EX-2 3 d247611dex2.htm THIRD QUARTER 2011 RESULTS

Exhibit 2

2011

THIRD 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 – September Third quarter

2011 2010 % Var. 2011 2010 % Var.

% Var.* % Var.*

Consolidated cement volume

(thousand metric tons) 50,483 49,543 2% 17,454 17,170 2%

Consolidated ready?mix volume

(thousand cubic meters) 40,949 37,997 8% 14,513 13,710 6%

Consolidated aggregates volume 120,979 119,764 1% 43,216 44,172 (2%)

(thousand metric tons)

Net sales 11,437 10,577 8% 3% 3,967 3,765 5% 1%

Gross profit 3,303 3,047 8% 2% 1,186 1,097 8% 4%

Gross profit margin 28.9% 28.8% 0.1pp 29.9% 29.1% 0.8pp

Operating income 737 728 1% (4%) 305 284 7% 6%

Operating Income margin 6.4% 6.9% (0.5pp) 7.7% 7.6% 0.1pp

Consolidated net income (loss) (1,418) (728) (95%) (823) (86) (853%)

Controlling interest net income (1,416) (737) (92%) (822) (89) (821%)

(loss)

Operating EBITDA 1,794 1,829 (2%) (6%) 658 649 1% (1%)

Operating EBITDA margin 15.7% 17.3% (1.6pp) 16.6% 17.2% (0.6pp)

Free cash flow after (23) 268 N/A 263 250 5%

maintenance capital expenditures

Free cash flow (102) 191 N/A 231 228 1%

Net debt plus perpetual notes 17,719 17,265 3% 17,719 17,265 3%

Total debt 17,294 16,775 3% 17,294 16,775 3%

Total debt plus perpetual notes 18,455 18,103 2% 18,455 18,103 2%

Earnings (loss) per ADS (1.36) (0.74) (84%) (0.79) (0.09) (782%)

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

Average ADSs outstanding 1,041.5 988.9 5% 1,042.9 999.7 4%

Employees 44,870 46,881 (4%) 44,870 46,881 (4%)

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 third quarter of 2011 increased to US$3,967 million, representing an increase of 5% compared with the third quarter of 2010, or an increase of 1% on a like-to-like basis for the ongoing operations. The increase in consolidated net sales was due to higher sales in our Northern European, South/Central America and Caribbean, and US 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 decreased by 0.8 percentage points during the third quarter of 2011 compared to the same period last year. The decrease in cost of sales as a percentage of net sales was mainly the result of higher prices in our Mexican, Northern European, and South/Central America and Caribbean regions which offset the increase in fuel and raw materials costs.

Selling, general and administrative (SG&A) expenses as a percentage of net sales increased 0.6 percentage points during the third quarter of 2011 compared with the same period last year, from 21.6% to 22.2%. The increase in SG&A expenses during the quarter was the result of higher distribution expenses, which were partially offset by our cost reduction initiatives.

Operating EBITDA increased 1% to US$658 million during the third quarter of 2011 compared with the same period last year. The increase was due mainly to higher contributions from our South/Central America and Caribbean, and Northern European operations, and our cost reduction initiatives. On a like-to-like basis for the ongoing operations, operating EBITDA decreased 1% in the third quarter of 2011 compared with the same period last year.

Operating EBITDA margin decreased 0.6 percentage points, from 17.2% in the third quarter of 2010 to 16.6% 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.

Other expenses, net, for the quarter were US$93 million, which included mainly severance payments related to our transformation process and provisions for legal settlements.

Exchange gain (loss), net, for the quarter was a loss of US$217 million, resulting mainly from the depreciation of the euro and Mexican peso against the US dollar.

Gain (loss) on financial instruments for the quarter was a loss of US$339 million, resulting mainly from our equity derivatives related to CEMEX shares.

Controlling interest net income (loss) was a loss of US$822 million in the third quarter of 2011, versus a loss of US$89 million in the third quarter of 2010. This year’s loss reflects higher foreign exchange loss and higher loss in our financial instruments, which were partially offset by higher operating income.

Total debt plus perpetual notes increased US$27 million during the quarter.

2011 Third Quarter Results

Page 2

OPERATING RESULTS

Mexico

January – September Third quarter

ltl % ltl %

2011 2010 % Var. 2011 2010 % Var.

Var.* Var.*

Net sales 2,661 2,534 5% (0%) 856 868 (1%) (3%)

Operating EBITDA 885 866 2% (3%) 285 286 (0%) (2%)

Operating EBITDA margin 33.2% 34.2% (1.0pp) 33.3% 33.0% 0.3pp

In millions of US dollars, except percentages.

Domestic gray cement Ready mix Aggregates

Year over year percentage January – January January

Third Quarter Third Quarter Third Quarter

variation September September September

Volume 1% (1%) 13% 10% 3% (0%)

Price (USD) 9% 5% 11% 7% 19% 15%

Price (local currency) 3% 3% 5% 5% 13% 13%

CEMEX’s domestic gray cement volumes in Mexico decreased 1% during the third quarter of 2011 versus the same period last year, while ready-mix volumes increased 10% over the same period. For the first nine months of the year, domestic gray cement volumes increased 1% while ready-mix volumes increased 13% versus the comparable period a year ago. Demand for building materials during the quarter was driven by the decline in volumes from the residential sector, mainly from low and middle-income housing. Performance from the self-construction sector remained flat. The infrastructure and industrial-and-commercial sectors continued with their positive trend. The industrial-and-commercial sector has been supported by construction demand from the manufacturing sector.

United States

January – September Third quarter

l t l % l t l %

2011 2010 % Var. 2011 2010 % Var.

Var.* Var.*

Net sales 1,839 1,919 (4%) (9%) 713 683 4% (4%)

Operating EBITDA (80) (9) (811%) (2,081%) (10) (2) (405%) N/A

Operating EBITDA margin (4.4%) (0.5%) (3.9pp) (1.4%) (0.3%) (1.1pp)

In millions of US dollars, except percentages.

Domestic gray cement Ready mix Aggregates

Year over year percentage January – January January

Third Quarter Third Quarter Third Quarter

variation September September September

Volume (4%) 2% (5%) 9% (11%) (10%)

Price (USD) (1%) 0% 2% 4% 9% 12%

Price (local currency) (1%) 0% 2% 4% 9% 12%

Domestic gray cement and ready-mix volumes for CEMEX’s operations in the United States increased 2% and 9%, respectively, while aggregates volumes decreased 10% during the third quarter of 2011 versus the same period of 2010. For the first nine months of the year, domestic gray cement, ready-mix, and aggregates volumes decreased 4%, 5%, and 11% respectively, versus the comparable period last year. The consolidation of the Ready Mix USA joint venture as of September resulted in higher ready-mix and aggregates volumes. On a like-to-like basis for the ongoing operations, ready-mix and aggregates volumes decreased 3% and 8%, respectively, during the quarter and decreased 10% and 7%, respectively, for the first nine months of the year versus the comparable period last year. The increase in cement sales volumes for the quarter reflects a

slightly better performance during the period in some markets. Construction activity in the residential sector remains relatively stagnant due to excess inventory, tight credit conditions, weak job creation, and low confidence in the economic outlook. Continued weakness in state fiscal conditions and uncertainty over federal funding affected the infrastructure sector. Activity from the industrial-and-commercial sector continues to improve.

2011 Third Quarter Results

Page 3

OPERATING RESULTS

Northern Europe

January – September Third quarter

l t l % l t l %

2011 2010 % Var. 2011 2010 % Var.

Var.* Var.*

Net sales 3,633 3,065 19% 10% 1,302 1,190 9% 3%

Operating EBITDA 333 221 50% 40% 170 151 13% 7%

Operating EBITDA margin 9.2% 7.2% 2.0pp 13.1% 12.7% 0.4pp

In millions of US dollars, except percentages.

Domestic gray cement Ready mix Aggregates

Year over year percentage January – January January

Third Quarter Third Quarter Third Quarter

variation September September September

Volume 12% 2% 12% 3% 6% (1%)

Price (USD) 9% 7% 10% 8% 10% 9%

Price (local currency) 1% 2% 2% 2% 3% 4%

CEMEX’s domestic gray cement, ready-mix, and aggregates volumes in the United Kingdom operations decreased 4%, 1%, and 4%, respectively, during the third quarter of 2011 versus the same period in 2010. For the first nine months of the year our domestic gray cement, ready-mix, and aggregates volumes increased 5%, 12%, and 4%, respectively, versus the comparable period in the previous year. The main driver of construction activity during the quarter continued to be the infrastructure sector, although we have perceived a slowdown given public sector spending cuts. The residential market has showed little sign of improvement, as market conditions remain difficult. In addition, the industrial-and-commercial sector was adversely affected by subdued economic activity.

In CEMEX’s operations in France, ready-mix and aggregates volumes increased 1% and 3%, respectively, during the third quarter of 2011 versus the same period in 2010. For the first nine months of the year, ready-mix and aggregates volumes increased 12% and 10%, respectively, versus the same period last year. Demand for building materials continued to be driven by the residential sector, supported by the economic stimulus plan measures, such as social housing, tax advantages and zero-rate loans. Sales volumes from the infrastructure sector remained stable, driven mainly by private investments, which offset the drop in public investments. Increase in permits from the industrial-and-commercial sector had a positive effect on volumes for the quarter.

In Germany, our domestic gray cement volumes increased 4% during the third quarter of 2011 and 14% during the first nine months of the year versus the same periods last year. Sales volumes during the quarter were supported by acceleration in residential building permits due to historically low mortgage rates, stable construction prices, shrinking unemployment, and higher wages. Performance from the industrial-and-commercial sector benefited from the ongoing strength in the manufacturing sector as well as rising capacity utilization. Activity from the infrastructure sector had a slight decrease due to cuts in the national budget.

CEMEX’s domestic gray cement volumes in Poland increased 3% during the third quarter of 2011 and 16% during the first nine months of the year versus the comparable periods of last year. Investment in the infrastructure sector was supported by the EU structural funds for infrastructure spending. Spending in construction of highways and express roads by the government continued. Construction permits from the industrial-and-commercial sector continued with its positive trend backed by favorable economic activity. The overall housing market in Poland continues to be stable. In addition, demand for building materials was affected by unfavorable weather conditions during the month of July. Our domestic gray cement volumes in the Northern Europe region increased 2% during the third quarter of 2011 and 12% for the first nine months of the year versus the same periods in 2010.

2011 Third Quarter Results

Page 4

OPERATING RESULTS

Mediterranean

January – September Third quarter

l t l % l t l %

2011 2010 % Var. 2011 2010 % Var.

Var.* Var.*

Net sales 1,337 1,371 (2%) (5%) 424 448 (5%) (7%)

Operating EBITDA 345 409 (16%) (16%) 104 145 (28%) (29%)

Operating EBITDA margin 25.8% 29.9% (4.1pp) 24.6% 32.4% (7.8pp)

In millions of US dollars, except percentages.

Domestic gray cement Ready mix Aggregates

Year over year percentage January – January January

Third Quarter Third Quarter Third Quarter

variation September September September

Volume (7%) (14%) 4% (1%) (5%) (7%)

Price (USD) (3%) (4%) 5% 7% 13% 12%

Price (local currency) (3%) (4%) (0%) 2% 5% 5%

CEMEX’s domestic gray cement and ready-mix volumes in Spain decreased 27% and 31%, respectively, during the third quarter of 2011 compared with the same period last year. For the first nine months of the year, domestic gray cement and ready-mix volumes each decreased 12%. Volumes for the quarter continued to be affected by significantly weaker demand in all of our markets, especially in Catalonia, Aragón and Baleares. High inventory levels and lack of credit availability continued to affect the performance from the housing sector, with permits at all time low levels. Activity from the infrastructure sector remained stagnant and at very low levels due to a lack of infrastructure resources and cuts in the national budget. Demand from the industrial-and-commercial sector during the quarter remains depressed given weak domestic economic activity and tighter credit.

In CEMEX’s operations in Egypt, domestic gray cement volumes decreased 5% during the third quarter of 2011 and 4% during the first nine months of the year versus the comparable periods of last year. During the quarter, the overall business environment continued to be challenging as a result of the ongoing political unrest. In the infrastructure sector, most of the projects are on hold due to a reduction in government expenditures. Spending from other demand segments is stagnant as a result of heightened uncertainty given the current political situation.

Our domestic gray cement volumes in the Mediterranean region decreased 14% during the third quarter of 2011 and 7% for the first nine months of the year versus the same periods in 2010.

South/Central America and the Caribbean

January – September Third quarter

l t l % l t l %

2011 2010 % Var. 2011 2010 % Var.

Var.* Var.*

Net sales 1,298 1,078 20% 19% 453 366 24% 24%

Operating EBITDA 386 363 6% 4% 144 108 33% 34%

Operating EBITDA margin 29.7% 33.7% (4.0pp) 31.9% 29.6% 2.3pp

In millions of US dollars, except percentages.

Domestic gray cement Ready mix Aggregates

Year over year percentage January – January January

Third Quarter Third Quarter Third Quarter

variation September September September

Volume 5% 6% 17% 19% 40% 63%

Price (USD) 7% 8% 7% 7% (0%) 6%

Price (local currency) 5% 9% 5% 7% (1%) 8%

In CEMEX’s operations in Colombia, our domestic gray cement volumes increased 8% during the third quarter of 2011 and 2% during the first nine months of the year versus the comparable periods last year. Construction activity for the quarter was driven by the residential sector, particularly from middle and high income segments, which have benefited from stable interest rates, controlled inflation, and favorable macroeconomic conditions. In addition, a recovery in low income housing, supported by subsidies in interest rates and construction of macro projects by the government aided growth in the quarter. Construction spending in the industrial-and-commercial sector, mainly in warehouses and commercial buildings, had a positive effect on volumes for the quarter.

Our domestic gray cement volumes in the South/Central America and the Caribbean region increased 6% during the third quarter of 2011 and 5% during the first nine months of the year versus the comparable periods of last year.

2011 Third Quarter Results

Page 5

OPERATING RESULTS

Asia

January – September Third quarter

l t l % l t l %

2011 2010 % Var. 2011 2010 % Var.

Var.* Var.*

Net sales 381 390 (2%) (7%) 130 124 5% 1%

Operating EBITDA 63 102 (38%) (40%) 20 29 (32%) (34%)

Operating EBITDA margin 16.5% 26.2% (9.7pp) 15.2% 23.4% (8.2pp)

In millions of US dollars, except percentages.

Domestic gray cement Ready mix Aggregates

Year over year percentage January – January January

Third Quarter Third Quarter Third Quarter

variation September September September

Volume (6%) 1% (1%) 8% (2%) (1%)

Price (USD) (3%) (5%) 14% 12% 13% 11%

Price (local currency) (7%) (8%) 7% 7% 5% 7%

In the Philippines, CEMEX’s domestic gray cement volumes remained flat during the third quarter of 2011 and decreased 11% during the first nine months of the year compared with the same periods in 2010. The decline was driven by election related spending last year, as well as the lack of government spending year to date. The current administration’s anti-corruption efforts have resulted in a very deliberate and stringent process for project bidding and disbursement of funds, causing delays to infrastructure plans, including the implementation of public-private partnership projects. In addition, unfavorable weather conditions in many regions of the country hampered construction activity during the quarter. Volumes for the quarter were partially mitigated by increased demand from the residential sector, supported by remittances from overseas workers, and by the demand for office space from the industrial-and-commercial sector, sustained by the business process outsourcing industry in the country.

Our domestic gray cement volumes in the Asia region increased 1% during the third quarter of 2011 and decreased 6% during the first nine months of 2011 versus the comparable periods of last year.

2011 Third Quarter Results

Page 6

OPERATING EBITDA, FREE CASH FLOW AND DEBT-RELATED INFORMATION

Operating EBITDA and Free Cash Flow

January September Third quarter

2011 2010 % Var. 2011 2010 % Var.

Operating income 737 728 1% 305 284 7%

+ Depreciation and operating amortization 1,056 1,101 353 364

Operating EBITDA 1,794 1,829 (2%) 658 649 1%

Net financial expense 954 834 334 291

Maintenance capital expenditures 159 180 72 88

Change in working capital 435 460 (60) 84

Taxes paid 169 191 19 44

Other cash items (net) 100 (103) 30 (109)

Free cash flow after maintenance capital expenditures (23) 268 N/A 263 250 5%

Expansion capital expenditures 79 77 32 23

Free cash flow (102) 191 N/A 231 228 1%

In millions of US dollars, except percentages.

During the quarter, free cash flow and additional debt were used to comply with the Ready Mix USA put option million obligation and other corporate uses. during the quarter. In addition, we had a positive conversion effect in the amount of US$347

Information on debt and perpetual notes

Third quarter Second quarter Third quarter

2011 2010 % Var. 2011 2011 2010

Total debt 17,294 16,775 3% 17,251 Currency denomination

Short term 2% 4% 2% US dollar 77% 66%

Long term 98% 96% 98% Euro 20% 25%

Perpetual notes 1,161 1,328 (14%) 1,177 Mexican peso 3% 9%

Cash and cash equivalents 736 838 (12%) 675 Other 0% 0%

Net debt plus perpetual notes 17,719 17,265 3% 17,753

Interest rate

Consolidated funded debt/EBITDA* 7.20 7.61 7.16 Fixed 57% 37%

Variable 43% 63%

Interest coverage* 1.87 1.96 1.87

In millions of US dollars, except percentages and ratios.

* Calculated in accordance with our contractual obligations under the Financing Agreement.

On September 23, 2011, CEMEX extended the maturity of its existing securitization program relating to the accounts receivable of its main subsidiaries in France for 18 months, until March 23, 2013. As part of the extension, CEMEX incorporated in to the program the accounts receivable of its main subsidiaries in the United Kingdom into the program. On-going costs of the transaction remain unchanged (conduit cost of funds + 120 bps).

2011 Third 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 10,413,374,680

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

Stock based compensation 31,291,902

End of quarter CPO equivalent units outstanding 10,444,666,582

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 September 30, 2011, executives had outstanding options on a total of 90,297,054 CPOs, with a weighted average

strike price of approximately US$1.89 per CPO (equivalent to US$18.92 per ADS). Starting in 2005, CEMEX began offering

executives a restricted stock ownership program. As of September 30, 2011, our executives held 40,719,183 restricted

CPOs, representing 0.4% 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.

Third quarter Second quarter

Notional amounts (1) 2011 2010 2011

Equity (2) 2,802 1,644 2,969

Estimated aggregate fair market value (1) (3) 36 (62) 159

In millions of US dollars.

The based estimated upon quoted aggregate market fair prices market andvalue estimated represents settlement the approximate costs, which settlement fluctuate over result time. asFair of the market valuation values date, and determined notional amounts upon termination do not represent of theamounts contracts of considering cash currently the exchanged notional amounts between and the quoted parties; market cash prices amounts as well will be as relation to the fair market values of the underlying hedge transactions and the overall reduction other derivative items as of the settlement date. Fair market values should not be viewed in isolation, but in CEMEX’s rather in 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 case 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 September 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$91 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 September 30, 2011, the notional amount of this derivative was US$192 million, with a positive fair market value of approximately US$55 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 September 30, 2011, the fair value of this financial guarantee represented a liability of US$4 million, which is net of a collateral deposit of US$264 million.

(3) Net of a cash collateral deposited under open positions. Cash collateral was US$270 million as of September 30, 2011.

2011 Third 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—September Third Quarter

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

2011 2010% Var. 2011 2010% Var.

% Var. *% Var. *

Net Sales 11,436,744 10,576,665 8% 3% 3,967,151 3,765,301 5% 1%

Cost of Sales(8,133,862)(7,530,061)(8%)(2,781,453)(2,668,711)(4%)

Gross Profit 3,302,882 3,046,604 8% 2% 1,185,698 1,096,590 8% 4%

Selling, General and Administrative Expenses(2,565,548)(2,318,802)(11%)(880,869)(812,221)(8%)

Operating Income 737,333 727,803 1%(4%) 304,829 284,369 7% 6%

Other Expenses, Net(365,703)(308,861)(18%)(92,693)(124,997) 26%

Operating Income After Other Expenses, Net 371,630 418,942(11%) 212,136 159,372 33%

Financial Expenses(1,073,260)(958,828)(12%)(371,152)(332,571)(12%)

Financial Income 25,907 24,304 7% 9,012 6,927 30%

Exchange Gain (loss), Net(101,844) 65,549 N/A(217,439) 109,129 N/A

Monetary Position Gain (loss) 10,745 11,767(9%) 2,608 4,925(47%)

Gain (loss) on Financial Instruments(419,436)(118,028)(255%)(339,492)(33,642)(909%)

Total Comprehensive Financing (cost) Income(1,557,886)(975,236)(60%)(916,462)(245,231)(274%)

Net Income Before Income Taxes(1,186,256)(556,294)(113%)(704,326)(85,859)(720%)

Income Tax(191,449)(129,003)(48%)(110,786)(8,074)(1272%)

Net Income Before Participation

of Uncons. Subs.(1,377,706)(685,297)(101%)(815,112)(93,932)(768%)

Participation in Unconsolidated Subsidiaries(40,073)(42,592) 6%(7,473) 7,614 N/A

Consolidated Net Income (loss)(1,417,779)(727,889)(95%)(822,585)(86,318)(853%)

Non-controlling interest Net Income (loss)(1,893) 9,029 N/A(882) 2,949 N/A

CONTROLLING INTEREST NET INCOME (LOSS)(1,415,886)(736,918)(92%)(821,703)(89,267)(821%)

Operating EBITDA 1,793,654 1,829,082(2%)(6%) 657,965 648,649 1%(1%)

Earnings (loss) per ADS(1.36)(0.74)(84%)(0.79)(0.09)(782%)

As of September 30

BALANCE SHEET 2011 2010% Var.

Total Assets 39,944,643 43,631,658(8%)

Cash and Temporary Investments 736,267 837,728(12%)

Trade Accounts Receivables 1,225,392 1,229,536(0%)

Other Receivables 718,375 1,303,995(45%)

Inventories 1,309,066 1,389,799(6%)

Other Current Assets 304,368 229,121 33%

Current Assets 4,293,468 4,990,179(14%)

Fixed Assets 17,871,469 18,818,296(5%)

Other Assets 17,779,706 19,823,183(10%)

Total Liabilities 24,510,219 25,919,042(5%)

Current Liabilities 4,053,851 4,649,906(13%)

Long-Term Liabilities 16,964,858 16,134,465 5%

Other Liabilities 3,491,510 5,134,671(32%)

Consolidated Stockholders’ Equity 15,434,425 17,712,616(13%)

Non-controlling Interest and Perpetual Instruments 1,428,282 1,604,763(11%)

Stockholders’ Equity Attributable to Controlling Interest 14,006,143 16,107,853(13%)

2011 Third 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—September Third Quarter

INCOME STATEMENT 2011 2010% Var. 2011 2010% Var.

Net Sales 138,384,603 134,958,250 3% 50,184,459 48,271,160 4%

Cost of Sales(98,419,735)(96,083,580)(2%)(35,185,377)(34,212,876)(3%)

Gross Profit 39,964,868 38,874,670 3% 14,999,082 14,058,285 7%

Selling, General and Administrative Expenses(31,043,135)(29,587,908)(5%)(11,142,995)(10,412,670)(7%)

Operating Income 8,921,733 9,286,762(4%) 3,856,087 3,645,615 6%

Other Expenses, Net(4,425,006)(3,941,066)(12%)(1,172,567)(1,602,466) 27%

Operating Income After Other Expenses, Net 4,496,727 5,345,696(16%) 2,683,521 2,043,148 31%

Financial Expenses(12,986,442)(12,234,647)(6%)(4,695,072)(4,263,561)(10%)

Financial Income 313,476 310,118 1% 114,008 88,808 28%

Exchange Gain (loss), Net(1,232,308) 836,399 N/A(2,750,603) 1,399,039 N/A

Monetary Position Gain (loss) 130,019 150,150(13%) 32,988 63,144(48%)

Gain (loss) on Financial Instruments(5,075,171)(1,506,034)(237%)(4,294,569)(431,286)(896%)

Total Comprehensive Financing (cost) Income(18,850,426)(12,444,012)(51%)(11,593,250)(3,143,856)(269%)

Net Income Before Income Taxes(14,353,699)(7,098,317)(102%)(8,909,729)(1,100,708)(709%)

Income Tax(2,316,538)(1,646,079)(41%)(1,401,438)(103,504)(1254%)

Net Income Before Participation

of Uncons. Subs.(16,670,238)(8,744,396)(91%)(10,311,167)(1,204,212)(756%)

Participation in Unconsolidated Subsidiaries(484,889)(543,473) 11%(94,536) 97,618 N/A

Consolidated Net Income (loss)(17,155,127)(9,287,869)(85%)(10,405,703)(1,106,595)(840%)

Non-controlling interest Net Income (loss)(22,907) 115,210 N/A(11,155) 37,806 N/A

CONTROLLING INTEREST NET INCOME (LOSS)(17,132,220)(9,403,079)(82%)(10,394,548)(1,144,400)(808%)

Operating EBITDA 21,703,217 23,339,084(7%) 8,323,258 8,315,684 0%

Earnings (loss) per ADS(16.45)(9.41)(75%)(9.97)(1.14)(771%)

As of September 30

BALANCE SHEET 2011 2010% Var.

Total Assets 554,032,202 549,758,897 1%

Cash and Temporary Investments 10,212,018 10,555,377(3%)

Trade Accounts Receivables 16,996,183 15,492,152 10%

Other Receivables 9,963,866 16,430,333(39%)

Inventories 18,156,749 17,511,466 4%

Other Current Assets 4,221,588 2,886,927 46%

Current Assets 59,550,404 62,876,255(5%)

Fixed Assets 247,877,277 237,110,531 5%

Other Assets 246,604,521 249,772,111(1%)

Total Liabilities 339,956,733 326,579,933 4%

Current Liabilities 56,226,908 58,588,814(4%)

Long-Term Liabilities 235,302,577 203,294,260 16%

Other Liabilities 48,427,248 64,696,859(25%)

Consolidated Stockholders’ Equity 214,075,469 223,178,963(4%)

Non-controlling Interest and Perpetual Instruments 19,810,269 20,220,013(2%)

Stockholders’ Equity Attributable to Controlling Interest 194,265,201 202,958,950(4%)

2011 Third Quarter Results

Page 10

OPERATING RESULTS

Operating Summary per Country

In thousands of U.S. dollars

January—September Third Quarter

like-to-like like-to-like

2011 2010% Var. 2011 2010% Var.

NET SALES% Var. *% Var. *

Mexico 2,661,434 2,534,283 5%(0%) 856,314 867,978(1%)(3%)

USA 1,838,579 1,918,777(4%)(9%) 712,545 683,079 4%(4%)

Northern Europe 3,632,610 3,064,922 19% 10% 1,301,868 1,190,039 9% 3%

Mediterranean 1,336,637 1,370,877(2%)(5%) 424,206 447,821(5%)(7%)

South / Central America and Caribbean 1,297,833 1,077,762 20% 19% 452,893 365,989 24% 24%

Asia 381,369 390,263(2%)(7%) 130,455 124,139 5% 1%

Others and intercompany eliminations 288,283 219,781 31% 23% 88,870 86,256 3% 3%

TOTAL 11,436,744 10,576,665 8% 3% 3,967,151 3,765,301 5% 1%

GROSS PROFIT

Mexico 1,303,619 1,204,135 8% 3% 410,673 396,022 4% 2%

USA(49,521)(19,703)(151%) N/A 15,372(4,747) N/A(5%)

Northern Europe 900,499 724,405 24% 16% 360,619 332,955 8% 3%

Mediterranean 471,163 514,380(8%)(10%) 140,958 183,055(23%)(24%)

South / Central America and Caribbean 524,245 461,133 14% 12% 189,064 142,914 32% 33%

Asia 107,219 140,418(24%)(27%) 34,167 42,603(20%)(23%)

Others and intercompany eliminations 45,657 21,837 109% 73% 34,845 3,789 820% 831%

TOTAL 3,302,882 3,046,604 8% 2% 1,185,698 1,096,590 8% 4%

OPERATING INCOME

Mexico 774,417 755,092 3%(3%) 247,388 249,458(1%)(2%)

USA(496,342)(480,915)(3%)(2%)(142,254)(155,811) 9% 9%

Northern Europe 121,427 21,278 471% 432% 95,069 81,035 17% 12%

Mediterranean 265,116 327,692(19%)(18%) 78,235 117,589(33%)(33%)

South / Central America and Caribbean 319,264 298,028 7% 5% 122,255 86,545 41% 42%

Asia 48,100 86,371(44%)(46%) 14,788 23,746(38%)(39%)

Others and intercompany eliminations (294,649)(279,744)(5%)(1%)(110,652)(118,193) 6% 9%

TOTAL 737,333 727,803 1%(4%) 304,829 284,369 7% 6%

2011 Third 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—September Third Quarter

like-to-like like-to-like

2011 2010% Var. 2011 2010% Var.

OPERATING EBITDA% Var. *% Var. *

Mexico 884,707 865,719 2%(3%) 285,111 286,098(0%)(2%)

USA(80,376)(8,823)(811%)(2081%)(10,147)(2,010)(405%) N/A

Northern Europe 332,724 221,170 50% 40% 169,927 150,813 13% 7%

Mediterranean 345,046 409,367(16%)(16%) 104,368 144,953(28%)(28%)

South / Central America and Caribbean 385,604 363,034 6% 4% 144,312 108,364 33% 34%

Asia 62,850 102,184(38%)(40%) 19,770 29,100(32%)(34%)

Others and intercompany eliminations(136,902)(123,569)(11%)(3%)(55,375)(68,669) 19% 23%

TOTAL 1,793,654 1,829,082(2%)(6%) 657,965 648,649 1%(1%)

OPERATING EBITDA MARGIN

Mexico 33.2% 34.2% 33.3% 33.0%

USA(4.4%)(0.5%)(1.4%)(0.3%)

Northern Europe 9.2% 7.2% 13.1% 12.7%

Mediterranean 25.8% 29.9% 24.6% 32.4%

South / Central America and Caribbean 29.7% 33.7% 31.9% 29.6%

Asia 16.5% 26.2% 15.2% 23.4%

TOTAL 15.7% 17.3% 16.6% 17.2%

2011 Third 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—September Third quarter

2011 2010% Var. 2011 2010% Var.

Consolidated cement volume * 50,483 49,543 2% 17,454 17,170 2%

Consolidated ready-mix volume 40,949 37,997 8% 14,513 13,710 6%

Consolidated aggregates volume 120,979 119,764 1% 43,216 44,172(2%)

Per-country volume summary

January—September Third quarter Third quarter 2011 Vs.

DOMESTIC GRAY CEMENT VOLUME 2011 Vs. 2010 2011 Vs. 2010 Second quarter 2011

Mexico 1%(1%)(8%)

U.S.A.(4%) 2% 10%

Northern Europe 12% 2% 5%

Mediterranean(7%)(14%)(13%)

South / Central America and Caribbean 5% 6%(1%)

Asia(6%) 1% 0%

READY-MIX VOLUME

Mexico 13% 10% 0%

U.S.A.(5%) 9% 24%

Northern Europe 12% 3%(1%)

Mediterranean 4%(1%)(6%)

South / Central America and Caribbean 17% 19% 3%

Asia(1%) 8% 3%

AGGREGATES VOLUME

Mexico 3%(0%)(2%)

U.S.A.(11%)(10%) 4%

Northern Europe 6%(1%) 2%

Mediterranean(5%)(7%)(3%)

South / Central America and Caribbean 40% 63% 11%

Asia(2%)(1%)(6%)

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

2011 Third Quarter Results

Page 13

OPERATING RESULTS

Price Summary

Variation in U.S. Dollars

January—September Third quarter Third quarter 2011 Vs.

DOMESTIC GRAY CEMENT PRICE 2011 Vs. 2010 2011 Vs. 2010 Second quarter 2011

Mexico 9% 5%(7%)

U.S.A.(1%) 0%(1%)

Northern Europe (*) 9% 7%(5%)

Mediterranean (*)(3%)(4%)(4%)

South / Central America and Caribbean (*) 7% 8% 3%

Asia (*)(3%)(5%)(1%)

READY-MIX PRICE

Mexico 11% 7%(9%)

U.S.A. 2% 4% 1%

Northern Europe (*) 10% 8%(4%)

Mediterranean (*) 5% 7%(2%)

South / Central America and Caribbean (*) 7% 7% 2%

Asia (*) 14% 12% 0%

AGGREGATES PRICE

Mexico 19% 15%(10%)

U.S.A. 9% 12% 0%

Northern Europe (*) 10% 9%(4%)

Mediterranean (*) 13% 12%(3%)

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

Asia (*) 13% 11% 2%

(*) Volume weighted-average price.

2011 Third Quarter Results

Page 14

OPERATING RESULTS

Price Summary

Variation in Local Currency

January—September Third quarter Third quarter 2011 Vs.

DOMESTIC GRAY CEMENT PRICE 2011 Vs. 2010 2011 Vs. 2010 Second quarter 2011

Mexico 3% 3% 1%

U.S.A.(1%) 0%(1%)

Northern Europe (*) 1% 2%(1%)

Mediterranean (*)(3%)(4%)(2%)

South / Central America and Caribbean (*) 5% 9% 4%

Asia (*)(7%)(8%)(2%)

READY-MIX PRICE

Mexico 5% 5%(1%)

U.S.A. 2% 4% 1%

Northern Europe (*) 2% 2%(1%)

Mediterranean (*)(0%) 2% 2%

South / Central America and Caribbean (*) 5% 7% 3%

Asia (*) 7% 7% 0%

AGGREGATES PRICE

Mexico 13% 13%(2%)

U.S.A. 9% 12% 0%

Northern Europe (*) 3% 4%(0%)

Mediterranean (*) 5% 5% 1%

South / Central America and Caribbean (*)(1%) 8%(4%)

Asia (*) 5% 7% 3%

(*) Volume weighted-average price.

2011 Third Quarter Results

Page 15

OTHER ACTIVITIES

CEMEX completes roll-over of securitization of accounts receivables program in Mexico

On August 9, 2011, CEMEX announced that it successfully rolled-over its securitization of accounts receivables program in Mexico. To fund the transaction, a trust (at HSBC Mexico) issued MXN$2.5 billion (approximately US$202 million using an exchange rate of MXN$12.37 per U.S. dollar) of receivables?backed bonds maturing on October 5, 2015. The sale of receivables is on a non-recourse basis and does not represent debt for CEMEX. The bonds were priced at a spread of 200 bps over the 28-day TIIE interbank rate. Proceeds of the securitization were used to fully amortize the receivables-backed bonds issued in July 2009 under the securitization program which is being rolled-over and to pay down debt.

CEMEX enhances its operations with new business process model

On September 5, 2011, CEMEX announced the successful execution of its integration to an SAP-centric enterprise platform for its operations across all business lines in Mexico, Spain and Costa Rica. This platform is already implemented in other operations, including the United States, the United Kingdom, Germany, and France, among others. Cement, ready?mix concrete and aggregates operations are now using one of the most advanced enterprise application software available in the market, to provide more value for CEMEX’s customers, suppliers and other key stakeholders. CEMEX achieved this integration in a record time with the help of a transformation team that included key representatives of the different business operations and expert guidance from individuals in the internal CEMEX business process areas. In the following 12 months, the integration process will continue in Central and South America, Europe and Asia. During the project, CEMEX received support from its subsidiary Neoris, a global business and IT consulting firm with extensive experience in SAP integrations.

CEMEX announces progress on its affordable housing initiative

On October 13, 2011, CEMEX announced a number of developments in the progress of its affordable housing initiative, a project that was undertaken to help provide quality concrete housing to low-income families in developing countries. The housing initiative, which was launched in 2010, is defined by a two-tiered approach of providing affordable quality building solutions while also identifying adequate financial solutions to meet each family’s needs. As part of the initiative, CEMEX housing experts have developed several prototypes of concrete houses for various types of urban and rural communities. These prototypes have been adapted to local usage and customs in different regions of developing countries. The cost of building these houses is under US$10,000, including finishes, fixtures, and equipment. CEMEX is also working with various institutions to obtain suitable financial product fees and payment terms for the beneficiaries. As of today, CEMEX has implemented 30 housing projects under this initiative in coordination with third-party developers in five countries and the expectation is to have approximately 5,000 homes built by the end of 2011. As a result of the worldwide housing deficit an estimated 1.1 billion people in urban areas live in inadequate housing. Mitigating the deficit is a challenge that requires joint action between governments, financial institutions, NGOs, and private enterprises. CEMEX has already collaborated with a number of important international, federal, state and local organizations to provide such affordable housing.

Texas General Land Office Litigation

The Texas General Land Office (“GLO”) alleged that CEMEX failed to pay approximately U.S.$550 million in royalties related to mining by CEMEX and its predecessors since the 1940s on lands that, when transferred originally by the State of Texas, contained a reservation of mineral rights. The petition filed by the GLO also states that the state is seeking injunctive relief, although the state has not acted on such request. On December 17, 2009, the Texas court handling this matter granted CEMEX’s motion for summary judgment, finding that the GLO’s claims had no merit. The GLO filed a Motion for reconsideration that was denied by the court. The GLO then appealed the El Paso Court of Appeals, and on August 31, 2011, the Court of Appeals reversed the trial court’s judgment and rendered judgment in favor of the state with respect to the ownership of the mineral rights on the lands mined by CEMEX and its predecessors in interest. CEMEX intends to appeal the Court of Appeal’s decision with respect to the ownership of the mineral rights to the Texas Supreme Court and will continue to vigorously defend the claim.

Antitrust Investigations in Mexico

In January and March 2009, we were notified of two findings of presumptive responsibility against CEMEX issued by the Mexican Competition Authority (Comisión Federal de Competencia or “CFC”), alleging certain violations of Mexican antitrust laws. We believe these findings contain substantial violations of rights granted to us by the Mexican Constitution. With respect to the second case (the one that we were notified of in March 2009), on October 14, 2011, the CFC determined to close the case due to a lack of evidence sufficient to impose sanctions. The first case (the one that we were notified of in January 2009) remains ongoing.

Acquisition of Ready Mix USA LLC

In connection with CEMEX’s joint ventures with Ready Mix USA: a) CEMEX Southeast, LLC, the joint venture which had been owned 50.01% by CEMEX; and b) Ready Mix USA LLC, the joint venture which had been owned by Ready Mix USA, on September 30, 2010, Ready Mix USA exercised its put option. On August 1, 2011, after performance of the obligations by both parties under the put option agreement, CEMEX acquired its partner’s interests in Ready Mix USA LLC and CEMEX Southeast LLC in exchange for approximately US$352 million and the assumption of approximately US$28 million in net debt. CEMEX´s consolidated balance sheet and the consolidated statement of operations as of and for the period ended September 30, 2011 include the balances of Ready Mix USA LLC as of September 30, 2011 and the results of operations for the two-month period ended September 30, 2011. There is no goodwill arising from the transaction since, under Mexican FRS, in transactions between joint venture partners, any difference between the purchase price paid and the estimated fair value of the net assets acquired should be recognized directly in equity. At the date of this report, CEMEX is in the process of determining the fair value of the net assets acquired, and expects to finalize such process during the fourth quarter of 2011.

2011 Third Quarter Results

Page 16

OTHER INFORMATION

Mexican Tax Reform 2010

In November 2009, the Mexican Congress approved amendments to the income tax law that became effective on 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 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 have 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 it 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 resulting from eliminating the tax consolidation effects from 1999 to 2004. The remaining 75% is required to be paid as follows: 25% in 2011, 20% in 2012, 15% in 2013, and 15% in 2014. With respect to 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%), and, in relation to this, the consolidation effect for 2005 has already been notified to CEMEX and considered. 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 thepayment 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 of the law related to 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 by approximately US$235 million against a credit to “Retained earnings.” In 2010, changes in the parent company’s tax payable associated to the tax consolidation in Mexico are as follows (approximate US$ Millions):

2010

Balance at the beginning of the period $846

Income tax received from subsidiaries $180

Restatement for the period $26

Payments during the period ($23)

Deduction associated with additional tax rules ($210)

Other ($92)

Balance at the end of the period $727

As of December 31, 2010, the balance of tax loss carryforwards that have not been considered in the tax consolidation was 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 were as follows (approximate amounts in millions of US dollars):

2011 $43*

2012 $48

2013 $48

2014 $139

2015 $147

2016 and thereafter $302

$727

* The payment for 2011 was made on March 31, 2011 in the amount of Ps506 million, equivalent to approximately US$42.52 million. This payment included 25% of the amount that corresponds to the year 2005.

Effects of the nationalization of CEMEX Venezuela on our financial statements

Our consolidated balance sheets as of September 30, 2011 presented elsewhere in this quarterly report, include within “Other Assets” our net investment in our confiscated Venezuelan assets as of the same date. Our net investment in our Venezuelan assets as of September 30, 2011 was as follows: Millions of pesos September 30, 2011 Net total assets MXN6,675

2011 Third Quarter Results

Page 17

OTHER INFORMATION

Migration of CEMEX to International Financial Reporting Standards in 2012

Based on requirements issued in 2009 by the Mexican National Banking and Securities Commission, all entities that trade their securities on the Mexican

Stock Exchange must adopt the International Financial Reporting Standards (“IFRS”) for the preparation of their consolidated financial statements no later than January 1, 2012. CEMEX began planning its IFRS migration process during the last quarter of 2009. In summary, the status of CEMEX’s IFRS migration process as of September 30, 2011, was as follows:

Stage 1. Communicationto the organization and IFRS training

Activities undertaken and finalized between November 2009 and June 2010. Jointly with its external consultants for the IFRS migration project, CEMEX designed and implemented specific IFRS training programs for the team involved directly in the generation of financial information, the corporate support team, and the personnel in the Business Units. These training programs consisted of: a) mandatory self?training based on a specialized intranet; b) training based in webcasts oriented to a wide-range of personnel, by means of which, experts covered a variety of significant topics for CEMEX; and c) face?to?face training sessions for key personnel directly involved in the determination and quantification of the main differences between IFRS and Mexican FRS.

Stage 2. Evaluationof accounting and business impacts

CEMEX concluded the documentation phase of this stage in November 2010. CEMEX elected to prepare its initial balance sheet under IFRS as of January 1, 2010, in order to report three years of operations under IFRS at the 2012 year end. Based on IFRS 1, “IFRS First Time Adoption,” for purposes of the initial balance sheet, external appraisers are currently finalizing the valuation of CEMEX’s main fixed assets at fair value. As allowed by IFRS 1, CEMEX elected not to revisit the accounting treatment of business acquisitions made before January 1, 2010.

As of September 30, 2011, CEMEX has concluded its initial balance sheet under IFRS. With the information available, the expected main impacts by line item of the consolidated balance sheet as of January

1, 2010, are as follows:

No. Account Type Explanation

1 Accounts Asset An increase in both

receivables / Other Liability accounts is expected as a

financial result of the current

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.

2 Inventories Asset Based on IFRS, a small

decrease resulted from

certain spare parts that

were reclassified to fixed

assets.

3 Fixed Assets Asset The valuation of CEMEX´s

major fixed assets at fair

value generated the most

significant increase in the

consolidated balance

sheet as of the transition

date.

4 Other Intangible Asset An increase in this

Assets account results mainly

from the reclassification

of mining rights that were

previously recognized

within fixed assets.

5 Employee benefits Liability At the transition date, all

actuarial gains or losses

under deferral were fully

amortized against equity,

causing an increase in the

liability.

6 Deferred income Liability The balance increased at

taxes the transition date mainly

due to an increase in fixed

assets as mentioned

above.

7 Stockholders´Equity Equity Based on IFRS 1, most

IFRS first time adoption

effects at the transition

date were recognized

directly against retained

earnings, such as the

fixed assets revaluation,

net of their deferred

taxed effect, etc.

Finally, to conclude the Stage 2, CEMEX now expects to complete the adaptation of its transactional systems for the ongoing generation of information under IFRS during the fourth quarter 2011.

Stage 3. Parallelfinancial information generation under IFRS

During the third and fourth quarter of 2011, CEMEX will undertake the preparation of its consolidated financial statements under IFRS for the years 2010 and 2011. As of September 30, 2011, this process was approximately 50% of complete. Considering the effects determined in CEMEX’s initial IFRS balance sheet, the expected main impacts as a result of the revaluation of its main fixed assets to fair value are increases in the non-cash depreciation and depletion amounts in CEMEX’s IFRS statements of operations for the year 2010 and each year thereafter, as compared to those previously reported under Mexican FRS.

2011 Third Quarter Results

Page 18

DEFINITIONS 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 third quarter of 2011 and third quarter of 2010 are 12.65 and 12.82 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 June 30, 2011, and June 30, 2010, can be converted into their original local currency amount by multiplying the US-dollar figure by the corresponding average exchange rates for 2011 and 2010, provided below.

Breakdown of regions

Northern Europe includes operations in Austria, the Czech Republic, France, Germany, Hungary, Ireland, Latvia, Poland, and the United Kingdom, as well as trading operations in several Nordic countries. The Mediterranean region includes operations in Croatia, Egypt, Israel, Spain, and the United Arab Emirates.

The South/Central America and Caribbean region includes CEMEX’s operations in Argentina, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Jamaica, Nicaragua, Panama, and Puerto Rico, as well as trading operations in the Caribbean region. The Asia region includes operations in Bangladesh, China, 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

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 are investments completed with the purpose of ensuring the company’s operational continuity. These includes replacement capital expenditures, which are projects required to change obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or company policies.

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 Strategic capital expenditures are investments completed with the purpose of increasing the company’s profitability. These includes growth capital expenditures, which are designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are designed to increase profitability by reducing costs.

Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables.

Earnings per ADS

The number of average ADSs outstanding used for the calculation of earnings per ADS was 1,042.9 million for the third quarter of 2011, 1,041.5 million for the first nine months of 2011, 999.7 million for the third quarter of 2010, and 988.9 million for the first nine months of 2010.

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 ?September Third quarter

2011 2010 2011 2010

Average Average Average Average

Mexican peso 12.10 12.76 12.65 12.82

Euro 0.7077 0.7632 0.7122 0.7624

British pound 0.6191 0.6523 0.6220 0.6412

Amounts provided in units of local currency per US dollar.

2011 Third Quarter Results

Page 19