EX-99.2 3 d555800dex992.htm SECOND QUARTER 2018 RESULTS FOR CEMEX, S.A.B. DE C.V

Exhibit 2

SECOND QUARTER RESULTS Stock Listing Information NYSE (ADS) Ticker: CX Mexican Stock Exchange Ticker: CEMEXCPO Ratio of CEMEXCPO to CX = 10:1 Investor Relations In the United States: + 1 877 7CX NYSE In Mexico: + 52 (81) 8888 4292 E-Mail: ir@cemex.com 1

Operating and financial highlights January—June Second Quarter l-t-l l-t-l 2018 2017 % var % var 2018 2017 % var % var Consolidated cement volume 34,704 33,709 3% 18,629 17,838 4% Consolidated ready-mix volume 26,148 25,436 3% 13,923 13,207 5% Consolidated aggregates volume 72,934 72,764 0% 39,532 38,854 2% Net sales 7,185 6,687 7% 5% 3,805 3,568 7% 7% Gross profit 2,409 2,248 7% 5% 1,331 1,244 7% 8% as % of net sales 33.5% 33.6% (0.1pp) 35.0% 34.9% 0.1pp Operating earnings before other 840 826 2% 3% 504 479 5% 8% expenses, net as % of net sales 11.7% 12.3% (0.6pp) 13.2% 13.4% (0.2pp) Controlling interest net income (loss) 416 626 (34%) 382 288 32% Operating EBITDA 1,252 1,249 0% 0% 714 696 2% 4% as % of net sales 17.4% 18.7% (1.3pp) 18.8% 19.5% (0.7pp) Free cash flow after maintenance 117 183 (36%) 260 353 (26%) capital expenditures Free cash flow 78 126 (38%) 231 324 (29%) Total debt plus perpetual notes 10,890 11,927 (9%) 10,890 11,927 (9%) Earnings (loss) of continuing operations 0.27 0.30 (9%) 0.25 0.18 41% per ADS Fully diluted earnings (loss) of (1) 0.27 0.30 (9%) 0.24 0.17 40% continuing operations per ADS Average ADSs outstanding 1,540.7 1,494.1 3% 1,541.3 1,497.6 3% Employees 41,822 40,032 4% 41,822 40,032 4% This information does not include discontinued operations. Please see page 15 on this report for additional information. Cement and aggregates volumes in thousands of metric tons. Ready-mix volumes in thousands of cubic meters. In millions of US dollars, except volumes, percentages, employees, and per-ADS amounts. Average ADSs outstanding are presented in millions. Please refer to page 7 for end-of quarter CPO-equivalent units outstanding. (1) For the period January-June 2018, the effect of the potential dilutive shares generates anti-dilution; therefore, there is no change between the reported basic and diluted loss per share. Consolidated net sales in the second quarter of 2018 reached US$3.8 billion, representing an increase of 7% on a like-to-like basis, for the ongoing operations and for foreign exchange fluctuations, as well as in nominal terms, compared with the second quarter of 2017. The increase on a like-to-like basis was due to higher prices of our products, in local-currency terms in all our regions, as well as higher volumes in Mexico, the U.S. and our European and Asia, Middle East and Africa regions. Cost of sales as a percentage of net sales decreased by 0.1pp during the second quarter of 2018 compared with the same period last year, from 65.1% to 65.0%. The decrease was mainly driven by the timing in maintenance expenses. Operating expenses as a percentage of net sales increased by 0.3pp during the second quarter of 2018 compared with the same period last year, from 21.4% to 21.7%. The increase was mainly driven by higher distribution expenses. Operating EBITDA increased by 2% to US$714 million during the second quarter of 2018 compared with the same period last year, or an increase of 4% on a like-to-like basis for the ongoing operations and foreign exchange fluctuations. The increase on a like-to-like basis was mainly due to higher contributions in Mexico, the U.S. as well as our European and Asia, Middle East and Africa regions. Operating EBITDA margin decreased by 0.7pp from 19.5% in the second quarter of 2017 to 18.8% this quarter. Gain (loss) on financial instruments for the quarter was a gain of US$25 million, resulting mainly from the derivatives related to GCC shares. Foreign exchange results for the quarter was a gain of US$102 million, mainly due to the fluctuation of the Mexican peso versus the U.S. dollar, partially offset by the fluctuation of the Euro and the Colombian peso versus the U.S. dollar. Controlling interest net income (loss) was an income of US$382 million in the second quarter of 2018 versus an income of US$288 million in the same quarter of 2017. The higher income primarily reflects higher operating earnings before other expenses, net, lower financial expenses, higher income from financial instruments and a higher foreign exchange gain, partially offset by higher other expenses, net, higher income tax, and a negative variation in discontinued operations in the U.S. Total debt plus perpetual notes decreased by US$462 million during the quarter 2018 Second Quarter Results Page 2

Operating results Mexico January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 1,669 1,533 9% 8% 867 810 7% 13% Operating EBITDA 610 567 7% 7% 311 302 3% 8% Operating EBITDA margin 36.5% 37.0% (0.5pp) 35.8% 37.3% (1.5pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage Second Second Second January—June January—June January—June variation Quarter Quarter Quarter Volume (0%) 3% 10% 15% 11% 14% Price (USD) 4% (2%) 10% 3% 7% 3% Price (local currency) 4% 3% 9% 9% 7% 8% In Mexico, our domestic gray cement, ready-mix and aggregates volumes increased by 3%, 15%, and 14%, respectively, during the second quarter versus the same period last year. During the first six months of the year, ready-mix and aggregates volumes increased by 10% and 11%, respectively, while domestic gray cement volumes remained flat versus the comparable period of 2017. Domestic gray cement prices in local currency increased by 3% year-over-year and by 1% sequentially during the quarter. Our volumes during the quarter increased mainly due to favorable activity in the formal housing and industrial-and-commercial sectors. Sequential volumes of our three core products‘cement, ready-mix and aggregates‘grew by 11%. The self-construction sector moderated its growth during the quarter, and remains supported by sound economic indicators including job creation, real wages, and remittances. United States January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 1,844 1,731 7% 8% 989 916 8% 9% Operating EBITDA 298 287 4% 5% 189 170 11% 11% Operating EBITDA margin 16.2% 16.6% (0.4pp) 19.1% 18.6% 0.5pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year Second January—June January—June Second Quarter January—June Second Quarter percentage variation Quarter Volume 7% 9% 8% 8% 2% (1%) Price (USD) 3% 3% 2% 3% 5% 6% Price (local currency) 3% 3% 2% 3% 5% 6% In the United States, our domestic gray cement and ready-mix volumes increased by 9% and 8%, respectively, while our aggregates volumes decreased by 1%, during the second quarter of 2018 on a year-over-year basis. During the first six months of the year, domestic gray cement, ready-mix and aggregates volumes increased by 7%, 8% and 2%, respectively, on a year-over-year basis. Cement prices during the quarter, increased by 3% both year-over-year and sequentially. During the second quarter, we experienced the strongest cement volume growth in 12 quarters, supported by expanding underlying demand conditions coupled with recovery from poor weather conditions in the prior quarter. Residential activity continued to drive the market in the second quarter, with housing starts up 8% year-over-year. In the industrial-and-commercial sector, construction spending is up 3% May year-to-date with strength in lodging and commercial. In infrastructure, street-and-highway spending has been increasing this year, up 3% May year-to-date on the back of increased state spending. Contract awards in our key states are growing in excess of the national average, driven by specific state infrastructure funding initiatives. 2018 Second Quarter Results Page 3

Operating results South, Central America and the Caribbean January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 916 942 (3%) (3%) 461 470 (2%) 0% Operating EBITDA 214 254 (16%) (17%) 110 120 (9%) (9%) Operating EBITDA margin 23.4% 27.0% (3.6pp) 23.7% 25.6% (1.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage Second Second January—June Second Quarter January—June January—June variation Quarter Quarter Volume (2%) (2%) (13%) (14%) (9%) (12%) Price (USD) 2% 3% (1%) (2%) (3%) (0%) Price (local currency) 2% 3% (2%) (3%) (4%) (2%) In our South, Central America and the Caribbean region, our domestic gray cement volumes decreased by 2% during the second quarter and first six months of 2018, versus the comparable periods of 2017. Cement volumes on a like-to-like basis, including the regional operations of TCL, decreased by 2% and 4% during the second quarter and first six months of the year, respectively. In Colombia, during the second quarter and on a year-over-year basis, our domestic gray cement and ready-mix volumes decreased by 9% and 11%, respectively. During the first six months of the year, our domestic gray cement and ready-mix volumes decreased by 10% and 14%, respectively, versus the same period of 2017. Cement consumption during the quarter was affected by a weak demand environment; our focus on our pricing combined with subdued construction activity led to an underperformance versus the industry during the quarter. Our quarterly cement prices in local-currency-terms increased by 1% on a sequential basis. Europe January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 1,851 1,666 11% 1% 1,040 934 11% 6% Operating EBITDA 140 139 0% (9%) 121 109 11% 5% Operating EBITDA margin 7.5% 8.4% (0.9pp) 11.7% 11.7% 0.0pp In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—June Second Quarter January—June Second Quarter January—June Second Quarter variation Volume 2% 5% (3%) 4% (4%) 1% Price (USD) 10% 7% 13% 8% 12% 9% Price (local currency) 1% 2% 3% 2% 3% 4% In the Europe region, our domestic gray cement, ready-mix and aggregates volumes increased by 5%, 4%, and 1%, respectively, during the second quarter of 2018 on a year-over-year basis. During the first six months of the year our domestic cement increased by 2% while ready-mix and aggregates volumes decreased by 3% and 4%, respectively, compared with the same period in the previous year. In the United Kingdom, our domestic gray cement and ready-mix volumes decreased by 3% and 1%, respectively, while aggregates volumes increased by 2% during the second quarter of 2018 on a year-over-year basis. During the first six months of the year, our domestic gray cement, ready-mix and aggregates volumes decreased by 3%, 6% and 4%, respectively, versus the comparable period in 2017. The residential and infrastructure sectors were the main drivers of demand during the quarter. In Spain, our domestic gray cement, ready-mix and aggregates volumes increased by 7%, 36% and 26%, respectively, during the quarter and on a year-over-year basis. For the first six months of the year our domestic gray cement, ready-mix and aggregates volumes increased by 5%, 25% and 11%, respectively, versus the comparable period in 2017. Our cement volume growth during the quarter reflects continued favorable activity from the residential and industrial-and-commercial sectors. The residential sector benefited from favorable credit conditions, job creation, and pent-up housing demand. 2018 Second Quarter Results Page 4

Operating results In Germany, our domestic gray cement and aggregates volumes increased by 5% and 4%, respectively, while ready-mix volumes decreased by 3%, during the second quarter of 2018 compared with the same period of last year. During the first six months of the year, our domestic gray cement volumes increased by 3%, while ready-mix and aggregates volumes decreased by 6% and 4%, respectively, on a year-over-year basis. The business climate for the construction sector remains favorable, although activity continues to be affected by supply constraints. In Poland, both domestic gray cement and ready-mix volumes during the second quarter of 2018 increased by 17%, and aggregates volumes increased 3%. During the first six months of the year, our domestic gray cement volumes, ready-mix and aggregates volumes increased by 9%, 2%, and 4%, respectively, versus the comparable period in 2017. Our cement prices in local-currency terms during the quarter increased by 5% on a year-over-year basis and by 4% sequentially. The increase in cement volumes during the quarter was mainly due to a strong residential sector and our participation in large infrastructure projects. In our operations in France, both ready-mix and aggregates volumes increased by 1% during the second quarter of 2018 and on a year-over-year basis. During the first six months of the year and on a year-over-year basis, both ready-mix and aggregates volumes decreased by 4%. Volume growth during the quarter reflects continued activity in the industrial-and-commercial sector as well as ‘Grand Paris‘-related projects. Asia, Middle East and Africa January—June Second Quarter l-t-l l-t-l 2018 2017 % var 2018 2017 % var % var % var Net sales 728 653 11% 12% 353 327 8% 10% Operating EBITDA 114 113 1% 1% 52 49 6% 8% Operating EBITDA margin 15.7% 17.3% (1.6pp) 14.8% 15.0% (0.2pp) In millions of US dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage January—June Second Quarter January—June Second Quarter January—June Second Quarter variation Volume 13% 6% 3% 2% 1% 4% Price (USD) (0%) 3% 8% 6% 5% 2% Price (local currency) 3% 6% 5% 7% 3% 3% Our domestic gray cement volumes in the Asia, Middle East and Africa region during the second quarter and first six months of the year increased by 6% and 13%, respectively, on a year-over-year basis. In the Philippines, our domestic gray cement volumes during the second quarter and first six months of 2018 increased by 8% and 12%, respectively, versus the comparable periods in the previous year. The increase in volumes during the quarter reflects higher public infrastructure activity and sustained growth from the residential sector. In Egypt, our domestic gray cement volumes increased by 7% and 18% during the second quarter of 2018 and the first six months of the year, respectively, versus the comparable periods in the previous year. Volume improvement reflects higher cement dispatches to Lower Egypt partly related to the temporary stoppage of two cement plants in the Sinai region. In Israel, our ready-mix and aggregates volumes during the quarter increased by 8% and 10%, respectively. For the first six months of the year, ready-mix and aggregates volumes both increased by 5%, on a year-over-year basis. 2018 Second Quarter Results Page 5

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 840 826 2% 504 479 5% + Depreciation and operating amortization 412 424 210 218 Operating EBITDA 1,252 1,249 0% 714 696 2%—Net financial expense 332 438 160 213 —Maintenance capital expenditures 174 156 96 99 —Change in working capital 417 298 64 (90) —Taxes paid 148 162 97 115 —Other cash items (net) 64 21 38 9 —Free cash flow discontinued operations (1) (8) (0) (4) Free cash flow after maintenance capital expenditures 117 183 (36%) 260 353 (26%)—Strategic capital expenditures 39 57 30 29 Free cash flow 78 126 (38%) 231 324 (29%) In millions of US dollars, except percentages. During the quarter, free cash flow was mainly used for debt repayment. Our total debt plus perpetual notes during the quarter reflects a favorable foreign exchange conversion effect of US$184 million. Information on debt and perpetual notes First Second Quarter Quarter Second Quarter 2018 2017 % var 2018 2018 2017 Total debt (1) 10,444 11,483 (9%) 10,902 Currency denomination Short-term 5% 5% 4% US dollar 66% 75% Long-term 95% 95% 96% Euro 26% 21% Perpetual notes 446 444 0% 450 Mexican peso 0% 1% Total debt plus perpetual notes 10,890 11,927 (9%) 11,352 Other 7% 3% Cash and cash equivalents 308 418 (26%) 311 Net debt plus perpetual notes 10,582 11,509 (8%) 11,041 Interest rate Fixed 61% 72% Consolidated funded debt (CFD) (2) 10,219 10,827 10,802 Variable 39% 28% CFD (2) / EBITDA (3) 3.96 4.04 4.22 (3) (4) Interest coverage 4.13 3.39 3.85 In millions of US dollars, except percentages and ratios. (1) Includes convertible notes and capital leases, in accordance with International Financial Reporting Standards (IFRS). (2) Consolidated funded debt, in accordance with our contractual obligations under the Credit Agreement. (3) EBITDA calculated in accordance with IFRS. (4) Interest expense calculated in accordance with our contractual obligations under the Credit Agreement. 2018 Second Quarter Results Page 6

Equity-related and derivative instruments information Equity-related information One CEMEX ADS represents ten CEMEX CPOs. The following amounts are expressed in CPO terms Beginning-of-quarter CPO-equivalent units outstanding 15,086,694,589 Stock-based compensation 17,963,767 End-of-quarter CPO-equivalent units outstanding 15,104,658,356 Outstanding CEMEX also has units outstanding equal total mandatorily CEMEX CPO-equivalent convertible securities units less which, CPOs held upon in conversion, subsidiaries, will which increase as of the June number 30, 2018 of were CPOs 20,541,277. outstanding by approximately 236 million, subject to antidilution adjustments. Employee long-term compensation plans As of June 30, 2018, our executives held 31,141,305 restricted CPOs, representing 0.2% of our total CPOs outstanding as of such date. Derivative instruments The following table shows the notional amount for each type of derivative instrument and the aggregate fair market value for all of CEMEX‘s derivative instruments as of the last day of each quarter presented. Second Quarter First Quarter 2018 2017 2018 In millions of US dollars. Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value Exchange rate derivatives (1) 1,247 42 888 (41) 1,216 (55) Equity related derivatives (2) (5) 168 31 289 24 168 1 Interest rate swaps (3) 1,132 6 142 21 137 15 Fuel derivatives (4) 54 20 91—67 14 2,601 99 1,410 4 1,588 (25) (1) Exchange rate derivatives are used to manage currency exposures that arise from the regular operations and from forecasted transactions. (2) Until June 30, 2017 equity derivatives were related with options on the Parent Company own shares and as of June 30, 2018 to forwards, net of cash collateral, over the shares of Grupo Cementos Chihuahua, S.A.B. de C.V. (3) As of June 30,2017, includes Interest-rate swap derivatives related to our long-term energy contracts. In addition, it includes interest-rate swap instruments related to bank loans with a nominal amount of US$1,000 million that were signed in the three-month period ended in June 30, 2018. (4) Forward contracts negotiated to hedge the price of the fuel consumed in certain operations. (5) As required by IFRS, the equity related derivatives fair market value as of June 30, 2018 and 2017 includes a liability of US$8 million and of US$44 million, respectively, relating to an embedded derivative in CEMEX‘s mandatorily convertible securities. Under IFRS, companies are required to recognize all derivative financial instruments on the balance sheet as assets or liabilities, at their estimated fair market value, with changes in such fair market values recorded in the income statement, except when transactions are entered into for cash-flow-hedging purposes, in which case changes in the fair market value of the related derivative instruments are recognized temporarily in equity and then reclassified into earnings as the inverse effects of the underlying hedged items flow through the income statement, and/or transactions related to net investment hedges, in which case changes in fair value are recorded directly in equity as part of the currency translation effect, and are reclassified to the income statement only upon disposal of the net investment. As of June 30, 2018, in connection with the fair market value recognition of its derivatives portfolio, CEMEX recognized increases in its assets and liabilities resulting in a net asset of US$99 million, including a liability of US$8 million corresponding to an embedded derivative related to our mandatorily convertible securities, which according to our debt agreements, is presented net of the assets associated with the derivative instruments. 2018 Second Quarter Results Page 7

Operating results Consolidated Income Statement &amp; Balance Sheet CEMEX, S.A.B. de C.V. and Subsidiaries (Thousands of U.S. Dollars, except per ADS amounts) January—June Second Quarter like-to-like like-to-like INCOME STATEMENT 2018 2017 % var % var 2018 2017 % var % var Net sales 7,184,872 6,687,280 7% 5% 3,804,821 3,567,785 7% 7% Cost of sales (4,775,790) (4,439,772) (8%) (2,474,241) (2,323,696) (6%) Gross profit 2,409,083 2,247,508 7% 5% 1,330,580 1,244,089 7% 8% Operating expenses (1,569,157) (1,421,957) (10%) (826,628) (765,170) (8%) Operating earnings before other expenses, net 839,925 825,551 2% 3% 503,952 478,919 5% 8% Other expenses, net (34,759) 135,468 N/A (35,683) (9,533) (274%) Operating earnings 805,166 961,018 (16%) 468,269 469,385 (0%) Financial expense (344,653) (541,094) 36% (159,241) (272,659) 42% Other financial income (expense), net 67,092 3,296 1936% 119,537 (22,317) N/A Financial income 9,421 9,020 4% 4,701 4,282 10% Results from financial instruments, net 58,845 108,676 (46%) 25,277 7,712 228% Foreign exchange results 24,410 (88,023) N/A 102,087 (20,676) N/A Effects of net present value on assets and liabilities and others, net (25,584) (26,378) 3% (12,527) (13,635) 8% Equity in gain (loss) of associates 11,763 9,576 23% 9,888 7,912 25% Income (loss) before income tax 539,369 432,796 25% 438,453 182,321 140% Income tax (102,005) 42,201 N/A (49,283) 92,336 N/A Profit (loss) of continuing operations 437,364 474,997 (8%) 389,170 274,656 42% Discontinued operations 56 183,595 (100%) 16 27,040 (100%) Consolidated net income (loss) 437,420 658,592 (34%) 389,186 301,696 29% Non-controlling interest net income (loss) 21,240 32,570 (35%) 7,541 13,259 (43%) Controlling interest net income (loss) 416,180 626,022 (34%) 381,645 288,438 32% Operating EBITDA 1,252,335 1,249,462 0% 0% 713,656 696,460 2% 4% Earnings (loss) of continued operations per ADS 0.27 0.30 (9%) 0.25 0.18 41% Earnings (loss) of discontinued operations per ADS 0.00 0.12 (100%) 0.00 0.02 (100%) As of June 30 BALANCE SHEET 2018 2017 % var Total assets 28,590,428 29,390,662 (3%) Cash and cash equivalents 308,261 417,706 (26%) Trade receivables less allowance for doubtful accounts 1,809,637 1,751,959 3% Other accounts receivable 286,737 293,376 (2%) Inventories, net 1,020,267 1,009,237 1% Assets held for sale 95,771 247,142 (61%) Other current assets 167,897 183,428 (8%) Current assets 3,688,570 3,902,847 (5%) Property, machinery and equipment, net 11,487,588 11,812,024 (3%) Other assets 13,414,270 13,675,791 (2%) Total liabilities 17,526,239 18,613,490 (6%) Liabilities held for sale 2,550 384 563% Other current liabilities 4,844,944 4,597,669 5% Current liabilities 4,847,494 4,598,054 5% Long-term liabilities 9,347,161 10,306,408 (9%) Other liabilities 3,331,584 3,709,028 (10%) Total stockholder’s equity 11,064,190 10,777,172 3% Non-controlling interest and perpetual instruments 1,546,811 1,467,831 5% Total controlling interest 9,517,379 9,309,341 2% 2018 Second Quarter Results Page 8

Operating results Consolidated Income Statement &amp; Balance Sheet CEMEX, S.A.B. de C.V. and Subsidiaries (Thousands of Mexican Pesos in nominal terms, except per ADS amounts) January—June Second Quarter INCOME STATEMENT 2018 2017 % var 2018 2017 % var Net sales 136,871,815 128,462,652 7% 74,232,066 66,111,060 12% Cost of sales (90,978,791) (85,288,018) (7%) (48,272,442) (43,058,091) (12%) Gross profit 45,893,024 43,174,634 6% 25,959,623 23,052,968 13% Operating expenses (29,892,450) (27,315,802) (9%) (16,127,516) (14,178,603) (14%) Operating earnings before other expenses, net 16,000,574 15,858,832 1% 9,832,108 8,874,366 11% Other expenses, net (662,157) 2,602,331 N/A (696,181) (176,653) (294%) Operating earnings 15,338,417 18,461,163 (17%) 9,135,927 8,697,713 5% Financial expense (6,565,649) (10,394,421) 37% (3,106,795) (5,052,379) 39% Other financial income (expense), net 1,278,111 63,312 1919% 2,332,173 (413,533) N/A Financial income 179,469 173,282 4% 91,711 79,343 16% Results from financial instruments, net 1,121,005 2,087,672 (46%) 493,146 142,908 245% Foreign exchange results 465,010 (1,690,919) N/A 1,991,710 (383,134) N/A Effects of net present value on assets and liabilities and others, net (487,374) (506,723) 4% (244,394) (252,650) 3% Equity in gain (loss) of associates 224,094 183,960 22% 192,921 146,602 32% Income (loss) before income tax 10,274,973 8,314,014 24% 8,554,225 3,378,403 153% Income tax (1,943,192) 810,686 N/A (961,520) 1,710,978 N/A Profit (loss) of continuing operations 8,331,781 9,124,700 (9%) 7,592,705 5,089,381 49% Discontinued operations 1,070 3,526,859 (100%) 304 501,047 (100%) Consolidated net income (loss) 8,332,851 12,651,558 (34%) 7,593,009 5,590,428 36% Non-controlling interest net income (loss) 404,616 625,676 (35%) 147,115 245,680 (40%) Controlling interest net income (loss) 7,928,235 12,025,883 (34%) 7,445,894 5,344,748 39% Operating EBITDA 23,856,983 24,002,168 (1%) 13,923,425 12,905,401 8% Earnings (loss) of continued operations per ADS 5.17 5.72 (10%) 4.84 3.25 49% Earnings (loss) of discontinued operations per ADS 0.00 2.36 (100%) 0.00 0.33 (100%) As of June 30 2018 2017 % var BALANCE SHEET Total assets 569,521,333 533,146,600 7% Cash and cash equivalents 6,140,555 7,577,192 (19%) Trade receivables less allowance for doubtful accounts 36,047,972 31,780,528 13% Other accounts receivable 5,711,804 5,321,832 7% Inventories, net 20,323,727 18,307,560 11% Assets held for sale 1,907,760 4,483,150 (57%) Other current assets 3,344,504 3,327,376 1% Current assets 73,476,322 70,797,639 4% Property, machinery and equipment, net 228,832,743 214,270,116 7% Other assets 267,212,267 248,078,845 8% Total liabilities 349,122,672 337,648,708 3% Liabilities held for sale 50,794 6,974 628% Other current liabilities 96,511,282 83,401,719 16% Current liabilities 96,562,075 83,408,693 16% Long-term liabilities 186,195,443 186,958,247 (0%) Other liabilities 66,365,153 67,281,768 (1%) Total stockholders’ equity 220,398,661 195,497,892 13% Non-controlling interest and perpetual instruments 30,812,468 26,626,449 16% Total controlling interest 189,586,193 168,871,443 12% 2018 Second Quarter Results Page 9

Operating results Operating Summary per Country In thousands of U.S. dollars January—June Second Quarter like-to-like like-to-like 2018 2017 % var % var 2018 2017 % var % var NET SALES Mexico 1,668,561 1,532,538 9% 8% 867,320 810,175 7% 13% U.S.A. 1,844,376 1,730,738 7% 8% 988,855 916,160 8% 9% South, Central America and the Caribbean 916,207 941,942 (3%) (3%) 461,485 469,792 (2%) 0% Europe 1,851,035 1,665,602 11% 1% 1,040,384 933,926 11% 6% Asia, Middle East and Africa 727,936 652,887 11% 12% 353,123 326,576 8% 10% Others and intercompany eliminations 176,758 163,574 8% 11% 93,653 111,156 (16%) (24%) TOTAL 7,184,872 6,687,280 7% 5% 3,804,821 3,567,785 7% 7% GROSS PROFIT Mexico 905,883 818,080 11% 10% 468,599 443,721 6% 11% U.S.A. 502,656 447,012 12% 13% 296,706 252,450 18% 18% South, Central America and the Caribbean 332,569 365,361 (9%) (9%) 167,480 177,874 (6%) (5%) Europe 446,907 406,089 10% 0% 288,996 259,833 11% 6% Asia, Middle East and Africa 207,119 199,521 4% 5% 102,429 94,373 9% 11% Others and intercompany eliminations 13,947 11,445 22% 22% 6,370 15,839 (60%) (60%) TOTAL 2,409,083 2,247,508 7% 5% 1,330,580 1,244,089 7% 8% OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Mexico 553,409 509,072 9% 8% 282,977 272,166 4% 9% U.S.A. 145,736 111,994 30% 34% 110,999 82,191 35% 36% South, Central America and the Caribbean 169,959 209,146 (19%) (20%) 87,168 97,201 (10%) (10%) Europe 37,877 45,288 (16%) (24%) 69,865 59,579 17% 10% Asia, Middle East and Africa 82,521 82,170 0% 1% 35,967 33,558 7% 9% Others and intercompany eliminations (149,577) (132,120) (13%) (1%) (83,024) (65,776) (26%) (28%) TOTAL 839,925 825,551 2% 3% 503,952 478,919 5% 8% 2018 Second Quarter Results Page 10

Operating results Operating Summary per Country EBITDA in thousands of U.S. dollars. EBITDA margin as a percentage of net sales. January—June Second Quarter like-to-like like-to-like OPERATING EBITDA 2018 2017 % var % var 2018 2017 % var % var Mexico 609,713 567,468 7% 7% 310,794 301,965 3% 8% U.S.A. 298,040 287,039 4% 5% 188,609 170,134 11% 11% South, Central America and the Caribbean 213,996 254,149 (16%) (17%) 109,514 120,453 (9%) (9%) Europe 139,668 139,256 0% (9%) 121,362 108,862 11% 5% Asia, Middle East and Africa 114,112 112,977 1% 1% 52,113 49,071 6% 8% Others and intercompany eliminations (123,195) (111,426) (11%) 4% (68,737) (54,024) (27%) (30%) TOTAL 1,252,335 1,249,462 0% 0% 713,656 696,460 2% 4% OPERATING EBITDA MARGIN Mexico 36.5% 37.0% 35.8% 37.3% U.S.A. 16.2% 16.6% 19.1% 18.6% South, Central America and the Caribbean 23.4% 27.0% 23.7% 25.6% Europe 7.5% 8.4% 11.7% 11.7% Asia, Middle East and Africa 15.7% 17.3% 14.8% 15.0% TOTAL 17.4% 18.7% 18.8% 19.5% 2018 Second Quarter Results Page 11

Operating results Volume Summary Consolidated volume summary Cement and aggregates: Thousands of metric tons. Ready-mix: Thousands of cubic meters. January —June Second Quarter 2018 2017 % var 2018 2017 % var Consolidated cement volume (1) 34,704 33,709 3% 18,629 17,838 4% Consolidated ready-mix volume 26,148 25,436 3% 13,923 13,207 5% Consolidated aggregates volume 72,934 72,764 0% 39,532 38,854 2% Per-country volume summary January—June Second Quarter Second Quarter 2018 vs. DOMESTIC GRAY CEMENT VOLUME 2018 vs. 2017 2018 vs. 2017 First Quarter 2018 Mexico (0%) 3% 11% U.S.A. 7% 9% 17% South, Central America and the Caribbean (2%) (2%) 4% Europe 2% 5% 48% Asia, Middle East and Africa 13% 6% (1%) READY-MIX VOLUME Mexico 10% 15% 11% U.S.A. 8% 8% 12% South, Central America and the Caribbean (13%) (14%) (6%) Europe (3%) 4% 38% Asia, Middle East and Africa 3% 2% (10%) AGGREGATES VOLUME Mexico 11% 14% 11% U.S.A. 2% (1%) 10% South, Central America and the Caribbean (9%) (12%) (5%) Europe (4%) 1% 39% Asia, Middle East and Africa 1% 4% (2%) (1) Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. 2018 Second Quarter Results Page 12

Operating results Price Summary Variation in U.S. Dollars January—June Second Quarter Second Quarter 2018 vs. DOMESTIC GRAY CEMENT PRICE 2018 vs. 2017 2018 vs. 2017 First Quarter 2018 Mexico 4% (2%) (4%) U.S.A. 3% 3% 3% South, Central America and the Caribbean (*) 2% 3% (1%) Europe (*) 10% 7% (6%) Asia, Middle East and Africa (*) (0%) 3% 1% READY-MIX PRICE Mexico 10% 3% (4%) U.S.A. 2% 3% (0%) South, Central America and the Caribbean (*) (1%) (2%) (3%) Europe (*) 13% 8% (7%) Asia, Middle East and Africa (*) 8% 6% (2%) AGGREGATES PRICE Mexico 7% 3% (3%) U.S.A. 5% 6% 0% South, Central America and the Caribbean (*) (3%) (0%) (0%) Europe (*) 12% 9% (7%) Asia, Middle East and Africa (*) 5% 2% (4%) Variation in Local Currency January—June Second Quarter Second Quarter 2018 vs. DOMESTIC GRAY CEMENT PRICE 2018 vs. 2017 2018 vs. 2017 First Quarter 2018 Mexico 4% 3% 1% U.S.A. 3% 3% 3% South, Central America and the Caribbean (*) 2% 3% 0% Europe (*) 1% 2% (1%) Asia, Middle East and Africa (*) 3% 6% 2% READY-MIX PRICE Mexico 9% 9% 1% U.S.A. 2% 3% (0%) South, Central America and the Caribbean (*) (2%) (3%) (2%) Europe (*) 3% 2% (3%) Asia, Middle East and Africa (*) 5% 7% 1% AGGREGATES PRICE Mexico 7% 8% 2% U.S.A. 5% 6% 0% South, Central America and the Caribbean (*) (4%) (2%) 1% Europe (*) 3% 4% (3%) Asia, Middle East and Africa (*) 3% 3% (0%) (*) Volume weighted-average price. 2018 Second Quarter Results Page 13

Other information Newly issued IFRS effective in 2018 IFRS 9‘) 9, Financial Instruments: classification and measurement (‘IFRS IFRS measurement 9 sets forth of financial the guidance assets and relating liabilities, to the the classification accounting and for credits, expected as credit well losses as the of requirements financial assets for and hedge commitments accounting; to and extend will (‘IAS replace 39‘) IAS . IFRS 39, 9 Financial was adopted instruments: beginning recognition January 1, 2018 and on measurement prospective categories basis. Among for financial other aspects, assets of: IFRS 1) amortized 9 implemented cost, that the will classification significantly 2) comprise fair value IAS39 through held other to maturity comprehensive and loans income, and receivables similar to categories; IAS 39 held to with maturity the same category; IAS 39 and definition. 3) fair value The adoption through the of income such classification statement categories results and did financial not have situation. any significant effect on CEMEX‘s operating In losses, addition, impairment under the losses new impairment for the entire model lifetime based of on financial expected assets, credit recognition, including trade and at accounts each subsequent receivable, reporting are recognized period, even on in initial the absence considering of for a credit their measurement event or if the past loss events has not and yet current been conditions, incurred, In as well this as regard, reasonable CEMEX and implemented supportable forecasts an expected affecting credit collectability. loss model performance, applicable to its as trade well as accounts the credit receivable risk and that expected considers developments the historical for each 1, 2018 group related of customers. to the new The expected effects credit for adoption loss model of IFRS represented 9 on January an increase approximately in the $ allowance 520 millions for of doubtful pesos recognized accounts as against of January equity. 1, 2018 of In accounting connection categories with hedge of cash accounting, flow hedge, IFRS fair 9 maintains value hedge the same and hedge hedging of a recognizing net investment the ineffective established portion in IAS of 39, a cash as well flow as hedge the requirement immediately of in hedging the income transaction statement. are more Nonetheless, flexible. The the adoption requirements of the new to qualify hedging a accounting operating results requirements and financial did not situation. have any significant effect on CEMEX‘s IFRS 15, Revenues from contracts with customers (‘IFRS 15‘) Under promised IFRS goods 15, an or services entity recognizes to customers revenue in an to amount depict that the reflects transfer the of those consideration goods or to services, which the identifying: entity expects a) the to contract(s) be entitled with in exchange a customer for (agreement different performance that creates obligations enforceable (promises) rights and in obligations); the contract b) and the account consideration for those an entity separately; expects c) the to be transaction entitled price in exchange (amount for of transferring transaction price promised to each goods performance or services); obligation d) the based distribution on the relative of the stand-alone recognizing revenue selling prices when of (or each as) the distinct entity good satisfies or service; a performance and e) obligation customer. A by performance transferring control obligation of a may promised be satisfied good at or a service point in to time the (typically services and for construction the sale of goods) contracts) or .over CEMEX time adopted (typically IFRS for 15 the on January sale of on 1, 2018, its operating using the results retrospective and financial approach, situation. without any significant effects Among apply to other CEMEX minor refer effects, to: a) several the main reclassifications changes under that IFRS are required 15 as they to comply b) rebates with and/or IFRS 15 discounts new accounts offered in the to customers statement in of a financial sale transaction position; that transaction are redeemable are considered by the separate customer performance in a subsequent obligations, purchase rather than allocated future to these costs, promises and a portion should of be the deferred sale price to revenue of such transaction to until customers the promise through is redeemed their purchases or expires; under and loyalty c) awards programs (points) that offered are performance later redeemable obligations, for goods rather or than services, future costs, also and represent a portion separate of the sale deferred price to of revenue such transactions until the points allocated are redeemed to these points or expire should . These be reclassifications and adjustments were not material. Considering modified certain the amounts retrospective of the approach, comparative the financial adoption statements of IFRS for 15 the six-month period ended June 30, 2017, as follows: SELECTED INFORMATION INCOME STATEMENT (Millions of pesos) Jan-Jun Second Quarter Revenues, original 128,782.1 66,275.7 IFRS 15 adoption (7.1) 1.1 Discontinued operations (312.3) (165.7) Revenues, as reported 128,462.7 66,111.1 SELECTED INFORMATION BALANCE SHEET As of June 30, Other 2017 Customers, current Other current non- stockholders‘ Total (Millions of pesos) net liabilities liabilities equity Balance, original 31,636.7 83,257.2 67,278.5 195,501.9 IFRS 15 adoption 143.8 144.5 3.3 (3.9) reported Balance, as 31,780.5 83,401.7 67,281.8 195,498.0 Newly issued IFRS effective in 2019 IFRS 16, Revenues from contracts with customers (‘IFRS 15‘) to IFRS the 16 lessee defines the leases right as to any use contract an asset or for part a period of a contract of time that in exchange conveys for throughout consideration that period and the . In lessee summary, directs IFRS the 16 use introduces of the identified a single lessee asset a accounting term of more model, than and 12 requires months, a lessee unless to the recognize, underlying for asset all leases is of with low value, corresponding assets for financial the right liability, -of-use representing the underlying the NPV asset of estimated against a model lease payments in which a under lessee recognizes the contract, amortization with a single of the income right-of statement -use asset and statement interest of on financial the lease position, liability or . A disclose lessee shall in the present notes, either right- of in- use the from assets other separately liabilities from . IFRS other 16 assets, is effective as well beginning as, lease January liabilities 1, separately 2019 and accounting will supersede . all current standards and interpretations related to lease As outstanding of June 30, lease 2018, contracts CEMEX has and concluded other contracts the inventory that of may its main have embedded relevant characteristics the use of an of asset, such contracts including (types an assessment of assets, of committed the most payments, quantification maturity of the dates, required renewal adjustments clauses, for etc the .), proper and is recognition finalizing the of the liabilities, assets considering for the “right the exemptions -of-use” and provided the corresponding by the standard, financial aiming 2018 Second Quarter Results Page 14

Other information adoption to adopt IFRS is practicable. 16 on January Based 1, on 2019 its retrospectively preliminary assessment to the extent as of such the reporting its outstanding date, CEMEX operating considers leases would that upon be recognized adoption of in IFRS the 16, statement most of amortization of financial position, and interest. increasing CEMEX assets does not and expect liabilities, any breach as well of its as contractual effects obligations (financial restrictions) due to the adoption US Interest Rate Swap During swaps to June hedge 2018, interest CEMEX payments entered of into existing US$ 1 bank billion loans of referenced interest rate to based US floating on a 3.05% rates. fixed With rate these and instruments, will receive amounts CEMEX will based pay on amounts 3M US Libor. and will These reach interest its maturity rate swaps on June will 2023. start These to be effective interest rate on June swaps 2019 do not September involve 2019. cash settlements until the first effective interest payment on Discontinued Operations and Other Disposal Groups Discontinued Operations On into May binding 24, 2018, agreements by means with of one Votorantim of its subsidiaries, Cimentos CEMEX N/NE entered S.A. comprise (‘Votorantim‘) of a water for the cement sale of the distribution Company‘s terminal operations located in Brazil, in Manaus, which subject Amazonas to authorization state and its by operating the authorities, license. is The expected transaction, to be completed which is US$ during 30 the million fourth subject quarter to of working 2018. The capital selling adjustments. price is approximately CEMEX‘s ended operations June for 30, its 2018 operating and 2017 segment are reported in Brazil net for of the tax six-month in the single periods line to item CEMEX‘s ‘Discontinued Brazilian Operations. operations ‘ Moreover, are reported assets as ‘Assets and liabilities and liabilities related held for Sale,‘ within current assets and current liabilities, respectively. On regulators, June 30, one 2017, of its subsidiaries CEMEX announced in the U.S. closed that after the divestment approval of from its and Pacific ready Northwest mix concrete Materials operations Business consisting in Oregon of and aggregate, Washington asphalt to Cadman subsidiary Materials, of HeidelbergCement Inc., part of Group, Lehigh Hanson, for approximately Inc. and the US$ U. 150 S. million. Materials Considering Business, their the operations disposal of for the the entire six-month Pacific period Northwest ended were June 30, reclassified 2017, included net of in tax CEMEX‘s to the comparative single line item income ‘Discontinued statements Operations.‘ in On the November United States 28, 2016, signed CEMEX a definitive announced agreement that one to divest of its its subsidiaries Concrete the Reinforced United Pipe States Manufacturing to Quikrete Business Holdings, (‘Concrete Inc. Pipe (‘Quikrete‘) Business‘) for in approximately contingent consideration US$500 based million on plus future an performance. additional US$ On January 40 million 31, approval 2017, after from the regulators, satisfaction CEMEX of certain announced conditions the closing precedent of the including sale to disposal Quikrete of according the entire to the Concrete agreed Pipe upon Business, price conditions. their operations Considering for the the comparative one-month period income ended statements January were 31, reclassified 2017, included net of tax to in the CEMEX‘s single disposal line item of ‘Discontinued these assets Operations. for approximately ‘ CEMEX US$ determined 148 million a net recognized gain on a during proportional January allocation 2017 as part of goodwill of discontinued for approximately operations, US$ which 260 included million. The income following statements table of presents CEMEX condensed discontinued combined operations information mainly: of a) the the 2018 operating and 2017; segment b) the in Concrete Brazil for Pipe the six-month Business for periods the one-month ended June period 30, for ended the January six-month 31, period 2017; and ended c) the June Pacific 30, 2017: Northwest Materials Business INCOME STATEMENT Jan-Jun Second Quarter (Millions of Mexican pesos) 2018 2017 2018 2017 Sales 337 1,869 167 757 Cost of sales and operating (329) (1,870) (161) (723) Other expenses, net (1) 14 (0) 17 Interest expense, net and others (2) 3 (3) 4 Income (loss) before income tax 5 16 2 55 Income tax (4) (1) (2) (1) Net income (loss) 1 15 1 55 Non controlling interest net income — — Controlling interest net income 1 1 1 55 Net gain on sale—3,526—446 Discontinued operations 1 3,527 1 501 Other disposal groups or Other line disposal of business groups and, do due not to represent the remaining the disposal ongoing of activities an entire and sector the consolidated relative size, by are CEMEX not considered line-by-line discontinued in the income operations statement and until were the disposal date. The main disposal groups are as follows: in On the September United States 12, 2016, signed CEMEX a definitive announced agreement that one for of its the subsidiaries sale of its Fairborn, Eagle Materials Ohio cement Inc. (‘Eagle plant and Materials‘) cement terminal for approximately in Columbus, US$ Ohio 400 to million. approximately Fairborn 730 plant thousand has tons. an annual On February production 10, 2017, capacity CEMEX of announced divestment of that these such assets. subsidiary CEMEX‘s in comparative the United income States statement closed the for the Fairborn six-month cement period plant ended and the June Columbus 30, 2017, cement include terminal the operations consolidated of the 10, line-by-line 2017. CEMEX for the determined period from a January net gain 1 on until disposal their disposal of these in assets February for approximately of Other expenses, US$188 net, million which recognized included during a proportional February allocation 2017 as part of goodwill for approximately US$211 million. The information following of table the net presents assets sold selected to Eagle combined Materials income for the statements period in 2017 until their disposal in February 10: SELECTED INFORMATION Jan-Jun Second Quarter (Millions of Mexican pesos) 2018 2017 2018 2017 Sales— 86 — Cost of sales and operating Expenses—(71) — Operating earnings before other expenses, net—15 — 2018 Second Quarter Results Page 15

Definitions of terms and disclosures Methodology for translation, consolidation, and presentation of results Under IFRS, beginning January 1, 2008, CEMEX translates the financial statements of foreign subsidiaries using exchange rates at the reporting date for the balance sheet and the exchange rates at the end of each month for the income statement. CEMEX reports its consolidated results in Mexican pesos. For the reader‘s convenience, beginning June 30, 2008, US dollar amounts for the consolidated entity are calculated by converting the nominal Mexican peso amounts at the end of each quarter using the average MXN/US$ exchange rate for each quarter, provided below. Breakdown of regions The South, Central America and the Caribbean region includes CEMEX‘s operations in Argentina, Bahamas, Brazil, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica, Trinidad &amp; Tobago, Barbados, Nicaragua, Panama, Peru, and Puerto Rico, as well as trading operations in the Caribbean region. Europe includes operations in Spain, Croatia, the Czech Republic, France, Germany, Latvia, Poland, and the United Kingdom, as well as trading operations in several Nordic countries. The Asia, Middle East and Africa region includes operations in the United Arab Emirates, Egypt, Israel and the Philippines. Definition of terms Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation and coupon payments on our perpetual notes). l-t-l % var percentage variations adjusted for investments/divestments and currency fluctuations. Maintenance capital expenditures investments incurred for the purpose of ensuring the company‘s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or company policies. Net debt equals total debt (debt plus convertible bonds and financial leases) minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points Prices all references to pricing initiatives, price increases or decreases, refer to our prices for our products Strategic capital expenditures investments incurred with the purpose of increasing the company‘s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which 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. % var percentage variation Earnings per ADS Please refer to page 2 for the number of average ADSs outstanding used for the calculation of earnings per ADS. According to the IAS 33 Earnings per share, the weighted-average number of common shares outstanding is determined considering the number of days during the accounting period in which the shares have been outstanding, including shares derived from corporate events that have modified the stockholder’s equity structure during the period, such as increases in the number of shares by a public offering and the distribution of shares from stock dividends or recapitalizations of retained earnings and the potential diluted shares (Stock options, Restricted Stock Options and Mandatory Convertible Shares). The shares issued because of share dividends, recapitalizations and potential diluted shares are considered as issued at the beginning of the period. Exchange rates January—June Second Quarter Second Quarter 2018 2017 2018 2017 2018 2017 Average Average Average Average End of period End of period Mexican peso 19.05 19.21 19.51 18.53 19.92 18.14 Euro 0.8291 0.9177 0.8459 0.8964 0.8561 0.8755 British pound 0.7292 0.7872 0.7452 0.7734 0.7573 0.7676 Amounts provided in units of local currency per US dollar. 2018 Second Quarter Results Page 16