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 February, 2018
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): ☐
Contents
| 1. | Press release, dated February 8, 2018, announcing fourth quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | Fourth quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 3. | Presentation regarding fourth quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
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. | ||||||||||
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| (Registrant) | ||||||||||
| Date: | February 8, 2018 | By: | /s/ Rafael Garza | |||||||
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| Name: Rafael Garza Title: Chief Comptroller | ||||||||||
EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Press release, dated February 8, 2018, announcing fourth quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | Fourth quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 3. | Presentation regarding fourth quarter 2017 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
Exhibit 1
| Media Relations Jorge Pérez |
Investor Relations Eduardo Rendón |
Analyst Relations Lucy Rodriguez | ||
| +52(81) 8888-4334 mr@cemex.com |
+52(81) 8888-4256 ir@cemex.com |
+1(212) 317-6007 ir@cemex.com |
CEMEX REPORTS HIGHEST NET INCOME IN A DECADE
| • | Net income reached US$806 million in 2017, from US$750 million in 2016, and was the highest net income generation since 2007. |
| • | Free cash flow after maintenance capex for the full year was US$1.3 billion and conversion of EBITDA into free cash flow after maintenance capex reached 50%. |
| • | Total debt plus perpetual notes was reduced by US$2.1 billion during 2017, on a pro-forma basis. |
MONTERREY, MEXICO, FEBRUARY 8, 2018– CEMEX, S.A.B. de C.V. (“CEMEX”) (NYSE: CX), announced today that, on a like-to-like basis for the ongoing operations and adjusting for currency fluctuations, consolidated net sales increased by 4% during the fourth quarter of 2017 to US$3.4 billion, and increased 3% for the full year 2017 to US$13.7 billion versus the comparable periods in 2016. Operating EBITDA on a like-to-like basis decreased by 7% during the fourth quarter of 2017 to US$625 million and decreased by 6% for the full year to US$2.6 billion versus 2016.
CEMEX’s Consolidated Fourth-Quarter and Full-Year 2017 Financial and Operational Highlights
| • | The increase in quarterly consolidated net sales on a like-to-like basis was due to higher prices of our products, in local currency terms in Mexico, the U.S. and our Europe region, as well as higher volumes in our U.S., Europe and Asia, Middle East & Africa regions. |
| • | Operating earnings before other expenses, net, in the fourth quarter decreased by 10%, to US$410 million and decreased by 9%, to US$1.7 billion, for the full-year 2017. |
| • | Controlling interest net loss during the quarter was US$105 million from an income of US$214 million in the same period of 2016. Controlling interest net income for the full year improved to US$806 million from US$750 million in 2016. |
| • | Operating EBITDA on a like-to-like basis decreased by 7% and 6% during the quarter and the full year, respectively, to US$625 million and US$2.6 billion versus the comparable periods of 2016. |
| • | Operating EBITDA margin during the quarter decreased to 18.3% from 20.7% in the same period of 2016. For the full year, operating EBITDA margin decreased to 18.8% from 20.6% during 2016. |
| • | Free cash flow after maintenance capital expenditures for the quarter increased by 10% to US$680 million, compared to the same quarter of 2016. For the full year 2017, free cash flow after maintenance capital expenditures reached US$1.3 billion and conversion of EBITDA into free cash flow after maintenance capex reached 50%. |
Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said: “Although 2017 was a challenging year, our two largest markets, Mexico and the United States, performed well with like-to-like increases in their EBITDA. We also generated free cash flow after maintenance capex of close to US$1.3 billion, with a 50% EBITDA-to-free-cash-flow conversion rate and which, together with our asset-divestment initiatives, resulted in pro-forma debt reduction of close to US$2.1 billion during the year.
We had important headwinds during the year: underperformance in Colombia, Egypt and the Philippines as well as increased energy costs, mainly in Mexico. As we have done in the past, we focused on the variables we control to dampen these headwinds and we continued to deliver solid results.”
Consolidated Corporate Results
During the fourth quarter of 2017, controlling interest net loss was US$105 million, versus an income of US$214 million in the same period last year. Controlling interest net income for the full year improved to US$806 million from US$750 million in 2016.
Total debt plus perpetual notes decreased by US$209 million during the quarter. During 2017, total debt plus perpetual notes was reduced by approximately US$1.7 billion, which represents a 13% reduction from the debt level as of the end of 2016 and a 26% reduction compared to the end of 2015. On a pro-forma basis, including the payment of the 4.75% senior secured notes due 2022 outstanding aggregate principal amount, made on January 2018, total debt plus perpetual notes was reduced by US$2.1 billion during 2017.
Geographical Markets Fourth-Quarter 2017 Highlights
Net sales in our operations in Mexico increased 6% on a like-to-like basis in the fourth quarter of 2017 to US$781 million, compared with US$701 million in the fourth quarter of 2016. Operating EBITDA increased by 8% on a like-to-like basis to US$277 million versus the same period of last year.
CEMEX’s operations in the United States reported net sales of US$838 million in the fourth quarter of 2017, an increase of 4% on a like-to-like basis from the same period in 2016. Operating EBITDA decreased by 5% on a like-to-like basis to US$158 million in the quarter, versus US$180 million in the same quarter of 2016.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$452 million during the fourth quarter of 2017, representing a decrease of 3% on a like-to-like basis over the same period of 2016. Operating EBITDA decreased by 10% on a like-to-like basis to US$105 million in the fourth quarter of 2017, from US$108 million in the same quarter of 2016.
In Europe, net sales for the fourth quarter of 2017 increased by 5% on a like-to-like basis to US$911 million, compared with US$780 million in the fourth quarter of 2016. Operating EBITDA was US$99 million for the quarter, 9% higher on a like-to-like basis than the same period last year.
Operations in Africa, Middle East and Asia reported a 14% increase in net sales on a like-to-like basis for the fourth quarter of 2017, to US$363 million, versus the same quarter of 2016. Operating EBITDA for the quarter was US$53 million, 31% lower on a like-to-like basis from the same period last year.
CEMEX is a global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries. CEMEX has a rich history of improving the well-being of those it serves through innovative building solutions, efficiency advancements, and efforts to promote a sustainable future.
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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 CEMEX 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 CEMEX 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 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. CEMEX assumes no obligation to update or correct the information contained in this press release.
Operating EBITDA is defined as operating income plus depreciation and operating amortization. Free Cash Flow is defined as Operating EBITDA minus net interest expense, maintenance and expansion 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). Net debt is defined as total debt minus the fair value of cross-currency swaps associated with debt minus cash and cash equivalents. The Consolidated Funded Debt to Operating EBITDA ratio is calculated by dividing Consolidated Funded Debt at the end of the quarter by Operating EBITDA for the last twelve months. All of the above items are presented under the guidance of International Financial Reporting Standards as issued by the International Accounting Standards Board. Operating EBITDA and Free Cash Flow (as defined above) are presented herein because CEMEX believes that they are widely accepted as financial indicators of CEMEX’s ability to internally fund capital expenditures and service or incur debt. Operating EBITDA and Free Cash Flow should not be considered as indicators of CEMEX’s financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.
Exhibit 2
2017 FOURTH QUARTER RESULTS Stock Listing Information NYSE (ADS) Ticker: CX Mexican Stock Exchange Ticker: CEMEXCPO Ratio of CEMEXCPO to CX = 10:1 Investor Relations In the United States: + 1 877 7CX NYSE In Mexico: + 52 (81) 8888 4292 EMail: ir@cemex.com
Operating and financial highlights January December Fourth Quarter ltl ltl 2017 2016 % var % var 2017 2016 % var % var Consolidated cement volume 68,518 68,341 0% 17,238 16,177 7% Consolidated ready mix volume 51,741 51,395 1% 13,085 12,764 3% Consolidated aggregates volume 147,354 146,823 0% 36,931 36,694 1% Net sales 13,672 13,352 2% 3% 3,424 3,175 8% 4% Gross profit 4,693 4,782 (2%) (2%) 1,184 1,169 1% (3%) as % of net sales 34.3% 35.8% (1.5pp) 34.6% 36.8% (2.2pp) Operating earnings before other 1,725 1,899 (9%) (9%) 410 458 (10%) (12%) expenses, net as % of net sales 12.6% 14.2% (1.6pp) 12.0% 14.4% (2.4pp) Controlling interest net income (loss) 806 750 8% (105) 214 N/A Operating EBITDA 2,572 2,753 (7%) (6%) 625 656 (5%) (7%) as % of net sales 18.8% 20.6% (1.8pp) 18.3% 20.7% (2.4pp) Free cash flow after maintenance 1,290 1,685 (23%) 680 618 10% capital expenditures Free cash flow 1,151 1,431 (20%) 623 545 14% Total debt plus perpetual notes 11,349 13,073 (13%) 11,349 13,073 (13%) Earnings (loss) of continuing operations 0.41 0.50 (17%) (0.07) 0.14 N/A per ADS Fully diluted earnings (loss) of (1) 0.41 0.50 (17%) (0.07) 0.14 N/A continuing operations per ADS Average ADSs outstanding 1,516.8 1,486.9 2% 1,540.2 1,490.3 3% Employees 40,307 40,437 (0%) 40,307 40,437 (0%) This information does not include discontinued operations. Please see page 14 on this report for additional information. Cement and aggregates volumes in thousands of metric tons. Ready mix volumes in thousands of cubic meters. In millions of US dollars, except volumes, percentages, employees, and per ADS amounts. Average ADSs outstanding are presented in millions. Please refer to page 7 for end of quarter CPO equivalent units outstanding. (1) For the periods January –December 2017 and fourth quarter2017, the effect of the potential dilutive shares generates anti dilution; therefore, there is no change between the reported basic and diluted loss per share. Consolidated net sales in the fourth quarter of 2017 reached US$3.4 Other expenses, net, for the quarter were US$271 million, mainly due billion, representing an increase of 8% or an increase of 4% on a like to impairment of assets, severance payments, as well as the expense to like basis for the ongoing operations and for foreign exchange related to the antitrust fine in Colombia. fluctuations compared with the fourth quarter of 2016. The increase Gain on financial instruments for the quarter was a gain of US$27 on a like to like basis was due to higher prices for our products, in local million, resulting mainly from the re measurement of CEMEX’s currency terms, in Mexico, the U.S., and the Europe region, as well as previous ownership interest in TCL of 39.5%. higher cement volumes in the U.S., Europe, and Asia, Middle East & Africa regions. Foreign exchange results for the quarter was a gain of US$58 million, mainly due to the fluctuation of the Mexican peso versus the U.S. Cost of sales as a percentage of net sales increased by 2.2pp during the dollar, partially offset by the fluctuation of the Euro versus the U.S. fourth quarter of 2017 compared with the same period last year, from dollar. 63.2% to 65.4%. The increase was mainly driven by higher energy costs. Income tax for the quarter had a negative effect of US$96 million mainly due to a write down of deferred tax assets in the U.S. Operating expenses as a percentage of net sales increased by 0.2pp during the fourth quarter of 2017 compared with the same period last Controlling interest net income (loss) was a loss of US$105 million in year, from 22.4% to 22.6%. The increase was mainly driven by higher the fourth quarter of 2017 versus an income of US$214 million in the distribution expenses. same quarter of 2016. The loss primarily reflects lower operating earnings before other expenses, net, higher other expenses, net, a Operating EBITDA decreased by 5% to US$625 million during the lower foreign exchange gain, higher income tax, a negative variation in fourth quarter of 2017 compared with the same period last year. The discontinued operations and higher noncontrolling interest net decrease on a like to like basis was mainly due to lower contributions income, partially offset by lower financial expenses, better results from in the U.S., as well as South, Central America and the Caribbean and financial instruments and higher equity in gain of associates. Asia, Middle East and Africa regions, partially offset by higher contributions in Mexico and the European region. Total debt plus perpetual notes decreased by US$209 million during the quarter. Operating EBITDA margin decreased by 2.4pp from 20.7% in the fourth quarter of 2016 to 18.3% this quarter. 2017 Fourth Quarter Results Page 2
Operating results Mexico January December Fourth Quarter l t l l t l 2017 2016 % var 2017 2016 % var % var % var Net sales 3,095 2,862 8% 9% 781 701 11% 6% Operating EBITDA 1,145 1,041 10% 11% 277 245 13% 8% Operating EBITDA margin 37.0% 36.4% 0.6pp 35.5% 34.9% 0.6pp In millions of US dollars, except percentages. Domestic gray cement Ready mix Aggregates Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter variation Volume (4%) (4%) (3%) (5%) (3%) (2%) Price (USD) 16% 17% 9% 17% 11% 14% Price (local currency) 16% 11% 10% 12% 11% 9% In Mexico, our domestic gray cement, ready mix and aggregates volumes decreased by 4%, 5%, and 2%, respectively, during the fourth quarter on a year over year basis. During 2017, domestic gray cement, ready mix and aggregates volumes decreased by 4%, 3% and 3%, respectively, versus the comparable period of 2016. Cement volumes during the year were supported by increased demand from the private sector mitigated by lower infrastructure activity. Our full year cement volumes underperformed the industry because of the continued implementation of our value before volume strategy. However, during the fourth quarter, we saw an improvement in our estimated market position compared to the third quarter. In the industrial and commercial sector, private investment projects like shopping malls, hotels, warehouses, as well as some manufacturing facilities, were supported by growth in consumption and improved manufacturing activity. Regarding the self construction sector, indicators including the economic activity index, job creation and remittances, continued to be solid. In the formal residential sector, total investment for home acquisitions increased by 9% year to date November. With the introduction of new higher value loan products, INFONAVIT mortgage investment grew in the double digits during both the quarter and full year, and resulted in a moderation in growth by commercial banks. Low income housing activity remained affected by the decline in government subsidies. United States January December Fourth Quarter l t l l t l 2017 2016 % var 2017 2016 % var % var % var Net sales 3,484 3,561 (2%) 3% 838 855 (2%) 4% Operating EBITDA 604 608 (1%) 9% 158 180 (12%) (5%) Operating EBITDA margin 17.3% 17.1% 0.2pp 18.8% 21.0% (2.2pp) In millions of US dollars, except percentages. Domestic gray cement Ready mix Aggregates Year over year January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter percentage variation Volume (6%) (3%) (2%) 2% (3%) 1% Price (USD) 3% 4% 1% 2% 5% 4% Price (local currency) 3% 4% 1% 2% 5% 4% In the United States, our domestic gray cement volumes declined by 3%, while ready mix and aggregates volumes increased by 2% and 1%, respectively, during the fourth quarter of 2017 and compared to the same period last year. During 2017, domestic gray cement, ready mix and aggregates volumes decreased by 6%, 2% and 3%, respectively, on a year over year basis. Cement volumes on a like to like basis, excluding volumes related to the cement plants which were sold, increased by 5% and 2% during the quarter and the full year, respectively. Ready mix volumes, on a like to like basis excluding the West Texas operations, increased by 3% during the quarter and declined 1% during the full year. Aggregates volumes, also on a like to like basis, increased by 3% during the quarter and remained flat during the full year, compared with the same periods last year. Our cement prices during the quarter on a like to like basis increased by 5% compared with the same period last year. Volumes for our three core products increased during the quarter on a like to like basis despite significant precipitation in much of our footprint and the lingering impact of the hurricane in Florida in our operations. In the residential sector, activity accelerated during the fourth quarter supported by single family construction and improvements. While housing starts remained flat during the quarter on a year over year basis, the cement intensive single family sector increased by 7% in this period, supported by a catch up effect from the hurricanes during the prior quarter. In the industrial and commercial sector, national contract awards declined 1% during 2017; however, awards in our four key states increased 4% driven by Florida and Texas. 2017 Fourth Quarter Results
Operating results South, Central America and the Caribbean January December Fourth Quarter l t l l t l 2017 2016 % var 2017 2016 % var % var % var Net sales 1,883 1,727 9% (5%) 452 403 12% (3%) Operating EBITDA 471 542 (13%) (22%) 105 108 (3%) (10%) Operating EBITDA margin 25.0% 31.4% (6.4pp) 23.2% 26.8% (3.6pp) In millions of US dollars, except percentages. Domestic gray cement Ready mix Aggregates Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter variation Volume 13% 15% (4%) (0%) 1% 2% Price (USD) (3%) 0% 0% (3%) (2%) (2%) Price (local currency) (3%) 0% (0%) (3%) (3%) (2%) Our domestic gray cement volumes in the region increased by 15% and 13% during the quarter and for the full year, respectively, versus the comparable periods last year. Cement volumes on a like to like basis, including the regional operations of TCL, decreased by 1% during both the quarter and the full year, versus the comparable periods of last year. In Colombia, during the fourth quarter our domestic gray cement, ready mix, and aggregates volumes decreased by 8%, 8%, and 12%, respectively, compared to the fourth quarter of 2016. For the full year, cement, ready mix, and aggregates volumes decreased by 6%, 13% and 17%, respectively, on a year over year basis. Cement consumption, both during the full year and the fourth quarter, was affected by weak demand from industrial and commercial projects, as well as from high and middle income housing developments. Although our cement prices in local currency terms declined during the fourth quarter on a year over year basis, they increased 2% against those of the third quarter. Europe January December Fourth Quarter l t l l t l 2017 2016 % var 2017 2016 % var % var % var Net sales 3,516 3,355 5% 3% 911 780 17% 5% Operating EBITDA 363 393 (8%) (9%) 99 81 22% 9% Operating EBITDA margin 10.3% 11.7% (1.4pp) 10.9% 10.4% 0.5pp In millions of US dollars, except percentages. Domestic gray cement Ready mix Aggregates Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter variation Volume 8% 13% 4% 1% 3% 1% Price (USD) 1% 8% 3% 13% 1% 11% Price (local currency) (1%) (2%) 1% 3% 0% 1% In the Europe region, our volumes for domestic gray cement, ready mix and aggregates increased 13%, 1% and 1%, respectively, during the fourth quarter of 2017 on a year over year basis. During the full year 2017 our domestic cement, ready mix and aggregates volumes increased 8%, 4% and 3%, respectively, compared with the same period of last year. In the United Kingdom, our domestic gray cement volumes remained flat, while ready mix and aggregates volumes decreased 3% and 4%, respectively, during the fourth quarter of 2017 on a year over year basis. During the full year our domestic gray cement, ready mix and aggregates volumes decreased 6%, 2% and 4%, respectively, versus the comparable period in 2016. Our cement volume performance during the full year reflects a high base of comparison due to non recurring industry sales particularly in the first half of 2016, as well as softening market conditions due to political uncertainty. On a like to like basis, our cement prices in local currency remained stable sequentially during the quarter. The residential sector was the main driver of demand during the quarter supported by government’s help to buy 2017 Fourth Quarter Results Page 4
Operating results In Spain, our domestic gray cement, ready mix and aggregates volumes increased by 42%, 15% and 11%, respectively, during the quarter and on a year over year basis. During the full year our domestic gray cement, ready mix and aggregates volumes increased by 28%, 4% and 25%, respectively, versus the comparable period in 2016. Our cement volume growth during both the quarter and the full year reflects favorable activity from the residential and the industrial and commercial sectors. The residential sector benefited from favorable credit conditions and income perspectives, job creation, and pent up housing demand. The industrial and commercial sector was supported by offices, tourism and agricultural projects. In Germany, our domestic gray cement volumes increased 16% and 15% during the fourth quarter and the full year 2017, respectively, compared with the same periods in the previous year. Cement volume growth during both the quarter and the full year reflects our participation in infrastructure projects and strong demand from the residential sector. The infrastructure sector benefited from increased central government spending, while the residential sector continued to benefit from low unemployment and mortgage rates, rising purchasing power as well as ongoing immigration. In Poland, domestic gray cement volumes increased by 15% and 5% during the fourth quarter and the full year, respectively, versus the comparable periods in 2016. Our cement prices during the quarter increased 3% on a year over year basis and remained stable on a sequential basis. Infrastructure sector activity accelerated during the quarter. The residential sector continued with favorable trends supported by low interest rates, low unemployment and governmental sponsored programs. In our operations in France, both ready mix and aggregates volumes increased by 7%, during the fourth quarter on a year over year basis. During the full year and compared with the same period last year, ready mix and aggregates volumes increased by 7% and 10%, respectively. There was higher activity in traded aggregates volumes during the full year. Volume growth during both the quarter and the full year reflects continued activity in the residential sector as well as “Grand Paris” related projects. The residential sector was supported by low interest rates and government’s initiatives including a buy to let program and zero rate loans for first time buyers. Asia, Middle East and Africa January December Fourth Quarter l t l l t l 2017 2016 % var 2017 2016 % var % var % var Net sales 1,361 1,494 (9%) 0% 363 317 14% 14% Operating EBITDA 223 375 (41%) (35%) 53 76 (30%) (31%) Operating EBITDA margin 16.4% 25.1% (8.7pp) 14.6% 23.9% (9.3pp) In millions of US dollars, except percentages. Domestic gray cement Ready mix Aggregates Year over year percentage January December Fourth Quarter January December Fourth Quarter January December Fourth Quarter variation Volume (2%) 16% 7% 18% 4% 2% Price (USD) (25%) (17%) 1% 7% 7% 4% Price (local currency) (3%) (7%) (0%) 1% 1% (4%) Our domestic gray cement volumes in the Asia, Middle East and Africa region increased by 16% during the fourth quarter and decreased by 2% during the full year, on a year over year basis. In the Philippines, our domestic gray cement volumes increased by 10% during the fourth quarter and remained flat during the full year, versus the comparable periods of last year. Cement demand increased during the quarter supported by higher infrastructure activity, as well as a low base of comparison in the same period last year mainly due to post elections transition effects. In Egypt, our domestic gray cement volumes increased by 23% during the fourth quarter and decreased by 6% during the full year 2017, on a year over year basis. Cement volume growth during the quarter benefited from improved demand in the residential and infrastructure sectors, as well as a low base of comparison versus the fourth quarter of 2016, which was impacted by the currency depreciation in early November. Residential developments and government projects related to the Suez Canal tunnels, the port platforms in the city of Port Said, as well as the new administrative capital, continued during the quarter. 2017 Fourth Quarter Results Page 5
Operating EBITDA, free cash flow and debt?related information Operating EBITDA and free cash flow January ?December Fourth Quarter 2017 2016 % var 2017 2016 % var Operating earnings before other expenses, net 1,725 1,899 (9%) 410 458 (10%) + Depreciation and operating amortization 847 854 215 198 Operating EBITDA 2,572 2,753 (7%) 625 656 (5%) Net financial expense 821 985 179 226 ? Maintenance capital expenditures 520 450 258 192 ? Change in working capital (350) (604) (542) (391) Taxes paid 249 299 46 51 ? Other cash items (net) 51 2 4 (24) ? Free cash flow discontinued operations (8) (64) ? (17) Free cash flow after maintenance capital expenditures 1,290 1,685 (23%) 680 618 10% ? Strategic capital expenditures 138 253 57 73 Free cash flow 1,151 1,431 (20%) 623 545 14% In millions of US dollars, except percentages. Free cash Flow during the quarter plus proceeds from our €650 million 2.750% Senior Secured Notes due 2024 issued in November, were mainly used for debt repayment and for the creation of a US$350 million cash reserve during the quarter for further debt repayment on January 2018. Our debt during the quarter reflects a negative foreign exchange conversion effect of US$45 million. Information on debt and perpetual notes Third Fourth Quarter Quarter Fourth Quarter 2017 2016 % var 2017 2017 2016 Total debt (1) 10,901 12,635 (14%) 11,111 Currency denomination Short?term 12% 1% 7% US dollar 62% 78% Long term 88% 99% 93% Euro 30% 21% Perpetual notes 448 438 2% 446 Mexican peso 0% 1% Total debt plus perpetual notes 11,349 13,073 (13%) 11,558 Other 7% 0% Cash and cash equivalents 699 561 25% 449 Net debt plus perpetual notes 10,650 12,513 (15%) 11,108 Interest rate Fixed 68% 73% Consolidated funded debt (CFD) (2) 9,981 11,837 10,448 Variable 32% 27% CFD (2) /EBITDA (3) 3.85 4.22 3.98 Interest coverage (3) (4) 3.46 3.18 3.31 In millions of US dollars, except percentages and ratios. (1) Includes convertible notes and capital leases, in accordance with International Financial Reporting Standards (IFRS). (2) Consolidated funded debt, in accordance with our contractual obligations under the Credit Agreement. (3) EBITDA calculated in accordance with IFRS. (4) Interest expense calculated in accordance with our contractual obligations under the Credit Agreement. 2017 Fourth Quarter Results Page 6
Equity related and derivative instruments information Equity related information One CEMEX ADS represents ten CEMEX CPOs. The following amounts are expressed in CPO terms Beginning of quarter CPO equivalent units outstanding 15,086,693,679 End of quarter CPO equivalent units outstanding 15,086,693,679 Outstanding units equal total CEMEX CPO equivalent units less CPOs held in subsidiaries, which as of December 31, 2017 were 20,541,277. CEMEX 236 million, has outstanding subject to antidilution moandatorily adjustments convertible . securities which, upon conversion, will increase the number of CPOs outstanding by approximately Employee long term compensation plans As of December 31, 2017, our executives held 28,998,444 restricted CPOs, representing 0.2% of our total CPOs outstanding as of such date. Derivative instruments The following table shows the notional amount for each type of derivative instrument and the aggregate fair market value for all of CEMEX’s derivative instruments as of the last day of each quarter presented. Fourth Quarter Third Quarter 2017 2016 2017 In millions of US dollars. Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value Exchange rate derivatives (1) 1,541 50 80 1,062 (27) Equity related derivatives (2) (5) 168 (13) 576 26 168 (34) Interest rate swaps (3) 137 16 147 23 142 21 Fuel derivatives (4) 72 20 77 15 74 12 1,918 73 880 64 1,446 (28) (1) Exchange rate derivatives are used to manage currency exposures that arise from the regular operations and from forecasted transactions. (2) Until June 30, 2017 equity derivatives were related with options on the Parent Company own shares and as of December 31, 2017 to forwards, net of cash collateral, over the shares of Grupo Cementos de Chihuahua, S.A.B. de C.V. (3) Interest rate swap related to our long term energy contracts. (4) Forward contracts negotiated to hedge the price of the fuel consumed in certain operations. (5) As required by IFRS, the equity related derivatives fair market value as of December 31, 2017 and 2016 includes a liability of US$20 million and of US$40 million, respectively, relating to an embedded derivative in CEMEX’s mandatorily convertible securities. Under IFRS, companies are required to recognize all derivative financial instruments on the balance sheet as assets or liabilities, at their estimated fair market value, with changes in such fair market values recorded in the income statement, except when transactions are entered into for cash flow hedging purposes, in which case changes in the fair market value of the related derivative instruments are recognized temporarily in equity and then reclassified into earnings as the inverse effects of the underlying hedged items flow through the income statement, and/or transactions related to net investment hedges, in which case changes in fair value are recorded directly in equity as part of the currency translation effect, and are reclassified to the income statement only upon disposal of the net investment. As of December 31, 2017, in connection with the fair market value recognition of its derivatives portfolio, CEMEX recognized increases in its assets and liabilities resulting in a net asset of US$73 million, including a liability of US$20 million corresponding to an embedded derivative related to our mandatorily convertible securities, which according to our debt agreements, is presented net of the assets associated with the derivative instruments. 2017 Fourth Quarter Results Page 7
Operating results Consolidated Income Statement & Balance Sheet CEMEX, S.A.B. de C.V. and Subsidiaries (Thousands of U.S. Dollars, except per ADS amounts) January December Fourth Quarter like to like like to like INCOME STATEMENT 2017 2016 % var % var 2017 2016 % var % var Net sales 13,672,176 13,351,773 2% 3% 3,424,043 3,174,902 8% 4% Cost of sales (8,979,536) (8,570,127) (5%) (2,239,575) (2,005,552) (12%) Gross profit 4,692,640 4,781,647 (2%) (2%) 1,184,468 1,169,351 1% (3%) Operating expenses (2,967,490) (2,882,986) (3%) (774,012) (711,489) (9%) Operating earnings before other expenses, net 1,725,151 1,898,661 (9%) (9%) 410,456 457,862 (10%) (12%) Other expenses, net (202,076) (89,215) (127%) (271,257) (8,120) (3240%) Operating earnings 1,523,074 1,809,446 (16%) 139,199 449,741 (69%) Financial expense (1,022,280) (1,147,711) 11% (218,022) (244,979) 11% Other financial income (expense), net 191,554 239,800 (20%) 76,442 44,527 72% Financial income 17,896 21,490 (17%) 4,529 4,179 8% Results from financial instruments, net 229,100 6,036 3695% 27,339 (14,045) N/A Foreign exchange results (1,359) 267,327 N/A 57,852 67,614 (14%) Effects of net present value on assets and liabilities and others, net (54,083) (55,054) 2% (13,278) (13,221) (0%) Equity in gain (loss) of associates 31,096 36,730 (15%) 10,547 6,721 57% Income (loss) before income tax 723,444 938,266 (23%) 8,167 256,011 (97%) Income tax (27,552) (166,949) 83% (95,665) (43,606) (119%) Profit (loss) of continuing operations 695,892 771,317 (10%) (87,499) 212,405 N/A Discontinued operations 185,347 41,002 352% (165) 10,595 N/A Consolidated net income (loss) 881,239 812,319 8% (87,664) 223,000 N/A Non controlling interest net income (loss) 75,049 62,680 20% 17,260 9,297 86% Controlling interest net income (loss) 806,190 749,639 8% (104,923) 213,703 N/A Operating EBITDA 2,572,171 2,752,879 (7%) (6%) 625,179 656,149 (5%) (7%) Earnings (loss) of continued operations per ADS 0.41 0.50 (17%) (0.07) 0.14 N/A Earnings (loss) of discontinued operations per ADS 0.12 0.03 326% (0.00) 0.01 N/A As of December 31 BALANCE SHEET 2017 2016 % var Total assets 28,884,542 28,944,417 (0%) Cash and cash equivalents 699,288 560,618 25% Trade receivables less allowance for doubtful accounts 1,551,066 1,455,584 7% Other accounts receivable 252,948 252,817 0% Inventories, net 959,407 873,474 10% Assets held for sale 70,128 1,014,988 (93%) Other current assets 98,987 110,908 (11%) Current assets 3,631,824 4,268,389 (15%) Property, machinery and equipment, net 11,814,756 11,106,836 6% Other assets 13,437,962 13,569,192 (1%) Total liabilities 18,176,246 19,449,961 (7%) Liabilities held for sale 39,341 (100%) Other current liabilities 5,708,831 3,918,380 46% Current liabilities 5,708,831 3,957,721 44% Long term liabilities 9,008,776 11,342,485 (21%) Other liabilities 3,458,639 4,149,754 (17%) Total stockholder’s equity 10,708,296 9,494,456 13% Non controlling interest and perpetual instruments 1,571,434 1,397,229 12% Total controlling interest 9,136,862 8,097,227 13% 2017 Fourth Quarter Results Page 8
Operating results Consolidated Income Statement & Balance Sheet CEMEX, S.A.B. de C.V. and Subsidiaries (Thousands of Mexican Pesos in nominal terms, except per ADS amounts) January December Fourth Quarter INCOME STATEMENT 2017 2016 % var 2017 2016 % var Net sales 258,130,689 249,945,199 3% 65,536,186 63,656,790 3% Cost of sales (169,533,637) (160,432,769) (6%) (42,865,473) (40,211,310) (7%) Gross profit 88,597,053 89,512,431 (1%) 22,670,713 23,445,480 (3%) Operating expenses (56,026,206) (53,969,490) (4%) (14,814,583) (14,265,354) (4%) Operating earnings before other expenses, net 32,570,847 35,542,940 (8%) 7,856,130 9,180,127 (14%) Other expenses, net (3,815,203) (1,670,103) (128%) (5,191,855) (162,811) (3089%) Operating earnings 28,755,643 33,872,838 (15%) 2,664,275 9,017,315 (70%) Financial expense (19,300,652) (21,485,143) 10% (4,172,934) (4,911,829) 15% Other financial income (expense), net 3,616,531 4,489,063 (19%) 1,463,100 892,774 64% Financial income 337,871 402,301 (16%) 86,682 83,796 3% Results from financial instruments, net 4,325,407 112,999 3728% 523,261 (281,603) N/A Foreign exchange results (25,652) 5,004,366 N/A 1,107,296 1,355,660 (18%) Effects of net present value on assets and liabilities and others, net (1,021,095) (1,030,604) 1% (254,139) (265,080) 4% Equity in gain (loss) of associates 587,099 687,588 (15%) 201,870 134,758 50% Income (loss) before income tax 13,658,622 17,564,346 (22%) 156,311 5,133,018 (97%) Income tax (520,187) (3,125,283) 83% (1,831,037) (874,296) (109%) Profit (loss) of continuing operations 13,138,435 14,439,063 (9%) (1,674,726) 4,258,722 N/A Discontinued operations 3,499,352 767,558 356% (3,154) 212,423 N/A Consolidated net income (loss) 16,637,787 15,206,621 9% (1,677,881) 4,471,145 N/A Non controlling net income (loss) 1,416,917 1,173,375 21% 330,348 186,397 77% Controlling net income (loss) 15,220,870 14,033,246 8% (2,008,228) 4,284,748 N/A Operating EBITDA 48,562,590 51,533,894 (6%) 11,965,929 13,155,797 (9%) Earnings (loss) of continued operations per ADS 7.79 9.36 (17%) (1.29) 2.86 N/A Earnings (loss) of discontinued operations per ADS 2.31 0.54 330% (0.00) 0.15 N/A As of December 31 BALANCE SHEET 2017 2016 % var Total assets 567,581,259 599,728,316 (5%) Cash and cash equivalents 13,741,005 11,615,999 18% Trade receivables less allowance for doubtful accounts 30,478,447 30,159,703 1% Other accounts receivable 4,970,420 5,238,376 (5%) Inventories, net 18,852,340 18,098,377 4% Assets held for sale 1,378,020 21,030,543 (93%) Other current assets 1,945,102 2,298,019 (15%) Current assets 71,365,334 88,441,017 (19%) Property, machinery and equipment, net 232,159,965 230,133,647 1% Other assets 264,055,960 281,153,653 (6%) Total liabilities 357,163,241 403,003,189 (11%) Liabilities held for sale 815,155 (100%) Other current liabilities 112,178,538 81,188,826 38% Current liabilities 112,178,538 82,003,981 37% Long term liabilities 177,022,441 235,016,295 (25%) Other liabilities 67,962,262 85,982,913 (21%) Total stockholders’ equity 210,418,018 196,725,127 7% Non controlling interest and perpetual instruments 30,878,681 28,950,591 7% Total controlling interest 179,539,337 167,774,536 7% 2017 Fourth Quarter Results Page 9
Operating results Operating Summary per Country
In thousands of U.S. dollars
January - December Fourth Quarter like-to-like like-to-like NET SALES
2017 2016 % var % var 2017 2016 % var % var
Mexico 3,095,431
2,862,151 8% 9% 780,592 701,419 11% 6% U.S.A. 3,484,374 3,560,989 (2%) 3% 837,548 855,213 (2%) 4%
South, Central America and the Caribbean 1,882,834 1,727,046 9% (5%) 452,205 403,121 12% (3%) Europe 3,515,730
3,354,772 5% 3% 910,897 780,499 17% 5% Asia, Middle East and Africa 1,361,375 1,493,657 (9%) 0% 363,285 317,285 14% 14%
Others and intercompany eliminations 332,432 353,159 (6%) 1% 79,517 117,364 (32%) (22%)
TOTAL 13,672,176 13,351,773 2% 3% 3,424,043 3,174,902 8% 4%
GROSS PROFIT
Mexico 1,671,202 1,516,142 10% 11% 416,902
371,440 12% 7% U.S.A. 960,965 966,814 (1%) 4% 252,834 263,742 (4%) 1%
South, Central America and the Caribbean 699,156 732,031 (4%) (12%) 163,246 160,194 2% (4%) Europe 939,111 950,111 (1%)
(2%) 254,060 223,174 14% 3% Asia, Middle East and Africa 397,024 537,037 (26%) (20%) 96,743 118,058 (18%) (19%)
Others and intercompany eliminations 25,183 79,512 (68%) (87%) 683 32,742 (98%) N/A
TOTAL 4,692,640 4,781,647 (2%) (2%) 1,184,468 1,169,351 1% (3%)
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET
Mexico
1,026,644 913,116 12% 13% 247,451 214,696 15% 10% U.S.A. 276,463 263,956 5% 28% 81,225 104,133 (22%) (10%)
South, Central America and the Caribbean 380,491 466,468 (18%) (28%) 81,280 89,132 (9%) (17%) Europe 165,484 198,903 (17%)
(17%) 46,117 35,769 29% 14% Asia, Middle East and Africa 160,613 303,697 (47%) (44%) 37,092 59,818 (38%) (41%)
Others and intercompany eliminations (284,544) (247,480) (15%) (15%) (82,708) (45,686) (81%) (68%)
TOTAL 1,725,151 1,898,661 (9%) (9%) 410,456 457,862 (10%) (12%)
2017 Fourth Quarter Results Page 10
Operating results
Operating Summary per Country
EBITDA in thousands of U.S. dollars. EBITDA margin as a percentage of net sales.
January
- December Fourth Quarter like-to-like like-to-like OPERATING EBITDA 2017 2016 % var % var 2017 2016 % var %
var
Mexico 1,145,330 1,040,843 10% 11% 276,753 244,915 13% 8% U.S.A.
604,308 608,072 (1%) 9% 157,640 179,627 (12%) (5%) South, Central America and the Caribbean 470,856 542,074 (13%) (22%) 105,082 108,018 (3%) (10%)
Europe 362,706 393,168 (8%) (9%) 98,946 80,942 22% 9% Asia, Middle East and Africa 222,786 375,078 (41%) (35%) 53,074 75,950 (30%) (31%)
Others and intercompany eliminations (233,815) (206,355) (13%) (13%) (66,315) (33,302) (99%) (82%)
TOTAL 2,572,171 2,752,879 (7%) (6%) 625,179 656,149 (5%) (7%)
OPERATING EBITDA MARGIN
Mexico 37.0% 36.4% 35.5% 34.9%
U.S.A. 17.3% 17.1% 18.8% 21.0%
South, Central America and the Caribbean 25.0% 31.4% 23.2% 26.8%
Europe 10.3% 11.7% 10.9% 10.4%
Asia, Middle East and Africa 16.4% 25.1% 14.6% 23.9% TOTAL
18.8% 20.6% 18.3% 20.7%
2017 Fourth Quarter Results Page 11
Operating results
Volume Summary
Consolidated volume summary
Cement and
aggregates: Thousands of metric tons. Ready-mix: Thousands of cubic
meters.
January - December Fourth Quarter
2017 2016 % var 2017 2016 % var
Consolidated cement volume (1) 68,518 68,341 0% 17,238 16,177 7%
Consolidated ready-mix volume 51,741 51,395 1% 13,085 12,764 3% Consolidated aggregates volume 147,354 146,823 0% 36,931 36,694 1%
Per-country volume summary
January - December Fourth Quarter Fourth Quarter 2017 vs.
DOMESTIC GRAY CEMENT VOLUME 2017 vs. 2016 2017 vs. 2016 Third Quarter 2017
Mexico (4%) (4%)
8% U.S.A. (6%) (3%) (4%) South, Central America and the Caribbean 13% 15% (2%) Europe 8% 13% (10%) Asia, Middle East and Africa (2%) 16%
(2%)
READY-MIX VOLUME
Mexico
(3%) (5%) 2% U.S.A. (2%) 2% (4%) South, Central America and the Caribbean (4%) (0%) (2%) Europe 4% 1%
(4%) Asia, Middle East and Africa 7% 18% 9%
AGGREGATES VOLUME
Mexico (3%) (2%) 3% U.S.A. (3%) 1% (0%) South, Central America and the Caribbean 1% 2%
(1%) Europe 3% 1% (7%) Asia, Middle East and Africa 4% 2%
7%
(1) Consolidated cement volume includes domestic and export volume of gray cement, white cement,
special cement, mortar and clinker.
2017 Fourth Quarter Results Page 12
Operating results Price Summary Variation in U.S. Dollars
January - December Fourth Quarter Fourth Quarter 2017 vs. DOMESTIC GRAY CEMENT
PRICE 2017 vs. 2016 2017 vs. 2016 Third Quarter 2017 Mexico 16% 17% (8%) U.S.A. 3% 4% 0%
South, Central America and the Caribbean (*) (3%) 0% (0%) Europe (*) 1% 8% 0% Asia, Middle East and Africa (*) (25%) (17%) (0%)
READY-MIX PRICE
Mexico 9% 17% (3%) U.S.A. 1% 2% 1%
South, Central America and the Caribbean (*) 0% (3%) (5%) Europe (*) 3% 13% 2% Asia, Middle East and Africa (*) 1% 7% 3% AGGREGATES PRICE
Mexico 11% 14% (4%) U.S.A. 5% 4% (2%) South, Central America and the Caribbean (*) (2%) (2%) (6%)
Europe (*) 1% 11% 2% Asia, Middle East and Africa (*) 7% 4% (3%) Variation in Local Currency
January - December Fourth Quarter Fourth Quarter 2017 vs. DOMESTIC GRAY CEMENT PRICE 2017 vs. 2016 2017 vs. 2016
Third Quarter 2017 Mexico 16% 11% (2%) U.S.A. 3% 4% 0% South, Central America and the Caribbean (*) (3%) 0% 0% Europe (*) (1%) (2%) 0%
Asia, Middle East and Africa (*) (3%) (7%) (1%)
READY-MIX PRICE
Mexico 10% 12% 3% U.S.A. 1% 2% 1%
South, Central America and the Caribbean (*) (0%) (3%) (4%) Europe (*) 1% 3% 2% Asia, Middle East and Africa (*) (0%) 1% 1%
AGGREGATES PRICE Mexico 11% 9% 2% U.S.A. 5% 4% (2%) South, Central America and the Caribbean (*) (3%) (2%) (5%) Europe (*) 0% 1% 1%
Asia, Middle East and Africa (*) 1% (4%) (5%)
(*) Volume weighted-average price.
2017 Fourth Quarter Results Page 13
Other information
Update of CEMEX Espańa’s Tax
Matter of CEMEX, S. On January 31, 2018, CEMEX España, S. A.B. de C.V. (“CEMEX”) (NYSE: CX)
A. (“CEMEX Espańa”), a subsidiary in Spain, was notified that, pursuant to a resolution dated January 18, 2018, the Spanish
National Dráva Cement on August 12, 2015 for the sale of its Croatian operations, In connection with an agreement signed between CEMEX and Duna-Court (Audiencia Nacional) granted suspension of the payment which had been previously
requested by CEMEX Espańa in relation to the tax (jointly including the assets “Croatian in Bosnia Operations”), and
Herzegovina, CEMEX Montenegro reported its and Croatian Serbia process in Spain regarding the review of the tax
losses reported for 2006 to 2009, such suspension of payment being conditioned to providing a Operations until the
first net quarter of tax of in 2017.
the single On April line 5, item 2017, of discontinued CEMEX announced operations that guarantee before
March 31, 2018 for the amount of the fines plus interest. CEMEX España expects to provide a guarantee in due form and Duna-Dráva the European Commission issued a decision that ultimately did not allow Cement to purchase the aforementioned
operations. in a timely manner. As background, in 2011, the Spanish tax authorities initiated a tax audit covering the 2006 to 2009
tax years, resulting in a Consequently, maintain its Croatian the transaction Operations was and cancelled continue to and operate CEMEX them.
decided For the to challenge to a portion of the tax losses reported by CEMEX España for such years. The fines were notified to
CEMEX España in 2013 and an years presented line-by-line in the income statements.
ended December 31, 2017 and 2016, the Croatian Operations are appeal the appeal filed in 2014 was notified, against which
CEMEX España filed a was filed in 2014. On September, 2017, an adverse resolution
to
The following table presents condensed combined information of the 2017.
recourse CEMEX before estimates the National that it Court could (Audiencia take approximately Nacional) on four
November, years, or statement of operations of CEMEX discontinued operations mainly: a) the Concrete Pipe
Business for the one-month period ended January 31, longer, for this matter to reach a final resolution.
able to assess the likelihood of an adverse result CEMEX is not currently in relation to this 2017 and the year ended December 31 2016; b) the Pacific Northwest Materials Business for the six-month period ended June 2017 and the matter.
material However, adverse impact a final on adverse CEMEX’s resolution results of of this operations, matter could
liquidity have and a year ended December 31, 2016; and c) Bangladesh and Thailand for the period from
January 1 to May 26, 2016: financial condition INCOME STATEMENT Jan-Dec Fourth Quarter (Millions of Mexican pesos) 2017 2016 2017 2016
Discontinued Operations and Other Disposal Groups Sales
1,549 8,979 - 2,160 Discontinued Operations Cost of sales and operating (1,531) (8,440) - (1,931) On June 30, 2017, CEMEX announced that after approval from regulators, Other expenses, net 14 (2) - (1)
one of its subsidiaries in the U.S. closed the divestment of its Pacific Interest expense, net and others (3) (57)
- 14 mix Northwest Materials Business consisting of aggregate, asphalt and ready concrete operations in
Oregon and Washington to Cadman Income (loss) before income tax 29 480 - 242 Income tax - (101) - (23) Materials, Inc., part of Lehigh Hanson, Inc. and the U.S. subsidiary of
HeidelbergCement Group, for approximately US$150 million. Considering Net income (loss) 29 379
- 218 the disposal of the entire Pacific Northwest Materials Business, their Non controlling interest net income - - -
-ended December 31, 2016, included in CEMEX’s income statements were operations for the six-month
period ended June 30, 2017 and the year Controlling interest net income 29 379 - 218 Net gain on sale 3,470 389 (3) (6)
reclassified net of tax to the single line item “Discontinued Operations.”
CEMEX determined
a net gain on disposal of these assets for Discontinued operations 3,499 768 (3) 212
discontinued approximately operations, US$22 million which recognized included during a proportional
June 2017 allocation as part of of goodwill for approximately US$73 million.
On November 28,
2016, CEMEX announced that one of its subsidiaries in the United States signed a definitive
agreement to divest its Concrete Reinforced the United Pipe States Manufacturing to Quikrete Business Holdings, (“Concrete Inc. Pipe (“Quikrete”)
Business”) for in approximately US$500 million plus an additional US$40 million contingent consideration based on future
performance. On January 31, 2017, after the satisfaction of certain conditions precedent including approval from
regulators, CEMEX announced the closing of the sale to disposal Quikrete according to the agreed upon price conditions.
of the entire Concrete Pipe Business, their operations Considering the for the one-month period ended January 31, 2017
and the year ended December 31, 2016, included in CEMEX’s income statements were reclassified net of tax to the single line item
“Discontinued Operations.” CEMEX determined US$148 million a net recognized gain on during disposal January of
these 2017 assets as part for of approximately discontinued operations, which included a proportional allocation of goodwill for
approximately US$260 million. On May 26, 2016, CEMEX concluded the sale to SIAM City Cement Public Company limited
(“SIAM Cement”) of its operations in Bangladesh and Thailand for approximately US$53 million. CEMEX’s operations in
included in CEMEX’s income statement for the year ended December 31, Bangladesh and Thailand for the period from
January 1 to May 26, 2016 2016 were reclassified net of tax to the single line item “Discontinued operations.”
2017 Fourth Quarter Results Page 14
Other information Other disposal groups
Other disposal groups do not represent the disposal of an entire sector or line of business
and, due to the remaining
ongoing activities and the relative consolidated by CEMEX line-by-line in the statement of operations for
all size, are not considered discontinued operations and were reported periods. The main disposal groups are as follows:
closed the sale to an affiliate of Grupo Cementos de Chihuahua, S. On November 18, 2016, a subsidiary of CEMEX in the United A.
States B. de Odessa, Texas, two cement terminals and the building materials business C.V. (“GCC”) of certain assets
consisting in CEMEX’s cement plant in approximately in El Paso, Texas US$306 and million.
Las Cruces, Odessa New plant Mexico, has an for annual an amount production of capacity statement of for
approximately the year ended 537 December thousand tons. 31, 2016 CEMEX’s includes income the operations January 1 to November 18, 2016. of these assets consolidated line-by-line for the period from the On September 12, 2016, CEMEX
announced that one of its subsidiaries in United States signed a definitive agreement for the sale of its Eagle Materials Inc.
Fairborn, Ohio cement (“Eagle Materials”) plant and cement for approximately US$ terminal in Columbus, 400 million.
Ohio to thousand Fairborn plant tons.has On an February annual production 10, 2017, capacity CEMEX announced of
approximately that such 730 CEMEX’s subsidiary income in the United statements States include closed the the operations
divestment of of these the Fairborn assets. cement line for the period in 2017 until their disposal in February 10 and for the plant and the Columbus cement terminal consolidated line-by-year disposal ended of these December assets 31,
for 2016. approximately CEMEX determined US$188 million a net recognized gain on during proportional allocation of goodwill for approximately US$
February 2017 as part of Other expenses, net, which 211 million.
included a The following table presents selected combined statement of operations information of the net assets sold to GCC
for the period from January 1 2017 until their disposal in February 10 and for the year ended December to November 18, 2016 and those sold to Eagle Materials for the period in 31, 2016: SELECTED INFORMATION Jan-Dec Fourth Quarter
(Millions of Mexican pesos) 2017 2016 2017 2016 Sales 86 3,322 - 738 Cost of sales and operating Expenses (71) (2,800) - (554) Operating earnings before other expenses, net 15 522 - 184
2017 Fourth Quarter Results Page 15
Definitions of terms and disclosures
Methodology for translation, consolidation, and presentation of Operating EBITDA equals operating earnings
before other expenses, net, results plus depreciation and operating amortization.
Under IFRS, beginning
January 1, 2008, CEMEX translates the financial pp equals percentage points statements of
foreign subsidiaries using exchange rates at the reporting Prices all references to pricing initiatives, price increases or
decreases, date for the balance sheet and the exchange rates at the end of each refer to our prices for our products month
for the income statement. CEMEX reports its consolidated results Strategic capital expenditures investments incurred with the
purpose of in Mexican pesos.increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by
expanding For the reader’s convenience, beginning June 30, 2008, US dollar capacity, and margin improvement capital
expenditures, which are amounts for the consolidated entity are calculated by converting the projects designed to increase
profitability by reducing costs. nominal Mexican peso amounts at the end of each quarter using the Working capital equals
operating accounts receivable (including other average MXN/US$ exchange rate for each quarter, provided below. current assets received as payment in
kind) plus historical inventories
minus operating payables. Breakdown of regions % var percentage variation The South, Central America and the Caribbean region includes CEMEX’s
operations in Argentina, Bahamas, Brazil, Colombia, Costa Earnings per ADS
Rica, the Dominican
Republic, El Salvador, Guatemala, Haiti, Jamaica, Please refer to page 2 for the number of average ADSs
outstanding used for Trinidad & Tobago, Barbados, Nicaragua, Panama, Peru, and Puerto the calculation of earnings per ADS.
Rico, as well as trading operations in the Caribbean region.
Europe includes operations in Spain, Croatia, the Czech Republic, According to the IAS 33 Earnings
per share, the weighted-average number of France, Germany, Latvia, Poland, and the United Kingdom, as well as common shares
outstanding is determined considering the number of days trading operations in several Nordic countries. during the
accounting period in which the shares have been outstanding, including shares derived from corporate events that have
modified the The Asia, Middle East and Africa region includes operations in the stockholder’s equity structure during the
period, such as increases in the United Arab Emirates, Egypt, Israel and the Philippines. number of shares by a public
offering and the distribution of shares from stock dividends or recapitalizations of retained earnings and the potential
Definition of terms diluted shares (Stock options, Restricted Stock Options and Mandatory Free cash flow equals operating
EBITDA minus net interest expense, Convertible Shares). The shares issued because of share dividends, maintenance and
strategic capital expenditures, change in working recapitalizations and potential diluted shares are considered as issued at the
capital, taxes paid, and other cash items (net other expenses less beginning of the period. proceeds from the disposal of obsolete and/or
substantially depleted operating fixed assets that are no longer in operation and coupon payments on our perpetual notes). l-t-l % var percentage variations adjusted for investments/divestments and currency fluctuations.
Maintenance capital expenditures investments incurred for 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.
Net debt equals total debt (debt plus convertible bonds and financial leases) minus cash and cash equivalents.
Exchange rates January - December Fourth Quarter Fourth Quarter 2017 2016 2017
2016 2017 2016 Average Average Average
Average End of period End of period
Mexican peso 18.88 18.72 19.14 20.05 19.65 20.72 Euro
0.8817 0.9063 0.8452 0.9333 0.8331 0.9507 British pound
0.7707 0.7466 0.7478 0.8108 0.7405 0.8114
Amounts provided in units of local currency per US
dollar.
2017 Fourth Quarter Results Page 16
2017 Fourth Quarter Results Exhibit 3
This presentation contains forward-looking statements within the meaning of the U.S. federal securities laws. CEMEX, S.A.B. de C.V. and its direct and indirect subsidiaries (“CEMEX”) intends, but are not limited to, these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. 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 CEMEX’s current expectations and projections about future events based on CEMEX’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 CEMEX’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 CEMEX or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CEMEX’s exposure to other sectors that impact CEMEX’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX’s ability 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 existing indebtedness; the impact of CEMEX’s below investment grade debt rating on CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from CEMEX’s cost-reduction initiatives and implement CEMEX’s global pricing initiatives for CEMEX’s products; the increasing reliance on information technology infrastructure for CEMEX’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 CEMEX’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in these presentations is subject to change without notice, and CEMEX is not obligated to publicly update or revise forward-looking statements. Readers should review future reports filed by CEMEX with the U.S. Securities and Exchange Commission. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries
Higher like-to-like consolidated prices for our three core products during the quarter and the full year, on a year-over-year basis Sales on a like-to-like basis increased 3% during 2017 due to favorable prices in Mexico and the U.S., as well as higher cement volumes in the U.S. and Europe region 2017 operating EBITDA declined by 6% on a like-to-like basis, due to lower contributions in the SCAC, Europe and AMEA regions, partially offset by higher contributions in Mexico and the U.S. During 2017, operating EBITDA margin declined by 1.8pp 2017 operating EBITDA declined 6% on a like-to-like basis EBITDA variation Millions of U.S. dollars For footnotes 1 and 2, please refer to page 31. - 2 1 -7% -6% -5% -7%
Free cash flow conversion rate1 reached 50% Controlling interest net income Free cash flow Millions of U.S. dollars 1 Free cash flow conversion rate = Free cash flow after maintenance CAPEX / EBITDA 2 Includes Other Cash Items plus Free Cash Flow Discontinued Operations 2
Free cash flow and the proceeds from assets sales were mainly used for debt reduction during the year We have reduced total debt plus perpetuals by close to US$4.3 billion on a pro-forma basis, since December 2015, representing a reduction of approximately 28% Close to US$2.1 billion reduction in total debt Total debt plus perpetuals variation Millions of U.S. dollars 1 Includes: US$500 million from the U.S. Concrete Pipe Business, US$400 million from the Fairborn cement plant in the U.S., US$378 million from the stake of Grupo Cementos de Chihuahua, US$150 million from the Pacific Northwest Materials Business in the U.S., among others 2 Conversion of approximately US$325 million of 3.75% convertible notes due 2018 3 Mainly includes: ~US$250 million from financial fees & bond buyback premiums and ~US$115 from the conversion of operating leases to capital leases 4 US$350 million cash reserve created in December 2017 and used on January 2018, for the redemption of the 4.750% senior secured notes due 2022 1 2 4 3
We achieved our 2016-2017 targets to further bolster our road to investment grade Initiatives Achievements Targets 2016 & 2017 Asset divestments ~ US$2.7 billion US$2.5 billion Total debt reduction ~ US$4.3 billion on a pro-forma basis1 ~ US$4 billion 1 Including US$350 million cash reserve created in December 2017 used on January 2018, for the redemption of the 4.750% senior secured notes due 2022
Fourth Quarter 2017 Regional Highlights
2017 EBITDA increased by 11%, on a like-to-like basis, with margin expansion of 0.6pp Cement sales volumes increased by 8% during the quarter on a sequential basis supported by reconstruction activity-fueled demand and an improvement in our sequential market position Higher prices for our 3 core products during both the quarter and the full year In the industrial-and-commercial sector, favorable dynamics continued in shopping malls and tourism-related construction In the self-construction sector, indicators including the economic activity index, job creation and remittances continue improving In the formal residential sector, total investment for home acquisitions increased by 9% year-to-date November; INFONAVIT mortgage investment grew in the double digits during both the quarter and full year Mexico
2017 operating EBITDA increased by 9% with a margin expansion of 0.8pp, on a like-to-like basis On a like-to-like basis cement volumes increased 5% during the quarter while both ready-mix and aggregates volumes increased by 3% Higher quarterly and full-year prices on a like-to-like basis for our three core products; our cement prices increased by 5% during both the quarter and the full year Residential activity accelerated during the quarter; single-family housing starts and permits increased by 7% and 10%, respectively, during this period In the industrial-and-commercial sector, construction spending increased 2% year-to-date November, driven by lodging and commercial demand United States
On a like-to-like basis, regional cement, ready-mix and aggregates volumes decreased by 1%, 3% and 5%, respectively, during the quarter, and by 1%, 6% and 5%, respectively, during 2017 Our regional cement prices in local-currency terms during the quarter remained stable on a sequential basis In Colombia, cement volumes declined by 8% during the quarter, sequential cement prices increased by 2% In Panama, our cement volumes during the quarter declined by 3% affected by a slowdown in the high-income residential and industrial-and-commercial sectors Cement volumes in our TCL operations remained flat during the fourth quarter, on a like-to-like basis South, Central America and the Caribbean 2017 vs. 2016 4Q17 vs. 4Q16 4Q17 vs. 3Q17 Cement 13% 15% (2%) Ready mix (4%) (0%) (2%) Aggregates 1% 2% (1%) Volume 2017 vs. 2016 4Q17 vs. 4Q16 4Q17 vs. 3Q17 Cement (3%) 0% 0% Ready mix (0%) (3%) (4%) Aggregates (3%) (2%) (5%) Volume-weighted, local-currency average prices Price (LC)
EBITDA during the quarter on a year-over-year basis increased by 22% and EBITDA margin increased by 0.5 percentage points Improved economic fundamentals supported volume growth both during the quarter and the full year for our 3 core products In the UK, cement volumes declined by 1% during 2017 adjusted by the non-recurring industry sales that occurred mainly during the first half of 2016 In Spain, domestic gray cement volumes increased 28% during the full year reflecting favorable activity in the residential and industrial-and-commercial sectors In Germany, cement volumes increased 15% during 2017 driven by the residential sector and ongoing infrastructure projects In Poland, cement volumes increased 5% during the full year with improved pricing dynamics Europe 2017 vs. 2016 4Q17 vs. 4Q16 4Q17 vs. 3Q17 Cement 8% 13% (10%) Ready mix 4% 1% (4%) Aggregates 3% 1% (7%) Volume 2017 vs. 2016 4Q17 vs. 4Q16 4Q17 vs. 3Q17 Cement (1%) (2%) 0% Ready mix 1% 3% 2% Aggregates 0% 1% 1% Volume-weighted, local-currency average prices Price (LC)
Increase in quarterly regional volumes for our three core products; cement and ready-mix volumes increased in the double digits In the Philippines, our cement volumes increased by 10% during the quarter driven by higher infrastructure activity In Egypt, cement volumes growth during the quarter reflects higher demand in the residential and infrastructure sectors, as well as a low base of comparison versus the same period last year In Israel, our ready-mix and aggregates businesses achieved record quarterly and full year volumes Asia, Middle East and Africa 2017 vs. 2016 4Q17 vs. 4Q16 4Q17 vs. 3Q17 Cement (2%) 16% (2%) Ready mix 7% 18% 9% Aggregates 4% 2% 7% Volume 2017 vs. 2016 4Q17 vs. 4Q16 4Q17 vs. 3Q17 Cement (3%) (7%) (1%) Ready mix (0%) 1% 1% Aggregates 1% (4%) (5%) Volume-weighted, local-currency average prices Price (LC)
Fourth Quarter 2017 4Q17 Results
Operating EBITDA declined by 7% during the quarter on a like-to-like basis due to lower contributions in the USA, SCAC and AMEA regions, partially offset by higher contributions in Mexico and the Europe region Cost of sales, as a percentage of net sales, increased by 2.2pp during the quarter mainly reflecting higher energy costs Operating expenses, as a percentage of net sales, increased by 0.2pp during the quarter mainly driven by higher distribution expenses Operating EBITDA, cost of sales and operating expenses
Average working capital days Free cash flow Average working capital days during 2017 decreased to negative 5, from 3 days in 2016 Record level of negative 13 days during 4Q17
Other income statement items during 4Q17 Other expenses, net, of US$271 million mainly includes impairment of assets, severance payments, as well as the expense related to the antitrust fine in Colombia Foreign-exchange gain of US$58 million resulting primarily from the fluctuation of the Mexican peso versus the U.S. dollar, partially offset by the fluctuation of the Euro versus the U.S. dollar Gain on financial instruments of US$27 million mainly resulting from the remeasurement of CEMEX’s previous ownership interest in TCL of 39.5% Income tax had a negative effect of US$96 million mainly due to the write-down of deferred tax assets in the U.S. Controlling interest net loss of US$105 million, versus an income of US$214 million in 4Q16, mainly reflects lower operating earnings before other expenses, net, higher other expense, net, a lower foreign exchange gain, higher income tax, a negative variation in discontinued operations and higher non-controlling interest net income, partially offset by lower financial expenses, better results from financial instruments and higher equity in gain of associates
During the quarter, we: Paid US$328 million, the outstanding aggregate principal amount of the 9.375% senior secured notes due 2022, which were called in September 2017 and redeemed on October 2017 Issued €650 million of 2.75% euro-denominated senior secured notes due 2024 Called and paid US$611 million, the outstanding aggregate principal amount of the 6.500% senior secured notes due 2019 Sent a call notice in December 2017 for €400 million, the outstanding aggregate principal amount of the 4.750% senior secured notes due 2022, for redemption on January 2018 A US$350 million cash reserve was created in December 2017 and used for the redemption of these notes on January 2018 Debt-related information
Millions of U.S. dollars Avg. life of debt: 5.2 years CEMEX consolidated debt maturity profile Fixed Income Other bank debt Convertible Subordinated Notes Credit Agreement Total debt excluding perpetual notes as of December 31, 2017: US$10,901 million
Millions of U.S. dollars Avg. life of debt: 5.2 years 1 US$350 million cash reserve created in December 2017 and used on January 2018, for the redemption of the 4.750% senior secured notes due 2022 CEMEX consolidated debt maturity profile – pro forma1 Fixed Income Other bank debt Convertible Subordinated Notes Credit Agreement Total debt excluding perpetual notes as of December 31, 2017: US$10,551 million
Fourth Quarter 2017 2017 Outlook
2018 guidance 1 Including perpetual and convertible securities Consolidated volumes Cement: 2% Ready mix: 4% Aggregates: 2% Energy cost per ton of cement produced Increase of approximately 4% Capital expenditures US$550 million Maintenance CapEx US$250 million Strategic CapEx US$800 million Total CapEx Investment in working capital US$0 million Cash taxes US$250 to 300 million Cost of debt1 Reduction of approximately US$125 million
Significant achievements in the past three years despite FX headwinds Asset sales for approximately US$3.1 billion Reduced debt by close to US$5.3 billion1 Deleveraged2 from 5.19x to 3.85x EBITDA to free cash flow conversion rate increased from 15% to 50% Year-end closing working-capital days reduced from 19 to negative 23, resulting in a US$1.2 billion reduction in total working capital investment Controlling interest net income reached US$806 million, the highest in a decade, from a net loss of US$507 million three years ago Our cement kiln operational efficiency improved from 84% to 89% 1 Debt as of December 31, 2017 on a pro-forma basis reflecting the US$350 million cash reserve created in December 2017 and used on January 2018, for the redemption of the 4.750% senior secured notes due 2022 2 Consolidated Funded Debt (CFD) / EBITDA, CFD in accordance with our contractual obligations under the 2017 Credit Agreement, EBITDA calculated in accordance with IFRS
Fourth Quarter 2017 Appendix
During the quarter and on a like-to-like basis, higher year-over-year cement volumes in the U.S., Europe and AMEA regions Quarterly and full-year increases in our consolidated prices for our three core products, on a like-to-like basis Consolidated volumes and prices 2017 vs. 2016 4Q17 vs. 4Q16 4Q17 vs. 3Q17 Volume (l-t-l 1 ) 0% 4% (2%) Price (USD) 1% 4% (2%) Price (l-t-l 1 ) 3% 2% 0% Volume (l-t-l 1 ) 1% 3% (1%) Price (USD) 2% 7% (0%) Price (l-t-l 1 ) 1% 3% 0% Volume (l-t-l 1 ) 1% 1% (2%) Price (USD) 3% 8% (1%) Price (l-t-l 1 ) 2% 2% (1%) 1 Like-to-like volumes adjusted for investments/divestments and, in the case of prices, foreign-exchange fluctuations Aggregates Domestic gray cement Ready mix
Additional information on debt and perpetual notes Currency denomination Interest rate Third Quarter 2017 2016 % var 2017 Total debt 1 10,901 12,635 (14%) 11,111 Short-term 12% 1% 7% Long-term 88% 99% 93% Perpetual notes 448 438 2% 446 Total debt plus perpetual notes 11,349 13,073 (13%) 11,558 Cash and cash equivalents 699 561 25% 449 Net debt plus perpetual notes 10,650 12,513 (15%) 11,108 Consolidated Funded Debt 2 (CFD) 9,981 11,837 (16%) 10,448 CFD / EBITDA 3 3.85 4.22 3.98 Interest coverage 3 4 3.46 3.18 3.31 Fourth Quarter 1 Includes convertible notes and capital leases, in accordance with International Financial Reporting Standard (IFRS) 2 Consolidated funded debt, in accordance with our contractual obligations under the 2017 Credit Agreement 3 EBITDA calculated in accordance with IFRS 4 Interest expense in accordance with our contractual obligations under the 2017 Credit Agreement Millions of U.S. dollars Other7% U.S. dollar62%
Additional information on debt Total debt1 by instrument 2017 % of total 2016 % of total 2017 % of total Fixed Income 6,984 64% 8,538 68% 7,114 64% 2017 Credit Agreement 2,549 23% 2,745 22% 2,529 23% Convertible Subordinated Notes 870 8% 1,158 9% 865 8% Others 498 5% 194 2% 604 5% Total Debt 1 10,901 12,635 11,111 Millions of U.S. dollars 1 Includes convertible notes and capital leases, in accordance with IFRS Third Quarter Fourth Quarter
2017 volume and price summary: Selected countries Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico (4%) 16% 16% (3%) 9% 10% (3%) 11% 11% U.S. (6%) 3% 3% (2%) 1% 1% (3%) 5% 5% Colombia (6%) (17%) (19%) (13%) 0% (2%) (17%) 7% 4% Panama 3% (0%) (0%) 9% (0%) (0%) 13% (4%) (4%) Costa Rica 3% (7%) (3%) 11% (14%) (10%) 36% (50%) (49%) UK (6%) (2%) 1% (2%) (3%) 0% (4%) (3%) 1% Spain 28% (2%) (4%) 4% 10% 6% 25% 10% 7% Germany 15% 3% (0%) (3%) 6% 2% (1%) 6% 2% Poland 5% 9% 3% 5% 7% 1% 12% 9% 2% France N/A N/A N/A 7% 4% 1% 10% 3% 0% Philippines (0%) (15%) (10%) N/A N/A N/A N/A N/A N/A Egypt (6%) (42%) 10% (4%) (48%) (3%) (14%) (31%) 23% Aggregates 2017 vs. 2016 Domestic gray cement 2017 vs. 2016 Ready mix 2017 vs. 2016
4Q17 volume and price summary: Selected countries Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico (4%) 17% 11% (5%) 17% 12% (2%) 14% 9% U.S. (3%) 4% 4% 2% 2% 2% 1% 4% 4% Colombia (8%) (11%) (12%) (8%) (2%) (4%) (12%) 5% 4% Panama (3%) 0% 0% (12%) (2%) (2%) (1%) (8%) (8%) Costa Rica 17% (4%) (2%) 43% (7%) (5%) 65% (44%) (43%) UK 0% 5% (3%) (3%) 7% (1%) (4%) 9% 1% Spain 42% 3% (6%) 15% 17% 6% 11% 15% 4% Germany 16% 10% 0% (13%) 15% 5% (4%) 14% 4% Poland 15% 18% 3% 3% 20% 4% (1%) 16% 1% France N/A N/A N/A 7% 13% 3% 7% 12% 2% Philippines 10% (12%) (9%) N/A N/A N/A N/A N/A N/A Egypt 23% (24%) 4% (8%) (21%) 3% (48%) 4% 41% Ready mix Aggregates 4Q17 vs. 4Q16 4Q17 vs. 4Q16 Domestic gray cement 4Q17 vs. 4Q16
2018 expected outlook: Selected countries
Definitions 2017 / 2016 Results for the twelve months of the years 2017 and 2016, respectively AMEA Asia, Middle East and Africa Cement When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for reported cement volumes changed from total domestic cement including clinker to domestic gray cement) Cement kiln operational efficency Volume produced/available capacity, available capacity = nominal capacity x (total hours - scheduled down time) LC Local currency l-t-l % var Like-to-like percentage variations adjusted for investments/divestments and currency fluctuations Maintenance capital expenditures Investments incurred for 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 Operating EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products SCAC South, Central America and the Caribbean Strategic capital expenditures Investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs % var Percentage variation
Footnotes from slide 3 1 For 4Q16, net amount that includes results of ~US$10 million from Trinidad Cement Limited (“TCL”), consolidated by CEMEX since February 2017, and an aggregate amount of negative ~US$14 million related mainly to results of the Fairborn cement plant, sold in February 2017, and of the Odessa cement plant, sold in November 2016. 1 For 2016, net amount that includes results of ~US$70 million from Trinidad Cement Limited (“TCL”), consolidated by CEMEX since February 2017, and an aggregate amount of negative ~US$53 million related to the results of the Fairborn cement plant, sold in February 2017, and of the Odessa cement plant, sold in November 2016. 2 Net amount that includes ~US$2 million from the Fairborn cement plant January 2017 results and negative ~US$4 million from Trinidad Cement Limited (“TCL”) January 2017 results.
Contact information Stock Information NYSE (ADS): CX Mexican Stock Exchange: CEMEXCPO Ratio of CEMEXCPO to CX: 10 to 1 Investor Relations In the United States +1 877 7CX NYSE In Mexico +52 81 8888 4292 ir@cemex.com