EX-99.2 3 dex992.htm FOURTH QUARTER AND FULL YEAR 2010 RESULTS FOR CEMEX, S.A.B. DE C.V.

Exhibit 2

2010

FOURTH QUARTER RESULTS

Stock Listing Information

NYSE (ADS) Ticker: CX

MEXICAN STOCK EXCHANGE Ticker: CEMEXCPO

Ratio of CEMEXCPO TO CX = 10:1

Investor Relations

In the United States

1 877 7CX NYSE

In Mexico

52 (81) 8888 4292 E-Mail ir@cemex.com

OPERATING AND FINANCIAL HIGHLIGHTS

January—December Fourth quarter

l-t-l l-t-l

2010 2009% Var. 2010 2009% Var.

% Var.*% Var.*

Consolidated cement volume 65,646 65,052 1% 16,103 15,438 4%

(thousand metric tons)

Consolidated ready-mix volume 51,001 53,920(5%) 13,005 12,750 2%

(thousand cubic meters)

Consolidated aggregates volume 158,458 167,950(6%) 38,693 39,922(3%)

(thousand metric tons)

Net sales 14,069 14,544(3%)(4%) 3,492 3,444 1% 2%

Gross profit 3,943 4,274(8%)(10%) 893 911(2%)(2%)

Gross profit margin 28.0% 29.4%(1.4pp) 25.6% 26.5%(0.9pp)

Operating income 856 1,165(27%)(32%) 125 98 28% 20%

Operating Income margin 6.1% 8.0%(1.9pp) 3.6% 2.9% 0.7pp

Net income (loss) from

continuing operations(1,301) 436 N/A(581) 265 N/A

Operating EBITDA 2,314 2,657(13%)(16%) 482 474 2% 1%

Operating EBITDA margin 16.4% 18.3%(1.9pp) 13.8% 13.8% 0.0pp

Free cash flow after

maintenance capital 512 1,215(58%) 248 401(38%)

expenditures

Free cash flow 387 805(52%) 199 334(40%)

Net debt plus perpetual notes 17,053 18,098(6%) 17,053 18,098(6%)

Total debt 16,409 16,130 2% 16,409 16,130 2%

Total debt plus perpetual notes 17,729 19,175(8%) 17,729 19,175(8%)

Earnings (loss) per ADS(1.30) 0.12 N/A(0.57)(0.22)(163%)

Fully diluted earnings per ADS N/A 0.12 N/A N/A N/A N/A

Average ADSs outstanding 999.2 893.2 12% 1,000.3 998.0 0%

Employees 46,533 47,624(2%) 46,533 47,624(2%)

This information does not include Australian operations for 2009. Please see page 17 on this report for additional information.

In millions of U.S. dollars, except ratios and per-ADS amounts. Average ADSs outstanding are presented in millions. Please refer to page 8 for end-of quarter CPO-equivalent units outstanding.

* Percentage variations adjusted for investments/divestments and currency fluctuations.

Consolidated net sales in the fourth quarter of 2010 reached US$3,492 million, representing an increase of 1% compared with that of the fourth quarter of 2009, or an increase of 2% on a like-to-like basis for the ongoing operations. The increase in sales was due to a higher contribution mainly from our Mexican operations. The infrastructure and residential sectors were the main drivers of demand in most of our markets. Cost of sales as a percentage of net sales increased 0.9 percentage points to 74.4% from 73.5% during the fourth quarter of 2009. The increase in expenses as a percentage of net sales is mainly the result of higher fuel prices. Selling, general, and administrative (SG&A) expenses as a percentage of net sales decreased 1.6 percentage points during the quarter compared with the same period last year, from 23.6% to 22.0%. SG&A expenses decreased as a result of savings from our cost-reduction initiatives, partially offset by higher transportation costs. Operating EBITDA increased 2% during the fourth quarter of 2010 compared with the same period last year, to US$482 million. The increase was due mainly to higher contributions from our Mexican and Egyptian operations as well as our cost-reduction initiatives. On a like-to-like basis for the ongoing operations, operating EBITDA increased 1%. Operating EBITDA margin remained flat at 13.8% compared to the fourth quarter of 2009. Other expenses, net, for the quarter were US$220 million, which included impairment of fixed-assets and goodwill, a loss on the sale of assets, and severance payments. Exchange gain (loss), net, for the quarter was a gain of US$7 million, resulting mainly from the appreciation of the Mexican peso against the U.S. dollar. Gain (loss) on financial instruments for the quarter was a gain of US$44 million, resulting mainly from positive valuations of equity derivatives related to CEMEX shares. Net income (loss) from continuing operations was a loss of US$581 million in the fourth quarter of 2010 versus net income of US$265 million in the fourth quarter of 2009 due to a lower exchange gain during the quarter and an increase in income tax expense in 2010 versus a positive contribution during the fourth quarter of 2009, which reflected the effect of tax losses in many of our operating jurisdictions due to reduced operating volumes combined with local currency exchange losses. Total debt plus perpetual notes decreased US$374 million, reflecting prepayments under the Financing Agreement, a positive conversion effect during the quarter, and payment of other outstanding debt.

2010 Fourth Quarter Results Page 2

OPERATING RESULTS

MEXICO

January – December Fourth quarter

l-t-l l-t-l

2010 2009% Var. 2010 2009% Var.

% Var.*% Var.*

Net sales 3,435 3,113 10% 3% 902 723 25% 18%

Operating EBITDA 1,153 1,160(1%)(7%) 287 251 14% 8%

Operating EBITDA margin 33.6 % 37.3% 31.8% 34.8%

In millions of U.S dollars, except percentages.

Domestic gray cement Ready-mix Aggregates

Year-over-year January – January—January -

Fourth Quarter Fourth Quarter Fourth Quarter

percentage variation December December December

Volume(4%)(0%)(4%) 24%(1%) 30%

Price (USD) 8% 9% 11% 12% 19% 16%

Price (local currency) 0% 4% 3% 6% 11% 10%

Domestic gray cement volumes for our operations in Mexico were flat during the fourth quarter versus the same period last year, while ready-mix volumes increased 24% over the same period. For the full year, domestic gray cement and ready-mix volumes decreased 4% versus the comparable period a year ago.

During the quarter, the infrastructure sector was the main driver of demand for building materials, aided by federal resources to rebuild public infrastructure due to natural disasters. Formal housing investment, mainly low and middle-income housing, grew led by credit expansion from Infonavit and Fovissste, as well as from commercial banks, whereas informal housing saw a slight contraction. Activity from the industrial-and-commercial sector showed a moderate increase.

UNITED STATES

January – December Fourth quarter

l-t-l l-t-l

2010 2009% Var. 2010 2009% Var.

% Var.*% Var.*

Net sales 2,491 2,825(12%)(12%) 572 602(5%)(5%)

Operating EBITDA(45) 143 N/A N/A(36)(5)(700%)(700%)

Operating EBITDA margin(1.8%) 5.1%(6.3%)(0.7%)

In millions of U.S dollars, except percentages.

Domestic gray cement Ready-mix Aggregates

Year-over-year January – January—January -

Fourth Quarter Fourth Quarter Fourth Quarter

percentage variation December December December

Volume(0%) 3%(7%)(10%)(5%)(7%)

Price (USD)(8%)(8%)(11%)(4%)(4%) 1%

Price (local currency)(8%)(8%)(11%)(4%)(4%) 1%

In CEMEX’s U.S. operations, domestic gray cement volumes increased 3%, while ready-mix and aggregates volumes decreased 10% and 7%, respectively, during the fourth quarter versus the same period last year. For the full year, domestic gray cement volumes remained flat, while ready-mix and aggregates volumes decreased 7% and 5%, respectively, versus the comparable period of the previous year. On a like-to-like basis for the ongoing operations, aggregates volumes decreased 1% during the quarter and 1% for the full year, versus the comparable periods last year.

Construction activity continued to stabilize in the fourth quarter. Midterm elections, the tax agreement between Congress and the Executive branch, and the second round of quantitative easing have improved the overall business environment and increased consumer confidence. Volume performance during the quarter was muted by adverse weather conditions, particularly in California, Arizona and Nevada. Volume growth in cement during the quarter was driven by the infrastructure sector. The residential sector remained relatively flat while the decline in industrial and commercial sector moderated.

2010 Fourth Quarter Results Page 3

OPERATING RESULTS

EUROPE

January – December Fourth quarter

l-t-l l-t-l

2010 2009% Var. 2010 2009% Var.

% Var.*% Var.*

Net sales 4,793 5,360(11%)(7%) 1,130 1,322(15%)(8%)

Operating EBITDA 434 596(27%)(24%) 81 109(26%)(20%)

Operating EBITDA margin 9.1% 11.1% 7.2% 8.2%

In millions of U.S dollars, except percentages.

Domestic gray cement Ready-mix Aggregates

Year-over-year January – January – January –

Fourth Quarter Fourth Quarter Fourth Quarter

percentage variation December December December

Volume(8%)(4%)(7%)(7%)(8%)(11%)

Price (USD)(8%)(11%)(6%)(7%)(4%)(6%)

Price (local currency)(5%)(4%)(1%) 0% 1% 1%

Domestic gray cement volumes for our Spanish operations decreased 12% during the fourth quarter of 2010 compared with the same period last year. Ready-mix volumes decreased 9% during the quarter versus the comparable period a year ago. For the full year, domestic gray cement volumes decreased 22%, while ready-mix volumes declined 20%. Volumes for the quarter were affected by continuing weakness across all demand sectors and regions, especially from Levante and Centro. High inventory levels and limited financing in the residential sector affected performance for the quarter. Construction spending in the infrastructure sector remained weak given the limited economic resources as well as cuts in the national budget.

Domestic gray cement and aggregates volumes for our United Kingdom operations decreased 3% and 6%, respectively, and increased 1% for ready-mix during the quarter versus the comparable period in 2009. For the full year, domestic gray cement volumes increased 1%, while ready-mix and aggregates volumes decreased 3% and 2%, respectively, versus 2009. Results for the quarter were driven by the infrastructure and housing sectors. Slower economic growth and fragile consumer confidence affected the industrial-and-commercial sector. Harsh weather conditions throughout the UK had a negative effect on volumes during the quarter.

In France, our domestic ready-mix and aggregates volumes increased 6% and decreased 2%, respectively, during the quarter versus the comparable period of 2009. For the full year, ready-mix and aggregates volumes increased 1% and decreased 4%, respectively, versus 2009. During the quarter, the residential sector was the main driver of demand, supported by continuing tax incentives. Construction spending from the infrastructure sector remains low given the limited financial resources. Activity from the industrial-and-commercial sector continues to be weak. In addition, adverse weather conditions during December affected volumes for the quarter.

In CEMEX’s operations in Germany, domestic gray cement volumes decreased 5% during the fourth quarter and 2% for the full year versus the comparable periods of last year. Demand for building materials for the quarter was affected by poor winter weather conditions during December. Activity in the residential sector continues to recover as low mortgage rates, shrinking unemployment, and higher wages and salaries support this trend. With the depletion of the government’s fiscal stimulus funding, infrastructure spending has stabilized. Building permits from the industrial-and-commercial sector have also stabilized.

Domestic gray cement volumes for our operations in Poland increased 14% during the quarter and decreased 1% for the full year versus the comparable period in 2009. The infrastructure sector continues to drive activity for the quarter supported by the development of new infrastructure projects. Activity from the residential sector continues to be stable, due to an increase in mortgage financing during the year. In addition, severe weather conditions during the month of December tempered the positive trend in demand for construction materials for the quarter.

Our domestic gray cement volumes as a whole in the region decreased 4% during the quarter and 8% for the full year versus the comparable periods of last year.

2010 Fourth Quarter Results Page 4

OPERATING RESULTS

SOUTH/CENTRAL AMERICA AND THE CARIBBEAN

January – December Fourth quarter

l-t-l l-t-l

2010 2009% Var. 2010 2009% Var.

% Var.*% Var.*

Net sales 1,444 1,443 0%(5%) 366 341 7% 5%

Operating EBITDA 460 511(10%)(15%) 97 115(16%)(18%)

Operating EBITDA margin 31.9% 35.4% 26.5% 33.8%

In millions of U.S dollars, except percentages.

Domestic gray cement Ready-mix Aggregates

Year-over-year January – January – January –

Fourth Quarter Fourth Quarter Fourth Quarter

percentage variation December December December

Volume(3%)(3%)(2%) 8% 8% 4%

Price (USD) 4% 4%(1%) 2%(3%)(5%)

Price (local currency)(1%) 1%(6%)(1%)(9%)(6%)

Domestic gray cement volumes for CEMEX’s operations in Colombia remained flat during the quarter and increased 5% for the full year versus the comparable periods of last year. During the quarter, heavy rains affected overall construction activity. The residential sector was the main driver of demand, supported by low-and-middle income housing development. The increase in housing starts and permits increased due to the interest-rate subsidy program. Performance from the industrial-and-commercial sector remains stable.

Our domestic gray cement volumes in the region as a whole decreased 3% during the fourth quarter of 2010 and 3% for the full year versus the comparable periods last year.

AFRICA AND THE MIDDLE EAST

January – December Fourth quarter

l-t-l l-t-l

2010 2009% Var. 2010 2009% Var.

% Var.*% Var.*

Net sales 1,035 1,049(1%)(2%) 264 261 1% 3%

Operating EBITDA 369 333 11% 12% 95 68 40% 47%

Operating EBITDA margin 35.7% 31.7% 35.8% 25.9%

In millions of U.S dollars, except percentages.

Domestic gray cement Ready-mix Aggregates

Year-over-year January – January – January –

Fourth Quarter Fourth Quarter Fourth Quarter

percentage variation December December December

Volume(1%)(4%)(4%) 7% 7% 8%

Price (USD) 2%(3%)(7%)(1%) 8% 8%

Price (local currency) 3% 3%(10%)(3%) 3% 4%

In Egypt, our domestic gray cement volumes remained flat during the quarter and increased 2% for the full year versus the comparable periods of last year. Construction activity during the quarter continued to be driven by the residential sector, mainly from low-and middle-income housing. Performance from the industrial-and-commercial sector remained stable, while construction spending from the infrastructure sector continued to be affected by low government spending.

Our domestic gray cement volumes in the region as a whole decreased 4% during the quarter and 1% for the full year versus the same periods last year.

2010 Fourth Quarter Results Page 5

OPERATING RESULTS

ASIA

January – December Fourth quarter

l-t-l l-t-l

2010 2009% Var. 2010 2009% Var.

% Var.*% Var.*

Net sales 515 474 9% 3% 125 122 2%(4%)

Operating EBITDA 123 115 7% 2% 20 21(9%)(11%)

Operating EBITDA margin 23.8% 24.2% 15.7% 17.5%

In millions of U.S dollars, except percentages.

Domestic gray cement Ready-mix Aggregates

Year-over-year January – January – January –

Fourth Quarter Fourth Quarter Fourth Quarter

percentage variation December December December

Volume 9%(8%)(2%) 13% 3% 9%

Price (USD) 7% 7% 7% 9% 18% 14%

Price (local currency) 1%(0%) 1% 3% 7% 4%

In CEMEX’s operations in the Philippines, domestic gray cement volumes decreased 11% during the quarter and increased 8% for the full year versus the comparable periods of last year. Sales volume for the quarter was affected by a slowdown in infrastructure projects despite the government’s promotion of public-private partnerships. Activity from the residential sector continues to be positive, supported by remittances from overseas workers.

Our domestic gray cement volumes in the region as a whole decreased 8% during the quarter and increased 9% for the full year versus the comparable periods in 2009.

2010 Fourth Quarter Results Page 6

OPERATING EBITDA, FREE CASH FLOW AND DEBT-RELATED INFORMATION

OPERATING EBITDA AND FREE CASH FLOW (1)

January—December Fourth quarter

2010 2009% Var. 2010 2009% Var.

Operating income 856 1,165(27%) 125 98 28%

+ Depreciation and operating amortization 1,458 1,492 357 375

Operating EBITDA 2,314 2,657(13%) 482 474 2%

- Net financial expense 1,118 914 284 263

—Maintenance capital expenditures 424 241 248 98

—Change in working capital 52 219(420)(497)

—Taxes paid 335 291 146 147

—Other cash items (net)(127)(21)(25) 62

—Free cash flow from discontinued operations 0(202) 0 0

Free cash flow after maintenance capital expenditures 512 1,215(58%) 248 401(38%)

- Expansion capital expenditures 125 402 49 67

—Expansion capital expenditures of discontinued operations 0 8 0 0

Free cash flow 387 805(52%) 199 334(40%)

In millions of U.S dollars.

During the quarter, free cash flow of US$199 million plus the reduction in the cash balance was used to prepay

debt and for other uses. In addition, we had a positive conversion effect in the amount of US$34 million during

the quarter.

INFORMATION ON DEBT AND PERPETUAL NOTES

Fourth quarter Third quarter Fourth quarter

2010 2009

2010 2009% Var. 2010 Currency denomination

Total debt 16,409 16,130 2% 16,775 US dollar 67% 60%

Short-term 3% 4% 4% Euro 24% 27%

Long-term 97% 96% 96% Mexican peso 9% 12%

Perpetual notes 1,320 3,045(57%) 1,328 Other 0% 1%

Cash and cash equivalents 676 1,077(37%) 838

Net debt plus perpetual notes 17,053 18,098(6%) 17,265

Interest rate

Consolidated funded 7.43 N/A 7.61 Fixed 38% 25%

debt/EBITDA*

Interest coverage* 1.95 N/A 1.96 Variable 62% 75%

In millions of U.S dollars, except percentages.

* Starting in the second quarter of 2010, calculated in accordance with our contractual obligations under our Financing Agreement.

During the fourth quarter of 2010, CEMEX issued various short-term notes under its Short-Term Promissory

Notes Program (“Certificados Bursátiles de Corto Plazo”), which had an outstanding amount of MXN276 million

at the end of the quarter.

On January 11, 2011, we closed an offering of US$1,000 million aggregate principal amount of US dollar-

denominated senior secured notes (the “Notes”). The Notes will mature in 2018 and will pay a coupon of 9.00%

annually. The Notes were issued at a discount at 99.364% of face value and will be callable commencing on the

4th anniversary of their issuance date. CEMEX intends to use the proceeds from the offering for general

corporate purposes and to refinance indebtedness.

2010 Fourth Quarter Results Page 7

EQUITY RELATED AND DERIVATIVE INSTRUMENTS INFORMATION

EQUITY-RELATED INFORMATION

One CEMEX ADS represents ten CEMEX CPOs. The following amounts are expressed in CPO terms.

Beginning-of-quarter CPO-equivalent units outstanding 10,002,195,399

Less increase (decrease) in the number of CPOs held in subsidiaries 0

Stock based compensation 2,937,537

End-of-quarter CPO-equivalent units outstanding 10,005,132,936

Outstanding units equal total CPOs issued by CEMEX less CPOs held in subsidiaries.

CEMEX has outstanding mandatory convertible securities which upon conversion will increase the number of CPOs outstanding by

approximately 172.5 million, subject to antidilution adjustments.

Employee long-term compensation plans

As of December 31, 2010, executives had outstanding options on a total of 94,952,074 CPOs, with a weighted-average

strike price of approximately US$1.85 per CPO (equivalent to US$18.52 per ADS). Starting in 2005, CEMEX began

offering executives a restricted stock-ownership program. As of December 31, 2010, our executives held 29,631,025

restricted CPOs, representing 0.3% of our total CPOs outstanding.

DERIVATIVE INSTRUMENTS

The following table shows the notional amount for each type of derivative instrument and the aggregate fair market

value for all of CEMEX’s derivative instruments as of the last day of each quarter presented.

Fourth quarter Third quarter

Notional amounts (1) 2010 2009 2010

Equity (2) 1,644 969 1,644

Estimated aggregate fair market value (1) (3)(55)(24)(64)*

In millions of US dollars.

* Corrected from amount originally reported in Third Quarter results

The estimated aggregate fair market value represents the approximate settlement result as of the valuation

date, based upon quoted market prices and estimated settlement costs, which fluctuate over time. Fair market

values and notional amounts do not represent amounts of cash currently exchanged between the parties; cash

amounts will be determined upon termination of the contracts considering the notional amounts and quoted

market prices as well as other derivative items as of the settlement date. Fair market values should not be

viewed in isolation but rather in relation to the fair market values of the underlying hedge transactions and the

overall reduction in CEMEX’s exposure to the risks being hedged.

Note: Under Mexican FRS, companies are required to recognize all derivative financial instruments on the balance sheet as assets or

liabilities, at their estimated fair market value, with changes in such fair market values recorded in the income statement, except when

transactions are entered into for cash-flow-hedging purposes, in which changes in the fair market value of the related derivative

instruments are recognized temporarily in equity and then reclassified into earnings as the inverse effects of the underlying hedged items

flow through the income statement. As of December 31, 2010, in connection with the fair market value recognition of its derivatives

portfolio, CEMEX had recognized increases in assets and liabilities resulting in a net liability of US$20 million, which according to our

financial agreements, is presented net of the assets associated with the derivative instruments. The notional amounts of derivatives

substantially match the amounts of underlying assets, liabilities, or equity transactions on which the derivatives are being entered into.

(1) Excludes an interest-rate swap related to our long-term energy contracts and a swap over the natural gas price in Mexico. As of December

31, 2010, the notional amount of these derivatives was US$195 million, with a positive fair market value of approximately US$35 million.

(2) Includes a notional amount of US$360 million in connection with a guarantee given by CEMEX under a financial transaction of its

employees’ pension fund trust. As of December 31, 2010, the fair value of such financial guarantee represents a liability of US$95

million net of collateral deposit of US$55 million.

(3) Net of cash collateral deposited under open positions. Cash collateral was US$160 million as of December 31, 2010.

2010 Fourth Quarter Results Page 8

OPERATING RESULTS

Consolidated Income Statement & Balance Sheet

CEMEX, S.A.B. de C.V. and Subsidiaries

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

January—December Fourth quarter

INCOME STATEMENT like-to-like like-to-like

2010 2009% Var. 2010 2009% Var.

% Var. *% Var. *

Net Sales 14,069,431 14,544,194(3%)(4%) 3,492,052 3,443,799 1% 2%

Cost of Sales(10,126,796)(10,269,985) 1%(2,598,623)(2,532,490)(3%)

Gross Profit 3,942,635 4,274,208(8%)(10%) 893,429 911,309(2%)(2%)

Selling, General and Administrative Expenses(3,086,863)(3,109,444) 1%(767,956)(812,996) 6%

Operating Income 855,772 1,164,764(27%)(32%) 125,473 98,312 28% 20%

Other Expenses, Net(526,587)(406,517)(30%)(220,225)(219,842)(0%)

Operating Income After Other Expenses, Net 329,185 758,247(57%)(94,752)(121,530) 22%

Financial Expenses(1,286,672)(993,610)(29%)(328,023)(315,941)(4%)

Financial Income 34,708 28,335 22% 10,454 8,688 20%

Exchange Gain (loss), Net 73,097(19,547) N/A 7,237 50,179(86%)

Monetary Position Gain (loss) 21,025 30,533(31%) 9,374 7,957 18%

Gain (loss) on Financial Instruments(75,486)(156,414) 52% 44,324 20,720 114%

Total Comprehensive Financing (cost) Income(1,233,329)(1,110,703)(11%)(256,635)(228,398)(12%)

Net Income Before Income Taxes(904,145)(352,456)(157%)(351,387)(349,928)(0%)

Income Tax(355,877) 776,921 N/A(230,877) 613,203 N/A

Net Income Before Participation

of Uncons. Subs.(1,260,021) 424,465 N/A(582,264) 263,275 N/A

Participation in Unconsolidated Subsidiaries(41,370) 11,308 N/A 1,557 1,781(13%)

Net Income (loss) from Continuing Operations(1,301,392) 435,773 N/A(580,707) 265,055 N/A

Discontinued Operations 0(314,544) N/A 0(478,204) N/A

Consolidated Net Income (loss)(1,301,392) 121,229 N/A(580,707)(213,149)(172%)

Non-controlling interest Net Income (loss) 2,163 17,610(88%)(7,081)(3,695)(92%)

CONTROLLING INTEREST NET INCOME (LOSS)(1,303,554) 103,619 N/A(573,625)(209,454)(174%)

Operating EBITDA 2,313,845 2,656,998(13%)(16%) 482,043 473,686 2% 1%

Earnings per ADS(1.30) 0.12 N/A(0.57)(0.22)(163%)

As of December 31

BALANCE SHEET 2010 2009% Var.

Total Assets 41,674,527 44,483,282(6%)

Cash and Temporary Investments 675,888 1,077,447(37%)

Trade Accounts Receivables 986,515 1,022,399(4%)

Other Receivables 1,304,532 713,536 83%

Inventories 1,257,620 1,313,277(4%)

Other Current Assets 190,268 210,272(10%)

Discontinued Operations 0 0 N/A

Current Assets 4,414,823 4,336,931 2%

Fixed Assets 18,726,346 19,775,625(5%)

Other Assets 18,533,358 20,370,726(9%)

Discontinued Operations 0 0 N/A

Total Liabilities 24,384,885 24,806,421(2%)

Current Liabilities 4,459,487 3,759,559 19%

Discontinued Operations 0 0 N/A

Long-Term Liabilities 15,953,178 15,565,358 2%

Other Liabilities 3,972,220 5,481,504(28%)

Discontinued Operations 0 0 N/A

Consolidated Stockholders’ Equity 17,289,642 19,676,861(12%)

Non-controlling Interest and Perpetual Instruments 1,579,642 3,338,135(53%)

Stockholders’ Equity Attributable to Controlling Interest 15,710,000 16,338,726(4%)

2010 Fourth Quarter Results Page 9

OPERATING RESULTS

Consolidated Income Statement & Balance Sheet

CEMEX, S.A.B. de C.V. and Subsidiaries

(Thousands of Mexican Pesos in nominal terms)

January—December Fourth quarter

INCOME STATEMENT 2010 2009% Var. 2010 2009% Var.

Net Sales 178,259,695 197,801,033(10%) 43,301,445 45,079,327(4%)

Cost of Sales(128,306,510)(139,671,802) 8%(32,222,930)(33,150,297) 3%

Gross Profit 49,953,184 58,129,231(14%) 11,078,515 11,929,030(7%)

Selling, General and Administrative Expenses(39,110,558)(42,288,442) 8%(9,522,650)(10,642,124) 11%

Operating Income 10,842,627 15,840,789(32%) 1,555,865 1,286,906 21%

Other Expenses, Net(6,671,859)(5,528,628)(21%)(2,730,793)(2,877,733) 5%

Operating Income After Other Expenses, Net 4,170,768 10,312,161(60%)(1,174,928)(1,590,827) 26%

Financial Expenses(16,302,135)(13,513,093)(21%)(4,067,489)(4,135,669) 2%

Financial Income 439,745 385,359 14% 129,627 113,720 14%

Exchange Gain (loss), Net 926,135(265,844) N/A 89,736 656,846(86%)

Monetary Position Gain (loss) 266,385 415,246(36%) 116,234 104,152 12%

Gain (loss) on Financial Instruments(956,412)(2,127,235) 55% 549,621 271,220 103%

Total Comprehensive Financing (cost) Income(15,626,283)(15,105,567)(3%)(3,182,270)(2,989,732)(6%)

Net Income Before Income Taxes(11,455,515)(4,793,406)(139%)(4,357,198)(4,580,558) 5%

Income Tax(4,508,956) 10,566,131 N/A(2,862,877) 8,026,822 N/A

Net Income Before Participation

of Uncons. Subs.(15,964,471) 5,772,725 N/A(7,220,075) 3,446,264 N/A

Participation in Unconsolidated Subsidiaries(524,162) 153,784 N/A 19,311 23,309(17%)

Net Income (loss) from Continuing Operations(16,488,632) 5,926,509 N/A(7,200,763) 3,469,573 N/A

Discontinued Operations 0(4,277,792) N/A 1(6,259,695) N/A

Consolidated Net Income (loss)(16,488,632) 1,648,717 N/A(7,200,763)(2,790,122)(158%)

Non-controlling interest Net Income (loss) 27,399 239,503(89%)(87,810)(48,368)(82%)

CONTROLLING INTEREST NET INCOME (LOSS)(16,516,031) 1,409,214 N/A(7,112,952)(2,741,754)(159%)

Operating EBITDA 29,316,419 36,135,168(19%) 5,977,335 6,200,543(4%)

Earnings per ADS(16.53) 1.61 N/A(7.11)(2.86)(149%)

As of December 31

BALANCE SHEET 2010 2009% Var.

Total Assets 515,097,150 582,286,168(12%)

Cash and Temporary Investments 8,353,976 14,103,778(41%)

Trade Accounts Receivables 12,193,328 13,383,197(9%)

Other Receivables 16,124,013 9,340,189 73%

Inventories 15,544,188 17,190,802(10%)

Other Current Assets 2,351,709 2,752,455(15%)

Discontinued Operations 0 0 N/A

Current Assets 54,567,214 56,770,421(4%)

Fixed Assets 231,457,632 258,862,937(11%)

Other Assets 229,072,304 266,652,810(14%)

Discontinued Operations 0 0 N/A

Total Liabilities 301,397,176 324,716,054(7%)

Current Liabilities 55,119,259 49,212,622 12%

Discontinued Operations 0 0 N/A

Long-Term Liabilities 197,181,275 203,750,540(3%)

Other Liabilities 49,096,643 71,752,892(32%)

Discontinued Operations 0 0 N/A

Consolidated Stockholders’ Equity 213,699,974 257,570,115(17%)

Non-controlling Interest and Perpetual Instruments 19,524,378 43,696,191(55%)

Stockholders’ Equity Attributable to Controlling Interest 194,175,595 213,873,924(9%)

2010 Fourth Quarter Results Page 10

OPERATING RESULTS

Operating Summary per Country

In thousands of U.S. dollars

January—December Fourth quarter

like-to-like like-to-like

2010 2009% Var. 2010 2009% Var.

NET SALES% Var. *% Var. *

Mexico 3,434,750 3,113,132 10% 3% 902,030 722,678 25% 18%

U.S.A. 2,490,892 2,825,272(12%)(12%) 572,115 601,693(5%)(5%)

Europe 4,793,209 5,359,526(11%)(7%) 1,129,925 1,322,214(15%)(8%)

South / Central America and Caribbean 1,443,789 1,442,700 0%(5%) 365,715 340,533 7% 5%

Africa and Middle East 1,034,790 1,048,724(1%)(2%) 264,223 261,372 1% 3%

Asia 515,291 473,840 9% 3% 124,832 122,256 2%(4%)

Others and intercompany eliminations 356,711 281,000 27% 27% 133,211 73,052 82% 82%

TOTAL 14,069,431 14,544,194(3%)(4%) 3,492,052 3,443,799 1% 2%

GROSS PROFIT

Mexico 1,636,741 1,559,309 5%(2%) 433,390 364,469 19% 13%

U.S.A.(48,654) 277,736 N/A N/A(28,951) 46,350 N/A N/A

Europe 1,196,946 1,389,517(14%)(11%) 260,659 324,238(20%)(14%)

South / Central America and Caribbean 594,424 613,098(3%)(9%) 133,021 147,290(10%)(12%)

Africa and Middle East 415,155 372,214 12% 13% 111,546 81,100 38% 44%

Asia 172,699 154,375 12% 6% 31,789 32,732(3%)(9%)

Others and intercompany eliminations(24,676)(92,042) 73% 73%(48,026)(84,870) 43% 43%

TOTAL 3,942,635 4,274,208(8%)(10%) 893,429 911,309(2%)(2%)

OPERATING INCOME

Mexico 1,004,349 1,021,605(2%)(8%) 249,402 216,393 15% 9%

U.S.A.(655,426)(456,552)(44%)(44%)(174,510)(126,659)(38%)(38%)

Europe 114,353 248,805(54%)(52%) 3,922 18,848(79%)(78%)

South / Central America and Caribbean 369,944 414,613(11%)(16%) 71,661 94,496(24%)(26%)

Africa and Middle East 322,832 286,795 13% 14% 83,635 55,856 50% 57%

Asia 101,296 93,955 8% 3% 14,133 16,097(12%)(13%)

Others and intercompany eliminations(401,577)(444,458) 10% 14%(122,770)(176,719) 31% 32%

TOTAL 855,772 1,164,764(27%)(32%) 125,473 98,312 28% 20%

2010 Fourth Quarter Results Page 11

OPERATING RESULTS

Operating Summary per Country

EBITDA in thousands of U.S. dollars. EBITDA margin as a percentage of net sales

January—December Fourth quarter like-to-like like-to-like 2010 2009 % Var. 2010 2009 % Var.

OPERATING EBITDA % Var. * % Var. *

Mexico 1,152,825 1,159,675 (1%) (7%) 287,272 251,240 14% 8% U.S.A. (44,873) 142,817 N/A N/A (36,049) (4,509) (700%) (700%) Europe 434,194 595,897 (27%) (24%) 80,874 108,671 (26%) (20%) South / Central America and Caribbean 460,168 510,609 (10%) (15%) 96,900 115,141 (16%) (18%) Africa and Middle East 369,464 332,809 11% 12% 94,698 67,590 40% 47% Asia 122,587 114,715 7% 2% 19,618 21,444 (9%) (11%)

Others and intercompany eliminations (180,521) (199,524) 10% 19% (61,270) (85,890) 29% 32%

TOTAL 2,313,845 2,656,998 (13%) (16%) 482,043 473,686 2% 1%

OPERATING EBITDA MARGIN

Mexico 33.6% 37.3% 31.8% 34.8% U.S.A. (1.8%) 5.1% (6.3%) (0.7%) Europe 9.1% 11.1% 7.2% 8.2% South / Central America and Caribbean 31.9% 35.4% 26.5% 33.8% Africa and Middle East 35.7% 31.7% 35.8% 25.9% Asia 23.8% 24.2% 15.7% 17.5% CONSOLIDATED MARGIN 16.4% 18.3% 13.8% 13.8%

2010 Fourth Quarter Results Page 12

OPERATING RESULTS

Volume Summary

Consolidated volume summary

Cement and aggregates: Thousands of metric tons.

Ready-mix: Thousands of cubic meters.

January—December Fourth quarter

2010 2009% Var. 2010 2009% Var.

Consolidated cement volume * 65,646 65,052 1% 16,103 15,438 4%

Consolidated ready-mix volume 51,001 53,920(5%) 13,005 12,750 2%

Consolidated aggregates volume 158,458 167,950(6%) 38,693 39,922(3%)

Per-country volume summary

January—December Fourth quarter Fourth quarter 2010 Vs.

DOMESTIC GRAY CEMENT VOLUME 2010 Vs. 2009 2010 Vs. 2009 Third quarter 2010

Mexico(4%)(0%)(4%)

U.S.A.(0%) 3%(13%)

Europe(8%)(4%)(24%)

South / Central America and Caribbean(3%)(3%)(0%)

Africa and Middle East(1%)(4%)(2%)

Asia 9%(8%)(9%)

READY-MIX VOLUME

Mexico(4%) 24% 18%

U.S.A.(7%)(10%)(17%)

Europe(7%)(7%)(19%)

South / Central America and Caribbean(2%) 8%(2%)

Africa and Middle East(4%) 7% 22%

Asia(2%) 13% 38%

AGGREGATES VOLUME

Mexico(1%) 30% 27%

U.S.A.(5%)(7%)(19%)

Europe(8%)(11%)(23%)

South / Central America and Caribbean 8% 4%(7%)

Africa and Middle East 7% 8% 13%

Asia 3% 9% 21%

* Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.

2010 Fourth Quarter Results Page 13

OPERATING RESULTS

Price Summary

Variation in U.S. Dollars

January—December Fourth quarter Fourth quarter 2010 Vs.

DOMESTIC GRAY CEMENT PRICE 2010 Vs. 2009 2010 Vs. 2009 Third quarter 2010

Mexico 8% 9% 4%

U.S.A.(8%)(8%)(1%)

Europe (*)(8%)(11%) 2%

South / Central America and Caribbean (*) 4% 4%(3%)

Africa and Middle East (*) 2%(3%)(1%)

Asia (*) 7% 7%(2%)

READY-MIX PRICE

Mexico 11% 12% 5%

U.S.A.(11%)(4%) 0%

Europe (*)(6%)(7%) 4%

South / Central America and Caribbean (*)(1%) 2%(0%)

Africa and Middle East (*)(7%)(1%) 2%

Asia (*) 7% 9% 1%

AGGREGATES PRICE

Mexico 19% 16% 8%

U.S.A.(4%) 1% 4%

Europe (*)(4%)(6%) 4%

South / Central America and Caribbean (*)(3%)(5%)(1%)

Africa and Middle East (*) 8% 8% 3%

Asia (*) 18% 14%(2%)

(*) Volume weighted-average price.

2010 Fourth Quarter Results Page 14

OPERATING RESULTS

Price Summary

Variation in Local Currency

January—December Fourth quarter Fourth quarter 2010 Vs.

DOMESTIC GRAY CEMENT PRICE 2010 Vs. 2009 2010 Vs. 2009 Third quarter 2010

Mexico 0% 4% 1%

U.S.A.(8%)(8%)(1%)

Europe (*)(5%)(4%)(1%)

South / Central America and Caribbean (*)(1%) 1%(1%)

Africa and Middle East (*) 3% 3%(0%)

Asia (*) 1%(0%)(5%)

READY-MIX PRICE

Mexico 3% 6% 2%

U.S.A.(11%)(4%) 0%

Europe (*)(1%) 0% 1%

South / Central America and Caribbean (*)(6%)(1%) 1%

Africa and Middle East (*)(10%)(3%) 0%

Asia (*) 1% 3%(0%)

AGGREGATES PRICE

Mexico 11% 10% 4%

U.S.A.(4%) 1% 4%

Europe (*) 1% 1% 1%

South / Central America and Caribbean (*)(9%)(6%) 0%

Africa and Middle East (*) 3% 4%(0%)

Asia (*) 7% 4%(3%)

(*) Volume weighted-average price.

2010 Fourth Quarter Results Page 15

OTHER ACTIVITIES

CEMEX wins prestigious social media award On November 1, 2010, CEMEX announced that it was chosen for this year’s Forrester Groundswell Awards as a winner in the Management: Collaboration Systems category. The category recognized major social networking initiatives such as the company’s Shift program. Shift is a new collaboration platform for CEMEX employees worldwide, combining elements of popular social networks, wikis, and communications tools to encourage efficient and meaningful company-wide sharing of innovative ideas and best practices. The platform launched in January of 2010, and now more than 17,500 CEMEX employees worldwide are active participants. Since its launch more than 500 virtual communities transcending typical corporate structures, departments, and titles, have been created by users. This fourth annual Forrester Groundswell Awards recognized CEMEX for the Shift platform’s use of social media applications toward achieving genuine employee collaboration. More information about the Forrester Groundswell Awards is available at: http://www.forrester.com/empowered. CEMEX to contribute with proposals to address climate change at COP16 On November 24, 2010, CEMEX announced its official participation in the 16th edition of Conference of the Parties of the United Nations Framework Convention on Climate Change (COP16). The conference aimed to continue efforts toward creating an international consensus on cutting carbon emissions and finding solutions to climate change. In addition to being an official COP16 sponsor, CEMEX played an important role in supporting the objectives of last year’s meeting by presenting concise and effective proposals that demonstrate the significant role of ready-mix concrete in a low-carbon world. CEMEX also entered into an agreement with Mexico’s Ministry of Environment and Natural Resources (Secretaria de Medio Ambiente y Recursos Naturales, SEMARNAT) to participate as an official COP16 sponsor. CEMEX’s sponsorship will help offset carbon emissions at the 2010 United Nations Climate Change Conference (COP16) and to contribute resources to its SEMARNAT’s Environmental Leadership for Competitiveness program. The agreement outlines two commitments. The first is a sponsorship of US$100,000 to offset the carbon emissions generated by one of the official facilities that will host COP16 events in Cancun: the Climate Change Villa. The funds will be administered by Pronatura, a Mexican NGO dedicated to the conservation of flora, fauna and priority ecosystems, and will be used for reforestation and maintenance of 1,300 hectares in the state of Oaxaca, Mexico, which will benefit families in 10 communities in the state. This will help offset 10,000 tons of CO2 emissions, the equivalent of approximately 25% of the total emissions estimated to be generated during COP16. The second part of the agreement will provide US$150,000 to fund the Environmental Leadership for Competitiveness Program (El Programa de Liderazgo Ambiental para la Competitividad) in Mexico. Under the program, in which SEMARNAT provides matching funds, training and development programs are offered to small and medium-size companies to foster environmentally responsible practices such as improved water preservation, reduction in energy consumption, and better waste management systems at their facilities. This joint effort will benefit approximately 540 companies with more than 4,300 training hours in environmental leadership. CEMEX confirms receipt of notice from European Commission pursuant to its investigation launched in November 2008 On December 9, 2010, CEMEX announced that it had been informed today by the European Commission of its decision to initiate formal proceedings in respect of possible anticompetitive practices in Austria, Belgium, the Czech Republic, France, Germany, Italy, Luxembourg, the Netherlands, Spain, and the UK. The Commission indicated that CEMEX, as well as seven other companies, will be included in these proceedings. This development stems from an investigation launched by the European Commission in November 2008. In its notification, the Commission stated that “The initiation of proceedings does not imply that the Commission has conclusive proof of the infringements but merely signifies that the Commission will deal with the case as a matter of priority.” CEMEX has cooperated with the investigation, and maintains that it has always acted in accordance with applicable laws and regulations, and intends to defend its position vigorously in these proceedings. CEMEX issued US$1 billion of senior secured notes On January 4, 2011, CEMEX announced the pricing of an offering of US$1 billion in US dollar-denominated senior secured notes (the “Notes”). The Notes will mature in 2018 and pay a coupon of 9.00% annually. The Notes were issued at a discount at 99.364% of face value and will be callable commencing on their 4th anniversary. The closing of the offering was on January 11, 2011. CEMEX intends to use the proceeds from the offering for general corporate purposes, which may include the repayment of indebtedness, including indebtedness under CEMEX’s Financing Agreement completed on August 14, 2009, as amended, all in accordance with the terms of the Financing Agreement. This transaction is intended to improve CEMEX’s debt maturity profile and reduce short-term refinancing risk. The Notes share in the collateral pledged to the lenders under the Financing Agreement and other senior secured indebtedness having the benefit of such collateral, and are guaranteed by CEMEX México, S.A. de C.V.; CEMEX España, S.A.; and New Sunward Holding B.V. The Notes and the guarantees thereof have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and they may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. 2010 Fourth Quarter Results Page 16

OTHER INFORMATION

In connection with the sale of our Australian assets on October 1, 2009, our income statements for the twelve-month periods ended December 31, 2009, presented elsewhere in this quarterly report, include the reclassification line-by-line of CEMEX Australia’s results of operations, net of income tax, for the nine-month period to a single line item “Discontinued Operations” before net income. According to Mexican Financial Reporting Standards (MFRS), during the fourth quarter of 2009, “Discontinued Operations” includes the result on the sale of our Australian assets representing a loss, net of income tax, of approximately US$446 million. This loss represents the difference between the selling price of approximately US$1.7 billion and the carrying amount of the net assets, including foreign currency translation effects accrued in equity. Selected condensed financial information from the income statement for CEMEX Australia for the nine-month period ended September 30, 2009 is as follows: Millions of pesos September 30, 2009 Net sales MXN 13,015 Operating income MXN 1,198 Mexican Tax Reform 2010 In November 2009, the Mexican Congress approved amendments to the income tax law that are effective beginning January 1, 2010. The new law included changes to the tax consolidation regime that will require CEMEX, among other things, to determine income taxes as if the tax consolidation provisions in Mexico did not exist from 1999 and onward. These changes also required the payment of taxes on dividends between entities of the tax consolidation group (specifically, dividends paid from profits that were not taxed in the past), certain special items in the tax consolidation, as well as tax loss carryforwards generated by entities within the consolidated tax group that should had been recovered by such individual entities over the succeeding 10 years. This new law increased the statutory income tax rate from 28% to 30% for the years 2010 to 2012, 29% for 2013, and decreasing to 28% for 2014 and future years. Pursuant to the new tax law, the Parent Company was required to pay in 2010 (at the new 30% tax rate) 25% of the tax that result from eliminating the tax consolidation effects from 1999 to 2004. The remaining 75% should be paid as follows: 25% in 2011, 20% in 2012, 15% in 2013 and 15% in 2014. In connection with the consolidation effects originated after 2004, these should be considered during the sixth fiscal year following their origination and will be payable over the succeeding five years in the same proportions (25%, 25%, 20%, 15%, and 15%). Applicable taxes payable as a result of the changes to the tax consolidation regime will be increased by inflation as required by the Mexican income tax law. As of December 31, 2009, based on Interpretation 18, The Parent Company recognized the nominal value of estimated taxes payable in connection with the aforementioned amendments in the law for approximately US$799 million. This amount was recognized by the Parent Company as a tax payable on its balance sheet against “Other non-current assets” for approximately US$628 million, in connection with the net liability recognized before the new tax law and that the Parent Company expects to realize in connection with the payment of this tax liability; and approximately US$171 million against “Retained earnings” for the portion, according to the new law, related to: a) the difference between the sum of the equity of the controlled entities for tax purposes and the equity for tax purposes of the consolidated entity; b) dividends from the controlled entities for tax purposes to CEMEX, S.A.B. de C.V.; and c) other transactions between the companies included in the tax consolidation that represented the transfer of resources within such group. In December 2010, pursuant to additional rules, the tax authorities eliminated certain aspects in the law in connection with the taxable amount for the difference between the sum of the equity of the controlled entities for tax purposes and the equity for tax purposes of the consolidated entity. As a result, the Parent Company reduced its estimated tax payable for approximately US$235 million against a credit to “Retained earnings.” In 2010, changes in the Parent Company’s tax payable associated to the tax consolidation in Mexico are as follows (US$ Millions): 2010 Balance at the beginning of the period $799 Income tax received from subsidiaries $202 Restatement for the period $28 Payments during the period ($26) Deduction associated with additional tax rules ($235) Other $47 Balance at the end of the period $815 As of December 31, 2010, the balance of tax loss carryforwards that have not been considered in the tax consolidation is approximately US$463 million. As of December 31, 2010, the estimated payment schedule of taxes payable resulting from changes in the tax consolidation regime in Mexico was as follows: 2010 (US$ Millions) 2011 $40 2012 $54 2013 $54 2014 $156 2015 $165 2016 and thereafter $346 $815 Effects of the nationalization of CEMEX Venezuela on our financial statements Our consolidated balance sheets as of December 31, 2010 and 2009, presented elsewhere in this quarterly report, include within “Other Assets” our net investment in our confiscated Venezuelan assets as of the same dates. Our net investment in our Venezuelan assets as of December 31, 2010 and 2009 is as follows: Millions of pesos December 31, 2010 December 31, 2009 Net total assets MXN6,203 MXN6,147 Accounting effects related to the exercise of Ready Mix USA’s put option In relation to CEMEX’s joint ventures with Ready Mix USA, a) CEMEX Southeast, LLC, the joint venture owned at 50.01% by CEMEX; and b) Ready Mix USA LLC, the joint venture owned at 50.01% by Ready Mix USA, on September 30, 2010, Ready Mix USA exercised its put option. As a result, upon closing of the transaction, which will take place upon performance of the obligations by both parties under the put option agreement, and that is expected in September 2011, CEMEX will acquire its venture partner’s interests in the two joint ventures. CEMEX’s purchase price for its partner’s interests including a non-compete agreement will be approximately US$355 million. Ready Mix USA will continue to manage the joint venture in which it has a majority interest (Ready Mix USA LLC) until the closing of the transaction. As of December 31, 2010, CEMEX has not recognized a liability as the fair value of the net assets exceeds the estimated purchase price. Had the purchase price exceeded the fair value of the net assets to be acquired, a loss would have been recognized. As of December 31, 2010, Ready Mix USA, LLC had approximately US$27 million (unaudited) in net debt (debt less cash and cash equivalents), which will be consolidated upon closing of the transaction. 2010 Fourth Quarter Results Page 17

DEFINITION OF TERMS AND DISCLOSURES

Methodology for translation, consolidation, and presentation of results Under MFRS, beginning January 1, 2008, CEMEX translates the financial statements of those foreign subsidiaries operating in low-inflation environments using exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement, while for foreign subsidiaries operating in high-inflation environments, CEMEX uses the exchange rates at the reporting date for the balance sheet and income statement. CEMEX reports its consolidated results in Mexican pesos. For the reader’s convenience, beginning June 30, 2008, US dollar amounts for the consolidated entity are calculated by converting the nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter. The exchange rates used to convert results for fourth quarter 2010 and fourth quarter 2009 are 12.40 and 13.09 Mexican pesos per US dollar, respectively. Per-country/region figures are presented in US dollars for the reader’s convenience. Figures presented in US dollars for Mexico as of December 31, 2010, and December 31, 2009, can be converted into their original local currency amount by multiplying the US-dollar figure by the corresponding average exchange rates for 2010 and 2009, provided below. Breakdown of regions The South/Central America and Caribbean region includes CEMEX’s operations in Argentina, Colombia, Costa Rica, the Dominican Republic, Guatemala, Jamaica, Nicaragua, Panama, and Puerto Rico, as well as trading operations in the Caribbean region. Europe includes operations in Austria, Croatia, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Latvia, Norway, Poland, Spain, Sweden, and the United Kingdom. Africa and Middle East includes operations in Egypt, Israel, and the United Arab Emirates. The Asia region includes operations in Bangladesh, Malaysia, the Philippines, Taiwan, and Thailand. Disclosure on cement volumes As of the second quarter 2010, we changed our reporting base for our cement volumes from total domestic cement including gray and white cement, mortar and clinker to domestic gray cement, except where indicated. Definition of terms Expansion capital expenditures consist of expansion spending on our cement, ready-mix, and other businesses in existing markets. Free cash flow equals 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 and coupon payments on our perpetual notes). Maintenance capital expenditures consist of maintenance spending on our cement, ready-mix, and other businesses in existing markets. Net debt equals total debt minus cash and cash equivalents, and does not include our obligations in respect of our perpetual notes and loans, which are treated as equity obligations under Mexican financial reporting standards. Operating EBITDA equals operating income plus depreciation and operating amortization. pp equals percentage points Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables. Earnings per ADS The number of average ADSs outstanding used for the calculation of earnings per ADS was 1,000.3 million for fourth quarter 2010, 999.2 million for the full year 2010, 998.0 million for fourth quarter 2009, and 893.2 million for the full year 2009. According to the Mexican NIF B-14 Earnings per share, the weighted-average number of common shares outstanding is determined considering the number of days during the accounting period in which the shares have been outstanding, including shares derived from corporate events that have modified the stockholder’s equity structure during the period, such as increases in the number of shares by a public offering and the distribution of shares from stock dividends or recapitalizations of retained earnings. The shares issued as a result of share dividends and recapitalizations should be considered as issued at the beginning of the period.

Exchange rates January—December Fourth quarter

2010 2009 2010 2009

Average Average Average Average

Mexican peso 12.67 13.60 12.40 13.09

Euro 0.7582 0.7190 0.7432 0.6802

British pound 0.6484 0.6403 0.6368 0.6100

Amounts provided in units of local currency per U.S. dollar.

2010 Fourth Quarter Results Page 18