EX-99.2 3 d577056dex992.htm SECOND QUARTER 2018 RESULTS FOR CEMEX LATAM HOLDINGS, S.A

Exhibit 2

2018 SECOND QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutiérrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com

OPERATING AND FINANCIAL HIGHLIGHTS January—June Second Quarter 2018 2017 % var 2018 2017 % var Consolidated cement volume 3,331 3,643 (9%) 1,638 1,810 (10%) Consolidated domestic gray cement volume 2,905 3,185 (9%) 1,442 1,571 (8%) Consolidated ready-mix volume 1,287 1,475 (13%) 616 719 (14%) Consolidated aggregates volume 3,235 3,538 (9%) 1,558 1,775 (12%) Net sales 572 626 (9%) 280 305 (8%) Gross profit 233 281 (17%) 108 130 (17%) as % of net sales 40.7% 44.8% (4.1pp) 38.7% 42.6% (3.9pp) Operating earnings before other expenses, net 88 129 (32%) 42 55 (25%) as % of net sales 15.4% 20.6% (5.2pp) 14.9% 18.1% (3.2pp) Controlling interest net income (loss) 34 51 (34%) 4 16 (77%) Operating EBITDA 128 170 (25%) 62 76 (19%) as % of net sales 22.3% 27.1% (4.8pp) 22.0% 25.0% (3.0pp) Free cash flow after maintenance capital 18 58 (69%) 47 41 14% expenditures Free cash flow 17 30 (44%) 46 29 60% Net debt 856 897 (5%) 856 897 (5%) Total debt 895 936 (4%) 895 936 (4%) Earnings of continuing operations per share 0.06 0.10 (37%) 0.01 0.03 (80%) Shares outstanding at end of period 557 557 0% 557 557 0% Employees 4,298 4,518 (5%) 4,298 4,518 (5%) Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters. In millions of US dollars, except volumes, percentages, employees, and per-share amounts. Shares outstanding are presented in millions. Consolidated net sales during the second quarter of 2018 declined by explained by lower contributions from Colombia, Panama and Rest of 8% compared to those in the second quarter of 2017. The decline is CLH, partially offset by better results in Costa Rica. mainly due to lower volumes from our operations in Colombia, Panama Operating EBITDA margin during the second quarter of 2018 declined and Nicaragua. by 3.0pp, compared to that in the second quarter of 2017. Cost of sales as a percentage of net sales during the second quarter Controlling interest net income during the second quarter of 2018 increased by 3.9pp from 57.4% to 61.3%, on a year-over-year basis. reached US$4 million, compared to US$16 million in the same quarter Operating expenses as a percentage of net sales during the quarter of 2017. declined by 0.7pp from 24.5% to 23.8%, compared to those of the same Total debt decreased by US$40 million during the quarter, reaching period of 2017. US$895 million. Operating EBITDA during the second quarter of 2018 declined by 19% compared to that of the second quarter of 2017. The decline is mainly 2018 Second Quarter Results Page 2

OPERATING RESULTS Colombia January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 265 291 (9%) 129 135 (5%) Operating EBITDA 46 60 (23%) 22 23 (4%) Operating EBITDA margin 17.5% 20.8% (3.3pp) 16.8% 16.7% 0.1pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume (10%) (9%) (14%) (11%) (14%) (13%) Price (USD) 3% 8% 3% 5% (0%) 1% Price (local currency) (0%) 4% 0% 2% (3%) (2%) Year-over-year percentage variation. In Colombia, during the second quarter our domestic gray cement, ready-mix and aggregates volumes declined by 9%, 11%, and 13%, respectively, compared to those in the second quarter of 2017. For the first six months of the year, our domestic gray cement, ready-mix and aggregates volumes decreased by 10%, 14%, and 14%, respectively, compared to those in the same period of 2017. The persistent weakness in construction activity, as well as the uncertainty around the June presidential elections, affected cement consumption during the first semester. We estimate that daily national cement consumption, including imports, declined by 3% during the first semester and by 1.5% during the second quarter of 2018. Our focus on pricing combined led to an underperformance of our cement volumes versus those of the industry. Our cement prices during the quarter continued their upward trajectory since July of last year. Since then, we have implemented 4 prices increases in bagged-cement and 1 price increase in bulk-cement. Our prices point-to-point July 2017 to June 2018, were 8% and 11% higher in local-currency and in dollar-terms, respectively. Panama January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 111 141 (21%) 50 72 (30%) Operating EBITDA 35 58 (40%) 14 27 (46%) Operating EBITDA margin 31.1% 41.0% (9.9pp) 28.8% 37.7% (8.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume (22%) (26%) (23%) (36%) (4%) (13%) Price (USD) (0%) (0%) (8%) (10%) (5%) (4%) Price (local currency) (0%) (0%) (8%) (10%) (5%) (4%) Year-over-year percentage variation. In Panama during the second quarter our domestic gray cement, ready-mix and aggregates volumes decreased by 26%, 36%, and 13%, respectively, compared to those in the second quarter of 2017. For the first half of 2018, our domestic gray cement, ready-mix and aggregates volumes declined by 22%, 23%, and 4%, respectively, compared to those in the first half of 2017. Our estimates indicate that industry volumes during the quarter declined by 23%, mainly due to the strike, which impacted heavily across all sectors, but particularly the infrastructure sector. Due to our higher share in infrastructure projects, our cement and ready-mix volumes during the second quarter declined by 26% and 36%, respectively. From the 26% cement-volume decline, about 16% was due to the strike and the rest to subdued construction activity. 2018 Second Quarter Results Page 3

OPERATING RESULTS Costa Rica January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 79 77 3% 43 39 10% Operating EBITDA 25 27 (6%) 16 15 6% Operating EBITDA margin 32.1% 35.3% (3.2pp) 36.6% 38.1% (1.5pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume 11% 18% 20% 29% 4% (11%) Price (USD) 2% 4% (1%) 1% (8%) 10% Price (local currency) 2% 3% (1%) (0%) (8%) 9% Year-over-year percentage variation. In Costa Rica, during the second quarter our domestic gray cement and ready-mix volumes increased by 18% and 29%, respectively, while our aggregates volumes declined by 11%, compared to those in the second quarter of 2017. For the first six months of the year our domestic gray cement, ready-mix and aggregates volumes increased by 11%, 20% and 4%, respectively, compared to those of the same period of 2017. Our volumes benefited during the quarter from our participation in big projects like the new building for the parliament and Oxígeno, as well as to our value-added offers for the industrial segment. Regarding pricing of our products, quarterly cement and ready-mix prices increased by 2% and 3%, respectively, on a sequential basis. The improvement in cement reflects our price increase made in February, while the improvement in ready-mix reflects a favorable project-mix, as well as the impact of services and surcharges. Rest of CLH January—June Second Quarter 2018 2017 % var 2018 2017 % var Net sales 124 132 (6%) 61 66 (8%) Operating EBITDA 41 48 (16%) 19 24 (18%) Operating EBITDA margin 32.8% 36.5% (3.7pp) 31.5% 35.5% (4.0pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume (6%) (5%) 3% (11%) 12% (5%) Price (USD) (1%) (2%) (1%) (1%) (7%) (8%) Price (local currency) 2% 1% 1% 1% (3%) (3%) Year-over-year percentage variation. In the Rest of CLH, region which includes our operations in Nicaragua, Guatemala and El Salvador, during the second quarter our domestic gray cement, ready-mix and aggregates volumes declined by 5%, 11%, and 5%, respectively, compared to those in the second quarter of 2017. During the first half of the year, our domestic gray cement decreased by 6%, while our ready-mix and aggregates volumes increased by 3% and 12%, respectively, compared to those in the same period of 2017. In Nicaragua, our cement volumes were affected by the political unrest that started in mid-April and has intensified since then. This crisis has led to generalized uncertainty and most private investment has been halted, affecting particularly the tourism and commercial sectors. In the construction sector, projects funded by the private sector have been suspended. In contrast, the government has the intention to continue already-funded infrastructure projects. With regards to Guatemala, our cement and ready-mix volumes reached quarterly record levels in both businesses. The residential and the industrial-and-commercial sectors were the main drivers of demand during the quarter mainly due to vertical-housing projects and shopping malls in Guatemala City. 2018 Second Quarter Results Page 4

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January—June Second Quarter 2018 2017 % var 2018 2017 % var Operating earnings before other expenses, net 88 129 (32%) 42 55 (25%) + Depreciation and operating amortization 40 41 20 21 Operating EBITDA 128 170 (25%) 62 76 (19%)—Net financial expense 29 32 14 15 —Capital expenditures for maintenance 15 23 9 13 —Change in working Capital 10 (13) (23) (36) —Taxes paid 25 65 13 43 —Other cash items (Net) 28 2 2 (2)—Free cash flow discontinued operations 3 4 (0) 3 Free cash flow after maintenance capital exp 18 58 (69%) 47 41 14%—Strategic Capital expenditures 1 28 0 12 Free cash flow 17 30 (44%) 46 29 60% In millions of US dollars, except percentages. Information on Debt Second Quarter First Quarter Second Quarter 2018 2017 % var 2018 2018 2017 Total debt 1, 2 895 936 935 Currency denomination Short term 23% 2% 36% U.S. dollar 98% 98% Long term 77% 98% 64% Colombian peso 2% 2% Cash and cash equivalents 39 39 1% 32 Interest rate Net debt 856 897 (5%) 903 Fixed 62% 66% Variable 38% 34% In millions of US dollars, except percentages. 1 Includes capital leases, in accordance with International Financial Reporting Standards (IFRS). 2 Represents the consolidated balances of CLH and subsidiaries. 2018 Second Quarter Results Page 5

OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts January—June Second Quarter INCOME STATEMENT 2018 2017 % var 2018 2017 % var Net sales 571,903 626,470 (9%) 280,018 305,109 (8%) Cost of sales (339,398) (345,838) 2% (171,741) (175,100) 2% Gross profit 232,505 280,632 (17%) 108,277 130,009 (17%) Operating expenses (144,350) (151,823) 5% (66,599) (74,673) 11% Operating earnings before other expenses, net 88,155 128,809 (32%) 41,678 55,336 (25%) Other expenses, net (6,026) (1,464) (312%) (4,668) 836 n/a Operating earnings 82,129 127,345 (36%) 37,010 56,172 (34%) Financial expenses (29,154) (32,123) 9% (14,408) (15,481) 7% Other income (expenses), net 4,985 (8,305) n/a (13,774) (13,076) (5%) Net income before income taxes 57,960 86,917 (33%) 8,828 27,615 (68%) Income tax (23,555) (32,119) 27% (5,339) (10,044) 47% Profit of continuing operations 34,405 54,798 (37%) 3,489 17,571 (80%) Discontinued operations (724) (3,477) 79% 134 (1,785) 0% Consolidated net income 33,681 51,321 (34%) 3,623 15,786 (77%) Non-controlling Interest Net Income (79) (190) 58% (11) (76) 85% Controlling Interest Net Income 33,602 51,131 (34%) 3,612 15,710 (77%) Operating EBITDA 127,723 169,898 (25%) 61,577 76,353 (19%) Earnings of continued operations per share 0.06 0.10 (37%) 0.01 0.03 (80%) Earnings of discontinued operations per share (0.00) 0.00 n/a 0.00 0.00 n/a as of June 30 BALANCE SHEET 2018 2017 % var Total Assets 3,247,497 3,315,647 (2%) Cash and Temporary Investments 39,222 38,954 1% Trade Accounts Receivables 112,400 112,944 (0%) Other Receivables 54,224 59,345 (9%) Inventories 84,454 76,823 10% Assets held for sale 54,519 0 n/a Other Current Assets 30,372 18,603 63% Current Assets 375,191 306,669 22% Fixed Assets 1,234,913 1,241,541 (1%) Other Assets 1,637,393 1,767,437 (7%) Total Liabilities 1,681,901 1,809,908 (7%) Current Liabilities 535,596 355,778 51% Long-Term Liabilities 1,131,463 1,438,135 (21%) Other Liabilities 14,842 15,995 (7%) Consolidated Stockholders’ Equity 1,565,596 1,505,739 4% Non-controlling Interest 6,367 4,961 28% Stockholders’ Equity Attributable to Controlling Interest 1,559,229 1,500,778 4% 2018 Second Quarter Results Page 6

OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in millions of Colombian Pesos in nominal terms, except per share amounts January—June Second Quarter INCOME STATEMENT 2018 2017 % var 2018 2017 % var Net sales 1,629,632 1,839,704 (11%) 804,247 905,821 (11%) Cost of sales (967,112) (1,015,594) 5% (493,261) (519,845) 5% Gross profit 662,520 824,110 (20%) 310,986 385,976 (19%) Operating expenses (411,324) (445,847) 8% (191,283) (221,694) 14% Operating earnings before other expenses, net 251,196 378,263 (34%) 119,703 164,282 (27%) Other expenses, net (17,170) (4,300) (299%) (13,406) 2,483 n/a Operating earnings 234,026 373,963 (37%) 106,297 166,765 (36%) Financial expenses (83,073) (94,332) 12% (41,383) (45,961) 10% Other income (expenses), net 14,204 (24,390) n/a (39,562) (38,821) (2%) Net income before income taxes 165,157 255,241 (35%) 25,352 81,983 (69%) Income tax (67,121) (94,319) 29% (15,330) (29,818) 49% Profit of continuing operations 98,036 160,922 (39%) 10,022 52,165 (81%) Discontinued operations (2,062) (10,212) 80% 384 (5,300) n/a Consolidated net income 95,974 150,710 (36%) 10,406 46,865 (78%) Non-controlling Interest Net Income (226) (557) 59% (32) (225) 86% Controlling Interest Net Income 95,748 150,153 (36%) 10,374 46,640 (78%) Operating EBITDA 363,945 498,925 (27%) 176,856 226,679 (22%) Earnings of continued operations per share 176 289 (39%) 18 94 (81%) Earnings of discontinued operations per share (4) (18) (80%) 1 (10) n/a as of June 30 BALANCE SHEET 2018 2017 % var Total Assets 9,517,763 10,073,795 (6%) Cash and Temporary Investments 114,952 118,353 (3%) Trade Accounts Receivables 329,423 343,153 (4%) Other Receivables 158,920 180,306 (12%) Inventories 247,518 233,407 6% Assets held for sale 159,783 0 n/a Other Current Assets 89,015 56,521 57% Current Assets 1,099,611 931,740 18% Fixed Assets 3,619,284 3,772,124 (4%) Other Assets 4,798,868 5,369,931 (11%) Total Liabilities 4,929,314 5,498,970 (10%) Current Liabilities 1,569,724 1,080,945 45% Long-Term Liabilities 3,316,092 4,369,429 (24%) Other Liabilities 43,498 48,596 (10%) Consolidated Stockholders’ Equity 4,588,449 4,574,825 0% Non-controlling Interest 18,661 15,071 24% Stockholders’ Equity Attributable to Controlling Interest 4,569,788 4,559,754 0% 2018 Second Quarter Results Page 7

OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales January—June Second Quarter 2018 2017 % var 2018 2017 % var NET SALES Colombia 264,975 290,518 (9%) 128,832 135,351 (5%) Panama 111,480 141,200 (21%) 50,184 71,594 (30%) Costa Rica 78,931 76,563 3% 43,232 39,135 10% Rest of CLH 124,002 131,889 (6%) 61,138 66,183 (8%) Others and intercompany eliminations (7,485) (13,700) 45% (3,368) (7,154) 53% TOTAL 571,903 626,470 (9%) 280,018 305,109 (8%) GROSS PROFIT Colombia 99,171 111,320 (11%) 47,038 47,131 (0%) Panama 44,800 65,555 (32%) 19,595 30,767 (36%) Costa Rica 35,034 35,452 (1%) 20,877 19,218 9% Rest of CLH 52,472 59,259 (11%) 24,880 28,649 (13%) Others and intercompany eliminations 1,028 9,046 (89%) (4,112) 4,242 N/A TOTAL 232,505 280,632 (17%) 108,278 130,008 (17%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 32,467 46,361 (30%) 14,526 15,550 (7%) Panama 27,063 48,748 (44%) 10,587 22,524 (53%) Costa Rica 22,916 24,500 (6%) 14,603 13,644 7% Rest of CLH 37,257 45,264 (18%) 17,523 21,905 (20%) Others and intercompany eliminations (31,548) (36,064) 13% (15,562) (18,286) 15% TOTAL 88,155 128,809 (32%) 41,677 55,337 (25%) OPERATING EBITDA Colombia 46,448 60,364 (23%) 21,668 22,654 (4%) Panama 34,693 57,827 (40%) 14,431 26,959 (46%) Costa Rica 25,349 27,008 (6%) 15,825 14,895 6% Rest of CLH 40,646 48,170 (16%) 19,253 23,522 (18%) Others and intercompany eliminations (19,413) (23,471) 17% (9,600) (11,677) 18% TOTAL 127,723 169,898 (25%) 61,577 76,353 (19%) OPERATING EBITDA MARGIN Colombia 17.5% 20.8% 16.8% 16.7% Panama 31.1% 41.0% 28.8% 37.7% Costa Rica 32.1% 35.3% 36.6% 38.1% Rest of CLH 32.8% 36.5% 31.5% 35.5% TOTAL 22.3% 27.1% 22.0% 25.0% 2018 Second Quarter Results Page 8

OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters January—June Second Quarter 2018 2017 % var 2018 2017 % var Total cement volume 1 3,331 3,643 (9%) 1,638 1,810 (10%) Total domestic gray cement volume 2,905 3,185 (9%) 1,442 1,571 (8%) Total ready-mix volume 1,287 1,475 (13%) 616 719 (14%) Total aggregates volume 3,235 3,538 (9%) 1,558 1,775 (12%) 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Per-country volume summary January—June Second Quarter Second Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. First Quarter 2018 DOMESTIC GRAY CEMENT Colombia (10%) (9%) (2%) Panama (22%) (26%) (9%) Costa Rica 11% 18% 14% Rest of CLH (6%) (5%) (3%) READY-MIX Colombia (14%) (11%) (4%) Panama (23%) (36%) (30%) Costa Rica 20% 29% 19% Rest of CLH 3% (11%) (8%) AGGREGATES Colombia (14%) (13%) (10%) Panama (4%) (13%) (16%) Costa Rica 4% (11%) 18% Rest of CLH 12% (5%) 4% 2018 Second Quarter Results Page 9

OPERATING RESULTS Price Summary Variation in U.S. dollars January—June Second Quarter Second Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. First Quarter 2018 DOMESTIC GRAY CEMENT Colombia 3% 8% (1%) Panama (0%) (0%) (0%) Costa Rica 2% 4% 2% Rest of CLH (1%) (2%) (1%) READY-MIX Colombia 3% 5% (2%) Panama (8%) (10%) (4%) Costa Rica (1%) 1% 3% Rest of CLH (1%) (1%) 0% AGGREGATES Colombia (0%) 1% 3% Panama (5%) (4%) (1%) Costa Rica (8%) 10% 5% Rest of CLH (7%) (8%) (6%) For Rest of CLH, volume-weighted average prices. Variation in local currency January—June Second Quarter Second Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. First Quarter 2018 DOMESTIC GRAY CEMENT Colombia (0%) 4% 1% Panama (0%) (0%) (0%) Costa Rica 2% 3% 2% Rest of CLH 2% 1% (0%) READY-MIX Colombia 0% 2% (0%) Panama (8%) (10%) (4%) Costa Rica (1%) (0%) 3% Rest of CLH 1% 1% 1% AGGREGATES Colombia (3%) (2%) 4% Panama (5%) (4%) (1%) Costa Rica (8%) 9% 5% Rest of CLH (3%) (3%) (5%) For Rest of CLH, volume-weighted average prices. 2018 Second Quarter Results Page 10

OTHER ACTIVITIES AND INFORMATION Information related to the Maceo Project xxxxxxxxxxxxxxxxx xxxx xxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxx xxxxxxxxxxxxx xxxxx xxxxxxxx xxxxxxxx xxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxx xxxxxxxxxxxxxx In July 2013, CEMEX Colombia had entered into a five-year lease agreement xxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx with a depository that had been designated by the Colombian National xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxx xxxxxxxxx Narcotics Directorate (Dirección Nacional de Estupefacientes) (the xxxxxxx xxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx “CNND”) with respect to the assets in Maceo Colombia affected by the xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxx expiration of property proceeding. The Colombian Administrator of Special xxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxx xxxxx xxxxxxxxxx xxxxx xxxxxxxxxxxxxx Assets (Sociedad de Activos Especiales S.A.S) (the “SAE”) assumed the xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx functions of the CNND after the CNND’s liquidation. x The lease agreement, along with an accompanying governmental mandate, authorized CEMEX Colombia to continue the work necessary for the construction and operation of the Maceo Project during the expiration of property proceeding. The Lease Agreement had a natural term until July 15, 2018. Notwithstanding the expiry of the natural term of Lease Agreement, CEMEX Colombia believes the Lease Agreement has the benefit of a renewal prerogative that operates pursuant to the Lease Agreement’s terms and conditions and by operation of law, and that it is also entitled to continue using the Maceo assets pursuant to the terms of the accompanying mandate until the conclusion of the expiration of property proceeding. Even though the SAE questions the validity of the documents signed with the CNND, the SAE and CEMEX Colombia continue to work on a long-term framework that would allow the Maceo plant to be commissioned while the expiration of property proceedings are resolved. 2018 Second Quarter Results Page 11

DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results The following table presents condensed combined information of the Under IFRS, CLH reports its consolidated results in its functional income statements of CEMEX Latam discontinued operations in its currency, which is the US Dollar, by translating the financial statements operating segment in Brazil for the six-month periods ended June 30, of foreign subsidiaries using the corresponding exchange rate at the 2018 and 2017: reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. INCOME STATEMENT Jan-Jun Second Quarter For the reader’s convenience, Colombian peso amounts for the (Millions of dollars) 2018 2017 2018 2017 consolidated entity are calculated by converting the US dollar amounts Sales 17.7 16.3 8.6 9.0 using the closing COP/US$ exchange rate at the reporting date for Cost of sales and operating exp. (18.5) (20.5) (8.4) (11.2) balance sheet purposes, and the average COP/US$ exchange rate for the Other expenses, net (0.1)—(0.0)—corresponding period for income statement purposes. The exchange rates are provided below. Interest expense, net and others (0.1) 0.1 (0.1) 0.1 Income (loss) before income tax (0.9) (4.1) (0.0) (2.1) Per-country/region selected financial information of the income Income tax 0.2 0.6 0.1 0.3 statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Net loss of discontinued operations (0.7) (3.5) 0.1 (1.8) Discontinued operations and assets held for sale On May 24, 2018, by means of one of its subsidiaries, CEMEX Latam Consolidated financial information entered into binding agreements with Votorantim Cimentos N/NE S.A. When reference is made to consolidated financial information means (“Votorantim”) for the sale of the Company’s operations in Brazil, which the financial information of CLH together with its consolidated comprise a water cement distribution terminal located in Manaus, subsidiaries. Amazonas state and its operating license. The transaction, which is subject to authorization by the authorities, is expected to be completed Presentation of financial and operating information during the fourth quarter of 2018. The selling price is approximately Individual information is provided for Colombia, Panama and Costa Rica. US$30 million subject to working capital adjustments. CEMEX Latam’s operations in Brazil for the six-month periods ended June 30, 2018 and Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. 2017 were reclassified and reported net of tax in the single line item “Discontinued Operations”. Moreover, in addition to assets held for sale presented in the condensed statement of financial position of $54,519 related to CEMEX Latam´s Brazilian operations, current liabilities of $535,596, include $20,584 of liabilities directly related with the Brazilian assets held for sale. Exchange rates January—June January—June Second Quarter 2018 EoP 2017 EoP 2018 average 2017 average 2018 average 2017 average Colombian peso 2,930.80 3,038.26 2,849.49 2,936.62 2,872.13 2,968.84 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 570.08 579.87 570.26 571.27 569.05 576.90 Euro 1.14 1.11 1.09 1.11 1.12 1.12 Amounts provided in units of local currency per US dollar. 2018 Second Quarter Results Page 12

DEFINITIONS OF TERMS AND DISCLOSURES Definition of terms Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation). Maintenance capital expenditures investments incurred for ensuring CLH’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or internal policies. Net debt equals total debt minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points. EoP equals End of Period. Strategic capital expenditures investments incurred with the purpose of increasing CLH’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs. Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables. 2018 Second Quarter Results Page 13