EX-99.2 3 d736801dex992.htm FIRST QUARTER 2019 RESULTS FOR CEMEX LATAM HOLDINGS, S..A.

First quarter 2019 results for CEMEX Latam Holdings, S..A.

Exhibit 2

Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutiérrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com 2019 FIRST QUARTER RESULTS

OPERATING AND FINANCIAL HIGHLIGHTS January - March First Quarter 2019 2018 % var 2019 2018 % var Consolidated cement volume 1,626 1,694 (4%) 1,626 1,694 (4%) Consolidated domestic gray cement volume 1,453 1,462 (1%) 1,453 1,462 (1%) Consolidated ready-mix volume 642 670 (4%) 642 670 (4%) Consolidated aggregates volume 1,489 1,677 (11%) 1,489 1,677 (11%) Net sales 258 292 (12%) 258 292 (12%) Gross profit 104 125 (17%) 104 125 (17%) as % of net sales 40.1% 42.7% (2.6pp) 40.1% 42.7% (2.6pp) Operating earnings before other expenses, net 34 47 (28%) 34 47 (28%) as % of net sales 13.2% 16.1% (2.9pp) 13.2% 16.1% (2.9pp) Controlling interest net income (loss) 16 30 (48%) 16 30 (48%) Operating EBITDA 55 68 (19%) 55 68 (19%) as % of net sales 21.2% 23.2% (2.0pp) 21.2% 23.2% (2.0pp) Free cash flow after maintenance capital 17 -28 N/A 17 -28 N/A expenditures Free cash flow 17 -28 N/A 17 -28 N/A Net debt 797 926 (14%) 797 926 (14%) Total debt 835 958 (13%) 835 958 (13%) Earnings of continuing operations per share 0.03 0.06 (49%) 0.03 0.06 (49%) Shares outstanding at end of period 557 557 0% 557 557 0% Employees 4,167 4,654 (10%) 4,167 4,654 (10%) 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 first quarter of 2019 declined by 12% compared to those of the first quarter of 2018. The decline in net sales was mainly due to lower consolidated volumes and lower consolidated prices, in U.S. dollar terms. Cost of sales as a percentage of net sales during the quarter increased by 2.6pp from 57.3% to 59.9%, on a year-over-year basis. Operating expenses as a percentage of net sales during the first quarter increased by 0.3pp from 26.6% to 27.0%, compared to those of 2018. Operating EBITDA during the first quarter of 2019 declined by 19% compared to that of the first quarter of 2018. This decline is mainly due to lower volumes, increased energy and distribution costs, as well as the U.S. dollar appreciation. Operating EBITDA margin during the first quarter of 2019 declined by 2.0pp, compared to that of the first quarter of 2018. Controlling interest net income during the first quarter of 2019 reached US$16 million, compared to US$30 million during the same period of 2018. Total debt at the end of the quarter declined to US$835 million, 13% lower than that of 2018. 2019 First Quarter Results Page 2

OPERATING RESULTS Colombia January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 128 136 (6%) 128 136 (6%) Operating EBITDA 22 25 (13%) 22 25 (13%) Operating EBITDA margin 17.1% 18.5% (1.4pp) 17.1% 18.5% (1.4pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume 8% 8% 8% 8% (4%) (4%) Price (USD) (8%) (8%) (10%) (10%) (3%) (3%) Price (local currency) 2% 2% (1%) (1%) 8% 8% Year-over-year percentage variation. In Colombia during the first quarter, both our domestic gray cement and ready-mix volumes increased by 8%, while our aggregates volumes declined by 4%, compared to those of the first quarter of 2018. The positive trend in Colombian national cement demand observed since August of last year, continued during the first quarter of 2019. We estimate that national cement demand during the quarter increased by 3%, or by 2% adjusting for an additional working day. We are pleased with our cement volume and price performance during the quarter. Our volumes on a year-over-year basis increased by 8%, or by 7% adjusting for one additional working day, while our cement prices in local-currency terms increased by 2% and 3% on a year-over-year and sequential basis, respectively. Panama January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 50 61 (18%) 50 61 (18%) Operating EBITDA 14 21 (33%) 14 21 (33%) Operating EBITDA margin 27.7% 33.6% (5.9pp) 27.7% 33.6% (5.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume (14%) (14%) (29%) (29%) (31%) (31%) Price (USD) (5%) (5%) (2%) (2%) (4%) (4%) Price (local currency) (5%) (5%) (2%) (2%) (4%) (4%) Year-over-year percentage variation. In Panama, during the first quarter our domestic gray cement, ready-mix and aggregates volumes declined by 14%, 29%, and 31%, respectively, compared to those of the first quarter of 2018. We estimate that industry demand declined by 12%, or by 13% adjusting for one additional working day. Lower cement demand was due to high levels of inventory in apartments and offices, as well as to project delays in the infrastructure sector. We are optimistic in the infrastructure sector going forward, as relevant projects should begin soon. Our cement volumes during the first quarter declined by 14%, or by 15% adjusting for one additional working day, compared with those of the same period of 2018. 2019 First Quarter Results Page 3

OPERATING RESULTS Costa Rica January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 28 36 (22%) 28 36 (22%) Operating EBITDA 10 10 3% 10 10 3% Operating EBITDA margin 35.6% 26.8% 8.8pp 35.6% 26.8% 8.8pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume (20%) (20%) (8%) (8%) 20% 20% Price (USD) (4%) (4%) 2% 2% (9%) (9%) Price (local currency) 2% 2% 9% 9% (3%) (3%) Year-over-year percentage variation. In Costa Rica, during the first quarter our domestic gray cement and ready-mix volumes declined by 20% and 8%, respectively, while our aggregates volumes increased by 20%, compared to those of the first quarter of 2018. We estimate that national cement consumption during the quarter declined by 9%, or by 12% adjusting for two additional working days. Uncertainty around the fiscal reform and increasing government financing needs affected consumer and business confidence, particularly impacting volumes to the industrial-and-commercial and residential sectors. Regarding pricing, our cement and ready-mix prices in local-currency terms improved by 2% and 9%, respectively, on a year-over-year basis. The improvement in ready-mix prices reflects a favorable project-mix, as well as the positive impact of incremental services and surcharges. Rest of CLH January - March First Quarter 2019 2018 % var 2019 2018 % var Net sales 57 63 (10%) 57 63 (10%) Operating EBITDA 17 22 (22%) 17 22 (22%) Operating EBITDA margin 30.2% 35.1% (4.9pp) 30.2% 35.1% (4.9pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - March First Quarter January - March First Quarter January - March First Quarter Volume (5%) (5%) (39%) (39%) (62%) (62%) Price (USD) (3%) (3%) (0%) (0%) 0% 0% Price (local currency) 1% 1% 4% 4% 5% 5% Year-over-year percentage variation. In the Rest of CLH, region which includes our operations in Nicaragua, Guatemala and El Salvador, during the first quarter our domestic gray cement, ready-mix and aggregates volumes declined by 5%, 39% and 62%, respectively, compared to those of the first quarter of 2018. In Nicaragua, the socio-political crisis remains unresolved one year after its initiation and continues to take a toll in economic activity and cement demand. Our cement volumes during the quarter declined by 19% year-over-year and by 4% sequentially. With regards to Guatemala, we estimate that national-cement demand increased in the mid- to high- single digits during the quarter, supported by improved construction activity related to the general elections which will take place in June, as well as higher volumes to the residential sector. Our cement volumes during the quarter increased by 4%. 2019 First Quarter Results Page 4

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January - March First Quarter 2019 2018 % var 2019 2018 % var Operating earnings before other expenses, net 34 47 (28%) 34 47 (28%) + Depreciation and operating amortization 21 21 21 21 Operating EBITDA 55 68 (19%) 55 68 (19%) - Net financial expense 14 15 14 15 - Capital expenditures for maintenance 5 7 5 7 - Change in working Capital 6 34 6 34 - Taxes paid 13 12 13 12 - Other cash items (Net) (1) 26 (1) 26 - Free cash flow discontinued operations 0 2 0 2 Free cash flow after maintenance capital exp 17 (28) n/a 17 (28) n/a - Strategic Capital expenditures 0 1 0 1 Free cash flow 17 (28) n/a 17 (28) n/a In millions of US dollars, except percentages. Information on Debt First Quarter Fourth Quarter 2019 2018 % var 2018 Total debt 1, 2 835 958 864 Short term 1% 36% 1% Long term 99% 64% 99% Cash and cash equivalents 38 32 17% 37 Net debt 797 926 (14%) 827 Net debt / EBITDA 3.4x 3.2x 3.3x First Quarter 2019 2018 Currency denomination U.S. dollar 99% 98% Colombian peso 1% 2% Interest rate Fixed 59% 64% Variable 41% 36% In millions of US dollars, except percentages. 1 Includes leases, in accordance with International Financial Reporting Standards (IFRS). 2 Represents the consolidated balances of CLH and subsidiaries. 2019 First 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 - March First Quarter INCOME STATEMENT 2019 2018 % var 2019 2018 % var Net sales 258,224 291,885 (12%) 258,224 291,885 (12%) Cost of sales (154,663) (167,253) 8% (154,663) (167,253) 8% Gross profit 103,561 124,632 (17%) 103,561 124,632 (17%) Operating expenses (69,597) (77,665) 10% (69,597) (77,665) 10% Operating earnings before other expenses, net 33,964 46,967 (28%) 33,964 46,967 (28%) Other expenses, net 63 (1,372) n/a 63 (1,372) n/a Operating earnings 34,027 45,595 (25%) 34,027 45,595 (25%) Financial expenses (13,856) (15,160) 9% (13,856) (15,160) 9% Other income (expenses), net 2,772 18,621 (85%) 2,772 18,621 (85%) Net income before income taxes 22,943 49,056 (53%) 22,943 49,056 (53%) Income tax (7,303) (18,187) 60% (7,303) (18,187) 60% Profit of continuing operations 15,640 30,869 (49%) 15,640 30,869 (49%) Discontinued operations 0 (858) 100% 0 (858) 0% Consolidated net income 15,640 30,011 (48%) 15,640 30,011 (48%) Non-controlling Interest Net Income (39) (68) 43% (39) (68) 43% Controlling Interest Net Income 15,601 29,943 (48%) 15,601 29,943 (48%) Operating EBITDA 54,638 67,671 (19%) 54,638 67,671 (19%) Earnings of continued operations per share 0.03 0.06 (49%) 0.03 0.06 (49%) Earnings of discontinued operations per share 0.00 (0.00) 100% 0.00 (0.00) 100% as of March 31 BALANCE SHEET 2019 2018 % var Total Assets 3,063,137 3,381,196 (9%) Cash and Temporary Investments 38,050 30,571 24% Trade Accounts Receivables 86,219 138,486 (38%) Other Receivables 48,287 59,514 (19%) Inventories 84,361 80,415 5% Assets held for sale 0 66,304 (100%) Other Current Assets 36,048 35,888 0% Current Assets 292,965 411,178 (29%) Fixed Assets 1,183,429 1,301,239 (9%) Other Assets 1,586,743 1,668,779 (5%) Total Liabilities 1,518,648 1,790,549 (15%) Liabilities available for sale 0 24,376 (100%) Other Current Liabilities 286,453 658,849 (57%) Current Liabilities 286,453 683,225 (58%) Long-Term Liabilities 1,214,257 1,092,984 11% Other Liabilities 17,938 14,340 25% Consolidated Stockholders’ Equity 1,544,489 1,590,647 (3%) Non-controlling Interest 5,268 6,439 (18%) Stockholders’ Equity Attributable to Controlling Interest 1,539,221 1,584,208 (3%) 2019 First 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 - March First Quarter INCOME STATEMENT 2019 2018 % var 2019 2018 % var Net sales 809,985 825,116 (2%) 809,985 825,116 (2%) Cost of sales (485,141) (472,801) (3%) (485,141) (472,801) (3%) Gross profit 324,844 352,315 (8%) 324,844 352,315 (8%) Operating expenses (218,308) (219,545) 1% (218,308) (219,545) 1% Operating earnings before other expenses, net 106,536 132,770 (20%) 106,536 132,770 (20%) Other expenses, net 199 (3,880) n/a 199 (3,880) n/a Operating earnings 106,735 128,890 (17%) 106,735 128,890 (17%) Financial expenses (43,467) (42,855) (1%) (43,462) (42,855) (1%) Other income (expenses), net 8,696 52,639 (83%) 8,696 52,639 (83%) Net income before income taxes 71,965 138,674 (48%) 71,965 138,674 (48%) Income tax (22,906) (51,412) 55% (22,906) (51,412) 55% Profit of continuing operations 49,059 87,262 (44%) 49,060 87,262 (44%) Discontinued operations 0 (2,426) 100% 0 (2,426) 100% Consolidated net income 49,059 84,836 (42%) 49,060 84,836 (42%) Non-controlling Interest Net Income (121) (193) 37% (121) (193) 37% Controlling Interest Net Income 48,938 84,643 (42%) 48,936 84,643 (42%) Operating EBITDA 171,387 191,295 (10%) 171,387 191,295 (10%) Earnings of continued operations per share 88 157 (44%) 88 157 (44%) Earnings of discontinued operations per share 0 (4) (100%) 0 (4) 100% as of March 31 BALANCE SHEET 2019 2018 % var Total Assets 9,724,815 9,401,313 3% Cash and Temporary Investments 120,802 85,003 42% Trade Accounts Receivables 273,727 385,055 (29%) Other Receivables 153,301 165,477 (7%) Inventories 267,829 223,591 20% Assets held for sale 0 184,356 (100%) Other Current Assets 114,444 99,787 15% Current Assets 930,103 1,143,269 (19%) Fixed Assets 3,757,138 3,618,055 4% Other Assets 5,037,574 4,639,989 9% Total Liabilities 4,821,386 4,978,568 (3%) Liabilities available for sale 0 67,777 (100%) Other Current Liabilities 909,426 1,831,911 (50%) Current Liabilities 909,426 1,899,688 (52%) Long-Term Liabilities 3,855,012 3,039,008 27% Other Liabilities 56,948 39,872 43% Consolidated Stockholders’ Equity 4,903,429 4,422,745 11% Non-controlling Interest 16,724 17,904 (7%) Stockholders’ Equity Attributable to Controlling Interest 4,886,705 4,404,841 11% 2019 First 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 - March First Quarter 2019 2018 % var 2019 2018 % var NET SALES Colombia 128,066 136,143 (6%) 128,066 136,143 (6%) Panama 50,024 61,296 (18%) 50,024 61,296 (18%) Costa Rica 27,757 35,699 (22%) 27,757 35,699 (22%) Rest of CLH 56,571 62,863 (10%) 56,571 62,863 (10%) Others and intercompany eliminations (4,194) (4,116) (2%) (4,194) (4,116) (2%) TOTAL 258,224 291,885 (12%) 258,224 291,885 (12%) GROSS PROFIT Colombia 48,485 52,184 (7%) 48,485 52,184 (7%) Panama 17,809 25,329 (30%) 17,809 25,329 (30%) Costa Rica 14,171 14,143 0% 14,171 14,143 0% Rest of CLH 22,941 27,825 (18%) 22,941 27,825 (18%) Others and intercompany eliminations 155 5,151 (97%) 155 5,151 (97%) TOTAL 103,561 124,632 (17%) 103,561 124,632 (17%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 14,889 17,991 (17%) 14,889 17,991 (17%) Panama 9,167 16,599 (45%) 9,167 16,599 (45%) Costa Rica 8,666 8,325 4% 8,666 8,325 4% Rest of CLH 15,265 20,042 (24%) 15,265 20,042 (24%) Others and intercompany eliminations (14,023) (15,990) 12% (14,023) (15,990) 12% TOTAL 33,964 46,967 (28%) 33,964 46,967 (28%) OPERATING EBITDA Colombia 21,885 25,244 (13%) 21,885 25,244 (13%) Panama 13,842 20,620 (33%) 13,842 20,620 (33%) Costa Rica 9,880 9,563 3% 9,880 9,563 3% Rest of CLH 17,110 22,060 (22%) 17,110 22,060 (22%) Others and intercompany eliminations (8,079) (9,816) 18% (8,079) (9,816) 18% TOTAL 54,638 67,671 (19%) 54,638 67,671 (19%) OPERATING EBITDA MARGIN Colombia 17.1% 18.5% 17.1% 18.5% Panama 27.7% 33.6% 27.7% 33.6% Costa Rica 35.6% 26.8% 35.6% 26.8% Rest of CLH 30.2% 35.1% 30.2% 35.1% TOTAL 21.2% 23.2% 21.2% 23.2% 2019 First 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 - March First Quarter 2019 2018 % var 2019 2018 % var Total cement volume 1 1,626 1,694 (4%) 1,626 1,694 (4%) Total domestic gray cement volume 1,453 1,462 (1%) 1,453 1,462 (1%) Total ready-mix volume 642 670 (4%) 642 670 (4%) Total aggregates volume 1,489 1,677 (11%) 1,489 1,677 (11%) 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Per-country volume summary January - March First Quarter First Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Fourth Quarter 2018 DOMESTIC GRAY CEMENT Colombia 8% 8% (3%) Panama (14%) (14%) (0%) Costa Rica (20%) (20%) 1% Rest of CLH (5%) (5%) (4%) READY-MIX Colombia 8% 8% 5% Panama (29%) (29%) (11%) Costa Rica (8%) (8%) (12%) Rest of CLH (39%) (39%) (42%) AGGREGATES Colombia (4%) (4%) 3% Panama (31%) (31%) (5%) Costa Rica 20% 20% 3% Rest of CLH (62%) (62%) (1%) 2019 First Quarter Results Page 9

OPERATING RESULTS Price Summary Variation in U.S. dollars January - March First Quarter First Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Fourth Quarter 2018 DOMESTIC GRAY CEMENT Colombia (8%) (8%) 6% Panama (5%) (5%) (3%) Costa Rica (4%) (4%) (0%) Rest of CLH (3%) (3%) 1% READY-MIX Colombia (10%) (10%) 4% Panama (2%) (2%) (2%) Costa Rica 2% 2% (2%) Rest of CLH (0%) (0%) 5% AGGREGATES Colombia (3%) (3%) 4% Panama (4%) (4%) (8%) Costa Rica (9%) (9%) (4%) Rest of CLH 0% 0% 3% For Rest of CLH, volume-weighted average prices. Variation in local currency January - March First Quarter First Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Fourth Quarter 2018 DOMESTIC GRAY CEMENT Colombia 2% 2% 3% Panama (5%) (5%) (3%) Costa Rica 2% 2% (0%) Rest of CLH 1% 1% 1% READY-MIX Colombia (1%) (1%) 1% Panama (2%) (2%) (2%) Costa Rica 9% 9% (2%) Rest of CLH 4% 4% 5% AGGREGATES Colombia 8% 8% 1% Panama (4%) (4%) (8%) Costa Rica (3%) (3%) (3%) Rest of CLH 5% 5% 4% For Rest of CLH, volume-weighted average prices. 2019 First Quarter Results Page 10

DEFINITIONS OF TERMS AND DISCLOSURES IFRS 16, Leases (“IFRS 16”) Beginning January 1, 2019, IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize, for all leases, allowing exemptions in case of leases with a term of less than 12 months or when the underlying asset is of low value, assets for the right-of-use the underlying asset against a corresponding financial liability, representing the net present value of estimated lease payments under 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 liability. After concluding the inventory and measurement of its leases, CEMEX Latam adopted IFRS 16 using the full retrospective approach by means of which it determined an opening cumulative effect in its statement of financial position as of January 1, 2018 as follows: (Millions of dollars) January 1st, 2018 Assets for the Right-of-use $ 15.7 Deferred tax assets $ 2.8 Lease financial liabilities $ (23.0) Deferred tax liabilities $ (0.7) Retained earnings1 $ (5.2) 1 The initial effect in retained earnings refers to a temporary difference between the straight-line amortization expense of the right-of-use asset against the amortization of the financial liability under the effective interest rate method since origination of the contracts. This difference will reverse over the remaining term of the contracts. CEMEX Latam modified the previously reported income statement for the three-month period ended March 31, 2018 to give effect to the retrospective adoption of IFRS 16, as follows: Selected information Original Modified Income Statement Reported (Millions of dollars) Jan-Mar 1Q Jan-Mar 1Q Revenues 291.9 291.9 291.9 291.9 Cost of sales (167.7) (167.7) (167.2) (167.2) Operating expenses (77.8) (77.8) (77.7) (77.7) Other expenses, net (1.4) (1.4) (1.4) (1.4) Financial (expense) income and others 4.0 4.0 3.5 3.5 Earnings before income tax 49.1 49.1 49.1 49.1 Income tax (18.2) (18.2) (18.2) (18.2) Earnings from continuing operations 30.9 30.9 30.9 30.9 As of March 31, 2019, and December 31, 2018, assets for the right-of-use amounted to $17.4 million and $14.9 million, respectively. In addition, financial liabilities related to lease contracts amounted to $24.3 million as of March 31, 2019 and $22.3 million as of December 31, 2018 and were included within “Debt and other financial liabilities”. 2019 First Quarter Results Page 11

DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the reporting date for the balance sheet and the corresponding exchange rates at the end of each month for the income statement. For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts using the closing COP/US$ exchange rate at the reporting date for balance sheet purposes, and the average COP/US$ exchange rate for the corresponding period for income statement purposes. The exchange rates are provided below. Per-country/region selected financial information of the income statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Discontinued operations and assets held for sale On September 27, 2018, after receiving the corresponding authorizations by local authorities, CEMEX Latam concluded the disposal of its construction materials operations in Brazil to Votorantim Cimentos N/NE S.A., comprised of a fluvial cement distribution terminal located in Manaus, Amazonas state and its operating license. The selling price was approximately US$31 million including working capital adjustments. CEMEX Latam’s operations in Brazil for the three-month period ended March 31, 2018 were reclassified and reported net of tax in the single line item “Discontinued Operations”. The following table presents condensed combined information of the income statements of CEMEX Latam discontinued operations in its operating segment in Brazil for the three-month period ended March 31, 2018: INCOME STATEMENT Jan - Mar First Quarter (Millions of dollars) 2019 2018 2019 2018 Sales - 9.2 - 9.2 Cost of sales and operating - (10.2) - (10.2) Other expenses, net - (0.1) - (0.1) Interest expense, net and others - 0.0 - 0.0 Income (loss) before income tax - (1.0) - (1.0) Income tax - 0.1 - 0.1 Loss of discontinued operations - (0.9) - (0.9) Result in sale, withholding and Fx reclassification - - - - Net loss of discontinued operations - (0.9) - (0.9) Consolidated financial information When reference is made to consolidated financial information means the financial information of CLH together with its consolidated subsidiaries. Presentation of financial and operating information Individual information is provided for Colombia, Panama and Costa Rica. Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. Exchange rates January - March January - March First Quarter 2019 EoP 2018 EoP 2019 average 2018 average 2019 average 2018 average Colombian peso 3,174.79 2,780.47 3,136.75 2,826.85 3,136.75 2,826.85 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 602.36 569.31 609.08 571.47 609.08 571.47 Euro 0.8130 1.09 0.81 1.09 0.81 1.09 Amounts provided in units of local currency per US dollar. 2019 First 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 the purpose of ensuring CLH’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or internal policies. Net debt equals total debt minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points. 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. 2019 First Quarter Results Page 13