EX-2 3 dex2.htm SECOND QUARTER 2011 RESULTS FOR CEMEX, S.A.B. DE C.V.

Exhibit 2

2011 SECOND QUARTER RESULTS ?? Stock Listing Information NYSE (ADS) Ticker: CX MEXICAN STOCK EXCHANGE Ticker: CEMEXCPO Ratio of CEMEXCPO TO CX = 10:1 ?? Investor Relations In the United States: 1 877 7CX NYSE In Mexico: 52 (81) 8888 4292 E? Mail: ir@cemex.com

OPERATING AND FINANCIAL HIGHLIGHTS January – June Second quarter l?t?l l?t?l 2011 2010 % Var. 2011 2010 % Var. % Var.* % Var.* Consolidated cement volume (thousand metric tons) 33,029 32,368 2% 17,783 17,923 (1%) Consolidated ready?mix volume (thousand cubic meters) 26,436 24,287 9% 14,156 13,530 5% Consolidated aggregates volume 77,763 75,592 3% 42,592 43,090 (1%) (thousand metric tons) Net sales 7,462 6,804 10% 4% 4,091 3,762 9% 0% Gross profit 2,112 1,948 8% 2% 1,153 1,128 2% (7%) Gross profit margin 28.3% 28.6% (0.3pp) 28.2% 30.0% (1.8pp) Operating income 429 443 (3%) (12%) 258 295 (12%) (23%) Operating Income margin 5.7% 6.5% (0.8pp) 6.3% 7.8% (1.5pp) Consolidated net income (loss) (571) (642) 11% (293) (301) 3% Controlling interest net income (570) (648) 12% (294) (306) 4% (loss) Operating EBITDA 1,132 1,179 (4%) (9%) 615 664 (7%) (15%) Operating EBITDA margin 15.2% 17.3% (2.2pp) 15.0% 17.7% (2.6pp) Free cash flow after (305) 16 N/A 18 187 (90%) maintenance capital expenditures Free cash flow (351) (38) (827%) (16) 161 N/A Net debt plus perpetual notes 17,753 17,129 4% 17,753 17,129 4% Total debt 17,251 16,587 4% 17,251 16,587 4% Total debt plus perpetual notes 18,428 17,877 3% 18,428 17,877 3% Earnings (loss) per ADS (0.55) (0.65) 16% (0.28) (0.31) 8% Fully diluted earnings per ADS N/A N/A N/A N/A N/A N/A Average ADSs outstanding 1,040.7 947.9 10% 1,040.8 998.4 4% Employees 45,792 46,794 (2%) 45,792 46,794 (2%) In millions of US dollars, except percentages, employees, and per?ADS amounts. Average ADSs outstanding are presented in millions. Please refer to page 8 for end?of quarter CPO? equivalent units outstanding. * Like?to?like (“l?t?l”) percentage variations adjusted for investments/divestments and currency fluctuations. Consolidated net sales in the second quarter of 2011 reached Other expenses, net, for the quarter were US$202 million, which US$4,091 million, representing an increase of 9% compared with the included severance payments related to our transformation process, second quarter of 2010, or flat on a like?to?like basis for the ongoing impairment of fixed assets, amortization of fees related to early operations. The increase in consolidated net sales was due to higher redemption of debt and a one?time tax provision in Colombia. sales in local currency terms in our Northern European, and South/Central America and Caribbean operations. The infrastructure Gain (loss) on financial instruments for the quarter was a loss of and residential sectors were the main drivers of demand in most of US$22 million, resulting mainly from our equity derivatives related to our markets. CEMEX shares. Cost of sales as a percentage of net sales increased by 1.8 percentage Controlling interest net income (loss) was a loss of US$294 million in points during the second quarter of 2011 compared to the same the second quarter of 2011 versus a loss of US$306 million in the period last year. The increase in cost of sales as a percentage of net second quarter of 2010. This year’s loss reflects lower operating sales was mainly the result of higher fuel cost and maintenance in our income, higher other expenses and higher financial expenses, which cement operations. Selling, general and administrative (SG&A) more than offset higher exchange gain during the quarter. expenses as a percentage of net sales decreased 0.3 percentage Total debt plus perpetual notes increased US$197 million during the points during the second quarter of 2011 compared with the same quarter. period last year, from 22.2% to 21.9%. The decrease in SG&A expenses during the quarter was the result of our cost reduction initiatives which more than offset higher distribution expenses. Operating EBITDA decreased 7% during the second quarter of 2011 compared with the same period last year, to US$615 million. The decrease was due mainly to lower contributions from our US, Mediterranean, and Asian operations. On a like?to?like basis for the ongoing operations, operating EBITDA decreased 15% in the second quarter of 2011 compared with the same period last year. Operating EBITDA margin decreased 2.6 percentage points, from 17.7% in the second quarter of 2010 to 15.0% this quarter reflecting a change in product and geographic mix, as well as input cost inflation in excess of price increases in our cement business. 2011 Second Quarter Results Page 2

OPERATING RESULTS Mexico January – June Second quarter l?t?l % l?t?l % 2011 2010 % Var. 2011 2010 % Var. Var.* Var.* Net sales 1,808 1,665 9% 1% 968 923 5% (4%) Operating EBITDA 601 579 4% (4%) 309 321 (4%) (12%) Operating EBITDA margin 33.2 % 34.8% (1.6pp) 31.9 % 34.8% (2.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready?mix Aggregates Year?over?year percentage January – June Second Quarter January ?June Second Quarter January ?June Second Quarter variation Volume 2% 3% 14% 13% 5% 3% Price (USD) 11% 11% 14% 16% 22% 25% Price (local currency) 3% 1% 6% 5% 13% 14% Domestic gray cement volumes for our Mexican operations increased 3% during the second quarter of 2011 versus the same period last year, while ready?mix volumes increased 13% over the same period. For the first six months of the year, domestic gray cement volumes increased 2% while ready?mix volumes increased 14% versus the comparable period a year ago. During the quarter, the infrastructure and industrial?and?commercial sectors were the main drivers of demand for building materials. Formal housing investment, mainly low and middle?income housing, declined due to credit shrinkage from Infonavit and Fovissste, as well as from commercial banks. The self?construction sector has not recovered yet. United States January – June Second quarter l?t?l % l?t?l % 2011 2010 % Var. 2011 2010 % Var. Var.* Var.* Net sales 1,126 1,236 (9%) (9%) 619 684 (9%) (9%) Operating EBITDA (70) (7) (931%) (931%) (22) 17 N/A N/A Operating EBITDA margin (6.2%) (0.6%) (5.6pp) (3.6 %) 2.4% N/A In millions of US dollars, except percentages. Domestic gray cement Ready?mix Aggregates Year?over?year percentage January – June Second Quarter January ?June Second Quarter January ?June Second Quarter variation Volume (7%) (10%) (12%) (14%) (12%) (12%) Price (USD) (1%) (0%) 2% 3% 7% 9% Price (local currency) (1%) (0%) 2% 3% 7% 9% Domestic gray cement, ready?mix, and aggregates volumes for CEMEX’s operations in the United States decreased 10%, 14%, and 12%, respectively, during the second quarter of 2011 versus the same period of 2010. For the first half of the year, domestic gray cement, ready?mix, and aggregates volumes decreased 7%, 12%, and 12%, respectively, versus the comparable period last year. On a like?to?like basis for the ongoing operations, aggregates volumes decreased 7% during the quarter and 7% for the first half of the year versus the comparable period last year. The decline in sales volume for the quarter reflects the difficult prior year comparison that was boosted by the expiring residential subsidy and the general slowdown of the economic recovery. Flooding in the Midwest, the restructuring of our Arizona business as well as heavy rains in California in June had a negative effect on our volumes for the quarter. Weak employment figures, tight credit conditions, and high inventories negatively affected the activity of the residential sector. Uncertainty surrounding the Federal Highway Program continues to affect the performance from the infrastructure sector. The decline in the industrial and commercial sector continues to moderate and was mitigated by increased activity in the oil well and agricultural sectors. 2011 Second Quarter Results Page 3

OPERATING RESULTS Northern Europe January – June Second quarter l? t? l % l? t? l % 2011 2010 % Var. 2011 2010 % Var. Var.* Var.* Net sales 2,329 1,876 24% 15% 1,354 1,096 24% 7% Operating EBITDA 162 71 127% 110% 152 100 52% 32% Operating EBITDA margin 6.9 % 3.8% 3.1pp 11.2 % 9.1% 2.1pp In millions of US dollars, except percentages. Domestic gray cement Ready? mix Aggregates Year? over? year percentage January – June Second Quarter January June ? Second Quarter January June ? Second Quarter variation Volume 18% 7% 17% 8% 11% 3% Price (USD) 11% 17% 11% 16% 11% 16% Price (local currency) 1% 1% 2% 1% 2% 2% Domestic gray cement, ready? mix, and aggregates volumes for our United Kingdom operations increased 1%, 11%, and 1%, respectively, during the second quarter of 2011 versus the same period in 2010. For the first six months of the year our domestic gray cement, ready? mix, and aggregates volumes increased 10%, 20%, and 8%, respectively, versus the comparable period in the previous year. Results for the quarter were driven by the infrastructure sector, including energy and rail work projects. The residential sector showed a positive performance driven by private housing starts. In France, our ready? mix and aggregates volumes increased 10% and 6%, respectively, during the second quarter of 2011 versus the same period in 2010. For the first six months of the year, ready? mix and aggregates volumes increased 18% and 14%, respectively, versus the same period last year. Construction activity for the quarter continues to be driven mainly by the residential sector that benefit from economic stimulus plan measures such as social housing, tax incentives and zero rate loans, as well as favorable credit conditions. Spending for the infrastructure sector remained stable, supported mainly by private investments. The increase in the number of new project starts and permits, especially from offices and warehouses positively affected the performance from the industrial? and? commercial sector. Favorable weather conditions had a positive effect on volumes for the quarter. In CEMEX’s operations in Germany, domestic gray cement volumes increased 4% during the second quarter of 2011 and 21% during the first half of the year versus the same periods last year. The main driver of construction activity during the quarter continued to be the residential sector. The increase in housing permits was driven by historically low mortgage rates, stable construction prices, shrinking unemployment, and higher wages. Activity from the industrial? and?commercial sector continued to recover due to the performance of the German economy and higher capacity utilization. The infrastructure sector remained stable, given the limited resources from stimulus packages. Domestic gray cement volumes for our operations in Poland increased 16% during the second quarter of 2011 and 26% during the first six months of the year versus the comparable periods of last year. The infrastructure sector continued to drive activity for building materials during the quarter given the favorable macroeconomic conditions. The government continued supporting its programs for the construction of highways and express roads. Activity from the industrial? and?commercial sector continued to be positive, given increased demand from other construction sectors, as well as higher foreign direct investments resulting from the positive economic environment. A slight recovery from the residential sector was seen during the quarter. In addition, favorable weather conditions positively affected our volumes for the quarter in comparison with the same quarter a year ago. Our domestic gray cement volumes as a whole in the region increased 7% during the second quarter of 2011 and 18% for the first half of the year versus the same periods in 2010. 2011 Second Quarter Results Page 4

OPERATING RESULTS Mediterranean January – June Second quarter l?t?l % l?t?l % 2011 2010 % Var. 2011 2010 % Var. Var.* Var.* Net sales 913 923 (1%) (4%) 477 477 (0%) (6%) Operating EBITDA 241 264 (9%) (9%) 125 147 (15%) (18%) Operating EBITDA margin 26.4 % 28.6% (2.2pp) 26.2 % 30.8% (4.6pp) In millions of US dollars, except percentages. Domestic gray cement Ready?mix Aggregates Year?over?year percentage January – June Second Quarter January ?June Second Quarter January ?June Second Quarter variation Volume (3%) (5%) 6% 3% (4%) (8%) Price (USD) (3%) (1%) 4% 9% 13% 19% Price (local currency) (3%) (4%) (2%) (1%) 5% 5% CEMEX’s domestic gray cement and ready?mix volumes in Spain decreased 11% and 15%, respectively, during the second quarter of 2011 compared with the same period last year. For the first half of the year, domestic gray cement volumes decreased 4%, while ready?mix volumes declined by 1%. The decline in sales volumes for the quarter was the result of continuing lower construction activity across all regions and demand sectors. Housing construction is stagnant and at all time low levels, affected by high inventory levels and lack of financing. Performance from the infrastructure sector continued to be affected by large budget cuts and lack of economic resources. Activity from the industrial?and? commercial sector continued to decline given the low visibility, high risk premium, and unfavorable macroeconomic conditions. Domestic gray cement volumes for our operations in Egypt remained flat during the second quarter of 2011 and decreased 3% during the first six months of the year versus the comparable periods of last year. Construction activity for the quarter continues to be driven by the informal residential sector. Activity from the public sector remains low as spending on new infrastructure projects has been very limited. Investments in the industrial?and?commercial sector remained on hold due to the prevailing political and economic uncertainty in the country. Our domestic gray cement volumes in the region as a whole decreased 5% during the second quarter of 2011 and 3% for the first half of the year versus the same periods in 2010. South/Central America and the Caribbean January – June Second quarter l?t?l % l?t?l % 2011 2010 % Var. 2011 2010 % Var. Var.* Var.* Net sales 845 712 19% 16% 442 360 23% 19% Operating EBITDA 241 254 (5%) (8%) 125 128 (3%) (6%) Operating EBITDA margin 28.6% 35.7% (7.1pp) 28.3 % 35.6% (7.3pp) In millions of US dollars, except percentages. Domestic gray cement Ready?mix Aggregates Year?over?year percentage January – June Second Quarter January ?June Second Quarter January ?June Second Quarter variation Volume 4% 3% 16% 23% 29% 25% Price (USD) 6% 9% 7% 9% (3%) (1%) Price (local currency) 3% 5% 4% 5% (5%) (5%) In Colombia, our domestic gray cement volumes increased 2% during the second quarter of 2011 and remained flat during the first half of the year versus the comparable periods last year. Demand for building materials continued to be driven by the residential sector, especially from low?and?middle income housing development, supported by favorable macroeconomic conditions, low unemployment, and increased confidence. In addition, construction spending on infrastructure projects, mainly from road construction and maintenance, had a positive effect on volumes for the quarter. Our domestic gray cement volumes in the region as a whole increased 3% during the second quarter of 2011 and 4% during the first six months of the year versus the comparable periods of last year. 2011 Second Quarter Results Page 5

OPERATING RESULTS Asia January – June Second quarter l?t?l % l?t?l % 2011 2010 % Var. 2011 2010 % Var. Var.* Var.* Net sales 251 266 (6%) (11%) 129 142 (9%) (13%) Operating EBITDA 43 73 (41%) (43%) 22 40 (45%) (47%) Operating EBITDA margin 17.2 % 27.4% (10.2pp) 17.0 % 28.3% (11.3pp) In millions of US dollars, except percentages. Domestic gray cement Ready?mix Aggregates Year?over?year percentage January – June Second Quarter January ?June Second Quarter January ?June Second Quarter variation Volume (9%) (12%) (5%) (11%) (2%) (8%) Price (USD) (2%) (3%) 15% 15% 13% 14% Price (local currency) (6%) (8%) 7% 7% 4% 6% In CEMEX’s operations in the Philippines, domestic gray cement volumes decreased 20% during the second quarter of 2011 and 16% during the first half of 2011 compared with the same periods in 2010. Alongside the absence of election? related spending in 2010, demand for building materials was negatively affected by the government’s suspension of key infrastructure projects in its effort to clean up the bidding and disbursement of funds, as well as by the delay in the implementation of public?private partnerships projects. Activity from the residential sector remained slow given the implementation of a new series of initiatives meant to bring transparency and greater efficiency to the housing programs, which made access to funds more difficult. Performance from the industrial?and?commercial sector was stable. Remittances from overseas Filipinos continued to grow, albeit at a slower pace. Unfavorable weather conditions hampered construction activity, as the country experienced two consecutive typhoons. Our domestic gray cement volumes in the region as a whole decreased 12% during the second quarter of 2011 and 9% during the first six months of 2011 versus the comparable periods of last year. 2011 Second Quarter Results Page 6

OPERATING EBITDA, FREE CASH FLOW AND DEBT? RELATED INFORMATION Operating EBITDA and Free Cash Flow January ?June Second quarter 2011 2010 % Var. 2011 2010 % Var. Operating income 429 443 (3%) 258 295 (12%) + Depreciation and operating amortization 703 736 357 370 Operating EBITDA 1,132 1,179 (4%) 615 664 (7%) ?Net financial expense 619 542 315 267 ?Maintenance capital expenditures 86 92 64 64 ?Change in working capital 509 376 70 48 ?Taxes paid 152 146 86 97 ?Other cash items (net) 70 7 63 1 Free cash flow after maintenance capital expenditures (305) 16 N/A 18 187 (90%) ?Expansion capital expenditures 46 54 34 26 Free cash flow (351) (38) (827%) (16) 161 N/A In millions of US dollars, except percentages. The increase in debt during the second quarter of 2011 reflects the negative free cash flow generation, a negative foreign exchange conversion effect of US$91 million, and payment of coupons on the perpetual notes among other factors. Information on debt and perpetual notes Second quarter First quarter Second quarter 2011 2010 % Var. 2011 2011 2010 Total debt 17,251 16,587 4% 17,059 Currency denomination Short?term 2% 3% 0% US dollar 74% 67% Long?term 98% 97% 100% Euro 22% 23% Perpetual notes 1,177 1,290 (9%) 1,172 Mexican peso 3% 9% Cash and cash equivalents 675 748 (10%) 656 Other 1% 1% Net debt plus perpetual notes 17,753 17,129 (3%) 17,575 Interest rate Consolidated funded debt/EBITDA* 7.16 7.19 6.93 Fixed 55% 37% Variable 45% 63% Interest coverage* 1.87 2.00 1.96 In millions of US dollars, except percentages and ratios. * Starting in the second quarter of 2010, calculated in accordance with our contractual obligations under the Financing Agreement. On July 11, 2011, CEMEX closed a US$650 million reopening of its 9.00% Senior Secured Notes due 2018, which were originally issued on January 11, 2011 in an aggregate amount of US$1 billion. The additional notes were issued at a price of 97.616% of face value plus accrued interest. The net proceeds of the issuance of the additional notes will be used for general corporate purposes and the repayment of indebtedness, including indebtedness outstanding under CEMEX´s Financing Agreement, dated August 14, 2009, as amended, all in accordance with CEMEX’s debt contracts. 2011 Second 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 10,405,338,255 Less increase (decrease) in the number of CPOs held in subsidiaries 0 Stock?based compensation 8,036,425 End?of?quarter CPO?equivalent units outstanding 10,413,374,680 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 June 30, 2011, executives had outstanding options on a total of 91,920,314 CPOs, with a weighted?average strike price of approximately US$1.90 per CPO (equivalent to US$19.00 per ADS). Starting in 2005, CEMEX began offering executives a restricted stock?ownership program. As of June 30, 2011, our executives held 9,547,000 restricted CPOs, representing 0.1% 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. Second quarter First quarter Notional amounts (1) 2011 2010 2011 Equity (2) 2,969 1,647 3,142 Estimated aggregate fair market value (1) (3) 159 (58) 223 In millions of US dollars. 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 Financial Reporting Standards (“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 June 30, 2011, in connection with the fair market value recognition of its derivatives portfolio, CEMEX had recognized increases in assets and liabilities resulting in a net asset of US$196 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. As of June 30, 2011, the notional amount of this derivative was US$192 million, with a positive fair market value of approximately US$36 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 June 30, 2011, the fair value of such financial guarantee represents a liability of US$71 million, which is net of a collateral deposit of US$100 million. (3) Net of a cash collateral deposited under open positions. Cash collateral was US$100 million as of June 30, 2011. 2011 Second 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 percentages and ADS amounts) January—June Second Quarter INCOME STATEMENT like-to-like like-to-like 2011 2010 % Var. 2011 2010 % Var. % Var. * % Var. * Net Sales 7,461,941 6,804,324 10% 4% 4,090,984 3,762,241 9% 0% Cost of Sales (5,349,776) (4,856,413) (10%) (2,938,315) (2,633,978) (12%) Gross Profit 2,112,165 1,947,911 8% 2% 1,152,669 1,128,263 2% (7%) Selling, General and Administrative Expenses (1,683,599) (1,505,121) (12%) (894,855) (833,755) (7%) Operating Income 428,566 442,790 (3%) (12%) 257,814 294,508 (12%) (23%) Other Expenses, Net (275,164) (183,564) (50%) (201,900) (95,752) (111%) Operating Income After Other Expenses, Net 153,402 259,227 (41%) 55,914 198,756 (72%) Financial Expenses (701,470) (625,674) (12%) (354,997) (311,020) (14%) Financial Income 16,875 17,371 (3%) 6,507 10,977 (41%) Exchange Gain (Loss), Net 128,451 (44,163) N/A 17,716 (101,147) N/A Monetary Position Gain (Loss) 8,209 6,829 20% 5,963 6,878 (13%) Gain (loss) on Financial Instruments (66,041) (84,360) 22% (21,824) (43,484) 50% Total Comprehensive Financing (cost) Income (613,974) (729,997) 16% (346,635) (437,796) 21% Net Income Before Income Taxes (460,573) (470,770) 2% (290,721) (239,040) (22%) Income Tax (77,420) (121,081) 36% 12,789 (34,906) N/A Net Income Before Participation of Uncons. Subs. (537,992) (591,851) 9% (277,931) (273,946) (1%) Participation in Unconsolidated Subsidiaries (33,025) (50,321) 34% (14,814) (26,895) 45% Consolidated Net Income (Loss) (571,017) (642,172) 11% (292,746) (300,842) 3% Non-controlling interest Net Income (Loss) (994) 6,076 N/A 1,445 5,377 (73%) CONTROLLING INTEREST NET INCOME (LOSS) (570,023) (648,248) 12% (294,191) (306,219) 4% Operating EBITDA 1,131,976 1,179,231 (4%) (9%) 615,251 664,338 (7%) (15%) Earnings (Loss) per ADS (0.55) (0.65) 16% (0.28) (0.31) 8% As of June 30 BALANCE SHEET 2011 2010 % Var. Total Assets 42,386,879 42,837,321 (1%) Cash and Temporary Investments 674,801 747,590 (10%) Trade Accounts Receivables 1,419,647 1,043,036 36% Other Receivables 959,401 1,268,449 (24%) Inventories 1,386,762 1,344,031 3% Other Current Assets 230,435 242,743 (5%) Current Assets 4,671,046 4,645,848 1% Fixed Assets 18,975,809 18,398,670 3% Other Assets 18,740,025 19,792,803 (5%) Total Liabilities 25,406,624 25,306,112 0% Current Liabilities 4,165,022 3,994,465 4% Long-Term Liabilities 16,927,910 16,077,037 5% Other Liabilities 4,313,691 5,234,610 (18%) Consolidated Stockholders’ Equity 16,980,255 17,531,209 (3%) Non-controlling Interest and Perpetual Instruments 1,446,953 1,558,184 (7%) Stockholders’ Equity Attributable to Controlling Interest 15,533,302 15,973,025 (3%) 2011 Second 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, except percentages and per ADS amounts) January—June Second Quarter INCOME STATEMENT 2011 2010 % Var. 2011 2010 % Var. Net Sales 88,200,144 86,687,090 2% 47,455,418 47,893,327 (1%) Cost of Sales (63,234,358) (61,870,705) (2%) (34,084,457) (33,530,539) (2%) Gross Profit 24,965,786 24,816,385 1% 13,370,961 14,362,788 (7%) Selling, General and Administrative Expenses (19,900,140) (19,175,238) (4%) (10,380,314) (10,613,699) 2% Operating Income 5,065,646 5,641,147 (10%) 2,990,647 3,749,089 (20%) Other Expenses, Net (3,252,439) (2,338,600) (39%) (2,342,040) (1,218,924) (92%) Operating Income After Other Expenses, Net 1,813,206 3,302,547 (45%) 648,607 2,530,165 (74%) Financial Expenses (8,291,370) (7,971,086) (4%) (4,117,962) (3,959,282) (4%) Financial Income 199,468 221,310 (10%) 75,482 139,739 (46%) Exchange Gain (Loss), Net 1,518,295 (562,640) N/A 205,511 (1,287,596) N/A Monetary Position Gain (Loss) 97,031 87,007 12% 69,167 87,551 (21%) Gain (Loss) on Financial Instruments (780,602) (1,074,747) 27% (253,163) (553,557) 54% Total Comprehensive Financing (cost) Income (7,257,177) (9,300,156) 22% (4,020,965) (5,573,144) 28% Net Income Before Income Taxes (5,443,970) (5,997,609) 9% (3,372,358) (3,042,979) (11%) Income Tax (915,101) (1,542,575) 41% 148,354 (444,357) N/A Net Income Before Participation of Uncons. Subs. (6,359,071) (7,540,184) 16% (3,224,004) (3,487,336) 8% Participation in Unconsolidated Subsidiaries (390,353) (641,091) 39% (171,848) (342,378) 50% Consolidated Net Income (Loss) (6,749,424) (8,181,275) 18% (3,395,853) (3,829,713) 11% Non-controlling interest Net Income (Loss) (11,752) 77,404 N/A 16,759 68,450 (76%) CONTROLLING INTEREST NET INCOME (LOSS) (6,737,672) (8,258,679) 18% (3,412,612) (3,898,163) 12% Operating EBITDA 13,379,958 15,023,400 (11%) 7,136,910 8,457,017 (16%) Earnings (Loss) per ADS (6.59) (8.40) 22% (3.40) (3.97) 14% As of June 30 BALANCE SHEET 2011 2010 % Var. Total Assets 496,774,222 554,314,932 (10%) Cash and Temporary Investments 7,908,665 9,673,809 (18%) Trade Accounts Receivables 16,638,257 13,496,883 23% Other Receivables 11,244,178 16,413,724 (31%) Inventories 16,252,853 17,391,768 (7%) Other Current Assets 2,700,702 3,141,089 (14%) Current Assets 54,744,656 60,117,272 (9%) Fixed Assets 222,396,478 238,078,793 (7%) Other Assets 219,633,089 256,118,867 (14%) Total Liabilities 297,765,629 327,461,090 (9%) Current Liabilities 48,814,062 51,688,379 (6%) Long-Term Liabilities 198,395,106 208,036,858 (5%) Other Liabilities 50,556,460 67,735,853 (25%) Consolidated Stockholders’ Equity 199,008,593 226,853,842 (12%) Non-controlling Interest and Perpetual Instruments 16,958,291 20,162,899 (16%) Stockholders’ Equity Attributable to Controlling Interest 182,050,301 206,690,943 (12%) 2011 Second Quarter Results Page 10

OPERATING RESULTS Operating Summary per Country In thousands of U.S. dollars, except percentages January—June Second Quarter like-to-like like-to-like 2011 2010 % Var. 2011 2010 % Var. NET SALES % Var. * % Var. * Mexico 1,808,035 1,664,757 9% 1% 968,175 923,317 5% (4%) USA 1,126,034 1,235,698 (9%) (9%) 619,454 683,913 (9%) (9%) Northern Europe 2,328,813 1,876,072 24% 15% 1,354,158 1,096,053 24% 7% Mediterranean 912,587 923,163 (1%) (4%) 476,944 476,964 (0%) (6%) South / Central America and Caribbean 845,100 712,036 19% 16% 441,655 359,549 23% 19% Asia 251,004 266,099 (6%) (11%) 129,306 141,647 (9%) (13%) Others and intercompany eliminations 190,369 126,498 50% 50% 101,291 80,797 25% 25% TOTAL 7,461,941 6,804,324 10% 4% 4,090,984 3,762,241 9% 0% GROSS PROFIT Mexico 894,990 807,494 11% 3% 472,812 444,203 6% (3%) USA (64,893) (14,956) (334%) (334%) (13,358) 12,916 N/A N/A Northern Europe 538,486 392,299 37% 27% 360,042 302,343 19% 4% Mediterranean 330,295 330,978 (0%) (1%) 171,191 180,343 (5%) (10%) South / Central America and Caribbean 335,266 317,836 5% 3% 174,884 159,502 10% 5% Asia 73,036 97,757 (25%) (29%) 37,857 53,363 (29%) (33%) Others and intercompany eliminations 4,983 16,502 (70%) (70%) (50,759) (24,407) (108%) (108%) TOTAL 2,112,165 1,947,911 8% 2% 1,152,669 1,128,263 2% (7%) OPERATING INCOME Mexico 528,199 505,264 5% (3%) 272,503 284,301 (4%) (13%) USA (354,088) (325,104) (9%) (9%) (163,050) (144,359) (13%) (13%) Northern Europe 25,160 (59,102) N/A N/A 80,134 34,830 130% 98% Mediterranean 186,930 209,762 (11%) (10%) 97,479 120,423 (19%) (21%) South / Central America and Caribbean 197,093 211,117 (7%) (9%) 102,534 106,351 (4%) (7%) Asia 33,299 62,555 (47%) (48%) 17,720 34,802 (49%) (51%) Others and intercompany eliminations (188,028) (161,702) (16%) (12%) (149,505) (141,840) (5%) 1% TOTAL 428,566 442,790 (3%) (12%) 257,814 294,508 (12%) (23%) 2011 Second Quarter Results Page 11

OPERATING RESULTS Operating Summary per Country In thousands of U.S. dollars except operating EBITDA margin, which is shown as a percentage of net sales, and percentages January—June Second Quarter like-to-like like-to-like 2011 2010 % Var. 2011 2010 % Var. OPERATING EBITDA % Var. * % Var. * Mexico 600,730 579,195 4% (4%) 309,283 321,267 (4%) (12%) USA (70,229) (6,813) (931%) (931%) (22,294) 16,565 N/A N/A Northern Europe 161,561 71,062 127% 110% 151,551 99,604 52% 32% Mediterranean 240,733 264,072 (9%) (9%) 124,914 146,668 (15%) (18%) South / Central America and Caribbean 241,378 254,321 (5%) (8%) 124,803 128,028 (3%) (6%) Asia 43,069 73,018 (41%) (43%) 21,922 40,057 (45%) (47%) Others and intercompany eliminations (85,266) (55,625) (53%) (41%) (94,927) (87,852) (8%) 3% TOTAL 1,131,976 1,179,231 (4%) (9%) 615,251 664,338 (7%) (15%) OPERATING EBITDA MARGIN Mexico 33.2% 34.8% 31.9% 34.8% USA (6.2%) (0.6%) (3.6%) 2.4% Northern Europe 6.9% 3.8% 11.2% 9.1% Mediterranean 26.4% 28.6% 26.2% 30.8% South / Central America and Caribbean 28.6% 35.7% 28.3% 35.6% Asia 17.2% 27.4% 17.0% 28.3% TOTAL 15.2% 17.3% 15.0% 17.7% 2011 Second 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—June Second quarter 2011 2010 % Var. 2011 2010 % Var. Consolidated cement volume * 33,029 32,368 2% 17,783 17,923 (1%) Consolidated ready-mix volume 26,436 24,287 9% 14,156 13,530 5% Consolidated aggregates volume 77,763 75,592 3% 42,592 43,090 (1%) Per-country volume summary January—June Second quarter Second quarter 2011 Vs. DOMESTIC GRAY CEMENT VOLUME 2011 Vs. 2010 2011 Vs. 2010 First quarter 2011 Mexico 2% 3% 16% U.S.A. (7%) (10%) 23% Northern Europe 18% 7% 50% Mediterranean (3%) (5%) 8% South / Central America and Caribbean 4% 3% 0% Asia (9%) (12%) (1%) READY-MIX VOLUME Mexico 14% 13% 8% U.S.A. (12%) (14%) 12% Northern Europe 17% 8% 29% Mediterranean 6% 3% (1%) South / Central America and Caribbean 16% 23% 15% Asia (5%) (11%) 5% AGGREGATES VOLUME Mexico 5% 3% 9% U.S.A. (12%) (12%) 17% Northern Europe 11% 3% 35% Mediterranean (4%) (8%) 1% South / Central America and Caribbean 29% 25% 11% Asia (2%) (8%) 1% * Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. 2011 Second Quarter Results Page 13

OPERATING RESULTS Price Summary Variation in U.S. Dollars January—June Second quarter Second quarter 2011 Vs. DOMESTIC GRAY CEMENT PRICE 2011 Vs. 2010 2011 Vs. 2010 First quarter 2011 Mexico 11% 11% 0% U.S.A. (1%) (0%) 1% Northern Europe (*) 11% 17% 3% Mediterranean (*) (3%) (1%) (0%) South / Central America and Caribbean (*) 6% 9% 6% Asia (*) (2%) (3%) (0%) READY-MIX PRICE Mexico 14% 16% 6% U.S.A. 2% 3% 2% Northern Europe (*) 11% 16% (1%) Mediterranean (*) 4% 9% 4% South / Central America and Caribbean (*) 7% 9% 4% Asia (*) 15% 15% 2% AGGREGATES PRICE Mexico 22% 25% 7% U.S.A. 7% 9% 4% Northern Europe (*) 11% 16% (3%) Mediterranean (*) 13% 19% 6% South / Central America and Caribbean (*) (3%) (1%) 5% Asia (*) 13% 14% 3% (*) Volume weighted-average price. 2011 Second Quarter Results Page 14

OPERATING RESULTS Price Summary Variation in Local Currency January—June Second quarter Second quarter 2011 Vs. DOMESTIC GRAY CEMENT PRICE 2011 Vs. 2010 2011 Vs. 2010 First quarter 2011 Mexico 3% 1% (3%) U.S.A. (1%) (0%) 1% Northern Europe (*) 1% 1% (1%) Mediterranean (*) (3%) (4%) (2%) South / Central America and Caribbean (*) 3% 5% 4% Asia (*) (6%) (8%) (1%) READY-MIX PRICE Mexico 6% 5% 2% U.S.A. 2% 3% 2% Northern Europe (*) 2% 1% (5%) Mediterranean (*) (2%) (1%) (1%) South / Central America and Caribbean (*) 4% 5% 2% Asia (*) 7% 7% 1% AGGREGATES PRICE Mexico 13% 14% 3% U.S.A. 7% 9% 4% Northern Europe (*) 2% 2% (7%) Mediterranean (*) 5% 5% 1% South / Central America and Caribbean (*) (5%) (5%) 3% Asia (*) 4% 6% 1% (*) Volume weighted-average price. 2011 Second Quarter Results Page 15

OTHER ACTIVITIES CEMEX launches its first global ready? mix concrete brand: CEMEX reconfirms its 25% reduction target by 2015. Promptis® ?? CEMEX significantly increased its use of lower? carbon On April 5, 2011, CEMEX announced the launch of its first global alternative fuels. In 2010 CEMEX´s rate of alternative?brand of ready? mix concrete, Promptis®. The rapid? hardening, fuel use rose to 20.3% of total fuel mix, almost doubling fast? formwork removal concrete technology is already being sold from the 10.3% recorded in 2008. CEMEX has in France, UK, Ireland, Israel, Spain, and Croatia and is expected introduced a new 2015 target of a 35% substitution rate to be made available in Austria, Poland, Latvia, UAE, and Hungary for alternative fuels, the most ambitious commitment starting in the second half of 2011. in the cement industry. Promptis® is able to reach early compressive strength in as fast as ?? CEMEX, in coordination with BirdLife International, 4 hours, compared with an average of 18 hours in conventional completed a multi? year scoping study on the concrete. Despite its rapid? hardening properties, Promptis® has biodiversity status of worldwide cement and aggregates been designed to retain workability for over 90 minutes, thus operations. The study assessed 543 sites and identified allowing the material to be easily handled without the risk of 131 sites that overlap with areas of high biodiversity sudden hardening, even under extremely hot weather. Its value. This study is being used to develop biodiversity strength develops in a progressive manner as the concrete ages, action plans. With 85% of all CEMEX quarries having resulting in a highly durable material that also exhibits a good rehabilitation plans in place in 2010, CEMEX remains on resistance to shrinkage cracking. track to achieve its target of 100% by 2015. Promptis® uses CEMEX’s proprietary cutting? edge admixture ?? During 2010, CEMEX continued to execute initiatives to technology, and CEMEX will be able to offer the concrete build affordable housing and infrastructure in technology at any of its ready? mix plants, providing a reliable developing markets. In 2010, more than 45,000 families product that meets its customers’ performance expectations. were able to build or improve their homes through the Patrimonio Hoy program, bringing the total to more Promptis® technology is the result of two years of research than 300,000 since the program began in 1998. With activities carried out by scientists at the CEMEX Research Group turnkey infrastructure development programs, CEMEX AG in Switzerland. The global offering of Promptis® has been completed over 10 million square meters in urban possible thanks to a strict industrialization process that ensures concrete paving in 2010. the transfer of technology through a close collaboration between Research and Development and Operations. Promptis® complies ?? 2010 witnessed a number of extreme weather events with specifications established by norms and standards and natural disasters that severely affected countries worldwide. and communities where CEMEX operates. In response, CEMEX intensified its disaster relief efforts, providing CEMEX announces significant progress in sustainable emergency humanitarian aid and supporting long term development commitments reconstruction efforts in different countries in different On April 14, 2011, CEMEX announced significant progress in many situations, such as the Haiti earthquake, flooding in key performance indicators related to its global sustainable Central Europe, and the impact of Hurricane Alex on development strategy, highlighting important achievements in Northern Mexico. major areas such as sustainable construction, workplace safety, ?? An integral part of CEMEX’s sustainability commitment environment and climate change, biodiversity and wilderness is the continuing, company? wide effort to improve preservation, and CEMEX’s contribution to the communities workplace and community safety. In 2010, CEMEX where it operates. Key highlights include: achieved a 19% reduction in its employee lost? time ?? CEMEX intensified its work to improve the qualities of incident rate to 2.6 incidents per million hours worked. concrete to build on its characteristics as the most In 2011 we intend to implement a new CEMEX Health inherently sustainable building material. Led by its and Safety Management System and we intend to Global Center for Technology and Innovation in continue the worldwide rolling out of our LEGACY Switzerland, CEMEX technology centers around the training program, both aimed at facilitating CEMEX world are creating a range of innovative concrete moving towards its ultimate goal of zero incidents. products to meet the construction industry’s growing If you want to know more about CEMEX’s sustainability strategy demand for high? performance, low? carbon building and efforts, please review CEMEX’s 2010 Sustainable solutions. Development Report, which achieved a GRI? checked application ?? CEMEX introduced a carbon footprint tool, the first of level of A+ for the third consecutive year and is available online at its kind in the building materials industry, that allows http://www.cemex.com/sustainability measuring the greenhouse gas emissions of our cement, ready? mix, and aggregates products. The tool has already been implemented in all of CEMEX’s operating cement plants, and is now being extended across ready? mix and aggregates operations worldwide. As a result, CEMEX expects to begin to roll? out carbon content information for its products during 2011. ?? CEMEX achieved a 20.5% reduction in CO2 net emissions per ton of cement produced relative to its 1990 baseline, allowing the avoidance of yearly emissions equivalent to that of 1.2 million vehicles. 2011 Second Quarter Results Page 16

OTHER INFORMATION Mexican Tax Reform 2010 Other $46 In November 2009, the Mexican Congress approved amendments to Balance at the end of the period $860 the income tax law that became effective on January 1, 2010. The new law included changes to the tax consolidation regime that will As of December 31, 2010, the balance of tax loss carryforwards that require CEMEX, among other things, to determine income taxes as if have not been considered in the tax consolidation is approximately the tax consolidation provisions in Mexico did not exist from 1999 US$463 million. As of December 31, 2010, the estimated payment onward. These changes also required the payment of taxes on schedule of taxes payable resulting from changes in the tax dividends between entities of the tax consolidation group consolidation regime in Mexico was as follows (approximate US$ (specifically, dividends paid from profits that were not taxed in the Millions): past), certain special items in the tax consolidation, as well as tax 2010 loss carryforwards generated by entities within the consolidated tax 2011 $43* group that should had been recovered by such individual entities 2012 $57 over the succeeding 10 years. This new law increased the statutory 2013 $57 income tax rate from 28% to 30% for the years 2010 to 2012, 29% 2014 $165 for 2013, and decreasing to 28% for 2014 and future years. Pursuant 2015 $174 to the new tax law, the Parent Company was required to pay in 2010 2016 and thereafter $365 (at the new 30% tax rate) 25% of the tax resulting from eliminating $860 the tax consolidation effects from 1999 to 2004. The remaining 75% * The payment for 2011 was made on March 31, 2011 for Ps506 million, equivalent to approximately US$42.52 million. This payment included 25% of the is required to be paid as follows: 25% in 2011, 20% in 2012, 15% in amount that corresponds to the year 2005. 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 Effects of the nationalization of CEMEX Venezuela on our financial succeeding five years in the same proportions (25%, 25%, 20%, 15%, statements and 15%), and in this context the consolidation effect for 2005 has Our consolidated balance sheets as of June 30, 2011 presented already been notified to CEMEX and considered. Applicable taxes elsewhere in this quarterly report, include within “Other Assets” our net payable as a result of the changes to the tax consolidation regime investment in our confiscated Venezuelan assets as of the same dates. will be increased by inflation as required by the Mexican income tax Our net investment in our Venezuelan assets as of June 30, 2011 is as law. As of December 31, 2009, based on Interpretation 18, the follows: Parent Company recognized the nominal value of estimated taxes Millions of pesos June 30, 2011 payable in connection with the aforementioned amendments in the Net total assets MXN5,174 law for approximately US$799 million. This amount was recognized by the Parent Company as a tax payable on its balance sheet against Accounting effects related to the exercise of Ready Mix USA’s put “Other non? current assets” for approximately US$628 million, in option connection with the net liability recognized before the new tax law In relation to CEMEX’s joint ventures with Ready Mix USA, a) CEMEX and that the Parent Company expects to realize in connection with Southeast, LLC, the joint venture owned at 50.01% by CEMEX; and b) the payment of this tax liability; and approximately US$171 million Ready Mix USA LLC, the joint venture owned at 50.01% by Ready against “Retained earnings” for the portion, according to the new Mix USA, on September 30, 2010, Ready Mix USA exercised its put law, related to: a) the difference between the sum of the equity of option. As a result, upon closing of the transaction, which will take the controlled entities for tax purposes and the equity for tax place upon performance of the obligations by both parties under the purposes of the consolidated entity; b) dividends from the put option agreement, and that is expected in September 2011, controlled entities for tax purposes to CEMEX, S.A.B. de C.V.; and c) CEMEX will acquire its venture partner’s interests in the two joint other transactions between the companies included in the tax ventures. The purchase price for CEMEX’s partner’s interests consolidation that represented the transfer of resources within such including a non? compete agreement is expected to be group. In December 2010, pursuant to additional rules, the tax approximately US$355 million. Ready Mix USA will continue to authorities eliminated certain aspects in the law in connection with manage the joint venture in which it has a majority interest (Ready the taxable amount for the difference between the sum of the Mix USA LLC) until the closing of the transaction. As of June 30, equity of the controlled entities for tax purposes and the equity for 2011, CEMEX has not recognized a liability, as the fair value of the tax purposes of the consolidated entity. As a result, the Parent net assets exceeds the estimated purchase price. Had the purchase Company reduced its estimated tax payable by approximately price exceeded the fair value of the net assets to be acquired, a loss US$235 million against a credit to “Retained earnings.” In 2010, would have been recognized. As of June 30, 2011, Ready Mix USA, changes in the Parent Company’s tax payable associated to the tax LLC had approximately US$27.4 million (unaudited) in net debt (debt consolidation in Mexico are as follows (approximate US$ Millions): less cash and cash equivalents), which will be consolidated upon 2010 closing of the transaction. Balance at the beginning of the period $846 Income tax received from subsidiaries $213 Restatement for the period $31 Payments during the period ($28) Deduction associated with additional tax rules ($248) 2011 Second Quarter Results Page 17

OTHER INFORMATION Migration of CEMEX to International Financial Reporting Standards 2 Inventories Asset Certain items within this in 2012 account, such as Based on requirements issued in 2009 by the Mexican National advanced payments, and Banking and Securities Commission, all entities that trade their certain spare parts will be securities in the Mexican Stock Exchange must adopt the reclassified to advance International Financial Reporting Standards (“IFRS”) for the payments and fixed preparation of their consolidated financial statements no later than assets, respectively. January 1, 2012. CEMEX began the planning of its IFRS migration 3 Fixed Assets Asset The valuation of CEMEX´s process during the last quarter of 2009. In summary, the status of major fixed assets at fair CEMEX’s IFRS migration process as of June 30, 2011, was as follows: value is expected to cause the most significant effect Stage 1. Communication to the organization and IFRS training in the consolidated Activities undertaken and finalized between November 2009 and balance sheet as of the June 2010. Jointly with its external consultants for the IFRS transition date. migration project, CEMEX designed and implemented specific IFRS 4 Deferred income Liability The account is expected training programs for the team involved directly in the generation of taxes to increase as of the financial information, the corporate support team, and the transition date mainly personnel in the business units. These training programs consisted due to the revaluation of of: a) mandatory self?training based on a specialized Intranet; b) fixed assets as mentioned training based in webcasts oriented to a wide?range of personnel, by above. means of which, experts covered a variety of significant topics for 5 Total Equity Based on IFRS 1, some CEMEX; and c) face?to?face training sessions for key personnel Stockholders´Equity IFRS first time adoption directly involved in the determination and quantification of the main effects as of the transition differences between IFRS and Mexican FRS. date are recognized directly against retained Stage 2. Evaluation of accounting and business impacts earnings, such as the CEMEX concluded the documentation phase of this stage in fixed assets revaluation, November 2010. CEMEX elected to prepare its initial balance sheet net of their deferred under IFRS as of January 1, 2010, in order to report three years of taxed effect. operations under IFRS at the 2012 year end. Based on IFRS 1, “IFRS First Time Adoption,” for purposes of the initial balance sheet, Finally, to conclude the Stage 2, CEMEX now expects to complete external appraisers are currently finalizing the valuation of CEMEX’s the adaptation of its transactional systems for the ongoing main fixed assets at fair value. As allowed by IFRS 1, CEMEX elected generation of information under IFRS during the fourth quarter of not to revisit the accounting treatment of business acquisitions 2011. made before January 1, 2010. Stage 3. Parallel financial information generation under IFRS CEMEX now expects to fully conclude its initial balance sheet under During the third quarter of 2011, CEMEX will undertake the IFRS during the third quarter 2011. With the information available as preparation of its consolidated financial statements under IFRS for of June 30, 2011, the expected impacts, by account, to the the years 2010 and 2011. Although CEMEX has not yet finished the consolidated balance sheet as of January 1, 2010, are as follows: calculation of its initial IFRS balance sheet amounts, the expected main impacts as a result of the revaluation of its main fixed assets to No. Account Type Explanation fair value as of the migration date, are changes in the non?cash 1 Accounts Asset An increase in both depreciation and depletion amounts in CEMEX’s IFRS statements of receivables / Other Liability accounts is expected as a operations for the years 2010 and each year thereafter, as financial result of the current compared to those previously reported under Mexican FRS. obligations securitization programs, which are not expected to comply with all the IFRS 39 derecognition requirements; consequently, any resources obtained under these programs would be recognized against a liability. 2011 Second Quarter Results Page 18

DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation, consolidation, Definition of terms and presentation of results Free cash flow equals operating EBITDA minus net interest expense, Under MFRS, beginning January 1, 2008, CEMEX translates the maintenance and expansion capital expenditures, change in working financial statements of those foreign subsidiaries operating in low? capital, taxes paid, and other cash items (net other expenses less inflation environments using exchange rates at the reporting date for proceeds from the disposal of obsolete and/or substantially depleted the balance sheet and the exchange rates at the end of each month operating fixed assets that are no longer in operation and coupon for the income statement, while for foreign subsidiaries operating in payments on our perpetual notes). high?inflation environments, CEMEX uses the exchange rates at the Maintenance capital expenditures are investments completed with reporting date for the balance sheet and income statement. CEMEX the purpose of ensuring the company’s operational continuity. These reports its consolidated results in Mexican pesos. includes replacement capital expenditures, which are projects required to change obsolete assets or maintain current operational levels, and For the reader’s convenience, beginning June 30, 2008, US dollar mandatory capital expenditures, which are projects required to comply amounts for the consolidated entity are calculated by converting the with governmental regulations or company policies. nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter. The exchange rates Net debt equals total debt minus cash and cash equivalents, and used to convert results for second quarter 2011 and second quarter does not include our obligations in respect of our perpetual notes 2010 are 11.60 and 12.73 Mexican pesos per US dollar, respectively. and loans, which are treated as equity obligations under Mexican financial reporting standards. Per?country/region figures are presented in US dollars for the reader’s Operating EBITDA equals operating income plus depreciation and convenience. Figures presented in US dollars for Mexico as of June 30, operating amortization. 2011, and June 30, 2010, can be converted into their original local pp equals percentage points currency amount by multiplying the US?dollar figure by the Strategic capital expenditures are investments completed with the corresponding average exchange rates for 2011 and 2010, provided purpose of increasing the company’s profitability. These includes below. growth capital expenditures, which are designed to increase profitability by expanding capacity, and margin improvement capital expenditures, Breakdown of regions which are designed to increase profitability by reducing costs. Northern Europe includes operations in Austria, the Czech Republic, Working capital equals operating accounts receivable (including Denmark, Finland, France, Germany, Hungary, Ireland, Latvia, other current assets received as payment in kind) plus historical Norway, Poland, Sweden, and the United Kingdom. inventories minus operating payables. The Mediterranean region includes operations in Croatia, Egypt, Israel, Spain, and the United Arab Emirates. Earnings per ADS The South/Central America and Caribbean region includes CEMEX’s The number of average ADSs outstanding used for the calculation of operations in Argentina, Colombia, Costa Rica, the Dominican earnings per ADS was 1,040.8 million for second quarter 2011, Republic, El Salvador, Guatemala, Jamaica, Nicaragua, Panama, and 1,040.7 million for year?to?date 2011, 998.4 million for second Puerto Rico, as well as trading operations in the Caribbean region. quarter 2010, and 947.9 million for year?to?date 2010. The Asia region includes operations in Bangladesh, China, Malaysia, the Philippines, Taiwan, and Thailand. According to the Mexican NIF B?14 Earnings per share, the weighted? average number of common shares outstanding is determined Disclosure on cement volumes As of the second quarter 2010, we changed our reporting base for considering the number of days during the accounting period in our cement volumes from total domestic cement including gray and which the shares have been outstanding, including shares derived white cement, mortar and clinker to domestic gray cement, except from corporate events that have modified the stockholder’s equity where indicated. 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 ?June Second quarter 2011 2010 2011 2010 Average Average Average Average Mexican peso 11.82 12.74 11.60 12.73 Euro 0.7054 0.76371 0.6881 0.79601 British pound 0.6177 0.65781 0.6105 0.67101 Amounts provided in units of local currency per US dollar. 1 The euro?US dollar and British pound?US dollar average exchange rates disclosed in the 2Q10 report were incorrect. The above table shows the corrected figures. 2011 Second Quarter Results Page 19