EX-99.2 3 d209964dex992.htm EX-2

EX-2

Exhibit 2

2016 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 l-t-l l-t-l 2016 2015% Var.% Var.* 2016 2015% Var.% Var.* Consolidated cement volume 50,784 50,086 1% 17,198 17,213(0%) Consolidated ready-mix volume 39,143 39,778(2%) 13,560 13,634(1%) Consolidated aggregates volume 113,072 111,083 2% 40,045 39,068 3% Net sales 10,467 10,670(2%) 5% 3,579 3,637(2%) 4% Gross profit 3,652 3,532 3% 11% 1,301 1,238 5% 12% as % of net sales 34.9% 33.1% 1.8pp 36.4% 34.0% 2.4pp Operating earnings before other 1,452 1,263 15% 25% 551 439 25% 34% expenses, net as % of net sales 13.9% 11.8% 2.1pp 15.4% 12.1% 3.3pp Controlling interest net income (loss) 534(77) N/A 286(44) N/A Operating EBITDA 2,138 1,970 9% 17% 780 676 15% 22% as % of net sales 20.4% 18.5% 1.9pp 21.8% 18.6% 3.2pp Free cash flow after maintenance capital expenditures 1,049 292 259% 548 436 26% Free cash flow 869 117 642% 470 377 25% Total debt plus perpetual notes 13,965 15,581(10%) 13,965 15,581(10%) Earnings (loss)of continuing operations 0.40(0.03) N/A 0.21(0.02) N/A per ADS Fully diluted earnings (loss) of continuing operations per ADS (1) 0.40(0.03) N/A 0.21(0.02) N/A Average ADSs outstanding 1,429.6 1,400.2 2% 1,433.5 1,425.5 1% Employees 42,484 42,608(0%) 42,484 42,608(0%) This information does not include discontinued operations. Please see page 14 on this report for additional information. Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters. In millions of US dollars, except volumes, percentages, employees, and per-ADS amounts. Average ADSs outstanding are presented in millions. Please refer to page 7 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 2015, the effect of the 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 third quarter of 2016 decreased to Operating EBITDA margin increased by 3.2pp from 18.6% in the third US$3.6 billion, representing a decline of 2%, or an increase of 4% on a quarter of 2015 to 21.8% this quarter. like-to-like basis for the ongoing operations and for foreign exchange fluctuations compared with the third quarter of 2015. The increase in Gain (loss) on financial instruments for the quarter was a gain of consolidated net sales was due to higher prices of our products, in US$23 million, resulting mainly from derivatives related to CEMEX local currency terms, in most of our operations, as well as higher shares. volumes in Mexico and our European and Asia, Middle East & Africa Foreign exchange results for the quarter resulted in a gain of US$87 regions. million, mainly due to fluctuation of the Mexican peso versus the U.S. Cost of sales as a percentage of net sales decreased by 2.4pp during dollar. the third quarter of 2016 compared with the same period last year, Controlling interest net income (loss) was a gain of US$286 million in from 66.0% to 63.6%. The decrease was mainly driven by our cost the third quarter of 2016 versus a loss of US$44 million in the same reduction initiatives, as well as lower energy costs. quarter of 2015. The income primarily reflects higher operating Operating expenses as a percentage of net sales decreased by 0.9pp earnings before other expenses, net, lower other expenses, lower during the third quarter of 2016 compared with the same period last financial expenses, better results from financial instruments and a year, from 21.9% to 21.0%. The decrease was mainly driven by lower positive effect in foreign exchange results, partially offset by lower distribution expenses and our cost reduction initiatives. equity in gain of associates, higher income tax and higher non controlling interest net income. Operating EBITDA increased by 15% to US$780 million, or by 22% on a like-to-like basis for the ongoing operations and for foreign exchange Total debt plus perpetual notes decreased by US$882 million during fluctuations, during the third quarter of 2016 compared with the same the quarter. period last year. The increase on a like to like basis was mainly due to higher contributions in all of our operations. 2016 Third Quarter Results Page 2

Operating results Mexico January—September Third Quarter l-t-l % l-t-l % 2016 2015% Var. 2016 2015% Var. Var.* Var.* Net sales 2,163 2,175(1%) 16% 732 669 9% 25% Operating EBITDA 797 735 8% 26% 268 220 22% 40% Operating EBITDA margin 36.8% 33.8% 3.0pp 36.6% 32.8% 3.8pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—September Third Quarter January—September Third Quarter January—September Third Quarter variation Volume 3% 10%(7%) 6%(0%) 12% Price (USD) 1% 2%(7%)(7%)(9%)(5%) Price (local currency) 18% 17% 8% 7% 7% 8% In Mexico, domestic gray cement and ready-mix volumes increased by 10% and 6%, respectively, during the third quarter of 2016 versus the same period last year. During the first nine months of the year, domestic gray cement volumes increased 3% and ready-mix volumes decreased 7% versus the comparable period of 2015. Domestic gray cement prices during the third quarter increased 6% sequentially and 17% on a year-over-year basis. Cement volume growth during the third quarter reflects positive performance from the main demand sectors, especially industrial-and-commercial and formal housing. The industrial-and-commercial sector was supported by continued solid commercial activity, while the formal residential sector benefited from strong investment from the banking sector as well as an improvement in investment from INFONAVIT. The main indicators for the self-construction sector, including remittances, job creation, and consumption credit, remained solid during the quarter. United States January September Third Quarter l-t-l % l-t-l % 2016 2015% Var. 2016 2015% Var. Var.* Var.* Net sales 3,022 2,968 2% 5% 1,065 1,093(2%) 0% Operating EBITDA 476 392 21% 22% 196 172 13% 13% Operating EBITDA margin 15.8% 13.2% 2.6pp 18.4% 15.8% 2.6pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—September Third Quarter January—September Third Quarter January—September Third Quarter variation Volume 4%(2%) 2%(2%) 3%(2%) Price (USD) 4% 4% 1% 0% 1% 2% Price (local currency) 4% 4% 1% 0% 1% 2% In the United States, our domestic gray cement, ready-mix, and aggregates volumes decreased 2% during the third quarter of 2016 versus the same period last year. During the first nine months of the year and on a year-over-year basis, domestic gray cement, ready-mix, and aggregates increased 4%, 2% and 3%, respectively. Volumes during the third quarter were affected by poor weather in most of our footprint and a high base of comparison in 2015. Also, some delays in infrastructure spending and the pull forward of demand to the first half of 2016 due to a milder winter, affected volumes. In the residential sector, housing starts during the quarter decreased 2%. However, the most cement intensive single family segment starts increased 2% in the same period supported by low interest rates and inventories, and strong job creation and household formation. Construction spending in the industrial-and-commercial sector continued to slow, reflecting a headwind from energy, agriculture and manufacturing spending. We estimate national cement consumption for this sector was flat year over year during the quarter, with growth in the lodging, office and commercial segments offsetting a decline in manufacturing. On the infrastructure sector, after a strong start in the first half of 2016, highways-and-bridges spending slowed recently registering a flat performance year-to-date August mostly due to delays in certain infrastructure projects and lower state spending. 2016 Third Quarter Results Page 3

Operating results South, Central America and the Caribbean January—September Third Quarter l-t-l % l-t-l % 2016 2015% Var. 2016 2015% Var. Var.* Var.* Net sales 1,324 1,460(9%)(3%) 438 476(8%)(7%) Operating EBITDA 434 447(3%) 3% 145 139 4% 4% Operating EBITDA margin 32.8% 30.6% 2.2pp 33.2% 29.2% 4.0pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—September Third Quarter January—September Third Quarter January—September Third Quarter variation Volume 1%(2%)(14%)(16%)(14%)(17%) Price (USD)(6%)(2%)(7%) 0%(1%) 9% Price (local currency) 2%(1%) 2% 0% 8% 9% Our domestic gray cement volumes in the region decreased by 2% during the third quarter of 2016 and increased by 1% during the first nine months of the year versus the comparable periods last year. In Colombia, during the third quarter our domestic gray cement, ready-mix, and aggregates volumes decreased by 5%, 8%, and 12%, respectively, compared to the third quarter of 2015. For the first nine months of the year, our cement volumes increased by 2%, while our ready-mix and aggregates volumes decreased by 9% and 15%, respectively, on a year-over-year basis. Volumes were affected by weaker demand as well as a transportation strike. Adjusting for the effect of the strike, our quarterly cement volumes declined by around 3%. During the quarter, our cement market position improved versus the third quarter of last year and remained stable sequentially. For the first nine months of this year, our cement prices in local currency increased 7% versus the same period of 2015. Europe January—September Third Quarter l-t-l % l-t-l % 2016 2015% Var. 2016 2015% Var. Var.* Var.* Net sales 2,501 2,594(4%) 0% 865 921(6%)(1%) Operating EBITDA 302 301 0% 6% 129 131(2%) 5% Operating EBITDA margin 12.1% 11.6% 0.5pp 14.9% 14.2% 0.7pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—September Third Quarter January—September Third Quarter January—September Third Quarter variation Volume 1%(2%) 2% 3% 4% 3% Price (USD)(4%)(5%)(4%)(6%)(4%)(6%) Price (local currency) 0% 1%(1%)(2%) 1% 1% In the Europe region, our domestic gray cement volumes decreased 2% while our ready-mix and aggregates volumes increased 3% during the third quarter of 2016 versus the comparable period in 2015. During the first nine months of 2016 our domestic cement, ready-mix, and aggregates volumes increased 1%, 2% and 4%, respectively, compared with the same period of last year. In the United Kingdom, domestic gray cement and aggregates volumes increased on a year-over-year basis 5% and 4%, respectively, while ready-mix decreased 4% during the third quarter of 2016. For the first nine months of the year, our domestic gray cement and aggregates volumes increased 7% and 6%, respectively, while ready-mix decreased 3%, versus the comparable period in 2015. Demand from the residential and infrastructure sectors drove cement volumes during the quarter. In addition, cement volume growth during the quarter reflects higher sales of blended cement with fly ash. 2016 Third Quarter Results Page 4

Operating results In Spain, our domestic gray cement volumes decreased 13% and our ready-mix volumes increased 5% during the quarter and on a year-over-year basis. During the first nine months of the year, our domestic gray cement volumes decreased 1% and our ready-mix volumes increased 3%, compared with the same period of 2015. Our cement prices increased 2% sequentially during the quarter. Political uncertainty weighed on consumer sentiment and construction activity was particularly affected during the quarter. The residential sector, which was the main driver of cement demand during the quarter, benefited from favorable credit conditions and income perspectives, job creation, and pent-up housing demand. In Germany, our domestic gray cement volumes increased 5% and remained flat during the third quarter and first nine months of the year, respectively, compared with the same periods of last year. Volume growth reflects an improvement in competitive dynamics during the quarter. The residential sector was the main driver of cement consumption despite capacity constraints in the local construction industry and public authorities restrictions. This sector continued to benefit from low unemployment and mortgage rates, rising purchasing power and growing immigration. In Poland, domestic gray cement volumes for our operations decreased 4% and remained flat during the third quarter and first nine months of the year, respectively, versus the comparable periods in 2015. Our cement prices remained stable sequentially. Cement volume decline during the quarter reflects further delays in infrastructure sector projects and a slight loss in our market position. The residential sector was the main driver of demand during the quarter. In our operations in France, ready-mix and aggregates volumes increased by 4% during the third quarter and on a year over year basis. During the first nine months of 2016 versus the comparable period of last year, ready mix and aggregates volumes increased 5% and 6%, respectively. The residential and industrial-and-commercial sectors were the main drivers of demand during the quarter. The residential sector was supported by low interest rates and government s initiatives including a buy-to-let program and zero-rates loans for first time buyers. In the industrial-and-commercial sector, the double-digit growth in permits during the first eight months of this year sustained the recent double-digit increase in building starts. Asia, Middle East and Africa January—September Third Quarter l-t-l % l-t-l % 2016 2015% Var. 2016 2015% Var. Var.* Var.* Net sales 1,234 1,230 0% 5% 408 403 1% 5% Operating EBITDA 308 273 13% 19% 111 89 25% 32% Operating EBITDA margin 24.9% 22.2% 2.7pp 27.3% 22.0% 5.3pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—September Third Quarter January—September Third Quarter January—September Third Quarter variation Volume 4% 3%(2%)(3%) 7% 14% Price (USD)(6%)(2%) 2% 3% 5% 6% Price (local currency) 1% 4% 2% 3% 4% 4% Our domestic gray cement volumes in the Asia, Middle East and Africa region increased 3% and 4% during the third quarter and the first nine months of 2016, respectively, on a year-over-year basis. In the Philippines, our domestic gray cement volumes increased 3% and 4% during the third quarter and first nine months of 2016, respectively, versus the comparable periods of last year. During the third quarter there was a moderation in cement consumption, especially in infrastructure, due to the government transition post the election. In addition, adverse weather conditions affected quarterly volumes. The industrial-and-commercial sector continued to drive cement demand during the quarter, supported by the business-process-outsourcing segment. The residential sector remained stable during the quarter. In Egypt, our domestic gray cement volumes increased 7% and 10% during the third quarter and first nine months of 2016, respectively, versus the comparable periods of last year. Government projects related to the Suez Canal tunnels and port platforms in the city of Port Said, as well as low-income housing, continued to drive cement demand during the quarter. 2016 Third Quarter Results Page 5

Operating EBITDA, free cash flow and debt-related information Operating EBITDA and free cash flow January—September Third Quarter 2016 2015% Var 2016 2015% Var Operating earnings before other expenses, net 1,452 1,263 15% 551 439 25% + Depreciation and operating amortization 686 707 229 237 Operating EBITDA 2,138 1,970 9% 780 676 15%—Net financial expense 762 882 235 281—Maintenance capital expenditures 249 298 93 108—Change in working capital(190) 125(157)(136)—Taxes paid 251 452 43 49—Other cash items (net) 26(54) 17(46)—Free cash flow discontinued operations(8)(25) 0(16) Free cash flow after maintenance capital expenditures 1,049 292 259% 548 436 26%—Strategic capital expenditures 179 175 79 60 Free cash flow 869 117 642% 470 377 25% During the quarter, we used the 270 million dollars cash reserve created in the second quarter, as well as the proceeds from the Philippines IPO, for debt reduction. Our debt during the quarter reflects a negative foreign conversion effect of US$30 million. Information on debt and perpetual notes Second Third Third Quarter Quarter Quarter 2016 2015% Var 2016 2016 2015 Total debt (1) 13,523 15,136(11%) 14,406 Currency denomination Short-term 3% 2% 1% US dollar 78% 83% Long-term 97% 98% 99% Euro 21% 16% Perpetual notes 443 445(0%) 442 Mexican peso 1% 1% Cash and cash equivalents 590 457 29% 614 Other 0% 0% Net debt plus perpetual notes 13,376 15,124(12%) 14,233 Interest rate Consolidated funded debt (2)/EBITDA (3) Fixed 72% 74% 4.52 5.18 4.93 Variable 28% 26% Interest coverage (3) (4) 3.03 2.59 2.80 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 September 30, 2016 was US$12,723 million, in accordance with our contractual obligations under the Credit Agreement. (3) EBITDA calculated in accordance with IFRS. (4) Interest expense calculated in accordance with our contractual obligations under the Credit Agreement. 2016 Third Quarter Results Page 6

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 14,006,340,825 Stock-based compensation 31,906,839 End-of-quarter CPO-equivalent units outstanding 14,038,247,664 Outstanding units equal total CEMEX CPO-equivalent units less CPOs held in subsidiaries, which as of September 30, 2016 were 19,751,229. CEMEX has outstanding mandatorily convertible securities which, upon conversion, will increase the number of CPOs outstanding by approximately 227 million, subject to antidilution adjustments. Employee long-term compensation plans As of September 30, 2016, our executives held 30,962,833 restricted CPOs, representing 0.2% 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. 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 September 30, 2016, 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$69 million, including a liability of US$37 million corresponding to an embedded derivative related to our mandatorily convertible securities, which according to our debt agreements, is presented net of the assets associated with the derivative instruments. (1) Excludes an interest-rate swap related to our long-term energy contracts. As of September 30, 2016, the notional amount of this derivative was US$152 million, with a positive fair market value of approximately US$31 million. (2) Excludes exchange rate derivatives, as of September 30, 2016, the notional amount of the derivatives were US$202 million, with a negative fair market value of approximately US$1 million. (3) Excludes forward contracts negotiated to hedge the price of diesel fuel and coal as of September 30, 2016, the notional amount of the forward contracts were US$77 million, with a positive fair market value of approximately US$6 million. (4) Net of cash collateral deposited under open positions. Cash collateral was US$1 million as of September 30, 2015. (5) As required by IFRS, the estimated aggregate fair market value as of September 30, 2016 and 2015 includes a liability of US$37 million and US$18 million, respectively, relating to an embedded derivative in CEMEX s mandatorily convertible securities 2016 Third Quarter Results Page 7

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 like-to-like like-to-like INCOME STATEMENT 2016 2015% Var.% Var.* 2016 2015% Var.% Var.* Net sales 10,467,441 10,670,288(2%) 5% 3,578,706 3,637,024(2%) 4% Cost of sales(6,815,757)(7,138,202) 5%(2,277,699)(2,399,357) 5% Gross profit 3,651,684 3,532,086 3% 11% 1,301,006 1,237,667 5% 12% Operating expenses(2,199,510)(2,269,465) 3%(750,209)(798,321) 6% Operating earnings before other expenses, net 1,452,175 1,262,622 15% 25% 550,797 439,346 25% 34% Other expenses, net(80,739)(95,234) 15%(25,502)(88,383) 71% Operating earnings 1,371,435 1,167,388 17% 525,296 350,964 50% Financial expense(906,408)(962,030) 6%(293,616)(309,897) 5% Other financial income (expense), net 193,254(71,293) N/A 102,373(75,904) N/A Financial income 17,468 13,272 32% 6,316 4,418 43% Results from financial instruments, net 21,595(151,758) N/A 22,916(81,797) N/A Foreign exchange results 196,607 110,382 78% 86,848 15,674 454% Effects of net present value on assets and liabilities and others, net(42,417)(43,188) 2%(13,706)(14,199) 3% Equity in gain (loss) of associates 30,259 30,635(1%) 13,732 30,676(55%) Income (loss) before income tax 688,540 164,700 318% 347,784(4,161) N/A Income tax(125,113)(211,446) 41%(43,334)(30,994)(40%) Profit (loss) of continuing operations 563,427(46,746) N/A 304,450(35,156) N/A Discontinued operations 24,165 13,471 79%(385) 3,377 N/A Consolidated net income (loss) 587,591(33,275) N/A 304,066(31,778) N/A Non-controlling interest net income (loss) 54,012 43,995 23% 18,480 12,337 50% Controlling interest net income (loss) 533,580(77,270) N/A 285,586(44,116) N/A Operating EBITDA 2,138,072 1,970,026 9% 17% 779,929 676,449 15% 22% Earnings (loss) of continued operations per ADS 0.40(0.03) N/A 0.21(0.02) N/A Earnings (loss) of discontinued operations per ADS 0.02 0.01 76%(0.00)—N/A As of September 30 BALANCE SHEET 2016 2015% Var. Total assets 30,369,239 32,953,427(8%) Cash and cash equivalents 589,738 456,650 29% Trade receivables less allowance for doubtful accounts 1,699,570 1,856,308(8%) Other accounts receivable 249,975 331,174(25%) Inventories, net 934,325 1,090,722(14%) Assets held for sale 787,951 423,383 86% Other current assets 248,130 330,078(25%) Current assets 4,509,690 4,488,313 0% Property, machinery and equipment, net 11,592,172 12,555,240(8%) Other assets 14,267,377 15,909,873(10%) Total liabilities 20,443,739 23,548,739(13%) Liabilities held for sale 56,137 149,160(62%) Other current liabilities 4,267,313 4,260,485 0% Current liabilities 4,323,450 4,409,645(2%) Long-term liabilities 11,894,429 13,555,843(12%) Other liabilities 4,225,860 5,583,252(24%) Total Stockholder’s equity 9,925,500 9,404,687 6% Non-controlling interest and perpetual instruments 1,404,144 1,166,795 20% Total Controlling interest 8,521,356 8,237,892 3% 2016 Third Quarter Results Page 8

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—September Third Quarter INCOME STATEMENT 2016 2015% Var. 2016 2015% Var. Net sales 191,240,148 167,630,227 14% 67,923,830 60,338,227 13% Cost of sales(124,523,873)(112,141,151)(11%)(43,230,729)(39,805,331)(9%) Gross profit 66,716,274 55,489,076 20% 24,693,101 20,532,896 20% Operating expenses(40,185,041)(35,653,291)(13%)(14,238,967)(13,244,138)(8%) Operating earnings before other expenses, net 26,531,233 19,835,785 34% 10,454,134 7,288,757 43% Other expenses, net(1,475,108)(1,496,121) 1%(484,020)(1,466,271) 67% Operating earnings 25,056,126 18,339,664 37% 9,970,113 5,822,486 71% Financial expense(16,560,076)(15,113,494)(10%)(5,572,841)(5,141,194)(8%) Other financial income (expense), net 3,530,743(1,120,006) N/A 1,943,042(1,259,246) N/A Financial income 319,142 208,498 53% 119,875 73,293 64% Results from financial instruments, net 394,548(2,384,118) N/A 434,941(1,357,011) N/A Foreign exchange results 3,592,008 1,734,099 107% 1,648,367 260,030 534% Effects of net present value on assets and liabilities and others, net(774,954)(678,485)(14%)(260,141)(235,558)(10%) Equity in gain (loss) of associates 552,830 481,274 15% 260,634 508,915(49%) Income (loss) before income tax 12,579,623 2,587,438 386% 6,600,949(69,039) N/A Income tax(2,285,812)(3,321,822) 31%(822,482)(514,191)(60%) Profit (loss) of continuing operations 10,293,811(734,384) N/A 5,778,467(583,230) N/A Discontinued operations 441,486 211,634 109%(7,302) 56,030 N/A Consolidated net income (loss) 10,735,297(522,750) N/A 5,771,165(527,200) N/A Non-controlling net income (loss) 986,799 691,165 43% 350,747 204,679 71% Controlling net income (loss) 9,748,498(1,213,915) N/A 5,420,418(731,879) N/A Operating EBITDA 39,062,581 30,949,114 26% 14,803,044 11,222,283 32% Earnings (loss) of continued operations per ADS 7.27(0.44) N/A 4.05(0.38) N/A Earnings (loss) of discontinued operations per ADS 0.31 0.15 104%(0.01) 0.04 N/A As of September 30 BALANCE SHEET 2016 2015% Var. Total assets 588,859,552 557,242,446 6% Cash and cash equivalents 11,435,026 7,721,944 48% Trade receivables less allowance for doubtful accounts 32,954,669 31,390,167 5% Other accounts receivable 4,847,012 5,600,154(13%) Inventories, net 18,116,560 18,444,103(2%) Assets held for sale 15,278,375 7,159,399 113% Other current assets 4,811,245 5,581,614(14%) Current assets 87,442,887 75,897,380 15% Property, machinery and equipment, net 224,772,224 212,309,112 6% Other assets 276,644,440 269,035,954 3% Total liabilities 396,404,106 398,209,184(0%) Liabilities held for sale 1,088,494 2,522,290(57%) Other current liabilities 82,743,193 72,044,799 15% Current liabilities 83,831,687 74,567,089 12% Long-term liabilities 230,632,986 229,229,302 1% Other liabilities 81,939,433 94,412,793(13%) Total stockholders’ equity 192,455,446 159,033,263 21% Non-controlling interest and perpetual instruments 27,226,354 19,730,504 38% Total controlling interest 165,229,092 139,302,758 19% 2016 Third Quarter Results Page 9

Operating results Operating Summary per Country In thousands of U.S. dollars January—September Third Quarter like-to-like like-to-like NET SALES 2016 2015% Var.% Var. * 2016 2015% Var.% Var. * Mexico 2,162,890 2,175,116(1%) 16% 731,667 669,021 9% 25% U.S.A. 3,021,643 2,968,144 2% 5% 1,065,366 1,092,548(2%) 0% South, Central America and the Caribbean 1,323,894 1,459,749(9%)(3%) 437,916 476,182(8%)(7%) Europe 2,501,457 2,593,941(4%) 0% 864,565 921,149(6%)(1%) Asia, Middle East and Africa 1,234,126 1,230,074 0% 5% 407,817 402,910 1% 5% Others and intercompany eliminations 223,431 243,264(8%)(8%) 71,376 75,213(5%)(5%) TOTAL 10,467,441 10,670,288(2%) 5% 3,578,706 3,637,024(2%) 4% GROSS PROFIT Mexico 1,145,857 1,083,275 6% 23% 388,376 337,067 15% 32% U.S.A. 762,735 688,401 11% 11% 292,104 283,838 3% 3% South, Central America and the Caribbean 571,885 602,090(5%) 1% 192,628 191,618 1% 0% Europe 697,228 713,765(2%) 3% 267,635 278,105(4%) 3% Asia, Middle East and Africa 428,328 380,870 12% 18% 153,842 128,213 20% 25% Others and intercompany eliminations 45,651 63,687(28%)(28%) 6,421 18,825(66%)(66%) TOTAL 3,651,684 3,532,086 3% 11% 1,301,006 1,237,667 5% 12% OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Mexico 699,278 619,767 13% 31% 235,927 183,074 29% 48% U.S.A. 177,588 93,704 90% 92% 94,578 71,819 32% 31% South, Central America and the Caribbean 377,358 386,807(2%) 4% 125,887 119,662 5% 5% Europe 155,914 151,542 3% 11% 80,228 79,299 1% 10% Asia, Middle East and Africa 250,021 214,271 17% 23% 92,073 69,463 33% 39% Others and intercompany eliminations(207,984)(203,469)(2%)(18%)(77,896)(83,972) 7%(4%) TOTAL 1,452,175 1,262,622 15% 25% 550,797 439,346 25% 34% 2016 Third Quarter Results Page 10

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 OPERATING EBITDA 2016 2015% Var.% Var. * 2016 2015% Var.% Var. * Mexico 796,987 735,351 8% 26% 267,506 219,511 22% 40% U.S.A. 476,432 392,201 21% 22% 195,534 172,484 13% 13% South, Central America and the Caribbean 434,077 446,592(3%) 3% 145,209 139,044 4% 4% Europe 302,216 300,977 0% 6% 128,589 130,867(2%) 5% Asia, Middle East and Africa 307,783 272,663 13% 19% 111,155 88,629 25% 32% Others and intercompany eliminations(179,424)(177,758)(1%)(19%)(68,064)(74,085) 8%(4%) TOTAL 2,138,072 1,970,026 9% 17% 779,929 676,449 15% 22% OPERATING EBITDA MARGIN Mexico 36.8% 33.8% 36.6% 32.8% U.S.A. 15.8% 13.2% 18.4% 15.8% South, Central America and the Caribbean 32.8% 30.6% 33.2% 29.2% Europe 12.1% 11.6% 14.9% 14.2% Asia, Middle East and Africa 24.9% 22.2% 27.3% 22.0% TOTAL 20.4% 18.5% 21.8% 18.6% 2016 Third Quarter Results Page 11

Operating results Volume Summary Consolidated volume summary Cement and aggregates: Thousands of metric tons. Ready-mix: Thousands of cubic meters. January—September Third Quarter 2016 2015% Var. 2016 2015% Var. Consolidated cement volume 1 50,784 50,086 1% 17,198 17,213(0%) Consolidated ready-mix volume 39,143 39,778(2%) 13,560 13,634(1%) Consolidated aggregates volume 113,072 111,083 2% 40,045 39,068 3% Per-country volume summary January—September Third Quarter Third Quarter 2016 Vs. DOMESTIC GRAY CEMENT VOLUME 2016 Vs. 2015 2016 Vs. 2015 Second Quarter 2016 Mexico 3% 10%(9%) U.S.A. 4%(2%) 2% South, Central America and the Caribbean 1%(2%)(2%) Europe 1%(2%)(5%) Asia, Middle East and Africa 4% 3% 4% READY-MIX VOLUME Mexico(7%) 6% 1% U.S.A. 2%(2%)(0%) South, Central America and the Caribbean(14%)(16%)(5%) Europe 2% 3% 1% Asia, Middle East and Africa(2%)(3%)(6%) AGGREGATES VOLUME Mexico(0%) 12%(0%) U.S.A. 3%(2%) 3% South, Central America and the Caribbean(14%)(17%)(5%) Europe 4% 3%(0%) Asia, Middle East and Africa 7% 14% 11% 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar, and clinker. 2016 Third Quarter Results Page 12

Operating results Price Summary Variation in U.S. Dollars January—September Third Quarter Third Quarter 2016 Vs. DOMESTIC GRAY CEMENT PRICE 2016 Vs. 2015 2016 Vs. 2015 Second Quarter 2016 Mexico 1% 2% 1% U.S.A. 4% 4% 0% South, Central America and the Caribbean (*)(6%)(2%)(3%) Europe (*)(4%)(5%)(2%) Asia, Middle East and Africa (*)(6%)(2%)(1%) READY-MIX PRICE Mexico(7%)(7%)(4%) U.S.A. 1% 0% 1% South, Central America and the Caribbean (*)(7%) 0% 1% Europe (*)(4%)(6%)(4%) Asia, Middle East and Africa (*) 2% 3% 1% AGGREGATES PRICE Mexico(9%)(5%)(1%) U.S.A. 1% 2%(0%) South, Central America and the Caribbean (*)(1%) 9%(1%) Europe (*)(4%)(6%)(5%) Asia, Middle East and Africa (*) 5% 6% 2% Variation in Local Currency January—September Third Quarter Third Quarter 2016 Vs. DOMESTIC GRAY CEMENT PRICE 2016 Vs. 2015 2016 Vs. 2015 Second Quarter 2016 Mexico 18% 17% 6% U.S.A. 4% 4% 0% South, Central America and the Caribbean (*) 2%(1%)(2%) Europe (*) 0% 1% 0% Asia, Middle East and Africa (*) 1% 4%(0%) READY-MIX PRICE Mexico 8% 7% 2% U.S.A. 1% 0% 1% South, Central America and the Caribbean (*) 2% 0% 1% Europe (*)(1%)(2%)(2%) Asia, Middle East and Africa (*) 2% 3% 1% AGGREGATES PRICE Mexico 7% 8% 4% U.S.A. 1% 2%(0%) South, Central America and the Caribbean (*) 8% 9%(0%) Europe (*) 1% 1%(1%) Asia, Middle East and Africa (*) 4% 4% 1% (*) Volume weighted-average price. 2016 Third Quarter Results Page 13

Other information Capped Calls In relation to the capped calls purchased by CEMEX with proceeds of its BALANCE SHEET 1 As of September 30 subordinated convertibles notes issued in March 2011 and due in March 2018, during August of 2016 we amended 58.3% of the total notional(Millions of Mexican pesos) 2016 amount of such capped calls, with the purpose of reducing the volatility Current assets 975 of their fair value by lowering the strike prices in exchange for reducing Property, machinery and equipment, net 6,479 the number of underlying options. These amendments involved no cash settlements. As a result of such amendments, CEMEX retains a total Intangible assets and other non-current assets 7,824 amount of capped call transactions over approximately 36.1 million Total assets held for sale 15,278 CEMEX ADSs after antidilution adjustments maturing in March 2018, with weighted average strike prices of US$8.0 and US$12.0, while the Current liabilities 642 remainder capped call transactions over approximately 32.2 million Non-current liabilities 447 CEMEX ADSs after antidilution adjustments maturing in March 2018 Total liabilities held for sale 1,088 continue to have the same original terms and conditions, with strike prices of US$8.92 and US$14.41. Net assets held for sale 14,190 Assets held for Sale and Discontinued Operations 1 As of June 30, 2016, assets and liabilities held for sale from our expected sales of net assets in the United States mentioned above were presented within On March 10, 2016, CEMEX announced the sale to SIAM City Cement other current assets and other current liabilities, respectively. Public Company limited ( SIAM Cement ) of its operations in Bangladesh and Thailand for approximately US$53 million. CEMEX s operations in Bangladesh and Thailand during 2016 until its disposal on May 26, 2016 The following table presents condensed combined information of the and for the nine-month period ended September 30, 2015 included in statement of operations of CEMEX discontinued operations in Croatia, CEMEX s statements of operations were reclassified to the single line including assets in Bosnia and Herzegovina, Montenegro and Serbia, item Discontinued operations. Bangladesh and Thailand for the nine-month period ended September 30, 2016 and in Austria, Hungary, Croatia, including assets in Bosnia and With an effective date on October 31, 2015, after all agreed upon Herzegovina, Montenegro and Serbia, Bangladesh and Thailand for the conditions precedent were satisfied, CEMEX completed the sale of its nine-month period ended September 30, 2015: operations in Austria and Hungary announced on August 12, 2015 to the Rohrdorfer Group for approximately 165.1 million, after final INCOME STATEMENT Jan-Sep Third Quarter adjustments agreed for changes in cash and working capital balances as(Millions of Mexican pesos) 2016 2015 2016 2015 of the transfer date. The combined operations in Austria and Hungary Sales consisted of 29 aggregate quarries and 68 ready-mix plants. The 1,867 5,382 423 2,052 operations in Austria and Hungary for the nine-month period ended Cost of sales and operating expenses(1,726)(5,030)(383)(1,886) September 30, 2015 included in CEMEX s statement of operations were Other expenses, net(30)(4)(20)(12) reclassified to the single line item Discontinued operations. Interest expense, net and others(18)(51)(6)(16) In addition, on August 12, 2015, CEMEX agreed with Duna-Dr va Cement, Income (loss) before income tax 94 296 14 137 the sale of its Croatia operations, including assets in Bosnia and Income tax(43)(80)(13)(79) Herzegobina, Montenegro and Serbia, for approximately 230.9 million, amount subject to adjustments for changes in cash and working capital at Net income (loss) 51 216 1 59 the change of control date. The operations in Croatia, including assets in Non controlling net income(0)(4) 1(3) Bosnia and Herzegobina, Montenegro and Serbia, mainly consist of three Controlling net income 2 51 212 2 56 cement plants with aggregate annual production capacity of 2 approximately 2.4 million tons of cement, two aggregates quarries and Does not include the gain in sale of Bangladesh and Thailand operations in 2016, seven ready-mix plants. As of September 30, 2016, the closing of this for approximately MXN 418 million (US$23 million). transaction is subject to customary conditions precedent, which includes the approval from the relevant authorities. CEMEX expects to conclude the sale of its operations in Croatia, including assets in Bosnia and Herzegovina, Montenegro and Serbia, during the last quarter of 2016 or early in 2017. The operations in Croatia, including assets in Bosnia and Herzegovina, Montenegro and Serbia, included in CEMEX s statements of operations for the nine-month periods ended September 30, 2016 and 2015 were reclassified to the single line item Discontinued Operations. As of September 30, 2016, the balance sheets of CEMEX s operations in Croatia, including assets in Bosnia and Herzegovina, Montenegro and Serbia, as well as the net assets expected to be sold in the United Sates during the fourth quarter of 2016, including our Odessa and Fairborn cement plants, have been reclassified to assets and liabilities held for sale. These net assets to be sold in the United States do not represent discontinued operations. As of September 30, 2016, the combined selected condensed balance sheet information of CEMEX operations in these units was as follows: 2016 Third Quarter Results Page 14

Definitions of terms and disclosures Methodology for translation, consolidation, and presentation of Free cash flow equals operating EBITDA minus net interest expense, results maintenance and strategic capital expenditures, change in working Under IFRS, beginning January 1, 2008, CEMEX translates the financial capital, taxes paid, and other cash items (net other expenses less statements of foreign subsidiaries using exchange rates at the reporting proceeds from the disposal of obsolete and/or substantially depleted date for the balance sheet and the exchange rates at the end of each operating fixed assets that are no longer in operation and coupon month for the income statement. CEMEX reports its consolidated results payments on our perpetual notes). in Mexican pesos. Maintenance capital expenditures investments incurred for the purpose of ensuring the company s operational continuity. These include capital For the reader s convenience, beginning June 30, 2008, US dollar expenditures on projects required to replace obsolete assets or maintain amounts for the consolidated entity are calculated by converting the current operational levels, and mandatory capital expenditures, which nominal Mexican peso amounts at the end of each quarter using the are projects required to comply with governmental regulations or average MXN/US$ exchange rate for each quarter. The exchange rates company policies. used to convert results for the third quarter of 2016 and the third Net debt equals total debt (debt plus convertible bonds and financial quarter of 2015 are 18.98 and 16.59 Mexican pesos per US dollar, leases) minus cash and cash equivalents. respectively. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. Per-country/region figures are presented in US dollars for the reader s pp equals percentage points convenience. Figures presented in US dollars for Mexico, as of Prices all references to pricing initiatives, price increases or decreases, September 30, 2016, and September 30, 2015, can be converted into refer to our prices for our products their original local currency amount by multiplying the US-dollar figure Strategic capital expenditures investments incurred with the purpose of by the corresponding average exchange rates for 2016 and 2015, increasing the company s profitability. These include capital provided below. expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are Breakdown of regions projects designed to increase profitability by reducing costs. The South, Central America and the Caribbean region includes Working capital equals operating accounts receivable (including other CEMEX s operations in Argentina, Bahamas, Brazil, Colombia, Costa current assets received as payment in kind) plus historical inventories Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica, minus operating payables. Nicaragua, Panama, Peru, and Puerto Rico, as well as trading operations in the Caribbean region. Earnings per ADS Europe includes operations in Spain, the Czech Republic, France, The number of average ADSs outstanding used for the calculation of earnings Germany, Latvia, Poland, and the United Kingdom, as well as trading per ADS was 1,433.5 million for the third quarter of 2016; 1,429.6 million for operations in several Nordic countries. year-to-date 2016; 1,425.5 million for the third quarter of 2015; and 1,400.2 The Asia, Middle East and Africa region includes operations in Egypt, million for year-to-date 2015. Israel, Malaysia, and the Philippines. 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 Definition of terms beginning of the period. Exchange rates January—September Third Quarter Third Quarter 2016 2015 2016 2015 2016 2015 Average Average Average Average End of period End of period Mexican peso 18.27 15.71 18.98 16.59 19.39 16.91 Euro 0.8972 0.9021 0.8966 0.9013 0.8901 0.8949 British pound 0.7252 0.6528 0.7649 0.6506 0.7709 0.6610 Amounts provided in units of local currency per US dollar. 2016 Third Quarter Results Page 15