Cemex 2013 Annual Report Download - page 166

American Depositary Shares (ADSs) are a means for non-
U.S.-based corporations to list their ordinary equity on an
American stock exchange. Denominated in US dollars, they
confer full rights of ownership to the corporation’s underlying
shares, which are held on deposit by a custodian bank in the
company’s home country or territory. In relation to CEMEX,
Citibank, N.A. is the depositary of CEMEX’s ADSs and each ADS
represents 10 CPOs. The CEMEX ADSs are listed on the New
York Stock Exchange.
Free cash flow CEMEX defines it as operating EBITDA minus
net interest expense, maintenance capital expenditures, change
in working capital, taxes paid, and other cash items (net other
expenses less proceeds from the disposal of obsolete and/or
substantially depleted operating fixed assets that are no longer
in operation). Free cash flow is not a GAAP measure.
LIBOR (London Interbank Offered Rate) is a reference rate
based on the interest rates at which banks borrow unsecured
funds from other banks in London.
Maintenance capital expenditures CEMEX defines it as in-
vestments incurred with the purpose of ensuring the company’s
operational continuity. These include capital expenditures on
projects required to replace obsolete assets or maintain current
operational levels and mandatory capital expenditures, which
are projects required to comply with governmental regulations
or company policies. Maintenance capital expenditures is not a
GAAP measure.
Operating EBITDA CEMEX defines it as operating earnings
before other expenses, net, plus depreciation and amortization.
Operating EBITDA does not include revenues and expenses
that are not directly related to CEMEX’s main activity, or which
are of an unusual or non-recurring nature under International
Financial Reporting Standards (IFRS). Operating EBITDA is not a
GAAP measure.
Ordinary Participation Certificates (CPOs) are issued under
the terms of a CPO Trust Agreement governed by Mexican
law and represent two of CEMEX’s series A shares and one of
CEMEX’s series B shares. This instrument is listed on the Mexican
Stock Exchange.
pp equals percentage points.
Strategic capital expenditures CEMEX defines it as invest-
ments incurred with the purpose of increasing the company’s
profitability. These include capital expenditures on projects de-
signed to increase profitability by expanding capacity, and margin
improvement capital expenditures, which are projects designed
to increase profitability by reducing costs. Expansion capital
expenditures is not a GAAP measure.
TIIE (Tasa de Interés Interbancaria de Equilibrio) is a measure
of the average cost of funds in pesos in the Mexican interbank
money market.
Total debt CEMEX defines it as short-term and long-term debt
plus convertible securities, liabilities secured with account re-
ceivables and capital leases. Total debt is not a GAAP measure.
Net working capital CEMEX defines it as operating accounts
plus inventories minus operating accounts payable. Working
capital is not a GAAP measure.
bps (Basis Point) is a unit of percentage measure equal to
0.01%, used to measure the changes to interest rates, equity
indices, and fixed-income securities.
Aggregates are sand and gravel, which are mined from quarries.
They give ready-mix concrete its necessary volume and add
to its overall strength. Under normal circumstances, one cubic
meter of fresh concrete contains two metric tons of gravel and
sand.
Clean Development Mechanism (CDM) is a mechanism under
the Kyoto Protocol that allows Annex I countries to recognize
greenhouse gas emission reductions from projects developed in
Non-Annex I countries.
Clinker is an intermediate cement product made by sintering
limestone, clay, and iron oxide in a kiln at around 1,450 degrees
Celsius. One metric ton of clinker is used to make approximately
1.1 metric tons of gray Portland cement.
Fly ash is a combustion residue from coal-fired power plants
that can be used as a non-clinker cementitious material.
Gray Portland cement is a hydraulic binding agent with a com-
position by weight of at least 95% clinker and 0–5% of a minor
component (usually calcium sulfate). It can set and harden un-
derwater and, when mixed with aggregates and water, produces
concrete or mortar.
Installed capacity is the theoretical annual production capacity
of a plant; whereas effective capacity is a plant’s actual optimal
annual production capacity, which can be 10–20% less than
installed capacity.
Metric ton is the equivalent of 1.102 short tons.
Petroleum coke (petcoke) is a by-product of the oil refining
coking process.
Pozzolana is a fine, sandy volcanic ash.
Ready-mix concrete is a mixture of cement, aggregates, and
water.
Slag is the by-product of smelting ore to purify metals.
terms we use
Financial terms
Industry terms
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