debt

t conv nverted ted to Prefe ference nce Shares res 2008 8 – 2010 Expansion nsion 2010 – 2013 Difficult ficult Times 2017 7 – 2018 Today

• Asse

set Valuat uation ion 122.9 .9 MUS

Consid nsideri ering ng that at at the end d of the e leas ase e the assets ets will sti till be owne ned d by by TCL, L, then en CCCL L assets ets acqui quisiti tion n becom

• me the

e best val alue ue for r mone

• ney

Back ckgro round

Asse set Acquis uisiti tion

• n Agreeme

ment nt

• Asse

set Price ce at March h 31st

st 118.3

.3 MUS$

• Excess Cash 10 – 15 M US$
• 3rd party Debt (J$)
• Amount: Max of ~US$40 M – 60 M (eq. in J$)
• Conditions:
• At competitive price
• No prepayment fees
• No collateral assets
• Intercompany Loan with TCL or CEMEX
• Prefe

ference nce redempt ption: ion: 40.5 5 MUSD

• To be paid through at least 1/3 of distributable

profits for a period not longer than 10 years.

Agree reemen ent

16

Ou Our cap apac acity ity to to sa sati tisfy sfy near ar fu futur ture demand and

1.407 1.400

1.216

2023

1.400

2027

1.400

2025 2026 2024

1.400 1.400

1.000

2021

1.200

1.103

2018

907

1.400

1.050 953

2020 2022

1.400

2019

1.200

1.158

…has spare room, of more than 2.0 Million tons to export after suppling the Jamaican Market for the next 10 years

Spare Capacity Demand increase 5%

8 8 7 11 9 8 7 5 5 5 5 12 5

202 021 202 020

12 12

201 017 201 018 201 019 201 015 201 016

19 19

201 013 201 014 201 012

13 13

M US$ - Annual al Capita tal l Investment stment

In Inve vesting sting in our n our As Asse sets ts to to en ensu sure re Op Oper erational ational Co Competitive petitivenes ness

Over $50 MM inv invested in in our operation sin since we to took over Reiterating our co commitment to to building of a a gre reater Jam amaica

Platfo atform rm Expans ansion

• n

Po Posi sitively tively impa pacting cting ov

• ver

er 20 200, 0,000 000 Ja Jamaic aicans ans by by inv nvesting esting $2 $200 00 MM JMD

Ac Achieve eved d our 20 2017 17 ob

• bje

jectives tives

HEALTH & SAFETY CORPORATE SOCIAL RESPONSABILITY REDUCTION OF FIXED COST WORKING CAPITAL

Objective

• More than 200.000 Jamaicans impacted
• Over 4000 hours of training
• Release more than US$ 21 M though WCAP
• Reduce LTI 75% and zero for direct employees

Result

LEASE

• Bring assets to CCCL ownership with the best financial

structure WORKFORCE DEVELOPMENT

• Reduced by $ 1.2 Billion (US$ 9.4 M)

Ag Agen enda da

HI HISTOR ORY OUR R NEW BUSINES NESS PARTNE RTNER POST ME MERGER GER INTEGRATION GRATION PRO ROCES ESS OPORTUNI ORTUNITIES TIES AND RISK WHA HAT`S NEXT Q&A

Jam amai aica a has as a a big opportunity

• rtunity in infr

frastruct astructure ure

Co Concrete ete pav avements ments so solutions utions wi with th si significa ificant nt ad advanta antages s ag agai ainst st as asphal halt

Superior Durability at Minimum Maintenance Significantly lower Cost Over the Full Life Cycle Reduced Heat Island Effect Reduced Vehicle Fuel Consumption

10 20 30

YEARS

CONCRETE ASPHALT

1 2 3 10 20 30 40

YEARS

Concrete Asphalt Maintenance Base Cost 100 Initial Cost

Normal (left) and thermographic (right) pictures of pavements:

Average Temperature Concrete: 33 33°C C (92°F) F) Average Temperature Asphalt: 49 49°C C (121 21°F) F)

Concre ncrete Aspha halt lt Concre ncrete Aspha halt lt

A 3% improvement of US fuel consumption would save around 46.5 MMt of CO2 yearly, the equivalent of a country like Denmark.

Op Operati ating ng Co Cost sts: s: ad additiona itional l sa saving ngs s beyond

• nd

mai aintena ntenance nce

The superb durability of concrete roads does not

• nly

lead to significantly lower maintenance costs compared to asphalt, it also ensures minimum interruption

• f
• peration,

which is a crucial factor particularly for toll roads. In addition, the physical characteristics of concrete result in potential savings in operating costs. Concrete is naturally brighter and more reflective than other pavement surfaces A concrete reflects up to three times more light than asphalt the lightning intensity can be reduced by up to 30% without compromising night vision

Gove vernment rnment has as mad ade housing sing its ts to top p pr priority

• rity
• Providing housing solution to

Jamaicans is a top priority for the government

• National Housing Trust expected to

deliver more than 22,000 by 2020

• More efficient building solutions

with innovation and new technologies

* Housing solutions in Dominican Republic and Mexico

Our r main in Ext xter ernal nal Chal alleng lenges es

• Low enforcement on CARICOM rules to

foster economy

• Crime

Regulat gulation ion Framewor work Economy nomy

• High Electricity Cost
• High Dependencies on

Fossil Fuel Energy gy Cost

• Avoidance of rules and regulations
• Importers with lower cost

structure

• New disruptive players

Competit ition ion

• Rain...

Flooding…Hurricanes

• Dust emissions

Environm

• nment

nt

• Substitute

technologies…. Technol hnology

• gy

Regul ulati tion Fram amewo ework rk Econo

• nomy

Comp mpeti etiti tion Environ

• nment

nt Techno hnology

• gy

Energy rgy Cost st

CCCL CCCL

• Increase in Devaluation
• Decrease in International Reserves

Ag Agen enda da

HI HISTOR ORY OUR R NEW BUSINES NESS PARTNE RTNER POST ME MERGER GER INTEGRATION GRATION PRO ROCES ESS OPORTUNI ORTUNITIES TIES AND RISK WHA HAT`S NEXT Q&A

“The road to success is always under construction” Li Lily ly Tom Tomli lin

Wh What at you should uld expect pect from

• m us?
• Zero
• Inciden

ents ts in o

• ur operat

rations

• ns
• Offer

fer a str trong

• ng valu

lue e pr prop

• posi
• sition

tion a sol

• lut

utio ions ns by by br brin ingi ging ng CEME MEX te technol hnology

• gy
• Fu

Further er invest st in our employe

• yees

es capabil pabilitie ies s devel elopment pment

• Continue

ue our of vertical ical integra ration

• n across

ross markets rkets

• Continue

ue focus us on protecti cting g and support rting ing the environ ronment ental al efforts forts and rul ules s and nd enh nhance nce ou

• ur soc
• cia

ial l respo ponsi nsibili bility ty com

• mmit

itmen ments ts

• Impro

rove ve our product ctivity vity to compet ete e in internat national ional marke rkets ts

Fo Follow low us us in soc n social al med edia

https:// s://ww www. w.fa facebook book.com .com /caribc ibcementja ntja/ https:// s://ww www. w.inst instagram gram.com .com/ caribc bcementj ntja/ https:// s://ww www. w.ca cari ribc bcement.com nt.com

Concretus House, Spain

Q&A Q&A