EX-2 3 d572794dex2.htm EX-2

Exhibit 2

2013

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

2013 2012% Var.% Var.* 2013 2012% Var.% Var.*

Consolidated cement volume (thousand

31,677 32,932 (4%) 17,293 17,310 (0%)

of metric tons)

Consolidated ready mix volume

26,282 26,687 (2%) 14,470 14,231 2%

(thousand of cubic meters)

Consolidated aggregates volume

76,203 74,796 2% 42,743 41,246 4%

(thousand of metric tons)

Net sales 7,322 7,373 (1%)(1%) 4,006 3,861 4% 3%

Gross profit 2,189 2,107 4% 3% 1,280 1,160 10% 9%

Gross profit margin 29.9% 28.6% 1.3pp 32.0% 30.0% 2.0pp

Operating earnings before other

690 607 14% 15% 451 363 24% 24%

expenses, net

Operating earnings before other

9.4% 8.2% 1.2pp 11.3% 9.4% 1.9pp

expenses, net margin

Consolidated net income (loss) (388)(214)(81%)(123)(180) 32%

Controlling interest net income (loss) (433)(221)(96%)(152)(187) 19%

Operating EBITDA 1,251 1,273 (2%)(1%) 730 702 4% 4%

Operating EBITDA margin 17.1% 17.3%(0.2pp) 18.2% 18.2% 0.0pp

Free cash flow after maintenance capital

(568)(258)(120%)(86) 21 N/A

expenditures

Free cash flow (603)(318)(90%)(94)(24)(293%)

Net debt plus perpetual notes 16,201 17,012 (5%) 16,201 17,012 (5%)

Total debt 16,476 17,167 (4%) 16,476 17,167 (4%)

Total debt plus perpetual notes 16,948 17,637 (4%) 16,948 17,637 (4%)

Earnings (loss) per ADS (0.36)(0.18)(98%)(0.13) (0.16) 20%

Fully diluted earnings per ADS (0.36)(0.18)(98%)(0.13) (0.16) 20%

Average ADSs outstanding 1,167.8 1,157.0 1% 1,168.9 1,157.9 1%

Employees 42,883 45,022 (5%) 42,883 45,022 (5%)

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.

(1)For 2013 and 2012, the effects on the denominator and numerator of potential dilutive shares generate anti dilution; therefore, there is no change between the reported basic and diluted loss per share.

Consolidated net sales in the second quarter of 2013 increased to US$4.0 billion, representing an increase of 4% compared with the second quarter of 2012. Adjusting for the higher number of business days in our operations during the quarter, the increase in net sales was 2%. The increase in consolidated net sales was due to higher prices of our products in local currency terms in most of our regions, as well as higher volumes in the U.S., and our Mediterranean, South, Central America and the Caribbean and Asia regions.

Cost of sales as a percentage of net sales decreased by 2.0pp during the second quarter of 2013 compared to the same period last year. The decrease includes a reduction in workforce related to our cost reduction initiatives and lower electricity costs. Operating expenses as a percentage of net sales remained practically flat during the second quarter of 2013 compared with the same period last year.

Operating EBITDA increased by 4% to US$730 million during the second quarter of 2013 compared with the same period last year. Adjusting for the higher number of business days in our operations during the quarter, operating EBITDA increased by 2%. The increase was mainly due to higher contributions from the U.S., and the South, Central America and the Caribbean, and Asia regions. Operating EBITDA margin was 18.2%, remaining flat versus the second quarter of 2012.

Other expenses, net, for the quarter were US$106 million, which mainly included impairment of fixed assets, severance payments, and a loss in sales of fixed assets.

Gain (loss) on financial instruments for the quarter was a loss of US$52 million, resulting mainly from derivatives related to CEMEX shares.

Exchange gain (loss), net for the quarter was a gain of US$102 million, resulting mainly from the fluctuations of the euro and the Mexican peso versus the U.S. dollar.

Controlling interest net income (loss) was a loss of US$152 million in the second quarter of 2013 versus a loss of US$187 million in the same quarter of 2012. The smaller quarterly loss primarily reflects higher operating earnings before other expenses, net and the positive effect in foreign exchange fluctuations partially offset by a negative effect in other expenses, net, higher income taxes and a loss in financial instruments.

Total debt plus perpetual notes decreased by US$51 million during the quarter.

2013 Second Quarter Results Page 2

OPERATING RESULTS

Mexico

January June Second Quarter

l t l % l t l %

2013 2012% Var. 2013 2012% Var.

Var.* Var.*

Net sales 1,627 1,670 (3%)(7%) 847 833 2% (5%)

Operating EBITDA 514 597 (14%)(18%) 250 300 (17%) (22%)

Operating EBITDA margin 31.6% 35.7%(4.1pp) 29.6% 36.0%(6.4pp)

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 (8%) (7%)(6%)(3%) 4% 7%

Price (USD) 3% 5% 5% 8% 5% 8%

Price (local currency) (2%) (2%) 0% 0% 0% 1%

In our Mexican operations, domestic gray cement volumes decreased by 7% during the quarter versus the same period last year, while ready mix volumes declined by 3% during the same period. During the first six months of the year, domestic gray cement volumes decreased by 8% while ready mix volumes declined by 6% versus the comparable period a year ago. Our volumes during the quarter were negatively impacted by the low levels of infrastructure spending reflecting the transition process of the new government and by the reduction in sales of bagged cement to social programs. Uncertainty surrounding the new national housing program and tight credit conditions affected the performance of the formal residential sector. The industrial and commercial sector continued showing positive performance during the same period.

United States

January June Second Quarter

l t l % l t l %

2013 2012% Var. 2013 2012% Var.

Var.* Var.*

Net sales 1,604 1,480 8% 8% 868 795 9% 9%

Operating EBITDA 99 3 3724% 3724% 80 27 201% 201%

Operating EBITDA margin 6.2% 0.2% 6.0pp 9.2% 3.3% 5.9pp

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 3% 3% 11% 14% 12% 8%

Price (USD) 4% 4% 6% 5% 1% 3%

Price (local currency) 4% 4% 6% 5% 1% 3%

Domestic gray cement, ready mix, and aggregates volumes for our operations in the United States increased by 3%, 14%, and 8%, respectively, during the second quarter of 2013 versus the same period last year. During the first six months of the year and on a year over year basis, domestic gray cement, ready mix, and aggregates increased by 3%, 11% and 12%, respectively.

Sales volumes for the quarter reflect improved demand in most of our markets in spite of worse weather conditions. The residential sector continued to be the main driver of demand during the quarter and sustained by strong fundamentals such as record high affordability, low interest rates, improved credit availability and low levels of inventories. The industrial and commercial sector also contributed favorably to demand growth.

2013 Second Quarter Results Page 3

OPERATING RESULTS

Northern Europe

January June Second Quarter

l t l % l t l %

2013 2012% Var. 2013 2012% Var.

Var.* Var.*

Net sales 1,846 1,978 (7%)(6%) 1,088 1,100 (1%) (2%)

Operating EBITDA 92 180 (49%)(49%) 108 122 (11%) (12%)

Operating EBITDA margin 5.0% 9.1%(4.1pp) 9.9% 11.1%(1.2pp)

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 (8%) (4%)(8%)(4%)(4%) 1%

Price (USD) (1%) 0% 1% 3% 1% 2%

Price (local currency) (0%) (0%) 2% 2% 2% 2%

Our domestic gray cement volumes in the Northern Europe region decreased by 4% during the second quarter of 2013 and decreased by 8% during the first six months of the year versus the comparable period in 2012.

In the United Kingdom, domestic gray cement, ready mix, and aggregates volumes increased, on a year over year basis, by 9%, 6%, and 2%, respectively, during the second quarter of 2013. For the first six months of the year our domestic gray cement volumes increased by 4%, ready mix volumes increased by 1% and our aggregates volumes decreased by 3%, versus the comparable period in the previous year. Cement volumes during the quarter were driven by growth in the residential sector and, to a lesser extent, to a catch up effect from the adverse weather conditions during the first quarter. Government policies to promote home ownership, including guarantees and interest free loans as well as low interest rates for home acquisition positively impacted the residential sector.

In our operations in France, domestic ready mix volumes decreased by 6% and our aggregates volumes increased by 2% during the second quarter of 2013 versus the comparable period last year. During the first six months of the year, ready mix volumes decreased by 13% and aggregates volumes remained flat, on a year over year basis. Infrastructure activity continues to be supported by a number of ongoing highway and high speed railway projects that started during 2012. The year over year activity in the residential sector was affected by the reduction of government housing incentives and a less attractive buy to let program.

In Germany, our domestic gray cement volumes increased by 3% during the second quarter and decreased by 3% during the first six months of the year on a year over year basis. The increase in our cement volumes during the quarter was partially offset by unfavorable weather conditions including floods in East Germany and Bavaria. Low unemployment and mortgage rates, as well as the increase in wages and salaries benefited residential activity, which was the main driver of demand for our products.

Domestic gray cement volumes of our operations in Poland declined by 23% during the quarter and decreased by 28% during the first six months of the year versus the comparable periods in 2012. Construction activity during the quarter was affected by continued adverse weather conditions, especially in our markets. There was lower activity in the infrastructure sector on a year over year basis. In addition, the second quarter of 2012 is a high base of comparison due to the activity related to the Euro 2012 Championship.

2013 Second Quarter Results Page 4

OPERATING RESULTS

Mediterranean

January June Second Quarter

l t l % l t l %

2013 2012% Var. 2013 2012% Var.

Var.* Var.*

Net sales 747 761 (2%) 1% 400 384 4% 7%

Operating EBITDA 168 193 (13%)(7%) 94 96 (2%) 4%

Operating EBITDA margin 22.5% 25.4%(2.9pp) 23.5% 25.0%(1.5pp)

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%) 5% 5% 8%(2%) 1%

Price (USD) (3%) (2%) 4% 6% 8% 7%

Price (local currency) 6% 7% 2% 2% 5% 2%

Our domestic gray cement volumes in the Mediterranean region increased by 5% during the second quarter and decreased by 4% during the first six months of the year versus the same periods in 2012.

Domestic gray cement volumes for our operations in Spain decreased by 31% and our ready mix volumes declined by 36% on a year over year basis during the quarter. For the first six months of the year, domestic gray cement volumes decreased by 32%, while ready mix volumes declined by 34% compared with the same period in 2012. The decrease in volumes for building materials during the uarter reflects the adverse economic situation in the country. The continued fiscal austerity measures and spending cuts kept infrastructure activity at very low levels. In the residential sector, there has been a gradual reduction in home inventories.

In Egypt, our domestic gray cement volumes increased by 18% during the second quarter of 2013 and increased by 7% during the first six months of the year on a year over year basis driven mainly by the informal residential sector and supported by our alternative fuel strategy in the country.

South, Central America and the Caribbean

January June Second Quarter

l t l % l t l %

2013 2012% Var. 2013 2012% Var.

Var.* Var.*

Net sales 1,059 1,054 1% 3% 561 529 6% 10%

Operating EBITDA 399 367 9% 11% 211 189 12% 15%

Operating EBITDA margin 37.7% 34.9% 2.8pp 37.6% 35.7% 1.9pp

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 (1%) 7%(5%)(1%)(1%) 6%

Price (USD) 1% (0%) 5% 5% 1% (1%)

Price (local currency) 4% 3% 8% 9% 4% 3%

Our domestic gray cement volumes in the region increased by 7% during the second quarter of 2013 and decreased by 1% during the first six months of the year versus the comparable periods last year.

Domestic gray cement, ready mix, and aggregates volumes for our operations in Colombia increased by 3%, 8%, and 3%, respectively, during the second quarter versus the comparable period of last year. For the first six months of the year, our cement and aggregates volumes declined by 6% and by 1%, respectively, while our ready mix volumes increased by 5% compared with the same period in 2012. During the quarter the residential sector was an important driver of demand for our products, mainly supported by the construction of the 100 thousand free home program announced by the government. The industrial and commercial sector continued its favorable performance primarily in terms of warehouses and office buildings on the back of Colombia’s recently signed trade agreements.

2013 Second Quarter Results Page 5

OPERATING RESULTS

Asia

January June Second Quarter

l t l % l t l %

2013 2012% Var. 2013 2012% Var.

Var.* Var.*

Net sales 305 270 13% 10% 162 142 14% 13%

Operating EBITDA 62 42 49% 45% 38 30 29% 27%

Operating EBITDA margin 20.5% 15.6% 4.9pp 23.5% 20.9% 2.6pp

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 4% 6%(1%) 8% 33% 20%

Price (USD) 12% 9% 3% 5% 14% 17%

Price (local currency) 9% 7% 3% 4% 13% 16%

Our domestic gray cement volumes in the region increased by 6% during the second quarter and increased by 4% during the first six months of 2013 on a year over year basis.

In the Philippines, our domestic gray cement volumes increased by 10% during the second quarter of 2013 and increased by 7% during the first six months of 2013 versus the comparable periods of last year.

The residential sector was the main driver of demand during the quarter supported by the increased activity from foreign buyers and favorable conditions, such as stable level of inflation and low mortgage rates, as well as healthy remittances inflows. The infrastructure and industrial and commercial sectors continue with their positive trend during the same period.

2013 Second Quarter Results Page 6

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION

Operating EBITDA and free cash flow

January June Second Quarter

2013 2012% Var 2013 2012% Var

Operating earnings before other expenses, net 690 612 13% 451 368 23%

+ Depreciation and operating amortization 561 661 279 334

Operating EBITDA 1,251 1,274 (2%) 730 702 4%

Net financial expense 719 681 362 347

Maintenance capital expenditures 149 124 101 74

Change in working capital 538 462 207 164

Taxes paid 408 250 133 76

Other cash items (net) 5 15 14 21

Free cash flow after maintenance capital expenditures (568)(258)(120%) (86) 21 N/A

Strategic capital expenditures 35 60 8 45

Free cash flow (603)(318)(90%) (94) (24)(293%)

In millions of US dollars, except percentages.

During the quarter, the decrease in the cash balance and the proceeds from our securitization programs were used mainly to meet the negative free cash flow, to reduce debt and to pay coupons on the perpetual notes.

Our debt during the quarter reflects a negative foreign exchage conversion effect of US$13 million.

Information on debt and perpetual notes

First Second

Second Quarter Quarter Quarter

2013 2012% Var 2013 2013 2012

Total debt (1) 16,476 17,167 (4%) 16,528 Currency denomination

Short term 3% 1% 3% US dollar 85% 82%

Long term 97% 99% 97% Euro 13% 16%

Perpetual notes 472 470 0% 471 Mexican peso 2% 2%

Cash and cash equivalents 746 625 19% 817 Other 0% 0%

Net debt plus perpetual notes 16,201 17,012 (5%) 16,182

Interest rate

Consolidated funded debt (2)/EBITDA (3) Fixed 70% 56%

5.54 5.58

Variable 30% 44%

Interest coverage (3) (4) 2.06 2.06

In millions of US dollars, except percentages and ratios.

(1) Includes convertible notes and capital leases, in accordance with International Financial Reporting Standards (IFRS).

(2) Consolidated funded debt as of June 30, 2013 was US$14,355 million, in accordance wiith our contractual obligations under the Facilities Agreement. (3) EBITDA calculated in accordance with IFRS.

(4) Interest expense calculated in accordance with our contractual obligations under the Facilities Agreement.

2013 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 10,919,024,229

CPOs issued due to recapitalization of retained earnings 437,460,110

Less increase (decrease) in the number of CPOs held in subsidiaries 330,673

Stock based compensation 11,335,495

End of quarter CPO equivalent units outstanding 11,367,489,161

CEMEX has Outstanding units equal total outstanding mand CPOs issued by CEM atory convertible notes which, upon EX less CPOs held in subsidiaries. conversion, will in crease the number of CPOs outstanding by approximately 202 million, subject to antidilution adjustments.

Employee long term compensation plans

As of June 30, 2013, executives had outstanding options on a total of 7,184,839 CPOs, with a weighted average strike price of approximately US$1.46 per CPO (equivalent to US$14.57 per ADS). Starting in 2005, CEMEX began offering executives a restricted stock ownership program. As of June 30, 2013, our executives held 33,489,364 restricted CPOs, representing 0.3% of our total CPOs outstanding as of such date.

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

2013 2012 2013

Notional amount of equity related derivatives (1) 2,410 2,774 2,426

Estimated aggregate fair market value (1) (2) (3) 320 (11) 375

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 IFRS, 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 June 30, 2013, in connection with the fair market value recognition of its derivatives portfolio, CEMEX recognized increases in its assets and liabilities resulting in a net asset of US$357 million, including a liability of US$33 million corresponding to an embedded derivative related to our Mandatory Convertible Notes, which according to our debt 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, 2013, the notional amount of this derivative was US$177 million, with a positive fair market value of approximately US$37 million.

(2) Net of cash collateral deposited under open positions. Cash collateral was US$10 million as of June 30, 2013.

(3) As required by IFRS, the estimated aggregate fair market value as of June 30, 2013 includes a liability of US$33 million relating to an embedded derivative in CEMEX’s Mandatory Convertible Notes while the estimated aggregate fair market value as of June 30, 2012 includes a liability of US$142 million, related to an embedded derivative in CEMEX’s Optional Convertible Subordinated Notes. For more information please refer to page 17 “Change in the Parent Company’s functional currency.”

2013 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 per ADS amounts)

January June Second Quarter

like to like like to li e

INCOME STATEMENT 2013 2012% Var. % Var.* 2013 2012 % Var. % Var.*

Net sales 7,322,113 7,373,122(1%) (1%) 4,005,579 3,861,364 4% 3%

Cost of sales (5,133,572)(5,265,975) 3% (2,725,212) (2,701,135)(1%)

Gross profit 2,188,541 2,107,147 4% 3% 1,280,367 1,160,229 10% 9%

Operating expenses (1,498,359)(1,500,621) 0% (829,310) (797,107)(4%)

Operating earnings before other expenses, net 690,181 606,526 14% 15% 451,057 363,122 24% 24%

Other expenses, net (125,137)(27,764)(351%) (105,533) (10,611)(895%)

Operating earnings 565,045 578,761(2%) 345,521 352,510(2%)

Financial expense (731,339)(694,734)(5%) (363,060) (351,493)(3%)

Other financial income (expense), net 44,805 33,187 35% 41,870 (138,581) N/A

Financial income 16,479 23,798(31%) 8,575 9,614(11%)

Results from financial instruments, net 71,378 12,135 488% (51,530) (15,883)(224%)

Foreign exchange results (16,254) 24,567 N/A 101,536 (118,139) N/A

Effects of net present value on assets and liabilities and

others, net (26,797)(27,313) 2% (16,711) (14,172) (18%)

Equity in gain (loss) of associates 2,567 12,021(79%) 7,346 12,812 (43%)

Income (loss) before income tax (118,923)(70,765)(68%) 31,677 (124,752) N/A

Income tax (269,063)(143,128)(88%) (154,624) (55,351)(179%)

Consolidated net income (loss) (387,986)(213,893)(81%) (122,946) (180,103) 32%

Non controlling interest net income (loss) 44,687 6,809 556% 29,390 6,854 329%

Controlling interest net income (loss) (432,673)(220,702)(96%) (152,337) (186,957) 19%

Operating EBITDA 1,251,236 1,272,793(2%) (1%) 730,347 702,215 4% 4%

Earnings (loss) per ADS (0.36)(0.18)(98%) (0.13) (0.16) 20%

As of June 30

BALANCE SHEET 2013 2012% Var.

Total assets 36,583,446 38,397,127(5%)

Cash and cash equivalents 746,281 625,081 19%

Trade receivables less allowance for doubtful accounts 2,178,453 2,169,761 0%

Other accounts receivable 492,416 466,507 6%

Inventories, net 1,250,166 1,304,872(4%)

Other current assets 400,579 364,590 10%

Current assets 5,067,896 4,930,810 3%

Property, machinery and equipment, net 15,710,860 16,586,924(5%)

Other assets 15,804,691 16,879,393(6%)

Total liabilities 24,735,001 26,446,783(6%)

Current liabilities 4,425,033 4,015,209 10%

Long term liabilities 13,816,289 14,850,640(7%)

Other liabilities 6,493,679 7,580,934(14%)

Total stockholders’ equity 11,848,445 11,950,344(1%)

Non controlling interest and perpetual instruments 1,086,848 698,499 56%

Total controlling interest 10,761,598 11,251,845(4%)

2013 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 per ADS amounts)

January June Second Quarter

INCOME STATEMENT 2013 2012% Var. 2013 2012 % Var.

Net sales 92,478,288 97,693,863(5%) 50,630,523 52,475,938(4%)

Cost of sales (64,837,020)(69,774,167) 7% (34,446,683) (36,708,422) 6%

Gross profit 27,641,268 27,919,697(1%) 16,183,840 15,767,515 3%

Operating expenses (18,924,277)(19,883,232) 5% (10,482,480) (10,832,690) 3%

Operating earnings before other expenses, net 8,716,990 8,036,465 8% 5,701,360 4,934,825 16%

Other expenses, net (1,580,479)(367,879)(330%) (1,333,943) (144,208)(825%)

Operating earnings 7,136,513 7,668,586(7%) 4,367,380 4,790,617(9%)

Financial expense (9,236,818)(9,205,228)(0%) (4,589,074) (4,776,790) 4%

Other financial income (expense), net 565,885 439,725 29% 529,239 (1,883,319) N/A

Financial income 208,124 315,320(34%) 108,389 130,648(17%)

Results from financial instruments, net 901,507 160,789 461% (651,337) (215,852)(202%)

Foreign exchange results (205,293) 325,510 N/A 1,283,409 (1,605,513) N/A

Effects of net present value on assets and liabilities and

others, net (338,452)(361,894) 6% (211,222) (192,601)(10%)

Equity in gain (loss) of associates 32,426 159,274(80%) 92,858 174,119(47%)

Income (loss) before income tax (1,501,994)(937,643)(60%) 400,403 (1,695,373) N/A

Income tax (3,398,271)(1,896,446)(79%) (1,954,446) (752,222)(160%)

Consolidated net income (loss) (4,900,265)(2,834,089)(73%) (1,554,044) (2,447,595) 37%

Non controlling interest net income (loss) 564,400 90,213 526% 371,492 93,151 299%

Controlling interest net income (loss) (5,464,665)(2,924,302)(87%) (1,925,536) (2,540,746) 24%

Operating EBITDA 15,803,114 16,864,512(6%) 9,231,592 9,543,096(3%)

Earnings (loss) per ADS (4.60) (2.44)(89%) (1.61) (2.15) 25%

As of June 30

BALANCE SHEET 2013 2012% Var.

Total assets 474,121,463 512,985,619(8%)

Cash and cash equivalents 9,671,798 8,351,076 16%

Trade receivables less allowance for doubtful accounts 28,232,752 28,988,005(3%)

Other accounts receivable 6,381,717 6,232,528 2%

Inventories, net 16,202,151 17,433,089(7%)

Other current assets 5,191,508 4,870,920 7%

Current assets 65,679,926 65,875,618(0%)

Property, machinery and equipment, net 203,612,741 221,601,308(8%)

Other assets 204,828,795 225,508,692(9%)

Total liabilities 320,565,612 353,329,019(9%)

Current liabilities 57,348,426 53,643,197 7%

Long term liabilities 178,948,315 198,404,547(10%)

Other liabilities 84,268,871 101,281,275(17%)

Total stockholders’ equity 153,555,851 159,656,600(4%)

Non controlling interest and perpetual instruments 14,085,547 9,331,948 51%

Total controlling interest 139,470,304 150,324,652(7%)

2013 Second Quarter Results Page 10

OPERATING RESULTS

Operating Summary per Country

In thousands of U.S. dollars

January June Second Quarter

like to like like to l ke

NET SALES 2013 2012% Var. % Var. * 2013 2012 % Var. % Var. *

Mexico 1,626,674 1,670,216(3%) (7%) 847,311 832,651 2% (5%)

U.S.A. 1,604,274 1,479,641 8% 8% 868,288 795,331 9% 9%

Northern Europe 1,845,848 1,978,007(7%) (6%) 1,088,199 1,099,956(1%) (2%)

Mediterranean 747,422 761,397(2%) 1% 399,992 383,902 4% 7%

South, Central America and the Caribbean 1,059,271 1,053,552 1% 3% 561,489 529,178 6% 10%

Asia 304,956 270,139 13% 10% 162,398 141,906 14% 13%

Others and intercompany eliminations 133,669 160,169(17%) (17%) 77,902 78,441(1%) (1%)

TOTAL 7,322,113 7,373,122(1%) (1%) 4,005,579 3,861,364 4% 3%

GROSS PROFIT

Mexico 763,274 821,414(7%) (11%) 395,134 413,281(4%) (11%)

U.S.A. 189,040 76,389 147% 147% 131,366 53,561 145% 145%

Northern Europe 396,575 442,200(10%) (9%) 279,383 301,655(7%) (8%)

Mediterranean 265,726 249,080 7% 12% 172,450 125,823 37% 42%

South, Central America and the Caribbean 495,313 497,939(1%) 2% 251,520 242,798 4% 7%

Asia 80,520 60,162 34% 30% 48,612 39,021 25% 23%

Others and intercompany eliminations (1,908) (40,038) 95% 95% 1,901 (15,910) N/A N/A

TOTAL 2,188,541 2,107,147 4% 3% 1,280,367 1,160,229 10% 9%

OPERATING EARNINGS BEFORE OTHER EXPENSES, NET

Mexico 416,082 496,651(16%) (20%) 201,575 252,678(20%) (26%)

U.S.A. (133,087) (254,862) 48% 48% (32,009) (106,906) 70% 70%

Northern Europe (15,429) 55,476 N/A N/A 50,971 60,083(15%) (17%)

Mediterranean 112,907 134,148(16%) (9%) 67,199 66,267 1% 8%

South, Central America and the Caribbean 356,725 325,769 10% 12% 189,757 168,036 13% 17%

Asia 46,297 28,007 65% 61% 30,252 22,811 33% 31%

Others and intercompany eliminations (93,314) (178,664) 48% 51% (56,687) (99,846) 43% 48%

TOTAL 690,181 606,526 14% 15% 451,057 363,122 24% 24%

2013 Second 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 June Second Quarter

like to like like to l ke

OPERATING EBITDA 2013 2012% Var. % Var. * 2013 2012 % Var. % Var. *

Mexico 513,667 596,910(14%) (18%) 250,466 300,124(17%) (22%)

U.S.A. 99,028 2,590 3724% 3724% 80,171 26,639 201% 201%

Northern Europe 91,861 179,906(49%) (49%) 107,764 121,581(11%) (12%)

Mediterranean 167,918 193,303(13%) (7%) 94,194 95,791 (2%) 4%

South, Central America and the Caribbean 398,926 367,172 9% 11% 210,899 188,866 12% 15%

Asia 62,404 42,019 49% 45% 38,195 29,649 29% 27%

Others and intercompany eliminations (82,568) (109,107) 24% 30% (51,342) (60,435) 15% 23%

TOTAL 1,251,236 1,272,793(2%) (1%) 730,347 702,215 4% 4%

OPERATING EBITDA MARGIN

Mexico 31.6% 35.7% 29.6% 36.0%

U.S.A. 6.2% 0.2% 9.2% 3.3%

Northern Europe 5.0% 9.1% 9.9% 11.1%

Mediterranean 22.5% 25.4% 23.5% 25.0%

South, Central America and the Caribbean 37.7% 34.9% 37.6% 35.7%

Asia 20.5% 15.6% 23.5% 20.9%

TOTAL 17.1% 17.3% 18.2% 18.2%

2013 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

2013 2012% Var. 2013 2012% Var.

Consolidated cement volume 1 31,677 32,932(4%) 17,293 17,310(0%)

Consolidated ready mix volume 26,282 26,687(2%) 14,470 14,231 2%

Consolidated aggregates volume 76,203 74,796 2% 42,743 41,246 4%

Per country volume summary

January June Second Quarter Second Quarter 2013 Vs.

DOMESTIC GRAY CEMENT VOLUME 2013 Vs. 2012 2013 Vs. 2012 First Quarter 2013

Mexico (8%) (7%) 10%

U.S.A. 3% 3% 22%

Northern Europe (8%) (4%) 69%

Mediterranean (4%) 5% 14%

South, Central America and the Caribbean (1%) 7% 16%

Asia 4% 6% 14%

READY MIX VOLUME

Mexico (6%) (3%) 8%

U.S.A. 11% 14% 16%

Northern Europe (8%) (4%) 48%

Mediterranean 5% 8% 6%

South, Central America and the Caribbean (5%) (1%) 15%

Asia (1%) 8% 26%

AGGREGATES VOLUME

Mexico 4% 7% 14%

U.S.A. 12% 8% 4%

Northern Europe (4%) 1% 61%

Mediterranean (2%) 1% 10%

South, Central America and the Caribbean (1%) 6% 21%

Asia 33% 20% 29%

1

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

2013 Second Quarter Results Page 13

OPERATING RESULTS

Price Summary

Variation in U.S. Dollars

January June Second Quarter Second Quarter 2013 Vs.

DOMESTIC GRAY CEMENT PRICE 2013 Vs. 2012 2013 Vs. 2012 First Quarter 2013

Mexico 3% 5%(2%)

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

Northern Europe (*) (1%) 0%(4%)

Mediterranean (*) (3%) (2%) 5%

South, Central America and the Caribbean (*) 1% (0%)(3%)

Asia (*) 12% 9%(0%)

READY MIX PRICE

Mexico 5% 8% 2%

U.S.A. 6% 5% 1%

Northern Europe (*) 1% 3%(5%)

Mediterranean (*) 4% 6% 4%

South, Central America and the Caribbean (*) 5% 5%(1%)

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

AGGREGATES PRICE

Mexico 5% 8%(1%)

U.S.A. 1% 3% 7%

Northern Europe (*) 1% 2%(8%)

Mediterranean (*) 8% 7%(3%)

South, Central America and the Caribbean (*) 1% (1%)(3%)

Asia (*) 14% 17% 8%

(*) Volume weighted average price.

2013 Second Quarter Results Page 14

OPERATING RESULTS

Price Summary

Variation in Local Currency

January June Second Quarter Second Quarter 2013 Vs.

DOMESTIC GRAY CEMENT PRICE 2013 Vs. 2012 2013 Vs. 2012 First Quarter 2013

Mexico (2%) (2%)(2%)

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

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

Mediterranean (*) 6% 7% 7%

South, Central America and the Caribbean (*) 4% 3%(0%)

Asia (*) 9% 7% 3%

READY MIX PRICE

Mexico 0% 0% 2%

U.S.A. 6% 5% 1%

Northern Europe (*) 2% 2%(4%)

Mediterranean (*) 2% 2% 3%

South, Central America and the Caribbean (*) 8% 9% 1%

Asia (*) 3% 4%(1%)

AGGREGATES PRICE

Mexico 0% 1%(1%)

U.S.A. 1% 3% 7%

Northern Europe (*) 2% 2%(7%)

Mediterranean (*) 5% 2%(4%)

South, Central America and the Caribbean (*) 4% 3%(0%)

Asia (*) 13% 16% 8%

(*) Volume weighted average price.

2013 Second Quarter Results Page 15

OTHER ACTIVITIES

CEMEX launches CEMEX Global Solutions service

On Solutio Julns, a service fro y 1, 2013, CEMEX m the company announce which leverage d the launch s over a centur of CEMEX Global y of proposi industry leading tion in a full ran expertise ge of technical to provideservices for the customers with cement, ready the best value mix concrete, and aggregates industry. project CEMEX s Global in several Solutio countries. ns is available By leveraging around the the wb orld, est practices with ongoing and Switzer innovatland ions from and extra the cting company’s value Res froearch m its and expertise Development as a top Cente cement, r in ready expecte mix d to concrete provide anstate of the art d aggregates company, technological CEMEX support Global Solution across the s is concep entire building tualization materi to eals xpanding manufacturi capacng ity process, and upgradi from ng plant equipment. design This and service by providing them with reinforces CEM reliable and co EX’s commitme st efficient solu nt to suiting ittions. s customers’ needs For offering, please visit w more information ww. about cemex. CEMEX com/Global CEMEXGlobalSo Solutions lutions. and its complete

CEMEX and BirdLife launch new shared vision for nature conservation

On develo Jun ped e 26, an 2013, inspirin CEg MEX new in publicat collaboion ration that with captu Birres dLife the Internati compaonal ny’s approa signals ch significant prog to biodiversress in the comp ity conservation. any’s ten year The launch global conserva of this publication tion partner partnership ship with for natur Birdle. ife Supported Internationa bl, y the CEMEX’s world’s tea largest m in Switzerla civil society nd, environ CEMEX mental and BirdLife sustai hnability ave worked of to CE gether MEX’s since operati 2007 ons to globally increase and the minimi to consze business risk erve important s while creating sites for biodiversity. opportunities f or BirdLife Partners BirdLife The CEMEX BirdLife World Congre document ss, which was high la lighted unched experie at a special nces from event CEM at the EX BirdLife and pra ctitioners from global collaborations 17 nations from and was across the Bird represented by Life Partnership. conservationists The pu World’s blication was tim Birds report. This ely, because Bi important nrdLife just launc ew report highlights hed its State of that, globally, the rapid one in deight species is t eterioration in the hreatened with global environment extinction, pro that is viding evidence affecting all lifeof a on that Earth. th Te he report prov current situatides cautious ho ion can be reversed, pe for optimis given the m, since it indic will and resourates ces, such as by the CEMEX BirdLife the innovative Partnership. approaches to wildlife conservation demonstrated high Looking priority forward, sites CEM –identified EX plans in to the esC tablish EMEX BirdLife BAP pro Scoping jects at Study additi– onal by initiativ 2015. The company is es for CEMEX staff as part of o also working wiur communicati th BirdLife to de ons strategy, w velop new training hich will help generate momentum for new activities to conserve biodiversity.

CEMEX reinforces commitment to Egypt’s development

On approxi June mately 3, 2013, U.S.$100 CEMEX million annou (app nced roximately that it 700 expects million to Egyp invest tian suppor pounds) ting to significantl the country’s y improve housing, its operations commercial in Eand gypt infrastruct and continue ure development. increas A sizabe le its percentage capacity t o o f the use investme coal and nt pet will coke be used as enby ergy the sources compan in y its to Assiut also ex cpects ement to plant, insta helping ll new to waste eliminco processing ate fuel subsidiand es by environme 2014. CEMEX ntal equipm its alternative ent in the plant fuels usage. to continue red Since 2000, ucing its emissi CEMEX has ons and to incre co processed oase ver 2010, 250,000 tons of waste CEMEX inaugurain Egypt, conve ted a new U.S. rting them into $12 million dalternative fuel ust filter equips. ped In with the latest technology to reduce emissions in its Assiut cement plant. constru CEMEX ction also expects of concr tete o invest roads, in whic equipment h represent to build a more and promote durable and the suppor cost efft ective four major building concrete solution. paving The projects company in is Egy already pt during planning 2013. to In addition, the operational improvements are expected to further enhance

fosterin the com g the creation of pany’s affordable new jobs in thi housing effs region. orts, specificall y in Upper Egypt, responsi Since 2000, bility CEMEX initiatives has such implemented as its driving in Egypt safety many prog value added rams, which so ha cial ve benefite has impd roved over 20,000 the livd es rivers of over and its 5,000 Food for Educati children and on program their famili which es. support Additionally, Egypt’s CEMEX comme is rcial providing and infras industry leading tructure develo building pment, solutions such as to a barrage multiple use and hydroelectr complex in ic plant in the N the heart of Cairo, ile River. and a state of the art tidal

CEMEX to expand capacity of Texas cement plant producti On Mayon capacity at i 30, 2013, CEts Odessa, Texa MEX announced s cement plant that it planby 345,000 met s to expand the ric rapidly tons to g nearly rowing 900,000 demand metric in its tons West pe Texas r year market in order ledto mainly keep pace by the with oil product and gas s, industry. the compan By leveraging existing y expects to assets and prod achieve strong ucing value add returns on ed its investment. growing The demas and a result for specia of tlty he use cement of more products efficient used extrac in well tion construction technologies, is such technolo as horizontal gy typically drill reach ing and depths hydrau of thousands lic fracturing. of f O eet. il wells Specialty using w this ell to which cement is these wells are required for the exposed. complex application and extreme conditions in The exp higheansion will utiliz r fuel efficiency e state of the a and improvedrt production te productivity. Tchnology result he expansion will ing more also incl efficient ude an improve truck loading d higher process capacity to load accommo out systdate em, allowing the regio fon’s r a growing demand for cement.

2013 Second Quarter Results Page 16

OTHER INFORMATION

Change in the Parent Company’s functional currency

Consid Accoun ering ting Standard the guid 21, ance The under Effects IFRS of Changes set forth in Foreign by Internati Excha onal nge moneta Rates (“IAS ry position 21”), and in f oreign based currenci on changing es of CEMEX, circumst S.ances A.B. de on C.V. the (on net a decrea parent se company in tax liabiliti onlyes basis) denominated resulting in mainly Mexican from Pesos; : a)b) a a signific significant ant increas obligatie ons; in and its c) U. S. th e Dollar denomi expected incnated rease in debt U.S. an Dd ollar denomina other financial ted of intra gr majooup r back administra office activities tive expenses with IBa M; ssociated effective with as of the January externaliza 1, 2013, tion statem CEMEX, ents, was requir S.A.B. de C.V., ed to prospecti for purposes of vely change its its parent comfunctional curre pany only finanncy cial from determ the ined Mexican to be th Pe e so currency to the U. of S.CEMEX, Dollar, S. as A.B. th e de U.C. S.V. Dollar ‘s prim was ary econom functional ic environment. currencies of The aforemen CEMEX, S.A. tioned change h B. de C.V.‘s subsidiaries, as no effect on which the continu which ee ach subsidiary to be the cu operates. rrency in More the over, the reporti primary econom ng currency for ic environment the in subsidi consoliaries and the pa dated financial rent company o statements ofnly financial sta CEMEX, S.A.B. tements of CEM de C.V. and EX, its S.A.B. de C.V. continues to be the Mexican Peso. statem The maents in effects in CE beginning MEX, S. on January A.B. de C 1, 2013, .V.‘s parent com associated with pany only finan the change cial in functio revenues nal and currency, expense ass compared in any currenc to prior y are years recognize are: d a)in all U. transacti S. Dollarons, s at balance the exchange s of CEMEX, rates S. pA. revailing B. de C.at V. th deeir nominated execution in d U. ates; S. Dollars b) mone will tary not genera Mexicate n Pesos and oth foreign currency er non U. fluctuatio S. Dollar denominate ns, while mon d balances will n etary balances ow in genera statemte ent foreign of operatio currency ns; and fluctuation c) thes conversion through CEM op EX, tion S.embedde A.B. de C. d V.in ‘s CEMEX, Mexican S.Pesos A.B. de will C.V.‘s now Mandatory be treat Ced onvertible as a stan Notes d alone denominate derivad tive in instrum while the ent options through em CEMEX, bedded S.A. in B. CE d MEX, e C.V. S. ‘s A.statem B. de ent C.V.‘s of U. operati S. Doons, llar Option Denomal inated Convertible 2010 Op Subordinated tional Converti Nble otes Subordinate will cease d to Notes be treated and 2011 as operati stand aons. lone Prior derivative period s through financial CEM staEX, tements S.A.B.are de n C. ot V.‘s required statemen to t be of restated.

Significant tax proceedings

In related connection to the taxes pa with the yable in Mexico previously publicly from passive in disclosed come generate tax proceeding d by foreign amnesty investments provision, for MEX, the S.years A.B. opt 2005 ed to and enter 2006 this and amnesty the transi progtory ram and therefore there ar CEe not any tax liabilities in connection to this matter as of March 31, 2013.

Mexican Tax Reform 2010 income In Nove mber tax law 2009, that the became Mexican effective Congress on January approved a 1, 2010. mendments to The new law the include among d changes to th other things, determine e tax consolidat incomion regime that e taxes as if the require CEMEX tax consolidation to, require provisions in Mexico di d the paymentd not exist from of taxes on dividends 1999 onward. betwe These changes en entities of also the consoli not taxdated tax group ed in the past), (specifically, di certain special vidends paid fro items in the tam profits that w x consolidation, ere as well consoli adated s tax tax loss gro caup rryforwards that should generated have been by e rntities ecovered within by such the individ increasual ed the entities statutor ove y r income the succeedi tax rang te from 10 years. 28% to These 30% for amendm the yents ears 2010 to years. P 2012, 29% for ursuant to thes2013, and decre e amendments, the parent com ased it to 28% for 2014 and fut pany was required ure elimina to pay ting in 2010 the tax (at co th nsolidation e 30% tax effe ratcts e) 25% from of 1999 the to tax 2004, resulting and to from pay an follows additional : 20% in 2012, 15% in 2013, an 25% in 2011. The remaid 15% in 2014. ning 50% is req With respect to uired to be paid the as during consolidation the sixth fiscal y effects originated ear following t after heir origination 2004, these should and are be pay be conside able red over the succeeding five years in the same proportions (25%, 25%, 20%,

15%, an has alred 15%), ady been and, in notified relation to this, to CEMEX and the consolidati considered. on effect for 2005 Applicable taxes payable increased as a result of th by inflation, ae changes to th s required by the e tax consolida Mexican income tion regime will tax law. Asbe of recogniz December ed 31, the 2009, nominal based value on of Interpr estimated etation taxes 18, pay the able parent in connecti compaon ny with was rec the ognized se amendment by the s parent of approxima compantely y as US$ a tax 799 paya million. ble on This its amo balance nt sheet million, ain connection w gainst “Other non current ith the net liabi aslity recognized sets” for apprbefore the new oximately US$628 tax law the and payment that the of paren this tt ax company liability; exp anects d approximatel to realize in y connection US$171 milli with on related against “Retained to: a) the earni difference ngs” for betwee the po n rtion, the sum accordin of the g to equity the new of la the w, controll consolided entities for ta ated entity; b) x purposes and dividends from the equity for t the controlleax purposes of t d entities for tax he purpose companies s to CEMEX, S. included A. in B.the de C.tax V.; and consolidation c) other transac that tions between t represented the he transfer additional rules, the tax of resources w authorities eli ithin the group. minated certain In December 2010, aspects of the l pursuant aw to related t equity of o the taxable a the controlled mount for the d entities for tax ifference betwe purposes and the en the sum of t equity for tax he reduced purposes its of estimated the consolidated tax payable entity. bAs y approximatel a result, they parent US$235 compa million ny against compana y’s credit tax payable to “Retained associated earnings. with “ the In 2012, tax conso changes lidation in the in Mex parent ico are as follows (approximate US$ Millions):

2012

Balance at the beginning of the period $966

Income tax received from subsidiaries $162

Restatement for the period $58

Payments during the period ($54)

Balance at the end of the period $1,132

applicab In December le in 2012, 2013, the established Federal Reven that ue the Law statutory (Ley Federal income de Ingres tax rate os) 2015 an remained future years. d at 30% in 2013, then lowered it to 29% for 2014 and 28% for As of De not been considered in cember 31, 2012, the balance o the tax consolidation was appr f tax loss carryforwards that ha oximately US$549 ve million. taxes p ayable As of Decembe resultingr from 31, 2012, these the changes estimated in the payment tax consolidati schedule on of regime i dollars): n Mexico were as follows (approximate amounts in millions of US

2013 $ 157*

2014 $ 200

2015 $ 209

2016 $ 173

2017 $ 176

2018 and thereafter $217

1,132

* This payment was made in March 2013.

Egypt Share Purchase Agreement

Further regarding to the the annulme decision nt by of a the court Shar oe f Purchase first instance Agreement in Assiut, signed Egypt, in 1999 pu relation rsuant to which to the appeal CEMEX acquire that was filedd Assiut Cemen by Assiut Cement t Company, and Company, in a take pla hearing ce on Septembe was held on June r 16, 2013. 16, 2013 and the next hearing is scheduled to

Antitrust investigations in Europe by the European Commission compan Regardin ies g the related formal to the proceedings antitrust investigations against CEMEX in and Europe the by other the Europea being inn Commission, vestigated were the hearings for completed in CEMEX and th April 2013. We e other compan currently expect ies that the judgement will be rendered before September 2013.

2013 Second Quarter Results Page 17

OTHER INFORMATION

Investigations in the UK

Compe Regarding tition Commissi the Market on into the supp Investigation commenced ly or acquisitio by tn of cement, rea he United Kingdom dy 12, mix 2013 concrete all intereste and aggregates d parties for to the th pe eriod investigation from 2007 responded to 2011, by to June the We provisi cuonal findings an rrently expect the d notice of poss final findings ible remedies i and remedies ssued in May 2013. to be issued in January 2014.

Tax Matters Colombia

CEMEX Authority (Dirección de Colombia, S.A. has reached a s Impuestos) regettlement with arding its 2007 and 2008 year the Colombian end Tax corresp tax return onding The to amo the unt 2007 paid and 2008 in connection was 47,111,330,000 with the settlem Colombian ent pesos ( COP 1,929 US$24.4 million to US$1.00) as of June 30, 2013, based on . We are currently waiting an exchange rat for the resolution e of regarding the settlement to be fully signed.

2013 Second Quarter Results Page 18

DEFINITIONS OF TERMS AND DISCLOSURES

Methodology for translation, consolidation, and presentation of results

Under IFRS, beginning January 1, 2008, CEMEX translates the financial statements of foreign subsidiaries 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. 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 the second quarter of 2013 and the second quarter of 2012 are 12.64 and 13.59 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, 2013, and June 30, 2012, can be converted into their original local currency amount by multiplying the US dollar figure by the corresponding average exchange rates for 2013 and 2012, 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 the Caribbean region includes CEMEX’s operations in Argentina, Bahamas, Brazil, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica, Nicaragua, Panama, Peru, 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.

Definition of terms

Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation and coupon payments on our perpetual notes).

Maintenance capital expenditures investments incurred for the purpose of ensuring the company’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or company policies.

Net debt equals total debt (debt plus convertible bonds and financial leases) minus cash and cash equivalents.

Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points Strategic capital expenditures investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which a e projects designed to increase profitability by reducing costs.

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

Earnings per ADS

The number of average ADSs outstanding used for the calculation of earnings per ADS was 1,168.9 million for the second quarter of 2013; 1,167.8 million for year to date 2013; 1,157.9 million for the second quarter of 2012; and 1,157.0 million for year to date 2012.

According to the IAS 33 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 and the potential diluted shares (Stock options, Restricted Stock Options and Mandatory Convertible Shares). The shares issued as a result of share dividends, recapitalizations and potential diluted shares are considered as issued at the beginning of the period.

Exchange rates January June Second Quarter

2013 2012 2013 2012

Average Average Average Average

Mexican peso 12.63 13.25 12.64 13.59

Euro 0.7625 0.7677 0.7661 0.7842

British pound 0.6516 0.6312 0.653 0.6324

Amounts provided in units of local currency per US dollar.

2013 Second Quarter Results Page 19