Financing risk & Mitigation measures

• Cost of capital was a major issue for Mexican companies

• To fund operations in other countries, Cemex can now raise
funds at a cheaper rate due to less volatility
• Spain operations is a good example
With ownership, also
Investing in brownfield comes the debt
projects require premium responsibility. Leverage
payment ratios become high
International
Expansion entails
heavy cost Cemex partnered with AIG and a PE firm to set up a fund
Heavy modernisation Cement industry is an to invest in cement asset acquired in Asia
cost to upgrade the asset heavy business.
plants

The EBITDA margins are improving year on
year. Plus, the free cash flows is highest
among competitors. With expansion into
developing & developed economies, cash
flows may stabilize
•The standard deviation of quarterly cash flow margins
averaged when Cemex Internationalized
•Global expansion works as a Portfolio theory where one
can eliminate unsystematic risks