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):  ☐

 

 

 

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Contents

 

1.	Press release issued by CEMEX Holdings Philippines in the Philippines dated July 27, 2018, announcing second quarter 2018 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

 

2.	Second quarter 2018 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

 

3.	Presentation regarding second quarter 2018 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

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SIGNATURE

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

 

						CEMEX, S.A.B. de C.V.
						(Registrant)
Date: July 26, 2018				By:		/s/ Rafael Garza Lozano
						Name: Rafael Garza Lozano
						Title: Chief Comptroller

 

3

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EXHIBIT INDEX

 

EXHIBIT NO.		DESCRIPTION
1.		Press release issued by CEMEX Holdings Philippines in the Philippines dated July 27, 2018, announcing second quarter 2018 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).
2.		Second quarter 2018 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).
3.		Presentation regarding second quarter 2018 results for CEMEX Holdings Philippines, Inc., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE:CX).

 

4

Exhibit 1

 

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

 

CHP VOLUME GROWS 8% IN Q2 2018

 

•

Record volumes posted in April behind better dispatch and strong demand

 

•

Second quarter EBITDA up by 11% year-on-year

 

•

Net income pared down by higher income tax expense

MANILA, PHILIPPINES. JULY 27, 2018 – CEMEX HOLDINGS PHILIPPINES, INC. (“CHP”) (PSE: CHP), announced today that its cement volumes continued to grow in 2018 behind strong demand and improvements in production and dispatch. Cement sales volume grew by 8 percent in the second quarter from the same period in 2017 and by 12 percent during the first six months of the year. In terms of sales, CHP recorded P11.9 billion in revenues in the first half or 8 percent higher year-over-year.

EBITDA also improved during the second quarter of the year at P838 million, 11 percent better than the P753 million set in the same period last year. Given this performance in the second quarter, EBITDA for the first half of the year reached P1.7 billion or 5 percent below its level in 2017 of P1.8 billion. EBITDA margins year-over-year during the second quarter improved to 14 percent from 13 percent in the second quarter last year.    

Ignacio Mijares, President and CEO of CHP, said, “Our results show our ability as a company to grow together with the market and serve the increasing infrastructure demand of the country, both public and private. The upgrades we have implemented in our operations and distribution processes have allowed us to continue supporting the country’s development.”

Net income after tax was significantly lower, however, driven by higher income tax expense amounting to P710 million for the second quarter. This was due mainly to the utilization of the company’s deferred tax assets, which is a non-cash expense. As a result, the company recorded a loss of P635 million during the second quarter and a loss of P535 million in the first half of 2018.    

“We will continue to look for opportunities to improve our profitability understanding the need to increase our efficiencies to compensate rising input costs. We are encouraged by the progress in our cash position that will help fund the expansion of our operations in the coming years,” Mr. Mijares added.

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

 

1

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

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

# # #

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

 

2

Exhibit 2

 

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Operating and Financial Highlights

 

 

 

		January - June												Second Quarter
		2018				2017				% var				2018				2017				% var
Net sales			11,879				10,989				8	%			5,988				5,627				6	%
Gross profit			4,957				4,892				1	%			2,511				2,320				8	%
as % of net sales			42	%			45	%			(3pp	)			42	%			41	%			1pp
Operating earnings before other expenses, net			1,019				1,203				(15	%)			463				435				6	%
as % of net sales			9	%			11	%			(2pp	)			8	%			8	%			0pp
Controlling Interest Net Income (Loss)			(535	)			486				N/A				(635	)			137				N/A
Operating EBITDA			1,724				1,824				(5	%)			838				753				11	%
as % of net sales			15	%			17	%			(2pp	)			14	%			13	%			1pp
Free cash flow after maintenance capital expenditures			1,435				827				74	%			715				1,067				(33	%)
Free cash flow			1,251				591				112	%			645				904				(29	%)
Net debt1			12,836				13,863				(7	%)			12,836				13,863				(7	%)
Total debt1			15,300				15,036				2	%			15,300				15,036				2	%
Earnings per share2			(0.10	)			0.09				N/A				(0.12	)			0.03				N/A

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

 

1	U.S. dollar debt converted using end-of-period exchange rate. See Debt Information on page 4 and Exchange Rates on page 7 for more detail.

2	In Philippine Pesos

 

 

 

2018 Second Quarter Results		Page 2

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Operating Results

 

 

 

Domestic Gray Cement		January - June				Second Quarter				Second Quarter 2018
		2018 vs. 2017				2018 vs. 2017				vs. First Quarter 2018
Volume			12	%			8	%			(1	%)
Price in USD			(7	%)			(5	%)			2	%
Price in PHP			(3	%)			(0	%)			3	%

Our domestic cement volumes increased by 8% year-over-year during the quarter, driven by higher public infrastructure spending and a strong residential sector.

On a year-to-date basis, domestic cement volumes grew 12% versus the same period of the prior year. This performance reflects increased construction activity from both public and private sectors, progress from our debottlenecking efforts, and favorable weather conditions compared to the first half of last year.

Our domestic cement prices continued to recover during the quarter with a 3% sequential increase. Prices for the month of June were 6% higher than in the month of December last year.

Against the same period last year, prices during the first six months were still 3% lower as cement prices were higher at the start of 2017. For the second quarter, however, prices had already converged closer to prices of the same period last year.

 

2018 Second Quarter Results		Page 3

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Operating EBITDA, Free Cash Flow and Debt Information

 

 

 

Operating EBITDA and Free Cash Flow

 

						January - June								Second Quarter
		2018				2017				% var				2018				2017				% var
Operating earnings before other expenses, net			1,019				1,203				(15	%)			463				435				6	%
+ Depreciation and operating amortization			705				621								375				319
Operating EBITDA			1,724				1,824				(5	%)			838				753				11	%
- Net financial expenses			445				459								237				200
- Maintenance capital expenditures			362				196								283				147
- Change in working capital			(747	)			58								(524	)			(862	)
- Income taxes paid			243				306								139				204
- Other cash items (net)			(14	)			(22	)							(12	)			(3	)
Free cash flow after maintenance capital expenditures			1,435				827				74	%			715				1,067				(33	%)
- Strategic capital expenditures			184				237								70				163
Free cash flow			1,251				591				112	%			645				904				(29	%)

In millions of Philippine Pesos

Debt Information

 

 

In millions of Philippine Pesos, except percentages

 

1	U.S. dollar debt converted using end-of-period exchange rate. See Exchange Rates on page 7 for more detail.

2	Pertains to related party loans with CEMEX Asia B.V.

 

2018 Second Quarter Results		Page 4

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Financial Results

 

 

 

Income Statement & Balance Sheet Information

CEMEX Holdings Philippines, Inc.

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

 

		January - June																Second Quarter
		2018				2017				% var				2018				2017				% var
INCOME STATEMENT
Net sales			11,879,333				10,989,341				8	%			5,988,074				5,626,964				6	%
Cost of sales			(6,922,603	)			(6,096,885	)			(14	%)			(3,477,178	)			(3,307,369	)			(5	%)
Gross profit			4,956,730				4,892,456				1	%			2,510,896				2,319,595				8	%
Operating expenses			(3,937,242	)			(3,689,719	)			(7	%)			(2,048,106	)			(1,884,971	)			(9	%)
Operating earnings before other expenses, net			1,019,488				1,202,737				(15	%)			462,790				434,624				6	%
Other income (expenses), net			14,319				21,780				(34	%)			12,043				2,614				361	%
Operating earnings			1,033,807				1,224,517				(16	%)			474,833				437,238				9	%
Financial expenses, net			(444,663	)			(458,612	)			3	%			(236,919	)			(200,134	)			(18	%)
Foreign exchange loss, net			(411,142	)			(129,327	)			(218	%)			(163,358	)			(41,282	)			(296	%)
Net income (loss) before income taxes			178,002				636,578				(72	%)			74,556				195,822				(62	%)
Income tax expenses			(712,842	)			(150,525	)			(374	%)			(709,678	)			(59,308	)			(1097	%)
Consolidated net income (loss)			(534,840	)			486,053				N/A				(635,122	)			136,514				N/A
Non-controlling interest net income (loss)			16				15				7	%			6				7				(14	%)
Controlling Interest net income (loss)			(534,824	)			486,068				N/A				(635,116	)			136,521				N/A
Operating EBITDA			1,724,225				1,824,128				(5	%)			837,777				753,433				11	%
Earnings per share			(0.10	)			0.09				N/A				(0.12	)			0.03				N/A

 

		as of June 30				as of June 30				as of December 31
		2018				2017				% Var				2017				% Var
BALANCE SHEET
Total Assets			52,277,352				51,340,280				2	%			51,751,676				1	%
Cash and Temporary Investments			2,463,598				1,173,039				110	%			1,058,267				133	%
Trade Accounts Receivables			910,784				986,888				(8	%)			833,259				9	%
Other Receivables			145,669				78,938				85	%			101,002				44	%
Inventories			2,688,193				3,179,122				(15	%)			3,258,252				(17	%)
Assets held for sale			22,653				0								90,629				(75	%)
Other Current Assets			1,369,243				1,442,582				(5	%)			1,310,504				4	%
Current Assets			7,600,140				6,860,569				11	%			6,651,913				14	%
Fixed Assets			15,454,036				15,592,084				(1	%)			15,582,732				(1	%)
Investments in an associate and other investments			16,197				15,273				6	%			15,407				5	%
Other assets and noncurrent accounts receivables			767,264				385,321				99	%			716,700				7	%
Deferred income taxes - net			580,021				627,339				(8	%)			925,230				(37	%)
Goodwill			27,859,694				27,859,694				0	%			27,859,694				0	%
Other Assets			29,223,176				28,887,627				1	%			29,517,031				(1	%)
Total Liabilities			23,083,118				22,128,537				4	%			22,329,280				3	%
Current Liabilities			7,528,970				6,261,559				20	%			6,873,552				10	%
Long-Term Liabilities			14,618,237				15,036,198				(3	%)			14,674,110				(0	%)
Other Liabilities			935,911				830,780				13	%			781,618				20	%
Consolidated Stockholders’ Equity			29,194,234				29,211,743				(0	%)			29,422,396				(1	%)
Non-controlling Interest			205				231				(11	%)			221				(7	%)
Stockholders’ Equity Attributable to Controlling Interest			29,194,029				29,211,512				(0	%)			29,422,175				(1	%)

 

2018 Second Quarter Results		Page 5

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Financial Results

 

 

 

Income Statement & Balance Sheet Information

CEMEX Holdings Philippines, Inc.

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

 

		January - June												Second Quarter
		2018				2017				% var				2018				2017				% var
INCOME STATEMENT
Net sales			227,606				219,549				4	%			113,986				112,401				1	%
Cost of sales			(132,636	)			(121,806	)			(9	%)			(66,190	)			(66,066	)			(0	%)
Gross profit			94,970				97,743				(3	%)			47,796				46,335				3	%
Operating expenses			(75,437	)			(73,715	)			(2	%)			(38,987	)			(37,653	)			(4	%)
Operating earnings before other expenses, net			19,533				24,028				(19	%)			8,809				8,682				1	%
Other income (expenses), net			274				435				(37	%)			229				52				340	%
Operating earnings			19,807				24,463				(19	%)			9,038				8,734				3	%
Financial expenses, net			(8,520	)			(9,162	)			7	%			(4,510	)			(3,998	)			(13	%)
Foreign exchange loss, net			(7,877	)			(2,584	)			(205	%)			(3,110	)			(825	)			(277	%)
Net income (loss) before income taxes			3,410				12,717				(73	%)			1,418				3,911				(64	%)
Income tax expenses			(13,658	)			(3,007	)			(354	%)			(13,509	)			(1,185	)			(1040	%)
Consolidated net income (loss)			(10,248	)			9,710				N/A				(12,091	)			2,726				N/A
Non-controlling interest net income (loss)			0				0				0	%			0				0				0	%
Controlling Interest net income (loss)			(10,248	)			9,710				N/A				(12,091	)			2,726				N/A
Operating EBITDA			33,036				36,443				(9	%)			15,948				15,050				6	%

 

		as of June 30				as of June 30				as of December 31
		2018				2017				% Var				2017				% Var
BALANCE SHEET
Total Assets			980,078				1,017,243				(4	%)			1,036,485				(5	%)
Cash and Temporary Investments			46,187				23,242				99	%			21,195				118	%
Trade Accounts Receivables			17,075				19,554				(13	%)			16,689				2	%
Other Receivables			2,731				1,564				75	%			2,023				35	%
Inventories			50,397				62,990				(20	%)			65,256				(23	%)
Assets held for sale			425				0								1,815				(77	%)
Other Current Assets			25,670				28,583				(10	%)			26,247				(2	%)
Current Assets			142,485				135,933				5	%			133,225				7	%
Fixed Assets			289,727				308,938				(6	%)			312,092				(7	%)
Investments in an associate and other investments			304				303				0	%			309				(2	%)
Other assets and noncurrent accounts receivables			14,384				7,635				88	%			14,354				0	%
Deferred income taxes - net			10,874				12,430				(13	%)			18,531				(41	%)
Goodwill			522,304				552,005				(5	%)			557,975				(6	%)
Other Assets			547,866				572,372				(4	%)			591,168				(7	%)
Total Liabilities			432,754				438,449				(1	%)			447,212				(3	%)
Current Liabilities			141,151				124,065				14	%			137,664				3	%
Long-Term Liabilities			274,058				297,923				(8	%)			293,894				(7	%)
Other Liabilities			17,546				16,461				7	%			15,654				12	%
Consolidated Stockholders’ Equity			547,323				578,794				(5	%)			589,273				(7	%)
Non-controlling Interest			4				5				(23	%)			4				(13	%)
Stockholders’ Equity Attributable to Controlling Interest			547,320				578,789				(5	%)			589,268				(7	%)

 

2018 Second Quarter Results		Page 6

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Definitions of Terms and Disclosures

 

 

 

 

Exchange Rates		January - June								Second Quarter								January - June
		2018				2017				2018				2017				2018				2017
		average				average				average				average				End of period				End of period
Philippine peso			52.19				50.05				52.53				50.06				53.34				50.47
Amounts provided in units of local currency per US dollar

 

2018 Second Quarter Results		Page 7

Exhibit 3

 

2Q 2018 RESULTS July 27, 2018

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This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “should,” “could,” “anticipate,” “estimate,” “expect,” “plan,” “believe,” “predict,” “potential” and “intend” or other similar words. These forward-looking statements reflect current expectations and projections about future events of CEMEX Holdings Philippines, Inc. (“CHP”) based on CHP’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CHP’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CHP or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CHP’s exposure to other sectors that impact CHP’s business, such as the energy sector; competition; general political, economic and business conditions in the markets in which CHP operates; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; CHP’s ability to satisfy its debt obligations and the ability of CEMEX, S.A.B. de C.V. (“CEMEX”), the ultimate parent company of the major shareholder of CHP, to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; expected refinancing of CEMEX’s existing indebtedness; the impact of CEMEX’s below investment grade debt rating on CHP’s and CEMEX’s cost of capital; CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CHP’s cost-reduction initiatives and implement CHP’s pricing initiatives for CHP’s products; the increasing reliance on information technology infrastructure for CHP’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters and other unforeseen events; and the other risks and uncertainties described in CHP’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CHP’s business. The information contained in these presentations is subject to change without notice, and CHP is not obligated to publicly update or revise forward-looking statements. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CHP’s prices for products sold or distributed by CHP or its subsidiaries. Copyright CEMEX Holdings Philippines, Inc. and its subsidiaries 2

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Second Quarter 2018 Achievements All-time highest sales volume in a semester (6M18) All-time highest monthly sales volume in April Record total cement production (Solid Cement and APO Cement combined) in May Record cement production for APO Plant in May Record dispatch for APO Plant in May 3

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Domestic Cement Volumes and Prices 6M18 vs. 2Q18 vs. 2Q18 vs. 6M17 2Q17 1Q18 Volume 12% 8% (1%) Domestic Price (USD) (7%) (5%) 2% Cement Price (PHP) (3%) 0% 3% Domestic cement volumes increased 8% year-over-year during the second quarter. • Growth driven by higher public infrastructure spending and a strong residential sector. On a year-to-date basis, domestic cement volumes grew 12% versus prior year, reflecting: • Increased construction activity from both public and private sectors • Progress from our debottlenecking efforts • Favorable weather conditions • Low base of comparison, particularly in 1Q17 Domestic cement prices increased 3% sequentially. • Reflecting our continued efforts to recover higher cost through price adjustments • Prices for the month of June were 6% higher in local-currency terms than the month of December Year-over-year, domestic cement prices were flat during the quarter and 3% lower during the first half compared to prior year. 4

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Net Sales Net sales increased year-over-year by 6% and 8%, Net Sales1 respectively, for second quarter and first six months of the year. +8% +6% 10,989 11,879 5,627 5,988 2Q17 2Q18 6M17 6M18 5 1 Millions of Philippine Pesos

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Residential Sector Activity in the residential sector has continued its upward trend in the second quarter of 2018 as seen Approved Residential in growing approval of residential permits. Building Permits 30% based on floor area1 The sector’s growth should be supported by 20% sustained remittance inflows from overseas, demand from the growing middle class and foreign 10% residents, and the persistent low-income/socialized 0% housing shortage. -10% -20% -30% 1Q17 2Q17 3Q17 4Q17 1Q18 Year-on-Year Growth 1Source: Philippine Statistics Authority 6

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Industrial-and-Commercial Sector Industrial and commercial activity appeared to slow down in the second quarter compared to the same Approved Non-Residential period last year. Building Permits based on floor area2 30% Demand for commercial space is expected to come 20% from the business process outsourcing and offshore 10% gaming companies. Likewise, the expansion in the manufacturing, services, and tourism sectors should 0% support the segment’s growth. -10% -20% However, developers report delays in construction -30% due to labor shortage.1 1Q17 2Q17 3Q17 4Q17 1Q18 Year-on-Year Growth 1Source: Leechiu Property Consultants 7 2Source: Philippine Statistics Authority

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Infrastructure Sector Infrastructure construction growth 2018 National Government Disbursement on Infrastructure and Capital Outlay accelerated in the second quarter as the (in PhP billion)1 government fast-tracked the implementation and completion of its projects. Disbursements 100% grew by 96% an 26% y-o-y in April and May, respectively. 80% 66 63 58 60% 51 48 46 43 35 For 2018, public infrastructure is expected to 40% 35 34 be a main driver of construction demand. According to the Department of Finance, a 20% number of the government’s flagship projects 0% have already started construction. Jan Feb Mar Apr May 2017 2018 1 Source: Department of Budget and Management; (DBM); Department of Finance 8

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Cost of Sales Cost of sales increased 5% year-over-year Millions of Percentage during the second quarter with higher Philippine Pesos of Net Sales volumes and input costs. Fuel costs accounted for 25% of cost of -14% sales vs. 20% same period last year. Increase mainly driven by higher coal +1pp -3pp prices. However, on a sequential basis, fuel costs as a percentage of cost of sales -5% decreased as our coal costs continue to converge closer to 2017 levels. 6,097 6,923 59% 58% 58% Power costs accounted for 24% of cost 55% of sales vs. 21% same period last year. Excise tax and higher grid rates in both 3,307 3,477 our plants resulted to this increase. Year-to-date, Cost of Sales increased 14% given the rate of increase in 1Q. 2Q17 2Q18 6M17 6M18 2Q17 2Q18 6M17 6M18 As a percentage of sales, Cost of Sales decreased 1 pp during the second quarter and increased 3 pp for the first half of the year versus the same period last year. 9

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Operating Expenses Distribution1 Selling and Distribution expenses were 23% higher year- Administrative1 over-year during the second quarter. As a percentage of sales, distribution expenses -16% increased 3 pp, from 19% to 22%. The increase was due to higher fuel costs, higher dispatched volumes benefitting from our +6% debottlenecking efforts, and upgrading of vessels. -23% For the first six months of the year, distribution expenses increased 16% in absolute terms and +10% 2,453 2 pp as a percentage of sales, from 19% to 21%. 2,118 Selling and administrative expenses declined 1,312 1,572 1,484 10% year-over-year during the second quarter, a 1,069 816 736 result of continued efforts to optimize costs. As a percentage of sales, selling and administrative expenses declined from 15% to 2Q17 2Q18 6M17 6M18 2Q17 2Q18 6M17 6M18 12%. % of For the first six months of the year, selling and 19% 22% 19% 21% 15% 12% 14% 12% Net Sales administrative expenses decreased 6% in absolute terms and 2 pp as a percentage of sales, from 14% to 12%. 1 Millions of Philippine Pesos 10

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Operating EBITDA and Operating EBITDA Margin Operating EBITDA Operating EBITDA Margin (millions of Philippine Pesos) (%) Second quarter operating EBITDA increased 11% year-over-year. -5% Operating EBITDA margin during the quarter was 14%, slightly higher than 2Q 2017 margin. -2pp +1pp +11% Year-to-date, operating EBITDA 1,824 1,724 decreased 5% compared to the same period last year. 838 13% 14% 17% 15% Operating EBITDA margin for the first 753 half of the year was 15%. 2Q17 2Q18 6M17 6M18 2Q17 2Q18 6M17 6M18 11

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Net Income January - June Second Quarter First Quarter 2018 2017 2018 2017 2018 2017 Net income (loss) before income taxes 178 637 (72%) 75 196 (62%) 103 441 (77%) Income tax expenses (713) (151) (374%) (710) (59) (1097%) (3) (91) 97% Consolidated net income (loss) (535) 486 N/A (635) 137 N/A 100 350 (71%) Net income was negative PHP 635 million during the quarter, and negative PHP 535 million for the first six months of the year, due to higher income tax expense mainly from the utilization of NOLCO1 credits for tax on intra-group dividends and subsequent decrease in amount of deferred tax assets (non-cash expenses). Breakdown of Income Tax Expenses Cash Income Taxes Paid January - June 2018 2017 (306) (243) Current Year Income Tax (363) (334) Deferred Tax Assets (DTA) (350) 184 Income tax (713) (151) 6M18 6M17 See slide FCF slide for more information (slide 14) 1 NOLCO refers to Net Operating Loss Carry-Over 12 All amounts in Millions of Philippine Pesos

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2Q 2018 FREE CASH FLOW & GUIDANCE

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Free Cash Flow January - June Second Quarter Free cash flow during the quarter 2018 2017 2018 2017 reached PHP 715 million after % var % var maintenance CAPEX and PHP 645 Operating EBITDA 1,724 1,824 (5%) 838 753 11% million after strategic CAPEX. - Net Financial Expenses 445 459 237 200 - Maintenance Capex 362 196 283 147 - Change in Working Capital (747) 58 (524) (862) - Income Taxes Paid 243 306 139 204 - Other Cash Items (net) (14) (22) (12) (3) Free Cash Flow after 1,435 827 74% 715 1,067 (33%) Maintenance Capex - Strategic Capex 184 237 70 163 Free Cash Flow 1,251 591 112% 645 904 (29%) Millions of Philippine Pesos 14

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Solid Plant Capacity Expansion Expected total investment: US$ 225 million New line expected to start operations in the first quarter of 2020.

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2018 Guidance Cement volumes 8-12% PHP 700 million Maintenance CAPEX PHP 3,000 million Solid Plant Expansion CAPEX Capital expenditures PHP 40 million Other Strategic CAPEX PHP 3,740 million Total CAPEX Working capital Reduction of approximately PHP 1,500 -2,000 million 16

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Q&A SESSION 2Q 2018 RESULTS

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2Q 2018 APPENDIX

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Debt Information Maturity Profile1 Related Party Loans2 6,656 BDO Debt 5,027 Total Debt: PHP 15,300 Avg. life of debt: 4.5 years Net Debt to EBITDA3: 4.2x 1,664 1,214 459 389 1,074 140 140 70 140 2018 2019 2020 2021 2022 2023 2024 1 Millions of Philippine Pesos 2 Pertains to loans with CEMEX Asia B.V. 3 Last 12 months Consolidated EBITDA 19

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Definitions 6M18 / 6M17 Results for the first six months of the years 2018 and 2017, respectively PHP Philippine Pesos Pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products. Operating EBITDA Operating earnings before other expenses, net, plus depreciation and operating amortization. Free Cash Flow Operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation), Maintenance Capital Investments incurred for the purpose of ensuring the company’s operational continuity. These include capital expenditures Expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or company policies, Strategic capital investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on expenditures projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs. Change in Working capital in Only include trade receivables, trade payables, receivables and payables from and to related parties, other current the Free cash flow receivables, inventories, other current assets, and other accounts payable and accrued expense. statements Net Debt Total debt minus cash and cash equivalents. 20

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Contact Information Investor Relations Stock Information In the Philippines PSE: +632 849 3600 CHP chp.ir@cemex.com 21