EX-99.2 3 d809696dex992.htm THIRD QUARTER 2019 RESULTS FOR CEMEX LATAM HOLDINGS, S.A.

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

Exhibit 2

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

OPERATING AND FINANCIAL HIGHLIGHTS January—September Third Quarter l-t-l l-t-l 2019 2018 % var 2019 2018 % var % var % var Consolidated cement volume 4,892 4,969 (2%) 1,647 1,638 1% Consolidated domestic gray cement volume 4,392 4,366 1% 1,480 1,462 1% Consolidated ready-mix volume 1,831 1,945 (6%) 601 658 (9%) Consolidated aggregates volume 4,377 4,794 (9%) 1,426 1,559 (9%) Net sales 752 849 (11%) (5%) 245 277 (12%) (4%) Gross profit 290 347 (16%) (10%) 96 114 (16%) (9%) as % of net sales 38.6% 40.9% (2.3pp) 39.2% 41.3% (2.1pp) Operating earnings before other expenses, net 87 131 (33%) (28%) 27 42 (34%) (27%) as % of net sales 11.6% 15.4% (3.8pp) 11.2% 15.0% (3.8pp) Controlling interest net income (loss) 8 53 (86%) -4 19 N/A Operating EBITDA 146 192 (24%) (19%) 46 62 (26%) (20%) as % of net sales 19.4% 22.7% (3.3pp) 18.7% 22.2% (3.5pp) Free cash flow after maintenance capital 52 35 46% 11 16 (33%) expenditures Free cash flow 50 35 43% 11 17 (37%) Net debt 765 834 (8%) 765 834 (8%) Total debt 788 857 (8%) 788 857 (8%) Earnings of continuing operations per share 0.01    0.13 (90%) (0.01)    0.05 N/A Shares outstanding at end of period 557 557 0% 557 557 0% Employees 3,896 4,156 (6%) 3,896 4,156 (6%) 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 third quarter of 2019 declined by 12% to that of the third quarter of 2018. The decline in local-currency terms in U.S.-dollar terms, or by 4% in local-currency terms, compared to those is mainly due to increased maintenance expenses and logistics cost, as of the third quarter of 2018. Improved sales in Colombia and El Salvador well as to lower sales, partially offset by SG&A savings related to our were more than offset by decreases in the rest of our countries, in local- Stronger CEMEX plan. currency terms. Operating EBITDA margin during the third quarter of 2019 declined by Cost of sales as a percentage of net sales during the third quarter 3.5pp, compared to that of the third quarter of 2018. increased by 2.1pp from 58.7% to 60.8%, on a year-over-year basis. Controlling interest net income during the third quarter was negative Operating expenses as a percentage of net sales during the quarter US$4 million, compared to US$19 million during the same quarter of increased by 1.7pp from 26.2% to 27.9%, compared to those of 2018. 2018. Operating EBITDA during the third quarter of 2019 declined in U.S.- Total debt declined US$23 million during the quarter, reaching US$788 dollar and local-currency terms by 26% and 20%, respectively, compared million. 2019 Third Quarter Results                Page 2

OPERATING RESULTS Colombia January—September Third Quarter l-t-l l-t-l 2019 2018 % var 2019 2018 % var % var % var Net sales 376 399 (6%) 7% 127 134 (6%) 8% Operating EBITDA 59 74 (20%) (10%) 20 26 (25%) (12%) Operating EBITDA margin 15.7% 18.5% (2.8pp) 15.7% 19.7% (4.0pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—January—January— Third Quarter Third Quarter Third Quarter September September September Volume 11% 12% 6% 6% 1% 2% Price (USD) (9%) (8%) (12%) (11%) (8%) (9%) Price (local currency) 3% 5% (0%) 2% 5% 4% Year-over-year percentage variation. In Colombia, during the third quarter our domestic gray cement, ready-mix and aggregates volumes increased by 12%, 6%, and 2%, respectively, compared to those of the third quarter of 2018. For the first nine months of the year, our domestic gray cement, ready-mix and aggregates volumes increased by 11%, 6%, and 1%, respectively, on a year-over-year basis. We are encouraged by the positive cement-demand trend in Colombia driven by the infrastructure and the self-construction sectors. We estimate that cement-industry demand increased by 7% during the third quarter and by 4% year-to-date September. Our cement prices during the quarter increased by 2% sequentially and by 5% year-over-year, in Colombian-pesos terms. Our cement prices from December 2018 to September increased by 8%, in local-currency terms. Panama January—September Third Quarter l-t-l l-t-l 2019 2018 % var 2019 2018 % var % var % var Net sales 143 169 (16%) (16%) 45 58 (22%) (22%) Operating EBITDA 38 52 (27%) (27%) 14 17 (18%) (18%) Operating EBITDA margin 26.8% 30.8% (4.0pp) 30.7% 29.1% 1.6pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—January—January— Third Quarter Third Quarter Third Quarter September September September Volume (14%) (22%) (26%) (38%) (31%) (33%) Price (USD) (6%) (6%) (2%) 0% (6%) (8%) Price (local currency) (6%) (6%) (2%) 0% (6%) (8%) Year-over-year percentage variation. In Panama during the third quarter our domestic gray cement, ready-mix and aggregates volumes decreased by 22%, 38%, and 33%, respectively, compared to those of the third quarter of 2018. For the first nine months of 2019, our domestic gray cement, ready-mix and aggregates volumes declined by 14%, 26%, and 31%, respectively, on a year-over-year basis. Cement demand was weak during the quarter. We estimate that cement-industry demand declined by 10% during this period and by 7% year-to-date September. Cement demand continued to be affected by high levels of inventory in apartments and offices, as well as by the consolidation of the new government. In the infrastructure sector, cement consumption from the “Corredor de las playas” project was slower than expected, and the Fourth Bridge over the Canal has not started cement consumption yet. 2019 Third Quarter Results                Page 3

OPERATING RESULTS Costa Rica January—September Third Quarter l-t-l l-t-l 2019 2018 % var 2019 2018 % var % var % var Net sales 80 112 (28%) (26%) 25 33 (25%) (24%) Operating EBITDA 24 37 (36%) (33%) 5 12 (58%) (58%) Operating EBITDA margin 29.6% 33.0% (3.4pp) 19.6% 34.9% (15.3pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—January—January— Third Quarter Third Quarter Third Quarter September September September Volume (23%) (14%) (26%) (42%) (5%) (27%) Price (USD) (5%) (4%) 0% (4%) (11%) (15%) Price (local currency) (2%) (4%) 4% (4%) (8%) (15%) Year-over-year percentage variation. In Costa Rica, during the third quarter our domestic gray cement, ready-mix and aggregates volumes decreased by 14%, 42%, and 27%, respectively, compared to those of the third quarter of 2018. For the first nine months of the year, our domestic gray cement, ready-mix and aggregates volumes declined by 23%, 26% and 5%, respectively, on a year-over-year basis.    Cement-industry demand remained weak during the quarter. We estimate that it declined by 7% during this period and by 11% year-to-date September. Cement demand continued to be affected by the uncertainty related to the implementation of the fiscal reform, as well as by the slow execution of infrastructure projects. Rest of CLH January—September Third Quarter l-t-l l-t-l 2019 2018 % var 2019 2018 % var % var % var Net sales 164 180 (9%) (6%) 51 56 (9%) (6%) Operating EBITDA 46 58 (20%) (18%) 14 16 (15%) (13%) Operating EBITDA margin 28.3% 32.4% (4.1pp) 27.1% 29.1% (2.0pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January—January—January— Third Quarter Third Quarter Third Quarter September September September Volume (5%) (7%) (43%) (36%) (38%) 79% Price (USD) (2%) (2%) 2% 6% 16% 30% Price (local currency) 1% 1% 6% 8% 22% 37% Year-over-year percentage variation. In the Rest of CLH region, which includes our operations in Nicaragua, Guatemala and El Salvador, our quarterly domestic gray cement and ready-mix volumes decreased by 7% and 36%, respectively, while our aggregates volumes increased by 79%, compared to those of the third quarter of 2018. For the first nine months of 2019, our domestic gray cement, ready-mix and aggregates volumes declined by 5%, 43%, and 38%, respectively, on a year-over-year basis. In Nicaragua, the socio-political crisis remains unsolved and continues to take a toll in economic activity, including cement demand. Most of the highway projects sponsored by the government were in final construction stages and have not been replaced by new projects. Going forward, the self-construction sector should continue supporting cement consumption in the country. In Guatemala, the second round of the presidential elections took place in August and Alejandro Giammattei became president elect. There is optimism in the country with the results of the elections, which could translate into a boost in private investment in coming months. 2019 Third Quarter Results                Page 4

. OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January—September Third Quarter 2019 2018 % var 2019 2018 % var Operating earnings before other expenses, net 87 131 (33%) 27 42 (34%) + Depreciation and operating amortization 59 62 17 20 Operating EBITDA 146 192 (24%) 45 62 (27%) - Net financial expense 40 44 13 14 - Capital expenditures for maintenance 30 29 13 11 - Change in working Capital (9) 10 (4) 1 - Taxes paid 35 40 12 19 - Other cash items (Net) (1) 32 2    2 - Free cash flow discontinued operations 0    1 0 (1) Free cash flow after maintenance capital exp 52 35 46% 11 16 (33%) - Strategic Capital expenditures 1    0 0 (1) Free cash flow 50 35 43% 11 17 (37%) In millions of US dollars, except percentages. Information on Debt Second Third Quarter Third Quarter Quarter 2019 2018 % var 2019 2019 2018 Total debt 1, 2 788 857 811 Currency denomination Short term 18% 24% 17% U.S. dollar 99% 99% Long term 82% 76% 83% Colombian peso 1% 1% Cash and cash equivalents 23 24 (3%) 28 Interest rate Net debt 765 834 (8%) 783    Fixed 60% 60% Net debt / EBITDA 3.8x 3.1x 3.6x Variable 40% 40% 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 Third 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—September Third Quarter l-t-l l-t-l INCOME STATEMENT 2019 2018 % var 2019 2018 % var % var % var Net sales 751,826 848,520 (11%) (5%) 244,644 276,617 (12%) (4%) Cost of sales (461,730) (501,128) 8% (148,824) (162,493) 8% Gross profit 290,096 347,392 (16%) (10%) 95,820 114,124 (16%) (9%) Operating expenses (202,969) (216,697) 6% (68,361) (72,581) 6% Operating earnings before other expenses, net 87,127 130,695 (33%) (28%) 27,459 41,543 (34%) (27%) Other expenses, net (12,337) (704) (1651%) (4,244) 5,312 n/a Operating earnings 74,790 129,991 (42%) 23,215 46,855 (50%) Financial expenses (39,598) (44,191) 10% (12,591) (14,197) 11% Other income (expenses), net (22,595) 10,002 n/a (16,708) 5,356 n/a Net income before income taxes 12,597 95,802 (87%) (6,084) 38,014 n/a Income tax (5,036) (33,296) 85% 2,502 (9,762) n/a Profit of continuing operations 7,561 62,506 (88%) (3,582) 28,252 n/a Discontinued operations 0 (9,383) 100% 0 (8,659) 0% Consolidated net income 7,561 53,123 (86%) (3,582) 19,593 n/a Non-controlling Interest Net Income 18 (186) n/a 27 (107) n/a Controlling Interest Net Income 7,579 52,937 (86%) (3,555) 19,486 n/a Operating EBITDA 146,003 192,353 (24%) (19%) 45,827 61,525 (26%) (20%) Earnings of continued operations per share 0.01 0.13 (90%) (0.01) 0.05 n/a Earnings of discontinued operations per share 0.00 (0.02) 100% 0.00 (0.02) 100% as of September 30 BALANCE SHEET 2019 2018 % var Total Assets 2,934,625 3,136,670 (6%) Cash and Temporary Investments 23,193 23,564 (2%) Trade Accounts Receivables 79,833 107,937 (26%) Other Receivables 54,383 56,064 (3%) Inventories 76,176 79,178 (4%) Assets held for sale 0 0 n/a Other Current Assets 13,708 21,213 (35%) Current Assets 247,293 287,956 (14%) Fixed Assets 1,113,189 1,235,205 (10%) Other Assets 1,574,143 1,613,509 (2%) Total Liabilities 1,412,635 1,594,452 (11%) Liabilities available for sale 0 0 n/a Other Current Liabilities 392,858 490,774 (20%) Current Liabilities 392,858 490,774 (20%) Long-Term Liabilities 1,002,663 1,091,067 (8%) Other Liabilities 17,114 12,611 36% Consolidated Stockholders’ Equity 1,521,990 1,542,218 (1%) Non-controlling Interest 5,116 5,615 (9%) Stockholders’ Equity Attributable to Controlling Interest 1,516,874 1,536,603 (1%) 2019 Third 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—September Third Quarter INCOME STATEMENT 2019 2018 % var 2019 2018 % var Net sales 2,456,598 2,448,660 0% 830,658 818,353 2% Cost of sales (1,508,707) (1,446,158) (4%) (505,314) (480,726) (5%) Gross profit 947,891 1,002,503 (5%) 325,344 337,627 (4%) Operating expenses (663,204) (625,342) (6%) (232,111) (214,724) (8%) Operating earnings before other expenses, net 284,687 377,161 (25%) 93,233 122,903 (24%) Other expenses, net (40,311) (2,033) >100% (14,410) 15,713 n/a Operating earnings 244,376 375,128 (35%) 78,823 138,616 (43%) Financial expenses (129,386) (127,527) (1%) (42,751) (42,001) (2%) Other income (expenses), net (73,829) 28,864 n/a (56,729) 15,844 n/a Net income before income taxes 41,161 276,465 (85%) (20,657) 112,459 n/a Income tax (16,456) (96,085) 83% 8,494 (28,877) n/a Profit of continuing operations 24,705 180,380 (86%) (12,163) 83,582 n/a Discontinued operations 0 (27,078) 100% 0 (25,619) 100% Consolidated net income 24,705 153,302 (84%) (12,163) 57,963 n/a Non-controlling Interest Net Income 60 (537) n/a 94 (316) n/a Controlling Interest Net Income 24,765 152,765 (84%) (12,069) 57,647 n/a Operating EBITDA 477,068 555,093 (14%) 155,599 182,017 (15%) Earnings of continued operations per share 44 324 (86%) (22) 150 n/a Earnings of discontinued operations per share 0 (49) (100%) 0 (46) 100% as of September 30 BALANCE SHEET 2019 2018 % var Total Assets 10,159,700 9,322,748 9% Cash and Temporary Investments 80,294 70,035 15% Trade Accounts Receivables 276,384 320,807 (14%) Other Receivables 188,276 166,632 13% Inventories 263,722 235,332 12% Assets held for sale 0 0 n/a Other Current Assets 47,455 63,051 (25%) Current Assets 856,131 855,857 0% Fixed Assets 3,853,872 3,671,250 5% Other Assets 5,449,697 4,795,641 14% Total Liabilities 4,890,556 4,738,997 3% Liabilities available for sale 0 0 n/a Other Current Liabilities 1,360,078 1,458,670 (7%) Current Liabilities 1,360,078 1,458,670 (7%) Long-Term Liabilities 3,471,231 3,242,849 7% Other Liabilities 59,247 37,478 58% Consolidated Stockholders’ Equity 5,269,144 4,583,751 15% Non-controlling Interest 17,709 16,687 6% Stockholders’ Equity Attributable to Controlling Interest 5,251,435 4,567,064 15% 2019 Third Quarter Results                Page 7

Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales January—September Third Quarter l-t-l l-t-l 2019 2018 % var 2019 2018 % var % var % var NET SALES Colombia 376,324 399,249 (6%) 7% 126,673 134,274 (6%) 8% Panama 143,038 169,412 (16%) (16%) 45,182 57,932 (22%) (22%) Costa Rica 80,109 111,931 (28%) (26%) 24,901 33,000 (25%) (24%) Rest of CLH 164,369 180,130 (9%) (6%) 51,195 56,128 (9%) (6%) Others and intercompany eliminations (12,014) (12,202) 2% 2% (3,307) (4,717) 30% 30% TOTAL 751,826 848,520 (11%) (5%) 244,644 276,617 (12%) (4%) GROSS PROFIT Colombia 139,944 152,524 (8%) 4% 47,985 53,248 (10%) 3% Panama 50,327 67,215 (25%) (25%) 18,364 22,167 (17%) (17%) Costa Rica 37,134 51,461 (28%) (25%) 9,491 16,455 (42%) (42%) Rest of CLH 63,021 74,571 (15%) (12%) 19,166 21,659 (12%) (9%) Others and intercompany eliminations (330) 1,621 N/A N/A 814 595 37% 37% TOTAL 290,096 347,392 (16%) (10%) 95,820 114,124 (16%) (9%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 38,729 51,635 (25%) (15%) 13,295 19,063 (30%) (17%) Panama 25,424 40,079 (37%) (37%) 9,731 12,767 (24%) (24%) Costa Rica 20,216 33,250 (39%) (37%) 3,742 10,310 (64%) (64%) Rest of CLH 40,699 52,273 (22%) (19%) 12,061 14,372 (16%) (14%) Others and intercompany eliminations (37,941) (46,541) 18% 18% (11,370) (14,969) 24% 24% TOTAL 87,127 130,695 (33%) (28%) 27,459 41,543 (34%) (27%) OPERATING EBITDA Colombia 58,974 73,761 (20%) (10%) 19,901 26,402 (25%) (12%) Panama 38,281 52,256 (27%) (27%) 13,869 16,847 (18%) (18%) Costa Rica 23,689 36,948 (36%) (33%) 4,878 11,521 (58%) (58%) Rest of CLH 46,442 58,351 (20%) (18%) 13,861 16,311 (15%) (13%) Others and intercompany eliminations (21,383) (28,963) 26% 26% (6,682) (9,556) 30% 25% TOTAL 146,003 192,353 (24%) (19%) 45,827 61,525 (26%) (20%) OPERATING EBITDA MARGIN Colombia 15.7% 18.5% (2.8pp) 15.7% 19.7% (4.0pp) Panama 26.8% 30.8% (4.0pp) 30.7% 29.1% 1.6pp Costa Rica 29.6% 33.0% (3.4pp) 19.6% 34.9% (15.3pp) Rest of CLH 28.3% 32.4% (4.1pp) 27.1% 29.1% (2.0pp) TOTAL 19.4% 22.7% (3.3pp) 18.7% 22.2% (3.5pp) 2019 Third Quarter Results                Page 8

Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters January—September Third Quarter 2019 2018 % var 2019 2018 % var Total cement volume 1 4,892 4,969 (2%) 1,647 1,638 1% Total domestic gray cement volume 4,392 4,366 1% 1,480 1,462 1% Total ready-mix volume 1,831 1,945 (6%) 601 658 (9%) Total aggregates volume 4,377 4,794 (9%) 1,426 1,559 (9%) 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker. Per-country volume summary January—September Third Quarter Third Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Second Quarter 2019 DOMESTIC GRAY CEMENT Colombia 11% 12% 7% Panama (14%) (22%) (9%) Costa Rica (23%) (14%) 0% Rest of CLH (5%) (7%) (9%) READY-MIX Colombia 6% 6% 6% Panama (26%) (38%) (10%) Costa Rica (26%) (42%) (28%) Rest of CLH (43%) (36%) 18% AGGREGATES Colombia 1% 2% (1%) Panama (31%) (33%) (2%) Costa Rica (5%) (27%) (16%) Rest of CLH (38%) 79% 33% 2019 Third Quarter Results                Page 9

Price Summary Variation in U.S. dollars January—September Third Quarter Third Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Second Quarter 2019 DOMESTIC GRAY CEMENT Colombia (9%) (8%) (2%) Panama (6%) (6%) (1%) Costa Rica (5%) (4%) (1%) Rest of CLH (2%) (2%) (2%) READY-MIX Colombia (12%) (11%) (4%) Panama (2%) 0% 5% Costa Rica 0% (4%) (5%) Rest of CLH 2% 6% 1% AGGREGATES Colombia (8%) (9%) 0% Panama (6%) (8%) 9% Costa Rica (11%) (15%) (15%) Rest of CLH 16% 30% 13% For Rest of CLH, volume-weighted average prices. Variation in local currency January—September Third Quarter Third Quarter 2019 2019 vs. 2018 2019 vs. 2018 vs. Second Quarter 2019 DOMESTIC GRAY CEMENT Colombia 3% 5% 2% Panama (6%) (6%) (1%) Costa Rica (2%) (4%) (3%) Rest of CLH 1% 1% (1%) READY-MIX Colombia (0%) 2% 0% Panama (2%) 0% 5% Costa Rica 4% (4%) (8%) Rest of CLH 6% 8% 1% AGGREGATES Colombia 5% 4% 4% Panama (6%) (8%) 9% Costa Rica (8%) (15%) (17%) Rest of CLH 22% 37% 15% For Rest of CLH, volume-weighted average prices. 2019 Third Quarter Results                Page 10

Subsequent Event: Unconstitutionality of the Tax Reform of 2018 in Colombia On October 16, 2019, the Colombian Constitutional Court declared the unconstitutionality of the Tax Reform of 2018, with which, its provisions will be without effect as of January 1, 2020. This represents that the tax modifications which are discussed in the note 17a of the consolidated financial statements, and by virtue of which, the income tax rate would go to 32% in 2020, 31% in 2021 and 30% in 2022 and thereafter, would be without effect as of January 1, 2020. It is likely that before December 31, 2019 the Colombian Congress could approve a new reform that replaces the repealed provisions, however, if not, the decision establishes that the existing tax regime before the repealed Financing Law would enter from new effective as of January 1, 2020, which would return to an income tax rate of 33%. Considering that under IFRS the assets and liabilities for deferred income taxes are determined with the last rate of income tax enacted, which is currently 30%, if the previous 33% rate enters into force, CEMEX Colombia would have to recalculate its balances and recognize any adjustment through the equity and the income statement for the period, as appropriate.    2019 Third Quarter Results                Page 11

IFRS 16, Leases (“IFRS 16”) Beginning January 1, 2019, IFRS 16 introduced a single lessee accounting Selected information Original model which requires a lessee to recognize, for all leases, assets for the Modified right-of-use the underlying asset against a corresponding financial Income Statement Reported liability representing the net present value of estimated lease payments (Millions of dollars) Jan-Sep 3Q Jan-Sep 3Q under the contract, allowing exemptions in case of leases with a term of less than 12 months or when the underlying asset is of low value, with Revenues 848.5 276.6    848.5 276.6 a single income statement model in which the lessee recognizes Cost of sales (502.2) (162.8) (501.1) (162.5) amortization of the right-of-use asset and interest on the lease liability. Operating expenses (217.1) (72.8) (216.7) (72.6) After concluding the inventory and measurement of its leases, CEMEX Other expenses, net (0.7) 5.3 (0.7) 5.3 Latam adopted IFRS 16 using the full retrospective approach by means Financial (expense) income and others (32.3) (8.2) (34.2) (8.8) of which it determined an opening cumulative effect in its statement of Earnings before income tax 96.2 38.2 95.8 38.0 financial position as of January 1, 2018 as follows: Income tax (33.3) (9.8) (33.3) 0.8 Earnings from continuing operations 62.8 28.4 62.5 38.9 (Millions of dollars) January 1st, 2018 Assets for the Right-of-use $ 15.7 As of September 30, 2019, and December 31, 2018, assets for the right-Deferred tax assets $ 2.8 of-use amounted to $15.9 million and $14.9 million, respectively. In addition, financial liabilities related to lease contracts amounted to $23.3 Lease financial liabilities $ (23.0) million as of September 30, 2019 and $22.3 million as of December 31, 2018 and were included within “Debt and other financial liabilities”. 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 nine-month period ended September 30, 2018 to give effect to the retrospective adoption of IFRS 16, as follows:    2019 Third Quarter Results                Page 12

Methodology for translation and presentation of results Under IFRS, CLH reports its consolidated results in its functional INCOME STATEMENT Jan—Sep Third Quarter currency, which is the US Dollar, by translating the financial statements of foreign subsidiaries using the corresponding exchange rate at the (Millions of dollars) 2019 2018 2019 2018 reporting date for the balance sheet and the corresponding exchange Sales    —26.8                —9.1 rates at the end of each month for the income statement. Cost of sales and operating—(28.1) —(9.6) Other expenses, net—(0.1) — For the reader’s convenience, Colombian peso amounts for the consolidated entity are calculated by converting the US dollar amounts Interest expense, net and others—(0.3) —(0.2) using the closing COP/US$ exchange rate at the reporting date for Income (loss) before income tax—(1.6) —(0.6) balance sheet purposes, and the average COP/US$ exchange rate for the    —(0.3)                — Income tax corresponding period for income statement purposes. The exchange rates are provided below. Loss of discontinued operations—(1.3) —(0.6) Result in sale, withholding and Fx Per-country/region selected financial information of the income—(8.1) —(8.1) reclassification statement is presented before corporate charges and royalties which Net loss of discontinued operations—(9.4) —(8.7) are included under “other and intercompany eliminations.” Discontinued operations and assets held for sale Consolidated financial information When reference is made to consolidated financial information means On September 27, 2018, after receiving the corresponding the financial information of CLH together with its consolidated authorizations by local authorities, CEMEX Latam concluded the subsidiaries. disposal of its construction materials operations in Brazil to Votorantim Cimentos N/NE S.A., comprised of a fluvial cement distribution terminal Presentation of financial and operating information located in Manaus, Amazonas state and its operating license. The selling Individual information is provided for Colombia, Panama and Costa Rica. price was approximately US$31 million including working capital adjustments. CEMEX Latam’s operations in Brazil for the period from Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. January 1 to September 30, 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 period from January 1 to September 30, 2018: Exchange rates January—September January—September Third Quarter 2019 EoP 2018 EoP 2019 average 2018 average 2019 average 2018 average Colombian peso 3,462.01 2,972.18 3,267.51 2,885.80 3,395.38 2,958.43 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 583.88 585.80 592.56 572.57 577.50 577.18 Euro 0.92 0.86 0.89 0.84 0.91 0.86 Amounts provided in units of local currency per US dollar. 2019 Third Quarter Results                Page 13

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 Third Quarter Results                Page 14