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 July, 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 66265, México
(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 July 26, 2018, announcing second quarter 2018 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | Second quarter 2018 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 3. | Presentation regarding second quarter 2018 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. | ||||||||||
| (Registrant) | ||||||||||
| Date: | July 26, 2018 |
By: | /s/ Rafael Garza Lozano | |||||||
| Name: Rafael Garza Lozano | ||||||||||
| Title: Chief Comptroller | ||||||||||
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EXHIBIT INDEX
| EXHIBIT NO. |
DESCRIPTION | |
| 1. | Press release, dated July 26, 2018, announcing second quarter 2018 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. | Second quarter 2018 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 3. | Presentation regarding second quarter 2018 results for CEMEX, S.A.B. de C.V. (NYSE: CX). | |
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Exhibit 1
| Media Relations | Investor Relations | Analyst Relations | ||
| Jorge Pérez | Eduardo Rendón | Lucy Rodriguez | ||
| +52(81) 8888-4334 | +52(81) 8888-4256 | +1(212) 317-6007 | ||
| mr@cemex.com | ir@cemex.com | ir@cemex.com |
CEMEX ANNOUNCES AN INCREASE IN NET INCOME OF 32%
DURING THE SECOND QUARTER AND A COMPREHENSIVE PLAN
TO ENHANCE TOTAL SHAREHOLDER RETURN
| • | Operating EBITDA during the second quarter increased by 4% on a like-to-like basis versus the comparable period of 2017. |
| • | Net income increased 32% on a year-over-year basis, reaching US$382 million during the second quarter. |
| • | “A Stronger CEMEX” plan announced to accelerate company’s path to investment grade and deliver increased shareholder value. |
MONTERREY, MEXICO, JULY 26, 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 7% during the second quarter of 2018 to US$3.8 billion versus the comparable period in 2017. Operating EBITDA on a like-to-like basis increased by 4% during the second quarter of 2018 to US$714 million versus the comparable period in 2017.
CEMEX’s Consolidated Second-Quarter 2018 Financial and Operational Highlights
| • | The increase in quarterly consolidated net sales was due to higher prices of our products, in local currency terms in all of our regions, as well as higher volumes in Mexico, the U.S., and our Europe and Asia, Middle East & Africa regions. |
| • | Operating earnings before other expenses, net, in the second quarter increased by 8%, to US$504 million on a like-to-like basis. |
| • | Controlling interest net income during the quarter was US$382 million from an income of US$288 million in the same period of 2017. |
| • | Operating EBITDA on a like-to-like basis increased by 4% during the quarter compared to the same period in 2017, to US$714 million. |
| • | Operating EBITDA margin during the quarter decreased to 18.8% from 19.5% in the same period of 2017. |
| • | Free cash flow after maintenance capital expenditures for the quarter decreased by 26% to negative US$260 million, compared to the same quarter of 2017. |
Fernando A. Gonzalez, Chief Executive Officer of CEMEX, said: “We are encouraged by the very favorable volume dynamics we saw in most of our portfolio during the quarter, with improvements in pricing which should translate into higher profitability during the second half of the year. Our operations in the U.S. and Europe indicate a strong sequential growth in volumes resulting from strong demand and pent-up activity after adverse weather conditions in the first quarter, as well as improved pricing dynamics. In Mexico, we are pleased with the year-over-year, double-digit growth in ready-mix and aggregates volumes and high-single-digit increase in prices. In addition, in our Asia, Middle East and Africa region, we saw a high-single-digit growth in cement volumes in the Philippines and Egypt with favorable sequential pricing dynamics.
Our net income increased by 32% on a year-over-year basis, reaching US$382 million during the quarter. In addition, our total debt plus perpetual notes declined by US$462 million during the quarter, and by US$6.6 billion since the end of 2013.
With the objective of accelerating our path to investment grade and enhancing total shareholder return, today we are announcing «A Stronger CEMEX», a plan designed to reposition our portfolio toward higher growth. During the next 2.5 years, we will work to optimize our portfolio by focusing on markets with the greatest long-term growth potential and selling between US$1.5 and 2 billion of assets. We will also implement actions to achieve US$150 million in cost savings as an opportunity to continue improving our profitability. Furthermore, we will reduce our total debt by US$3.5 billion by the end of 2020, and we will return capital to our shareholders through an annual cash dividend starting with US$150 million in 2019.”
Consolidated Corporate Results
During the second quarter of 2018, controlling interest net income was US$382 million, versus an income of US$288 million in the same period last year.
Total debt plus perpetual notes decreased by US$462 million during the quarter.
Geographical Markets Second-Quarter 2018 Highlights
Net sales in our operations in Mexico, on a like-to-like basis, increased 13% in the second quarter of 2018 to US$867 million. Operating EBITDA, on a like-to-like basis increased by 8% to US$311 million in the quarter, versus the same period of last year.
CEMEX’s operations in the United States reported net sales of US$989 million in the second quarter of 2018, an increase of 9% on a like-to-like basis from the same period in 2017. Operating EBITDA increased by 11% on a like-to-like basis to US$189 million versus the same quarter of 2017.
CEMEX’s operations in South, Central America and the Caribbean reported net sales of US$461 million during the second quarter of 2018, remaining flat on a like-to-like basis over the same period of 2017. Operating EBITDA decreased by 9% to US$110 million in the second quarter of 2018, from US$120 million in the same quarter of 2017.
In Europe, net sales for the second quarter of 2018 increased by 6% on a like-to-like basis to US$1,040 million from the second quarter of 2017. Operating EBITDA was US$121 million for the quarter, 5% higher than the same period last year on a like-to-like basis.
Operations in Asia, Middle East and Africa reported a 10% increase in net sales for the second quarter of 2018, to US$353 million, versus the same quarter of 2017 on a like-to-like basis. Operating EBITDA for the quarter was US$52 million, 8% higher on a like-to-like basis than 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, including the objectives under the “A Stronger CEMEX” plan, 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. Readers are urged to read this press release and carefully consider the risks, uncertainties and other factors that affect CEMEX’s business. The information contained in this press release 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.
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
SECOND 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 E-Mail: ir@cemex.com 1
Operating and financial highlights January—June Second Quarter l-t-l l-t-l 2018 2017 % var % var 2018 2017 % var % var Consolidated cement volume 34,704 33,709 3% 18,629 17,838 4% Consolidated ready-mix volume 26,148 25,436 3% 13,923 13,207 5% Consolidated aggregates volume 72,934 72,764 0% 39,532 38,854 2% Net sales 7,185 6,687 7% 5% 3,805 3,568 7% 7% Gross profit 2,409 2,248 7% 5% 1,331 1,244 7% 8% as % of net sales 33.5% 33.6% (0.1pp) 35.0% 34.9% 0.1pp Operating earnings before other 840 826 2% 3% 504 479 5% 8% expenses, net as % of net sales 11.7% 12.3% (0.6pp) 13.2% 13.4% (0.2pp) Controlling interest net income (loss) 416 626 (34%) 382 288 32% Operating EBITDA 1,252 1,249 0% 0% 714 696 2% 4% as % of net sales 17.4% 18.7% (1.3pp) 18.8% 19.5% (0.7pp) Free cash flow after maintenance 117 183 (36%) 260 353 (26%) capital expenditures Free cash flow 78 126 (38%) 231 324 (29%) Total debt plus perpetual notes 10,890 11,927 (9%) 10,890 11,927 (9%) Earnings (loss) of continuing operations 0.27 0.30 (9%) 0.25 0.18 41% per ADS Fully diluted earnings (loss) of (1) 0.27 0.30 (9%) 0.24 0.17 40% continuing operations per ADS Average ADSs outstanding 1,540.7 1,494.1 3% 1,541.3 1,497.6 3% Employees 41,822 40,032 4% 41,822 40,032 4% This information does not include discontinued operations. Please see page 15 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 period January-June 2018, 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 second quarter of 2018 reached US$3.8 billion, representing an increase of 7% on a like-to-like basis, for the ongoing operations and for foreign exchange fluctuations, as well as in nominal terms, compared with the second quarter of 2017. The increase on a like-to-like basis was due to higher prices of our products, in local-currency terms in all our regions, as well as higher volumes in Mexico, the U.S. and our European and Asia, Middle East and Africa regions. Cost of sales as a percentage of net sales decreased by 0.1pp during the second quarter of 2018 compared with the same period last year, from 65.1% to 65.0%. The decrease was mainly driven by the timing in maintenance expenses. Operating expenses as a percentage of net sales increased by 0.3pp during the second quarter of 2018 compared with the same period last year, from 21.4% to 21.7%. The increase was mainly driven by higher distribution expenses. Operating EBITDA increased by 2% to US$714 million during the second quarter of 2018 compared with the same period last year, or an increase of 4% on a like-to-like basis for the ongoing operations and foreign exchange fluctuations. The increase on a like-to-like basis was mainly due to higher contributions in Mexico, the U.S. as well as our European and Asia, Middle East and Africa regions. Operating EBITDA margin decreased by 0.7pp from 19.5% in the second quarter of 2017 to 18.8% this quarter. Gain (loss) on financial instruments for the quarter was a gain of US$25 million, resulting mainly from the derivatives related to GCC shares. Foreign exchange results for the quarter was a gain of US$102 million, mainly due to the fluctuation of the Mexican peso versus the U.S. dollar, partially offset by the fluctuation of the Euro and the Colombian peso versus the U.S. dollar. Controlling interest net income (loss) was an income of US$382 million in the second quarter of 2018 versus an income of US$288 million in the same quarter of 2017. The higher income primarily reflects higher operating earnings before other expenses, net, lower financial expenses, higher income from financial instruments and a higher foreign exchange gain, partially offset by higher other expenses, net, higher income tax, and a negative variation in discontinued operations in the U.S. Total debt plus perpetual notes decreased by US$462 million during the quarter 2018 Second Quarter Results Page 2
Operating results Mexico January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 1,669 1,533 9% 8% 867 810 7% 13% Operating EBITDA 610 567 7% 7% 311 302 3% 8% Operating EBITDA margin 36.5% 37.0% (0.5pp) 35.8% 37.3% (1.5pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage Second Second Second January—June January—June January—June variation Quarter Quarter Quarter Volume (0%) 3% 10% 15% 11% 14% Price (USD) 4% (2%) 10% 3% 7% 3% Price (local currency) 4% 3% 9% 9% 7% 8% In Mexico, our domestic gray cement, ready-mix and aggregates volumes increased by 3%, 15%, and 14%, respectively, during the second quarter versus the same period last year. During the first six months of the year, ready-mix and aggregates volumes increased by 10% and 11%, respectively, while domestic gray cement volumes remained flat versus the comparable period of 2017. Domestic gray cement prices in local currency increased by 3% year-over-year and by 1% sequentially during the quarter. Our volumes during the quarter increased mainly due to favorable activity in the formal housing and industrial-and-commercial sectors. Sequential volumes of our three core products‘cement, ready-mix and aggregates‘grew by 11%. The self-construction sector moderated its growth during the quarter, and remains supported by sound economic indicators including job creation, real wages, and remittances. United States January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 1,844 1,731 7% 8% 989 916 8% 9% Operating EBITDA 298 287 4% 5% 189 170 11% 11% Operating EBITDA margin 16.2% 16.6% (0.4pp) 19.1% 18.6% 0.5pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year Second January—June January—June Second Quarter January—June Second Quarter percentage variation Quarter Volume 7% 9% 8% 8% 2% (1%) Price (USD) 3% 3% 2% 3% 5% 6% Price (local currency) 3% 3% 2% 3% 5% 6% In the United States, our domestic gray cement and ready-mix volumes increased by 9% and 8%, respectively, while our aggregates volumes decreased by 1%, during the second quarter of 2018 on a year-over-year basis. During the first six months of the year, domestic gray cement, ready-mix and aggregates volumes increased by 7%, 8% and 2%, respectively, on a year-over-year basis. Cement prices during the quarter, increased by 3% both year-over-year and sequentially. During the second quarter, we experienced the strongest cement volume growth in 12 quarters, supported by expanding underlying demand conditions coupled with recovery from poor weather conditions in the prior quarter. Residential activity continued to drive the market in the second quarter, with housing starts up 8% year-over-year. In the industrial-and-commercial sector, construction spending is up 3% May year-to-date with strength in lodging and commercial. In infrastructure, street-and-highway spending has been increasing this year, up 3% May year-to-date on the back of increased state spending. Contract awards in our key states are growing in excess of the national average, driven by specific state infrastructure funding initiatives. 2018 Second Quarter Results Page 3
Operating results South, Central America and the Caribbean January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 916 942 (3%) (3%) 461 470 (2%) 0% Operating EBITDA 214 254 (16%) (17%) 110 120 (9%) (9%) Operating EBITDA margin 23.4% 27.0% (3.6pp) 23.7% 25.6% (1.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage Second Second January—June Second Quarter January—June January—June variation Quarter Quarter Volume (2%) (2%) (13%) (14%) (9%) (12%) Price (USD) 2% 3% (1%) (2%) (3%) (0%) Price (local currency) 2% 3% (2%) (3%) (4%) (2%) In our South, Central America and the Caribbean region, our domestic gray cement volumes decreased by 2% during the second quarter and first six months of 2018, versus the comparable periods of 2017. Cement volumes on a like-to-like basis, including the regional operations of TCL, decreased by 2% and 4% during the second quarter and first six months of the year, respectively. In Colombia, during the second quarter and on a year-over-year basis, our domestic gray cement and ready-mix volumes decreased by 9% and 11%, respectively. During the first six months of the year, our domestic gray cement and ready-mix volumes decreased by 10% and 14%, respectively, versus the same period of 2017. Cement consumption during the quarter was affected by a weak demand environment; our focus on our pricing combined with subdued construction activity led to an underperformance versus the industry during the quarter. Our quarterly cement prices in local-currency-terms increased by 1% on a sequential basis. Europe January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 1,851 1,666 11% 1% 1,040 934 11% 6% Operating EBITDA 140 139 0% (9%) 121 109 11% 5% Operating EBITDA margin 7.5% 8.4% (0.9pp) 11.7% 11.7% 0.0pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—June Second Quarter January—June Second Quarter January—June Second Quarter variation Volume 2% 5% (3%) 4% (4%) 1% Price (USD) 10% 7% 13% 8% 12% 9% Price (local currency) 1% 2% 3% 2% 3% 4% In the Europe region, our domestic gray cement, ready-mix and aggregates volumes increased by 5%, 4%, and 1%, respectively, during the second quarter of 2018 on a year-over-year basis. During the first six months of the year our domestic cement increased by 2% while ready-mix and aggregates volumes decreased by 3% and 4%, respectively, compared with the same period in the previous year. In the United Kingdom, our domestic gray cement and ready-mix volumes decreased by 3% and 1%, respectively, while aggregates volumes increased by 2% during the second quarter of 2018 on a year-over-year basis. During the first six months of the year, our domestic gray cement, ready-mix and aggregates volumes decreased by 3%, 6% and 4%, respectively, versus the comparable period in 2017. The residential and infrastructure sectors were the main drivers of demand during the quarter. In Spain, our domestic gray cement, ready-mix and aggregates volumes increased by 7%, 36% and 26%, respectively, during the quarter and on a year-over-year basis. For the first six months of the year our domestic gray cement, ready-mix and aggregates volumes increased by 5%, 25% and 11%, respectively, versus the comparable period in 2017. Our cement volume growth during the quarter reflects continued favorable activity from the residential and industrial-and-commercial sectors. The residential sector benefited from favorable credit conditions, job creation, and pent-up housing demand. 2018 Second Quarter Results Page 4
Operating results In Germany, our domestic gray cement and aggregates volumes increased by 5% and 4%, respectively, while ready-mix volumes decreased by 3%, during the second quarter of 2018 compared with the same period of last year. During the first six months of the year, our domestic gray cement volumes increased by 3%, while ready-mix and aggregates volumes decreased by 6% and 4%, respectively, on a year-over-year basis. The business climate for the construction sector remains favorable, although activity continues to be affected by supply constraints. In Poland, both domestic gray cement and ready-mix volumes during the second quarter of 2018 increased by 17%, and aggregates volumes increased 3%. During the first six months of the year, our domestic gray cement volumes, ready-mix and aggregates volumes increased by 9%, 2%, and 4%, respectively, versus the comparable period in 2017. Our cement prices in local-currency terms during the quarter increased by 5% on a year-over-year basis and by 4% sequentially. The increase in cement volumes during the quarter was mainly due to a strong residential sector and our participation in large infrastructure projects. In our operations in France, both ready-mix and aggregates volumes increased by 1% during the second quarter of 2018 and on a year-over-year basis. During the first six months of the year and on a year-over-year basis, both ready-mix and aggregates volumes decreased by 4%. Volume growth during the quarter reflects continued activity in the industrial-and-commercial sector as well as ‘Grand Paris‘-related projects. Asia, Middle East and Africa January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 728 653 11% 12% 353 327 8% 10% Operating EBITDA 114 113 1% 1% 52 49 6% 8% Operating EBITDA margin 15.7% 17.3% (1.6pp) 14.8% 15.0% (0.2pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—June Second Quarter January—June Second Quarter January—June Second Quarter variation Volume 13% 6% 3% 2% 1% 4% Price (USD) (0%) 3% 8% 6% 5% 2% Price (local currency) 3% 6% 5% 7% 3% 3% Our domestic gray cement volumes in the Asia, Middle East and Africa region during the second quarter and first six months of the year increased by 6% and 13%, respectively, on a year-over-year basis. In the Philippines, our domestic gray cement volumes during the second quarter and first six months of 2018 increased by 8% and 12%, respectively, versus the comparable periods in the previous year. The increase in volumes during the quarter reflects higher public infrastructure activity and sustained growth from the residential sector. In Egypt, our domestic gray cement volumes increased by 7% and 18% during the second quarter of 2018 and the first six months of the year, respectively, versus the comparable periods in the previous year. Volume improvement reflects higher cement dispatches to Lower Egypt partly related to the temporary stoppage of two cement plants in the Sinai region. In Israel, our ready-mix and aggregates volumes during the quarter increased by 8% and 10%, respectively. For the first six months of the year, ready-mix and aggregates volumes both increased by 5%, on a year-over-year basis. 2018 Second Quarter Results Page 5
Operating EBITDA, free cash flow and debt-related information Operating EBITDA and free cash flow January—June Second Quarter 2018 2017 % var 2018 2017 % var Operating earnings before other expenses, net 840 826 2% 504 479 5% + Depreciation and operating amortization 412 424 210 218 Operating EBITDA 1,252 1,249 0% 714 696 2%—Net financial expense 332 438 160 213 —Maintenance capital expenditures 174 156 96 99 —Change in working capital 417 298 64 (90) —Taxes paid 148 162 97 115 —Other cash items (net) 64 21 38 9 —Free cash flow discontinued operations (1) (8) (0) (4) Free cash flow after maintenance capital expenditures 117 183 (36%) 260 353 (26%)—Strategic capital expenditures 39 57 30 29 Free cash flow 78 126 (38%) 231 324 (29%) In millions of US dollars, except percentages. During the quarter, free cash flow was mainly used for debt repayment. Our total debt plus perpetual notes during the quarter reflects a favorable foreign exchange conversion effect of US$184 million. Information on debt and perpetual notes First Second Quarter Quarter Second Quarter 2018 2017 % var 2018 2018 2017 Total debt (1) 10,444 11,483 (9%) 10,902 Currency denomination Short-term 5% 5% 4% US dollar 66% 75% Long-term 95% 95% 96% Euro 26% 21% Perpetual notes 446 444 0% 450 Mexican peso 0% 1% Total debt plus perpetual notes 10,890 11,927 (9%) 11,352 Other 7% 3% Cash and cash equivalents 308 418 (26%) 311 Net debt plus perpetual notes 10,582 11,509 (8%) 11,041 Interest rate Fixed 61% 72% Consolidated funded debt (CFD) (2) 10,219 10,827 10,802 Variable 39% 28% CFD (2) / EBITDA (3) 3.96 4.04 4.22 (3) (4) Interest coverage 4.13 3.39 3.85 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. 2018 Second 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 15,086,694,589 Stock-based compensation 17,963,767 End-of-quarter CPO-equivalent units outstanding 15,104,658,356 Outstanding CEMEX also has units outstanding equal total mandatorily CEMEX CPO-equivalent convertible securities units less which, CPOs held upon in conversion, subsidiaries, will which increase as of the June number 30, 2018 of were CPOs 20,541,277. outstanding by approximately 236 million, subject to antidilution adjustments. Employee long-term compensation plans As of June 30, 2018, our executives held 31,141,305 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. Second Quarter First Quarter 2018 2017 2018 In millions of US dollars. Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value Exchange rate derivatives (1) 1,247 42 888 (41) 1,216 (55) Equity related derivatives (2) (5) 168 31 289 24 168 1 Interest rate swaps (3) 1,132 6 142 21 137 15 Fuel derivatives (4) 54 20 91—67 14 2,601 99 1,410 4 1,588 (25) (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 June 30, 2018 to forwards, net of cash collateral, over the shares of Grupo Cementos Chihuahua, S.A.B. de C.V. (3) As of June 30,2017, includes Interest-rate swap derivatives related to our long-term energy contracts. In addition, it includes interest-rate swap instruments related to bank loans with a nominal amount of US$1,000 million that were signed in the three-month period ended in June 30, 2018. (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 June 30, 2018 and 2017 includes a liability of US$8 million and of US$44 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 June 30, 2018, 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$99 million, including a liability of US$8 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. 2018 Second 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—June Second Quarter like-to-like like-to-like INCOME STATEMENT 2018 2017 % var % var 2018 2017 % var % var Net sales 7,184,872 6,687,280 7% 5% 3,804,821 3,567,785 7% 7% Cost of sales (4,775,790) (4,439,772) (8%) (2,474,241) (2,323,696) (6%) Gross profit 2,409,083 2,247,508 7% 5% 1,330,580 1,244,089 7% 8% Operating expenses (1,569,157) (1,421,957) (10%) (826,628) (765,170) (8%) Operating earnings before other expenses, net 839,925 825,551 2% 3% 503,952 478,919 5% 8% Other expenses, net (34,759) 135,468 N/A (35,683) (9,533) (274%) Operating earnings 805,166 961,018 (16%) 468,269 469,385 (0%) Financial expense (344,653) (541,094) 36% (159,241) (272,659) 42% Other financial income (expense), net 67,092 3,296 1936% 119,537 (22,317) N/A Financial income 9,421 9,020 4% 4,701 4,282 10% Results from financial instruments, net 58,845 108,676 (46%) 25,277 7,712 228% Foreign exchange results 24,410 (88,023) N/A 102,087 (20,676) N/A Effects of net present value on assets and liabilities and others, net (25,584) (26,378) 3% (12,527) (13,635) 8% Equity in gain (loss) of associates 11,763 9,576 23% 9,888 7,912 25% Income (loss) before income tax 539,369 432,796 25% 438,453 182,321 140% Income tax (102,005) 42,201 N/A (49,283) 92,336 N/A Profit (loss) of continuing operations 437,364 474,997 (8%) 389,170 274,656 42% Discontinued operations 56 183,595 (100%) 16 27,040 (100%) Consolidated net income (loss) 437,420 658,592 (34%) 389,186 301,696 29% Non-controlling interest net income (loss) 21,240 32,570 (35%) 7,541 13,259 (43%) Controlling interest net income (loss) 416,180 626,022 (34%) 381,645 288,438 32% Operating EBITDA 1,252,335 1,249,462 0% 0% 713,656 696,460 2% 4% Earnings (loss) of continued operations per ADS 0.27 0.30 (9%) 0.25 0.18 41% Earnings (loss) of discontinued operations per ADS 0.00 0.12 (100%) 0.00 0.02 (100%) As of June 30 BALANCE SHEET 2018 2017 % var Total assets 28,590,428 29,390,662 (3%) Cash and cash equivalents 308,261 417,706 (26%) Trade receivables less allowance for doubtful accounts 1,809,637 1,751,959 3% Other accounts receivable 286,737 293,376 (2%) Inventories, net 1,020,267 1,009,237 1% Assets held for sale 95,771 247,142 (61%) Other current assets 167,897 183,428 (8%) Current assets 3,688,570 3,902,847 (5%) Property, machinery and equipment, net 11,487,588 11,812,024 (3%) Other assets 13,414,270 13,675,791 (2%) Total liabilities 17,526,239 18,613,490 (6%) Liabilities held for sale 2,550 384 563% Other current liabilities 4,844,944 4,597,669 5% Current liabilities 4,847,494 4,598,054 5% Long-term liabilities 9,347,161 10,306,408 (9%) Other liabilities 3,331,584 3,709,028 (10%) Total stockholder’s equity 11,064,190 10,777,172 3% Non-controlling interest and perpetual instruments 1,546,811 1,467,831 5% Total controlling interest 9,517,379 9,309,341 2% 2018 Second 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—June Second Quarter INCOME STATEMENT 2018 2017 % var 2018 2017 % var Net sales 136,871,815 128,462,652 7% 74,232,066 66,111,060 12% Cost of sales (90,978,791) (85,288,018) (7%) (48,272,442) (43,058,091) (12%) Gross profit 45,893,024 43,174,634 6% 25,959,623 23,052,968 13% Operating expenses (29,892,450) (27,315,802) (9%) (16,127,516) (14,178,603) (14%) Operating earnings before other expenses, net 16,000,574 15,858,832 1% 9,832,108 8,874,366 11% Other expenses, net (662,157) 2,602,331 N/A (696,181) (176,653) (294%) Operating earnings 15,338,417 18,461,163 (17%) 9,135,927 8,697,713 5% Financial expense (6,565,649) (10,394,421) 37% (3,106,795) (5,052,379) 39% Other financial income (expense), net 1,278,111 63,312 1919% 2,332,173 (413,533) N/A Financial income 179,469 173,282 4% 91,711 79,343 16% Results from financial instruments, net 1,121,005 2,087,672 (46%) 493,146 142,908 245% Foreign exchange results 465,010 (1,690,919) N/A 1,991,710 (383,134) N/A Effects of net present value on assets and liabilities and others, net (487,374) (506,723) 4% (244,394) (252,650) 3% Equity in gain (loss) of associates 224,094 183,960 22% 192,921 146,602 32% Income (loss) before income tax 10,274,973 8,314,014 24% 8,554,225 3,378,403 153% Income tax (1,943,192) 810,686 N/A (961,520) 1,710,978 N/A Profit (loss) of continuing operations 8,331,781 9,124,700 (9%) 7,592,705 5,089,381 49% Discontinued operations 1,070 3,526,859 (100%) 304 501,047 (100%) Consolidated net income (loss) 8,332,851 12,651,558 (34%) 7,593,009 5,590,428 36% Non-controlling interest net income (loss) 404,616 625,676 (35%) 147,115 245,680 (40%) Controlling interest net income (loss) 7,928,235 12,025,883 (34%) 7,445,894 5,344,748 39% Operating EBITDA 23,856,983 24,002,168 (1%) 13,923,425 12,905,401 8% Earnings (loss) of continued operations per ADS 5.17 5.72 (10%) 4.84 3.25 49% Earnings (loss) of discontinued operations per ADS 0.00 2.36 (100%) 0.00 0.33 (100%) As of June 30 2018 2017 % var BALANCE SHEET Total assets 569,521,333 533,146,600 7% Cash and cash equivalents 6,140,555 7,577,192 (19%) Trade receivables less allowance for doubtful accounts 36,047,972 31,780,528 13% Other accounts receivable 5,711,804 5,321,832 7% Inventories, net 20,323,727 18,307,560 11% Assets held for sale 1,907,760 4,483,150 (57%) Other current assets 3,344,504 3,327,376 1% Current assets 73,476,322 70,797,639 4% Property, machinery and equipment, net 228,832,743 214,270,116 7% Other assets 267,212,267 248,078,845 8% Total liabilities 349,122,672 337,648,708 3% Liabilities held for sale 50,794 6,974 628% Other current liabilities 96,511,282 83,401,719 16% Current liabilities 96,562,075 83,408,693 16% Long-term liabilities 186,195,443 186,958,247 (0%) Other liabilities 66,365,153 67,281,768 (1%) Total stockholders’ equity 220,398,661 195,497,892 13% Non-controlling interest and perpetual instruments 30,812,468 26,626,449 16% Total controlling interest 189,586,193 168,871,443 12% 2018 Second Quarter Results Page 9
Operating results Operating Summary per Country In thousands of U.S. dollars January—June Second Quarter like-to-like like-to-like 2018 2017 % var % var 2018 2017 % var % var NET SALES Mexico 1,668,561 1,532,538 9% 8% 867,320 810,175 7% 13% U.S.A. 1,844,376 1,730,738 7% 8% 988,855 916,160 8% 9% South, Central America and the Caribbean 916,207 941,942 (3%) (3%) 461,485 469,792 (2%) 0% Europe 1,851,035 1,665,602 11% 1% 1,040,384 933,926 11% 6% Asia, Middle East and Africa 727,936 652,887 11% 12% 353,123 326,576 8% 10% Others and intercompany eliminations 176,758 163,574 8% 11% 93,653 111,156 (16%) (24%) TOTAL 7,184,872 6,687,280 7% 5% 3,804,821 3,567,785 7% 7% GROSS PROFIT Mexico 905,883 818,080 11% 10% 468,599 443,721 6% 11% U.S.A. 502,656 447,012 12% 13% 296,706 252,450 18% 18% South, Central America and the Caribbean 332,569 365,361 (9%) (9%) 167,480 177,874 (6%) (5%) Europe 446,907 406,089 10% 0% 288,996 259,833 11% 6% Asia, Middle East and Africa 207,119 199,521 4% 5% 102,429 94,373 9% 11% Others and intercompany eliminations 13,947 11,445 22% 22% 6,370 15,839 (60%) (60%) TOTAL 2,409,083 2,247,508 7% 5% 1,330,580 1,244,089 7% 8% OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Mexico 553,409 509,072 9% 8% 282,977 272,166 4% 9% U.S.A. 145,736 111,994 30% 34% 110,999 82,191 35% 36% South, Central America and the Caribbean 169,959 209,146 (19%) (20%) 87,168 97,201 (10%) (10%) Europe 37,877 45,288 (16%) (24%) 69,865 59,579 17% 10% Asia, Middle East and Africa 82,521 82,170 0% 1% 35,967 33,558 7% 9% Others and intercompany eliminations (149,577) (132,120) (13%) (1%) (83,024) (65,776) (26%) (28%) TOTAL 839,925 825,551 2% 3% 503,952 478,919 5% 8% 2018 Second 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—June Second Quarter like-to-like like-to-like OPERATING EBITDA 2018 2017 % var % var 2018 2017 % var % var Mexico 609,713 567,468 7% 7% 310,794 301,965 3% 8% U.S.A. 298,040 287,039 4% 5% 188,609 170,134 11% 11% South, Central America and the Caribbean 213,996 254,149 (16%) (17%) 109,514 120,453 (9%) (9%) Europe 139,668 139,256 0% (9%) 121,362 108,862 11% 5% Asia, Middle East and Africa 114,112 112,977 1% 1% 52,113 49,071 6% 8% Others and intercompany eliminations (123,195) (111,426) (11%) 4% (68,737) (54,024) (27%) (30%) TOTAL 1,252,335 1,249,462 0% 0% 713,656 696,460 2% 4% OPERATING EBITDA MARGIN Mexico 36.5% 37.0% 35.8% 37.3% U.S.A. 16.2% 16.6% 19.1% 18.6% South, Central America and the Caribbean 23.4% 27.0% 23.7% 25.6% Europe 7.5% 8.4% 11.7% 11.7% Asia, Middle East and Africa 15.7% 17.3% 14.8% 15.0% TOTAL 17.4% 18.7% 18.8% 19.5% 2018 Second 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 —June Second Quarter 2018 2017 % var 2018 2017 % var Consolidated cement volume (1) 34,704 33,709 3% 18,629 17,838 4% Consolidated ready-mix volume 26,148 25,436 3% 13,923 13,207 5% Consolidated aggregates volume 72,934 72,764 0% 39,532 38,854 2% Per-country volume summary January—June Second Quarter Second Quarter 2018 vs. DOMESTIC GRAY CEMENT VOLUME 2018 vs. 2017 2018 vs. 2017 First Quarter 2018 Mexico (0%) 3% 11% U.S.A. 7% 9% 17% South, Central America and the Caribbean (2%) (2%) 4% Europe 2% 5% 48% Asia, Middle East and Africa 13% 6% (1%) READY-MIX VOLUME Mexico 10% 15% 11% U.S.A. 8% 8% 12% South, Central America and the Caribbean (13%) (14%) (6%) Europe (3%) 4% 38% Asia, Middle East and Africa 3% 2% (10%) AGGREGATES VOLUME Mexico 11% 14% 11% U.S.A. 2% (1%) 10% South, Central America and the Caribbean (9%) (12%) (5%) Europe (4%) 1% 39% Asia, Middle East and Africa 1% 4% (2%) (1) Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. 2018 Second Quarter Results Page 12
Operating results Price Summary Variation in U.S. Dollars January—June Second Quarter Second Quarter 2018 vs. DOMESTIC GRAY CEMENT PRICE 2018 vs. 2017 2018 vs. 2017 First Quarter 2018 Mexico 4% (2%) (4%) U.S.A. 3% 3% 3% South, Central America and the Caribbean (*) 2% 3% (1%) Europe (*) 10% 7% (6%) Asia, Middle East and Africa (*) (0%) 3% 1% READY-MIX PRICE Mexico 10% 3% (4%) U.S.A. 2% 3% (0%) South, Central America and the Caribbean (*) (1%) (2%) (3%) Europe (*) 13% 8% (7%) Asia, Middle East and Africa (*) 8% 6% (2%) AGGREGATES PRICE Mexico 7% 3% (3%) U.S.A. 5% 6% 0% South, Central America and the Caribbean (*) (3%) (0%) (0%) Europe (*) 12% 9% (7%) Asia, Middle East and Africa (*) 5% 2% (4%) Variation in Local Currency January—June Second Quarter Second Quarter 2018 vs. DOMESTIC GRAY CEMENT PRICE 2018 vs. 2017 2018 vs. 2017 First Quarter 2018 Mexico 4% 3% 1% U.S.A. 3% 3% 3% South, Central America and the Caribbean (*) 2% 3% 0% Europe (*) 1% 2% (1%) Asia, Middle East and Africa (*) 3% 6% 2% READY-MIX PRICE Mexico 9% 9% 1% U.S.A. 2% 3% (0%) South, Central America and the Caribbean (*) (2%) (3%) (2%) Europe (*) 3% 2% (3%) Asia, Middle East and Africa (*) 5% 7% 1% AGGREGATES PRICE Mexico 7% 8% 2% U.S.A. 5% 6% 0% South, Central America and the Caribbean (*) (4%) (2%) 1% Europe (*) 3% 4% (3%) Asia, Middle East and Africa (*) 3% 3% (0%) (*) Volume weighted-average price. 2018 Second Quarter Results Page 13
Other information Newly issued IFRS effective in 2018 IFRS 9‘) 9, Financial Instruments: classification and measurement (‘IFRS IFRS measurement 9 sets forth of financial the guidance assets and relating liabilities, to the the classification accounting and for credits, expected as credit well losses as the of requirements financial assets for and hedge commitments accounting; to and extend will (‘IAS replace 39‘) IAS . IFRS 39, 9 Financial was adopted instruments: beginning recognition January 1, 2018 and on measurement prospective categories basis. Among for financial other aspects, assets of: IFRS 1) amortized 9 implemented cost, that the will classification significantly 2) comprise fair value IAS39 through held other to maturity comprehensive and loans income, and receivables similar to categories; IAS 39 held to with maturity the same category; IAS 39 and definition. 3) fair value The adoption through the of income such classification statement categories results and did financial not have situation. any significant effect on CEMEX‘s operating In losses, addition, impairment under the losses new impairment for the entire model lifetime based of on financial expected assets, credit recognition, including trade and at accounts each subsequent receivable, reporting are recognized period, even on in initial the absence considering of for a credit their measurement event or if the past loss events has not and yet current been conditions, incurred, In as well this as regard, reasonable CEMEX and implemented supportable forecasts an expected affecting credit collectability. loss model performance, applicable to its as trade well as accounts the credit receivable risk and that expected considers developments the historical for each 1, 2018 group related of customers. to the new The expected effects credit for adoption loss model of IFRS represented 9 on January an increase approximately in the $ allowance 520 millions for of doubtful pesos recognized accounts as against of January equity. 1, 2018 of In accounting connection categories with hedge of cash accounting, flow hedge, IFRS fair 9 maintains value hedge the same and hedge hedging of a recognizing net investment the ineffective established portion in IAS of 39, a cash as well flow as hedge the requirement immediately of in hedging the income transaction statement. are more Nonetheless, flexible. The the adoption requirements of the new to qualify hedging a accounting operating results requirements and financial did not situation. have any significant effect on CEMEX‘s IFRS 15, Revenues from contracts with customers (‘IFRS 15‘) Under promised IFRS goods 15, an or services entity recognizes to customers revenue in an to amount depict that the reflects transfer the of those consideration goods or to services, which the identifying: entity expects a) the to contract(s) be entitled with in exchange a customer for (agreement different performance that creates obligations enforceable (promises) rights and in obligations); the contract b) and the account consideration for those an entity separately; expects c) the to be transaction entitled price in exchange (amount for of transferring transaction price promised to each goods performance or services); obligation d) the based distribution on the relative of the stand-alone recognizing revenue selling prices when of (or each as) the distinct entity good satisfies or service; a performance and e) obligation customer. A by performance transferring control obligation of a may promised be satisfied good at or a service point in to time the (typically services and for construction the sale of goods) contracts) or .over CEMEX time adopted (typically IFRS for 15 the on January sale of on 1, 2018, its operating using the results retrospective and financial approach, situation. without any significant effects Among apply to other CEMEX minor refer effects, to: a) several the main reclassifications changes under that IFRS are required 15 as they to comply b) rebates with and/or IFRS 15 discounts new accounts offered in the to customers statement in of a financial sale transaction position; that transaction are redeemable are considered by the separate customer performance in a subsequent obligations, purchase rather than allocated future to these costs, promises and a portion should of be the deferred sale price to revenue of such transaction to until customers the promise through is redeemed their purchases or expires; under and loyalty c) awards programs (points) that offered are performance later redeemable obligations, for goods rather or than services, future costs, also and represent a portion separate of the sale deferred price to of revenue such transactions until the points allocated are redeemed to these points or expire should . These be reclassifications and adjustments were not material. Considering modified certain the amounts retrospective of the approach, comparative the financial adoption statements of IFRS for 15 the six-month period ended June 30, 2017, as follows: SELECTED INFORMATION INCOME STATEMENT (Millions of pesos) Jan-Jun Second Quarter Revenues, original 128,782.1 66,275.7 IFRS 15 adoption (7.1) 1.1 Discontinued operations (312.3) (165.7) Revenues, as reported 128,462.7 66,111.1 SELECTED INFORMATION BALANCE SHEET As of June 30, Other 2017 Customers, current Other current non- stockholders‘ Total (Millions of pesos) net liabilities liabilities equity Balance, original 31,636.7 83,257.2 67,278.5 195,501.9 IFRS 15 adoption 143.8 144.5 3.3 (3.9) reported Balance, as 31,780.5 83,401.7 67,281.8 195,498.0 Newly issued IFRS effective in 2019 IFRS 16, Revenues from contracts with customers (‘IFRS 15‘) to IFRS the 16 lessee defines the leases right as to any use contract an asset or for part a period of a contract of time that in exchange conveys for throughout consideration that period and the . In lessee summary, directs IFRS the 16 use introduces of the identified a single lessee asset a accounting term of more model, than and 12 requires months, a lessee unless to the recognize, underlying for asset all leases is of with low value, corresponding assets for financial the right liability, -of-use representing the underlying the NPV asset of estimated against a model lease payments in which a under lessee recognizes the contract, amortization with a single of the income right-of statement -use asset and statement interest of on financial the lease position, liability or . A disclose lessee shall in the present notes, either right- of in- use the from assets other separately liabilities from . IFRS other 16 assets, is effective as well beginning as, lease January liabilities 1, separately 2019 and accounting will supersede . all current standards and interpretations related to lease As outstanding of June 30, lease 2018, contracts CEMEX has and concluded other contracts the inventory that of may its main have embedded relevant characteristics the use of an of asset, such contracts including (types an assessment of assets, of committed the most payments, quantification maturity of the dates, required renewal adjustments clauses, for etc the .), proper and is recognition finalizing the of the liabilities, assets considering for the “right the exemptions -of-use” and provided the corresponding by the standard, financial aiming 2018 Second Quarter Results Page 14
Other information adoption to adopt IFRS is practicable. 16 on January Based 1, on 2019 its retrospectively preliminary assessment to the extent as of such the reporting its outstanding date, CEMEX operating considers leases would that upon be recognized adoption of in IFRS the 16, statement most of amortization of financial position, and interest. increasing CEMEX assets does not and expect liabilities, any breach as well of its as contractual effects obligations (financial restrictions) due to the adoption US Interest Rate Swap During swaps to June hedge 2018, interest CEMEX payments entered of into existing US$ 1 bank billion loans of referenced interest rate to based US floating on a 3.05% rates. fixed With rate these and instruments, will receive amounts CEMEX will based pay on amounts 3M US Libor. and will These reach interest its maturity rate swaps on June will 2023. start These to be effective interest rate on June swaps 2019 do not September involve 2019. cash settlements until the first effective interest payment on Discontinued Operations and Other Disposal Groups Discontinued Operations On into May binding 24, 2018, agreements by means with of one Votorantim of its subsidiaries, Cimentos CEMEX N/NE entered S.A. comprise (‘Votorantim‘) of a water for the cement sale of the distribution Company‘s terminal operations located in Brazil, in Manaus, which subject Amazonas to authorization state and its by operating the authorities, license. is The expected transaction, to be completed which is US$ during 30 the million fourth subject quarter to of working 2018. The capital selling adjustments. price is approximately CEMEX‘s ended operations June for 30, its 2018 operating and 2017 segment are reported in Brazil net for of the tax six-month in the single periods line to item CEMEX‘s ‘Discontinued Brazilian Operations. operations ‘ Moreover, are reported assets as ‘Assets and liabilities and liabilities related held for Sale,‘ within current assets and current liabilities, respectively. On regulators, June 30, one 2017, of its subsidiaries CEMEX announced in the U.S. closed that after the divestment approval of from its and Pacific ready Northwest mix concrete Materials operations Business consisting in Oregon of and aggregate, Washington asphalt to Cadman subsidiary Materials, of HeidelbergCement Inc., part of Group, Lehigh Hanson, for approximately Inc. and the US$ U. 150 S. million. Materials Considering Business, their the operations disposal of for the the entire six-month Pacific period Northwest ended were June 30, reclassified 2017, included net of in tax CEMEX‘s to the comparative single line item income ‘Discontinued statements Operations.‘ in On the November United States 28, 2016, signed CEMEX a definitive announced agreement that one to divest of its its subsidiaries Concrete the Reinforced United Pipe States Manufacturing to Quikrete Business Holdings, (‘Concrete Inc. Pipe (‘Quikrete‘) Business‘) for in approximately contingent consideration US$500 based million on plus future an performance. additional US$ On January 40 million 31, approval 2017, after from the regulators, satisfaction CEMEX of certain announced conditions the closing precedent of the including sale to disposal Quikrete of according the entire to the Concrete agreed Pipe upon Business, price conditions. their operations Considering for the the comparative one-month period income ended statements January were 31, reclassified 2017, included net of tax to in the CEMEX‘s single disposal line item of ‘Discontinued these assets Operations. for approximately ‘ CEMEX US$ determined 148 million a net recognized gain on a during proportional January allocation 2017 as part of goodwill of discontinued for approximately operations, US$ which 260 included million. The income following statements table of presents CEMEX condensed discontinued combined operations information mainly: of a) the the 2018 operating and 2017; segment b) the in Concrete Brazil for Pipe the six-month Business for periods the one-month ended June period 30, for ended the January six-month 31, period 2017; and ended c) the June Pacific 30, 2017: Northwest Materials Business INCOME STATEMENT Jan-Jun Second Quarter (Millions of Mexican pesos) 2018 2017 2018 2017 Sales 337 1,869 167 757 Cost of sales and operating (329) (1,870) (161) (723) Other expenses, net (1) 14 (0) 17 Interest expense, net and others (2) 3 (3) 4 Income (loss) before income tax 5 16 2 55 Income tax (4) (1) (2) (1) Net income (loss) 1 15 1 55 Non controlling interest net income — — Controlling interest net income 1 1 1 55 Net gain on sale—3,526—446 Discontinued operations 1 3,527 1 501 Other disposal groups or Other line disposal of business groups and, do due not to represent the remaining the disposal ongoing of activities an entire and sector the consolidated relative size, by are CEMEX not considered line-by-line discontinued in the income operations statement and until were the disposal date. The main disposal groups are as follows: in On the September United States 12, 2016, signed CEMEX a definitive announced agreement that one for of its the subsidiaries sale of its Fairborn, Eagle Materials Ohio cement Inc. (‘Eagle plant and Materials‘) cement terminal for approximately in Columbus, US$ Ohio 400 to million. approximately Fairborn 730 plant thousand has tons. an annual On February production 10, 2017, capacity CEMEX of announced divestment of that these such assets. subsidiary CEMEX‘s in comparative the United income States statement closed the for the Fairborn six-month cement period plant ended and the June Columbus 30, 2017, cement include terminal the operations consolidated of the 10, line-by-line 2017. CEMEX for the determined period from a January net gain 1 on until disposal their disposal of these in assets February for approximately of Other expenses, US$188 net, million which recognized included during a proportional February allocation 2017 as part of goodwill for approximately US$211 million. The information following of table the net presents assets sold selected to Eagle combined Materials income for the statements period in 2017 until their disposal in February 10: SELECTED INFORMATION Jan-Jun Second Quarter (Millions of Mexican pesos) 2018 2017 2018 2017 Sales— 86 — Cost of sales and operating Expenses—(71) — Operating earnings before other expenses, net—15 — 2018 Second Quarter Results Page 15
Definitions of terms and disclosures Methodology for translation, consolidation, and presentation of results Under IFRS, beginning January 1, 2008, CEMEX translates the financial statements of foreign subsidiaries using exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement. CEMEX reports its consolidated results in Mexican pesos. For the reader‘s convenience, beginning June 30, 2008, US dollar amounts for the consolidated entity are calculated by converting the nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter, provided below. Breakdown of regions The South, Central America and the Caribbean region includes CEMEX‘s operations in Argentina, Bahamas, Brazil, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica, Trinidad & Tobago, Barbados, Nicaragua, Panama, Peru, and Puerto Rico, as well as trading operations in the Caribbean region. Europe includes operations in Spain, Croatia, the Czech Republic, France, Germany, Latvia, Poland, and the United Kingdom, as well as trading operations in several Nordic countries. The Asia, Middle East and Africa region includes operations in the United Arab Emirates, Egypt, Israel and the Philippines. Definition of terms Free cash flow equals 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 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. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points Prices all references to pricing initiatives, price increases or decreases, refer to our prices for our products 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. Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables. % var percentage variation Earnings per ADS Please refer to page 2 for the number of average ADSs outstanding used for the calculation of earnings per ADS. According to the IAS 33 Earnings per share, the weighted-average number of common shares outstanding is determined considering the number of days during the accounting period in which the shares have been outstanding, including shares derived from corporate events that have modified the stockholder’s equity structure during the period, such as increases in the number of shares by a public offering and the distribution of shares from stock dividends or recapitalizations of retained earnings and the potential diluted shares (Stock options, Restricted Stock Options and Mandatory Convertible Shares). The shares issued because of share dividends, recapitalizations and potential diluted shares are considered as issued at the beginning of the period. Exchange rates January—June Second Quarter Second Quarter 2018 2017 2018 2017 2018 2017 Average Average Average Average End of period End of period Mexican peso 19.05 19.21 19.51 18.53 19.92 18.14 Euro 0.8291 0.9177 0.8459 0.8964 0.8561 0.8755 British pound 0.7292 0.7872 0.7452 0.7734 0.7573 0.7676 Amounts provided in units of local currency per US dollar. 2018 Second Quarter Results Page 16
Exhibit 3
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2018 Second Quarter Results Exupery International School and Kindergarten, Latvia 1
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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, and in particular in the case of CEMEX‘s new plan, ‘A Stronger CEMEX‘, 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, as well as CEMEX‘s current plans based on such facts and circumstances. 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 its business, such as, but not limited to, the energy sector; competition; general political, economic and business conditions in the markets in which CEMEX operates or that affects its operations and any significant economic, political or social developments in those markets, including any nationalization or privatization of any assets or operations; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CEMEX‘s ability to satisfy its obligations under CEMEX‘s material debt agreements, the indentures that govern CEMEX‘s outstanding senior secured notes and CEMEX‘s other debt instruments; the impact of CEMEX‘s below investment grade debt rating on its cost of capital; CEMEX‘s ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from its cost-reduction initiatives and implement its global pricing initiatives for CEMEX‘s products, including CEMEX‘s ‘A Stronger CEMEX‘ plan; the increasing reliance on information technology infrastructure for CEMEX‘s operations, sales in general, sales invoicing, procurement, financial statements and other processes that can adversely affect CEMEX‘s sales and operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from, free trade agreements, including NAFTA, to which Mexico is a party and which is currently undergoing renegotiation; terrorist and organized criminal activities as well as geopolitical events; 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. CEMEX‘s ‘A Stronger CEMEX‘ plan is designed based on CEMEX‘s current beliefs and expectations. 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 2
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2Q18: first quarter since 4Q16 with increase in both reported and like-to-like EBITDA EBITDA variation +2% +4% 100 64 696 724 714 105 31 10 2Q17 Vol. Price Var. cost Fixed 2Q18 l-t-l FX 2Q18 & distr. cost & other Consolidated volumes for cement, ready-mix and aggregates increased by 4%, 5% and 2%, respectively, on a like-to-like basis Higher quarterly consolidated prices for our three core products on a year-over-year basis; cement, ready-mix and aggregates prices increased by 3%, 3% and 4%, respectively, from 2Q17 levels in local-currency terms Net sales and operating EBITDA increased by 7% and 4%, respectively, on a like-to-like basis During 2Q18, operating EBITDA margin declined by 0.7pp Millions of U.S. dollars 3
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Increase of 32% in net income during the quarter Free cash flow Controlling interest net income 714 -34% +32% 626 382 160 288 96 416 64 260 97 37 231 30 EBITDA Net fin. Maint. WC Taxes Other1 FCF Stra- FCF 6M17 6M18 2Q17 2Q18 2Q18 Exp CapEx after tegic 2Q18 maint. CapEx CapEx Millions of U.S. dollars 1 Includes Other Cash Items plus Free Cash Flow Discontinued Operations 4
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Total debt plus perpetuals has declined by US$459M year to date Total debt plus perpetuals variation -4% 11,349 396 106 121 10,890 78 4Q17 Cash balance Debt FX effect FCF after Other 2Q18 variation strategic CapEx Millions of U.S. dollars 5
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Second Quarter 2018 Regional Highlights Therapeutic pools for the school La Esperanza, Puerto Rico 6
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Mexico l-t-l l-t-l Domestic gray cement, ready-mix and 6M18 6M17 % var % var 2Q18 2Q17 % var % var Net Sales 1,669 1,533 9% 8% 867 810 7% 13% aggregates volumes increased 3%, 15% and 14%, respectively, during the quarter Op. EBITDA 610 567 7% 7% 311 302 3% 8% reflecting positive activity in the formal housing and industrial-and-commercial as % net sales 36.5% 37.0% (0.5pp) 35.8% 37.3% (1.5pp) sectors Millions of U.S. dollars Higher sequential and year-over-year prices 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 for our three core products during the quarter Cement (0%) 3% 11% The formal residential sector remains the Volume Ready mix 10% 15% 11% main driver for cement consumption, with Aggregates 11% 14% 11% solid year-to-date housing permits and starts The industrial-and-commercial sector 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 reflects continued dynamism mainly in tourism- and industrial-related projects Cement 4% 3% 1% Price (LC) Ready mix 9% 9% 1% The self-construction sector moderated its growth, but remains supported by favorable Aggregates 7% 8% 2% performance in job creation, real wages and remittances 7
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United States l-t-l l-t-l EBITDA margin increased by 0.5 percentage 6M18 6M17 % var % var 2Q18 2Q17 % var % var points, muted by increased transportation Net Sales 1,844 1,731 7% 8% 989 916 8% 9% costs, higher imports and the continued Op. EBITDA 298 287 4% 5% 189 170 11% 11% drawdown of inventories to meet strong demand as % net sales 16.2% 16.6% (0.4pp) 19.1% 18.6% 0.5pp Millions of U.S. dollars Cement volumes increased 9% during the quarter, supported by expanding underlying 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 demand conditions coupled with recovery Cement 7% 9% 17% from poor weather conditions in the prior quarter Volume Ready mix 8% 8% 12% Aggregates 2% (1%) 10% Quarterly cement, ready-mix and aggregates prices increased 3%, 3% and 6%, respectively, on a year-over-year basis 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Residential activity continued to drive Cement 3% 3% 3% demand during the quarter; housing starts Price (LC) Ready mix 2% 3% (0%) increased 8% year-over-year Aggregates 5% 6% 0% In the industrial-and-commercial sector, construction spending increased 3% year-to-date May, with strength in lodging and commercial activity 8
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South, Central America and the Caribbean l-t-l l-t-l 6M18 6M17 % var % var 2Q18 2Q17 % var % var Net Sales 916 942 (3%) (3%) 461 470 (2%) 0% Op. EBITDA 214 254 (16%) (17%) 110 120 (9%) (9%) as % net sales 23.4% 27.0% (3.6pp) 23.7% 25.6% (1.9pp) Millions of U.S. dollars 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement (2%) (2%) 4% Volume Ready mix (13%) (14%) (6%) Aggregates (9%) (12%) (5%) 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement 2% 3% 0% Price (LC) Ready mix (2%) (3%) (2%) Aggregates (4%) (2%) 1% Volume-weighted, local-currency average prices On a like-to-like basis, quarterly regional cement volumes decreased by 2% while prices increased by 3% on a year-over-year basis In Colombia, during the quarter cement volumes declined by 9%, and by 10% during the first six months of the year In Panama, our cement and ready-mix volumes declined by 26% and 36%, respectively, during the quarter, mainly due to the 30-day strike by construction workers; during the first six months of 2018, our cement and ready-mix volumes declined by 22% and 23%, respectively 9
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Europe l-t-l l-t-l 6M18 6M17 % var % var 2Q18 2Q17 % var % var Net Sales 1,851 1,666 11% 1% 1,040 934 11% 6% Op. EBITDA 140 139 0% (9%) 121 109 11% 5% as % net sales 7.5% 8.4% (0.9pp) 11.7% 11.7% 0.0pp Millions of U.S. dollars 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement 2% 5% 48% Volume Ready mix (3%) 4% 38% Aggregates (4%) 1% 39% 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement 1% 2% (1%) Price (LC) Ready mix 3% 2% (3%) Aggregates 3% 4% (3%) Volume-weighted, local-currency average prices Increase in quarterly regional volumes and prices for our three core products; cement prices increased sequentially in the UK, Germany, Poland, Latvia, the Czech Republic and Croatia In the UK, cement and ready-mix volumes decreased 3% and 1%, respectively, while aggregates volumes increased 2%; the residential and infrastructure sectors drove demand in 2Q18 In Spain, cement, ready-mix and aggregates volumes increased 7%, 36% and 26%, respectively, reflecting favorable demand from the residential and industrial-and-commercial sectors In Germany, cement and aggregates volumes increased by 5% and 4%, respectively, during 2Q18, mainly driven by the residential and infrastructure sectors In Poland, quarterly cement, ready-mix and aggregates volumes increased 17%, 17% and 3%, respectively, due to a strong residential sector and our participation in large infrastructure projects 10
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Asia, Middle East and Africa l-t-l l-t-l 6M18 6M17 % var % var 2Q18 2Q17 % var % var Net Sales 728 653 11% 12% 353 327 8% 10% Op. EBITDA 114 113 1% 1% 52 49 6% 8% as % net sales 15.7% 17.3% (1.6pp) 14.8% 15.0% (0.2pp) Millions of U.S. dollars 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement 13% 6% (1%) Volume Ready mix 3% 2% (10%) Aggregates 1% 4% (2%) 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Cement 3% 6% 2% Price (LC) Ready mix 5% 7% 1% Aggregates 3% 3% (0%) Volume-weighted, local-currency average prices Increase in regional volumes for our three core products during both the quarter and the first half of the year; cement volumes grew in the high-single digits in the Philippines and Egypt during 2Q18 Increase in sequential regional prices for cement and ready mix in local-currency terms In the Philippines, domestic gray cement volumes increased by 8% during the quarter on a year-over-year basis supported by the infrastructure and residential sectors; sequential cement prices increased by 3% in local-currency terms In Egypt, quarterly domestic gray cement volumes increased by 7% during 2Q18 reflecting higher cement dispatches to Lower Egypt; local-currency cement prices increased by 21% on a year-over-year basis 11
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Second Quarter 2018 2Q18 Results Lumina, USA 12
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Operating EBITDA, cost of sales and operating expenses January—June Second Quarter l-t-l l-t-l 2018 2017 % var % var 2018 2017 % var % var Net sales 7,185 6,687 7% 5% 3,805 3,568 7% 7% Operating EBITDA 1,252 1,249 0% 0% 714 696 2% 4% as % net sales 17.4% 18.7% (1.3pp) 18.8% 19.5% (0.7pp) Cost of sales 4,776 4,440 (8%) 2,474 2,324 (6%) as % net sales 66.5% 66.4% (0.1pp) 65.0% 65.1% 0.1pp Operating expenses 1,569 1,422 (10%) 827 765 (8%) as % net sales 21.8% 21.3% (0.5pp) 21.7% 21.4% (0.3pp) Millions of U.S. dollars Operating EBITDA during 2Q18 increased by 4% on a like-to-like basis mainly due to higher contributions in Mexico, the U.S., as well as our European and Asia, Middle East and Africa regions. Cost of sales, as a percentage of net sales, decreased by 0.1pp during the quarter mainly driven by timing differences in maintenance expenses Operating expenses, as a percentage of net sales, increased by 0.3pp during the quarter mainly driven by higher distribution expenses 13
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Free cash flow January—June Second Quarter 2018 2017 % var 2018 2017 % var Operating EBITDA 1,252 1,249 0% 714 696 2% —Net Financial Expense 332 438 160 213 —Maintenance Capex 174 156 96 99 —Change in Working Capital 417 298 64 (90) —Taxes Paid 148 162 97 115 —Other Cash Items (net) 64 21 38 9 —Free Cash Flow (1) (8) (0) (4) Discontinued Operations Free Cash Flow after 117 183 (36%) 260 353 (26%) Maintenance Capex —Strategic Capex 39 57 30 29 Free Cash Flow 78 126 (38%) 231 324 (29%) Millions of U.S. dollars Average working capital days during 2Q18 decreased to negative 9, from negative 1 day in 2Q17 Average working capital days -1 -5 -9 -13 -13 2Q17 3Q17 4Q17 1Q18 2Q18 14
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Other income statement items during 2Q18 Other expenses, net, of US$36 million, mainly due to impairment of assets and severance payments Gain on financial instruments of US$25 million mainly resulting from derivatives related to GCC shares Foreign-exchange gain of US$102 million resulting primarily from the fluctuation of the Mexican peso versus the U.S. dollar, partially offset by the fluctuation of the Euro and the Colombian peso versus the U.S. dollar Controlling interest net income of US$382 million in 2Q18 versus an income of US$288 million in 2Q17; the higher income mainly reflects higher operating earnings before other expenses, net, lower financial expenses, higher income from financial instruments and a higher foreign exchange gain, partially offset by higher other expenses, net, higher income tax, and a negative variation in discontinued operations in the U.S. 15
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CEMEX consolidated debt maturity profile Total debt excluding perpetual notes as of June 30, 2018: US$10,444 million Credit Agreement Other bank debt Fixed Income Avg. life of debt: 4.9 years Convertible Subordinated Notes1 2,443 1,970 1,551 1,141 1,204 998 643 452 42 2018 2019 2020 2021 2022 2023 2024 2025 2026 Millions of U.S. dollars 1 Convertible Subordinated Notes include only the debt component of US$511 million; total notional amount is about US$521 million 16
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CEMEX consolidated debt maturity profile ‘ proforma1 Total debt excluding perpetual notes as of June 30, 2018: US$10,444 million Credit Agreement Other bank debt Fixed Income Avg. life of debt: 5.0 years Convertible Subordinated Notes2 2,443 1,865 1,970 1,141 1,204 998 643 138 42 2018 2019 2020 2021 2022 2023 2024 2025 2026 Millions of U.S. dollars 1 Proforma reflects call payment made on July 16, 2018 for the Floating Rate Senior Secured Notes due on October 2018, applying US$313M withdrawn from Revolving Credit Facility due 2022 2 Convertible Subordinated Notes include only the debt component of US$511 million; total notional amount is about US$521 million 17
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Second Quarter 2018 2018 Outlook Pharmax Pharmaceutical, United Arab Emirates
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2018 guidance Cement: 2% to 3% Consolidated Ready mix: 3% to 4% volumes Aggregates: 1% to 2% Energy cost per ton of cement Increase of approximately 6% produced US$550 million Maintenance CapEx Capital US$250 million Strategic CapEx expenditures US$800 million Total CapEx Investment in US$0 million working capital Cash taxes US$250 to 300 million Cost of debt1 Reduction of approximately US$125 million 1 Including perpetual and convertible securities 19
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A Stronger CEMEX Torre Reforma, Mexico 20
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A Stronger CEMEX Optimize portfolio for growth Accelerate balance sheet deleveraging Initiate capital return program US$1.5-2.0B asset sales by 2020 US$150M operational initiatives/cost reduction by 2019 US$3.5B total debt reduction by 2020 Ongoing cash dividend program starting in 2019; ~US$150M in first year Accelerating achievement of our priorities to maximize shareholder value Please refer to page 2 for disclaimer 21
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Plan rationale Resilient Business Model Headwinds Persist Actions to date have benefitted the business, but deleveraging needs to be done at a faster pace Plan to increase speed of executing strategic priorities Follows extensive review of business by Board and management, taking into account feedback from shareholders Higher than expected increase in energy, logistics and labor costs Supply-demand tensions, having subsided materially, persist Actively managing the business to benefit shareholders 22
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Enhanced commitment to portfolio optimization for growth US$1.5B-2.0B of Asset Sales = Reposition CEMEX Portfolio Toward Higher Growth Streamline global portfolio Focus on markets with greatest long-term growth potential Retain assets best suited to grow within CEMEX portfolio Sell certain assets to parties positioned to grow them Continue focus on a balanced, diversified portfolio to promote profitable growth Proven track record of successful asset sales 23
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Operational initiatives / cost reduction Built a Resilient Business ModelBut More to Do: A Stronger CEMEX In addition to selling assets, plan to secure US$150 million of annual cost savings through: Extracting SG&A efficiencies Increasing alternative fuel utilization Serving our customers better at a reduced cost Optimizing production and logistics supply model Enhancing procurement by implement new sourcing strategies from lower-cost suppliers Optimize existing operations and maximize margins 24
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Total debt reduction of $3.5B by 2020 Total debt plus perpetuals -38% 17.5 -33% 10.9 7.4 Debt reduction of $3.5B by 2020 2013 2Q18 2020 Materially accelerating our path to investment grade Billions of U.S. dollars 25
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Return capital to shareholders ‘ initiating cash dividend Beginning in 2019, CEMEX to pay a cash dividend ~US$150M in 2019; amount in subsequent years to be based on business performance Targeting dividend metrics consistent with heavy building materials peers over the mid-term Subject to shareholders‘ approval Share buybacks complementary to dividend payments Dependent on defined criteria based on ongoing assessment of the capital needs of the business, valuation and general market conditions Capital allocation program returns cash to shareholders 26
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Accelerated achievement of priorities underpins framework for growth Optimize CEMEX US$1.5B-2.0B of asset sales ‘ launching divestiture processes in 2H18 Portfolio Rebalance CEMEX‘s portfolio toward attractive growth markets through organic/inorganic growth opportunities and asset sales Implement US$150M operational initiatives / cost reduction Drive Organic Growth and Maximize Margins Prioritize business development and customer service (e.g. CEMEX Go) Focus on employee development and continuous improvement Continue focus on a balanced, diversified portfolio to promote profitable growth Maintain Disciplined All inorganic growth opportunities must meet our criteria Enhance portfolio, provide diversification and is core to our strategy Evaluation of Inorganic Growth Maintain CEMEX‘s accelerated deleveraging path toward investment grade Opportunities ROCE in excess of risk-adjusted WACC Accretive to earnings and FCF on per share basis by year two Strong synergy potential Actively managing the business for a faster path toward investment grade 27
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Accelerating the timeline of our priorities ‘ A Stronger CEMEX Pursue organic ~US$150M and inorganic annual cash growth dividend starting Total debt in 2019; share reduction of buybacks US$3.5B by 2020 US$150M Invest in cost reduction Growth US$1.5-2.0B Return asset sales Capital to Accelerate Shareholders Deleveraging Operational Initiatives Optimize Portfolio A stronger global leader in the building materials industry 28
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Second Quarter 2018 Appendix Chase Center, USA 29
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Consolidated volumes and prices 6M18 vs. 6M17 2Q18 vs. 2Q17 2Q18 vs. 1Q18 Volume (l-t-l1) 3% 4% 14% Domestic gray Price (USD) 3% 2% (2%) cement Price (l-t-l1) 2% 3% 1% Volume (l-t-l1) 3% 5% 14% Ready mix Price (USD) 7% 4% (3%) Price (l-t-l1) 3% 3% (0%) Volume (l-t-l1) 0% 2% 18% Aggregates Price (USD) 7% 5% (2%) Price (l-t-l1) 3% 4% 0% 1 Like-to-like volumes adjusted for investments/divestments and, in the case of prices, foreign-exchange fluctuations Consolidated volumes for cement, ready mix and aggregates increased by 4%, 5% and 2%, respectively, during 2Q18 on a year-over-year basis During the quarter, higher year-over-year cement volumes in Mexico, the U.S., Europe and AMEA region Quarterly increases in our consolidated prices for our three core products on a year-over-year basis 30
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Additional information on debt and perpetual notes Second Quarter First Quarter 2018 2017 % var 2018 Total debt1 10,444 11,483 (9%) 10,902 Short-term 5% 5% 4% Long-term 95% 95% 96% Perpetual notes 446 444 0% 450 Total debt plus perpetual notes 10,890 11,927 (9%) 11,352 Cash and cash equivalents 308 418 (26%) 311 Net debt plus perpetual notes 10,582 11,509 (8%) 11,041 Consolidated Funded Debt2 (CFD) 10,219 10,827 (6%) 10,802 CFD / EBITDA3 3.96 4.04 4.22 Interest coverage3 4 4.13 3.39 3.85 Millions of U.S. dollars 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 Other Euro Currency 26% denomination U.S. dollar 66% Variable Interest rate Fixed 39% 61% 31
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Additional information on debt Second Quarter First Quarter 2018 % of total 2017 % of total 2018 % of total Fixed Income 6,107 58% 7,760 68% 6,203 57% 2017 Credit Agreement 3,292 32% 2,249 20% 3,666 34% Convertible Subordinated Notes 511 5% 860 7% 509 5% Others 534 5% 613 5% 524 5% Total Debt1 10,444 11,483 10,902 Millions of U.S. dollars 1 Includes convertible notes and capital leases, in accordance with IFRS Total debt1 by instrument 5% 5% 32% 58% 32
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6M18 volume and price summary: Selected countries Domestic gray cement Ready mix Aggregates 6M18 vs. 6M17 6M18 vs. 6M17 6M18 vs. 6M17 Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico (0%) 4% 4% 10% 10% 9% 11% 7% 7% U.S. 7% 3% 3% 8% 2% 2% 2% 5% 5% Colombia (10%) 3% (0%) (14%) 3% 0% (14%) (0%) (3%) Panama (22%) (0%) (0%) (23%) (8%) (8%) (4%) (5%) (5%) Costa Rica 11% 2% 2% 20% (1%) (1%) 4% (8%) (8%) UK (3%) 7% (1%) (6%) 7% (0%) (4%) 9% 2% Spain 5% 14% 3% 25% 13% 2% 11% 15% 5% Germany 3% 11% 2% (6%) 16% 6% (4%) 10% 1% Poland 9% 14% 5% 2% 20% 10% 4% 22% 12% France N/A N/A N/A (4%) 15% 4% (4%) 13% 2% Philippines 12% (7%) (3%) N/A N/A N/A N/A N/A N/A Egypt 18% 20% 20% (20%) 36% 36% (28%) 25% 25% 33
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2Q18 volume and price summary: Selected countries Domestic gray cement Ready mix Aggregates 2Q18 vs. 2Q17 2Q18 vs. 2Q17 2Q18 vs. 2Q17 Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Volumes Prices (USD) Prices (LC) Mexico 3% (2%) 3% 15% 3% 9% 14% 3% 8% U.S. 9% 3% 3% 8% 3% 3% (1%) 6% 6% Colombia (9%) 8% 4% (11%) 5% 2% (13%) 1% (2%) Panama (26%) (0%) (0%) (36%) (10%) (10%) (13%) (4%) (4%) Costa Rica 18% 4% 3% 29% 1% (0%) (11%) 10% 9% UK (3%) 4% 0% (1%) 3% (1%) 2% 6% 2% Spain 7% 10% 4% 36% 7% 1% 26% 9% 4% Germany 5% 8% 2% (3%) 12% 6% 4% 8% 2% Poland 17% 9% 5% 17% 15% 11% 3% 31% 27% France N/A N/A N/A 1% 10% 4% 1% 8% 2% Philippines 8% (5%) (0%) N/A N/A N/A N/A N/A N/A Egypt 7% 23% 21% (28%) 52% 50% (31%) 17% 15% 34
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2018 expected outlook: Selected countries Domestic gray cement Ready mix Aggregates Volumes Volumes Volumes Consolidated1 2%—3% 3%—4% 1%—2% Mexico 1%—2% 8%—10% 6%—8% United States1 4%—6% 4%—6% 2%—4% Colombia (9%)—(7%) (10%)—(8%) (12%)—(10%) Panama (15%)—(13%) (8%)—(4%) 3%—6% Costa Rica 3%—5% 5%—7% 5%—7% UK (2%)—0% (3%)—(1%) (1%)—1% Spain 4%—6% 4%—6% 4%—6% Germany 1%—2% 0%—2% 0%—2% Poland 5%—7% 5%—7% 0%—1% France N/A 0%—2% 0%—2% Philippines 8%—12% N/A N/A Egypt (5%)—(0%) (12%)—(10%) N/A 1 On a like-to-like basis for the ongoing operations 35
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Definitions 6M18 / 6M17 Results for the first six months of the years 2018 and 2017, 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) LC Local currency l-t-l % var Like-to-like percentage variations adjusted for investments/divestments and currency fluctuations Maintenance capital Investments incurred for the purpose of ensuring the company‘s operational continuity. These include expenditures 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 Investments incurred with the purpose of increasing the company‘s profitability. These include capital expenditures 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 36
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Contact information Investor Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1 Calendar of Events October 25, 2018 Third quarter 2018 financial results conference call 37