Cemex 2012 Annual Report Download - page 23

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Focus on our core business of cement, ready-mix
concrete, and aggregates
Leveraging our global presence and extensive operations
worldwide, we plan to continue focusing on our core
business of cement, ready-mix concrete, and aggregates.
Our geographically diverse portfolio of assets positions
us for the expected recovery of key construction mar-
kets, providing us with the opportunity for significant
organic growth over the medium and long term. By man-
aging our cement, ready-mix concrete, and aggregates
operations as one vertically integrated business, we not
only capture a greater portion of the cement value chain,
but also get closer to our customers.
Provide our customers with the best value proposition
We want CEMEX to be the supplier of choice for our
customers—whether global construction companies or
individuals building their family’s first home. We look
to provide them with the most ecient and effective
building solutions for their construction project, large
or small. To this end, we tailor our products and ser-
vices to suit our customers’ specific needs in all major
construction segments, including the residential, com-
mercial, industrial, and infrastructure sectors.
We also see abundant opportunities to deepen our
customer relationships by focusing on more vertically
integrated building solutions rather than separate
products. By developing our integrated offerings, we
can provide customers with more reliable, higher-qual-
ity service and more consistent product quality.
Strengthen our capital structure and regain our
financial flexibility
We continue to focus on strengthening our capital
structure and regaining our financial flexibility by
reducing our debt, improving our cash flow genera-
tion, and extending our maturities through different
strategic initiatives. As a result of our efforts, we have
reduced total debt plus perpetual securities by ap-
proximately US$5.6 billion since June 2009.
In 2012, we refinanced close to US$6.7 billion of debt
under the Financing Agreement, dated as of August
14, 2009, as amended, into a new Facilities Agree-
ment with a final maturity in 2017 and US$500
million of new senior secured notes due 2018. The
new Facilities Agreement provides us with more flex-
ible operating and financial covenants. In addition, we
issued US$940 million in new senior secured notes
maturing in 2019 in exchange for approximately
US$452 million in perpetual debentures and US$619
million in 2014 Eurobonds. We also issued US$1.5
billion of new senior secured notes due 2022.
We have continued our asset sale process in order to
reduce our debt and streamline our operations. Dur-
ing 2012, we completed the initial share offering of
a 26.65% minority position in CEMEX Latam Hold-
ings, S.A., resulting in net proceeds of approximately
US$960 million. In addition, we raised US$227 mil-
lion in asset sales during 2012.
Moreover, we have continued to optimize our mainte-
nance and strategic capital expenditures to maximize
our free cash flow generation. In 2012, we limited our
maintenance and strategic capital expenditures to ap-
proximately US$609 million.
By managing our cement, ready-
mix concrete, and aggregates
operations as one vertically
integrated business, we not only
capture a greater portion of the
cement value chain, but also get
closer to our customers.
23
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