6-K

 

 

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 April, 2020

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 April 30, 2020, announcing first quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
2.    First quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
3.    Presentation regarding first quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of 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: April 30, 2020     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 April 30, 2020, announcing first quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
2.   First quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).
3.   Presentation regarding first quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX).

 

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Exhibit 1 - Press Release

Exhibit 1

 

Media Relations    Investor Relations
Andrea Castro Velez    Pablo Gutierrez
+57 (1) 603-9134    +57 (1) 603-9051
andrea.castro@cemex.com    pabloantonio.gutierrez@cemex.com

 

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CLH REPORTS FIRST QUARTER 2020 RESULTS

BOGOTA, COLOMBIA. APRIL  30, 2020 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that its consolidated net sales reached US$214 million during the first quarter of 2020, a decline of 11% in local-currency terms, compared to those of the same period of 2019. Operating EBITDA reached US$46 million during the first quarter, a decline of 12% in local-currency terms on a year-over-year basis.

CLH’s Consolidated First Quarter 2020 Financial and Operational Highlights

 

   

Consolidated prices in local-currency terms for domestic gray cement and aggregates increased by 3% and 11%, respectively, while for ready-mix decreased by 1%, during the quarter on a year-over-year basis.

 

   

Consolidated volumes for domestic gray cement, ready-mix and aggregates declined by 11%, 25% and 33%, respectively, compared to those of the first quarter of 2019.

 

   

EBITDA margin improved by 0.2pp during the quarter, on a year-over-year basis, to 21.4%. The improvement was due to increased cement prices and lower energy costs, as well as to our efforts in SG&A and fixed-costs optimization, partially offset by lower volumes.

 

   

Free cash flow after strategic capital expenditures for the quarter was positive US$2 million.

 

   

Total debt declined by 8% on a year-over-year basis, reaching US$766 million as of March 2020.

Jesus Gonzalez, CEO of CLH, said, “We came into 2020 with favorable demand momentum in Colombia, Nicaragua, Guatemala and El Salvador, and a stabilizing trend in Costa Rica. These positive developments began to be impacted in March, as the COVID-19 pandemic spread and governments started implementing restrictions.”

Jesus Gonzalez added, “We are responding to the COVID-19 crisis focusing on three priorities: first, we are strengthening health and safety, complementing our existing standards by developing and implementing special protocols and guidelines designed to protect our employees, customers, and communities from the risks of COVID-19; second, we are supporting our customers and leveraging CEMEX Go for a digital experience; and third, we are taking steps to strengthen our cash position. We are suspending or reducing capital expenditures, operating expenses, production and inventory levels. With respect to CAPEX, US$20 million have been postponed until 2021. Also, members of CLH’s Board and senior leadership have agreed to voluntarily waive a percentage of their salaries or allowances during the next three months. Other salaried employees voluntarily deferred a percentage of their salaries for the same period. I would like to take this opportunity to thank my colleagues for their support in these challenging times.”

Consolidated Corporate Results

During the first quarter, controlling interest net income was a loss of US$30 million, compared to a gain of US$16 million during the same quarter of 2019.

 

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Geographical Markets First Quarter 2020 Highlights

Operating EBITDA in Colombia reached US$17 million, 24% lower in U.S.-dollar terms or 14% lower in local-currency terms, compared to that of the first quarter of 2019. Net sales on a year-over-year basis decreased by 21% in U.S.-dollar terms or by 8% in local-currency terms, to US$102 million.

In Panama, operating EBITDA declined by 25% to US$10 million during the quarter. Net sales reached US$35 million; a 31% decline compared to those of the same period of 2019.

In Costa Rica , operating EBITDA reached US$8 million during the quarter, 21% lower in U.S.-dollar terms or 24% lower in local-currency terms, on a year-over-year basis. Net sales reached US$25 million, a decline of 9% in U.S.-dollar terms or of 13% in local-currency terms, compared to those of the first quarter of 2019.

In the Rest of CLH operating EBITDA increased by 2% in U.S.-dollar terms or by 4% in local-currency terms, to US$17 million during the quarter. Quarterly net sales reached US$57 million, 1% higher in U.S.-dollar terms or 3% higher in local-currency terms, compared to those of the same period of 2019.

In accordance with its vision, CLH will continues to constantly evolve aiming to become more flexible in our operations, more creative in our commercial offerings, more sustainable in our use of resources, more innovative in conducting our business, and more efficient in our capital allocation. CLH is a regional leader in the building solutions industry that provides high-quality products and reliable services to customers and communities in Colombia, Panama, Costa Rica, Nicaragua, El Salvador, and Guatemala.

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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 CLH 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 CLH 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. CLH assumes no obligation to update or correct the information contained in this press release.

Operating EBITDA is defined as operating earnings before other expenses, net 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). All of the above items are prepared under 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 CLH believes that they are widely accepted as financial indicators of CLH’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 CLH’s financial performance, as alternatives to cash flow, as measures of liquidity or as being comparable to other similarly titled measures of other companies.

 

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Exhibit 2 - 1Q2020 Results

Exhibit 2

 

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2020 FIRST QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutiérrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com


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OPERATING AND FINANCIAL HIGHLIGHTS Consolidated net sales during the first quarter of 2020 declined by 17% volumes, increased distribution costs and the appreciation of the U.S. in U.S.-dollar terms, or by 11% in local-currency terms, compared to dollar. These impacts were partially offset by a positive price effect, as those of the first quarter of 2019. well as lower operational costs and SG&A savings. Cost of sales as a percentage of net sales during the first quarter Operating EBITDA margin during the first quarter of 2020 increased by decreased by 0.5pp from 59.9% to 59.4%, on a year-over-year basis. 0.2pp to 21.4%, on a year-over-year basis. Operating expenses as a percentage of net sales during the quarter Controlling interest net during the first quarter was a US$30 million loss, increased by 1.3pp to 28.3%, from 27.0% during the same period of compared with an income of US$16 million during the same quarter of 2019. 2019. Operating EBITDA during the first quarter of 2020 declined in U.S.-dollar Total debt declined by 8% during the quarter on a year-over-year basis, and local-currency terms by 16% and 12%, respectively, compared to reaching US$766 million. that of the first quarter of 2019. The decline was mainly due to lower 2020 First Quarter Results Page 2


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OPERATING RESULTS Colombia In Colombia, during the first quarter our domestic gray cement, ready-mix and aggregates volumes decreased by 15%, 24%, and 23%, respectively, compared with those of the first quarter of 2019. Construction activity in Colombia was strong before the impact of COVID-19. Industry volumes improved by around 7% year-to-date February, with an estimated 30% decline during March. The Government of Colombia announced an initial period of quarantine from March 25th to April 13th, period in which we suspended operations. Our cement prices during the quarter increased by 2% sequentially and by 9% year-over-year, in Colombian-pesos terms. Panama In Panama during the first quarter our domestic gray cement, ready-mix and aggregates volumes decreased by 30%, 39%, and 35%, respectively, compared to those of the first quarter of 2019. Our ready-mix volumes, on a proforma basis adjusting for the plants sold during 2019, declined by 7% during the quarter on a year-over-year basis. In Panama, the COVID-19 crisis intensified an already weakened demand environment. We estimate that industry volumes declined by around 30% during the quarter. The Government of Panama announced an initial period of quarantine from March 25th to April 25th, period in which we suspended operations. Cement demand continued to be affected by high levels of inventory in apartments and offices, as well as by the deceleration of the economy. 2020 First Quarter Results Page 3


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OPERATING RESULTS Costa Rica In Costa Rica, during the first quarter our domestic gray cement, ready-mix and aggregates volumes decreased by 4%, 11%, and 73%, respectively, compared to those of the first quarter of 2019. Please note that in our aggregates business, we had a business model change. Construction activity was showing signs of recovery before the COVID-19 containment measures taken by mid-March. For instance, construction permits improved year-to-date February by 7%. The Government of Costa Rica took decisive actions to limit the spread of COVID-19, while avoiding a complete shutdown of the economy. During the quarter, our volumes were supported by a reactivation in the residential sector and infrastructure projects. Rest of CLH In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala and El Salvador, our quarterly domestic gray cement volumes increased by 5%, while our ready-mix and aggregates volumes decreased by 15% and 12%, respectively, compared to those of the first quarter of 2019. In Nicaragua, our cement volumes improved by 2% during the quarter. This is the first year-over-year increase since the fourth quarter of 2017. Our volume performance was better than expected driven by a mild reactivation of the self-construction sector, as well as by government-sponsored projects such as a hospital, highways, and a social-housing complex. In Guatemala, our cement volumes improved by 7% percent during the quarter, showing a double-digit increase year-to-date February, and a low-single-digit decline during March. During the quarter, our cement volumes were supported by the self-construction sector, as well as by industrial-and-commercial projects in Guatemala City and other main cities. 2020 First Quarter Results Page 4


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OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow Information on Debt 2020 First Quarter Results Page 5


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OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts 2020 First Quarter Results Page 6


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OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in millions of Colombian Pesos in nominal terms, except per share amounts as of March 31 BALANCE SHEET 2020 2019 % var Total Assets 11,450,629 9,724,815 18% Cash and Temporary Investments 130,687 120,802 8% Trade Accounts Receivables 279,952 273,727 2% Other Receivables 342,389 153,301 123% Inventories 300,334 267,829 12% Other Current Assets 78,417 114,444 (31%) Current Assets 1,131,780 930,103 22% Fixed Assets 4,049,166 3,757,138 8% Other Assets 6,269,683 5,037,574 24% Total Liabilities 5,586,008 4,821,386 16% Current Liabilities 936,743 909,426 3% Long-Term Liabilities 4,387,740 3,855,012 14% Other Liabilities 261,525 56,948 359% Consolidated Stockholders’ Equity 5,864,621 4,903,429 20% Non-controlling Interest 19,547 16,724 17% Stockholders’ Equity Attributable to Controlling Interest 5,845,074 4,886,705 20% 2020 First Quarter Results Page 7


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OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales 2020 First Quarter Results Page 8


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OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters Per-country volume summary 2020 First Quarter Results Page 9


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OPERATING RESULTS Price Summary Variation in U.S. dollars Variation in local currency 2020 First Quarter Results Page 10


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DEFINITIONS OF TERMS AND DISCLOSURES IFRS 16, Leases (“IFRS 16”) Beginning January 1, 2019, IFRS 16 introduced a single lessee accounting model which requires a lessee to recognize, for all leases, assets for the right-of-use the underlying asset against a corresponding financial liability representing the net present value of estimated lease payments under the contract, allowing exemptions in case of leases with a term of up to 12 months or when the underlying asset is of low value, with a single income statement model in which the lessee recognizes amortization of the right-of-use asset and interest on the lease liability. After concluding the inventory and measurement of its leases, CEMEX Latam adopted IFRS 16 using the full retrospective approach by means of which it determined an opening cumulative effect in its statement of financial position as of January 1, 2018 as follows: (Millions of dollars) January 1st, 2018 Assets for the Right-of-use $ 15.7 Deferred tax assets $ 2.8 Lease financial liabilities $ (23.0) Deferred tax liabilities $ (0.7) Retained earnings1 $ (5.2) 1 The initial effect in retained earnings refers to a temporary difference between the straight-line amortization expense of the right-of-use asset against the amortization of the financial liability under the effective interest rate method since origination of the contracts. This difference will reverse over the remaining term of the contracts. As of March 31, 2020, and 2019, assets for the right-of-use amounted to $15.6 million and $17.4 million, respectively. In addition, as of March 31, 2020 and 2019, financial liabilities related to lease contracts amounted to $22.6 million and $24.3 million, respectively, included within “Debt and other financial liabilities”. 2020 First Quarter Results Page 11


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DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results Consolidated financial information When reference is made to consolidated financial information means Under IFRS, CLH reports its consolidated results in its functional the financial information of CLH together with its consolidated currency, which is the US Dollar, by translating the financial statements subsidiaries. of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange Presentation of financial and operating information rates at the end of each month for the income statement. Individual information is provided for Colombia, Panama and Costa Rica. Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates are provided below. Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Exchange rates 2020 First Quarter Results Page 12


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DEFINITIONS OF TERMS AND DISCLOSURES 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). Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’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 internal policies. Net debt equals total debt minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points. EoP equals End of Period. Strategic capital expenditures investments incurred with the purpose of increasing CLH’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. 2020 First Quarter Results Page 13

Exhibit 3 - 1Q2020 Results Presentation

Exhibit 3

 

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RESULTS 1Q20 April3 0, 2 0 2 zero Photo by: Esteban Vega. Revista Semana. Corabastos market in Bogotá, Colombia.    


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Forward looking information This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential” “target,” “strategy,” and “intend” or other similar words. These forward-looking statements reflect CEMEX Latam Holdings, S.A.’s (“CLH”) current expectations and projection s about future events based on CLH’s knowledge of present facts and circumstances and assumptions about future events, as well as CLH´s current plants based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CLH’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 CLH or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CLH’s exposure to other sectors that impact CLH’s business, such as, but not limited to, the energy sector; competition in the markets in which we offer our products and services;; availability of raw materials and related fluctuating prices; general political, social, economic and business conditions in the markets in which CLH operates or that affects its operations and any significant economic, health, 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; CLH’s ability to satisfy its debt obligations and CEMEX, S.A.B. de C.V.’s (“CEMEX”) ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; expected refinancing of CEMEX’s existing indebtedness; availability of short-term credit lines, which can assist us in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CLH’s and CEMEX’s cost of capital; lost of reputation of our brands; CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CLH’s cost-reduction initiatives and implement CLH’s pricing initiatives for CLH’s products; the increasing reliance on information technology infrastructure for CLH’s operations, sales in general, sales 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 subject to cyber-attacks; weather conditions; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, our products and services; weather conditions, including but not limited to, excessive rain and snow, and disasters such as earthquakes and floods; weather conditions; trade barriers; including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from free trade agreements; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy or becoming subject to similar proceedings; natural disasters and other unforeseen events (including global health hazards such as COVID-19); and the other risks and uncertainties described in CLH’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CLH’s business. The information contained in these presentations is subject to change without notice, and CLH 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 CLH’s prices for CLH’s 2 products.    


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Construction is a safe and essential industry Can be performed with low risk of virus Significant economic and social transmission contribution Tightly controlled work environments Important percentage of GDP Not open to the general public Provide infrastructure requirements Work is carried in the outdoors Fundamental engine to reactivate growth Low personnel density Keeps and create employment Strictest health and safety standards Maintains society’s well being 3    


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Focused on three main priorities during these challenging times Protect the health Support our and safety of our customers as much Strengthen our cash employees and their as possible in a position families, customers, responsible way and communities 4    


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Health and safety is our number one priority ƒ¼ Established Rapid Response Teams ƒ¼ Appointed a COVID-19 coordinator in all our sites ƒ¼ Developed over 50 new protocols and guidelines designed to protect our employees, customers and communities ƒ¼ Modified processes to implement physical distancing and working remotely, where possible ƒ¼ Enhanced internal information campaigns ƒ¼ Supporting our communities ƒ~ Delivery of essentials to vulnerable families ƒ~ Mobilized ready-mix trucks with soap and water to sanitize strategic open public areas 5    


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Committed to supporting our customers ƒ¼ Adopted measures designed to maintain business continuity ƒ¼ Sales force and service centers enabled with remote-work tools and capabilities ƒ¼ Sharing best practices with clients ƒ¼ Leveraging on CEMEX Go to support our clients at a distance ƒ¼ Monitoring demand conditions and market positions in our markets 6    


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Strengthen our cash position ƒ¼ Suspending or reducing: ƒ~ Capital expenditures ƒ~ Budgeted operating expenses ƒ~ Production and inventory levels in all our markets ƒ~ Corporate and global networks activities ƒ¼ Voluntary waiver or deferral of salaries for the next three months in several layers of the organization ƒ¼ Taking additional measures to respond to the crisis, such as lowering fees and expenses, hiring and salary freezes, maintenance adjustments, collective vacations, among others. As of today, the total savings of these measures are expected to reach around US$8 million during 2020    


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Financial Results Summary Net sales during 1Q20 down by 11% in local-currency terms. Sales Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) impacted in March by the virus-containment measures -17% -16% 0.2pp The U.S. dollar appreciated vs. the Colombian peso by 17% during 55 1Q20 in average YoY 258 . 4% 21 214 46 2% . 21 EBITDA margin during 1Q20 up by 0.2 pp YoY, to 21.4%. The improvement was due to higher cement prices, lower fixed costs and SG&A savings 1Q19 1Q20 1Q19 1Q20 1Q19 1Q20 8    


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Consolidated Volumes and Prices 1Q20 1Q19 vs. 1Q20 4Q19 vs. Cement volumes in line with guidance YTD February, however, Domestic Volume -11% -11% declined by 27% in March YoY gray Price (USD) -4% 0% cement Price (LtL1) 3% 3% Cement prices up by 3% during 1Q20 in local-currency terms , both Volume -25% -16% YoY and QoQ Ready-mix concrete Price (USD) -10% -2% Price (LtL1) -1% 2% In the cement business, the main Volume -33% -25% driver of the price increase on a LtL Aggregates Price (USD) 0% 3% basis was Colombia, where we improved prices by 9% YoY and Price (LtL1) 11% 8% 2% QoQ (1) Like-to-like prices adjusted for foreign-exchange fluctuations 9    


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EBITDA Variation 3M20 -16% 55 -16 4 2 -4 7 -2 46 EBITDA Vol Price Operating Dist. SG&A FX EBITDA 3M19 Costs 3M20 21.2% 21.4% +0.2pp EBITDA EBITDA Margin 3M19 Margin 3M20 10    


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REGIONAL HIGHLIGHTS 1 Q 2 0 R e s u l t s    


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Results Highlights Colombia    


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Colombia Results Highlights Industry cement demand up ~7% 1Q20 1Q19 % var YTD February, with an estimated Net Sales 102 128 -21% 30% decline during March due to Financial the COVID-19 restrictions Summary Op. EBITDA 17 22 -24% US$ Million as % net sales 16.3% 17.1% (0.8pp) Our cement and ready-mix prices 1Q20 vs. 1Q19 1Q20 vs. 4Q19 improved during 1Q20, both YoY Cement -15% -20% and QoQ. Net sales down by 8% Volume Ready-mix -24% -20% YoY in local currency terms due to Aggregates -23% -20% lower volumes 1Q20 vs. 1Q19 1Q20 vs. 4Q19 EBITDA margin during 1Q20 Cement 9% 2% declined by 0.8pp. The positive Price effect of higher prices was offset (Local Currency) Ready-mix 3% 3% by lower volumes and increased Aggregates 2% -1% distribution costs 13    


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Colombia Infrastructure Sector Encouraging that infrastructure and construction in general was prioritized to resume activities in Colombia 4G projects restarted first; expect total cement/ready-mix demand to reach 1.2 million m3 during 2020, more than 50% vs. 2019 Regional projects could be delayed as mayors and governors are redirecting resources, previously budgeted for infrastructure, to fight the COVID-19 crisis 14    


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Colombia Housing Sector Demand from the self-construction sector, while is typically resilient during crisis, could be impacted by an expected increase in unemployment and lower remittances Low-income housing should restart supported by guaranteed government subsidies and lower interest rates. However, new projects could be delayed Lower oil prices could impact business sentiment and delay industrial-and-commercial projects 15    


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Results Highlights Panama    


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Panama Results Highlights 1Q20 1Q19 % var We estimate that industry cement Net Sales 35 50 -31% demand declined by ~30% during Financial 1Q20; in line with our volumes Summary Op. EBITDA 10 14 -25% US$ Million as % net sales 30.0% 27.7% 2.3pp Previous to the COVID-19 impact, 1Q20 vs. 1Q19 1Q20 vs. 4Q19 demand continued affected by Cement -30% -13% high inventories in apartments and Volume offices, as well as by the Ready-mix 1 -39% -16% Aggregates deceleration of the economy -35% -22% 1Q20 vs. 1Q19 1Q20 vs. 4Q19 EBITDA margin improved by Cement -7% -1% 2.3pp during 1Q20 YoY, mainly due Price to lower variable, fixed, and SG&A (Local Currency) Ready-mix -8% -2% costs Aggregates -7% 2% (1) and On a by pro 1% -forma 1Q20 basis vs.4Q19 adjusting for the ready-mix plants sold during 2019, volumes declined by 7% 1Q20 vs. 1Q19 17    


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Panama    Highlights New 30% tariff to imported cement from April to Dec 31st 2020; implemented to protect local employment during the crisis After an initial quarantine from March 25 to April 25, the government extended the suspension of the construction industry until May 24 Infrastructure should be prioritized once restrictions are lifted; the Fourth Bridge over the canal and the “Corredor de las Playas” highway, highlighted as key countercyclical projects 18    


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Results Highlights Costa Rica    


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Costa Rica Results Highlights 1Q20 1Q19 % var We estimate that industry cement demand declined by ~4% during Net Sales 25 28 -9% 1Q20, in line with our volumes Financial Summary Op. EBITDA 8 10 -21% US$ Million as % net sales 30.9% 35.6% (4.7pp) Economic and construction 1Q20 vs. 1Q19 1Q20 vs. 4Q19 activity recovering before the Cement -4% 10% COVID-19 impact; construction permits and consumer confidence Volume Ready-mix -11% 41% improved YTD February Aggregates 1 -73% -54% 1Q20 vs. 1Q19 1Q20 vs. 4Q19 EBITDA margin during 1Q20 Cement -9% -2% declined by 4.7pp, mainly due to Price lower prices and volumes, as well (Local Currency) Ready-mix -10% -5% as increased distribution costs Aggregates 1 150% 181% (1) Business model change 20    


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Costa Rica Highlights The Government has taken effective actions to limit the spread of COVID-19, while avoiding a shutdown Construction activity continues; infrastructure projects such as “Circunvalación Norte”, “Rio Virilla” bridge and the “Garantías Sociales” bridge, among others, providing volume support Government recently announced a new US$2 billion public-private partnership program for infrastructure as a countercyclical measure for the economy 21    


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Results Highlights Rest of CLH    


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Rest of CLH Results Highlights 1Q20 1Q19 % var Cement volumes improved by 5% Net Sales 57 57 1% YoY; volumes increased in Financial Nicaragua, Guatemala and El Summary Op. EBITDA 17 17 2% US$ Million Salvador as % net sales 30.5% 30.2% 0.3pp 1Q20 vs. 1Q19 1Q20 vs. 4Q19 Our prices remained flat for Cement 5% 9% cement and increased by 1% for Volume Ready-mix -15% 9% ready-mix, on a sequential basis Aggregates -12% -37% 1Q20 vs. 1Q19 1Q20 vs. 4Q19 EBITDA improved by 2% during Cement -2% 0% 1Q20, driven by higher volumes Price and lower clinker costs in (Local Currency) Ready-mix 3% 1% Guatemala Aggregates 28% 24% 23    


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Nicaragua Highlights Our cement volumes up 2% during the quarter; first year-over-year increase since 4Q17 Cement volumes driven by a mild reactivation of the self-construction sector and government-sponsored projects Economic and social activity remains relatively normal as schools, shops and sporting events remain open; we have enhanced our Health & Safety protocols 24    


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Guatemala    Highlights Our cement volumes up 7% during the quarter, double-digit increase YTD February, and a low-single-digit decline during March Cement volumes driven by the self-construction sector, as well as by industrial-and-commercial projects in Guatemala City and other main cities The Government, in coordination with the private sector, has been effective dealing with COVID-19, without paralyzing the economy 25    


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OTHER INFORMATION 1 Q 2 0 R e s u l t s    


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Free Cash Flow generation Free cash flow declined due to US$ Million 1Q20 1Q19 % var lower EBITDA and increased Operating . EBIT EBITDA 46 55 -16% working capital investment, despite lower financial expenses, - Net financial expense 13 14 CAPEX and taxes - Maintenance Capex 2 5—Change in working cap 21 6 - Taxes paid 6 13 - Other cash items (net) 0 -1 Free Cash Flow 2 17 -85% After Maintenance Capex—Strategic Capex 1 0 Financial expenses during the Free Cash Flow 2 17 -89% quarter declined by 4% YoY, due to our debt reduction efforts 27    


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Income Statement US$ Million 1Q20 1Q19 % var Controlling Interest Net loss mainly Net sales 214 258 -17% due to lower sales and a negative - Cost of sales 127 155 effect in the Other-income-and-Gross profit 87 104 -16% expenses-net line. These effects - Operating expenses 61 70 were partially offset by lower cost of sales and taxes Operating earnings (loss) before other 27 34 -22% expenses, net—Other expenses, net 2 0 Operating earnings (loss) 25 34 -27% Negative impact in the Other- - Financial expenses 13 14—Other income (expenses), net 39 -3 income-and-expenses-net line due Net income (loss) before income taxes -27 23 to a foreign-exchange effect on the financial balances, mainly from - Income tax 3 7 24% appreciation of the U.S.-dollar Consolidated net income (loss) -30 16 versus the Colombian peso from - Non-controlling interest net income 0 0 December 2019 to March 2020 Controlling Interest Net Income (loss) -30 16 n/a 28    


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Consolidated debt as of March 31, 2020 US$ Million US$766 M total debt 491 3.9x Net Debt / LTM EBITDA 165 During April, CLH subsidiaries in 84 Colombia and Panama obtained 4 2020 2021 2022 2023 2024 bank financings for the equivalent of US$29 million with a maturity of Borrower Lender Currency Cost US$ M Maturity 3 to 6 months CEMEX Colombia S.A. 1 Local Banks COP Variable 9.18% 4 Nov-2020 Cementos Bayano S.A. 1 Lomez International B.V3 USD 6ML + 360 bps 84 Dec-2022 CCL2 Lomez International B.V3 USD Fixed 5.65% 491 Feb-2023 In addition to our local financing CEMEX Colombia S.A. 1 CEMEX España S.A.3 USD 6ML + 277 bps 165 Dec-2024 capabilities, we have US$457 Other debt (Leases) 22 million in available credit under our Average Cost / Total USD 5.42%4 766 current loan facilities with subsidiaries of CEMEX, our parent (1) Subsidiary company of CEMEX Latam Holdings S.A. company (2) Refers to “Corporación Cementera Latino Americana”. Subsidiary company of CEMEX Latam Holdings S.A. (3) Subsidiary company of CEMEX, S.A.B. de C.V. 29 (4) Average Cost of U.S. dollar denominated debt    


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2020 Guidance Total CAPEX US$30 M Maintenance US$25 M Strategic US$5 M Cash Taxes US$50 M 30    


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Forward looking information This presentation contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential” “target,” “strategy,” and “intend” or other similar words. These forward-looking statements reflect CEMEX Latam Holdings, S.A.’s (“CLH”) current expectations and projection s about future events based on CLH’s knowledge of present facts and circumstances and assumptions about future events, as well as CLH´s current plants based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CLH’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 CLH or its subsidiaries, include, but are not limited to, the cyclical activity of the construction sector; CLH’s exposure to other sectors that impact CLH’s business, such as, but not limited to, the energy sector; competition in the markets in which we offer our products and services;; availability of raw materials and related fluctuating prices; general political, social, economic and business conditions in the markets in which CLH operates or that affects its operations and any significant economic, health, 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; CLH’s ability to satisfy its debt obligations and CEMEX, S.A.B. de C.V.’s (“CEMEX”) ability to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; expected refinancing of CEMEX’s existing indebtedness; availability of short-term credit lines, which can assist us in connection with market cycles; the impact of CEMEX’s below investment grade debt rating on CLH’s and CEMEX’s cost of capital; lost of reputation of our brands; CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from CLH’s cost-reduction initiatives and implement CLH’s pricing initiatives for CLH’s products; the increasing reliance on information technology infrastructure for CLH’s operations, sales in general, sales 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 subject to cyber-attacks; weather conditions; changes in the economy that affect demand for consumer goods, consequently affecting demand for our products and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, our products and services; weather conditions, including but not limited to, excessive rain and snow, and disasters such as earthquakes and floods; weather conditions; trade barriers; including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from free trade agreements; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy or becoming subject to similar proceedings; natural disasters and other unforeseen events (including global health hazards such as COVID-19); and the other risks and uncertainties described in CLH’s public filings. Readers are urged to read these presentations and carefully consider the risks, uncertainties and other factors that affect CLH’s business. The information contained in these presentations is subject to change without notice, and CLH 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 CLH’s prices for CLH’s 31 products.    


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RESULTS 1Q20 A pr i l 3 0 , 2 0 2 0 Photo by: Esteban Vega. Revista Semana. Corabastos market in Bogotá, Colombia.    


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Contact Information Investor Relations Stock Information Pablo Gutiérrez, CFA Colombian Stock Exchange Phone: +57(1) 603-9051 CLH E-mail: pabloantonio.gutierrez@cemex.com Juan Camilo Álvarez Phone: +57(1) 603-9909 E-mail: juancamilo.alvarez@cemex.com 33