cemex com cemex global profile
play

www.cemex.com CEMEX global profile CEMEX worldwide is: One of - PowerPoint PPT Presentation

www.cemex.com CEMEX global profile CEMEX worldwide is: One of leaders in each of our core businesses: Cement, Concrete and Aggregates Largest concrete producer in the world Present in more than 50 nations, Trade relations with


  1. www.cemex.com

  2. CEMEX global profile CEMEX worldwide is: • One of leaders in each of our core businesses: Cement, Concrete and Aggregates • Largest concrete producer in the world • Present in more than 50 nations, Trade relations with more than 100 nations Key Figures, 2014 Key Figures, 2014 • Annual Sales US$ 15.7 billion • EBITDA, US$ 2.7 billion • Worldwide employees 44,000 Capacities, 2014 • Cement 94 million tons • Aggregates 168 million tons • Concrete 56 million m³ www.cemex.com 2

  3. CEMEX in the Baltics Timeline • 1906 – founded as Cementos Hidalgo • 1976 – listed Mexico stock exchange • 1980s – Enters USA market • 1990s (early) – Entry to Spain, Venezuela, Caribbean, Central America • 1990s (late) – Entry to Egypt, Philippines, Costa Rica, further expansion in USA Costa Rica, further expansion in USA • 1999 – listed on the NYSE • 2000s (early) – Entry to Thailand, Puerto Rico, Nicaragua… • 2005 – acquisition of RMC group (20 new markets, including Latvia) • 2007-2010 – investment into new production capacity in Latvia • 2008 – Acquisition of Rinker www.cemex.com 3

  4. CEMEX investment in Latvia Total investment • > € 330 million Operations • Cement plant (1) • Concrete plants (7) • Aggregates quarries (1 + 2) Key data Cement Concrete Aggregates Sauleskalns • EBITDA € 22 million Riga Broceni Liepaja Daugavpils www.cemex.com 4

  5. Expansion of exports post-crisis period Main export markets • • Russia Sweden • • Finland Belarus • Estonia www.cemex.com 5

  6. Benefits brought as an international investor • Capital investment – growth in exports, value add, jobs (direct, in-direct) • Transparency – tax compliance, code of ethics for all transactions • Ethical workplace – focus on safety, internal ethics code • Environmental responsibility – CO2, emissions, re-cultivation • Technology transfer – most advanced plant in the region, concrete roads • Investment in local comunities – charities, education, infrastructure www.cemex.com 6

  7. Example – CO2 footprint -37% 1,150 1,115 1,100 1,050 1,000 CO2 reduction equal to 950 emissions of ~200,000 cars 900 900 (driving 20,000km annual) (driving 20,000km annual) 850 800 766 750 725 700 650 600 Old plant 2008 EU benchmark New plant 2014 3rd period www.cemex.com 7

  8. Some positive points of doing business in Latvia • Generally good security (NATO member, public safety) • Access to Russia, Scandinavia, Baltics markets • EU membership, with legal framework and currency • Higher than average GDP growth for Europe • Labor cost benefits compared to Western Europe • Positioning as a European outpost with access to CIS www.cemex.com 8

  9. Issues facing CEMEX as investor in Latvia • Energy cost and MPC (OIK) • Reliability of infrastructure, especially roads • Weak enforcement leading to unfair competition: � Taxes and grey market � � Quality and certifications � Safety and regulation of transport • Competitivity of SOEs, especially rail transport • Legal system transparency and speed • Workforce skills and education www.cemex.com 9

  10. Example: Energy Cost and MPC (OIK) Electricity in production cost OIK evolution +209% 30 Electricity 20 10 Other 0 2008 2009 2010 2011 2012 2013 2014 2012 2012 2013 2013 2014 2014 2015 BGT 2015 BGT Renewable Cogeneration CEMEX energy cost, 2014 Electricity cost for large consumers Transmission OIK - renewable €/MWh* 78 77 76 80 61 59 52 60 50 42 40 33 32 40 18 OIK co-generation 20 7 0 Norway Latvia Poland Lithuania UK Estonia Bulgaria Germany France Finland Russia Sweden Siberia Power *KPMG study, 2012 www.cemex.com 10

  11. Example: Reliability of infrastructure Plant Limestone quarry Impacts: � Required for Cement production • Safety • Reliability � 30 km distance to quarry • Efficiency � ~ 400 truck trips (daily) • Cost � 1.8 million tons (annual) … of operations � Critical importance to operations www.cemex.com 11

  12. Example: Unfair competition in concrete market CEMEX Grey producers • Salaries with full social and income taxes • Cash salaries (avoid social charges, tax) • Trucks loaded to legal limits for deliveries • Overloaded trucks to save delivery costs • No cash deals – always including VAT • Cash deals w/o VAT for private customers • Only certified raw materials used • Only certified raw materials used • Purchase of non-certified materials • Purchase of non-certified materials • Transparent quality control, with additional • No quality control, provision of unsafe and safety margins under-spec products • Legal working time – in high / low season • Overtime in high season, unemployment in low Impacts: Impacts: ~20% cost advantage for grey producers due to lax enforcement ~20% cost advantage for grey producers due to lax enforcement More than €2 million unpaid tax in 2014 for Riga concrete market alone More than €2 million unpaid tax in 2014 for Riga concrete market alone Significant deterioration of road and building safety Significant deterioration of road and building safety www.cemex.com 12

  13. Example: Concrete market – social taxes Social tax paid per employee, €k, 2014 5.9 5.7 4.2 1.9 1.6 1.4 1.4 1.4 1.3 1.0 1.0 CEMEX Unfair competition www.cemex.com 13 Source: Publically available information

  14. www.cemex.com 14

Recommend


More recommend