EX-99.2 3 d483646dex992.htm THIRD QUARTER 2017 RESULTS FOR CEMEX LATAM HOLDINGS, S.A.

Exhibit 99.2

| ● |  | Stock Listing Information

Colombian Stock Exchange S.A.

Ticker: CLH

| ● |  | Investor Relations

Jesús Ortiz de la Fuente

+57 (1) 603-9051

E-mail: jesus.ortizd@cemex.com

OPERATING AND FINANCIAL HIGHLIGHTS |  |

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Consolidated cement volume |  |  | 5,673 |  |  |  | 5,666 |  |  |  | 0 | % |  |  | 1,892 |  |  |  | 1,892 |  |  |  | 0 | %
Consolidated domestic gray cement volume |  |  | 4,974 |  |  |  | 4,976 |  |  |  | (0 | %) |  |  | 1,652 |  |  |  | 1,670 |  |  |  | (1 | %)
Consolidated ready-mix volume |  |  | 2,197 |  |  |  | 2,355 |  |  |  | (7 | %) |  |  | 721 |  |  |  | 795 |  |  |  | (9 | %)
Consolidated aggregates volume |  |  | 5,234 |  |  |  | 5,547 |  |  |  | (6 | %) |  |  | 1,695 |  |  |  | 1,869 |  |  |  | (9 | %)
Net sales |  |  | 954 |  |  |  | 1,012 |  |  |  | (6 | %) |  |  | 312 |  |  |  | 340 |  |  |  | (8 | %)
Gross profit |  |  | 409 |  |  |  | 496 |  |  |  | (18 | %) |  |  | 128 |  |  |  | 168 |  |  |  | (23 | %)
as % of net sales |  |  | 42.8 | % |  |  | 49.0 | % |  |  | (6.2pp | ) |  |  | 41.2 | % |  |  | 49.3 | % |  |  | (8.1pp | )
Operating earnings before other expenses, net |  |  | 177 |  |  |  | 276 |  |  |  | (36 | %) |  |  | 53 |  |  |  | 92 |  |  |  | (43 | %)
as % of net sales |  |  | 18.6 | % |  |  | 27.2 | % |  |  | (8.6pp | ) |  |  | 16.9 | % |  |  | 27.1 | % |  |  | (10.2pp | )
Controlling interest net income (loss) |  |  | 79 |  |  |  | 143 |  |  |  | (45 | %) |  |  | 28 |  |  |  | 43 |  |  |  | (34 | %)
Operating EBITDA |  |  | 239 |  |  |  | 340 |  |  |  | (30 | %) |  |  | 71 |  |  |  | 114 |  |  |  | (38 | %)
as % of net sales |  |  | 25.0 | % |  |  | 33.6 | % |  |  | (8.6pp | ) |  |  | 22.7 | % |  |  | 33.4 | % |  |  | (10.7pp | )
Free cash flow after maintenance capital expenditures |  |  | 77 |  |  |  | 181 |  |  |  | (58 | %) |  |  | 19 |  |  |  | 54 |  |  |  | (65 | %)
Free cash flow |  |  | 46 |  |  |  | 73 |  |  |  | (37 | %) |  |  | 17 |  |  |  | 22 |  |  |  | (26 | %)
Net debt |  |  | 881 |  |  |  | 969 |  |  |  | (9 | %) |  |  | 881 |  |  |  | 969 |  |  |  | (9 | %)
Total debt |  |  | 922 |  |  |  | 1,016 |  |  |  | (9 | %) |  |  | 922 |  |  |  | 1,016 |  |  |  | (9 | %)
Earnings per share |  |  | 0.14 |  |  |  | 0.26 |  |  |  | (45 | %) |  |  | 0.05 |  |  |  | 0.08 |  |  |  | (35 | %)
Shares outstanding at end of period |  |  | 557 |  |  |  | 556 |  |  |  | 0 | % |  |  | 557 |  |  |  | 556 |  |  |  | 0 | %
Employees |  |  | 4,351 |  |  |  | 4,724 |  |  |  | (8 | %) |  |  | 4,351 |  |  |  | 4,724 |  |  |  | (8 | %)

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-share amounts.

Shares outstanding are presented in millions.

Consolidated net sales during the third quarter of 2017 declined by 8% compared to those of the third quarter of 2016. For the first nine months of the year, consolidated net sales decreased by 6%, compared to those of the same period of 2016. These declines are mostly explained by lower cement volumes and prices in Colombia.

Cost of sales as a percentage of net sales during the first nine months of the year increased by 6.2pp from 51.0% to 57.2%, on a year-over-year basis.

Operating expenses as a percentage of net sales during the nine months of the year increased by 2.5pp from 21.8% to 24.2%, compared to those of the same period of 2016.

Operating EBITDA during the third quarter of 2017 declined by 38% compared to that of third quarter of 2016. During the first nine months

of the year operating EBITDA decreased by 30%, compared to that of the same period in 2016. This decline is mainly explained by lower cement volumes and prices in Colombia.

Operating EBITDA margin during the third quarter of 2017 declined by 10.7pp, compared to that of the third quarter of 2016. During the first nine months of the year operating EBITDA margin declined by 8.6pp compared to that of the same period last year.

Controlling interest net income during the first nine months of the year reached US$79 million, declining 45% compared to that of the same period in 2016. During the third quarter of 2017 controlling interest net income reached US$28 million, declining by 34% compared to that of the third quarter of 2016.

Total debt at the end of the quarter reached US$922 million.

2017 Third Quarter Results |  | Page 2

OPERATING RESULTS |  |

Colombia

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Net sales |  |  | 432 |  |  |  | 512 |  |  |  | (16%) |  |  |  | 142 |  |  |  | 173 |  |  |  | (18 | %)
Operating EBITDA |  |  | 83 |  |  |  | 176 |  |  |  | (53%) |  |  |  | 22 |  |  |  | 60 |  |  |  | (63 | %)
Operating EBITDA margin |  |  | 19.1 | % |  |  | 34.4 | % |  |  | (15.3pp) |  |  |  | 15.8 | % |  |  | 34.9 | % |  |  | (19.1pp | )

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |
Volume |  |  | (5 | %) |  |  | (4 | %) |  |  | (15 | %) |  |  | (16 | %) |  |  | (18 | %) |  |  | (21 | %)
Price (USD) |  |  | (18 | %) |  |  | (22 | %) |  |  | 1 | % |  |  | (4 | %) |  |  | 7 | % |  |  | 5 | %
Price (local currency) |  |  | (21 | %) |  |  | (22 | %) |  |  | (2 | %) |  |  | (4 | %) |  |  | 4 | % |  |  | 5 | %

Year-over-year percentage variation.

In Colombia, during the third quarter our domestic gray cement, ready-mix and aggregates volumes declined by 4%, 16%, and 21%, respectively, compared to those of the third quarter of 2016. For the first nine months of the year, our domestic gray cement, ready-mix and aggregates volumes decreased by 5%, 15%, and 18%, respectively, compared to those of the same period of 2016.

Cement consumption during the quarter was affected by weak demand from industrial and commercial projects, as well as from high and middle income housing developments. Although our cement prices declined in 3Q17, on a year-over-year and sequential basis, as of September they were 2% higher than in June.

The deterioration in EBITDA during this quarter, on a year over year basis, relates mainly to lower cement volumes and prices, higher distribution costs due to the closure of our Bucaramanga plant, higher fuel costs, higher costs related to the scope of the maintenance of a kiln in our Ibague cement plant, as well as certain the one-off effects related to our housing solutions business, and the adverse arbitration decision of an electricity contract.

Panama

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Net sales |  |  | 212 |  |  |  | 200 |  |  |  | 6 | % |  |  | 71 |  |  |  | 70 |  |  |  | 1 | %
Operating EBITDA |  |  | 87 |  |  |  | 90 |  |  |  | (3 | %) |  |  | 30 |  |  |  | 32 |  |  |  | (8 | %)
Operating EBITDA margin |  |  | 41.3 | % |  |  | 45.3 | % |  |  | (4.0pp | ) |  |  | 42.0 | % |  |  | 46.4 | % |  |  | (4.4pp | )

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |
Volume |  |  | 5 | % |  |  | (3 | %) |  |  | 16 | % |  |  | 4 | % |  |  | 18 | % |  |  | 15 | %
Price (USD) |  |  | (1 | %) |  |  | (1 | %) |  |  | (0 | %) |  |  | 0 | % |  |  | (3 | %) |  |  | (9 | %)
Price (local currency) |  |  | (1 | %) |  |  | (1 | %) |  |  | (0 | %) |  |  | 0 | % |  |  | (3 | %) |  |  | (9 | %)

Year-over-year percentage variation.

In Panama during the third quarter our domestic gray cement volumes declined by 3%, while our ready-mix and aggregates volumes increased by 4% and 15% respectively, compared to those of the third quarter of 2016. For the first nine months of 2017, our domestic gray cement, ready-mix and aggregates volumes increased by 5%, 16%, and 18% respectively, compared to those of the first nine months of 2016.

Our cement dispatches in the country during the quarter and the first nine months of 2017 were driven by infrastructure works like the second line of the Subway, Minera Panamá, and the urban renovation of Colon city, as well as by middle-income and low-income residential projects.

Our margin decline of 4.4 percentage points during the quarter is mostly explained by lower cement volumes, a product-mix effect reflecting an increase in sales of ready-mix and aggregates, and an increase in our fuel costs

2017 Third Quarter Results |  | Page 3

OPERATING RESULTS |  |

Costa Rica

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Net sales |  |  | 114 |  |  |  | 120 |  |  |  | (5 | %) |  |  | 37 |  |  |  | 38 |  |  |  | (2 | %)
Operating EBITDA |  |  | 40 |  |  |  | 49 |  |  |  | (18 | %) |  |  | 13 |  |  |  | 14 |  |  |  | (6 | %)
Operating EBITDA margin |  |  | 35.2 | % |  |  | 40.7 | % |  |  | (5.5pp | ) |  |  | 35.1 | % |  |  | 36.8 | % |  |  | (1.7pp | )

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |
Volume |  |  | (1 | %) |  |  | (0 | %) |  |  | 2 | % |  |  | 22 | % |  |  | 28 | % |  |  | 33 | %
Price (USD) |  |  | (8 | %) |  |  | (6 | %) |  |  | (15 | %) |  |  | (10 | %) |  |  | (52 | %) |  |  | (51 | %)
Price (local currency) |  |  | (4 | %) |  |  | (3 | %) |  |  | (11 | %) |  |  | (7 | %) |  |  | (49 | %) |  |  | (50 | %)

Year-over-year percentage variation.

In Costa Rica, during the third quarter our domestic gray cement volumes remained flat, while our ready-mix and aggregates

volumes increased by 22% and 33%, respectively, compared to those of the third quarter of 2016. For the first nine months

of the year our domestic gray cement volumes declined by 1%, while our ready-mix and aggregates volumes increased by 2%

and 28%, respectively, compared to those of the same period of 2016.

Despite severe weather conditions during the quarter, we have seen positive signs with regards to demand for our products

in the country. Daily national cement consumption increased during the July-September period for the second consecutive

quarter, on a year-over-year basis, fueled by industrial and commercial developments.

Year to date, our operations in Costa Rica have had the highest alternative fuels substitution rate in our portfolio. This

quarter it reached 27.8%, a new record for this operation, helping us partially offset the increase in fuel costs in the country.

Rest of CLH

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Net sales |  |  | 215 |  |  |  | 197 |  |  |  | 9 | % |  |  | 67 |  |  |  | 64 |  |  |  | 5 | %
Operating EBITDA |  |  | 66 |  |  |  | 65 |  |  |  | 1 | % |  |  | 19 |  |  |  | 20 |  |  |  | (8 | %)
Operating EBITDA margin |  |  | 30.4 | % |  |  | 32.8 | % |  |  | (2.4pp | ) |  |  | 27.9 | % |  |  | 31.8 | % |  |  | (3.9pp | )

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |  |  | January - September |  |  | Third Quarter |
Volume |  |  | 10 | % |  |  | 7 | % |  |  | 27 | % |  |  | 20 | % |  |  | 62 | % |  |  | 2 | %
Price (USD) |  |  | (1 | %) |  |  | (1 | %) |  |  | (9 | %) |  |  | (4 | %) |  |  | (12 | %) |  |  | 2 | %
Price (local currency) |  |  | (1 | %) |  |  | (1 | %) |  |  | (9 | %) |  |  | (4 | %) |  |  | (8 | %) |  |  | 7 | %

Year-over-year percentage variation.

In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala, El Salvador and Brazil, during the third quarter of 2017 our domestic gray cement, ready-mix and aggregates volumes increased by 7%, 20% and 2%, respectively, compared to those of the third quarter of 2016. During the first nine months of 2017, our domestic gray cement, ready-mix and aggregates volumes increased by 10%, 27% and 62%, respectively, compared to those of the same period of 2016. Despite the unusual rainy weather conditions in Central America in recent months, cement volumes increased for the ninth consecutive quarter in the Rest of CLH region in the July-September period, on a year-over-year basis.

In Nicaragua, infrastructure works continued to drive cement consumption. Although housing developments continue to demand our products, construction activity for new projects has slowed down.

With regards to Guatemala, construction activity during the quarter was affected by rainy weather conditions, and by the decrease in demand from two of the most important mining projects in the country. National cement consumption continues to rely heavily on private investment, mostly from industrial and commercial works. Construction of public works remains stagnant and with very low levels of disbursements.

2017 Third Quarter Results |  | Page 4

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION |  |

Operating EBITDA and free cash flow

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Operating earnings before other expenses, net |  |  | 177 |  |  |  | 276 |  |  |  | (36 | %) |  |  | 52 |  |  |  | 93 |  |  |  | (44 | %)
+ Depreciation and operating amortization |  |  | 61 |  |  |  | 64 |  |  |  |  |  |  |  | 18 |  |  |  | 21 |  |  |  |  |
Operating EBITDA |  |  | 239 |  |  |  | 340 |  |  |  | (30 | %) |  |  | 71 |  |  |  | 114 |  |  |  | (38 | %)
- Net financial expense |  |  | 47 |  |  |  | 49 |  |  |  |  |  |  |  | 15 |  |  |  | 20 |  |  |  |  |
- Capital expenditures for maintenance |  |  | 36 |  |  |  | 32 |  |  |  |  |  |  |  | 13 |  |  |  | 10 |  |  |  |  |
- Change in working Capital |  |  | (7 | ) |  |  | (17 | ) |  |  |  |  |  |  | 5 |  |  |  | 5 |  |  |  |  |
- Taxes paid |  |  | 83 |  |  |  | 85 |  |  |  |  |  |  |  | 18 |  |  |  | 21 |  |  |  |  |
- Other cash items (Net) |  |  | 4 |  |  |  | 10 |  |  |  |  |  |  |  | 2 |  |  |  | 4 |  |  |  |  |
Free cash flow after maintenance capital exp |  |  | 77 |  |  |  | 181 |  |  |  | (58 | %) |  |  | 19 |  |  |  | 54 |  |  |  | (65 | %)
- Strategic Capital expenditures |  |  | 30 |  |  |  | 108 |  |  |  |  |  |  |  | 2 |  |  |  | 32 |  |  |  |  |
Free cash flow |  |  | 46 |  |  |  | 73 |  |  |  | (37 | %) |  |  | 17 |  |  |  | 22 |  |  |  | (26 | %)

In millions of US dollars, except percentages.

Information on Debt

|  | Third Quarter |  |  | Second Quarter |  |  |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  |  |  | 2017 |  |  | 2016 |
Total debt 1, 2 |  |  | 922 |  |  |  | 1,016 |  |  |  |  |  |  |  | 936 |  |  | Currency denomination |  |  |  |  |  |  |  |
Short term |  |  | 16 | % |  |  | 27 | % |  |  |  |  |  |  | 2 | % |  | U.S. dollar |  |  | 98 | % |  |  | 97 | %
Long term |  |  | 84 | % |  |  | 73 | % |  |  |  |  |  |  | 98 | % |  | Colombian peso |  |  | 2 | % |  |  | 3 | %
Cash and cash equivalents |  |  | 41 |  |  |  | 47 |  |  |  | (11 | %) |  |  | 39 |  |  | Interest rate |  |  |  |  |  |  |  |
Net debt |  |  | 881 |  |  |  | 969 |  |  |  | (9 | %) |  |  | 897 |  |  | Fixed |  |  | 65 | % |  |  | 76 | %
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Variable |  |  | 35 | % |  |  | 24 | %

In millions of US dollars, except percentages.

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

2 | Represents the consolidated balances of CLH and subsidiaries.

2017 Third Quarter Results |  | Page 5

OPERATING RESULTS |  |

Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in thousands of U.S. Dollars, except per share amounts

|  | January - September |  |  | Third Quarter |
INCOME STATEMENT |  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Net sales |  |  | 954,321 |  |  |  | 1,012,153 |  |  |  | (6 | %) |  |  | 311,566 |  |  |  | 340,077 |  |  |  | (8 | %)
Cost of sales |  |  | (545,682 | ) |  |  | (516,042 | ) |  |  | (6 | %) |  |  | (183,090 | ) |  |  | (172,302 | ) |  |  | (6 | %)
Gross profit |  |  | 408,639 |  |  |  | 496,111 |  |  |  | (18 | %) |  |  | 128,476 |  |  |  | 167,775 |  |  |  | (23 | %)
Operating expenses |  |  | (231,412 | ) |  |  | (220,552 | ) |  |  | (5 | %) |  |  | (75,845 | ) |  |  | (75,693 | ) |  |  | (0 | %)
Operating earnings before other expenses, net |  |  | 177,227 |  |  |  | 275,559 |  |  |  | (36 | %) |  |  | 52,631 |  |  |  | 92,082 |  |  |  | (43 | %)
Other expenses, net |  |  | (6,041 | ) |  |  | (2,707 | ) |  |  | (123 | %) |  |  | (4,582 | ) |  |  | (2,433 | ) |  |  | (88 | %)
Operating earnings |  |  | 171,186 |  |  |  | 272,852 |  |  |  | (37 | %) |  |  | 48,049 |  |  |  | 89,649 |  |  |  | (46 | %)
Financial expenses |  |  | (46,619 | ) |  |  | (49,329 | ) |  |  | 5 | % |  |  | (14,475 | ) |  |  | (19,951 | ) |  |  | 27 | %
Other income (expenses), net |  |  | (884 | ) |  |  | 12,443 |  |  |  | N/A |  |  |  | 7,290 |  |  |  | 882 |  |  |  | 727 | %
Net income before income taxes |  |  | 123,683 |  |  |  | 235,966 |  |  |  | (48 | %) |  |  | 40,864 |  |  |  | 70,580 |  |  |  | (42 | %)
Income tax |  |  | (44,187 | ) |  |  | (92,047 | ) |  |  | 52 | % |  |  | (12,689 | ) |  |  | (27,531 | ) |  |  | 54 | %
Consolidated net income |  |  | 79,496 |  |  |  | 143,919 |  |  |  | (45 | %) |  |  | 28,175 |  |  |  | 43,049 |  |  |  | (35 | %)
Non-controlling Interest Net Income |  |  | (288 | ) |  |  | (518 | ) |  |  | 44 | % |  |  | (98 | ) |  |  | (205 | ) |  |  | 52 | %
Controlling Interest Net Income |  |  | 79,208 |  |  |  | 143,401 |  |  |  | (45 | %) |  |  | 28,077 |  |  |  | 42,844 |  |  |  | (34 | %)
Operating EBITDA |  |  | 238,566 |  |  |  | 339,583 |  |  |  | (30 | %) |  |  | 70,829 |  |  |  | 113,532 |  |  |  | (38 | %)
Earnings per share |  |  | 0.14 |  |  |  | 0.26 |  |  |  | (45 | %) |  |  | 0.05 |  |  |  | 0.08 |  |  |  | (35 | %)

|  | as of September 30 |
BALANCE SHEET |  | 2017 |  |  | 2016 |  |  | % var |
Total Assets |  |  | 3,367,493 |  |  |  | 3,376,607 |  |  |  | (0 | %)
Cash and Temporary Investments |  |  | 41,401 |  |  |  | 46,761 |  |  |  | (11 | %)
Trade Accounts Receivables |  |  | 125,287 |  |  |  | 115,804 |  |  |  | 8 | %
Other Receivables |  |  | 67,647 |  |  |  | 42,953 |  |  |  | 57 | %
Inventories |  |  | 78,236 |  |  |  | 70,867 |  |  |  | 10 | %
Other Current Assets |  |  | 14,929 |  |  |  | 13,563 |  |  |  | 10 | %
Current Assets |  |  | 327,500 |  |  |  | 289,948 |  |  |  | 13 | %
Fixed Assets |  |  | 1,265,865 |  |  |  | 1,247,216 |  |  |  | 1 | %
Other Assets |  |  | 1,774,128 |  |  |  | 1,839,443 |  |  |  | (4 | %)
Total Liabilities |  |  | 1,816,889 |  |  |  | 1,869,004 |  |  |  | (3 | %)
Current Liabilities |  |  | 501,456 |  |  |  | 575,949 |  |  |  | (13 | %)
Long-Term Liabilities |  |  | 1,300,131 |  |  |  | 1,284,515 |  |  |  | 1 | %
Other Liabilities |  |  | 15,302 |  |  |  | 8,540 |  |  |  | 79 | %
Consolidated Stockholders’ Equity |  |  | 1,550,604 |  |  |  | 1,507,603 |  |  |  | 3 | %
Non-controlling Interest |  |  | 5,146 |  |  |  | 5,938 |  |  |  | (13 | %)
Stockholders’ Equity Attributable to Controlling Interest |  |  | 1,545,458 |  |  |  | 1,501,665 |  |  |  | 3 | %

2017 Third Quarter Results |  | Page 6

OPERATING RESULTS |  |

Income statement & balance sheet

CEMEX Latam Holdings, S.A. and Subsidiaries

in millions of Colombian Pesos in nominal terms, except per share amounts

|  | January - September |  |  | Third Quarter |
INCOME STATEMENT |  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Net sales |  |  | 2,809,215 |  |  |  | 3,075,558 |  |  |  | (9 | %) |  |  | 921,551 |  |  |  | 2,021,436 |  |  |  | (54 | %)
Cost of sales |  |  | (1,606,312 | ) |  |  | (1,568,061 | ) |  |  | (2 | %) |  |  | (541,544 | ) |  |  | (1,034,363 | ) |  |  | 48 | %
Gross profit |  |  | 1,202,903 |  |  |  | 1,507,497 |  |  |  | (20 | %) |  |  | 380,007 |  |  |  | 987,073 |  |  |  | (62 | %)
Operating expenses |  |  | (681,203 | ) |  |  | (670,175 | ) |  |  | (2 | %) |  |  | (224,337 | ) |  |  | (449,437 | ) |  |  | 50 | %
Operating earnings before other expenses, net |  |  | 521,700 |  |  |  | 837,322 |  |  |  | (38 | %) |  |  | 155,673 |  |  |  | 537,636 |  |  |  | (71 | %)
Other expenses, net |  |  | (17,783 | ) |  |  | (8,225 | ) |  |  | (116 | %) |  |  | (13,552 | ) |  |  | (7,015 | ) |  |  | (93 | %)
Operating earnings |  |  | 503,917 |  |  |  | 829,097 |  |  |  | (39 | %) |  |  | 142,121 |  |  |  | 530,621 |  |  |  | (73 | %)
Financial expenses |  |  | (137,232 | ) |  |  | (149,892 | ) |  |  | 8 | % |  |  | (42,817 | ) |  |  | (107,218 | ) |  |  | 60 | %
Other income (expenses), net |  |  | (2,602 | ) |  |  | 37,809 |  |  |  | N/A |  |  |  | 21,563 |  |  |  | 23,927 |  |  |  | (10 | %)
Net income before income taxes |  |  | 364,083 |  |  |  | 717,014 |  |  |  | (49 | %) |  |  | 120,867 |  |  |  | 447,330 |  |  |  | (73 | %)
Income tax |  |  | (130,071 | ) |  |  | (279,698 | ) |  |  | 53 | % |  |  | (37,531 | ) |  |  | (174,498 | ) |  |  | 78 | %
Consolidated net income |  |  | 234,012 |  |  |  | 437,316 |  |  |  | (46 | %) |  |  | 83,336 |  |  |  | 272,832 |  |  |  | (69 | %)
Non-controlling Interest Net Income |  |  | (849 | ) |  |  | (1,574 | ) |  |  | 46 | % |  |  | (289 | ) |  |  | (1,091 | ) |  |  | 74 | %
Controlling Interest Net Income |  |  | 233,163 |  |  |  | 435,742 |  |  |  | (46 | %) |  |  | 83,047 |  |  |  | 271,741 |  |  |  | (69 | %)
Operating EBITDA |  |  | 702,261 |  |  |  | 1,031,867 |  |  |  | (32 | %) |  |  | 209,495 |  |  |  | 336,642 |  |  |  | (38 | %)
Earnings per share |  |  | 420.39 |  |  |  | 786.01 |  |  |  | (47 | %) |  |  | 149.71 |  |  |  | 228.25 |  |  |  | (34 | %)

|  | as of September 30 |
BALANCE SHEET |  | 2017 |  |  | 2016 |  |  | % var |
Total Assets |  |  | 9,904,032 |  |  |  | 9,724,459 |  |  |  | 2 | %
Cash and Temporary Investments |  |  | 121,761 |  |  |  | 134,670 |  |  |  | (10 | %)
Trade Accounts Receivables |  |  | 368,478 |  |  |  | 333,510 |  |  |  | 10 | %
Other Receivables |  |  | 198,954 |  |  |  | 123,702 |  |  |  | 61 | %
Inventories |  |  | 230,097 |  |  |  | 204,093 |  |  |  | 13 | %
Other Current Assets |  |  | 43,909 |  |  |  | 39,062 |  |  |  | 12 | %
Current Assets |  |  | 963,199 |  |  |  | 835,037 |  |  |  | 15 | %
Fixed Assets |  |  | 3,722,997 |  |  |  | 3,591,920 |  |  |  | 4 | %
Other Assets |  |  | 5,217,836 |  |  |  | 5,297,502 |  |  |  | (2 | %)
Total Liabilities |  |  | 5,343,596 |  |  |  | 5,382,638 |  |  |  | (1 | %)
Current Liabilities |  |  | 1,474,817 |  |  |  | 1,658,705 |  |  |  | (11 | %)
Long-Term Liabilities |  |  | 3,823,775 |  |  |  | 3,699,337 |  |  |  | 3 | %
Other Liabilities |  |  | 45,004 |  |  |  | 24,596 |  |  |  | 83 | %
Consolidated Stockholders’ Equity |  |  | 4,560,436 |  |  |  | 4,341,821 |  |  |  | 5 | %
Non-controlling Interest |  |  | 15,135 |  |  |  | 17,101 |  |  |  | (11 | %)
Stockholders’ Equity Attributable to Controlling Interest |  |  | 4,545,301 |  |  |  | 4,324,720 |  |  |  | 5 | %

2017 Third Quarter Results |  | Page 7

OPERATING RESULTS |  |

Operating Summary per Country

in thousands of U.S. dollars

Operating EBITDA margin as a percentage of net sales

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
NET SALES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 432,019 |  |  |  | 511,785 |  |  |  | (16 | %) |  |  | 141,501 |  |  |  | 172,804 |  |  |  | (18 | %)
Panama |  |  | 211,792 |  |  |  | 199,609 |  |  |  | 6 | % |  |  | 70,592 |  |  |  | 69,827 |  |  |  | 1 | %
Costa Rica |  |  | 113,732 |  |  |  | 119,535 |  |  |  | (5 | %) |  |  | 37,169 |  |  |  | 37,871 |  |  |  | (2 | %)
Rest of CLH |  |  | 215,377 |  |  |  | 197,161 |  |  |  | 9 | % |  |  | 67,203 |  |  |  | 64,092 |  |  |  | 5 | %
Others and intercompany eliminations |  |  | (18,599 | ) |  |  | (15,937 | ) |  |  | (17 | %) |  |  | (4,899 | ) |  |  | (4,517 | ) |  |  | (8 | %)
TOTAL |  |  | 954,321 |  |  |  | 1,012,153 |  |  |  | (6 | %) |  |  | 311,566 |  |  |  | 340,077 |  |  |  | (8 | %)
GROSS PROFIT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 159,132 |  |  |  | 242,872 |  |  |  | (34 | %) |  |  | 47,812 |  |  |  | 82,895 |  |  |  | (42 | %)
Panama |  |  | 100,085 |  |  |  | 100,342 |  |  |  | (0 | %) |  |  | 34,530 |  |  |  | 35,986 |  |  |  | (4 | %)
Costa Rica |  |  | 52,981 |  |  |  | 62,056 |  |  |  | (15 | %) |  |  | 17,529 |  |  |  | 18,940 |  |  |  | (7 | %)
Rest of CLH |  |  | 83,806 |  |  |  | 80,535 |  |  |  | 4 | % |  |  | 24,689 |  |  |  | 26,221 |  |  |  | (6 | %)
Others and intercompany eliminations |  |  | 12,635 |  |  |  | 10,306 |  |  |  | 23 | % |  |  | 3,916 |  |  |  | 3,733 |  |  |  | 5 | %
TOTAL |  |  | 408,639 |  |  |  | 496,111 |  |  |  | (18 | %) |  |  | 128,476 |  |  |  | 167,775 |  |  |  | (23 | %)
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET |  |  |  |  |  |  |  |  |
Colombia |  |  | 63,505 |  |  |  | 156,487 |  |  |  | (59 | %) |  |  | 17,144 |  |  |  | 53,423 |  |  |  | (68 | %)
Panama |  |  | 74,593 |  |  |  | 76,834 |  |  |  | (3 | %) |  |  | 25,846 |  |  |  | 27,880 |  |  |  | (7 | %)
Costa Rica |  |  | 36,081 |  |  |  | 43,926 |  |  |  | (18 | %) |  |  | 11,581 |  |  |  | 12,313 |  |  |  | (6 | %)
Rest of CLH |  |  | 60,985 |  |  |  | 60,570 |  |  |  | 1 | % |  |  | 17,173 |  |  |  | 19,006 |  |  |  | (10 | %)
Others and intercompany eliminations |  |  | (57,937 | ) |  |  | (62,258 | ) |  |  | 7 | % |  |  | (19,113 | ) |  |  | (20,540 | ) |  |  | 7 | %
TOTAL |  |  | 177,227 |  |  |  | 275,559 |  |  |  | (36 | %) |  |  | 52,631 |  |  |  | 92,082 |  |  |  | (43 | %)
OPERATING EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 82,663 |  |  |  | 176,054 |  |  |  | (53 | %) |  |  | 22,398 |  |  |  | 60,277 |  |  |  | (63 | %)
Panama |  |  | 87,475 |  |  |  | 90,364 |  |  |  | (3 | %) |  |  | 29,679 |  |  |  | 32,420 |  |  |  | (8 | %)
Costa Rica |  |  | 40,025 |  |  |  | 48,615 |  |  |  | (18 | %) |  |  | 13,039 |  |  |  | 13,943 |  |  |  | (6 | %)
Rest of CLH |  |  | 65,544 |  |  |  | 64,745 |  |  |  | 1 | % |  |  | 18,736 |  |  |  | 20,351 |  |  |  | (8 | %)
Others and intercompany eliminations |  |  | (37,141 | ) |  |  | (40,195 | ) |  |  | 8 | % |  |  | (13,023 | ) |  |  | (13,459 | ) |  |  | 3 | %
TOTAL |  |  | 238,566 |  |  |  | 339,583 |  |  |  | (30 | %) |  |  | 70,829 |  |  |  | 113,532 |  |  |  | (38 | %)
OPERATING EBITDA MARGIN |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 19.1 | % |  |  | 34.4 | % |  |  |  |  |  |  | 15.8 | % |  |  | 34.9 | % |  |  |  |
Panama |  |  | 41.3 | % |  |  | 45.3 | % |  |  |  |  |  |  | 42.0 | % |  |  | 46.4 | % |  |  |  |
Costa Rica |  |  | 35.2 | % |  |  | 40.7 | % |  |  |  |  |  |  | 35.1 | % |  |  | 36.8 | % |  |  |  |
Rest of CLH |  |  | 30.4 | % |  |  | 32.8 | % |  |  |  |  |  |  | 27.9 | % |  |  | 31.8 | % |  |  |  |
TOTAL |  |  | 25.0 | % |  |  | 33.6 | % |  |  |  |  |  |  | 22.7 | % |  |  | 33.4 | % |  |  |  |

2017 Third Quarter Results |  | Page 8

OPERATING RESULTS |  |

Volume Summary

Consolidated volume summary

Cement and aggregates in thousands of metric tons

Ready mix in thousands of cubic meters

|  | January - September |  |  | Third Quarter |
|  | 2017 |  |  | 2016 |  |  | % var |  |  | 2017 |  |  | 2016 |  |  | % var |
Total cement volume 1 |  |  | 5,673 |  |  |  | 5,666 |  |  |  | 0 | % |  |  | 1,892 |  |  |  | 1,892 |  |  |  | 0 | %
Total domestic gray cement volume |  |  | 4,974 |  |  |  | 4,976 |  |  |  | (0 | %) |  |  | 1,652 |  |  |  | 1,670 |  |  |  | (1 | %)
Total ready-mix volume |  |  | 2,197 |  |  |  | 2,355 |  |  |  | (7 | %) |  |  | 721 |  |  |  | 795 |  |  |  | (9 | %)
Total aggregates volume |  |  | 5,234 |  |  |  | 5,547 |  |  |  | (6 | %) |  |  | 1,695 |  |  |  | 1,869 |  |  |  | (9 | %)

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

Per-country volume summary

|  | January -September |  |  | Third Quarter |  |  | Third Quarter 2017 |
|  | 2017 vs. 2016 |  |  | 2017 vs. 2016 |  |  | vs. Second Quarter 2017 |
DOMESTIC GRAY CEMENT |  |  |  |  |
Colombia |  |  | (5 | %) |  |  | (4 | %) |  |  | 5 | %
Panama |  |  | 5 | % |  |  | (3 | %) |  |  | (4 | %)
Costa Rica |  |  | (1 | %) |  |  | (0 | %) |  |  | (1 | %)
Rest of CLH |  |  | 10 | % |  |  | 7 | % |  |  | (7 | %)
READY-MIX |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | (15 | %) |  |  | (16 | %) |  |  | 3 | %
Panama |  |  | 16 | % |  |  | 4 | % |  |  | (4 | %)
Costa Rica |  |  | 2 | % |  |  | 22 | % |  |  | 28 | %
Rest of CLH |  |  | 27 | % |  |  | 20 | % |  |  | (31 | %)
AGGREGATES |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | (18 | %) |  |  | (21 | %) |  |  | 2 | %
Panama |  |  | 18 | % |  |  | 15 | % |  |  | 4 | %
Costa Rica |  |  | 28 | % |  |  | 33 | % |  |  | (15 | %)
Rest of CLH |  |  | 62 | % |  |  | 2 | % |  |  | (62 | %)

2017 Third Quarter Results |  | Page 9

OPERATING RESULTS |  |

Price Summary

Variation in U.S. dollars

|  | January -September |  |  | Third Quarter |  |  | Third Quarter 2017 |
|  | 2017 vs. 2016 |  |  | 2017 vs. 2016 |  |  | vs. Second Quarter 2017 |
DOMESTIC GRAY CEMENT |  |  |  |  |  |  |  |  |
Colombia |  |  | (18 | %) |  |  | (22 | %) |  |  | (2 | %)
Panama |  |  | (1 | %) |  |  | (1 | %) |  |  | 0 | %
Costa Rica |  |  | (8 | %) |  |  | (6 | %) |  |  | (0 | %)
Rest of CLH |  |  | (1 | %) |  |  | (1 | %) |  |  | 0 | %
READY-MIX |  |  |  |  |  |  |  |  |
Colombia |  |  | 1 | % |  |  | (4 | %) |  |  | (0 | %)
Panama |  |  | (0 | %) |  |  | 0 | % |  |  | 2 | %
Costa Rica |  |  | (15 | %) |  |  | (10 | %) |  |  | (4 | %)
Rest of CLH |  |  | (9 | %) |  |  | (4 | %) |  |  | 9 | %
AGGREGATES |  |  |  |  |  |  |  |  |
Colombia |  |  | 7 | % |  |  | 5 | % |  |  | 0 | %
Panama |  |  | (3 | %) |  |  | (9 | %) |  |  | (3 | %)
Costa Rica |  |  | (52 | %) |  |  | (51 | %) |  |  | 25 | %
Rest of CLH |  |  | (12 | %) |  |  | 2 | % |  |  | 23 | %

For Rest of CLH, volume-weighted average prices.

Variation in local currency

|  | January -September |  |  | Third Quarter |  |  | Third Quarter 2017 |
|  | 2017 vs. 2016 |  |  | 2017 vs. 2016 |  |  | vs. Second Quarter 2017 |
DOMESTIC GRAY CEMENT |  |  |  |  |  |  |  |  |
Colombia |  |  | (21 | %) |  |  | (22 | %) |  |  | (2 | %)
Panama |  |  | (1 | %) |  |  | (1 | %) |  |  | 0 | %
Costa Rica |  |  | (4 | %) |  |  | (3 | %) |  |  | (1 | %)
Rest of CLH |  |  | (1 | %) |  |  | (1 | %) |  |  | (0 | %)
READY-MIX |  |  |  |  |  |  |  |  |
Colombia |  |  | (2 | %) |  |  | (4 | %) |  |  | (1 | %)
Panama |  |  | (0 | %) |  |  | 0 | % |  |  | 2 | %
Costa Rica |  |  | (11 | %) |  |  | (7 | %) |  |  | (4 | %)
Rest of CLH |  |  | (9 | %) |  |  | (4 | %) |  |  | 9 | %
AGGREGATES |  |  |  |  |  |  |  |  |
Colombia |  |  | 4 | % |  |  | 5 | % |  |  | (0 | %)
Panama |  |  | (3 | %) |  |  | (9 | %) |  |  | (3 | %)
Costa Rica |  |  | (49 | %) |  |  | (50 | %) |  |  | 25 | %
Rest of CLH |  |  | (8 | %) |  |  | 7 | % |  |  | 24 | %

For Rest of CLH, volume-weighted average prices.

2017 Third Quarter Results |  | Page 10

DEFINITIONS OF TERMS AND DISCLOSURES |  |

Methodology for translation and presentation of results

Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement.

For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates used to convert: (i) the balance sheet as of September 30, 2017 and September 30, 2016 was $2,941.07 and $2,879.95 Colombian pesos per US dollar, respectively, and (ii) the consolidated results for the third quarter of 2017 and for the third quarter of 2016 were $2,957.80 and $2,965.17 Colombian pesos per US dollar, respectively.

Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.”

Consolidated financial information

When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries.

Presentation of financial and operating information

Individual information is provided for Colombia, Panama and Costa Rica.

Countries in Rest of CLH include Nicaragua, Guatemala, El Salvador and Brazil.

Exchange rates

|  | January - September |  |  | January - September |  |  | Third Quarter |
|  | 2017 closing |  |  | 2016 closing |  |  | 2017 average |  |  | 2016 average |  |  | 2017 average |  |  | 2016 average |
Colombian peso |  |  | 2,941.07 |  |  |  | 2,879.95 |  |  |  | 2,943.68 |  |  |  | 3,038.63 |  |  |  | 2,957.80 |  |  |  | 2,965.17 |
Panama balboa |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |
Costa Rica colon |  |  | 574.13 |  |  |  | 558.80 |  |  |  | 572.71 |  |  |  | 549.45 |  |  |  | 575.57 |  |  |  | 557.87 |
Euro |  |  | 1.18 |  |  |  | 1.12 |  |  |  | 1.12 |  |  |  | 0.00 |  |  |  | 1.12 |  |  |  | 1.12 |

Amounts provided in units of local currency per US dollar.

2017 Third Quarter Results |  | Page 11

DEFINITIONS OF TERMS AND DISCLOSURES |  |

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).

Maintenance capital expenditures investments incurred for the purpose of ensuring CLH’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 internal policies.

Net debt equals total debt 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 CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are 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.

2017 Third Quarter Results |  | Page 12