Cemex 2013 Annual Report Download - page 151

Notes to the financial statements
Financial Covenants
TheFacilitiesAgreementrequiresthecompliancewithnancialratioscalculatedonaconsolidatedbasis,whichmainlyinclude:a)theratio
ofnetdebttooperatingEBITDA(“leverageratio”);andb)theratioofoperatingEBITDAtointerestexpense(“coverageratio”).Pursuantto
theFacilitiesAgreement,beginningonSeptember17,2012,ateachcompliancedate,nancialratiosshouldbecalculatedaccordingtothe
formulasestablishedinthedebtcontractsusingtheconsolidatedamountsunderIFRS.During2011,nancialratioswerecalculatedaccording
totheformulasestablishedintheFinancingAgreementusingtheconsolidatedamountsunderMFRS.Thedeterminationsofnancialratios
requireinmostcases
proforma adjustments,accordingtothedenitionsofthecontractsthatdifferedfromtermsdenedunderIFRSand
MFRS.
BasedontheFacilitiesAgreement,CEMEXmustcomplywithconsolidatednancialratiosandtestsunderIFRS,includingacoverageratiofor
eachperiodoffourconsecutivescalquarters(measuredsemi-annually)ofnotlessthan(i)1.50timesfortheperiodendingonDecember
31,2012uptoandincludingtheperiodendingonJune30,2014,(ii)1.75timesfromtheperiodendingonDecember31,2014uptoand
includingtheperiodendingonJune30,2015,(iii)1.85timesfortheperiodendingonDecember31,2015,(iv)2.0timesfortheperiod
endingonJune30,2016,and(v)2.25timesfortheperiodendingonDecember31,2016.Inaddition,theFacilitiesAgreementallows
CEMEXamaximumconsolidatedleverageratioforeachperiodoffourconsecutivescalquarters(measuredsemi-annually)nottoexceed:(i)
7.0timesforeachperiodfromtheperiodendingonDecember31,2012uptoandincludingtheperiodendingonDecember31,2013,(ii)
6.75timesfortheperiodendingonJune30,2014,(iii)6.5timesfortheperiodendingonDecember31,2014,(iv)6.0timesfortheperiod
endingonJune30,2015,(v)5.5timesfortheperiodendingonDecember31,2015,(vi)5.0timesfortheperiodendingonJune30,2016,
and(vii)4.25timesfortheperiodendingonDecember31,2016.Applicableduring2011,andresultingfromtheamendmentsmadetothe
originalFinancingAgreementonOctober25,2010,CEMEXhadtocomplywithconsolidatednancialratiosandtestsunderMFRS,including
acoverageratioofnotlessthan1.75timesfortheperiodsendedonDecember31,2011and2010.Inaddition,themaximumleverageratio
mustnothaveexceeded7.75timesfortheperiodendingDecember31,2010and7.0timesfortheperiodendingDecember31,2011.
CEMEX’sabilitytocomplywiththeseratiosmaybeaffectedbyeconomicconditionsandvolatilityinforeignexchangerates,aswellasby
overallconditionsinthenancialandcapitalmarkets.ForthecomplianceperiodsendedasofDecember31,2013,2012and2011,taking
intoaccounttheFacilitiesAgreementandtheamendedFinancingAgreement,asapplicableandbasedonitsIFRSandMFRSamounts,as
applicable,CEMEX,S.A.B.deC.V.anditssubsidiarieswereincompliancewiththenancialcovenantsimposedbyitsdebtcontracts.
ThemainconsolidatednancialratiosasofDecember31,2013,2012and2011wereasfollows:
IFRS Consolidated MFRS Consolidated
nancial ratios nancial ratios
2013 2012 2011
Leverageratio1, 2 Limit =<7.00 =<7.00 =<7.00
   Calculation 5.49 5.44 6.64
Coverageratio3 Limit >1.50 >1.50 >1.75
   Calculation 2.11 2.10 1.88
1 Theleverageratioiscalculatedinpesosbydividing“fundeddebt”byproformaOperatingincomebeforeotherexpenses,netplusdepreciationandamortization
(“OperatingEBITDA”)forthelasttwelvemonthsasofthecalculationdate.Fundeddebtequalsdebt,asreportedinthebalancesheetexcludingcapitalleases,
plusperpetualdebenturesandguarantees,plusorminusthefairvalueofderivativenancialinstruments,asapplicable,amongotheradjustments.
2 ProformaOperatingEBITDArepresents,allcalculatedinpesos,OperatingEBITDAforthelasttwelvemonthsasofthecalculationdate,plustheportionof
OperatingEBITDAreferringtosuchtwelve-monthperiodofanysignicantacquisitionmadeintheperiodbeforeitsconsolidationinCEMEX,minusOperating
EBITDAreferringtosuchtwelve-monthperiodofanysignicantdisposalthathadalreadybeenliquidated.
3 Thecoverageratioiscalculatedinpesosusingtheamountsfromthenancialstatements,bydividingthe
proforma OperatingEBITDAbythenancialexpense
forthelasttwelvemonthsasofthecalculationdate.Financialexpenseincludesinterestaccruedontheperpetualdebentures.
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