EX-99.2 3 d628307dex992.htm SECOND QUARTER 2019 RESULTS FOR CEMEX, S.A.B DE C.V.

SECOND QUARTER 2019 RESULTS FOR CEMEX, S.A.B de C.V.

Exhibit 2

2019 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

January - June Second Quarter

l-t-l

2019 2018 % var % var 2019 2018 % var % var

Consolidated cement volume 31,272 34,230 (9%) 16,339 18,329 (11%)

Consolidated ready-mix volume 24,914 25,671 (3%) 13,007 13,640 (5%)

Consolidated aggregates volume 70,140 69,734 1% 36,947 37,483 (1%)

Net sales 6,724 7,006 (4%) (1%) 3,523 3,701 (5%) (3%)

Gross profit 2,166 2,373 (9%) (6%) 1,171 1,307 (10%) (9%)

as % of net sales 32.2% 33.9% (1.7pp) 33.2% 35.3% (2.1pp)

Operating earnings before other expenses, net 673 850 (21%) (19%) 377 504 (25%) (24%)

as % of net sales 10.0% 12.1% (2.1pp) 10.7% 13.6% (2.9pp)

Controlling interest net income (loss) 193 396 (51%) 155 376 (59%)

Operating EBITDA 1,205 1,360 (11%) (10%) 644 762 (15%) (14%)

as % of net sales 17.9% 19.4% (1.5pp) 18.3% 20.6% (2.3pp)

Free cash flow after maintenance capital expenditures (121) 43 N/A 217 241 (10%)

Free cash flow (205) 5 N/A 168 211 (20%)

Total debt plus perpetual notes 11,492 12,063 (5%) 11,492 12,063 (5%)

Earnings (loss) of continuing operations per ADS 0.05 0.25 (81%) 0.06 0.24 (75%)

Fully diluted earnings (loss) of continuing operations per ADS (1) 0.05 0.27 (83%) 0.06 0.24 (75%)

Average ADSs outstanding 1,533 1,541 (0%) 1,534 1,541 (0%)

Employees 40,759 41,822 (3%) 40,759 41,822 (3%)

Consolidated net sales in the second quarter of 2019 reached US$3.5 billion, representing a decrease of 5%, or 3% on a like-to-like basis for the ongoing operations and adjusting for foreign exchange fluctuations, compared with the second quarter of 2018. Higher prices for our products, in local-currency terms, in all our regions were more than offset by lower volumes in all of our regions except for ready mix and aggregates in the U.S.

Cost of sales as a percentage of net sales increased by 2.1pp during the second quarter of 2019 compared with the same period last year, from 64.7% to 66.8%. The increase was mainly driven by higher volumes of purchased cement and higher maintenance costs.

Operating expenses as a percentage of net sales increased by 0.8pp during the second quarter of 2019 compared with the same period in 2018, from 21.7% to 22.5%, reflecting higher selling and distribution expenses.

Operating EBITDA decreased 15% to US$644 million during the second quarter of 2019 compared with the same period last year or decreased 14% on a like-to-like basis for the ongoing operations and adjusting for foreign-exchange fluctuations. A higher contribution from our European region was more than offset by declines in the rest of our regions.

Operating EBITDA margin decreased by 2.3pp, from 20.6% in the second quarter of 2018 to 18.3% this quarter.

Gain (loss) on financial instruments for the quarter was a loss of US$2 million, resulting mainly from the derivatives related to the shares of GCC.

Other expenses, net, for the quarter were US$34 million, which includes severance payments and impairment of assets.

Foreign exchange results for the quarter was a loss of US$17 million, mainly due to the fluctuation of the Mexican peso versus the U.S. dollar.

Controlling interest net income (loss) was a gain of US$155 million in the second quarter of 2019, compared with a gain of US$376 million in the same quarter of 2018. This lower gain primarily reflects lower operating earnings, a loss in financial instruments, a negative variation in foreign exchange fluctuations and higher income tax, partially offset by lower financial expenses and a positive variation in discontinued operations.

This information does not include discontinued operations. Please see page 13 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 U.S. dollars, except volumes, percentages, employees, and per-ADS amounts. Average ADSs outstanding are presented in millions.

Please refer to page 12 for end-of quarter CPO-equivalent units outstanding.

(1) For the period January-June 2019, the effect of the potential dilutive shares generates anti-dilution; therefore, there is no change between the reported basic and diluted gain per share.

Net debt plus perpetual notes decreased by US$185 million during the quarter.

9715522987000 Mexico January—June Second Quarter 2019 2018 % var l-t-l                % var 2019 2018 % var l-t-l                % var Net sales 1,459 1,668 (13%) (12%) 752 868 (13%) (14%) Operating EBITDA 500 629 (21%) (20%) 245 321 (24%) (25%) Operating EBITDA margin 34.3% 37.7% (3.4pp) 32.5% 37.0% (4.5pp) In millions of U.S. dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage variation January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume (16%) (17%) (15%) (17%) (12%) (17%) Price (USD) 2% 3% 2% 4% 2% 4% Price (local currency) 3% 2% 4% 3% 3% 3% In Mexico, daily volumes for domestic gray cement, ready mix and aggregates all declined by 15% during the second quarter of 2019, on a year-over-year basis. Domestic gray cement prices in local-currency terms increased by 2% during the quarter while both ready-mix and aggregates prices increased by 3%, on a year-over-year basis. Sequentially, daily volumes for domestic gray cement increased by 7% with a 1% decline in prices. Ready-mix daily volumes grew by 2% with flat prices, also on a sequential basis. During the second quarter, the industrial-and-commercial sector was the driver for cement consumption during the quarter, stimulated by tourism-related investment and commercial activity. The residential sector was impacted by the slower-than-anticipated start of the new programs. Infrastructure activity has been affected by the termination of important projects last year and a slow start in the execution of this year’s budget. 9715522987000 United States January—June Second Quarter 2019 2018 % var l-t-l                % var 2019 2018 % var l-t-l                % var Net sales 1,910 1,844 4% 4% 1,032 989 4% 4% Operating EBITDA 314 341 (8%) (8%) 184 211 (12%) (12%) Operating EBITDA margin 16.4% 18.5% (2.1pp) 17.9% 21.3% (3.4pp) In millions of U.S. dollars, except percentages. Domestic gray cement Ready-mix Aggregates Year-over-year percentage variation January—June Second Quarter January—June Second Quarter January—June Second Quarter Volume (3%) (3%) 2% 3% 7% 9% Price (USD) 4% 4% 3% 3% 2% 3% Price (local currency) 4% 4% 3% 3% 2% 3% In the United States, our second quarter domestic gray cement volumes declined by 3%, while ready-mix and aggregates volumes increased by 3% and 9%, respectively, on a year-over-year basis. Our prices for domestic gray cement increased by 4% while those of ready-mix and aggregates both increased by 3%, on a year over year basis. Sequentially, both our domestic gray cement and aggregates prices increased by 3% during the quarter, while those of ready-mix increased by 1%. During the second quarter, we continued to experience adverse weather in a significant part of our footprint. The infrastructure and industrial-and-commercial sectors were the principal drivers of demand during this period. The infrastructure sector has shown significant strength, with street-and-highway spending growing 18% year-to-date May, fueled by an increase in state-transportation funding initiatives, especially in our key states. During the first half of the year, the residential sector was affected by weather, labor shortages, and rising costs. Housing starts were flat during the second quarter year over year but improved sequentially from first to second quarter. In the industrial-and-commercial sector, construction spending is up 3% year-to-date May with growth in offices, lodging and manufacturing.

9715522987000South, Central America and the Caribbean     January—June Second Quarter 20192018% varl-t-l                % var20192018% varl-t-l                % var Net sales850 916 (7%)(2%)424 462 (8%)(3%) Operating EBITDA195 220 (11%)(7%)93 112 (18%)(14%) Operating EBITDA margin23.0%24.0%(1.0pp) 21.9%24.3%(2.4pp) In millions of U.S. dollars, except percentages. Domestic gray cementReady-mixAggregates Year-over-year percentage variationJanuary—JuneSecond QuarterJanuary—JuneSecond QuarterJanuary—JuneSecond Quarter Volume(3%)(4%)(5%)(5%)(12%)(11%) Price (USD)(4%)(4%)(7%)(7%)(4%)(5%) Price (local currency) (*)2%3%(0%)1%4%4% In our South, Central America and the Caribbean region, our domestic gray cement, ready-mix and aggregates daily volumes declined by 2%, 3% and 9%, respectively, during the second quarter of 2019 on a year-over-year basis. Cement volumes increased in Colombia and El Salvador, while ready-mix volumes grew in Colombia and Puerto Rico. In Colombia, during the second quarter, our domestic gray cement, ready-mix and aggregates daily volumes increased by 13%, 5% and 8%, respectively. The infrastructure sector continued its favorable performance during the quarter supported by 4G activity as well as several projects in Bogota. In the residential sector, improved demand from the informal and social-housing segments was offset by declines in the mid-to-high-income segment. Quarterly cement prices in local-currency-terms increased by 3% year over year and 2% sequentially. (*) Calculated on a volume-weighted-average basis at constant foreign-exchange rates 9715522987000Europe January—JuneSecond Quarter 20192018% varl-t-l                % var20192018% varl-t-l                % var Net sales1,653 1,700 (3%)4%885 952 (7%)(2%) Operating EBITDA203 168 21%29%144 131 10%16% Operating EBITDA margin12.3%9.9%2.4pp 16.3%13.7%2.6pp In millions of U.S. dollars, except percentages. Domestic gray cementReady-mixAggregates Year-over-year percentage variationJanuary—JuneSecond QuarterJanuary—JuneSecond QuarterJanuary—JuneSecond Quarter Volume(0%)(9%)2%(4%)5%(1%) Price (USD)(1%)1%(2%)0%(3%)(2%) Price (local currency) (*)5%6%5%5%3%3% In the Europe region, quarterly domestic gray cement volumes decreased by 9%, while ready-mix and aggregates volumes declined by 4% and 1%, respectively, compared with the same period last year on a like-to-like basis. For the first half of the year, cement volumes remained stable, while those of ready-mix and aggregates grew 2% and 5%, respectively, compared with the same period of 2018. During the first half of the year, cement volumes grew in Spain, Poland, and the Czech Republic, while ready-mix volumes grew in the United Kingdom, France, Spain, and Croatia. Our quarterly performance mainly reflects fewer working days in the second quarter of this year compared with the same quarter last year; adverse weather conditions, especially in Poland, Germany and the United Kingdom; and demand brought forward to the first quarter given the unusually mild winter. The infrastructure and residential sectors continued to be the main demand drivers during the quarter, with large infrastructure projects in Germany, France and Poland; and growth in residential activity mainly in Spain. (*) Calculated on a volume-weighted-average basis at constant foreign-exchange rates

Asia9715522987000, Middle East and Africa     January—June Second Quarter 20192018% varl-t-l                % var20192018% varl-t-l                % var Net sales685 728 (6%)(5%)339 353 (4%)(5%) Operating EBITDA107 123 (13%)(12%)54 57 (5%)(6%) Operating EBITDA margin15.7%16.9%(1.2pp) 15.9%16.1%(0.2pp) In millions of U.S. dollars, except percentages. Domestic gray cementReady-mixAggregates Year-over-year percentage variationJanuary—JuneSecond QuarterJanuary—JuneSecond QuarterJanuary—JuneSecond Quarter Volume(14%)(14%)(5%)(3%)(6%)(3%) Price (USD)10%10%(1%)1%1%4% Price (local currency) (*)9%7%1%1%4%4% Our domestic gray cement volumes in the Asia, Middle East and Africa region decreased by 14% during the second quarter, on a year-over-year basis. Ready-mix and aggregates volumes both declined by 3%, compared with the second quarter of 2018. In the Philippines, our domestic gray cement daily volumes grew 3% during the quarter on a year-over-year basis. During the period there was a slowdown in construction activity related to the delay in the approval of the national budget as well as mid-term elections held in May. Cement volumes in the quarter were supported mainly by growth in the industrial-and-commercial sector driven by continued activity from business-process-outsourcing firms and offshore-gaming operations. In Egypt, our domestic gray cement volumes declined by 28% during the second quarter on a year-over-year basis, mainly due to difficult supply-demand conditions, a decline in cement consumption and a high base of comparison in the same quarter of last year, in which we temporarily sold additional volumes to lower Egypt. In Israel, during the second quarter, our ready-mix volumes grew 3%, while our aggregates volumes increased 1%, on a year-over-year basis. The industrial-and-commercial sector was the main driver of demand for this quarter.    (*) Calculated on a volume-weighted-average basis at constant foreign-exchange rates

Operating EBITDA and free cash flow 971558572500      January—JuneSecond Quarter 20192018% var20192018% var Operating earnings before other expenses, net673850(21%)377504(25%) + Depreciation and operating amortization532509 268257 Operating EBITDA1,2051,360(11%)644762(15%) - Net financial expense353367174177 - Maintenance capital expenditures264327144154 - Change in working capital5704144463 - Taxes paid11115074100 - Other cash items (net)1765(5)38 - Free cash flow discontinued operations10(6)(4)(12) Free cash flow after maintenance capital expenditures(121)43N/A217241(10%) - Strategic capital expenditures84394830 Free cash flow (205)5N/A168211(20%)    In millions of U.S. dollars, except percentages. During the quarter, free cash flow plus the proceeds from the divestment of assets in Germany and France were mainly used for the reduction of debt and the payment of the dividend. Our total debt plus perpetual notes during the quarter reflects a negative foreign exchange conversion effect of US$27 million. Information on debt and perpetual note9715522987000s First Quarter Second QuarterSecond Quarter 20192018% var201920192018 Total debt (1)11,048 11,617 (5%)11,231 Currency denomination Short-term7%6%12%U.S. dollar66%66% Long-term93%94%88%Euro24%25% Perpetual notes444 446 (0%)443 Mexican peso1%1% Total debt plus perpetual notes11,492 12,063 (5%)11,673 Other9%8% Cash and cash equivalents304 308 (1%)301 Net debt plus perpetual notes11,187 11,755 (5%)11,372 Interest rate Fixed65%64% Consolidated funded debt (2)10,805 11,229 10,955 Variable35%36% Consolidated leverage ratio (2)4.00 3.86 3.88 Consolidated coverage ratio (2)4.11 4.05 4.28 In millions of U.S. dollars, except percentages and ratios. Includes convertible notes and leases, in accordance with International Financial Reporting Standards (IFRS). Calculated in accordance with our contractual obligations under the 2017 Facilities Agreement, as amended and restated on April 2, 2019. 2018 amounts and ratios are not audited, and were not the actual amounts and ratios reported during 2018 under our Facilities Agreement dated July 2017, and are shown in this document for reference purposes only, giving effect to the adoption of IFRS 16, Leases, as if it had been in effect from January 1, 2018.

Consolidated Income Statement & 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 2019 2018 % var % var 2019 2018 % var % var

Net sales 6,723,896 7,005,819 (4%) (1%) 3,523,070 3,701,173 (5%) (3%)

Cost of sales (4,557,803) (4,632,351) 2% (2,352,336) (2,394,583) 2%

Gross profit 2,166,093 2,373,468 (9%) (6%) 1,170,734 1,306,590 (10%) (9%)

Operating expenses (1,493,412) (1,523,164) 2% (793,881) (802,095) 1%

Operating earnings before other expenses, net 672,681 850,304 (21%) (19%) 376,854 504,495 (25%) (24%)

Other expenses, net (86,807) (33,825) (157%) (34,291) (35,957) 5%

Operating earnings 585,874 816,479 (28%) 342,562 468,538 (27%)

Financial expense (359,146) (380,104) 6% (170,035) (176,542) 4%

Other financial income (expense), net (26,234) 61,489 N/A (27,486) 119,729 N/A

Financial income 9,786 9,414 4% 5,531 4,692 18%

Results from financial instruments, net 5,943 59,512 (90%) (1,707) 25,773 N/A

Foreign exchange results (12,239) 18,183 N/A (16,500) 101,802 N/A

Effects of net present value on assets and liabilities and others, net (29,724) (25,619) (16%) (14,810) (12,538) (18%)

Equity in gain (loss) of associates 11,230 13,458 (17%) 10,020 10,132 (1%)

Income (loss) before income tax 211,724 511,322 (59%) 155,061 421,857 (63%)

Income tax (115,174) (100,979) (14%) (53,243) (48,871) (9%)

Profit (loss) of continuing operations 96,550 410,343 (76%) 101,818 372,986 (73%)

Discontinued operations 121,471 7,273 1570% 62,102 10,466 493%

Consolidated net income (loss) 218,022 417,616 (48%) 163,920 383,452 (57%)

Non-controlling interest net income (loss) 24,633 21,578 14% 9,366 7,674 22%

Controlling interest net income (loss) 193,389 396,039 (51%) 154,554 375,778 (59%)

Operating EBITDA 1,204,976 1,359,656 (11%) (10%) 644,464 761,664 (15%) (14%)

Earnings (loss) of continued operations per ADS 0.05 0.25 (81%) 0.06 0.24 (75%)

Earnings (loss) of discontinued operations per ADS 0.08 0.00 1578% 0.04 0.01 491%

As of June 30

BALANCE SHEET 2019 2018 % var

Total assets 28,970,211 29,638,549 (2%)

Cash and cash equivalents 304,222 308,261 (1%)

Trade receivables less allowance for doubtful accounts 1,718,444 1,809,637 (5%)

Other accounts receivable 330,797 286,408 15%

Inventories, net 1,089,136 1,020,267 7%

Assets held for sale 236,848 95,771 147%

Other current assets 157,124 167,897 (6%)

Current assets 3,836,571 3,688,242 4%

Property, machinery and equipment, net 11,958,102 12,517,455 (4%)

Other assets 13,175,539 13,432,853 (2%)

Total liabilities 17,916,592 18,689,755 (4%)

Current liabilities 5,201,207 5,055,358 3%

Long-term liabilities 9,159,619 9,347,161 (2%)

Other liabilities 3,555,767 4,287,236 (17%)

Total stockholder’s equity 11,053,619 10,948,794 1%

Non-controlling interest and perpetual instruments 1,542,739 1,564,016 (1%)

Total controlling interest 9,510,880 9,286,859 2%

Operating Summary per CountryIn thousands of U.S. dollarsJanuary—June Second Quarter like-to-likelike-to-like NET SALES20192018% var% var20192018% var% var Mexico1,458,897 1,668,338 (13%)(12%)752,462 867,605 (13%)(14%) U.S.A.1,910,438 1,844,376 4%4%1,032,365 988,855 4%4% South, Central America and the Caribbean850,299 916,435 (7%)(2%)423,660 461,621 (8%)(3%) Europe1,653,104 1,700,307 (3%)4%885,112 952,345 (7%)(2%) Asia, Middle East and Africa685,113 728,335 (6%)(5%)338,580 353,366 (4%)(5%) Others and intercompany eliminations166,046 148,029 12%14%90,890 77,379 17%17% TOTAL6,723,896 7,005,819 (4%)(1%)3,523,070 3,701,173 (5%)(3%) GROSS PROFIT Mexico753,716 904,159 (17%)(16%)380,630 467,928 (19%)(20%) U.S.A.480,596 507,159 (5%)(6%)281,998 299,008 (6%)(6%) South, Central America and the Caribbean308,428 334,389 (8%)(3%)149,915 168,397 (11%)(6%) Europe424,091 417,890 1%8%260,902 267,480 (2%)3% Asia, Middle East and Africa183,781 207,613 (11%)(11%)96,848 102,774 (6%)(7%) Others and intercompany eliminations15,482 2,259 585%718%441 1,002 (56%)(56%) TOTAL2,166,093 2,373,468 (9%)(6%)1,170,734 1,306,590 (10%)(9%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Mexico422,555 555,587 (24%)(23%)205,726 284,374 (28%)(29%) U.S.A.108,661 154,847 (30%)(30%)80,589 115,608 (30%)(30%) South, Central America and the Caribbean147,495 171,992 (14%)(11%)69,190 88,213 (22%)(19%) Europe80,256 41,369 94%106%82,073 67,184 22%29% Asia, Middle East and Africa67,644 83,834 (19%)(19%)33,507 36,733 (9%)(9%) Others and intercompany eliminations(153,930)(157,325)2%(1%)(94,231)(87,617)(8%)(8%) TOTAL672,681 850,304 (21%)(19%)376,854 504,495 (25%)(24%)

Operating Summary per CountryEBITDA in thousands of U.S. dollars. EBITDA margin as a percentage of net sales.January June Second Quarter like-to-likelike-to-like OPERATING EBITDA20192018% var% var20192018% var% var Mexico499,773 629,055 (21%)(20%)244,575 320,992 (24%)(25%) U.S.A.314,066 341,321 (8%)(8%)184,441 210,617 (12%)(12%) South, Central America and the Caribbean195,242 219,702 (11%)(7%)92,576 112,398 (18%)(14%) Europe203,218 167,836 21%29%143,920 130,934 10%16% Asia, Middle East and Africa107,458 123,054 (13%)(12%)53,855 56,821 (5%)(6%) Others and intercompany eliminations(114,782)(121,314)5%1%(74,902)(70,098)(7%)(8%) TOTAL1,204,976 1,359,656 (11%)(10%)644,464 761,664 (15%)(14%) OPERATING EBITDA MARGIN Mexico34.3%37.7% 32.5%37.0% U.S.A.16.4%18.5%17.9%21.3% South, Central America and the Caribbean23.0%24.0%21.9%24.3% Europe12.3%9.9%16.3%13.7% Asia, Middle East and Africa15.7%16.9% 15.9%16.1% TOTAL17.9%19.4% 18.3%20.6%

Volume Summary    Consolidated volume summary     Cement and aggregates: Thousands of metric tons. Ready-mix: Thousands of cubic meters. January—JuneSecond Quarter 20192018% var20192018% var Consolidated cement volume (1)31,27234,230(9%)16,33918,329(11%) Consolidated ready-mix volume 24,91425,671(3%)13,00713,640(5%) Consolidated aggregates volume 70,14069,7341%36,94737,483(1%) Per-country volume summary January—JuneSecond QuarterSecond Quarter 2019 vs. DOMESTIC GRAY CEMENT VOLUME2019 vs. 20182019 vs. 2018First Quarter 2019 Mexico(16%) (17%) 8% U.S.A.(3%)(3%)17% South, Central America and the Caribbean(3%)(4%)2% Europe(0%)(9%)21% Asia, Middle East and Africa(14%) (14%) (1%) READY-MIX VOLUME Mexico(15%) (17%) 4% U.S.A.2%3%14% South, Central America and the Caribbean(5%)(5%)(5%) Europe2%(4%)19% Asia, Middle East and Africa(5%) (3%) (5%) AGGREGATES VOLUME Mexico(12%) (17%) (1%) U.S.A.7%9%15% South, Central America and the Caribbean(12%)(11%)(2%) Europe5%(1%)18% Asia, Middle East and Africa(6%) (3%) 4%                (1) Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.

Price Summary    Variation in U.S. dollars     January—JuneSecond QuarterSecond Quarter 2019 vs. DOMESTIC GRAY CEMENT PRICE2019 vs. 20182019 vs. 2018First Quarter 2019 Mexico2% 3% (1%) U.S.A.4%4%3% South, Central America and the Caribbean (*)(4%)(4%)(0%) Europe (*)(1%)1%(0%) Asia, Middle East and Africa (*)10% 10% 0% READY-MIX PRICE Mexico2% 4% 0% U.S.A.3%3%1% South, Central America and the Caribbean (*)(7%)(7%)(3%) Europe (*)(2%)0%(3%) Asia, Middle East and Africa (*)(1%) 1% 2% AGGREGATES PRICE Mexico2% 4% 3% U.S.A.2%3%3% South, Central America and the Caribbean (*)(4%)(5%)(2%) Europe (*)(3%)(2%)(5%) Asia, Middle East and Africa (*)1% 4% 1%    Variation in Local Currency January—JuneSecond QuarterSecond Quarter 2019 vs. DOMESTIC GRAY CEMENT PRICE2019 vs. 20182019 vs. 2018First Quarter 2019 Mexico3% 2% (1%) U.S.A.4%4%3% South, Central America and the Caribbean (*)2%3%1% Europe (*)5%6%1% Asia, Middle East and Africa (*)9% 7% (1%) READY-MIX PRICE Mexico4% 3% 0% U.S.A.3%3%1% South, Central America and the Caribbean (*)(0%)1%(1%) Europe (*)5%5%(1%) Asia, Middle East and Africa (*)1% 1% 1% AGGREGATES PRICE Mexico3% 3% 3% U.S.A.2%3%3% South, Central America and the Caribbean (*)4%4%0% Europe (*)3%3%(3%) Asia, Middle East and Africa (*)4% 4% 0% (*) Price variation in U.S. dollars calculated on a volume-weighted-average basis; price variation in local currency calculated on a volume-weighted-average basis at constant foreign-exchange rates

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 2019 2018 2019 Millions of U.S. dollars Notional Amount Fair Value Notional Amount Fair Value Notional Amount Fair Value Exchange rate derivatives (1) 1,272 (34) 1,247 42 1,524 (23) Equity related derivatives (2)(5) 103 6 168 31 111 7 Interest rate swaps (3) 1,121 (32) 1,132 6 1,126 (16) Fuel derivatives (4) 105 (2) 54 20 104 (1) 2,601 (62) 2,601 99 2,865 (33) Exchange rate derivatives are used to manage currency exposures that arise from the regular operations and from forecasted transactions. Equity derivatives related to options on the Parent Company’s own shares and to forwards, net of cash collateral, over the shares of Grupo Cementos de Chihuahua, S.A.B. de C.V. Interest-rate swap derivatives related to our long-term energy contracts and to bank loans with a nominal amount of US$1,000 million. Forward contracts negotiated to hedge the price of the fuel consumed in certain operations. As required by IFRS, the equity related derivatives fair market value as of June 30, 2018 includes a liability of US$8 million, 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, 2019, in connection with the fair market value recognition of its derivatives portfolio, CEMEX recognized increases in its assets and liabilities resulting in a net liability of US$62 million. Equity-related information One CEMEX ADS represents ten CEMEX CPOs. One CEMEX CPO represents two Series A shares and one Series B share. The following amounts are expressed in CPO-equivalent terms. Beginning-of-quarter outstanding CPO-equivalents 14,983,186,249 Stock-based compensation 25,052,980 End-of-quarter outstanding CPO-equivalents 15,008,239,229 For purposes of this report, outstanding CPO-equivalents equal the total number of A and B shares outstanding as if they were all held in CPO form less CPOs held in subsidiaries, which as of June 30, 2019 were 20,541,277. CEMEX also has outstanding mandatorily convertible securities which, upon conversion in November of 2019, will increase the number of CPOs outstanding by approximately 236 million, subject to antidilution adjustments. Change in reporting currency to U.S. dollar In its quarterly report to the Mexican Stock Exchange (Bolsa Mexicana de Valores) for the three-month period ended March 31, 2019, CEMEX informed that based on International Accounting Standard 21, The Effects of Changes in Foreign Exchange Rates (“IAS 21”) under International Financial Reporting Standards (“IFRS”) and with the authorization of CEMEX, S.A.B. de C.V.’s Board of Directors, considering the previous favorable opinion of its Audit Committee, CEMEX changed its reporting currency prospectively from the Mexican peso to the United States dollar (the “U.S. dollar”) beginning on March 31, 2019 and for each subsequent period; and established that the new presentation currency is preferable considering several factors described in such report. The change in reporting currency does not affect the impact of CEMEX’s transactions in its financial statements, does not affect negatively or positively our financial position, does not constitute any form of foreign exchange hedge for balances denominated or transactions incurred in U.S. dollars or other currencies and does not change in any form the several functional currencies used in each unit within CEMEX.

Newly issued IFRS effective in 2019 IFRS 16, Leases (“IFRS 16”) In summary, beginning January 1, 2019, IFRS 16 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. Under this model, the lessee recognizes amortization of the right-of-use asset and interest on the lease liability. After concluding the inventory and measurement of its leases as of January 1, 2017, which have been further remeasured during 2019 for minor findings and corrections for not significant amounts, CEMEX 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, 2017 as follows: (Millions of U.S. dollars) As of January 1, 2017 Assets for the right-of-use (1)$1,360 Deferred tax assets 31 Lease financial liabilities 1,474 Deferred tax liabilities 0 Retained earnings (2)$(83) Includes US$24 million of property, plant and equipment reclassified to assets for the right-of-use related to financial leases at the date of adoption. The initial effect in retained earnings refers to a temporary difference between the straight-line amortization expense of the right-of-use asset and 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 modified the previously reported income statement for the six-month period ended June 30, 2018 to give effect to the retrospective adoption of IFRS 16, as follows: SELECTED INFORMATION INCOME STATEMENTAs originally reported (3) As modified (Millions of U.S. dollars)Jan-Jun Second QuarterJan-JunSecond Quarter Revenues7,006 3,7017,0063,701 Cost of sales(4,645) (2,401)(4,632)(2,395) Operating expenses(1,534) (808)(1,523)(802) Other (expenses) income, net(34) (36)(34)(36) Financial (expenses) income and others, net(269) (29)(305)(47) Earnings before income tax523 427511422 Income tax(103) (50)(101)(49) Earnings from continuing operations421 377410373 Original income statement excludes discontinued operations of the Baltic and Nordic, French and German assets and the operating segment in Brazil and it was prepared to present the information before the adoption of IFRS 16. As of June 30, 2019 and December 31, 2018, assets for the right-of-use amounted to US$1,148 million and US$1,234 million, respectively. In addition, financial liabilities related to lease contracts amounted to US$1,183 million as of June 30, 2019 and US$1,194 million as of December 31, 2018 and were included within “Other financial liabilities.” Discontinued operations and other disposal groups Discontinued operations On June 28, 2019, after obtaining customary authorizations, CEMEX closed with several counterparties the sale of its ready-mix and aggregates business in the central region of France for an aggregate price of approximately €31.8 million. CEMEX’s operations of these disposed assets in France for the period from January 1 to June 28, 2019 and for the six-month period ended June 30, 2018 are reported net of tax in the single line item “Discontinued operations,” generating in 2019 a gain on sale of approximately US$3 million, which includes the recycling to the income statement of currency translation effects of approximately US$4 million accrued in equity until the date of disposal and a proportional allocation of goodwill related to this reporting segment of US$22 million. On May 31, 2019, CEMEX concluded the sale of its aggregates and ready-mix assets in the North and North-West regions of Germany to GP Günter Papenburg AG for approximately €87 million. The assets divested in Germany consist of 4 aggregates quarries and 4 ready-mix facilities in North Germany, and 9 aggregates quarries and 14 ready-mix facilities in North-West Germany. CEMEX’s operations of these disposed assets for the period from January 1 to May 31, 2019 and for the six-month period ended June 30, 2018 are reported net of tax in the single line item “Discontinued operations,” generating in 2019 a gain on sale of approximately US$59 million, which includes the recycling to the income statement of currency translation effects of approximately US$8 million accrued in equity until the date of disposal. On March 29, 2019, CEMEX closed the sale of assets in the Baltics and Nordics to the German building materials group SCHWENK, for a price equivalent to approximately US$387 million. The Baltic assets divested consisted of one cement production plant in Broceni with a production capacity of approximately 1.7 million tons, four aggregates quarries, two cement quarries, six ready-mix plants, one marine terminal and one land distribution terminal in Latvia. The assets divested also included CEMEX’s approximate 38% indirect interest in one cement production plant in Akmene in Lithuania, with a production capacity of approximately 1.8 million tons, as well as the exports business to Estonia. The Nordic assets divested consisted of three import terminals in Finland, four import terminals in Norway and four import terminals in Sweden. CEMEX’s operations of these disposed assets for the period from January 1 to March 29, 2019 and for the six-month period ended June 30, 2018 are reported net of tax in the single line item “Discontinued operations,” generating in 2019 a gain on sale of approximately US$66 million, which includes the recycling to the income statement of currency translation effects of approximately US$31 million accrued in equity until the date of disposal. On September 27, 2018, after receiving the corresponding authorizations by local authorities, CEMEX concluded the disposal of its construction materials operations in Brazil to Votorantim Cimentos N/NE S.A., comprised mainly 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 and before withholding taxes. CEMEX’s operations for its operating segment in Brazil for the six-month period ended June 30, 2018 are reported net of tax in the single line item “Discontinued operations.” The following table presents condensed combined information of the income statements of CEMEX’s discontinued operations of: a) the French assets for the period from January 1 to June 28, 2019 and for the six-month period ended June 30, 2018, b) the German assets for the period from January 1 to May 31, 2019 and for the six-month period ended June 30, 2018, c) the Baltic and Nordic assets for the period from January 1 to March 29, 2019 and for the six-month period ended June

30, 2018, and d) the operating segment in Brazil for the six-month period ended June 30, 2018: INCOME STATEMENT    Jan-Jun Second Quarter (Millions of U.S. dollars)2019201820192018 Sales9719031111 Cost of sales and operating expenses(100)(180)(31)(100) Other expenses, net10(0)(0) Interest expense, net and others0(3)0(1) Income (loss) before income tax(2)7010 Income tax0000 Net income (loss)(2)7010 Non-controlling interest net income 0000 Controlling interest net income (2)7010 Net gain on sale1230620 Discontinued operations12176210    Assets held for sale and related liabilities On March 29, 2019, CEMEX announced it has signed final agreements with Çimsa Çimento Sanayi Ve Ticaret A.Ş., to divest CEMEX’s white cement business, including its Buñol cement plant in Spain, for approximately US$180 million. CEMEX currently expects it could close this divestment during the second half of 2019. The proposed divestment does not include CEMEX’s white cement business in Mexico as well as the investment in Lehigh White Cement in the U.S. As of June 30, 2019, assets and liabilities related to the transaction described above are presented in the statement of financial position in the line items of “Assets held for sale” and “Liabilities directly related to assets held for sale,” respectively. At the same date discontinued operations treatment is under assessment.

Methodology for translation, consolidation, and presentation of results Under IFRS, 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. Beginning on March 31, 2019 and for each subsequent period CEMEX reports its consolidated results in U.S. dollars. Breakdown of regions The South, Central America and the Caribbean region includes CEMEX’s operations in Argentina, Bahamas, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Haiti, Jamaica, Trinidad & 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, Poland, and the United Kingdom. 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 (like to like) on a like-to-like basis adjusting for currency fluctuations and for investments/divestments when applicable. Maintenance capital expenditures equals 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 equals 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 QuarterSecond Quarter 201920182019201820192018 AverageAverageAverageAverageEnd of periodEnd of period Mexican peso19.2619.0519.2519.5119.2119.92 Euro0.88570.82910.89070.84590.87970.8561 British pound0.77260.72920.78460.74520.78770.7573 Amounts provided in units of local currency per U.S. dollar.