EX-99.1 2 d548341dex991.htm 2017 INTEGRATED REPORT OF CEMEX, S.A.B. DE C.V.

Exhibit 1

CEMEX 2017 INTEGRATED REPORT Leading our industry’s DIGITAL transformation

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT Table of contents As you will read in this Integrated 1. COMPANY OVERVIEW CEMEX 2017 INTEGRATED REPORT Report, we are committed to fostering 1.1 Company snapshot 3 Leading our industry’s DIGITAL our global leadership in the industry 1.2 Letter to stakeholders 5 transformation 1.3 Our Vision and Value Creation Model 7 by delivering a superior customer 1.4 Contributing to the UN Sustainable Development Goals 8 experience and integrating sustainability 1.5 Financial highlights 10 into all aspects of our business. 1.6 Risk management 11 OUR COVER: IN 2017, WE CONTINUED TO EMBARK ON A 2. OUR STRATEGY DIGITAL TRANSFORMATION OF OUR INDUSTRY TO ACHIEVE A SUPERIOR CUSTOMER EXPERIENCE 2.1 Value our people as our main competitive advantage 17 EVERYWHERE, EVERY TIME. 2.2 Help our customers succeed 23 2.3 Pursue markets that offer long-term profitability 31 2.4 Sustainability is fully embedded in our business 38 3. GOVERNANCE 3.1 Corporate governance 68 3.2 Integrity and compliance 73 4. PERFORMANCE IN DETAIL 4.1 Financial information 79 4.2 Non-financial information 179 twitter.com/cemex 5. ABOUT THIS REPORT facebook.com/cemex 5.1 Report scope 188 5.2 External Advisory Panel members and statement 190 instagram.com/cemex 5.3 Terms we use 193 5.4 Investor, media, and sustainability information 194 youtube.com/cemex ©2018 CEMEX S.A.B DE C.V. All rights reserved. 1 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1 COMPANY OVERVIEW A global building materials company CASA DEL ABUELO, VERACRUZ, MEXICO 2 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.1 Company snapshot CEMEX is a global building materials USA company that provides high-quality EUROPE 8,380 EAST, AND AFRICA ASIA, MIDDLE products and reliable service to 10,413 MEXICO 11 17 3,084 customers and communities in 335 9,285 718 3 64 more than 50 countries. CEMEX has 15 179 83 254 AMERICA AND THESOUTH, CENTRAL a rich history of improving the well- CARIBBEAN 9 12 being of those it serves through 5,869 NSST[FYN[J_GZNQINSL_XTQZYNTSX__JKÜªHNJSH^_ 10 115 advancements, and efforts to promote CENTRAL 21 PEOPLE 3,847 CEMENT a sustainable future. PLANTS READY-MIX and Neoris Includes Corporate CONCRETE PLANTS AGGREGATES Founded in Mexico in 1906, CEMEX has QUARRIES grown from a local player to one of the top global companies in the industry. With over 40,000 employees worldwide, CEMEX is strategically positioned in the Americas, the Caribbean, Europe, Africa, the Middle East, and Asia. PEOPLE CEMENT READY-MIX AGGREGATES TERMINALS +40,000 56 PLANTS 1,505 285 258 land distribution EMPLOYEES +11 cement mills PLANTS QUARRIES centers 92 MILLION 52 MILLION M3 147 MILLION 67 tons annual tons annual annual production marine terminals production capacity production 3 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.1 Company snapshot OUR PORTFOLIO OFFERING RELATED PRODUCTS A customer-centric, vertically integrated We rely on our close relation-building materials company ship with our customers to offer them complementary products for their construction Our operations network produces, needs, including asphalt, con-distributes, and markets cement, crete blocks, roof tiles, admix- YZWJX__GQFXY_KZWSFHJ_XQFL__Ü«^_ ready-mix concrete, aggregates, and ash, architectural products for related building materials, services, AGGREGATES CEMENT READY-MIX different building or landscap- ing projects, pipe, and other and solutions. Obtained from land-based A binding agent, when mixed A combination of cement, pre-cast products. sources or by dredging marine with aggregates and water, aggregates, admixtures, and We always strive to provide superior deposits. produces either ready-mix water. SOLUTIONS AND concrete or mortar. SERVICES building solutions and a superior Our offer: Our offer: Crushed stone, manufactured Our offer: Architectural and decorative, Our growing array of solu-customer experience in the markets sand, gravel, sand, and recy- High-quality cement such as WFUNI_XJYYNSL__ÜªGJW_WJNSKTWHJI__ tions enable us to serve our cled concrete Gray Ordinary Portland, White Ü«ZNI_ÜªQQ__WTQQJW_HTRUFHYJI__ we serve. To this end, we tailor our HZXYTRJWX_GJYYJWÑŸKWTR_TZW_ Portland, Masonry or Mortar, self-consolidating, pervious, housing, paving, and Green products and services to suit our Oil-well, and Blended Cement and antibacterial ready-mix Building consulting services in bags or in bulk concrete to our Construrama® cement HZXYTRJWXÑ£_XUJHNÜªH_SJJIXÑŸKWTR_ distribution network and our home construction, improvement, and YWFNSNSL__ÜªSFSHNSL__FSI_YJHMSN- cal support. renovation to agricultural, industrial, DIGITAL SOLUTIONS and marine/hydraulic applications. Our digital solutions, including our CEMEX Go and other digital platforms, place the power to succeed in our customers’ hands. WE TAILOR OUR PRODUCTS AND SERVICES TO SUIT OUR CUSTOMERS’ SPECIFIC NEEDS. 4 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.2 Letter to stakeholders DEAR FELLOW STAKEHOLDERS: This year we commemorated the 25th anniversary of Notably, we made important and sustained progress our globalization strategy, marked by our company’s toward regaining our investment-grade capital struc-entry into the Spanish market in 1992. Over the past 25 YZWJ__<J_WJIZHJI_TZW_ÜªSFSHNFQ_J]UJSXJX_G^_:8____ years, our company has enjoyed tremendous growth RNQQNTS_KTW_YMJ_^JFW__<J_LJSJWFYJI_KWJJ_HFXM_Ü«T¥_ and development: consolidating our position as one after maintenance CAPEX of close to US$1.3 billion, of the most important competitors in the global build- FHMNJ[NSL_FS_*’.9)&_YT_KWJJ_HFXM_Ü«T¥_HTS[JWXNTS_ ing materials industry while integrating best practices rate of 50% for 2017. We surpassed our two-year as-and talent into our worldwide operations. We are very set divestment target of US$2.5 billion, closing asset proud of our history and our company’s many achieve- sales of close to US$2.7 billion at an average multiple RJSYX_T[JW_YMNX_UJWNTIÑŸRFIJ_G^_FQQ_TK_YMTXJ_¥MT_ in the double digits. During these two years, we reformed and are currently part of CEMEX. duced our debt by approximately US$4.3 billion, also exceeding our target for the period. Consequently, our Today, we are a global organization that works as QJ[JWFLJ_WFYNT_¥FX_GJQT¥______YNRJX_KTW_YMJ_ÜªWXY_YNRJ_ one CEMEX based on the same values and operating ROGELIO ZAMBRANO, Chairman of the Board of Directors since 2008. Indeed, our discipline and consistency UWNSHNUQJXÑŸZSNYJI_FGT[J_FQQ_G^_TZW_ZS¥F[JWNSL_HTR-in reducing our leverage continues to translate into mitment to excellence. an improvement in our credit ratings. During 2017, This also means sticking together in challenging times. we obtained two credit-rating upgrades from S&P, In the wake of the year’s natural disasters in the U.S., reaching a global scale rating of BB. In addition, Fitch Mexico, and Puerto Rico, we are proud of how our ratings revised the outlook of their current BB-minus people around the world took action to support those rating from stable to positive. impacted by these tragedies. The solidarity of our entire Regarding health and safety, our top priority, we con-organization became clear, and in addition to the time tinued to make progress toward our ultimate target of invested by many of our collaborators, we carried out a _JWT_NSOZWNJX_¥TWQI¥NIJÑŸTZW_?JWT_1NKJ_LTFQ__4[JWFQQ__¥J_ collection among employees around the world, where are encouraged to see that 95% of our operations were the company matched the amount collected. fatality and lost-time injury free for the year. However, Due to these natural phenomena and other geopolitical we can and must do better. We cannot accept any-and economic factors, business environment over the thing short of a perfect safety record. past year was one of contrasts. In the face of continued Our customers are at the heart of our business. By lis- ÜªSFSHNFQ_RFWPJY_[TQFYNQNY^_FSI_ZSHJWYFNSY^__¥J_RFIJ_LTTI_ tening to their needs and understanding their challeng-UWTLWJXX_TS_TZW_XYWFYJLNH_UWNTWNYNJX_FSI_FHMNJ[JI_XTQNI_Üª- es, we have redesigned our commercial policies and nancial results during 2017. On a like-to-like basis, our net processes to create the best possible experience for sales improved by 3% to US$13.7 billion, and our operat-them. With this in mind, we have embarked on a bold ing EBITDA declined by 6% to US$2.6 billion. Despite this digital transformation to achieve the best customer decline, our two largest markets, Mexico and the United satisfaction of any business-to-business company. States, performed well with like-to-like increases in their FERNANDO A. GONZÁLEZ, Chief Executive Officer EBITDA. Our net income reached US$806 million for the KZQQ_^JFWÑŸTZW_MNLMJXY_SJY_NSHTRJ_LJSJWFYNTS_XNSHJ______ 5 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.2 Letter to stakeholders With the launch of CEMEX Go, we are at the forefront Consistent with the UN SDGs, we embed sustainability of delivering a superior customer experience than into every aspect of our business. In 2017, we provided FS^_UWT[NIJI_NS_YMJ_UFXY__9MWTZLM_YMNX_ÜªWXY_TK_NYX_PNSI__ products and solutions to more than 1,000 projects integrated digital platform, we enable our clients to YMFY_FYYFNSJI_LWJJS_GZNQINSL_HJWYNÜªHFYNTS__WJUWJXJSYNSL_ increase their productivity, make better business de- close to 8.7 million m2 of construction space, and we cisions, and enjoy more control over their businesses. installed around 8.8 million m2 of concrete pavements In short, CEMEX Go places the power to succeed in for nearly 430 projects. We also achieved a total today’s fast-paced, dynamic market in the hands of our alternative fuels rate of 26.2% . Together with our other customers. We are convinced that CEMEX Go will pro- mitigation efforts, this helped us to achieve a 20.7% vide us additional business opportunities in the near reduction in CO2 emissions per ton of cementitious future for current and potential new clients. compared with our 1990 baseline. Additionally, we commemorated the 10th anniversary of our partnership As you will read in this Integrated Report, we are com-with BirdLife International, continuing our development mitted to fostering our global leadership in the industry of biodiversity action plans across our quarries with by delivering a superior customer experience and inte-high biodiversity value. Moreover, we continued to grating sustainability into all aspects of our business. LUMINA, SAN empower our communities through our high-impact FRANCISCO, Like last year, our goal is simple: To ensure you under-social strategy, positively impacting more than 14.1 CALIFORNIA stand why we are enthusiastic about our future. RNQQNTS_UJTUQJ_XNSHJ_YMJ_NSHJUYNTS_TK_TZW_UWTLWFRXÑŸ Additionally, we continually work to build strong re- inspiring us to work towards our target of 15 million lationships across our supplier network. Among our people by 2020. initiatives, our Supplier Sustainability Program extends As our actions attest, we are committed to maintaining our commitment to sustainability to our value chain, the highest ethical and corporate governance stan-communicating and promoting responsible practices. dards. We continually strive to enhance our reputation Our INTEGRATE Suppliers Innovation Program fosters as a responsible and sustainable company in order to OUR CUSTOMERS ARE collaboration between our company and our suppliers attract and retain employees, customers, suppliers, AT THE HEART OF OUR by generating innovative new ideas to enable us to and investors, as well as to maintain positive relation-improve our practices throughout the value chain. BUSINESS. WITH THIS XMNUX_¥NYM_TZW_HTRRZSNYNJXÑŸFQQ_TK_¥MNHM_JSFGQJ_ZX_YT_ Our business cannot thrive in a world of poverty, create sustainable value each and every day. IN MIND, WE HAVE inequality, unrest, and environmental stress, so it is EMBARKED ON A DIGITAL On behalf of CEMEX’s Board of Directors, our manage-in our vital interest to take collaborative action with ment team, and our employees, we greatly appreciate TRANSFORMATION OF governments, businesses, and members of society your interest in CEMEX, as we continue our efforts to OUR INDUSTRY. to transform our business and our world. By aligning build a better future for all of our stakeholders. our business strategies with the United Nations Sustainable Development Goals (UN SDGs), we not only Sincerely, better position our business to respond to the biggest HMFQQJSLJX_KFHNSL_TZW_¥TWQIÑŸKWTR_JSINSL_UT[JWY^_YT_ YFHPQNSL_HQNRFYJ_HMFSLJÑŸGZY_FQXT_UWT[NIJ_TUUTWYZSN- ROGELIO ZAMBRANO ties for growth, strengthen our license to operate, and Chairman of the Board of Directors create economic, social, and environmental value for all of our stakeholders. FERNANDO A. GONZÁLEZ (MNJK_*]JHZYN[J_4KÜªHJW 6 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.3 Our Vision and Value Creation Model WHY WHERE HOW WHO VALUE our reason for being we play we succeed benefits how we create value PURPOSE STRATEGY OPERATING MODEL STAKEHOLDERS Building a better future Nº1 • Provide a great workplace that helps employees grow PEOPLE AS GLOBAL • Build skills and expertise EMPLOYEES • Enable a strong sense of purpose MISSION Nº1 ASSET NETWORKS Create sustainable value by providing • Tailor our offerings to solve our industry-leading clients’ construction needs products and solutions to satisfy the • Make it easy to work with us construction needs of CUSTOMER SUPPORT • Provide enhanced performance CENTRICITY FUNCTIONS CLIENTS and reliability our customers around the world • Grow revenue VALUES • Reduce costs • Optimize assets PROFITABLE TRANSACTIONAL • Keep a tight rein on risks Ensure safety MARKETS FUNCTIONS SHAREHOLDERS Focus on customers GOVERNANCE • Be a relevant engine of economic Pursue excellence growth • Build more capable, inclusive Work as one CEMEX and resilient communities COMMUNITY • Reduce local air, water and waste Act with integrity SUSTAINABILITY GOVERNANCE impacts and conserve AND SUPPLIERS biodiversity KEY INPUTS PRODUCTS DISTRIBUTION CHANNELS MARKETS > Mineral Reserves > Energy > Ready-Mix> Cement> Aggregates > Residential> Commercial/ Industrial> Infrastructure> Roads 7 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.4 Contributing to the UN Sustainable Development Goals THE SDGs PROVIDE A BLUEPRINT FOR Together with the United Nations, governments, businesses, and civil society are CEMEX TO ACHIEVE ITS VISION OF joining efforts to achieve 17 Sustainable Development Goals (SDGs) by 2030. BUILDING A BETTER FUTURE. The SDGs are a guide for ending poverty and hunger, to the risks and opportunities that we face in a world achieving gender equality, improving health and edu- characterized by rapid change and disruption across cation, fostering economic growth, making cities more social, environmental, and economic dimensions. In-sustainable, combating climate change, and protect- IJJI__¥J_FWJ_FQWJFI^_LTNSL_KZWYMJWÑŸIJ[JQTUNSL_GZXN-ing biodiversity and ecosystems. Their achievement ness strategies that embrace the growth potential of requires partnerships and collaborative action by responsible environmental and societal policies while countries, the private sector, and members of society driving sustainable business practices throughout our to improve the lives of people everywhere. value chain. The SDGs provide a blueprint for CEMEX to achieve We understand that our business cannot thrive in a its vision of Building a Better Future. They foster our world of poverty, inequality, and environmental tension. sustainable growth by better supporting the commu- As One CEMEX, we recognize our responsibility to nities in which we operate, creating jobs and business share our experience and apply business models that TUUTWYZSNYNJX_HTSSJHYJI_YT_TZW_HTWJ_GZXNSJXXÑŸKWTR_ tackle the world’s most critical challenges. By aligning building sustainable cities and communities to in- our business strategies with the SDGs, we can not only ST[FYN[J_NSKWFXYWZHYZWJÑŸFSI_HTSYNSZTZXQ^_KTXYJWNSL_ maintain and strengthen our license to operate, but trust and transparency with our stakeholders. They FQXT_NSST[FYN[JQ^_HWJFYJ_[FQZJ_KTW_XTHNJY^ÑŸNRUWT[NSL_ further enable us to understand and better respond quality of life and well-being globally. QUARRY RESTORATION IN ALICANTE, SPAIN 8 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.4 Contributing to the UN Sustainable Development Goals Given our company’s core business i Building a comprehensive strategic network and sustainability strategy, we of global and local partnerships and allianc-are more directly engaged in the es to multiply our sustainability efforts and move forward towards our targets i Creating jobs in local communities achievement of the 11 Sustainable i Participating in forums, coalitions, and i Developing high-impact social programs to Development Goals (SDG’s) initiatives to support responsible growth empower women, youth, and neighboring highlighted in the graph to the right. and promote sustainable practices communities i Providing support during natural disasters We invite you to learn more i Enabling access to housing and basic ser-throughout this report about how i Implementing Quarry Rehabilitation and vices for low-income families through our Biodiversity Action Plans we are engaging with the global inclusive business models i Deploying conservation efforts at El Car-goals and targets. men, a Nature Reserve 8.4 times larger than the total sum of the areas impacted by our operations worldwide i Ensuring health and safety is our Producing annual nature books with rec- HTRUFS^Ñ£X_YTU_UWNTWNY^ÑŸTZW_?JWT_1NKJ_ i ognized NGOs, along with CEMEX Nature commitment website to promote our world’s natural 16 17 1 i Promoting community health through diversity 2 educational programs i Contributing to buildings’ inside comfort, 15 3 positively affecting inhabitants’ health i Deploying a robust global carbon strategy YMFY_WJÜ«JHYX_TZW_RNYNLFYNTS_HTRRNYRJSY_ i Putting risk assessment processes in place 14 4 i Developing effective leaders while for potential climate change impacts offering training and development to our i Supporting development of public policy in 13 5 employees the transition to a low-carbon, climate-resili Helping society members develop skills ient economy to secure employment through our 12 6 Community Centers i Providing customers with sustainable i Contributing to new and more profes-products, services, and solutions 11 7 XNTSFQ_HFWJJWX_NS_YMJ_HTSXYWZHYNTS_ÜªJQI_ i *SXZWNSL_JKÜªHNJSY_ZXJ_TK_SFYZWFQ_ 10 8 through our masonry training programs resources in our production processes 9 while contributing to a circular economy i Extending our sustainability approach i Implementing programs to em-through our Supplier Sustainability power women in both our work-Program force and our communities i Supporting diversity within our organization through initiatives such FX_Ü«J]NGQJ_YNRJ_KTW_RTYMJWX__UWN[FYJ_ breastfeeding facilities, and salary i )JQN[JWNSL_WJXNQNJSY_FSI_JSJWL^_JKÜªHNJSY_ equality, among others infrastructure to support growing urban i Delivering solutions for afford-populations FGQJ_MTZXNSL_FSI_JSJWL^_JKÜª-i Deploying a Community Engagement Strat- cient buildings i Providing competitive compensation to our egy in all of our operations, considering employees while protecting their labor rights i Implementing resilient and environmental and social impacts in a safe, respectful work environment sustainable infrastructure i .RUQJRJSYNSL_F_,WJJS_‘ZNQINSL_(JWYNÜªHF- i Generating economic growth for local suppliers i Dedicating R&D to engineer YNTS_5TQNH^_FHWTXX_TZW_¥TWQI¥NIJ_TKÜªHJX and design innovative con- i Enabling community members to become struction solutions entrepreneurs through our capacity-builiding efforts 9 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.5 Financial highlights 20173 20163 % CHANGE In millions of US dollars1, except earnings (loss) per ADS Net sales 13,672 13,352 2 NET SALES AND FREE CASH FLOW AFTER OPERATING EBITDA MAINTENANCE CAPITAL Operating earnings before other expenses, (millions of US dollars) EXPENDITURES 1,725 1,899 (9) (millions of US dollars) net 14,815 14,975 1,685 Operating EBITDA 2,572 2,753 (7) 13,726 13,352 13,672 Controlling interest net income (loss) 806 750 8 1,290 Earnings (loss) per ADS 2 0.53 0.53 1 881 +WJJ_HFXM_Ü«T¥_FKYJW_RFNSYJSFSHJ_HFUNYFQ_ 1,290 1,685 (23) expenditures 401 2,603 2,664 2,596 2,753 2,572 Total assets 28,885 28,944 0 (89) Total debt plus perpetual notes 11,349 13,073 (13) 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Total controlling stockholders’ equity 9,137 8,097 13 as of December 31, 2017 ___+TW_YMJ_WJFIJWÑ£X_HTS[JSNJSHJ_ÜªLZWJX_FWJ_UWJXJSYJI_NS_:8_ITQQFWX__+TW_XYFYJRJSYX_TK_TUJWFYNTSX_FHHTZSYX__YMJXJ_ÜªLZWJX_ result from translating the local currency amounts into US dollars at the average exchange rate for the year, which approximates a convenience translation of the Mexican peso results for 2017 and 2016 using the average exchange WFYJX_TK_YMJ_^JFW_TK_______FSI_______2=3_:8__WJXUJHYN[JQ^__+TW_GFQFSHJ_XMJJY_FHHTZSYX__:8_ITQQFW_ÜªLZWJX_WJXZQY_KWTR_ translating the local currency amounts into US dollars at the closing exchange rate for the year, which approximates a convenience translation of the Mexican peso amounts at the end of each year using the end-of-year exchange rate of 13% REDUCTION 19.65 and 20.72 MXN/US$, respectively. 2. Based on an average of 1,517 and 1,431 million American Depositary Shares (ADSs) for 2017 and 2016, OF OUR TOTAL DEBT respectively. ______________________________________FSI______ÜªLZWJX_FWJ_ZSIJW_.+78__WJKJW_YT_UFLJ____KTW_KZWYMJW_IJYFNQX_ PLUS PERPETUAL NOTES. 10 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.6 Risk management RISK MANAGEMENT IS CEMEX has an Enterprise Risk PRESENT AT GLOBAL, Management (ERM) function to REGIONAL, AND LOCAL LEVELS, AND FOLLOWS A PROCESS RISK OVERSIGHT manage all risks and opportunities AT BOARD LEVEL THAT EMPHASIZES RISK that could impact the company’s DISCUSSION AND MITIGATION business and objectives. ERM has AT TOP MANAGEMENT AND DISCUSSION ON RISK AND become fundamental to supporting top RISK OVERSIGHT AT THE RISK RISK MITIGATION RISK IDENTIFICATION ASSESSMENT STRATEGY AT MITIGATION BOARD LEVEL. EXECUTIVE management in the decision-making COMMITTEE process, reducing the impact of adverse events, and capitalizing on opportunities RISK FOLLOW-UP resulting from a more complex and uncertain environment. Global, regional, and country risk agendas are developed on a biannual basis, considering all types of risks and emerging concerns that could impact the company in the short, medium, and long term. 7NXPX_FWJ_NIJSYNÜªJI_HTSXNIJWNSL_F_HTRGNSFYNTS_TK_F_GTY-tom-up and a top-down approach, which also consid- JWX_NIJSYNÜªHFYNTS_TK_UTYJSYNFQ_TUUTWYZSNYNJX___ After the corresponding analysis and assessment, risks are prioritized by estimated impact and probability of materialization, and a mitigation strategy and monitor- NSL_UQFS_FWJ_IJÜªSJI_KTW_YMJNW_YWJFYRJSY_FSI_KTQQT¥_ZU__ Other risk management processes within the company, such as internal audits, internal controls, compli- FSHJ__FSI_ÜªSFSHNFQ_WNXP_RFSFLJRJSY__HTRUQJRJSY_YMJ_ ERM function. Twice a year, the Corporate Practices and Finance Committee and the Board of Directors discuss the Global Risk Agenda. NELSON MANDELA BRIDGE, BARCELONA, SPAIN 11 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.6 Risk management The following is a 12 description of some ECONOMIC CONDITIONS IN COUNTRIES POLITICAL UNCERTAINTY IN THE COUNTRIES of the main risks and WHERE WE OPERATE IN WHICH WE OPERATE opportunities faced by CEMEX and their corresponding mitigation The economic conditions of the countries where we operate have an effect on our Political uncertainty and its potential economic and social con-strategies: GZXNSJXX__ÜªSFSHNFQ_HTSINYNTS__WJXZQYX__FSI_UWTXUJHYX__ XJVZJSHJX_HTZQI_FI[JWXJQ^_NRUFHY_TZW_TUJWFYNTSX_FSI_UWTÜªY- We face risks particular to each region where we operate. The U.S. economy contin- FGNQNY^__&S^_UTQNYNHFQ_WJXZQY_YMFY_XNLSNÜªHFSYQ^_FKKJHYX_F_HTZSYW^Ñ£X_ economic development or its business environment has the ues to grow at a moderate pace, and the Federal Reserve is set to increase interest potential to impact our operations. rates. Increasing U.S. dollar interest rates could not only have an impact on the U.S. JHTSTR^__GZY_FQXT_TS_YMFY_TK_JRJWLNSL_RFWPJYXÑŸYMWTZLM_YMJNW_HZWWJSHNJX__KTW_J]FR- Social stability in some of the countries in which we operate is UQJÑŸFSI_YMZX__UTYJSYNFQQ^__TS_TZW_HTSXTQNIFYJI_WJXZQYX_FX_¥JQQ__2J]NHTÑ£X_HZWWJSH^_MFX_ more susceptible to political events than it is in others. Some J]UJWNJSHJI_IJUWJHNFYNTS__¥MNHM_HTZQI_NSHWJFXJ_NSÜ«FYNTS__FSI_YMJ_NSYJWJXY_WFYJ_MNPJX_ countries where we operate have seen mass demonstrations and intended to combat it might slow economic activity. Furthermore, protectionist trade protests, which have the potential to impact the economic and policies by Mexico’s key trading partners could undermine its growth potential. business environment and adversely affect our operations’ results. *ZWTUJ_MFX_FQXT_LWT¥S_FY_F_RTIJWFYJ_UFHJ__FSI_F_SJ¥_XNLSNÜªHFSY_HMFQQJSLJ__XYJR- Upcoming elections in Mexico or other countries in the South, Cen-ming from a weak economy in the European Union, could damage the economic tral America and the Caribbean region could play a role in the eco-stability of the whole Euro zone. nomic growth prospects of the involved regions. Similarly, developing political events in Europe, such as Brexit and the Catalonia The Chinese economy presents another potential source of risk. If it were to referendum, can have an impact on the future economic growth of experience a sudden and unexpected deceleration, it could affect global economic the region, potentially impacting the demand for our products. activity. Additionally, the business cycle tends to heavily affect overall construction activity. CEMEX Mitigation Actions Under economic expansion, construction activity rises sharply, but an economic We have implemented several initiatives intended to counter the IT¥SYZWS_YJSIX_YT_GWNSL_F_RFWPJI_IJHWJFXJ_NS_HTSXYWZHYNTS_FHYN[NY^ÑŸYMZX_FKKJHY- effects of political risks: NSL_YMJ_IJRFSI_KTW_TZW_UWTIZHYX_FSI_ÜªSFSHNFQ_WJXZQYX_ • MONITORING AND SCENARIO PLANNING: We monitor important political developments in the countries in which CEMEX Mitigation Actions we operate to anticipate any event that could have an impact We have implemented several initiatives intended to counter the challenging glob-on our operations. This monitoring helps us to take proac-al economic environment: tive steps to identify alternative scenarios, assess risks and • VALUE-BEFORE-VOLUME STRATEGY: Our strategy focuses on value enhance- TUUTWYZSNYNJX__FSI_IJÜªSJ_UWJ[JSYN[J_RNYNLFYNTS_XYWFYJLNJX_FSI_ RJSY__TUYNRN_NSL_LFNSX_NS_HZXYTRJW_WJQFYNTSXMNUX__FSI_LJSJWFYNSL_XZKÜªHNJSY_ contingency plans to maintain a successful business opera-returns that allow us to reinvest in our business. tion in each particular scenario. • COST CONTAINMENT:_4[JW_YMJ_UFXY_^JFWX__¥J_MF[J_NIJSYNÜªJI_FSI_GJLZS_NR- • BUSINESS CONTINUITY PLANS: We have business continu-plementing global cost-reduction initiatives intended to reduce our annual cost ity plans to minimize business disruption in situations where structure to a level consistent with our product demand, as well as our own the social or political environment in which we operate pres-companywide program to enhance competitiveness. ents risks to the continuation of operations. • ASSET OPTIMIZATION: We manage our asset base by divesting noncore assets and optimizing working capital. 12 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.6 Risk management 34 5 6 MORE COMPLEX DEBT LEVEL AND REGULATORY CHANGES VOLATILITY IN ENERGY COMPETITIVE DYNAMICS FINANCIAL AND INCREASED SCRUTINY MARKETS RESTRICTIONS The markets in which we operate are <J_MF[J_IJGY_FSI_TYMJW_ÜªSFSHNFQ_ We are subjected to the laws and 4ZW_TUJWFYNTSX_HTSXZRJ_XNLSNÜªHFSY_ highly competitive and are served by obligations maturing during the next regulations of the countries where we amounts of power and fuel. Power and numerous established companies with years. Our ability to comply with our operate, and any material changes in KZJQ_UWNHJX_LJSJWFQQ^_WJÜ«JHY_HJWYFNS_[TQ-recognized brand names, as well as principal debt maturities depends on such laws and regulations and/or any atility, particularly in times of political new market entrants, increasing im- EBITDA generation, asset sales, and delay in assessing the impact and/or turmoil in Iran, Iraq, Egypt, and other ports, and substitute products. These other indicators that could be affected adapting to such changes may have countries in South America, the Middle companies compete based on several by external factors. an adverse effect on our business. East, and Africa. Energy and fuel cost factors, often employing aggressive increases may have an adverse mate-Additionally, we have credit agree- These laws and regulations expose commercial strategies to increase rial effect on our business. ments and debt instruments that us to the risk of potential costs and market share. contain several restrictions and cov- QNFGNQNYNJX__NSHQZINSL_ÜªSJX_FSI_TYMJW_ In addition, if our efforts to increase If we are not able to compete effec- enants. Our ability to comply may be sanctions, compensation payments to our use of alternative fuels are unsuc-tively, we may lose substantial market affected by economic conditions and third parties, remediation costs, and cessful, we would be required to use share, our net sales could decline or volatility in foreign exchange rates, reputational damage. traditional fuels, which may increase grow at a slower rate, and our busi- as well as by overall conditions in the our energy and fuel costs and could ness and operations’ results would be ÜªSFSHNFQ_FSI_HFUNYFQ_RFWPJYX_FSI_YMJ_ CEMEX Mitigation Actions have a material adverse effect on affected. construction sector. We continuously work to comply with TZW_GZXNSJXX__ÜªSFSHNFQ_HTSINYNTS__FSI_ changes in laws and regulations in all results of operations. CEMEX Mitigation Actions CEMEX Mitigation Actions of the countries where we operate. We We expect to maintain and grow our 4ZW_ÜªSFSHNFQ_XYWFYJL^_NX_IJXNLSJI_YT_ IJ[TYJ_XNLSNÜªHFSY_YNRJ_FSI_WJXTZWHJX_ CEMEX Mitigation Actions market positions in cement, ready-mix reduce our debt level mainly through: to assess and, if required, adjust our We have continued efforts to increase HTSHWJYJ__FSI_FLLWJLFYJXÑŸFX_¥JQQ_FX_ operations to any such changes. our use of alternative fuels, which vertically integrating these business- • DEBT PREPAYMENTS THROUGH Our employees abide by our Code of has resulted in reduced energy costs. FOCUS ON EBITDA GENERATION In addition, we have developed pro- JXÑŸG^_GJNSL_TSJ_TK_YMJ_RTXY_HZXYTR- Ethics and Business Conduct. The er-centric competitors in the construc- • REDUCTION OF FINANCIAL cesses and products that allow us to Code addresses anti-bribery, relat-tion materials industry. COSTS reduce heat consumption in our kilns, ed-person transactions, health and which also reduce energy costs. We also continue with our value-be- • ADEQUATE MANAGEMENT OF safety, environmental responsibility, KTWJ_[TQZRJ_XYWFYJL^_YT_WJÜ«JHY_YMJ_MNLM_ OUR DEBT PROFILE. HTSÜªIJSYNFQNY^__HTSÜ«NHYX_TK_NSYJWJXY__ Furthermore, we have developed a value-creating capability of our prod- ÜªSFSHNFQ_HTSYWTQX__FSI_UWJXJW[FYNTS_TK_ large portfolio of clean power projects ucts and services. assets. that not only provide low-cost energy, but also provide certainty in future energy costs. 13 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 1.6 Risk management 78 PRICE VOLATILITY AND 9 1 UNCERTAIN AVAILABILITY CYBER AND INFORMATION ADVERSE WEATHER HEALTH AND SAFETY OF MATERIALS REQUIRED SECURITY CONDITIONS 0 RELATED RISKS TO RUN OUR BUSINESS Should existing suppliers cease oper- We rely on several information tech- Construction activity, and thus de- Activities in our business can be ations, reduce or eliminate production nologies and automated operating mand for our products, decreases hazardous and can cause injury to of these materials, sourcing costs systems to manage or support our substantially during periods of cold people or damage to property in cer-HTZQI_NSHWJFXJ_XNLSNÜªHFSYQ^_TW_WJVZNWJ_ operations and sales. To maintain weather, when it snows or when tain circumstances. Our production ZX_YT_ÜªSI_FQYJWSFYN[JX__¥MNHM_HTZQI_ GZXNSJXX_JKÜªHNJSHNJX__NY_NX_HWNYNHFQ_ heavy or sustained rainfalls occur. facilities require individuals to work have a material adverse effect on that these systems function proper- Consequently, demand for our prod- with chemicals, equipment, and other our business. Additionally, scarcity of ly. In addition, our systems, as well ZHYX_NX_XNLSNÜªHFSYQ^_QT¥JW_IZWNSL_YMJ_ materials that may potentially cause natural resources, such as water and as those provided by our third-party winter in temperate countries and harm, injury or fatalities when used aggregates reserves, in some coun- service providers, may be vulnerable during the rainy season in tropical without due care. Accidents or injuries tries where we operate could have a to damage, disruption or intrusion, countries. Such adverse weather that occur at our facilities could result material adverse effect on our costs caused by circumstances beyond our conditions can negatively affect our in disruptions to our business and and results of operations. control, such as physical or electronic business results if they occur with may have legal, regulatory, economic, break-ins, catastrophic events, power unusual intensity or last longer than and reputational consequences. CEMEX Mitigation Actions outages, natural disasters, computer usual in our major markets, especially We are not dependent on our suppli- system or network failures, viruses or during peak construction periods. CEMEX Mitigation Actions ers, and we aim to secure the supply malware, unauthorized access, and Health and safety (H&S) is our top Additionally, severe adverse weather of required materials through long- cyber-attacks. priority for CEMEX. We strive to have HTSINYNTSX_ J_L___Ü«TTIX__Y^UMTTSX__MZW- zero incidents by improving how we term renewable contracts and frame-In addition, our insurance coverage ricanes) have the potential to damage work agreements, which we believe reinforce safe behaviors with our may not cover cyber security risks we our assets and disrupt our operations. ensures better supply management. employees and contractors, strength-may be exposed to. ening the accountability of manage- CEMEX Mitigation Actions ment for ensuring safe behavior, CEMEX Mitigation Actions We have business continuity plans in implementing workplace improve- We take proactive measures to secure place at our main operations dements on a regular basis and promot-our IT systems and electronic infor- signed to avoid major disruptions to ing a safety culture in our every day mation and have business continuity our business. In addition, some of activities. plans in place if any business disrup- our main operations and assets are tion occurs. insured against such events. However, in most cases, the insurance policy does not cover the total impact that an adverse event could have, which limits its effect. 14 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2 OUR STRATEGY An agile and innovative company MEDIA LIBRARY OF VITROLLES, FRANCE 15 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT At its core, our business strategy has four main elements: Value our people as our main OUR PEOPLE competitive advantage OUR CUSTOMERS Help our customers succeed MARKETS WHERE Pursue markets that offer WE OPERATE QTSL_YJWR_UWTÜªYFGNQNY^ FOCUS ON Ensure sustainability is fully SUSTAINABILITY embedded in our business Individually, each element engages and impacts our business in very distinct ways. Collectively, they help us achieve our mission of creating value by building and managing a global portfolio of integrated cement, aggregates, ready-mix concrete, and related businesses. 16 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.1 Value our people as our main competitive advantage WE ARE REINFORCING OUR COUNTRIES’ DEFENSIVE DRIVER TRAINING, WHILE <MFY_RFPJX_(*2*=_Ü«TZWNXM_FX_F_LQTGFQ_TWLFSN_FYNTS$_.YÑ£X_TZW_UJTUQJ__<J_YFPJ_ INTRODUCING A great pride in hiring the best and brightest talent and supporting them with a safe, STRONGER DRIVER healthy work environment and opportunities for growth and development. CERTIFICATION SCHEME. PLACING HEALTH AND SAFETY FIRST We are deeply saddened to report 20 fatalities in ____ÑŸYMWJJ_JRUQT^JJX__XJ[JS_HTSYWFHYTWX_FSI____ Health and safety is our top priority. To ensure we are YMNWI_UFWYNJX_____TK_¥MNHM_¥JWJ_WTFI_YWFKÜªH_WJQFYJI__4SJ_ meeting our goals, four core principles guide every KFYFQNY^_NX_TSJ_YTT_RFS^__FSI_¥J_¥NQQ_STY_GJ_XFYNXÜªJI_ decision we make and action we take: until we reach our goal of zero injuries and fatalities. i Ensure nothing comes before the health and safety To achieve this objective, we are actively working to of our people, contractors, and communities identify and mitigate risks. Each injury and fatality is analyzed to prevent future incidents. i Make health and safety a personal responsibility by looking after ourselves and each other Most of the fatalities derived from moving vehicle incidents (i.e., collisions involving contractors’ trucks). That i Strive to create a workplace with zero harm is why we invest in technology and training programs to i Maintain accountability for health and safety try to eliminate these types of events in our operations practices. by encouraging our employees and contractors to use the right driving techniques to take care of themselves Our Zero4Life commitment and third parties. For example, we are reinforcing our We are constantly working towards our ultimate target countries’ defensive driver training. We have introduced TK__JWT_NSOZWNJX_¥TWQI¥NIJÑŸTZW_?JWT_1NKJ_HTRRNYRJSY_ F_XYWTSLJW_IWN[JW_HJWYNÜªHFYNTS_XHMJRJ__¥MNQJ_NRUQJRJSY-ing various actions to protect vulnerable road users. We In 2017, our Employee Lost-Time Injury (LTI) Frequency FATALITIES EVENT TYPE acknowledge that we need to continue to work hard and Rate was 0.5, bringing us closer to our goal of reduc- (percentage) drive forward with our initiatives. ing our Employee LTI Rate to 0.3 or less by 2020. We are encouraged to see that 95% of CEMEX operations HEALTH & SAFETY TRAINING: A TOP FOCUS 10 were fatality and lost-time-injury free for the year. We O INCIDENTS INVOLVING recognize the remaining 5% is still considerable. How- At CEMEX, health and safety training is a key part of 15 MOVING VEHICLES ever, the overall direction is positive. our strategy to reach our Zero4Life goal. We constantly O CONTACT WITH MOVING strive to ensure that all of our employees have the cor- MACHINERY Also in 2017, our Employee Total Recordable Injury rect knowledge, skills, and experience to enable them O OTHERS (TRI) Frequency Rate continued to reduce, reaching 3.4 75 to perform their jobs safely. compared to 4.1 in 2016 and 4.5 in 2015. Four regions and 17 countries reduced their TRI Rates, with seven As part of our manager-training activities, executives countries maintaining a rate of zero. In addition, the and supervisors must complete our Health and Safety global Employee Sickness Absence Rate for CEMEX (H&S) Academy program, which is designed to en- MOST OF 2017 FATALITIES OCCURRED OFF-SITE AND WERE RELATED TO ROAD TRAFFIC. improved from 1.8 to 1.6 in 2017. hance the leadership skills of our line managers and 17 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.1 Value people as our main competitive advantage supervisors and to ensure that H&S is our top priority H&S Initiatives Around our Operations FHWTXX_TZW_TWLFSN_FYNTSÑŸKWTR_TZW_UWTIZHYNTS_UQFSYX_YT_ Across our operations, we continue to enhance our TZW_HTWUTWFYJ_TKÜªHJX__ healthy practices and reduce our safety risks to strengthen our H&S culture. Throughout our Global Net- The program was launched in 2016 with the Founda-work H&S tracks, during 2017, we implemented diverse tion module, which prepares our line managers to lead +4,800 initiatives that support our Zero4Life commitment. by example and play a fundamental role in ensuring LINE MANAGERS safety throughout our operations. In 2017, we trained Reinforcing Contractor Safety TRAINED THROUGH T[JW_______QNSJ_RFSFLJWX_YMWTZLM_YMNX_ÜªWXY_RTIZQJ__ Our cement operations engage with many contrac- H&S ACADEMY During 2017, we continued the journey of the H&S tors, all of which provide valuable services to us. They “FOUNDATIONS” Academy with the launch of Module 2, which enables help to support our operations on a day-to-day basis our line managers to utilize the 14 tools of our H&S and throughout major maintenance activity. Whatever MODULE IN 2017. Management System (HSMS) to achieve our Zero4Life their role or scope of work, they must be safe while goal in their operations. they are working for us. As part of our approach to recognize their positive performance and behavior, &QWJFI^_HTRRJSHJI_NS_FQQ_Üª[J_TK_TZW_WJLNTSX__YMJ_-_8_ during 2017, we reinforced our requirement for Con- Academy’s day-and-a-half second module has been tractor Recognition, which we have rolled out globally. well received, and we have continued to gain very positive feedback. With regard to our road transportation activities, our contracted drivers remain a key target audience for Additionally, during 2017, we launched a global initia-us. We have implemented a range of options to help tive to provide training to our front-line workers in order motivate them to operate according to the same H&S YT_NIJSYNK^_MF_FWIX__XYF^_TZY_TK_YMJ_Ñ¦QNSJ_TK_ÜªWJ_Ñ§_FSI_ standards expected from our own employees. Ap- Stop, Think and Act before performing a job. The train-proaches that we have taken include recognition as a ing was structured to be practical, thought provoking, preferred contractor, personal praise, symbolic awards, and delivered by local managers. and trophies at prestigious events. For example, CE-MEX in the UK conducted a series of H&S initiatives H&S Networks: One CEMEX working together to manage and improve contractor health and safety, As One CEMEX, we have established interconnected including a two-day workshop focusing on our 12 global H&S networks, tracks, and forums to ensure safety essentials. We also continued to implement our that we work together through a coordinated, consis-internal minimum vehicle safety standards and action tent, and collaborative approach to reach our compa-plans, which includes engaging with communities and nywide goal of zero injuries: other collaborators, to protect vulnerable road users at i THE H&S FUNCTIONAL NETWORK, all of our na- a global level. tional H&S specialists Raising Awareness of Mixer Truck Rollovers i THE GLOBAL H&S COUNCIL, corporate and region-A global ready-mix concrete business poses safety chal-al representatives who interact with our extended lenges, especially those related to road transportation. global H&S networks and Global Networks SIX GLOBAL NETWORK H&S TRACKS, senior opera- Therefore, our Ready-Mix Track launched an initiative i YT_HTRGFY_TSJ_Y^UJ_TK_NSHNIJSY_YMFY_HTZQI_THHZWÑŸRN]JW_ tional people supported by at least one member of our truck rollovers. This initiative includes guidance designed corporate H&S team to raise awareness among managers and drivers on A GLOBAL HEALTH FORUM OF EXPERTS who what actions can cause such incidents. It also includes i work on initiatives to help our employees and con- mandatory requirements for all of our operations to pre-tractors lead a healthy lifestyle. vent these types of incidents. 18 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.1 Value people as our main competitive advantage INTELEX: A STATE-OF-THE-ART TOOL TO &_<JJPQ^_Ñ¦+NWXY_)F^_‘FHPÑ§_9WFNSNSL BUILDING A BETTER WORKPLACE TOGETHER HELP ACHIEVE OUR ZERO4LIFE GOAL .S_TZW_FLLWJLFYJX_TUJWFYNTSX__¥J_FSFQ^_JI_FSI_NIJSYNÜªJI_ With more than 40,000 employees around the world, we that, over consecutive weeks, a number of incidents XYWN[J_YT_TKKJW_YMJ_UWTLWFRX__GJSJÜªYX__FSI_¥TWP_JS[NWTS - As an evolution of our online platform to track THHZWWJI_TS_YMJ_ÜªWXY_IF^_TK_YMJ_¥JJP__XT_¥J_IJHNIJI_YT_ ment that attract and retain great talent. Our approach H&S incidents, we have implemented a new NRUQJRJSY_Ñ¦ÜªWXY_IF^_GFHP_YT_¥TWPÑ§_YWFNSNSL__<MNQJ_YMJ_ to talent management is founded on three pillars: state-of-the-art tool in partnership with INTELEX, content of each training session is decided by our local a Canadian company that specializes in H&S operations, the concept is to target the most relevant applications and tools. areas of each particular operation in order to proactively EMPLOY THE RIGHT PEOPLE, IN THE RIGHT remind people of correct procedures and to ensure they PLACE, AT THE RIGHT TIME to perform the know how to adopt them. right job to achieve our strategy Health Awareness REAL-TIME REPORTING During 2017, we continued to embed and raise the ENABLE A DIGITAL, HIGH-PERFORMING, AND UWTÜªQJ_TK_TZW_,QTGFQ_-JFQYM_*XXJSYNFQX_UWTLWFR__¥NYM_F_ REWARDING CULTURE to deliver sustainable AND ANALYSIS TO number of awareness raising materials. Additionally, business value in a safe, ethical workplace as a result of targeted teamwork, we designed a health ENABLE QUICKER management framework that has helped to enhance our DECISIONS AND EARLY ability to share good practices across our operations. BUILD, DEVELOP, AND ENABLE OUR INTERVENTION. All of our countries have been using these materials to WORKFORCE CAPABILITIES to confront continue emphasizing the importance of occupational challenges and pursue excellence. and personal health matters. Through these efforts and our overall approach to providing health checks for our employees, we are witnessing many examples of work- Right people, right place, right time After a comprehensive process involving a mul- force engagement on this very important topic. Our people are our competitive advantage and the rea-tidisciplinary team of experts from IT and H&S, son for our success. That is why we hire the best and ¥J_IJHNIJI_YT_HTSÜªLZWJ_YMJ_KTQQT¥NSL_KTZW_NSNYNFQ_ +TW_J]FRUQJ__YT_JSXZWJ_TZW_JRUQT^JJX_LJY_ÜªY_FSI_XYF^_ work hard to develop and support each and every one modules to meet CEMEX’s needs: healthy, CEMEX in the USA provides them with important TK_YMJRÑŸXT_YMFY_¥J_FQQ_LWT¥_XZHHJXXKZQQ^_ information throughout an annual Health Week. During i INCIDENT MANAGEMENT (near miss or hazard the week, our nearly 9,000 employees across the country alerts, incident reporting, investigation, root cause) Succession Management are encouraged to learn the keys to healthy lifestyles. Fo- As we constantly transform and expand, one of our i INSPECTIONS cusing on certain building blocks of health, this program main objectives is to develop people with the poten-urges our employees to stay active, eat and drink wisely, YNFQ_YT_ÜªQQ_PJ^_QJFIJWXMNU_UTXNYNTSXÑŸNSHWJFXNSL_YMJNW_ i ACTION PLAN MANAGEMENT (management prevent stress, quit tobacco, and sleep well. experience and capabilities to equip them to succeed and tracking of corrective and preventive actions, global and local plans) in even more challenging roles while strengthening Embedding Global Safety Standards in Our Paving and our talent up and down our pipelines. Through this i VISIBLE FELT LEADERSHIP. Building Solutions process, we make every effort to improve our employ-These modules can be accessed either on the web In 2017, we continued to embed several global stan- ees’ commitment to our company by helping them or through mobile devices such as Android and IOS. IFWIX_YMFY_FWJ_YFWLJYJI_FY_XUJHNÜªH_FWJFX_YT_UWJ[JSY_HTR- meet their own career development expectations mon causes of injuries and ill health, including Pedestri- and preparing them for key roles as they face critical This tool offers many advantages. Importantly, it ans on Urban Sites, Mobile Equipment, and Working at challenges in their professional development. Our provides real-time reporting and analysis to en- Height. In addition, we developed a set of toolbox talk succession management process enables us to build able us to make quicker decisions and to allow for materials to help site managers provide regular commu- a talented pool of leaders with the skills and deep un-early intervention. Again, this new tool supports nication and training to our workers. derstanding of our business fundamentals to contin-our journey to achieve our Zero4Life goal. ue our pursuit of excellence. 19 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.1 Value people as our main competitive advantage GLOBAL WORKFORCE (percentage) COMPARATIVE WAGE RATE 2017 BY LEVEL BY GENDER BY CONTRACT BY AGE BY SENIORITY CEMEX entry level vs. local 1 minimum wage ratio 7 14 18 17 24 Argentina 1.45 36 Bahamas 1.14 38 55 Brazil 1.03 31 31 Central 4.94 99 86 27 Colombia 1.00 16 Croatia 1.59 Czech Republic 1.00 O OPERATIONAL POSITIONS O MALE O FULL-TIME O UNDER 30 O LESS THAN 1 YEAR O NON-EXECUTIVE POSITIONS O FEMALE O PART-TIME O 31-40 O 1-5 YEARS Dominican Republic 1.74 O EXECUTIVE POSITIONS O 41-50 O 5-10 YEARS Egypt 1.86 O 51 AND OVER O OVER 10 YEARS El Salvador 1.54 France 1.00 Competitive Compensation our values, how enabled they feel, their level of com- Germany 1.00 Guatemala 1.24 We know that, if our employees have the resources they mitment, and their perception of leadership. More than Haiti 1.00 SJJI_YT_QN[J_MJFQYM^__KZQÜªQQNSL_QN[JX__YMJ^_¥NQQ_GWNSL_YMJNW_GJXY_ 37,000 employees worldwide were invited to partici- Jamaica 3.61 to the workplace, and our competitive compensation and pate in the 2017 edition of our Voices into Actions sur- JRUQT^JJ_GJSJÜªY_UFHPFLJX_FWJ_PJ^_HTSYWNGZYTWX_ Latvia 2.08 vey with a participation rate of 82%. During 2018, our Mexico 1.28 - UJTUQJ_¥NQQ_KTHZX_TS_IJÜªSNSL_FSI_NRUQJRJSYNSL_FHYNTS_ <J_WJLZQFWQ^_HTRRZSNHFYJ_YMJXJ_GJSJÜªYX_YT_TZW_TUJW plans, providing opportunities to collaborate with oth- Nicaragua 1.23 FYNTSXÑŸ¥MNHM_XUFS_FQQ_TK_TZW_TWLFSN_FYNTSFQ_QJ[JQXÑŸYT_ ers, sharing experiences, and executing ideas to build a Panama 1.00 ensure all of our employees understand the opportuni- Peru 2.43 stronger CEMEX. These efforts will be mainly focused ties available to them. Philippines 1.35 on employee empowerment through training, recognition and career building advice; enhancing leadership Poland 1.05 High performing, rewarding culture and overall communication; and improvement of work- Puerto Rico 1.58 We foster a dynamic, high-performance environment, life balance, among others. Spain 1.26 where open dialogue is encouraged and rewarded. In this WE STRIVE TO OFFER Trinidad and Tobago 3.27 way, we hear our employees’ needs and expectations, Fostering Positive, Productive Interactions THE PROGRAMS, UK 1.03 ensure they feel engaged, and enable them to meet their Open communication keeps everyone on the same USA 1.46 career goals through our institutional processes. BENEFITS, AND WORK page and our priorities on track. In 2017, 78% of our CEMEX overall ratio 1.44 employees with access to our online system to regis- ENVIRONMENT THAT Building a Stronger Work Environment ter objectives and performance evaluations received ATTRACT AND RETAIN Voices into Actions is a two-year structured global performance feedback and career development advice GREAT TALENT. process through which we gather, analyze, and react to from their supervisors. Employees without computer our employees’ opinions in order to improve not only access worked with their supervisor directly to con-our engagement, but also other factors that support duct evaluations and receive input. our company’s priorities such as how our people live 20 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.1 Value people as our main competitive advantage Evolving Career Building, Talent Management RFIJ_F_XNLSNÜªHFSY_NRUFHY_TS_YMJ_TWLFSN_FYNTS_FSI_ Our evolving approach to talent management works encompasses two main themes: the leaders’ own YT_JSXZWJ_F_RTWJ_JKÜªHNJSY_FSI_RTWJ_HTSSJHYJI_YFQJSY_ personal course and their role in CEMEX’s course. H^HQJ__TKKJWNSL_HQJFWJW_GJSJÜªYX_FSI_TZYHTRJX_KTW_TZW_ Along with deep introspection, leaders must develop employees’ career development. Through our inte- XUJHNÜªH_XPNQQX_YT_RFSFLJ_YMJ_YJSXNTS_GJY¥JJS_HFUNYFQ-grated performance, talent review, and succession izing on what is known and certain to maximize value planning processes, we enable superior career deci- for our business today and exploring opportunities to sions and professional growth. As a result, we help our create new sources of value for our company in the employees and supervisors to set and align team goals future. With this approach, ENVISION is divided into with our company’s business objectives. We ensure YMWJJ_UFWYXÑŸ1*&5__&8(*3)__FSI_8:22.9ÑŸ¥MJWJ_ that all of our employees’ and managers’ behavior is participants engage in topics focusing on leadership, aligned with our core values. Additionally, we identify innovation, and disruption to tackle challenges that areas of opportunity and development while delivering our organization is currently facing. During 2018, we meaningful reviews that reinforce employee engage- expect to launch the second generation of ENVISION ment and retention. with a cohort of 15 global leaders. i IGNITE, our new leadership program that we will Capabilities to confront challenges, pursue excellence launch in 2018, replaces ACHIEVE and adapts to new We craft career experiences for our employees to ¥F^X_TK_¥TWPNSL_NS_YMNX_INLNYFQ_JWF__.,3.9*_NX_XUJHNÜª— IJ[JQTU_YMJNW_NSSJW_ÜªWJ_KTW_(*2*=ÑŸJXUTZXNSL_TZW_ cally targeted to top-tier managers and newly ap-values and living by our mission and vision. Our success stems from our employees’ hard work and dedi- UTNSYJI_INWJHYTWX__(TRUWNXJI_TK_Y¥T_HTWSJWXYTSJXÑŸ cation, so we are committed to providing them with the HZXYTRJW_HJSYWNHNY^_FSI_QJFIJWXMNU_HFUFGNQNY^ÑŸNY_NX_ designed to provide new opportunities to learn and best professional experience. Our work is challenging, practice leadership skills on real work projects and to invigorating, and rewarding. Accordingly, we want our foster peer relationships globally. In 2018, we expect US$21.5 MILLION INVESTED IN UJTUQJ_YT_XYF^_HTSSJHYJIÑŸFQNLSJI_¥NYM_TZW_LTFQXÑŸFSI_ to select 50 to 60 high-potential leaders from across to never stop learning. TRAINING AND DEVELOPMENT, all of our regions and business units. INCLUDING US$1.1 MILLION IN Continuing Education and Development i LEADER-TO-LEADER is a unique initiative that con-SCHOLARSHIPS FOR MASTER’S <J_MF[J_XJJS_ÜªWXYMFSI_YMFY_JRUQT^JJX_¥MT_FWJ_ nects current and future CEMEX leaders. Mentors from DEGREES. supported by their company are inspired to excel. this program work with employees throughout the year Through ongoing training and development oppor- and participate in IGNITE activities to offer support. +1,000 TRAINING COURSES OFFERED. tunities, we teach them new skills and deepen their +320,000 HOURS IN ONLINE AND expertise in several critical areas, including H&S, Building Institutional Capabilities INSTRUCTOR-LED TRAINING. customer-centric capabilities, environmental conser- Our institutional academies are the vehicle through vation and awareness, leadership development, and which we develop our company’s strategic capabilities. stakeholder engagement. They are designed to work together to drive CEMEX UWNTWNYNJX_FSI_MJQU_XMFUJ_TZW_Ñ¦4SJ_(*2*=Ñ§_(ZQYZWJ__ Developing Effective Leaders With regard to our H&S Academy, following the launch of It takes sound, strong direction to propel a company our size forward and to ensure we meet our custom- YMJ_ÜªWXY_RTIZQJ_NS_______¥J_WJFHMJI_T[JW_______JRUQT^-ees during 2017. We also launched the second module, ers’ needs. That’s why we invest in development pro-designed for our line managers to better understand and grams for leaders at different levels. effectively use each of the elements of our Health and i Launched in 2016, ENVISION is a highly immersive Safety Management System. In 2017, we reached over program that recognizes leaders who have already 500 line managers with this second module. 21 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.1 Value people as our main competitive advantage In 2017 we also implemented our Supply Chain Academy Foundations, a two-day experience with games and business cases that promote a highly integrated and globally consistent approach to the supply chain across our company. This module was released for our Mexico, ACADEMIES’ COVERAGE BY REGION INTERNAL INSTRUCTORS TRAINED South, Central America and the Caribbean, Asia, Middle (people trained) (percentage) East and Africa, and Europe regions. In our Commercial Academy, we implemented “What to CENTRAL )TÑ§_FSI_[FQZJ_GJKTWJ_[TQZRJ_RTIZQJX_WJFHMNSL_FUUWT]- 17 173 447 24 imately 2,000 employees worldwide. We also developed 29 MEXICO 242 O COMMERCIAL ACADEMY a new Foundations module to incorporate the evolution SUPPLY CHAIN ACADEMY INTERNAL O of our thoughts on digital innovation and customer cen- 418 1,023 133 64 INSTRUCTORS O HEALTH & SAFETY tricity. We will deploy this module in 2018. TRAINED USA Moreover, as part of our new Culture & Values Acad- 443 1,052 49 47 emy, we are designing an onboarding experience for SOUTH, CENTRAL AMERICA, AND THE CARIBBEAN launch in 2018. During 2017, our academies delivered approximately 211 1,173 284 34 TRAINED AUDIENCE 430 training sessions in all five CEMEX regions, reaching EUROPE 8,493 around 8,500 employees. Additionally, 25 Train-The- 724 795 30 485 Trainer sessions developed 242 internal instructors, who ASIA, MIDDLE EAST, AND AFRICA FWJ_PJ^_YT_TZW_XZXYFNSFGQJ_Ñ¦1JFIJWX_&X_9JFHMJWXÑ§_RTIJQ_ 292 560 58 28 TRAINING HOURS TOTAL SESSIONS CEMEX University: Embedding a Growth Mindset In 2017, we began to integrate our current institutional O COMMERCIAL ACADEMY O HEALTH & SAFETY ACADEMY 113,556 433 &HFIJRNJX_ÑŸ(TRRJWHNFQ__-JFQYM___8FKJY^__8ZUUQ^_ O SUPPLY CHAIN ACADEMY O CULTURE & VALUES ACADEMY (MFNS__FSI_(ZQYZWJ___;FQZJXÑŸ_ZSIJW_YMJ_HTSHJUY_TK_ CEMEX University. CEMEX University aims to become AVG. HOURS/PARTICIPANT MODULES COUNTRIES our company’s trusted learning advisor with a vision of 13 7 26 developing a digital continuous learning ecosystem for our employees and acting as a high impact catalyst for our transformation. COMMERCIAL What to do: 841 CEMEX University works hand-in-hand with our Global ACADEMY Value-before-Volume MODULES for Ready-mix: 1,247 Networks and our Regional Presidents as executive sponsors to respond to our multi-region, multi-business Foundations: 17 learning needs, supporting our employees by providing the concepts, practices and tools needed to implement OUR INSTITUTIONAL HEALTH & SAFETY Module 1: 4,290 our strategy. CEMEX University favors a blended ACADEMIES ARE MODULES Module 2: 486 learning approach that leverages traditional in-person DESIGNED TO DRIVE Culture and Values: 1,107 training with new best-in-class digital learning platforms. CEMEX PRIORITIES AND With CEMEX University, our intent is to embed a HELP SHAPE OUR “ONE growth mindset throughout our organization and fulfill SUPPLY CHAIN Foundations: 505 our employees’ potential. (*2*=Ñ§_(:19:7*_ MODULES 22 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed We continually strive to build a better future for our customers and all of our XYFPJMTQIJWX__<J_UQFHJ_TZW_HZXYTRJWX_FY_YMJ_HJSYJW_TK_J[JW^YMNSL_¥J_ITÑŸ delivering a superior customer experience driven by a bold digital transformation. DELIVERING A SUPERIOR CUSTOMER EXPERIENCE to ensure that we create the best possible experience for them. Over the past two years, we have invested Today, our operating environment and our customers’ XNLSNÜªHFSYQ^_NS_TZW_(ZXYTRJW_(JSYWNHNY^_,QTGFQ_3JY-expectations are changing rapidly and dramatically. work. Focus on customers is a core organizational Consequently, we are embarking on a bold path of value and priority built on a comprehensive under-transformation to enable us to meet those expecta-standing of: tions. We have set two goals: deliver a superior customer experience, and develop new business models WHO driven by digital technology. To achieve these goals, we have been working on are our customers different fronts and undertaken different initiatives. Our WHAT Customer Centricity Global Network has implement-is important to them ed initiatives to place our customer at the center of WE WANT OUR CUSTOMERS everything we do. Additionally, through the creation of HOW CEMEX Ventures, we are developing new sources of TO VIEW US AS RELIABLE, revenue by developing ideas that will revolutionize our we can best serve their needs EASY TO WORK WITH, industry through the use of technology. Among these INNOVATIVE, EXPERT AND efforts, CEMEX Go is at the center of our transforma- Already, our customer centricity initiatives focused on PROFESSIONAL; IN SHORT, tion. pricing policies, sales management, customer segmentation, and the value proposition we offer to our AN EXCELLENT PARTNER Fostering customer centricity customers, are integrated into our ongoing operations. THAT ENABLES OUR Our focus on customers is one of our company’s core While we still have work to do, we have made tremen- CUSTOMERS TO SUCCEED. values. With this value in mind, we want our customers dous progress in these areas. to view us as reliable, easy to work with, innovative, As part of our customer centricity intiatives, we are expert and professional; in short, an excellent partner committed to understand how our customers perceive that enables our customers to succeed. us from the beginning to the end of their customer jour-We are putting our customers at the center of every ney. This gives us the information we need to transform action we take and every decision we make. We have these interactions and modify internal policies to better organized our company and redesigned our processes enable us to achieve a superior customer experience. 23 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed Transforming our business: Creating a superior PROVIDING MORE THAN BUILDING customer experience everywhere, every time Ultimately, we want to surpass our customers’ ex- PRODUCTS TO MEXICO’S NEW pectations. By listening to their needs, comprehend-INTERNATIONAL AIRPORT ing their challenges, and appreciating what success Given the immense scale of Mexico City’s means to them, we are devoted to ensuring that doing New International Airport, one of the biggest business with us is easy and delightful. challenges is to organize the supply chain By virtue of our Commercial Academy and related JKÜªHNJSYQ^__9MJ_WF¥_RFYJWNFQX_WJVZNWJI_YT_UWT- initiatives, we are reinforcing focus on customers as a duce the concrete for this project will come core organizational value and priority that meets both from different sources and will be transported our customers’ and our company’s need for growth in trucks, trains, and ships; all of which are FSI_UWTÜªYFGNQNY^__9T_IFYJ__¥J_MF[J_IJQN[JWJI_FUUWT]N-part of the logistics solution that we offer mately 5,700 training sessions to our company’s pro-our customers. Additionally, we are installing fessionals through our Commercial Academy, reaching several concrete plants on the airport con- 2,000 employees worldwide over the course of 2017. struction site to guarantee continuous supply throughout the project. Additionally, we enjoy a solid, wide reach in the markets where we operate, with the facilities and logistical capabilities to serve our customers accurately, consistently, and rapidly. IGNITING A DIGITAL TRANSFORMATION Moreover, we are strategically expanding our man- Beyond changing the way we behave internally, we ufacturing and distribution capabilities to serve our are leveraging on digital technologies to transform our customers’ and communities’ increasing demand for customer’s experience with CEMEX. high-quality public infrastructure, commercial build-We are embracing digital technologies to both stream- NSLX__FSI_MTZXNSL_UWTOJHYX_RTWJ_JKÜªHNJSYQ^__JKKJHYN[JQ^__ line and simplify the way our customers engage with and reliably. For example, in 2017, we successfully us and enhance how we operate. To this end, we acquired and consolidated a majority stake in Trinidad launched a digital transformation strategy during 2016. Cement Limited (TCL). As one of the leading producers and distributors of cement and ready-mix concrete 8UJHNÜªHFQQ^__NS_3T[JRGJW_______¥J_FSSTZSHJI_F_UFWY- UWTIZHYX_NS_YMJ_(FWNGGJFS__9(1_XNLSNÜªHFSYQ^_GTQXYJWX_ nership with IBM and Neoris to develop digital solu-TZW_WJLNTSFQ_TUJWFYNTSX_FSI_YWFINSL_SJY¥TWPÑŸJSFGQNSL_ tions to help us transform how we interact with cus-us to deliver a superior experience for our new and tomers all along the customer journey. Following the WE ARE DEVOTED TO existing customers in the area. initial deployment, we are continuously updating and adding capabilities to continually improve the function- ENSURING THAT DOING We also deliver on our promises to ensure our cus-ality and stay ahead of our customers’ expectations. BUSINESS WITH US IS tomers’ satisfaction. On top of our many day-to-day personal interactions, we gain valuable insights by Over the past few years, we developed and implement- EASY AND DELIGHTFUL. ed several digital solutions that are being used by our carefully listening to our customers through interviews, commercial events, service centers, help lines, and customers. What we learned from our experiences other feedback channels. ¥NYM_UFXY_XTQZYNTSX_NX_NSÜ«ZJSHNSL_YMJ_RJYMTITQTL^_ we are using today to achieve a superior customer experience, everywhere, every time, enabled by digital technologies. 24 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed CEMEX GO AVAILABLE FOR ALL OF OUR PRODUCTS A SUPERIOR CUSTOMER EXPERIENCE ENABLED BY DIGITAL TECHNOLOGIES Including bagged and bulk cement, ready-mix concrete, aggregates, and multi-products. We are transforming the global building mate- Launched as a fully digital suite of services, CEMEX rials industry with the launch of CEMEX Go, a Go is helping customers get more done in less time 2 ÜªWXY_TK_NYX_PNSI__KZQQ^_INLNYFQ_HZXYTRJW_NSYJLWFYNTS_ by simplifying and streamlining their interactions OFFERED IN ALL OF OUR MARKETS platform. Combining our industry leadership with with CEMEX, reducing customers’ administrative Its global deployment is taking place over the cutting-edge digital innovation, CEMEX Go is a burden, and giving them more time to focus on course of 2018. multi-device offering that provides a seamless more strategic business matters. Through this experience for order placement; live tracking of platform, customers are able to work anytime and 3 shipments; and managing invoices and payments anywhere using multiple devices. With CEMEX Go, ACCESSIBLE TROUGH ALL DEVICES for our main products. CEMEX Go delivers re- customers can review their transaction history, Offers a comprehensive, integrated solution al-time, detailed information that customers need to track their shipments real-time via GPS, receive compatible with smartphones, smartwatches, get more done in less time, enabling them to enjoy NSXYFSY_STYNÜªHFYNTSX_TK_YMJNW_TWIJW_XYFYZX__RFPJ_FI- tablets and computers for both, iOS and Android. more control over their businesses. justments to their orders, and gain full visibility and transparency of all of the information they need to 4 Evidence of our customer-centric mindset and better manage their business. In short, CEMEX Go COVERS THE WHOLE CUSTOMER JOURNEY relentless focus on continuous innovation and is enabling customers to do in minutes what histori- Provides our customers with a fully digital improvement, CEMEX Go creates a superior expe-cally has taken them hours, all just one click away. purchasing experience; from placing orders to rience for our customers than any provided in the making payments. UFXYÑŸTKKJWNSL_YMJ_TSQ^_UQFYKTWR_TK_NYX_PNSI_NS_TZW_NS- During 2017, we started the rollout of CEMEX Go dustry. CEMEX Go moves us closer to our custom- in the United States and Mexico. Its deployment ers by providing more transparency and enhanced across the rest of our geographies is taking place JKÜªHNJSH^ _FQQ_TK_¥MNHM_¥NQQ_JSFGQJ_LWJFYJW_UWTIZH- T[JW_YMJ_HTZWXJ_TK_____ÑŸHMFSLNSL_YMJ_¥F^__(*2*=_ tivity and open up new growth opportunities for our does business around the world. customers and our company. CEMEX Go places the CEMEX Go is a major milestone in our digital trans-power to succeed in today’s fast-paced and dynam-formation to achieve a superior customer experiic market in the hands of our customers. ence. As with the launch of any new technology, its features and capabilities will evolve over time. It will include other functionalities to address the needs of JFHM_XUJHNÜªH_XJLRJSY__QNPJ_YMJ_(TSXYWZWFRF_4SQNSJ_ Store, which will allow o our distribution network to LAUNCHED AS A FULLY DIGITAL serve their customers th ough a digital channel. SUITE OF SERVICES, CEMEX GO WILL HELP CUSTOMERS GET MORE DONE IN LESS TIME BY SIMPLIFYING AND STREAMLINING THEIR INTERACTIONS WITH CEMEX. 25 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed DELIVERING SUPERIOR PERFORMING BUILDING needs, while truly challenging the current state of the PRODUCTS, SOLUTIONS, AND SERVICES FWY__&RTSL_TYMJW_GJSJÜªYX__TZW_XZUJWNTW_HTSHWJYJ_XTQZ- CEMEX ROCKS WITH NEW neogem BRAND tions help improve land use, increase water and energy AGGREGATES When our customers succeed, we succeed. Accord- JKÜªHNJSH^__RNYNLFYJ_STNXJ_UTQQZYNTS__FSI_QT¥JW_GZNQINSLXÑ£_ ingly, our core strategic goal is to become the most Together with members of our Aggregates Global Network, CE- HZXYTRJW_TWNJSYJI_HTRUFS^_NS_TZW_NSIZXYW^ÑŸXJW[NSL_ carbon footprint. Led by Global R&D in Switzerland, our team of experts MEX Global R&D supported the design, creation, and launch of as our clients’ best option. We are moving forward our new value-added aggregates brand: neogem. These products from a product-selling company to a comprehensive works in close collaboration with our customers to are specialized high-quality aggregates, whose intrinsic properties solutions provider. offer them unique, integrated, cost-effective solutions RJJY_YMJ_JXXJSYNFQ_SJJIX_TK_Üª[J_RFWPJY_XJHYTWXÑŸ&LWNHZQYZWFQ__*S-YMFY_KZQÜªQQ_YMJNW_XUJHNÜªH_UJWKTWRFSHJ_WJVZNWJRJSYX__ vironmental, Industrial, Landscaping, and Sports. neogem covers Ultimately, we aim to create solid relationships with our including a growing portfolio of value-added brands. an extensive range of premium minerals that can add value to customers by establishing the foundations for long-last-To be able to provide the same offering in all of our our customers’ projects through particular functional or aesthetic ing partnerships. We leverage our leading-edge inno-operations, our salesforce is continually informed and features. neogem products are innovative, carefully selected, and vation and agility to develop superior building products trained on value-added brands, with material shared by tailor-made solutions that go beyond commonly known building and solutions that perform at the highest standards Global R&D through our internal Global Networks. An- materials. across all applications. As the only global building other initiative is to begin integrating Building Informa-materials company with its own concrete admixtures tion Modeling (BIM) technology into our interaction with business, we are able to design and develop novel, customers, providing them an overview of their projects tailor-made concrete technologies with our propri- JYFW^_HMJRNHFQX__2TWJT[JW__TZW_J]UJWYX_NS_ÜªJQIX_XZHM_ and how our products can be incorporated. as geology, chemistry, materials science, and various Following its Intellectual Property Strategy, technologies other engineering disciplines work alongside behav- developed by Global R&D are protected by more than ioral scientists, cultural anthropologists, and commer- 50 international patent families, covering new cements, cial strategists to anticipate and understand society’s cementitious materials, concrete mix designs, admix-trends to create innovative, sustainable construction YZWJX_KTWRZQFYNTSX__FSI_HTSXYWZHYNTS_X^XYJRXÑŸTKKJWNSL_ solutions that satisfy our customers’ current and future unique exclusive solutions to our customers. CEMEX GLOBAL VALUE-ADDED READY-MIX PRODUCTS Rapid hardening concrete Fire-resistant concrete Fiber-reinforced concrete that allows for at least 90 solution for thermal and with hyper strength and minutes workability. acoustic insulation. ductility. SPECIALIZED HIGH-QUALITY AGGREGATES FOR FIVE MARKET SECTORS: AGRICULTURAL, ENVIRONMENTAL, INDUSTRIAL, Self-curing concrete that Structural pervious &_MNLMQ^_Ü«T¥FGQJ_ LANDSCAPING, AND SPORTS. reduces the need of water concrete that can manage concrete that can spread and external chemicals water permeation to offer into place under its during the curing process. drainage solutions for own weight to achieve pavements. excellent consolidation without vibration. 26 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed DEVELOPING EFFICIENT BUILDINGS, RESILIENT (TSXNXYJSY_¥NYM_YMNX_HTRRNYRJSY__TZW_HTWUTWFYJ_TKÜªHJX_ INFRASTRUCTURE, AND AFFORDABLE HOUSING in Spain, the Philippines, and the Czech Republic earned TZW_JHTUJWFYNSL_51:8_HJWYNÜªHFYNTS_NS_______9MJXJ_XNYJX_ Green building solutions comply with key characteristics, including: At CEMEX, we believe in leading by example. With this i Tobacco smoke control policy in mind, we established a Green Building Manage- GREEN BUILDING SERVICES > to mitigate potential i Health and safety programs RJSY_FSI_(JWYNÜªHFYNTS_5TQNH^_ Natural daylight and exterior views environmental impacts associated with the design, i construction, and operation of our buildings. The pol- i Solid waste management and recycling program icy provides that the planning, design, construction, _*SJWL^_JKÜªHNJSY_QNLMYNSL_X^XYJRX Green building i management, renovation, and demolition activities of HJWYNÜªHFYNTSX_ 1**)__ all company-owned and leased facilities are carried i_<FYJW_WJIZHYNTS_Üª]YZWJX BREEAM, Net Zero, etc.) out in a sustainable way. i Bicycle storage facilities and shower rooms GREEN BUILDING CERTIFICATION SERVICE – PROJECTS PORTFOLIO *SJWL^_JKÜªHNJSY_ engineering CONSTRUC- CERTIFICATION PROJECT LOCATION TYPE STATUS TION AREA TARGET ICA Reserva Escondida Mexico City, Mexico Residential 22,584 m2 1**)_(JWYNÜªJI Completed ecoperating™ building HJWYNÜªHFYNTS_FSI_UWTIZHY_ SEMARNAT 223 Mexico City, Mexico 4KÜªHJX 32,000 m2 1**)_(JWYNÜªJI Completed seal Esfera City Center Monterrey, Mexico Commercial 276,925 m2 LEED Silver Completed 2 LEED Platinum Sustainable materials Torre Cosmopolitan Tijuana, Mexico Residential 13,950 m Completed ecoperating PLUS and solutions development Lucena San Pedro Garza Garcia, Mexico Residential 14,000 m2 ecoperating PLUS Completed Casas Sorteo Tec 199, 201 and 202 San Pedro Garza Garcia, Mexico Residential 2,267 m2 ecoperating Completed Urban development Casas Sorteo Tec 200 and 203 San Pedro Garza Garcia, Mexico Residential 1,302 m2 ecoperating PLUS Completed consultancy (*2*=_(TWUTWFYJ_4KÜªHJX Makati City, Philippines 4KÜªHJX Ÿ ecoperating PLUS Completed (*2*=_(TWUTWFYJ_4KÜªHJX Madrid, Spain 4KÜªHJX Ÿ ecoperating PLUS Completed Bioclimatic architecture (*2*=_(TWUTWFYJ_4KÜªHJX Prague, Czech Republic 4KÜªHJX Ÿ ecoperating PLUS Completed (*2*=_(TWUTWFYJ_4KÜªHJX Houston, USA 4KÜªHJX Ÿ LEED Silver Ongoing 2 Net Zero Energy OUM Wellness Center San Pedro Garza Garcia, Mexico Commercial 5,000 m Ongoing Building 27 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed Moreover, we work collaboratively across the construc- technology was used to shape the concrete elements EPD DECLARATION tion value chain to optimize results and maximize prof- of all exposed surfaces of this important highway. its, partnering with national and international experts to complement our skills and provide a complete array (*2*=_UFWYNHNUFYJX_NS_2J]NHTÑ£X_ÜªWXY_ZSIJW¥FYJW_YZSSJQ of specialized services in sustainable construction. We contributed to the construction of the Coatzacoalcos CEMEX OBTAINS ENVIRONMENTAL PRODUCT DECLARATIONS Underwater Tunnel in Veracruz, Mexico. The dimensions FOR 80 TYPES OF CONCRETE During the year, we provided products and solutions to of this complex project required us to design and deliver -more than 1,000 projects that attained a green building (*2*=_JFWSJI_YMJ_3FYNTSFQ_7JFI^_2N]JI_(TSHWJYJ_&XXTHNFYNTSÑ£X_HJWYNÜª 2 special concretes to build the different structures that cation of 80 Environmental Product Declarations (EPDs) from four of its HJWYNÜªHFYNTS__WJUWJXJSYNSL_HQTXJ_YT_____RNQQNTS_R of shaped the tunnel and its points of access. Because the ready-mix concrete operations in Mexico, the U.S., and Panama. This certi-construction space. construction unfolded under water, we worked closely ÜªHFYNTS_WJFKÜªWRX_(*2*=Ñ£X_HTRRNYRJSY_YT_XZXYFNSFGQJ_IJ[JQTURJSY__¥MNQJ_ with the client to design the concrete mix used in the reinforcing its vision to build a better future for all of its stakeholders. Sustainable, durable infrastructure development tunnel to meet international durability standards. Specif- Around the globe, the need for resilient infrastruc- 3 An EPD is a voluntary declaration that provides quantitative information ture to support growing urban populations is critical, ically, we supplied 48,000 m _TK_XUJHNFQ_UWTIZHYXÑŸKWTR_ on the environmental impact of a product using a life cycle assessment concrete for the different structural elements to the especially as climate change creates more extreme design and placement of concrete pavement inside the 1(&__RJYMTITQTL^__[JWNÜªJI_G^_FS_NSIJUJSIJSY_YMNWI_UFWY^__.Y_FQXT_XJW[JX_ weather. As such, CEMEX supports the development of tunnel and the toll area. FX_F_RJHMFSNXR_YT_XHTWJ_UTNSYX_TS_LWJJS_GZNQINSL_HJWYNÜªHFYNTSX_XZHM_FX_ durable infrastructure with quality products, construc- LEED. tion practices, and maintenance that have minimal CEMEX supplies self-compacting concrete for medical environmental impact. *5)X_FWJ_IJXNLSJI_YT_RJJY_YMJ_¥TWQI_RFWPJY_IJRFSI_KTW_XHNJSYNÜªHFQQ^_ clinic in France based, transparent, and reliable information, enabling organizations to In 2017, CEMEX enabled the installation of close to The La Croix du Sud Clinic in Toulouse, France, is one communicate their products’ environmental performance in a credible 8.8 million m2 of concrete pavement by supporting of the largest construction projects currently under and understandable way. the construction of nearly 430 infrastructure projects development in the region. To meet its requirements, around our operations. we supplied over 20,000 m3 of concrete, including a For more information about EPDs, please visit the NRMCA EPD Program specially formulated self-compacting mix. In addition website > CEMEX contributes to one of Poland’s main to 3,000 m2 of parking lots, the new health clinic com-expressways UQJ]_NX_HTRUWNXJI_TK_XJ[JS_Ü«TTWX_NS_F________R2 area. In Poland, we are collaborating on the construction of <J_IJ[JQTUJI_F_XUJHNFQ_RN]_TK_MNLMQ^_Ü«ZNI_HTSHWJYJ_KTW_ the S7 Expressway, one of the key infrastructure high- the 14-meter high walls of the parking space, where way projects currently under development in the coun- concrete joints were avoided for aesthetic purposes. try. This major cross-country expressway connects To ensure the bases of the formworks did not break the Baltic Coast to cities such as Warsaw, Krakow, and during pouring, sensors with set maximum pressure the Slovakian border region. We installed two mobile limits were placed at different heights, and funnels concrete plants on site to better meet the needs of this ¥JWJ_ZXJI_YT_JFXJ_HTSYWTQ_TK_UTZWNSL_Ü«T¥X_ comprehensive project. With an average daily production of approximately 1,500 m3, these plants will allow CEMEX delivers special solutions for major German CEMEX to supply over 400,000 m3 of concrete. motorways We also utilized several technologies to meet the <J_XZUUQNJI_XJ[JWFQ_XUJHNFQ_XTQZYNTSXÑŸNSHQZINSL_ WE CONTRIBUTED TO needs of this massive project: Sliding technology to ¥FYJW_UJWRJFGQJ_FSI_FNW_JSYWFNSJI_HTSHWJYJÑŸKTW_YMJ_ rehabilitation of sections of Germany’s A1 and A2 THE CONSTRUCTION OF RT[J_YMJ_UWJ_ÜªSNXMJI_XYWZHYZWJ_TK_YMJ_GWNILJ_KWTR_YMJ_ Motorways. For the renovation of approximately 6 bridgehead to further supports; and overhang tech- THE COATZACOALCOS kilometers of the A1 Motorway, we delivered almost nology, which consists of independent concreting of 3 UNDERWATER TUNNEL 1,000 m of our special Pervia® concrete mix, enabling segments on both sides of the cantilevered section IN VERACRUZ, MEXICO. the construction of a water-permeable concrete layer of the bridge. Additionally, high architectural concrete under this highway’s new concrete pavement. Together 28 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed DESIGN AWARD with a supply partner, we also delivered over 4,000 m3 housing projects located in Santo Domingo. These of air-entrained concrete to replace sections of the A1 projects included Residencial Río Verde, Residencial motorway’s pavement. For one of the busiest sections 1F_2FWVZJXF_=..__FSI_7JXNIJSHNFQ_1FX_+QTWJXÑŸF_YTYFQ_ CEMEX’S RHIZOLITH ISLAND PROJECT WINS RENOWNED of the A2 motorway, we supplied almost 12,000 tons of more than 1,000 units equal to almost 78,000 m2 DESIGN AWARD of cement for road paving through a mobile mixing of livable space. plant located near the construction site. Thanks to our The internationally renowned German Design Council granted our Rhi- Through this partnership, we enable access to decent extensive portfolio of high-quality building solutions, zolith Island project the 2018 German Design Award in the Excellent low-cost housing for many families. We also provide we were able to improve connectivity between the Communication Design and Urban Space and Infrastructure catego- necessary services, given the planned construction of communities in which we operate. ries. Additionally, we earned a Merit Award at the American Institute XHMTTQX__WJHWJFYNTSFQ_UFWPX__MTXUNYFQX__UTQNHJ_FSI_ÜªWJ_ of Architects New York Chapter 2017 Design Awards. stations, and shopping centers, among other amenities. *KÜªHNJSY__FKKTWIFGQJ_MTZXNSL_ Envisioned by CEMEX Global R&D in collaboration with APTUM Archi- City planners are constantly challenged to provide Expanding opportunities for underprivileged YJHYZWJ_FSI_8^WFHZXJ_:SN[JWXNY^__7MN_TQNYM_.XQFSI_NX_F_Ü«TFYNSL__WJXNQNJSY_ ¥F^X_YT_JKÜªHNJSYQ^_FSI_FKKTWIFGQ^_MTZXJ_WFUNIQ^_LWT¥- Colombian families coastal infrastructure that revitalizes depleted mangrove forests along ing urban populations. With this in mind, we support We continued our participation in the Colombian Gov-vulnerable shorelines subject to coastal erosion. It consists of a mod- the social and economic development of communities around the globe. Providing expertise in building JWSRJSYÑ£X_Ñ¦8THNFQ_.SYJWJXY_-TZXNSL_KTW_8F[JWXÑ§_ ;.5&__ ular platform that uses advanced CEMEX high-strength, lightweight, program. VIPA allows families to purchase their own permeable, and high-ductility concrete technologies to strengthen the JKÜªHNJSY_MTRJX_¥NYM_YFNQTW_RFIJ_FSI_FIFUYFGQJ_X^X- home without spending more than 30% of their income ecological performance of the island as a breakwater. tems, we are delivering housing for all socioeconomic on credit fees, thereby enabling households whose markets. For more information on this collaboration, please visit our website. > members do not earn more than minimum wage to We integrate design, products, and wall systems into realize their dreams of home ownership. As part of MTZXNSL_XTQZYNTSX_YMFY_FWJ_Ü«J]NGQJ_FSI_WJUQNHFGQJ_ this program, in 2017, we collaborated on 13 different affordable housing projects in the departments i INDUSTRIALIZED HOUSING: +FXY__JKÜªHNJSY__FSI_ of Cesar, Quindío, Risaralda, and Norte de Santander, large-scale housing construction 2 totaling more than 5,300 units equal to 240,000 m i DISASTER RELIEF HOUSING: The best response for of construction. Notably, these projects utilized our reconstruction after natural disasters industrialized housing system, along with our superior ENERGY-EFFICIENT HOUSING: Most competitive sustainable Hidratium concrete solution. i solution for high-performance buildings Fostering affordable, sustainable housing in Mexico i AFFORDABLE HOUSING: The lowest possible cost &QNPF_7JXNIJSHNFQ_NX_YMJ_ÜªWXY_XZXYFNSFGQJ_WJXNIJSYNFQ_ without giving up quality complex built in Veracruz, Mexico. Applying value-add-i VERTICAL HOUSING:_+FXY_FSI_JKÜªHNJSY_HTSXYWZH- ed engineering to reduce costs and utilize available tion for high-rise and mid-rise residential WJXTZWHJX_RTWJ_JKÜªHNJSYQ^__¥J_JRUQT^JI_TZW_HFXY_NS_ place housing solution: a system that uses formwork RHIZOLITH ISLAND Our expertise with tailor-made, adaptable systems molds for the construction of walls and slabs to enable IS A FLOATING, contributed to the construction of more than 9,500 KFXY_FSI_JKÜªHNJSY_UWTOJHY_HTRUQJYNTS__9MJ_T[JWFQQ_ affordable housing units in 2017, representing approxi- project involved the construction of 2,400 housing RESILIENT COASTAL 2 mately 928,000 m of livable space. units with a total livable space of over 480,000 m2. INFRASTRUCTURE THAT The project will also allocate approximately 40% of the REVITALIZES DEPLETED Enabling access to affordable and decent housing in complex to recreational parks, common areas, and MANGROVE FORESTS. the Dominican Republic gardens, including a children’s playground, a bicycle As part of the public-private partnership for the path, a small lake, and a plant nursery. development of Juan Bosch City in the Dominican Republic, in 2017, we collaborated on three affordable 29 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.2 Help our customers succeed CULTIVATING BETTER, CLOSER PERSONAL important constituency, from academic outreach to relationship with nature. Our collaborative relationships RELATIONSHIPS WITH OUR CUSTOMERS our annual CEMEX Building Award. included students from the University of Pennsylvania, Syracuse University, the University of Turin, the Califor-Our success is directly dependent upon the success of For a second consecutive year, we collaborated with the nia College of the Arts, and the European Architectural TZW_XYFPJMTQIJWXÑŸNSHQZINSL_TZW_HZXYTRJWX__XZUUQNJWX__ International University of Catalonia and Pich-Aguilera Students Assembly (EASA). FSI_JRUQT^JJXÑŸFHWTXX_TZW_JSYNWJ_[FQZJ_HMFNS__-JSHJ__¥J_ Architects in the Climate Concrete Workshop, where invest considerable time and effort into building strong, students evaluate novel approaches to envelope CEMEX Building Award: Honoring the best of the best personal partnerships. Consistent with this commitment, design that address buildings’ comfort requirements Through our annual CEMEX Building Award, one of we build transparent, open relationships that generate and performance. The result of last year’s workshop the most renowned competitions in the construction trust across every business in which we engage. was a façade that helps reduce a building’s energy consumption by decreasing the temperature of the air ÜªJQI__¥J_STY_TSQ^_MTSTW_JSLNSJJWX__FWHMNYJHYX__FSI_TYMJW_ building professionals, but also encourage creativity in Stakeholder collaboration: Building lasting YMFY_Ü«T¥X_J]YJWSFQQ^__9MNX_KFà¤‹FIJ_¥NQQ_MJQU_IJHWJFXJ_ the application of new concrete technology to improve relationships YMJ_JSJWL^_HTSXZRUYNTS_NS_YMJ_ÜªWXY_3JY_?JWT_GZNQINSL_NS_ our communities. The CEMEX Building Award recog-&WHMNYJHYX_HTSXYNYZYJ_FS_NSÜ«ZJSYNFQ_LWTZU_TK_HZXYTRJWX__ Latin America. nizes the best projects in Mexico and the rest of the who inspire and constantly challenge the possibilities Throughout the year, we collaborated with univer- ¥TWQI_NS_Üª[J_HFYJLTWNJX_FSI_¥NYM_KTZW_XUJHNFQ_UWN_JX__ of our cutting-edge building materials. Accordingly, we XNYNJX_FSI_FWHMNYJHYZWJ_ÜªWRX_YT_NIJSYNK^_FSI_J]UQTWJ_ For the XXVI Edition, a total of 545 projects competed continually foster collaborative relationships with this new ways in which we can use concrete to continue in the national awards, while 70 projects from 17 differ-building a better society and creating a symbiotic ent countries competed in the international awards. CEMEX BUILDING AWARDS WINNERS Category: Residential Housing Category: Affordable Housing Category: Building Category: Collective Space Category: Infrastructure Concretus House. Alicante, Spain Norte Club. Bucaramanga, Colombia Torre Reforma. Mexico City, Mexico Archeopark Pavlov. Pavlov, Czech Tunnel Under the Dead Vistula River. Republic Gdansk, Poland VISIT WWW.CEMEX.COM FOR A FULL LIST OF PROJECTS HONORED DURING THE XXVI BUILDING AWARDS > Special Prize: Universal Accessibility Special Prize: Sustainable Building Special Prize: Construction Innovation Special Prize: Social Value Torre Reforma. Mexico City, Mexico Golden 1 Center. Sacramento, United Oaxaca’s Historical Archive Building. Vitrolles 13 Media Centre. Vitrolles, States Santa Lucía del Camino, Mexico France 30 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.3 5ZWXZJ_RFWPJYX_YMFY_TKKJW_QTSL_YJWR_UWTÜªYFGNQNY^ CEMEX does business in markets where we can add value for our employees, our customers, and our shareholders. We will focus on those markets that offer long- YJWR_UWTÜªYFGNQNY^_ Our geographically diverse portfolio of assets pro- nesses that enable us to become closer to our cus-[NIJX_ZX_¥NYM_YMJ_TUUTWYZSNY^_KTW_XNLSNÜªHFSY_[FQZJ_ tomers, grow our core business, develop a competitive HWJFYNTS_YMWTZLM_UWTÜªYFGQJ_TWLFSNH_LWT¥YM_T[JW_YMJ_ advantage, and improve our performance. medium to long term. i EXECUTE GLOBALLY and replicate best practices Consequently, we are selective and strategic about through our Global Networks. where we do business. We will not chase growth simply i FOCUS AND SPECIALIZE ON WHAT WE DO BEST for the sake of growth. We also will continue to optimize allowing us to develop a profound expertise in manu-our portfolio so that we are in the businesses and mar-PJYX_¥MJWJ_¥J_HFS_LJSJWFYJ_XNLSNÜªHFSY_WJYZWSX_ facturing and marketing our products. This expertise is fundamental to enable CEMEX to deliver value for Leveraging our global presence and extensive opera- both current and new markets. tions worldwide, we will continue to focus on what we ATTRACTIVE ORGANIC GROWTH – Our three i do best: our core cement, aggregates, ready-mix con- core businesses are intimately related to economic crete, and related businesses. By managing our core and infrastructure development, which provides an WE ARE SELECTIVE AND operations as one vertically integrated business, we attractive opportunity to achieve organic growth in not only capture a greater portion of the cement value STRATEGIC ABOUT WHERE many markets. chain, but also get closer to our customers by offering VERTICAL INTEGRATION – Cement and aggre- WE DO BUSINESS. WE comprehensive building solutions. i ALSO WILL CONTINUE TO gates are key materials used to produce ready-mix Historically, this strategic focus has enabled us to concrete. OPTIMIZE OUR PORTFOLIO grow our existing businesses, particularly in high- SO THAT WE ARE IN THE growth markets and with specialized, higher margin CORE BUSINESSES BUSINESSES AND MARKETS products. We will venture beyond our core strengths when it is essential to better market our products and WHERE WE CAN GENERATE serve our customers. SIGNIFICANT RETURNS. BUSINESS PORTFOLIO READY-MIX CEMENT AGGREGATES CONCRETE We are focused on three core businesses within the MJF[^_GZNQINSL_RFYJWNFQX_NSIZXYW^ÑŸHJRJSY__WJFI^_RN]_ HTSHWJYJ__FSI_FLLWJLFYJXÑŸ¥MNHM_MF[J_JSFGQJI_ZX_YT_ develop deep expertise, knowledge, and practices. We also participate selectively in complementary busi- 31 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.3 _5ZWXZJ_RFWPJYX_YMFY_TKKJW_QTSL_YJWR_UWTÜªYFGNQNY^ COMPLEMENTARY BUSINESSES GEOGRAPHIC STRUCTURE CEMEX participates selectively in complementary Our business portfolio is particularly focused on ge- NEW BUSINESSES ENABLED BY DIGITAL businesses, such as the development of alternative ographies that combine strong fundamentals, ranging TECHNOLOGIES and renewable sources of energy, concrete pavement from economic growth potential to cement per-capita During 2017, we launched our open innovation and corporate ven-solutions, housing, prefabricated concrete products, consumption, population growth, degree of urbaniza-ture capital unit, CEMEX Ventures, which focuses on engaging start-admixtures, and more. tion development, and political stability. Key perfor-ups, entrepreneurs, universities, and other stakeholders expected to mance metrics include: Allows us to be closer to our custom- shape tomorrow’s construction ecosystem by tackling our industry’s ers and offer comprehensive solutions, i GROWTH POTENTIAL—‘FXJI_TS_Üª[J_^JFW_LWT¥YM_ toughest challenges. Our commitment to innovation offers more which enables us to better understand horizon proof of our company’s drive to bring the global building materials market gaps and opportunities. industry into an interconnected business age. i HISTORICAL PER-CAPITA CEMENT CONSUMP-Helps us grow our core markets. Many TION—An important measure of the potential for Leveraging our knowledge of the industry, CEMEX Ventures is de-of the building solutions we offer within growth in construction and cement demand going veloping opportunities in key focus areas outside of our company’s markets, such as concrete pavements forward core business, including urban development, connectivity improve- POPULATION GROWTH—Indicates need for hous- ments across the construction value chain, and new construction or commercial products, allow us to i YWJSIX_FSI_YJHMSTQTLNJX__¥MNQJ_IJ[JQTUNSL_SJ¥_UWTOJHY_ÜªSFSHJ_ increase demand and use of our core ing, infrastructure, and economic growth WJXTZWHJX__<MFY_XJYX_(*2*=_;JSYZWJX_FUFWY_NX_NYX_Ü«J]NGQJ_FUUWTFHM_ products. i DEGREE OF URBAN DEVELOPMENT—Potential to the attraction and generation of innovative ideas that enables the Develops a competitive advantage for increased population living in urban centers and, incorporation of initiatives and projects at any stage of their maturity. therefore, need for housing, commercial, and infra-and increases our ability to differenti- structure development. CEMEX Ventures’ main role is to look for investment opportunities ate our products and solutions. that go beyond the core business of the company. It also aims to identify and assess emerging technologies to bring CEMEX new ideas and perceptions of the construction ecosystem. To this end, CEMEX Ventures allocates resources to search, incubate, and deploy Improves performance. Certain busi- innovative construction related opportunities and solutions. ness segments result from a need to WJIZHJ_HTXYX_TW_NSHWJFXJ_TZW_JKÜªHNJSH^__ In 2017, CEMEX Ventures analyzed more than 2,000 potential busi-+TW_J]FRUQJ__¥J_MF[J_NS[JXYJI_XNLSNÜª- nesses, invested in three startups, and developed and engaged in six cantly in the use of alternative fuels and deep dives with CEMEX employees. Furthermore, CEMEX Ventures renewable power sources. MJQI_NYX_4UJS_(MFQQJSLJ__NYX_ÜªWXY_HTRUJYNYNTS_KTW_XYFWYZUX__JSYWJUWJ-neurs, innovators, businesses, and employees that are exploring new opportunities in any of its focus areas. Following its success, CEMEX Ventures is preparing its Construction Startup Competition 2018. CEMEX PARTICIPATES SELECTIVELY IN COMPLEMENTARY BUSINESSES SUCH AS CONCRETE PAVEMENT EGYPT’S FIRST CONCRETE HIGHWAY SOLUTIONS. 32 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.3 _5ZWXZJ_RFWPJYX_YMFY_TKKJW_QTSL_YJWR_UWTÜªYFGNQNY^ CONSOLIDATED RESULTS Following is a review of operational results and the ÜªSFSHNFQ_HTSINYNTS_TK_YMJ_HTRUFS^_ Consolidated net sales increased 2% to US$13.7 billion in 2017. On a like-to-like basis for our ongoing MEXICO AND THE TUJWFYNTSX_FSI_KTW_KTWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_HTR-pared with 2016, consolidated net sales increased 3% U.S. MADE HIGHER for the year. The increase on a like-to-like basis was the CONTRIBUTIONS, result of higher prices for our products in local cur-OFFSETTING THE rency terms in Mexico and the U.S., as well as higher DECLINE IN OTHER cement volumes in our U.S. and Europe regions. REGIONS WHERE WE Cost of sales as a percentage of net sales increased 1.5 percentage points, from 64.2% in 2016 to 65.7% OPERATE. in 2017. The increase was mainly driven by higher energy costs. GOLDEN ONE CENTER, U.S.A. Operating expenses as a percentage of net sales increased 0.1 percentage points, from 21.6% in 2016 We reported a LFNS_TS_ÜªSFSHNFQ_NSXYWZRJSYX_of to 21.7% in 2017. The increase was mainly driven by US$229 million in 2017, resulting mainly from the gain higher distribution expenses. on the sale of our direct interest in Grupo Cementos de Chihuahua, the re-measurement of our previous own-Operating EBITDA decreased 7% to US$2.6 billion in ership interest in TCL of 39.5%, and our equity deriva-2017. On a like-to-like basis, operating EBITDA declined tives related to CEMEX shares. 6% for the year. The decrease on a like-to-like basis was due mainly to lower contributions from our South, We reported a foreign exchange loss of US$1 million Central America and the Caribbean, Europe, and Asia, NS_______WJXZQYNSL_RFNSQ^_KWTR_YMJ_Ü«ZHYZFYNTS_TK_YMJ_ Middle East and Africa regions, partially offset by high- Mexican peso versus the U.S. dollar. er contributions from Mexico and the U.S. We reported controlling interest net income of Operating EBITDA margin decreased 1.8 percentage US$806 million in 2017 versus net income of US$750 points, from 20.6% in 2016 to 18.8% in 2017. RNQQNTS_NS_______9MJ_MNLMJW_NSHTRJ_UWNRFWNQ^_WJÜ«JHYX_ ADMINISTRATION BUILDING AT THE ESCUELA QT¥JW_ÜªSFSHNFQ_J]UJSXJX__GJYYJW_WJXZQYX_KWTR_ÜªSFS-cial instruments, a positive effect from discontinued BANCARIA Y COMERCIAL, MEXICO operations, and lower income tax, partially offset by lower operating earnings before other expenses, net, a foreign exchange loss, higher non-controlling interest net income, and lower equity in gain of associates. Total debt plus perpetual notes decreased US$1.7 billion to US$11.3 billion at the end of 2017. 33 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.3 _5ZWXZJ_RFWPJYX_YMFY_TKKJW_QTSL_YJWR_UWTÜªYFGNQNY^ Financial position: Towards investment grade GLOBAL REVIEW OF OPERATIONS One of our main priorities is to reach an investment- grade capital structure as soon as possible. Over the SOUTH, past three years, we have made substantial and sus- CENTRAL ASIA, YFNSJI_UWTLWJXXÑŸRFWPJI_G^_YMJ_KTQQT¥NSL_NRUTWYFSY_ UNITED 2 AMERICA MEXICO 1 EUROPE MIDDLE EAST OTHER TOTAL STATES AND 4 ÜªSFSHNFQ_FSI_TUJWFYNTSFQ_FHMNJ[JRJSYX_ AND AFRICA THE CARIBBEAN3 i WE SOLD ASSETS in excess of US$3 billion. We mainly used the proceeds from these asset sales, GLOBAL OPERATIONS UQZX_KWJJ_HFXM_Ü«T¥_LJSJWFYNTS__YT_WJIZHJ_IJGY__,TNSL_ forward, we do not anticipate any further material Net sales 3,095 3,484 3,516 1,883 1,361 332 13,672 asset divestments for deleveraging purposes. Operating earnings before other expenses, net 1,027 276 165 380 161 (285) 1,725 i WE REDUCED OUR TOTAL DEBT PLUS PERPETUAL NOTES by close to US$5 billion over this period. Operating EBITDA 1,145 604 363 471 223 (234) 2,572 i WE REDUCED OUR LEVERAGE RATIO under our main bank-debt agreement from 5.19 times at the Assets5 3,599 14,694 5,178 2,359 1,456 1,657 28,994 end of 2014 to 3.85 times at year-end 2017. WE RAISED OUR CONVERSION RATE of EBITDA to millions of US dollars as of December 31, 2017 i KWJJ_HFXM_Ü«T¥_FKYJW_RFNSYJSFSHJ_(&5*=_KWTR___ _ to 50%. CAPACITY PER REGION i WE REDUCED OUR WORKING CAPITAL from 19 Cement production capacity 29.5 15.2 23.9 13.9 9.9 92.4 days on a year-end basis to negative 23 days, repre- (million tons/year) senting a reduction in average total working capital investment of approximately US$1.2 billion. Cement plants (controlled) 15 11 17 10 3 56 i OUR CONTROLLING INTEREST NET INCOME Cement plants (minority part.) 3 6 1 0 0 10 REACHED_:8____RNQQNTSÑŸYMJ_MNLMJXY_NS_F_IJHFIJÑŸ from a net loss of US$507 million three years ago. Ready-mix plants 254 335 718 115 83 1,505 i WE IMPROVED THE OPERATING EFFICIENCY of our cement kilns from 88.9% to 89.3% . Aggregates quarries 12 64 179 21 9 285 As a result of our progress, we are well on our way to Land distribution centers 81 39 70 37 31 258 regaining an investment-grade capital structure. Our discipline and consistency in reducing our leverage Marine terminals 7 7 32 16 5 67 continues to translate into an improvement in our credit ratings. During 2017, we obtained two credit-rating as of December 31, 2017 upgrades from Standard & Poor’s, reaching a rating of 1. Beginning March 31, 2011, includes the operations of Ready Mix USA LLC. In 2016, Concrete Pipe Business and Northwest Materials Business in the United States are excluded from net sales, operating BB for its global scale. In addition, Fitch Ratings re- earnings before other expenses, net, and operating EBITDA. vised the outlook of their current BB-minus rating from 3. Includes operations Argentina, Barbados, Brazil, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Guyana, Jamaica, Nicaragua, Panama, Peru, Puerto Rico, Trinidad and Tobago, as2. Includes operations in Croatia, Czech Republic, Finland, France, Germany, Latvia, Lithuania, Norway, Poland, the United Kingdom, Spain, and Sweden stable to positive. 4. Includes operations in Egypt, Israel, the Philippines, and the United Arab Emirates. Malaysia, Bangladesh and Thailand are excluded from net sales, operating earnings before other expenses, net, andwell as other operations in South, Central America and the Caribbean region 5. Includes assets in associated participation. operating EBITDA. 34 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.3 _5ZWXZJ_RFWPJYX_YMFY_TKKJW_QTSL_YJWR_UWTÜªYFGNQNY^ Mexico on a like-to-like basis, excluding volumes related to In 2017, our Mexican operations’ net sales increased the cement plants which were sold, increased by 8% year over year to US$3.1 billion, and operating EBIT- 2%. Our ready-mix concrete volumes on a like-to-like DA improved 10% to US$1.1 billion. Our domestic gray basis, excluding the West Texas operations, declined cement, ready-mix concrete, and aggregates volumes by 1%. Our aggregates volumes, also on a like-to-like declined by 4%, 3%, and 3%, respectively, for the year. GFXNX__WJRFNSJI_Ü«FY_KTW_YMJ_^JFW_ The residential sector was the main driver of demand SALES DISTRIBUTION BY PRODUCT during the year. In this sector, cement-intensive sin-(percentage) gle-family housing starts increased by 8% during the year, supported by low inventories, wage growth, job creation, 16 positive consumer sentiment, and improved lending conditions. In the industrial-and-commercial sector, national O CEMENT contract awards declined by 1% during 2017; however, 45 O READY-MIX awards for our four key states rose by 4% for the year. O AGGREGATES South, Central America and the Caribbean 39 .S_______TZW_SJY_XFQJX_KTW_YMJ_WJLNTS_NSHWJFXJI__ ÑŸF_IJ-HWJFXJ_TK__ _TS_F_QNPJ_YT_QNPJ_GFXNXÑŸYT_:8____GNQQNTS__4ZW_ TUJWFYNSL_*’.9)&_IJHQNSJI___ ÑŸF___ _IJHQNSJ_TS_F_QNPJ_ OYAMEL HOUSE, YT_QNPJ_GFXNXÑŸYT_:8____RNQQNTS__&X_F_¥MTQJ__TZW_WJLNTS- SALES DISTRIBUTION BY REGION VERACRUZ, MEXICO al operations’ domestic gray cement and aggregates (percentage) volumes increased by 13% and 1%, respectively, while our ready-mix concrete volumes decreased by 4% for 10 During 2017, our cement volumes were supported by the year. On a like-to-like basis, including the operations 24 O MEXICO increased demand from the private sector, mitigated 14 of Trinidad Cement Limited, our domestic gray cement O UNITED STATES by lower infrastructure activity. For the year, the indus- volumes in the region declined by 1% during the year. O EUROPE trial-and-commercial sector was supported by con-O SOUTH, CENTRAL AMERICA struction of shopping malls, hotels, and warehouses, as AND THE CARIBBEAN 26 26 O ASIA, MIDDLE EAST well as some manufacturing facilities. Solid economic AND AFRICA indicators, including job creation and remittances, sustained the self-construction sector. In the formal residential sector, total investment for home acquisitions increased by 9%, and with the introduction of new higher-value-loan products, INFONAVIT mortgage investment recorded double-digit growth for the full year. United States US$13,672 Our U.S. operations’ net sales increased 3% on a like-MILLION IN NET SALES to-like basis year over year to US$3.5 billion for 2017. Operating EBITDA increased 9% on a like-to-like basis WITHIN OUR GLOBAL to US$604 million during the year. Our U.S. opera-OPERATIONS. tions’ domestic gray cement, ready-mix concrete, and aggregates volumes decreased by 6%, 2%, and 3%, re- C-17 HOUSE, VILLA DEL ROSARIO, COLOMBIA spectively, for 2017. Domestic gray cement volumes 35 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.3 _5ZWXZJ_RFWPJYX_YMFY_TKKJW_QTSL_YJWR_UWTÜªYFGNQNY^ Our Colombian operations’ domestic gray cement, 2017. Our cement volume growth for the full year ready-mix concrete, and aggregates volumes de- WJÜ«JHYJI_KF[TWFGQJ_HTSXYWZHYNTS_FHYN[NY^_KWTR_YMJ_WJX-creased by 6%, 13%, and 17%, respectively, for 2017. idential and industrial-and-commercial sectors. The During the year, cement consumption was affected WJXNIJSYNFQ_XJHYTW_GJSJÜªYJI_KWTR_KF[TWFGQJ_HWJINY_FSI_ by weak demand for industrial-and-commercial proj- income conditions, job creation, and pent-up housing ects, as well as for high- and middle-income housing demand, while the industrial-and-commercial sector developments. ¥FX_XZUUTWYJI_G^_TKÜªHJ__YTZWNXR__FSI_FLWNHZQYZWFQ_ projects. Europe In Germany, our operations’ domestic gray cement Our European operations’ net sales increased 5% year volumes increased by 15% during 2017. Our cement over year to US$3.5 billion, and operating EBITDA [TQZRJ_LWT¥YM_KTW_YMJ_KZQQ_^JFW_WJÜ«JHYJI_TZW_UFWYNHN-declined 8% to US$363 million in 2017. For the full pation in infrastructure projects and strong demand year, our domestic gray cement, ready-mix concrete, from the residential sector. The infrastructure sector and aggregates volumes increased by 8%, 4%, and GJSJÜªYJI_KWTR_NSHWJFXJI_HJSYWFQ_LT[JWSRJSY_XUJSI-3%, respectively. NSL__¥MNQJ_YMJ_WJXNIJSYNFQ_XJHYTW_HTSYNSZJI_YT_GJSJÜªY_ In the United Kingdom, our operations’ domestic gray from low unemployment and mortgage rates, rising LA CROIX DU SUD CLINIC CONSTRUCTION PROJECT cement, ready-mix concrete, and aggregates volumes purchasing power, and ongoing immigration. IN TOULOUSE, FRANCE declined by 6%, 2%, and 4%, respectively, during the In Poland, our operations’ domestic gray cement ^JFW__4ZW_HJRJSY_[TQZRJX_KTW_YMJ_KZQQ_^JFW_WJÜ«JHYJI_F_ volumes increased by 5% for 2017. The residential high base of comparison due to non-recurring indus- XJHYTW_GJSJÜªYJI_KWTR_KF[TWFGQJ_YWJSIX__XZUUTWYJI_G^_ YW^_XFQJX_NS_YMJ_ÜªWXY_MFQK_TK_______FX_¥JQQ_FX_XTKYJSNSL_ low interest rates, low unemployment, and govern-market conditions resulting from political uncertainty. ment sponsored programs, while infrastructure sector The residential sector was the main driver of demand activity accelerated during the fourth quarter of the for the year. year. In Spain, our operations’ domestic gray cement, MOST OF OUR In France, our operations’ domestic ready-mix con- OPERATIONS IN EUROPE ready-mix concrete, and aggregates volumes in-crete and aggregates volumes increased by 7% and creased by 28%, 4%, and 25%, respectively, during REPORTED CEMENT AND 10%, respectively, during 2017. Our volume growth KTW_YMJ_KZQQ_^JFW_WJÜ«JHYJI_HTSYNSZJI_HTSXYWZHYNTS_ READY-MIX VOLUME activity in the residential sector, as well as “Grand GROWTH. 5FWNXÑ§_WJQFYJI_UWTOJHYX__9MJ_WJXNIJSYNFQ_XJHYTW_¥FX_ supported by low interest rates and government initiatives, including a buy-to-let program and zero-rate QTFSX_KTW_ÜªWXY_YNRJ_GZ^JWX_ Asia, Middle East and Africa In the region, our operations’ net sales declined 9% year over year to US$1.4 billion, while operating EBIT-DA decreased 41% to US$223 million during 2017. As a whole, our regional operations’ domestic gray ce- CEMENT PLANT IN ment volumes decreased by 2%, while our ready-mix POLAND concrete and aggregates volumes increased by 7% SECOND LOCK CHAMBER OF THE MOSELLE RIVER IN TRIER, and 4%, respectively, for the year. GERMANY 36 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.3 _5ZWXZJ_RFWPJYX_YMFY_TKKJW_QTSL_YJWR_UWTÜªYFGNQNY^ In the Philippines, our operations’ domestic gray Trading HJRJSY_[TQZRJX_WJRFNSJI_Ü«FY_KTW_______(JRJSY_ Our global trading network is one of the largest in the demand improved during the second half of the year, industry. Our trading operations help us to optimize supported by higher infrastructure activity. our worldwide production capacity, deliver excess cement to where it is most needed, and explore new In Egypt, our operations’ domestic gray cement markets without the necessity of making immediate volumes decreased by 6% for the year. The volume capital investments. Our worldwide network of strate- IJHQNSJ_WJÜ«JHYJI_WJIZHJI_HTSXZRJW_UZWHMFXNSL_UT¥-gically located marine terminals and broad third-party er resulting from the currency devaluation in Novem- HZXYTRJW_GFXJ_FQXT_UWT[NIJ_ZX_¥NYM_YMJ_FIIJI_Ü«J]NGNQ-GJW_______FX_¥JQQ_FX_NSHWJFXJI_NSÜ«FYNTS__,T[JWSRJSY_ ity to place contracted supplies in an optimal way. projects related to the Suez Canal tunnels and port platforms in the city of Port Said, as well as the new In 2017, we enjoyed trading relationships in 105 administrative capital, continued during the year. countries. Our traded volume totaled more than 11.3 million tons of cementitious and non-cementitious materials, including approximately 9.5 million tons of cement and clinker. We also maintained a sizeable trading position of 1.1 million tons of granulated blast furnace slag, a non-clinker cementitious material, and 0.7 million tons of other products. Freight rates, which have been extremely volatile in recent years, account for a large share of our total import supply cost. However, we have obtained XNLSNÜªHFSY_XF[NSLX_G^_YNRJQ^_HTSYWFHYNSL_RFWNYNRJ_ transportation and by using our own and chartered Ü«JJYXÑŸ¥MNHM_YWFSXUTWYJI_FUUWT]NRFYJQ^___ _TK_TZW_ traded cement and clinker volume in 2017. In addition, we provide freight service to third parties ¥MJS_¥J_MF[J_XUFWJ_Ü«JJY_HFUFHNY^__9MNX_STY_TSQ^_UWT- 11.3 MILLION TONS vides us with valuable shipping market information, OF CEMENTITIOUS AND GZY_FQXT_LJSJWFYJX_FIINYNTSFQ_UWTÜªY_KTW_TZW_TUJWFYNTSX__ NON-CEMENTITUOS MATERIALS WAS OUR TRADING VOLUME IN 2017. ASSIUT BARRAGE AND HYDRO-POWER PLANT, EGYPT 37 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-40, GRI 102-43, GRI 102-46 2.4 Sustainability is fully embedded in our business .S_F_¥TWQI_TK_ÜªSNYJ_WJXTZWHJX__¥J_HTSYNSZFQQ^_NS[JXY_FSI_NSST[FYJ_YT_GJHTRJ_FS_ environmentally friendly, sustainable industry leader. As a global company, we develop CEMEX’s Board-level Sustainability Committee meets products and building solutions that foster more sustainable construction practices, quarterly to assess and guide our company’s sustain- ability efforts. It is responsible for: while empowering and contributing to the development of our local communities. OUR SUSTAINABILITY APPROACH to the Vice President of Sustainability and Operations VERIFYING Development, who is a member of our Executive For CEMEX, sustainability starts with our Board of Di- that sustainable development is embedded Committee. To ensure sustainability is embedded into rectors and is then rolled out across our entire orga- in CEMEX’s short- and long-term strategy our entire business strategy, we have coordinators nization. Our Sustainability Committee is comprised representing each geographical region where CEMEX of four board members reporting directly to the Board operates. In parallel, our Global Sustainability Func-of Directors, along with the Audit and the Corporate ASSISTING tional Network works to implement our core sus-Practices & Finance Committees. It is supported by tainability initiatives across all of our countries and the Board in its responsibilities to share-our Corporate Sustainability function, which reports business lines. holders relating to the policies and practices that support our company’s sustainable growth DIRECTORS BOARD OF AUDIT COMMITTEE ENDORSING SUSTAINABILITY COMMITTEE CEMEX’s Sustainability Model, priorities, CORPORATE PRACTICES AND FINANCE CEO AND and core KPIs COMMITTEE COMMITTEE EXECUTIVE ASSESING SUSTAINABILITY REGIONAL CORPORATE the effectiveness of our sustainability COORDINATOR SUSTAINABILITY initiatives and their implementation EXTERNAL ADVISORY PANEL progress SUSTAINABILITY COUNTRY TEAMS PROVIDING GLOBAL SUSTAINABILITY FUNCTIONAL NETWORK guidance to our CEO and Executive i_Planning i_Product Development i_Procurement i_Public Affairs Committee on key strategic sustainabili-i_Controllership i_Health and Safety i_Commercial i_Social Responsibility ty decisions. i_Enterprise Risk Management i_Operations and Technology i_Human Resources i_Communications i_Legal i_Investor Relations i_Energy i_Finance 38 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-40, GRI 102-43, GRI 102-46, GRI 102-47, GRI 102-49 2.4 Sustainability is fully embedded in our business Some discussion topics from the Sustainability Com- 1 Customer Experience and Satisfaction mittee’s meetings during the year include: MATERIALITY MATRIX 2 Health and Safety i Health and safety management 3 Product Quality and Innovation i Structure and content of CEMEX Integrated Report 4 Business Ethics and Transparency i Sustainability KPI targets and global progress 5 Employee Engagement and Development CO management strategy and mitigation efforts 6 Growth in Existing Markets and Countries i 2 PERCEPTION 1 7 Return on Capital Employed i Other air emissions monitoring and control i Talent management, employee engagement, and 3 8 Environmental and Air Emissions Management diversity programs 4 2 9 Transport and Logistics Optimization i Suppliers Sustainability Program STAKEHOLDERS’ 9 10 Local Community Development i Sustainability-related risks agenda 11 Products and Solutions for Sustainable CEMEX’s high-impact social strategy 17 Construction i 11 8 5 16 12 CO2 Management Strategy i Human rights compliance and risk mitigation plan. 10 HIGHEST MATERIALITY 13 Direct Economic Impact on Stakeholders 19 13 CEMEX sustainability material issues 6 14 Energy Sourcing, Efficiency and Cost 15 12 7 Understanding our key priorities enables us to align 21 14 15 Materials Recycling and Circular Economy our time, resources, and investments accordingly. 23 18 HIGHER MATERIALITY 16 Biodiversity Preservation That’s why we recently updated our Materiality Matrix. 22 The process incorporated stakeholder inputs, compa- 20 17 Supplier Management ny insights, sector initiatives, peer reviews, and global HIGH MATERIALITY 18 Public Affairs and Stakeholder Engagement YWJSIX__9MNX_JSXZWJI_¥J_NIJSYNÜªJI_YMJ_RTXY_NRUTWYFSY_ issues for CEMEX and our stakeholders, making it IMPACT ON CEMEX 19 Water Management JFXNJW_YT_IJÜªSJ_WNXPX__TUUTWYZSNYNJX__FSI_05.X_FSI_YT_ 20 Corporate Governance report and set targets. This analysis helps us to minimize any gaps in our business’s strategy by demon- 21 Waste Management O_ECONOMIC XYWFYNSL_YMJ_XNLSNÜªHFSHJ_TK_JHTSTRNH__JS[NWTSRJSYFQ__ 22 Risk Management O_SOCIAL social, and governance issues. 23 Human Rights O_ENVIRONMENTAL Conducted in 2016, our last materiality assessment O_GOVERNANCE was developed according to the methodology suggested by the Global Reporting Initiative (GRI). For details on the process, please visit our website >. MATERIALITY ASSESSMENT STAGES 1 234 .IJSYNÜªHFYNTS_ )JÜªSNYNTS_FSI_ Prioritization Results and of relevant participation of material materiality aspects for of target issues matrix survey audience 39 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-40, GRI 102-43, GRI 102-46, GRI 102-47, GRI 102-49 2.4 Sustainability is fully embedded in our business Additionally, to clearly show the strong alignment between CEMEX material issues and those UN Sustainable Development Goals (SDGs) to which we contribute the most, we have mapped how they connect. CEMEX recognizes that helping to achieve the SDGs is not only a responsible thing to do, but also strategically relevant from a risk and growth standpoint. The SDGs foster new business opportunities and build markets and relationships, while improving our environment and society’s quality life. SUSTAINABLE DEVELOPMENT GOALS 1 34589 11 12 13 15 17 1. Customer Experience and Satisfaction 2. Health and Safety 3. Product Quality and Innovation 4. Business Ethics and Transparency 5. Employee Engagement and Development 6. Growth in Existing Markets and Countries ANALYSIS 7. Return on Capital Employed 8. Environmental and Air Emissions Management 9. Transport and Logistics Optimization MATERIALITY 10. Local Community Development 11. Products and Solutions for Sustainable Construction 12. CO2 Management Strategy 13. Direct Economic Impact on Stakeholders CEMEX THE SDGs FOSTER 14. Energy Sourcing, Efficiency and Cost NEW BUSINESS 15. Materials Recycling and Circular Economy OPPORTUNITIES AND 16. Biodiversity Preservation BUILD MARKETS AND 17. Supplier Management RELATIONSHIPS. 18. Public Affairs and Stakeholder Engagement 19. Water Management 20. Corporate Governance 21. Waste Management 22. Risk Management 23. Human Rights ___________O_EconomicO SocialO EnvironmentalO Governance 40 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-46, GRI 102-47 2.4 Sustainability is fully embedded in our business PROGRESS AGAINST OUR TARGETS ECONOMIC OBJECTIVE: Provide Resilient Infrastructure and Anchored by four main objectives under the econom- CHALLENGE *SJWL^_*KÜªHNJSY_‘ZNQINSL_8TQZYNTSX ic, environmental, social, and governance pillars, our 2020 ANNUAL 2017 TARGET TARGET sustainability model ensures it is embedded into our short- and long-term business strategy, creating value Annual ready-mix sales derived from products with outstanding sustainable attributes (%) 31.8 Õ„__ for all of our stakeholders. To keep our sustainability ENVIRONMENTAL OBJECTIVE: Enable a Low-Carbon and objectives on track, we have set targets for our core CHALLENGE 7JXTZWHJ_*KÜªHNJSY_.SIZXYW^ KPIs that are strategically aligned with our sustain- 2020 ANNUAL ability model and linked to the material issues identi- 2017 TARGET TARGET ÜªJI_G^_TZW_HTRUFS^_FSI_TZW_XYFPJMTQIJWX_ Alternative fuels rate (%) 26.2 35 Reduction in CO2 emissions per ton of cementitious product from 1990 baseline (%) 20.7 25 Clinker produced with continuous monitoring of major emissions: dust, NOX, SOX (%) 92 100 Annual reduction in dust emissions per ton of clinker from 2005 baseline (%) 84 70 [1] Annual reduction in NOX emissions per ton of clinker from 2005 baseline (%) 43 40 [1] Annual reduction in SOX emissions per ton of clinker from 2005 baseline (%) 67 55 [1] Active quarries with high biodiversity where BAPs are actively implemented (%) 69 100 SOCIAL OBJECTIVE: Implement a High-Impact Social CHALLENGE Strategy to Empower Communities 2020 ANNUAL 2017 TARGET TARGET Community partners [i.e., individuals positively impacted by our social initiatives] (million) 14.1 Õ„__ GOVERNANCE OBJECTIVE: Embed Our Core CHALLENGE Values into Every Action CEMENT PLANT IN 2020 ANNUAL Our Responsible Business strategy contributes 2017 CROATIA TARGET TARGET to our vision of building a better future by under- Total fatalities (employees, contractors and third parties) 20 0 standing our stakeholders’ expectations, fully Employee Lost Time Injury Frequency Rate [LTI FR] (per million hours worked) 0.5 0.3 managing our company’s impacts, and creating shared value to improve quality of life and well- Countries that conduct regular customer satisfaction surveys (%) 100 Õ„__ being. As part of the strengthening of our global Global procurement spend assessed under the Supplier Sustainability Program (%) 25 Õ„__ strategy, as of 2018, we will monitor and report Employees that perceive they are enabled to perform their job effectively [PEI—Performance key additional indicators, including: 77 [2] 83 Enablement Index] (%) i Active cement sites with community engage- Employees that are engaged with the company [EEI—Employee Engagement Index] (%) 76 [2] 80 ment plans (former calculation methodology Executives and employees actively aware of our Code of Ethics (%) 77 [3] Õ„__ has been enhanced) Target countries that participated in the Global Compliance Program covering antitrust, anti-bribery and insider trading (%) 100 Õ„__ i Local stakeholders management Community risks mapping and management Ethics and compliance cases reported during the year that were investigated and closed (%) 73 Õ„__ i [1] Targets for annual performance updated in 2017 to enhance emissions’ control and mitigation [2] Results from bi-annual survey. Last one applied in 2017 [3] Results from survey performed every 3 years. Last one executed in 2016 41 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business UNDERSTANDING THE NET VALUE WE CREATE CEMEX 2017 NET VALUE TO SOCIETY STATEMENT O NET VALUEO ECONOMICO SOCIALO ENVIRONMENTAL FOR SOCIETY (in millions of US dollars) &X_F_HTRUFS^__¥J_FWJ_F¥FWJ_YMFY_TZW_ÜªSFSHNFQ_XYFYJ- (1,388) RJSYX_TSQ^_UFWYQ^_WJÜ«JHY_MT¥_TZW_FHYN[NYNJX_FKKJHY_XTHN-ety; there are both positive and negative impacts that 167 (20) are not valued in the capital markets and, therefore, do 821 7 STY_FUUJFW_NS_TZW_YWFINYNTSFQ_UWTÜªY_FSI_QTXX_HFQHZQFYNTS__ In the past, CEMEX already developed its own model to 249 quantify these so-called externalities in monetary terms 2,092 (68) (66) 139 3,392 and implemented it successfully as a key tool for sus- 18 tainability management in its UK operations. In 2017, we validated our methodology to estimate the Net Value to Society with the corresponding True Value methodology from KPMG, and we started to apply it at a global level. This exercise helps us to enhance our understanding 1,443 of the materiality, relevance, and interdependency of our company’s positive and negative impacts. We believe that it is an essential step to informed management and decision-making in order to improve the value that CEMEX contributes to our company, our society, and our planet. Furthermore, it allows us to manage risks, be more transparent, and achieve our Retained and dividends Development Community OccupationalH&S GHG emissions consumption Biodiversity sustainability ambitions. GJSJÜªY Taxes Talent Water Salaries Interests Investment emissions Net waste balance Net value tosociety CEMEX Net Value to Society Methodology FSI_GJSJÜªYX Air The starting point for our analysis is the retained GJSJÜªY_ *’.9)&_RNSZX_YF]JX__NSYJWJXYX_FSI_IN[NIJSIX _ i.e., the part of our value creation that remains within our company). To this, several economic, social, and environmental impacts are added or subtracted to determine the total value that our company creates. THE STARTING POINT THE NET VALUE = EBITDA minus taxes, CREATED BY CEMEX 7JYFNSJI_‘JSJÜªYX interest and dividends WAS 2.35 HIGHER THAN THE RETAINED BENEFIT. 42 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Results of Externalities’ Analysis Although many of the calculations must be based on climate change is correctly one of our key sustain- The results of the calculations for 2017 are shown in JXYNRFYJX_TK_GJSJÜªYX_FSI_SJLFYN[J_NRUFHYX__YMJ_WJXZQYX_ FGNQNY^_UWNTWNYNJX _YMJ^_WJÜ«JHY_YMJ_GNTIN[JWXNY^_[FQZJ_YMFY_ the form of a bridge graph that starts from our tradi- allow us to draw some important and robust conclu- CEMEX’s El Carmen nature reserve provides every year; tional retained earnings on the left and adds all other sions. First of all, they demonstrate that, in 2017, the and they demonstrate the enormous value that the UTXNYN[J_FSI_SJLFYN[J_NRUFHYX_YMFY_¥J_NIJSYNÜªJI_NS_ net value that CEMEX created for society was around conversion of waste to fuels and raw materials creates the economic, social, and environmental dimensions, _____YNRJX_MNLMJW_YMFS_TZW_WJYFNSJI_GJSJÜªY__9MJ_WJ- for society. ending with the net value that CEMEX created in 2017 sults also underscore the relevance of our inclusive for society as a whole. GZXNSJXXJX_XZHM_FX_5FYWNRTSNT_-T^ _YMJ^_HTSÜªWR_YMFY_ ECONOMIC IMPACT SOCIAL IMPACT ENVIRONMENTAL IMPACT 9MJXJ_FWJ_XMT¥S_NS_TZW_STWRFQ_UWTÜªY_FSI_QTXX_XYFYJ- 9MJXJ_XTHNFQ_NRUFHYX_FWJ_YMJ_RTXY_INKÜªHZQY_YT_VZFSYNK^__ These cover those environmental impacts that are ment. However, their importance in the context of However, our methodology gives a reasonable and considered most relevant to our company. total value creation is not directly visible. conservative estimate. 8FQFWNJX_FSI_GJSJÜªYX___Value that our company cre- Talent development—Value through our training Impact from the emission of green ates for our employees. programs and other educational initiatives. This only house gases (scopes 1, 2 and 3). includes the value created outside our company (em-Taxes—Value through our contribution to govern- Air emissions—Impact from the emission of other ployee turnover). X X ment funding. This item only contains income tax as potentially noxious substances (SO , NO , particles). XMT¥S_NS_TZW_UWTÜªY_FSI_QTXX_XYFYJRJSY_ Social initiatives—Value for our stakeholders through Water consumption—Impact from the use of a our social initiatives and inclusive businesses. Interest and dividends—Value for shareholders and scarce resource. creditors. Health and safety—Impact on employees and their Biodiversity—Impact from the disturbance of land families from accidents (injuries and fatalities). by our mining operations. This item also includes the value created by our conservation project in El Car men on the US-Mexican border. Net waste balance—Value derived from coprocess ing waste, minus the impact of waste generated in our operations. .S_______YMJ_INWJHY_JHTSTRNH_GJSJÜªY_HWJFYJI_G^_TZW_ With our conservative approach and assumptions, the Our environmental impacts in 2017 amounted to company amounted to US$3,161 million. Around social value created amounts to US$158 million. The a negative US$1,365 million, with climate change Y¥T_YMNWIX_TK_YMNX_FWJ_XFQFWNJX_FSI_TYMJW_GJSJÜªYX_KTW_ majority of this is related to social initiatives, which in- being the predominant category. However, we are our employees. cludes donations, community investments, and, most proud to see that, in biodiversity (mainly thanks to our of all, the externalities that derive from our inclusive conservation efforts in the El Carmen project) and businesses. waste (as our plants are waste sinks), we are able to actually show a positive net impact. <J_FWJ_HTSÜªIJSY_YMFY_KZYZWJ_RJYMTITQTLNHFQ_IJ[JQTU-ments will allow us to reduce the uncertainty which is particularly large for monetization of social impacts. 43 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business IMPROVING QUALITY OF LIFE AND WELL-BEING Responsible business strategy As a company that makes a progressive impact through its innovative services and solutions, our ability to operate as a responsible business is fundamental to our IMPROVING QUALITY OF LIFE AND WELL-BEING business model. This enables us to understand stakeholders’ material issues, map impacts, and identify risks and opportunities in order to create shared value for our company and society. Our Responsible Business strategy directly contrib- DEVELOPMENT OFEDUCATION AND SUSTAINABLE ANDRESILIENT ENVIRONMENTAL SOCIAL AND CULTURE OF utes to our vision of building a better future and aims CAPABILITIES INFRASTRUCTURE AND ENTREPRENEURSHIP PROTECTION & HEALTHENVIRONMENT to understand our stakeholders’ expectations by fully MOBILITY managing our company’s impacts and creating value and well-being through three strategic priorities: 1 Although our social projects focus on our core busi-Co-design and implement socially impactful ness expertise to create value and well-being, we have inclusive business models with customers and evidence that we are also causing positive impacts entrepreneurs on other global challenges. Thus, consistent with our commitment to the United Nations Sustainable Devel-2 opment goals, we measure our progress and contribu-Implement sustainable community engagement tions to some of these goals. plans to improve quality of life Our evolving strategy continues our human centered approach, supporting communities via infrastructure, 3 education and knowledge transfer, strategic donations, Design and co-create responsible cross- and human resources. We also create shared value by functional practices within our operations and becoming partners in development to address local CEMEX’S RESPONSIBLE our value chain. needs through social and inclusive business models, JSYWJUWJSJZWXMNU__FSI_XJQK_LWT¥YMÑŸ¥MNHM_¥J_FHMNJ[J_ BUSINESS STRATEGY by being present in the community, eliminating barri- CONTRIBUTES TO SOLVING THE To achieve our three priorities, we need to continue im- ers, and collaborating with them in multi-stakeholder proving the quality of life and well-being of our employ- CHALLENGES OF SUSTAINABLE alliances. ENVIRONMENTAL ees and our communities, considering economic, social, RESTORATION DEVELOPMENT AND ALIGNS and environmental criteria and focusing on: Throughout our journey, we continue facing challeng- PROGRAM PARTICIPANTS IN ITS SUSTAINABILITY AGENDA es, mitigating impacts, and anticipating risks related to SCHOOL VISIT IN i Education and development capabilities TZW_NSIZXYW^__XZHM_FX_UTQQZYNTS__YWFKÜªH__FSI_GNTIN[JWXNY^_ MEXICO WITH THE UN’S SUSTAINABLE i Sustainable and resilient infrastructure and mobility loss. Thus, our responsible business strategy seeks DEVELOPMENT GOALS. to implement initiatives that respond to each one of i Social and environmental entrepreneurship them. Some examples include our quarry rehabilitation i Culture of environment protection and health initiatives, inclusive business models, and road safety awareness campaigns, among others. 44 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-40, GRI 102-42, GRI 102-43, GRI 102-44 2.4 Sustainability is fully embedded in our business Our Social and Environmental Model (SEM) The result of this virtuous cycle is a better Social During 2017, all our cement plants worked together as Return on Investment (SROI). Through this model, we One CEMEX to shape our integrated Social and Envi- continue to learn and leverage our social intelligence to ronmental Model that supports our goal to improve build high-trust relationships with our key stakeholders quality of life and well-being and to continue co-creat- in order to create value and strengthen our license to ing initiatives that will contribute to the sustainability of operate. local communities and resilient cities. CEMEX’s SEM offers a framework to strengthen our re- Stakeholder dialogues, Corporate Social sponsible business strategy by creating a deep under- Responsibility (CSR) multi-stakeholder committees, standing and internalization of stakeholder conditions, and volunteering as One CEMEX needs, and concerns to make strategic decisions that With the goal of fostering empathy and engaging with will address their main expectations. our neighboring communities, we encourage formal stakeholder dialogues, CSR multi-stakeholder committees, and volunteering efforts. Ongoing dialogues are The SEM provides the tools to enable our operations to key to revise expectations, review progress, and contin-build constructive long-term relations with our stake- ue monitoring our achievement of agreed plans. holders. This way, we not only reduce our company’s Stakeholder dialogues risk exposure and tap into opportunities, but also Based on experience, regular and formal dialogues together create sustainable development. with our stakeholders have been key for building mu-9MWTZLM_YMJ_NRUQJRJSYFYNTS_TK_YMJ_8*2ÑŸHTRUWNXJI_ tual trust between our company and its surroundings of our Integrated Social and Environmental Manage- in Poland. According to the AA1000SES standard, this ment Platform and CEMEX’s Shared Value Model for dialogue is aimed at getting to know and understand HTRRZSNY^_IJ[JQTURJSYÑŸ¥J_FHMNJ[JI_XZGXYFSYNFQ_ our stakeholders’ needs and concerns, which enables CEMEX SHARED VALUE MODEL FOR COMMUNITY DEVELOPMENT steps towards building a better future and improving us to properly address them. This process has proven the well-being and quality of life of the communities in a helpful platform for building joint initiatives and for which we operate. building our business in a more sustainable way. 1 Sustainability Committees Dialogue with In 2017, our SEM was implemented in 21 of the Internal & External In Spain, our cement plants formed Sustainability 8 Stakeholders 2 countries in which we have cement operations. A big (Priority Issues) Committees to build positive, sustainable relationships Measure and Map step in the right direction, the collaboration of all of Communicate Impacts with our neighboring communities. The Committees our cement plants proved that working together as are composed of our plant’s director and local envi-One CEMEX we are stronger. Thanks to the collective WTSRJSYFQ_TKÜªHNFQX__YWFIJ_ZSNTS_WJUWJXJSYFYN[JX__QTHFQ_ 7 3 effort and passion of each of the 1,000 participants Shared mayors of nearby towns, neighborhood representa-Mitigate a risk Identify Risks from more than 15 different areas that supported the or tap into Value and tives, and other local institutions. opportunities Creation Opportunities process in the 300 communities visited, today we are better prepared to create sustainable value for all of 6 4 TZW_XYFPJMTQIJWX__9TLJYMJW__¥J_NIJSYNÜªJI_RTWJ_YMFS_ Create a positive Decide what 500 opportunities that will be analyzed for implemen- impact on issues to stakeholders 5 address tation in 2018. We will also extend the model to our Co-design ready-mix concrete and aggregates businesses. Community Engagement Plans Copyright© CEMEX 45 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Global volunteering experiences 9MWTZLM_TZW_XYWFYJLNH_LQTGFQ_[TQZSYJJW_UWTLWFRÑŸ-FSIX_4SÑŸ¥J_JSHTZW- CEMEX IN GERMANY STRIVES TO FOSTER age our employees to participate as facilitators in local efforts. We also SAFER STREETS hold periodic meetings with neighbors, schools, NGOs, governments, and The Change your View project fosters pedestrian, cyclist, and driver safety. We employees to listen to them and address common topics. XJJ_FSà£¢ZWLJSY_SJJI_YTà£¢YFPJà£¢FHYNTS_YT_UWJ[JSY_NSHNIJSYX_G^_J]UFSINSL_JIZHFYNTSFQ_ work for all parties involved, giving the opportunity to get to know the other’s 103 9,050 perspective and to better understand their life environment. VOLUNTEERING EMPLOYEES Among the elements of this initiative are: PROGRAMS PARTICIPATING i Change Your View bicycle tours in home market cities i Blind spot training for kids on local CEMEX sites i Bike courses for training as an attraction during CEMEX events. 284,053 35,810 PEOPLE POSITIVELY EMPLOYEE HOURS IMPACTED BY DEDICATED TO SOCIAL COOPERATION BETWEEN VOLUNTEERING VOLUNTEERING CEMEX IN THE USA COLLABORATES WITH SUMTER CEMEX AND ONE OF OUR PROGRAMS COUNTY SCHOOL DISTRICT CUSTOMERS IN POLAND Each year, our employees work with Sumter educators Consistent with our commitment to achieve Through our Home Sweet Home initiative to enhance the Science, Technology, Engineering, a superior customer experience, we actively in Barbados, we help to rebuild or refurbish and Math (STEM) curriculum at various grade levels encourage our employees and customers a home for a family in need. This is made to engage in CEMEX’s social activities. In ¥NYM_FLJ_FUUWTUWNFYJ_QJFWSNSL_FHYN[NYNJXÑŸF¥FWINSL_ possible through the support and collab- two scholarships to high school seniors based on an 2017, we not only partnered with Budimex, a oration of local partners, hardware stores, application process and essay. CEMEX and the District construction group, on major infrastructure media, and construction companies. further host an annual Earth Day celebration at an projects, but also on two social initiatives. environmental education center created by CEMEX, Actions: which celebrated its 10th year in 2017. Refurbish the canteen and dayroom of i Thanks to our Manos a la Obra volunteer- the “Emaus” Women’s Homeless Shelter “CEMEX has been one of the Sumter School District’s ing program in Mexico, employees’ actions in Warsaw very best business partners for well over a decade. contribute to issues such as education, Thousands of students, parents, and community i Painted the fence around the shelter and the environment, and community development. Among their activities, they planted RJRGJWX_MF[J_GJSJÜªYJI_KWTR_YMNX_UFWYSJWXMNU_FX_FS_ planted tress in the garden integral component of our STEM initiative. CEMEX has Donated cleaning products for the shelter more than 3,767 trees. i demonstrated that it is possible to operate a modern i Planted trees in the neighborhood. day mine and still be ecologically friendly. Our school district and community are better because of this In the UK, our Lend-a-Hand volunteer partnership, the service and jobs they provide, and program enables employees to take their extraordinary efforts at safety and environmental one day’s paid leave to help neighboring UWTYJHYNTS_Ñ§_ communities. They help local charities, schools, and institutions to improve peo- Richard A. Shirley, Superintendent, Sumter County ple’s quality of life. School District, Florida, U.S.A. 46 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business 1. EDUCATION AND DEVELOPING CAPABILITIES FOR EMPLOYABILITY Education is key to facing current and future challenges. ships, NEO had positvely impacted more than 38,500 With this in mind, we seek to develop talent to foster em- young people by year-end 2017, including over 33,500 UQT^FGNQNY^ÑŸXYWJSLYMJSNSL_GTYM_YJHMSNHFQ_FSI_XTKY_XPNQQXÑŸ graduates of the training programs. and, thus, ensure the sustainability of our talent and that of our communities. Consequently, our communities Developing physical and technical skills MF[J_GJHTRJ_RTWJ_XJQK_XZKÜªHNJSY_FSI_JRUT¥JWJI__ We look to encourage well-being throughout our neigh- <J_XZUUTWY_INKKJWJSY_JIZHFYNTS_NSNYNFYN[JXÑŸKWTR_KTWRFQ_ boring communities. Among our initiatives, in 2016, we education scholarships to construction skills for em- launched CEMEX Egypt Football Academy in Assiut, a UQT^RJSYÑŸFSI_KTXYJW_JIZHFYNTS_¥NYMNS_TZW_HTRRZSN- governorate in Upper Egypt, one of the country’s most ties to shift and even change their mindset on cultural vulnerable regions. Recognizing that football is Egypt’s topics such as urban mobility. We are also committed most popular sport, this program has rolled out four to the well-being of our neighboring communities’ by Football Academies for children and youth between providing health campaigns, whenever access to such the ages of eight and 14 in Assuit City, as well as the services is unavailable, and promoting healthy life- villages of El Badari, El Zawia, and Abnob. The acade-styles for youth through sports programs. mies offer selected youth an extensive training pro- LWFR_GFXJI_TS_RTIJWS_XHNJSYNÜªH_RJYMTIX_YT_IJ[JQTU_ +38,500 Community Centers their talents and to achieve the highest levels of phys- YOUNG PEOPLE &_XNLSNÜªHFSY_UFWY_TK_TZW_JKKTWYX_NX_HTSHJSYWFYJI_TS_(TR- ical and technical skills. Designed to create a future POSITVELY IMPACTED munity Centers, which offer a wide variety of courses for generation of healthy athletes, we are considering ex-developing skills and capabilities. Their social integra- tending this program’s outreach to other governorates BY NEW EMPLOYMENT tion programs, such as football academies and integral in the region to foster a sports culture in Upper Egypt. OPPORTUNITIES (NEO) BY development courses, further enable the empowerment Strengthening our value chain YEAR-END 2017. of different groups, especially youth and women. In 2017, we strengthened our alliance with the Social New Employment Opportunities Union of Business Leaders of Mexico (USDE). This New Employment Opportunities (NEO) is a alliance seeks to develop productive enterprises that multi-stakeholder alliance led by the Inter-American generate economic value with a sharp focus on social )J[JQTURJSY_‘FSP_ .)’_ÑŸNS[TQ[NSL_LT[JWSRJSY__HN[NQ_ responsibility. During the year, four key clients partici- CEMEX PHILIPPINES EMPOWERS XTHNJY^__FHFIJRNF__FSI_YMJ_UWN[FYJ_XJHYTWÑŸTKKJWNSL_ pated in the USDE course, showing important advanc- JX_NS_YMJ_¥F^_NS_¥MNHM_YMJ^_TUJWFYJÑŸYMZX_XYWJSLYMJS BRIGHTER FUTURES employment and training opportunities to close the— Through its Build the Nation Together initiative, gap between youth skills and employer demands. As ing our value chain. CEMEX Philippines is dedicated to uplifting lives a NEO member, we work to generate and strengthen and communities through sustainable programs. employment opportunities for young people between Under the Building Education cluster, we imple-the ages of 18 and 29 through scholarships, guid- ment holistic, multi-sectoral solutions to foster ance, and employment training. Among our initiatives, education for children at the base of the econom-we reinforce the quality of upper secondary technical ic pyramid. Among other initiatives, schools such education programs, including comprehensive cours- as Uling Naga Elementary School in the moun-es and workshops in soft skills such as resilience, tainous province of Cebu receive backpacks with teamwork, and communication. We also provide guid- supplies. ance and employment services to graduates of the programs. In Mexico, together with our local partner- 47 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business 2. SUSTAINABLE & RESILIENT PATRIMONIO HOY tackles the lack of affordable CONSTRUYO CONTIGO_NX_F_Ü«J]NGQJ_GZXNSJXX_RTIJQ_YMFY_GWNSLX_TZW_GZNQINSL_ INFRASTRUCTURE AND MOBILITY housing in low-income communities, enabling products and solutions to low-income families who live in sub-standard housing <NYM_YMJ_ÜªWR_TGOJHYN[J_TK_HTSYWNGZYNSL_YT_YMJ_RNYN- those with low startup capital and income to afford and require a partial subsidy and/ or micro-loan in order to make home improve-gation of poverty, we have developed self-sustain- high-quality materials and technical assistance. Par- ments or build new homes. It reduces the construction time to build a 44 m2 house ing business models in the construction industry. ticipants gain access to CEMEX network of contrac- from 15 years to three to six months, and develops skills that enable homeowners Through these businesses, our communities and tors, support with land ownership, a microcredit loan to upgrade their homes. Through partnerships with governments, our Centers for local authorities are brought together to tackle critical ¥NYM_F_HZXYTRN_JI_ÜªSFSHNFQ_UQFS__FSI_WJIZHJ_YMJ_YNRJ_ Self-Employment enables them to receive technical assistance and training regard-social issues such as credit, housing, employment, and cost of building a home by 30%. The program is ing the production of building materials, including concrete blocks that they can use and basic services. currently present in Mexico, Costa Rica, Colombia, the to expand their homes. This program promotes job creation and self-employment. Dominican Republic, and Nicaragua. Its ultimate goal Growing platform is to foster home safety and quality, while positively 184 CENTERS FOR SELF-EMPLOYMENT ACROSS LATIN AMERICA Growing platform is comprised of programs with impacting partners’ health, wealth, and education. social and inclusive business models across Lat- YO CONSTRUYO is a commercial and capability-building strategy that increases in America: Patrimonio Hoy, Construyo Contigo, demand for our products by developing potential construction workers and ma- ConstruApoyo, Yo Construyo, and Ecological Cook Stoves. Growing addresses the main problems +2.8 MILLION sons’ technical and entrepreneurial skills to foster housing upgrades and con-inherent to poverty and inequality at the base of the PEOPLE POSITIVELY IMPACTED struction. It promotes high-quality and cost-effective building, as well as the use economic pyramid, such as housing, land ownership, of sustainable criteria, including energy saving and affordable green technologies. FHHJXX_YT_GFXNH_XJW[NHJX__ZSJRUQT^RJSY__FSI_ÜªSFS- Participants become new customers as they improve their homes and provide cial inclusion through micro credits. The social capital services to others. +234,000 of communities is also strengthened through collaboration with local authorities, academic institutions, HOMES BUILT THROUGH PATRIMONIO HOY CONSTRUAPOYO and non-governmental organizations (NGOs). NX_FS_NSHQZXN[J_GZXNSJXX_YMFY_JSFGQJX_RNHWT_ÜªSFSHJ_JSYNYNJX_FSI_ INXYWNGZYTWX_KWTR_TZW_[FQZJ_HMFNS_YT_TKKJW_ÜªSFSHNFQ_XTQZYNTSX_YT_).>_ IT_NY_^TZWXJQK_ 14,000 homeowners, so they can acquire construction materials to improve their homes. (TSXYWZ&UT^T_ZYNQN_JX_Ü«J]NGQJ_YJHMSTQTL^_YMFY_FQQT¥X_TYMJW_JSYNYNJX__XZHM_FX_ FAMILIES PARTICIPATED IN THE PROGRAM private companies and governments, to provide funding for upgrading housing, NSHQZINSL_WJQNJK_UWTOJHYX__FSI_YT_IJQN[JW_GZNQINSL_RFYJWNFQX_HQJFWQ^_FSI_JKÜªHNJSYQ^__ 4.5 MILLION +1,500 PEOPLE TRAINED SQUARE METERS BUILT CLEAN COOK STOVES is a business model that enables our company and social entrepreneurs to reach new markets with cleaner, healthier cooking solutions through the production and commercialization of concrete cook stoves. By MOST OF PATRIMONIO HOY UFWYSJWNSL_¥NYM_2NHWTÜªSFSHJ_.SXYNYZYNTSX_ 2+.X___LT[JWSRJSY__FSI_QTHFQ_¥TRJSÑ£X_ groups, we have reached more than 80,000 households. The implementation of PROMOTERS ARE WOMEN Clean Cook Stoves has not only mitigated 560,000 tons of CO2, but also improved WHO WERE PREVIOUSLY KFRNQNJXÑ£_VZFQNY^_TK_QNKJÑŸXF[NSL_YNRJ_NS_YMJ_HTQQJHYNTS_TK_ÜªWJ¥TTI_FSI_HTTPNSL_FSI_ UNEMPLOYED AND NOW reducing the risk of lung diseases, eye infections, and burns by open stoves. PROVIDE NEW REVENUE STREAMS FOR THEIR 19,121 HOMES WITH CLEAN COOK STOVES BY 2017 FAMILIES. 48 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Resiliency and Urban Transformation Strategy DISASTER MANAGEMENT We foster the sustainable development of our communities by making them more resilient, safe, and committed to the environment. Through our Resiliency and CEMEX’S DISASTER RESPONSE IN ACTION Highlights: Actions in Mexico Urban Transformation Strategy, we transfer our knowledge of how to promote a culture of prevention, as well After the 2017 natural disasters in the U.S., Mexico, i Support employees by reviewing housing as how to act upon a natural disaster. Thus, residents and Puerto Rico, CEMEX strategic resilience disaster structures develop the ability to prevent and to recover from ad- management policy was set in motion, and rapid i Volunteer program activation, rapid response verse situations by working together, strengthening our action plans were developed to support our employ-equipment, and machinery, including: communities’ resiliency and social foundations. ees and our communities and to ensure operational Urban Upgrading continuity in affected areas. Voluntary donations i Delivery of 200 tons of humanitarian aid from CEMEX employees worldwide amounted to Our Urban Upgrading model is designed to foster the i Implementation of Construyo Contigo program US$303,000, plus the 1-for-1 company match. Ad-transformation of vulnerable urban areas into inclusive, ditionally, our company donated US$1.5 million for i Installation of Productive Centers of safe, sustainable, and resilient communities. Launched reconstruction efforts. Self-Employment as a pilot project in Campana-Altamira, Mexico, in 2015, the model is supported by more than 50 part- Highlights: Actions in USA i Support for housing reconstruction across our nerships with government, academia, NGOs, private value chain i In-kind donations and salary advances for affected sector, and community partners. Based on a long-term employees i Collaboration with international alliances to evalu-sustainable development plan for the community, we ate damages, while partnering with national private have worked together with more than 10,000 people i Volunteering to enable employees to clear out from Campana-Altamira. Today, there are 11 neighbor Ü«TTIJI_MTRJX_FSI_MJQU_QTHFQ_XMJQYJWX and public sectors for reconstruction committees leading community participation projects i Donation, via the Mexican National Chamber i (WJFYJI_Ñ¦,4+:3)2*Ñ§_FHHTZSYX_KTW_FKKJHYJI_JR-to continue investment in community infrastructure. of Cement (CANACEM), of material equal to ployees Natural disaster response US$111,000 for reconstruction i Ñ¦3T_(*2*=_JRUQT^JJ_NS_F_XMJQYJWÑ§_JSXZWJI_JR- Highlights: Actions in Puerto Rico At CEMEX, disaster response consists of four stages, ployees had temporary housing through which we collaborate with over 20 partnerships: i Continuous monitoring and assisting employees with in-kind donations of up to US$150,000 i PREPARATION: Evaluate, monitor, analyze, and doc- Reconstructed, in partnership with a client, the PR-ument, while creating awareness in our communities i about possible threats 177 road in less than 24 hours after the disaster i RESPONSE: Evaluate damages, mitigate risks, and i Volunteering program donated time and supplies provide immediate humanitarian aid in coordination with local and federal aid i RECONSTRUCTION: Identify needs, return activities to normal, and make strategic investments in the STICKING TOGETHER IN short and long term MITIGATION: Identify threats, develop and imple- CHALLENGING TIMES IN i THE WAKE OF THE YEAR’S ment policies and regulatory measures to prevent threats, provide strategic long-term investment. NATURAL DISASTERS IN THE U.S., MEXICO, AND PUERTO RICO. 49 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business 3. SOCIAL AND ENVIRONMENTAL nomic, environmental, and urban diagnostics, this CEMEX COLOMBIA’S AND COSTA RICA’S NOTEWORTHY ENTREPRENEURSHIP model enables the collective long-term sustainable ENTREPREURSHIP INITIATIVES development of projects with the collaboration of To continue transforming our communities, we enable multiple sectors under a participatory framework. Rural Businesses Entrepreneurs—This initiative seeks to pro- community partners and social partners with tools and platforms to make their ideas possible. 3. PARTNERSHIPS FOR SUSTAINABLE DEVELOPMENT: vide rural entrepreneurs from Costa Rica’s Guanacaste Province Through an active membership in RedEAmérica, the with all of the necessary tools to market their products. Among Center develops partnerships that make a positive other topics addressed during training, entrepreneurs are taught CEMEX-Tec Center for Sustainable Development impact on public and private sector sustainable how to make their products environmentally friendly and how to Since its foundation in Mexico in 2010, the goal of the development. Founded in 2002 with the support of comply with the market’s quality requirements. CEMEX-Tec Center for Sustainable Development is the Interamerican Foundation (IAF), RedEAmérica is to generate and transfer knowledge while developing Sustainable Partners In Development—This Entrepreneurship a CSR network comprised of more than 80 business skills and capabilities that enable the development Facilitation Program connects partners and clients from our organizations that make private social investment in of sustainable communities. The Center consists of neighboring communities in Colombia to mentor and better 11 countries. The network has invested in coaching several multi-sectoral programs among communities, develop their business ideas and enable them to become sus- FSI_RNHWTÜªSFSHNSL_KTW_RTWJ_YMFS_____UWTOJHYX_YMFY_ government, business, academia, and civil society: tainable entrepreneurs. Their business creation transforms MF[J_NSINWJHYQ^_GJSJÜªYJI_RTWJ_YMFS________UJTUQJ_ communities and contributes to our partners’ empowerment 1. KNOWLEDGE TRANSFER PROGRAMS: The Center and over 400 organizations in Latin America and the and self-growth, creating improved well-being and quality of life. KTXYJWX_XJQK_JRUQT^RJSY_NS_YMJ_HTSXYWZHYNTS_ÜªJQI_ Caribbean. During 2017: and promotes local networks for the generation of Among the Center’s different programs, the environmental initiatives. i The program fostered 141 entrepreneurial projects of which CEMEX-TEC Award annually recognizes entrepreneurs 26 were new projects to our methodology. 2. INVESTIGATION AND CONSULTING: Through its and students who develop high-impact proposals and Sustainable Communities Model, 12 local sustain- projects that foster sustainable development, innova-i The contact network for entrepreneurs included 74 facilitators, able development plans have been implemented tion, and entrepreneurship. The Award offers funding, ¥MT_MJQUJI_YMJ_UWTOJHYX_YT_NRUWT[J_YMJNW_ÜªSFSHJ__UWTIZHY__FSI_ across eight Mexican states. Based on social, eco-specialized workshops, and networking opportunities. marketing skills. Throughout its seven years, the Award has received i 20 entrepreneurial projects participated in the opening cere- projects from more than 4,000 applicants, resulting in mony, underscoring these individuals’ commitment to their the submission of 1,571 projects from 16 countries. business ideas and their future development. To date, 66 of the winning projects came from Mexico and 33 from other countries in Latin America. Altogeth- Solidarity Housing Program—This program seeks to mitigate JW__YMJ_UWTOJHYX_GJSJÜªYJI_T[JW________UJTUQJ__<NYM_NYX_ YMJ_MTZXNSL_IJÜªHNY_KTW_QT¥_NSHTRJ_KFRNQNJX_NS_(TQTRGNF_G^_KFHNQ-global launch, we expect even more diversity in 2018. itating access to building materials and construction know-how. During 2017: 4. CULTURE OF ENVIRONMENT & i 137_UJTUQJ_GJSJÜªYJI_KWTR_YMJ_HTSXYWZHYNTS_TK_SJ¥_MTRJX__ HEALTH i 905_UJTUQJ_GJSJÜªYJI_KWTR_____MTZXNSL_WJST[FYNTSX_ To achieve a more sustainable environment, we not i Six Bloqueras Solidarias projects worked in different regions only promote a responsible use of resources, but also of the country. WE HAVE DEVELOPED a proactive attitude to diversity conservation and restoration. With our employees and community partners, i US$263,296 of CEMEX building materials was sold to vul- SELF-SUSTAINING we promote a culture of caring for and protecting the nerable communities in Colombia through our ConstruApoyo BUSINESS MODELS IN environment, which is key to the sustainable imple-program. THE CONSTRUCTION mentation of our initiatives. INDUSTRY. 50 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Community Environmental Restoration Program kind for CEMEX Poland, the Bierawa ecological path is Our Community Environmental Restoration Program in the immediate vicinity of the neighboring Odra River, CEMEX IN FRANCE COMMITS TO UNICEM CSR is a participatory program aimed at youth and is creating good conditions for the development of habi- CHARTER focused mainly on habitat restoration, education, and tats for numerous plant and animal species. By the end of 2018, CEMEX in France will commit all of its ready-mix and environmental protection. In 2017, four new editions of To care for our environment, we take a proactive atti- aggregates production units (350 sites) to the CSR Charter of the Na-the program were launched in different states across tude to diversity conservation and quarry restoration. A tional Union of Quarry and Construction Materials Industries (UNICEM). Mexico. In the seven currently operating editions, 420 remarkable example is the restoration of our Campedró new environmental promoters lead awareness and res- The CSR Charter is a framework that enables participating companies quarries in Tarragona, Spain, a European Union LIFE toration initiatives in their communities. Notably, this to evaluate and position themselves on major areas of corporate social project that consists of restoring former extraction year the program earned the Wildlife Habit Council’s responsibility, including governance, human capital, customers, suppli-areas and recovering their natural habitats. The restored 8NQ[JW_(JWYNÜªHFYNTS_ areas are perfect replicas of the surrounding land- ers, the environment, and local communities. scape’s morphology, made by a novel Geo-Fluv pro- Beginning in 2017, CEMEX in France committed one third of its ready- Environmentally friendly communities We are strategically committed to becoming the best LWFR__9MNX_UWTOJHY_MFX_FQXT_WJHYNÜªJI_YMJ_SFYZWFQ_Ü«T¥_TK_ mix production units each year to the CSR Charter´s evaluation process. possible neighbor for our communities and to minimiz- ¥FYJW_YT_F[TNI_YMJ_KWJVZJSY_Ü«TTIX_KWTR_YTWWJSYNFQ_WFNSX_ During the year, 74 of our ready-mix concrete sites were evaluated ac-in this area. Additionally, we have managed to recover HTWINSL_YT_YMJ_(87_(MFWYJWÑ£X_IJÜªSJI_UWTKJXXNTSFQ_GJSHMRFWP__ ing our operations’ impact on our surrounding environment. In cooperation with Jan Dlugosz University YMJ_QTHFQ_Ü«TWF_FSI_KFZSF__NSYJLWFYNSL_YMJ_KTWRJW_VZFWW^_ into a pioneering natural habitat project for the world. NS_(_à¤·XYTHMT¥F_FSI_YMJ_5W_^YZQNF_8THNFQ_*HTQTLNHFQ_ Movement, we created an ecological education path at Another outstanding example of our quarry restoration our Bierawa quarry in Poland. The second project of its is in Alicante, Spain. Our former quarry was converted CEMEX IN CROATIA COLLABORATES WITH LINTAR NSYT_FS_FLWNHZQYZWFQ_KFWRÑŸ*Q_(QTYJYÑŸYMFY_FSSZFQQ^_UWT- WAR VETERANS’ COOPERATIVE duces 2,000 tons of citrus fruit with the Good Agricul- For years, CEMEX used the former quarry surface YZWFQ_5WFHYNHJX_(JWYNÜªHFYNTSÑ£X_XJFQ_TK_FUUWT[FQ__8NRNQFWQ^__ on the Southern slopes of Kozjak Mountain for near our Castillejo cement plant in Toledo, Spain, we olive tree planting as a method of quarry rehabil-converted 26 hectares of a former quarry into a vine-itation and re-cultivation. With the foundation of yard with 92,000 plants that produce 40,000 kilos of the Lintar Veterans’ Cooperative in 2011, CEMEX grapes annually. donated the quarry area to the Cooperative, which In Nicaragua, our Recovery of Microclimates and Bio- continued to plant olive trees, care for the olive diversity Forestry initiative aims to recover the vegeta- grove, and produce olive oil that CEMEX partly re-tion in San Rafael del Sur, allowing its microclimates deems and delivers to business partners. The Lin-to regain their natural biodiversity. This is achieved tar extra virgin olive oil has since won many awards through collaborative conservation efforts with the for quality and packaging. It was also awarded the community, such as reforestation and educational international Stevie Award as the best European campaigns aimed at youth to promote environmental project of environmental responsibility among a awareness. As of 2017, 119,067 trees had been plant- ÜªJQI_TK_T[JW_______HTRUJYNYTWX___9MFSPX_YT_YMNX_ ed over the past four years. initiative, veterans can utilize their free time, secure OUR COMMUNITY income for their work in the former quarry, and Since 2015, we have developed an integral approach to INWJHY_YMJ_UWTÜªY_YT_YMJ_XHMTTQNSL_TK_KFQQJS_XTQINJWXÑ£_ ENVIRONMENTAL Panama’s quarry restoration. This approach included children. After a three-year transition to ecological RESTORATION PROGRAM the rehabilitation of our North and South Quarries, a Bio-VINEYARD IN diversity Action Plan for new quarries, and local stake- agriculture methods, the oil produced from this FORMER QUARRY - IS PARTICIPATORY AND ^JFWXÑ£_MFW[JXY_LFNSJI_*HTQTLNHFQ_HJWYNÜªHFYNTSÑŸGJ AT CASTILLEJO, holder involvement in community reforestation projects. HTRNSL_YMJ_Ñ¦ÜªWXY_(WTFYNFS_JHTQTLNHFQ_J]YWF_[NWLNS_ SPAIN AIMED AT YOUTH. Partnerships with governments, NGOs, and schools have proven crucial for the success of this initiative. TQN[J_TNQ_TGYFNSJI_KWTR_F_WJ_HZQYN[FYJI_VZFWW^_Ñ§ 51 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business PURSUING EXCELLENCE IN ENVIRONMENTAL SOLPART CEMEX CARBON FOOTPRINT MANAGEMENT TOOL (CFT) Intends to develop on a pilot scale a high-tem-Reaching environmental excellence for sustainable perature (950°C) 24-hour/day solar process growth is one of our main objectives as a company. suitable for calcination of cement raw materials. Key to our CO2 reduction efforts is our To this end, in addition to the Board-level Sustainability Carbon Footprint Tool (CFT), which helps Committee, CEMEX relies on a Global Environmental ZX_VZFSYNK^_YMJ_(4Ò«_JRNYYJI_NS_YMJ_UWTIZH- Council, composed of the main environmental experts EPOS tion process of our products on a cradle 2 for each region. The Council shares new trends, pro-to-grave basis, including embedded CO in posals, and best practices to identify, inform, and tackle Its main objective is to enable cross-sectoral raw materials, energy carriers, transports, key environmental management concerns. industrial symbiosis and to provide a wide range and others. CEMEX’s CFT is being used in of technological and organizational options for all cement, aggregate and ready-mix sites under our operational control, and infor- Optimizing our carbon footprint RFPNSL_GZXNSJXX_FSI_TUJWFYNTSX_RTWJ_JKÜªHNJSY__ CEMEX is committed and well prepared to contribute cost-effective, competitive, and sustainable. mation is readily available to all CEMEX to climate change mitigation and its consequences. customers interested in the analysis of any As part of our carbon emissions reduction strategy, product supplied by the company. we mainly focus on substituting traditional fossil fuels, LEILAC decreasing our clinker factor, expanding our power Targets carbon capture as the main outcome by supply from clean energy sources, and increasing our developing an indirect calciner that enables the TUJWFYNTSXÑ£_JSJWL^_JKÜªHNJSH^__ capture of pure CO2 as it is released from the As a result of our efforts, we avoided more than 7 limestone. million tons of CO2 emissions in 2017 versus our 1990 baseline. That is comparable to offsetting the yearly average carbon emissions from 1.3 million passenger GENESIS vehicles. Explores the use of metallic organic frameworks YT_JSYWFU_HFWGTS_KWTR_Ü«ZJ_LFX__FQQT¥NSL_KTW_UZWJ_ AVOIDED DIRECT AND INDIRECT CO2 CO2 storage. EMISSIONS VS. 1990 BASELINE (thousand tons) 490 Furthermore, we explore alternatives to traditional clin-TOTAL 2017: 7,047 ker and cement chemistry that enable the production of less CO2-intensive cements. +7 MILLION TONS O RENEWABLE ENERGY To complement these technical measures, we partici-O ALTERNATIVE FUELS pate in several forums and bilateral dialogues with key OF CO2 EMISSIONS O CLINKER FACTOR MONTERREY PLANT, MEXICO stakeholders. These activities are designed to dissem-AVOIDED IN 2017 AS inate knowledge about potential reduction measures 4,049 2,508 PART OF OUR CARBON in our sector and to promote a legislative framework EMISSIONS REDUCTION that enables us to implement these measures. For In addition to those conventional levers, we actively example, they include our leading role in the Cement STRATEGY. seek to develop new technologies to reduce our carbon Sustainability Initiative (CSI), a cement sector project footprint. Most notably, we are currently involved in under the World Business Council for Sustainable De-four European research projects that aim to directly or velopment (WBCSD), and the World Bank-led Carbon indirectly reduce our company’s carbon emissions: Pricing Leadership Coalition (CPLC). 52 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Expanding our clean energy portfolio 2019, this power facility will supply 10% of our opera-CEMEX DEVELOPS NOVEL LOW CO CEMENT During the year, we continued to develop opportunities tion’s power needs, while reducing our carbon emis- 2 that are equally committed to reducing carbon emis- sions and energy costs. 7JXJFWHM_FSI_IJ[JQTURJSYÑŸYTLJYMJW_¥NYM_NSST[FYN[J_FSI_ sions and to providing a sustainable source of energy As a result of these efforts, 26% of our cement oper- WJXNQNJSY_GZNQINSL_RFYJWNFQXÑŸUQF^_F_PJ^_WTQJ_NS_YMJ_XZHHJXX_TK_ for the countries in which we operate. CEMEX sustainability strategy. A noteworthy success story ations’ power supply came from renewable sources is our low carbon cement, derived from the development of a Consistent with this commitment, in Colombia, we en- at year-end 2017. This considers all electricity from new clinker. tered into a contract with Bioenergy, a local company, renewable sources contracted directly, plus the renew-to purchase power from a new plant that, utilizing bio- able energy share of the grid power that our plants .S_______(*2*=_2J]NHT_ÜªWXY_UWTIZHJI_TZW_QT¥_HFWGTS_HJRJSY__ mass residues, will cover almost 40% of our electricity consume. A thorough analysis showed an impressive reduction of over needs. Also, 100% of our Panamanian cement plant’s Some of our clean power projects and purchase agree-15% in direct CO2 emissions from the kiln due to lower fuel con- power needs are supplied by the Enel Fortuna hydro-sumption and reduced carbonate requirements. The positive re- ments include: electric plant, and more than 80% of our Dominican ce-sults further showed that this new cement’s strength increased ment plant’s power needs are met through renewable i 250 MW Eurus wind farm in Mexico over the short term compared with regular cement. sources, including a 1.5 MW on-site solar installation 241 MW Ventika wind farm in Mexico i and a power purchase agreement with EGE Haina to i 7 MW wind portfolio in California consume electricity from Los Cocos Wind Farm. 30 MW waste-to-energy facility in Germany 2TWJT[JW__JSJWL^_JKÜªHNJSH^_NX_TSJ_TK_TZW_TGOJHYN[JX_NS_ i advancing resource conservation best practices. With i 30 MW plant from sugarcane bagasse in Colombia this in mind, in 2017, CEMEX partnered with Sinoma i 6 MW hydropower portfolio in Colombia Energy Conservation Ltd. for the construction of a 4.5 i Enel Fortuna hydroelectric plant in Panama 2<_<FXYJ_-JFY_7JHT[JW^_KFHNQNY^ÑŸ¥MNHM_¥NQQ_HFUYZWJ_ 1.5 MW solar project in the Dominican Republic excess heat from our cement kiln to convert it into i CEMEX RESEARCH usable, clean energy for our APO cement plant in the i Los Cocos wind farm in the Dominican Republic GROUP FACILITIES Philippines. Expected to begin operations at the end of i 6 MW waste heat recovery facility in Solid, Philippines CEMEX FLEET FIRST TO OBTAIN CARBON NEUTRAL Additionally, the following projects are currently under CERTIFICATION IN COLOMBIA development: In 2017, CEMEX Colombia earned the Sello Verde de Verdad (True i 4.5 MW waste heat recovery facility in APO, Philippines ,WJJS_1FGJQ__HJWYNÜªHFYNTS_KTW_YMJ_SJZYWFQN_FYNTS_TK_LWJJSMTZXJ_LFX_ JRNXXNTSX_QNSPJI_YT_YWFSXUTWY_FHYN[NYNJX__9MNX_RFPJX_(*2*=_YMJ_ÜªWXY_ i 20 MW solar facility in Huichapan, Mexico HTRUFS^_NS_YMJ_HTZSYW^_¥NYM_HFWGTS_SJZYWFQ_HJWYNÜªHFYNTS_TS_NYX_JSYNWJ_ i 20 MW solar facility in Yaqui, Mexico. [JMNHQJ_Ü«JJY_ From waste to fuel Sello Verde de Verdad HJWYNÜªHFYNTS_LZFWFSYJJX_YMFY_YMJ_______[JMN- We have the know-how to source, process, store, and HQJX_YMFY_HTRUWNXJ_(*2*=_(TQTRGNFÑ£X_YTYFQ_Ü«JJY_FWJ_HFWGTS_SJZYWFQ_ recover energy from alternative fuels in a responsible thanks to offsets from the CO2CERO® forestry project. Through this project, CEMEX is committed to plant and maintain approximately +1,000 ¥F^__FSI_¥J_FWJ_HTSÜªIJSY_YMFY_NSHWJFXNSL_HT_UWTHJXXNSL_ residues from other sectors in our cement plants will fur- ________YWJJX_NS_4WNSTVZNF__F_UTXY_HTSÜ«NHY__TSJ_FSI_TSJ_TK_(TQTR- VEHICLES IN CEMEX ther contribute to overcoming challenges such as climate bia’s six natural regions. With more than 400 hectares from which TRUCK IN SANTA ROSA PLANT, HMFSLJ__¥FXYJ_RFSFLJRJSY__FSI_KTXXNQ_KZJQ_IJUQJYNTSÑŸ the emissions offset will be achieved, this forestry project will not COLOMBIA. COLOMBIA ARE CARBON while utilizing the principles of a circular economy. only capture around 120,000 tons of CO2, but also protect the re- NEUTRAL. gion’s native forests. 53 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business ENERGY STAR CERTIFICATION Our strong commitment to migrate to cleaner energy increased use of alternative fuels, including waste sources and our permanent efforts to displace tra- availability and quality, infrastructure and logistics, ditional fossil fuels like petcoke and coal with low or co-processing regulations and permitting issues, J[JS__JWT_HFWGTS_FQYJWSFYN[JXÑŸXZHM_FX_RZSNHNUFQ_XTQNI_ market dynamics, economics of waste-derived alter- ¥FXYJ__YNWJX__FSI_GNTRFXX_WJXNIZJXÑŸLJSJWFYJI_[JW^_ native fuels, and technical limitations, among others. successful results this year. After some challenging Nonetheless, we continue to work to reach our clean years, we increased again our alternative fuels rate energy targets, while remaining a prominent industry moving from 23.3% in 2016 to 26.2% in 2017, while advocate and leading user of alternative fuels for generating annual savings of US$123 million. cement production. At year-end, 92% of our cement plants co-processed in To strengthen our progress toward fossil fuels subtotal more than 3 million tons of solid waste as alterna- stitution, this year we created the CEMEX Alternative tive fuels, avoiding the use of 1.8 million tons of coal. Fuels Taskforce, a global multidisciplinary working From these plants, our cement operations with the group comprised of experts from key functions such highest share of alternative fuels for the year included as Energy, Sustainability, Operations and Technology, Chelm in Poland, Prachovice in the Czech Republic, Procurement, Public Affairs, Communications, Social ‘WTHJSN_NS_1FY[NF__(QNSHMÜªJQI_NS_YMJ_:_8___FSI_7à¤IJWX- Responsibility and Risk Management. This dedicated ITWK_NS_,JWRFS^__9TLJYMJW__YMJXJ_YTU_Üª[J_UJWKTWRJWX_ group enables our company to execute deep dive as- MIAMI PLANT, U.S.A. disposed of more than 900,000 tons of waste as fuels XJXXRJSYX_FSI_YT_FSFQ^_J_XUJHNÜªH_HMFQQJSLJX_FSI_TU-in an environmentally friendly manner. portunities for higher alternative fuels consumption in each of our cement installations. This ensures a robust Nonetheless, in the different regions in which we operate, we face barriers that sometimes hinder our J[FQZFYNTS_FSI_JSFGQJX_(*2*=_YT_FIIWJXX_NIJSYNÜªJI_ FOUR CEMEX USA CEMENT PLANTS EARN ENERGY issues from a holistic view. STAR® EPA CERTIFICATION ALTERNATIVE FUELS RATE Four of our cement installations earned the U.S. Environmental ALICANTE CEMENT PLANT SLUDGE DRYING FACILITY (percentage) 5WTYJHYNTS_&LJSH^Ñ£X_ *5&__*3*7,>_89&7p_HJWYNÜªHFYNTS_KTW_ th 2017, ranking in the top 25% for energy conservation when On the 25 anniversary of our company’s arrival, CEMEX Spain’s Alicante compared to similar facilities: plant continues the successful operation of the innovative sewage sludge 26.2 drying facility with Emarasa, Alicante’s municipal wastewater company.With i Brooksville South, Florida_ ÜªKYM_HJWYNÜªHFYNTS_ 20.3 up to 57,000 tons of sludge reused as fuel per year for our plant’s cement i Miami, Florida_ XJ[JSYM_HTSXJHZYN[J_HJWYNÜªHFYNTS__ UWTIZHYNTS_UWTHJXX__YMNX_KFHNQNY^_ZYNQN_JX_JKÜªHNJSY__XYFYJ_TK_YMJ_FWY_YJHMSTQTL^_ th to take advantage of the energy sludge contains and the residual heat of i (QNSHMÜªJQI__,JTWLNF (11 _HTSXJHZYN[J_HJWYNÜªHFYNTS__ our cement kiln to eliminate water in the sludge, while avoiding the pollution i Victorville, California_ XN]YM_HTSXJHZYN[J_HJWYNÜªHFYNTS__ UWTIZHJI_G^_XQZILJ_NS_QFSIÜªQQX_ Throughout the year, all of the recognized plants followed JSJWL^_JKÜªHNJSH^_UWNSHNUQJX_JXYFGQNXMJI_G^_YMJ_*5&Ñ£X_*3*7,>_ 5.1 STAR® Guidelines for Energy Management. The plants implemented energy conservation and monitoring technologies, 0.8 UWTRTYJI_JSJWL^_JKÜªHNJSH^_F¥FWJSJXX_FRTSL_JRUQT^JJX__ and completed energy-reduction projects. 1990 2005 2010 2017 ALICANTE CEMENT PLANT IN SPAIN 54 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Advancing towards a circular economy CEMEX MEXICO SUBSTANTIALLY INCREASES USE Our key contribution to a circular economy is our transformation of waste streams from other sectors 3 MILLION TONS OF ALTERNATIVE FUELS AND RAW MATERIALS into valuable materials. Beyond our use of alternative OF WASTE CO-PROCESSED KZJQX__¥J_HTSXZRJ_QFWLJ_FRTZSYX_TK_XQFL_FSI_Ü«^_FXM_ AS ALTERNATIVE FUELS IN During the year, our cement operations in Mexico achieved F_XNLSNÜªHFSY_NSHWJFXJ_NS_NYX_YTYFQ_KTXXNQ_KZJQ_XZGXYNYZYNTS__KWTR_ as raw materials for our cement and concrete produc- OUR CEMENT OPERATIONS approximately 410 thousand tons of co-processed alternation. To reduce most of the waste generated from our DURING THE YEAR. YN[J_KZJQX_NS______YT_FQRTXY_____YMTZXFSI_YTSX_NS_____ÑŸFS_ processes, we maximize our reuse of clinker kiln dust increase of 49%. in the production loop, largely avoiding its disposal in F_QFSIÜªQQ__9T_WJFQN_J_YMJ_ÜªSFSHNFQ_FSI_JS[NWTSRJSYFQ_ Selected waste and by-products containing useful minerals GJSJÜªYX_TK_¥FXYJ__¥J_XJJP_YT_RTSNYTW__RNSNRN_J__WJZXJ__ can be used as alternative raw materials in the kiln. In 2017, and recycle all of our wastes, whenever possible. CEMEX Mexico increased by almost 20% its use of alter-Our waste reduction efforts include: native raw materials, from 635 to 761 thousand tons year over year. All in all, CEMEX Mexico co-processed 1.4 million i MONITORING hazardous and non-hazardous waste tons of industrial residues during 2017, a more than 31% generated in all of our operations increase over the previous year. i REPLACING primary aggregates with other discarded materials, including demolished concrete By utilizing household residues and industrial by-products, REUSING AND RECYCLING fresh concrete returned we decrease our impact on the environment and society by i mitigating carbon emissions; decreasing our use of quarry from construction sites. materials and primary fossil fuels; and recycling materials In 2017, 95% of the waste generated by our production ¥MNHM_¥TZQI_TYMJW¥NXJ_LT_NSYT_QFSIÜªQQX__¥NYM_YMJNW_FHHTRUF-processes was recovered, reused or recycled. The nying impacts on air, water, soil, ecosystems, and humans. remaining material was sent to disposal sites. As a At the end of 2017, 88% of our operations had im- Moreover, our use of alternative fuels and raw materials not result of our efforts, the disposal of our non-hazardous plemented either the CEMEX EMS or equivalent pro- TSQ^_LJSJWFYJX_XTHNFQ_GJSJÜªYX__GZY_FQXT_HWJFYJX_QTHFQ_INWJHY_ waste, the most abundant waste we generate, de- grams. As we approach full implementation of our and indirect jobs from their transport and processing. creased more than 9% compared to last year. global EMS in 2020, our goal is for all CEMEX facilities to be 100% compliant with our internal environmental Enhancing environmental management criteria. CEMEX UK DIVERTS 80% OF WASTE FROM We use the CEMEX Environmental Management LANDFILLS System (EMS) to evaluate and facilitate consistent, Managing our air emissions complete implementation of risk-based environmental We are committed to reducing our air emissions’ im- (*2*=_:0_NX_QNYJWFQQ^_F_Ñ¦¥FXYJ_JFYJW_Ñ§_9MFSPX_YT_TZW_7JH^HQJ_ R8 strategy, we now consume 80 times more waste than management tools across our operations. The CEMEX pact on the environment: EMS consists of key mechanisms for environmental ¥J_XJSI_YT_QFSIÜªQQX__ i MONITOR major and minor emissions impact assessment, stakeholder engagement, and IMPROVE our measurement methods Through our Recycle R8 strategy, we conducted a com-accident response based upon input from a range of i UWJMJSXN[J_FZINY_UWTHJXX_FHWTXX_T[JW_____XNYJXÑŸKWTR_TZW_ environmental and biodiversity specialists. The sys- i ADAPT to new and more stringent air emissions quarries to our cement and concrete plants and corporate tem meets ISO 14001 and EU Eco-Management and regulations, investing accordingly and executing &ZINY_8HMJRJ_ *2&8__HJWYNÜªHFYNTS_FSI_FUUQNJX_YT_FQQ_ TKÜªHJXÑŸUZY_NS_UQFHJ_YMJ_WNLMY_¥FXYJ_FSI_WJH^HQNSL_KFHNQNYNJX_ required training at each site, and completely changed the culture among our of CEMEX business activities, products, and services GO BEYOND local regulations and set ambitious i employees. Before Recycle R8, we diverted 27% waste away globally, including companies and joint ventures con- targets for emissions mitigation. KWTR_QFSIÜªQQX _YTIF^_NY_NX___ __¥NYM_ZX_RT[NSL_YT¥FWIX_TZW_ trolled by and/or operated by CEMEX. target of 100%. 55 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business The release of nitrogen oxides (NOX), sulfur compounds In 2017, 92% of our clinker was produced with CEMs in (SOX), and dust occurs during cement manufacturing. place, and our target is to reach 100% by 2020. Other emissions, including dioxins, furans, volatile organic compounds, and heavy metals, are released in Environmental incidents management very small or negligible quantities. To control our stack We permanently work to minimize our environmental emissions and remain compliant with local and national impacts, and we are well prepared to respond to any regulations, we have steadily expanded emissions moni- emergency that may pose a potential threat to our toring at our manufacturing operations even exceeding operations and local communities: regulation requirements in many geographies. • WE WORK WITH OUR NEIGHBORS__TKÜªHNFQX__UZGQNH_ 9MWTZLM_TZW_NSYJWSFQ_*28_FSI_RTWJ_XUJHNÜªHFQQ^_YMWTZLM_ agencies, and other stakeholders to develop contin-our Atmospheric Emissions Global Procedure, we mon- gency plans at each of our sites. itor major emissions to ensure compliance with local • WE CREATED EMERGENCY RESPONSE TEAMS regulation limits. To further improve upon these efforts, YMFY_FWJ_XUJHNÜªHFQQ^_YWFNSJI_YT_FIIWJXX_JS[NWTSRJSYFQ_ we have updated the minimum performance levels to KZQÜªQQ_FSSZFQQ^_KTW_RFOTW_JRNXXNTSX__.S_FIINYNTS__(*2*=_ incidents and hold annual emergency drills. is establishing more stringent environmental standards • WE CONSISTENTLY RECORD AND REPORT for air emissions that will be based on EU Best Available INCIDENTS at every level of our business to iden-Techniques. tify recurring root causes and to share corrective STATE-OF THE ART EMISSIONS CONTROL actions. During the year, we invested more than US$83 million As of 2018, we have updated our Global Environmental DEVICES IN MEXICO in sustainability initiatives, including projects to mon- In 2017, we installed a new state-of-the-art bag .SHNIJSY_7JUTWYNSL_9TTQ_YT_NSHQZIJ_XTHNFQ_NSHNIJSYXÑŸ NYTW_FSI_WJIZHJ_TZW_FNW_JRNXXNTSXÑŸKWTR_YMJ_WJUQFHJ- house in place of the electrostatic dust collector RJSY_TK_JQJHYWT_ÜªQYJWX_¥NYM_GFL_ÜªQYJWX_YT_YMJ_FHVZNXNYNTS_ consolidating our holistic approach to the integral management of incidents. at our Tamuin cement plant in Mexico. Moreover, of continuous emissions monitoring systems (CEMs). we have an equivalent project underway at our Atotonilco Cement Plant. The total combined investment for these improvements is close to CEMEX COLOMBIA INSTALLS HIGH-TECH US$13 million. EMISSION CONTROL TECHNOLOGY While the former technology conformed to strin-To strengthen our control on air emissions, we com- gent dust control requirements normally found UQJYJI_YMJ_NSXYFQQFYNTS_TK_F_MNLM_YJHM_GFL_ÜªQYJW_FY_TZW_ in any country, the new system enables us to Ibague cement plant in Colombia. This new emission go even further: recuperating more particulates HTSYWTQ_X^XYJRÑŸ¥MNHM_WJUQFHJX_YMJ_J]NXYNSL_JQJHYWT_ for reuse as raw materials for our clinker and ÜªQYJWÑŸHFUYZWJX_YMJ_WJXNIZFQ_IZXY_YMFY_NX_J]UJQQJI_KWTR_ cement production, while reducing our electric-our different production processes. It also continues to ity consumption, mitigating our emissions, and work even through electrical faults. increasing our operations’ safety. Our largest cement plant in Colombia, the Ibague plant generates 200 direct jobs and produces 25% of the total cement manufactured in the country. IBAGUE CEMENT PLANT IN COLOMBIA 56 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business ENVIRONMENTAL INCIDENTS BY TYPE (percentage) CEMEX WINS AWARD FOR WATER WE ARE INCREASING REUSE PROCESS 1 OUR WATER EFFICIENCY 6 In 2017, CEMEX Cement and Ready-Mix Tech- 10 O DUST THROUGH THE nology Center in Mexico (CTCC) earned the “Best O OPERATING CONDITIONS IMPLEMENTATION OF 8THNFQQ^_7JXUTSXNGQJ_5WFHYNHJX______&¥FWIÑ§_KWTR_ 11 O FUELS & CHEMICALS OUR CORPORATE WATER the Mexican Center for Philanthropy. Awarded O MICRO POLLUTANTS under the promotion and responsible consump- 56 O WATER POLICY. tion category, the prize recognized our water 16 O WASTE & MATERIALS reuse process for ready-mix concrete production. Coordinated by the CTCC, our water reuse process transfers potable water rejected by food producers to our company’s business units and We believe that reporting environmental incidents Water availability is vital for the future of our opera- then integrates it into our ready-mix concrete NX_YMJ_ÜªWXY_XYJU_YT_WJIZHNSL_YMJNW_THHZWWJSHJ_FSI_ tions and the sustainability of our business. Equally UWTIZHYNTS_UWTHJXXÑŸF[TNINSL_¥FXYJ_TK_TSJ_TK_ severity. Our rigorous efforts to standardize the important, our use, diversion, and discharge of water our most important natural resources. implementation of our environmental management into the environment impacts people, nature, and the processes enabled us to avoid the occurrence of Cat- ecosystems on which we rely. That is why CEMEX is Through this process, we have helped to save more than 150,000 m3 of water, equal to ap-egory 1 incidents during 2017. working to establish a water baseline, prioritizing wa-Moreover, our Category 2 incidents decreased sig- ter-related risks and opportunities while following up proximately 600,000 people’s daily consump-on relevant water key performance indicators. YNTS__(ZWWJSYQ^_HT[JWNSL_Üª[J_HNYNJX_NS_2J]NHT__¥J_ SNÜªHFSYQ^__KWTR____NS______YT____NS_______9MNX_XNLSNÜª- plan to expand this process in 2018. cant drop was closely related to updating the CEMEX This includes setting water-related targets and recogniz-Environmental Incident Reporting Procedure, wherein ing the role our business has to play with local stakehold-XUJHNÜªH_NSHNIJSYXÑ£_HNWHZRXYFSHJX_¥JWJ_WJHTWIJI_NS_ ers to develop sustainable solutions to water manage-the context of the corrective action in order to ensure ment. To this end, understanding the way we use water WATER FOOTPRINT better follow-up and corresponding remediation. in our business operations is a key step to determining where future issues may occur not only for our opera- (million m3) At CEMEX, we will maintain open communications to tional use, but also for the ecosystems and people who disclose our progress and continue working with governments and community groups that support environ- WJQ^_TS_Ü«T¥NSL_WN[JWX_FSI_LWTZSI¥FYJW_WJXTZWHJX_ 29.6 mental improvement. To protect this natural resource and enable our busi- 13.2 SJXX_YT_XZHHJJI__¥J_FWJ_NSHWJFXNSL_TZW_¥FYJW_JKÜªHNJSH^_ Preserving land, biodiversity and water through the implementation of our Corporate Water The preservation of land, biodiversity, and water plays a Policy across our operations. This includes standard- 19.7 key role in our long-term resource management strategy. ization of our water measurement based on the Water 14.3 Protocol developed in coordination with the Interna- 16.4 12.0 Managing water to minimize use tional Union for Conservation of Nature (IUCN), togeth- 4ZW_TUJWFYNTSX_GJSJÜªY_INWJHYQ^_KWTR_¥FYJW__FSI_¥J_RZXY_ er with our use of the Global Water Tool for the Cement 11.2 take care of this invaluable resource by optimizing its Sector in order to prioritize our actions to reduce water consumption and guaranteeing discharge quality. consumption such as water recycling systems and O_TOTAL WITHDRAWALS 5.4 O_TOTAL DISCHARGES rain and storm water runoff collectors. 0.8 O TOTAL CONSUMPTION CEMENT READY-MIX AGGREGATES 57 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Approximately 9% of CEMEX operations are located in was is an exhausted sand and gravel quarry. Heather TKÜªHNFQQ^_IJXNLSFYJI_¥FYJW_XYWJXXJI_FWJFX__<J_UWT[NIJ_ HZYYNSLX_HTSYFNSNSL_XJJIX_FSI_TYMJW_Ü«TWF_KWTR_FS_ guidance to our operations through a holistic water FIOTNSNSL_8NYJ_TK_8UJHNFQ_8HNJSYNÜªH_.SYJWJXY_ 888.__MF[J_ management plan that prioritizes countries and sites been spread over part of the site to create heathland, a where the water-related risks are highest and the busi- rare habitat in Northwest Europe. This 1,000 hectares SJXX_NRUFHY_NX_RTXY_XNLSNÜªHFSY_ of priority UK habitat provide homes for 46 threatened birds, such as twites, house sparrows, swifts, and tur-Biodiversity action management and quarry rehabilita- YQJIT[JX__UQZX_RFS^_XUJHNJX_TK_¥NQIQNKJÑŸGWT¥S_MFWJX__ tion progress ¥FYJW_[TQJX__*ZWTUJFS_JJQ__FSI_XRFQQ_GQZJ_GZYYJWÜ«^ÑŸ Biodiversity Action Plans (BAPs) are the principal tool and an extensive range of plant life, including rarer for CEMEX to achieve a Net Positive Impact on biodi- species such as bluebells. versity. Since 2007, our operations have worked closely with BirdLife International, optimizing their unique local Contributing to the protection of threatened wetland IN 2017, WE CELEBRATED THE 10TH ANNIVERSARY network of grassroots NGOs and their rich knowledge species in the Dominican Republic OF THE CEMEX-BIRDLIFE of biodiversity and ecosystem services. This work is Since 2013, CEMEX Dominican Republic has worked GLOBAL PARTNERSHIP LZNIJI_G^_TZW_(TWUTWFYJ_‘NTIN[JWXNY^_5TQNH^ÑŸ¥MNHM_ with Grupo Jaragua and BirdLife International in order is fully integrated into our business model in all of to promote sustainable development at the Laguna our countries and operations and is aligned with the Cabral Important Bird and Biodiversity Area, a Ram-Convention on Biological Diversity (CBD) and its Aichi sar wetland of international importance in proximity Biodiversity Targets. to the Las Salinas Quarry. This wetland serves as a refuge for many species of wetland birds, including In 2017, we continued acting to enhance biodiversi- MZLJ_Ü«THPX_TK_RNLWFYTW^_IZHPX_YMFY_ZXJ_YMJXJ_¥FWR_ Y^_NS_FSI_FWTZSI_TZW_VZFWWNJXÑŸQTHFYJI_NS_TW_HQTXJ_YT_ waters to rest and refuel during the winter on their MNLM_GNTIN[JWXNY^_[FQZJ_FWJFXÑŸ¥MNQJ_XYFWYNSL_SJ¥_’&5_ long journey from the U.S. to Canada. At the same projects at other key quarries. We also continued to time, the lagoon supports an important population of develop quarry rehabilitation plans for all of our active SPECIAL PARTNERSHIP the endemic, globally vulnerable, and elusive Hispan-cement and aggregates quarries. BETWEEN THE RSPB AND iolan slider turtle, known locally as “hicotea sureña_Ñ§_ CEMEX UK CREATES 1,000 Approximately 97% of our active quarries have a As well as threats to the bird populations that depend HECTARES OF PRIORITY rehabilitation plan in place. Additionally, 69% of our 64 on the lagoon, the turtle population faces hazards CONSERVATION LAND active quarries located within or adjacent to high biodi- XZHM_FX_T[JW_J]UQTNYFYNTS_G^_ÜªXMJWRJS_FSI_¥JYQFSI_ versity value areas have a BAP in place. degradation. The team has conducted numerous studies, accompanied by regular monitoring and an The following are key highlights from some of our lead-ethnographic and socio-economic survey to identify ing biodiversity projects: conservation opportunities for these species that can be integrated into and aligned with efforts to improve Special partnership between the UK’s largest nature the livelihoods of people in these communities. conservation charity, the RSPB, and CEMEX UK creates 1,000 hectares of priority conservation land. Blank-winged kite family grows at CEMEX France’s In 2010, the Royal Society for the Protection of Birds Saint-Cricq du Gave/Lahontan quarry. GRUPO JARAGUA COL-(RSPB)-CEMEX UK partnership developed a Biodiversi- The black-winged kite is a priority species in France LABORATES WITH CEMEX ty Strategy designed to create outstanding habitats on and the EU, and it has been monitored regularly for IN THE BIODIVERSITY CONSERVATION EFFORTS CEMEX land. The demanding target of 1,000 hectares eight years at CEMEX’s Saint-Cricq du Gave/Lahontan OF THE LAGUNA CABRAL IN was set for the year 2020, but was reached ahead of Quarry, as part of our efforts to renew the quarry’s THE DOMINICAN REPUBLIC schedule with the 1,000th hectare created at Hopwas license. Working with CEMEX, LPO (BirdLife in France) Quarry, near Tamworth in the West Midlands. Hop- has helped to identify the kite’s nesting sites and forag- 58 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business NSL_WFSLJ__8UJHNÜªHFQQ^__YMJ^_KTZSI_YMJ_XUJHNJX_SJXYNSL_ The ecosystem services assessed included na-SJFW_YMJ_FHYN[J_J]YWFHYNTS_FWJF__.S_YMJ_ÜªWXY_^JFW__YMWJJ_ YZWJ_GFXJI_WJHWJFYNTS__KTTI_FSI_ÜªGJW__FSI_LQTGFQ_ OZ[JSNQJX_Ü«JILJI__FSI_NS_XZGXJVZJSY_^JFWX__F_UFNW_MFX_ climate regulation. A global climate regulation services UWTIZHJI____^TZSLÑŸKWJVZJSYQ^_XJJS_T[JW_YMJ_VZFWW^__ analysis showed that the agricultural scenario deliv-In the area around CEMEX quarry, the species is still ered the highest CO2_JRNXXNTSXÑŸFUUWT]NRFYJQ^___ _ present and continues to breed. The habitats are in MNLMJW_YMFS_YMJ_HTSXJW[FYNTS_XHJSFWNTÑŸRFNSQ^_IZJ_YT_ constant evolution due to mining activity, so LPO and YMJ_ZXJ_TK_KJWYNQN_JWX__9MJ_ÜªSINSLX_KWTR_YMNX_XYZI^_¥NQQ_ CEMEX developed an action plan to maintain enough help to inform CEMEX’s decision-making about the favorable breeding and feeding habitat to support this long-term use of this site. important species. Actions included planting hedgerows and creating meadows on former agricultural Building an action plan for rare insects in the Czech areas, providing suitable foraging areas. Republic CEMEX’s Náklo Quarry sits beside the Morava River Assessment of ecosystem services for CEMEX Spain’s and is home to an impressive diversity of invertebrates, quarry rehabilitation including the rare oil beetle (Meloe proscarabaeus). It CEMEX EXPANDS COLLABORATION WITH WILDLIFE Since 2011, CEMEX Spain and SEO/BirdLife have FQXT_MTXYX_YMJ_[ZQSJWFGQJ_PNSLÜªXMJW_ Alcedo atthis) and HABITAT COUNCIL worked together to enhance conditions at the Soto the nationally endangered variegated horsetail (Equise-CEMEX’s partnership with the Wildlife Habitat Council (WHC) Pajares Quarry. To strengthen the business case for tum variegatum__UQFSY_XUJHNJXÑŸTSQ^_PST¥S_YT_LWT¥_FY_ provides a valuable opportunity to engage CEMEX employ- restoring this quarry back to a biodiversity-focused 15 other sites in the country. CEMEX Czech Republic ees and local communities in wildlife enhancement initia- end-use, SEO/BirdLife undertook an assessment of and CSO (BirdLife’s local partner) worked together tives and foster awareness of how industry and natural hab- JHTX^XYJR_XJW[NHJX__GJSJÜªYX_YMFY_UJTUQJ_IJWN[J_KWTR_ to create a BAP to conserve the rare and threatened nature. The study’s aim was to explore the different species living on the exposed sandy habitats on the NYFYX_HFS_HTJ]NXY__9MJ_<-(_UWTRTYJX_FSI_HJWYNÜªJX_MFGNYFY_ conservation and management on corporate lands through GJSJÜªYX_YMFY_YMJ_WJXYTWFYNTS_TK_(*2*=_8UFNSÑ£X_8TYT_ waterside. CSO and CEMEX focused their conservation partnerships and education. Through a focus on building Pajares Quarry could provide to different groups. To actions within the quarry boundary, comparing the collaboration for conservation with corporate employees, ZSIJWXYFSI_MT¥_YMJ_Ü«T¥_TK_YMJXJ_JHTX^XYJR_GJSJÜªYX_ biodiversity of selected groups of organisms and the other conservation organizations, government agencies, change, an assessment of the current restoration plan conservation potential of sandy shore habitats. Such and community members, WHC programs focus on healthy and its possible alternatives was carried out. habitats are recognized as among the most threatened ecosystems and connected communities. As a member of habitats in Central Europe, with only patches remain-the WHC since 1996, CEMEX currently maintains 23 WHC ing. The BAP focuses on understanding and promoting the special biodiversity at the lakeshore. (TSXJW[FYNTS_(JWYNÜªHFYNTS_UWTLWFRX__NSHQZINSL____VZFWWNJX_NS_ the U.S., four in Mexico, two in Nicaragua, one in the Domin-ican Republic, and one in Panama. CEMEX’s on-site conser- CEMEX Czech Republic wins awards for Náklo quarry vation projects vary in scope from individual species man- biodiversity action plan agement and community engagement to large-scale habitat CEMEX Czech Republic’s Biodiversity Action Plan restoration. Moreover, WHC awarded CEMEX the Gold Tier (BAP) at its Náklo quarry was awarded the silver Program of the Year for our biodiversity conservation efforts HJWYNÜªHFYJ_NS_YMJ_*S[NWTSRJSYFQ_1JFIJW_HFYJLTW^_NS_YMJ_ at our El Carmen Nature Reserve. Top Responsible Company competition, organized by Business for Society. Its BAP also won an award at YMJ_2NSNSL_:SNTS_NS_YMJ_(_JHM_7JUZGQNHÑ£X_ÜªKYM_FSSZFQ_ competition, showcasing the best reclamation, renatu-ralization, and rehabilitation projects of mining areas. SOTO PAJARES QUARRY REHABILITATION 59 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business of bighorn sheep that were reintroduced into the Big Bend-Rio Bravo biological corridor through El Car-men’s facilities. i RESEARCH AND EDUCATION: Since 2001, nearly 1,000 students from different academic institutions have visited El Carmen Nature Reserve. This “outdoor LONE STAR AWARD QFGÑ§_NX_TSJ_TK____UWTLWFRX_IJ[JQTUJI_FY_*Q_(FWRJS_ YMFY_FWJ_HJWYNÜªJI_G^_YMJ_<-(__.S__________GNTQTL^_XYZ-dents visited El Carmen, receiving lessons from the CEMEX EARNS “2017 LONE STAR LAND staff on their technical expertise in wildlife surveys, 89*<&7)Ñ§_&<&7) wildlife radio telemetry, wildlife tracking, and nature The Texas Parks and Wildlife Department rec- reserve management. ognized CEMEX for its ongoing commitment EL CARMEN NATURE i COLLABORATION: El Carmen holds active coopera-to sustainability and land stewardship with RESERVE IS ONE OF tion agreements with several conservation NGOs and the prestigious “2017 Lone Star Land Stew- THE MOST IMPORTANT Mexican and U.S. governments. In 2017, El Carmen FWI_&¥FWIÑ§_KTW_YMJ_9WFSX_5JHTX_*HTWJLNTS_ BIODIVERSITY HOTSPOTS HTSIZHYJI_F_<NQIÜªWJ_2FSFLJRJSY_FSI_8ZUUWJXXNTS_ The award recognizes CEMEX, El Carmen <TWPXMTU__FSI_YMJ_XYFKK_TGYFNSJI_YMJNW_WJ_HJWYNÜªHF- AND TRANSBOUNDARY Nature Reserve, and partner owner, Josiah YNTS_FX_¥NQIÜªWJ_ÜªWJÜªLMYJWX_ ECOSYSTEMS IN THE WORLD. Austin, for their dedication to excellence in Learn more about this unique nature reserve. > wildlife and natural resource management through their work at El Carmen Nature Re- Back from the Brink: 25 Conservation Success Stories serve in Texas. It acknowledges their continu- This year, we celebrated the 25th edition of CEMEX ing efforts to restore lands and native wildlife El Carmen Nature Reserve Conservation and Nature Book Series. We have long in the U.S. portion of El Carmen, along with Located along the border between Mexico and the published these books as a special platform to provide their commitment to protect the vital wildlife United States, this private cross-border conserva- conservation organizations and scientists with the op-corridor and bird migration route between the tion region is one of the most important biodiversity portunity to share ideas, set priorities, and create blue-U.S. and Mexico. hotspots and transboundary ecosystems in the world. prints for action. Over this 25-year journey, we have For more than two decades, the Texas Parks With over 140,000 hectares, El Carmen enables us to consistently aspired to publish the most cutting-edge and Wildlife Department has honored those restore habitats and wildlife in an area that is more solutions in the world of conservation to protect our who demonstrated excellence and dedicated than eight times larger in size than the total sum of the planet’s biodiversity. stewardship of land through these awards. areas impacted by our operations worldwide. The 2017 edition, “Back from the Brink: 25 Conserva-Over the past 16 years, El Carmen Nature Reserve has YNTS_8ZHHJXX_8YTWNJX_Ñ§_NX_UZGQNXMJI_NS_UFWYSJWXMNU_¥NYM_ provided abundant wildlife management, research and Conservation International, Global Wildlife Conserva-education, and collaboration opportunities: tion, the International Union for Conservation of Nature (IUCN), Oceanic Society, Turtle Conservancy, and Earth i WILDLIFE MANAGEMENT: Among the highlights in Focus. With this book, we celebrate the remarkable of its protection efforts is the reintroduction of spe-resolve of innumerable people and institutions to save cies such as the Bighorn and Pronghorn Antelope. the ever-rising numbers of threatened species. Other species with considerably increased populations include the desert mule deer, the white-tailed Through spectacular photographs, accompanied by deer, and the black bear. In 2017, El Carmen hosted IJXHWNUYN[J_UWTÜªQJX__YMNX_[TQZRJ_MNLMQNLMYX_YMJ_YMWJFYX__ YMJ_ÜªWXY_NS[FXN[J_¥NQIQNKJ_RTSNYTWNSL_¥TWPXMTU__ causes for decline, and remarkable efforts that have focusing on the Barbary sheep, a threat to groups saved 25 species from extinction. 60 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business PROACTIVE STAKEHOLDER ENGAGEMENT In today’s world, certain issues such as the environment or sustainability are beginning to cross not only national, but also regional boundaries. We realize that AT CEMEX, WE DEFINE PUBLIC AFFAIRS AS ¥TWPNSL_¥NYM_F_IN[JWXJ_LWTZU_TK_XYFPJMTQIJWXÑŸQNXYJS-ing to their concerns and managing our relations in a THE PROACTIVE ENGAGEMENT OF OUR UWTFHYN[J_FSI_KWZNYKZQ_¥F^ÑŸNX_PJ^_YT_RF]NRN_NSL_TZW_ STAKEHOLDERS TO IDENTIFY BUSINESS impact in the places where we operate. OPPORTUNITIES AND REDUCE THE RISK TO OUR 9MNX_NX_WJÜ«JHYJI_NS_TZW_8YFPJMTQIJW_*SLFLJRJSY_5TQ- OPERATIONS. WE ARE COMMITTED TO OPEN icy, launched in May 2016. The policy establishes the AND CONSTANT ENGAGEMENT. ULTIMATELY, OUR role that stakeholder engagement and public affairs OBJECTIVE IS TO BECOME AND BE PERCEIVED play in our company’s strategy and ongoing business management. AS A PROACTIVE, POSITIVE NEIGHBOR AND “Back From the Brink,” as well as our PARTNER. 4ZW_ZSNÜªJI_8YFPJMTQIJW_2FSFLJRJSY_2TIJQ_LZNIJX_ other editions, are available for sale TZW_RFSFLJRJSY_YJFR_NS_YMJ_NIJSYNÜªHFYNTS_TK_TZW_ on our CEMEX Nature page > main stakeholders; afterwards, an engagement and communication roadmap is established. In 2017, as part of the second wave of our public affairs mod- The second regional level is mainly focused on rela-el rollout, we conducted training sessions in seven CEMEX NATURE tions with environmental and transportation authori-countries with the participation of more than 120 ties, as well as local business organizations. We also We encourage you to stay connected and visit our business leaders to ensure that stakeholder engage-cooperate with regional universities and other academ-website and social media channels to learn more ment is an integral part of our business agenda and ic/expert entities, which support us with our biodiversi-about our conservation efforts, Nature Book Series, daily management. As a result, our global Public ty activities, among others. El Carmen Nature Reserve, and many other global &KKFNWX_SJY¥TWP_LWJ¥_XNLSNÜªHFSYQ^_T[JW_YMJ_UFXY_^JFW_ biodiversity projects: Our third level of stakeholder engagement is national. We use tailor-made activities to interact with our On this level, we engage with relevant ministries and www.cemexnature.com stakeholders depending on the line of business governmental bodies that are responsible for regulat-TUJWFYNSL_NS_F_LN[JS_QTHFYNTS__<J_IJÜªSJ_Üª[J_QJ[JQX_ ing areas of our company’s interests, such as those www.facebook.com/CEMEXNature of stakeholder engagement: local, regional, national, in charge of infrastructure and construction. We also www.twitter.com/CEMEXNature sub-regional, and global. follow parliamentary sessions and conduct legislation www.instagram.com/CEMEXNature 9MJ_ÜªWXY_QTHFQ_QJ[JQ of our relations is with our direct monitoring to stay up to date on the latest changes to neighbors, local communities, and local governments. regulations connected with our business activities. To It is the most important level for our company be- this end, our company is actively involved with sectoral cause our local communities are the most impacted associations. For instance, in Europe, we work with by our activities, and at the same time, may have the the Cement Producers Association, Polish Association LWJFYJXY_NSÜ«ZJSHJ_T[JW_TZW_TUJWFYNTSX__0J^_RFYJWNFQ_ of Ready Mixed Concrete Producers, and Polish Ag-issues are discussed with them during our company’s gregates Producers Association, as well as employer regular dialogue and communication. Given the im- FXXTHNFYNTSXÑŸ¥MJWJ_¥J_RTSNYTW_WJHJSYQ^_NRUQJRJSYJI_ portance and closeness of our local communities, on regulations and work together for better standards on this level, we focus on social engagement activities, H&S and environmental issues. among others, through cooperation with local social partners such as NGOs. 61 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Our fourth level of sub-regional engagement is espe- <J_FWJ_NSHWJFXNSLQ^_NS[TQ[JI_NS_LQTGFQ_GTINJXÑŸ¥MNHM_ cially important in the European Union (EU) because MJQU_YT_HTTWINSFYJ_YMJXJ_¥TWQI¥NIJ_YTUNHXÑŸXZHM_FX_ MAIN CEMENT AND CONCRETE ASSOCIATIONS TK_YMJ_XNLSNÜªHFSY_WJLZQFYTW^_UT¥JWX_NY_MTQIX_T[JW_NYX_ the Cement Sustainability Initiative (CSI). Thanks to member states. EU institutions establish regulations this involvement, our company takes an active role in NS_UWJ_IJÜªSJI_FWJFX_NS_¥MNHM_YMJ_*:_MFX_OZWNXINHYNTS_ Cement Sustainability Initiative (CSI) Global collective global stakeholder engagement. European Cement Association (CEMBUREAU) Regional (Europe) that are binding on its member states. Laws initiated The CSI is a sector initiative within the World Business by the EU govern most of business’ regulatory frame- European Ready Mixed Concrete Organization Council for Sustainable Development (WBCSD). There, ¥TWPÑŸKWTR_JS[NWTSRJSY__HTRRJWHJ__FSI_HTRUJYNYNTS_ we lead the Communications Taskforce, where we (ERMCO) Regional (Europe) to transportation. have been actively involved in an industry-coordinated European Aggregates Association (UEPG) Regional (Europe) We actively engage the EU and other sub-regional stake- effort to promote concrete as a sustainable material. Inter-American Cement Federation (FICEM) Regional (LATAM) MTQIJWX_NS_TWIJW_YT_RTSNYTW_FSI_NSÜ«ZJSHJ_WJLZQFYNTS_TK_ Also, we work in close coordination with CEMBUREAU importance to our company. To do so, we are involved in and other cement associations to ensure our align- National Chamber of Cement (CANACEM) National (Mexico) industry associations operating in these regions, which ment on a global scale. We have been collaborating on Portland Cement Association (PCA) National (USA) help us to represent our interests in the EU. In Europe, the image and perception campaign that these asso-we are a member of CEMBUREAU (European Cement ciations developed to coordinate communication and National Ready Mixed Concrete Association (NRMCA) National (USA) Association), ERMCO (European Ready-Mix Concrete As- advocacy activities at the regional level. American Concrete Pavement Association (ACPA) National (USA) sociation), and UEPG (European Aggregates Association), In September 2017, FICEM appointed one of our Cement Manufacturers’ Association of the through which we engage with EU institutions. In South CEMEX Country Managers from the South Central Philippines (CEMAP) National (Philippines) America and the Caribbean, our company is present in America and Caribbean region as its new president for the Inter-American Cement Federation (FICEM). the 2017–2020 period. In FICEM, we also coordinate Other sub-regional bodies that constitute important the Communications Committee, which has been stakeholders for our company include NAFTA, Mercosur working to co-process legislation across the region for South America and the Caribbean, ASEAN for Asia, with actual roadmaps by country. and the Visegrad Group (V4) for Europe. Their member On a national level, 19 of our 21 business units enjoy states have equipped all of them with different regula-leading roles on the different cement, concrete, and ag- YTW^_UWJWTLFYN[JX_NS_YMJ_FWJFX_YMFY_YMJ^_HT[JWÑŸRTXYQ^_ gregates associations in which we participate. During commerce and economy. 2017, executives from CEMEX served as chairmen of 10 national associations. Our active participation in Public Affairs Network YMJXJ_FXXTHNFYNTSX_LN[J_ZX_HWZHNFQ_NSÜ«ZJSHJ_YT_UZXM__ Cement and concrete promotion partners along with other companies, fundamental topics for We actively participate in different industrial associa- our sector such as sustainability practices, H&S stan-tions at regional, national, and local levels to develop dards, and alternative fuels, among others. partnerships, gain knowledge, provide a voice, and in the case of our sector, promote cement and concrete. WE USE TAILOR-MADE Our business units also engage with international A GROWING NETWORK ACTIVITIES TO INTERACT stakeholders such as intergovernmental organizations 4ZW_5ZGQNH_&KKFNWX_3JY¥TWP_HTSYNSZJI_LWT¥NSL_XNLSNÜª-or sub-regional alliances, which have an impact on our WITH OUR STAKEHOLDERS HFSYQ^_T[JW_YMJ_UFXY_^JFW__WJÜ«JHYNSL_TZW_HTRRNYRJSY_ company’s operations. to our global stakeholder engagement strategy. In 21 DEPENDING ON THE LINE countries, our Public Affairs executives are taking the OF BUSINESS OPERATING QJFI_TS_JSLFLNSL_¥NYM_LT[JWSRJSY_TKÜªHNFQX__¥TWPNSL_ IN A GIVEN LOCATION. with business associations, and collaborating with NGOs and academics, among other activities. 62 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business Environment partners PARTNERSHIPS TOWARD SUSTAINABLE DEVELOPMENT We work closely with several partners to protect the Consistent with our commitment to work as One CEMEX, collaboration environment and biodiversity of the countries in which across external and internal boundaries is crucial to our contribution to the we operate by engaging in fruitful partnerships with 17 UN SDGs. global, national, and local organizations. Our global partnerships are a key success factor in the meaningful role we For more than two decades, we have actively spread a play to positively impact society through our collaborative efforts and our abil- culture of appreciation and respect for nature among ity to transform societal challenges into business opportunities that generate our company, our stakeholders, and the global compositive, long-lasting impact. munity. Indeed, we have been honored to work with over 20 conservation NGOs in the past 25 years. At a global level, we cooperate closely with UNESCO, BEST PRACTICES Wild Foundation, Birdlife International, Wildlife Conservation Society, World Habitat Council, Wildilfe Habitat WE WORK CLOSELY WITH Council (WHC), Conservation International, and the SEVERAL PARTNERS International Union for Conservation of Nature (IUCN). These projects have led to a series of conservation TO PROTECT THE ENVIRONMENT and nature books that have proved widely successful. ENVIRONMENT AND BIODIVERSITY. Knowledge and learning partners We often leverage the knowledge and expertise from our partnerships with academic and research institutions. KNOWLEDGE In 2013, we began a productive collaboration with the Social impact partners Earth Engineering Center of Columbia University and The Through cooperation, we can achieve better results City College of New York to conduct a yearlong study on through the co-creation of value for society. the life-cycle effects of alternative fuels in cement manufacturing. Focused on our waste combustion technol- Our internal collaboration between areas has enabled ogies, the study included multiple visits to our cement a variety of projects to thrive. Moreover, our more than SOCIAL 500 partnerships and strategic alliances worldwide plants in the U.S. and Mexico, as well as a thorough analysis of operating data. The study concluded that the have proven a key success factor in multiplying our use of fuels derived from municipal solid wastes (MSW) positive impact on society. These collaborative allianc-in cement production reduces greenhouse gas emissions es have made possible joint projects, best practices documentation, and pilots of socially innovative solu- XNLSNÜªHFSYQ^_HTRUFWJI_¥NYM_YMJ_ZXJ_TK_MNLM_VZFQNY^_HTFQ_ due to the biogenic content of MSW-derived fuels. tions throughout different lines of action: resiliency, We continue to support the Massachusetts Institute environment, education, social integration, health, of Technology (MIT) Concrete Sustainability Hub women’s empowerment, employment opportunities, (CSHub). By conducting ongoing research, the mission inclusive businesses, affordable housing, volunteering, and CEMEX Foundation activities. CEMENT AND CONCRETE PROMOTION of the MIT CSHub is to develop breakthroughs that will achieve sustainable and durable homes, buildings, and Our capacity to develop and continually strengthen infrastructure through advances in concrete technol- partnerships is key to our ability to face daily societal ogy. MIT results show that inter-industry competition challenges and transform them into business opportu-means lower prices for both concrete and asphalt and nities that generate positive long-lasting impact. YMFY_F_IN[JWXNÜªJI_SJY¥TWP_UWT[NIJX_GJYYJW_UJWKTWRFSHJ__ 63 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-40, GRI 102-42, GRI 102-43, GRI 102-44 2.4 Sustainability is fully embedded in our business STAKEHOLDER ENGAGEMENT AND COMMUNICATION MECHANISMS CEMEX has established several communications mechanisms for our most important stakeholder groups to maintain an open channel of communication. STAKEHOLDERS KEY CONCERNS COMMUNICATION CHANNELS AND FREQUENCY OUTCOMES TOP MANAGERS AND • Health and safety • Monthly newsletter • Worldwide permanent efforts to reach our zero fatalities and zero injuries • Company’s economic performance in mid and long term • Quarterly internal magazines goal EMPLOYEES • Customer engagement and satisfaction • Periodic site visits/dialogue sessions with management • Better understanding of employees needs and professional growth Career growth and development Periodic town halls and webcasts expectations • • • Ongoing leadership engagement and communications, Shift (intranet), email, on-site, message boards, and training programs • Annual performance appraisal mechanisms and dialogues • Engagement survey (biennially) CLIENTS • Customer engagement and satisfaction • Ongoing customer relationship management through sales • Customer centricity strategy • Company’s economic performance in mid and long term representative • Clear understanding of our customers’ needs and concerns • Quality products, services and solutions • Annual commercial events • Sustainability management practices • Annual customer-satisfaction surveys • Customer service centers and help lines SUPPLIERS • Health and safety • Daily procurement interactions • CEMEX Supplier Sustainability Program • Company’s economic performance in mid and long term • Ongoing capacity building programs (i.e., Supplier portal) • Inclusion of human rights, labor, antitrust and sustainability clauses in our • Fair business conditions contracts and purchase orders • Supplier sustainability guidance • Sustainability management practices • Promotion of local suppliers NGOS AND ACADEMIC • Quarry rehabilitation, biodiversity preservation and ecosystem • Annual integrated report and conservation books • Knowledge generation and sharing management • 5WTOJHY_XUJHNÜªH_FSI_UFWYSJWXMNU_HTQQFGTWFYNTS • Strategic partnerships and alliances to multiply our efforts and achieve our INSTITUTIONS • Company’s economic performance in mid and long term goals COMMUNITIES • Company’s economic performance in mid and long term • Ongoing one-to-one meetings with community leaders, government • Creation of social and inclusive businesses • Environmental impact mitigation and management TKÜªHNFQX_FSI_TWLFSN_FYNTSX • Generation of empowerment and • Health and safety • Quarterly community advisory panels, dialogue sessions and town hall capacity-building meetings • Improvement to community infrastructure and well-being • Human Rights • Annual open house days at operating sites • Development of learning opportunities • Quarry rehabilitation, biodiversity preservation and ecosystem • management Ongoing educational programs on sustainability and capacity and skills • Open communication and feedback training • Transparent communication Contribution to community well-being and development • Participation in local career events • Local employment opportunities • Development of community infrastructure, volunteering and social • investment initiatives • Development of inclusive business programs ANALYSTS, INVESTORS, • Company’s economic performance in mid and long term • Regular meetings, webcasts and conference calls • :SIJWXYFSINSL_TK_(*2*=_ÜªSFSHNFQ_UTXNYNTS__UJWKTWRFSHJ_FSI_GZXNSJXX_ • Corporate Governance • 6ZFWYJWQ^_ÜªSFSHNFQ_ZUIFYJX_FSI_LZNIFSHJ perspectives and risks SHAREHOLDERS • Environmental, Social and Governance (ESG) disclosure and • &SSZFQ_NSYJLWFYJI_WJUTWY__FSSZFQ_WJUTWYX__FSI_RFSIFYTW^_ÜªQNSLX_ • Understanding of management and corporate ESG practices performance • Ongoing website updates and press releases • Annual CEMEX Day investor event LOCAL, NATIONAL AND • Environmental impact mitigation and management • Annual integrated report and conservation books • Collaboration and communication with governments and regulatory bodies REGIONAL GOVERNMENTS • Company’s economic performance in mid and long term • Ongoing public policy discussions • Successful adaptations to new local, national and regional regulations AND REGULATORY BODIES • Health and safety • Long-term partnerships • Climate change and CO2 emissions policy • Periodic meetings and working groups • Infrastructure and housing solutions • Periodic plant visits • Local employment opportunities • Events and conferences BUSINESS ASSOCIATIONS • Active engagement and guidance • Periodic meetings • Development of coordinated initiatives with trade associations AND TRADE • Annual conferences • Best practices sharing ORGANIZATIONS • Ongoing working groups • Ongoing research studies 64 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business SUPPLIER RELATIONSHIP MANAGEMENT we include Human Rights, Labor, Antitrust, and Sustainability clauses in contracts and purchase orders. Our progress in supplier sustainability engagement We continue to develop a strong relationship with our A third-party evaluator performs this assessment supplier network. Since 2010, our Supplier Sustainabil- based on ISO 26000, covering Social, Environmental, ity Program has made an extensive commitment to Health & Safety (H&S), Business Ethics, Stakeholder sustainability across our value chain, communicating Relationships, and Financial Performance standards. and promoting responsible practices. &KYJW_TZW_XZUUQNJWX_FWJ_J[FQZFYJI__YMJ_XUJHNFQN_JI_ÜªWR_ with which we have partnered analyses the informa-Our 2020 goal is to evaluate at least 55% of our com-tion provided and prepares a consolidated report, pany’s procurement and energy spends. By the close NSHQZINSL_ÜªSINSLX_FSI_HTSHQZXNTSX_KWTR_YMJ_FXXJXX-of 2017, we reached 25%. During 2017, almost 1,300 RJSY__NIJSYNÜªJI_TUUTWYZSNY^_FWJFX__FSI_F_HQJFW_FHYNTS_ suppliers were assessed using sustainability criteria. plan to close the gaps. This evaluation is periodically Additionally, to reinforce our sustainability expectations, OUR SUPPLIER SUSTAINABILITY updated, and suppliers are expected to continuously PROGRAM INCLUDES H&S, COMMUNITY improve their score. This grade is integrated into the supplier’s scorecard to track and reward suppliers that RELATIONS, HUMAN RIGHTS, EMPLOYEE demonstrate advanced sustainability practices. DEVELOPMENT AND DIVERSITY, AND Top Performing Suppliers In Sustainability ENVIRONMENTAL COMPLIANCE, AMONG This year, we want to recognize the following compa- THE EVALUATION CRITERIA. nies for their outstanding performance and high level of engagement in their sustainability practices: i Implementos y Maquinarias C. por A. i Wartsila Colombia S.A. i Hays Specialist Recruitment Ltd. SUPPLIER SUSTAINABILITY ENGAGEMENT PROGRESS i Program implemented i Pilot suppliers evaluated by a i i Evaluation of suppliers Joined the UN Global Compact Defined yearly targets to i third party on Corporate Social covering 25% of target Advisory Group on Supply Chain Responsibility maturity assess suppliers spend Sustainability Joined the Cement Sustain- i 250 suppliers invited i i Developed Sustainability i Most countries started supplier ability Initiative’s (CSI) Supply i Evaluation of suppliers Questionnaire with different “self assessments” Chain covering 8% of target spend third party evaluators < 2009 2010 2011 2013 2014 2015 2016 2017 i Identification of best i Implemented “Code of i Global contract with i Evaluation of suppliers practices in CEMEX Conduct when Doing AFNOR to evaluate covering 17% of target countries Buisness with Us” suppliers spend i Program validated by i Defined a 2020 global- i Monitoring yearly Corporate Sustainability target to assess 55% of objectives procurement spend 65 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 2.4 Sustainability is fully embedded in our business 2018 Suppliers Global Events Our Supplier of the Year program aims to recognize We are constantly evolving in order to become more suppliers for their contribution to our businesses by ENHANCING OUR SUPPLIERS’ Ü«J]NGQJ_NS_TZW_TUJWFYNTSX__RTWJ_HWJFYN[J_NS_TZW_HTR- IJQN[JWNSL_UWTÜªYFGQJ_FSI_NSST[FYN[J_XTQZYNTSX_FSI_XJW- SUSTAINABILITY mercial offerings, more sustainable in our use of vices to CEMEX and our customers. WJXTZWHJX__RTWJ_JKÜªHNJSY_NS_TZW_HFUNYFQ_FQQTHFYNTS__FSI_ We measure and strengthen the maturity of more innovative in conducting our global business. We our supply network’s sustainability, providing a believe that fostering innovation alongside our suppli- clear understanding of the basic sustainability ers is fundamental: a win-win process that promotes requirements for our suppliers. HTSYNSZTZX_NRUWT[JRJSY_KTW_TZW_XZUUQ^_HMFNS__GJSJÜªY-ing both CEMEX and our suppliers. Our sustainability value statements are includ- Through the 2018 Global Edition of INTEGRATE your ed in our Human Rights Policy, Code of Con-ideas, suppliers can share with us one or several trans- duct when Doing Business with Us, and Code forming ideas. of Ethics. The program recognizes four categories: 5ZWUTXJ_FSI_GJSJÜªYX HEALTH AND SAFETY: Strong commitment to safe-i i Strengthen collaboration ty with Zero4Life mindset, investing in and imple- Promote innovation as a win-win process menting a formal, measurable safety program. i i Generate new thinking processes i SUSTAINABILITY: Supplier with demonstrated leadership and outstanding performance on Suppliers i Improve supply chain practices Evaluation Program. i Contribute to cost-reduction strategies i INNOVATION: Outstanding performance in the i Replicate winning ideas across CEMEX Promote the supplier’s brand name throughout introduction of new products or services to meet i CEMEX’s current and future business needs. CEMEXoperations i EXCELLENCE: Provides competitive advantage i Provide value for their clients. by exceeding cost performance goals (technology, i Enhance the quality and image of their company. assistance, delivery, payment terms, etc.) and objectives for products or services. OUR SUPPLIER The suppliers with outstanding results in each category are recognized with a special award. The one with SUSTAINABILITY PROGRAM the highest score across all categories obtains the HAS MADE AN EXTENSIVE main prize as Supplier of the Year. COMMITMENT TO SUSTAINABILITY ACROSS OUR VALUE CHAIN. 66 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3 GOVERNANCE Committed to the highest standards CASA NIANIS, BOGOTA, COLOMBIA 67 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.1 Corporate governance 15 MEMBERS COMPOSE CEMEX’S BOARD OF DIRECTORS; NINE OF THEM QUALIFY CEMEX’s Board of Directors and management are committed to maintaining the AS INDEPENDENT DIRECTORS. highest standards of corporate governance. As a public company, it is imperative YMFY_¥J_PJJU_TZW_NS[JXYTWX_KZQQ^_NSKTWRJI_TK_FQQ_FHYN[NYNJX_FSI_JSXZWJ_TZW_ÜªSFSHNFQ_ disclosures meet the highest ethical standards. Our corporate governance practices are governed by Although our Board of Directors is responsible for BOARD OF DIRECTORS our bylaws and all applicable provisions mainly in both supervising the company’s overall operation, all CE-Mexican and U.S. securities laws. We adhere to all ap- MEX employees play a critical role in enforcing good Non-Independent Directors plicable Mexican regulations, as well as NYSE and U.S. LT[JWSFSHJ_FSI_ÜªSFSHNFQ_WJUTWYNSL_UWFHYNHJX__<J_MF[J_ Rogelio Zambrano Lozano Securities and Exchange Commission requirements created a collaborative environment that includes: Executive Chairman of the Board for foreign private issuers, including the Sarbanes-Ox- 1) A system to ensure relevant information reaches ley Act of 2002 (SOX). Also, we voluntarily comply with senior management in a timely manner; 2) A system Fernando A. González Olivieri the Mexican Code of Best Practices, which provides KTW_FSTS^RTZXQ^_FSI_HTSÜªIJSYNFQQ^_HTRRZSNHFYNSL_YT_ Tomás Milmo Santos recommendations for better corporate practices for the audit committee complaints and concerns re- Ian Christian Armstrong Zambrano listed companies in Mexico. Beyond compliance and garding accounting and audit issues; 3) A process for Marcelo Zambrano Lozano strict adherence to the law, we manage CEMEX with FSTS^RTZXQ^_FSI_HTSÜªIJSYNFQQ^_XZGRNYYNSL_HTRUQFNSYX_ Ramiro Gerardo Villarreal Morales the utmost integrity. Everything we do rests on this related to unethical conduct and misuse of assets; and foundation. 4) A task force to follow legal requirements and best Independent Directors corporate-governance practices and, when appropri- Armando J. García Segovia The CEMEX Board of Directors is composed of quali-ate, propose further improvements. Our Code of Ethics Rodolfo García Muriel ÜªJI_INWJHYTWX_¥MT_UWT[NIJ_FUUWTUWNFYJ_T[JWXNLMY__FSI_ includes directors that meet the independence criteria WJÜ«JHYX_YMJ_WJVZNWJRJSYX_TK_84=_ Roberto Luis Zambrano Villarreal Dionisio Garza Medina under applicable laws. In addition, one member of our José Manuel Rincón Gallardo Purón FZINY_HTRRNYYJJ_RJJYX_YMJ_WJVZNWJRJSYX_TK_F_Ñ¦ÜªSFS- Francisco Javier Fernández Carbajal HNFQ_J]UJWYÑ§_FX_IJÜªSJI_G^_84=_ Armando Garza Sada In 2017, the Board, led by Chairman Rogelio Zambrano, David Martínez Guzmán included 15 directors, nine of whom qualify as inde- Everardo Elizondo Almaguer UJSIJSY_INWJHYTWX_FHHTWINSL_YT_HWNYJWNF_XUJHNÜªJI_ZSIJW_ Mexican Securities Law. During the year, the board met Secretary four times to report on a wide range of relevant issues, Roger Saldaña Madero NSHQZINSL_XZXYFNSFGNQNY^_WJQFYJI_HTSHJWSX_FSI_ÜªSFSHNFQ_ (Not a member of the Board of Directors) strategy, with average board meeting attendance of approximately 95%. Alternate Secretary René Delgadillo Galván (Not a member of the Board of Directors) 68 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.1 Corporate governance BOARD OF DIRECTORS AUDIT COMMITTEE SUSTAINABILITY COMMITTEE AND FINANCE COMMITTEE CORPORATE PRACTICES CEO Fernando A. González PLANNING & EVP STRATEGIC BUSINESS EVP ADMINISTRATION & EVP SUSTAINABILITY & OPERATIONS EVP FINANCE EVP INVESTOR RELATIONS, EVP CORPORATE DEVELOPMENT ORGANIZATION DEVELOPMENT (CFO) COMMUNICATIONS & PA AFFAIRS & ERM Juan Pablo San Agustín Luis Hernández Jesús González José Antonio González Maher Al-Haffar Mauricio Doehner • Strategic Planning • Human Resources • Operations & Technology • Legal • Investor Relations • Corporate Affairs • Business Development • Process & IT • Energy • Taxes • Communications • Enterprise Risk • CEMEX Ventures • Global Services • Sourcing • Controllership • Public Affairs Management • Vendor Management • R&D & IP Management • Debt Funding • Corporate Social • NEORIS • Health & Safety • Equity, Risk & Fin. Plan. Responsibility • Sustainability • Corporate Treasury • Global Security • Insurance & Risk Mgmt. CEMEX MEXICO PRESIDENT CEMEX USA PRESIDENT CEMEX SCA&C PRESIDENT CEMEX EUROPE PRESIDENT CEMEX AMEA PRESIDENT Juan Romero Ignacio Madridejos Jaime Muguiro Jaime Elizondo Joaquín Estrada • Mexico • United States • Colombia • UK • Philippines • Customer Centricity • Aggregates • Panama • Germany & Central • Egypt • Digital Commercial Model • Dominican Republic Europe • Israel • TCL Group • Czech Republic • United Arab Emirates • Costa Rica • Spain • Malaysia • Nicaragua & El Salvador • France • Global Trading • Puerto Rico • Poland • Supply Chain • Guatemala • Croatia • Peru, Brazil & Argentina • Latvia • Ready-Mix and Grow • Cement Operations the Pie As of December 31, 2017. 69 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.1 Corporate governance AUDIT COMMITTEE CORPORATE PRACTICES AND SUSTAINABILITY COMMITTEE FINANCE COMMITTEE The Audit Committee is responsible for evaluating our The Corporate Practices and Finance Committee is The Sustainability Committee is responsible for NSYJWSFQ_HTSYWTQX_FSI_UWTHJIZWJX_FSI_NIJSYNK^NSL_IJÜª- WJXUTSXNGQJ_KTW_J[FQZFYNSL_YMJ_MNWNSL__ÜªWNSL_FSI_HTR- ensuring sustainable development in our strategy; ciencies; following up with corrective and preventive UJSXFYNTS_TK_TZW_(MNJK_*]JHZYN[J_4KÜªHJW _WJ[NJ¥NSL_YMJ_ XZUUTWYNSL_TZW_‘TFWI_TK_)NWJHYTWX_NS_KZQÜªQQNSL_NYX_ measures in response to any non-compliance with hiring and compensation policies for our executive responsibility to shareholders regarding sustainable our operation and accounting guidelines and policies; TKÜªHJWX _WJ[NJ¥NSL_WJQFYJI_UFWY^_YWFSXFHYNTSX _WJ[NJ¥- growth; evaluating the effectiveness of sustainabil-evaluating the performance of our external auditors; ing policies regarding the use of corporate assets; ity programs and initiatives; providing assistance to describing and valuing non-audit services performed reviewing unusual or material transactions; evaluating TZW_(MNJK_*]JHZYN[J_4KÜªHJW_FSI_XJSNTW_RFSFLJRJSY_ G^_TZW_J]YJWSFQ_FZINYTWX _WJ[NJ¥NSL_TZW_ÜªSFSHNFQ_ ¥FN[JWX_LWFSYJI_YT_TZW_INWJHYTWX_TW_J]JHZYN[J_TKÜªHJWX_ team regarding the strategic direction on sustain- XYFYJRJSYX _FXXJXXNSL_YMJ_JKKJHYX_TK_FS^_RTINÜªHF- regarding seizure of corporate opportunities; identify- ability; and endorsing our model of sustainability, tions to the accounting policies approved during any ing, evaluating and following up on the operating risks priorities, and key indicators. During 2017, the Sus-ÜªXHFQ_^JFW _FSI_T[JWXJJNSL_RJFXZWJX_FITUYJI_FX_F_ affecting the company and its subsidiaries; evaluating tainability Committee met four times with average result of any observations made by our shareholders, YMJ_HTRUFS^Ñ£X_ÜªSFSHNFQ_UQFSX _WJ[NJ¥NSL_YMJ_HTRUF- meeting attendance of approximately 85%. INWJHYTWX__J]JHZYN[J_TKÜªHJWX__JRUQT^JJX_TW_FS^_YMNWI_ S^Ñ£X_ÜªSFSHNFQ_XYWFYJL^_FSI_NYX_NRUQJRJSYFYNTS _FSI_ parties with respect to accounting, internal controls, reviewing mergers, acquisitions, market information, and internal and external audit, as well as any com- FSI_ÜªSFSHNFQ_UQFSX__NSHQZINSL_ÜªSFSHNSL_FSI_WJQFYJI_ plaints regarding management irregularities, including party transactions. During 2017, the Corporate Prac- FSTS^RTZX_FSI_HTSÜªIJSYNFQ_RJYMTIX_KTW_FIIWJXXNSL_ tices and Finance Committee met six times with concerns raised by employees and analyzing the risks meeting attendance of 100%. NIJSYNÜªJI_G^_(*2*=__8_&_’__IJ_(_;_Ñ£X_NSIJUJSIJSY_ auditors, accounting, internal control and process assessment areas. During 2017, the Audit Committee met three times with meeting attendance of 100%. PRESIDENT PRESIDENT PRESIDENT José Manuel Rincón Gallardo Purón Dionisio Garza Medina Armando J. García Segovia Roberto Luis Zambrano Villarreal Francisco Javier Fernández Carbajal Francisco Javier Fernández Carbajal Rodolfo García Muriel Rodolfo García Muriel Ian Christian Armstrong Zambrano Francisco Javier Fernández Carbajal Armando Garza Sada Marcelo Zambrano Lozano As of December 31, 2017 70 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.1 Corporate governance EXECUTIVE COMMITTEE From left to right: Mauricio Doehner, Jesús González, Luis Hernández, Maher Al-Haffar, Jaime Elizondo, Juan Romero, Fernando A. González, Ignacio Madridejos, José Antonio González, Joaquín Estrada, Jaime Muguiro, Juan Pablo San Agustín. FERNANDO A. GONZÁLEZ (63) MAHER AL-HAFFAR (59) MAURICIO DOEHNER (43) JAIME ELIZONDO (54) (MNJK_*]JHZYN[J_4KÜªHJW Executive Vice President of Investor Relations, Executive Vice President of Corporate Affairs and President CEMEX Europe Corporate Communications and Public Affairs Enterprise Risk Management Since joining CEMEX in 1989, Fernando A. González Jaime Elizondo joined CEMEX in 1985, and has held has held several senior management positions, Maher Al-Haffar joined CEMEX in 2000, and has Mauricio Doehner joined CEMEX in 1996, and has several executive positions, including head of opera-including Corporate Vice President of Strategic Plan- held several executive positions, including Manag- held several executive positions in Strategic Plan- tions in Panama, Colombia, Venezuela, and Mexico, ning, head of operations in Venezuela, President of ing Director of Finance, Head of Investor Relations, ning and Enterprise Risk Management at CEMEX and more recently as President of the CEMEX South, CEMEX Asia, President of the CEMEX South America and Vice President of Investor Relations, Corporate Europe, Asia, the Middle East, South America, and Central America and the Caribbean region. He holds and the Caribbean region, President of the CEMEX Communications and Public Affairs. Currently, as part Mexico. He has also worked in the public sector, a BS in Chemical and Systems Engineering and an Europe, Middle East, Africa, Asia and Australia region, of his role, he is also leader of the digital marketing at the Mexican Presidency. Mauricio holds a BA in MBA, both from Tecnológico de Monterrey. and Executive Vice President of Strategic Planning, effort at CEMEX and is member of the NYSE Advisory Economics from Tecnológico de Monterrey, an MBA Finance and Administration (CFO). Fernando was Board. Before joining CEMEX, Maher spent nineteen KWTR_.*8*_.5&)*__FSI_F_5WTKJXXNTSFQ_(JWYNÜªHFYNTS_NS_ FUUTNSYJI_(MNJK_*]JHZYN[J_4KÜªHJW_NS_______-J_FQXT_ years with Citicorp Securities Inc. and with Santander Competitive Intelligence from the FULD Academy of serves in the Board of Directors of Grupo Cementos Investment Securities, as an investment banker and Competitive Intelligence in Boston, Massachusetts. de Chihuahua, Axtel, and Tecnológico de Monterrey’s capital markets professional. Maher holds a BS in Business School. He earned his BA in Administration Economics from the University of Texas, and a Mas-and an MBA, both from Tecnológico de Monterrey. ter’s degree in International Relations and Finance from Georgetown University. 71 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.1 Corporate governance JOAQUÍN ESTRADA (54) LUIS HERNÁNDEZ (54) JUAN ROMERO (61) President CEMEX Asia, Middle East and Africa Executive Vice President of Administration and President CEMEX Mexico Organization Joaquín Estrada joined CEMEX in 1992, and has Juan Romero joined CEMEX in 1989, and has held held several executive positions, including head of Luis Hernández joined CEMEX in 1996, and has held several senior positions, including head of operations operations in Egypt and Spain, and more recently as senior management positions in Strategic Planning in Colombia and Mexico, as well as President of the President of CEMEX Asia. Currently, as President of and Human Resources. In his current position, he CEMEX South America and the Caribbean region, and the CEMEX Asia, Middle East and Africa region, he heads the areas of Organization and Human Re- of the CEMEX Europe, Middle East, Africa and Asia re-is also responsible of Global Trading. Joaquín holds sources, Processes and IT, Digital Innovation, Global gion. Juan Romero holds BA and BS degrees in Law, a BA in Economics from the University of Zaragoza, 8JW[NHJ_4WLFSN_FYNTS__;JSITW_2FSFLJRJSY_4KÜªHJ__ Economics and Management from the University of Spain, and an MBA from the Instituto de Empresa. as well as Neoris. Luis holds a BS in Civil Engineer- Comillas, Spain. ing from Tecnológico de Monterrey, and a Master’s JESÚS GONZÁLEZ (52) degree in Civil Engineering and an MBA, both from JUAN PABLO SAN AGUSTÍN (49) the University of Texas at Austin. Executive Vice President of Sustainability and Executive Vice President of Strategic Planning and Operations Development New Business Development IGNACIO MADRIDEJOS (52) Jesús González joined CEMEX in 1998, and has held Juan Pablo San Agustín joined CEMEX in 1994, and President CEMEX USA several senior positions, including Corporate Direc- has held senior positions in the Strategic Planning, tor of Strategic Planning, Vice President of Strate- Ignacio Madridejos joined CEMEX in 1996, and has Continuous Improvement, e-Business, and Market-gic Planning in CEMEX USA, President of CEMEX held senior management positions in the Strate- ing areas. Currently, he is also President of CEMEX Central America, and more recently as President gic Planning area, as well as head of operations in Ventures. He holds a BS in Administration from the of CEMEX UK. In his current position, Jesús heads Egypt, Spain, Western Europe, and more recently, Metropolitan University, Spain, and an MBA from the the Health and Safety, Operations and Technology, Northern Europe. Ignacio holds a MSc in Civil Engi- Instituto de Empresa. Energy, Procurement, Sustainability, and Research neering from the Polytechnic University of Madrid, and Development areas. He holds a MSc in Naval and an MBA from Stanford University. Engineering from the Polytechnic University of Ma-drid and an MBA from IESE—University of Navarra, JAIME MUGUIRO (49) Barcelona. President CEMEX South, Central America and the Caribbean JOSÉ ANTONIO GONZÁLEZ (47) Jaime Muguiro joined CEMEX in 1996, and has held Executive Vice President of Finance and Chief several executive positions in the Strategic Plan- +NSFSHNFQ_4KÜªHJW ning, Business Development, Ready-Mix Concrete, José Antonio González joined CEMEX in 1998, and Aggregates, and Human Resources areas, and also has held several executive positions in the Finance, headed CEMEX operations in Egypt and our opera-Strategic Planning, and Corporate Communications tions in the Mediterranean region. He holds a BA in and Public Affairs areas. In his current position, José Management from San Pablo CEU University, Spain, Antonio heads CEMEX’s Finance, Legal, Control- a Law degree from the Universidad Complutense of lership, Tax, and Process Assessment areas. Jose Madrid, and an MBA from the Massachusetts Insti-Antonio holds a BS in Industrial Engineering from tute of Technology. Tecnológico de Monterrey, and an MBA from Stan-ford University. 72 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.2 Integrity and compliance STATISTICS ETHOSLINE REPORT Our governance and management practices are guided by our relentless commitment to creating long-term shareholder value. 568 STRENGTHENING BUSINESS ETHICS AND Our reporting mechanism – ETHOSline If there are concerns or suspected violations pertain- 453 TRANSPARENCY OUR ETHOSLINE ing to ethics, governance or compliance, it’s import- 359 Acting with Integrity is key to our long-term success. PROVIDES AN ONLINE 9MFY_NX_¥M^_NY_NX_TSJ_TK_YMJ_Üª[J_HTWJ_[FQZJX_IWN[NSL_TZW_ ant that our employees, our stakeholders, and the company forward. general public have a trusted place to which they can PORTAL AND PHONE turn. Managed by an autonomous third party, our LINE FOR SENDING A culture of integrity is critical to achieving our sus- ETHOSline provides an online portal and phone line for COMMENTS, REQUESTING tainable growth. High levels of trust, together with a sending comments, requesting advice, and submitting complaints on these topics. Accessible through our ADVICE, AND SUBMITTING strong business reputation, make it easier to operate; help attract and retain our people, customers, and HTRUFS^_¥JGXNYJ__YMNX_XJHZWJ__HTSÜªIJSYNFQ__FSI_NSIJ- COMPLAINTS. suppliers; contribute to good relationships in our local pendent portal is available 24 hours a day, seven days 2015 2016 2017 HTRRZSNYNJX _FSI_UF[J_YMJ_¥F^_YT_HTSÜªIJSYQ^_JSYJW_ a week. It is open and free for all to use. new markets. Compliance is an essential element of Our main goal is to get to the bottom of every report; TZW_HTRUFS^Ñ£X_HZQYZWJ_TK_NSYJLWNY^ÑŸWJVZNWNSL_WJXUTSXN-all cases are investigated without exceptions. We carry ble conduct from all of our employees, directors, and out the investigation, handle it according to our ETHOS ETHICS-RELATED REPORTED CASES third-party business partners in accordance with all Manual, and if applicable, apply consequences if our applicable laws, internal codes, and policies. Code of Ethics is violated. TOTAL CEMEX’s Code of Ethics Overall, from a total of 568 cases reported through our REPORTED CASES We established our Code of Ethics and Business Con- TKÜªHNFQ_WJUTWYNSL_HMFSSJQX_NS___________¥JWJ_HQTXJI__TK_ duct so that all of our employees abide by the same which 213 were found to be true and 185 disciplinary Human Resources, Diversity, and 244 high standards of conduct. The Code governs our re- actions were taken. From the true cases reported, 73 Workplace Respect lationships with all of our stakeholders and addresses employees were dismissed as a result of investigations. Business Integrity 221 anti-bribery, antitrust compliance, prevention of money Business ethics training and communication Misuse/Misappropriation of Corporate laundering, related-person transactions, workplace 56 Our employees are informed of CEMEX business Assets MJFQYM_FSI_XFKJY^__JS[NWTSRJSYFQ_WJXUTSXNGNQNY^__HTSÜª- IJSYNFQNY^_YJWRX__HTSÜ«NHYX_TK_NSYJWJXY__ÜªSFSHNFQ_HTSYWTQX_ ethics principles in various ways, including our Code of Health & Safety issues 47 and records, and preservation of assets. Through our Ethics, internal communications and displays, face- TOTAL 568 local ethics committees, training programs, global to-face and online legal training through our intranet integrity campaigns, and secure internal communica- Policy Center, legal audits, relevant global policies, and tions channels, we create awareness and enforcement other related activities. In 2017, close to 550 com-of the Code. Moreover, we periodically evaluate its munications campaigns to strengthen employees’ provisions and update it as needed. awareness of business ethics and human rights issues were deployed across our business units, including our corporate headquarters, with each of them reaching 73 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.2 Integrity and compliance TZW_TSQNSJ_FSI_TKÜ«NSJ_FZINJSHJX_JRUQT^JJX__9MJXJ_ As part of the program, in 2017, we conducted 115 campaigns also help to promote our company values internal legal audits in 9 countries. Our Code of Ethics and to inform our employees about unacceptable WJÜ«JHYX_YMJ_WJVZNWJRJSYX_TK_YMJ_8FWGFSJX_4]QJ^_&HY_ 2017 BUSINESS ETHICS AND HUMAN behavior such as discrimination, improper treatment, of 2002 (SOX). We are in compliance with the applica- RIGHTS RELATED TRAINING mobbing, theft, and workplace harassment, as well as ble sections of SOX, including section 404. TOTAL to reinforce our institutional reporting mechanisms. TRAINING Our commitment to respect human rights HOURS During 2017, our employees received training relat- CEMEX respects all human rights, including those set ed to business ethics, dedicating more than 12,300 forth in the International Bill of Human Rights, as well Competition and Antitrust 7,614 ETHOS Awareness 1,302 hours to subjects related to Business Ethics and as the principles concerning fundamental labor rights Human Rights. set out in the International Labour Organization’s Dec-Conflict of interest 1,282 laration on Fundamental Principles and Rights at Work. In addition, more than 600 employees, including top Corruption and Bribery 750 management, participated in our ETHOS Awareness We also embrace the UN Guiding Principles on Busi-sessions, designed and launched in 2017 to create ness and Human Rights, and as a signatory and active Code of Ethics and Business Conduct 514 awareness about our ethics program and its composi- participant in the UN Global Compact, we align our Workplace behavior, harassment tion, the expected way in which each employee should operations and strategies with the 10 Principles es-390 and discrimination daily embrace integrity, as well as discuss possible tablished around Human Rights, Labor, Environment, Other 464 scenarios. Participants from different organizational and Anti-Corruption. In addition, we annually submit levels and backgrounds were able to have an open an Advanced Communication of Progress (COP) to the TOTAL 12,316 conversation about ethical topics. Global Compact, demonstrating our strong commitment to adherence with these principles. CEMEX Global Compliance Program These international standards and principles shaped our CEMEX abides by fair trade and competition principles, Corporate Human Rights Policy, signed by our CEO in FSI_¥J_IT_STY_YTQJWFYJ_UWNHJ_Üª]NSL__RFWPJY_FQQTHFYNTS__ 2014. During 2017 we undertook to enhance our Cor-predatory pricing or other illegal market practices. Our porate Human Rights Policy, which is expected to be Anti-Bribery/Anti-Corruption Global Policy, Global Anti-signed by our CEO during 2018. Our enhanced Human YWZXY_5TQNH^__,QTGFQ_(TSÜ«NHY_TK_.SYJWJXY_5TQNH^__7JQFYJI_ -Person Transactions Policy, and Insider Trading Policy 7NLMYX_5TQNH^_¥NQQ_WJFKÜªWR_TZW_HTRRNYRJSY_YT_YMJ_UWTRT tion of and respect for human rights across our world-outline our strict procedures and commitment to global wide operations, local communities in which we operate, expectations and standards. and throughout our supply chain. Additional Corporate To further promote our employees act in a manner Policies that support our commitment to Human Rights consistent with our values, CEMEX’s Compliance De- include our Code of Ethics and Business Conduct, Sup-partment permanently implements our Global Compli- pliers Code of Conduct when Doing Business with Us, ance Program (GCP). With a worldwide focus, our GCP Health and Safety Policy, Stakeholder Engagement Pol-is based on relevant policies such as insider trading, icy, Environmental Policy, Water Policy, and Biodiversity FSYNHTWWZUYNTS__FSYNYWZXY__HTSÜ«NHYX_TK_NSYJWJXY__NSKTWRF- Policy, among others. All our policies and procedures are tion retention, and privacy, among others. While the applied consistently wherever we operate by employees, scope of our GCP is global, special attention is given to suppliers, contractors and business partners. the most sensitive countries related to corruption risks in our business system process. Through this program, -ZRFS_WNLMYX_WNXPX_NIJSYNÜªHFYNTS internal legal audits and legal training for employees We identify and assess compliance and integrity risks, on these previously listed matters are conducted. including those related to human rights, through an integral due diligence approach that includes: 74 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.2 Integrity and compliance i ENTERPRISE RISK MANAGEMENT (ERM): a pro- gate, and resolve reported ethics breaches, including cess of risk detection and analysis is permanently those related to human rights. executed through a dedicated corporate function at global, regional, and local levels, enabling the deploy- i ETHOSLINE: this is another of our communication ment of corresponding monitoring, mitigation, and FSI_WJUTWYNSL_RJHMFSNXRX_YMFY_JSFGQJX_YMJ_NIJSYNÜªHF-reporting measures in a timely manner. A resulting tion of human rights related risks not only in our operations, but also in the communities in which we work. ,QTGFQ_7NXP_&LJSIF__NSHQZINSL_YTU_NIJSYNÜªJI_WNXPX__NX_ periodically presented to the Risk Management Com- CEMEX seeks to ensure that our values remain alive mittee, comprised of all of the members of CEMEX and our Code of Ethics is properly managed. There-Executive Committee. Additionally, key material risks fore, we encourage all of our employees, our stake-are evaluated and tracked by the Corporate Practices holders, and the general public to submit suggestions, and Finance Committee, composed of members of inquiries, and possible violations through ETHOSline. the Board of Directors. Moreover, other risk man- Assessing our human rights risks agement processes within CEMEX, such as internal Besides CEMEX due diligence efforts to identify hu-controls and audits, complement the ERM function. man rights risks, in 2017, we proactively conducted an i GLOBAL COMPLIANCE PROGRAM (GCP): legal internal assessment to locate potential human rights HTRUQNFSHJ_FZINYX_ Ñ¦IF¥S_WFNIXÑ§__FWJ_UJWRFSJSYQ^_ issues across all of the countries in which we have ce- WE PROACTIVELY conducted with a focus on antitrust, anti-bribery, and ment, ready-mix concrete, and aggregates operations, CONDUCTED AN insider trading issues in all of the countries in which maritime terminals and those countries where our ASSESSMENT OF we operate, especially the most sensitive in terms of QFWLJXY_HTWUTWFYJ_TKÜªHJX_FWJ_QTHFYJI__NSHQZINSL_(*2*=_ corruption risks in our business systems and pro- Global Headquarters. POTENTIAL HUMAN cesses. RIGHTS ISSUES ACROSS Structured on the basis of international standards, i ASSESSMENT OF SUPPLIERS: we partner with spe- conventions, and agreements, the CEMEX Human ALL OF OUR OPERATIONS. HNFQN_JI_NSIJUJSIJSY_ÜªWRX_YT_UJWKTWR_XZXYFNSFGNQNY^_ Rights Compliance Assessment used as fundamental assessments of our suppliers across all geographies, building blocks the Global Compact Self Assessment including the assurance and promotion of human Tool, the Human Rights Compliance Assessment rights compliance in their workforce and supply Quick Check of the Danish Institute for Human Rights, impacts associated with our organization’s core busi-chain. and the Human Rights & Business Project. Among the ness, as well as relationships linked to these activities. ASSESSMENT OF CONTRACTORS: program international standards and conventions, we reviewed For this purpose, the vulnerable groups targeted not i created to ensure those contractors with which we the UN Guiding Principles on Business and Human only included our employees, but also contractors, chil-engage are equally committed to respect human Rights, as well as the OECD Guidelines for Multination- dren, women, disabled individuals, indigenous people, rights in relation to the health and safety of their al Enterprises (MNEs) Recommendations from gov- migrant labor, and local communities surrounding our employees, clients, and the communities in which ernments to MNEs. We also took advantage of well operations. they operate. To support CEMEX in this important known GRI Standards, ISO 26000 Social Responsibility CEMEX Human Rights Compliance Assessment was program, we rely on leading global technology and Guidance Standard, and Social Accountability Interna-deployed through our Country Heads, who assigned the FUUQNHFYNTSX_IJ[JQTURJSY_ÜªWRX_ tional 8000 Standard (SA 8000). execution of the task to our business units’ local Ethics i CEMEX ETHOS COMMITTEE, GLOBAL ETHICS Coordinated by our Corporate Sustainability function, Committees working together with a team of experts COMMITTEE, AND LOCAL ETHICS COMMITTEES: a global multidisciplinary team collaborated on the responsible for these local functions: Human Resourc-these dedicated taskforces are composed of rep- questionnaire’s construction, providing input from each es, Legal, Enterprise Risk Management, Procurement, resentatives from different functions in each of area of expertise. Ultimately, CEMEX Human Rights Sustainability, Health & Safety, Communication, and So- YMJ_HTZSYWNJX_NS_¥MNHM_¥J_TUJWFYJ___9MJNW_XUJHNÜªH_ Compliance Assessment was comprised of over 100 HNFQ_7JXUTSXNGNQNY^__9MJ_UJWKTWRJI_J[FQZFYNTS_NIJSYNÜªJI_ purpose is to ensure awareness and enforcement questions focused on six main dimensions, which and assessed potential human rights issues according of CEMEX Code of Ethics. They also receive, investi- ¥JWJ_IJÜªSJI_HTSXNIJWNSL_YMJ_UTYJSYNFQ_MZRFS_WNLMYX_ to their likelihood and impact severity. 75 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.2 Integrity and compliance As a useful reference for the assessment, we con- XZQYJI_F_XJWNJX_TK_NSYJWSFYNTSFQ_WNXP_RFUXÑŸHTRUNQJI_ and published for consultation by globally recognized 1 2 TWLFSN_FYNTSXÑŸXMT¥NSL_YMJ_QJ[JQ_TK_[ZQSJWFGNQNY^_TW_ HEALTH AND SAFETY WORK-LIFE BALANCE the likelihood of human rights violations by country in areas such as working conditions, modern slavery, freedom of association, tolerance and inclusion, civil and political rights, and environmental quality. CEMEX is committed to ensuring the health, safety, CEMEX abides by the labor laws of each country in CEMEX Human Rights Compliance Assessment led to and well-being of all of its employees, customers, which we operate regarding employees’ weekly work those who visit or work on our premises, and neigh- hours. Work hours exceeding legally stated norms YMJ_T[JWFQQ_NIJSYNÜªHFYNTS_TK_YMJ_KTQQT¥NSL_XFQNJSY_MZRFS_ boring communities. Our ambitious goal is Zero4Life: are viewed as overtime, and they are respected and rights issues: zero injuries and zero fatalities. paid according to local law. In all of the countries in Health and safety which we operate, we have time attendance systems i To reach it, our company has put in place special and overtime policies. i Work-life balance health and safety precautions for pregnant women, employees with disabilities, night workers, young i Diversity and discrimination workers, and other vulnerable groups. We work to i Environmental footprint promote that all of our employees, contractors, and i Community impacts visitors are aware of the action protocol in case of +TQQT¥NSL_YMJ_ÜªSINSLX_TK_YMJ_FXXJXXRJSY__NIJSYNÜªJI_ workplace accidents and provide regular training risks were discussed with our business units’ dedicat- for this purpose. During 2017, we dedicated more ed response committees, and a basic prevention plan than 36,000 hours to health and safety training. and mitigation actions were agreed on with each of the Furthermore, we have an open-door policy for our countries. employees, contractors, and community members to communicate health and safety complaints or Mitigation and remediation actions suggestions. .IJSYNK^NSL_YMJ_YTU_Üª[J_MZRFS_WNLMYX_WNXPX_YMFY_RNLMY_ result in the most severe impacts through our activities and business relationships is a fundamental starting Through our business units, we have established fo-point to control and mitigate their possible occurrence. rums in which employees can submit suggestions and CEMEX Human Rights Compliance Assessment en- complaints regarding work-life balance. In 2017, more FGQJI_ZX_YT_INXHZXX_FSI_IJÜªSJ_F_GFXNH_FHYNTS_UQFS_G^_ than 80% of the countries in which we operate had es-country to manage the detected risks. Nonetheless, we tablished channels for employees to communicate their FWJ_¥TWPNSL_YT_KZWYMJW_IJÜªSJ_F_WTGZXY_RNYNLFYNTS_FSI_ needs and concerns regarding work-life balance and remediation plan for salient human rights issues. implemented initiatives to encourage an appropriate work-life balance based on this feedback. More than 100 initiatives to improve work-life balance were implemented across our business units in 2017, reaching almost 90% of our total employees. Examples include programs that support child and/or elderly care, allow sabbaticals, and offer parental leave and other ben- JÜªYX_XZHM_FX_Ü«J]_YNRJ__MTRJ_TKÜªHJ__¥TWP_YNRJ_WJIZHYNTS_ on Fridays, sports club memberships or discounts, and activities for families’ integration, among others. 76 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 3.2 Integrity and compliance 34 5 DIVERSITY AND ENVIRONMENTAL IMPACTS COMMUNITY IMPACTS DISCRIMINATION At CEMEX, we value diversity and promote a work- We recognize that our environmental performance Corporate Social Responsibility (CSR) is a key ele-place that is inclusive, fair, and fosters respect for all is important to our host communities, and we are ment of our sustainability and business strategy. Our employees. Hiring decisions are made without regard responsible for managing impacts associated with Community Engagement Plans contribute to the de-to gender, race, color, age, religion, mental or physical our operations. In accordance with our Environmen- velopment of long-term relationships with our stake-INXFGNQNY^__XJ]ZFQ_TWNJSYFYNTS__UTQNYNHFQ_FKÜªQNFYNTS_TW_SFYNTS_ tal Policy, we seek to avoid, prevent, mitigate, and holders, after an initial consultation to understand of origin. At all times, we treat employees with dignity remediate the environmental impacts of our activities their needs and concerns creating shared value in the and respect, including direct and indirect employees. when planning and operating our assets. communities in which we operate. As part of our mitigation actions to avoid discrimination, all of our personnel in charge of hiring employees receive training regarding our company’s non-discrimination policies. Our company’s communication materials do not use examples or illustrations that stereotype or categorize any groups of people. Furthermore, our employees receive training on how to identify and address instances of harassment in the workplace. We are dedicated to ensuring we have an ethical workplace. Therefore, we assess employees’ perceptions through surveys and annually deliver a campaign to promote ethical and expected professional behaviors. In addition, we work to uphold the principles of the United Nations Global Compact. A diverse workforce brings with it new ways of thinking, unique To this end, we provide information and workshops to For almost 20 years, our Growing platform has perspectives, and valuable ideas, all of which contrib-our communities about potential environmental risks encompassed the inception, development, and ute to our culture at CEMEX. related to our company’s processes. Local commu- promotion of social and inclusive business models nity members are also informed about our compa- that work with governments, think tanks, NGOs, ny’s grievance process and are able to anonymously low-income communities, and social entrepreneurs. submit grievances if they prefer to do so. Our inclusive and social business opportunities go above and beyond self-construction schemes that At CEMEX, minimizing our environmental impacts is allow millions of people to put a roof over their heads. an integral part of our business philosophy. We are They also tackle the many side effects of poverty, fully committed to carrying out our business activi-providing families with the space and privacy all hu-ties in an environmentally responsible and sustain-mans need to live in harmony and foster a peaceful, able manner. respectful home environment that provides children with healthy living and learning conditions. 77 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4 PERFORMANCE IN DETAIL Measuring progress on our vision ARCHEOPARK IN PAVLOV, CZECH REPUBLIC 78 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information CEMEX, S.A.B. de C.V. SELECTED CONSOLIDATED FINANCIAL INFORMATION(*) and Subsidiaries (In millions of US dollars, OPERATING RESULTS 2008 2009 2010 (I) 2011 (I) 2012 (I) 2013 (I,4) 2014 (I,4) 2015 (I,4) 2016 (I,4) 2017 (I,4) Net sales 20,131 14,544 14,021 15,215 14,984 14,815 14,975 13,726 13,352 13,672 except ADSs and per ADS (1) Cost of sales (13,735) (10,270) (10,090) (10,912) (10,548) (10,170) (10,096) (9,050) (8,570) (8,979) amounts) ,WTXX_UWTÜªY___ ________ ________ ________ ________ ________ ________ ________ ________ ________ ______ Operating expenses (4,069) (3,109) (3,083) (3,353) (3,143) (3,144) (3,241) (2,996) (2,883) (2,967) Operating earnings before other expenses, net 2,327 1,165 847 951 1,293 1,501 1,638 1,680 1,899 1,725 Other expenses, net (1,909) (407) (500) (419) (418) (378) (350) (1,646) (89) (202) Financial expense (910) (994) (1,164) (1,353) (1,408) (1,549) (1,609) (1,235) (1,148) (1,022) Financial income (expense) and other items, net (2) (1,617) (117) (41) (177) 74 134 194 (90) 240 192 Earnings (loss) before income taxes (2,031) (341) (897) (1,025) (403) (276) (105) 216 938 723 Discontinued Operations, net of tax (3,4) 187 (314) ——8 9 62 41 185 Non-controlling interest net income (5) 4 18 4 2 50 95 (85) (58) 63 75 Controlling interest net income (loss) 203 104 (1,064) (1,999) (913) (843) (490) 116 750 806 Millions of average ADSs outstanding (6,7) 838 893 1,104 1,109 1,117 1,170 1,256 1,353 1,431 1,517 Controlling interest basic earnings (losses) per ADS (4,7,8) 0.24 0.11 (0.96) (1.80) (0.82) (0.71) (0.39) 0.06 0.53 0.53 Controlling interest basic earnings (losses) per ADS from continuing operations (4,7,8) 0.02 0.49 0.41 Controlling interest basic earnings (losses) per ADS from discontinued operations (4,7,8) 0.04 0.04 0.12 Dividends per ADS (6,7,9) n.a n.a n.a n.a n.a n.a n.a n.a n.a n.a STATEMENT OF FINANCIAL POSITION INFORMATION Cash and cash equivalents 939 1,077 676 1,155 971 1,163 854 887 561 699 Net working capital (10) 1,191 946 1,512 1,697 1,530 1,591 1,377 974 382 148 Assets from operations held for sale (4) —313 1,015 70 Property, plant, and equipment, net (11) 19,671 19,776 17,902 16,787 16,582 15,764 13,767 12,428 11,107 11,815 Total assets 45,387 44,483 40,848 38,800 37,260 38,018 34,936 31,472 28,944 28,885 Liabilities from operations held for sale (4) —39 39 -8MTWY_YJWR_IJGY___TYMJW_ÜªSFSHNFQ_TGQNLFYNTSX (12) 6,934 565 826 887 589 730 1,765 917 622 1,863 1TSL_YJWR_IJGY____TYMJW_ÜªSFSHNFQ_TGQNLFYNTSX (12) 11,849 15,565 16,214 16,976 16,378 16,917 14,818 14,648 12,596 9,663 Total liabilities 28,119 24,806 26,027 26,501 25,149 26,652 24,884 21,967 19,450 18,176 Non-controlling interest and perpetual debentures (5) 3,390 3,338 1,573 1,189 1,127 1,145 1,158 1,178 1,397 1,571 Total controlling interest 13,879 16,339 13,248 11,111 10,984 10,221 8,894 8,327 8,097 9,137 Total stockholders’ equity 17,268 19,677 14,821 12,300 12,111 11,366 10,052 9,505 9,494 10,708 Book value per ADS (6,7) 16.34 16.37 12.00 10.02 9.83 8.74 7.08 6.15 5.66 6.02 OTHER FINANCIAL DATA Operating margin 11.6% 8.0% 6.0% 6.2% 8.6% 10.1% 10.9% 12.2% 14.2% 12.6% Operating EBITDA margin (10) 20.3% 18.3% 16.8% 15.6% 17.5% 17.6% 17.8% 18.9% 20.6% 18.8% Operating EBITDA (10) 4,080 2,657 2,355 2,381 2,624 2,603 2,664 2,596 2,753 2,572 +WJJ_HFXM_Ü«T¥_FKYJW_RFNSYJSFSHJ_HFUNYFQ_J]UJSINYZWJX (10) 2,600 1,215 455 191 167 (89) 401 881 1,685 1,290 79 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information NOTES TO SELECTED CONSOLIDATED FINANCIAL INFORMATION 1. Cost of sales includes depreciation, amortization and depletion of assets involved in the production, expenses related to storage in producing plants, and beginning in 2008, freight expenses of raw material in plants and delivery expenses of CEMEX’s ready-mix concrete business. 2. Financial income (expense) and other items, net, includes financial income, realized and unrealized gains and losses from financial instruments, foreign exchange results and the effects of net present value on assets and liabilities. 3. In October 2009, CEMEX completed the sale of its Australian operations for an amount then equivalent to approximately US$1,700 million. Australia’s operating results, net of income tax, for the years ended 2007, 2008 and 2009, were presented in a single line item as “Discontinued Operations” in our consolidated statement of operations. 4. OPERATION YEARS WITHIN DISCONTINUED OPERATIONS United States’ Northwest Materials Business * 2017, 2016 and 2015 United States’ Concrete Pipe Business * 2017, 2016, 2015 and 2014 Thailand & Bangladesh ** 2016, 2015 and 2014 Croatia (including assets in Bosnia Herzegovina, Montenegro and Serbia) 2014 and 2013 Austria & Hungary *** 2015, 2014 and 2013 * Sold on June 2017 and January 2017, respectively. ** Sold on May 2016 *** Sold on October 2015 As a result, the statements of operations of 2017, 2016 and 2015 originally reported were restated. Discontinued operations are presented net of income tax. See note 4.1 to our consolidated financial statements included elsewhere in this annual report. [[In addition, the statements of operations of 2014 and 2013 and statement of financial position of 2015 originally reported were not restated]].” 5. From 2008 through 2017, non-controlling interest includes US$3,020 million, US$3,045 million, US$1,320 million, US$938 million, US$473 million, US$477 million, US$466 million, US$440 million, US$438 million and US$448 million, respectively; of aggregate notional amounts of perpetual debentures issued by consolidated entities. For accounting purposes, these debentures represent equity instruments (See note 20.4 to the 2017 Annual Report’s Financial Statements). 6. The number of ADSs outstanding, stated in millions of ADSs, represents: (i) the total average amount of ADS equivalent units outstanding of each year, (ii) includes the total number of ADS equivalents issued in underlying derivative transactions, and (iii)excludes the total number of ADS equivalents issued by CEMEX and owned by its subsidiaries. Each ADS listed on the New York Stock Exchange represents 10 CPOs. 7. Our shareholders approved stock splits in 2005 and 2006. Consequently, each of our existing CPOs was surrendered in exchange for two new CPOs. The proportional equity interest participation of the stockholders in CEMEX’s common stock did not change as a result of the stock splits mentioned above. The number of our ADSs outstanding did not change as a result of the stock splits in 2005. Instead, the ratio of CPOs to ADSs was modified so that each ADS represented 10 new CPOs. As a result of the stock split approved during 2006, one additional ADS was issued in exchange for each existing ADS, each ADS representing 10 new CPOs. Earnings per ADS and the number of ADSs outstanding for the years ending December 31, 2005 and 2006, were adjusted to make the effect of the stock splits retroactive for the correspondent years. In the Consolidated Financial Statements, earnings (loss) per share are presented on a per-share basis (See note 22 to the 2017 Annual Report’s Financial Statements). 8. For purposes of the selected financial information for the periods ended December 31, 2008 through 2017, the controlling interest basic earnings (losses) per ADS amounts were determined by considering the average amount of balance number of ADS equivalent units outstanding during each year. These numbers of ADSs outstanding were not restated retrospectively neither to give effect to stock dividends occurring during the period nor to present the controlling earnings (loss)-per-ADS of continuing and discontinuing operations, as it would be required under MFRS and IFRS for their disclosure in the consolidated financial statements. 9. Dividends declared at each year’s annual stockholders’ meeting for each period are reflected as dividends for the preceding year. We did not declare a dividend for the years 2008 to 2017. Instead, at our 2009 through 2017 annual shareholders’ meetings, CEMEX’s stockholders approved a capitalization of retained earnings. New CPOs issued pursuant to the capitalization were allocated to shareholders on a pro-rata basis. As a result, shares equivalent to approximately 384 million CPOs, 401 million CPOs, 419 million CPOs, 437 million CPOs, 468 million CPOs, 500 million CPOs, 539 million CPOs and 562 million CPOs were issued and paid each year from 2010 through 2017, respectively. CPO holders received one new CPO for each 25 CPOs held, and ADS holders received one new ADS for each 25 ADSs held. There was no cash distribution and no entitlement to fractional shares. (See note 20.1 to the 2017 Annual Report’s Financial Statements). 10. This item was not restated to give the effect of discontinued operations. Please refer to page [105] for the definition of terms. 11. In 2017 excludes the assets of and Andorra, Spain; that were classified as held for sale. In 2016 excludes the assets of Fairborn cement plant, United States; Concrete pumping equipment, Mexico; and Andorra, Spain; that were classified as held for sale. In 2015, excludes the assets of Andorra, Spain as mentioned in the note 12.1 to the 2017 Annual Report’s Financial Statements. 12. From 2010 through 2017, other financial obligations include the liability components associated with CEMEX’s financial instruments convertible into CEMEX’s CPOs, liabilities secured with accounts receivable as well as CEMEX’s capital leases (See note 16.2 to the 2017 Annual Report’s Financial Statements). Prior to 2010, there were no significant transactions concerning capital leases or convertible financial instruments. (i) As a result of requirements by the National Banking and Exchange Commission, CEMEX prepares its consolidated financial statements using International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board. Accordingly, CEMEX’s consolidated financial statements as of December 31, 2017, 2016, 2015, 2014, 2013, 2012 and 2011 and for the years ended December 31, 2017, 2016, 2015, 2014, 2013, 2012 and 2011, were prepared and presented in accordance with IFRS. Prior years were prepared and presented in accordance with Mexican Financial Reporting Standards (“MFRS”). Reconciling one-time adjustments between IFRS and MFRS were recognized in the opening balance sheet under IFRS as of January 1, 2010 against stockholders’ equity. (*) The effects associated with newly issued IFRS are recognized in the year when they become mandatory and are applied retrospectively only for comparative prior periods presented in the set of financial statements issued in the year of adoption. Earlier periods are not restated to give retroactive effect to such new standards.

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information CONSOLIDATED INCOME STATEMENTS CEMEX, S.A.B. de C.V. and Subsidiaries (Millions of Mexican pesos, except for earnings per share) Years ended December 31, Notes 2017 2016 2015 Net sales 3 $ 258,131 249,945 219,299 Cost of sales 2.16 (169,534) (160,433) (144,513) _ _ _ ,WTXX_UWTÜªY_ _ _ _______ _______ ______ Operating expenses 5 (56,026) (53,969) (47,910) Operating earnings before other expenses, net 2.1 32,571 35,543 26,876 Other expenses, net 6 (3,815) (1,670) (3,032) Operating earnings 28,756 33,873 23,844 Financial expense 16 (19,301) (21,487) (19,784) Financial income and other items, net 7 3,616 4,489 (1,333) 8MFWJ_TK_UWTÜªY_TK_JVZNY^_FHHTZSYJI_NS[JXYJJX_ _____ _ ____ ____ ___ Earnings before income tax 13,659 17,563 3,464 Income tax 19 (520) (3,125) (2,368) Net income from continuing operations 13,139 14,438 1,096 Discontinued operations 4.2 3,499 768 1,028 CONSOLIDATED NET INCOME 16,638 15,206 2,124 Non-controlling interest net income 1,417 1,173 923 CONTROLLING INTEREST NET INCOME $ 15,221 14,033 1,201 Basic earnings per share 22 $ 0.34 0.32 0.03 Basic earnings per share from continuing operations 22 $ 0.26 0.30 0.01 Diluted earnings per share 22 $ 0.34 0.32 0.03 Diluted earnings per share from continuing operations 22 $ 0.26 0.30 0.01 9MJ_FHHTRUFS^NSL_STYJX_FWJ_UFWY_TK_YMJXJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ 81 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME CEMEX, S.A.B. de C.V. and Subsidiaries (Millions of Mexican pesos) Years ended December 31, Notes 2017 2016 2015 CONSOLIDATED NET INCOME $ 16,638 15,206 2,124 .YJRX_YMFY_¥NQQ_STY_GJ_WJHQFXXNÜªJI_XZGXJVZJSYQ^_YT_YMJ_NSHTRJ_XYFYJRJSY 3JY_FHYZFWNFQ_ QTXXJX__KWTR_WJRJFXZWJRJSYX_TK_IJÜªSJI_GJSJÜªY_UJSXNTS_UQFSX_ ___ _ __ _______ ____ Income tax recognized directly in other comprehensive income183 19 (1) 788 2 (3,231) (565) .YJRX_YMFY_FWJ_TW_RF^_GJ_WJHQFXXNÜªJI_XZGXJVZJSYQ^_YT_YMJ_NSHTRJ_XYFYJRJSY *KKJHYX_KWTR_F[FNQFGQJ_KTW_XFQJ_NS[JXYRJSYX_FSI_IJWN[FYN[J_ÜªSFSHNFQ_ _ NSXYWZRJSYX_IJXNLSFYJI_FX_HFXM_Ü«T¥_MJILJX_ ___________ _ ____ ___ ___ Currency translation of foreign subsidiaries 20.2 (9,519) 11,630 7,976 Income tax recognized directly in other comprehensive income453 19 233 (696) (9,011) 10,970 8,764 Total items of other comprehensive income, net (9,009) 7,739 8,199 TOTAL COMPREHENSIVE INCOME 7,629 22,945 10,323 Non-controlling interest comprehensive income 1,928 5,164 3,221 CONTROLLING INTEREST COMPREHENSIVE INCOME $ 5,701 17,781 7,102 Out of which: COMPREHENSIVE INCOME FROM DISCONTINUED OPERATIONS $ 2,342 2,882 1,387 COMPREHENSIVE INCOME FROM CONTINUING OPERATIONS $ 3,359 14,899 5,715 9MJ_FHHTRUFS^NSL_STYJX_FWJ_UFWY_TK_YMJXJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ 82 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 4.1 Financial information December 31, Notes 2017 2016 CEMEX, S.A.B. de C.V. and Subsidiaries ASSETS (Millions of Mexican pesos) CURRENT ASSETS Cash and cash equivalents 8 $ 13,741 11,616 Trade accounts receivables, net 9 30,478 30,160 Other accounts receivable 10 4,970 5,238 Inventories, net 11 18,852 18,098 Assets held for sale 12.1 1,378 21,029 Other current assets 12.2 1,946 2,300 Total current assets 71,365 88,441 NON-CURRENT ASSETS Equity accounted investees 13.1 8,572 10,488 Other investments and non-current accounts receivable 13.2 5,758 7,120 Property, machinery and equipment, net 14 232,160 230,134 Goodwill and intangible assets, net 15 234,909 247,507 Deferred income tax assets 19.2 14,817 16,038 Total non-current assets 496,216 511,287 TOTAL ASSETS $ 567,581 599,728 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Short-term debt 16.1 $ 16,973 1,222 4YMJW_ÜªSFSHNFQ_TGQNLFYNTSX_ _____ _ _______ ______ Trade payables 46,428 40,338 Income tax payable 5,129 5,441 Other current liabilities 17 24,287 22,530 Liabilities directly related to assets held for sale 12.1 – 815 Total current liabilities 112,179 82,004 NON-CURRENT LIABILITIES Long-term debt 16.1 177,022 235,016 4YMJW_ÜªSFSHNFQ_TGQNLFYNTSX_ _____ _ _______ ______ *RUQT^JJ_GJSJÜªYX_ ___ _ _______ ______ Deferred income tax liabilities 19.2 15,801 19,600 Other non-current liabilities 17 15,649 17,046 Total non-current liabilities 244,984 320,999 TOTAL LIABILITIES 357,163 403,003 STOCKHOLDERS’ EQUITY Controlling interest: Common stock and additional paid-in capital 20.1 144,654 127,336 Other equity reserves 20.2 13,483 24,793 Retained earnings 20.3 6,181 1,612 Net income 15,221 14,033 Total controlling interest 179,539 167,774 Non-controlling interest and perpetual debentures 20.4 30,879 28,951 TOTAL STOCKHOLDERS’ EQUITY 210,418 196,725 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 567,581 599,728 9MJ_FHHTRUFS^NSL_STYJX_FWJ_UFWY_TK_YMJXJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ 83 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT CONSOLIDATED STATEMENTS OF CASH FLOWS 4.1 Financial information Years ended December 31, Notes 2017 2016 2015 CEMEX, S.A.B. de C.V. and Subsidiaries OPERATING ACTIVITIES (Millions of Mexican pesos) Consolidated net income $ 16,638 15,206 2,124 Discontinued operations 3,499 768 1,028 Net income from continuing operations $ 13,139 14,438 1,096 Non-cash items: Depreciation and amortization of assets 5 15,992 15,991 14,658 Impairment losses 6 2,936 2,518 1,517 _ 8MFWJ_TK_UWTÜªY_TK_JVZNY^_FHHTZSYJI_NS[JXYJJX_ _____ _ _____ _____ ____ Results on sale of subsidiaries, other disposal groups and others (4,335) (2,132) (174) Financial income and other items, net 15,685 16,998 21,117 Income taxes 19 520 3,125 2,368 Changes in working capital, excluding income taxes 8,040 11,017 3,596 _ 3JY_HFXM_Ü«T¥_UWT[NIJI_G^_TUJWFYNSL_FHYN[NYNJX_KWTR_HTSYNSZNSL_ _ _ TUJWFYNTSX_GJKTWJ_ÜªSFSHNFQ_J]UJSXJ__HTZUTSX_TS_UJWUJYZFQ_ debentures and income taxes 51,389 61,267 43,441 Financial expense and coupons on perpetual debentures paid 20.4 (15,759) (18,129) (17,865) Income taxes paid (4,664) (5,183) (7,437) _ 3JY_HFXM_Ü«T¥_UWT[NIJI_G^_TUJWFYNSL_FHYN[NYNJX_KWTR_HTSYNSZNSL_TUJWFYNTSX_ _ _ _______ _______ ______ _ 3JY_HFXM_Ü«T¥_UWT[NIJI_G^_TUJWFYNSL_FHYN[NYNJX_KWTR_INXHTSYNSZJI_TUJWFYNTSX_ _ _ ____ ______ ___ _ 3JY_HFXM_Ü«T¥X_UWT[NIJI_G^_TUJWFYNSL_FHYN[NYNJX_ _ _ _______ _______ ______ INVESTING ACTIVITIES Property, machinery and equipment, net 14 (10,753) (4,563) (8,930) Acquisition and disposal of subsidiaries and other disposal groups, net 4.1, 13.1 23,841 1,424 2,722 Intangible assets and other deferred charges 15 (1,607) (1,427) (908) Long term assets and others, net 128 (914) (764) _ 3JY_HFXM_Ü«T¥X_ZXJI_NS_NS[JXYNSL_FHYN[NYNJX_KWTR_HTSYNSZNSL_TUJWFYNTSX_ _ _ _______ _______ ______ _ 3JY_HFXM_Ü«T¥X_UWT[NIJI_G^_ ZXJI_NS__NS[JXYNSL_FHYN[NYNJX_ from discontinued operations – 1 (153) _ 3JY_HFXM_Ü«T¥X_ZXJI_NS_NS[JXYNSL_FHYN[NYNJX_ _ _ _______ _______ ______ FINANCING ACTIVITIES Sale of non-controlling interests in subsidiaries 20.4 (55) 9,777 –Derivative instruments 246 399 1,098 Repayment of debt, net 16.1 (39,299) (46,823) (11,473) 4YMJW_ÜªSFSHNFQ_TGQNLFYNTSX__SJY_ _____ _ ¢_ ¢_ ___ Securitization of trade receivables 169 (999) (506) Non-current liabilities, net (3,745) (1,972) (1,763) _ 3JY_HFXM_Ü«T¥X_ZXJI_NS_ÜªSFSHNSL_FHYN[NYNJX_ _ _ ________ ________ _______ Decrease in cash and cash equivalents from continuing operations (109) (7,143) (2,208) Increase in cash and cash equivalents from discontinued operations 144 1,193 824 Cash conversion effect, net 2,090 2,244 4,117 Cash and cash equivalents at beginning of period 11,616 15,322 12,589 CASH AND CASH EQUIVALENTS AT END OF PERIOD 8 $ 13,741 11,616 15,322 Changes in working capital, excluding income taxes: Trade receivables, net $ 1,495 (4,386) (3,561) Other accounts receivable and other assets 1,120 (286) (1,986) Inventories 526 (1,239) (1,472) Trade payables 3,635 13,729 7,532 Other accounts payable and accrued expenses 1,264 3,199 3,083 Changes in working capital, excluding income taxes $ 8,040 11,017 3,596 9MJ_FHHTRUFS^NSL_STYJX_FWJ_UFWY_TK_YMJXJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ 84 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY CEMEX, S.A.B. de C.V. and Subsidiaries (Millions of Mexican pesos) Common Additionalpaid-in equityOther Retained controllingTotal Non-controlling stockholders’ Total Notes stock capital reserves earnings interest interest equity Balance as of December 31, 2014 $ 4,151 101,216 10,738 14,998 131,103 17,068 148,171 Net income – – – 1,201 1,201 923 2,124 Total other items of comprehensive income 20.2 – – 5,901 – 5,901 2,298 8,199 Effects of early conversion and issuance of convertible subordinated notes 16.2 3 5,982 (934) – 5,051 – 5,051 Capitalization of retained earnings 20.1 4 7,613 – (7,617) – – –Share-based compensation 20.1, 21 – 655 – – 655 – 655 Effects of perpetual debentures 20.4 – – (432) – (432) – (432) Balance as of December 31, 2015 4,158 115,466 15,273 8,582 143,479 20,289 163,768 Net income – – – 14,033 14,033 1,173 15,206 Total other items of comprehensive income 20.2 – – 3,748 – 3,748 3,991 7,739 Capitalization of retained earnings 20.1 4 6,966 – (6,970) – – –Share-based compensation 20.1, 21 – 742 – – 742 – 742 Effects of perpetual debentures 20.4 – – (507) – (507) – (507) Changes in non-controlling interest 20.4 – – 6,279 – 6,279 3,498 9,777 Balance as of December 31, 2016 4,162 123,174 24,793 15,645 167,774 28,951 196,725 Net income – – – 15,221 15,221 1,417 16,638 Total other items of comprehensive income, net 20.2 – – (9,520) – (9,520) 511 (9,009) Capitalization of retained earnings 20.1 5 9,459 – (9,464) – – –Effects of early conversion of convertible subordinated notes 16.2 4 7,059 (1,334) – 5,729 – 5,729 Share-based compensation 20.1, 21 – 791 26 – 817 – 817 Effects of perpetual debentures 20.4 – – (482) – (482) – (482) Balance as of December 31, 2017 $ 4,171 140,483 13,483 21,402 179,539 30,879 210,418 9MJ_FHHTRUFS^NSL_STYJX_FWJ_UFWY_TK_YMJXJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ 85 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CEMEX, S.A.B. de C.V. and Subsidiaries As of December 31, 2017, 2016 and 2015 (Millions of Mexican pesos) 1) DESCRIPTION OF BUSINESS CEMEX, S.A.B. de C.V., founded in 1906, is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico, holding company (parent) of entities whose main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials and services. In addition, and operational activities of the cement, ready-mix concrete and aggregates sectors in Mexico. translation into dollars and/or into pesos, as applicable. Previously reported convenience translations of prior years are not restated unless the transaction is still outstanding, in which case those are restated using the closing exchange rates as of the reporting date. These translations should not be construed as representations that the amounts in pesos or dollars, as applicable, actually represent those peso or dollar amounts or could be converted into pesos or dollars at the rate indicated. As of December 31, 2017 and 2016, translations of pesos into dollars and dollars into pesos, and for statements of operations amounts, using the average exchange rates of $18.88, $18.72 and $15.98 pesos per dollar for 2017, 2016 and 2015, respectively. When the amounts between parentheses are the peso and the dollar, the amounts were determined by translating the euro amount into dollars using the closing exchange rates at year-end and then translating the dollars into pesos as previously described. Amounts disclosed in the notes in connection with tax or legal proceedings (notes 19.4 and 24), which are originated in jurisdictions which currencies are different to the peso or the dollar, are presented in dollar equivalents as of the closing of the most recent year presented. Consequently, without 86 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Discontinued operations On April 5, 2017, in connection with the agreements entered into between CEMEX and Duna-Dráva Cement in August 2015 for the sale of CEMEX’s TUJWFYNTSX_NS_(WTFYNF__NSHQZINSL_FXXJYX_NS_‘TXSNF_FSI_-JW_JLT[NSF__2TSYJSJLWT_FSI_8JWGNF__ OTNSYQ^_YMJ_Ñ¦(WTFYNFS_4UJWFYNTSXÑ§___YMJ_*ZWTUJFS_ Commission issued a decision that ultimately did not allow Duna-Dráva Cement to purchase the aforementioned operations. Consequently, the YWFSXFHYNTS_¥FX_STY_HTSHQZIJI_FSI_(*2*=_IJHNIJI_YT_RFNSYFNS_NYX_(WTFYNFS_4UJWFYNTSX_FSI_HTSYNSZJ_YT_TUJWFYJ_YMJR_KTW_NSIJÜªSNYJ_YNRJ__&X_TK_ December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015, the Croatian Operations are consolidated line-by-line NS_YMJ_ÜªSFSHNFQ_XYFYJRJSYX__9MJ_FHHTRU^SNSL_HTRUFWFYN[J_ÜªSFSHNFQ_XYFYJRJSYX_NSHQZINSL_YMJNW_STYJX_KTW_UWNTW_UJWNTIX__NS_¥MNHM_(*2*=_UWJ[NTZXQ^_ WJUTWYJI_YMJ_(WTFYNFS_4UJWFYNTSX_FX_Ñ¦)NXHTSYNSZJI_4UJWFYNTSXÑ§_FSI_Ñ¦&XXJYX_MJQI_KTW_XFQJÑ§_MF[J_GJJS_WJ_UWJXJSYJI_NS_TWIJW_YT_UWJXJSY_YMJ_(WTFYNFS_ Operations as part of continuing operations. The Croatian Operations mainly consist of three cement plants with aggregate annual production capacity of approximately 2.4 million tons of cement, two aggregates quarries and seven ready-mix plants (note 4.2) . In addition, considering the disposal of entire reportable operating segments, CEMEX presents in the single line item of discontinued operations, YMJ_WJXZQYX_TK__F__NYX_5FHNÜªH_3TWYM¥JXY_2FYJWNFQX_‘ZXNSJXX_TUJWFYNTSX_NS_YMJ_:SNYJI_8YFYJX_XTQI_TS_/ZSJ_________ _G__NYX_(TSHWJYJ_5NUJ_‘ZXNSJXX_ operations in the United States sold on January 31, 2017; c) its operations in Bangladesh and Thailand sold on May 26, 2016; and d) its operations in Austria and Hungary sold on October 31, 2015 (note 4.2) . Discontinued operations are presented net of income tax. Income statements (*2*=_NSHQZIJX_YMJ_QNSJ_NYJR_YNYQJI_Ñ¦4UJWFYNSL_JFWSNSLX_GJKTWJ_TYMJW_J]UJSXJX__SJYÑ§_HTSXNIJWNSL_YMFY_NY_NX_F_WJQJ[FSY_RJFXZWJ_KTW_(*2*=Ñ£X_ RFSFLJRJSY_FX_J]UQFNSJI_NS_STYJ______:SIJW_.+78__YMJ_NSHQZXNTS_TK_HJWYFNS_XZGYTYFQX_XZHM_FX_Ñ¦4UJWFYNSL_JFWSNSLX_GJKTWJ_TYMJW_J]UJSXJX__SJYÑ§_FSI_ YMJ_INXUQF^_TK_YMJ_XYFYJRJSY_TK_TUJWFYNTSX_[FW^_XNLSNÜªHFSYQ^_G^_NSIZXYW^_FSI_HTRUFS^_FHHTWINSL_YT_XUJHNÜªH_SJJIX__9MJ_QNSJ_NYJR_Ñ¦4YMJW_J]UJSXJX__ SJYÑ§_HTSXNXYX_UWNRFWNQ^_TK_WJ[JSZJX_FSI_J]UJSXJX_STY_INWJHYQ^_WJQFYJI_YT_(*2*=Ñ£X_RFNS_FHYN[NYNJX__TW_¥MNHM_FWJ_TK_FS_ZSZXZFQ_FSI_TW_STS_WJHZWWNSL_ nature, including impairment losses of long-lived assets, results on disposal of assets and restructuring costs and others (note 6). 8YFYJRJSYX_TK_HFXM_Ü«T¥X 9MJ_XYFYJRJSYX_TK_HFXM_Ü«T¥X_J]HQZIJ_YMJ_KTQQT¥NSL_YWFSXFHYNTSX_YMFY_INI_STY_WJUWJXJSY_XTZWHJX_TW_ZXJX_TK_HFXM_ • In 2017, 2016 and 2015, the increases in common stock and additional paid-in capital associated with: (i) the capitalization of retained earnings for $9,464, $6,970 and $7,617, respectively (note 20.1); and (ii) CPOs issued as part of the executive share-based compensation programs for $817, $742 and $655, respectively (note 20.1); Ñ¬_ .S____________FSI_______YMJ_NSHWJFXJX_NS_UWTUJWY^__UQFSY_FSI_JVZNURJSY_KTW__________FSI_____WJXUJHYN[JQ^__FXXTHNFYJI_¥NYM_YMJ_ÜªSFSHJ_QJFXJX_ during the year (note 14); • In 2017, the decrease in debt for $5,468, the net decrease in other equity reserves for $1,334, the increase in common stock for $4 and the increase in additional paid-in capital for $7,059, in connection with the early conversion of part of the 2018 optional convertible subordinated notes, which involved, the early conversion of optional convertible subordinated notes due in 2018. In addition, in 2015, the decrease in debt for $4,517, the net decrease in other equity reserves for $934, the increase in common stock for $3 and the increase in additional paid-in capital for $5,982, in connection with the issuance of optional convertible subordinated notes due in 2020, which involved, the exchange and early conversion of optional convertible subordinated notes due in 2016. These transactions involved the issuance of approximately 43 million ADSs in 2017 and 42 million ADSs in 2015 (note 16.2); 87 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information • In 2016, the increase in debt and in other current accounts receivable for $148, in connection with a guarantee signed by CEMEX Colombia, S.A. Ñ¦(*2*=_(TQTRGNFÑ§__T[JW_YMJ_IJGY_TK_F_YWZXY_HTRRNYYJI_YT_YMJ_IJ[JQTURJSY_TK_MTZXNSL_UWTOJHYX_NS_(TQTRGNF_FSI_YMJ_WJQFYJI_GJSJÜªHNFQ_NSYJWJXY_ that in turn holds CEMEX Colombia in the assets of such trust, which are comprised by land; and • In 2015, the decrease in other current and non-current liabilities and in deferred tax assets in connection with changes in the tax legislation in Mexico effective as of December 31, 2015 (note 19.4) . 2.2) Principles of consolidation 9MJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_NSHQZIJ_YMTXJ_TK_(*2*=__8_&_’__IJ_(_;__FSI_YMTXJ_TK_YMJ_JSYNYNJX_NS_¥MNHM_YMJ_5FWJSY_(TRUFS^_J]JWHNXJX_ control, including structured entities (special purposes entities), by means of which the Parent Company is exposed, or has rights, to variable returns from its involvement with the investee, and has the ability to affect those returns through its power over the investee’s relevant activities. Balances and operations between related parties are eliminated in consolidation. .S[JXYRJSYX_FWJ_FHHTZSYJI_KTW_G^_YMJ_JVZNY^_RJYMTI_¥MJS_(*2*=_MFX_XNLSNÜªHFSY_NSÜ«ZJSHJ_¥MNHM_NX_LJSJWFQQ^_UWJXZRJI_¥NYM_F_RNSNRZR_JVZNY^_ NSYJWJXY_TK___ __9MJ_JVZNY^_RJYMTI_WJÜ«JHYX_NS_YMJ_ÜªSFSHNFQ_XYFYJRJSYX__YMJ_NS[JXYJJÑ£X_TWNLNSFQ_HTXY_FSI_(*2*=Ñ£X_XMFWJ_TK_YMJ_NS[JXYJJÑ£X_JVZNY^_FSI_ JFWSNSLX_FKYJW_FHVZNXNYNTS__9MJ_ÜªSFSHNFQ_XYFYJRJSYX_TK_OTNSY_[JSYZWJX__¥MNHM_WJQFYJ_YT_YMTXJ_FWWFSLJRJSYX_NS_¥MNHM_(*2*=_FSI_TYMJW_YMNWI_UFWY^_ investors have joint control and have rights to the net assets of the arrangements, are recognized under the equity method. During the reported periods, CEMEX did not have joint operations, referring to those cases in which the parties that have joint control of the arrangement have rights T[JW_XUJHNÜªH_FXXJYX_FSI_TGQNLFYNTSX_KTW_XUJHNÜªH_QNFGNQNYNJX_WJQFYNSL_YT_YMJ_FWWFSLJRJSYX__9MJ_JVZNY^_RJYMTI_NX_INXHTSYNSZJI_¥MJS_YMJ_HFWW^NSL_ amount of the investment, including any long-term interest in the investee or joint venture, is reduced to zero, unless CEMEX has incurred or guaranteed additional obligations of the investee or joint venture. 4YMJW_UJWRFSJSY_NS[JXYRJSYX_¥MJWJ_(*2*=_MTQIX_JVZNY^_NSYJWJXYX_TK_QJXX_YMFS___ _FSI_TW_YMJWJ_NX_ST_XNLSNÜªHFSY_NSÜ«ZJSHJ_FWJ_HFWWNJI_FY_YMJNW_ historical cost. 2.3) Use of estimates and critical assumptions 9MJ_UWJUFWFYNTS_TK_ÜªSFSHNFQ_XYFYJRJSYX_NS_FHHTWIFSHJ_¥NYM_.+78_WJVZNWJX_RFSFLJRJSY_YT_RFPJ_JXYNRFYJX_FSI_FXXZRUYNTSX_YMFY_FKKJHY_ WJUTWYJI_FRTZSYX_TK_FXXJYX_FSI_QNFGNQNYNJX__FSI_YMJ_INXHQTXZWJ_TK_HTSYNSLJSY_FXXJYX_FSI_QNFGNQNYNJX_FY_YMJ_IFYJ_TK_YMJ_ÜªSFSHNFQ_XYFYJRJSYX _FX_¥JQQ_ as the reported amounts of revenues and expenses during the period. These assumptions are reviewed on an ongoing basis using available NSKTWRFYNTS__&HYZFQ_WJXZQYX_HTZQI_INKKJW_KWTR_YMJXJ_JXYNRFYJX__9MJ_NYJRX_XZGOJHY_YT_XNLSNÜªHFSY_JXYNRFYJX_FSI_FXXZRUYNTSX_G^_RFSFLJRJSY_ NSHQZIJ_NRUFNWRJSY_YJXYX_TK_QTSL_QN[JI_FXXJYX__WJHTLSNYNTS_TK_IJKJWWJI_NSHTRJ_YF]_FXXJYX__FX_¥JQQ_FX_YMJ_RJFXZWJRJSY_TK_ÜªSFSHNFQ_NSXYWZRJSYX_ FY_KFNW_[FQZJ__FSI_YMJ_FXXJYX_FSI_QNFGNQNYNJX_WJQFYJI_YT_JRUQT^JJ_GJSJÜªYX__8NLSNÜªHFSY_OZILRJSY_NX_WJVZNWJI_G^_RFSFLJRJSY_YT_FUUWTUWNFYJQ^_ assess the amounts of these concepts. _____+TWJNLS_HZWWJSH^_YWFSXFHYNTSX_FSI_YWFSXQFYNTS_TK_KTWJNLS_HZWWJSH^_ÜªSFSHNFQ_XYFYJRJSYX Transactions denominated in foreign currencies are recorded in the functional currency at the exchange rates prevailing on the dates of their execution. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates UWJ[FNQNSL_FY_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_IFYJ__FSI_YMJ_WJXZQYNSL_KTWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_FWJ_WJHTLSN_JI_NS_JFWSNSLX__J]HJUY_KTW_J]HMFSLJ_ Ü«ZHYZFYNTSX_FWNXNSL_KWTR_____KTWJNLS_HZWWJSH^_NSIJGYJISJXX_FXXTHNFYJI_¥NYM_YMJ_FHVZNXNYNTS_TK_KTWJNLS_JSYNYNJX _FSI____Ü«ZHYZFYNTSX_FXXTHNFYJI_¥NYM_ related parties’ balances denominated in foreign currency, which settlement is neither planned nor likely to occur in the foreseeable future and as a WJXZQY__XZHM_GFQFSHJX_FWJ_TK_F_UJWRFSJSY_NS[JXYRJSY_SFYZWJ__9MJXJ_Ü«ZHYZFYNTSX_FWJ_WJHTWIJI_FLFNSXY_Ñ¦4YMJW_JVZNY^_WJXJW[JX_Ñ§_FX_UFWY_TK_YMJ_KTWJNLS_ currency translation adjustment (note 20.2) until the disposal of the foreign net investment, at which time, the accumulated amount is recycled through the statement of operations as part of the gain or loss on disposal. 88 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 9MJ_ÜªSFSHNFQ_XYFYJRJSYX_TK_KTWJNLS_XZGXNINFWNJX__FX_IJYJWRNSJI_ZXNSL_YMJNW_WJXUJHYN[J_KZSHYNTSFQ_HZWWJSH^__FWJ_YWFSXQFYJI_YT_UJXTX_FY_YMJ_HQTXNSL_ J]HMFSLJ_WFYJ_KTW_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FHHTZSYX_FSI_FY_YMJ_HQTXNSL_J]HMFSLJ_WFYJX_TK_JFHM_RTSYM_¥NYMNS_YMJ_UJWNTI_KTW_XYFYJRJSYX_TK_ operations accounts. The functional currency is that in which each consolidated entity primarily generates and expends cash. The corresponding YWFSXQFYNTS_JKKJHY_NX_NSHQZIJI_¥NYMNS_Ñ¦4YMJW_JVZNY^_WJXJW[JXÑ§_FSI_NX_UWJXJSYJI_NS_YMJ_XYFYJRJSY_TK_TYMJW_HTRUWJMJSXN[J_NSHTRJ_KTW_YMJ_UJWNTI_FX_UFWY_ of the foreign currency translation adjustment (note 20.2) until the disposal of the net investment in the foreign subsidiary. Considering its integrated activities, for purposes of functional currency, the Parent Company is considered to have two divisions, one related with NYX_ÜªSFSHNFQ_FSI_MTQINSL_HTRUFS^_FHYN[NYNJX__NS_¥MNHM_YMJ_KZSHYNTSFQ_HZWWJSH^_NX_YMJ_ITQQFW_KTW_FQQ_FXXJYX__QNFGNQNYNJX_FSI_YWFSXFHYNTSX_FXXTHNFYJI_¥NYM_ these activities, and another division related with the Parent Company’s operating activities in Mexico, in which the functional currency is the peso for all assets, liabilities and transactions associated with these activities. )ZWNSL_YMJ_WJUTWYJI_UJWNTIX__YMJWJ_¥JWJ_ST_XZGXNINFWNJX_¥MTXJ_KZSHYNTSFQ_HZWWJSH^_¥FX_YMJ_HZWWJSH^_TK_F_M^UJWNSÜ«FYNTSFW^_JHTSTR^__¥MNHM_NX_ LJSJWFQQ^_HTSXNIJWJI_YT_J]NXY_¥MJS_YMJ_HZRZQFYN[J_NSÜ«FYNTS_WFYJ_T[JW_YMJ_QFXY_YMWJJ_^JFWX_NX_FUUWTFHMNSL__TW_J]HJJIX_____ __.S_F_M^UJWNSÜ«FYNTSFW^_ economy, the accounts of the subsidiary’s statements of operations should be restated to constant amounts as of the reporting date, in which HFXJ__GTYM_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FHHTZSYX_FSI_YMJ_NSHTRJ_XYFYJRJSY_FHHTZSYX_¥TZQI_GJ_YWFSXQFYJI_YT_UJXTX_FY_YMJ_HQTXNSL_J]HMFSLJ_ rates of the year. 9MJ_RTXY_XNLSNÜªHFSY_HQTXNSL_J]HMFSLJ_WFYJX_FSI_YMJ_FUUWT]NRFYJ_F[JWFLJ_J]HMFSLJ_WFYJX_KTW_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FHHTZSYX_FSI_ statement of operations accounts as of December 31, 2017, 2016 and 2015, were as follows: 2017 2016 2015 Currency Closing Average Closing Average Closing Average Dollar 19.6500 18.8800 20.7200 18.7200 17.2300 15.9800 Euro 23.5866 21.4122 21.7945 20.6564 18.7181 17.6041 British Pound Sterling 26.5361 24.4977 25.5361 25.0731 25.4130 24.3638 Colombian Peso 0.0066 0.0064 0.0069 0.0062 0.0055 0.0058 Egyptian Pound 1.1082 1.0620 1.1234 1.8261 2.2036 2.0670 Philippine Peso 0.3936 0.3747 0.4167 0.3927 0.3661 0.3504 9MJ_ÜªSFSHNFQ_XYFYJRJSYX_TK_KTWJNLS_XZGXNINFWNJX_FWJ_NSNYNFQQ^_YWFSXQFYJI_KWTR_YMJNW_KZSHYNTSFQ_HZWWJSHNJX_NSYT_ITQQFWX_FSI_XZGXJVZJSYQ^_NSYT_UJXTX__ Therefore, the foreign exchange rates presented in the table above between the functional currency and the peso represent the implied exchange rates resulting from this methodology. The peso to U.S. dollar exchange rate used by CEMEX is an average of free market rates available to settle NYX_KTWJNLS_HZWWJSH^_YWFSXFHYNTSX__3T_XNLSNÜªHFSY_INKKJWJSHJX_J]NXY__NS_FS^_HFXJ__GJY¥JJS_YMJ_KTWJNLS_J]HMFSLJ_WFYJX_ZXJI_G^_(*2*=_FSI_YMTXJ_ exchange rates published by the Mexican Central Bank. 2.5) Cash and cash equivalents (note 8) The balance in this caption is comprised of available amounts of cash and cash equivalents, mainly represented by highly-liquid short-term NS[JXYRJSYX__¥MNHM_FWJ_WJFINQ^_HTS[JWYNGQJ_NSYT_PST¥S_FRTZSYX_TK_HFXM__FSI_¥MNHM_FWJ_STY_XZGOJHY_YT_XNLSNÜªHFSY_WNXPX_TK_HMFSLJX_NS_YMJNW_[FQZJX__ NSHQZINSL_T[JWSNLMY_NS[JXYRJSYX__¥MNHM_^NJQI_Üª]JI_WJYZWSX_FSI_MF[J_RFYZWNYNJX_TK_QJXX_YMFS_YMWJJ_RTSYMX_KWTR_YMJ_NS[JXYRJSY_IFYJ__9MJXJ_Üª]JI_ income investments are recorded at cost plus accrued interest. Accrued interest is included in the income statement as part of “Financial income FSI_TYMJW_NYJRX__SJY_Ñ§ 89 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information The amount of cash and cash equivalents in the statement of financial position includes restricted cash and investments, comprised of deposits in margin accounts that guarantee certain of CEMEX’s obligations, to the extent that the restriction will be lifted in less than three months from the statement of financial position reporting date. When the restriction period is greater than three months, such restricted cash and investments are not considered cash equivalents and are included within short-term or long-term “Other accounts receivable,” as appropriate. When contracts contain provisions for net settlement, these restricted amounts of cash and cash equivalents are offset against the liabilities that CEMEX has with its counterparties. 2.6) Financial instruments Beginning January 1, 2018, IFRS 9, Financial Instruments: classification and measurement is effective, see note 2.20. Until December 31, 2017, CEMEX’s policy for the recognition of financial instruments is set forth below: Trade accounts receivable and other accounts receivable (notes 9 and 10) Instruments under these captions are classified as loans and receivables and are recorded at their amortized cost representing the net present value (“NPV”) of the consideration receivable or payable as of the transaction date. Due to their short-term nature, CEMEX initially recognizes these receivables at the original invoiced amount less an estimate of doubtful accounts. Allowances for doubtful accounts were recognized based on incurred loss estimates against administrative and selling expenses. Trade receivables sold under securitization programs, in which certain residual interest in the trade receivables sold in case of recovery failure and continued involvement in such assets is maintained, do not qualify for derecognition and are maintained on the statement of financial position. Other investments and non-current accounts receivable (note 13.2) As part also of loans and receivables, non-current accounts receivable and investments classified as held to maturity are initially recognized at their amortized cost. Subsequent changes in NPV are recognized in the income statement as part of “Financial income and other items, net.” Investments in financial instruments held for trading, as well as those investments available for sale, are recognized at their estimated fair value, in the first case through the income statement as part of “Financial income and other items, net,” and in the second case, changes in valuation are recognized as part of “Other comprehensive income” for the period within “Other equity reserves” until their time of disposition, when all valuation effects accrued in equity are reclassified to “Financial income and other items, net,” in the income statement. These investments are tested for impairment upon the occurrence of a significant adverse change or at least once a year during the last quarter. Debt and other financial obligations (notes 16.1 and 16.2) Bank loans and notes payable are recognized at their amortized cost. Interest accrued on financial instruments is recognized within “Other accounts payable and accrued expenses” against financial expense. During the reported periods, CEMEX did not have financial liabilities voluntarily recognized at fair value or associated to fair value hedge strategies with derivative financial instruments. Direct costs incurred in debt issuances or borrowings, as well as debt refinancing or non-substantial modifications to debt agreements that did not represent an extinguishment of debt by considering that the holders and the relevant economic terms of the new instrument are not substantially different to the replaced instrument, adjust the carrying amount of the related debt and are amortized as interest expense as part of the effective interest rate of each instrument over its maturity. These costs include commissions and professional fees. Costs incurred in the extinguishment of debt, as well as debt refinancing or modifications to debt agreements when the new instrument is substantially different to the old instrument according to a qualitative and quantitative analysis are recognized in the income statement as incurred.

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information +NSFSHJ_QJFXJX_FWJ_WJHTLSN_JI_FX_ÜªSFSHNSL_QNFGNQNYNJX_FLFNSXY_F_HTWWJXUTSINSL_Üª]JI_FXXJY_KTW_YMJ_QJXXJW_TK_YMJ_RFWPJY_[FQZJ_TK_YMJ_QJFXJI_FXXJY_ and the NPV of future minimum lease payments, using the contract’s implicit interest rate to the extent available, or the incremental borrowing HTXY__9MJ_RFNS_KFHYTWX_YMFY_IJYJWRNSJ_F_ÜªSFSHJ_QJFXJ_FWJ__F__T¥SJWXMNU_YNYQJ_TK_YMJ_FXXJY_NX_YWFSXKJWWJI_YT_(*2*=_FY_YMJ_J]UNWFYNTS_TK_YMJ_HTSYWFHY _ b) CEMEX has a bargain purchase option to acquire the asset at the end of the lease term; c) the lease term covers the majority of the useful life of the asset; and/or d) the NPV of minimum payments represents substantially all the fair value of the related asset at the beginning of the lease. Financial instruments with components of both liabilities and equity (note 16.2) 9MJ_ÜªSFSHNFQ_NSXYWZRJSY_YMFY_HTSYFNSX_HTRUTSJSYX_TK_GTYM_QNFGNQNY^_FSI_JVZNY^__XZHM_FX_STYJX_HTS[JWYNGQJ_NSYT_F_Üª]JI_SZRGJW_TK_YMJ_NXXZJWÑ£X_ XMFWJX_FSI_IJSTRNSFYJI_NYX_XFRJ_KZSHYNTSFQ_HZWWJSH^__JFHM_HTRUTSJSY_NX_WJHTLSN_JI_XJUFWFYJQ^_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FHHTWINSL_ YT_YMJ_XUJHNÜªH_HMFWFHYJWNXYNHX_TK_JFHM_YWFSXFHYNTS__.S_YMJ_HFXJ_TK_NSXYWZRJSYX_RFSIFYTWNQ^_HTS[JWYNGQJ_NSYT_XMFWJX_TK_YMJ_NXXZJW__YMJ_QNFGNQNY^_ component represents the NPV of interest payments on the principal amount using a market interest rate, without assuming early conversion, and NX_WJHTLSN_JI_¥NYMNS_Ñ¦4YMJW_ÜªSFSHNFQ_TGQNLFYNTSX_Ñ§_¥MJWJFX_YMJ_JVZNY^_HTRUTSJSY_WJUWJXJSYX_YMJ_INKKJWJSHJ_GJY¥JJS_YMJ_UWNSHNUFQ_FRTZSY_FSI_YMJ_ QNFGNQNY^_HTRUTSJSY__FSI_NX_WJHTLSN_JI_¥NYMNS_Ñ¦4YMJW_JVZNY^_WJXJW[JX_Ñ§_SJY_TK_HTRRNXXNTSX__.S_YMJ_HFXJ_TK_NSXYWZRJSYX_YMFY_FWJ_TUYNTSFQQ^_HTS[JWYNGQJ_ NSYT_F_Üª]JI_SZRGJW_TK_XMFWJX__YMJ_QNFGNQNY^_HTRUTSJSY_WJUWJXJSYX_YMJ_INKKJWJSHJ_GJY¥JJS_YMJ_UWNSHNUFQ_FRTZSY_FSI_YMJ_KFNW_[FQZJ_TK_YMJ_HTS[JWXNTS_ TUYNTS_UWJRNZR__¥MNHM_WJÜ«JHYX_YMJ_JVZNY^_HTRUTSJSY_ STYJ________<MJS_YMJ_YWFSXFHYNTS_NX_IJSTRNSFYJI_NS_F_HZWWJSH^_INKKJWJSY_YMFS_YMJ_KZSHYNTSFQ_ HZWWJSH^_TK_YMJ_NXXZJW__YMJ_HTS[JWXNTS_TUYNTS_NX_FHHTZSYJI_KTW_FX_F_IJWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSY_FY_KFNW_[FQZJ_NS_YMJ_NSHTRJ_XYFYJRJSY_ )JWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSYX_ STYJ______ (*2*=_WJHTLSN_JX_FQQ_IJWN[FYN[J_NSXYWZRJSYX_FX_FXXJYX_TW_QNFGNQNYNJX_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FY_YMJNW_JXYNRFYJI_KFNW_[FQZJX__FSI_YMJ_ HMFSLJX_NS_XZHM_KFNW_[FQZJX_FWJ_WJHTLSN_JI_NS_YMJ_NSHTRJ_XYFYJRJSY_¥NYMNS_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_KTW_YMJ_UJWNTI_NS_¥MNHM_YMJ^_ THHZW__J]HJUY_KTW_YMJ_JKKJHYN[J_UTWYNTS_TK_HMFSLJX_NS_KFNW_[FQZJ_TK_IJWN[FYN[J_NSXYWZRJSYX_FXXTHNFYJI_¥NYM_HFXM_Ü«T¥_MJILJX__NS_¥MNHM_HFXJ__XZHM_ HMFSLJX_NS_KFNW_[FQZJ_FWJ_WJHTLSN_JI_NS_XYTHPMTQIJWXÑ£_JVZNY^__FSI_FWJ_WJHQFXXNÜªJI_YT_JFWSNSLX_FX_YMJ_NSYJWJXY_J]UJSXJ_TK_YMJ_WJQFYJI_IJGY_NX_FHHWZJI__ in the case of interest rate swaps, or when the underlying products are consumed in the case of contracts on the price of raw materials and commodities. Likewise, in hedges of the net investment in foreign subsidiaries, changes in fair value are recognized in stockholders’ equity as part of the foreign currency translation result (note 2.4), which reversal to earnings would take place upon disposal of the foreign investment. During the reported periods, CEMEX did not have derivatives designated as fair value hedges. Derivative instruments are negotiated with institutions ¥NYM_XNLSNÜªHFSY_ÜªSFSHNFQ_HFUFHNY^ _YMJWJKTWJ__(*2*=_GJQNJ[JX_YMJ_WNXP_TK_STS_UJWKTWRFSHJ_TK_YMJ_TGQNLFYNTSX_FLWJJI_YT_G^_XZHM_HTZSYJWUFWYNJX_YT_ be minimal. (*2*=_WJ[NJ¥X_NYX_HTSYWFHYX_YT_NIJSYNK^_YMJ_J]NXYJSHJ_TK_JRGJIIJI_IJWN[FYN[JX__.IJSYNÜªJI_JRGJIIJI_IJWN[FYN[JX_FWJ_FSFQ^_JI_YT_IJYJWRNSJ_NK_ YMJ^_SJJI_YT_GJ_XJUFWFYJI_KWTR_YMJ_MTXY_HTSYWFHY_FSI_WJHTLSN_JI_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FX_FXXJYX_TW_QNFGNQNYNJX__FUUQ^NSL_YMJ_XFRJ_ valuation rules used for other derivative instruments. Put options granted for the purchase of non-controlling interests and associates 7JUWJXJSY_FLWJJRJSYX_G^_RJFSX_TK_¥MNHM_F_STS_HTSYWTQQNSL_NSYJWJXY_MFX_YMJ_WNLMY_YT_XJQQ__FY_F_KZYZWJ_IFYJ_ZXNSL_F_UWJIJÜªSJI_UWNHJ_KTWRZQF_TW_FY_KFNW_ RFWPJY_[FQZJ__NYX_XMFWJX_NS_F_XZGXNINFW^_TK_(*2*=__<MJS_YMJ_TGQNLFYNTS_XMTZQI_GJ_XJYYQJI_NS_HFXM_TW_YMWTZLM_YMJ_IJQN[JW^_TK_FSTYMJW_ÜªSFSHNFQ_FXXJY__ CEMEX recognizes a liability for the NPV of the redemption amount as of the reporting date against the controlling interest within stockholders’ equity. A liability is not recognized under these agreements when the redemption amount is determined at fair market value at the exercise date and CEMEX has the election to settle using its own shares. In respect of a put option granted for the purchase of an associate, CEMEX would recognize a liability against a loss in the statements of operations whenever the estimated purchase price exceeds the fair value of the net assets to be acquired by CEMEX, had the counterparty exercised its right to sell. As of December 31, 2017 and 2016, there were no written put options. 91 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Fair value measurements (note 16.3) :SIJW_.+78__KFNW_[FQZJ_WJUWJXJSYX_FS_Ñ¦*]NY_;FQZJÑ§_¥MNHM_NX_YMJ_UWNHJ_YMFY_¥TZQI_GJ_WJHJN[JI_YT_XJQQ_FS_FXXJY_TW_UFNI_YT_YWFSXKJW_F_QNFGNQNY^_NS_FS_TWIJWQ^_ transaction between market participants at the measurement date, considering the counterparty’s credit risk in the valuation. The concept of Exit ;FQZJ_NX_UWJRNXJI_TS_YMJ_J]NXYJSHJ_TK_F_RFWPJY_FSI_RFWPJY_UFWYNHNUFSYX_KTW_YMJ_XUJHNÜªH_FXXJY_TW_QNFGNQNY^__<MJS_YMJWJ_NX_ST_RFWPJY_FSI_TW_RFWPJY_ participants willing to make a market, IFRS establishes a fair value hierarchy that gives the highest priority to unadjusted quoted prices in active RFWPJYX_KTW_NIJSYNHFQ_FXXJYX_TW_QNFGNQNYNJX_ 1J[JQ___RJFXZWJRJSYX__FSI_YMJ_QT¥JXY_UWNTWNY^_YT_RJFXZWJRJSYX_NS[TQ[NSL_XNLSNÜªHFSY_ZSTGXJW[FGQJ_ inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: • Level 1.- represent quoted prices (unadjusted) in active markets for identical assets or liabilities that CEMEX has the ability to access at the measurement date. A quote price in an active market provides the most reliable evidence of fair value and is used without adjustment to measure fair value whenever available. • Level 2.- are inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly, and are used mainly to determine the fair value of securities, investments or loans that are not actively traded. Level 2 inputs included equity prices, certain interest rates and yield curves, implied volatility and credit spreads, among others, as well as inputs extrapolated from other observable inputs. In the absence of Level 1 inputs, CEMEX determined fair values by iteration of the applicable Level 2 inputs, the number of securities and/ or the other relevant terms of the contract, as applicable. • Level 3.- inputs are unobservable inputs for the asset or liability. CEMEX used unobservable inputs to determine fair values, to the extent there FWJ_ST_1J[JQ___TW_1J[JQ___NSUZYX__NS_[FQZFYNTS_RTIJQX_XZHM_FX_‘QFHP_8HMTQJX__GNSTRNFQ__INXHTZSYJI_HFXM_Ü«T¥X_TW_RZQYNUQJX_TK_4UJWFYN[J_*’.9)&__ including risk assumptions consistent with what market participants would use to arrive at fair value. 2.7) Inventories (note 11) Inventories are valued using the lower of cost or net realizable value. The cost of inventories includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. CEMEX analyzes its inventory balances to determine if, as a result of internal events, such as physical damage, or external events, such as technological changes or market conditions, certain portions of such balances have become obsolete or impaired. When an impairment situation arises, the inventory balance is adjusted to its net realizable value, whereas, if an obsolescence situation occurs, the inventory obsolescence reserve is increased. In both cases, these adjustments are recognized against the results of the period. Advances to suppliers of inventory are presented as part of other current assets. 2.8) Property, machinery and equipment (note 14) Property, machinery and equipment are recognized at their acquisition or construction cost, as applicable, less accumulated depreciation and FHHZRZQFYJI_NRUFNWRJSY_QTXXJX__)JUWJHNFYNTS_TK_Üª]JI_FXXJYX_NX_WJHTLSN_JI_FX_UFWY_TK_HTXY_FSI_TUJWFYNSL_J]UJSXJX_ STYJ_____FSI_NX_HFQHZQFYJI_ using the straight-line method over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of- UWTIZHYNTS_RJYMTI__&X_TK_)JHJRGJW___________YMJ_F[JWFLJ_ZXJKZQ_QN[JX_G^_HFYJLTW^_TK_Üª]JI_FXXJYX_¥JWJ_FX_KTQQT¥X_ Years Administrative buildings 35 Industrial buildings 30 Machinery and equipment in plant 17 Ready-mix trucks and motor vehicles 9 4KÜªHJ_JVZNURJSY_FSI_TYMJW_FXXJYX_ _ 92 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information (*2*=_HFUNYFQN_JX__FX_UFWY_TK_YMJ_WJQFYJI_HTXY_TK_Üª]JI_FXXJYX__NSYJWJXY_J]UJSXJ_KWTR_J]NXYNSL_IJGY_IZWNSL_YMJ_HTSXYWZHYNTS_TW_NSXYFQQFYNTS_UJWNTI_TK_ XNLSNÜªHFSY_Üª]JI_FXXJYX__HTSXNIJWNSL_(*2*=Ñ£X_HTWUTWFYJ_F[JWFLJ_NSYJWJXY_WFYJ_FSI_YMJ_F[JWFLJ_GFQFSHJ_TK_NS[JXYRJSYX_NS_UWTHJXX_KTW_YMJ_UJWNTI_ All waste removal costs or stripping costs incurred in the operative phase of a surface mine in order to access the mineral reserves are recognized as part of the carrying amount of the related quarries. The capitalized amounts are further amortized over the expected useful life of exposed ore body based on the units of production method. (TXYX_NSHZWWJI_NS_WJXUJHY_TK_TUJWFYNSL_Üª]JI_FXXJYX_YMFY_WJXZQY_NS_KZYZWJ_JHTSTRNH_GJSJÜªYX__XZHM_FX_FS_J]YJSXNTS_NS_YMJNW_ZXJKZQ_QN[JX__FS_NSHWJFXJ_NS_YMJNW_ production capacity or in safety, as well as those costs incurred to mitigate or prevent environmental damage, are capitalized as part of the carrying FRTZSY_TK_YMJ_WJQFYJI_FXXJYX__9MJ_HFUNYFQN_JI_HTXYX_FWJ_IJUWJHNFYJI_T[JW_YMJ_WJRFNSNSL_ZXJKZQ_QN[JX_TK_XZHM_Üª]JI_FXXJYX__5JWNTINH_RFNSYJSFSHJ_TS_ Üª]JI_FXXJYX_NX_J]UJSXJI_FX_NSHZWWJI__&I[FSHJX_YT_XZUUQNJWX_TK_Üª]JI_FXXJYX_FWJ_UWJXJSYJI_FX_UFWY_TK_TYMJW_QTSL_YJWR_FHHTZSYX_WJHJN[FGQJ_ The useful lives and residual values of property, machinery and equipment are reviewed at each reporting date and adjusted if appropriate. 2.9) Business combinations, goodwill and other intangible assets (notes 4.1 and 15) Business combinations are recognized using the acquisition method, by allocating the consideration transferred to assume control of the entity to FQQ_FXXJYX_FHVZNWJI_FSI_QNFGNQNYNJX_FXXZRJI__GFXJI_TS_YMJNW_JXYNRFYJI_KFNW_[FQZJX_FX_TK_YMJ_FHVZNXNYNTS_IFYJ__.SYFSLNGQJ_FXXJYX_FHVZNWJI_FWJ_NIJSYNÜªJI_ and recognized at fair value. Any unallocated portion of the purchase price represents goodwill, which is not amortized and is subject to periodic impairment tests (note 2.10) . Goodwill may be adjusted for any correction to the preliminary assessment given to the assets acquired and/or liabilities assumed within the twelve-month period after purchase. Costs associated with the acquisition are expensed in the income statement as incurred. (*2*=_HFUNYFQN_JX_NSYFSLNGQJ_FXXJYX_FHVZNWJI__FX_¥JQQ_FX_HTXYX_NSHZWWJI_NS_YMJ_IJ[JQTURJSY_TK_NSYFSLNGQJ_FXXJYX__¥MJS_KZYZWJ_JHTSTRNH_GJSJÜªYX_ FXXTHNFYJI_FWJ_NIJSYNÜªJI_FSI_YMJWJ_NX_J[NIJSHJ_TK_HTSYWTQ_T[JW_XZHM_GJSJÜªYX__.SYFSLNGQJ_FXXJYX_FWJ_WJHTLSN_JI_FY_YMJNW_FHVZNXNYNTS_TW_IJ[JQTURJSY_ HTXY__FX_FUUQNHFGQJ__.SIJÜªSNYJ_QNKJ_NSYFSLNGQJ_FXXJYX_FWJ_STY_FRTWYN_JI_XNSHJ_YMJ_UJWNTI_NS_¥MNHM_YMJ_GJSJÜªYX_FXXTHNFYJI_¥NYM_XZHM_NSYFSLNGQJX_¥NQQ_ YJWRNSFYJ_HFSSTY_GJ_FHHZWFYJQ^_JXYFGQNXMJI__)JÜªSNYJ_QNKJ_NSYFSLNGQJ_FXXJYX_FWJ_FRTWYN_JI_TS_XYWFNLMY_QNSJ_GFXNX_FX_UFWY_TK_TUJWFYNSL_HTXYX_FSI_ expenses (note 5). Startup costs are recognized in the income statement as they are incurred. Costs associated with research and development activities (“R&D FHYN[NYNJXÑ§___UJWKTWRJI_G^_(*2*=_YT_HWJFYJ_UWTIZHYX_FSI_XJW[NHJX__FX_¥JQQ_FX_YT_IJ[JQTU_UWTHJXXJX__JVZNURJSY_FSI_RJYMTIX_YT_TUYNRN_J_TUJWFYNTSFQ_ JKÜªHNJSH^_FSI_WJIZHJ_HTXYX_FWJ_WJHTLSN_JI_NS_YMJ_TUJWFYNSL_WJXZQYX_FX_NSHZWWJI__)NWJHY_HTXYX_NSHZWWJI_NS_YMJ_IJ[JQTURJSY_XYFLJ_TK_HTRUZYJW_ software for internal use are capitalized and amortized through the operating results over the useful life of the software, which on average is approximately 5 years. Costs incurred in exploration activities such as payments for rights to explore, topographical and geological studies, as well as trenching, among TYMJW_NYJRX_NSHZWWJI_YT_FXXJXX_YMJ_YJHMSNHFQ_FSI_HTRRJWHNFQ_KJFXNGNQNY^_TK_J]YWFHYNSL_F_RNSJWFQ_WJXTZWHJ__¥MNHM_FWJ_STY_XNLSNÜªHFSY_YT_(*2*=__ FWJ_HFUNYFQN_JI_¥MJS_KZYZWJ_JHTSTRNH_GJSJÜªYX_FXXTHNFYJI_¥NYM_XZHM_FHYN[NYNJX_FWJ_NIJSYNÜªJI__<MJS_J]YWFHYNTS_GJLNSX__YMJXJ_HTXYX_FWJ_FRTWYN_JI_ IZWNSL_YMJ_ZXJKZQ_QNKJ_TK_YMJ_VZFWW^_GFXJI_TS_YMJ_JXYNRFYJI_YTSX_TK_RFYJWNFQ_YT_GJ_J]YWFHYJI__<MJS_KZYZWJ_JHTSTRNH_GJSJÜªYX_FWJ_STY_FHMNJ[JI__FS^_ capitalized costs are subject to impairment. CEMEX’s extraction rights have maximum useful lives that range from 30 to 100 years, depending on the sector and the expected life of the related reserves. As of December 31, 2017, except for extraction rights and/or as otherwise indicated, CEMEX’s intangible assets are amortized on a straight line basis over their useful lives that range on average from 3 to 20 years. 93 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 2.10) Impairment of long lived assets (notes 14 and 15) Property, machinery and equipment, intangible assets of definite life and other investments These assets are tested for impairment upon the occurrence of factors such as the occurrence of a significant adverse event, changes in CEMEX’s operating environment or in technology, as well as expectations of lower operating results, in order to determine whether their carrying amounts may not be recovered. An impairment loss is recorded in the income statement for the period within “Other expenses, net,” for the excess of the asset’s carrying amount over its recoverable amount, corresponding to the higher of the fair value less costs to sell the asset, and the asset’s value in use, the latter represented by the NPV of estimated cash flows related to the use and eventual disposal of the asset. The main assumptions utilized to develop estimates of NPV are a discount rate that reflects the risk of the cash flows associated with the assets and the estimations of generation of future income. Those assumptions are evaluated for reasonableness by comparing such discount rates to available market information and by comparing to third-party expectations of industry growth, such as governmental agencies or industry chambers. When impairment indicators exist, for each intangible asset, CEMEX determines its projected revenue streams over the estimated useful life of the asset. In order to obtain discounted cash flows attributable to each intangible asset, such revenues are adjusted for operating expenses, changes in working capital and other expenditures, as applicable, and discounted to NPV using the risk adjusted discount rate of return. The most significant economic assumptions are: a) the useful life of the asset; b) the risk adjusted discount rate of return; c) royalty rates; and d) growth rates. Assumptions used for these cash flows are consistent with internal forecasts and industry practices. The fair values of these assets are very sensitive to changes in such significant assumptions. Certain key assumptions are more subjective than others. In respect of trademarks, CEMEX considers that the most subjective key assumption is the royalty rate. In respect of extraction rights and customer relationships, the most subjective assumptions are revenue growth rates and estimated useful lives. CEMEX validates its assumptions through benchmarking with industry practices and the corroboration of third party valuation advisors. Significant judgment by management is required to appropriately assess the fair values and values in use of the related assets, as well as to determine the appropriate valuation method and select the significant economic assumptions. Impairment of long lived assets – Goodwill Goodwill is tested for impairment when required due to significant adverse changes or at least once a year, during the last quarter of such year. CEMEX determines the recoverable amount of the group of cash-generating units (“CGUs”) to which goodwill balances were allocated, which consists of the higher of such group of CGUs fair value less cost to sell and its value in use, the latter represented by the NPV of estimated future cash flows to be generated by such CGUs to which goodwill was allocated, which are generally determined over periods of 5 years. However, in specific circumstances, when CEMEX considers that actual results for a CGU do not fairly reflect historical performance and most external economic variables provide confidence that a reasonably determinable improvement in the mid-term is expected in their operating results, management uses cash flow projections over a period of up to 10 years, to the point in which future expected average performance resembles the historical average performance, to the extent CEMEX has detailed, explicit and reliable financial forecasts and is confident and can demonstrate its ability, based on past experience, to forecast cash flows accurately over that longer period. If the value in use of a group of CGUs to which goodwill has been allocated is lower than its corresponding carrying amount, CEMEX determines the fair value of such group of CGUs using methodologies generally accepted in the market to determine the value of entities, such as multiples of Operating EBITDA and by reference to other market transactions. An impairment loss is recognized within “Other expenses, net,” if the recoverable amount is lower than the net book value of the group of CGUs to which goodwill has been allocated. Impairment charges recognized on goodwill are not reversed in subsequent periods.

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information The geographic operating segments reported by CEMEX (note 4.4), represent CEMEX’s groups of CGUs to which goodwill has been allocated for purposes of testing goodwill for impairment, considering: a) that after the acquisition, goodwill was allocated at the level of the geographic operating segment; b) that the operating components that comprise the reported segment have similar economic characteristics; c) that the reported segments are used by CEMEX to organize and evaluate its activities in its internal information system; d) the homogeneous nature of the items produced and traded in each operative component, which are all used by the construction industry; e) the vertical integration in the value chain of the products comprising each component; f) the type of clients, which are substantially similar in all components; g) the operative NSYJLWFYNTS_FRTSL_HTRUTSJSYX _FSI_M__YMFY_YMJ_HTRUJSXFYNTS_X^XYJR_TK_F_XUJHNÜªH_HTZSYW^_NX_GFXJI_TS_YMJ_HTSXTQNIFYJI_WJXZQYX_TK_YMJ_LJTLWFUMNH_ segment and not on the particular results of the components. In addition, the country level represents the lowest level within CEMEX at which goodwill is monitored for internal management purposes. .RUFNWRJSY_YJXYX_FWJ_XNLSNÜªHFSYQ^_XJSXNYN[J_YT_YMJ_JXYNRFYNTS_TK_KZYZWJ_UWNHJX_TK_(*2*=Ñ£X_UWTIZHYX__YMJ_IJ[JQTURJSY_TK_TUJWFYNSL_J]UJSXJX__QTHFQ_ and international economic trends in the construction industry, the long-term growth expectations in the different markets, as well as the discount rates and the growth rates in perpetuity applied. For purposes of estimating future prices, CEMEX uses, to the extent available, historical data plus the expected increase or decrease according to information issued by trusted external sources, such as national construction or cement producer chambers and/or in governmental economic expectations. Operating expenses are normally measured as a constant proportion of revenues, following past experience. However, such operating expenses are also reviewed considering external information sources in respect of NSUZYX_YMFY_GJMF[J_FHHTWINSL_YT_NSYJWSFYNTSFQ_UWNHJX__XZHM_FX_TNQ_FSI_LFX__(*2*=_ZXJX_XUJHNÜªH_UWJ_YF]_INXHTZSY_WFYJX_KTW_JFHM_LWTZU_TK_(,:X_YT_ ¥MNHM_LTTI¥NQQ_NX_FQQTHFYJI__¥MNHM_FWJ_FUUQNJI_YT_INXHTZSY_UWJ_YF]_HFXM_Ü«T¥X__9MJ_FRTZSYX_TK_JXYNRFYJI_ZSINXHTZSYJI_HFXM_Ü«T¥X_FWJ_XNLSNÜªHFSYQ^_ XJSXNYN[J_YT_YMJ_LWT¥YM_WFYJ_NS_UJWUJYZNY^_FUUQNJI__1NPJ¥NXJ__YMJ_FRTZSYX_TK_INXHTZSYJI_JXYNRFYJI_KZYZWJ_HFXM_Ü«T¥X_FWJ_XNLSNÜªHFSYQ^_XJSXNYN[J_YT_YMJ_ weighted average cost of capital (discount rate) applied. The higher the growth rate in perpetuity applied, the higher the amount of undiscounted KZYZWJ_HFXM_Ü«T¥X_G^_LWTZU_TK_(,:X_TGYFNSJI__(TS[JWXJQ^__YMJ_MNLMJW_YMJ_INXHTZSY_WFYJ_FUUQNJI__YMJ_QT¥JW_YMJ_FRTZSY_TK_INXHTZSYJI_JXYNRFYJI_ KZYZWJ_HFXM_Ü«T¥X_G^_LWTZU_TK_(,:X_TGYFNSJI_ 2.11) Provisions (*2*=_WJHTLSN_JX_UWT[NXNTSX_¥MJS_NY_MFX_F_QJLFQ_TW_HTSXYWZHYN[J_TGQNLFYNTS_WJXZQYNSL_KWTR_UFXY_J[JSYX__¥MTXJ_WJXTQZYNTS_¥TZQI_NRUQ^_HFXM_TZYÜ«T¥X_ TW_YMJ_IJQN[JW^_TK_TYMJW_WJXTZWHJX_T¥SJI_G^_YMJ_(TRUFS^__&X_TK_)JHJRGJW__________FSI______XTRJ_XNLSNÜªHFSY_UWTHJJINSLX_YMFY_LF[J_WNXJ_YT_F_ portion of the carrying amount of CEMEX’s other current and non-current liabilities and provisions are detailed in note 24.1. Considering guidance under IFRS, CEMEX recognizes provisions for levies imposed by governments until the obligating event or the activity that YWNLLJWX_YMJ_UF^RJSY_TK_YMJ_QJ[^_MFX_THHZWWJI__FX_IJÜªSJI_NS_YMJ_QJLNXQFYNTS_ Restructuring (*2*=_WJHTLSN_JX_UWT[NXNTSX_KTW_WJXYWZHYZWNSL_¥MJS_YMJ_WJXYWZHYZWNSL_IJYFNQJI_UQFSX_MF[J_GJJS_UWTUJWQ^_ÜªSFQN_JI_FSI_FZYMTWN_JI_G^_RFSFLJRJSY__ FSI_MF[J_GJJS_HTRRZSNHFYJI_YT_YMJ_YMNWI_UFWYNJX_NS[TQ[JI_FSI_TW_FKKJHYJI_G^_YMJ_WJXYWZHYZWNSL_UWNTW_YT_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_IFYJ__ These provisions may include costs not associated with CEMEX’s ongoing activities. 95 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Asset retirement obligations (note 17) Unavoidable obligations, legal or constructive, to restore operating sites upon retirement of long-lived assets at the end of their useful lives are RJFXZWJI_FY_YMJ_35;_TK_JXYNRFYJI_KZYZWJ_HFXM_Ü«T¥X_YT_GJ_NSHZWWJI_NS_YMJ_WJXYTWFYNTS_UWTHJXX__FSI_FWJ_NSNYNFQQ^_WJHTLSN_JI_FLFNSXY_YMJ_WJQFYJI_ assets’ book value. The increase to the assets’ book value is depreciated during its remaining useful life. The increase in the liability related to FIOZXYRJSYX_YT_35;_G^_YMJ_UFXXFLJ_TK_YNRJ_NX_HMFWLJI_YT_YMJ_QNSJ_NYJR_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJY_Ñ§_&IOZXYRJSYX_YT_YMJ_QNFGNQNY^_KTW_ HMFSLJX_NS_JXYNRFYNTSX_FWJ_WJHTLSN_JI_FLFNSXY_Üª]JI_FXXJYX__FSI_IJUWJHNFYNTS_NX_RTINÜªJI_UWTXUJHYN[JQ^__9MJXJ_TGQNLFYNTSX_FWJ_WJQFYJI_RFNSQ^_ to future costs of demolition, cleaning and reforestation, so that quarries, maritime terminals and other production sites are left in acceptable condition at the end of their operation. Costs related to remediation of the environment (notes 17 and 24) Provisions associated with environmental damage represent the estimated future cost of remediation, which are recognized at their nominal [FQZJ_¥MJS_YMJ_YNRJ_XHMJIZQJ_KTW_YMJ_INXGZWXJRJSY_NX_STY_HQJFW__TW_¥MJS_YMJ_JHTSTRNH_JKKJHY_KTW_YMJ_UFXXFLJ_TK_YNRJ_NX_STY_XNLSNÜªHFSY _TYMJW¥NXJ__ such provisions are recognized at their discounted values. Reimbursements from insurance companies are recognized as assets only when their recovery is practically certain. In that case, such reimbursement assets are not offset against the provision for remediation costs. Contingencies and commitments (notes 23 and 24) 4GQNLFYNTSX_TW_QTXXJX_WJQFYJI_YT_HTSYNSLJSHNJX_FWJ_WJHTLSN_JI_FX_QNFGNQNYNJX_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_TSQ^_¥MJS_UWJXJSY_TGQNLFYNTSX_J]NXY_ WJXZQYNSL_KWTR_UFXY_J[JSYX_YMFY_FWJ_J]UJHYJI_YT_WJXZQY_NS_FS_TZYÜ«T¥_TK_WJXTZWHJX_FSI_YMJ_FRTZSY_HFS_GJ_RJFXZWJI_WJQNFGQ^__4YMJW¥NXJ__F_VZFQNYFYN[J_ INXHQTXZWJ_NX_NSHQZIJI_NS_YMJ_STYJX_YT_YMJ_ÜªSFSHNFQ_XYFYJRJSYX__9MJ_JKKJHYX_TK_QTSL_YJWR_HTRRNYRJSYX_JXYFGQNXMJI_¥NYM_YMNWI_UFWYNJX__XZHM_FX_XZUUQ^_ HTSYWFHYX_¥NYM_XZUUQNJWX_TW_HZXYTRJWX__FWJ_WJHTLSN_JI_NS_YMJ_ÜªSFSHNFQ_XYFYJRJSYX_TS_FS_NSHZWWJI_TW_FHHWZJI_GFXNX__FKYJW_YFPNSL_NSYT_HTSXNIJWFYNTS_ YMJ_XZGXYFSHJ_TK_YMJ_FLWJJRJSYX__7JQJ[FSY_HTRRNYRJSYX_FWJ_INXHQTXJI_NS_YMJ_STYJX_YT_YMJ_ÜªSFSHNFQ_XYFYJRJSYX__9MJ_(TRUFS^_ITJX_STY_WJHTLSN_J_ contingent revenues, income or assets, unless their realization is virtually certain. ______5JSXNTSX_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX_ STYJ____ )JÜªSJI_HTSYWNGZYNTS_UJSXNTS_UQFSX 9MJ_HTXYX_TK_IJÜªSJI_HTSYWNGZYNTS_UJSXNTS_UQFSX_FWJ_WJHTLSN_JI_NS_YMJ_TUJWFYNSL_WJXZQYX_FX_YMJ^_FWJ_NSHZWWJI__1NFGNQNYNJX_FWNXNSL_KWTR_XZHM_UQFSX_FWJ_ settled through cash transfers to the employees’ retirement accounts, without generating future obligations. )JÜªSJI_GJSJÜªY_UJSXNTS_UQFSX_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX 9MJ_HTXYX_FXXTHNFYJI_¥NYM_JRUQT^JJXÑ£_GJSJÜªYX_KTW__F__IJÜªSJI_GJSJÜªY_UJSXNTS_UQFSX _FSI_G__TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX__GFXNHFQQ^_HTRUWNXJI_ TK_MJFQYM_HFWJ_GJSJÜªYX__QNKJ_NSXZWFSHJ_FSI_XJSNTWNY^_UWJRNZRX__LWFSYJI_G^_(*2*=_FSI_TW_UZWXZFSY_YT_FUUQNHFGQJ_QF¥__FWJ_WJHTLSN_JI_FX_XJW[NHJX_ FWJ_WJSIJWJI__GFXJI_TS_FHYZFWNFQ_JXYNRFYNTSX_TK_YMJ_GJSJÜªYXÑ£_UWJXJSY_[FQZJ_¥NYM_YMJ_FI[NHJ_TK_J]YJWSFQ_FHYZFWNJX__+TW_HJWYFNS_UJSXNTS_UQFSX__(*2*=_ MFX_HWJFYJI_NWWJ[THFGQJ_YWZXY_KZSIX_YT_HT[JW_KZYZWJ_GJSJÜªY_UF^RJSYX_ Ñ¦UQFS_FXXJYXÑ§___9MJXJ_UQFS_FXXJYX_FWJ_[FQZJI_FY_YMJNW_JXYNRFYJI_KFNW_[FQZJ_FY_ YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_IFYJ__9MJ_FHYZFWNFQ_FXXZRUYNTSX_FSI_FHHTZSYNSL_UTQNH^_HTSXNIJW__F__YMJ_ZXJ_TK_STRNSFQ_WFYJX _G__F_XNSLQJ_WFYJ_NX_ ZXJI_KTW_YMJ_IJYJWRNSFYNTS_TK_YMJ_J]UJHYJI_WJYZWS_TS_UQFS_FXXJYX_FSI_YMJ_INXHTZSY_TK_YMJ_GJSJÜªYX_TGQNLFYNTS_YT_UWJXJSY_[FQZJ _H__F_SJY_NSYJWJXY_NX_ WJHTLSN_JI_TS_YMJ_SJY_IJÜªSJI_GJSJÜªY_QNFGNQNY^_ QNFGNQNY^_RNSZX_UQFS_FXXJYX_ _FSI_I__FQQ_FHYZFWNFQ_LFNSX_FSI_QTXXJX_KTW_YMJ_UJWNTI__WJQFYJI_YT_INKKJWJSHJX_ between the projected and real actuarial assumptions at the end of the period, as well as the difference between the expected and real return on UQFS_FXXJYX__FWJ_WJHTLSN_JI_FX_UFWY_TK_Ñ¦4YMJW_NYJRX_TK_HTRUWJMJSXN[J_NSHTRJ__SJYÑ§_¥NYMNS_XYTHPMTQIJWXÑ£_JVZNY^_ 9MJ_XJW[NHJ_HTXY__HTWWJXUTSINSL_YT_YMJ_NSHWJFXJ_NS_YMJ_TGQNLFYNTS_KTW_FIINYNTSFQ_GJSJÜªYX_JFWSJI_G^_JRUQT^JJX_IZWNSL_YMJ_UJWNTI__NX_WJHTLSN_JI_¥NYMNS_ operating costs and expenses. The net interest cost, resulting from the increase in obligations for changes in NPV and the change during the period NS_YMJ_JXYNRFYJI_KFNW_[FQZJ_TK_UQFS_FXXJYX__NX_WJHTLSN_JI_¥NYMNS_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJY_Ñ§ 96 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 9MJ_JKKJHYX_KWTR_RTINÜªHFYNTSX_YT_YMJ_UJSXNTS_UQFSX_YMFY_FKKJHY_YMJ_HTXY_TK_UFXY_XJW[NHJX_FWJ_WJHTLSN_JI_¥NYMNS_TUJWFYNSL_HTXYX_FSI_J]UJSXJX_ T[JW_YMJ_UJWNTI_NS_¥MNHM_XZHM_RTINÜªHFYNTSX_GJHTRJ_JKKJHYN[J_YT_YMJ_JRUQT^JJX_TW_¥NYMTZY_IJQF^_NK_HMFSLJX_FWJ_JKKJHYN[J_NRRJINFYJQ^__1NPJ¥NXJ__ YMJ_JKKJHYX_KWTR_HZWYFNQRJSYX_FSI_TW_XJYYQJRJSYX_TK_TGQNLFYNTSX_THHZWWNSL_IZWNSL_YMJ_UJWNTI__FXXTHNFYJI_¥NYM_J[JSYX_YMFY_XNLSNÜªHFSYQ^_WJIZHJ_ YMJ_HTXY_TK_KZYZWJ_XJW[NHJX_FSI_TW_WJIZHJ_XNLSNÜªHFSYQ^_YMJ_UTUZQFYNTS_XZGOJHY_YT_UJSXNTS_GJSJÜªYX__WJXUJHYN[JQ^__FWJ_WJHTLSN_JI_¥NYMNS_TUJWFYNSL_ costs and expenses. 9JWRNSFYNTS_GJSJÜªYX 9JWRNSFYNTS_GJSJÜªYX__STY_FXXTHNFYJI_¥NYM_F_WJXYWZHYZWNSL_J[JSY__¥MNHM_RFNSQ^_WJUWJXJSY_XJ[JWFSHJ_UF^RJSYX_G^_QF¥__FWJ_WJHTLSN_JI_NS_YMJ_TUJWFYNSL_ results for the period in which they are incurred. 2.13) Income taxes (note 19) 9MJ_JKKJHYX_WJÜ«JHYJI_NS_YMJ_NSHTRJ_XYFYJRJSY_KTW_NSHTRJ_YF]JX_NSHQZIJ_YMJ_FRTZSYX_NSHZWWJI_IZWNSL_YMJ_UJWNTI_FSI_YMJ_FRTZSYX_TK_IJKJWWJI_NSHTRJ_ taxes, determined according to the income tax law applicable to each subsidiary. Consolidated deferred income taxes represent the addition of the amounts determined in each subsidiary by applying the enacted statutory income tax rate to the total temporary differences resulting from comparing the book and taxable values of assets and liabilities, considering tax assets such as loss carryforwards and other recoverable taxes, to YMJ_J]YJSY_YMFY_NY_NX_UWTGFGQJ_YMFY_KZYZWJ_YF]FGQJ_UWTÜªYX_¥NQQ_GJ_F[FNQFGQJ_FLFNSXY_¥MNHM_YMJ^_HFS_GJ_ZYNQN_JI__9MJ_RJFXZWJRJSY_TK_IJKJWWJI_NSHTRJ_ YF]JX_FY_YMJ_WJUTWYNSL_UJWNTI_WJÜ«JHYX_YMJ_YF]_HTSXJVZJSHJX_YMFY_KTQQT¥_YMJ_RFSSJW_NS_¥MNHM_(*2*=_J]UJHYX_YT_WJHT[JW_TW_XJYYQJ_YMJ_HFWW^NSL_ amount of its assets and liabilities. Deferred income taxes for the period represent the difference between balances of deferred income taxes at the beginning and the end of the period. Deferred income tax assets and liabilities relating to different tax jurisdictions are not offset. According to IFRS, all items charged or credited directly in stockholders’ equity or as part of other comprehensive income or loss for the period are recognized net of their current and deferred income tax effects. The effect of a change in enacted statutory tax rates is recognized in the period in which the HMFSLJ_NX_TKÜªHNFQQ^_JSFHYJI_ )JKJWWJI_YF]_FXXJYX_FWJ_WJ[NJ¥JI_FY_JFHM_WJUTWYNSL_IFYJ_FSI_FWJ_WJIZHJI_¥MJS_NY_NX_STY_IJJRJI_UWTGFGQJ_YMFY_YMJ_WJQFYJI_YF]_GJSJÜªY_¥NQQ_GJ_WJFQN_JI__ considering the aggregate amount of self-determined tax loss carryforwards that CEMEX believes will not be rejected by the tax authorities based on available evidence and the likelihood of recovering them prior to their expiration through an analysis of estimated future taxable income. If it is probable that the tax authorities would reject a self-determined deferred tax asset, CEMEX would decrease such asset. When it is considered that a deferred tax asset will not be recovered before its expiration, CEMEX would not recognize such deferred tax asset. Both situations would result in additional income tax expense for the period in which such determination is made. In order to determine whether it is probable that deferred tax assets will ultimately be recovered, CEMEX takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, expansion plans, projected taxable income, carryforward periods, current tax structure, potential changes or adjustments in tax structure, tax planning strategies, future reversals of existing temporary differences. Likewise, CEMEX analyzes its actual results versus the Company’s estimates, and adjusts, as necessary, its tax asset valuations. If actual results vary from CEMEX’s estimates, the deferred tax asset and/or valuations may be affected and necessary adjustments will be made based on relevant information in CEMEX’s income statement for such period. The income tax effects from an uncertain tax position are recognized when is probable that the position will be sustained based on its technical merits and assuming that the tax authorities will examine each position and have full knowledge of all relevant information, and they are measured using a cumulative probability model. Each position has been considered on its own, regardless of its relation to any other broader tax settlement. 9MJ_MNLM_UWTGFGNQNY^_YMWJXMTQI_WJUWJXJSYX_F_UTXNYN[J_FXXJWYNTS_G^_RFSFLJRJSY_YMFY_(*2*=_NX_JSYNYQJI_YT_YMJ_JHTSTRNH_GJSJÜªYX_TK_F_YF]_UTXNYNTS__.K_F_ YF]_UTXNYNTS_NX_HTSXNIJWJI_STY_UWTGFGQJ_TK_GJNSL_XZXYFNSJI__ST_GJSJÜªYX_TK_YMJ_UTXNYNTS_FWJ_WJHTLSN_JI__.SYJWJXY_FSI_UJSFQYNJX_WJQFYJI_YT_ZSWJHTLSN_JI_ YF]_GJSJÜªYX_FWJ_WJHTWIJI_FX_UFWY_TK_YMJ_NSHTRJ_YF]_NS_YMJ_HTSXTQNIFYJI_NSHTRJ_XYFYJRJSYX_ 97 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 9MJ_JKKJHYN[J_NSHTRJ_YF]_WFYJ_NX_IJYJWRNSJI_IN[NINSL_YMJ_QNSJ_NYJR_Ñ¦.SHTRJ_9F]Ñ§_G^_YMJ_QNSJ_NYJR_Ñ¦*FWSNSLX_GJKTWJ_NSHTRJ_YF]_Ñ§_9MNX_JKKJHYN[J_YF]_ WFYJ_NX_KZWYMJW_WJHTSHNQJI_YT_(*2*=Ñ£X_XYFYZYTW^_YF]_WFYJ_FUUQNHFGQJ_NS_2J]NHT_ STYJ________&_XNLSNÜªHFSY_JKKJHY_NS_(*2*=Ñ£X_JKKJHYN[J_YF]_WFYJ_FSI_ consequently in the aforementioned reconciliation of CEMEX’s effective tax rate, relates to the difference between the statutory income tax rate in Mexico of 30% against the applicable income tax rates of each country where CEMEX operates. For the years ended December 31, 2017, 2016 and 2015, the statutory tax rates in CEMEX’s main operations were as follows: Country 2017 2016 2015 Mexico 30.0% 30.0% 30.0% United States 35.0% 35.0% 35.0% United Kingdom 19.3% 20.0% 20.3% France 34.4% 34.4% 38.0% Germany 28.2% 28.2% 29.8% Spain 25.0% 25.0% 28.0% Philippines 30.0% 30.0% 30.0% Colombia 40.0% 40.0% 39.0% Egypt 22.5% 22.5% 22.5% Switzerland 9.6% 9.6% 9.6% Others 7.8%—39.0% 7.8%—39.0% 7.8%—39.0% CEMEX’s current and deferred income tax amounts included in the income statement for the period are highly variable, and are subject, among other factors, to taxable income determined in each jurisdiction in which CEMEX operates. Such amounts of taxable income depend on factors XZHM_FX_XFQJ_[TQZRJX_FSI_UWNHJX__HTXYX_FSI_J]UJSXJX__J]HMFSLJ_WFYJX_Ü«ZHYZFYNTSX_FSI_NSYJWJXY_TS_IJGY__FRTSL_TYMJWX__FX_¥JQQ_FX_YT_YMJ_JXYNRFYJI_ tax assets at the end of the period due to the expected future generation of taxable gains in each jurisdiction. 2.14) Stockholders’ equity Common stock and additional paid-in capital (note 20.1) These items represent the value of stockholders’ contributions, and include increases related to the capitalization of retained earnings and the recognition of executive compensation programs in CEMEX’s CPOs as well as decreases associated with the restitution of retained earnings. Other equity reserves (note 20.2) Groups the cumulative effects of items and transactions that are, temporarily or permanently, recognized directly to stockholders’ equity, and NSHQZIJX_YMJ_HTRUWJMJSXN[J_NSHTRJ__¥MNHM_WJÜ«JHYX_HJWYFNS_HMFSLJX_NS_XYTHPMTQIJWXÑ£_JVZNY^_YMFY_IT_STY_WJXZQY_KWTR_NS[JXYRJSYX_G^_T¥SJWX_FSI_ INXYWNGZYNTSX_YT_T¥SJWX__9MJ_RTXY_XNLSNÜªHFSY_NYJRX_¥NYMNS_Ñ¦4YMJW_JVZNY^_WJXJW[JXÑ§_IZWNSL_YMJ_WJUTWYJI_UJWNTIX_FWJ_FX_KTQQT¥X_ .YJRX_TK_Ñ¦4YMJW_JVZNY^_WJXJW[JXÑ§_NSHQZIJI_¥NYMNS_TYMJW_HTRUWJMJSXN[J_NSHTRJ_ • Currency translation effects from the translation of foreign subsidiaries, net of: a) exchange results from foreign currency debt directly related to the acquisition of foreign subsidiaries; and b) exchange results from foreign currency related parties balances that are of a non-current investment class (note 2.4); Ñ¬_ 9MJ_JKKJHYN[J_UTWYNTS_TK_YMJ_[FQZFYNTS_FSI_QNVZNIFYNTS_JKKJHYX_KWTR_IJWN[FYN[J_NSXYWZRJSYX_ZSIJW_HFXM_Ü«T¥_MJILNSL_WJQFYNTSXMNUX__¥MNHM_FWJ_ recorded temporarily in stockholders’ equity (note 2.6); • Changes in fair value of available-for-sale investments until their disposal (note 2.6); and • Current and deferred income taxes during the period arising from items whose effects are directly recognized in stockholders’ equity. 98 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information .YJRX_TK_Ñ¦4YMJW_JVZNY^_WJXJW[JXÑ§_STY_NSHQZIJI_NS_HTRUWJMJSXN[J_NSHTRJ_ • Effects related to controlling stockholders’ equity for changes or transactions affecting non-controlling interest stockholders in CEMEX’s consolidated subsidiaries; Ñ¬_ *KKJHYX_FYYWNGZYFGQJ_YT_HTSYWTQQNSL_XYTHPMTQIJWXÑ£_JVZNY^_KTW_ÜªSFSHNFQ_NSXYWZRJSYX_NXXZJI_G^_HTSXTQNIFYJI_XZGXNINFWNJX_YMFY_VZFQNK^_KTW_FHHTZSYNSL_ purposes as equity instruments, such as the interest expense paid on perpetual debentures; • The equity component of securities which are mandatorily or optionally convertible into shares of the Parent Company (notes 2.6 and 16.2) . :UTS_HTS[JWXNTS__YMNX_FRTZSY_¥NQQ_GJ_WJHQFXXNÜªJI_YT_HTRRTS_XYTHP_FSI_FIINYNTSFQ_UFNI_NS_HFUNYFQ _FSI • The cancellation of the Parent Company’s shares held by consolidated entities. Retained earnings (note 20.3) Retained earnings represent the cumulative net results of prior years, net of: a) dividends declared; b) capitalization of retained earnings; and c) restitution of retained earnings when applicable. Non-controlling interest and perpetual debentures (note 20.4) This caption includes the share of non-controlling stockholders in the results and equity of consolidated subsidiaries. This caption also includes YMJ_STRNSFQ_FRTZSY_TK_ÜªSFSHNFQ_NSXYWZRJSYX_ UJWUJYZFQ_STYJX__NXXZJI_G^_HTSXTQNIFYJI_JSYNYNJX_YMFY_VZFQNK^_FX_JVZNY^_NSXYWZRJSYX_HTSXNIJWNSL_YMFY_ YMJWJ_NX__F__ST_HTSYWFHYZFQ_TGQNLFYNTS_YT_IJQN[JW_HFXM_TW_FSTYMJW_ÜªSFSHNFQ_FXXJY _G__ST_UWJIJÜªSJI_RFYZWNY^_IFYJ _FSI_H__FS_ZSNQFYJWFQ_TUYNTS_YT_IJKJW_ interest payments or preferred dividends for indeterminate periods. 2.15) Revenue recognition (note 3) Beginning January 1, 2018, IFRS 15, Revenue from contracts with customers is effective, see note 2.20. Until December 31, 2017, CEMEX’s policy for revenue recognition is set forth below: CEMEX’s consolidated net sales represent the value, before tax on sales, of revenues originated by products and services sold by consolidated XZGXNINFWNJX_FX_F_WJXZQY_TK_YMJNW_TWINSFW^_FHYN[NYNJX__FKYJW_YMJ_JQNRNSFYNTS_TK_YWFSXFHYNTSX_GJY¥JJS_WJQFYJI_UFWYNJX__FSI_FWJ_VZFSYNÜªJI_FY_YMJ_KFNW_[FQZJ_ of the consideration received or receivable, decreased by any trade discounts or volume rebates granted to customers. Revenue from the sale of goods and services is recognized when goods are delivered or services are rendered to customers, there is no condition or uncertainty implying a reversal thereof, and they have assumed the risk of loss. Revenue from trading activities, in which CEMEX acquires ÜªSNXMJI_LTTIX_KWTR_F_YMNWI_UFWY^_FSI_XZGXJVZJSYQ^_XJQQX_YMJ_LTTIX_YT_FSTYMJW_YMNWI_UFWY^__FWJ_WJHTLSN_JI_TS_F_LWTXX_GFXNX__HTSXNIJWNSL_YMFY_(*2*=_ assumes the total risk on the goods purchased, not acting as agent or broker. Revenue and costs related to construction contracts are recognized in the period in which the work is performed by reference to the contract’s XYFLJ_TK_HTRUQJYNTS_FY_YMJ_JSI_TK_YMJ_UJWNTI__HTSXNIJWNSL_YMFY_YMJ_KTQQT¥NSL_MF[J_GJJS_IJÜªSJI__F__JFHM_UFWY^Ñ£X_JSKTWHJFGQJ_WNLMYX_WJLFWINSL_YMJ_ asset under construction; b) the consideration to be exchanged; c) the manner and terms of settlement; d) actual costs incurred and contract costs WJVZNWJI_YT_HTRUQJYJ_YMJ_FXXJY_FWJ_JKKJHYN[JQ^_HTSYWTQQJI _FSI_J__NY_NX_UWTGFGQJ_YMFY_YMJ_JHTSTRNH_GJSJÜªYX_FXXTHNFYJI_¥NYM_YMJ_HTSYWFHY_¥NQQ_Ü«T¥_YT_ the entity. 99 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information The stage of completion of construction contracts represents the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs or the surveys of work performed or the physical proportion of the contract work completed, whichever better WJÜ«JHYX_YMJ_UJWHJSYFLJ_TK_HTRUQJYNTS_ZSIJW_YMJ_XUJHNÜªH_HNWHZRXYFSHJX__5WTLWJXX_UF^RJSYX_FSI_FI[FSHJX_WJHJN[JI_KWTR_HZXYTRJWX_IT_STY_WJÜ«JHY_ the work performed and are recognized as a short or long term advanced payments, as appropriate. 2.16) Cost of sales and operating expenses (note 5) Cost of sales represents the production cost of inventories at the moment of sale. Such cost of sales includes depreciation, amortization and depletion of assets involved in production, expenses related to storage in production plants and freight expenses of raw material in plants and delivery expenses of CEMEX’s ready-mix concrete business. Administrative expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortization, WJQFYJI_YT_RFSFLJWNFQ_FHYN[NYNJX_FSI_GFHP_TKÜªHJ_KTW_YMJ_(TRUFS^Ñ£X_RFSFLJRJSY_ Sales expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortization, involved XUJHNÜªHFQQ^_NS_XFQJX_FHYN[NYNJX_ Distribution and logistics expenses refer to expenses of storage at points of sales, including depreciation and amortization, as well as freight J]UJSXJX_TK_ÜªSNXMJI_UWTIZHYX_GJY¥JJS_UQFSYX_FSI_UTNSYX_TK_XFQJ_FSI_KWJNLMY_J]UJSXJX_GJY¥JJS_UTNSYX_TK_XFQJX_FSI_YMJ_HZXYTRJWXÑ£_KFHNQNYNJX_ 2.17) Executive share-based compensation (note 21) 8MFWJ_GFXJI_UF^RJSYX_YT_J]JHZYN[JX_FWJ_IJÜªSJI_FX_JVZNY^_NSXYWZRJSYX_¥MJS_XJW[NHJX_WJHJN[JI_KWTR_JRUQT^JJX_FWJ_XJYYQJI_G^_IJQN[JWNSL_XMFWJX_ of the Parent Company and/or a subsidiary; or as liability instruments when CEMEX commits to make cash payments to the executives on the exercise date of the awards based on changes in the Parent Company and/or subsidiary’s own stock (intrinsic value). The cost of equity instruments represents their estimated fair value at the date of grant and is recognized in the income statement during the period in which the exercise rights of the employees become vested. In respect of liability instruments, these instruments are valued at their estimated fair value at each reporting date, recognizing the changes in fair value through the operating results. CEMEX determines the estimated fair value at the date of grant of stock compensation programs with performance conditions using Monte Carlo simulations. 2.18) Emission rights In certain countries where CEMEX operates, such as EU countries, mechanisms aimed at reducing carbon dioxide emissions (“CO2Ñ§__MF[J_GJJS_ JXYFGQNXMJI_G^_RJFSX_TK_¥MNHM__YMJ_WJQJ[FSY_JS[NWTSRJSYFQ_FZYMTWNYNJX_MF[J_LWFSYJI_HJWYFNS_SZRGJW_TK_JRNXXNTS_WNLMYX_ Ñ¦HJWYNÜªHFYJXÑ§__KWJJ_TK_HTXY_ to the different industries releasing CO2__¥MNHM_RZXY_XZGRNY_YT_XZHM_JS[NWTSRJSYFQ_FZYMTWNYNJX_FY_YMJ_JSI_TK_F_HTRUQNFSHJ_UJWNTI__HJWYNÜªHFYJX_KTW_ a volume equivalent to the tons of CO2_WJQJFXJI__(TRUFSNJX_RZXY_TGYFNS_FIINYNTSFQ_HJWYNÜªHFYJX_YT_RJJY_IJÜªHNYX_GJY¥JJS_FHYZFQ_(42 emissions IZWNSL_YMJ_HTRUQNFSHJ_UJWNTI_FSI_HJWYNÜªHFYJX_WJHJN[JI__TW_YMJ^_HFS_INXUTXJ_TK_FS^_XZWUQZX_TK_HJWYNÜªHFYJX_NS_YMJ_RFWPJY__.S_FIINYNTS__YMJ_:SNYJI_ 3FYNTSX_+WFRJ¥TWP_(TS[JSYNTS_TS_(QNRFYJ_(MFSLJ_ Ñ¦:3+(((Ñ§__LWFSYX_(JWYNÜªJI_*RNXXNTS_7JIZHYNTSX_ Ñ¦(*7XÑ§__YT_VZFQNÜªJI_(42 emission reduction UWTOJHYX__(*7X_RF^_GJ_ZXJI_NS_XUJHNÜªJI_UWTUTWYNTSX_YT_XJYYQJ_JRNXXNTS_WNLMYX_TGQNLFYNTSX_NS_YMJ_*:__(*2*=_FHYN[JQ^_UFWYNHNUFYJX_NS_YMJ_IJ[JQTURJSY_ of projects aimed to reduce CO2 emissions. Some of these projects have been awarded with CERs. 100 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information CEMEX does not maintain emission rights, CERs and/or enter into forward transactions with trading purposes. CEMEX accounts for the effects associated with CO2 emission reduction mechanisms as follows: Ñ¬_ (JWYNÜªHFYJX_WJHJN[JI_KTW_KWJJ_FWJ_STY_WJHTLSN_JI_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS__7J[JSZJX_KWTR_YMJ_XFQJ_TK_FS^_XZWUQZX_TK_HJWYNÜªHFYJX_ are recognized by decreasing cost of sales. In forward sale transactions, revenues are recognized upon physical delivery of the emission HJWYNÜªHFYJX_ Ñ¬_ (JWYNÜªHFYJX_FSI_TW_(*7X_FHVZNWJI_YT_MJILJ_HZWWJSY_(42 emissions are recognized as intangible assets at cost, and are further amortized to cost TK_XFQJX_IZWNSL_YMJ_HTRUQNFSHJ_UJWNTI__.S_YMJ_HFXJ_TK_KTW¥FWI_UZWHMFXJX__FXXJYX_FWJ_WJHTLSN_JI_ZUTS_UM^XNHFQ_WJHJUYNTS_TK_YMJ_HJWYNÜªHFYJX_ • CEMEX accrues a provision against cost of sales when the estimated annual emissions of CO2 are expected to exceed the number of emission WNLMYX__SJY_TK_FS^_GJSJÜªY_TGYFNSJI_YMWTZLM_X¥FU_YWFSXFHYNTSX_TK_JRNXXNTS_WNLMYX_KTW_(*7X_ • CERs received from the UNFCCC are recognized as intangible assets at their development cost, which are attributable mainly to legal expenses incurred in the process of obtaining such CERs. During 2017, 2016 and 2015, there were no sales of emission rights to third parties. In addition, in certain countries, the environmental authorities impose levies per ton of CO2 or other greenhouse gases released. Such expenses are recognized as part of cost of sales as incurred. 2.19) Concentration of credit (*2*=_XJQQX_NYX_UWTIZHYX_UWNRFWNQ^_YT_INXYWNGZYTWX_NS_YMJ_HTSXYWZHYNTS_NSIZXYW^__¥NYM_ST_XUJHNÜªH_LJTLWFUMNH_HTSHJSYWFYNTS_¥NYMNS_YMJ_HTZSYWNJX_ in which CEMEX operates. As of and for the years ended December 31, 2017, 2016 and 2015, no single customer individually accounted for a XNLSNÜªHFSY_FRTZSY_TK_YMJ_WJUTWYJI_FRTZSYX_TK_XFQJX_TW_NS_YMJ_GFQFSHJX_TK_YWFIJ_WJHJN[FGQJX__.S_FIINYNTS__YMJWJ_NX_ST_XNLSNÜªHFSY_HTSHJSYWFYNTS_TK_F_ XUJHNÜªH_XZUUQNJW_WJQFYNSL_YT_YMJ_UZWHMFXJ_TK_WF¥_RFYJWNFQX_ 2.20) Newly issued IFRS not yet adopted 9MJWJ_FWJ_F_SZRGJW_TK_.+78_NXXZJI_FX_TK_YMJ_IFYJ_TK_NXXZFSHJ_TK_YMJXJ_ÜªSFSHNFQ_XYFYJRJSYX_¥MNHM_MF[J_STY_^JY_GJJS_FITUYJI__IJXHWNGJI_FX_KTQQT¥_ IFRS 9, +NSFSHNFQ_.SXYWZRJSYX__HQFXXNÜªHFYNTS_FSI_RJFXZWJRJSY_ Ñ¦.+78__Ñ§_ .+78___XJYX_KTWYM_YMJ_LZNIFSHJ_WJQFYNSL_YT_YMJ_HQFXXNÜªHFYNTS_FSI_RJFXZWJRJSY_TK_ÜªSFSHNFQ_FXXJYX_FSI_QNFGNQNYNJX__YMJ_FHHTZSYNSL_KTW_J]UJHYJI_ HWJINY_QTXXJX_TK_ÜªSFSHNFQ_FXXJYX_FSI_HTRRNYRJSYX_YT_J]YJSI_HWJINYX__FX_¥JQQ_FX_YMJ_WJVZNWJRJSYX_KTW_MJILJ_FHHTZSYNSL _FSI_¥NQQ_WJUQFHJ_.&8_____ Financial Instruments: recognition and measurement_ Ñ¦.&8___Ñ§___.+78___NX_JKKJHYN[J_GJLNSSNSL_/FSZFW^__________&RTSL_TYMJW_FXUJHYX__.+78___ HMFSLJX_YMJ_HQFXXNÜªHFYNTS_HFYJLTWNJX_KTW_ÜªSFSHNFQ_FXXJYX_ZSIJW_.&8____TK_____MJQI_YT_RFYZWNY^ ____QTFSX_FSI_WJHJN[FGQJX ____KFNW_[FQZJ_YMWTZLM_YMJ_ NSHTRJ_XYFYJRJSY _FSI____F[FNQFGQJ_KTW_XFQJ _FSI_WJUQFHJX_YMJR_¥NYM_HFYJLTWNJX_YMFY_WJÜ«JHY_YMJ_RJFXZWJRJSY_RJYMTI__YMJ_HTSYWFHYZFQ_HFXM_Ü«T¥_ HMFWFHYJWNXYNHX_FSI_YMJ_JSYNY^Ñ£X_GZXNSJXX_RTIJQ_KTW_RFSFLNSL_YMJ_ÜªSFSHNFQ_FXXJY_____FRTWYN_JI_HTXY__YMFY_¥NQQ_XNLSNÜªHFSYQ^_HTRUWNXJ_.&8____MJQI_ to maturity and loans and receivables categories; 2) fair value through other comprehensive income, similar to IAS 39 held to maturity category; FSI____KFNW_[FQZJ_YMWTZLM_YMJ_NSHTRJ_XYFYJRJSY_¥NYM_YMJ_XFRJ_.&8____IJÜªSNYNTSX__9MJ_FITUYNTS_TK_XZHM_HQFXXNÜªHFYNTS_HFYJLTWNJX_ZSIJW_.+78___¥NQQ_ STY_MF[J_FS^_XNLSNÜªHFSY_JKKJHY_TS_(*2*=Ñ£X_TUJWFYNSL_WJXZQYX__ÜªSFSHNFQ_XNYZFYNTS_FSI_HTRUQNFSHJ_TK_HTSYWFHYZFQ_TGQNLFYNTSX_ ÜªSFSHNFQ_WJXYWNHYNTSX__ 101 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information .S_FIINYNTS__ZSIJW_YMJ_SJ¥_NRUFNWRJSY_RTIJQ_GFXJI_TS_J]UJHYJI_HWJINY_QTXXJX__NRUFNWRJSY_QTXXJX_KTW_YMJ_JSYNWJ_QNKJYNRJ_TK_ÜªSFSHNFQ_FXXJYX__ including trade accounts receivable, are recognized on initial recognition, and at each subsequent reporting period, even in the absence of a credit event or if the loss has not yet been incurred, considering for their measurement past events and current conditions, as well as reasonable and supportable forecasts affecting collectability. Changes in the allowance for doubtful accounts under the new expected credit loss model upon adoption of IFRS 9 on January 1, 2018 will be recognized through equity. In this regard, CEMEX developed an expected credit loss model applicable to its trade accounts receivable that considers the historical performance, as well as the credit risk and expected developments for each group of customers, ready for the prospective adoption of IFRS 9 on January 1, 2018. The preliminary effects for adoption of IFRS 9 on January 1, 2018 related to the new expected credit loss model which do not represent any XNLSNÜªHFSY_NRUFHY_TS_(*2*=Ñ£X_TUJWFYNSL_WJXZQYX__ÜªSFSHNFQ_XNYZFYNTS_FSI_HTRUQNFSHJ_TK_HTSYWFHYZFQ_TGQNLFYNTSX_ ÜªSFSHNFQ_WJXYWNHYNTSX___WJUWJXJSY_FS_ estimated increase in the allowance for doubtful accounts as of December 31, 2017 of $519 that will be recognized against equity. In connection with hedge accounting under IFRS 9, among other changes, there is a relief for entities in performing: a) the retrospective effectiveness test at inception of the hedging relationship; and b) the requirement to maintain a prospective effectiveness ratio between 0.8 and 1.25 at each reporting date for purposes of sustaining the hedging designation, both requirements of IAS 39. Under IFRS 9, a hedging relationship can be established to the extent the entity considers, based on the analysis of the overall characteristics of the hedging and hedged items, that the hedge will be highly effective in the future and the hedge relationship at inception is aligned with the entity’s reported risk management strategy. 3TSJYMJQJXX__.+78___RFNSYFNSX_YMJ_XFRJ_MJILNSL_FHHTZSYNSL_HFYJLTWNJX_TK_HFXM_Ü«T¥_MJILJ__KFNW_[FQZJ_MJILJ_FSI_MJILJ_TK_F_SJY_NS[JXYRJSY_ JXYFGQNXMJI_NS_.&8_____FX_¥JQQ_FX_YMJ_WJVZNWJRJSY_TK_WJHTLSN_NSL_YMJ_NSJKKJHYN[J_UTWYNTS_TK_F_HFXM_Ü«T¥_MJILJ_NRRJINFYJQ^_NS_YMJ_NSHTRJ_XYFYJRJSY__ (*2*=_ITJX_STY_J]UJHY_FS^_XNLSNÜªHFSY_JKKJHY_ZUTS_FITUYNTS_TK_YMJ_SJ¥_MJILJ_FHHTZSYNSL_WZQJX_ZSIJW_.+78___GJLNSSNSL_/FSZFW^_________ Considering the prospective adoption of IFRS 9 as of January 1, 2018, according to the options provided in the standard, there may be lack of HTRUFWFGNQNY^_GJLNSSNSL_/FSZFW^__________¥NYM_YMJ_NSKTWRFYNTS_TK_NRUFNWRJSY_TK_ÜªSFSHNFQ_FXXJYX_INXHQTXJI_NS_UWNTW_^JFWX__MT¥J[JW__YMJ_JKKJHYX_FWJ_ STY_XNLSNÜªHFSY_ IFRS 15, Revenues from contracts with customers_ Ñ¦.+78___Ñ§_ :SIJW_.+78_____FS_JSYNY^_WJHTLSN_JX_WJ[JSZJ_YT_IJUNHY_YMJ_YWFSXKJW_TK_UWTRNXJI_LTTIX_TW_XJW[NHJX_YT_HZXYTRJWX_NS_FS_FRTZSY_YMFY_WJÜ«JHYX_YMJ_ HTSXNIJWFYNTS_YT_¥MNHM_YMJ_JSYNY^_J]UJHYX_YT_GJ_JSYNYQJI_NS_J]HMFSLJ_KTW_YMTXJ_LTTIX_TW_XJW[NHJX__KTQQT¥NSL_F_Üª[J_XYJU_RTIJQ__8YJU____.IJSYNK^_YMJ_ contract(s) with a customer (agreement that creates enforceable rights and obligations); Step 2: Identify the different performance obligations (promises) in the contract and account for those separately; Step 3: Determine the transaction price (amount of consideration an entity expects to be entitled in exchange for transferring promised goods or services); Step 4: Allocate the transaction price to each performance obligation GFXJI_TS_YMJ_WJQFYN[J_XYFSI_FQTSJ_XJQQNSL_UWNHJX_TK_JFHM_INXYNSHY_LTTI_TW_XJW[NHJ _FSI_8YJU____7JHTLSN_J_WJ[JSZJ_¥MJS_ TW_FX__YMJ_JSYNY^_XFYNXÜªJX_F_ UJWKTWRFSHJ_TGQNLFYNTS_G^_YWFSXKJWWNSL_HTSYWTQ_TK_F_UWTRNXJI_LTTI_TW_XJW[NHJ_YT_YMJ_HZXYTRJW__&_UJWKTWRFSHJ_TGQNLFYNTS_RF^_GJ_XFYNXÜªJI_FY_F_UTNSY_ in time (typically for the sale of goods) or over time (typically for the sale of services and construction contracts). IFRS 15 also includes disclosure WJVZNWJRJSYX_YT_UWT[NIJ_HTRUWJMJSXN[J_NSKTWRFYNTS_FGTZY_YMJ_SFYZWJ__FRTZSY__YNRNSL_FSI_ZSHJWYFNSY^_TK_WJ[JSZJ_FSI_HFXM_Ü«T¥X_FWNXNSL_KWTR_ the entity’s contracts with customers. IFRS 15 is effective on January 1, 2018 and will supersede all existing guidance on revenue recognition. ‘JLNSSNSL_/FSZFW^__________(*2*=_¥NQQ_FITUY_.+78____ZXNSL_YMJ_KZQQ_WJYWTXUJHYN[J_FUUWTFHM__¥MNHM_WJUWJXJSYX_YMJ_WJXYFYJRJSY_TK_YMJ_ÜªSFSHNFQ_ statements of prior years. 102 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information CEMEX started in 2015 the evaluation of the impacts of IFRS 15 on the accounting and disclosures of its revenues. As of December 31, 2017, CEMEX has analyzed its contracts with customers in all the countries in which it operates in order to review the different performance obligations and other promises (discounts, loyalty programs, rebates, etc.) included in such contracts, among other aspects, aimed to determine the differences in the accounting recognition of revenue with respect to current IFRS and concluded the theoretical assessment. In addition, key personnel were trained in the new standard with the support of external experts and an online training course was implemented. Moreover, CEMEX also concluded YMJ_VZFSYNÜªHFYNTS_TK_YMJ_FIOZXYRJSYX_YMFY_FWJ_SJHJXXFW^_YT_UWJXJSY_UWNTW_^JFWÑ£X_NSKTWRFYNTS_ZSIJW_.+78____GJLNSSNSL_NS_______9MJ_FIOZXYRJSYX_ IJYJWRNSJI_NS_(*2*=Ñ£X_WJ[JSZJ_WJHTLSNYNTS_¥NQQ_STY_LJSJWFYJ_FS^_RFYJWNFQ_NRUFHY_TS_(*2*=Ñ£X_TUJWFYNSL_WJXZQYX__ÜªSFSHNFQ_XNYZFYNTS_FSI_HTRUQNFSHJ_ TK_HTSYWFHYZFQ_TGQNLFYNTSX_ ÜªSFSHNFQ_WJXYWNHYNTSX__ &RTSL_TYMJW_RNSTW_JKKJHYX__YMJ_RFNS_HMFSLJX_ZSIJW_.+78____FX_YMJ^_FUUQ^_YT_(*2*=_WJKJW_YT__F__XJ[JWFQ_WJHQFXXNÜªHFYNTSX_YMFY_FWJ_WJVZNWJI_YT_ HTRUQ^_¥NYM_.+78____SJ¥_FHHTZSYX_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FNRJI_YT_WJHTLSN_J_HTSYWFHY_FXXJYX_ HTXYX_YT_TGYFNS_F_HTSYWFHY__FSI_ HTSYWFHY_QNFGNQNYNJX_ IJKJWWJI_WJ[JSZJ_KTW_UWTRNXJX_STY_^JY_KZQÜªQQJI_ _G__WJGFYJX_FSI_TW_INXHTZSYX_TKKJWJI_YT_HZXYTRJWX_NS_F_XFQJ_YWFSXFHYNTS_YMFY_FWJ_ redeemable by the customer in a subsequent purchase transaction, are considered separate performance obligations, rather than future costs, and a portion of the sale price of such transaction allocated to these promises should be deferred to revenue until the promise is redeemed or expires; and c) awards (points) offer to customers through their purchases under loyalty programs that are later redeemable for goods or services, also represent separate performance obligations, rather than future costs, and a portion of the sale price of such transactions allocated to these points XMTZQI_GJ_IJKJWWJI_YT_WJ[JSZJ_ZSYNQ_YMJ_UTNSYX_FWJ_WJIJJRJI_TW_J]UNWJ__9MJXJ_WJHQFXXNÜªHFYNTSX_FSI_FIOZXYRJSYX_FWJ_STY_J]UJHYJI_YT_GJ_RFYJWNFQ_ Considering the full retrospective adoption of IFRS 15 beginning January 1, 2018, according to the options considered in the standard, there will STY_GJ_QFHP_TK_HTRUFWFGNQNY^_TK_YMJ_ÜªSFSHNFQ_NSKTWRFYNTS_UWJUFWJI_NS_UWNTW_^JFWX_ IFRS 16, Leases_ Ñ¦.+78___Ñ§_ .+78____IJÜªSJX_QJFXJX_FX_FS^_HTSYWFHY_TW_UFWY_TK_F_HTSYWFHY_YMFY_HTS[J^X_YT_YMJ_QJXXJJ_YMJ_WNLMY_YT_ZXJ_FS_FXXJY_KTW_F_UJWNTI_TK_YNRJ_NS_J]HMFSLJ_ KTW_HTSXNIJWFYNTS_FSI_YMJ_QJXXJJ_INWJHYX_YMJ_ZXJ_TK_YMJ_NIJSYNÜªJI_FXXJY_YMWTZLMTZY_YMFY_UJWNTI__.S_XZRRFW^__.+78____NSYWTIZHJX_F_XNSLQJ_QJXXJJ_ accounting model, and requires a lessee to recognize, for all leases with a term of more than 12 months, unless the underlying asset is of low value, FXXJYX_KTW_YMJ_WNLMY_TK_ZXJ_YMJ_ZSIJWQ^NSL_FXXJY_FLFNSXY_F_HTWWJXUTSINSL_ÜªSFSHNFQ_QNFGNQNY^__WJUWJXJSYNSL_YMJ_35;_TK_JXYNRFYJI_QJFXJ_UF^RJSYX_ZSIJW_ the contract, with a single income statement model in which a lessee recognizes amortization of the right-of-use asset and interest on the lease QNFGNQNY^__&_QJXXJJ_XMFQQ_UWJXJSY_JNYMJW_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS__TW_INXHQTXJ_NS_YMJ_STYJX__WNLMY_TK_ZXJ_FXXJYX_XJUFWFYJQ^_KWTR_TYMJW_FXXJYX__ as well as, lease liabilities separately from other liabilities. IFRS 16 is effective beginning January 1, 2019 and will supersede all current standards and interpretations related to lease accounting. As of December 31, 2017, CEMEX has concluded an assessment of its main outstanding lease contracts and other contracts that may have embedded the use of an asset, in order to inventory the most relevant characteristics of such contracts (types of assets, committed payments, RFYZWNY^_IFYJX__WJSJ¥FQ_HQFZXJX__JYH____)ZWNSL_YMJ_ÜªWXY_VZFWYJW_TK_______(*2*=_J]UJHYX_YT_IJÜªSJ_NYX_KZYZWJ_UTQNH^_ZSIJW_.+78____NS_HTSSJHYNTS_¥NYM_ the exception for short-term leases and low-value assets, in order to set the basis and be able to quantify the required adjustments for the proper WJHTLSNYNTS_TK_YMJ_FXXJYX_KTW_YMJ_Ñ¦WNLMY_TK_ZXJÑ§_FSI_YMJ_HTWWJXUTSINSL_ÜªSFSHNFQ_QNFGNQNYNJX__FNRNSL_YT_FITUY_.+78____TS_/FSZFW^__________(*2*=_ plans preliminarily the adoption of IFRS 16 retrospectively to the extent such adoption is practicable. Based on its preliminary assessment as of the reporting date, CEMEX considers that upon adoption of IFRS 16, most of its outstanding operating leases (note 23.5) would be recognized NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS__NSHWJFXNSL_FXXJYX_FSI_QNFGNQNYNJX__FX_¥JQQ_FX_FRTWYN_FYNTS_FSI_NSYJWJXY__¥NYMTZY_FS^_XNLSNÜªHFSY_NSNYNFQ_JKKJHY_ on net assets. 103 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information (*2*=_ITJX_STY_J]UJHY_FS^_XNLSNÜªHFSY_JKKJHY_TS_NYX_TUJWFYNTS_WJXZQYX__ÜªSFSHNFQ_XNYZFYNTS_FSI_HTRUQNFSHJ_¥NYM_HTSYWFHYZFQ_TGQNLFYNTSX_ ÜªSFSHNFQ_ restrictions) due to the adoption effects. If retrospective adoption of IFRS 16 beginning January 1, 2019 is applied, according to the options HTSXNIJWJI_NS_YMJ_XYFSIFWI__YMJWJ_¥TZQI_STY_GJ_QFHP_TK_HTRUFWFGNQNY^_TK_YMJ_ÜªSFSHNFQ_NSKTWRFYNTS_UWJUFWJI_NS_UWNTW_^JFWX_ IFRIC 23, Uncertainty over income tax treatments_ Ñ¦.+7.(___Ñ§_ .+7.(____HQFWNÜªJX_YMJ_FHHTZSYNSL_KTW_ZSHJWYFNSYNJX_NS_NSHTRJ_YF]JX__&RTSL_TYMJW_FXUJHYX__¥MJS_FS_JSYNY^_HTSHQZIJX_YMFY_NY_NX_STY_UWTGFGQJ_YMFY_F_ particular tax treatment is accepted, the entity has to use the most likely amount or the expected value of the tax treatment when determining YF]FGQJ_UWTÜªY_ YF]_QTXX___YF]_GFXJX__ZSZXJI_YF]_QTXXJX__ZSZXJI_YF]_HWJINYX_FSI_YF]_WFYJX__9MJ_IJHNXNTS_XMTZQI_GJ_GFXJI_TS_¥MNHM_RJYMTI_UWT[NIJX_ better predictions of the resolution of the uncertainty. IFRIC 23 is effective beginning January 1, 2019. Considering CEMEX’s current policy for ZSHJWYFNS_YF]_UTXNYNTSX_ STYJ_______(*2*=_ITJX_STY_J]UJHY_FS^_XNLSNÜªHFSY_JKKJHY_KWTR_YMJ_FITUYNTS_TK_.+7.(____ 3) REVENUES AND CONSTRUCTION CONTRACTS For the years ended December 31, 2017, 2016 and 2015, net sales, after eliminations between related parties resulting from consolidation, were as follows: 2017 2016 2015 From the sale of goods associated to CEMEX’s main activities 1 $ 246,820 239,696 211,258 From the sale of services 2 3,313 3,110 2,811 From the sale of other goods and services5,230 3 7,998 7,139 $ 258,131 249,945 219,299 1 Includes in each period those revenues generated under construction contracts that are presented in the table below. 2 Refers mainly to revenues generated by Neoris N.V. and its subsidiaries, involved in providing information technology solutions and services. 3_7JKJWX_RFNSQ^_YT_WJ[JSZJX_LJSJWFYJI_G^_XZGXNINFWNJX_STY_NSIN[NIZFQQ^_XNLSNÜªHFSY_TUJWFYNSL_NS_INKKJWJSY_QNSJX_TK_GZXNSJXX_ As of December 31, 2017 and 2016, amounts receivable for progress billings to customers of construction contracts and/or advances received G^_(*2*=_KWTR_YMJXJ_HZXYTRJWX_¥JWJ_STY_XNLSNÜªHFSY__+TW____________FSI_______WJ[JSZJX_FSI_HTXYX_WJQFYJI_YT_HTSXYWZHYNTS_HTSYWFHYX_NS_UWTLWJXX_ were as follows: Recognized to date 1 2017 2016 2015 Revenue from construction contracts included in consolidated net sales 2 $ 5,508 992 1,033 994 Costs incurred in construction contracts included in consolidated cost of sales 3 (4,840) (1,205) (1,133) (919) _ (TSXYWZHYNTS_HTSYWFHYX_LWTXX_TUJWFYNSL_UWTÜªY_ QTXX__ _ ____ _____ _____ __ 1 Revenues and costs recognized from inception of the contracts until December 31, 2017 in connection with those projects still in progress. 2 Revenues from construction contracts during 2017, 2016 and 2015, were mainly obtained in Mexico and Colombia. 3 Refers to actual costs incurred during the periods. The oldest contract in progress as of December 31, 2017 started in 2010. 104 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 4) BUSINESS COMBINATIONS, DISCONTINUED OPERATIONS, SALE OF OTHER DISPOSAL GROUPS AND SELECTED FINANCIAL INFORMATION BY GEOGRAPHIC OPERATING SEGMENT 4.1) Business combinations 4S_)JHJRGJW__________YMWTZLM_NYX_XZGXNINFW^_8NJWWF_9WFINSL_ Ñ¦8NJWWFÑ§___(*2*=_UWJXJSYJI_FS_TKKJW_FSI_YFPJ_T[JW_GNI__¥MNHM_¥FX_FRJSIJI_TS_/FSZFW^_ ________ YMJ_Ñ¦4KKJWÑ§___YT_FQQ_XMFWJMTQIJWX_TK_9WNSNIFI_(JRJSY_1NRNYJI_ Ñ¦9(1Ñ§___F_HTRUFS^_UZGQNHQ^_QNXYJI_NS_9WNSNIFI_FSI_9TGFLT__YMFY_¥FX_YMJS_FQXT_ listed in Jamaica and Barbados, in which CEMEX already held a 39.5% interest prior to the Offer, to acquire up to 132,616,942 ordinary shares in TCL (equivalent to approximately 30.2% of TCL’s common stock). TCL’s main operations are located in Trinidad and Tobago, Jamaica and Barbados. Pursuant to the Offer, Sierra offered TT$5.07 in cash per TCL share, or its equivalent in US$0.76 except to Shareholders in Barbados (the Ñ¦4KKJW_5WNHJÑ§___4S_/FSZFW^___________FKYJW_FQQ_YJWRX_FSI_HTSINYNTSX_¥JWJ_HTRUQNJI_¥NYM_TW_¥FN[JI__YMJ_4KKJW_¥FX_IJHQFWJI_ZSHTSINYNTSFQ_ In addition, the Offer closed in Jamaica on February 7, 2017. TCL shares deposited in response to the Offer together with Sierra’s existing 39.5% shareholding in TCL represented approximately 69.8% of the outstanding shares of TCL. The total consideration paid by Sierra for the TCL shares under the Offer was US$86 ($1,791). CEMEX started consolidating TCL on February 1, 2017. During 2017, TCL was delisted from the Jamaica and Barbados stock exchanges. CEMEX determined a fair value of TCL’s assets as of February 1, 2017 of US$525 ($10,936), which considers a price of TT$5.07 per share for the percentage acquired in the Amended Offer and TT$4.15 per share, or the market price before the Offer, for the remaining shares, and US$113 ($2,354) of debt assumed, among other effects. The purchase of TCL represented a step acquisition. As a result, the remeasurement of CEMEX’s previous held ownership interest in TCL of 39.5% generated a gain of US$32 ($623) as part of “Financial income FSI_TYMJW_NYJRX__SJY_Ñ§_&QQ_HTS[JSNJSHJ_YWFSXQFYNTSX_YT_UJXTX_FGT[J_HTSXNIJW_FS_J]HMFSLJ_WFYJ_TK_______UJXTX_UJW_ITQQFW_FX_TK_+JGWZFW^_________ &X_TK_)JHJRGJW___________FKYJW_XNLSNÜªHFSYQ^_HTSHQZINSL_YMJ_FQQTHFYNTS_TK_9(1Ñ£X_KFNW_[FQZJ_YT_YMJ_FXXJYX_FHVZNWJI_FSI_QNFGNQNYNJX_FXXZRJI__YMJ_ XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_TK_9(1_FY_YMJ_FHVZNXNYNTS_IFYJ_TK_+JGWZFW^_________¥FX_FX_KTQQT¥X_ As of February 1, 2017 Current assets US$ 84 Property, machinery and equipment 331 Intangible assets and other non-current assets (includes goodwill of US$100) 110 Total assets 525 Current liabilities (includes debt of US$47) 122 Non-current liabilities (includes debt of US$97 and deferred tax liabilities of US$19) 154 Total liabilities 276 Net assets US$ 249 Non-controlling interest net assets 70 Controlling interest net assets US$ 179 105 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information .S_HTSSJHYNTS_¥NYM_FLWJJRJSYX_JSYJWJI_NSYT_¥NYM_-TQHNR_1YI_ Ñ¦-TQHNRÑ§_HZWWJSYQ^_1FKFWLJ-TQHNR_1YI__TS_4HYTGJW___________(*2*=_FSI_-TQHNR_ agreed a series of related transactions, executed on January 5, 2015, and with retrospective effects as of January 1, 2015, by means of which: a) in the Czech Republic, CEMEX acquired all of Holcim’s assets, including a cement plant, four aggregates quarries and 17 ready-mix plants for Ó____ :8____TW_______ _G__NS_,JWRFS^__(*2*=_XTQI_YT_-TQHNR_NYX_FXXJYX_NS_YMJ_¥JXYJWS_WJLNTS_TK_YMJ_HTZSYW^_KTW_Ó____ :8____TW_______ _H__NS_ Spain, CEMEX acquired from Holcim one cement plant in the southern part of the country with a production capacity of 850 thousand tons, and TSJ_HJRJSY_RNQQ_NS_YMJ_HJSYWFQ_UFWY_TK_YMJ_HTZSYW^_¥NYM_LWNSINSL_HFUFHNY^_TK_____YMTZXFSI_YTSX__FRTSL_TYMJW_WJQFYJI_FXXJYX_KTW_Ó___ :8____TW_ ______ _FSI_I__(*2*=_FLWJJI_F_ÜªSFQ_UF^RJSY_NS_HFXM_YT_-TQHNR_TK_Ó___ :8___TW_______&X_TK_/FSZFW^__________FKYJW_HTSHQZINSL_YMJ_UZWHMFXJ_ price allocation to the fair values of the assets acquired and liabilities assumed, no goodwill was determined in respect of the Czech Republic, ¥MNQJ_NS_8UFNS__YMJ_KFNW_[FQZJ_TK_YMJ_SJY_FXXJYX_FHVZNWJI_KTW_Ó____ :8____TW________J]HJJIJI_YMJ_UZWHMFXJ_UWNHJ_NS_Ó___ :8___TW_______&KYJW_YMJ_ reassessment of fair values, this gain was recognized during 2015 in the income statement. The purchase price allocation of these acquisitions as of January 1, 2015 was as follows: Czech Republic Spain Total Current assets $ 231 59 290 Property, machinery and equipment 1,419 2,004 3,423 Other non-current assets 270 – 270 Intangible assets 590 2 592 Fair value of assets acquired 2,510 2,065 4,575 Current liabilities 117 57 174 Non-current liabilities 344 114 458 Fair value of liabilities assumed 461 171 632 Fair value of net assets acquired $ 2,049 1,894 3,943 4.2) Discontinued operations As mentioned in note 2.1, considering the resolution by the European Commission that ultimately did not allow Duna-Dráva Cement to purchase the CEMEX’s Croatian Operations and the decision of CEMEX to maintain such operations, as of December 31, 2017 and 2016 and for the years JSIJI_)JHJRGJW________________FSI_______YMJ_(WTFYNFS_4UJWFYNTSX_FWJ_HTSXTQNIFYJI_QNSJ_G^_QNSJ_NS_YMJ_XYFYJRJSYX_TK_ÜªSFSHNFQ_UTXNYNTS_FSI_NSHTRJ_ XYFYJRJSYX__9MJ_ÜªSFSHNFQ_XYFYJRJSYX_FSI_KTTYSTYJX_NXXZJI_NS_UWNTW_UJWNTIX__NS_¥MNHM_(*2*=_WJUTWYJI_YMJ_(WTFYNFS_4UJWFYNTSX_FX_Ñ¦)NXHTSYNSZJI_ 4UJWFYNTSXÑ§_FSI_Ñ¦&XXJYX_MJQI_KTW_XFQJ_Ñ§_MF[J_GJJS_WJ_UWJXJSYJI_NS_TWIJW_YT_WJ[JWXJ_XZHM_UWJXJSYFYNTS_ &X_TK_)JHJRGJW___________YMJ_HTSIJSXJI_NSKTWRFYNTS_TK_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_TK_YMJ_(WTFYNFS_4UJWFYNTSX_¥FX_FX_KTQQT¥X_ 2016 Current assets $ 573 Property, machinery and equipment, net 3,023 Intangible assets, net and other non-current assets 568 Total assets 4,164 Current liabilities 539 Non-current liabilities 112 Total liabilities 651 Net assets $ 3,513 106 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information For the years 2016 and 2015, the condensed information of the income statement of the Croatian Operations was as follows: 2016 2015 Sales $ 1,853 1,892 Cost of sales and operating expenses (1,629) (1,665) Other products (expenses), net (31) 13 Financial expenses, net and others (24) (35) Earnings before income tax 169 205 Income tax (29) (43) Net income $ 140 162 4S_&UWNQ___________TSJ_TK_(*2*=Ñ£X_XZGXNINFWNJX_NS_YMJ_:SNYJI_8YFYJX_XNLSJI_F_IJÜªSNYN[J_FLWJJRJSY_KTW_YMJ_XFQJ_TK_NYX_5FHNÜªH_3TWYM¥JXY_2FYJWNFQX_ Business consisting of aggregate, asphalt and ready-mix concrete operations in Oregon and Washington to Cadman Materials, Inc., a subsidiary of HeidelbergCement Group, for US$150. On June 30, 2017, CEMEX announced that after approval from regulators, it has completed the sale of these assets. CEMEX realized a net gain on disposal of these assets of US$22 ($399), which included a proportional allocation of goodwill of :8___ _____(TSXNIJWNSL_YMJ_INXUTXFQ_TK_NYX_5FHNÜªH_3TWYM¥JXY_2FYJWNFQX_‘ZXNSJXX__YMJ_TUJWFYNTSX_TK_YMFY_GZXNSJXX_KTW_YMJ_XN]_RTSYM_UJWNTI_JSINSL_ /ZSJ___________FSI_KTW_YMJ_KZQQ_^JFWX_JSIJI_)JHJRGJW__________FSI_______NSHQZIJI_NS_(*2*=Ñ£X_NSHTRJ_XYFYJRJSYX_¥JWJ_WJHQFXXNÜªJI_YT_YMJ_XNSLQJ_ QNSJ_NYJR_Ñ¦)NXHTSYNSZJI_4UJWFYNTSX_Ñ§ 4S_3T[JRGJW___________TSJ_TK_(*2*=Ñ£X_XZGXNINFWNJX_NS_YMJ_:SNYJI_8YFYJX_XNLSJI_F_IJÜªSNYN[J_FLWJJRJSY_YT_IN[JXY_NYX_(TSHWJYJ_7JNSKTWHJI_5NUJ_ 2FSZKFHYZWNSL_‘ZXNSJXX_ Ñ¦(TSHWJYJ_5NUJ_‘ZXNSJXXÑ§__NS_YMJ_:SNYJI_8YFYJX_YT_6ZNPWJYJ_-TQINSLX__.SH__ Ñ¦6ZNPWJYJÑ§__KTW_:8____UQZX_FS_FIINYNTSFQ_:8___ contingent consideration based on future performance. On January 31, 2017, CEMEX closed the sale to Quikrete according to the agreed upon price conditions, determined a net gain on disposal of these assets for US$148 ($3,083), including US$260 ($5,369) of goodwill associated to the reporting segment in the United States that was proportionally allocated to these net assets based on their relative fair values. Considering the disposal of the entire Concrete Pipe Business, its operations for the one-month period ending January 31, 2017 and full years ended December 31, _____FSI_______NSHQZIJI_NS_(*2*=Ñ£X_NSHTRJ_XYFYJRJSYX_¥JWJ_WJHQFXXNÜªJI_YT_YMJ_XNSLQJ_QNSJ_NYJR_Ñ¦)NXHTSYNSZJI_4UJWFYNTSX_Ñ§ On May 26, 2016, CEMEX closed the sale of its operations in Bangladesh and Thailand to Siam City Cement Public Company Ltd. for US$70 ($1,450). The operations in Bangladesh and Thailand for the period from January 1 to May 26, 2016 and the year 2015, included in CEMEX’s NSHTRJ_XYFYJRJSYX_¥JWJ_WJHQFXXNÜªJI_YT_YMJ_XNSLQJ_QNSJ_NYJR_Ñ¦)NXHTSYNSZJI_TUJWFYNTSXÑ§_FSI_NSHQZIJ_NS_______F_LFNS_TS_XFQJ_TK_:8___ ______SJY_TK_ YMJ_WJHQFXXNÜªHFYNTS_TK_KTWJNLS_HZWWJSH^_YWFSXQFYNTS_LFNSX_FXXTHNFYJI_¥NYM_YMJXJ_TUJWFYNTSX_FHHWZJI_NS_JVZNY^_ZSYNQ_INXUTXFQ_KTW_:8__ _____ <NYM_JKKJHYN[J_IFYJ_4HYTGJW___________FKYJW_FQQ_FLWJJI_ZUTS_HTSINYNTSX_UWJHJIJSY_¥JWJ_XFYNXÜªJI__(*2*=_HTRUQJYJI_YMJ_UWTHJXX_KTW_YMJ_XFQJ_TK_NYX_ TUJWFYNTSX_NS_&ZXYWNF_FSI_-ZSLFW^_YMFY_XYFWYJI_TS_&ZLZXY__________YT_YMJ_7TMWITWKJW_,WTZU_KTW_Ó____ :8____TW_________FKYJW_ÜªSFQ_FIOZXYRJSYX_ negotiated for changes in cash and working capital balances as of the transfer date. The combined operations in Austria and Hungary consisted of 29 aggregate quarries and 68 ready-mix plants. The operations in Austria and Hungary for the ten-month period ended October 31, 2015 and the ^JFW_JSIJI_)JHJRGJW___________NSHQZIJI_NS_(*2*=Ñ£X_XYFYJRJSYX_TK_TUJWFYNTSX__¥JWJ_WJHQFXXNÜªJI_YT_YMJ_XNSLQJ_QNSJ_NYJR_Ñ¦)NXHTSYNSZJI_TUJWFYNTSX_Ñ§_ ¥MNHM_NSHQZIJX__NS_______F_LFNS_TS_XFQJ_TK_:8___ ______SJY_TK_YMJ_WJHQFXXNÜªHFYNTS_TK_KTWJNLS_HZWWJSH^_YWFSXQFYNTS_LFNSX_FHHWZJI_NS_JVZNY^_ZSYNQ_ October 31, 2015 for an amount of US$10 ($215). 107 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 9MJ_KTQQT¥NSL_YFGQJ_UWJXJSYX_HTSIJSXJI_HTRGNSJI_NSKTWRFYNTS_TK_YMJ_XYFYJRJSY_TK_TUJWFYNTSX_TK_(*2*=Ñ£X_INXHTSYNSZJI_TUJWFYNTSX_NS_YMJ_5FHNÜªH_ Northwest Materials Business in the United States for the six-months period ended June 30, 2017 and for the years 2016 and 2015; the Concrete Pipe Business operations in the United States for the one-month period ended January 31, 2017 and for the years 2016 and 2015, the operations in Bangladesh and Thailand for the period from January 1 to May 26, 2016 and for the year 2015, and the operations in Austria and Hungary for the ten-month period ended October 31, 2015: 2017 2016 2015 Sales $ 1,549 8,979 11,888 Cost of sales and operating expenses (1,531) (8,440) (11,665) Other products (expenses), net 14 (2) 23 Financial expenses, net and others (3) (57) 49 Earnings before income tax 29 480 295 Income tax – (101) 6 Net income 29 379 301 Net income of non-controlling interest – – (15) Net income of controlling interest $ 29 379 286 8JQJHYJI_HTSIJSXJI_HTRGNSJI_ÜªSFSHNFQ_NSKTWRFYNTS_TK_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FY_YMNX_IFYJ_TK_XZHM_TUJWFYNTSX_¥FX_FX_KTQQT¥X_ 2016 Current assets $ 1,146 Property, machinery and equipment, net 4,188 Intangible assets, net and other non-current assets 6,835 Total assets 12,169 Current liabilities (99) Non-current liabilities (336) Total liabilities (435) Net assets $ 11,734 4.3) Other disposal groups 4S_3T[JRGJW___________F_XZGXNINFW^_TK_(*2*=_NS_YMJ_:SNYJI_8YFYJX_HQTXJI_YMJ_XFQJ_YT_FS_FKÜªQNFYJ_TK_,WZUT_(JRJSYTX_IJ_(MNMZFMZF__8_&_’__IJ_ (_;__ Ñ¦,((Ñ§__TK_HJWYFNS_FXXJYX_HTSXNXYNSL_NS_(*2*=Ñ£X_HJRJSY_UQFSY_NS_4IJXXF__9J]FX__Y¥T_HJRJSY_YJWRNSFQX_FSI_YMJ_GZNQINSL_RFYJWNFQX_GZXNSJXX_ in El Paso, Texas and Las Cruces, New Mexico, for an amount of US$306 ($6,340). The Odessa plant had an annual production capacity of approximately 537 thousand tons (unaudited). The transfer of control was effective on November 18, 2016. As a result of the sale of these FXXJYX__(*2*=_WJHTLSN_JI_NS______F_LFNS_TK_:8____ _______FX_UFWY_TK_Ñ¦4YMJW_J]UJSXJX__SJYÑ§_NS_YMJ_NSHTRJ_XYFYJRJSY__SJY_TK_FS_J]UJSXJ_KTW_YMJ_ proportional write-off of goodwill associated to CEMEX’s reporting segment in the United States based on their relative fair values for US$161 _______FSI_YMJ_WJHQFXXNÜªHFYNTS_TK_UWTUTWYNTSFQ_KTWJNLS_HZWWJSH^_YWFSXQFYNTS_LFNSX_FXXTHNFYJI_¥NYM_YMJXJ_SJY_FXXJYX_FHHWZJI_NS_JVZNY^_ZSYNQ_INXUTXFQ_ for US$65 ($1,347). 108 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 4S_8JUYJRGJW___________(*2*=_FSSTZSHJI_YMFY_TSJ_TK_NYX_XZGXNINFWNJX_NS_YMJ_:SNYJI_8YFYJX_XNLSJI_F_IJÜªSNYN[J_FLWJJRJSY_KTW_YMJ_XFQJ_TK_NYX_+FNWGTWS__ 4MNT_HJRJSY_UQFSY_FSI_HJRJSY_YJWRNSFQ_NS_(TQZRGZX__4MNT_YT_*FLQJ_2FYJWNFQX_.SH__ Ñ¦*FLQJ_2FYJWNFQXÑ§__KTW_:8____ ________+FNWGTWS_UQFSY_MFI_FS_ annual production capacity of approximately 730 thousand tons (unaudited). On February 10, 2017, CEMEX announced that such subsidiary in the United States closed the divestment of these assets, and recognized in 2017 a gain on disposal for US$188 ($3,694) as part of “Other expenses, net“ in the income statement, net of an expense for the proportional write-off of goodwill associated to CEMEX’s reporting segment in the United States based on their relative fair values for US$211 ($4,365). The operations of the net assets sold to GCC and Eagle Materials, mentioned above, did not represent discontinued operations and were consolidated by CEMEX line-by-line in the income statements for all the reported periods. In arriving to this conclusion, CEMEX evaluated: a) the Company’s ongoing cement operations on its CGUs in Texas and the East coast; and b) the relative size of the net assets sold and held for sale in respect to the Company’s remaining overall ongoing cement operations in the United States. Moreover, as a reasonability check, CEMEX measured the materiality of such net assets using a threshold of 5% of consolidated net sales, operating earnings before other expenses, net, net income and total assets. In no case the 5% threshold was reached. For the years 2017, 2016 and 2015, selected combined statement of operations information of the net assets sold to GCC on November 18, 2016 and those to Eagle Materials was as follows: 2017 2016 2015 Net sales $ 86 3,322 3,538 Operating costs and expenses (71) (2,800) (2,795) Operating earnings before other expenses, net $ 15 522 743 On December 2, 2016, CEMEX agreed the sale of its assets and activities related to the ready-mix concrete pumping business in Mexico to (JRJSYTX_*XUFà¤”TQJX_IJ_‘TRGJT__8__IJ_7_1___XZGXNINFW^_NS_2J]NHT_TK_5ZRUNSL_9JFR_8_1_1__ Ñ¦5ZRUNSL_9JFRÑ§___XUJHNFQNXY_NS_YMJ_XZUUQ^_TK_WJFI^__ RN]_HTSHWJYJ_UZRUNSL_XJW[NHJX_GFXJI_NS_8UFNS__KTW________¥MNHM_NSHQZIJX_YMJ_XFQJ_TK_Üª]JI_FXXJYX_ZUTS_HQTXNSL_TK_YMJ_YWFSXFHYNTS_KTW_____UQZX_ administrative and client and market development services, as well as the lease facilities in Mexico that CEMEX will supply to Pumping Team over a period of ten years with the possibility to extend for three additional years, for an aggregate initial amount of $1,340, plus a contingent revenue XZGOJHY_YT_WJXZQYX_KTW_ZU_YT_____QNSPJI_YT_FSSZFQ_RJYWNHX_GJLNSSNSL_NS_YMJ_ÜªWXY_^JFW_FSI_ZU_YT_YMJ_ÜªKYM_^JFW_TK_YMJ_FLWJJRJSY__4S_&UWNQ___________ after receiving the approval by the Mexican authorities, CEMEX concluded the sale. In addition, as part of related transactions agreed with Holcim Ltd. (note 4.1), effective as of January 1, 2015, CEMEX sold to Holcim its assets in the western region of Germany, consisting of one cement plant, two cement grinding mills, one slag granulator, 22 aggregates quarries and 79 WJFI^_RN]_UQFSYX_KTW_Ó____ :8____TW_________¥MNQJ_(*2*=_RFNSYFNSJI_NYX_TUJWFYNTSX_NS_YMJ_STWYMJWS__JFXYJWS_FSI_XTZYMJWS_WJLNTSX_TK_YMJ_HTZSYW^_ 109 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 4.4) Selected financial information by geographic operating segment Geographic operating segments represent the components of CEMEX that engage in business activities from which CEMEX may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity’s top management to make decisions about resources to be allocated to the segments and assess their performance, and for which discrete financial information is available. CEMEX operates geographically on a regional basis. Effective January 1, 2016, according to an announcement made by CEMEX’s Chief Executive Officer (“CEO”), the Company’s operations were reorganized into five geographical regions, each under the supervision of a regional president, as follows: 1) Mexico, 2) United States, 3) Europe, 4) South, Central America and the Caribbean, and 5) Asia, Middle East and Africa. Each regional president supervises and is responsible for all the business activities in the countries comprising the region. These activities refer to the production, distribution, marketing and sale of cement, ready-mix concrete, aggregates and other construction materials, the allocation of resources and the review of their performance and operating results. All regional presidents report directly to CEMEX’s CEO. The country manager, who is one level below the regional president in the organizational structure, reports the performance and operating results of its country to the regional president, including all the operating sectors. CEMEX’s top management internally evaluates the results and performance of each country and region for decision-making purposes and allocation of resources, following a vertical integration approach considering: a) that the operating components that comprise the reported segment have similar economic characteristics; b) that the reported segments are used by CEMEX to organize and evaluate its activities in its internal information system; c) the homogeneous nature of the items produced and traded in each operative component, which are all used by the construction industry; d) the vertical integration in the value chain of the products comprising each component; e) the type of clients, which are substantially similar in all components; f) the operative integration among components; and g) that the compensation system for employees of a specific country is based on the consolidated results of the geographic segment and not on the particular results of the components. Consequently, in CEMEX’s daily operations, management allocates economic resources and evaluates operating results on a country basis rather than on an operating component basis. The financial information by geographic operating segment issued in the financial statements of prior years was restated in order to give effect to: a) the reversal from discontinued operations related to CEMEX’s Croatian Operations for the years 2016 and 2015 (note 4.1); and b) the new geographical operating organization described above for the year 2015. Until December 31, 2015, CEMEX’s operations were organized into six geographical regions: 1) Mexico, 2) United States, 3) Northern Europe, 4) Mediterranean, 5) South, Central America and the Caribbean, and 6) Asia. Under the current operating organization, the geographical operating segments under the former Mediterranean region were incorporated into the current Europe region or the Asia, Middle East and Africa region, as corresponded. Considering the financial information that is regularly reviewed by CEMEX’s top management, each geographic region and the countries that comprise such regions represent reportable operating segments. However, for disclosure purposes in these notes, considering similar regional and economic characteristics and/or the fact that certain countries do not exceed certain materiality thresholds to be reported separately, such countries have been aggregated and presented as single line items as follows: a) “Rest of Europe” is mainly comprised of CEMEX’s operations in the Czech Republic, Poland, Croatia and Latvia, as well as trading activities in Scandinavia and Finland; b) “Rest of South, Central America and the Caribbean” is mainly comprised of CEMEX’s operations in Puerto Rico, the Dominican Republic, Nicaragua, Jamaica and other countries in the Caribbean, excluding TCL, Guatemala, and small ready-mix concrete operations in Argentina; and c) “Rest of Asia, Middle East and Africa” is mainly comprised of CEMEX’s operations in the United Arab Emirates, Israel and Malaysia. The segment “Others” refers to: 1) cement trade maritime operations, 2) Neoris N.V., CEMEX’s subsidiary involved in the development of information technology solutions, 3) the Parent Company and other corporate entities, and 4) other minor subsidiaries with different lines of business. For the year 2017, for purposes of the geographic operating segments presented in the following tables of this note, CEMEX’s operations acquired in the Caribbean, mainly in Trinidad and Tobago, Jamaica and Barbados as part of the purchase of TCL, are reported in the line item named “Caribbean TCL.”

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information (TSXNIJWNSL_YMFY_NX_FS_NSINHFYTW_TK_(*2*=Ñ£X_FGNQNY^_YT_NSYJWSFQQ^_KZSI_HFUNYFQ_J]UJSINYZWJX__FX_¥JQQ_FX_F_¥NIJQ^_FHHJUYJI_ÜªSFSHNFQ_NSINHFYTW_YT_ measure CEMEX’s ability to service or incur debt (note 16), one relevant indicator used by CEMEX’s management to evaluate the performance of JFHM_HTZSYW^_NX_Ñ¦4UJWFYNSL_*’.9)&Ñ§_ TUJWFYNSL_JFWSNSLX_GJKTWJ_TYMJW_J]UJSXJX__SJY__UQZX_IJUWJHNFYNTS_FSI_FRTWYN_FYNTS___9MNX_NX_STY_FS_NSINHFYTW_ TK_(*2*=Ñ£X_ÜªSFSHNFQ_UJWKTWRFSHJ__FS_FQYJWSFYN[J_YT_HFXM_Ü«T¥X__F_RJFXZWJ_TK_QNVZNINY^_TW_HTRUFWFGQJ_YT_TYMJW_XNRNQFWQ^_YNYQJI_RJFXZWJX_TK_TYMJW_ HTRUFSNJX__9MNX_NSINHFYTW__¥MNHM_NX_UWJXJSYJI_NS_YMJ_XJQJHYJI_ÜªSFSHNFQ_NSKTWRFYNTS_G^_LJTLWFUMNH_TUJWFYNSL_XJLRJSY__NX_HTSXNXYJSY_¥NYM_YMJ_ NSKTWRFYNTS_ZXJI_G^_(*2*=Ñ£X_RFSFLJRJSY_KTW_IJHNXNTS_RFPNSL_UZWUTXJX__9MJ_FHHTZSYNSL_UTQNHNJX_FUUQNJI_YT_IJYJWRNSJ_YMJ_ÜªSFSHNFQ_NSKTWRFYNTS_ by geographic operating segment are consistent with those described in note 2. Selected information of the consolidated statements of operations by geographic operating segment for the years ended December 31, 2017, 2016 and 2015 was as follows: Net sales Less: Operating (including Less: Depreciation earnings Other Other related Related Operating and before other_ J]UJSXJX__ +NSFSHNFQ_ ÜªSFSHNSL 2017 parties) parties Net sales EBITDA amortization expenses, net net expense items, net Mexico $ 58,442 (1,075) 57,367 21,215 2,246 18,969 (687) (409) (534) United States 65,536 – 65,536 10,652 6,200 4,452 3,202 (631) (177) Europe United Kingdom 20,179 – 20,179 2,763 997 1,766 450 (77) (397) France 16,162 – 16,162 855 549 306 (129) (61) 18 Germany 10,056 (1,339) 8,717 743 509 234 (11) (14) (63) Spain 6,870 (990) 5,880 344 638 (294) (711) (34) 12 Poland 5,552 (74) 5,478 647 361 286 (140) (30) (8) Rest of Europe 9,439 (864) 8,575 1,463 688 775 (131) (24) 71 South, Central America and the Caribbean (“SAC”) Colombia 1 10,685 – 10,685 2,166 507 1,659 (642) (129) (36) Panama 1 5,112 (98) 5,014 2,007 319 1,688 (20) (5) 7 Costa Rica 1 2,805 (379) 2,426 1,000 99 901 – (5) 29 Caribbean TCL 3 4,332 (49) 4,283 1,059 610 449 (139) (215) (25) Rest of SAC 1 11,716 (872) 10,844 2,602 449 2,153 (1,069) (23) (12) Asia, Middle East and Africa (“AMEA”) Philippines 2 8,296 – 8,296 1,394 528 866 89 (3) (24) Egypt 3,862 – 3,862 594 299 295 (210) (60) 574 Rest of AMEA 13,516 – 13,516 1,855 363 1,492 (174) (28) 12 Others 22,514 (11,203) 11,311 (2,796) 630 (3,426) (3,493) (17,553) 4,169 Continuing operations 275,074 (16,943) 258,131 48,563 15,992 32,571 (3,815) (19,301) 3,616 Discontinued operations 1,550 (1) 1,549 75 57 18 14 (3) –Total $ 276,624 (16,944) 259,680 48,638 16,049 32,589 (3,801) (19,304) 3,616 111 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Net sales Less: Operating (including Less: Depreciation earnings Other Other related Related Operating and before other_ J]UJSXJX__ +NSFSHNFQ_ ÜªSFSHNSL 2016 parties) parties Net sales EBITDA amortization expenses, net net expense items, net Mexico $ 53,579 (848) 52,731 19,256 2,390 16,866 (608) (339) 2,695 United States 66,554 – 66,554 10,973 6,400 4,573 2,919 (487) (212) Europe United Kingdom 21,153 – 21,153 3,606 1,047 2,559 711 (63) (393) France 14,535 – 14,535 669 484 185 (110) (53) 2 Germany 9,572 (1,385) 8,187 553 464 89 (64) (15) (85) Spain 6,563 (841) 5,722 814 663 151 (112) (37) (9) Poland 4,799 (88) 4,711 579 330 249 6 (11) 123 Rest of Europe 7,935 (541) 7,394 1,141 660 481 (103) (33) 77 South, Central America and the Caribbean (“SAC”) Colombia 1 12,415 (1) 12,414 3,975 489 3,486 (575) 46 38 Panama 1 4,906 (124) 4,782 2,170 340 1,830 (7) (27) 5 Costa Rica 1 2,818 (351) 2,467 1,127 116 1,011 (23) (11) 27 Rest of SAC 1 11,378 (778) 10,600 2,875 437 2,438 (1,226) (28) (182) Asia, Middle East and Africa (“AMEA”) Philippines 2 9,655 – 9,655 2,687 530 2,157 21 (1) (24) Egypt 6,950 (5) 6,945 2,454 539 1,915 (213) (78) (253) Rest of AMEA 11,858 (12) 11,846 1,617 299 1,318 (112) (27) 27 Others 18,846 (8,597) 10,249 (2,962) 803 (3,765) (2,174) (20,323) 2,653 Continuing operations 263,516 (13,571) 249,945 51,534 15,991 35,543 (1,670) (21,487) 4,489 Discontinued operations 9,186 (207) 8,979 1,232 693 539 (2) (10) (47) Total $ 272,702 (13,778) 258,924 52,766 16,684 36,082 (1,672) (21,497) 4,442 112 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Net sales Less: Operating (including Less: Depreciation earnings Other Other related Related Operating and before other_ J]UJSXJX__ +NSFSHNFQ_ ÜªSFSHNSL 2015 parties) parties Net sales EBITDA amortization expenses, net net expense items, net Mexico $ 50,260 (5,648) 44,612 15,362 2,399 12,963 (684) (210) 915 United States 56,846 (18) 56,828 7,985 5,629 2,356 234 (437) (144) Europe United Kingdom 20,227 – 20,227 2,705 1,004 1,701 (147) (95) (299) France 12,064 – 12,064 670 438 232 (8) (48) (10) Germany 8,285 (1,276) 7,009 542 389 153 49 (14) (61) Spain 6,151 (755) 5,396 1,031 604 427 (735) (72) (2) Poland 4,445 (108) 4,337 598 295 303 18 (54) 33 Rest of Europe 7,457 (660) 6,797 1,110 739 371 (187) (23) (122) South, Central America and the Caribbean (“SAC”) Colombia 1 11,562 (2) 11,560 4,041 500 3,541 (88) (50) (570) Panama 1 4,599 (68) 4,531 1,869 298 1,571 (180) (13) 2 Costa Rica 1 2,658 (229) 2,429 1,096 102 994 (2) (9) 2 Rest of SAC 1 12,177 (1,988) 10,189 2,295 445 1,850 (87) (22) (119) Asia, Middle East and Africa (“AMEA”) Philippines 2 8,436 (4) 8,432 2,206 447 1,759 (12) (20) 19 Egypt 6,923 (5) 6,918 1,777 536 1,241 (254) (115) 114 Rest of AMEA 9,929 – 9,929 1,250 244 1,006 (53) (23) (1) Others 16,793 (8,752) 8,041 (3,003) 589 (3,592) (896) (18,579) (1,090) Continuing operations 238,812 (19,513) 219,299 41,534 14,658 26,876 (3,032) (19,784) (1,333) Discontinued operations 11,944 (56) 11,888 1,201 978 223 23 (17) 66 Total $ 250,756 (19,569) 231,187 42,735 15,636 27,099 (3,009) (19,801) (1,267) 1 (*2*=_1FYFR_-TQINSLX__8_&__ Ñ¦(1-Ñ§___JSYNY^_NSHTWUTWFYJI_NS_8UFNS__YWFIJX_NYX_TWINSFW^_XMFWJX_NS_YMJ_(TQTRGNFS_8YTHP_*]HMFSLJ__(1-_NX_YMJ_NSINWJHY_MTQINSL_HTRUFS^_TK_(*2*=Ñ£X_ operations in Colombia, Panama, Costa Rica, Guatemala, Nicaragua, El Salvador and Brazil. At year end 2017 and 2016, there is a non-controlling interest in CLH of approximately 26.75% and 26.72%, respectively, of its ordinary shares, excluding shares held in CLH’s treasury (note 20.4) . 2_(*2*=Ñ£X_TUJWFYNTSX_NS_YMJ_5MNQNUUNSJX_FWJ_HTSIZHYJI_YMWTZLM_(*2*=_-TQINSLX_5MNQNUUNSJX__.SH__ Ñ¦(-5Ñ§___XZGXNINFW^_NSHTWUTWFYJI_NS_YMJ_5MNQNUUNSJX_¥MNHM_XNSHJ_/ZQ^______YWFIJX_NYX_ ordinary shares in the Philippines Stock Exchange under the symbol CHP. As of December 31, 2017 and 2016, there is a non-controlling interest in CHP of 45.0% of its ordinary shares (note 20.4) . 3_&X_RJSYNTSJI_NS_STYJ______NS_+JGWZFW^_______(*2*=Ñ£X_FHVZNWJI_F_HTSYWTQQNSL_NSYJWJXY_NS_9(1__¥MNHM_RFNS_TUJWFYNTSX_FWJ_QTHFYJI_NS_9WNSNIFI_FSI_9TGFLT_ Ñ¦9_9Ñ§___/FRFNHF_FSI_ Barbados. TCL shares trade in the T&T Stock Exchange. As of December 31, 2017, there is a non-controlling interest in TCL of approximately 30.2% of its ordinary shares (note 20.4) . 9MJ_NSKTWRFYNTS_TK_XMFWJ_TK_UWTÜªYX_TK_JVZNY^_FHHTZSYJI_NS[JXYJJX_G^_LJTLWFUMNH_TUJWFYNSL_XJLRJSY_KTW_YMJ_^JFWX_JSIJI_)JHJRGJW________________ and 2015 is included in the note 13.1. 113 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information &X_TK_)JHJRGJW__________FSI_______XJQJHYJI_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_NSKTWRFYNTS_G^_LJTLWFUMNH_XJLRJSY_¥FX_FX_KTQQT¥X_ Equity Other accounted segment Total Total Net assets Additions to _ _____ NS[JXYJJX_ FXXJYX_ FXXJYX_ QNFGNQNYNJX_ G^_XJLRJSY_ Üª]JI_FXXJYX_1 Mexico $ 241 71,280 71,521 23,574 47,947 2,133 United States 1,573 266,769 268,342 32,366 235,976 3,498 Europe United Kingdom 107 34,774 34,881 24,160 10,721 1,010 France 1,055 18,481 19,536 7,360 12,176 372 Germany 85 9,010 9,095 6,848 2,247 441 Spain – 25,731 25,731 3,543 22,188 553 Poland 9 5,477 5,486 3,086 2,400 230 Rest of Europe 158 16,123 16,281 3,627 12,654 321 South, Central America and the Caribbean Colombia – 24,406 24,406 11,307 13,099 1,178 Panama – 7,232 7,232 1,029 6,203 152 Costa Rica – 1,869 1,869 646 1,223 42 Caribbean TCL – 11,004 11,004 4,917 6,087 584 Rest of South, Central America and the Caribbean 31 11,298 11,329 4,366 6,963 357 Asia, Middle East and Africa Philippines 6 11,548 11,554 2,617 8,937 518 Egypt 1 4,602 4,603 1,776 2,827 418 Rest of Asia, Middle East and Africa – 13,671 13,671 8,027 5,644 449 Others 5,306 24,356 29,662 217,914 (188,252) 163 Continuing operations 8,572 557,631 566,203 357,163 209,040 12,419 Assets held for sale and related liabilities (note 12.1) – 1,378 1,378 – 1,378 – Total $ 8,572 559,009 567,581 357,163 210,418 12,419 114 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Equity Other accounted segment Total Total Net assets Additions to _ _____ NS[JXYJJX_ FXXJYX_ FXXJYX_ QNFGNQNYNJX_ G^_XJLRJSY_ Üª]JI_FXXJYX_1 Mexico $ 490 70,012 70,502 20,752 49,750 1,651 United States 1,587 287,492 289,079 30,118 258,961 3,760 Europe United Kingdom 104 32,469 32,573 22,914 9,659 599 France 909 16,855 17,764 6,829 10,935 379 Germany 74 8,396 8,470 6,694 1,776 507 Spain 13 27,251 27,264 3,206 24,058 490 Poland 10 5,036 5,046 2,072 2,974 181 Rest of Europe 270 15,345 15,615 3,221 12,394 258 South, Central America and the Caribbean Colombia – 26,532 26,532 11,548 14,984 3,633 Panama – 7,958 7,958 1,144 6,814 126 Costa Rica – 1,928 1,928 691 1,237 73 Rest of South, Central America and the Caribbean 28 12,517 12,545 4,133 8,412 441 Asia, Middle East and Africa Philippines 6 12,308 12,314 2,696 9,618 341 Egypt 1 5,512 5,513 2,907 2,606 381 Rest of Asia, Middle East and Africa – 12,347 12,347 6,994 5,353 394 Others 6,996 26,253 33,249 276,269 (243,020) 65 Continuing operations 10,488 568,211 578,699 402,188 176,511 13,279 Assets held for sale and related liabilities (note 12.1) – 21,029 21,029 815 20,214 – Total $ 10,488 589,240 599,728 403,003 196,725 13,279 1_.S______FSI_______YMJ_HTQZRS_Ñ¦&IINYNTSX_YT_Üª]JI_FXXJYXÑ§_NSHQZIJX_HFUNYFQ_J]UJSINYZWJX_TK_______FSI_________WJXUJHYN[JQ^_ STYJ_____ Total consolidated liabilities as of December 31, 2017 and 2016 included debt of $193,995 and $236,238, respectively. Of such balances, as of December 31, 2017 and 2016, approximately 80% and 73% was in the Parent Company, less than 1% and 1% was in Spain, 15% and 25% was NS_ÜªSFSHJ_XZGXNINFWNJX_NS_YMJ_3JYMJWQFSIX__1Z]JRGTZWL_FSI_YMJ_:SNYJI_8YFYJX__FSI__ _FSI__ _¥FX_NS_TYMJW_HTZSYWNJX__WJXUJHYN[JQ^__9MJ_5FWJSY_ (TRUFS^_FSI_YMJ_ÜªSFSHJ_XZGXNINFWNJX_RJSYNTSJI_FGT[J_FWJ_NSHQZIJI_¥NYMNS_YMJ_XJLRJSY_Ñ¦4YMJWX_Ñ§ 115 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Net sales by product and geographic segment for the years ended December 31, 2017, 2016 and 2015 were as follows: 2017 Cement Concrete Aggregates Others Eliminations Net sales Mexico $ 42,195 14,672 3,416 11,211 (14,127) 57,367 United States 27,804 35,400 14,436 6,235 (18,339) 65,536 Europe United Kingdom 4,879 7,459 7,758 8,067 (7,984) 20,179 France – 13,367 6,373 205 (3,783) 16,162 Germany 3,595 4,668 2,134 2,335 (4,015) 8,717 Spain 5,499 944 259 676 (1,498) 5,880 Poland 3,230 2,532 701 226 (1,211) 5,478 Rest of Europe 6,236 2,715 1,055 462 (1,893) 8,575 South, Central America and the Caribbean Colombia 7,043 4,024 1,224 1,960 (3,566) 10,685 Panama 3,876 1,725 452 180 (1,219) 5,014 Costa Rica 2,095 386 122 120 (297) 2,426 Caribbean TCL 4,097 29 19 215 (77) 4,283 Rest of South, Central America and the Caribbean 11,412 1,308 268 307 (2,451) 10,844 Asia, Middle East and Africa Philippines 8,093 67 159 52 (75) 8,296 Egypt 3,347 479 16 173 (153) 3,862 Rest of Asia, Middle East and Africa 928 11,078 2,875 2,148 (3,513) 13,516 Others – – – 22,515 (11,204) 11,311 Continuing operations 134,329 100,853 41,267 57,087 (75,405) 258,131 Discontinued operations – 525 340 687 (3) 1,549 Total $ 134,329 101,378 41,607 57,774 (75,408) 259,680 2016 Cement Concrete Aggregates Others Eliminations Net sales Mexico $ 37,647 13,664 3,156 11,773 (13,509) 52,731 United States 28,585 35,843 14,565 7,107 (19,546) 66,554 Europe United Kingdom 5,267 7,830 8,195 7,889 (8,028) 21,153 France – 11,883 5,640 278 (3,266) 14,535 Germany 3,416 4,539 2,112 2,262 (4,142) 8,187 Spain 5,478 823 196 472 (1,247) 5,722 Poland 2,811 2,237 579 219 (1,135) 4,711 Rest of Europe 5,286 2,254 911 338 (1,395) 7,394 South, Central America and the Caribbean Colombia 8,814 4,522 1,364 1,761 (4,047) 12,414 Panama 3,794 1,577 413 139 (1,141) 4,782 Costa Rica 2,144 390 179 126 (372) 2,467 Rest of South, Central America and the Caribbean 10,998 1,526 322 298 (2,544) 10,600 Asia, Middle East and Africa Philippines 9,405 143 164 70 (127) 9,655 Egypt 6,076 943 26 217 (317) 6,945 Rest of Asia, Middle East and Africa 961 9,535 2,519 1,379 (2,548) 11,846 Others – – – 18,851 (8,602) 10,249 Continuing operations 130,682 97,709 40,341 53,179 (71,966) 249,945 Discontinued operations 422 1,366 785 6,665 (259) 8,979 Total $ 131,104 99,075 41,126 59,844 (72,225) 258,924 116 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 2015 Cement Concrete Aggregates Others Eliminations Net sales Mexico $ 30,384 13,163 2,860 9,956 (11,751) 44,612 United States 23,358 30,129 11,914 7,994 (16,567) 56,828 Europe United Kingdom 4,705 7,729 7,614 7,859 (7,680) 20,227 France – 10,026 4,410 224 (2,596) 12,064 Germany 3,098 3,749 1,790 2,103 (3,731) 7,009 Spain 5,265 721 150 392 (1,132) 5,396 Poland 2,630 1,916 489 197 (895) 4,337 Rest of Europe 5,075 1,945 728 562 (1,513) 6,797 South, Central America and the Caribbean Colombia 8,158 4,428 1,329 1,345 (3,700) 11,560 Panama 3,368 1,424 383 172 (816) 4,531 Costa Rica 2,092 367 138 109 (277) 2,429 Rest of South, Central America and the Caribbean 9,633 2,058 376 451 (2,329) 10,189 Asia, Middle East and Africa Philippines 8,270 115 96 62 (111) 8,432 Egypt 6,052 975 36 236 (381) 6,918 Rest of Asia, Middle East and Africa 880 7,956 1,931 1,115 (1,953) 9,929 Others – – – 16,811 (8,770) 8,041 Continuing operations 112,968 86,701 34,244 49,588 (64,202) 219,299 Discontinued operations 1,046 3,877 1,928 5,474 (437) 11,888 Total $ 114,014 90,578 36,172 55,062 (64,639) 231,187 5) OPERATING EXPENSES, DEPRECIATION AND AMORTIZATION Consolidated operating expenses during 2017, 2016 and 2015 by function are as follows: 2017 2016 2015 Administrative expenses 1 $ 21,081 20,750 18,653 Selling expenses 6,450 6,974 5,883 Distribution and logistics expenses23,374 28,495 26,245 $ 56,026 53,969 47,910 1_9MJ_9JHMSTQTL^_FSI_*SJWL^_IJUFWYRJSYX_NS_(*2*=_ZSIJWYFPJ_FQQ_XNLSNÜªHFSY_7_)_FHYN[NYNJX_FX_UFWY_TK_YMJNW_IFNQ^_FHYN[NYNJX__.S____________FSI_______YTYFQ_HTRGNSJI_J]UJSXJX_TK_YMJXJ_ departments recognized within administrative expenses were $754 (US$38), $712 (US$38) and $660 (US$41), respectively. Depreciation and amortization recognized during 2017, 2016 and 2015 are detailed as follows: 2017 2016 2015 Depreciation and amortization expense included in cost of sales $ 14,146 14,180 13,154 Depreciation and amortization expense included in administrative, selling and distribution and logistics expenses1,504 1,846 1,811 $ 15,992 15,991 14,658 117 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 6) OTHER EXPENSES, NET 9MJ_IJYFNQ_TK_YMJ_QNSJ_NYJR_Ñ¦4YMJW_J]UJSXJX__SJYÑ§_NS____________FSI______¥FX_FX_KTQQT¥X_ 2017 2016 2015 Impairment losses 1 $ (2,936) (2,518) (1,517) Restructuring costs 2 (843) (778) (845) Charitable contributions (127) (93) (60) Results from the sale of assets and others, net(610) 3 91 1,719 $ (3,815) (1,670) (3,032) 1_.S____________FSI_______FRTSL_TYMJWX__NSHQZIJX_NRUFNWRJSY_QTXXJX_TK_Üª]JI_FXXJYX_KTW_FUUWT]NRFYJQ^____________FSI________WJXUJHYN[JQ^__FX_¥JQQ_FX_NRUFNWRJSY_QTXXJX_TK_LTTI¥NQQ_ in 2017 for approximately $1,920 (notes 13.2, 14 and 15). 2 In 2017, 2016 and 2015, restructuring costs mainly refer to severance payments. 3 In 2017, includes an expense in Colombian pesos equivalent to approximately $491 (US$25) for a penalty imposed by the Commerce and Industry Superintendence in Colombia in connection with a market investigation (note 24.2) . 7) FINANCIAL INCOME AND OTHER ITEMS, NET 9MJ_IJYFNQ_TK_YMJ_QNSJ_NYJR_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_NS____________FSI______¥FX_FX_KTQQT¥X_ 2017 2016 2015 Results in the sale of associates and remeasurement of previously held interest before change in control of associates (notes 4.1 and 13.1) $ 4,164 – –Financial income 338 402 318 7JXZQYX_KWTR_ÜªSFSHNFQ_NSXYWZRJSYX__SJY_ STYJX______FSI_______ _ ____ ____ ______ Foreign exchange results (26) 5,004 1,970 Effects of NPV on assets and liabilities and others, net(892) (1,021) (1,030) $ 3,616 4,489 (1,333) 8) CASH AND CASH EQUIVALENTS As of December 31, 2017 and 2016, consolidated cash and cash equivalents consisted of: 2017 2016 Cash and bank accounts $ 9,292 9,104 Fixed-income securities and other cash equivalents2,512 4,449 $ 13,741 11,616 Based on net settlement agreements, the balance of cash and cash equivalents excludes deposits in margin accounts that guarantee several obligations of CEMEX of $196 in 2017 and $250 in 2016, which were offset against the corresponding obligations of CEMEX with the counterparties, considering CEMEX’s right, ability and intention to settle the amounts on a net basis. 118 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 9) TRADE ACCOUNTS RECEIVABLE, NET As of December 31, 2017 and 2016, consolidated trade accounts receivable consisted of: 2017 2016 Trade accounts receivable $ 32,623 32,356 Allowances for doubtful accounts(2,196) (2,145) $ 30,478 30,160 As of December 31, 2017 and 2016, trade accounts receivable include receivables of $12,713 (US$647) and $13,644 (US$658), respectively, sold under outstanding trade receivables securitization programs and/or factoring programs with recourse, established in Mexico, the United States, France and the United Kingdom, in which CEMEX effectively surrenders control associated with the trade accounts receivable sold and there is no guarantee or obligation to reacquire the assets; nonetheless, in such programs, CEMEX retains certain residual interest in the programs and/ or maintains continuing involvement with the accounts receivable. Therefore, the trade accounts receivable sold were not removed from the XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FSI_YMJ_KZSIJI_FRTZSYX_YT_(*2*=_TK________ :8_____NS______FSI________ :8_____NS_______¥JWJ_WJHTLSN_JI_ ¥NYMNS_YMJ_QNSJ_NYJR_TK_Ñ¦4YMJW_ÜªSFSHNFQ_TGQNLFYNTSX_Ñ§_YMJ_INKKJWJSHJ_NS_JFHM_^JFW_FLFNSXY_YMJ_YWFIJ_WJHJN[FGQJX_XTQI_¥FX_RFNSYFNSJI_FX_WJXJW[JX__9WFIJ_ accounts receivable qualifying for sale exclude amounts over certain days past due or concentrations over certain limits to any one customer, FHHTWINSL_YT_YMJ_YJWRX_TK_YMJ_UWTLWFRX__9MJ_INXHTZSY_LWFSYJI_YT_YMJ_FHVZNWJWX_TK_YMJ_YWFIJ_FHHTZSYX_WJHJN[FGQJ_NX_WJHTWIJI_FX_ÜªSFSHNFQ_J]UJSXJ_ and amounted to $308 in 2017, $258 in 2016 and $249 in 2015. CEMEX’s securitization programs are negotiated for periods of one to two years and are usually renewed at their maturity. &QQT¥FSHJX_KTW_ITZGYKZQ_FHHTZSYX_¥JWJ_JXYFGQNXMJI_ZSYNQ_)JHJRGJW__________GFXJI_TS_FS_NSHZWWJI_QTXX_RTIJQ_FHHTWINSL_YT_YMJ_HWJINY_MNXYTW^_FSI_WNXP_UWTÜªQJ_ of each customer (note 2.20) . Changes in the valuation of this caption allowance for doubtful accounts in 2017, 2016 and 2015, were as follows: 2017 2016 2015 Allowances for doubtful accounts at beginning of period $ 2,196 2,152 1,856 Charged to selling expenses 252 556 434 Additions through business combinations 141 – – Deductions (449) (867) (276) Foreign currency translation effects 5 355 138 Allowances for doubtful accounts at end of period $ 2,145 2,196 2,152 10) OTHER ACCOUNTS RECEIVABLE As of December 31, 2017 and 2016, consolidated other accounts receivable consisted of: 2017 2016 Non-trade accounts receivable 1 $ 1,918 2,527 Interest and notes receivable 2 1,125 1,286 (ZWWJSY_UTWYNTS_TK_[FQZFYNTS_TK_IJWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSYX_ _ ______ ___ Loans to employees and others 233 188 Refundable taxes1,001 638 $ 4,970 5,238 1 Non-trade accounts receivable are mainly attributable to the sale of assets. 2 Includes $27 in 2016, representing the short-term portion of a restricted investment related to coupon payments under CEMEX’s perpetual debentures (note 20.4) . In addition, in 2016, includes (*2*=_(TQTRGNFÑ£X_GJSJÜªHNFQ_NSYJWJXY_NS_F_YWZXY_TWNJSYJI_YT_UWTRTYJ_MTZXNSL_UWTOJHYX__¥MNHM_NYX_TSQ^_FXXJY_NX_QFSI_NS_YMJ_RZSNHNUFQNY^_TK_?NUFVZNWF__(TQTRGNF_FSI_NYX_TSQ^_QNFGNQNY^_NX_F_GFSP_HWJINY_ KTW______LZFWFSYJJI_G^_(*2*=_(TQTRGNF__TGYFNSJI_YT_UZWHMFXJ_YMJ_QFSI__9MJ_JXYNRFYJI_KFNW_[FQZJ_TK_YMJ_QFSI_FX_IJYJWRNSJI_G^_J]YJWSFQ_FUUWFNXJW_XNLSNÜªHFSYQ^_J]HJJIX_YMJ_FRTZSY_TK_YMJ_QTFS_ 119 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 11) INVENTORIES, NET As of December 31, 2017 and 2016, the consolidated balance of inventories was summarized as follows: 2017 2016 Finished goods $ 5,933 5,865 Work-in-process 3,814 3,378 Raw materials 3,237 3,128 Materials and spare parts 4,996 4,551 Inventory in transit1,176 872 $ 18,852 18,098 +TW_YMJ_^JFWX_JSIJI_)JHJRGJW________________FSI_______(*2*=_WJHTLSN_JI_¥NYMNS_Ñ¦(TXY_TK_XFQJXÑ§_NS_YMJ_NSHTRJ_XYFYJRJSY__NS[JSYTW^_NRUFNWRJSY_ losses of $23, $52 and $49, respectively. 12) ASSETS HELD FOR SALE AND OTHER CURRENT ASSETS 12.1) Assets held for sale As of December 31, 2017 and 2016, assets held for sale, which are measured at the lower of their estimated realizable value, less costs to sell, and their carrying amounts, as well as liabilities directly related with such assets are detailed as follows: 2017 2016 Net Net Assets Liabilities assets Assets Liabilities assets Concrete Pipe Division (note 4.2) $ – – – $ 9,426 642 8,784 Fairborn cement plant (note 4.3) – – – 5,957 164 5,793 Investment in shares of GCC (note 13.1) 1 – – – 3,882 – 3,882 Idle assets in Andorra, Spain 580 – 580 560 – 560 Concrete pumping equipment (note 4.3) – – – 213 – 213 Other assets held for sale982 798 – 798 991 9 $ 1,378 – 1,378 $ 21,029 815 20,214 1 During 2017, in separate transactions, CEMEX sold the direct investment in 23% of GCC’s common stock it maintained for sale (note 13.1) . 12.2) Other current assets As of December 31, 2017 and 2016, other current assets are mainly comprised of advance payments. 120 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 13) EQUITY ACCOUNTED INVESTEES, OTHER INVESTMENTS AND NON-CURRENT ACCOUNTS RECEIVABLE 13.1) Equity accounted investees As of December 31, 2017 and 2016, the investments in common shares of associates were as follows: Activity Country % 2017 2016 Camcem, S.A. de C.V. Cement Mexico 40.1 $ 3,618 3,674 Trinidad Cement Limited Cement Trinidad and Tobago 39.5 – 1,689 Concrete Supply Co. LLC Concrete United States 40.0 1,192 1,234 Akmenes Cementas AB Cement Lithuania 37.8 585 586 ABC Capital, S.A. Institución de Banca Múltiple Financing Mexico 33.9 228 474 Lehigh White Cement Company Cement United States 24.5 375 334 Société Méridionale de Carrières Aggregates France 33.3 367 300 Société d’Exploitation de Carrières Aggregates France 50.0 318 257 Cemento Interoceánico S.A. (formerly Industrias Básicas, S.A.) Cement Panama 25.0 168 155 4YMJW_HTRUFSNJX_ _____ Ÿ_ Ÿ_ Ÿ_ _ ______ $ 8,572 10,488 Out of which: Book value at acquisition date $ 6,957 8,275 Changes in stockholders’ equity $ 1,615 2,213 )ZWNSL_______YMJ_5FWJSY_(TRUFS^_UFWYNHNUFYJI_FX_XMFWJMTQIJW_NS_F_XMFWJ_WJXYWZHYZWNSL_J]JHZYJI_G^_(FRHJR__8_&__IJ_(_;__ Ñ¦(FRHJRÑ§___NSINWJHY_ UFWJSY_HTRUFS^_TK_(TSYWTQ_&IRNSNXYWFYN[T_2J]NHFST__8_&__IJ_(_;__ Ñ¦(FRXFÑ§__FSI_,((__FNRJI_YT_XNRUQNK^_NYX_HTWUTWFYJ_XYWZHYZWJ__G^_RJFSX_TK_¥MNHM__ Imin de México, S.A. de C.V., intermediate holding company, Camsa and GCC were merged, prevailing GCC as the surviving entity. As a result of the share restructuring, CEMEX’s 10.3% interest in Camcem and 49% interest in Camsa, both before the restructuring, were exchanged on equivalent basis into a 40.1% interest in Camcem and a 23% interest in GCC, which shares of the latest trade in the MSE (note 12.1) . On January 25, 2017, in a public offering to investors in Mexico conducted through the BMV and in a concurrent private placement to eligible investors outside of Mexico, the Parent Company and GCC announced the offering of up to 76,483,332 shares (all the shares of GCC owned by CEMEX) at a price range of between 95.00 to 115.00 pesos per share, which included 9,976,087 shares available to the underwriters of the offerings pursuant to a 30-day option to purchase such shares granted to them by CEMEX. During 2017, after conclusion of the public offering and the private placement, CEMEX sold approximately 13.53% of the common stock of GCC at a price of 95.00 pesos per share receiving $4,094 FKYJW_IJIZHYNSL_HTRRNXXNTSX_FSI_TKKJWNSL_J]UJSXJX__WJHTLSN_NSL_F_LFNS_TS_XFQJ_TK_______FX_UFWY_TK_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_NS_YMJ_ income statement. .S_FIINYNTS__TS_8JUYJRGJW___________(*2*=_FSSTZSHJI_YMJ_IJÜªSNYN[J_XFQJ_YT_Y¥T_ÜªSFSHNFQ_NSXYNYZYNTSX_TK_YMJ_WJRFNSNSL____________XMFWJX_TK_,((__ which represented approximately 9.47% of the equity capital of GCC. Proceeds from the sale were $3,012 and generated a gain on sale of $1,682 WJHTLSN_JI_FX_UFWY_TK_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_NS_YMJ_NSHTRJ_XYFYJRJSY__(*2*=_HTSYNSZJX_YT_MF[J_FS_FUUWT]NRFYJ___ _NSINWJHY_ interest in GCC through Camcem. As mentioned in note 4.1, by means of a public offer and take-over bid through its subsidiary Sierra, and effective as of February 1, 2017, CEMEX acquired a majority ownership interest in TCL’s common stock and assumed control of this entity. 121 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information (TRGNSJI_HTSIJSXJI_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_NSKTWRFYNTS_TK_(*2*=Ñ£X_FXXTHNFYJX_FX_TK_)JHJRGJW__________FSI______NX_XJY_KTWYM_GJQT¥_ 2017 2016 Current assets $ 21,527 21,651 Non-current assets 32,071 41,085 Total assets 53,598 62,736 Current liabilities 10,863 11,612 Non-current liabilities 17,730 22,436 Total liabilities 28,593 34,048 Total net assets $ 25,005 28,688 Combined selected information of the statements of operations of CEMEX’s associates in 2017, 2016 and 2015 is set forth below: 2017 2016 2015 Sales $ 28,158 29,791 25,484 Operating earnings 4,458 4,730 3,523 Income before income tax 2,451 3,111 3,350 Net income 1,891 1,860 2,403 The share of equity accounted investees by geographic operating segment in the income statements for 2017, 2016 and 2015 is detailed as follows: 2017 2016 2015 Mexico $ 269 452 330 United States 266 253 92 Europe 108 54 339 Corporate and others(24) (55) (71) $ 588 688 737 13.2) Other investments and non-current accounts receivable As of December 31, 2017 and 2016, consolidated other investments and non-current accounts receivable were summarized as follows: 2017 2016 3TS_HZWWJSY_UTWYNTS_TK_[FQZFYNTS_TK_IJWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSYX_ _ ____ _____ Non-current accounts receivable and other investments 1 4,612 4,572 Investments available-for-sale 2 275 491 Investments held for trading157 3 77 $ 5,758 7,120 1_.SHQZIJX__FRTSL_TYMJW_NYJRX__F__FI[FSHJX_YT_XZUUQNJWX_TK_Üª]JI_FXXJYX_TK____NS______FSI____NS_______(*2*=_WJHTLSN_JI_NRUFNWRJSY_QTXXJX_TK_STS_HZWWJSY_FHHTZSYX_WJHJN[FGQJ_NS_ Costa Rica of $21 in 2016, and in Egypt and Colombia of $71 and $22 in 2015, respectively. 2_9MNX_QNSJ_NYJR_WJKJWX_RFNSQ^_YT_F_XYWFYJLNH_NS[JXYRJSY_NS_(54X_TK_&]YJQ__8_&_’__IJ_(_;__ Ñ¦&]YJQÑ§___9MNX_NS[JXYRJSY_NX_WJHTLSN_JI_FX_F[FNQFGQJ_KTW_XFQJ_FY_KFNW_[FQZJ_FSI_HMFSLJX_NS_[FQZFYNTS_ are recorded in other items comprehensive income, net until its disposal. 3 This line item refers to investments in private funds. In 2017 and 2016, no contributions were made to such private funds. 122 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 14) PROPERTY, MACHINERY AND EQUIPMENT, NET As of December 31, 2017 and 2016, consolidated property, machinery and equipment, net and the changes in such line item during 2017, 2016 and 2015, were as follows: 2017 Land and Machinery mineral and Construction reserves 1 Building 1 equipment 2 in progress 3 Total Cost at beginning of period $ 97,218 51,740 229,717 17,247 395,922 Accumulated depreciation and depletion (16,301) (24,224) (125,263) – (165,788) Net book value at beginning of period 80,917 27,516 104,454 17,247 230,134 Capital expenditures 547 802 8,165 – 9,514 Additions through capital leases – – 2,096 – 2,096 Stripping costs 809 – – – 809 Total capital expenditures 1,356 802 10,261 – 12,419 Disposals 4 (347) (223) (1,274) – (1,844) 7JHQFXXNÜªHFYNTSX_5 (784) (82) (768) – (1,634) Business combinations 2,179 749 3,136 428 6,492 Depreciation and depletion for the period (2,571) (1,967) (9,417) – (13,955) Impairment losses (202) (1) (763) (18) (984) Foreign currency translation effects (1,895) 908 719 1,800 1,532 Cost at end of period 95,495 53,927 242,636 19,457 411,515 Accumulated depreciation and depletion (16,842) (26,225) (136,288) – (179,355) Net book value at end of period $ 78,653 27,702 106,348 19,457 232,160 2016 Land and Machinery mineral and Construction reserves 1 Building 1 equipment 2 in progress 3 Total 2015 Cost at beginning of period $ 86,441 48,563 211,232 13,853 360,089 324,210 Accumulated depreciation and depletion (12,215) (21,228) (109,952) – (143,395) (118,668) Net book value at beginning of period 74,226 27,335 101,280 13,853 216,694 205,542 Capital expenditures 2,149 1,856 8,671 – 12,676 11,454 Additions through capital leases – – 7 – 7 63 _ (FUNYFQN_FYNTS_TK_ÜªSFSHNFQ_J]UJSXJ_ _ ¢_ ¢_ ¢_ ____ ____ __ Stripping costs 421 – – – 421 723 Total capital expenditures 2,570 1,856 8,678 175 13,279 12,313 Disposals 4 (388) (141) (1,268) (44) (1,841) (2,247) 7JHQFXXNÜªHFYNTSX_5 (2,029) (703) (1,731) (86) (4,549) (3,099) Business combinations – – – – – 4,004 Depreciation and depletion for the period (2,426) (2,033) (9,582) – (14,041) (13,086) Impairment losses (671) (303) (547) (378) (1,899) (1,145) Foreign currency translation effects 9,635 1,505 7,624 3,727 22,491 14,412 Cost at end of period 97,218 51,740 229,717 17,247 395,922 360,089 Accumulated depreciation and depletion (16,301) (24,224) (125,263) – (165,788) (143,395) Net book value at end of period $ 80,917 27,516 104,454 17,247 230,134 216,694 1_.SHQZIJX_HTWUTWFYJ_GZNQINSLX_FSI_WJQFYJI_QFSI_XTQI_YT_ÜªSFSHNFQ_NSXYNYZYNTSX_NS_UWJ[NTZX_^JFWX__¥MNHM_¥JWJ_QJFXJI_GFHP__9MJ_FLLWJLFYJ_HFWW^NSL_FRTZSY_TK_YMJXJ_FXXJYX_FX_TK_)JHJRGJW_ 31, 2017 and 2016 was $1,690 and $1,777, respectively. 2 .SHQZIJX_FXXJYX__RFNSQ^_RTGNQJ_JVZNURJSY__FHVZNWJI_YMWTZLM_ÜªSFSHJ_QJFXJX__¥MNHM_HFWW^NSL_FRTZSY_FX_TK_)JHJRGJW__________FSI______¥FX_______FSI____WJXUJHYN[JQ^_ 123 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

4.1 Financial information 3 In July 2014, CEMEX Colombia began the construction of a new cement plant in the municipality of Maceo in the Antioquia department in Colombia with an annual capacity of approximately 1.1 million tons. The first phase included the construction of a cement mill, which began operating in testing phase for some months in 2016 with the supply of clinker from the Caracolito plant in Ibague, and the cement obtained was used in its entirety in the construction of the plant. The next phase, which includes the construction of the kiln, has been completed. In connection with the access road to the plant, the works were suspended meanwhile CEMEX Colombia obtains the permits for its completion. The beginning of commercial operations is subject to the successful conclusion of several ongoing processes related to certain operating permits and other proceedings. As a result of the investigations carried out for the deficiencies found (note 24.1), during the fourth quarter of 2016, CEMEX Colombia reduced construction in progress for $483 (US$23), of which, $295 (US$14) were recognized as impairment losses against “Other expenses, net,” considering that the assets, mainly advances for the purchase of land through a representative, were considered contingent assets based on the low probability for their recoverability due to deficiencies in the legal processes, and $188 (US$9) were decreased against “Other accounts payable” in connection with the cancellation of the portion payable of such assets. CEMEX Colombia determined an initial total budget for the plant of US$340. As of December 31, 2017, the carrying amount of the project, net of adjustments, is for an amount in Colombian pesos equivalent to US$333 ($6,543), considering the exchange rates as of December 31, 2017. 4 In 2017, includes sales of non-strategic fixed assets in Mexico, the United States, and Spain for $343, $223 and $220, respectively. In 2016, includes sales of non-strategic fixed assets in the United States, Mexico, and France for $317, $281 and $165, respectively. In 2015, includes the sales of non-strategic fixed assets in the United Kingdom, the United States and Spain for $584, $451 and $417, respectively. 5 In 2017, refers mainly to those assets of the Pacific Northwest Materials Business in the United States for $1,634 (note 4.2). In 2016, refers mainly to those assets of the Concrete Pipe Business in the United States for $2,747, as well as other disposal groups in the United States reclassified to assets available for sale for $1,386 (notes 4.2, 4.3 and 12.1). In 2015, refers to other disposal groups in the United States reclassified to assets available for sale for $537 (notes 4.3 and 12.1). As a result of impairment tests conducted on several CGUs considering certain triggering events, mainly: a) the closing and/or reduction of operations of cement and ready-mix concrete plants resulting from adjusting the supply to current demand conditions, such as the situation in Puerto Rico in the last quarter of 2016 due to the adverse outlook and the overall uncertain economic conditions in such country; b) the transferring of installed capacity to more efficient plants, such as the projected closing in the short-term of a cement mill in Colombia; as well as c) the recoverability of certain investments in Colombia as described above, for the years ended December 31, 2017, 2016 and 2015, CEMEX adjusted the related fixed assets to their estimated value in use in those circumstances in which the assets would continue in operation based on estimated cash flows during the remaining useful life, or to their realizable value, in case of permanent shut down, and recognized impairment losses within the line item of “Other expenses, net” (notes 2.10 and 6). During the years ended December 31, 2017, 2016 and 2015 impairment losses of fixed assets by countries are as follows: 2017 2016 2015 Spain $ 452 – 392 Czech Republic 157 – – United States 153 277 269 Panama 56 – 118 France 50 – – Latvia 46 – 126 Mexico 45 46 46 Puerto Rico – 1,087 172 Colombia – 454 – Other countries 25 35 22 $ 984 1,899 1,145124 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 15) GOODWILL AND INTANGIBLE ASSETS, NET 15.1) Balances and changes during the period As of December 31, 2017 and 2016, consolidated goodwill, intangible assets and deferred charges were summarized as follows: 2017 2016 Accumulated Carrying Accumulated Carrying Cost amortization Amount Cost amortization Amount .SYFSLNGQJ_FXXJYX_TK_NSIJÜªSNYJ_ZXJKZQ_QNKJ_ Goodwill $ 195,474 – 195,474 $ 206,319 – 206,319 .SYFSLNGQJ_FXXJYX_TK_IJÜªSNYJ_ZXJKZQ_QNKJ_ Extraction rights 39,603 (6,480) 33,123 40,995 (5,948) 35,047 Industrial property and trademarks 929 (364) 565 707 (350) 357 Customer relationships 3,859 (3,852) 7 4,343 (4,084) 259 Mining projects 797 (96) 701 961 (84) 877 Others intangible assets4,648 14,941 (9,902) 5,039 13,814 (9,166) $ 255,603 (20,694) 234,909 $ 267,139 (19,632) 247,507 9MJ_FRTWYN_FYNTS_TK_NSYFSLNGQJ_FXXJYX_TK_IJÜªSNYJ_ZXJKZQ_QNKJ_¥FX_______NS_____________NS______FSI_______NS_______FSI_¥FX_WJHTLSN_JI_¥NYMNS_ operating costs and expenses. Goodwill Changes in consolidated goodwill in 2017, 2016 and 2015, were as follows: 2017 2016 2015 Balance at beginning of period $ 206,319 184,156 160,544 Business combinations 1,965 – 64 Disposals, net (note 4.3) – (3,340) (552) _ 7JHQFXXNÜªHFYNTS_YT_FXXJYX_MJQI_KTW_XFQJ_FSI_TYMJW_HZWWJSY_FXXJYX_ STYJX__________FSI_____ _ _______ _______ ¢ Impairment losses (1,920) – – Foreign currency translation effects (9,086) 35,237 24,100 Balance at end of period $ 195,474 206,319 184,156 125 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information .SYFSLNGQJ_FXXJYX_TK_IJÜªSNYJ_QNKJ (MFSLJX_NS_NSYFSLNGQJ_FXXJYX_TK_IJÜªSNYJ_QNKJ_NS____________FSI_______¥JWJ_FX_KTQQT¥X_ 2017 Industrial Extraction property and Customer Mining rights trademarks relations projects Others 1 Total Balance at beginning of period $ 35,047 357 259 877 4,648 41,188 Additions (disposals), net 1 278 (783) – (148) 424 (229) Business combinations (note 4.1) – – – 4 72 76 _ 7JHQFXXNÜªHFYNTSX_ STYJX__________FSI_____ _ ¢_ ¢_ ____ ¢_ ¢_ ___ Amortization for the period (716) (110) (225) (12) (974) (2,037) Impairment losses (38) – – – (12) (50) Foreign currency translation effects (1,448) 1,101 – (20) 881 514 Balance at the end of period $ 33,123 565 7 701 5,039 39,435 2016 Industrial Extraction property and Customer Mining rights trademarks relations projects Others 1 Total 2015 Balance at beginning of period $ 30,327 622 1,004 805 3,808 36,566 32,940 Business combinations – – – – – – 616 Additions (disposals), net 1 201 (760) – (382) 343 (598) (186) _ 7JHQFXXNÜªHFYNTSX_ STYJX__________FSI_____ _ ¢_ ¢_ ¢_ ¢_ ¢_ ¢_ _ Amortization for the period (712) (293) (658) (12) (275) (1,950) (1,572) Impairment losses (6) – – – (19) (25) (10) Foreign currency translation effects 5,237 788 (87) 466 791 7,195 4,777 Balance at the end of period $ 35,047 357 259 877 4,648 41,188 36,566 1_&X_TK_)JHJRGJW__________FSI_______Ñ¦4YMJWXÑ§_NSHQZIJX_YMJ_HFWW^NSL_FRTZSY_TK_NSYJWSFQ_ZXJ_XTKY¥FWJ_TK_______FSI________WJXUJHYN[JQ^__(FUNYFQN_JI_INWJHY_HTXYX_NSHZWWJI_NS_YMJ_ development stage of internal-use software, such as professional fees, direct labor and related travel expenses, amounted to $1,422 in 2017, $769 in 2016 and $615 in 2015. 126 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 15.2) Analysis of goodwill impairment As of December 31, 2017 and 2016, goodwill balances allocated by operating segment were as follows: 2017 2016 Mexico $ 7,371 7,529 United States 152,486 162,692 Europe Spain 10,000 12,316 United Kingdom 6,335 6,371 France 4,796 4,524 Czech Republic 709 583 South, Central America and the Caribbean Colombia 6,146 6,461 Dominican Republic 279 250 TCL 2,027 –Rest of South, Central America and the Caribbean 1 985 1,036 Asia, Middle East and Africa Philippines 1,817 1,911 United Arab Emirates 1,769 1,865 Egypt 232 231 Others Other reporting segments550 2 522 $ 195,474 206,319 1 This caption refers to the operating segments in the Caribbean, Costa Rica and Panama. 2 This caption is primarily associated with Neoris N.V., CEMEX’s subsidiary involved in the sale of information technology and services. For purposes of goodwill impairment tests, all cash-generating units within a country are aggregated, as goodwill is allocated at that level. Considering materiality for disclosure purposes, certain balances of goodwill were presented for Rest of South, Central America and the Caribbean, but this does not represent that goodwill was tested at a higher level than for operations in an individual country. During the last quarter of each year, CEMEX performs its annual goodwill impairment test. Based on these analyses, during 2017, in connection with the Operating Segment in Spain, considering the uncertainty over the improvement indicators affecting the country’s construction industry, and consequently in the expected consumption of cement, ready-mix and aggregates, partially a result of the country’s complex prevailing political environment, which has limited expenditure in infrastructure projects, as well as the uncertainty in the expected price recovery and the effects of NSHWJFXJI_HTRUJYNYNTS_FSI_NRUTWYX__(*2*=Ñ£X_RFSFLJRJSY_HTSXNIJWJI_F_WJIZHYNTS_NS_YMJ_MTWN_TS_TK_YMJ_WJQFYJI_HFXM_Ü«T¥X_UWTOJHYNTSX_KWTR____YT_ 5 years and determined that the net book value of such Operating Segment in Spain, exceeded in $1,920 (US$98) the amount of the net present [FQZJ_TK_UWTOJHYJI_HFXM_Ü«T¥X__&X_F_WJXZQY__(*2*=_WJHTLSN_JI_FS_NRUFNWRJSY_QTXX_TK_LTTI¥NQQ_KTW_YMJ_FKTWJRJSYNTSJI_FRTZSY_FX_UFWY_TK_Ñ¦4YMJW_ J]UJSXJX__SJYÑ§_NS_YMJ_NSHTRJ_XYFYJRJSY_FLFNSXY_YMJ_WJQFYJI_LTTI¥NQQ_GFQFSHJ_ During 2016 and 2015, CEMEX did not determine impairment losses of goodwill. 127 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information .RUFNWRJSY_YJXYX_FWJ_XNLSNÜªHFSYQ^_XJSXNYN[J_YT__FRTSL_TYMJW_KFHYTWX__YMJ_JXYNRFYNTS_TK_KZYZWJ_UWNHJX_TK_(*2*=Ñ£X_UWTIZHYX__YMJ_IJ[JQTURJSY_TK_ operating expenses, local and international economic trends in the construction industry, the long-term growth expectations in the different RFWPJYX__FX_¥JQQ_FX_YMJ_INXHTZSY_WFYJX_FSI_YMJ_QTSL_YJWR_LWT¥YM_WFYJX_FUUQNJI__(*2*=Ñ£X_HFXM_Ü«T¥_UWTOJHYNTSX_YT_IJYJWRNSJ_YMJ_[FQZJ_NS_ZXJ_TK_NYX_ (,:X_YT_¥MNHM_LTTI¥NQQ_MFX_GJJS_FQQTHFYJI_HTSXNIJW_YMJ_ZXJ_TK_QTSL_YJWR_JHTSTRNH_FXXZRUYNTSX__(*2*=_GJQNJ[JX_YMFY_NYX_INXHTZSYJI_HFXM_Ü«T¥_ UWTOJHYNTSX_FSI_YMJ_INXHTZSY_WFYJX_ZXJI_WJFXTSFGQ^_WJÜ«JHY_HZWWJSY_JHTSTRNH_HTSINYNTSX_FY_YMJ_YNRJ_TK_YMJ_HFQHZQFYNTSX__HTSXNIJWNSL__FRTSL_TYMJW_ KFHYTWX_YMFY__F__YMJ_HTXY_TK_HFUNYFQ_WJÜ«JHYX_HZWWJSY_WNXPX_FSI_[TQFYNQNY^_NS_YMJ_RFWPJYX _FSI_G__YMJ_HTXY_TK_IJGY_WJUWJXJSYX_YMJ_F[JWFLJ_TK_NSIZXYW^_ XUJHNÜªH_NSYJWJXY_WFYJX_TGXJW[JI_NS_WJHJSY_YWFSXFHYNTSX__4YMJW_PJ^_FXXZRUYNTSX_ZXJI_YT_IJYJWRNSJ_(*2*=Ñ£X_INXHTZSYJI_HFXM_Ü«T¥X_FWJ_[TQZRJ_FSI_ UWNHJ_NSHWJFXJX_TW_IJHWJFXJX_G^_RFNS_UWTIZHY_IZWNSL_YMJ_UWTOJHYJI_UJWNTIX__;TQZRJ_NSHWJFXJX_TW_IJHWJFXJX_LJSJWFQQ^_WJÜ«JHY_KTWJHFXYX_NXXZJI_G^_ trustworthy external sources, occasionally adjusted based on CEMEX’s actual backlog, experience and judgment considering its concentration NS_HJWYFNS_XJHYTWX__¥MNQJ_UWNHJ_HMFSLJX_STWRFQQ^_WJÜ«JHY_YMJ_J]UJHYJI_NSÜ«FYNTS_NS_YMJ_WJXUJHYN[J_HTZSYW^__4UJWFYNSL_HTXYX_FSI_J]UJSXJX_IZWNSL_FQQ_ UJWNTIX_FWJ_RFNSYFNSJI_FX_F_Üª]JI_UJWHJSY_TK_WJ[JSZJX_HTSXNIJWNSL_MNXYTWNH_UJWKTWRFSHJ_ (*2*=Ñ£X_UWJ_YF]_INXHTZSY_WFYJX_FSI_QTSL_YJWR_LWT¥YM_WFYJX_ZXJI_YT_IJYJWRNSJ_YMJ_INXHTZSYJI_HFXM_Ü«T¥X_NS_YMJ_LWTZU_TK_(,:X_¥NYM_YMJ_RFNS_ goodwill balances were as follows: Discount rates Growth rates Groups of CGUs 2017 2016 2015 2017 2016 2015 United States 8.8% 8.6% 8.6% 2.5% 2.5% 2.5% Spain 9.5% 9.5% 9.9% 1.7% 1.6% 1.9% Mexico 10.2% 9.8% 9.6% 2.7% 2.9% 3.5% Colombia 10.5% 10.0% 9.8% 3.7% 4.0% 4.0% France 9.0% 9.1% 9.0% 1.8% 1.8% 1.6% United Arab Emirates 10.4% 10.2% 10.2% 3.1% 3.4% 3.6% United Kingdom 9.0% 8.8% 8.8% 1.7% 1.9% 2.3% Egypt 11.8% 11.4% 12.5% 6.0% 6.0% 4.6% Range of rates in other countries 9.1%—11.7% 9.1%—12.8% 9.0%—13.8% 2.3%—6.8% 2.2%—7.0% 2.4%—4.3% &X_TK_)JHJRGJW___________YMJ_INXHTZSY_WFYJX_ZXJI_G^_(*2*=_NS_NYX_HFXM_Ü«T¥X_UWTOJHYNTSX_NS_YMJ_HTZSYWNJX_¥NYM_YMJ_RTXY_XNLSNÜªHFSY_LTTI¥NQQ_ balances increased slightly as compared to the values determined in 2016. During the year, the funding cost observed in industry slightly decreased from 6.2% in 2016 to 6.1% in 2017 and the risk multiple associated to the Company also decreased from 1.29 in 2016 to 1.26 in 2017. Nonetheless, these decreases were offset by an increase in the risk free rate which change from 2.70% in 2016 to 2.76% in 2017, as well as by overall increases NS_YMJ_XT[JWJNLS_WNXP_WFYJ_TK_YMJ_RFOTWNY^_TK_YMJ_HTZSYWNJX__&X_TK_)JHJRGJW___________YMJ_INXHTZSY_WFYJX_WJRFNSJI_FQRTXY_Ü«FY_NS_RTXY_HFXJX_FX_ compared to the values determined in 2015. Among other factors, the funding cost observed in industry decreased from 6.9% in 2015 to 6.2% in 2016, and the risk free rate decreased from approximately 3.2% in 2015 to 2.7 % in 2016. Nonetheless, these increases were offset by reductions in _____NS_YMJ_HTZSYW^_XUJHNÜªH_XT[JWJNLS_^NJQIX_NS_YMJ_RFOTWNY^_TK_YMJ_HTZSYWNJX_¥MJWJ_(*2*=_TUJWFYJX__&X_TK_)JHJRGJW___________YMJ_INXHTZSY_WFYJX_ WJRFNSJI_FQRTXY_Ü«FY_NS_RTXY_HFXJX_FX_HTRUFWJI_YT_YMJ_[FQZJX_IJYJWRNSJI_NS_UWJ[NTZX_^JFW__.S_WJXUJHY_YT_QTSL_YJWR_LWT¥YM_WFYJX__KTQQT¥NSL_LJSJWFQ_ UWFHYNHJ_ZSIJW_.+78__(*2*=_ZXJX_HTZSYW^_XUJHNÜªH_WFYJX__¥MNHM_FWJ_RFNSQ^_TGYFNSJI_KWTR_YMJ_(TSXJSXZX_*HTSTRNHX__F_HTRUNQFYNTS_TK_FSFQ^XYXÑ£_ KTWJHFXY_¥TWQI¥NIJ__TW_KWTR_YMJ_.SYJWSFYNTSFQ_2TSJYFW^_+ZSI_¥MJS_YMJ_ÜªWXY_FWJ_STY_F[FNQFGQJ_KTW_F_XUJHNÜªH_HTZSYW^_ 128 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information In connection with the assumptions included in the table above, CEMEX made sensitivity analyses to changes in assumptions, affecting the value in use of all groups of CGUs with an independent reasonable possible increase of 1% in the pre-tax discount rate, and an independent possible decrease of 1% in the long-term growth rate. In addition, CEMEX performed cross-check analyses for reasonableness of its results using multiples TK_4UJWFYNSL_*’.9)&__.S_TWIJW_YT_FWWN[J_FY_YMJXJ_RZQYNUQJX__¥MNHM_WJUWJXJSY_F_WJFXTSFGQJSJXX_HMJHP_TK_YMJ_INXHTZSYJI_HFXM_Ü«T¥_RTIJQX__(*2*=_ determined a weighted average multiple of Operating EBITDA to enterprise value observed in the industry. The average multiple was then applied to a stabilized amount of Operating EBITDA and the result was compared to the corresponding carrying amount for each group of CGUs to which goodwill has been allocated. CEMEX considered an industry weighted average Operating EBITDA multiple of 9.0 times in 2017, 2016 and 2015. CEMEX’s own Operating EBITDA multiple was 8.5 times in 2017, 8.9 times in 2016 and 8.7 times in 2015. The lowest multiple observed in CEMEX’s benchmark was 6.5 times in 2017, 5.9 times in 2016 and 5.8 times in 2015, and the highest being 18.9 times in 2017, 18.3 times in 2016 and 18.0 times in 2015. As of December 31, 2017, 2016 and 2015, except for the Operating Segment in Spain described above, in which CEMEX determined an impairment loss of goodwill in 2017, none of the other CEMEX’s sensitivity analyses resulted in a potential impairment risk in CEMEX’s operating segments. (*2*=_HTSYNSZFQQ^_RTSNYTWX_YMJ_J[TQZYNTS_TK_YMJ_XUJHNÜªH_(,:X_YT_¥MNHM_LTTI¥NQQ_MFX_GJJS_FQQTHFYJI_YMFY_MF[J_UWJXJSYJI_WJQFYN[J_LTTI¥NQQ_ NRUFNWRJSY_WNXP_NS_FS^_TK_YMJ_WJUTWYJI_UJWNTIX_FSI__NS_YMJ_J[JSY_YMFY_YMJ_WJQJ[FSY_JHTSTRNH_[FWNFGQJX_FSI_YMJ_WJQFYJI_HFXM_Ü«T¥X_UWTOJHYNTSX_¥TZQI_ be negatively affected, it may result in a goodwill impairment loss in the future. As of December 31, 2017 and 2016, goodwill allocated to the United States accounted for approximately 78% and 79%, respectively, of CEMEX’s total amount of consolidated goodwill. In connection with CEMEX’s determination of value in use relative to its groups of CGUs in the United States in the reported periods, CEMEX has considered several factors, such as the historical performance of such operating segment, including the operating results in recent years, the long-term nature of CEMEX’s investment, the signs of recovery in the construction industry over the last years, YMJ_XNLSNÜªHFSY_JHTSTRNH_GFWWNJWX_KTW_SJ¥_UTYJSYNFQ_HTRUJYNYTWX_HTSXNIJWNSL_YMJ_MNLM_NS[JXYRJSY_WJVZNWJI__FSI_YMJ_QFHP_TK_XZXHJUYNGNQNY^_TK_YMJ_ industry to technology improvements or alternate construction products, among other factors. CEMEX has also considered recent developments in its operations in the United States, such as the decrease in ready-mix concrete volumes of approximately 1% in 2017, affected by the hurricanes occurred in Texas and Florida during the year, and the increases of 1% in 2016 and 13% in 2015, and the increases in ready-mix concrete prices of FUUWT]NRFYJQ^__ _NS________ _NS______FSI__ _NS_______¥MNHM_FWJ_PJ^_IWN[JWX_KTW_HJRJSY_HTSXZRUYNTS_FSI_(*2*=Ñ£X_UWTÜªYFGNQNY^__FSI_¥MNHM_YWJSIX_ FWJ_J]UJHYJI_YT_HTSYNSZJ_T[JW_YMJ_SJ]Y_KJ¥_^JFWX__FX_FSYNHNUFYJI_NS_(*2*=Ñ£X_HFXM_Ü«T¥_UWTOJHYNTSX_ 129 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 16) FINANCIAL INSTRUMENTS 16.1) Short-term and long-term debt As of December 31, 2017 and 2016, CEMEX´s consolidated debt summarized by interest rates and currencies, was as follow: 2017 2016 Short-term Long-term Total Short-term Long-term Total Floating rate debt $ 7,282 53,389 60,671 $ 519 64,550 65,069 Fixed rate debt171,169 9,691 123,633 133,324 703 170,466 $ 16,973 177,022 193,995 $ 1,222 235,016 236,238 Effective rate 1 Floating rate 6.1% 3.0% 9.7% 4.4% Fixed rate 4.8% 5.7% 4.4% 6.5% 2017 2016 Effective Effective Currency Short-term Long-term Total rate 1 Short-term Long-term Total rate 1 Dollars $ 6,206 107,508 113,714 5.9% $ 114 179,675 179,789 6.3% Euros 9,705 54,906 64,611 3.5% 50 55,292 55,342 4.3% Pounds – 9,141 9,141 2.6% – – – –Philippine pesos – 5,408 5,408 4.6% – – – –Pesos – – – – 648 – 648 4.4% Other currencies 1,062 59 1,121 6.2% 410 49 459 10.2% $ 16,973 177,022 193,995 $ 1,222 235,016 236,238 1 In 2017 and 2016, represents the weighted average interest rate of the related debt agreements. 130 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information As of December 31, 2017 and 2016, CEMEX´s consolidated debt summarized by type of instrument, was as follow: 2017 Short-term Long-term 2016 Short-term Long-term Bank loans Bank loans Loans in foreign countries, 2018 to 2022 $ 910 5,439 Loans in foreign countries, 2017 to 2022 $ 261 1,090 Syndicated loans, 2018 to 202057,032 – 50,132 Syndicated loans, 2017 to 2020 36 910 55,571 297 58,122 Notes payable Notes payable Notes payable in Mexico, 2018 – – Notes payable in Mexico, 2017 – 648 Medium-term notes, 2018 to 2026 224 133,949 Medium-term notes, 2017 to 2026 – 173,656 Other notes payable, 2018 to 20253,342 154 3,187 Other notes payable, 2017 to 2025 173 378 137,136 173 177,646 Total bank loans and notes payable 1,288 192,707 Total bank loans and notes payable 470 235,768 Current maturities(752) 15,685 (15,685) Current maturities 752 $ 16,973 177,022 $ 1,222 235,016 As of December 31, 2017 and 2016, discounts, fees and other direct costs incurred in the issuance of CEMEX’s outstanding notes payable and GFSP_QTFSX_KTW_:8___FSI_:8____WJXUJHYN[JQ^__FIOZXY_YMJ_GFQFSHJ_TK_STYJX_UF^FGQJ_FSI_FWJ_FRTWYN_JI_YT_ÜªSFSHNSL_J]UJSXJ_T[JW_YMJ_RFYZWNY^_TK_ the related debt instruments. Changes in consolidated debt for the years ended December 31, 2017, 2016 and 2015 were as follows: 2017 2016 2015 Debt at beginning of year $ 236,238 229,343 205,834 Proceeds from new debt instruments 93,620 48,748 52,764 Debt repayments (128,411) (85,798) (64,237) _ +TWJNLS_HZWWJSH^_YWFSXQFYNTS_FSI_NSÜ«FYNTS_JKKJHYX_ _ _______ _______ ______ Debt at end of year $ 193,995 236,238 229,343 As of December 31, 2017 and 2016, as presented in the table above of debt by type of instrument, approximately 29% and 25%, respectively, of (*2*=Ñ£X_YTYFQ_NSIJGYJISJXX__¥FX_WJUWJXJSYJI_G^_GFSP_QTFSX__TK_¥MNHM_YMJ_RTXY_XNLSNÜªHFSY_UTWYNTS_HTWWJXUTSIJI_YT_YMTXJ_GFQFSHJX_ZSIJW_(*2*=Ñ£X_ KFHNQNYNJX_FLWJJRJSY_JSYJWJI_NSYT_¥NYM____ÜªSFSHNFQ_NSXYNYZYNTSX_TS_/ZQ^__________KTW_FS_FRTZSY_NS_INKKJWJSY_HZWWJSHNJX_JVZN[FQJSY_YT_FUUWT]NRFYJQ^_ :8______FY_YMJ_TWNLNSFYNTS_IFYJ_ YMJ_Ñ¦_____(WJINY_&LWJJRJSYÑ§__¥MNHM_¥FX_RFNSQ^_ZXJI_YT_WJÜªSFSHJ_YMJ_FUUWT]NRFYJQ^_:8______TZYXYFSINSL_ ZSIJW_YMJ_KFHNQNYNJX_FLWJJRJSY_IFYJI_8JUYJRGJW___________FX_FRJSIJI_XJ[JWFQ_YNRJX_NS______FSI______ YMJ_Ñ¦_____(WJINY_&LWJJRJSYÑ§___.S_FIINYNTS__ FX_UFWY_TK_(*2*=Ñ£X_HZWWJSH^_IN[JWXNÜªHFYNTS_NS_NYX_IJGY_UTWYKTQNT_IJXHWNGJI_NS_STYJ_______IZWNSL_______(*2*=_WJUQFHJI_IJGY_IJSTRNSFYJI_NS_ITQQFWX_ for US$280 pursuant to the negotiation of a bank loan denominated in Philippine pesos. 131 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information In addition, as of December 31, 2017 and 2016, as presented in the table above of debt by type of instrument, approximately 71% and 75%, WJXUJHYN[JQ^__TK_(*2*=Ñ£X_YTYFQ_NSIJGYJISJXX__¥FX_WJUWJXJSYJI_G^_STYJX_UF^FGQJ__TK_¥MNHM__YMJ_RTXY_XNLSNÜªHFSY_UTWYNTS_¥FX_QTSL_YJWR_NS_GTYM_ periods. As of December 31, 2017 and 2016, CEMEX’s long-term notes payable are detailed as follows: Repurchased Outstanding Date of Principal Maturity amount amount 3 Description issuance Issuer 1, 2 Currency amount Rate 1 date US$ US$ 2017 2016 April 2026 Notes 8 16/Mar/16 CEMEX, S.A.B. de C.V. Dollar 1,000 7.75% 16/Apr/26 – 1,000 $ 19,568 20,631 July 2025 Notes 02/Apr/03 CEMEX Materials LLC Dollar 150 7.70% 21/Jul/25 – 150 3,061 3,249 March 2025 Notes 03/Mar/15 CEMEX, S.A.B. de C.V. Dollar 750 6.125% 05/May/25 – 750 14,691 15,488 January 2025 Notes 11/Sep/14 CEMEX, S.A.B. de C.V. Dollar 1,100 5.70% 11/Jan/25 (29) 1,071 20,988 22,124 December 2024 Notes 4 05/Dec/17 CEMEX, S.A.B. de C.V. Euro 650 2.75% 05/Dec/24 – 780 15,257 –June 2024 Notes 8 14/Jun/16 CEMEX Finance LLC Euro 400 4.625% 15/Jun/24 – 480 9,390 8,665 April 2024 Notes 01/Apr/14 CEMEX Finance LLC Dollar 1,000 6.00% 01/Apr/24 (10) 990 18,924 19,886 March 2023 Notes 03/Mar/15 CEMEX, S.A.B. de C.V. Euro 550 4.375% 05/Mar/23 – 660 12,938 11,948 October 2022 Notes 5, 8 12/Oct/12 CEMEX Finance LLC Dollar 1,500 9.375% 12/Oct/22 (1,500) – – 21,738 January 2022 Notes 5 11/Sep/14 CEMEX, S.A.B. de C.V. Euro 400 4.75% 11/Jan/22 – 480 9,434 8,696 April 2021 Notes 6 01/Apr/14 CEMEX Finance LLC Euro 400 5.25% 01/Apr/21 (447) – – 8,679 January 2021 Notes 7, 8 02/Oct/13 CEMEX, S.A.B. de C.V. Dollar 1,000 7.25% 15/Jan/21 (659) 341 6,606 14,845 December 2019 Notes 5, 7, 8 12/Aug/13 CEMEX, S.A.B. de C.V. Dollar 1,000 6.50% 10/Dec/19 (1,000) – – 14,471 October 2018 Variable Notes 8 02/Oct/13 CEMEX, S.A.B. de C.V. Dollar 500 L+475bps 15/Oct/18 (187) 313 6,154 6,485 November 2017 Notes 30/Nov/07 CEMEX, S.A.B. de C.V. Peso 627 4.40% 17/Nov/17 (37) – – 648 Other notes payable93 125 $ 137,136 177,646 1 .S_FQQ_FUUQNHFGQJ_HFXJX_YMJ_NXXZJW_WJKJWX_YT_(*2*=_*XUFà¤”F__8_&__FHYNSL_YMWTZLM_NYX_1Z]JRGTZWL_‘WFSHM__9MJ_QJYYJW_Ñ¦1Ñ§_NSHQZIJI_FGT[J_WJKJWX_YT_1.‘47__¥MNHM_WJUWJXJSYX_YMJ_1TSITS_ Inter-Bank Offered Rate, variable rate used in international markets for debt denominated in U.S. dollars. As of December 31, 2017 and 2016, 3-Month LIBOR rate was 1.6943% and ______ __WJXUJHYN[JQ^__9MJ_HTSYWFHYNTS_Ñ¦GUXÑ§_RJFSX_GFXNX_UTNSYX__4SJ_MZSIWJI_GFXNX_UTNSYX_JVZFQ__ _ 2 Unless otherwise indicated, all issuances are fully and unconditionally guaranteed by CEMEX, S.A.B. de C.V., CEMEX México, S.A. de C.V., CEMEX Concretos, S.A. de C.V., Empresas Tolteca de México, S.A. de C.V., New Sunward Holding B.V., CEMEX España, S.A., CEMEX Asia, B.V., CEMEX Corp., CEMEX Egyptian Investments, B.V., CEMEX Finance LLC, CEMEX France Gestion, (S.A.S.), CEMEX Research Group AG and CEMEX UK. CEMEX Egyptian Investments II, B.V. and CEMEX Shipping B.V. originally guaranteed the issuances listed above but were merged into CEMEX España, S.A. on October 3, 2016. 3 Presented net of all outstanding notes repurchased and held by CEMEX’s subsidiaries. 4_4S_)JHJRGJW__________(*2*=_NXXZJI_Ó____TK_____ _XJSNTW_XJHZWJI_STYJX_IZJ_)JHJRGJW_________ YMJ_Ñ¦)JHJRGJW______3TYJXÑ§___9MJ_UWTHJJIX_¥NQQ_GJ_ZXJI_YT_WJUF^_TYMJW_NSIJGYJISJXX_ 5 In connection with tender offers or the execution of call notice, as applicable, on December 10, 2017, CEMEX repurchased the outstanding amount of the December 2019 Notes for an aggregate principal amount of US$611; and on September 25, 2017, CEMEX repurchased US$701 aggregate principal amount of the October 2022 Notes. The notes of the holders that did not tender in the offer for US$343 were redeemed on October 12, 2017. In addition, on November 28, 2017, CEMEX announced its intention to redeem the total TZYXYFSINSL_FRTZSY_TK_YMJ_/FSZFW^______3TYJX_KTW_FS_FLLWJLFYJ_UWNSHNUFQ_FRTZSY_TK_Ó____ :8____TW________YMFY_¥TZQI_GJ_UF^FGQJ_TS_/FSZFW^__________FSI_FWJ_UWJXJSYJI_FX_ HZWWJSY_RFYZWNYNJX_TK_QTSL_YJWR_IJGY_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FX_TK_)JHJRGJW__________ STYJ_____ 6_4S_2F^___________G^_RJFSX_TK_F_YJSIJW_TKKJW_KTW_YMJ_&UWNQ______3TYJX__(*2*=_WJIJJRJI_YMJ_WJRFNSNSL_Ó____TK_FLLWJLFYJ_UWNSHNUFQ_FRTZSY_TK_XZHM_STYJX_ 7 On February 28, 2017, by means of a tender offer, CEMEX repurchased US$385 aggregate principal amount of the January 2021 Notes and US$90 of the December 2019 Notes. 8_)ZWNSL_______G^_RJFSX_TK_YJSIJW_TKKJWX__ZXNSL_F[FNQFGQJ_KZSIX_KWTR_YMJ_NXXZFSHJ_TK_YMJ_&UWNQ______3TYJX__YMJ_/ZSJ______3TYJX__YMJ_XFQJ_TK_FXXJYX_FSI_HFXM_Ü«T¥X_UWT[NIJI_G^_ operating activities, CEMEX completed the purchase of US$739 principal amount of the October 2022 Notes, the purchase of US$178 principal amount of the October 2018 Variable Notes, the purchase of US$219 principal amount of the December 2019 Notes, and the purchase of US$242 principal amount of the January 2021 Notes. 132 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information During 2017, 2016 and 2015, as a result of the debt transactions incurred including exchange offers and tender offers to replace and/or repurchase existing debt instruments, CEMEX paid combined premiums, fees and issuance costs for US$251 ($4,930), US$196 ($4,061) and US$61 ($1,047), respectively, of which US$212 ($4,160) in 2017, US$151 ($3,129) in 2016 and US$35 ($604) in 2015 are associated with the extinguished portion TK_YMJ_J]HMFSLJI_TW_WJUZWHMFXJI_STYJX_FSI_¥JWJ_WJHTLSN_JI_NS_YMJ_XYFYJRJSY_TK_TUJWFYNTSX_NS_JFHM_^JFW_¥NYMNS_Ñ¦+NSFSHNFQ_J]UJSXJ_Ñ§_.S_FIINYNTS__ US$39 ($770) in 2017, US$45 ($932) in 2016 and US$26 ($443) in 2015, corresponding to issuance costs of new debt and/or the portion of the HTRGNSJI_UWJRNZRX__KJJX_FSI_NXXZFSHJ_HTXYX_YWJFYJI_FX_F_WJÜªSFSHNSL_TK_YMJ_TQI_NSXYWZRJSYX_G^_HTSXNIJWNSL_YMFY__F__YMJ_WJQJ[FSY_JHTSTRNH_YJWRX_ TK_YMJ_TQI_FSI_SJ¥_STYJX_¥JWJ_STY_XZGXYFSYNFQQ^_INKKJWJSY _FSI_G__YMJ_ÜªSFQ_MTQIJWX_TK_YMJ_SJ¥_STYJX_¥JWJ_YMJ_XFRJ_TK_XZHM_UTWYNTS_TK_YMJ_TQI_STYJX _ adjusted the carrying amount of the new debt instruments, and are amortized over the remaining term of each instrument. Moreover, proportional fees and issuance costs related to the extinguished debt instruments for US$16 ($310) in 2017, US$37 ($767) in 2016 and US$31 ($541) in 2015 YMFY_¥JWJ_UJSINSL_KTW_FRTWYN_FYNTS_¥JWJ_WJHTLSN_JI_NS_YMJ_XYFYJRJSY_TK_TUJWFYNTSX_TK_JFHM_^JFW_FX_UFWY_TK_Ñ¦+NSFSHNFQ_J]UJSXJ_Ñ§ The maturities of consolidated long-term debt as of December 31, 2017, were as follows: 2017 2019 $ 30 2020 10,175 2021 26,948 2022 19,594 2023 and thereafter. 120,275 $ 177,022 As of December 31, 2017, CEMEX had the following lines of credit, the majority of which are uncommitted, at annual interest rates ranging between 1.25% and 6.50%, depending on the negotiated currency: Lines of credit Available Other lines of credit in foreign subsidiaries $ 9,506 7,237 Other lines of credit from banks8,169 9,309 $ 18,815 15,406 2017 Credit Agreement, 2014 Credit Agreement and Facilities Agreement &X_RJSYNTSJI_FGT[J__TS_/ZQ^___________YMJ_5FWJSY_(TRUFS^_FSI_HJWYFNS_XZGXNINFWNJX_JSYJWJI_NSYT_YMJ______(WJINY_&LWJJRJSY_¥NYM____ÜªSFSHNFQ_ NSXYNYZYNTSX_KTW_FS_FRTZSY_NS_INKKJWJSY_HZWWJSHNJX_JVZN[FQJSY_YT_:8______FY_YMJ_TWNLNSFYNTS_IFYJ__¥MNHM_UWTHJJIX_¥JWJ_ZXJI_YT_WJÜªSFSHJ_NS_KZQQ_ the US$3,680 then outstanding under the 2014 Credit Agreement and other debt repayments, allowing CEMEX to increase the average life of its X^SINHFYJI_GFSP_IJGY_YT_FUUWT]NRFYJQ^_____^JFWX_¥NYM_F_ÜªSFQ_RFYZWNY^_NS_/ZQ^_______&QQ_YWFSHMJX_ZSIJW_YMJ______(WJINY_&LWJJRJSY_MF[J_XZGXYFSYNFQQ^_ the same terms, including an applicable margin over the benchmark interest rate of between 125 to 350 basis points, depending on CEMEX’s consolidated debt leverage ratio; and the tranches share the same guarantors and collateral package as the original tranches under the 2014 Credit Agreement and other secured debt obligations of CEMEX. As of December 31, 2017, total commitments under the 2017 Credit Agreement NSHQZIJI_:8______ _________Ó____ :8____TW__________f____ :8____TW_________TZY_TK_¥MNHM_FGTZY_:8______ ________¥JWJ_NS_F_WJ[TQ[NSL_ HWJINY_KFHNQNY^__&QQ_YWFSHMJX_ZSIJW_YMJ______(WJINY_&LWJJRJSY_FRTWYN_J_NS_Üª[J_JVZFQ_XJRN_FSSZFQ_UF^RJSYX_GJLNSSNSL_NS_/ZQ^_______J]HJUY_KTW_YMJ_ HTRRNYRJSYX_ZSIJW_YMJ_WJ[TQ[NSL_HWJINY_¥MNHM_MF[J_F_Üª[J_^JFW_RFYZWNY^_ 133 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information The original proceeds from the 2014 Credit Agreement of US$1,350 were fully used to repay debt under the then existing facilities agreement JSYJWJI_NSYT_TS_8JUYJRGJW___________FX_FRJSIJI_KWTR_YNRJ_YT_YNRJ_ YMJ_Ñ¦+FHNQNYNJX_&LWJJRJSYÑ§___4S_/ZQ^___________FKYJW_XJ[JWFQ_WJUF^RJSYX_ZSIJW_ the Facilities Agreement using proceeds from other debt issuances, CEMEX repaid in full the then total amount outstanding of US$1,937 ($33,375) ZSIJW_YMJ_+FHNQNYNJX_&LWJJRJSY_¥NYM_FIINYNTSFQ_KZSIX_KWTR____ÜªSFSHNFQ_NSXYNYZYNTSX__¥MNHM_OTNSJI_YMJ______(WJINY_&LWJJRJSY_ZSIJW_SJ¥_YWFSHMJX__ allowing CEMEX to increase the then average life of its syndicated bank debt to approximately 4 years as of such date. On November 30, 2016, CEMEX prepaid US$373 ($7,729) corresponding to the September 2017 amortization under the 2014 Credit Agreement and agreed with the lenders to exchange current funded commitments for US$664 maturing in 2018 into the revolving facility, maintaining their original amortization schedule and the same terms and conditions. &X_TK_)JHJRGJW___________YTYFQ_HTRRNYRJSYX_ZSIJW_YMJ______(WJINY_&LWJJRJSY_NSHQZIJI_:8______ ________FSI_Ó____ :8____TW__________TZY_ TK_¥MNHM_FGTZY_:8______ ________¥JWJ_NS_F_WJ[TQ[NSL_HWJINY_KFHNQNY^__(TSXNIJWNSL_FQQ_HTRRNYRJSYX__YMJ_FRTWYN_FYNTS_UWTÜªQJ_¥FX_TK_:8____NS_ 2018, US$883 in 2019 and US$1,096 in 2020. All tranches under the 2017 Credit Agreement have substantially the same terms, including an applicable margin over LIBOR or EURIBOR, as FUUQNHFGQJ__TK_GJY¥JJS_____YT_____GFXNX_UTNSYX__IJUJSINSL_TS_YMJ_QJ[JWFLJ_WFYNT_ FX_IJÜªSJI_GJQT¥__TK_(*2*=__FX_KTQQT¥X_ Consolidated leverage ratio Applicable margin > = 5.50x 350 bps < 5.00x > 4.50x 300 bps < 4.50x > 4.00x 250 bps < 4.00x > 3.50x 212.5 bps < 3.50x > 3.00x 175 bps < 3.00x > 2.50x 150 bps < 2.50x 125 bps 9MJ______(WJINY_&LWJJRJSY_FQXT_RTINÜªJI_YMJ_HTSXTQNIFYJI_QJ[JWFLJ_WFYNT_FSI_HTSXTQNIFYJI_HT[JWFLJ_WFYNT_QNRNYX_FX_IJXHWNGJI_GJQT¥_NS_YMJ_ÜªSFSHNFQ_ covenants section. For the years ended December 31, 2017 and 2016, under both the 2017 Credit Agreement and the 2014 Credit Agreement, CEMEX was required to comply with the following thresholds: (a) the aggregate amount allowed for capital expenditures cannot exceed US$1,000 per year excluding certain capital expenditures, and, joint venture investments and acquisitions by CHP and its subsidiaries and CLH and its subsidiaries, which capital expenditures, joint venture investments and acquisitions at any time then incurred are subject to a separate aggregate limit for each of CHP and CLH of US$500 (or its equivalent); and (b) the amounts allowed for permitted acquisitions and investments in joint ventures cannot exceed :8____UJW_^JFW__3TSJYMJQJXX__XZHM_QNRNYFYNTSX_IT_STY_FUUQ^_NK_HFUNYFQ_J]UJSINYZWJX_TW_FHVZNXNYNTSX_IT_STY_J]HJJI_KWJJ_HFXM_Ü«T¥_LJSJWFYNTS__FWJ_ funded with equity or asset disposals proceeds. The debt under the 2017 Credit Agreement and previously under the 2014 Credit Agreement is guaranteed by CEMEX México, S.A. de C.V., CEMEX Concretos, S.A. de C.V., Empresas Tolteca de México, S.A. de C.V., New Sunward Holding B.V., CEMEX España, S.A., CEMEX Asia, B.V., CEMEX Corp., CEMEX Egyptian Investments, B.V., CEMEX Finance LLC, CEMEX France Gestion, (S.A.S.), CEMEX Research Group AG and CEMEX UK. In addition, the debt under such agreements (together with all other senior capital markets debt issued or guaranteed by CEMEX, and certain other precedent KFHNQNYNJX__NX_FQXT_XJHZWJI_G^_F_ÜªWXY_UWNTWNY^_XJHZWNY^_NSYJWJXY_NS__ F__XZGXYFSYNFQQ^_FQQ_YMJ_XMFWJX_TK_(*2*=_2à¤]NHT__8_&__IJ_(_;___(*2*=_4UJWFHNTSJX_ 2à¤]NHT__8_&__IJ_(_;__3J¥_8ZS¥FWI_-TQINSL_’_;___(*2*=_9WFIJRFWPX_-TQINSL_1YI__FSI_(*2*=_*XUFà¤”F__8_&__ YMJ_Ñ¦(TQQFYJWFQÑ§_ _FSI_ G__FQQ_UWTHJJIX_TK_ such Collateral. CEMEX Egyptian Investments II, B.V. and CEMEX Shipping, B.V. originally guaranteed the 2014 Credit Agreement but were merged into CEMEX España, S.A. in October 2016. 134 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information In addition to the restrictions mentioned above, and subject in each case to the permitted negotiated amounts and other exceptions, CEMEX is also subject to a number of negative covenants that, among other things, restrict or limit its ability to: (i) create liens; (ii) incur additional debt; (iii) change (*2*=Ñ£X_GZXNSJXX_TW_YMJ_GZXNSJXX_TK_FS^_TGQNLTW_TW_RFYJWNFQ_XZGXNINFW^_ NS_JFHM_HFXJ__FX_IJÜªSJI_NS_YMJ______(WJINY_&LWJJRJSY_ _ N[__JSYJW_NSYT_ mergers; (v) enter into agreements that restrict its subsidiaries’ ability to pay dividends or repay intercompany debt; (vi) acquire assets; (vii) enter into or invest in joint venture agreements; (viii) dispose of certain assets; (ix) grant additional guarantees or indemnities; (x) declare or pay cash dividends or make share redemptions while the Leverage Ratio remains above 4.0 times; and (xi) enter into speculative derivatives transactions. 9MJ______(WJINY_&LWJJRJSY_HTSYFNSX_F_SZRGJW_TK_FKÜªWRFYN[J_HT[JSFSYX_YMFY__FRTSL_TYMJW_YMNSLX__WJVZNWJ_(*2*=_YT_UWT[NIJ_UJWNTINH_ÜªSFSHNFQ_ information to its lenders. However, a number of those covenants and restrictions will automatically cease to apply or become less restrictive if (*2*=_XT_JQJHYX_¥MJS__ N__(*2*=Ñ£X_1J[JWFLJ_7FYNT_ FX_IJÜªSJI_MJWJNSFKYJW__KTW_YMJ_Y¥T_RTXY_WJHJSYQ^_HTRUQJYJI_VZFWYJWQ^_YJXYNSL_UJWNTIX_NX_QJXX_ than or equal to 3.75 times; and (ii) no default under the 2017 Credit Agreement is continuing. At that point the Leverage Ratio must not exceed _____YNRJX__7JXYWNHYNTSX_YMFY_¥NQQ_HJFXJ_YT_FUUQ^_¥MJS_(*2*=_XFYNXÜªJX_XZHM_HTSINYNTSX_NSHQZIJ_YMJ_HFUNYFQ_J]UJSINYZWJ_QNRNYFYNTSX_RJSYNTSJI_ above and several negative covenants, including limitations on CEMEX’s ability to declare or pay cash dividends and distributions to shareholders, QNRNYFYNTSX_TS_(*2*=Ñ£X_FGNQNY^_YT_WJUF^_J]NXYNSL_ÜªSFSHNFQ_NSIJGYJISJXX__HJWYFNS_FXXJY_XFQJ_WJXYWNHYNTSX__FSI_WJXYWNHYNTSX_TS_J]JWHNXNSL_HFQQ_TUYNTSX_NS_ relation to any perpetual bonds CEMEX issues. At such time, several baskets and caps relating to negative covenants will also increase, including UJWRNYYJI_ÜªSFSHNFQ_NSIJGYJISJXX__UJWRNYYJI_LZFWFSYJJX_FSI_QNRNYFYNTSX_TS_QNJSX__-T¥J[JW__(*2*=_HFSSTY_FXXZWJ_YMFY_NY_¥NQQ_GJ_FGQJ_YT_RJJY_YMJ_ HTSINYNTSX_KTW_YMJXJ_WJXYWNHYNTSX_YT_HJFXJ_YT_FUUQ^_UWNTW_YT_YMJ_ÜªSFQ_RFYZWNY^_IFYJ_ZSIJW_YMJ______(WJINY_&LWJJRJSY_ In addition, the 2017 Credit Agreement, and previously the 2014 Credit Agreement, contains events of default, some of which may occur and are outside of CEMEX’s control such as expropriation, sequestration and availability of foreign exchange. As of December 31, 2017 and 2016, CEMEX was not aware of any event of default. CEMEX cannot assure that in the future it will be able to comply with the restrictive covenants and limitations contained in the 2017 Credit Agreement. CEMEX’s failure to comply with such covenants and limitations could result in an event of IJKFZQY__¥MNHM_HTZQI_RFYJWNFQQ^_FSI_FI[JWXJQ^_FKKJHY_(*2*=Ñ£X_GZXNSJXX_FSI_ÜªSFSHNFQ_HTSINYNTS_ Financial Covenants 9MJ______(WJINY_&LWJJRJSY_FSI_UWJ[NTZXQ^_YMJ______(WJINY_&LWJJRJSY_WJVZNWJX_(*2*=_YMJ_HTRUQNFSHJ_¥NYM_ÜªSFSHNFQ_WFYNTX__¥MNHM_RFNSQ^_NSHQZIJ__ F__YMJ_HTSXTQNIFYJI_WFYNT_TK_IJGY_YT_4UJWFYNSL_*’.9)&_ YMJ_Ñ¦1J[JWFLJ_7FYNTÑ§_ _FSI_G__YMJ_HTSXTQNIFYJI_WFYNT_TK_4UJWFYNSL_*’.9)&_YT_NSYJWJXY_J]UJSXJ_ YMJ_Ñ¦(T[JWFLJ_7FYNTÑ§___9MJXJ_ÜªSFSHNFQ_WFYNTX_FWJ_HFQHZQFYJI_FHHTWINSL_YT_YMJ_KTWRZQFX_JXYFGQNXMJI_NS_YMJ_IJGY_HTSYWFHYX_ZXNSL_YMJ_HTSXTQNIFYJI_ amounts under IFRS. As of December 31, 2017, CEMEX must comply with a Coverage Ratio and a Leverage Ratio for each period of four consecutive ÜªXHFQ_VZFWYJWX_FX_KTQQT¥X_ Period Coverage ratio Period Leverage ratio For the period ending on December 31, 2017 up to and For the period ending on December 31, 2017 up to and including the period ending on March 31, 2020 > = 2.50 including the period ending on March 31, 2018 < = 5.25 For the period ending on June 30, 2018 up to and including the period ending on September 30, 2018 < = 5.00 For the period ending on June 30, 2020 and each For the period ending on December 31, 2018 up to and subsequent reference period > = 2.75 including the period ending on March 31, 2019 < = 4.75 For the period ending on June 30, 2019 up to and including the period ending on March 31, 2020 < = 4.50 For the period ending on June 30, 2020 and each subsequent reference period < = 4.25 135 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information CEMEX’s ability to comply with these ratios may be affected by economic conditions and volatility in foreign exchange rates, as well as by overall HTSINYNTSX_NS_YMJ_ÜªSFSHNFQ_FSI_HFUNYFQ_RFWPJYX__+TW_YMJ_HTRUQNFSHJ_UJWNTIX_JSIJI_FX_TK_)JHJRGJW________________FSI_______YFPNSL_NSYT_FHHTZSY_ YMJ______(WJINY_&LWJJRJSY_FSI_YMJ______(WJINY_&LWJJRJSY__FX_FUUQNHFGQJ__(*2*=_¥FX_NS_HTRUQNFSHJ_¥NYM_YMJ_ÜªSFSHNFQ_HT[JSFSYX_NRUTXJI_G^_NYX_ IJGY_HTSYWFHYX__9MJ_RFNS_HTSXTQNIFYJI_ÜªSFSHNFQ_WFYNTX_FX_TK_)JHJRGJW________________FSI______¥JWJ_FX_KTQQT¥X_ _ (TSXTQNIFYJI_ÜªSFSHNFQ_WFYNTX 2017 2016 2015 Leverage ratio 1, 2 Limit < = 5.25 < = 6.00 < = 6.00 Calculation 3.85 4.22 5.21 Coverage ratio 3 Limit > = 2.50 > = 1.85 > = 1.85 Calculation 3.46 3.18 2.61 1 9MJ_QJ[JWFLJ_WFYNT_NX_HFQHZQFYJI_NS_UJXTX_G^_IN[NINSL_Ñ¦+ZSIJI_IJGYÑ§_G^_UWT_KTWRF_4UJWFYNSL_*’.9)&_KTW_YMJ_QFXY_Y¥JQ[J_RTSYMX_FX_TK_YMJ_HFQHZQFYNTS_IFYJ__+ZSIJI_IJGY_JVZFQX_IJGY__FX_ WJUTWYJI_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS__J]HQZINSL_ÜªSFSHJ_QJFXJX__HTRUTSJSYX_TK_QNFGNQNY^_TK_HTS[JWYNGQJ_XZGTWINSFYJI_STYJX__UQZX_UJWUJYZFQ_IJGJSYZWJX_FSI_LZFWFSYJJX__UQZX_ TW_RNSZX_YMJ_KFNW_[FQZJ_TK_IJWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSYX__FX_FUUQNHFGQJ__FRTSL_TYMJW_FIOZXYRJSYX_ 2 Pro forma Operating EBITDA represents, all calculated in pesos, Operating EBITDA for the last twelve months as of the calculation date, plus the portion of Operating EBITDA WJKJWWNSL_YT_XZHM_Y¥JQ[J_RTSYM_UJWNTI_TK_FS^_XNLSNÜªHFSY_FHVZNXNYNTS_RFIJ_NS_YMJ_UJWNTI_GJKTWJ_NYX_HTSXTQNIFYNTS_NS_(*2*=__RNSZX_4UJWFYNSL_*’.9)&_WJKJWWNSL_YT_XZHM_Y¥JQ[J_RTSYM_ UJWNTI_TK_FS^_XNLSNÜªHFSY_INXUTXFQ_YMFY_MFI_FQWJFI^_GJJS_QNVZNIFYJI_ 3_9MJ_HT[JWFLJ_WFYNT_NX_HFQHZQFYJI_NS_UJXTX_ZXNSL_YMJ_FRTZSYX_KWTR_YMJ_ÜªSFSHNFQ_XYFYJRJSYX__G^_IN[NINSL_YMJ_UWT_KTWRF_4UJWFYNSL_*’.9)&_G^_YMJ_ÜªSFSHNFQ_J]UJSXJ_KTW_YMJ_QFXY_Y¥JQ[J_ months as of the calculation date. Financial expense includes interest accrued on the perpetual debentures. (*2*=_¥NQQ_HQFXXNK^_FQQ_TK_NYX_TZYXYFSINSL_IJGY_FX_HZWWJSY_IJGY_NS_NYX_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_NK_____FX_TK_FS^_RJFXZWJRJSY_IFYJ_(*2*=_ KFNQX_YT_HTRUQ^_¥NYM_YMJ_FKTWJRJSYNTSJI_ÜªSFSHNFQ_WFYNTX _TW____YMJ_HWTXX_IJKFZQY_HQFZXJ_YMFY_NX_UFWY_TK_YMJ______(WJINY_&LWJJRJSY_NX_YWNLLJWJI_G^_ the provisions contained therein; 3) as of any date prior to a subsequent measurement date CEMEX expects not to be in compliance with such ÜªSFSHNFQ_WFYNTX_NS_YMJ_FGXJSHJ_TK__F__FRJSIRJSYX_FSI_TW_¥FN[JWX_HT[JWNSL_YMJ_SJ]Y_XZHHJJINSL____RTSYMX _G__MNLM_UWTGFGNQNY^_YMFY_YMJ_[NTQFYNTS_ ¥NQQ_GJ_HZWJI_IZWNSL_FS^_FLWJJI_ZUTS_WJRJINFYNTS_UJWNTI_FSI_GJ_XZXYFNSJI_KTW_YMJ_SJ]Y_XZHHJJINSL____RTSYMX _FSI_TW_H__F_XNLSJI_WJÜªSFSHNSL_ FLWJJRJSY_YT_WJÜªSFSHJ_YMJ_WJQJ[FSY_IJGY_TS_F_QTSL_YJWR_GFXNX__2TWJT[JW__HTSHZWWJSY_¥NYM_YMJ_FKTWJRJSYNTSJI_HQFXXNÜªHFYNTS_TK_IJGY_NS_YMJ_XMTWY_ YJWR__YMJ_STSHTRUQNFSHJ_TK_(*2*=_¥NYM_YMJ_ÜªSFSHNFQ_WFYNTX_FLWJJI_ZUTS_UZWXZFSY_YT_YMJ______(WJINY_&LWJJRJSY_TW__NS_XZHM_J[JSY__YMJ_FGXJSHJ_ of a waiver of compliance or a negotiation thereof, after certain procedures upon CEMEX’s lenders’ request, they would call for the acceleration of payments due under the 2017 Credit Agreement. That scenario will have a material adverse effect on CEMEX’s liquidity, capital resources and ÜªSFSHNFQ_UTXNYNTS_ 136 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information ______4YMJW_ÜªSFSHNFQ_TGQNLFYNTSX &X_TK_)JHJRGJW__________FSI_______TYMJW_ÜªSFSHNFQ_TGQNLFYNTSX_NS_YMJ_HTSXTQNIFYJI_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FWJ_IJYFNQJI_FX_KTQQT¥X_ 2017 2016 Short-term Long-term Total Short-term Long-term Total I. Convertible subordinated notes due 2020 $ – 9,985 9,985 $ – 10,417 10,417 II. Convertible subordinated notes due 2018 7,115 – 7,115 – 13,575 13,575 III. Mandatorily convertible securities 2019 323 371 694 278 689 967 IV. Liabilities secured with accounts receivable 11,313 – 11,313 11,095 – 11,095 V. Finance leases1,576 611 2,503 3,114 285 1,291 $ 19,362 12,859 32,221 $ 11,658 25,972 37,630 Financial instruments convertible into CEMEX’s shares contain components of liability and equity, which are recognized differently depending upon the currency in which the instrument is denominated and the functional currency of the issuer (note 2.6) . I. Optional convertible subordinated notes due 2020 During 2015, the Parent Company issued US$521 aggregate principal amount of 3.72% convertible subordinated notes due in March 2020 (the Ñ¦_____(TS[JWYNGQJ_3TYJXÑ§___9MJ______(TS[JWYNGQJ_3TYJX_¥JWJ_NXXZJI__F__:8____FX_F_WJXZQY_TK_YMJ_J]JWHNXJ_NS_2FWHM__________TK_:8____STYNTSFQ_ FRTZSY_TK_(TSYNSLJSY_(TS[JWYNGQJ_:SNYX_ Ñ¦((:XÑ§__ IJXHWNGJI_GJQT¥___FSI_G__:8____FX_F_WJXZQY_TK_YMJ_J]HMFSLJ_¥NYM_HJWYFNS_NS[JXYTWX_NS_2F^_______ which together with early conversions, resulted in settlement of US$626 aggregate principal amount of 3.25% convertible subordinated notes due NS______ YMJ_Ñ¦_____(TS[JWYNGQJ_3TYJXÑ§__MJQI_G^_XZHM_NS[JXYTWX_FSI_YMJ_NXXZFSHJ_FSI_IJQN[JW^_G^_YMJ_5FWJSY_(TRUFS^_TK_FS_JXYNRFYJI____RNQQNTS_ ADSs, which included a number of additional ADSs issued to the holders as non-cash inducement premiums. The 2020 Convertible Notes, which FWJ_XZGTWINSFYJI_YT_FQQ_TK_(*2*=Ñ£X_QNFGNQNYNJX_FSI_HTRRNYRJSYX__FWJ_HTS[JWYNGQJ_NSYT_F_Üª]JI_SZRGJW_TK_YMJ_5FWJSY_(TRUFS^Ñ£X_&)8X_FY_FS^_YNRJ_FY_ the holder’s election and are subject to antidilution adjustments. The difference at the exchange date between the fair value of the 2016 Convertible Notes and the 42 million ADSs against the fair value of the 2020 Convertible Notes represented a loss of $365 recognized in 2015 as part of Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJY_Ñ§_9MJ_FLLWJLFYJ_KFNW_[FQZJ_TK_YMJ_HTS[JWXNTS_TUYNTS_FX_TK_YMJ_NXXZFSHJ_IFYJX_¥MNHM_FRTZSYJI_YT_____¥FX_ recognized in other equity reserves. As of December 31, 2017 and 2016, the conversion price per ADS was approximately 11.01 dollars and 11.45 dollars, respectively. After antidilution adjustments, the conversion rate as of December 31, 2017 and 2016 was 90.8592 ADS and 87.3646 ADS per each 1 thousand dollars principal amount of such notes, respectively. In October 2014, in connection with US$204 remaining principal amount of 4.875% Optional Convertible Subordinated Notes due in March 2015 YMJ_Ñ¦_____(TS[JWYNGQJ_3TYJXÑ§___YMJ_5FWJSY_(TRUFS^_NXXZJI_:8____STYNTSFQ_FRTZSY_TK_((:X_FY_FS_FSSZFQ_WFYJ_TK____ _TS_YMJ_STYNTSFQ_FRTZSY__ G^_RJFSX_TK_¥MNHM__NS_J]HMFSLJ_KTW_HTZUTS_UF^RJSYX__(*2*=_XJHZWJI_YMJ_WJÜªSFSHNSL_KTW_FS^_TK_YMJ______(TS[JWYNGQJ_3TYJX_YMFY_¥TZQI_RFYZWJ_ without conversion up to US$200 of the principal amount. Pursuant to the CCUs, holders invested the US$200 in U.S. treasury bonds, and irrevocably agreed to apply such investment in March 2015, if necessary, to subscribe new convertible notes of the Parent Company for up to US$200. In March 2015, CEMEX exercised the CCUs, issued US$200 principal amount of the 2020 Convertible Notes to the holders of the CCUs and repaid the US$204 remaining principal amount of the 2015 Convertible Notes. 137 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information II. Optional convertible subordinated notes due in 2016 and 2018 On March 15, 2011, the Parent Company closed the offering of US$978 principal amount of the 2016 Convertible Notes and US$690 principal FRTZSY_TK_____ _HTS[JWYNGQJ_XZGTWINSFYJI_STYJX_IZJ_NS______ YMJ_Ñ¦_____(TS[JWYNGQJ_3TYJXÑ§___9MJ_STYJX_¥JWJ_XZGTWINSFYJI_YT_FQQ_TK_(*2*=Ñ£X_QNFGNQNYNJX_ FSI_HTRRNYRJSYX__9MJ_STYJX_FWJ_HTS[JWYNGQJ_NSYT_F_Üª]JI_SZRGJW_TK_YMJ_5FWJSY_(TRUFS^Ñ£X_&)8X_FSI_FWJ_XZGOJHY_YT_FSYNINQZYNTS_FIOZXYRJSYX__&KYJW_ the exchange of notes described in the paragraph above, the US$352 of the 2016 Convertible Notes that remained outstanding, were repaid in cash at their maturity on March 15, 2016. On June 19, 2017, the Parent Company agreed with certain institutional holders the early conversion of US$325 of the 2018 Convertible Notes in exchange for the issuance of approximately 43 million ADSs, which included the number of additional ADSs issued to the holders as non-cash inducement premiums. As a result of the early conversion, the liability component of the converted STYJX_TK_______¥FX_WJHQFXXNÜªJI_KWTR_TYMJW_ÜªSFSHNFQ_TGQNLFYNTSX_YT_TYMJW_JVZNY^_WJXJW[JX__.S_FIINYNTS__YMJ_5FWJSY_(TRUFS^_NSHWJFXJI_HTRRTS_ stock for $4 and additional paid-in capital for $7,059 against other equity reserves, and recognized expense for the inducement premiums paid NS_XMFWJX_TK______WJHTLSN_JI_¥NYMNS_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJWX_NYJRX__SJY_Ñ§_NS_YMJ_NSHTRJ_XYFYJRJSY_KTW_______&X_TK_)JHJRGJW__________FSI_ 2016, the conversion price per ADS of the notes then outstanding was approximately 8.57 dollars and 8.92 dollars, respectively. After antidilution adjustments, the conversion rate as of December 31, 2017 and 2016 was 116.6193 ADS and 112.1339 ADS, respectively, per each 1 thousand dollars principal amount of such notes. Concurrent with the offering of the 2016 and 2018 Convertible Notes, a portion of the net proceeds from this transaction were used by CEMEX to fund the purchase of capped call options, which when purchased were generally expected to reduce the potential dilution cost to CEMEX upon the potential conversion of such notes (note 16.4) . III. Mandatorily convertible securities due in 2019 In December 2009, the Parent Company exchanged debt into US$315 principal amount of 10% mandatorily convertible securities in pesos with RFYZWNY^_NS______ YMJ_Ñ¦_____2FSIFYTWNQ^_(TS[JWYNGQJ_8JHZWNYNJXÑ§___7JÜ«JHYNSL_FSYNINQZYNTS_FIOZXYRJSYX__YMJ_STYJX_¥NQQ_GJ_HTS[JWYJI_FY_RFYZWNY^_TW_ earlier if the price of the CPO reaches $26.22 into approximately 236 million CPOs at a conversion price of $17.48 per CPO. Holders have an option to voluntarily convert their securities on any interest payment date into CPOs. The conversion option embedded in these securities is treated as a stand-alone derivative liability at fair value through the statement of operations (note 16.4) . IV. Liabilities secured with accounts receivable As mentioned in note 9, as of December 31, 2017 and 2016, in connection with trade receivables sold under CEMEX’s outstanding programs, the KZSIJI_FRTZSYX_TK_XZHM_WJHJN[FGQJX_XTQI_FWJ_WJHTLSN_JI_NS_Ñ¦4YMJW_ÜªSFSHNFQ_TGQNLFYNTSXÑ§_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_ V. Finance leases (*2*=_MFX_XJ[JWFQ_TUJWFYNSL_FSI_FIRNSNXYWFYN[J_FXXJYX__NSHQZINSL_GZNQINSLX_FSI_RTGNQJ_JVZNURJSY__ZSIJW_ÜªSFSHJ_QJFXJ_HTSYWFHYX__+ZYZWJ_UF^RJSYX_ associated with these contracts are presented in note 23.5. 138 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information ______+FNW_[FQZJ_TK_ÜªSFSHNFQ_NSXYWZRJSYX Financial assets and liabilities The carrying amounts of cash, trade accounts receivable, other accounts receivable, trade accounts payable, other accounts payable and accrued expenses, as well as short-term debt, approximate their corresponding estimated fair values due to the short-term maturity and revolving nature TK_YMJXJ_ÜªSFSHNFQ_FXXJYX_FSI_QNFGNQNYNJX__(FXM_JVZN[FQJSYX_FSI_HJWYFNS_QTSL_YJWR_NS[JXYRJSYX_FWJ_WJHTLSN_JI_FY_KFNW_[FQZJ__HTSXNIJWNSL_YT_YMJ_J]YJSY_ available, quoted market prices for the same or similar instruments. The estimated fair value of CEMEX´s long-term debt is level 2, and is either based on estimated market prices for such or similar instruments, considering interest rates currently available for CEMEX to negotiate debt ¥NYM_YMJ_XFRJ_RFYZWNYNJX__TW_IJYJWRNSJI_G^_INXHTZSYNSL_KZYZWJ_HFXM_Ü«T¥X_ZXNSL_RFWPJY_GFXJI_NSYJWJXY_WFYJX_HZWWJSYQ^_F[FNQFGQJ_YT_(*2*=__&X_TK_ )JHJRGJW__________FSI_______YMJ_HFWW^NSL_FRTZSYX_TK_ÜªSFSHNFQ_FXXJYX_FSI_QNFGNQNYNJX_FSI_YMJNW_WJXUJHYN[J_KFNW_[FQZJX_¥JWJ_FX_KTQQT¥X_ 2017 2016 Carrying amount Fair value Carrying amount Fair value Financial assets Derivative instruments (notes 13.2 and 16.4) $ 794 794 $ 1,900 1,900 Other investments and non-current accounts receivable (note 13.2) 5,220 4,964 4,964 5,220 $ 5,758 5,758 $ 7,120 7,120 Financial liabilities Long-term debt (note 16.1) $ 177,022 184,220 $ 235,016 241,968 4YMJW_ÜªSFSHNFQ_TGQNLFYNTSX_ STYJ_______ _ _______ _______ _ _______ ______ Derivative instruments (notes 16.4 818 and 17) 402 402 818 $ 190,283 198,003 $ 261,806 270,205 Fair Value Hierarchy &X_TK_)JHJRGJW__________FSI_______FXXJYX_FSI_QNFGNQNYNJX_HFWWNJI_FY_KFNW_[FQZJ_NS_YMJ_HTSXTQNIFYJI_XYFYJRJSYX_TK_ÜªSFSHNFQ_UTXNYNTS_FWJ_NSHQZIJI_NS_ the following fair value hierarchy categories: 2017 Level 1 Level 2 Level 3 Total Assets measured at fair value Derivative instruments (notes 13.2 and 16.4) $ – 794 – 794 Investments available-for-sale (note 13.2) 275 – – 275 Investments held for trading (note 13.2) 77 – 77 – $ 275 871 – 1,146 Liabilities measured at fair value Derivative instruments (notes 16.4 and 17) $ – 402 – 402 139 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 2016 Level 1 Level 2 Level 3 Total Assets measured at fair value Derivative instruments (notes 13.2 and 16.4) $ – 1,900 – 1,900 Investments available-for-sale (note 13.2) 491 – – 491 Investments held for trading (note 13.2) 157 – 157 – $ 491 2,057 – 2,548 Liabilities measured at fair value Derivative instruments (notes 16.4 and 17) $ – 818 – 818 ______)JWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSYX During the reported periods, in compliance with the guidelines established by its Risk Management Committee, the restrictions set forth by its debt agreements and its hedging strategy (note 16.5), CEMEX held derivative instruments, with the objectives of, as the case may be of: a) changing the WNXP_UWTÜªQJ_TW_Üª]JI_YMJ_UWNHJ_TK_KZJQX_FSI_JQJHYWNH_JSJWL^ _G__KTWJNLS_J]HMFSLJ_MJILNSL _H__MJILJ_TK_KTWJHFXYJI_YWFSXFHYNTSX _FSI_I__TYMJW_HTWUTWFYJ_ purposes. As of December 31, 2017 and 2016, the notional amounts and fair values of CEMEX’s derivative instruments were as follows: 2017 2016 Notional Fair Notional Fair (U.S. dollars millions) amount value amount value I. Net investment hedge US$ 1,160 47 – –II. Foreign exchange forwards related to forecasted transactions 381 3 80 –III. Equity forwards on third party shares 168 7 – –IV. Interest rate swaps 137 16 147 23 V. Fuels price hedging 72 20 77 15 VI. 2019 Mandatorily Convertible Securities and options on the Parent Company’s own shares26 – (20) 576 US$ 1,918 73 880 64 9MJ_KFNW_[FQZJX_IJYJWRNSJI_G^_(*2*=_KTW_NYX_IJWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSYX_FWJ_1J[JQ____9MJWJ_NX_ST_INWJHY_RJFXZWJ_KTW_YMJ_WNXP_TK_(*2*=_TW_ its counterparties in connection with the derivative instruments. Therefore, the risk factors applied for CEMEX’s assets and liabilities originated by the valuation of such derivatives were extrapolated from publicly available risk discounts for other public debt instruments of CEMEX and its counterparties. 9MJ_HFUYNTS_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_NSHQZIJX_LFNSX_FSI_QTXXJX_WJQFYJI_YT_YMJ_WJHTLSNYNTS_TK_HMFSLJX_NS_KFNW_[FQZJX_TK_YMJ_IJWN[FYN[J_ instruments during the applicable period and that represented net gains of US$9 ($161) in 2017, net gains of US$17 ($317) in 2016 and net losses of US$173 ($2,981) in 2015, respectively. 9MJ_JXYNRFYJI_KFNW_[FQZJ_TK_IJWN[FYN[J_NSXYWZRJSYX_Ü«ZHYZFYJX_T[JW_YNRJ_FSI_NX_IJYJWRNSJI_G^_RJFXZWNSL_YMJ_JKKJHY_TK_KZYZWJ_WJQJ[FSY_JHTSTRNH_ variables according to the yield curves shown in the market as of the reporting date. These values should be analyzed in relation to the fair values TK_YMJ_ZSIJWQ^NSL_YWFSXFHYNTSX_FSI_FX_UFWY_TK_(*2*=Ñ£X_T[JWFQQ_J]UTXZWJ_FYYWNGZYFGQJ_YT_Ü«ZHYZFYNTSX_NS_NSYJWJXY_WFYJX_FSI_KTWJNLS_J]HMFSLJ_WFYJX__ The notional amounts of derivative instruments do not represent amounts of cash exchanged by the parties, and consequently, there is no direct measure of CEMEX’s exposure to the use of these derivatives. The amounts exchanged are determined based on the basis of the notional amounts and other terms included in the derivative instruments. 140 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information I. Net investment hedge During March 2017, CEMEX began the implementation of a long-term US$ / MXP foreign exchange forward program which notional amount is planned to be up to US$1,250, with monthly revolving settlement dates from 1 to 24 months. The average life of these contracts will be approximately one year. As of December 31, 2017, there are forward contract with a notional amount of US$1,160. For accounting purposes under IFRS, CEMEX has designated this program as a hedge of CEMEX’s net investment in Mexican pesos, pursuant to which changes in fair market value of these instruments are recognized as part of other comprehensive income in equity. For the year ended December 31, 2017, these contracts generated gains of US$6 ($110). II. Foreign exchange forwards related to forecasted transactions As of December 31, 2017, CEMEX held US$ / Euro foreign exchange forward contracts maturing in January 10, 2018, negotiated to maintain the Euro value of a portion of the 2024 December Notes issued in Euros during December 2017, after converting a portion of these proceeds in U.S. ITQQFW_YT_XJYYQJ_TYMJW_NSIJGYJISJXX_NS_ITQQFWX_NS_)JHJRGJW_______GZY_FX_YMJ_ÜªSFQ_ZXJ_TK_YMJXJ_UWTHJJIX_¥FX_UWTOJHYJI_YT_GJ_YMJ_XJYYQJRJSY_TK_TYMJW_ indebtedness in Euros during 2018 (note 16.1) . In addition, as of December 31, 2016, CEMEX held US$ / MXP foreign exchange forward contracts maturing in February 2017, negotiated to hedge the U.S. dollar value of the proceeds from the expected sale of pumping assets in Mexico (note 4.3) . For the years ended December 31, 2017, 2016 and 2015, the results of these instruments related to forecasted transactions, including the effects resulting from positions entered and settled during the year, generated losses of US$17 ($337) in 2017, gains of US$10 ($186) in 2016 and LFNSX_TK_:8___ _____NS_______WJHTLSN_JI_¥NYMNS_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_NS_YMJ_NSHTRJ_XYFYJRJSY_ III. Equity forwards on third party shares &X_TK_)JHJRGJW___________NS_HTSSJHYNTS_¥NYM_YMJ_IJÜªSNYN[J_XFQJ_TK_(*2*=Ñ£X_WJRFNSNSL_,((_XMFWJX_NS_8JUYJRGJW______YT_Y¥T_ÜªSFSHNFQ_NSXYNYZYNTSX_ which hold all corporate rights and control the aforementioned shares (note 13.1), CEMEX negotiated equity forward contracts to be settled in cash maturing in March 2019 over the price of approximately 31.4 million GCC shares. During 2017, changes in the fair value of these instruments LJSJWFYJI_QTXXJX_TK_:8___ _____WJHTLSN_JI_¥NYMNS_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_NS_YMJ_NSHTRJ_XYFYJRJSY_ In October 2015, Axtel, a Mexican telecommunications company traded in the MSE, announced its merger with Alestra, a Mexican entity provider of information technology solutions and member of Alfa Group, which was effective beginning February 15, 2016. In connection with this announcement, considering that upon completion of the merger any shares of Axtel would be exchanged proportionately according to the new ownership interests for shares in the new merged entity that remained public, the business outlook of such new entity and that CEMEX held an existing investment in Axtel prior to the merger, on January 6, 2016, CEMEX settled in cash a forward contract it maintained over the price of 59.5 million CPOs of Axtel maturing in October 2016 and received US$4, net of transaction costs. In a separate transaction, CEMEX purchased in the market 59.5 million CPOs of Axtel and increased its existing investment in Axtel as part of CEMEX’s investments available for sale (note 13.2) . Changes in the fair value of this instrument generated losses of US$2 ($30) in 2016 and gains of US$15 ($258) in 2015, recognized in the income statement for each period. IV. Interest rate swap contracts As of December 31, 2017 and 2016, CEMEX had an interest rate swap maturing in September 2022 associated with an agreement entered into by CEMEX for the acquisition of electric energy in Mexico, which fair value represented assets of US$16 ($314) and US$23 ($477), respectively. 5ZWXZFSY_YT_YMNX_NSXYWZRJSY__IZWNSL_YMJ_YJSZWJ_TK_YMJ_X¥FU_FSI_GFXJI_TS_NYX_STYNTSFQ_FRTZSY__(*2*=_¥NQQ_WJHJN[J_F_Üª]JI_WFYJ_TK____ _FSI_¥NQQ_UF^_ LIBOR. Changes in the fair value of this interest rate swap generated losses of US$6 ($114) in 2017, US$6 ($112) in 2016 and US$4 ($69) in 2015, recognized in the income statement for each period. 141 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information V. Fuel price hedging As of December 31, 2017 and 2016, CEMEX maintained forward contracts negotiated to hedge the price of diesel fuel in several countries for aggregate notional amounts of US$46 ($904) and US$44 ($912), respectively, with an estimated aggregate fair value representing assets of :8___ _____NS______FSI_FXXJYX_TK_:8__ _____NS_______’^_RJFSX_TK_YMJXJ_HTSYWFHYX__KTW_T¥S_HTSXZRUYNTS_TSQ^__(*2*=_Üª]JI_YMJ_UWNHJ_TK_INJXJQ_ over certain volume representing a portion of the estimated consumption of such fuel in several operations. These contracts have been designated FX_HFXM_Ü«T¥_MJILJX_TK_INJXJQ_KZJQ_HTSXZRUYNTS__FSI_FX_XZHM__HMFSLJX_NS_KFNW_[FQZJ_FWJ_WJHTLSN_JI_YJRUTWFWNQ^_YMWTZLM_TYMJW_HTRUWJMJSXN[J_ income and are recycled to operating expenses as the related diesel volumes are consumed. For the years 2017, 2016 and 2015, changes in fair value of these contracts recognized in other comprehensive income represented gains of US$3 ($57), gains of US$7 ($145) and losses of US$3 ($52), respectively. In addition, as of December 31, 2017 and 2016, CEMEX held forward contracts negotiated to hedge the price of coal, as solid fuel, for an aggregate notional amount of US$26 ($511) and US$33 ($684), respectively and an estimated fair value representing assets of US$10 ($197) in 2017 and FXXJYX_TK_:8__ _____NS_______’^_RJFSX_TK_YMJXJ_HTSYWFHYX__KTW_T¥S_HTSXZRUYNTS_TSQ^__(*2*=_Üª]JI_YMJ_UWNHJ_TK_HTFQ_T[JW_HJWYFNS_[TQZRJ_ WJUWJXJSYNSL_F_UTWYNTS_TK_YMJ_JXYNRFYJI_HTFQ_HTSXZRUYNTS_NS_(*2*=Ñ£X_FUUQNHFGQJ_TUJWFYNTSX__9MJXJ_HTSYWFHYX_MF[J_GJJS_IJXNLSFYJI_FX_HFXM_Ü«T¥_ hedges of coal consumption, and as such, changes in fair value are recognized temporarily through other comprehensive income and are recycled to operating expenses as the related coal volumes are consumed. For the years 2017 and 2016, changes in fair value of these contracts recognized in other comprehensive income represented gains of US$1 ($19) and gains of US$8 ($166), respectively. VI. 2019 Mandatorily Convertible Securities and options on the Parent Company’s own shares In connection with the 2019 Mandatorily Convertible Securities (note 16.2); considering that the securities are denominated in pesos and the functional currency of the Parent Company’s division that issued the securities is the dollar (note 2.4), CEMEX separated the conversion option embedded in such instruments and recognized it at fair value through the income statement, which as of December 31, 2017 and 2016, resulted in a liability of US$20 ($393) and US$40 ($829), respectively. Changes in fair value generated a gain of US$19 ($359) in 2017, a loss of US$29 ($545) in 2016 and a gain of US$18 ($310) in 2015. In addition, on March 15, 2011, the Parent Company entered into a capped calls, considering antidilution adjustments, over 194 million CEMEX’s ADSs (114 million ADSs maturing in March 2016 in connection with the 2016 Convertible Notes and 80 million ADSs maturing in March 2018 in connection with the 2018 Convertible Notes) in order to effectively increase the conversion price of the ADSs under such notes, by means of which, at maturity of the notes, originally CEMEX would receive in cash the excess between the market price and the strike price of approximately 8.57 dollars per ADS, with a maximum appreciation per ADS of approximately 3.96 dollars for the 2016 Convertible Notes and 5.27 dollars for the 2018 Convertible Notes. CEMEX paid aggregate premiums of US$222. During 2015, CEMEX amended a portion of the capped calls relating to the 2016 Convertible Notes and, as a result, CEMEX received US$44 in cash, equivalent to the unwind of 44.2% of the total notional amount of such capped calls. On March 15, 2016, the remaining options for the 55.8% of the 2016 Convertible Notes expired out of the money. During August 2016, CEMEX amended 58.3% of the total notional amount of the capped calls relating to the 2018 Convertible Notes to lower the exercise price in exchange for reducing the number of underlying options, as a result, CEMEX retained capped calls relating to the 2018 Convertible Notes over 71 million ADSs. As of December 31, 2016, the fair value of the existing options represented an asset of US$66 ($1,368). Changes in the fair value of these instruments generated gains of US$37 ($725) in 2017, gains of US$44 ($818) in 2016 and losses of US$228 ($3,928) in 2015, recognized within Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJYÑ§_NS_YMJ_NSHTRJ_XYFYJRJSY__)ZWNSL_______(*2*=_ZS¥TZSI_FQQ_NYX_HFUUJI_HFQQX_WJQFYNSL_YT_YMJ______(TS[JWYNGQJ_ Notes and, as a result, CEMEX received US$103 in cash. As of December 31, 2017, all outstanding capped calls based on the price of the Parent Company´s own ADSs have been early settled. 142 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 16.5) Risk management Enterprise risks may arise from any of the following situations: i) the potential change in the value of assets owned or reasonably anticipated to be owned, ii) the potential change in value of liabilities incurred or reasonably anticipated to be incurred, iii) the potential change in value of services provided, purchase or reasonably anticipated to be provided or purchased in the ordinary course of business, iv) the potential change in the value of assets, services, inputs, product or commodities owned, produced, manufactured, processed, merchandised, leased or sell or reasonably anticipated to be owned, produced, manufactured, processed, merchandising, leasing or selling in the ordinary course of business, or v) any potential change in the value arising from interest rate or foreign exchange rate exposures arising from current or anticipated assets or liabilities. .S_YMJ_TWINSFW^_HTZWXJ_TK_GZXNSJXX__(*2*=_NX_J]UTXJI_YT_HTRRTINYNJX_WNXP__NSHQZINSL_YMJ_J]UTXZWJ_KWTR_NSUZYX_XZHM_FX_KZJQ__HTFQ__UJYHTPJ__Ü«^_FXM__ gypsum and other industrial materials which are commonly used by CEMEX in the production process, and expose CEMEX to variations in prices of the underlying commodities. To manage this and other risks, such as credit risk, interest rate risk, foreign exchange risk, equity risk and liquidity risk, considering the guidelines set forth by the Board of Directors, which represent CEMEX’s risk management framework and that are supervised G^_XJ[JWFQ_(TRRNYYJJX__(*2*=Ñ£X_RFSFLJRJSY_JXYFGQNXMJX_XUJHNÜªH_UTQNHNJX_YMFY_IJYJWRNSJ_XYWFYJLNJX_TWNJSYJI_YT_TGYFNS_SFYZWFQ_MJILJX_YT_YMJ_ extent possible, such as avoiding customer concentration on a determined market or aligning the currencies portfolio in which CEMEX incurred its IJGY__¥NYM_YMTXJ_NS_¥MNHM_(*2*=_LJSJWFYJX_NYX_HFXM_Ü«T¥X_ &X_TK_)JHJRGJW__________FSI_______YMJXJ_XYWFYJLNJX_FWJ_XTRJYNRJX_HTRUQJRJSYJI_¥NYM_YMJ_ZXJ_TK_IJWN[FYN[J_ÜªSFSHNFQ_NSXYWZRJSYX_FX_RJSYNTSJI_ NS_STYJ_______XZHM_FX_YMJ_HTRRTINY^_KTW¥FWI_HTSYWFHYX_TS_INJXJQ_KZJQ_FSI_HTFQ_SJLTYNFYJI_YT_Üª]_YMJ_UWNHJ_TK_YMJXJ_ZSIJWQ^NSL_HTRRTINYNJX_ The main risks categories are commented below: Credit risk (WJINY_WNXP_NX_YMJ_WNXP_TK_ÜªSFSHNFQ_QTXX_KFHJI_G^_(*2*=_NK_F_HZXYTRJW_TW_HTZSYJWUFWY_TK_F_ÜªSFSHNFQ_NSXYWZRJSY_ITJX_STY_RJJY_NYX_HTSYWFHYZFQ_ obligations and originates mainly from trade accounts receivable. As of December 31, 2017 and 2016, the maximum exposure to credit risk is WJUWJXJSYJI_G^_YMJ_GFQFSHJ_TK_ÜªSFSHNFQ_FXXJYX__2FSFLJRJSY_MFX_IJ[JQTUJI_UTQNHNJX_KTW_YMJ_FZYMTWN_FYNTS_TK_HWJINY_YT_HZXYTRJWX__9MJ_FHHTZSYNSL_ exposure to credit risk is monitored constantly according to the behavior of payment of the debtors. Credit is assigned on a customer-by-customer basis and is subject to assessments which consider the customers’ payment capacity, as well as past behavior regarding due dates, balances UFXY_IZJ_FSI_IJQNSVZJSY_FHHTZSYX__.S_HFXJX_IJJRJI_SJHJXXFW^__(*2*=Ñ£X_RFSFLJRJSY_WJVZNWJX_LZFWFSYJJX_KWTR_NYX_HZXYTRJWX_FSI_ÜªSFSHNFQ_ HTZSYJWUFWYNJX_¥NYM_WJLFWI_YT_ÜªSFSHNFQ_FXXJYX_ The Company’s management has established a policy of low risk which analyzes the creditworthiness of each new client individually before offering the general conditions of payment terms and delivery. The review includes external ratings, when references are available, and in some cases bank references. Threshold of purchase limits are established for each client, which represent the maximum purchase amounts that require different levels of approval. Customers that do not meet the levels of solvency requirements imposed by CEMEX can only carry out transactions by paying cash in advance. As of December 31, 2017, considering CEMEX’s best estimate of potential incurred losses based on an analysis of age and considering recovery efforts, the allowance for doubtful accounts was $2,145. 143 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Interest rate risk .SYJWJXY_WFYJ_WNXP_NX_YMJ_WNXP_YMFY_YMJ_KFNW_[FQZJ_TW_KZYZWJ_HFXM_Ü«T¥X_TK_F_ÜªSFSHNFQ_NSXYWZRJSY_¥NQQ_Ü«ZHYZFYJ_GJHFZXJ_TK_HMFSLJX_NS_RFWPJY_NSYJWJXY_ WFYJX__¥MNHM_TSQ^_FKKJHYX_(*2*=Ñ£X_WJXZQYX_NK_YMJ_Üª]JI_WFYJ_QTSL_YJWR_IJGY_NX_RJFXZWJI_FY_KFNW_[FQZJ__&QQ_TK_(*2*=Ñ£X_Üª]JI_WFYJ_QTSL_YJWR_IJGY_NX_ carried at amortized cost and therefore is not subject to interest rate risk. CEMEX’s accounting exposure to the risk of changes in market interest WFYJX_WJQFYJX_UWNRFWNQ^_YT_NYX_QTSL_YJWR_IJGY_TGQNLFYNTSX_¥NYM_Ü«TFYNSL_NSYJWJXY_WFYJX__¥MNHM__NK_XZHM_WFYJX_¥JWJ_YT_NSHWJFXJ__RF^_FI[JWXJQ^_FKKJHY_NYX_ ÜªSFSHNSL_HTXY_FSI_YMJ_WJXZQYX_KTW_YMJ_UJWNTI_ 3TSJYMJQJXX__NY_NX_STY_JHTSTRNHFQQ^_JKÜªHNJSY_YT_HTSHJSYWFYJ_NS_Üª]JI_WFYJX_NS_F_MNLM_UTNSY_¥MJS_YMJ_NSYJWJXY_WFYJX_RFWPJY_J]UJHYX_F_IT¥S¥FWI_YWJSI__ YMNX_NX__YMJWJ_NX_FS_TUUTWYZSNY^_HTXY_KTW_WJRFNSNSL_QTSL_UJWNTIX_UF^NSL_F_IJYJWRNSJI_Üª]JI_NSYJWJXY_WFYJ_¥MJS_YMJ_RFWPJY_WFYJX_MF[J_IJHWJFXJI_ and the entity may obtain improved interest rate conditions in a new loan or debt issuance. CEMEX manages its interest rate risk by balancing NYX_J]UTXZWJ_YT_Üª]JI_FSI_[FWNFGQJ_WFYJX_¥MNQJ_FYYJRUYNSL_YT_WJIZHJ_NYX_NSYJWJXY_HTXYX__.S_FIINYNTS__¥MJS_YMJ_NSYJWJXY_WFYJ_TK_F_IJGY_NSXYWZRJSY_MFX_ turned relatively high as compared to current market rates, CEMEX intents to renegotiate the conditions or repurchase the debt, to the extent the SJY_UWJXJSY_[FQZJ_TK_YMJ_J]UJHYJI_KZYZWJ_GJSJÜªYX_KWTR_YMJ_NSYJWJXY_WFYJ_WJIZHYNTS_¥TZQI_J]HJJI_YMJ_NSHJSYN[JX_YMFY_¥TZQI_MF[J_YT_GJ_UFNI_NS_XZHM_ renegotiation or repurchase of debt. &X_TK_)JHJRGJW__________FSI_______FUUWT]NRFYJQ^___ _FSI___ __WJXUJHYN[JQ^__TK_(*2*=Ñ£X_QTSL_YJWR_IJGY_¥FX_IJSTRNSFYJI_NS_Ü«TFYNSL_WFYJX_FY_F_ weighted average interest rate of LIBOR plus 268 basis points in 2017 and 306 basis points in 2016. As of December 31, 2017 and 2016, if interest rates at that date had been 0.5% higher, with all other variables held constant, CEMEX’s net income for 2017 and 2016 would have reduced by US$18 ($353) and US$18 ($373), respectively, as a result of higher interest expense on variable rate denominated debt. This analysis does not include the effect of interest rate swaps held by CEMEX during 2017 and 2016. Foreign currency risk +TWJNLS_HZWWJSH^_WNXP_NX_YMJ_WNXP_YMFY_YMJ_KFNW_[FQZJ_TK_KZYZWJ_HFXM_Ü«T¥X_TK_F_ÜªSFSHNFQ_NSXYWZRJSY_¥NQQ_Ü«ZHYZFYJ_GJHFZXJ_TK_HMFSLJX_NS_KTWJNLS_ exchange rates. CEMEX’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities. Due to its geographic IN[JWXNÜªHFYNTS__(*2*=Ñ£X_WJ[JSZJX_FSI_HTXYX_FWJ_LJSJWFYJI_FSI_XJYYQJI_NS_[FWNTZX_HTZSYWNJX_FSI_NS_INKKJWJSY_HZWWJSHNJX__+TW_YMJ_^JFW_JSIJI_)JHJRGJW_ 31, 2017, approximately 21% of CEMEX’s net sales, before eliminations resulting from consolidation, were generated in Mexico, 24% in the United States, 7% in the United Kingdom, 6% in France, 4% in Germany, 2% in Spain, 2% in Poland, 3% in the Rest of Europe region, 4% in Colombia, 2% in Panama, 1% in Costa Rica, 2% Caribbean TCL, 4% in the Rest of South, Central America and the Caribbean region, 3% in Philippines, 1% in Egypt, 5% in the Rest of Asia, Middle East and Africa and 9% in CEMEX’s other operations. Foreign exchange gains and losses occur by monetary assets or liabilities in a currency different from its functional currency, and are recorded NS_YMJ_HTSXTQNIFYJI_XYFYJRJSYX_TK_TUJWFYNTSX__J]HJUY_KTW_J]HMFSLJ_Ü«ZHYZFYNTSX_FXXTHNFYJI_¥NYM_KTWJNLS_HZWWJSH^_NSIJGYJISJXX_INWJHYQ^_WJQFYJI_YT_ YMJ_FHVZNXNYNTS_TK_KTWJNLS_JSYNYNJX_FSI_J]HMFSLJ_Ü«ZHYZFYNTSX_WJQFYJI_UFWYNJXÑ£_QTSL_YJWR_GFQFSHJX_IJSTRNSFYJI_NS_KTWJNLS_HZWWJSH^_¥MNHM_FWJ_STY_ expected to be settled in the foreseeable future, which are reported in the statement of other comprehensive income. As of December 31, 2017 and 2016, excluding from the sensitivity analysis the impact of translating the net assets of foreign operations into CEMEX’s reporting currency, considering a hypothetic 10% strengthening of the dollar against the Mexican peso, with all other variables held constant, CEMEX’s net income for 2017 and 2016 would have decreased by US$119 ($2,343) and US$136 ($2,829), respectively, as a result of higher foreign exchange losses on CEMEX’s dollar-denominated net monetary liabilities held in consolidated entities with other functional currencies. Conversely, a hypothetic 10% weakening of the U.S. dollar against the Mexican peso would have the opposite effect. 144 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information &X_TK_)JHJRGJW___________FUUWT]NRFYJQ^___ _TK_(*2*=Ñ£X_ÜªSFSHNFQ_IJGY_¥FX_)TQQFW_IJSTRNSFYJI____ _¥FX_*ZWT_IJSTRNSFYJI___ _¥FX_5TZSI_ denominated, 3% was Philippine peso-denominated and immaterial amounts were denominated in other currencies; therefore, CEMEX had a KTWJNLS_HZWWJSH^_J]UTXZWJ_FWNXNSL_RFNSQ^_KWTR_YMJ_)TQQFW_IJSTRNSFYJI_FSI_*ZWT_IJSTRNSFYJI_ÜªSFSHNFQ_IJGY_[JWXZX_YMJ_XJ[JWFQ_HZWWJSHNJX_NS_ ¥MNHM_(*2*=Ñ£X_WJ[JSZJX_FWJ_XJYYQJI_NS_RTXY_HTZSYWNJX_NS_¥MNHM_NY_TUJWFYJX__9MJ_FRTZSYX_TK_5TZSI_IJSTRNSFYJI_ÜªSFSHNFQ_IJGY_FSI_5MNQNUUNSJ_ UJXT_IJSTRNSFYJI_ÜªSFSHNFQ_IJGY_TZYXYFSINSL_FX_TK_)JHJRGJW___________FWJ_HQTXJQ^_WJQFYJI_YT_YMJ_FRTZSY_TK_WJ[JSZJX_LJSJWFYJI_NS_XZHM_HZWWJSHNJX_ FSI_TW__NS_YMJ_HFXJ_TK_YMJ_*ZWT_IJSTRNSFYJI_ÜªSFSHNFQ_IJGY__YMJ_FRTZSY_TK_(*2*=Ñ£X_SJY_FXXJYX_IJSTRNSFYJI_NS_XZHM_HZWWJSHNJX _YMJWJKTWJ__(*2*=_ considers that the foreign currency risk related to these amounts of debt is low. Nonetheless, CEMEX cannot guarantee that it will generate XZKÜªHNJSY_WJ[JSZJX_NS_)TQQFWX__*ZWTX__5TZSIX_FSI_5MNQNUUNSJ_UJXTX_KWTR_NYX_TUJWFYNTSX_YT_XJW[NHJ_YMJXJ_TGQNLFYNTSX__&X_TK_)JHJRGJW__________FSI_ ______(*2*=_MFI_STY_NRUQJRJSYJI_FS^_IJWN[FYN[J_ÜªSFSHNSL_MJILNSL_XYWFYJL^_YT_FIIWJXX_YMNX_KTWJNLS_HZWWJSH^_WNXP__3TSJYMJQJXX__(*2*=_RF^_ JSYJW_NSYT_IJWN[FYN[J_ÜªSFSHNSL_MJILNSL_XYWFYJLNJX_NS_YMJ_KZYZWJ_NK_JNYMJW_TK_NYX_IJGY_UTWYKTQNT_HZWWJSH^_RN]__NSYJWJXY_WFYJ_RN]__RFWPJY_HTSINYNTSX_FSI_ or expectations changes. As of December 31, 2017 and 2016, CEMEX’s consolidated net monetary assets (liabilities) by currency are as follows: 2017 South, Central Asia, Middle America and East and Mexico United States Europe the Caribbean Africa Others 1 Total Monetary assets $ 11,798 9,453 14,182 7,347 9,780 5,163 57,723 Monetary liabilities 17,505 32,158 45,675 12,016 11,522 221,579 340,455 Net monetary assets (liabilities) 2 $ (5,707) (22,705) (31,493) (4,669) (1,742) (216,416) (282,732) Out of which: Dollars $ (1,097) (22,710) 39 (126) 221 (133,530) (157,203) Pesos (4,610) 4 24 – – (7,745) (12,327) Euros – – (10,155) 2 – (58,452) (68,605) Pounds – – (19,358) – – (9,119) (28,477) Other currencies(16,120) – 1 (2,043) (4,545) (1,963) (7,570) $ (5,707) (22,705) (31,493) (4,669) (1,742) (216,416) (282,732) 2016 South, Central Asia, Middle America and East and Mexico United States Europe the Caribbean Africa Others 1 Total Monetary assets $ 10,261 26,685 12,724 6,132 13,101 11,836 80,739 Monetary liabilities 10,564 33,145 42,336 9,130 11,305 277,117 383,597 Net monetary assets (liabilities) 2 $ (303) (6,460) (29,612) (2,998) 1,796 (265,281) (302,858) Out of which: Dollars $ (483) (6,463) 38 35 364 (214,751) (221,260) Pesos 180 3 – – – (3,395) (3,212) Euros – – (9,465) – – (48,470) (57,935) Pounds – – (14,408) – – – (14,408) Other currencies(6,043) – – (5,777) (3,033) 1,432 1,335 $ (303) (6,460) (29,612) (2,998) 1,796 (265,281) (302,858) 1_.SHQZIJX_YMJ_5FWJSY_(TRUFS^__(*2*=Ñ£X_ÜªSFSHNSL_XZGXNINFWNJX__FX_¥JQQ_FX_3JTWNX_3_;___FRTSL_TYMJW_JSYNYNJX_ 2 Includes assets held for sale and liabilities directly related with these assets considering that such items will be realized in the short-term. 145 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information .S_FIINYNTS__HTSXNIJWNSL_YMFY_YMJ_5FWJSY_(TRUFS^Ñ£X_KZSHYNTSFQ_HZWWJSH^_KTW_FQQ_FXXJYX__QNFGNQNYNJX_FSI_YWFSXFHYNTSX_FXXTHNFYJI_¥NYM_NYX_ÜªSFSHNFQ_ and holding company activities is the dollar (note 2.4), there is foreign currency risk associated with the translation of subsidiaries’ net assets denominated in different currencies (peso, euro, pound) into dollars. When the dollar appreciates, the value of CEMEX’s net assets denominated in other currencies decreases in terms of dollars, generating negative foreign currency translation and reducing stockholders’ equity. Conversely, when the dollar depreciates, the value of CEMEX’s net assets denominated in other currencies would increase in terms of dollars generating the opposite effect. As mentioned in note 16.4, CEMEX has implemented a long-term program for up to US$1,250 to hedge foreign currency translation in connection with its net assets denominated in pesos. Equity risk *VZNY^_WNXP_NX_YMJ_WNXP_YMFY_YMJ_KFNW_[FQZJ_TK_KZYZWJ_HFXM_Ü«T¥X_TK_F_ÜªSFSHNFQ_NSXYWZRJSY_¥NQQ_Ü«ZHYZFYJ_GJHFZXJ_TK_HMFSLJX_NS_YMJ_RFWPJY_UWNHJ_TK_ (*2*=Ñ£X_FSI_TW_YMNWI_UFWY^Ñ£X_XMFWJX__&X_IJXHWNGJI_NS_STYJ_______HTSXNIJWNSL_XUJHNÜªH_TGOJHYN[JX__(*2*=_MFX_JSYJWJI_NSYT_JVZNY^_KTW¥FWI_HTSYWFHYX_ on third-party shares, as well as capped calls based on the price of CEMEX’s own ADSs. Under these equity derivative instruments, there is a direct relationship from the change in the fair value of the derivative with the change in price of the underlying share. All changes in fair value of XZHM_IJWN[FYN[J_NSXYWZRJSYX_FWJ_WJHTLSN_JI_NS_YMJ_NSHTRJ_XYFYJRJSY_FX_UFWY_TK_Ñ¦+NSFSHNFQ_NSHTRJ_FSI_TYMJW_NYJRX__SJY_Ñ§_:SYNQ_)JHJRGJW___________ F_XNLSNÜªHFSY_IJHWJFXJ_NS_YMJ_RFWPJY_UWNHJ_TK_(*2*=Ñ£X_&)8X_¥TZQI_SJLFYN[JQ^_FKKJHY_(*2*=Ñ£X_QNVZNINY^_FSI_ÜªSFSHNFQ_UTXNYNTS__)ZWNSL_______FQQ_ outstanding capped calls based on the price of CEMEX´s own ADSs were early settled. As of December 31, 2017, the potential change in the fair value of CEMEX’s forward contracts in GCC shares that would result from a hypothetical, instantaneous decrease of 10% in the market price of GCC shares in dollars, with all other variables held constant, CEMEX’s net income for 2017 would have reduced in US$14 ($283), as a result of additional negative changes in fair value associated with these forward contracts. A 10% hypothetical increase in the price of GCC shares in 2017 would have generated approximately the opposite effect, respectively. In addition, even though the changes in fair value of CEMEX’s embedded conversion option in the Mandatorily Convertible Notes 2019 denominated NS_F_HZWWJSH^_TYMJW_YMFS_YMJ_KZSHYNTSFQ_NXXZJWÑ£X_HZWWJSH^_FKKJHY_YMJ_NSHTRJ_XYFYJRJSY__YMJ^_IT_STY_NRUQ^_FS^_WNXP_TW_[FWNFGNQNY^_NS_HFXM_Ü«T¥X__ HTSXNIJWNSL_YMFY_YMWTZLM_YMJNW_J]JWHNXJ__(*2*=_¥NQQ_XJYYQJ_F_Üª]JI_FRTZSY_TK_IJGY_¥NYM_F_Üª]JI_FRTZSY_TK_XMFWJX__&X_TK_)JHJRGJW__________FSI_ 2016, the potential change in the fair value of the embedded conversion options in the Mandatorily Convertible Notes 2019 that would result from a hypothetical, instantaneous increase of 10% in the market price of CEMEX’s CPOs, with all other variables held constant, would have decreased CEMEX’s net income for US$9 ($180) in 2017 and decreased for US$8 ($162) in 2016; as a result of additional negative changes in fair value associated with this option. A 10% hypothetical decrease in the CEMEX CPO price would generate approximately the opposite effect. Liquidity risk 1NVZNINY^_WNXP_NX_YMJ_WNXP_YMFY_(*2*=_¥NQQ_STY_MF[J_XZKÜªHNJSY_KZSIX_F[FNQFGQJ_YT_RJJY_NYX_TGQNLFYNTSX__.S_FIINYNTS_YT_HFXM_Ü«T¥X_UWT[NIJI_G^_NYX_TUJWFYNSL_ activities, in order to meet CEMEX’s overall liquidity needs for operations, servicing debt and funding capital expenditures and acquisitions, CEMEX WJQNJX_TS_HTXY_HZYYNSL_FSI_TUJWFYNSL_NRUWT[JRJSYX_YT_TUYNRN_J_HFUFHNY^_ZYNQN_FYNTS_FSI_RF]NRN_J_UWTÜªYFGNQNY^__FX_¥JQQ_FX_GTWWT¥NSL_ZSIJW_HWJINY_ facilities, proceeds of debt and equity offerings, and proceeds from asset sales. CEMEX is exposed to risks from changes in foreign currency J]HMFSLJ_WFYJX__UWNHJX_FSI_HZWWJSH^_HTSYWTQX__NSYJWJXY_WFYJX__NSÜ«FYNTS__LT[JWSRJSYFQ_XUJSINSL__XTHNFQ_NSXYFGNQNY^_FSI_TYMJW_UTQNYNHFQ__JHTSTRNH_FSI_ or social developments in the countries in which it operates, any one of which may materially affect CEMEX’s results and reduce cash from operations. The maturities of CEMEX’s contractual obligations are included in note 23.5. 146 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information &X_TK_)JHJRGJW___________HZWWJSY_QNFGNQNYNJX__¥MNHM_NSHQZIJI________TK_HZWWJSY_RFYZWNYNJX_TK_IJGY_FSI_TYMJW_ÜªSFSHNFQ_TGQNLFYNTSX__J]HJJI_HZWWJSY_ FXXJYX_NS_________+TW_YMJ_^JFW_JSIJI_)JHJRGJW___________(*2*=_LJSJWFYJI_SJY_HFXM_Ü«T¥X_UWT[NIJI_G^_TUJWFYNSL_FHYN[NYNJX_KWTR_HTSYNSZNSL_ TUJWFYNTSX_KTW_________FKYJW_UF^RJSYX_TK_NSYJWJXY_FSI_NSHTRJ_YF]JX__9MJ_(TRUFS^Ñ£X_RFSFLJRJSY_HTSXNIJWX_YMFY_(*2*=_¥NQQ_LJSJWFYJ_XZKÜªHNJSY_ HFXM_Ü«T¥X_KWTR_TUJWFYNTSX__.S_FIINYNTS__(*2*=_MFX_HTRRNYYJI_F[FNQFGQJ_QNSJX_TK_HWJINY_ZSIJW_NYX______(WJINY_&LWJJRJSY__¥MNHM_NSHQZIJX_YMJ_ revolving credit facility and an undrawn tranche for a combined amount of $29,711 (US$1,512), as well as CEMEX’s proven capacity to continually WJÜªSFSHJ_FSI_WJUQFHJ_NYX_XMTWY_YJWR_TGQNLFYNTSX__¥NQQ_JSFGQJ_(*2*=_YT_RJJY_FS^_QNVZNINY^_WNXP_NS_YMJ_XMTWY_YJWR_ &X_TK_)JHJRGJW__________FSI_______YMJ_UTYJSYNFQ_WJVZNWJRJSY_KTW_FIINYNTSFQ_RFWLNS_HFQQX_ZSIJW_TZW_INKKJWJSY_HTRRNYRJSYX_NX_STY_XNLSNÜªHFSY_ 17) OTHER CURRENT AND NON-CURRENT LIABILITIES As of December 31, 2017 and 2016, consolidated other current liabilities were as follows: 2017 2016 Provisions 1 $ 12,667 11,716 Interest payable 2,496 3,425 Advances from customers 3,886 3,413 Other accounts payable and accrued expenses3,976 2 5,238 $ 24,287 22,530 1_(ZWWJSY_UWT[NXNTSX_UWNRFWNQ^_HTSXNXY_TK_FHHWZJI_JRUQT^JJ_GJSJÜªYX__NSXZWFSHJ_UF^RJSYX__FHHWZFQX_KTW_QJLFQ_FXXJXXRJSYX_FSI_TYMJWX__9MJXJ_FRTZSYX_FWJ_WJ[TQ[NSL_NS_SFYZWJ_FSI_FWJ_ expected to be settled and replaced by similar amounts within the next 12 months. 2 In 2017, includes an account payable in Colombian pesos equivalent to $491 (US$25) to be settled on January 5, 2018 related to a penalty imposed by the Commerce and Industry Superintendence in Colombia in connection with a market investigation (note 24.2) . As of December 31, 2017 and 2016, consolidated other non-current liabilities were as follows: 2017 2016 Asset retirement obligations 1 $ 7,906 8,237 Accruals for legal assessments and other responsibilities 2 1,599 1,514 Non-current liabilities for valuation of derivative instruments 402 818 Environmental liabilities 3 991 1,172 Other non-current liabilities and provisions5,305 4 4,751 $ 15,649 17,046 1 Provisions for asset retirement include future estimated costs for demolition, cleaning and reforestation of production sites at the end of their operation, which are initially recognized against the related assets and are depreciated over their estimated useful life. 2 Provisions for legal claims and other responsibilities include items related to tax contingencies. 3 Environmental liabilities include future estimated costs arising from legal or constructive obligations, related to cleaning, reforestation and other remedial actions to remediate damage caused to the environment. The expected average period to settle these obligations is greater than 15 years. 4 As of December 31, 2017 and 2016, includes $1,498 and $2,300, respectively, of the non-current portion of taxes payable recognized in connection with the termination of the tax consolidation regime in Mexico as described in note 19.4. As of December 31, 2017 and 2016, $958 and $936, respectively, were included within current taxes payable. 147 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Changes in consolidated other current and non-current liabilities for the years ended December 31, 2017 and 2016, were as follows: 2017 Asset Accruals for Valuation of Other retirement Environmental legal derivative liabilities and obligations liabilities proceedings instruments provisions Total 2016 Balance at beginning of period $ 8,237 1,172 1,514 823 17,016 28,762 25,611 Business combinations – – – – 345 345 – Additions or increase in estimates 573 21 701 214 39,545 41,054 67,684 Releases or decrease in estimates (527) (54) (289) (306) (40,524) (41,700) (61,362) _ 7JHQFXXNÜªHFYNTSX_ _ ¢_ _____ ____ ¢_ _______ _______ ____ Accretion expense (191) – – – (830) (1,021) (1,042) Foreign currency translation (186) 34 (857) (310) 3,309 1,990 (1,388) Balance at end of period $ 7,906 991 1,599 421 17,399 28,316 28,762 Out of which: Current provisions $ – – – 19 12,648 12,667 11,716 18) PENSIONS AND POST-EMPLOYMENT BENEFITS )JÜªSJI_HTSYWNGZYNTS_UJSXNTS_UQFSX 9MJ_HTSXTQNIFYJI_HTXYX_TK_IJÜªSJI_HTSYWNGZYNTS_UQFSX_KTW_YMJ_^JFWX_JSIJI_)JHJRGJW________________FSI______¥JWJ__________FSI______ respectively. CEMEX contributes periodically the amounts offered by the pension plan to the employee’s individual accounts, not retaining any WJRFNSNSL_QNFGNQNY^_FX_TK_YMJ_ÜªSFSHNFQ_XYFYJRJSYXv_IFYJ_ )JÜªSJI_GJSJÜªY_UJSXNTS_UQFSX 2TXY_(*2*=Ñ£X_IJÜªSJI_GJSJÜªY_UQFSX_MF[J_GJJS_HQTXJI_YT_SJ¥_UFWYNHNUFSYX_KTW_XJ[JWFQ_^JFWX__&HYZFWNFQ_WJXZQYX_WJQFYJI_YT_UJSXNTS_FSI_TYMJW_UTXY_ WJYNWJRJSY_GJSJÜªYX_FWJ_WJHTLSN_JI_NS_YMJ_WJXZQYX_FSI_TW_NS_Ñ¦4YMJW_HTRUWJMJSXN[J_NSHTRJÑ§_KTW_YMJ_UJWNTI_NS_¥MNHM_YMJ^_FWJ_LJSJWFYJI__FX_HTWWJXUTSI__ +TW_YMJ_^JFWX_JSIJI_)JHJRGJW________________FSI_______YMJ_JKKJHYX_TK_UJSXNTS_UQFSX_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX_FWJ_XZRRFWN_JI_FX_ follows: _ 5JSXNTSX_ 4YMJW_GJSJÜªYX_ 9TYFQ Net period cost (income): 2017 2016 2015 2017 2016 2015 2017 2016 2015 Recorded in operating costs and expenses Service cost $ 221 151 128 33 25 30 254 176 158 Past service cost (55) 8 12 – – (20) (55) 8 (8) Loss for settlements and curtailments(13) – – – – – (13) – – 166 159 140 33 25 (3) 199 184 137 7JHTWIJI_NS_TYMJW_ÜªSFSHNFQ_J]UJSXJX Net interest cost 693 711 596 74 57 56 767 768 652 Recorded in other comprehensive income Actuarial (gains) losses for the period748 20 3,985 872 (23) 34 (124) (3) 4,019 $ 879 4,855 1,608 84 116 (71) 963 4,971 1,537 148 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 9MJ_WJHTSHNQNFYNTSX_TK_YMJ_FHYZFWNFQ_GJSJÜªYX_TGQNLFYNTSX__UJSXNTS_UQFS_FXXJYX__FSI_QNFGNQNYNJX_WJHTLSN_JI_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FX_TK_ December 31, 2017 and 2016 are presented as follows: _ 5JSXNTSX_ 4YMJW_GJSJÜªYX_ 9TYFQ 2017 2016 2017 2016 2017 2016 (MFSLJ_NS_GJSJÜªYX_TGQNLFYNTS_ 5WTOJHYJI_GJSJÜªY_TGQNLFYNTS_FY_GJLNSSNSL_TK_YMJ_UJWNTI_ _ _______ _______ ______ ______ _______ ______ Service cost 221 151 33 25 254 176 Interest cost 1,625 1,685 76 59 1,701 1,744 Actuarial (gains) losses 727 6,263 (24) 35 703 6,298 Additions through business combinations 2,801 – 271 – 3,072 –Settlements and curtailments – – – (19) – (19) Plan amendments 15 8 – – 15 8 ‘JSJÜªYX_UFNI_ _ _______ _______ ____ ____ _______ ______ Foreign currency translation 1,386 2,587 (3) 38 1,383 2,625 5WTOJHYJI_GJSJÜªY_TGQNLFYNTS_FY_JSI_TK_YMJ_UJWNTI_ _ _______ _______ ______ ______ _______ ______ Change in plan assets: Fair value of plan assets at beginning of the period 28,828 25,547 26 24 28,854 25,571 Return on plan assets 932 974 2 2 934 976 Actuarial (gains) losses for the period 707 2,278 (1) 1 706 2,279 Employer contributions 1,494 1,289 81 93 1,575 1,382 Additions through business combinations 2,841 – – – 2,841 –Reduction for disposal of assets (4) – – – (4) –Settlements and curtailments – – – (19) – (19) ‘JSJÜªYX_UFNI_ _ _______ _______ ____ ____ _______ ______ Foreign currency translation 787 1,119 1 (1) 788 1,118 Fair value of plan assets at end of the period 32,665 28,828 28 26 32,693 28,854 &RTZSYX_WJHTLSN_JI_NS_YMJ_XYFYJRJSYX_TK_ÜªSFSHNFQ_UTXNYNTS_ 3JY_UWTOJHYJI_QNFGNQNY^_WJHTLSN_JI_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_ _ _______ _______ ______ ______ _______ ______ For the years 2017, 2016 and 2015, actuarial (gains) losses for the period were generated by the following main factors as follows: 2017 2016 2015 Actuarial (gains) losses due to experience $ 121 (511) (105) Actuarial (gains) losses due to demographic assumptions (46) (231) (153) &HYZFWNFQ_ LFNSX__QTXXJX_IZJ_ÜªSFSHNFQ_FXXZRUYNTSX_ _____ _ ____ ______ $ (3) 4,019 748 .S_______SJY_FHYZFWNFQ_LFNSX_IZJ_YT_ÜªSFSHNFQ_FXXZRUYNTSX_¥JWJ_RFNSQ^_IWN[JS_G^_FS_NSHWJFXJ_NS_YMJ_INXHTZSY_WFYJX_FUUQNHFGQJ_YT_YMJ_GJSJÜªYXÑ£_ obligations in Germany and Mexico and by actual returns higher than estimated in the United States, partially offset by a decrease in the discount WFYJ_NS_YMJ_:SNYJI_0NSLITR__3JY_FHYZFWNFQ_QTXXJX_IZJ_YT_ÜªSFSHNFQ_FXXZRUYNTSX_IZWNSL______¥JWJ_RFNSQ^_LJSJWFYJI_G^_F_XNLSNÜªHFSY_WJIZHYNTS_ HTRUFWJI_YT______NS_YMJ_INXHTZSY_WFYJX_FUUQNHFGQJ_YT_YMJ_GJSJÜªY_TGQNLFYNTSX_NS_YMJ_:SNYJI_0NSLITR__,JWRFS^_FSI_TYMJW_*ZWTUJFS_HTZSYWNJX__ considering macroeconomic and political uncertainty, partially offset by an increase in the discount rate in Mexico. These actuarial losses originated by the reduction in the discount rates in 2016 were also partially offset by actual returns higher than estimated in some of the plan assets related YT_(*2*=Ñ£X_IJÜªSJI_GJSJÜªY_UQFSX__)ZWNSL_______INXHTZSYX_WFYJX_NSHWJFXJI_XQNLMYQ^_TW_WJRFNSJI_Ü«FY_FX_HTRUFWJI_YT_______GZY_YMJ_WJXZQYNSL_FHYZFWNFQ_ gains were offset and reversed by actuarial losses generated by actual returns lower than estimated in certain of CEMEX’s plan assets. 149 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information As of December 31, 2017 and 2016, plan assets were measured at their estimated fair value and, based on the hierarchy of fair values, are detailed as follows: 2017 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Cash $ 579 – 111 690 $ 1,075 1,024 – 2,099 Investments in corporate bonds 144 6,067 1 6,212 1,050 2,617 – 3,667 Investments in government bonds 1,701 9,407 – 11,108 209 10,081 – 10,290 _ 9TYFQ_Üª]JI_NSHTRJ_XJHZWNYNJX_ _ ______ _______ ____ _______ _ ______ _______ ¢_ ______ Investment in marketable securities 6,212 1,735 – 7,947 2,001 5,956 – 7,957 Other investments and private funds 991 3,279 2,466 6,736 770 3,478 593 4,841 Total variable-income securities 7,203 5,014 2,466 14,683 2,771 9,434 593 12,798 Total plan assets $ 9,627 20,488 2,578 32,693 $ 5,105 23,156 593 28,854 &X_TK_)JHJRGJW___________JXYNRFYJI_UF^RJSYX_KTW_UJSXNTSX_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX_T[JW_YMJ_SJ]Y____^JFWX_¥JWJ_FX_KTQQT¥X_ 2017 2018 $ 3,071 2019 2,952 2020 3,085 2021 3,080 2022 3,121 2023—2027 15,868 9MJ_RTXY_XNLSNÜªHFSY_FXXZRUYNTSX_ZXJI_NS_YMJ_IJYJWRNSFYNTS_TK_YMJ_GJSJÜªY_TGQNLFYNTS_¥JWJ_FX_KTQQT¥X_ 2017 2016 United United Range of rates in United United Rates ranges in Mexico States Kingdom other countries Mexico States Kingdom other countries Discount rates 9.3% 3.9% 2.4% 1.3% – 6.3% 9.0% 4.2% 2.6% 1.1% – 7.0% Rate of return on plan assets 9.3% 3.9% 2.4% 1.3% – 6.3% 9.0% 4.2% 2.6% 1.1% – 7.0% Rate of salary increases 4.0% – 3.2% 1.5% – 6.0% 4.0% – 3.3% 1.5% – 6.0% &X_TK_)JHJRGJW__________FSI_______YMJ_FLLWJLFYJ_UWTOJHYJI_GJSJÜªY_TGQNLFYNTS_ Ñ¦5’4Ñ§__KTW_UJSXNTS_UQFSX_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX_FSI_ the plan assets by country were as follows: 2017 2016 _ 5’4_ &XXJYX_ )JÜªHNY_ 5’4_ &XXJYX_ )JÜªHNY Mexico $ 3,213 840 2,373 $ 3,247 824 2,423 United States 6,378 4,031 2,347 7,110 4,192 2,918 United Kingdom 35,602 23,145 12,457 33,925 22,154 11,771 Germany 4,362 213 4,149 4,429 227 4,202 Other countries2,051 6,791 4,464 2,327 3,508 1,457 $ 56,346 32,693 23,653 $ 52,219 28,854 23,365 150 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Applicable regulation in the United Kingdom requires entities to maintain plan assets at a level similar to that of the obligations. In November 2012, NS_TWIJW_YT_GJYYJW_RFSFLJ_(*2*=Ñ£X_TGQNLFYNTSX_ZSIJW_NYX_IJÜªSJI_GJSJÜªY_UJSXNTS_XHMJRJX_FSI_KZYZWJ_HFXM_KZSINSL_WJVZNWJRJSYX_YMJWJTK__(*2*=_ implemented an asset backed pension funding arrangement in its operations in the United Kingdom by means of which CEMEX transferred certain operating assets to a non-transferable limited partnership, owned, controlled and consolidated by CEMEX UK with a total value of US$553 and entered into lease agreements for the use of such assets with the limited partnership, in which the pension schemes hold a limited interest. On FS_TSLTNSL_GFXNX_(*2*=_:0_¥NQQ_RFPJ_FSSZFQ_WJSYFQ_UF^RJSYX_TK_:8____NSHWJFXNSL_FY_FSSZFQ_WFYJ_TK__ __¥MNHM_¥NQQ_LJSJWFYJ_UWTÜªYX_NS_YMJ_QNRNYJI_ partnership that are then distributed to the pension schemes. As previously mentioned, the purpose of the structure, in addition to provide the pension schemes with secured assets producing an annual return over a period of 25 years, improves the security for the trustees of the pension schemes, and reduces the level of cash funding that CEMEX UK will have to make in future periods. In 2037, on expiry of the lease arrangements, the limited partnership will be terminated and under the terms of the agreement, the remaining assets will be distributed to CEMEX UK. Any future UWTÜªY_INXYWNGZYNTS_KWTR_YMJ_QNRNYJI_UFWYSJWXMNU_YT_YMJ_UJSXNTS_KZSI_¥NQQ_GJ_HTSXNIJWJI_FX_FS_JRUQT^JW_HTSYWNGZYNTS_YT_UQFS_FXXJYX_NS_YMJ_UJWNTI_NS_ which they occur. .S_XTRJ_HTZSYWNJX__(*2*=_MFX_JXYFGQNXMJI_MJFQYM_HFWJ_GJSJÜªYX_KTW_WJYNWJI_UJWXTSSJQ_QNRNYJI_YT_F_HJWYFNS_SZRGJW_TK_^JFWX_FKYJW_WJYNWJRJSY__&X_TK_ )JHJRGJW__________FSI_______YMJ_UWTOJHYJI_GJSJÜªYX_TGQNLFYNTS_WJQFYJI_YT_YMJXJ_GJSJÜªYX_¥FX_______FSI______WJXUJHYN[JQ^__9MJ_RJINHFQ_NSÜ«FYNTS_ WFYJX_ZXJI_YT_IJYJWRNSJ_YMJ_UWTOJHYJI_GJSJÜªYX_TGQNLFYNTS_TK_YMJXJ_GJSJÜªYX_NS______FSI______KTW_2J]NHT_¥JWJ____ _FSI____ __WJXUJHYN[JQ^__KTW_ Puerto Rico 6.9% and 4.3%, respectively, and for the United Kingdom were 6.7% and 6.8%, respectively. In connection with TCL’s consolidation (note ______(*2*=_NSYJLWFYJI_9(1Ñ£X_MJFQYM_HFWJ_GJSJÜªYX_YT_NYX_TUJWFYNTSX__+TW_______YMJ_RJINHFQ_NSÜ«FYNTS_WFYJ_ZXJI_YT_IJYJWRNSJ_YMJ_UWTOJHYJI_GJSJÜªYX_ obligation was 5.0% . 8NLSNÜªHFSY_J[JSYX_WJQFYJI_YT_JRUQT^JJXÑ£_UJSXNTS_GJSJÜªYX_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX_IZWNSL_YMJ_WJUTWYJI_UJWNTIX )ZWNSL_______(*2*=_NS_8UFNS_WJRT[JI_HJWYFNS_NSHWJFXJX_NS_UJSXNTSX_GJSJÜªYX_¥MNHM_WJXZQYJI_NS_FS_FIOZXYRJSY_YT_UFXY_XJW[NHJ_HTXY_LJSJWFYNSL_ gains of $99 (US$5) in 2017, recognized in the income statement for the year. In addition, due to the acquisition of TCL’s (note 4.1), CEMEX NSYJLWFYJI_NYX_UJSXNTSX_UQFSX__¥MNHM_¥JWJ_KZQQ^_KZSIJI__FX_¥JQQ_FX_9(1Ñ£X_MJFQYM_HFWJ_GJSJÜªYX_¥MNHM_WJUWJXJSYJI_FS_NSHWJFXJ_NS_YMJ_SJY_UWTOJHYJI_ liability of $271 (US$14). During 2015, CEMEX in the United States terminated the retiree medical coverage for certain participants not yet retired. In addition, during 2014, CEMEX in the United States terminated the retiree medical and life insurance coverage for most new retirees, and changed the existing retirees program effective January 1, 2015, where participants will cease their current plans and instead receive a Health Reimbursement Account (HRA) contribution, if they become eligible. These curtailment events resulted in an adjustment to past service cost which generated gains of $13 (US$1) NS_______WJHTLSN_JI_NRRJINFYJQ^_YMWTZLM_YMJ_GJSJÜªY_HTXY_TK_YMJ_WJXUJHYN[J_UJWNTI_ 8JSXNYN[NY^_FSFQ^XNX_TK_UJSXNTS_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX +TW_YMJ_^JFW_JSIJI_)JHJRGJW___________(*2*=_UJWKTWRJI_XJSXNYN[NY^_FSFQ^XJX_TS_YMJ_RTXY_XNLSNÜªHFSY_FXXZRUYNTSX_YMFY_FKKJHY_YMJ_5’4__HTSXNIJWNSL_ reasonable independent changes of plus or minus 50 basis points in each of these assumptions. The increase (decrease) that would have resulted NS_YMJ_5’4_TK_UJSXNTSX_FSI_TYMJW_UTXY_JRUQT^RJSY_GJSJÜªYX_FX_TK_)JHJRGJW__________FWJ_XMT¥S_GJQT¥_ _ 5JSXNTSX_ 4YMJW_GJSJÜªYX_ 9TYFQ Assumptions: +50 bps -50 bps +50 bps -50 bps +50 bps -50 bps Discount Rate Sensitivity $ (4,028) 4,426 (72) 83 (4,100) 4,509 Salary Increase Rate Sensitivity 154 (138) 34 (29) 189 (166) Pension Increase Rate Sensitivity 2,341 (2,209) – – 2,341 (2,209) 151 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 19) INCOME TAXES 19.1) Income taxes for the period The amounts of income tax revenue (expense) in the statements of operations for 2017, 2016 and 2015 are summarized as follows: 2017 2016 2015 Current income taxes $ (3,458) (3,456) 6,121 Deferred income taxes(8,489) 2,938 331 $ (520) (3,125) (2,368) 19.2) Deferred income taxes As of December 31, 2017 and 2016, the main temporary differences that generated the consolidated deferred income tax assets and liabilities are presented below: 2017 2016 Deferred tax assets: Tax loss carryforwards and other tax credits $ 15,900 17,514 Accounts payable and accrued expenses 7,083 9,262 Intangible assets and deferred charges, net 4,175 6,358 Others – 411 Total deferred tax assets, net 27,158 33,545 Deferred tax liabilities: Property, machinery and equipment (27,268) (35,095) Investments and other assets (874) (2,012) Total deferred tax liabilities, net (28,142) (37,107) Net deferred tax liabilities $ (984) (3,562) Out of which: Net deferred tax (liability) asset in Mexican entities $ (3,644) (2,509) Net deferred tax (liability) asset in Foreign entities $ 2,660 (1,053) The breakdown of changes in consolidated deferred income taxes during 2017, 2016 and 2015 were as follows: 2017 2016 2015 Deferred income tax (charged) credited to the income statement 1 $ 2,938 331 (8,489) Deferred income tax (charged) credited to stockholders’ equity 200 514 1,089 7JHQFXXNÜªHFYNTS_YT_TYMJW_HFUYNTSX_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_FSI_NS_YMJ_NSHTRJ_XYFYJRJSY_2 (560) 531 (5,467) Change in deferred income tax during the period $ 2,578 1,376 (12,867) 1 In 2017, includes a net income tax revenue related to the recognition of deferred income tax assets in CEMEX’s operations in the United States (note 19.4) . 2 In 2017, 2016 and 2015, includes the effects of discontinued operations (note 4.2) and in 2015 the effects of the termination of tax consolidation regime in Mexico. 152 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Current and/or deferred income tax relative to items of other comprehensive income during 2017, 2016 and 2015 were as follows: 2017 2016 2015 9F]_JKKJHYX_WJQFYN[J_YT_KTWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_KWTR_IJGY_ STYJ_______ _ ¢_ _____ ____ 9F]_JKKJHYX_WJQFYN[J_YT_KTWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_KWTR_NSYJWHTRUFS^_GFQFSHJX_ STYJ_______ _ ___ ____ ____ Tax effects relative to actuarial (gains) and losses (note 20.2) (1) 788 183 Foreign currency translation and other effects906 201 (274) $ 232 92 636 For the recognition of deferred tax assets, CEMEX analyzes the aggregate amount of self-determined tax loss carryforwards included in its income tax returns in each country where CEMEX believes, based on available evidence, that the tax authorities would not reject such tax loss carryforwards; and the likelihood of the recoverability of such tax loss carryforwards prior to their expiration through an analysis of estimated future taxable income. If CEMEX believes that it is probable that the tax authorities would reject a self-determined deferred tax asset, it would decrease such asset. Likewise, if CEMEX believes that it would not be able to use a tax loss carryforward before its expiration or any other tax asset, CEMEX would not recognize such asset. Both situations would result in additional income tax expense for the period in which such determination is made. In order to determine whether it is probable that deferred tax assets will ultimately be realized, CEMEX takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, expansion plans, projected taxable income, carryforward periods, current tax structure, potential changes or adjustments in tax structure, tax planning strategies and future reversals of existing temporary differences. In addition, every reporting period, CEMEX analyzes its actual results versus its estimates, and adjusts, as necessary, its tax asset valuations. If actual results vary from CEMEX’s estimates, the deferred tax asset may be affected and necessary adjustments will be made based on relevant information, any adjustments recorded will affect CEMEX’s statements of operations in such period. As of December 31, 2017, consolidated tax loss and tax credits carryforwards expire as follows: Amount of Amount of Amount of unrecognized recognized carryforwards carryforwards carryforwards 2018 $ 1,099 415 684 2019 5,989 5,149 840 2020 8,929 8,115 814 2021 4,407 2,908 1,499 2022 and thereafter58,041 288,466 230,425 $ 308,890 247,012 61,878 As of December 31, 2017, in connection with CEMEX’s deferred tax loss carryforwards presented in the table above, in order to realize the GJSJÜªYX_FXXTHNFYJI_¥NYM_XZHM_IJKJWWJI_YF]_FXXJYX_YMFY_MF[J_STY_GJJS_WJXJW[JI__GJKTWJ_YMJNW_J]UNWFYNTS__(*2*=_¥TZQI_SJJI_YT_LJSJWFYJ________ NS_HTSXTQNIFYJI_UWJ_YF]_NSHTRJ_NS_KZYZWJ_UJWNTIX__‘FXJI_TS_YMJ_XFRJ_KTWJHFXYX_TK_KZYZWJ_HFXM_Ü«T¥X_FSI_TUJWFYNSL_WJXZQYX_ZXJI_G^_(*2*=Ñ£X_ management to allocate resources and evaluate performance in the countries in which CEMEX operates, which include expected growth in revenues and reductions in interest expense in several countries due to a reduction in intra-group debt balances, along with the implementation of feasible tax strategies, CEMEX believes that it will recover the balance of its tax loss carryforwards that have not been reserved before their expiration. In addition, CEMEX concluded that, the deferred tax liabilities that were considered in the analysis of recoverability of its deferred tax assets will reverse in the same period and tax jurisdiction of the related recognized deferred tax assets. Moreover, a certain amount of CEMEX’s deferred tax assets refer to operating segments and tax jurisdictions in which CEMEX is currently generating taxable income or in ¥MNHM__FHHTWINSL_YT_(*2*=Ñ£X_RFSFLJRJSY_HFXM_Ü«T¥_UWTOJHYNTSX__¥NQQ_LJSJWFYJ_YF]FGQJ_NSHTRJ_NS_YMJ_WJQJ[FSY_UJWNTIX_GJKTWJ_YMJ_J]UNWFYNTS_TK_ the deferred tax assets. 153 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information CEMEX does not recognize a deferred income tax liability related to its investments in subsidiaries considering that CEMEX controls the reversal TK_YMJ_YJRUTWFW^_INKKJWJSHJX_FWNXNSL_KWTR_YMJXJ_NS[JXYRJSYX_FSI_RFSFLJRJSY_NX_XFYNXÜªJI_YMFY_XZHM_YJRUTWFW^_INKKJWJSHJX_¥NQQ_STY_WJ[JWXJ_NS_YMJ_ foreseeable future. 19.3) Reconciliation of effective income tax rate For the years ended December 31, 2017, 2016 and 2015, the effective consolidated income tax rates were as follows: 2017 2016 2015 Income before income tax $ 13,659 17,563 3,464 Income tax expense (520) (3,125) (2,368) Effective consolidated income tax rate 1 (3.8)% (17.8)% (68.4)% 1 The average effective tax rate equals the net amount of income tax revenue or expense divided by income or loss before income taxes, as these line items are reported in the income statement. )NKKJWJSHJX_GJY¥JJS_YMJ_ÜªSFSHNFQ_WJUTWYNSL_FSI_YMJ_HTWWJXUTSINSL_YF]_GFXNX_TK_FXXJYX_FSI_QNFGNQNYNJX_FSI_YMJ_INKKJWJSY_NSHTRJ_YF]_WFYJX_FSI_QF¥X_ applicable to CEMEX, among other factors, give rise to permanent differences between the statutory tax rate applicable in Mexico, and the effective tax rate presented in the consolidated statements of operations, which in 2017, 2016 and 2015 were as follows: 2017 2016 2015 % $ % $ % $ Mexican statutory tax rate (30.0) (4,098) (30.0) (5,269) (30.0) (1,039) Non-taxable dividend income 0.1 14 0.2 32 37.0 1,280 Difference between accounting and tax expenses, net (20.9) (2,855) 82.6 14,507 (84.3) (2,919) Termination of the income tax consolidation regime in Mexico – – – – 32.8 1,136 Unrecognized effects during the year related to applicable tax consolidation regimes 0.9 123 (3.6) (632) 8.5 293 3TS_YF]FGQJ_XFQJ_TK_RFWPJYFGQJ_XJHZWNYNJX_FSI_Üª]JI_FXXJYX_ _____ ______ ____ ____ _____ _____ )NKKJWJSHJ_GJY¥JJS_GTTP_FSI_YF]_NSÜ«FYNTS_ ______ _______ ______ _______ ______ ____ Differences in the income tax rates in the countries where CEMEX operates 1 21.9 2,991 11.0 1,932 48.9 1,693 Changes in deferred tax assets 2 39.8 5,433 (70.1) (12,320) (100.3) (3,473) Changes in provisions for uncertain tax positions (0.4) (55) 0.7 123 7.9 272 Others 1.0 139 (1.3) (216) 1.2 48 Effective consolidated tax rate (3.8) (520) (17.8) (3,125) (68.4) (2,368) 1 Refers mainly to the effects of the differences between the statutory income tax rate in Mexico of 30% against the applicable income tax rates of each country where CEMEX operates. In 2017, includes the effect related to the change in statutory tax rate in the United States (note 19.4) . 2 Refers to the effects in the effective income tax rate associated with changes during the period in the amount of deferred income tax assets related to CEMEX’s tax loss carryforwards. 154 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 9MJ_KTQQT¥NSL_YFGQJ_HTRUFWJX_[FWNFYNTSX_GJY¥JJS_YMJ_QNSJ_NYJR_Ñ¦(MFSLJX_NS_IJKJWWJI_YF]_FXXJYXÑ§_FX_UWJXJSYJI_NS_YMJ_YFGQJ_FGT[J_FLFNSXY_YMJ_ HMFSLJX_NS_IJKJWWJI_YF]_FXXJYX_NS_YMJ_XYFYJRJSY_TK_ÜªSFSHNFQ_UTXNYNTS_KTW_YMJ_^JFWX_JSIJI_)JHJRGJW__________FSI______ 2017 2016 Changes in the Changes in the statement of statement of _ ÜªSFSHNFQ_ &RTZSYX_NS_ ÜªSFSHNFQ_ &RTZSYX_NS position reconciliation position reconciliation Tax loss carryforwards generated and not recognized during the year $ – 6,092 – (9,108) Derecognition related to tax loss carryforwards recognized in prior years (5,221) (5,221) (4,843) (4,843) Recognition related to unrecognized tax loss carryforwards 9,694 9,694 1,631 1,631 Foreign currency translation and other effects (6,087) (5,132) 4,068 –Changes in deferred tax assets $ (1,614) 5,433 856 (12,320) ______:SHJWYFNS_YF]_UTXNYNTSX_FSI_XNLSNÜªHFSY_YF]_UWTHJJINSLX As of December 31, 2017 and 2016, as part of short-term and long-term provisions and other liabilities (note 17), CEMEX has recognized provisions WJQFYJI_YT_ZSWJHTLSN_JI_YF]_GJSJÜªYX_NS_HTSSJHYNTS_¥NYM_ZSHJWYFNS_YF]_UTXNYNTSX_YFPJS__NS_¥MNHM_NY_NX_IJJRJI_UWTGFGQJ_YMFY_YMJ_YF]_FZYMTWNY^_¥TZQI_ differ from the position adopted by CEMEX. As of December 31, 2017, the tax returns submitted by some subsidiaries of CEMEX located in several countries are under review by the respective tax authorities in the ordinary course of business. CEMEX cannot anticipate if such reviews will result NS_SJ¥_YF]_FXXJXXRJSYX__¥MNHM_¥TZQI__XMTZQI_FS^_FWNXJ__GJ_FUUWTUWNFYJQ^_INXHQTXJI_FSI_TW_WJHTLSN_JI_NS_YMJ_ÜªSFSHNFQ_XYFYJRJSYX_ &_XZRRFW^_TK_YMJ_GJLNSSNSL_FSI_JSINSL_FRTZSY_TK_ZSWJHTLSN_JI_YF]_GJSJÜªYX_KTW_YMJ_^JFWX_JSIJI_)JHJRGJW________________FSI_______J]HQZINSL_ interest and penalties, is as follows: 2017 2016 2015 Balance of tax positions at beginning of the period $ 1,132 1,190 1,396 Additions for tax positions of prior periods 663 200 134 Additions for tax positions of current period 16 90 71 Reductions for tax positions related to prior periods and other items (32) (131) (95) _ 8JYYQJRJSYX_FSI_WJHQFXXNÜªHFYNTSX_ _ _____ _____ ____ Expiration of the statute of limitations (138) (126) (231) Foreign currency translation effects 49 72 119 Balance of tax positions at end of the period $ 1,571 1,132 1,190 )ZWNSL_______HTSXNIJWNSL_WJHT[JWFGNQNY^_FSFQ^XJX_FSI_HFXM_Ü«T¥_UWTOJHYNTSX__(*2*=_WJHTLSN_JI_IJKJWWJI_NSHTRJ_YF]_FXXJYX_WJQFYJI_YT_NYX_TUJWFYNTSX_ NS_YMJ_:SNYJI_8YFYJX_KTW_:8____HTSXNIJWNSL_YMJ_YMJS_FUUQNHFGQJ_NSHTRJ_YF]_WFYJ_TK___ __-T¥J[JW__WJLFWINSL_YMJ_9F]_(ZYX_FSI_/TGX_&HY_ YMJ_Ñ¦&HYÑ§__ enacted on December 22, 2017, the U.S. statutory federal tax rate was reduced from 35% to 21%. For this reason, CEMEX reduced its net deferred tax assets by US$124. The reduction in the U.S. statutory federal tax rate is expected to positively impact CEMEX’s future after-tax earnings in the United States. Nonetheless, the ultimate impact is subject to the effect of other complex provisions in the Act, including the Base Erosion and &SYN_&GZXJ_9F]_ Ñ¦’*&9Ñ§___¥MNHM_(*2*=_NX_HZWWJSYQ^_WJ[NJ¥NSL__FSI_NY_NX_UTXXNGQJ_YMFY_FS^_NRUFHY_TK_’*&9_HTZQI_WJIZHJ_YMJ_GJSJÜªY_TK_YMJ_HMFSLJ_NS_ such statutory federal tax rate. Due to the uncertain practical and technical application of many of these provisions, it is currently not possible to reliably estimate whether BEAT will apply and if so, how it would impact CEMEX, but as additional guidance from the U.S. tax authorities is received, (*2*=_¥NQQ_WJHTLSN_J_YMJ_JKKJHYX_TK_XZHM_HQFWNÜªHFYNTSX_NSYT_NYX_ÜªSFSHNFQ_XYFYJRJSYX_ 155 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Tax examinations can involve complex issues, and the resolution of issues may span multiple years, particularly if subject to negotiation or litigation. &QYMTZLM_(*2*=_GJQNJ[JX_NYX_JXYNRFYJX_TK_YMJ_YTYFQ_ZSWJHTLSN_JI_YF]_GJSJÜªYX_FWJ_WJFXTSFGQJ__ZSHJWYFNSYNJX_WJLFWINSL_YMJ_ÜªSFQ_IJYJWRNSFYNTS_TK_ NSHTRJ_YF]_FZINY_XJYYQJRJSYX_FSI_FS^_WJQFYJI_QNYNLFYNTS_HTZQI_FKKJHY_YMJ_FRTZSY_TK_YTYFQ_ZSWJHTLSN_JI_YF]_GJSJÜªYX_NS_KZYZWJ_UJWNTIX__.Y_NX_INKÜªHZQY_ YT_JXYNRFYJ_YMJ_YNRNSL_FSI_WFSLJ_TK_UTXXNGQJ_HMFSLJX_WJQFYJI_YT_YMJ_ZSHJWYFNS_YF]_UTXNYNTSX__FX_ÜªSFQN_NSL_FZINYX_¥NYM_YMJ_NSHTRJ_YF]_FZYMTWNYNJX_ may involve formal administrative and legal proceedings. Accordingly, it is not possible to reasonably estimate the expected changes to the total ZSWJHTLSN_JI_YF]_GJSJÜªYX_T[JW_YMJ_SJ]Y____RTSYMX__FQYMTZLM_FS^_XJYYQJRJSYX_TW_XYFYZYJ_TK_QNRNYFYNTSX_J]UNWFYNTSX_RF^_WJXZQY_NS_F_XNLSNÜªHFSY_ NSHWJFXJ_TW_IJHWJFXJ_NS_YMJ_YTYFQ_ZSWJHTLSN_JI_YF]_GJSJÜªYX__NSHQZINSL_YMTXJ_UTXNYNTSX_WJQFYJI_YT_YF]_J]FRNSFYNTSX_GJNSL_HZWWJSYQ^_HTSIZHYJI_ &X_TK_)JHJRGJW___________YMJ_(TRUFS^Ñ£X_RTXY_XNLSNÜªHFSY_YF]_UWTHJJINSLX_FWJ_FX_KTQQT¥X_ • As part of an audit process, the tax authorities in Spain have challenged part of the tax loss carryforwards reported by CEMEX España covering YMJ_YF]_^JFWX_KWTR_FSI_NSHQZINSL______YT_______)ZWNSL_______YMJ_YF]_FZYMTWNYNJX_NS_8UFNS_STYNÜªJI_(*2*=_*XUFà¤”F_TK_ÜªSJX_NS_YMJ_FLLWJLFYJ_ FRTZSY_TK_:8____ _________(*2*=_*XUFà¤”F_ÜªQJI_FUUJFQX_FLFNSXY_XZHM_WJXTQZYNTS__4S_8JUYJRGJW___________(*2*=_*XUFà¤”F_¥FX_STYNÜªJI_FGTZY_ an adverse resolution to such appeals. CEMEX España challenged this decision and applied for the suspension of the payment before the 3FYNTSFQ_(TZWY_ &ZINJSHNF_3FHNTSFQ__ZSYNQ_YMJ_WJHTZWXJX_FWJ_ÜªSFQQ^_WJXTQ[JI__&X_TK_)JHJRGJW___________(*2*=_ITJX_STY_HTSXNIJW_UWTGFGQJ_FS_ FI[JWXJ_WJXTQZYNTS_NS_YMNX_UWTHJJINSL_FSI_ST_FHHWZFQX_MF[J_GJJS_HWJFYJI_NS_HTSSJHYNTS_¥NYM_YMNX_UWTHJJINSL__3TSJYMJQJXX__NX_INKÜªHZQY_YT_FXXJXX_ ¥NYM_HJWYFNSY^_YMJ_QNPJQNMTTI_TK_FS_FI[JWXJ_WJXZQY__FSI_YMJ_FUUJFQX_YMFY_(*2*=_*XUFà¤”F_MFX_ÜªQJI_HTZQI_YFPJ_FS_J]YJSIJI_FRTZSY_TK_YNRJ_YT_GJ_ WJXTQ[JI__GZY_NK_FI[JWXJQ^_WJXTQ[JI__NY_HTZQI_MF[J_F_RFYJWNFQ_FI[JWXJ_NRUFHY_TS_(*2*=Ñ£X_WJXZQYX_TK_TUJWFYNTSX__QNVZNINY^_TW_ÜªSFSHNFQ_UTXNYNTS_ • In December 2013, the Mexican Congress approved amendments to the income tax law effective January 1, 2014, which eliminated the tax consolidation regime. A period of up to 10 years was established for the settlement of any liability for income taxes related to the tax consolidation regime accrued until December 31, 2013, amount which considering the rules issued for the disconnection of the tax consolidation regime FRTZSYJI_YT_________.S_4HYTGJW_______F_SJ¥_YF]_WJKTWR_FUUWT[JI_G^_YMJ_2J]NHFS_(TSLWJXX_ YMJ_Ñ¦SJ¥_YF]_WJKTWRÑ§__LWFSYJI_JSYNYNJX_YMJ_TUYNTS_ to settle a portion of the liability for the exit of the tax consolidation regime using available tax loss carryforwards of the previously consolidated entities, considering a discount factor, and a tax credit to offset certain items of the aforementioned liability. Consequently, as a result of payments made during 2014 and 2015, the liability was further reduced to $16,244, which after the application of the tax credit and tax loss carryforwards (as provided by the new tax reform) which had a book value for CEMEX before discount of $11,136, as of December 31, 2015, the Parent Company’s liability was reduced to $3,971. As of December 31, 2017 and 2016, considering payments made during these years net TK_NSÜ«FYNTS_FIOZXYRJSYX__(*2*=_WJIZHJI_YMJ_GFQFSHJ_UF^FGQJ_YT_______FSI________WJXUJHYN[JQ^_ 156 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Ñ¬_ .S_&UWNQ_______YMJ_(TQTRGNFS_9F]_&ZYMTWNY^_ Ñ¦)NWJHHNà¤–S_IJ_.RUZJXYTXÑ§__STYNÜªJI_(*2*=_(TQTRGNF_TK_F_XUJHNFQ_UWTHJJINSL_WJOJHYNSL_HJWYFNS_ IJIZHYNTSX_YFPJS_G^_(*2*=_(TQTRGNF_NS_NYX______YF]_WJYZWS_HTSXNIJWNSL_YMJ^_FWJ_STY_QNSPJI_YT_INWJHY_WJ[JSZJX_WJHTWIJI_NS_YMJ_XFRJ_ÜªXHFQ_^JFW__ and assessed an increase in taxes to be paid by CEMEX Colombia in an amount in Colombian pesos equivalent to US$30 ($593) and imposed a penalty in an amount in Colombian pesos equivalent to US$48 ($948), both as of December 31, 2017. After several appeals of CEMEX Colombia to the Colombian Tax Authority’s special proceeding in the applicable courts in which CEMEX Colombia obtained negative resolutions in each HFXJ_T[JW_YMJ_^JFWX__NS_/ZQ^_______(*2*=_(TQTRGNF_ÜªQJI_FS_FUUJFQ_FLFNSXY_YMNX_WJXTQZYNTS_GJKTWJ_YMJ_(TQTRGNFS_8YFYJ_(TZSHNQ_ Consejo de Estado). As of December 31, 2017, at this stage of the proceeding, CEMEX does not consider probable an adverse resolution in this proceeding, STSJYMJQJXX__NX_INKÜªHZQY_YT_FXXJXX_¥NYM_HJWYFNSY^_YMJ_QNPJQNMTTI_TK_FS_FI[JWXJ_WJXZQY _GZY_NK_FI[JWXJQ^_WJXTQ[JI__YMNX_UWTHJJINSL_HTZQI_MF[J_F_ RFYJWNFQ_FI[JWXJ_NRUFHY_TS_(*2*=Ñ£X_WJXZQYX_TK_TUJWFYNTSX__QNVZNINY^_TW_ÜªSFSHNFQ_UTXNYNTS_ 20) STOCKHOLDERS’ EQUITY As of December 31,2017 and 2016, stockholders’ equity excludes investments in CPOs of the Parent Company held by subsidiaries of $301 ___________(54X__FSI_____ ___________(54X___WJXUJHYN[JQ^__¥MNHM_¥JWJ_JQNRNSFYJI_¥NYMNS_Ñ¦4YMJW_JVZNY^_WJXJW[JX_Ñ§ 20.1) Common stock and additional paid-in capital As of December 31, 2017 and 2016, the breakdown of common stock and additional paid-in capital was as follows: 2017 2016 Common stock $ 4,171 4,162 Additional paid-in capital123,174 140,483 $ 144,654 127,336 As of December 31, 2017 and 2016 the common stock of CEMEX, S.A.B. de C.V. was presented as follows: 2017 2016 Shares 1 Series A 2 Series B 2 Series A 2 Series B 2 Subscribed and paid shares 30,214,469,912 15,107,234,956 28,121,583,148 14,060,791,574 Unissued shares authorized for executives’ stock compensation programs 531,739,616 265,869,808 638,468,154 319,234,077 Shares that guarantee the issuance of convertible securities2,609,449,960 3 4,529,605,020 2,264,802,510 5,218,899,920 35,275,814,548 17,637,907,274 33,978,951,222 16,989,475,611 1 &X_TK_)JHJRGJW__________FSI______________________XMFWJX_HTWWJXUTSI_YT_YMJ_Üª]JI_UTWYNTS__FSI________________XMFWJX_NS______FSI________________XMFWJX_NS_______HTWWJXUTSI_YT_ the variable portion. 2_8JWNJX_Ñ¦&Ñ§_TW_2J]NHFS_XMFWJX_RZXY_WJUWJXJSY_FY_QJFXY___ _TK_(*2*=Ñ£X_HFUNYFQ_XYTHP _RJFS¥MNQJ__8JWNJX_Ñ¦’Ñ§_TW_KWJJ_XZGXHWNUYNTS_XMFWJX_RZXY_WJUWJXJSY_FY_RTXY___ _TK_(*2*=Ñ£X_HFUNYFQ_ stock. 3 Shares that guarantee the conversion of both the outstanding voluntary and mandatorily convertible securities and new securities issues (note 16.2) . On March 30, 2017, stockholders at the annual ordinary shareholders’ meeting approved resolutions to: (i) increase the variable common stock through the capitalization of retained earnings by issuing up to 1,687 million shares (562 million CPOs), which shares were issued, representing an increase in common stock of $5, considering a nominal value of $0.00833 per CPO, and additional paid-in capital of $9,459; (ii) increase the variable common stock by issuing up to 258 million shares (86 million CPOs), which will be kept in the Parent Company’s treasury to be used to preserve the anti-dilutive rights of note holders pursuant CEMEX’s convertible securities (note 16.2) . 157 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information On March 31, 2016, stockholders at the annual ordinary shareholders’ meeting approved resolutions to: (i) increase the variable common stock through the capitalization of retained earnings by issuing up to 1,616 million shares (539 million CPOs), which shares were issued, representing an increase in common stock of $4, considering a nominal value of $0.00833 per CPO, and additional paid-in capital of $6,966; (ii) increase the variable common stock by issuing up to 297 million shares (99 million CPOs), which will be kept in the Parent Company’s treasury to be used to preserve the anti-dilutive rights of note holders pursuant CEMEX’s convertible securities (note 16.2) . On March 26, 2015, stockholders at the annual ordinary shareholders’ meeting approved resolutions to: (i) increase the variable common stock through the capitalization of retained earnings by issuing up to 1,500 million shares (500 million CPOs), which shares were issued, representing an increase in common stock of $4, considering a nominal value of $0.00833 per CPO, and additional paid-in capital of $7,613; (ii) increase the variable common stock by issuing up to 297 million shares (99 million CPOs), which will be kept in the Parent Company’s treasury to be used to preserve the anti-dilutive rights of note holders pursuant CEMEX’s convertible securities (note 16.2) . In connection with the long-term executive share-based compensation program (note 21) in 2017, 2016 and 2015, CEMEX issued approximately 53.2 million CPOs, 53.9 million CPOs and 49.2 million, respectively, generating an additional paid-in capital of $817 in 2017, $742 in 2016 and $655 in 2015 associated with the fair value of the compensation received by executives. 20.2) Other equity reserves As of December 31, 2017 and 2016 other equity reserves are summarized as follows: 2017 2016 Cumulative translation effect, net of effects from perpetual debentures and deferred income taxes recognized directly in equity (notes 19.2 and 20.4) $ 21,288 31,293 Cumulative actuarial losses (10,931) (10,934) Effects associated with CEMEX´s convertible securities 1 3,427 4,761 Treasury shares held by subsidiaries(327) (301) $ 13,483 24,793 1 Represents the equity component upon the issuance of CEMEX’s convertible securities described in note 16.2, as well as the effects associated with such securities in connection ¥NYM_YMJ_HMFSLJ_NS_YMJ_5FWJSY_(TRUFS^Ñ£X_KZSHYNTSFQ_HZWWJSH^_ STYJ_______:UTS_HTS[JWXNTS_TK_YMJXJ_XJHZWNYNJX__YMJ_GFQFSHJX_MF[J_GJJS_HTWWJXUTSINSLQ^_WJHQFXXNÜªJI_YT_HTRRTS_XYTHP_ and/or additional paid-in capital (note 16.1) . For the years ended December 31, 2017, 2016 and 2015, the translation effects of foreign subsidiaries included in the statements of comprehensive income were as follows: 2017 2016 2015 Foreign currency translation result 1 $ (3,116) 20,648 12,869 +TWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_KWTR_IJGY_2 (4,160) 1,367 908 +TWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_KWTR_NSYJWHTRUFS^_GFQFSHJX_ (5,801) 3 (2,243) (10,385) $ (9,519) 11,630 7,976 1 9MJXJ_JKKJHYX_WJKJW_YT_YMJ_WJXZQY_KWTR_YMJ_YWFSXQFYNTS_TK_YMJ_ÜªSFSHNFQ_XYFYJRJSYX_TK_KTWJNLS_XZGXNINFWNJX_FSI_NSHQZIJ_YMJ_HMFSLJX_NS_KFNW_[FQZJ_TK_KTWJNLS_J]HMFSLJ_KTW¥FWI_HTSYWFHYX_ designated as hedge of a net investment (note 16.4) . 2_,JSJWFYJI_G^_KTWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_T[JW_F_STYNTSFQ_FRTZSY_TK_IJGY_NS_(*2*=__8_&_’__IJ_(_;___FXXTHNFYJI_¥NYM_YMJ_FHVZNXNYNTS_TK_KTWJNLS_XZGXNINFWNJX_FSI_IJXNLSFYJI_FX_F_ hedge of the net investment in foreign subsidiaries (note 2.4) . 3_7JKJWX_YT_KTWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_FWNXNSL_KWTR_GFQFSHJX_¥NYM_WJQFYJI_UFWYNJX_NS_KTWJNLS_HZWWJSHNJX_YMFY_FWJ_TK_F_QTSL_YJWR_NS[JXYRJSY_SFYZWJ_HTSXNIJWNSL_YMFY_YMJNW_QNVZNIFYNTS_NX_ STY_FSYNHNUFYJI_NS_YMJ_KTWJXJJFGQJ_KZYZWJ_FSI_KTWJNLS_J]HMFSLJ_Ü«ZHYZFYNTSX_T[JW_F_STYNTSFQ_FRTZSY_TK_IJGY_TK_F_XZGXNINFW^_TK_(*2*=_*XUFà¤”F_NIJSYNÜªJI_FSI_IJXNLSFYJI_FX_F_MJILJ_ of the net investment in foreign subsidiaries. 158 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

4.1 Financial information 20.3) Retained earnings The Parent Company’s net income for the year is subject to a 5% allocation toward a legal reserve until such reserve equals one fifth of the common stock. As of December 31, 2017, the legal reserve amounted to $1,804. 20.4) Non-controlling interest and perpetual debentures Non-controlling interest Non-controlling interest represents the share of non-controlling stockholders in the equity and results of consolidated subsidiaries. As of December 31, 2017 and 2016, non-controlling interest in equity amounted to $23,298 and $19,876, respectively. In addition, in 2017, 2016 and 2015, non-controlling interests in consolidated net income were $1,417, $1,173 and $923, respectively. These non-controlling interests arise mainly from the following CEMEX’s subsidiaries: • In February 2017, as described in note 4.1, CEMEX acquired a controlling interest in TCL, which shares trade in the Trinidad and Tobago Stock Exchange. As of December 31, 2017, there is a non-controlling interest in TCL of approximately 30.2% of its common shares (see note 4.4 for certain relevant condensed financial information). • In July 2016, CHP, an indirect wholly-owned subsidiary of CEMEX España, S.A., closed its initial offering of 2,337,927,954 new common shares, or 45% of CHP’s common shares, at a price of 10.75 Philippine Pesos per common share. The net proceeds from the offering of US$507 (considering an exchange rate of 46.932 Philippines pesos per U.S. dollar on June 30, 2016), after deducting commissions and other offering expenses, were used by CEMEX for general corporate purposes, including the repayment of existing debt. CHP’s assets consist primarily of CEMEX’s cement manufacturing assets in the Philippines. As of December 31, 2017 and 2016, there is a non-controlling interest in CHP of approximately 45% of its common shares in both years (see note 4.4 for certain relevant condensed financial information). • In November 2012, pursuant to a public offering in Colombia and an international private placement, CLH, a direct subsidiary of CEMEX España, S.A., concluded its initial offering of common shares. CLH’s assets include substantially all of CEMEX’s assets in Colombia, Panama, Costa Rica, Brazil, Guatemala and El Salvador. As of December 31, 2017 and 2016, there is a non-controlling interest in CLH of approximately 26.75% and 26.72%, respectively, of CLH’s outstanding common shares, excluding shares held in treasury (see note 4.4 for certain relevant condensed financial information). Perpetual debentures As of December 31, 2017 and 2016, the balances of the non-controlling interest included US$440 ($7,581) and US$438 ($9,075), respectively, representing the notional amount of perpetual debentures, which exclude any perpetual debentures held by subsidiaries. Interest expense on the perpetual debentures, was included within “Other equity reserves” and amounted to $482 in 2017, $507 in 2016 and $432 in 2015, excluding in all the periods the amount of interest accrued by perpetual debentures held by subsidiaries. CEMEX’s perpetual debentures have no fixed maturity date and there are no contractual obligations for CEMEX to exchange any series of its outstanding perpetual debentures for financial assets or financial liabilities. As a result, these debentures, issued entirely by Special Purpose Vehicles (“SPVs”), qualify as equity instruments and are classified within non-controlling interest, as they were issued by consolidated entities. In addition, subject to certain conditions, CEMEX has the unilateral right to defer indefinitely the payment of interest due on the debentures. The classification of the debentures as equity instruments was made under applicable IFRS. The different SPVs were established solely for purposes of issuing the perpetual debentures and were included in CEMEX’s consolidated financial statements. 159 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information As of December 31, 2017 and 2016, the detail of CEMEX’s perpetual debentures, excluding the perpetual debentures held by subsidiaries, was as follows: 2017 2016 Repurchase Issuer Issuance date Nominal amount Nominal amount option Interest rate (___*:7_(FUNYFQ_ 85;__1YI_ 2F^______ Ó___ Ó___ 9JSYM_FSSN[JWXFW^_ *:7.‘47_____ C8 Capital (SPV) Ltd February 2007 US$135 US$135 Eighth anniversary LIBOR+4.40% C5 Capital (SPV) Ltd 1 December 2006 US$61 US$61 Fifth anniversary LIBOR+4.277% C10 Capital (SPV) Ltd December 2006 US$175 US$175 Tenth anniversary LIBOR+4.71% 1 Under the 2017 Credit Agreement, and previously under the 2014 Credit Agreement, CEMEX is not permitted to call these debentures. 21) EXECUTIVE SHARE-BASED COMPENSATION CEMEX has long-term restricted share-based compensation programs providing for the grant of the Parent Company’s CPOs to a group of eligible J]JHZYN[JX__UZWXZFSY_YT_¥MNHM__SJ¥_(54X_FWJ_NXXZJI_ZSIJW_JFHM_FSSZFQ_UWTLWFR_T[JW_F_XJW[NHJ_UJWNTI_TK_KTZW_^JFWX_ YMJ_Ñ¦TWINSFW^_UWTLWFRÑ§___ The Parent Company’s CPOs of the annual grant (25% of each annual ordinary program) are placed at the beginning of the service period in the executives’ accounts to comply with a one year restriction on sale. Under the ordinary programs, the Parent Company issued new shares for approximately 53.2 million CPOs in 2017, 53.9 million CPOs in 2016 and 49.2 million CPOs in 2015 that were subscribed and pending for payment in the Parent Company’s treasury. As of December 31, 2017, there are approximately 79 million CPOs associated with these annual programs that are potentially expected to be issued in the following years as the executives render services. Moreover, beginning in 2017, with the approval of the Parent Company’s Board of Directors, for a group of key executives, the conditions of the UWTLWFR_¥JWJ_RTINÜªJI_KTW_SJ¥_F¥FWIX_G^_WJIZHNSL_YMJ_XJW[NHJ_UJWNTI_KWTR_KTZW_YT_YMWJJ_^JFWX_FSI_NRUQJRJSYNSL_YMWJJ_FSSZFQ_NSYJWSFQ_FSI_ J]YJWSFQ_UJWKTWRFSHJ_RJYWNHX__¥MNHM_IJUJSINSL_NS_YMJNW_¥JNLMYJI_FHMNJ[JRJSY__RF^_WJXZQY_NS_F_ÜªSFQ_UF^RJSY_NS_YMJ_5FWJSY_(TRUFS^Ñ£X_(54X_FY_ YMJ_JSI_TK_YMJ_YMNWI_^JFW_GJY¥JJS__ _FSI____ _TK_YMJ_YFWLJY_KTW_JFHM_FSSZFQ_UWTLWFR_ YMJ_Ñ¦PJ^_J]JHZYN[JX_UWTLWFRÑ§___)ZWNSL_______ST_(54X_TK_YMJ_ Parent Company were issued under the key executives program. Beginning January 1, 2013, those eligible executives belonging to the operations of CLH and subsidiaries ceased to receive Parent Company’s (54X_FSI_NSXYJFI_XYFWYJI_WJHJN[NSL_XMFWJX_TK_(1-__XMFWNSL_XNLSNÜªHFSYQ^_YMJ_XFRJ_HTSINYNTSX_TK_(*2*=Ñ£X_UQFS_FQXT_T[JW_F_XJW[NHJ_UJWNTI_TK_KTZW_ years. During 2017, 2016 and 2015, CLH physically delivered 172,981 shares, 271,461 shares and 242,618 shares, respectively, corresponding to the vested portion of prior years’ grants, which were subscribed and held in CLH’s treasury. As of December 31, 2017, there are 798,552 shares of CLH associated with these annual programs that are expected to be delivered in the following years as the executives render services. The combined compensation expense related to the programs described above as determined considering the fair value of the awards at the date of grant in 2017, 2016 and 2015, was recognized in the operating results against other equity reserves and amounted to $817, $742 and $655, respectively. The weighted average price per CPO granted during the period was approximately 14.28 pesos in 2017, 13.79 pesos in 2016 and 13.34 pesos in 2015. Moreover, the weighted average price per CLH share granted during the period was 13,077 Colombian pesos in 2017, 13,423 Colombian pesos in 2016 and 14,291 Colombian pesos in 2015. As of December 31, 2017 and 2016, there were no options or commitments to make payments in cash to the executives based on changes in the market price of the Parent Company’s CPO or CLH’s shares. 160 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

4.1 Financial information 22) EARNINGS PER SHARE Basic earnings per share is calculated by dividing net income attributable to ordinary equity holders of the Parent Company (the numerator) by the weighted average number of shares outstanding (the denominator) during the period. Shares that would be issued depending only by the passage of time should be included in the determination of the basic weighted average number of shares outstanding. Diluted earnings per share should reflect in both, the numerator and denominator, the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions, to the extent that such assumption would led to a reduction in basic earnings per share or an increase in basic loss per share, otherwise, the effects of potential shares are not considered because they generate antidilution. The amounts considered for calculations of earnings per share in 2017, 2016 and 2015 were as follows: 2017 2016 2015 Denominator (thousands of shares) Weighted average number of shares outstanding 1 43,107,457 42,211,409 41,491,672 Capitalization of retained earnings 2 1,687,295 1,687,295 1,687,295 Effect of dilutive instruments – mandatorily convertible securities (note 16.2) 3 708,153 708,153 708,153 Weighted average number of shares – basic 45,502,905 44,606,857 43,887,120 Effect of dilutive instruments – share-based compensation (note 21) 3 237,102 226,972 171,747 Effect of potentially dilutive instruments – optionally convertible securities (note 16.2) 3 2,698,600 3,834,458 5,065,605 Weighted average number of shares – diluted 48,438,607 48,668,287 49,124,472 Numerator Net income from continuing operations $ 13,139 14,438 1,096 Less: non-controlling interest net income 1,417 1,173 923 Controlling interest net income from continuing operations 11,722 13,265 173 Plus: after tax interest expense on mandatorily convertible securities 91 119 144 Controlling interest net income from continuing operations – for basic earnings per share calculations 11,813 13,384 317 Plus: after tax interest expense on optionally convertible securities 903 1,079 1,288 Controlling interest net income from continuing operations – for diluted earnings per share calculations $ 12,716 14,463 1,605 Net income from discontinued operations $ 3,499 768 1,028 Basic earnings per share Controlling interest basic earnings per share $ 0.34 0.32 0.03 Controlling interest basic earnings per share from continuing operations 0.26 0.30 0.01 Controlling interest basic earnings per share from discontinued operations 0.08 0.02 0.02 Controlling interest diluted earnings per share 4 Controlling interest diluted earnings per share $ 0.34 0.32 0.03 Controlling interest diluted earnings per share from continuing operations 0.26 0.30 0.01 Controlling interest diluted earnings per share from discontinued operations 0.08 0.02 0.02 1 The weighted average number of shares outstanding in 2016 and 2015 reflects the shares issued as a result of the capitalization of retained earnings declared on March 2016 and March 2015, as applicable (note 20.1). 2 According to resolution of the Parent Company’s stockholders’ meeting on March 30, 2017. 161 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 3 The number of CPOs to be issued under the executive share-based compensation programs, as well as the total amount of CPOs committed for issuance in the future under the mandatorily and optionally convertible securities, are computed from the beginning of the reporting period. The number of shares resulting from the executives’ stock option programs is determined under the inverse treasury method. 4 For 2017, 2016 and 2015, the effects on the denominator and numerator of potential dilutive shares generate antidilution; therefore, there is no change between the reported basic earnings per share and diluted earnings per share. 23) COMMITMENTS 23.1) Guarantees As of December 31, 2017 and 2016, CEMEX, S.A.B. de C.V., had guaranteed loans of certain subsidiaries for US$1,506 ($29,601) and US$2,887 ($59,819), respectively. 23.2) Pledged assets CEMEX transferred to a guarantee trust the shares of its main subsidiaries, including, among others, CEMEX México, S.A. de C.V., New Sunward Holding B.V. and CEMEX España, S.A., and entered into pledge agreements in order to secure payment obligations under the 2017 Credit Agreement (formerly under the 2014 Credit Agreement and the Facilities Agreement) and other debt instruments entered into prior to the date of these agreements (note 16.1) . As of December 31, 2017 and 2016, there are no liabilities secured by property, machinery and equipment. 23.3) Other commitments As of December 31, 2017 and 2016, CEMEX was party of other commitments for several purposes, including the purchase of fuel and energy, ¥MNHM_JXYNRFYJI_KZYZWJ_HFXM_Ü«T¥X_T[JW_YMJNW_RFYZWNY^_FWJ_UWJXJSYJI_NS_STYJ_______&_IJXHWNUYNTS_TK_YMJ_RTXY_XNLSNÜªHFSY_HTSYWFHYX_NX_FX_KTQQT¥X_ • In connection with the beginning of full commercial operations of the Ventika S.A.P.I. de C.V. and the Ventika II S.A.P.I. de C.V. wind farms (jointly Ñ¦;JSYNPFXÑ§__QTHFYJI_NS_YMJ_2J]NHFS_XYFYJ_TK_3ZJ[T_1JTS_¥NYM_F_HTRGNSJI_LJSJWFYNTS_HFUFHNY^_TK_____2JLF¥FYYX_ Ñ¦2<Ñ§___(*2*=_FLWJJI_YT_ acquire a portion of the energy generated by Ventikas for its overall electricity needs in Mexico for a period of 20 years, which began in April 2016. As of December 31, 2017, the estimated annual cost of this agreement is US$27 (unaudited) assuming that CEMEX receives all its energy FQQTHFYNTS__3TSJYMJQJXX__JSJWL^_XZUUQ^_KWTR_¥NSI_XTZWHJ_NX_[FWNFGQJ_NS_SFYZWJ_FSI_ÜªSFQ_FRTZSYX_¥NQQ_GJ_IJYJWRNSJI_HTSXNIJWNSL_YMJ_ÜªSFQ_2<_ effectively received at the agreed prices per unit. Ñ¬_ 4S_/ZQ^___________(*2*=_XNLSJI_F____^JFW_XYWFYJLNH_FLWJJRJSY_¥NYM_.SYJWSFYNTSFQ_‘ZXNSJXX_2FHMNSJX_(TWUTWFYNTS_ Ñ¦.‘2Ñ§__UZWXZFSY_YT_¥MNHM_.‘2_ UWT[NIJX__FRTSL_TYMJWX__IFYF_UWTHJXXNSL_XJW[NHJX_ GFHP_TKÜªHJ__NS_ÜªSFSHJ__FHHTZSYNSL_FSI_MZRFS_WJXTZWHJX _FX_¥JQQ_FX_.SKTWRFYNTS_9JHMSTQTL^_ Ñ¦.9Ñ§__NSKWFXYWZHYZWJ_XJW[NHJX__XZUUTWY_FSI_RFNSYJSFSHJ_TK_.9_FUUQNHFYNTSX_NS_YMJ_HTZSYWNJX_NS_¥MNHM_(*2*=_TUJWFYJX_ • Beginning in February 2010, for its overall electricity needs in Mexico CEMEX agreed with EURUS the purchase a portion of the electric energy generated for a period of no less than 20 years. EURUS is a wind farm with an installed capacity of 250 MW operated by ACCIONA in the Mexican state of Oaxaca. As of December 31, 2017, the estimated annual cost of this agreement is US$71 (unaudited) assuming that CEMEX receives FQQ_NYX_JSJWL^_FQQTHFYNTS__3TSJYMJQJXX__JSJWL^_XZUUQ^_KWTR_¥NSI_XTZWHJ_NX_[FWNFGQJ_NS_SFYZWJ_FSI_ÜªSFQ_FRTZSYX_¥NQQ_GJ_IJYJWRNSJI_HTSXNIJWNSL_YMJ_ ÜªSFQ_2<M_JKKJHYN[JQ^_WJHJN[JI_FY_YMJ_FLWJJI_UWNHJX_UJW_ZSNY_ Ñ¬_ (*2*=_RFNSYFNSX_F_HTRRNYRJSY_NSNYNFYJI_NS_&UWNQ______YT_UZWHMFXJ_YMJ_JSJWL^_LJSJWFYJI_G^_9JWRTJQà¤HYWNHF_IJQ_,TQKT_ Ñ¦9*,Ñ§__ZSYNQ______KTW_NYX_ overall electricity needs in Mexico. As of December 31, 2017, the estimated annual cost of this agreement is US$110 (unaudited) assuming that (*2*=_WJHJN[JX_FQQ_NYX_JSJWL^_FQQTHFYNTS__3TSJYMJQJXX__ÜªSFQ_FRTZSYX_¥NQQ_GJ_IJYJWRNSJI_HTSXNIJWNSL_YMJ_ÜªSFQ_2<L_JKKJHYN[JQ^_WJHJN[JI_FY_YMJ_ agreed prices per unit. 162 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

4.1 Financial information • In regards with the above, CEMEX also committed to supply TEG and another third-party electrical energy generating plant adjacent to TEG all fuel necessary for their operations until the year 2027, equivalent to approximately 1.2 million tons of petroleum coke per year. CEMEX covers its commitments under this agreement acquiring the aforementioned volume of fuel from sources in the international markets and Mexico. • CEMEX OstZement GmbH (“COZ”), CEMEX’s subsidiary in Germany, held a long-term energy supply contract until 2023 with STEAG - Industriekraftwerk Rüdersdorf GmbH (“SIKW”) in connection with the overall electricity needs of CEMEX’s Rüdersdorf plant. Based on the contract, each year COZ has the option to fix in advance the volume of energy in terms of MW that it will acquire from VEN SIKW, with the option to adjust the purchase amount one time on a monthly and quarterly basis. The estimated annual cost of this agreement is approximately US$12 (unaudited) assuming that CEMEX receives all its energy allocation. 23.4) Commitments from employee benefits In some countries, CEMEX has self-insured health care benefits plans for its active employees, which are managed on cost plus fee arrangements with major insurance companies or provided through health maintenance organizations. As of December 31, 2017, in certain plans, CEMEX has established stop-loss limits for continued medical assistance derived from a specific cause (e.g., an automobile accident, illness, etc.) ranging from 23 thousand dollars to 400 thousand dollars. In other plans, CEMEX has established stop-loss limits per employee regardless of the number of events ranging from 100 thousand dollars to 2.5 million dollars. The contingency for CEMEX if all employees qualifying for health care benefits required medical services simultaneously is significantly. However, this scenario is remote. The amount expensed through self-insured health care benefits was US$64 ($1,258) in 2017, US$69 ($1,430) in 2016 and US$69 ($1,189) in 2015. 23.5) Contractual obligations As of December 31, 2017 and 2016, CEMEX had the following contractual obligations: 2017 2016 (U.S. dollars millions) Less than 1 1-3 3-5 More than Obligations year years years 5 years Total Total Long-term debt US$ 798 519 2,411 6,164 9,892 11,379 Finance lease obligations 1 36 87 52 – 175 107 Convertible notes 2 379 527 – – 906 1,205 Total debt and other financial obligations 3 1,213 1,133 2,463 6,164 10,973 12,691 Operating leases 4 109 181 136 68 494 515 Interest payments on debt 5 448 968 809 848 3,073 3,996 Pension plans and other benefits 6 156 307 316 808 1,587 1,414 Purchases of raw materials, fuel and energy 7 649 810 866 2,001 4,326 4,440 Total contractual obligations US$ 2,575 3,399 4,590 9,889 20,453 23,056 $ 50,599 66,790 90,193 194,319 401,901 477,720 1 Represent nominal cash flows. As of December 31, 2017, the NPV of future payments under such leases was US$158 ($3,105), of which, US$79 ($1,552) refers to payments from 1 to 3 years and US$48 ($943) refer to payments from 3 to 5 years. 2 Refers to the components of liability of the convertible notes described in note 16.2 and assumes repayment at maturity and no conversion of the notes. 3 The schedule of debt payments, which includes current maturities, does not consider the effect of any refinancing of debt that may occur during the following years. In the past, CEMEX has replaced its long-term obligations for others of a similar nature. 4 The amounts represent nominal cash flows. CEMEX has operating leases, primarily for operating facilities, cement storage and distribution facilities and certain transportation and other equipment, under which annual rental payments are required plus the payment of certain operating expenses. Rental expense was US$115 ($2,252) in 2017, US$121 ($2,507) in 2016 and US$114 ($1,967) in 2015. 163 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION

4.1 Financial information5 Estimated cash flows on floating rate denominated debt were determined using the floating interest rates in effect as of December 31, 2017 and 2016.6 Represents estimated annual payments under these benefits for the next 10 years (note 18), including the estimate of new retirees during such future years.7 Future payments for the purchase of raw materials are presented on the basis of contractual nominal cash flows. Future nominal payments for energy were estimated for all contractual commitments on the basis of an aggregate average expected consumption per year using the future prices of energy established in the contracts for each period. Future payments also include CEMEX’s commitments for the purchase of fuel.24) LEGAL PROCEEDINGS24.1) Provisions resulting from legal proceedingsCEMEX is involved in various significant legal proceedings, the resolutions of which are deemed probable and imply cash outflows or the delivery of other resources owned by CEMEX. As a result, certain provisions or losses have been recognized in the financial statements, representing the best estimate of the amounts payable or the amount of impaired assets. Therefore, CEMEX believes that it will not make significant expenditure or incur significant losses in excess of the amounts recorded. As of December 31, 2017, the details of the most significant events giving effect to provisions or losses are as follows:• Regarding the Maceo project in Colombia (note 14), in August 2012, CEMEX Colombia signed a memorandum of understanding (“MOU”) with the representative of CI Calizas y Minerales S.A. (“CI Calizas”), which objective was the acquisition and transfer of assets comprising land, the mining concession and the environmental permit, the common shares of the entity Zona Franca Especial Cementera del Magdalena Medio S.A.S. (“Zomam”) (holder of the free trade zone concession), as well as the rights to build the new cement plant. After signing the MOU, a former shareholder of CI Calizas, who presumptively transferred its shares of CI Calizas two years before the signing of the MOU, was linked to a process of expiration of property initiated by Colombia’s Attorney General (the “Attorney General”). Amongst other measures, the AttorneyGeneral ordered the seizure and consequent suspension of the right to dispose the assets subject to the MOU. CEMEX Colombia acquired the shares of Zomam before the beginning of such process; nonetheless, the Attorney General decided to also include them in the action of expiration of property. To protect its interests and defend its rights as a third party acting in good faith and free of guilt, CEMEX Colombia joined the expiration of property process fully cooperating with the Attorney General. In July 2013, CEMEX Colombia signed with the provisional depository of the assets, designed by the Drugs National Department (Dirección Nacional de Estupefacientes, then depository of the affected assets), which functions after its liquidation were assumed by the Administrator of Special Assets (Sociedad de Activos Especiales S.A.S. or the “SAE”), a lease contract for a period of five years, which can be early terminated by the SAE, by means of which CEMEX Colombia was duly authorized to continue with the necessary works for the construction and operation of the plant (the “Lease Contract”). Likewise, the provisional depository granted a mandate to CEMEX Colombia for the same purpose. CEMEX considers that during the course of the different legal processes, the Lease Contract enables it to use and enjoy the land in order to operate the plant. Therefore, CEMEX Colombia plans to negotiate an extension to the Lease Contract before its maturity in July 2018, as well as an agreement that would allow CEMEX Colombia to operate the plant while the expiration of property process is exhausted. In May 2016, the Attorney General resolved to deny the inadmissibility request to the action for expiration of property previously filed by CEMEXColombia, considering that it should broaden the collection of evidential elements and its analysis in order to take a resolution according to law. As of December 31, 2017, given the nature of the process and the several procedural stages, it is estimated that it may take between five and ten years for the issuance of a final resolution in respect to the aforementioned process, which is in its investigation stage awaiting for the defendants’ legal counsel (guardians ad litem) designated by the Attorney General to assume functions in order to open the evidentiary stage.

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Moreover, in connection with Maceo’s project, CEMEX Colombia also engaged the same representative of CI Calizas to also represent in the name and on behalf of CEMEX Colombia in the acquisition of land adjacent to the plant, signing a new memorandum of understanding with this WJUWJXJSYFYN[J_ YMJ_Ñ¦1FSI_24:Ñ§___)ZWNSL_______(*2*=_WJHJN[JI_WJUTWYX_YMWTZLM_NYX_FSTS^RTZX_WJUTWYNSL_QNSJ__WJQFYJI_YT_UTXXNGQJ_IJÜªHNJSHNJX_NS_ the purchase process of land were the cement plant is located. At this respect, CEMEX initiated an investigation and internal audit in accordance ¥NYM_NYX_HTWUTWFYJ_LT[JWSFSHJ_UTQNHNJX_FSI_NYX_HTIJ_TK_JYMNHX__HTSÜªWRNSL_YMJ_NWWJLZQFWNYNJX_NS_XZHM_UWTHJXX_IJXHWNGJI_GJQT¥__&X_F_WJXZQY__TS_ September 23, 2016, CLH and CEMEX Colombia decided to terminate the employment relationship with the Vice President of Planning of CLH FSI_(*2*=_(TQTRGNF__¥NYM_YMJ_1JLFQ_(TZSXJQ_TK_(1-_FSI_(*2*=_(TQTRGNF _FSI_FHHJUYJI_YMJ_WJXNLSFYNTS_TK_YMJ_(MNJK_*]JHZYN[J_4KÜªHJW_TK_(1-_ and President of CEMEX Colombia to facilitate investigations. In order to strengthen the levels of leadership, management and best practices of corporate governance, in October 2016, the Board of Directors of CLH decided to separate the roles of Chairman of the Board of Directors, (MNJK_*]JHZYN[J_4KÜªHJW_TK_(1-_FSI_5WJXNIJSY_TK_(*2*=_(TQTRGNF__FSI_NRRJINFYJQ^_RFIJ_YMJ_WJXUJHYN[J_FUUTNSYRJSYX__2TWJT[JW__UZWXZFSY_YT_F_ WJVZNWJRJSY_TK_(*2*=__8_&_’__IJ_(_;_Ñ£X_&ZINY_(TRRNYYJJ_FSI_TK_(1-Ñ£X_&ZINY_(TRRNXXNTS__FS_FZINY_ÜªWR__J]UJWYX_NS_KTWJSXNH_FZINYX__¥FX_JSLFLJI_ NS_TWIJW_YT_UJWKTWR_FS_NSIJUJSIJSY_NS[JXYNLFYNTS_TK_YMJ_2FHJT_UWTOJHY__&IINYNTSFQQ^__(*2*=_(TQTRGNF_FSI_(1-_JSLFLJI_FS_J]YJWSFQ_ÜªWR_YT_ assist CLH and CEMEX Colombia on the necessary collaboration with the Attorney General and management also engaged a team of external lawyers for its own legal advice. The internal audit initiated in 2016 found that CEMEX Colombia made cash advances and paid interest to this representative for amounts in Colombian pesos equivalent to US$13.4 and US$1.2, respectively, in both cases considering the Colombian peso to U.S. dollar exchange rate as of December 31, 2016. These payments were deposited in the representative’s personal bank account as advance payments under the MOU and the Land MOU. CEMEX Colombia paid interest according to the representative’s instructions. Pursuant to the expiration of property process of the assets subject to the MOU and the failures to legally formalize the purchases under the Land MOU, as of the reporting date, CEMEX Colombia is not the legitimate owner of the aforementioned assets. Considering that payments made by CEMEX Colombia under the MOU and the Land MOU were made in violation of CEMEX’s and CLH’s internal policies; both CLH and CEMEX Colombia reported these facts to the &YYTWSJ^_,JSJWFQ__UWT[NINSL_YMJ_ÜªSINSLX_TGYFNSJI_IZWNSL_YMJ_NS[JXYNLFYNTSX_FSI_NSYJWSFQ_FZINYX__FSI_FQXT_ÜªQJI_F_HQFNR_NS_YMJ_HN[NQ_HTZWYX_FNRNSL_ that all property rights related to the additional land, some of which were assigned to the representative, would be effectively transferred to CEMEX. _‘FXJI_TS_YMJ_NS[JXYNLFYNTS_FSI_NSYJWSFQ_FZINY_WJQFYJI_YT_2FHJTÑ£X_UWTOJHY_RJSYNTSJI_FGT[J__FSI_HTSXNIJWNSL_YMJ_ÜªSINSLX_FSI_YMJ_QJLFQ_TUNSNTSX_ available, in December 2016, CEMEX determined: a) low probability of recovering resources delivered under the different memorandums of understanding for an amount in Colombian pesos equivalent to US$14.3 ($295) recognized as part of investments in progress, were reduced YT__JWT_WJHTLSN_NSL_FS_NRUFNWRJSY_QTXX_KTW_XZHM_FRTZSY_FLFNSXY_Ñ¦4YMJW_J]UJSXJX__SJY Ñ§_G__HJWYFNS_UZWHMFXJX_TK_JVZNURJSY_NSXYFQQJI_NS_YMJ_UQFSY_ ¥JWJ_HTSXNIJWJI_J]JRUY_KTW_;&9_UZWUTXJX_ZSIJW_YMJ_GJSJÜªYX_TK_YMJ_KWJJ_YWFIJ__TSJ__MT¥J[JW__FX_YMTXJ_FXXJYX_¥JWJ_FHYZFQQ^_NSXYFQQJI_TZYXNIJ_ TK_YMJ_KWJJ_YWFIJ__TSJÑ£X_FWJF__YMJ^_QFHP_TK_XZHM_GJSJÜªYX__YMJWJKTWJ__(*2*=_NSHWJFXJI_NS[JXYRJSYX_NS_UWTLWJXX_FLFNSXY_;&9_FHHTZSYX_UF^FGQJ_KTW_ US$9.2 ($191); and c) the cancellation of the balance payable to CI Calizas under the MOU in connection with the acquisition of the assets for US$9.1 ($188) against a reduction in investments in progress. All these amounts considering the Colombian peso to U.S. dollar exchange rate FX_TK_)JHJRGJW___________)ZWNSL_______ST_FIINYNTSFQ_XNLSNÜªHFSY_FIOZXYRJSYX_TW_QTXXJX_MF[J_GJJS_IJYJWRNSJI_NS_WJQFYNTS_YT_YMNX_UWTOJHY__(*2*=_ Colombia determined an initial total budget for the Maceo plant of US$340. As of December 31, 2017, the carrying amount of the project, net of adjustments, is for an amount in Colombian pesos equivalent to $6,543 (US$333), considering the exchange rates as of December 31, 2017. 165 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information In relation to the aforementioned irregularities detected, there is an ongoing criminal investigation by the Attorney General. As of December __________YMJ_NS[JXYNLFYNTS_G^_YMJ_&YYTWSJ^_,JSJWFQ_NX_ÜªSFQN_NSL_NYX_NSNYNFQ_XYFLJ_ NSVZNW^__FSI_F_MJFWNSL_YT_UWJXJSY_HMFWLJX_¥FX_XJY_KTW_/FSZFW^_ 15, 2018, which would initiate the second stage of the proceeding (investigation). CEMEX is neither able to predict the actions that the General Attorney could implement, nor the possibility and degree in which any of these possible actions, including the termination of employment of YMJ_FKTWJRJSYNTSJI_J]JHZYN[JX__HTZQI_MF[J_F_RFYJWNFQ_FI[JWXJ_JKKJHY_TS_(*2*=Ñ£X_WJXZQYX_TK_TUJWFYNTS__QNVZNINY^_TW_ÜªSFSHNFQ_UTXNYNTS__:SIJW_YMJ_ presumption that CEMEX Colombia conducted itself in good faith, and considering that the rest of its investments made in the development of Maceo’s project were made with the consent of the SAE and CI Calizas, such investments are protected by Colombian law, under which, if a person builds on the property of a third party, with full knowledge of such third party, this third party may: a) take ownership of the plant, provided a corresponding indemnity to CEMEX Colombia, or otherwise, b) oblige CEMEX Colombia to purchase the land. Consequently, CEMEX considers that will be able to retain ownership of the plant and other refurbishments made. Nonetheless, had this not be the case, CEMEX Colombia would take all necessary actions to safeguard the project in Maceo. At this respect, there is the possibility that CEMEX considers remote, in which, in the event that the expiration of property over the assets subject to the MOU is ordered in favor of the State, the SAE may decide not to sell the assets to CEMEX Colombia, or, the SAE may elect to maintain ownership of the assets and not extend the Lease Contract. In both cases, under Colombian law, CEMEX Colombia would be entitled to an indemnity for the amount of its incurred investments. However, an adverse resolution FY_YMNX_WJXUJHY_HTZQI_MF[J_F_RFYJWNFQ_FI[JWXJ_JKKJHY_TS_YMJ_(TRUFS^Ñ£X_WJXZQYX_TK_TUJWFYNTSX__QNVZNINY^_TW_ÜªSFSHNFQ_HTSINYNTS_ In October 2016, considering information that also emerged from the audits, CEMEX decided to postpone the start-up of the Maceo plant and YMJ_HTSXYWZHYNTS_TK_YMJ_FHHJXX_WTFI_ZSYNQ_YMJ_KTQQT¥NSL_NXXZJX_¥TZQI_GJ_WJXTQ[JI__ N__YMJWJ_FWJ_UJSINSL_UJWRNYX_WJVZNWJI_YT_ÜªSFQN_J_YMJ_FHHJXX_ road to the Maceo plant, critical infrastructure to assure safety and capacity to transport products from the plant; (ii) CEMEX Colombia has WJVZJXYJI_FS_J]UFSXNTS_YT_YMJ_KWJJ_YWFIJ__TSJ_YT_HT[JW_YMJ_YTYFQNY^_TK_YMJ_HJRJSY_UQFSY_NS_TWIJW_YT_FHHJXX_YMJ_YF]_GJSJÜªYX_TWNLNSFQQ^_UWTOJHYJI_ KTW_YMJ_UQFSY__KTW_¥MNHM_NX_HWNYNHFQ_YMFY_YMJ_WJVZJXY_KTW_UFWYNFQ_FIOZXYRJSY_YT_YMJ_)NXYWNHY_TK_.SYJLWFYJI_2FSFLJRJSY_ Ñ¦).2Ñ§__¥TZQI_GJ_ÜªSFQN_JI_ in July 2018, in order to allow CEMEX Colombia continue with the expansion process of the free trade zone; (iii) it is necessary to modify the environmental license to expand its production to 950 thousand tons of clinker per year as initially planned; as well as to reduce the size of the zoning area in order to avoid any overlap with the DIM; (iv) a subsidiary of CEMEX Colombia holds the environmental permit for project Maceo, however, the transfer of the mining concession was revoked by the Antioquia Mining Government Ministry in December 2013 and reassigned to CI Calizas. As a result, the environmental permit and the mining concession are in custody of different entities, contrary to standard situation; and (v) the mining permit of the plant partially overlaps with the DIM. In connection with these issues, on December 13, 2016, Corantioquia, the regional environmental agency, communicated its negative resolution to CEMEX Colombia’s request to increase the mining concession for up to 950 thousand tons per year, resolution that was appealed by CEMEX Colombia, whom continues working to address these issues as soon as possible, including the zoning and reconciliation of the Maceo project with the DIM, as well as analyzing alternatives for partial extraction of the DIM aiming to evidence the feasibility of achieving the expansion of the proposed activity in the project. Once these alternatives FWJ_NRUQJRJSYJI__(*2*=_(TQTRGNF_¥TZQI_WJHTSXNIJW_XZGRNYYNSL_F_SJ¥_WJVZJXY_KTW_RTINÜªHFYNTS_TK_YMJ_JS[NWTSRJSYFQ_QNHJSXJ_YT_J]UFSI_NYX_ production to the initially envisaged 950 thousand tons. Meanwhile, CEMEX Colombia will limit its activities to those authorized under the currently effective environmental license and mining title. 166 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Ñ¬_ 4S_)JHJRGJW___________NS_YMJ_HTSYJ]Y_TK_F_RFWPJY_NS[JXYNLFYNTS_TUJSJI_NS______FLFNSXY_Üª[J_HJRJSY_HTRUFSNJX_FSI____J]JHZYN[JX_TK_YMTXJ_ companies, including two former executives of CEMEX Colombia for purported practices that limited free competition, and after several processes over the years, the Colombian Superintendence of Industry and Commerce (Superintendencia de Industria y Comercio_TW_YMJ_Ñ¦8.(Ñ§__ NRUTXJI_F_ÜªSFQ_ÜªSJ_YT_(*2*=_(TQTRGNF_KTW_FS_FRTZSY_JVZN[FQJSY_YT_:8___ _____YT_GJ_UFNI_ST_QFYJW_YMFS_/FSZFW^__________HTSXNIJWNSL_(*2*=_ Colombia’s defense strategy. As a result, as of December 31, 2017, CEMEX Colombia recognized a provision for the full amount against “Other J]UJSXJX__SJY_Ñ§_(*2*=_(TQTRGNF_¥NQQ_STY_FUUJFQ_YMJ_WJXTQZYNTS_TK_YMJ_8.(_FSI_NSXYJFI_NSYJSIX_INWJHYQ^_YT_ÜªQJ_FS_FSSZQRJSY_FSI_WJJXYFGQNXMRJSY_ TK_WNLMY_HQFNR_GJKTWJ_YMJ_&IRNSNXYWFYN[J_(TZWY_¥NYMNS_YMJ_KTZW_RTSYMX_FKYJW_YMJ_WJXTQZYNTS__4SHJ_ÜªQJI__YMNX_HQFNR_HTZQI_YFPJ_F_HTSXNIJWFGQJ_ FRTZSY_TK_YNRJ_NS_GJNSL_WJXTQ[JI__&X_TK_)JHJRGJW___________(*2*=_NX_STY_FGQJ_YT_FXXJXX_YMJ_QNPJQNMTTI_KTW_YMJ_WJHT[JW^_TK_YMJ_ÜªSJ_NRUTXJI_G^_ the SIC or the timeframe for the defense process. Ñ¬_ .S_/FSZFW^_______YMJ_5TQNXM_(TRUJYNYNTS_FSI_(TSXZRJWX_5WTYJHYNTS_4KÜªHJ_ YMJ_Ñ¦5WTYJHYNTS_4KÜªHJÑ§__NSNYNFYJI_FS_FSYNYWZXY_UWTHJJINSL_FLFNSXY_ FQQ_HJRJSY_UWTIZHJWX_NS_YMJ_HTZSYW^__NSHQZINSL_(*2*=_5TQXPF_8U__?_T_T_ Ñ¦(*2*=_5TQXPFÑ§__FSI_FSTYMJW_XZGXNINFW^_NS_5TQFSI__FWLZNSL_YMFY_YMJWJ_ was an agreement between all cement producers in Poland regarding prices, market quotas and other sales conditions; and that the producers J]HMFSLJI_NSKTWRFYNTS__FQQ_TK_¥MNHM_QNRNYJI_HTRUJYNYNTS_NS_YMJ_5TQNXM_HJRJSY_RFWPJY__.S_)JHJRGJW_______YMJ_5WTYJHYNTS_4KÜªHJ_NXXZJI_F_WJXTQZYNTS_ NRUTXNSL_ÜªSJX_TS_F_SZRGJW_TK_5TQNXM_HJRJSY_UWTIZHJWX__NSHQZINSL_(*2*=_5TQXPF_KTW_YMJ_UJWNTI_TK______YT_______9MJ_ÜªSJ_NRUTXJI_TS_(*2*=_ Polska, after an appeal before the Polish Court of Competition and Consumer Protection in Warsaw amounts to the equivalent of US$27 ($531). .S_______(*2*=_5TQXPF_ÜªQJI_FS_FUUJFQ_FLFNSXY_YMJ_ÜªSJ_FSI_YMJ_HFXJ_MFX_GJJS_XNSHJ_NS_YMJ_&UUJFQX_(TZWY_NS_<FWXF¥_ YMJ_Ñ¦&UUJFQX_(TZWYÑ§___ 9MJ_FGT[J_RJSYNTSJI_UJSFQY^_NX_STY_JSKTWHJFGQJ_ZSYNQ_YMJ_&UUJFQX_(TZWY_NXXZJX_NYX_ÜªSFQ_OZILRJSY_FSI_NK_YMJ_UJSFQY^_NX_RFNSYFNSJI_NS_YMJ_ÜªSFQ_ resolution, then it will be payable within 14 calendar days of the announcement. As of December 31, 2017, CEMEX had accrued a provision for YMJ_KZQQ_FRTZSY_TK_YMJ_ÜªSJ_RJSYNTSJI_FGT[J_WJUWJXJSYNSL_YMJ_GJXY_JXYNRFYJ_NS_HTSSJHYNTS_¥NYM_YMNX_WJXTQZYNTS__(*2*=_5TQXPF_JXYNRFYJX_YMFY_YMJ_ ÜªSFQ_OZILRJSY_¥NQQ_GJ_NXXZJI_IZWNSL______ • As of December 31, 2017, CEMEX had accrued environmental remediation liabilities in the United Kingdom pertaining to closed and current QFSIÜªQQ_XNYJX_KTW_YMJ_HTSÜªSJRJSY_TK_¥FXYJ__WJUWJXJSYNSL_YMJ_35;_TK_XZHM_TGQNLFYNTSX_KTW_FS_FRTZSY_NS_8YJWQNSL_5TZSIX_JVZN[FQJSY_YT_:8____ ________*]UJSINYZWJ_¥FX_FXXJXXJI_FSI_VZFSYNÜªJI_T[JW_YMJ_UJWNTI_NS_¥MNHM_YMJ_XNYJX_MF[J_YMJ_UTYJSYNFQ_YT_HFZXJ_JS[NWTSRJSYFQ_MFWR__¥MNHM_ was accepted by the regulator as being up to 60 years from the date of closure. The assessed expenditure included the costs of monitoring the sites and the installation, repair and renewal of environmental infrastructure. • As of December 31, 2017, CEMEX had accrued environmental remediation liabilities in the United States for an amount of US$30 ($586), related to: a) the disposal of various materials in accordance with past industry practice, which might currently be categorized as hazardous substances or wastes, and b) the cleanup of sites used or operated by CEMEX, including discontinued operations, regarding the disposal of hazardous substances or waste, either individually or jointly with other parties. Most of the proceedings are in the preliminary stages, and a ÜªSFQ_WJXTQZYNTS_RNLMY_YFPJ_XJ[JWFQ_^JFWX__‘FXJI_TS_YMJ_NSKTWRFYNTS_IJ[JQTUJI_YT_IFYJ__(*2*=Ñ£X_ITJX_STY_GJQNJ[J_YMFY_NY_¥NQQ_GJ_WJVZNWJI_YT_XUJSI_ XNLSNÜªHFSY_XZRX_TS_YMJXJ_RFYYJWX_NS_J]HJXX_TK_YMJ_FRTZSYX_UWJ[NTZXQ^_WJHTWIJI__9MJ_ZQYNRFYJ_HTXY_YMFY_RF^_GJ_NSHZWWJI_YT_WJXTQ[J_YMJXJ_ environmental issues cannot be assured until all environmental studies, investigations, remediation work and negotiations with, or litigation against, potential sources of recovery have been completed. 167 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 24.2) Other contingencies from legal proceedings CEMEX is involved in various legal proceedings, which have not required the recognition of accruals, considering that the probability of loss is less than probable or remote. In certain cases, a negative resolution may represent the revocation of an operating license, in which case, CEMEX may experience a decrease in future revenues, an increase in operating costs or a loss. Nonetheless, until all stages in the procedures are exhausted NS_JFHM_UWTHJJINSL__(*2*=_HFSSTY_FXXZWJ_YMJ_FHMNJ[JRJSY_TK_F_ÜªSFQ_KF[TWFGQJ_WJXTQZYNTS__&X_TK_)JHJRGJW___________YMJ_RTXY_XNLSNÜªHFSY_J[JSYX_ ¥NYM_F_VZFSYNÜªHFYNTS_TK_YMJ_UTYJSYNFQ_QTXX__¥MJS_NY_NX_IJYJWRNSFGQJ_FSI_¥TZQI_STY_NRUFNW_YMJ_TZYHTRJ_TK_YMJ_WJQJ[FSY_UWTHJJINSL__¥JWJ_FX_KTQQT¥X_ Ñ¬_ .S_)JHJRGJW_______(*2*=__8_&_’__IJ_(_;__WJHJN[JI_XZGUTJSFX_KWTR_YMJ_:SNYJI_8YFYJX_8JHZWNYNJX_FSI_*]HMFSLJ_(TRRNXXNTS_ Ñ¦8*(Ñ§__XJJPNSL_ information that may allow determining whether there are violations of the U.S. Foreign Corrupt Practices Act in connection with the Maceo project. These subpoenas do not mean that the SEC has concluded that CEMEX violated the law. The payments made by CEMEX Colombia in connection with Maceo’s project under the MOU and the MOU with the Representative described above, were made to non-governmental individuals in breach of CEMEX and CLH established protocols. CEMEX has been cooperating with the SEC and the Attorney General and intends to continue cooperating fully with the SEC and the Attorney General. It is possible that the United States Department of Justice or investigatory entities in other jurisdictions may also open investigations into this matter. To the extent they do so, CEMEX intends to cooperate fully with those inquiries, as well. As of December 31, 2017, CEMEX is neither able to predict the duration, scope, or outcome of the SEC investigation or any other investigation that may arise, nor has elements to determine the probability that the SEC’s investigation results may or may not have F_RFYJWNFQ_FI[JWXJ_NRUFHY_TS_NYX_HTSXTQNIFYJI_WJXZQYX_TK_TUJWFYNTSX__QNVZNINY^_TW_ÜªSFSHNFQ_UTXNYNTS_ Ñ¬_ .S_8JUYJRGJW_______(*2*=_*XUFà¤”F_4UJWFHNTSJX__8_1_:__ Ñ¦(*2*=_*XUFà¤”F_4UJWFHNTSJXÑ§___F_XZGXNINFW^_TK_(*2*=_NS_8UFNS__NS_YMJ_HTSYJ]Y_TK_F_ market investigation initiated in 2014 for alleged anticompetitive practices in 2009 for the cement market and the years 2008, 2009, 2012, _____FSI______KTW_YMJ_WJFI^_RN]_RFWPJY__¥FX_STYNÜªJI_TK_F_WJXTQZYNTS_G^_YMJ_3FYNTSFQ_2FWPJYX_FSI_(TRUJYNYNTS_(TRRNXXNTS_ Comisión Nacional de los Mercados y la Competencia_TW_YMJ_Ñ¦(32(Ñ§__WJVZNWNSL_YMJ_UF^RJSY_TK_F_ÜªSJ_KTW_Ó__ :8__TW_______(*2*=_*XUFà¤”F_4UJWFHNTSJX_ FUUJFQJI_YMJ_ÜªSJ_FSI_WJVZJXYJI_YMJ_XZXUJSXNTS_TK_UF^RJSY_GJKTWJ_YMJ_3FYNTSFQ_(TZWY_ Audiencia Nacional), which granted the requested XZXUJSXNTS _XZGOJHY_YT_NXXZFSHJ_TK_F_GFSP_LZFWFSYJJ_KTW_YMJ_UWNSHNUFQ_FRTZSY_TK_YMJ_XFSHYNTS__9MJ_(32(_¥FX_STYNÜªJI__&X_TK_)JHJRGJW_____ 2017, CEMEX do not expect that an adverse resolution to this matter would have a material adverse impact on our results of operations, QNVZNINY^_FSI_ÜªSFSHNFQ_HTSINYNTS_ Ñ¬_ .S_+JGWZFW^_______YMJ_*L^UYNFS_9F]_&ZYMTWNY^_WJVZJXYJI_&XXNZY_(JRJSY_(TRUFS^_ Ñ¦&((Ñ§___F_XZGXNINFW^_TK_(*2*=_NS_*L^UY__YMJ_UF^RJSY_TK_F_ development levy on clay applied to the Egyptian cement industry in amounts equivalent as of December 31, 2017 of US$18 ($357) for the period from May 5, 2008 to November 30, 2011. In March 2014, ACC appealed the levy and obtained a favorable resolution by the Ministerial Committee for Resolution of Investment Disputes, which instructed the Egyptian Tax Authority to cease claiming ACC the aforementioned payment of the levy on clay. It was further decided that the levy on clay should not be imposed on imported clinker. Nonetheless, in May 2016, the Egyptian Tax Authority challenged ACC´s right to cancel the levy on clay before the North Cairo Court, which referred the cases to Cairo’s Administrative Judiciary Court. As of December 31, 2017, a session has been scheduled for February 5, 2018 in order to review the two referred cases. At this stage, as of December 31, 2017, CEMEX does not expect a material adverse impact due to this matter in its results of operations, QNVZNINY^_TW_ÜªSFSHNFQ_UTXNYNTS_ 168 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Ñ¬_ .S_8JUYJRGJW_______NS_HTSSJHYNTS_¥NYM_F_QF¥XZNY_XZGRNYYJI_YT_F_ÜªWXY_NSXYFSHJ_HTZWY_NS_&XXNZY__*L^UY_NS_______YMJ_ÜªWXY_NSXYFSHJ_HTZWY_TK_&XXNZY_ NXXZJI_F_WJXTQZYNTS_NS_TWIJW_YT_SZQQNK^_YMJ_8MFWJ_5ZWHMFXJ_&LWJJRJSY_ YMJ_Ñ¦85&Ñ§__UZWXZFSY_YT_¥MNHM_(*2*=_FHVZNWJI_NS______F_HTSYWTQQNSL_NSYJWJXY_ NS_&XXNZY_(JRJSY_(TRUFS^_ Ñ¦&((Ñ§___.S_FIINYNTS__IZWNSL______FSI_______QF¥XZNYX_XJJPNSL__FRTSL_TYMJW_YMNSLX__YMJ_FSSZQRJSY_TK_YMJ_85&_¥JWJ_ ÜªQJI_G^_INKKJWJSY_UQFNSYNKKX__NSHQZINSL____KTWRJW_JRUQT^JJX_TK_&((__GJKTWJ_(FNWTÑ£X_8YFYJ_(TZSHNQ__&KYJW_XJ[JWFQ_FUUJFQX__MJFWNSLX_FSI_WJXTQZYNTSX_ T[JW_YMJ_^JFWX__FX_TK_)JHJRGJW___________NS_HTSSJHYNTS_¥NYM_YMJ_ÜªWXY_QF¥XZNY_TK_______¥FX_WJKJWWJI_G^_YMJ_&XXNZYÑ£X_&IRNSNXYWFYN[J_/ZINHNFW^_(TZWY_ to the Commissioners’ Division to render the corresponding opinion; whereas in respect to the second lawsuits, the cases are held in Cairo’s 7th Circuit State Council Administrative Judiciary Court awaiting also for the High Constitutional Court to pronounce itself in regards to the HMFQQJSLJX_FLFNSXY_YMJ_HTSXYNYZYNTSFQNY^_TK_1F¥_________ÜªQJI_G^_YMJ_UQFNSYNKKX__¥MNHM_UWTYJHYX_(*2*=Ñ£X_NS[JXYRJSYX_NS_*L^UY__9MJXJ_RFYYJWX_FWJ_ complex and take several years to be resolved. As of December 31, 2017, CEMEX is not able to assess the likelihood of an adverse resolution regarding these lawsuits nor is able to assess if the Constitutional Court will dismiss Law 32/2014, but, regarding the lawsuits, if adversely WJXTQ[JI__(*2*=_ITJX_STY_GJQNJ[J_YMJ_WJXTQZYNTSX_NS_YMJ_ÜªWXY_NSXYFSHJ_¥TZQI_MF[J_FS_NRRJINFYJ_RFYJWNFQ_FI[JWXJ_NRUFHY_TS_(*2*=Ñ£X_TUJWFYNTSX__ QNVZNINY^_FSI_ÜªSFSHNFQ_HTSINYNTS__-T¥J[JW__NK_(*2*=_J]MFZXYX_FQQ_QJLFQ_WJHTZWXJX_F[FNQFGQJ__F_ÜªSFQ_FI[JWXJ_WJXTQZYNTS_TK_YMJXJ_QF¥XZNYX__TW_NK_YMJ_ Constitutional Court dismisses Law 32/2014, this could adversely impact the ongoing matters regarding the SPA, which could have a material FI[JWXJ_NRUFHY_TS_(*2*=Ñ£X_TUJWFYNTSX__QNVZNINY^_FSI_ÜªSFSHNFQ_HTSINYNTS_ Ñ¬_ .S_______NS_HTSSJHYNTS_¥NYM_F_HTSYWFHY_JSYJWJI_NSYT_NS______ YMJ_Ñ¦6ZFWW^_(TSYWFHYÑ§__G^_(*2*=_,WFSZQFYX_7Mà¤—SJ_2à¤INYJWWFSà¤J_ Ñ¦(*2*=_,72Ñ§___ TSJ_TK_(*2*=Ñ£X_XZGXNINFWNJX_NS_+WFSHJ__¥NYM_8(._1F_6ZNSTSNJWJ_ Ñ¦8(.Ñ§__UZWXZFSY_YT_¥MNHM_(*2*=_,72_MFX_IWNQQNSL_WNLMYX_NS_TWIJW_YT_J]YWFHY_ WJXJW[JX_FSI_IT_VZFWW^_WJRJINFYNTS_FY_F_VZFWW^_NS_YMJ_7Mà¤—SJ_WJLNTS_TK_+WFSHJ__8(._ÜªQJI_F_HQFNR_FLFNSXY_(*2*=_,72_KTW_GWJFHM_TK_YMJ_6ZFWW^_ Contract, requesting the rescission of such contract and damages plus interest for an amount in euros equivalent to US$66 ($1,297), arguing YMFY_(*2*=_,72_UFWYNFQQ^_ÜªQQJI_YMJ_VZFWW^_FQQJLJIQ^_NS_GWJFHM_TK_YMJ_YJWRX_TK_YMJ_6ZFWW^_(TSYWFHY__&KYJW_RFS^_MJFWNSLX__WJXTQZYNTSX_FSI_FUUJFQX_ over the years, as of December 31, 2017, the case is held in the appeals court in Lyon, France, where a judgment is expected by mid 2018. As of December 31, 2017, CEMEX considers that an adverse resolution on this matter would not have a material adverse impact on CEMEX’s results TK_TUJWFYNTSX__QNVZNINY^_FSI_ÜªSFSHNFQ_HTSINYNTS_ Ñ¬_ .S_/ZSJ_______TSJ_TK_(*2*=Ñ£X_XZGXNINFWNJX_NS_.XWFJQ_FSI_YMWJJ_TYMJW_HTRUFSNJX_¥JWJ_STYNÜªJI_FGTZY_F_HQFXX_FHYNTS_XZNYX_ÜªQJI_G^_F_MTRJT¥SJW_ who built his house with concrete supplied by the defendants in October 2010. The class action argues that the concrete supplied to him did not meet with the Israeli ready-mix strength standard requirements and that as a result CEMEX acted unlawfully toward all of its customers ¥MT_WJHJN[JI_HTSHWJYJ_YMFY_INI_STY_HTRUQ^_¥NYM_XZHM_XYFSIFWI_WJVZNWJRJSYX__HFZXNSL_ÜªSFSHNFQ_FSI_STS_ÜªSFSHNFQ_IFRFLJX_YT_YMTXJ_HZXYTRJWX__ including the plaintiff. CEMEX presumes that the class action would represent the claim of all the clients who purchased the alleged nonconforming concrete from its subsidiary in Israel during the past 7 years, the limitation period according to applicable laws in Israel. The damages that could be sought are equivalent to US$80 ($1,564). After several hearings to present evidence from all parties over the years and the resolution of the court to join together all claims against all four companies in order to simplify and shorten court proceedings, as of )JHJRGJW___________YMJ_UWTHJJINSLX_FWJ_ÜªSFQN_NSL_YMJ_J[NIJSYNFW^_XYFLJ__FSI_(*2*=Ñ£X_XZGXNINFW^_NS_.XWFJQ_NX_STY_FGQJ_YT_FXXJXX_YMJ_QNPJQNMTTI_TK_ the class action application being approved or, if approved, of an adverse result, such as an award for damages in the full amount that could be sought, but if adversely resolved CEMEX considers that an adverse resolution on this matter would not have a material adverse impact on its WJXZQYX_TK_TUJWFYNTSX__QNVZNINY^_TW_ÜªSFSHNFQ_HTSINYNTS_ 169 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Ñ¬_ .S_/ZSJ_______YMJ_)NXYWNHY_TK_‘TLTYFÑ£X_*S[NWTSRJSYFQ_8JHWJYFW^_ YMJ_Ñ¦*S[NWTSRJSYFQ_8JHWJYFW^Ñ§___TWIJWJI_YMJ_XZXUJSXNTS_TK_(*2*=_(TQTRGNFÑ£X_ mining activities at El Tunjuelo quarry, located in Bogota, sealed off the mine to machinery and prohibited the removal of aggregates inventory, as well as those of other aggregates producers in the same area. The Environmental Secretary alleged that during the past 60 years, CEMEX Colombia and the other companies have illegally changed the course of the Tunjuelo River, have used the percolating waters without permission and have improperly used the edge of the river for mining activities. CEMEX Colombia responded to the injunction by requesting that it be revoked based on the fact that the mining activities at El Tunjuelo quarry are supported by the authorizations required by the applicable environmental laws and that all the environmental impact statements submitted by CEMEX Colombia have been reviewed and permanently authorized by the 2NSNXYW^_TK_*S[NWTSRJSY_FSI_8ZXYFNSFGQJ_)J[JQTURJSY__&QYMTZLM_YMJWJ_NX_STY_FS_TKÜªHNFQ_VZFSYNÜªHFYNTS_TK_YMJ_UTXXNGQJ_ÜªSJ__YMJ_*S[NWTSRJSYFQ_ 8JHWJYFW^_MFX_UZGQNHQ^_IJHQFWJI_YMFY_YMJ_ÜªSJ_HTZQI_GJ_ZU_YT_YMJ_JVZN[FQJSY_TK_:8____ ________&X_TK_)JHJRGJW___________(*2*=_NX_STY_FGQJ_YT_ assess the likelihood of an adverse result or potential damages which could be borne by CEMEX Colombia. An adverse resolution on this case HTZQI_MF[J_F_RFYJWNFQ_FI[JWXJ_NRUFHY_TS_(*2*=Ñ£X_WJXZQYX_TK_TUJWFYNTSX__QNVZNINY^_TW_ÜªSFSHNFQ_HTSINYNTS_ In connection with the legal proceedings presented in notes 24.1 and 24.2, the exchange rates as of December 31, 2017 used by CEMEX to convert YMJ_FRTZSYX_NS_QTHFQ_HZWWJSH^_YT_YMJNW_JVZN[FQJSYX_NS_ITQQFWX_¥JWJ_YMJ_TKÜªHNFQ_HQTXNSL_J]HMFSLJ_WFYJX_TK______5TQNXM__QTY^_UJW_ITQQFW_______*ZWT_UJW_ dollar, 0.74 British pound sterling per dollar, 2,984.0 Colombian pesos per dollar and 3.47 Israelite shekel per dollar. In addition to the legal proceedings described above in notes 24.1 and 24.2, as of December 31, 2017, CEMEX is involved in various legal proceedings of minor impact that have arisen in the ordinary course of business. These proceedings involve: 1) product warranty claims; 2) claims KTW_JS[NWTSRJSYFQ_IFRFLJX ____NSIJRSNÜªHFYNTS_HQFNRX_WJQFYNSL_YT_FHVZNXNYNTSX_TW_IN[JXYNYZWJX ____HQFNRX_YT_WJ[TPJ_UJWRNYX_FSI_TW_HTSHJXXNTSX _FSI_ 5) other diverse civil actions. CEMEX considers that in those instances in which obligations have been incurred, CEMEX has accrued adequate UWT[NXNTSX_YT_HT[JW_YMJ_WJQFYJI_WNXPX__(*2*=_GJQNJ[JX_YMJXJ_RFYYJWX_¥NQQ_GJ_WJXTQ[JI_¥NYMTZY_FS^_XNLSNÜªHFSY_JKKJHY_TS_NYX_GZXNSJXX__ÜªSFSHNFQ_UTXNYNTS_ or results of operations. In addition, in relation to certain ongoing legal proceedings, CEMEX is sometimes able to make and disclose reasonable estimates of the expected loss or range of possible loss, as well as disclose any provision accrued for such loss, but for a limited number of ongoing legal proceedings, CEMEX may not be able to make a reasonable estimate of the expected loss or range of possible loss or may be able to do so but believes that disclosure of such information on a case-by-case basis would seriously prejudice CEMEX’s position in the ongoing legal proceedings or in any related settlement discussions. Accordingly, in these cases, CEMEX has disclosed qualitative information with respect to the nature and characteristics of the contingency, but has not disclosed the estimate of the range of potential loss. 170 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information 25) RELATED PARTIES &QQ_XNLSNÜªHFSY_GFQFSHJX_FSI_YWFSXFHYNTSX_GJY¥JJS_YMJ_JSYNYNJX_YMFY_HTSXYNYZYJ_YMJ_(*2*=_LWTZU_MF[J_GJJS_JQNRNSFYJI_NS_YMJ_UWJUFWFYNTS_TK_YMJ_ HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX__9MJXJ_GFQFSHJX_¥NYM_WJQFYJI_UFWYNJX_WJXZQYJI_UWNRFWNQ^_KWTR__ N__YMJ_XFQJ_FSI_UZWHMFXJ_TK_LTTIX_GJY¥JJS_ group entities; (ii) the sale and/or acquisition of subsidiaries’ shares within the CEMEX group; (iii) the invoicing of administrative services, rentals, trademarks and commercial name rights, royalties and other services rendered between group entities; and (iv) loans between related parties. Transactions between group entities are conducted on arm’s length terms based on market prices and conditions. When market prices and/or market conditions are not readily available, CEMEX conducts transfer pricing studies in the countries in which it operates to assure compliance with regulations applicable to transactions between related parties. 9MJ_IJÜªSNYNTS_TK_WJQFYJI_UFWYNJX_NSHQZIJX_JSYNYNJX_TW_NSIN[NIZFQX_TZYXNIJ_YMJ_(*2*=_LWTZU__¥MNHM__UZWXZFSY_YT_YMJNW_WJQFYNTSXMNU_¥NYM_(*2*=__RF^_ take advantage of being in a privileged situation. Likewise, this applies to cases in which CEMEX may take advantage of such relationships and TGYFNS_GJSJÜªYX_NS_NYX_ÜªSFSHNFQ_UTXNYNTS_TW_TUJWFYNSL_WJXZQYX__(*2*=Ñ£X_YWFSXFHYNTSX_¥NYM_WJQFYJI_UFWYNJX_FWJ_J]JHZYJI_ZSIJW_RFWPJY_HTSINYNTSX_ For the years ended December 31, 2017, 2016 and 2015, in ordinary course of business, CEMEX has entered into transactions with related parties KTW_YMJ_XFQJ_TK_UWTIZHYX__UZWHMFXJ_TK_XJW[NHJX_TW_YMJ_QJFXJ_TK_FXXJYX__FQQ_TK_¥MNHM_FWJ_STY_XNLSNÜªHFSY_KTW_(*2*=_FSI_YMJ_WJQFYJI_UFWY^__FWJ_NSHZWWJI_ KTW_STS_XNLSNÜªHFSY_FRTZSYX_FSI_FWJ_J]JHZYJI_ZSIJW_RFWPJY_YJWRX_FSI_HTSINYNTSX_KTQQT¥NSL_YMJ_XFRJ_HTRRJWHNFQ_UWNSHNUQJX_FSI_FZYMTWN_FYNTSX_ FUUQNJI_YT_TYMJW_YMNWI_UFWYNJX__9MJXJ_NIJSYNÜªJI_YWFSXFHYNTSX_FWJ_FUUWT[JI_FSSZFQQ^_G^_YMJ_5FWJSY_(TRUFS^Ñ£X_‘TFWI_TK_)NWJHYTWX__3TSJ_TK_YMJXJ_ transactions are material to be disclosed separately. In addition, for the years ended December 31, 2017, 2016 and 2015, the aggregate amount of compensation of CEMEX board of directors, including alternate directors, and top management executives, was US$47 ($887), US$43 ($802) and US$36 ($579), respectively. Of these amounts, US$35 ($661) in 2017, US$32 ($595) in 2016, US$25 ($402) in 2015, was paid as base compensation plus performance bonuses, including pension and UTXY_JRUQT^RJSY_GJSJÜªYX__.S_FIINYNTS__:8___ _____NS_______:8___ _____NS______FSI_:8___ _____NS______TK_YMJ_FLLWJLFYJ_FRTZSY_NS_JFHM_ year, corresponded to allocations of CPOs under CEMEX’s executive share-based compensation programs. 26) SUBSEQUENT EVENTS 4S_/FSZFW^__________NS_HTSSJHYNTS_¥NYM_YMJ_ÜªSJ_FXXTHNFYJI_¥NYM_YMJ_RFWPJY_NS[JXYNLFYNTS_NRUTXJI_G^_YMJ_8.(_NS_(TQTRGNF_KTW_:8___ ______ (*2*=_(TQTRGNF_RFIJ_YMJ_UF^RJSY_TK_XZHM_ÜªSJ__(*2*=_(TQTRGNF_¥NQQ_STY_FUUJFQ_YMJ_WJXTQZYNTS_TK_YMJ_8.(_FSI_NSXYJFI_NSYJSIX_INWJHYQ^_YT_ÜªQJ_FS_ FSSZQRJSY_FSI_WJJXYFGQNXMRJSY_TK_WNLMY_HQFNR_GJKTWJ_YMJ_&IRNSNXYWFYN[J_(TZWY_¥NYMNS_YMJ_KTZW_RTSYMX_FKYJW_YMJ_WJXTQZYNTS__4SHJ_ÜªQJI__YMNX_HQFNR_ could take a considerable amount of time in being resolved. As of December 31, 2017, CEMEX is not able to assess the likelihood for the recovery TK_YMJ_ÜªSJ_NRUTXJI_G^_YMJ_8.(_TW_YMJ_YNRJKWFRJ_KTW_YMJ_IJKJSXJ_UWTHJXX_ 4S_/FSZFW^___________NS_HTSSJHYNTS_¥NYM_YMJ_YJSIJW_TKKJW_TK_YMJ_/FSZFW^______3TYJX__YMJ_5FWJSY_(TRUFS^_NSHZWWJI_F_UF^RJSY_TK_Ó_____¥MNHM_NSHQZIJI__ YMJ_UWNSHNUFQ_FRTZSY_TZXYFSINSL_TK_YMJ_STYJX_TK_Ó____UQZX_YMJ_UWJRNZR_TKKJW_FSI_YMJ_FHHWZJI_NSYJWJXY_FY_YMJ_IFYJ_TK_WJIJRUYNTS_ STYJ_______ 4S_/FSZFW^___________(*2*=_*XUFà¤”F_¥FX_STYNÜªJI__GFXJI_TS_F_WJXTQZYNTS_IFYJI_/FSZFW^___________YMFY_YMJ_3FYNTSFQ_(TZWY_ Audiencia Nacional) FHHJUYJI_YMJ_WJVZJXY_KTW_XZXUJSXNTS_TK_UF^RJSY_TK_YMJ_ÜªSJ_XZGRNYYJI_G^_(*2*=_*XUFà¤”F__NS_HTSSJHYNTS_¥NYM_YMJ_YF]_UWTHJJINSL_NS_8UFNS_WJQFYJI_ to the review of tax loss carryforwards reported between 2006 and 2009 (note 19.4), subject to the presentation of a satisfactory guarantee in YMJ_FRTZSY_TK_YMJ_UWTUTXJI_ÜªSJ_UQZX_NSYJWJXY_GJKTWJ_2FWHM___________(*2*=_*XUFà¤”F_J]UJHYX_YT_XZHHJXXKZQQ^_HTRUQJYJ_FS_FHHJUYFGQJ_KTWR_FSI_ amount of the required guarantee before the stipulated due date. 171 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-45 4.1 Financial information 27) MAIN SUBSIDIARIES The main subsidiaries as of December 31, 2017 and 2016 were as follows: % Interest Subsidiary Country 2017 2016 CEMEX México, S. A. de C.V. 1 Mexico 100.0 100.0 CEMEX España, S.A. 2 Spain 99.9 99.9 CEMEX, Inc. United States of America 100.0 100.0 CEMEX Latam Holdings, S.A. 3 Spain 73.2 73.3 CEMEX (Costa Rica), S.A. Costa Rica 99.1 99.1 CEMEX Nicaragua, S.A. Nicaragua 100.0 100.0 Assiut Cement Company Egypt 95.8 95.8 CEMEX Colombia S.A. 4 Colombia 99.9 99.9 Cemento Bayano, S.A. 5 Panama 100.0 100.0 CEMEX Dominicana, S.A. Dominican Republic 100.0 100.0 Trinidad Cement Limited Trinidad and Tobago 69.8 –CEMEX de Puerto Rico Inc. Puerto Rico 100.0 100.0 CEMEX France Gestion (S.A.S.) France 100.0 100.0 CEMEX Holdings Philippines ,Inc. 6 Philippines 55.0 55.0 Solid Cement Corporation 6 Philippines 100.0 100.0 APO Cement Corporation 6 Philippines 100.0 100.0 CEMEX Holdings (Malaysia) Sdn Bhd Malaysia 100.0 100.0 CEMEX U.K. United Kingdom 100.0 100.0 CEMEX Deutschland, AG. Germany 100.0 100.0 CEMEX Czech Republic, s.r.o. Czech Republic 100.0 100.0 CEMEX Polska sp. Z.o.o. Poland 100.0 100.0 CEMEX Holdings (Israel) Ltd. Israel 100.0 100.0 CEMEX SIA Latvia 100.0 100.0 CEMEX Topmix LLC, CEMEX Supermix LLC and CEMEX Falcon LLC 7 United Arab Emirates 100.0 100.0 Neoris N.V. 8 The Netherlands 99.8 99.8 CEMEX International Trading, LLC 9 United States of America 100.0 100.0 Transenergy, Inc. 10 United States of America 100.0 100.0 1 CEMEX México, S.A. de C.V. is the indirect holding company of CEMEX España, S.A. and subsidiaries. 2 CEMEX España, S.A. is the indirect holding company of most of CEMEX’s international operations. 3 The interest reported excludes own shares held at CLH’s treasury. CLH, entity incorporated in Spain, trades its ordinary shares in the Colombian Stock Exchange under the symbol CLH, is the indirect holding company of CEMEX’s operations in Colombia, Panama, Costa Rica, Guatemala, Nicaragua, El Salvador and Brazil (note 20.4) . 4 Represents our 99.7% and 98.9% interest in ordinary and preferred shares, respectively. 5 Includes a 0.515% interest held on Cemento Bayano’s treasury. 6 Represents CHP direct and indirect interest. CEMEX’s operations in the Philippines are conducted through CHP, subsidiary incorporated in the Philippines which since July 2016 trades its ordinary shares in the Philippines Stock Exchange under the symbol CHP (note 20.4) . 7_(*2*=_T¥SX_F___ _JVZNY^_NSYJWJXY_NS_JFHM_TK_YMJXJ_JSYNYNJX_FSI_MTQIX_YMJ_WJRFNSNSL___ _TK_YMJ_JHTSTRNH_GJSJÜªYX__YMWTZLM_FLWJJRJSYX_¥NYM_TYMJW_XMFWJMTQIJWX_ 8 Neoris N.V. is the holding company of the entities involved in the sale of information technology solutions and services. 9 CEMEX International Trading, LLC is involved in the international trading of CEMEX’s products. 10 Formerly named Gulf Coast Portland Cement Co., it is engaged in the procurement and trading of fuels, such as coal and petroleum coke, used in certain operations of CEMEX’s. 172 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information INDEPENDENT AUDITORS’ REPORT To the Board of Directors and Stockholders CEMEX, S.A.B. de C.V. Opinion <J_MF[J_FZINYJI_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_TK_(*2*=__8_&_’__IJ_(_;__FSI_XZGXNINFWNJX_ Ñ¦YMJ_,WTZUÑ§___¥MNHM_HTRUWNXJ_YMJ_HTSXTQNIFYJI_ XYFYJRJSYX_TK_ÜªSFSHNFQ_UTXNYNTS_FX_FY_)JHJRGJW__________FSI_______YMJ_HTSXTQNIFYJI_XYFYJRJSYX_TK_TUJWFYNTSX__HTRUWJMJSXN[J_NSHTRJ__HMFSLJX_ NS_XYTHPMTQIJWXÑ£_JVZNY^_FSI_HFXM_Ü«T¥X_KTW_YMJ_^JFWX_JSIJI_)JHJRGJW________________FSI_______FSI_STYJX__HTRUWNXNSL_XNLSNÜªHFSY_FHHTZSYNSL_ policies and other explanatory information. .S_TZW_TUNSNTS__YMJ_FHHTRUFS^NSL_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_UWJXJSY_KFNWQ^__NS_FQQ_RFYJWNFQ_WJXUJHYX__YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_UTXNYNTS_TK_ YMJ_,WTZU_FX_FY_)JHJRGJW__________FSI_______FSI_TK_NYX_HTSXTQNIFYJI_ÜªSFSHNFQ_UJWKTWRFSHJ_FSI_NYX_HTSXTQNIFYJI_HFXM_Ü«T¥X_KTW_YMJ_^JFWX_JSIJI_ December 31, 2017, 2016 and 2015 in accordance with International Financial Reporting Standards (IFRS). Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the ,WTZU_NS_FHHTWIFSHJ_¥NYM_YMJ_JYMNHFQ_WJVZNWJRJSYX_YMFY_FWJ_WJQJ[FSY_YT_TZW_FZINY_TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_NS_2J]NHT_FSI_¥J_MF[J_ KZQÜªQQJI_TZW_TYMJW_JYMNHFQ_WJXUTSXNGNQNYNJX_NS_FHHTWIFSHJ_¥NYM_YMJXJ_WJVZNWJRJSYX__<J_GJQNJ[J_YMFY_YMJ_FZINY_J[NIJSHJ_¥J_MF[J_TGYFNSJI_NX_XZKÜªHNJSY_ and appropriate to provide a basis for our opinion. Key Audit Matters 0J^_FZINY_RFYYJWX_FWJ_YMTXJ_RFYYJWX_YMFY__NS_TZW_UWTKJXXNTSFQ_OZILRJSY__¥JWJ_TK_RTXY_XNLSNÜªHFSHJ_NS_TZW_FZINY_TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_ XYFYJRJSYX_TK_YMJ_HZWWJSY_UJWNTI__9MJXJ_RFYYJWX_¥JWJ_FIIWJXXJI_NS_YMJ_HTSYJ]Y_TK_TZW_FZINY_TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_FX_F_¥MTQJ__ and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 173 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information EVALUATION OF GOODWILL IMPAIRMENT 8JJ_3TYJ______YT_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX How the matter was addressed in our audit The key audit matter 9MJ_,WTZUÑ£X_GFQFSHJ_XMJJY_NSHQZIJX_F_XNLSNÜªHFSY_FRTZSY_TK_LTTI¥NQQ_ Our audit procedures included considering the consistency and appropriateness of the allocation of goodwill to groups of CGUs, as arising mainly from historic acquisitions which requires conducting an well as testing the Group’s methodology and assumptions used in annual evaluation of its recoverability. UWJUFWNSL_INXHTZSYJI_HFXM_Ü«T¥_RTIJQX_YMWTZLM_YMJ_NS[TQ[JRJSY_TK_TZW_ We consider this a key audit matter because of the materiality of the valuation specialists. goodwill balance and because it involves complex and subjective We compared the Group’s assumptions to data obtained from external judgments by the Group regarding long-term sales growth rates, costs sources in relation to key inputs such as discount rates and projected and projected operating margins in the different countries where the ,WTZU_TUJWFYJX__INXHTZSY_WFYJX_ZXJI_YT_INXHTZSY_KZYZWJ_HFXM_Ü«T¥X__FX_ economic growth and compared the latter with reference to historical forecasting accuracy, considering the potential risk of management bias. well as comparisons to publicly-available information such as multiples of EBITDA in recent market transactions. <J_HTRUFWJI_YMJ_XZR_TK_YMJ_INXHTZSYJI_HFXM_Ü«T¥X_YT_YMJ_,WTZUÑ£X_ market capitalization to assess the reasonableness of those cash Ü«T¥X__.S_FIINYNTS_¥J_UJWKTWRJI_XJSXNYN[NY^_FSFQ^XNX_ZXNSL_RZQYNUQJX_TK_ EBITDA. We challenged the overall results of the calculations and performed our own sensitivity analysis, including a reasonably probable reduction in FXXZRJI_LWT¥YM_WFYJX_FSI_HFXM_Ü«T¥X__ We also assessed whether the group’s disclosures about the sensitivity of the outcome of the impairment assessment to changes in key FXXZRUYNTSX_XZHM_FX_INXHTZSY_WFYJX_FSI_LWT¥YM_WFYJX_WJÜ«JHYJI_YMJ_ risks inherent in the valuation of goodwill. 174 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information RECOVERABILITY OF DEFERRED TAX ASSETS RELATED TO TAX LOSS CARRY FORWARDS AND OTHER TAX CREDITS 8JJ_3TYJ______FSI______YT_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX The key audit matter How the matter was addressed in our audit 9MJ_LWTZU_MFX_XNLSNÜªHFSY_IJKJWWJI_YF]_FXXJYX_NS_WJXUJHY_TK_YF]_QTXXJX_ Our audit procedures included considering historical levels of taxable and other tax credits (mainly in the United States, Mexico and Spain). UWTÜªYX_FSI_HTRUFWNSL_YMJ_FXXZRUYNTSX_ZXJI_NS_WJXUJHY_TK_KZYZWJ_ There is inherent uncertainty involved in forecasting future taxable YF]FGQJ_UWTÜªY_KTWJHFXYX_YT_YMTXJ_ZXJI_NS_YMJ_,WTZUÑ£X_QTSL_YJWR_ forecasts, such as the forecasts prepared in relation to goodwill UWTÜªYX__¥MNHM_IJYJWRNSJX_YMJ_J]YJSY_YT_¥MNHM_IJKJWWJI_YF]_FXXJYX_FWJ_ impairment evaluations. or are not recognized. Our tax specialists assisted in evaluating the reasonableness of key The periods over which the deferred tax assets are expected to be tax assumptions, timing of reversal of temporary differences and recovered can be extensive. expiration of tax loss carry forwards and other tax credits, as well as Additionally in December 2017, the new tax legislation was enacted in the reasonableness of any tax strategies proposed by the Group based the United States. To assess the potential implications of this new law, on our knowledge of the tax, legal and operating environments in which RFSFLJRJSY__FSFQ^XJI_YMJ_YF]_RTINÜªHFYNTSX_FSI_YMJ_NRUFHYX_TK_YMJ_ the Group operates. WJQFYJI_FRTZSYX_NS_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ We also assessed the adequacy of the Group’s disclosures setting As a result of the above, we consider this to be a key audit matter. out the basis of the deferred tax asset balances and the level of estimation involved. Regarding the US tax reform, our tax specialists in the US assisted in evaluating the tax implications, the reasonableness of estimates and calculations determined by management. 175 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information TAX AND LEGAL CONTINGENCIES 8JJ_3TYJX______FSI____YT_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX The key audit matter How the matter was addressed in our audit 9MJ_,WTZU_NX_NS[TQ[JI_NS_HJWYFNS_XNLSNÜªHFSY_YF]_FSI_QJLFQ_UWTHJJINSLX__ Our audit procedures included the assessment of the adequacy of the Compliance with tax regulations is a complex matter within the Group QJ[JQ_TK_UWT[NXNTS_JXYFGQNXMJI__TW_QFHP_YMJWJTK__NS_WJQFYNTS_YT_XNLSNÜªHFSY_ uncertain tax positions and legal contingencies, primarily in respect of because of the different tax laws in the jurisdictions where the Group cases in Spain, France, Egypt, and Colombia. TUJWFYJX__YMJ_FUUQNHFYNTS_TK_¥MNHM_WJVZNWJX_YMJ_ZXJ_TK_XNLSNÜªHFSY_ expertise and judgment, making this area a key audit matter. Also, <J_INXHZXXJI_YMJ_XYFYZX_TK_JFHM_XNLSNÜªHFSY_HFXJ_¥NYM_RFSFLJRJSY__ because of the diversity of the Group’s operations, exposure to legal including in-house counsel, and critically assessed their responses. claims is a risk that requires management’s attention. We read the latest correspondence between the Group and the various tax authorities or plaintiffs and attorneys where applicable. We also Resolution of tax and legal proceedings may span multiple years, and obtained written responses from the Group’s legal advisors where those may involve negotiation or litigation and therefore, making judgments have been appointed, containing their views on material exposures and of potential outcomes is a complex issue in the Group. any related litigation. Management applies judgment in estimating the likelihood of the future outcome in each case and records a provision for uncertain tax .S_WJQFYNTS_YT_YF]_RFYYJWX__¥J_FQXT_RJY_¥NYM_YMJ_,WTZUÑ£X_YF]_TKÜªHJWX_YT_ positions or settlement of legal claims where applicable. We focused FXXJXX_YMJNW_OZILRJSYX_TS_XNLSNÜªHFSY_HFXJX__YMJNW_[NJ¥X_FSI_XYWFYJLNJX__ as well as the related technical grounds to their position based on on this area due to the inherent complexity and judgment in estimating applicable tax laws by involving our tax specialists. the amount of provision required. We assessed whether the Group’s disclosures about legal and tax HTSYNSLJSHNJX_UWT[NIJI_XZKÜªHNJSY_NSKTWRFYNTS_YT_WJFIJWX_TK_YMJ_ÜªSFSHNFQ_ XYFYJRJSYX_NS_QNLMY_TK_YMJ_XNLSNÜªHFSHJ_TK_YMJXJ_HFXJX_ 176 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information Other Information Management is responsible for the other information. The other information comprises the information included in the Group’s annual report for YMJ_^JFW_JSIJI_)JHJRGJW___________YT_GJ_ÜªQJI_¥NYM_YMJ_3FYNTSFQ_‘FSPNSL_FSI_8JHZWNYNJX_(TRRNXXNTS_ 2J]NHT__ (TRNXNà¤–S_3FHNTSFQ_‘FSHFWNF_^_ IJ_;FQTWJX__FSI_YMJ_2J]NHFS_8YTHP_*]HMFSLJ_ ‘TQXF_2J]NHFSF_IJ_;FQTWJX__ Ñ¦YMJ_&SSZFQ_7JUTWYÑ§__GZY_ITJX_STY_NSHQZIJ_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_ statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this auditors’ report. 4ZW_TUNSNTS_TS_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ITJX_STY_HT[JW_YMJ_TYMJW_NSKTWRFYNTS_FSI_¥J_¥NQQ_STY_J]UWJXX_FS^_KTWR_TK_FXXZWFSHJ_ conclusion thereon. .S_HTSSJHYNTS_¥NYM_TZW_FZINY_TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX__TZW_WJXUTSXNGNQNY^_NX_YT_WJFI_YMJ_TYMJW_NSKTWRFYNTS_NIJSYNÜªJI_FGT[J_¥MJS_NY_ GJHTRJX_F[FNQFGQJ_FSI__NS_ITNSL_XT__HTSXNIJW_¥MJYMJW_YMJ_TYMJW_NSKTWRFYNTS_NX_RFYJWNFQQ^_NSHTSXNXYJSY_¥NYM_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ or our knowledge obtained in the audit, or otherwise appears to be materially misstated. When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements 2FSFLJRJSY_NX_WJXUTSXNGQJ_KTW_YMJ_UWJUFWFYNTS_FSI_KFNW_UWJXJSYFYNTS_TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_NS_FHHTWIFSHJ_¥NYM_.+78__FSI_KTW_ XZHM_NSYJWSFQ_HTSYWTQ_FX_RFSFLJRJSY_IJYJWRNSJX_NX_SJHJXXFW^_YT_JSFGQJ_YMJ_UWJUFWFYNTS_TK_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_YMFY_FWJ_KWJJ_KWTR_ material misstatement, whether due to fraud or error. .S_UWJUFWNSL_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX__RFSFLJRJSY_NX_WJXUTSXNGQJ_KTW_FXXJXXNSL_YMJ_,WTZUÑ£X_FGNQNY^_YT_HTSYNSZJ_FX_F_LTNSL_HTSHJWS__ disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. 9MTXJ_HMFWLJI_¥NYM_LT[JWSFSHJ_FWJ_WJXUTSXNGQJ_KTW_T[JWXJJNSL_YMJ_,WTZUÑ£X_ÜªSFSHNFQ_WJUTWYNSL_UWTHJXX_ Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements 4ZW_TGOJHYN[JX_FWJ_YT_TGYFNS_WJFXTSFGQJ_FXXZWFSHJ_FGTZY_¥MJYMJW_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_FX_F_¥MTQJ_FWJ_KWJJ_KWTR_RFYJWNFQ_ misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to NSÜ«ZJSHJ_YMJ_JHTSTRNH_IJHNXNTSX_TK_ZXJWX_YFPJS_TS_YMJ_GFXNX_TK_YMJXJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_ As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: ¢_ .IJSYNK^_FSI_FXXJXX_YMJ_WNXPX_TK_RFYJWNFQ_RNXXYFYJRJSY_TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX__¥MJYMJW_IZJ_YT_KWFZI_TW_JWWTW__IJXNLS_FSI_ UJWKTWR_FZINY_UWTHJIZWJX_WJXUTSXN[J_YT_YMTXJ_WNXPX__FSI_TGYFNS_FZINY_J[NIJSHJ_YMFY_NX_XZKÜªHNJSY_FSI_FUUWTUWNFYJ_YT_UWT[NIJ_F_GFXNX_KTW_TZW_ opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. – Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control. 177 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.1 Financial information – Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. – Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, ¥MJYMJW_F_RFYJWNFQ_ZSHJWYFNSY^_J]NXYX_WJQFYJI_YT_J[JSYX_TW_HTSINYNTSX_YMFY_RF^_HFXY_XNLSNÜªHFSY_ITZGY_TS_YMJ_,WTZUÑ£X_FGNQNY^_YT_HTSYNSZJ_FX_F_LTNSL_ concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures NS_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_TW__NK_XZHM_INXHQTXZWJX_FWJ_NSFIJVZFYJ__YT_RTINK^_TZW_TUNSNTS__4ZW_HTSHQZXNTSX_FWJ_GFXJI_TS_YMJ_FZINY_ evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern. ¢_ *[FQZFYJ_YMJ_T[JWFQQ_UWJXJSYFYNTS__XYWZHYZWJ_FSI_HTSYJSY_TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX__NSHQZINSL_YMJ_INXHQTXZWJX__FSI_¥MJYMJW_YMJ_ HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_WJUWJXJSY_YMJ_ZSIJWQ^NSL_YWFSXFHYNTSX_FSI_J[JSYX_NS_F_RFSSJW_YMFY_FHMNJ[JX_KFNW_UWJXJSYFYNTS_ ¢_ 4GYFNS_XZKÜªHNJSY_FUUWTUWNFYJ_FZINY_J[NIJSHJ_WJLFWINSL_YMJ_ÜªSFSHNFQ_NSKTWRFYNTS_TK_YMJ_JSYNYNJX_TW_GZXNSJXX_FHYN[NYNJX_¥NYMNS_YMJ_,WTZU_YT_J]UWJXX_ FS_TUNSNTS_TS_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX___<J_FWJ_WJXUTSXNGQJ_KTW_YMJ_INWJHYNTS__XZUJW[NXNTS_FSI_UJWKTWRFSHJ_TK_YMJ_LWTZU_FZINY___<J_ remain solely responsible for our audit opinion. <J_HTRRZSNHFYJ_¥NYM_YMTXJ_HMFWLJI_¥NYM_LT[JWSFSHJ_WJLFWINSL__FRTSL_TYMJW_RFYYJWX__YMJ_UQFSSJI_XHTUJ_FSI_YNRNSL_TK_YMJ_FZINY_FSI_XNLSNÜªHFSY_ FZINY_ÜªSINSLX__NSHQZINSL_FS^_XNLSNÜªHFSY_IJÜªHNJSHNJX_NS_NSYJWSFQ_HTSYWTQ_YMFY_¥J_NIJSYNK^_IZWNSL_TZW_FZINY_ We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. +WTR_YMJ_RFYYJWX_HTRRZSNHFYJI_¥NYM_YMTXJ_HMFWLJI_¥NYM_LT[JWSFSHJ__¥J_IJYJWRNSJ_YMTXJ_RFYYJWX_YMFY_¥JWJ_TK_RTXY_XNLSNÜªHFSHJ_NS_YMJ_FZINY_ TK_YMJ_HTSXTQNIFYJI_ÜªSFSHNFQ_XYFYJRJSYX_TK_YMJ_HZWWJSY_UJWNTI_FSI_FWJ_YMJWJKTWJ_YMJ_PJ^_FZINY_RFYYJWX__<J_IJXHWNGJ_YMJXJ_RFYYJWX_NS_TZW_FZINYTWXÑ£_ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public NSYJWJXY_GJSJÜªYX_TK_XZHM_HTRRZSNHFYNTS_ Joaquín Alejandro Aguilera Dávila KPMG Cárdenas Dosal, S.C. Monterrey, N.L. February 1, 2018 178 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.2_3TS_ÜªSFSHNFQ_NSKTWRFYNTS HEALTH AND SAFETY [1] 2015 2016 2017 HEALTH AND SAFETY [1] 2015 2016 2017 Total fatalities 19 20 20 Employee Lost Time Injury Frequency Rate [LTI FR] (per million hours 0.6 0.6 0.5 worked) Employees 3 1 3 Cement 0.8 0.7 0.8 0 Cement 0 1 Ready-mix 0.9 0.8 0.5 Ready-mix 2 0 2 Aggregates 0.4 0.7 0.7 0 Aggregates 1 0 Other businesses 0.3 0.2 0.1 Other businesses 0 0 1 Contractors Lost Time Injury Frequency Rate [LTI FR] (per million hours worked) Contractors 7 10 10 Cement 0.6 0.9 0.7 Cement 5 5 7 Employee Lost Time Injury Severity Rate [LTI SR] (lost days per million hours worked) Ready-mix 1 1 2 Cement 46.0 47.9 66.4 1 Aggregates 2 1 Compliance with CSI Driving Safety Recommended Practices (%) 89 98 98 Other businesses 2 0 0 Compliance with CSI Contractor Safety Recommended Practices (%) 89 96 98 Third-parties 10 8 7 Sites with a Health and Safety Management System implemented (%) 100 100 100 3 Cement 5 5 8NYJX_HJWYNÜªJI_¥NYM_4-8&8_______ _ 10 15 16 Ready-mix 3 2 0 Cement 61 65 69 1 Aggregates 1 2 Ready-mix 8 13 13 Other businesses 0 0 3 Aggregates 13 14 16 Employee Fatality Rate (per 10,000 employed) 0.2 0.7 0.7 Sickness Absence Rate (%) 2.1 1.8 1.6 Cement 0.0 0.8 0.0 Ready-mix 0.0 1.4 1.4 OUR PEOPLE 2015 2016 2017 Aggregates 2.0 0.0 0.0 Workforce 43,117 41,853 40,878 Other businesses 0.0 0.0 0.9 Mexico 9,504 9,858 9,285 Total Lost Time Injuries (LTIs) United States 10,183 9,783 8,380 Employees 50 67 60 Europe 10,525 10,386 10,413 23 Cement 23 19 Asia, Middle East and Africa 3,512 3,243 3,084 Ready-mix 17 32 27 South, Central America and the Caribbean 6,046 5,387 5,869 7 Aggregates 4 8 Others (including Corporate and Neoris) 3,347 3,196 3,847 Other businesses 8 6 3 Breakdown of workforce by type of contract (%) Contractors 68 67 53 Full time 100 99 99 28 Cement 28 30 Part time 0 1 1 Ready-mix 18 9 12 Breakdown of workforce by level (%) 5 Aggregates 10 5 Executive positions 5 5 7 Other businesses 20 6 17 179 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-41 4.2 _3TS_ÜªSFSHNFQ_NSKTWRFYNTS OUR PEOPLE 2015 2016 2017 RESILIENT AND EFFICIENT BUILDING SOLUTIONS 2015 2016 2017 Non-executive positions 31 31 38 &KKTWIFGQJ_FSI_TW_WJXTZWHJ_JKÜªHNJSY_GZNQINSLX_¥MJWJ_(*2*=_NX_ 2,400 4,112 9,543 involved (No.) Operational positions 64 64 55 &KKTWIFGQJ_FSI_TW_WJXTZWHJ_JKÜªHNJSY_GZNQINSLX_¥MJWJ_(*2*=_NX_ 0.15 0.07 0.92 Breakdown of workforce by age (%) 2 involved (million m ) Under 30 17 15 18 2 Installed concrete pavement area (million m ) 7.32 5.39 8.78 31-40 30 35 31 ,WJJS_GZNQINSL_UWTOJHYX_ZSIJW_HJWYNÜªHFYNTS_¥MJWJ_(*2*=_NX_NS[TQ[JI_ 6.42 9.73 8.67 41-50 28 26 27 (million m2) 51 and over 25 24 24 Annual ready-mix sales derived from products with outstanding sus- 33.0 33.7 31.8 tainable attributes (%) Breakdown of workforce by gender (%) Male 89 88 86 Female 11 12 14 STRENGTHEN LOCAL COMMUNITIES [5] 2015 2016 2017 Families participating in Patrimonio Hoy (No.) 525,941 572,166 586,643 Female employees by level (%) Individuals positively impacted from Patrimonio Hoy (No.) 2,536,466 2,756,087 2,824,025 Executive positions 13 13 21 Non-executive positions 38 30 31 Livable space enabled by Patrimonio Hoy (m2) 4,115,392 4,346,968 4,498,287 Families participating in our social and inclusive businesses (No.) 627,307 685,634 715,476 Operational positions 3 3 2 Individuals positively impacted from our social and inclusive 2,994,453 3,272,953 3,400,247 Male to female wage ratio 1.07 1.08 1.17 businesses (No.) Employees that perceive they are enabled to perform their job 76 76 77 Community partners [i.e. individuals positively impacted from our 9,655,198 12,604,222 14,108,456 effectively [PEI—Performance Enablement Index] (%) [2] social initiatives] (No.) Employees that are engaged to the company 76 76 76 [EEI—Employee Engagement Index] (%) [2] CARBON STRATEGY [6] 2015 2016 2017 Participation rate in engagement survey (%) 75 75 82 Absolute gross CO2 emissions (million ton) 43.7 43.8 42.5 Employee turnover rate (%) [3] 6.6 9.4 12.5 Employees represented by an independent union or covered by a 45 40 32 Absolute net CO2 emissions (million ton) 40.8 41.4 39.7 collective bargaining agreement (%) [4] 8UJHNÜªH_LWTXX_(42 emissions (kg CO2/ton of cementitious product) 672 678 677 Notice to employees regarding operational changes (average days) 36 30 34 8UJHNÜªH_SJY_(42 emissions (kg CO2/ton of cementitious product) 630 642 636 Countries with practices to promote local hiring (%) 100 73 78 Reduction in CO2 emissions per ton of cementitious product from 21.6 20.1 20.7 1990 baseline (%) Training provided by level (average hours) 9MJWRFQ_JSJWL^_JKÜªHNJSH^_TK_HQNSPJW_UWTIZHYNTS_ 2/_YTS_HQNSPJW_ 3,897 3,905 3,913 Executive positions 18 25 26 Non-executive and Operational positions 15 16 20 OTHER CARBON STRATEGY INDICATORS [6] 2015 2016 2017 Courses offered through CEMEX Online Training Platforms (No.) 3,155 262 1,049 Alternative raw material rate (%) [7] 6.0 6.1 6.6 Employees with access to CEMEX Online Training Platforms (No.) 25,656 25,266 30,513 Investment on Employee Training and Development (US million) 20.6 25.8 21.5 Sustainable raw material rate (%)[8] 12.7 12.9 13.5 Clinker/Cement factor (%) 78.6 78.4 78.4 Direct energy consumption (TJ) 202,598 202,255 197,071 Indirect energy consumption (GWh) 7,643 7,698 7,483 180 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.2 _3TS_ÜªSFSHNFQ_NSKTWRFYNTS OTHER CARBON STRATEGY INDICATORS [6] 2015 2016 2017 ENVIRONMENTAL AND QUALITY MANAGEMENT [6] 2015 2016 2017 8UJHNÜªH_JSJWL^_HTSXZRUYNTS__HJRJSY_ P<M_YTS_ 119 120 120 Aggregates 88 86 87 8UJHNÜªH_JSJWL^_HTSXZRUYNTS__WJFI^_RN]_ P<M_R3) 3.2 3.2 3.1 8NYJX_¥NYM_.84_______(JWYNÜªHFYNTS_ _ 44 46 47 8UJHNÜªH_JSJWL^_HTSXZRUYNTS__FLLWJLFYJX_ P<M_YTS_ 4.6 4.3 4.5 Cement 74 76 79 Power from renewable energy sources, cement (%)[9] 25 26 Ready-mix 41 43 44 Aggregates 50 53 55 FUEL MIX (%) [6] 2015 2016 2017 8NYJX_¥NYM_.84______(JWYNÜªHFYNTS_ _ 45 45 46 Primary Fuels 73.4 76.7 73.8 Cement 79 79 82 Petroleum coke 39.0 45.4 39.0 Ready-mix 46 44 45 Coal 23.8 25.0 28.0 Aggregates 36 41 43 Fuel oil + Diesel 7.0 2.0 3.8 Environmental investment (US million) 86 80 83 Natural gas 3.7 4.3 3.0 Total environmental incidents (No.) 753 365 334 Alternative Fuels 26.6 23.3 26.2 Major environmental incidents—Category 1 2 0 0 Fossil based waste 15.7 13.7 15.9 Moderate environmental incidents—Category 2 436 64 37 Biomass 10.9 9.6 10.3 Minor environmental incidents—Category 3 227 224 216 Complaints 88 77 81 WASTE MANAGEMENT [6] 2015 2016 2017 *S[NWTSRJSYFQ_ÜªSJX_ 3T__ 453 363 11 Hazardous waste disposal (ton) 104,254 95,141 95,323 *S[NWTSRJSYFQ_ÜªSJX_ :8_RNQQNTS_ 0.27 0.15 0.39 Cement 101,811 93,413 93,611 Ready-mix 2,171 1,501 1,528 AIR QUALITY [6] 2015 2016 2017 Aggregates 271 226 183 Clinker produced with continous monitoring of major emissions 84 84 92 Other businesses 0.35 1.25 0.04 (dust, NOx and SOx) (%) Clinker produced with monitoring of major and minor emissions 80 80 80 Non-hazardous waste disposal (ton) 464,493 276,491 250,453 (dust, NOx, SOx, Hg, Cd, TI, VOC, PCDD/F) (%) Cement 102,504 91,223 85,247 Absolute dust emissions (ton/year) 4,095 2,703 2,214 Ready-mix 344,958 174,365 155,411 8UJHNÜªH_IZXY_JRNXXNTSX_ L_YTS_HQNSPJW_ 90 67 47 Aggregates 13,178 7,992 5,938 Absolute NOx emissions (ton/year) 55,318 76,552 57,973 Others 3,853 2,912 3,858 8UJHNÜªH_34x emissions (g/ton clinker) 1,122 1,533 1,177 Secondary and recycled aggregates used as a direct replacement of 257,761 258,494 273,939 Absolute SOx emissions (ton/year) 13,640 13,089 10,399 primary aggregates (ton) 8UJHNÜªH_84x emissions (g/ton clinker) 279 253 216 ENVIRONMENTAL AND QUALITY MANAGEMENT [6] 2015 2016 2017 Annual reduction in dust emissions per ton of clinker from 2005 70 78 84 baseline (%) Sites with CEMEX Environmental Management System (EMS) 76 88 88 46 26 43 implemented (%) Annual reduction in NOx emissions per ton of clinker from 2005 baseline (%) Cement 98 98 98 emissions per ton of clinker from 2005 61 67 Annual reduction in SOx 57 Ready-mix 73 88 88 baseline (%) 181 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.2 _3TS_ÜªSFSHNFQ_NSKTWRFYNTS WATER MANAGEMENT [6][10] 2015 2016 2017 WATER MANAGEMENT 2017 [6][10] 2015 2016 Total water withdrawals by source (million m 3) 75.7 62.1 61.4Sea water 0.1 0.0 0.0 Surface water 27.2 22.5 22.3 Other 0.5 0.0 0.2 Ground water 34.4 24.3 24.7 Cement (million m 3) 5.1 4.2 5.4 Municipal water 10.0 11.5 10.4Surface water 2.6 2.0 2.8 Rain water 0.5 0.4 0.4Ground water 2.0 1.7 2.2 Sea water 0.4 0.0 0.0Municipal water 0.3 0.4 0.3 Other 3.3 3.4 3.7 Sea water 0.1 0.0 0.0 Cement (million m 3) 21.6 19.7 19.7 Other 0.2 0.0 0.1 Surface water 7.5 6.5 5.7 Ready-mix (million m 3) 0.9 0.8 0.8 Ground water 12.0 11.0 11.4Surface water 0.3 0.3 0.6 Municipal water 1.4 1.3 1.4Ground water 0.1 0.2 0.1 Rain water 0.3 0.3 0.3Municipal water 0.5 0.3 0.2 Sea water 0.0 0.0 0.0Sea water 0.0 0.0 0.0 Other 0.5 0.6 0.9 Other 0.0 0.0 0.0 Ready-mix (million m 3) 12.1 12.3 12.0 Aggregates (million m 3) 25.3 13.6 16.4 Surface water 0.5 0.6 0.7Surface water 15.1 8.7 8.4 Ground water 2.0 2.3 2.5Ground water 9.9 4.9 8.0 Municipal water 6.6 6.5 6.1Municipal water 0.1 0.0 0.0 Rain water 0.1 0.1 0.1Sea water 0.0 0.0 0.0 Sea water 0.0 0.0 0.0 Other 0.3 0.0 0.0 Other 2.9 2.8 2.7 Total consumption (million m3) 44.4 43.5 38.7 Aggregates (million m 3) 42.0 30.1 29.6 Cement 16.5 15.5 14.3 Surface water 19.2 15.4 15.9 Ready-mix 11.2 11.5 11.2 Ground water 20.4 11.0 10.8 Aggregates 16.7 16.5 13.2 Municipal water 1.9 3.7 2.8 8UJHNÜªH_¥FYJW_HTSXZRUYNTS Rain water 0.0 0.0 0.0 Cement (l/ton) 261 247 235 Sea water 0.4 0.0 0.0 Ready-mix (l/m3) 207 222 219 Other 0.0 0.0 0.1 Aggregates (l/ton) 134 131 107 Total water discharge by destination (million m 3) 31.3 18.6 22.6 Sites with water recycling systems (%) 84 79 85 Surface water 17.9 11.0 11.8 Cement 77 76 77 Ground water 12.0 6.8 10.2 Ready-mix 83 80 87 Municipal water 0.8 0.8 0.5 Aggregates 93 76 74 182 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-48, GRI 102-49 4.2 _3TS_ÜªSFSHNFQ_NSKTWRFYNTS BIODIVERSITY MANAGEMENT [6] 2015 2016 2017 GOVERNANCE AND ETHICS 2015 2016 2017 Active sites with quarry rehabilitation plans (%) 94 94 97 Executives and employees actively aware of our Code of Ethics (%) [11] 80 77 77 Cement 84 90 94 Reports of alleged breaches to the Code of Ethics received by Local 359 453 568 Ethics Committees (No.) Aggregates 98 96 98 Ethics and compliance cases reported during the year that were 74 68 73 Active quarries within or adjacent to high biodiversity value areas 64 63 64 investigated and closed (%) (No.) Disciplinary actions taken as a result of reports of non-compliance 180 115 185 Cement 9 9 11 with the Code of Ethics, other policies or the law (No.) Aggregates 55 54 53 Target countries that participated on the Global Compliance Program 100 100 100 Active sites with high biodiversity value where biodiversity action 61 63 69 (antitrust, antri-bribery and insider trading) (%) plans are actively implemented (%) Countries with local mechanisms to promote employee awareness of 100 100 100 Cement 89 89 73 procedures to identify and report incidences of internal fraud, kickbacks, among others (%) Aggregates 56 59 68 Investigated incidents reported and found to be true related to fraud, 0 0 0 PNHP_GFHPX_FRTSL_TYMJWX_HTWWZUYNTS_NSHNIJSYX_YT_LT[JWSRJSY_TKÜªHNFQX_ STAKEHOLDER ENGAGEMENT 2015 2016 2017 (No.) Sites with community engagement plans (%) 98 98 98 Footnotes: Cement 97 97 98 [1] All H&S statistics are in accordance with the CSI Reporting Guidelines [2] Measured every 2 years through our Global Voices into Actions Survey. Figures represent results from Aggregates 98 98 98 2017 survey Countries with employee volunteering programs (%) 73 75 71 [3] Voluntary turnover Purchases sourced from locally-based suppliers (%) 95 95 89 [4] Total employees including executive and non-executive positions. Considering only operations positions coverage is 57% Countries with a process to screen suppliers in relation to social and 86 83 71 [5]__&HHZRZQFYJI_ÜªLZWJX_XNSHJ_____ environmental aspects (%) [6]__+NLZWJX_IT_STY_WJÜ«JHY_9(1_TUJWFYNTSX_FHVZNWJI_NS_____ [7]_______ÜªLZWJ_WJÜ«JHYX_(*2*=Ñ£X_TUJWFYNTSX_UTWYKTQNT_FKYJW_FXXJYX_YWFSXFHYNTSX Global procurement spend assessed under the Supplier Sustainability 13 17 25 [8] Raw materials containing the required minerals for clinker/cement production with the potential to reduce Program (%) impacts from ordinary processes [9] KPI consolidated as of 2016. It includes direct supply contracts plus renewable share from the power grid [10]__-NXYTWNHFQ_ÜªLZWJX_FIOZXYJI_LN[JS_RNXHFQHZQFYNTSX_NIJSYNÜªJI_FKYJW_LTNSL_YMWTZLM_TZW_ÜªWXY_J]YJWSFQ_FZINY_KTW_ water KPIs [11] Measured every 3 years through our Global Ethics Survey. Figure represents result from 2016 survey 183 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.2 _3TS_ÜªSFSHNFQ_NSKTWRFYNTS OUR SUSTAINABILITY CREDENTIALS DIRECT ECONOMIC IMPACTS IFRS 2015 IFRS 2016 IFRS 2017 In millions of US dollars DOW JONES SUSTAINABILITY MSCI EM LATIN AMERICA ESG MILA PACIFIC ALLIANCE INDEX LEADERS INDEX Customers: Net sales (1) 13,723 13,352 13,672 CEMEX S.A.B. de C.V. was included CEMEX S.A.B. de C.V. was selected in this new Index launched by S&P as member of the MSCI ESG Lead-Suppliers: Cost of sales and operating expenses (2) 9,060 8,585 9,008 Dow Jones Indices (S&P DJI), Inter- ers Indexes in 2017, constructed by national Finance Corporation (IFC), FUUQ^NSL_F_‘JXYÑ›NSÑ›(QFXX_XJQJHYNTS_ (3) RobecoSAM and the Exchanges of process to companies in the re- Employees and their families: <FLJX_FSI_GJSJÜªYX_ 2,064 2,014 2,092 the Mercado Integrado Latinoamer- gional indexes that make up MSCI Investments: CAPEX (4) plus working capital 466 99 308 icano (MILA). ACWI. Creditors:_3JY_ÜªSFSHNFQ_J]UJSXJ 1,150 985 821 Government: Taxes 486 299 249 Communities: Donations (5) 1.72% 0.38% 0.76% (6) FTSE4GOOD INDEX SERIES MEXICAN STOCK EXCHANGE Shareholders: Dividends 0 0 0 CEMEX became a member of this SUSTAINABILITY INDEX Index created by the global index CEMEX remained in this index, as it Others (78) (1) 45 provider FTSE Russell to measure has been since the Index inception the performance of companies in 2011, and received in 2017 the +WJJ_HFXM_Ü«T¥_KWTR_INXHTSYNSZJI_TUJWFYNTSX_(7) (57) (64) (8) demonstrating strong Environmen- highest Sustainability total score tal, Social and Governance (ESG) among all constituents. (TSXTQNIFYJI_KWJJ_HFXM_Ü«T¥ 628 1,431 1,151 practices. Net income (loss) before taxes & non controlling 217 938 723 interest as of December 31, 2017 CDP (FORMERLY THE CARBON DISCLOSURE PROJECT) (1) Excludes sales of assets (2) Excludes depreciation and amortization In 2017, we received an A- from CDP. ___<FLJX_FSI_GJSJÜªYX_NSHQZIJ_STS_TUJWFYNTSFQ_FSI_TUJWFYNTSFQ_JRUQT^JJX_ _ _ _ This excellent score puts us as one (4) Capital expenditures for maintenance and expansion of the few building materials com-(5) Donations as percentage of pre-tax income panies in CDP’s Leadership group. (6) Dividends paid in cash ___+WJJ_HFXM_Ü«T¥_KWTR_&ZXYWNF__-ZSLWNF__9MFNQFSI__‘FSLQFIJXM__2FQF^XNF__5FHNÜªH_3TWYM¥JXY_FSI_5NUJ_TUJWFYNTSX 184 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.2 _3TS_ÜªSFSHNFQ_NSKTWRFYNTS 185 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 4.2 _3TS_ÜªSFSHNFQ_NSKTWRFYNTS 186 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 5 ABOUT THIS REPORT Aligned to international standards AUTONOMOUS UNIVERSITY OF YUCATÁN (UADY), MEXICO 187 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-45, GRI 102-46, GRI 102-48, GRI 102-49 5.1 Report scope GENERAL CONSIDERATIONS: process for our annual indicators associated with CO2 and other emissions, health and safety, environmental CEMEX, S.A.B. de C.V. is incorporated as a publicly traded stock corporation with incidents, and water. variable capital (sociedad anónima bursátil de capital variable) organized under In addition, we continued the engagement with our Exter-the laws of Mexico. Except as the context otherwise may require, references in this nal Advisory Panel, whose members provide very valu- able and objective feedback on our reporting every year. NSYJLWFYJI_WJUTWY_YT_Ñ¦(*2*=_Ñ§_Ñ¦¥J_Ñ§_Ñ¦ZXÑ§_TW_Ñ¦TZWÑ§_WJKJW_YT_(*2*=__8_&_’__IJ_(_;__FSI_NYX_ DATA MEASUREMENT TECHNIQUES consolidated entities. We employ the following protocols and techniques for REPORTING SCOPE ment and our stakeholders found of highest impor- measuring the sustainability key performance indicators (KPI) that we report: YFSHJ_KTW_TZW_TUJWFYNTSX__FX_WJÜ«JHYJI_NS_TZW_WJHJSYQ^_ CEMEX began publishing Environmental, Health, and i CO2 emissions: CEMEX reports absolute and spe- ZUIFYJI_2FYJWNFQNY^_2FYWN]_HT[JWNSL_GTYM_ÜªSFSHNFQ_FSI_ Safety (EHS) reports in 1996, and has annually pub- HNÜªH_(42 emissions following the latest version of sustainability issues. lished its Sustainable Development Reports since the Cement Sustainability Initiative (CSI) Protocol, 2003, covering a broad range of issues related to eco- Unless otherwise indicated, the information provided denominated: Cement CO2 and Energy Protocol, ver-nomic, environmental, social, and governance perfor- in this report is for the company as a whole. We have sion 3.0, published in May 2011. It considers direct mance. included information for the operations in which we emissions occurring from sources that are owned or MF[J_ÜªSFSHNFQ_FSI_TUJWFYN[J_HTSYWTQ__.K_F_UQFSY_NX_XTQI__ controlled by the company, excluding those from the Our second Integrated Report is intended to provide its information is no longer included in our data or con- combustion of biomass that are reported separately a holistic analysis of the company’s strategic vision, sidered in our targets. If we have restated certain data (Scope 1) and indirect emissions from the generation performance, governance, and value creation, while sets from previous years because of improvements to of purchased electricity consumed in the company’s KTXYJWNSL_F_RTWJ_NS_IJUYM_ZSIJWXYFSINSL_TK_YMJ_ÜªSFS- HNFQ_FSI_STS_ÜªSFSHNFQ_PJ^_UJWKTWRFSHJ_NSINHFYTWX_YMFY_ our data-collection systems or changes to our busi- owned or controlled equipment (Scope 2). Historical ness, each case is clearly marked. Unless something data shall remain unchanged given that the previous the company uses to manage its business over the else is explicitly indicated, all monetary amounts are protocol is closely aligned with the simple methods short, medium, and long term. WJUTWYJI_NS_:_8__ITQQFWX__&QQ_WJKJWJSHJX_YT_Ñ¦YTSXÑ§_FWJ_YT_ for the reporting of CO2 emissions from calcination. metric tons. For countries covered by the European Union Emis- BOUNDARY AND REPORTING PERIOD The information in our 2017 Integrated Report came sion Trading System (EU ETS), CO2 data corresponds In preparation of this report, we consolidated informa- YT_YMJ_TSJ_[FQNIFYJI_G^_FS_NSIJUJSIJSY_[JWNÜªJW_NS_ from several sources, including internal management tion from all of our countries and operations. It covers accordance with the applicable Accreditation and systems and performance databases, as well as annu-our global cement, ready-mix concrete, and aggregates ;JWNÜªHFYNTS_7JLZQFYNTS_ GZXNSJXX_QNSJX__UWJXJSYNSL_TZW_ÜªSFSHNFQ_FSI_STS_ÜªSFS al surveys applied across all of our countries. - We continually aim to improve the transparency and i Dust, NOX and SOX emissions:_&GXTQZYJ_FSI_XUJHNÜªH_ cial performance, progress, achievements, and challenges for the 2017 calendar year, which is also the completeness of each report that we produce, while ÜªLZWJX_FWJ_HFQHZQFYJI_GFXJI_TS_PNQS_RJFXZWJRJSYX_ streamlining our processes and the way in which we taken from Continuous Emissions Monitoring Sys- HTRUFS^Ñ£X_ÜªXHFQ_^JFW__4ZW_RFYJWNFQNY^_FSFQ^XNX_LZNIJI_ provide information. To this end, we include a limited tems (CEMs) (in those sites where kilns are equipped our reporting process, and the issues included in this assurance statement from KPMG, an independent with such technology) or spot analysis. These meth-report particularly match those that CEMEX manage-ods fully comply with the CSI Guidelines for Emis- TWLFSN_FYNTS_YMFY_[JWNÜªJI_YMJ_IFYF_FSI_HFQHZQFYNTS_ 188 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT GRI 102-45, GRI 102-46, GRI 102-48, GRI 102-49 5.1 Report scope sions Monitoring and Reporting. All information is As of this Integrated Report corresponding to the 2017 CEMEX CONTRIBUTION TO ITS reported to CEMEX databases, processed, calculat- cycle, we have migrated to the GRI Standards. SDG ACHIEVEMENT (pages) JI__FSI_[FQNIFYJI_YT_UWT[NIJ_F_ÜªSFQ_LWTZU_[FQZJ__9MJ_ Our GRI Content Index is cross referenced to the UN values are calculated in Standard for 0°C, 1 atmo- 20, 41, 42, 43, 44, 46, 47, 48, 49, 50, 63, Global Compact (UNGC) principles, as well as to the sphere and 10% Oxygen (O2) content at measuring 64 UN Sustainable Development Goals (SDGs). Further-point. more, we have sumitted the current report to the GRI i Energy: Fuel consumption indicators are reported requesting the Materiality Disclosures Service which is 14, 17, 18, 19, 22, 41, 42, 43, 44, 46, 47, to internal CEMEX databases in which “convention- WJÜ«JHYJI_NS_YMJ_HTWWJXUTSINSL_,7._RFWP__ 48, 49, 52, 53, 54, 55, 56, 57, 58, 59, 63, FQ_Ñ§_Ñ¦FQYJWSFYN[J_Ñ§_FSI_Ñ¦GNTRFXX_KZJQXÑ§_FWJ_HQFXXNÜªJI_ 64, 65, 66, 73, 74, 75, 76, 77 To access the full 2017 GRI Content Index, please according to the CSI Cement CO2 Protocol spread- visit > https://www.cemex.com/sustainability/reports/ sheet. Heat values are obtained from on-site analysis global-reports 19, 21, 22, 41, 42, 43, 44, 46, 47, 48, 50, (where applicable), value provided by supplier or standards from the CSI Guidelines for the Selection 63, 64, 73, 74, 75, 77 UNITED NATIONS GLOBAL COMPACT—and Use of Fuels and Raw Materials in the Cement COMMUNICATION ON PROGRESS Manufacturing Process. This report also constitutes our Communication on 20, 41, 42, 43, 44, 47, 48, 50, 63, 64, 73, i Clinker factor and alternative fuels: All material con- 74, 75, 76, 77 sumption is reported to internal CEMEX databases Progress (CoP) toward the commitments of the UN Global Compact (UNGC). As a signatory to the UNGC, NS_¥MNHM_Ñ¦FQYJWSFYN[J_RFYJWNFQXÑ§_FWJ_IJÜªSJI_KTQQT¥NSL_ 3, 4, 10, 14, 17, 18, 19, 20, 21, 22, 23, the standards from the CSI Guidelines for the Se- we work to align our company’s operations and strategies with its 10 principles. As demonstrated within the 24, 25, 26, 27, 28, 29, 31, 32, 33, 34, 35, lection and Use of Fuels and Raw Materials in the 36, 37, 41, 42, 43, 44, 47, 48, 53, 54, 55, Cement Manufacturing Process. The “clinker/cement content of this report, we are also committed to helping the world meet the targets of the Kyoto Protocol 63, 64, 65, 66, 73, 74, 75, 76, 77 KFHYTWÑ§_NX_HFQHZQFYJI_ZXNSL_YMJ_(8._UWTHJIZWJX_NSIN-and contribute to the achievement of the UN Sustain- 3, 4, 10, 23, 24, 25, 26, 27, 28, 29, 30, cated in Cement CO2 and Energy Protocol spreadsheet with information obtained from the databases. able Development Goals (SDGs). 31, 32, 41, 42, 43, 50, 52, 53, 54, 55, 56, 57, 58, 59, 62, 63, 64 i Health and safety: SISTER, which is an internal data- SUSTAINABLE DEVELOPMENT GOALS (SDGs) base, collects all related health and safety informa- 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 41, tion from each site and automatically provides the The 17 Sustainable Development Goals (SDGs) were 42, 43, 46, 48, 49, 50, 51, 53, 54, 55, 63, appropriate information to calculate the indicators. adopted at the General Assembly of the United Nations 64 9MJ_IFYFGFXJ_NX_HTSÜªLZWJI_ZXNSL_YMJ_(8._IJÜªSNYNTSX_ held in September 2015. The 169 targets contained in them aim to end poverty, protect the planet, and ALIGNMENT WITH GLOBAL REPORTING ensure prosperity for all as part of a new sustainable 13, 26, 27, 28, 29, 41, 42, 43, 52, 53, 54, INITIATIVE (GRI) GUIDELINES development agenda. 55, 56, 57, 58, 59, 63, 64, 65, 66 In order to enhance our sustainability communication To show our clear commitment to contribute to the to our stakeholders and comply with internationally SDGs implementation, across the pages of this report 14, 26, 27, 28, 29, 41, 42, 43, 52, 53, 55, agreed disclosures and metrics, CEMEX uses the Glob- ^TZ_¥NQQ_ÜªSI_YMJ_NHTSX_HTWWJXUTSINSL_YT_YMJ_WJKJWWJI_8),_ 53, 63, 64 al Reporting Initiative (GRI) guidelines to prepare its Sustainable Development Reports. From 2008 to 2013, we met an application level of A+ using GRI-G3. From 41, 42, 42, 43, 51, 53, 57, 58, 59, 60, 61, 2014 to 2016 we applied the GRI-G4 Guidelines, using 63, 64 YMJ_Ñ¦NS_FHHTWIFSHJÑ§_HTRUWJMJSXN[J_TUYNTS__ 27, 29, 30, 41, 42, 43, 44, 45, 47, 48, 49, 50, 52, 58, 59, 60, 61, 62, 63, 64, 65, 66, 73, 77 189 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 5.2 External Advisory Panel members and statement 9MJ_&I[NXTW^_5FSJQ_ MJSHJKTWYM_WJKJWWJI_YT_FX_Ñ¦YMJ_5FSJQÑ§__WJHTLSN_JX_YMNX_.SYJLWFYJI_ Report as an effort to provide all stakeholders with a holistic overview of CEMEX’s IRMA GÓMEZ strategic vision, drivers of value creation, operating performance, governance, Undersecretary for Management, FSI_FS_ZSIJWXYFSINSL_TK_YMJ_PJ^_ÜªSFSHNFQ_FSI_STS__ÜªSFSHNFQ_YTUNHX_YMFY_XMFUJ_YMJ_ Mexican Ministry of Public Education business today, and that are likely to shape the business tomorrow. SCOPE OF OUR REVIEW report along the lines of the proposed framework of the International Integrated Reporting Council. This pro-Similar to previous years, the Sustainability Reporting cess promotes integrated thinking and strategy across FELIPE PICH Advisory Panel reviewed an advanced draft of CEMEX the organization, and is likely to enhance the positive 2017 Integrated Report: Leading our Industry’s Digital Founding Director environmental and social impacts CEMEX has already YWFSXKTWRFYNTS__9MJ_&I[NXTW^_5FSJQ_RJRGJWX_ÜªWXY_HTS- Pich-Aguilera Architects generated in all of the geographies in which it operates. vened in January 2018 to discuss the evaluation and advisory process, before being submitted the report in Moreover, the Panel commends the growing focus on February, having ample time to review the report and the role CEMEX can play in terms of helping realize the ROBERT RUTTMANN discuss their recommendations. Sustainable Development Goals (SDGs), with a par- .S[JXYRJSY_4KÜªHJ_)NWJHYTW_ ticular focus on the direct contribution CEMEX makes Julius Bär The Panel members shared with management detailed Head of Competence Center HTRRJSYX_FSI_XUJHNÜªH_XZLLJXYNTSX_KTW_NRUWT[JRJSY_ YT_YJS_XUJHNÜªH_8),X__,TFQ___3T_5T[JWY^ _,TFQ___,TTI_ for Sustainability Health and Well Being; Goal 4 Quality Education; Goal in reporting and activities in general. The comments of St. Gallen University 5 Gender Equality; Goal 8 Decent Work and Economic the report concern both current activities, recommenda-Growth; Goal 9 Industry Innovation and Infrastructure; tions, and strategic ideas worth exploring in the future. Goal 11 Sustainable Cities and Communities; Goal 12 Responsible Consumption and Production; Goal 13 REPORTING FRAMEWORK, STYLE AND Climate Action; and Goal 15 Life on Land. IMPROVEMENTS In addition, the Panel also recognizes that CEMEX MARGARETH FLÓREZ The Panel appreciates the efforts to present the activities are likely also to have an indirect impact on Executive Director of content in a more integrated, clear fashion, making RedEAmérica four further SDGs: Goal 6 Clean Water and Sanitation; it easy to read and follow. The improvements in the Goal 7 Affordable and Clean Energy; Goal 10 Reduce formatting of the report are substantial. The Panel Inequalities; and Goal 17 Partnerships for the Goals. is also pleased with the efforts CEMEX has made to align the report with the Global Reporting Initiative G4 SUSTAINABILITY GOVERNANCE Guidelines, which helps focus the analysis on the most RAMÓN PÉREZ GIL material aspects in the business. The panel recognizes that only 7 members of the Ex-Global Counselor, board are independent, which may raise questions International Union for the The Panel also recognizes that CEMEX has success-among the investment community about the board’s Conservation of Nature (IUCN) fully executed the recommendation of an integrated 190 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

5.2 External Advisory Panel members and statement As such, the company’s carbon management strategy is vital to better manage the firm’s business risks – i.e. focusing on alternative fuels utilization, low temperature clinkers, and improving thermal efficiency of clinker production. However, the Panel notes that CEMEX is still experiencing annual increases in its gross CO2 emissions per unit of cementitious products. This reflects an important potential to improve the firm’s efficiency with respect to COs emission per unit of cementitious products. Moreover, the Panel is also aware that CEMEX delayed its target year to 2020 to reduce its CO2 emissions intensity (by 25% relative to its 1990 baseline) and to derive 35% of its energy from alternatives. This reality may suggest to investors and stakeholders that reducing carbon emissions may not be as strategically important as implied in the report. The Panel recommends a clear prioritization in this area, since any further delay could have an impact on the firm’s credibility with respect to achieving its emissions targets. ENERGY AND WATER CONSUMPTION The Panel notes the company’s still heavy reliance on fuel sources that cause high carbon emissions (in particular petroleum coke, from which the company sources nearly 50% of its energy). The Panel recommends taking steps to communicate these challenges more transparently, and also to reduce this heavy reliance on high carbon emission fuel sources. At the same time, the Panel recognizes that the firm did achieve an alternative fuel substitution rate of 26.2% in the last year, so the framework for improvement seems to be in place. The Panel encourages further progress in this domain. The Panel recognizes the strong CEMEX track record in water consumption. Indeed, water consumption is important to CEMEX, especially since the firm operates in water stressed regions in which pollution of this scarce resource and competition for use are potential risks. It is in this context that the Panel applauds the firm’s efforts to reduce its water use over the last three years. SOCIAL ISSUES The section IMPROVING QUALITY OF LIFE AND WELLBEING clearly conveys the place that social issues have in the sustainability strategy and in the CEMEX’s business model. This version of the report achieves, on the one hand, transmitting a more unified global message about the Company’s social performance, and on the other hand, it illustrates its initiatives with specific national cases. The introduction of said cases in the report, conveys a greater sense of integration of social actions around the strategy, as well as a greater depth and scale in the efforts. In the future, it is recommended to include new indicators of social outcomes among the KPIs to better reflect the commitment and performance of the Company in this field. Today the indicator is the number of beneficiaries. Despite the complexity of including new indicators, doing so would contribute to strengthening the relevance of the social issue in the Company’s strategy and achieving results that benefit both the company and the communities. CONCLUDING REMARKS The Panel recognizes the company’s goal of becoming a global leader in sustainable construction. To this end, the Panel also acknowledges the firm’s proactive approach to integrating material environmental, social and governance considerations into the firm’s operating strategy. This year’s integrated report demonstrates that this journey already includes multiple broad-scale initiatives toward becoming a leader in sustainable construction. Examples are extensive, ranging from efforts to reduce carbon emissions and improve labor standards in all parts of the value chain to efforts to use resources more efficiently to serving as a key partner in the development of the global communities in which CEMEX is active. The Panel especially recognizes the firm’s commendable engagement and support to the people affected by the tragic natural disasters in the US, Mexico and Puerto Rico last year. The integrated approach to becoming a global leader in sustainable construction is having a decidedly positive impact on the world. A key component of this journey toward becoming a global leader in sustainable construction will also certainly be an improvement of the firm’s safety record. The Panel is convinced that an improvement in this area is achievable, not least due to management’s serious and public commitment to the Zero4Life goal. We wish the company every success in the coming year, and remain grateful for the opportunity to offer our commentaries and recommendations in efforts to support CEMEX in its goal of becoming a global leader in sustainable construction. Yours faithfully, The CEMEX Advisory Panel on Sustainability 191 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION

5.2 External Advisory Panel members and statement As such, the company’s carbon management strategy is vital to better manage the firm’s business risks – i.e. focusing on alternative fuels utilization, low temperature clinkers, and improving thermal efficiency of clinker production. However, the Panel notes that CEMEX is still experiencing annual increases in its gross CO2 emissions per unit of cementitious products. This reflects an important potential to improve the firm’s efficiency with respect to COs emission per unit of cementitious products. Moreover, the Panel is also aware that CEMEX delayed its target year to 2020 to reduce its CO2 emissions intensity (by 25% relative to its 1990 baseline) and to derive 35% of its energy from alternatives. This reality may suggest to investors and stakeholders that reducing carbon emissions may not be as strategically important as implied in the report. The Panel recommends a clear prioritization in this area, since any further delay could have an impact on the firm’s credibility with respect to achieving its emissions targets. ENERGY AND WATER CONSUMPTION The Panel notes the company’s still heavy reliance on fuel sources that cause high carbon emissions (in particular petroleum coke, from which the company sources nearly 50% of its energy). The Panel recommends taking steps to communicate these challenges more transparently, and also to reduce this heavy reliance on high carbon emission fuel sources. At the same time, the Panel recognizes that the firm did achieve an alternative fuel substitution rate of 26.2% in the last year, so the framework for improvement seems to be in place. The Panel encourages further progress in this domain. The Panel recognizes the strong CEMEX track record in water consumption. Indeed, water consumption is important to CEMEX, especially since the firm operates in water stressed regions in which pollution of this scarce resource and competition for use are potential risks. It is in this context that the Panel applauds the firm’s efforts to reduce its water use over the last three years. SOCIAL ISSUES The section IMPROVING QUALITY OF LIFE AND WELLBEING clearly conveys the place that social issues have in the sustainability strategy and in the CEMEX’s business model. This version of the report achieves, on the one hand, transmitting a more unified global message about the Company’s social performance, and on the other hand, it illustrates its initiatives with specific national cases. The introduction of said cases in the report, conveys a greater sense of integration of social actions around the strategy, as well as a greater depth and scale in the efforts. In the future, it is recommended to include new indicators of social outcomes among the KPIs to better reflect the commitment and performance of the Company in this field. Today the indicator is the number of beneficiaries. Despite the complexity of including new indicators, doing so would contribute to strengthening the relevance of the social issue in the Company’s strategy and achieving results that benefit both the company and the communities. CONCLUDING REMARKS The Panel recognizes the company’s goal of becoming a global leader in sustainable construction. To this end, the Panel also acknowledges the firm’s proactive approach to integrating material environmental, social and governance considerations into the firm’s operating strategy. This year’s integrated report demonstrates that this journey already includes multiple broad-scale initiatives toward becoming a leader in sustainable construction. Examples are extensive, ranging from efforts to reduce carbon emissions and improve labor standards in all parts of the value chain to efforts to use resources more efficiently to serving as a key partner in the development of the global communities in which CEMEX is active. The Panel especially recognizes the firm’s commendable engagement and support to the people affected by the tragic natural disasters in the US, Mexico and Puerto Rico last year. The integrated approach to becoming a global leader in sustainable construction is having a decidedly positive impact on the world. A key component of this journey toward becoming a global leader in sustainable construction will also certainly be an improvement of the firm’s safety record. The Panel is convinced that an improvement in this area is achievable, not least due to management’s serious and public commitment to the Zero4Life goal. We wish the company every success in the coming year, and remain grateful for the opportunity to offer our commentaries and recommendations in efforts to support CEMEX in its goal of becoming a global leader in sustainable construction. Yours faithfully, The CEMEX Advisory Panel on Sustainability

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 5.3 Terms we use Financial Industry American Depositary Shares (ADSs) are a means Operating EBITDA CEMEX defines it as operating Aggregates are sand and gravel, which are mined from for non-U.S.-based corporations to list their ordinary earnings before other expenses, net, plus depreciation quarries. They give ready-mix concrete its necessary equity on an American stock exchange. Denominated and amortization. Operating EBITDA does not include volume and add to its overall strength. Under normal in US dollars, they confer full rights of ownership to revenues and expenses that are not directly related circumstances, one cubic meter of fresh concrete the corporation’s underlying shares, which are held on to CEMEX’s main activity, or which are of an unusual contains two tons of gravel and sand. deposit by a custodian bank in the company’s home or non-recurring nature under International Financial Clinker is an intermediate cement product made by country or territory. In relation to CEMEX, Citibank, Reporting Standards (IFRS). Operating EBITDA is not a sintering limestone, clay, and iron oxide in a kiln at N.A. is the depositary of CEMEX’s ADSs and each ADS GAAP measure. around 1,450 degrees Celsius. One ton of clinker is represents 10 CPOs. The CEMEX ADSs are listed on the Ordinary Participation Certificates (CPOs) are issued used to make approximately 1.1 tons of gray Portland New York Stock Exchange. under the terms of a CPO Trust Agreement governed cement. bps (Basis Point) is a unit of percentage measure equal by Mexican law and represent two of CEMEX’s series Fly ash is a combustion residue from coal-fired power to 0.01%, used to measure the changes to interest rates, A shares and one of CEMEX’s series B shares. This plants that can be used as a non-clinker cementitious equity indices, and fixed-income securities. instrument is listed on the Mexican Stock Exchange. material. Free cash flow CEMEX defines it as operating EBITDA pp equals percentage points. Gray Portland cement is a hydraulic binding agent with minus net interest expense, maintenance capital Strategic capital expenditures CEMEX defines it as a composition by weight of at least 95% clinker and expenditures, change in working capital, taxes paid, and investments incurred with the purpose of increasing 0–5% of a minor component (usually calcium sulfate). other cash items (net other expenses less proceeds the company’s profitability. These include capital It can set and harden underwater and, when mixed with from the disposal of obsolete and/or substantially expenditures on projects designed to increase aggregates and water, produces concrete or mortar. depleted operating fixed assets that are no longer in profitability by expanding capacity, and margin operation). Free cash flow is not a GAAP measure. Installed capacity is the theoretical annual production improvement capital expenditures, which are projects capacity of a plant; whereas effective capacity is a LIBOR (London Interbank Offered Rate) is a reference designed to increase profitability by reducing costs. plant’s actual optimal annual production capacity, which rate based on the interest rates at which banks borrow Strategic capital expenditures is not a GAAP measure. can be 10–20% less than installed capacity. unsecured funds from other banks in London. TIIE (Tasa de Interés Interbancaria de Equilibrio) is a Metric ton is the equivalent of 1.102 short tons. Maintenance capital expenditures CEMEX defines it measure of the average cost of funds in pesos in the as investments incurred with the purpose of ensuring Mexican interbank money market. Petroleum coke (petcoke) is a by-product of the oil the company’s operational continuity. These include refining coking process. Total debt CEMEX defines it as short-term and long-capital expenditures on projects required to replace term debt plus convertible securities, liabilities secured Pozzolana is a fine, sandy volcanic ash. obsolete assets or maintain current operational levels with account receivables and capital leases. Total debt and mandatory capital expenditures, which are projects Ready-mix concrete is a mixture of cement, aggregates, is not a GAAP measure. required to comply with governmental regulations or and water. company policies. Maintenance capital expenditures is Slag is the by-product of smelting ore to purify metals. not a GAAP measure. Net working capital CEMEX defines it as net trade accounts receivables plus inventories plus other accounts receivable including advanced payments minus trade payables minus operative taxes excluding income tax minus other accounts payable and accrued expenses. Working capital is not a GAAP measure. 193 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT

COMPANY OVERVIEW OUR STRATEGY GOVERNANCE PERFORMANCE IN DETAIL ABOUT THIS REPORT 5.4 Investor, media and sustainability information EXCHANGE LISTINGS MEDIA RELATIONS CONTACT CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING BOLSA MEXICANA DE VALORES (BMV) mr@cemex.com MEXICO Phone: +52 (81) 8888-4327 STATEMENTS Ticker symbol: CEMEXCPO This integrated report contains forward-looking statements within the meaning of the U.S. Share series: CPO INVESTOR RELATIONS CONTACT federal securities laws. We intend these forward-looking statements to be covered by the (representing two A shares and one B share) ir@cemex.com safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In From the US: 1 877 7CX NYSE some cases, these statements can be identified by the use of forward-looking words such NEW YORK STOCK EXCHANGE (NYSE) From other countries: +1 (212) 317-6000 FX_Ñ¦RF^_Ñ§_Ñ¦XMTZQI_Ñ§_Ñ¦HTZQI_Ñ§_Ñ¦FSYNHNUFYJ_Ñ§_Ñ¦JXYNRFYJ_Ñ§_Ñ¦J]UJHY_Ñ§_Ñ¦UQFS_Ñ§_Ñ¦GJQNJ[J_Ñ§_Ñ¦UWJINHY_Ñ§_Ñ¦UTYJSYNFQÑ§_ UNITED STATES FSI_Ñ¦NSYJSIÑ§_TW_TYMJW_XNRNQFW_¥TWIX__9MJXJ_KTW¥FWI_QTTPNSL_XYFYJRJSYX_WJKQJHY_TZW_HZWWJSY_ Ticker symbol: CX expectations and projections about future events based on our knowledge of present facts SUSTAINABILITY CONTACT Share series: ADS (representing 10 CPOs) and circumstances and assumptions about future events. These statements necessarily sd@cemex.com involve risks and uncertainties that could cause actual results to differ materially from our WEB ADDRESS expectations. Some of the risks, uncertainties and other important factors that could cause www.cemex.com results to differ, or that otherwise could have an impact on us or our subsidiaries, include: the cyclical activity of the construction sector; our exposure to other sectors that impact NEW YORK OFFICE our business, such as, but not limited to, the energy sector; competition; general political, ____2FINXTS_&[J____YM_Ü«TTW economic and business conditions in the markets in which we operate or that affect our New York, NY 10022 USA operations; the regulatory environment, including environmental, tax, antitrust and acquisition-Phone: +1 (212) 317-6000 related rules and regulations; our ability to satisfy our obligations under our material debt Fax: +1 (212) 317-6047 agreements, the indentures that govern our senior secured notes and our other debt instruments; the impact of our below investment grade debt rating on our cost of capital; our ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from our cost-reduction initiatives and implement our global pricing initiatives for our products; the increasing reliance on information technology infrastructure for our invoicing, procurement, financial statements and other processes that can adversely affect our sales and operations in the event that the infrastructure does not work as intended, experiences We welcome your feedback on our reporting and performance. technical difficulties or is subjected to cyber-attacks; weather conditions; natural disasters Please send your comments and suggestions to: and other unforeseen events; and the other risks and uncertainties described elsewhere in this integrated report. Readers are urged to read this integrated report and carefully consider CEMEX, S.A.B. DE C.V. the risks, uncertainties and other factors that affect our business. The information contained Investor Relations, Corporate Communications and Public Affairs in this integrated report is subject to change without notice, and we are not obligated to Av. Ricardo Margain Zozaya 325 publicly update or revise forward-looking statements. This integrated report also includes 66265 San Pedro Garza Garcia, N.L. Mexico statistical data regarding the production, distribution, marketing and sale of cement, ready-Tel: +52 (81) 8888-8888 mix concrete, clinker and aggregates. We generated some of this data internally, and some corporate.communications@cemex.com was obtained from independent industry publications and reports that we believe to be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their reports in this integrated report. ©2018 CEMEX S.A.B DE C.V. All rights reserved. 194 / LEADING OUR INDUSTRY’S DIGITAL TRANSFORMATION CEMEX 2017 INTEGRATED REPORT