UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of October, 2017

Commission File Number: 001-14946

CEMEX, S.A.B. de C.V.

(Translation of Registrant’s name into English)

 

 

Avenida Ricardo Margáin Zozaya #325, Colonia Valle del Campestre

San Pedro Garza García, Nuevo León, México 66265

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F    ☒    Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 

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Contents

 

1.	Press release issued by CEMEX Holdings Philippines in the Philippines dated October 27, 2017, announcing third quarter 2017 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

 

2.	Third quarter 2017 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

 

3.	Presentation regarding third quarter 2017 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

						CEMEX, S.A.B. de C.V.
						(Registrant)
Date: October 26, 2017				By:		/s/ Rafael Garza
						Name: Rafael Garza
						Title: Chief Comptroller

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EXHIBIT INDEX

 

EXHIBIT NO.		DESCRIPTION
1.		Press release issued by CEMEX Holdings Philippines in the Philippines dated October 27, 2017, announcing third quarter 2017 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).
2.		Third quarter 2017 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).
3.		Presentation regarding third quarter 2017 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

Exhibit 1

 

Media Relations		Investor Relations
Chito Maniago		Pierre Co
+632 849 3600		+632 849 3600
chito.maniago@cemex.com		pierre.co@cemex.com

 

CEMEX HOLDINGS PHILIPPINES REPORTS

THIRD QUARTER 2017 RESULTS

 

•

Domestic cement volume in third quarter of 2017 increased 2% compared to the same period last year. Sequentially, domestic cement volumes increased 4%.

 

•

Third quarter operating EBITDA grew 7% versus the second quarter, from PHP 753 million to PHP 803 million.

MANILA, PHILIPPINES. OCTOBER 27, 2017 – CEMEX HOLDINGS PHILIPPINES, INC. (“CHP”) (PSE: CHP), announced today that domestic cement volume for the third quarter increased 2% year-on-year and 4% sequentially. Year-to-date, domestic cement volume decreased by 3% compared to the previous year.

Financial expenses for the first nine months of 2017 declined by 39% versus the same period last year as a result of the refinancing of CHP’s U.S. dollar denominated loan with local debt. With the conversion and denomination to local currency, other financial expenses for the first half of the year (mostly foreign exchange losses) also declined 79% for the nine months of the year versus same period last year.

The company’s net income in the first nine months of 2017 declined by 63% versus the same period last year, from PHP 1,879 million to PHP 688 million. The decrease in net income for the first nine months was mainly the result of lower prices and volumes. Prices declined in response to heightened competitive conditions.

On a sequential basis, net income increased by 48% for the quarter.

Ignacio Mijares, President & CEO of CHP, said, “CEMEX remains committed to delivering the best building materials in the market today. The company is working hard to strengthen its position and continue being the trusted partner in building the nation. We are optimistic that our customer-centric approach will drive growth for our business. CEMEX is deeply committed to its customers, stakeholders, and investors.”

CHP is one of the leading cement producers in the Philippines, based on annual installed capacity. CHP produces and markets cement and cement products, such as ready-mix concrete and clinker, in the Philippines through direct sales using its extensive marine and land distribution network. Moreover, CHP’s cement manufacturing subsidiaries have been operating in the Philippines with well-established brands, such as “APO,” “Island,” and “Rizal,” each of which has a multi-decade history in the country.

 

1

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CHP is an indirect subsidiary of CEMEX, S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity. The shares of CEMEX, S.A.B. de C.V. are listed on the Mexican Stock Exchange and the New York Stock Exchange.

For more information on CHP, please visit website: www.cemexholdingsphilippines.com.

# # #

This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of CHP to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CHP does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, changes in business strategy, changes derived from events affecting CEMEX, S.A.B de C.V. and subsidiaries (“CEMEX”) and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CHP assumes no obligation to update or correct the information contained in this press release.

 

2

Exhibit 2

 

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Operating and Financial Highlights

 

 

 

 

		January - September																Third Quarter
		2017				2016				% var				2016				2017				2016				% var				2016
						Pro Forma1								Actual								Pro Forma1								Actual
Cement volume2			3.8				3.9				(2	%)			3.8				1.3				1.3				3	%			1.3
Net sales			16,561				19,009				(13	%)			19,009				5,572				6,290				(11	%)			6,290
Gross profit			7,215				9,531				(24	%)			9,531				2,323				3,453				(33	%)			3,453
as % of net sales			43.6	%			50.1	%			(6.5	pp)			50.1	%			41.7	%			54.9	%			(13.2	pp)			54.9	%
Operating earnings before other expenses, net			1,671				4,373				(62	%)			3,813				468				1,659				(72	%)			2,876
as % of net sales			10.1	%			23.0	%			(12.9	pp)			20.1	%			8.4	%			26.4	%			(18.0	pp)			45.7	%
Controlling Interest Net Income			688				1,879				(63	%)			1,403				202				983				(79	%)			1,360
Operating EBITDA			2,627				5,311				(51	%)			4,750				803				1,970				(59	%)			3,187
as % of net sales			15.9	%			27.9	%			(12.0	pp)			25.0	%			14.4	%			31.3	%			(16.9	pp)			50.7	%
Free cash flow after maintenance capital expenditures			1,502				3,888				(61	%)			3,151				675				1,143				(41	%)			1,807
Free cash flow			1,061				3,237				(67	%)			2,500				470				509				(8	%)			1,173
Net debt3			13,430				13,811				(3	%)			13,811				13,430				13,811				(3	%)			13,811
Total debt3			15,016				15,409				(3	%)			15,409				15,016				15,409				(3	%)			15,409
Earnings per share4			0.13				0.92				(86	%)			0.69				0.04				0.21				(81	%)			0.29

In millions of Philippine Pesos, except volumes and earnings per share

 

1	Refer to page 7 for information on pro forma adjustments

2	Cement volume is in millions of metric tons. It includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker

3	2016 U.S. dollar debt converted using end-of-period exchange rate of PHP 48.50

4	In Philippine Pesos

 

 

 

2017 Third Quarter Results		Page 2

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Operating Results

 

 

 

Domestic Gray Cement		January - September				Third Quarter				Third Quarter 2017
		2017 vs. 2016				2017 vs. 2016				vs. Second Quarter 2017
Volume			(3	%)			2	%			4	%
Price in USD			(16	%)			(19	%)			(6	%)
Price in PHP			(10	%)			(13	%)			(5	%)

Domestic gray cement volumes increased by 2% during the third quarter of 2017 compared with the same period last year. Sequential activity improved with cement volumes increasing by 4% versus the second quarter.

We estimate that positive demand, supported by a pick-up in infrastructure spending and stability in private sector construction, resulted in mid-single digit growth for the industry year-on-year.

Volumes also grew sequentially despite adverse weather, which affected logistics capabilities.

For the third quarter of 2017, domestic gray cement prices declined by 13% on a year-over-year basis and by 5% on a sequential basis. The decline in prices reflects heightened competitive conditions.

Import volume by traders was observed to have decelerated versus previous quarter.

 

2017 Third Quarter Results		Page 3

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Operating EBITDA, Free Cash Flow and Debt Information

 

 

 

Operating EBITDA and Free Cash Flow

 

		January - September																Third Quarter
		2017				2016				% var				2016				2017				2016				% var				2016
						Pro Forma1								Actual								Pro Forma1								Actual
Operating earnings before other expenses, net			1,671				4,373				(62	%)			3,813				468				1,659				(72	%)			2,876
+ Depreciation and operating			956				938								938				335				311								311
Operating EBITDA			2,627				5,311				(51	%)			4,750				803				1,970				(59	%)			3,187
- Net financial expenses			667				1,065								930				208				388								442
- Capital expenditures for maintenance			413				193								193				218				121								121
- Change in working Capital			(348	)			(684	)							(684	)			(406	)			111								111
- Taxes paid			424				852								852				118				226								465
- Other cash items (Net)			(31	)			(3	)							310				(9	)			(20	)							241
Free cash flow after maintenance capital			1,502				3,888				(61	%)			3,151				675				1,143				(41	%)			1,807
- Strategic Capital expenditures			441				651								651				204				634								634
Free cash flow			1,061				3,237				(67	%)			2,500				470				509				(8	%)			1,173

In millions of Philippine Pesos, except volumes and percentages

 

1	Refer to page 7 for information on pro forma adjustments

Debt Information

 

In millions of Philippine Pesos, except percentages

 

1	U.S. dollar debt converted using end-of-period exchange rate

 

2017 Third Quarter Results		Page 4

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Financial Results

 

 

 

Income Statement & Balance Sheet Information

CEMEX Holdings Philippines, Inc.

(Thousands of Philippine Pesos in nominal terms, except per share amounts)

 

		January - September																Third Quarter
		2017				2016				% var				2016				2017				2016				% var				2016
						Pro Forma1								Actual								Pro Forma1								Actual
INCOME STATEMENT
Net sales			16,561,253				19,008,531				(13	%)			19,008,531				5,571,912				6,290,282				(11	%)			6,290,282
Cost of sales			(9,346,142	)			(9,477,536	)			1	%			(9,477,536	)			(3,249,257	)			(2,836,843	)			(15	%)			(2,836,843	)
Gross profit			7,215,111				9,530,995				(24	%)			9,530,995				2,322,655				3,453,439				(33	%)			3,453,439
Operating expenses			(5,543,998	)			(5,157,812	)			(7	%)			(5,718,380	)			(1,854,279	)			(1,794,572	)			(3	%)			(577,893	)
Operating earnings before other expenses, net			1,671,113				4,373,183				(62	%)			3,812,615				468,376				1,658,867				(72	%)			2,875,546
Other income (expenses), net			31,100				2,942				957	%			(309,544	)			9,320				19,679				(53	%)			(241,020	)
Operating earnings			1,702,213				4,376,125				(61	%)			3,503,071				477,696				1,678,546				(72	%)			2,634,526
Financial expenses, net			(667,103	)			(1,065,363	)			37	%			(929,798	)			(208,491	)			(388,065	)			46	%			(441,802	)
Foreign exchange loss, net			(157,208	)			(875,039	)			82	%			(875,039	)			(27,881	)			(539,650	)			95	%			(539,650	)
Net income before income taxes			877,902				2,435,723				(64	%)			1,698,234				241,324				750,831				(68	%)			1,653,074
Income tax			(189,941	)			(556,693	)			66	%			(294,777	)			(39,416	)			232,364				N/A				(293,264	)
Consolidated net income			687,961				1,879,030				(63	%)			1,403,457				201,908				983,195				(79	%)			1,359,810
Non-controlling Interest Net Income			21				19				11	%			19				6				5				20	%			5
Controlling Interest Net Income			687,982				1,879,049				(63	%)			1,403,476				201,914				983,200				(79	%)			1,359,815
Operating EBITDA			2,627,458				5,310,771				(51	%)			4,750,203				803,331				1,970,038				(59	%)			3,186,718
Earnings per share			0.13				0.92				(86	%)			0.69				0.04				0.21				(81	%)			0.29

 

1	Refer to page 7 for information on pro forma adjustments

 

		as of September 30
		2017				2016				% Var
BALANCE SHEET
Total Assets			51,162,429				51,006,618				0	%
Cash and Temporary Investments			1,586,345				1,597,701				(1	%)
Trade Accounts Receivables			999,675				1,029,637				(3	%)
Other Receivables			76,556				241,616				(68	%)
Inventories			3,046,854				2,369,551				29	%
Other Current Assets			756,107				1,316,368				(43	%)
Current Assets			6,465,537				6,554,873				(1	%)
Fixed Assets			15,690,808				15,702,412				(0	%)
Other Assets			29,006,084				28,749,333				1	%
Total Liabilities			21,721,917				22,250,071				(2	%)
Current Liabilities			6,030,449				5,901,049				2	%
Long-Term Liabilities			14,842,169				15,535,356				(4	%)
Other Liabilities			849,299				813,666				4	%
Consolidated Stockholders’ Equity			29,440,512				28,756,547				2	%
Non-controlling Interest			225				251				(10	%)
Stockholders’ Equity Attributable to Controlling Interest			29,440,287				28,756,296				2	%

 

2017 Third Quarter Results		Page 5

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Financial Results

 

 

 

Income Statement & Balance Sheet Information

CEMEX Holdings Philippines, Inc.

(Thousands of U.S. Dollars, except per share amounts)

 

		January - September																Third Quarter
		2017				2016				% var				2016				2017				2016				% var				2016
						Pro Forma1								Actual								Pro Forma1								Actual
INCOME STATEMENT
Net sales			329,199				403,331				(18	%)			403,331				109,651				132,716				(17	%)			132,716
Cost of sales			(185,779	)			(201,098	)			8	%			(201,098	)			(63,943	)			(59,853	)			(7	%)			(59,853	)
Gross profit			143,420				202,233				(29	%)			202,233				45,708				72,863				(37	%)			72,863
Operating expenses			(110,202	)			(109,441	)			(1	%)			(121,335	)			(36,491	)			(37,863	)			4	%			(12,193	)
Operating earnings before other expenses, net			33,218				92,792				(64	%)			80,898				9,217				35,000				(74	%)			60,670
Other income (expenses), net			618				62				897	%			(6,568	)			183				415				(56	%)			(5,085	)
Operating earnings			33,836				92,854				(64	%)			74,330				9,400				35,415				(73	%)			55,585
Financial expenses, net			(13,260	)			(22,605	)			41	%			(19,729	)			(4,103	)			(8,188	)			50	%			(9,321	)
Foreign exchange loss, net			(3,125	)			(18,567	)			83	%			(18,567	)			(549	)			(11,386	)			95	%			(11,386	)
Net income before income taxes			17,451				51,682				(66	%)			36,034				4,748				15,841				(70	%)			34,878
Income tax			(3,776	)			(11,812	)			68	%			(6,255	)			(776	)			4,903				N/A				(6,187	)
Consolidated net income			13,675				39,870				(66	%)			29,779				3,972				20,744				(81	%)			28,691
Non-controlling Interest Net Income
Controlling Interest Net Income			13,675				39,870				(66	%)			29,779				3,972				20,744				(81	%)			28,691
Operating EBITDA			52,228				112,686				(54	%)			100,792				15,809				41,565				(62	%)			67,235
Earnings per share

 

1	Refer to page 7 for information on pro forma adjustments

 

		as of September 30
		2017				2016				% Var
BALANCE SHEET
Total Assets			1,006,838				1,051,683				(4	%)
Cash and Temporary Investments			31,218				32,942				(5	%)
Trade Accounts Receivables			19,673				21,230				(7	%)
Other Receivables			1,507				4,982				(70	%)
Inventories			59,960				48,857				23	%
Other Current Assets			14,880				27,142				(45	%)
Current Assets			127,238				135,152				(6	%)
Fixed Assets			308,783				323,761				(5	%)
Other Assets			570,817				592,770				(4	%)
Total Liabilities			427,471				458,764				(7	%)
Current Liabilities			118,674				121,671				(2	%)
Long-Term Liabilities			292,082				320,317				(9	%)
Other Liabilities			16,715				16,777				(0	%)
Consolidated Stockholders’ Equity			579,367				592,918				(2	%)
Non-controlling Interest			4				5				(23	%)
Stockholders’ Equity Attributable to Controlling Interest			579,363				592,913				(2	%)

 

2017 Third Quarter Results		Page 6

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Definitions of Terms and Disclosures

 

 

 

 

2017 Third Quarter Results		Page 7

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Definition of Terms and Disclosures

 

 

 

		January - September								Third Quarter								January - September
		2017				2016				2017				2016				2017				2016
		average				average				average				average				End of period				End of period
Philippine peso			50.31				47.13				50.82				47.40				50.82				48.50

Amounts provided in units of local currency per US dollar

 

2017 Third Quarter Results		Page 8

Exhibit 3

    

    

 

 

3Q 2017 RESULTS October 27, 2017

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This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect current expectations and projections about future events of CEMEX Holdings Philippines, Inc. (“CHP”) based on CHP’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CHP’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CHP or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CHP’s exposure to other sectors that impact CHP’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CHP operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CHP’s ability to satisfy its debt obligations and the ability of CEMEX, S.A.B. de C.V. (“CEMEX”), the ultimate parent company of the major shareholder of CHP, to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; expected refinancing of CEMEX’s existing indebtedness; the impact of CEMEX’s below investment grade debt rating on CHP’s and CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CHP’s cost-reduction initiatives and implement CHP’s pricing initiatives for CHP’s products; the increasing reliance on information technology infrastructure for CHP’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CHP’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CHP’s business. The information contained in these presentations is subject to change without notice, and CHP is not obligated to publicly update or revise forward-looking statements. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CHP’s prices for products sold or distributed by CHP or its subsidiaries. Copyright CEMEX Holdings Philippines, Inc. and its subsidiaries

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Domestic Cement Volumes and Prices 9M17 vs.    3Q17 vs.    3Q17 vs.    Net Sales1 9M16 3Q16 2Q17 -13% Volume (3%) 2% 4% Domestic -11% Price (USD) (16%) (19%) (6%) Cement 19,009 16,561 Price (PHP) (10%) (13%) (5%) 6,290 5,572 3Q16 3Q172 9M16 9M17 Domestic cement volumes increased 2% year-on-year during the third quarter. Sequential activity improved with volumes increasing 4% versus prior quarter. • We estimate that positive demand, supported by a pick-up in infrastructure spending and stability in private sector construction, resulted in mid-single digit growth for the industry year-on-year. • Sequential volume growth despite adverse weather, which affected logistics capabilities. Domestic cement prices during 3Q17 declined by 13% year-over-year and by 5% sequentially. The decline in prices reflect heightened competitive conditions. Import volume by traders was observed to have decelerated versus previous quarter. 1 Millions of Philippine Pesos 3 2 3Q17 net sales breakdown: 99% cement, 1% others

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Residential Sector The residential sector appears to have sustained its Remittances growth in the third quarter of 2017. (US$ Billion)1 +5% Steady inflation and low interest rate environment +11% 18.6 +6% +8% +9% +3% +6% +7% prevailing. -6% 2.6 17.6 2.5 2.5 2.4 2.2 2.3 2.3 2.3 2.3 2.2 2.1 2.2 2.1 2.2 2.1 2.0 Housing deficit will support continuing investments into residential construction, sustained by income-boosting remittances from overseas Filipino workers and the government’s emphasis on Jan Feb Mar Apr May Jun Jul Aug Jan-Aug low-income/socialized housing. 2016 2017 1 4

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Industrial-and-Commercial Sector Information Technology and Industrial and commercial construction grew Business Process Outsourcing Revenues moderately in the third quarter compared to the (US$ Billion)2 same period last year. +9% Lower office take-up from the business process +18% outsourcing sector observed while the online 27.7 25.4 gaming segment is becoming a new source of 22.3 18.5 demand.1 15.3 2013 2014 2015 2016 2017E 1Source: Leechiu Property Consultants 5 2 Information and Technology, Business Processing Association of the Philippines

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Infrastructure Sector National Government Disbursements National government disbursements picked (PHP billion)1 up in the third quarter as government agencies continued catching up on Infrastructure implementation delays encountered at the and Capital Outlay start of the year. Others • Sustained double-digit year-on-year +5% spending growth from May to August 2017 +8% 2,686 suggests that the government has gotten 2,549 522 past the post-election transition period. 2,015 493 1,860 391 352 2,056 2,164 1,508 1,623 Jan-Sep Jan-Sep 2016 2017E2 2016 2017 1 Source: Department of Budget and Management; (DBM) 6 2 Annualized first nine months of 2017

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Cost of Sales Millions of Percentage Philippine Pesos of Net Sales Cost of sales, as a percentage of net sales, increased 13.2 percentage points during the quarter, due to +13.2pp +6.5pp higher fuel prices, timing differences in -1% the recognition of annual shutdown expenses, as well as the effect of lower prices. +15% 58.3% 56.4% 9,478 9,346 45.1% 49.9% 2,837 3,249 3Q16 3Q17 9M16 9M17 3Q16 3Q17 9M16 9M17 7

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Operating Expenses Distribution1 Selling and Administrative1 Distribution expenses, as a percentage of sales, increased for the quarter due to higher fuel cost and lower utilization of logistics assets. +9% +6% Selling and administrative expenses, as a percentage of net sales, stayed at a similar level compared to same quarter +11% 3,243 last year. 2,987 -6% 2,171 2,301 In absolute terms, S&A expenses was lower by PHP 50 million as marketing 1,015 1,125 779 729 promotions, and other overhead expenses decreased. 3Q16 3Q17 9M16 9M17 3Q16 3Q17 9M16 9M17 Pro Pro Pro Pro On a sequential basis, S&A expenses Forma Forma Forma Forma decreased 11%. % of 16.1% 20.2% 15.7% 19.6% 12.4% 13.1% 11.4% 13.9% Net Sales 1 Millions of Philippine Pesos 8 NOTE: Refer to slide 21 for information on pro forma adjustments

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Operating EBITDA and Operating EBITDA Margin Millions of Percentage Philippine Pesos of Net Sales Operating EBITDA declined during the quarter, mainly resulting from lower prices. Higher fuel and -51% -16.9pp distribution costs, as well as increased -12.0pp maintenance cost also contributed to this decline. -59% On a sequential basis, operating EBITDA grew by 7% versus the 5,311 31.3% 27.9% second quarter. 1,970 2,627 14.4% 15.9% 803 Operating EBITDA margin declined 3Q16 3Q17 9M16 9M17 3Q16 3Q17 9M16 9M17 by 16.9pp in the third quarter. Lower prices account for ~70% of the margin Pro Pro Pro Pro Forma Forma Forma Forma decrease. NOTE: Refer to slide 21 for information on pro forma adjustments 9

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Net Income Net income year-to-date declined by 63% mainly due to Net Income1 lower operating earnings before other expenses, net. On a sequential basis, net income increased by 48% versus previous quarter. -63% Financial expenses during the first nine months declined 37% as a result of the refinancing of CHP’s U.S. dollar denominated -79% loan with local debt. With the conversion and denomination to local currency, 1,879 foreign exchange losses also declined 82% in the first nine 983 months. 688 202 Effective tax rate for the first nine months was at 21.6% 3Q16 3Q172 9M16 9M17 versus 22.9% last year. Pro Pro Forma Forma 10 1 Millions of Philippine Pesos

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3Q 2017 FREE CASH FLOW & GUIDANCE

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Free Cash Flow January—September Third Quarter Free cash flow after maintenance 2017 2016 2017 2016 capex during the quarter reached PHP % var % var Pro Forma Pro Forma 675 M, a 41% decline year over year, Operating EBITDA 2,627 5,311 (51%) 803 1,970 (59%) reflecting lower EBITDA mitigated by    —Net Financial Expenses 667 1,065 208 388 lower financial expenses, an    —Maintenance Capex 413 193 218 121 improvement in working capital, and lower taxes.    —Change in Working Capital (348) (684) (406) 111    —Taxes Paid 424 852 118 226    —Other Cash Items (net) (31) (3) (9) (20) Free cash flow conversion (after Free Cash Flow after maintenance capex) improved from 1,502 3,888 (61%) 675 1,143 (41%) 58% to 84% in the third quarter versus Maintenance Capex same period last year.    —Strategic Capex 441 651 204 634 Free Cash Flow 1,061 3,237 (67%) 470 509 (8%) Millions of Philippine Pesos NOTE: Refer to slide 21 for information on pro forma adjustments 12

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Solid Plant Capacity Expansion New line expected to start operations in the fourth quarter of 2019. Expected total investment: US$ 225 million

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2017 Guidance Cement volumes 1% PHP 918 million Maintenance CAPEX PHP 303 million Solid Plant Expansion CAPEX Capital expenditures PHP 291 million Other Strategic CAPEX PHP 1,512 million Total CAPEX

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Q&A SESSION 3Q 2017 RESULTS

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3Q 2017 APPENDIX

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Income Statement Information (Thousands of Philippine Pesos in nominal terms, except per share amounts) January—September Third Quarter INCOME STATEMENT 2017 2016 % var 2016 2017 2016 % var 2016 Pro Forma1 Actual Pro Forma1 Actual Net sales 16,561,253 19,008,531 (13%) 19,008,531 5,571,912 6,290,282 (11%) 6,290,282 Cost of sales (9,346,142) (9,477,536) 1% (9,477,536) (3,249,257) (2,836,843) (15%) (2,836,843) Gross profit 7,215,111 9,530,995 (24%) 9,530,995 2,322,655 3,453,439 (33%) 3,453,439 Operating expenses (5,543,998) (5,157,812) (7%) (5,718,380) (1,854,279) (1,794,572) (3%) (577,893) Operating earnings before other 1,671,113 4,373,183 (62%) 3,812,615 468,376 1,658,867 (72%) 2,875,546 expenses, net Other income (expenses), net 31,100 2,942 957% (309,544) 9,320 19,679 (53%) (241,020) Operating earnings 1,702,213 4,376,125 (61%) 3,503,071 477,696 1,678,546 (72%) 2,634,526                Financial expenses, net (667,103) (1,065,363) 37% (929,798) (208,491) (388,065) 46% (441,802)                Foreign exchange loss, net (157,208) (875,039) 82% (875,039) (27,881) (539,650) 95% (539,650) Net income before income taxes 877,902 2,435,723 (64%) 1,698,234 241,324 750,831 (68%) 1,653,074                Income tax (189,941) (556,693) 66% (294,777) (39,416) 232,364 N/A (293,264) Consolidated net income 687,961 1,879,030 (63%) 1,403,457 201,908 983,195 (79%) 1,359,810 Non-controlling Interest Net Income 21 19 11% 19 6 5 20% 5 Controlling Interest Net Income 687,982 1,879,049 (63%) 1,403,476 201,914 983,200 (79%) 1,359,815 Operating EBITDA 2,627,458 5,310,771 (51%) 4,750,203 803,331 1,970,038 (59%) 3,186,718 Earnings per share 0.13 0.92 (86%) 0.69 0.04 0.21 (81%) 0.29 1 Refer to slide 21 for information on pro forma adjustments 17

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Income Statement Information (Thousands of U.S. Dollars, except per share amounts) January—September Third Quarter INCOME STATEMENT 2017 2016 % var 2016 2017 2016 % var 2016 Pro Forma1 Actual Pro Forma1 Actual Net sales 329,199 403,331 (18%) 403,331 109,651 132,716 (17%) 132,716 Cost of sales (185,779) (201,098) 8% (201,098) (63,943) (59,853) (7%) (59,853) Gross profit 143,420 202,233 (29%) 202,233 45,708 72,863 (37%) 72,863 Operating expenses (110,202) (109,441) (1%) (121,335) (36,491) (37,863) 4% (12,193) Operating earnings before other 33,218 92,792 (64%) 80,898 9,217 35,000 (74%) 60,670 expenses, net Other income (expenses), net 618 62 897% (6,568) 183 415 (56%) (5,085) Operating earnings 33,836 92,854 (64%) 74,330 9,400 35,415 (73%) 55,585                Financial expenses, net (13,260) (22,605) 41% (19,729) (4,103) (8,188) 50% (9,321)                Foreign exchange loss, net (3,125) (18,567) 83% (18,567) (549) (11,386) 95% (11,386) Net income before income taxes 17,451 51,682 (66%) 36,034 4,748 15,841 (70%) 34,878                Income tax (3,776) (11,812) 68% (6,255) (776) 4,903 N/A (6,187) Consolidated net income 13,675 39,870 (66%) 29,779 3,972 20,744 (81%) 28,691 Non-controlling Interest Net Income Controlling Interest Net Income 13,675 39,870 (66%) 29,779 3,972 20,744 (81%) 28,691 Operating EBITDA 52,228 112,686 (54%) 100,792 15,809 41,565 (62%) 67,235 Earnings per share 1 Refer to slide 21 for information on pro forma adjustments 18

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Debt Information Maturity Profile1 Revolving Facility2 BDO Debt 6,656 Total Debt: PHP 15,016 Avg. life of debt: 5.1 years 3 5,027 Net Debt to EBITDA : 3.3x 1,664 1,214 35 140 140 140 20174 2018 2019 2020 2021 2022 2023 2024 1 Millions of Philippine Pesos 2 Pertains to Philippine Peso-denominated revolving facility with CEMEX Asia B.V. 3 Last 12 months Consolidated EBITDA 4 Maturity amount pertains only to BDO Debt 19

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Definitions 9M17 / 9M16 Results for the first nine months of the years 2017 and 2016, respectively; in some cases, as indicated on a pro forma basis. PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products. Operating EBITDA Operating earnings before other expenses, net, plus depreciation and operating amortization. Free Cash Flow Operating EBITDA minus net interest expense, maintenance and strategic 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), Maintenance Capital Investments incurred for the purpose of ensuring the company’s operational continuity. These include capital expenditures 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, Strategic capital investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on expenditures projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs. Change in Working capital in Only include trade receivables, trade payables, receivables and payables from and to related parties, other current the Free cash flow receivables, inventories, other current assets, and other accounts payable and accrued expense. statements Net Debt Total debt minus cash and cash equivalents. Imports Imports by traders. 20    

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Presentation of Pro Forma Financial Information (For the purpose of the below clarification, the term “Company” refers to CEMEX Holdings Philippines, Inc., “CHP” refers to the Company and its subsidiaries, and “CEMEX” refers CEMEX, S.A.B. de C.V. and its subsidiaries excluding CHP.) CEMEX Holdings Philippines, Inc. was incorporated on September 17, 2015 for purposes of the initial equity offering concluded on July 18, 2016 (the “IPO”). For accounting purposes, the group reorganization by means of which the Company acquired its consolidated subsidiaries was effective January 1, 2016. Several strategies discussed in the CHP primary offer prospectus (“the Prospectus”) were implemented upon conclusion of the initial equity offering: a) the new royalty scheme was implemented in July 2016 with retroactive effects as of January 1, 2016, and b) the new reinsurance scheme was incorporated prospectively effective August 1, 2016. These strategies are already in full effect in 2017. Nevertheless and for the convenience of the reader, and in order to present a comprehensive comparative operating information for the nine-month and the three-month periods ended September 30, 2017, CHP continued to use pro forma selected consolidated income statement information for the nine-month and the three-month periods ended September 30, 2016, intended in all cases and to the extent possible, to present the operating performance of CHP on a like-to-like basis under a “normalized” expected ongoing operation; therefore, as if the new royalty scheme and insurance agreements would have been effective from the beginning of 2016. In addition: (1) beginning fiscal year of 2017, a change in accounting treatment of the effects from the new reinsurance agreements is adopted recognizing the same as a reduction in operating expenses instead of an increase of revenue (which was the accounting treatment utilized in 2016). This change in accounting treatment is presented in this report’s Pro Forma consolidated income statement information for the nine-month and the three-month periods ended September 30, 2016. This difference in presentation does not have an effect on the reported Pro Forma operating income, reported Pro Forma Operating EBITDA or reported Pro Forma net income for the nine-month and the three-month periods ended September 30, 2016. (2) the Pro Forma selected consolidated income statement information for the nine-month and the three-month periods ended September 30, 2016 appearing in this report was prepared by (a) removing interest payments on short-term debt, and (b) annualizing long-term debt. 21

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Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP chp.ir@cemex.com