UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 or 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of October, 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
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, CEMEX, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| CEMEX, S.A.B. de C.V. | ||||||
| (Registrant) | ||||||
| Date: October 28, 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 October 28, 2020, announcing third quarter 2020 results for CEMEX Latam Holdings, S.A., an indirect subsidiary of CEMEX, S.A.B. de C.V. (NYSE: CX). | |
| 2. |
Third 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 third 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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| 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 |
CLH REPORTS THIRD QUARTER 2020 RESULTS
BOGOTA, COLOMBIA. OCTOBER 28, 2020 – CEMEX Latam Holdings, S.A. (“CLH”) (BVC: CLH), announced today that its consolidated net sales declined by 8%, while the EBITDA improved by 19%, during the third quarter compared to those of the same period of 2019*. Quarterly EBITDA margin improved by 5.5 percentage points, mainly due to increased cement prices, as well as to lower costs and SG&A, despite lower volumes.
CLH’s Consolidated Third Quarter 2020 Financial and Operational Highlights
| • | Quarterly EBITDA increased by 19% on a like-to-like basis, while the EBITDA margin improved by 5.5pp reaching the highest level since the fourth quarter of 2017 |
| • | Our cost savings program reached US$39 million year-to-date September, expect to reach US$46 million in total for 2020 |
| • | Reduced net debt by US$48 million and our leverage ratio by 0.4x to 3.7x, from June to September |
| • | Net loss of US$109 million during the third quarter, due to a non-cash impairment of goodwill and idle assets |
| • | Our Net-Promoter-Score reached 66 points during the third quarter, 9 points higher on a year-over-year basis, driven by our customer-support programs and CEMEX Go |
Jesus Gonzalez, CEO of CLH, said: “Our operations could run relatively normally during the third quarter in Colombia, Guatemala, Nicaragua and El Salvador, while restrictions impacted in Panama and to a lesser degree in Costa Rica. Despite a decline in sales during the quarter, we improved our EBITDA by 19% on a like-to-like basis, supported by pricing and our cost-savings program. Our quarterly EBITDA margin reached the highest level since the fourth quarter of 2017. Additionally, we reduced our net debt by 48 million dollars and our leverage ratio by 0.4x, from 4.1x in June to 3.7x in September.”
Jesus Gonzalez added: “We continue supporting our customers on some of the challenges they are facing due to COVID-19 through our program “CEMEX Te Acompaña” and our digital platform CEMEX Go. As a result of these actions, during the quarter we increased our Net-Promoter-Score by 19 points on a year-over-year basis.”
Consolidated Corporate Results
During the third quarter, controlling interest net loss of US$109 million, compared with a loss of US$4 million during the same quarter of 2019. The loss during the quarter was due to a non-cash impairment of goodwill and idle assets.
Geographical Markets Third Quarter 2020 Highlights
Operating EBITDA in Colombia reached US$28 million, 59% higher on a like-to-like basis, compared with that of the third quarter of 2019. Net sales increased by 1% on a like-to-like basis, versus those of the same period of the previous year, to US$115 million.
In Panama, operating EBITDA during the third quarter was US$1 million. Net sales reached US$16 million during the quarter; a decline of 64% compared with those of the same period of 2019.
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In Costa Rica, operating EBITDA reached US$7 million during the quarter, 54% higher on a like-to-like basis compared with that of the previous year. Net sales reached US$21 million, 12% lower on a like-to-like basis, compared with those of the third quarter of 2019.
In the Rest of CLH operating EBITDA increased by 52% on a like.to-like basis, to US$21 million during the quarter. Quarterly net sales reached US$60 million, an increase of 19% on a like-to-like basis, compared with those of the same period of 2019.
| * | Like-to-like adjusted for currency fluctuations. |
In accordance with its vision, CLH 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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OPERATING AND FINANCIAL HIGHLIGHTS January-September Third Quarter 2020 2019 % var I-t-l % var 2020 2019 % var I-t-l % var Consolidated cement volume 3,919 4,892 (20%) 1,475 1,647 (10%) Consolidated domestic gray cement volume 3,634 4,392 (17%) 1,374 1,480 (7%) Consolidated ready-mix volume 1,178 1,831 (36%) 463 601 (23%) Consolidated aggregates volume 2,427 4,377 (45%) 931 4,426 (35%) Net sales 571 752 (24%) (18%) 209 245 (15%) (8%) Gross profit as % of net sales 229 40.0% 290 38.6% (21%) 1.4pp (16%) 87 41.8% 96 39.2% (9%) 2.6pp (2%) Operating earnings (loss) before other expenses, net as % of net sales 69 12.1% 87 11.6% (21%) 0.5pp (15%) 32 15.2% 27 11.2% 15% 4.0pp 26% Controlling interest net income (loss) -129 8 NA -109 -4 (2974%) Operating EBITDA as % of net sales 126 22.0% 146 19.4% (14%) 2.6pp (9%) 51 24.2% 46 18.7% 10% 5.5pp 19% Free cash flow after maintenance capital expenditures 68 52 31% 40 12 238% Free cash flow 66 50 32% 39 12 228% Net debt 659 765 (14%) 659 765 (14%) Total debt 688 788 (13%) 688 788 (13%) Earnings (loss) of continued operations per share (0.23) 0.01 N/A (0.20) (0.01) (2965%) Shares outstanding at end of period 558 557 0% 558 557 0% Employees 3,932 3,896 1% 3,932 3,896 1% 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-share amounts. Shares outstanding are presented in millions. Consolidated net sales during the third quarter of 2020 declined by 8% on a like-to-like basis adjusting for foreign exchange fluctuations, compared with those of the third quarter of 2019. Cost of sales as a percentage of net sales during the third quarter decreased by 2.6pp from 60.8.% to 58.2%, on a year-over-year basis. Operating expenses as a percentage of net sales during the quarter declined by 1.3pp from 27.9% to 26.6%, compared to those of 2019. Operating EBITDA during the third quarter of 2020 increased by 19% on a like-to-like basis, compared with that of the third quarter of 2019. Operating EBITDA margin during the third quarter of 2020 increased by 5.5pp, compared with that of the third quarter of 2019. Controlling interest net income during the third quarter was a loss of US$109 million due to a non-cash impairment of goodwill and idle assets. Net debt declined US$48 million from June to September, reaching US$659 million.
OPERATING RESULTS Colombia January-September Third Quarter 2020 2019 % var I-t-I % var 2020 2019 % var I-t-I % var Net sales 284 376 (25%) (14%) 115 127 (9%) 1% Operating EBITDA 57 59 (4%) 8% 28 20 42% 59% Operating EBITDA margin 19.9% 15.7% 4.2pp 24.6% 15.7% 8.9pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January-September Third Quarter January-September Third Quarter January-September Third Quarter Volume (20%) (6%) (30%) (12%) (33%) (13%) Price (USD) (5%) (3%) (10%) (9%) (12%) (15%) Price (local currency) 9% 8% 3% 2% (0%) (5%) Year-over-year percentage variation. In Colombia, after the sharp decline in cement demand during April and May due to the lockdowns, industry volumes reached nearly 2019 levels during the third quarter. Our cement volumes declined by 6% during the quarter, reflecting an impact due to our price increase implemented in July and a high base of comparison as a new competitor entered the market in late 2019. Our cement prices increased by 2% and 8% on a sequential and year-over-year basis, respectively, reaching the highest level since 2016 in local-currency terms. The improvement on a sequential basis reflects our price increase implemented in July. Panama January-September Third Quarter 2020 2019 % var I-t-I % var 2020 2019 % var I-t-I % var Net sales 58 143 (60%) (60%) 16 45 (64%) (64%) Operating EBITDA 8 38 (78%) (78%) 1 14 (89%) (89%) Operating EBITDA margin 14.6% 26.8% (12.2pp) 9.0% 30.7% (21.7pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January-September Third Quarter January-September Third Quarter January-September Third Quarter Volume (60%) (63%) (74%) (87%) (69%) (82%) Price (USD) (6%) (5%) (6%) (1%) (8%) (19%) Price (local currency) (6%) (5%) (6%) (1%) (8%) (19%) Year-over-year percentage variation. Panama is the country in the region with the longest and most severe restrictions on mobility and activity. Following government regulations, our operations resumed regular activities in mid-September. Hardware stores and certain infrastructure projects could operate during the quarter, while formal construction sites resumed operations in mid-September. Our quarterly cement volumes declined by 63%. In addition to the COVID-19 restrictions, our performance reflects a new cement producer which came into the market during late June.
OPERATING RESULTS Costa Rica January—September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 67 80 (17%) (18%) 21 25 (15%) (12%) Operating EBITDA 22 24 (9%) (10%) 7 5 49% 54% Operating EBITDA margin 32.4% 29.6% 2.8pp 34.3% 19.6% 14.7pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates Januray—September Third Quarter Januray—September Third Quarter Januray—September Third Quarter Volume (13%) (21%) (21%) (17%) (70%) (79%) Price (USD) (5%) (5%) (7%) (8%) 107% 169% Price (local currency) (6%) (1%) (9%) (5%) 102% 179% Year-over-year percentage variation. In Costa Rica, our cement volumes during the third quarter declined by 21%. COVID-19 cases in the country accelerated in late June, prompting a 9-day quarantine in July only for the districts impacted by a COVID-19 surge. Although the lockdown did not impact our operations directly, it curbed cement demand during that period. Our quarterly prices improved by 2% sequentially and declined by 1% year-over-year, in local-currency terms. The sequential improvement reflects our price increase of around 4% for bagged cement, effective on June. Rest of CLH January—September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 174 164 6% 7% 60 51 18% 19% Operating EBITDA 58 46 25% 27% 21 14 50% 52% Operating EBITDA margin 33.5% 28.3% 5.2pp 34.5% 27.1% 7.4pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates Januray—September Third Quarter Januray—September Third Quarter Januray—September Third Quarter Volume 11% 25% (17%) (30%) (38%) (54%) Price (USD) (4%) (3%) 1% (0%) 2% (15%) Price (local currency) (2%) (2%) 2% 1% 5% (12%) Year-over-year percentage variation. Our cement volumes improved by 25% during the quarter, reaching the highest level since the third quarter of 2016. Cement volumes increased in all countries of the Rest of CLH region. In Guatemala, our cement volumes improved during the quarter supported by an acceleration in the self-construction sector, segment where we have a higher relative presence. Additionally, our volumes benefited from tighter controls in the northern border—implemented because of COVID-19—which restrained flows of illegal cement imports. In Nicaragua, we are encouraged by the improvement in construction activity observed during the quarter and the first nine months of the year. Our cement volumes increased during the quarter driven by the self-construction sector, as well as by government-sponsored projects, such as a hospital, highways, and a social-housing complex.
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January—September Third Quarter 2020 2019 % var 2020 2019 % var Operating earnings before other expenses, net 69 87 (21%) 32 27 15% + Depreciation and operating amortization 57 59 19 18 Operating EBITDA 126 146 (14%) 51 46 10% - Net financial expense 39 40 13 13 - Capital expenditures for maintenance 10 30 6 13 - Change in working Capital 6 (9) (13) (4) - Taxes paid (2) 35 2 12 -Other cash items (Net) 5 (1) 3 2 Free cash flow after maintenance capital exp 68 52 31% 40 12 238% - Strategic Capital expenditures 2 1 1 — Free cash flow 66 50 32% 39 12 228% In millions of US dollars, except percentages. Information on Debt Third Quarter Second Quarter Third Quarter 2020 2019 %var 2020 2020 2019 Total debt 1, 2 688 788 785 Currency denomination Short term 3% 18% 6% U.S. dollar 98% Long term 97% 82% 94% Colombian peso 2% Cash and cash equivalents 30 23 28% 78 Interest rate Net debt 659 765 (14)% 707 Fixed 67% 60% Net debt / LTM3 EBITDA 3.7x 3.8x 4.1x Variable 33% 40% In millions of US dollars, except percentages. 1 Includes leases, in accordance with International Financial Reporting Standards (IFRS). 2 Represents the consolidated balances of CLH and subsidiaries. 3 Refers to “last Twelve Months”
OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts January - September Third Quarter INCOME STATEMENT 2020 2019 % var I-t-1 % var 2020 2019 % var I-t-1 % var Netsales 571,417 751,826 (24%) (18%) 209,064 244,644 (15%) (8%) Cost of sales (342,734) (461,730) 26% (121,721) (148,824)18% Gross profit 228,683 290,096 (21%) (16%) 87,343 95,820 (9%) (2%) Operating expenses (159,601) (202,969) 21% (55,655) (68,361)19% Operating earnings (loss) before other expenses, net 69,082 87,127 (21%) (15%) 31,688 27,459 15% 26% Other expenses, net (130,264) (12,337) (956%) (125,519) (4,244) (2858%) Operating earnings (loss) (61,182) 74,790 n/a (93,831) 23,215 n/a Financial expenses (38,711) (39,598) 2% (12,237) (12,591) 3% Other income (expenses), net (18,436) (22,595) 18% 3,122(16,708) n/a Net income (loss) before income taxes (118,329) 12,597 n/a (102,946) (6,084) (1592%) Income tax (11,489)(5,036) (128%) (6,996) 2,502 n/a Consolidated net income (loss) (129,818) 7,561 n/a (109,942) (3,582) (2969%) Non-controlling interest net income 765 18 4071% 679 27 2454% Controlling Interest Net Income (loss) (129,053) 7,579 n/a (109,263) (3,555) (2974%) Operating EBITDA 125,600 146,003 (14%) (9%) 50,546 45,827 10% 19% Earnings (loss) of continued operations per share (0.23)0.01 n/a (0.20) (0.01) (2965%) as of September 30 BALANCE SHEET 2020 2019 % var Total Assets 2,616,830 2,934,625(11%) Cash and Temporary Investments 29,755 23,193 28% Trade Accounts Receivables 63,507 79,833 (20%) Other Receivables 52,887 54,383 (3%) Inventories 70,077 76,176 (8%) Other Current Assets 17,395 13,708 27% Current Assets 233,621 247,293 (6%) Fixed Assets 982,144 1,113,189 (12%) Other Assets 1,401,065 1,574,143 (11%) Total Liabilities1,294,500 1,412,635 (8%) Current Liabilities 242,000 392,858 (38%) Long-Term Liabilities 990,402 1,002,663 (1%) Other Liabilities 62,098 17,114 263% Consolidated Stockholders’ Equity 1,322,330 1,521,990 (13%) Non-controlling Interest 4,6805,116 (9%) Stockholders’ Equity Attributable to Controlling Interest 1,317,650 1,516,874 (13%)
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 January-September Third Quarter INCOME STATEMENT 2020 2019 % var 2020 2019 % var Net sales 2,149,540 2,456,598 (12%) 792,967 830,568 (5%) Cost of sales (1,289,286) (1,508,707) 15% (461,679) (505,314) 9% Gross profit 860,254 947,891 (9%) 331,288 325,344 2% Operating expenses (600,383) (663,204) 9% (211,097) (232,111) 9% Operating earnings (loss) before other expenses, net 259,871 284,687 (9%) 120,191 93,233 29% Other expenses, net (490,024) (40,311) (1116%) (476,088) (14,410) (3204%) Operating earnings (loss) (230,153) 244,376 n/a (355,897) 78,823 n/a Financial expenses (145,624) (129,386) (13%) (46,413) (42,751) (9%) Other income (expenses), net (69,351) (73,829) 6% 11,843 (56,729) n/a Net income (loss) before income taxes (445,128) 41,161 n/a (390,467) (20,657) (1790%) Income tax (43,128) (16,456) (163%) (26,538) 8,494 n/a Consolidated net income (loss) (488,346) 24,705 n/a (417,005) (12,163) (3329%) Non-controlling interest net income 2,878 60 4702% 2,577 94 2649% Controlling interest Net Income (loss) (485,468) 24,765 n/a (414,428) (12,069) (3334%) Operating EBITDA 472,479 477,068 (1%) 191,720 155,599 23% Earnings (loss) of continued operations per share (875) 44 n/a (747) (22) (3324%) as of September 30 BALANCE SHEET 2020 2019 % var Total Assets 10,150,525 10,159,700 (0%) Cash and Temporary Invetments 115,450 80,294 44% Trade Accounts Receivables 246,340 276,384 (11%) Other Receivables 205,147 188,276 9% Inventories 271,823 263,722 3% Other Current Assets 67,472 47,455 42% Current Assets 906,202 856,131 6% Fixed Assets 3,809,680 3,853,872 (1%) Other Assets 5,434,643 5,449,697 (0%) Total Liabilities 5,021,288 4,890,556 3% Current Liabilities 938,705 1,360,078 (31%) Long-Term Liabilities 3,841,711 3,471,231 11% Other Liabilities 240,872 59,247 307% Consolidated Stockholders’ Equity 5,129,237 5,269,144 (3%) Non-controlling Interest 18,150 17,709 2% Stockholders’ Equity Attributable to Controlling Interest 5,111,087 5,251,435 (3%)
OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales January-September Third Quarter 2020 2019 % var I-t-l % var 2020 2019 % var I-t-l % var NET SALES Colombia 283,689 376,324 (25%) (14%) 115,049 126,673 (9%) 1% Panama 57,526 143,038 (60%) (60%) 16,342 45,182 (64%) (64%) Costa Rica 66,829 80,109 (17%) (18%) 21,157 24,901 (15%) (12%) Rest of CLH 173,840 164,369 6% 7% 60,226 51,195 18% 19% Others and intercompany eliminations (10,467) (12,014) 13% 13% (3,709) (3,307) (12%) (12%) TOTAL 571,417 751,826 (24%) (18%) 209,064 244,644 (15%) (8%) GROSS PROFIT Colombia 112,220 139,944 (20%) (9%) 48,573 47,985 1% 13% Panama 13,221 50,327 (74%) (74%) 3,212 18,364 (83%) (83%) Costa Rica 33,454 37,134 (10%) (11%) 11,075 9,491 17% 21% Rest of CLH 72,095 63,021 14% 16% 25,176 19,166 31% 33% Others and intercompany eliminations (2,307) (330) (599%) N/A (693) 814 N/A N/A TOTAL 228,683 290,096 (21%) (16%) 87,343 95,820 (9%) (2%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 38,211 38,729 (1%) 10% 21,941 13,295 65% 84% Panama (3,130) 25,424 N/A N/A (2,050) 9,731 N/A N/A Costa Rica 18,091 20,216 (11%) (12%) 6,145 3,742 64% 70% Rest of CLH 52,097 40,699 28% 30% 18,517 12,061 54% 55% Others and intercompany eliminations (36,187) (37,941) 5% 5% (12,865) (11,370) (13%) (13%) TOTAL 69,082 87,127 (21%) (15%) 31,688 27,459 15% 26% OPERATING EBITDA Colombia 56,585 58,974 (4%) 8% 28,343 19,901 42% 59% Panama 8,386 38,281 (78%) (78%) 1,469 13,869 (89%) (89%) Costa Rica 21,625 23,689 (9%) (10%) 7,264 4,878 49% 54% Rest of CLH 58,219 46,442 25% 27% 20,771 13,861 50% 52% Others and intercompany eliminations (19,215) (21,383) 10% 10% (7,301) (6,682) (9%) (9%) TOTAL 125,600 146,003 (14%) (9%) 50,546 45,827 10% 19% OPERATING EBITDA MARGIN Colombia 19.9% 15.7% 4.2pp 24.6% 15.7% 8.9pp Panama 14.6% 26.8% (12.2pp) 9.0% 30.7% (21.7pp) Costa Rica 32.4% 29.6% 2.8pp 34.3% 19.6% 14.7pp Rest of CLH 33.5 28.3% 5.2pp 34.5% 27.1% 7.4pp TOTAL 22.0% 19.4% 2.6pp 24.2% 18.7% 5.5pp
OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters January-SeptemberThird Quarter 20202019% var20202019% var Total cement volume1 3,9194,892(20%)1,4751,647(10%) Total domestic gray cement volume 3,6344,392(17%)1,3741,480(7%) Total ready-mix volume 1,1781,831(36%)463601(23%) Total aggregates volume 2,4274,377(45%)9311,426(35%) 1 Consolidated cement volume includes domestic and export volume of gray cement, special cement, mortar and clinker. Per-country volume summary January-Septembet Third Quarter Third Quarter 2020 2020 vs. 2019 2020 vs. 2019 vs. Second Quarter 2020 DOMESTIC GRAY CEMENT Colombia (20%) (6%) 66% Panama (60%) (63%) 187% Costa Rica (13%) (25%) (7%) Rest of CLH 11% 25% 8% READY-MIX Colombia (30%) (12%) 118% Panama (74%) (87%) 1702% Costa Rica (21%) (17%) (8%) Rest of CLH (17%) (30%) (15%) AGGREGATES Colombia (33%) (13%) 128% Panama (69%) (82%) 373% Costa Rica (70%) (79%) (57%) Rest of CLH (38%) (54%) (3%)
OPERATING RESULTS Price Summary Variation in U.S. dollars Variation in local currency January - September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 67 80 (17%) (18%) 21 25 (15%) (12%) Operating EBITDA 22 24 (9%) (10%) 7 5 49% 54% Operating EBITDA margin 32.4% 29.6% 2.8pp 34.3% 19.6% 14.7pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - September Third Quarter January - September Third Quarter January - September Third Quarter Volume (13%) (21%) (21%) (17%) (70%) (79%) Price (USD) (5%) (5%) (7%) (8%) 107% 169% Price (local currency) (6%) (1%) (9%) (5%) 102% 179% Year-over-year percentage variation. January - September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 174 164 6% 7% 60 51 18% 19% Operating EBITDA 58 46 25% 27% 21 14 50% 52% Operating EBITDA margin 33.5% 28.3% 5.2pp 34.5% 27.1% 7.4pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - September Third Quarter January - September Third Quarter January - September Third Quarter Volume 11% 25% (17%) (30%) (38%) (54%) Price (USD) (4%) (3%) 1% (0%) 2% (15%) Price (local currency) (2%) (2%) 2% 1% 5% (12%) Year-over-year percentage variation.
DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. 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.” Consolidated financial information When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries. Presentation of financial and operating information Individual information is provided for Colombia, Panama and Costa Rica. Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. Exchange rates Exchange rates January - September January - September Third Quarter 2020 EoP 2019 Eop 2020 average 2019 average 2020 average 2019 average Colombian peso 3,878.94 3,462.01 3,761.77 3,267.51 3,792.94 Panama balboa 1.00 1.00 1.00 1.00 1.00 3,395.38 Costa Rica colon 606.68 583.88 584.22 592.56 597,67 577.50 Euro 0.85 0.86 0.89 0.84 0.85 0.86 Amounts provided in units of local currency per US dollar.
DEFINITIONS OF TERMS AND DISCLOSURES Relevant accounting effects included in the reported financial statements In the financial statements of the third quarter of 2020, approved by its Board of Directors, CEMEX Latam Holdings S.A. recognized a non-cash aggregate impairment charge in the income statement of $121.1 million dollars, within the line item other expenses, net. The impairment charge is comprised of $108.2 million of impairment from goodwill related to CLH’s businesses in Panama of $81.3 million and Costa Rica of $26.9 million, recognized under the line of Goodwill and other intangible assets, net, as well as of $12.9 million of impairment from idle fixed assets, recognized within the line of Property, machinery and equipment, net and right-of-use assets, net, mainly in assets of the cement sector in Panama for $11.1 million dollars and the aggregates business in Colombia for $1.8 millions of dollars. The aforementioned non-cash impairment charges, were caused by the negative effects on its operating results caused by the COVID-19 Pandemic resulting from the quarantine periods, social distancing and suspension and reduction of operations in accordance with the disposals issued by each government, as well as the high uncertainty regarding with the length and consequences in the different markets where CLH operates. These non-cash charges do not impact CLH’s liquidity, Operating EBITDA and cash taxes payable, nevertheless its total assets, net income and equity were affected in the quarter.
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.
Exhibit 3 RESULTS 3Q20 O c t o b e r 2 8 , 2 0 2 0Exhibit 3 RESULTS 3Q20 O c t o b e r 2 8 , 2 0 2 0
||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.||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.
||Key messages 3Q20 ✓ Relatively normal operations during the quarter in Colombia, Guatemala, Nicaragua and El Salvador, while restrictions impacted in Panama and to a lesser degree in Costa Rica ✓ Quarterly EBITDA up 19% on a like-to-like basis; EBITDA margin up 5.5pp reaching the highest level since 4Q17 ✓ Our cost savings program reached US$39 million YTD September, expect to reach a total of US$46 million during 2020 ✓ Our alternative fuel substitution rate reached 23% vs. 14% in 3Q19 ✓ Reduced net debt by US$48 million and our leverage ratio by 0.4x to 3.7x, from June to September ✓ Net loss of US$109 million during the quarter, due to a non-cash impairment of goodwill and idle assets ✓ The programs to support our customers, such as our safety protocols, CEMEX Go and “CEMEX Te Acompaña”, continue to pay off as our Net-Promoter-Score reached 66 points during the quarter, 9 points higher on a year-over-year basis 3||Key messages 3Q20 ✓ Relatively normal operations during the quarter in Colombia, Guatemala, Nicaragua and El Salvador, while restrictions impacted in Panama and to a lesser degree in Costa Rica ✓ Quarterly EBITDA up 19% on a like-to-like basis; EBITDA margin up 5.5pp reaching the highest level since 4Q17 ✓ Our cost savings program reached US$39 million YTD September, expect to reach a total of US$46 million during 2020 ✓ Our alternative fuel substitution rate reached 23% vs. 14% in 3Q19 ✓ Reduced net debt by US$48 million and our leverage ratio by 0.4x to 3.7x, from June to September ✓ Net loss of US$109 million during the quarter, due to a non-cash impairment of goodwill and idle assets ✓ The programs to support our customers, such as our safety protocols, CEMEX Go and “CEMEX Te Acompaña”, continue to pay off as our Net-Promoter-Score reached 66 points during the quarter, 9 points higher on a year-over-year basis 3
||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -18% LtL -9% LtL -24% -14% 2.6pp -8% LtL 19% LtL -15% 10% 5.5pp 9M19 9M20 3Q19 3Q20 9M19 9M20 9M19 9M20 3Q19 3Q20 3Q19 3Q20 4 752 571 245 209 146 126 46 51 19.4% 22.0% 18.7% 24.2%||Financial Results Summary Net Sales Operating EBITDA Margin EBITDA (US$M) (US$M) (%) -18% LtL -9% LtL -24% -14% 2.6pp -8% LtL 19% LtL -15% 10% 5.5pp 9M19 9M20 3Q19 3Q20 9M19 9M20 9M19 9M20 3Q19 3Q20 3Q19 3Q20 4 752 571 245 209 146 126 46 51 19.4% 22.0% 18.7% 24.2%
||Consolidated Volumes andPrices 9M20 vs. 3Q20 vs. 3Q20 vs. 9M19 3Q19 2Q20 Our cement volumes during 3Q20 declined by 7% YoY and improved by Volume -17% -7% 41% 41% QoQ; the improvement QoQ Domestic gray Price (USD) -4% -4% -5% was mainly driven by Colombia cement Price (LtL ) 3% 3% -4% 1 Volume -36% -23% 97% Quarterly cement prices up 3% YoY, Ready-mix while down 4% QoQ, on a like-to-like Price (USD) -12% -13% -4% concrete basis. Although QoQ prices improved -2% -5% -5% Price (LtL ) 1 in Colombia, Costa Rica and Nicaragua, the decline is due to a Volume -45% -35% 88% higher share of volumes from Aggregates Price (USD) -4% -8% 3% Colombia, which has the lowest cement prices in the portfolio Price (LtL ) 6% 2% 2% 1 5 (1) Like-to-like adjusted for foreign-exchange fluctuations||Consolidated Volumes andPrices 9M20 vs. 3Q20 vs. 3Q20 vs. 9M19 3Q19 2Q20 Our cement volumes during 3Q20 declined by 7% YoY and improved by Volume -17% -7% 41% 41% QoQ; the improvement QoQ Domestic gray Price (USD) -4% -4% -5% was mainly driven by Colombia cement Price (LtL ) 3% 3% -4% 1 Volume -36% -23% 97% Quarterly cement prices up 3% YoY, Ready-mix while down 4% QoQ, on a like-to-like Price (USD) -12% -13% -4% concrete basis. Although QoQ prices improved -2% -5% -5% Price (LtL ) 1 in Colombia, Costa Rica and Nicaragua, the decline is due to a Volume -45% -35% 88% higher share of volumes from Aggregates Price (USD) -4% -8% 3% Colombia, which has the lowest cement prices in the portfolio Price (LtL ) 6% 2% 2% 1 5 (1) Like-to-like adjusted for foreign-exchange fluctuations
||EBITDA Variation 9M20 -9% -14% 146 -70 7 25 30 -5 133 -8 126 EBITDA Vol Price Operating Dist SG&A EBITDA FX EBITDA 9M19 Costs 9M20 9M20 LtL 1 19.4% 22.0% +2.6pp EBITDA EBITDA Margin 9M19 Margin 9M20 6 (1) Like-to-like adjusted for foreign-exchange fluctuations||EBITDA Variation 9M20 -9% -14% 146 -70 7 25 30 -5 133 -8 126 EBITDA Vol Price Operating Dist SG&A EBITDA FX EBITDA 9M19 Costs 9M20 9M20 LtL 1 19.4% 22.0% +2.6pp EBITDA EBITDA Margin 9M19 Margin 9M20 6 (1) Like-to-like adjusted for foreign-exchange fluctuations
REGIONAL HIGHLIGHTS 3 Q 2 0 R e s u l t sREGIONAL HIGHLIGHTS 3 Q 2 0 R e s u l t s
Results Highlights ColombiaResults Highlights Colombia
||Colombia –Results Highlights Var % Var % Industry cement volumes reached 9M20 Var % 3Q20 Var % LtL LtL 1 1 nearly 2019 levels in 3Q20. Our 284 -25% -14% 115 -9% 1% Net Sales cement volumes up 66% QoQ and Financial down 6% YoY, reflecting a new Op. EBITDA 57 -4% 8% 28 42% 59% Summary US$ Million competitor and an impact from our as % net 19.9% 4.2pp 24.6% 8.9pp sales price increase 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 Our quarterly cement prices were the -20% -6% 66% Cement highest since 2016; up 2% QoQ and Volume 8% YoY. Implemented a price -30% -12% 118% Ready-mix increase in July. Industry prices are at Aggregates -33% -13% 128% historically low levels in U.S. dollars 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 EBITDA during the quarter improved 9% 8% 2% Cement 59% on a like-to-like basis, driven by Price (Local Currency) Ready-mix 3% 2% -1% increased prices, our cost management efforts and lower 0% -5% -4% Aggregates maintenance costs 9 (1) Like-to-like adjusted for foreign-exchange fluctuations||Colombia –Results Highlights Var % Var % Industry cement volumes reached 9M20 Var % 3Q20 Var % LtL LtL 1 1 nearly 2019 levels in 3Q20. Our 284 -25% -14% 115 -9% 1% Net Sales cement volumes up 66% QoQ and Financial down 6% YoY, reflecting a new Op. EBITDA 57 -4% 8% 28 42% 59% Summary US$ Million competitor and an impact from our as % net 19.9% 4.2pp 24.6% 8.9pp sales price increase 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 Our quarterly cement prices were the -20% -6% 66% Cement highest since 2016; up 2% QoQ and Volume 8% YoY. Implemented a price -30% -12% 118% Ready-mix increase in July. Industry prices are at Aggregates -33% -13% 128% historically low levels in U.S. dollars 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 EBITDA during the quarter improved 9% 8% 2% Cement 59% on a like-to-like basis, driven by Price (Local Currency) Ready-mix 3% 2% -1% increased prices, our cost management efforts and lower 0% -5% -4% Aggregates maintenance costs 9 (1) Like-to-like adjusted for foreign-exchange fluctuations
|| Colombia –Infrastructure Sector 4G projects continued at good pace. YTD September, we have delivered— in cement and/or ready-mix—the equivalent of more than 420,000 3 ready-mix m In Bogotá, already awarded projects should start soon, such as 3 hospitals, extensions of the “Transmilenio” BRT system and a water-treatment plant. The Metro and “Regiotram” should start cement consumption in 4Q21 For 2021, the investment budget for transportation is 36% higher YoY. Also, cement consumption from 4G projects should peak and some projects of the 5G program could start 10|| Colombia –Infrastructure Sector 4G projects continued at good pace. YTD September, we have delivered— in cement and/or ready-mix—the equivalent of more than 420,000 3 ready-mix m In Bogotá, already awarded projects should start soon, such as 3 hospitals, extensions of the “Transmilenio” BRT system and a water-treatment plant. The Metro and “Regiotram” should start cement consumption in 4Q21 For 2021, the investment budget for transportation is 36% higher YoY. Also, cement consumption from 4G projects should peak and some projects of the 5G program could start 10
|| Colombia –Housing and Industrial & Commercial Sectors Cement demand from the self- construction sector recovered in June and this trend continued during 3Q20 Housing sales recovered in 3Q20 increasing 2.8% YoY, according to CAMACOL, however, housing starts were down in the mid-teens In the industrial-and-commercial sector, trends such as telework, restricted travel and online shopping could reduce cement demand. However, it is encouraging that the industrial and commercial confidence indexes reached near pre-pandemic levels in September 11|| Colombia –Housing and Industrial & Commercial Sectors Cement demand from the self- construction sector recovered in June and this trend continued during 3Q20 Housing sales recovered in 3Q20 increasing 2.8% YoY, according to CAMACOL, however, housing starts were down in the mid-teens In the industrial-and-commercial sector, trends such as telework, restricted travel and online shopping could reduce cement demand. However, it is encouraging that the industrial and commercial confidence indexes reached near pre-pandemic levels in September 11
Results Highlights PanamaResults Highlights Panama
||Panama –Results Highlights Var % Var % COVID-19 restrictions on formal 9M20 Var % 3Q20 Var % LtL LtL 1 1 construction activity eased in mid- 58 -60% -60% 16 -64% -64% Net Sales September; our cement volumes Financial Op. EBITDA were impacted by these measures 8 -78% -78% 1 -89% -89% Summary US$ Million and a new competitor as % net 14.6% (12.2pp) 9.0% (21.7pp) sales Despite the government permitting 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 certain infrastructure projects to restart -60% -63% 187% Cement in June, we observed low levels of Volume -74% -87% 1702% Ready-mix activity in this sector during 3Q20 Aggregates -69% -82% 373% Our EBITDA was positive US$1 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 million during the quarter supported -6% -5% -1% Cement by strict cost-containment measures, Price despite the extraordinary low level of Ready-mix -6% -1% -15% sales and a US$1.3 million kiln -8% -19% -6% Aggregates maintenance expense 13 (1) Like-to-like adjusted for foreign-exchange fluctuations||Panama –Results Highlights Var % Var % COVID-19 restrictions on formal 9M20 Var % 3Q20 Var % LtL LtL 1 1 construction activity eased in mid- 58 -60% -60% 16 -64% -64% Net Sales September; our cement volumes Financial Op. EBITDA were impacted by these measures 8 -78% -78% 1 -89% -89% Summary US$ Million and a new competitor as % net 14.6% (12.2pp) 9.0% (21.7pp) sales Despite the government permitting 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 certain infrastructure projects to restart -60% -63% 187% Cement in June, we observed low levels of Volume -74% -87% 1702% Ready-mix activity in this sector during 3Q20 Aggregates -69% -82% 373% Our EBITDA was positive US$1 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 million during the quarter supported -6% -5% -1% Cement by strict cost-containment measures, Price despite the extraordinary low level of Ready-mix -6% -1% -15% sales and a US$1.3 million kiln -8% -19% -6% Aggregates maintenance expense 13 (1) Like-to-like adjusted for foreign-exchange fluctuations
|| Panama – Highlights Going forward, the lifting of COVID-19 restrictions should support cement consumption compared with the low levels of 2Q20 and 3Q20; however, visibility remains low Among the projects that should provide volume support in coming months are: City Gardens residential project, the “Panamamericana” highway extension, the Metro line 2 extension, the “Gamboa” water treatment plant and the “Via Transistmica” highway 14|| Panama – Highlights Going forward, the lifting of COVID-19 restrictions should support cement consumption compared with the low levels of 2Q20 and 3Q20; however, visibility remains low Among the projects that should provide volume support in coming months are: City Gardens residential project, the “Panamamericana” highway extension, the Metro line 2 extension, the “Gamboa” water treatment plant and the “Via Transistmica” highway 14
Results Highlights Costa RicaResults Highlights Costa Rica
||Costa Rica –Results Highlights Var % Var % Our cement volumes declined 21% 9M20 Var % 3Q20 Var % LtL LtL 1 1 during the quarter; COVID-19 67 -17% -18% 21 -15% -12% Net Sales restrictions in July for 9 days impacted Financial industry cement volumes mainly in Op. EBITDA 22 -9% -10% 7 49% 54% Summary US$ Million the metro area as % net 32.4% 2.8pp 34.3% 14.7pp sales Our quarterly prices in local-currency 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 terms improved 2% QoQ; we -13% -21% -7% Cement implemented a ~4% price increase for Volume -21% -17% -8% Ready-mix bagged cement effective on June Aggregates -70% -79% -57% EBITDA margin during the quarter up 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 14.7pp YoY; significant improvement -6% -1% 2% Cement driven by lower fixed and variable Price costs, despite lower sales. No kiln (Local Currency) Ready-mix -9% -5% -1% maintenances during 3Q20, while 102% 179% 72% Aggregates US$2.9M spent during 3Q19 16 (1) Like-to-like adjusted for foreign-exchange fluctuations||Costa Rica –Results Highlights Var % Var % Our cement volumes declined 21% 9M20 Var % 3Q20 Var % LtL LtL 1 1 during the quarter; COVID-19 67 -17% -18% 21 -15% -12% Net Sales restrictions in July for 9 days impacted Financial industry cement volumes mainly in Op. EBITDA 22 -9% -10% 7 49% 54% Summary US$ Million the metro area as % net 32.4% 2.8pp 34.3% 14.7pp sales Our quarterly prices in local-currency 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 terms improved 2% QoQ; we -13% -21% -7% Cement implemented a ~4% price increase for Volume -21% -17% -8% Ready-mix bagged cement effective on June Aggregates -70% -79% -57% EBITDA margin during the quarter up 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 14.7pp YoY; significant improvement -6% -1% 2% Cement driven by lower fixed and variable Price costs, despite lower sales. No kiln (Local Currency) Ready-mix -9% -5% -1% maintenances during 3Q20, while 102% 179% 72% Aggregates US$2.9M spent during 3Q19 16 (1) Like-to-like adjusted for foreign-exchange fluctuations
|| Costa Rica –Highlights Visibility for cement demand remains limited because of the COVID-19 impact in the economy, as well as the social unrest triggered by potential government policies directed to weather the economic crisis In the infrastructure sector, ongoing projects as well as upcoming projects such as the “Taras-La Lima” overpass and the Limonal-Barranca highway, should support industry cement volumes in coming months 17|| Costa Rica –Highlights Visibility for cement demand remains limited because of the COVID-19 impact in the economy, as well as the social unrest triggered by potential government policies directed to weather the economic crisis In the infrastructure sector, ongoing projects as well as upcoming projects such as the “Taras-La Lima” overpass and the Limonal-Barranca highway, should support industry cement volumes in coming months 17
Results Highlights Rest of CLHResults Highlights Rest of CLH
||Rest of CLH –Results Highlights Var % Var % Cement volumes improved by 25% 9M20 Var % 3Q20 Var % LtL LtL 1 1 during the quarter reaching the 174 6% 7% 60 18% 19% Net Sales highest level since 3Q16; volumes up Financial in all countries of Rest of CLH Op. EBITDA 58 25% 27% 21 50% 52% Summary US$ Million as % net 33.5% 5.2pp 34.5% 7.4pp sales Our quarterly cement prices on a sequential basis declined by 1%, 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 mainly due to an unfavorable product 11% 25% 8% Cement and customer mix in Guatemala Volume -17% -30% -15% Ready-mix Aggregates -38% -54% -3% EBITDA margin up 7.4pp during quarter driven by: lower clinker costs, 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 increased volumes and lower corporate expenses in Guatemala; -2% -2% -1% Cement Price and, increased volumes and lower (LtL ) Ready-mix 2% 1% 1% 1 SG&A in Nicaragua, despite a 5% -12% -6% Aggregates US$1.4 million maintenance in 3Q20 19 (1) Like-to-like adjusted for foreign-exchange fluctuations||Rest of CLH –Results Highlights Var % Var % Cement volumes improved by 25% 9M20 Var % 3Q20 Var % LtL LtL 1 1 during the quarter reaching the 174 6% 7% 60 18% 19% Net Sales highest level since 3Q16; volumes up Financial in all countries of Rest of CLH Op. EBITDA 58 25% 27% 21 50% 52% Summary US$ Million as % net 33.5% 5.2pp 34.5% 7.4pp sales Our quarterly cement prices on a sequential basis declined by 1%, 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 mainly due to an unfavorable product 11% 25% 8% Cement and customer mix in Guatemala Volume -17% -30% -15% Ready-mix Aggregates -38% -54% -3% EBITDA margin up 7.4pp during quarter driven by: lower clinker costs, 9M20 vs. 9M19 3Q20 vs. 3Q19 3Q20 vs. 2Q20 increased volumes and lower corporate expenses in Guatemala; -2% -2% -1% Cement Price and, increased volumes and lower (LtL ) Ready-mix 2% 1% 1% 1 SG&A in Nicaragua, despite a 5% -12% -6% Aggregates US$1.4 million maintenance in 3Q20 19 (1) Like-to-like adjusted for foreign-exchange fluctuations
|| Guatemala – Highlights Our cement volumes improved during the quarter driven by the self- construction sector—a segment in which we have a higher relative presence—and by tighter controls in the northern border which restrained flows of illegal cement imports Remittances increased 10% from June to August YoY. We are cautiously optimistic in Guatemala’s economy and cement consumption 20|| Guatemala – Highlights Our cement volumes improved during the quarter driven by the self- construction sector—a segment in which we have a higher relative presence—and by tighter controls in the northern border which restrained flows of illegal cement imports Remittances increased 10% from June to August YoY. We are cautiously optimistic in Guatemala’s economy and cement consumption 20
|| Nicaragua –Highlights Our cement volumes increased during the quarter, driven by the self- construction sector, as well as by government-sponsored projects such as a hospital, highways, and a social- housing complex We are cautiously optimistic on Nicaragua’s cement consumption for coming months. However, social and political risk might increase as we get near the presidential elections in November 2021 21|| Nicaragua –Highlights Our cement volumes increased during the quarter, driven by the self- construction sector, as well as by government-sponsored projects such as a hospital, highways, and a social- housing complex We are cautiously optimistic on Nicaragua’s cement consumption for coming months. However, social and political risk might increase as we get near the presidential elections in November 2021 21
OTHER INFORMATION 3 Q 2 0 R e s u l t sOTHER INFORMATION 3 Q 2 0 R e s u l t s
||Free Cash Flow generation US$ Million Free cash flow reached US$39 million 9M20 9M19 % var 3Q20 3Q19 % var during the quarter vs. US$12 million Op. EBITDA 126 146 -14% 51 46 10% Operating EBITDA during 3Q19; higher EBITDA, lower CAPEX and taxes, as well as a - Net financial expense 39 40 13 13 positive effect in working capital - Maintenance Capex 10 30 6 13 - Change in working cap 6 -9 -13 -4 CAPEX reduced to a minimum YTD; - Taxes paid -2 35 2 12 Working capital days during the quarter were negative 14 days - Other cash items (net) 5 -1 3 2 Free Cash Flow 68 52 31% 40 12 238% After Maintenance Capex - Strategic Capex 2 1 1 0 Received tax refunds in Colombia for ~US$3.7 million, benefiting the taxes 66 50 32% 39 12 228% Free Cash Flow paid line during the quarter 23||Free Cash Flow generation US$ Million Free cash flow reached US$39 million 9M20 9M19 % var 3Q20 3Q19 % var during the quarter vs. US$12 million Op. EBITDA 126 146 -14% 51 46 10% Operating EBITDA during 3Q19; higher EBITDA, lower CAPEX and taxes, as well as a - Net financial expense 39 40 13 13 positive effect in working capital - Maintenance Capex 10 30 6 13 - Change in working cap 6 -9 -13 -4 CAPEX reduced to a minimum YTD; - Taxes paid -2 35 2 12 Working capital days during the quarter were negative 14 days - Other cash items (net) 5 -1 3 2 Free Cash Flow 68 52 31% 40 12 238% After Maintenance Capex - Strategic Capex 2 1 1 0 Received tax refunds in Colombia for ~US$3.7 million, benefiting the taxes 66 50 32% 39 12 228% Free Cash Flow paid line during the quarter 23
||Income Statement US$ Million 9M20 9M19 % var 3Q20 3Q19 % var Net sales 571 752 -24% 209 245 -15% Net loss of US$109 million during the - Cost of sales 343 462 122 149 quarter mainly due to a negative Gross profit 229 290 -21% 87 96 -9% impact in Other expenses net, despite 160 203 56 68 higher Operating earnings before - Operating expenses other expenses Operating earnings (loss) before 69 87 -21% 32 27 15% other expenses, net - Other expenses, net 130 12 126 4 Operating earnings (loss) -61 75 n/a -94 23 n/a - Financial expenses 39 40 12 13 The Other expenses, net, line reflects 18 23 -3 17 - Other income (expenses), net the impairment of goodwill and idle Net income (loss) before income -118 13 -103 -6 taxes assets for a total of US$121 million - Income tax 11 5 7 -3 Consolidated net income (loss) -130 8 -110 -4 - Non-controlling interest net -1 0 -1 0 income -129 8 -109 -4 Controlling Interest Net Income (loss) n/a n/a 24||Income Statement US$ Million 9M20 9M19 % var 3Q20 3Q19 % var Net sales 571 752 -24% 209 245 -15% Net loss of US$109 million during the - Cost of sales 343 462 122 149 quarter mainly due to a negative Gross profit 229 290 -21% 87 96 -9% impact in Other expenses net, despite 160 203 56 68 higher Operating earnings before - Operating expenses other expenses Operating earnings (loss) before 69 87 -21% 32 27 15% other expenses, net - Other expenses, net 130 12 126 4 Operating earnings (loss) -61 75 n/a -94 23 n/a - Financial expenses 39 40 12 13 The Other expenses, net, line reflects 18 23 -3 17 - Other income (expenses), net the impairment of goodwill and idle Net income (loss) before income -118 13 -103 -6 taxes assets for a total of US$121 million - Income tax 11 5 7 -3 Consolidated net income (loss) -130 8 -110 -4 - Non-controlling interest net -1 0 -1 0 income -129 8 -109 -4 Controlling Interest Net Income (loss) n/a n/a 24
||Consolidated debt as of September 30, 2020 US$ Million 447 US$688 M total debt, US$30 M cash US$659 M net debt 3.7x Net Debt / LTM EBITDA 114 93 12 Reduced net debt by US$48 million 2020 2021 2022 2023 2024 and leverage ratio by 0.4x, from June Borrower Lender Currency Cost US$ M Maturity to September Local Banks COP CEMEX Colombia S.A. 8.12% 12 2020 1 4 Lomez International B.V USD Cementos Bayano S.A. 6ML + 360 bps 93 Dec -2022 3 1 Lomez International B.V USD CCL Fixed 5.65% 235 Feb-2023 3 2 Lomez International B.V USD CEMEX Latam Holdings S.A. Fixed 5.65% 212 Feb-2023 3 During the quarter we paid US$30 M CEMEX España S.A. USD CEMEX Colombia S.A. 6ML + 277 bps 114 Dec-2024 3 1 of the US$40 M of short-term bank Other debt (Leases) 22 financings obtained as a USD Average Cost / Total 4.97% 688 5 precautionary measure during April and May; paid the remaining US$10 (1) Subsidiary company of CEMEX Latam Holdings S.A. M in October (2) Refers to “Corporación Cementera Latinoamericana”. Subsidiary company of CEMEX Latam Holdings S.A. (3) Subsidiary company of CEMEX, S.A.B. de C.V. (4) Weighted Average Cost 25 (5) Weighted Average Cost of U.S. dollar denominated debt ||Consolidated debt as of September 30, 2020 US$ Million 447 US$688 M total debt, US$30 M cash US$659 M net debt 3.7x Net Debt / LTM EBITDA 114 93 12 Reduced net debt by US$48 million 2020 2021 2022 2023 2024 and leverage ratio by 0.4x, from June Borrower Lender Currency Cost US$ M Maturity to September Local Banks COP CEMEX Colombia S.A. 8.12% 12 2020 1 4 Lomez International B.V USD Cementos Bayano S.A. 6ML + 360 bps 93 Dec -2022 3 1 Lomez International B.V USD CCL Fixed 5.65% 235 Feb-2023 3 2 Lomez International B.V USD CEMEX Latam Holdings S.A. Fixed 5.65% 212 Feb-2023 3 During the quarter we paid US$30 M CEMEX España S.A. USD CEMEX Colombia S.A. 6ML + 277 bps 114 Dec-2024 3 1 of the US$40 M of short-term bank Other debt (Leases) 22 financings obtained as a USD Average Cost / Total 4.97% 688 5 precautionary measure during April and May; paid the remaining US$10 (1) Subsidiary company of CEMEX Latam Holdings S.A. M in October (2) Refers to “Corporación Cementera Latinoamericana”. Subsidiary company of CEMEX Latam Holdings S.A. (3) Subsidiary company of CEMEX, S.A.B. de C.V. (4) Weighted Average Cost 25 (5) Weighted Average Cost of U.S. dollar denominated debt
|| 2020 Guidance Total CAPEX US$25 M Maintenance US$20 M Strategic US$5 M Cash Taxes US$30 M 26|| 2020 Guidance Total CAPEX US$25 M Maintenance US$20 M Strategic US$5 M Cash Taxes US$30 M 26
||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 27 products.||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 27 products.
RESULTS 3Q20 O c t o b e r 2 8 , 2 0 2 0RESULTS 3Q20 O c t o b e r 2 8 , 2 0 2 0
||Contact Information Investor Relations Stock Information Pablo Gutiérrez, CFA Colombian Stock Exchange Phone: +57(1) 603-9051 Ticker: CLH E-mail: pabloantonio.gutierrez@cemex.com Juan Camilo Álvarez Phone: +57(1) 603-9909 E-mail: juancamilo.alvarez@cemex.com 29||Contact Information Investor Relations Stock Information Pablo Gutiérrez, CFA Colombian Stock Exchange Phone: +57(1) 603-9051 Ticker: CLH E-mail: pabloantonio.gutierrez@cemex.com Juan Camilo Álvarez Phone: +57(1) 603-9909 E-mail: juancamilo.alvarez@cemex.com 29