Cement Americas

SUM 2019

Cement Americas provides comprehensive coverage of the North and South American cement markets from raw material extraction to delivery and tranportation to end user.

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8 CEMENT AMERICAS • Summer 2019 • www.cementamericas.com CEMENTSCOPE ĂŐůĞDĂƚĞƌŝĂůƐKƵƚůŝŶĞƐWƌŽƉŽƐĞĚĞŵĞŶƚtĂůůďŽĂƌĚƵƐŝŶĞƐƐ^Ɖůŝƚ A strategic portfolio review initiated in early April has spawned a board-approved plan to separate Eagle Materi- als' principal businesses – portland cement and wallboard production –into independent, publicly traded corpora- tions. The proposed separation is scheduled for comple- tion during the first half of 2020, and will entail a tax-free spin-off of stock in Heavy Materials and Light Materials entities to Eagle shareholders. The standalone Heavy Materials business, which entails a Midwest cement plant system with complementary con- crete and aggregates operations, is expected to contin- ue to produce strong margins and significant cash flows. According to management, it will operate as a distinct pure-play, U.S.-only cement company with excellent future prospects as the largest domestically-owned producer. It will remain focused on low-cost production, operate in key U.S. geographies with favorable market dynamics, and drive profitable growth through both strategic acquisitions and organic development of its asset network. The Light Materials business is poised to continue as a benchmark gypsum wallboard and recycled paperboard producer, concentrated in Sun Belt states. "Historically, our Light and Heavy businesses have pro- vided balance and financial strength; however, the board recognized that our industry-leading performance is not adequately reflected in the market value of the com- bined company," explained Eagle Chairman Mike Nicolais. "Based upon our recent comprehensive review of vari- ous strategic, operational and financial alternatives, the board and management team believe this separation will provide each of the businesses with the financial flexibil- ity to pursue its own growth strategies and operating pri- orities, and develop the appropriate capital structure and allocation priorities to generate long-term growth for all shareholders." "We believe that by pursuing the[se] actions, the Eagle board is taking significant steps to unlock the company's inherent value," added Scott Ferguson, managing partner of New York-based investor Sachem Head and a catalyst in the portfolio review. "Given these developments and the substantial value creation potential, Sachem Head is with- drawing our director nominations and proposals, and we will fully support the board's recommendations at Eagle's 2019 meeting." ĞŵĞdžŽŵƉůĞƚĞƐĞŵĞdž'ŽĞƉůŽLJŵĞŶƚ Cemex announced it has successful- ly completed the deployment of its Cemex Go platform worldwide, setting the foundation for a higher standard of customer service in the global building materials industry. The digital solution automates order-to-cash workflows, enabling Cemex cus- tomers to purchase products, track deliveries and manage orders seamlessly in real time. Cemex Go was first rolled out in the United States in 2017, and customers have been quick to adopt the innovative, digital platform. Currently, close to 6,000 of the company's U.S. customers are using Cemex Go, and the platform has an adoption rate nationwide of 36%. Each month, Cemex Go has more than 12,000 active users in the U.S. Ignacio Madridejos, president of Cemex USA said, "Cemex Go has proven to be a game changer for our customers, allowing them to have better control of their business- es by providing them the information they need, anytime they need it. We're proud to be leading the way in digital technology in the building materials industry, innovating to provide a superior customer experience by creating a tool that's become essential for our customers." "And the digital innovation is just beginning," Madridejos continued. "CEMEX Go is constantly evolving. We are con- stantly listening to our customers to bring them features they want and need, enhancing our service while providing them with an unparalleled omnichannel experience." Globally, Cemex Go has reached the following significant milestones to date: • Now available in 21 countries. • 96% of the company's total recurring customers are using Cemex Go. • 45% of Cemex's total global sales are processed through Cemex Go. • More than 500,000 payments completed through the platform on an annualized basis. • 1.5 million deliveries using Cemex Go on an annualized basis. With Cemex Go, customers can control all aspects of their business relationship with Cemex, empowering them with self-reliance and complete control of their orders 24/7. Moreover, Cemex Go is a fully secure and trusted digital solution that makes customers' lives easier, gives quick access to detailed information, and provides in-depth ana- lytics and business insights, allowing them to make more informed decisions and streamline their experience.

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