Exhibit 2 - CHP 1Q20 Report

Exhibit 2

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2020
FIRST QUARTER RESULTS
Stock Listing Information
Philippine Stock Exchange
Ticker: CHP
Investor Relations
+ 632 8849 3600
E-Mail:
chp.ir@cemex.com


Operating and Financial Highlights


	January – March									First Quarter
	2020			2019			% var			2020			2019			% var
Net sales		5,630			6,237			(10	%)		5,630			6,237			(10	%)
Gross profit		2,354			2,313			2	%		2,354			2,313			2	%
as % of net sales		42	%		37	%		5pp			42	%		37	%		5pp
Operating earnings before other income, net		521			625			(17	%)		521			625			(17	%)
as % of net sales		9	%		10	%		(1pp	)		9	%		10	%		(1pp	)
Controlling Interest Net Income		89			169			(47	%)		89			169			(47	%)
Operating EBITDA		1,082			1,096			(1	%)		1,082			1,096			(1	%)
as % of net sales		19.2	%		17.6	%		1.7pp			19.2	%		17.6	%		1.7pp
Free cash flow after maintenance capital expenditures		312			848			(63	%)		312			848			(63	%)
Free cash flow		(1,140	)		783			N/A			(1,140	)		783			N/A
Net debt¹		7,147			17,396			(59	%)		7,147			17,396			(59	%)
Total debt¹		13,481			21,281			(37	%)		13,481			21,281			(37	%)
Earnings per share²		0.01			0.03			(67	%)		0.01			0.03			(67	%)

In millions of Philippine Pesos, except percentages and earnings per share

¹	U.S. dollar debt converted using end-of-period exchange rate. See Debt Information on page 4 and Exchange Rates on page 8 for more detail.

²	In Philippine Pesos

Net sales in the first quarter of 2020 decreased by 10% compared with the first quarter of 2019 due to lower volumes and lower prices.

Cost of sales was at 58% of sales during the first quarter of 2020 compared with 63% in the same period of 2019, a decrease of 5 pp on a year-over-year basis.

Costs in the same period in 2019 costs were affected by scheduled kiln maintenance of Solid Cement Plant, higher sales from cement imports, and consumption of purchased clinker in cement production, carried over as a result of the Naga landslide.

Fuel costs was at 24% of cost of sales, 6 pp higher on a year-over-year basis. Power costs remained flat at 18% of cost of sales. Absolute power costs decreased due to lower electricity prices and a rebate from the wholesale electricity spot market.

Operating expenses, as a percentage of sales, during the first quarter increased by 5 pp compared with the same period in 2019.

Distribution expenses was at 19% of sales during the first quarter of 2020, an increase of 4 pp year-over-year. Costs in the same period in 2019 considers higher sales sourced from cement imports, an effect of the Naga landslide incident.

Selling and administrative expenses was at 14% of sales during the first quarter of 2020, 2 pp higher year-over-year, due to lower sales

Operating EBITDA in the first quarter decreased by 1% year-over-year as March 2020 was impacted by the effects of COVID-19 quarantine measures.

Operating EBITDA margin in the first quarter of 2020 was at 19.2%, 1.7 pp higher compared to the same period in 2019.

Controlling interest net income in the first quarter decreased by 47% year-over-year due to lower operating earnings mostly as a result of COVID-19 community quarantine measures beginning mid-March 2020.

Total debt at the end of March 2020 was at PHP 13,481 million, of which PHP 11,392 million pertained to debt owed to BDO Unibank, Inc.


2020 First Quarter Results		Page 2


Operating Results


Domestic Gray Cement	January - March			First Quarter			First Quarter 2020
	2020 vs. 2019			2020 vs. 2019			vs. Fourth Quarter 2019
Volume		(4	%)		(4	%)		9	%
Price in PHP		(6	%)		(6	%)		(3	%)

Our domestic cement volumes decreased by 4% year-over-year during the first quarter of 2020. An 8% increase in volumes during the first two months of the year was offset by the effects of the Enhanced Community Quarantine in Luzon, and other quarantine measures around the country during the second half of March 2020.

Our domestic cement prices were 6% lower year-over-year during the first quarter of 2020, reflecting declines during the second half of 2019 due to competitive dynamics.


2020 First Quarter Results		Page 3


Operating EBITDA, Free Cash Flow and Debt Information

Operating EBITDA and Free Cash Flow


	January - March									First Quarter
	2020			2019			% var			2020			2019			% var
Operating earnings before other expenses, net		521			625			(17	%)		521			625			(17	%)
+ Depreciation and operating amortization		562			471						562			471

Operating EBITDA		1,082			1,096			(1	%)		1,082			1,096			(1	%)
- Net financial expenses		280			355						280			355
- Maintenance capital expenditures		49			90						49			90
- Change in working capital		332			(283	)					332			(283	)
- Income taxes paid		122			92						122			92
- Other cash items (net)		(12	)		(6	)					(12	)		(6	)

Free cash flow after maintenance capital expenditures		312			848			(63	%)		312			848			(63	%)
- Strategic capital expenditures		1,452			65						1,452			65

Free cash flow		(1,140	)		783			N/A			(1,140	)		783			N/A

In millions of Philippine Pesos

Debt Information


				First Quarter						Fourth Quarter
	2020			2019			% var			2019
Total debt⁽¹⁾⁽²⁾		13,481			21,281			(37	%)		20,063
Short term		5	%		8	%					9	%
Long term		95	%		92	%					91	%

Cash and cash equivalents		6,334			3,885			63	%		1,399

Net debt		7,147			17,396			(59	%)		18,664

Leverage Ratio⁽³⁾		3.20									3.47
Coverage Ratio⁽³⁾		4.08									3.73


	First Quarter
	2020			2019
Currency denomination
U.S. dollar		4	%		26	%
Philippine peso		96	%		74	%

Interest rate
Fixed		56	%		41	%
Variable		44	%		59	%

In millions of Philippine Pesos, except percentages

⁽¹⁾	U.S. dollar debt converted using end-of-period exchange rate. See Exchange Rates on page 8 for more detail.

⁽²⁾	Includes leases, in accordance with Philippine Financial Reporting Standards (PFRS).

⁽³⁾	Based on BDO Loan Facility financial covenants which we are required to comply commencing in June 2020.


2020 First Quarter Results		Page 4


Financial Results

Income Statement & Balance Sheet Information

CEMEX Holdings Philippines, Inc.

(Thousands of Philippine Pesos in nominal terms, except per share amounts)


	January – March									First Quarter
INCOME STATEMENT	2020			2019			% var			2020			2019			% var
Net sales		5,629,916			6,237,427			(10	%)		5,629,916			6,237,427			(10	%)
Cost of sales		(3,275,817	)		(3,924,246	)		17	%		(3,275,817	)		(3,924,246	)		17	%

Gross profit		2,354,099			2,313,181			2	%		2,354,099			2,313,181			2	%
Selling and Administrative expenses		(767,455	)		(735,596	)		(4	%)		(767,455	)		(735,596	)		(4	%)
Distribution expenses		(1,065,804	)		(952,950	)		(12	%)		(1,065,804	)		(952,950	)		(12	%)

Operating earnings before other expenses, net		520,840			624,635			(17	%)		520,840			624,635			(17	%)
Other income (expenses), net		12,094			6,392			89	%		12,094			6,392			89	%

Operating earnings (loss)		532,934			631,027			(16	%)		532,934			631,027			(16	%)
Financial expenses, net		(279,540	)		(355,236	)		21	%		(279,540	)		(355,236	)		21	%
Foreign exchange gain (loss), net		(66,411	)		(17,276	)		(284	%)		(66,411	)		(17,276	)		(284	%)

Net income (loss) before income taxes		186,983			258,515			(28	%)		186,983			258,515			(28	%)
Income tax benefit (expenses)		(97,861	)		(89,876	)		(9	%)		(97,861	)		(89,876	)		(9	%)

Consolidated net income (loss)		89,122			168,639			(47	%)		89,122			168,639			(47	%)
Non-controlling interest net income (loss)		8			7			14	%		8			7			14	%

Controlling Interest net income (loss)		89,131			168,646			(47	%)		89,131			168,646			(47	%)

Operating EBITDA		1,082,436			1,095,935			(1	%)		1,082,436			1,095,935			(1	%)
Earnings per share		0.01			0.03			(67	%)		0.01			0.03			(67	%)


	as of March 31							as of December 31
BALANCE SHEET	2020		2019		% Var			2019		% Var
Total Assets		64,327,986		59,890,672		7	%		58,806,177		9	%
Cash and Temporary Investments		6,334,330		3,885,268		63	%		1,399,180		353	%
Derivative Asset		0		17,020		(100	%)		0
Trade Accounts Receivables		1,112,654		1,082,287		3	%		892,951		25	%
Other Receivables		53,497		90,123		(41	%)		92,993		(42	%)
Insurance Claims and Premium Receivables		92,662		638,466		(85	%)		445,535		(79	%)
Inventories		2,995,714		3,447,227		(13	%)		3,013,444		(1	%)
Assets Held for Sale		0		0					0
Other Current Assets		1,515,137		1,551,919		(2	%)		1,672,392		(9	%)
Current Assets		12,103,994		10,712,310		13	%		7,516,495		61	%
Fixed Assets		20,947,637		17,472,779		20	%		19,937,723		5	%
Investments in an Associate and Other Investments		14,097		14,097		0	%		14,097		0	%
Other Assets and Noncurrent Accounts Receivables		882,515		974,819		(9	%)		837,151		5	%
Advances to Contractors		1,458,603		2,069,601		(30	%)		1,606,397		(9	%)
Deferred Income Taxes - net		1,061,446		787,372		35	%		1,034,620		3	%
Goodwill		27,859,694		27,859,694		0	%		27,859,694		0	%
Other Assets		31,276,355		31,705,583		(1	%)		31,351,959		(0	%)

Total Liabilities		21,939,210		30,985,907		(29	%)		29,140,690		(25	%)
Current Liabilities		8,383,231		10,651,666		(21	%)		10,136,812		(17	%)
Long-Term Liabilities		11,152,261		17,657,643		(37	%)		16,549,640		(33	%)
Deferred Tax Liability		1,624		129,657		(99	%)		1,587		2	%
Other Liabilities		2,402,094		2,546,941		(6	%)		2,452,651		(2	%)

Consolidated Stockholders’ Equity		42,388,776		28,904,765		47	%		29,665,487		43	%
Non-controlling Interest		162		186		(13	%)		170		(5	%)
Stockholders’ Equity Attributable to Controlling Interest		42,388,614		28,904,579		47	%		29,665,317		43	%


2020 First Quarter Results		Page 5


Financial Results

Income Statement & Balance Sheet Information

CEMEX Holdings Philippines, Inc.

(Thousands of U.S. Dollars, except per share amounts)


	January - March									First Quarter
INCOME STATEMENT	2020			2019			% var			2020			2019			% var
Net sales		110,767			119,705			(7	%)		110,767			119,705			(7	%)
Cost of sales		(64,451	)		(75,312	)		14	%		(64,451	)		(75,312	)		14	%

Gross profit		46,316			44,393			4	%		46,316			44,393			4	%
Selling and Administrative expenses		(15,099	)		(14,118	)		(7	%)		(15,099	)		(14,118	)		(7	%)
Distribution expenses		(20,969	)		(18,288	)		(15	%)		(20,969	)		(18,288	)		(15	%)

Operating earnings before other expenses, net		10,248			11,987			(15	%)		10,248			11,987			(15	%)
Other income (expenses), net		238			123			93	%		238			123			93	%

Operating earnings (loss)		10,486			12,110			(13	%)		10,486			12,110			(13	%)
Financial expenses, net		(5,500	)		(6,817	)		19	%		(5,500	)		(6,817	)		19	%
Foreign exchange gain (loss), net		(1,307	)		(332	)		(294	%)		(1,307	)		(332	)		(294	%)

Net income (loss) before income taxes		3,679			4,961			(26	%)		3,679			4,961			(26	%)
Income tax benefit (expenses)		(1,925	)		(1,725	)		(12	%)		(1,925	)		(1,725	)		(12	%)

Consolidated net income (loss)		1,754			3,236			(46	%)		1,754			3,236			(46	%)
Non-controlling interest net income (loss)		0			0						0			0

Controlling Interest net income (loss)		1,754			3,236			(46	%)		1,754			3,236			(46	%)

Operating EBITDA		21,297			21,033			1	%		21,297			21,033			1	%


	as of March 31							as of December 31
BALANCE SHEET	2020		2019		% Var			2019		% Var
Total Assets		1,269,296		1,140,775		11	%		1,161,259		9	%
Cash and Temporary Investments		124,987		74,005		69	%		27,630		352	%
Derivative Asset		0		324		(100	%)		0
Trade Accounts Receivables		21,954		20,615		6	%		17,633		25	%
Other Receivables		1,056		1,717		(38	%)		1,836		(42	%)
Insurance Claims and Premium Receivables		1,828		12,161		(85	%)		8,798		(79	%)
Inventories		59,110		65,661		(10	%)		59,507		(1	%)
Assets Held for Sale		0		0					0
Other Current Assets		29,896		29,560		1	%		33,025		(9	%)
Current Assets		238,831		204,043		17	%		148,429		61	%
Fixed Assets		413,331		332,815		24	%		393,715		5	%
Investments in an Associate and Other Investments		278		269		3	%		278		0	%
Other Assets and Noncurrent Accounts Receivables		17,413		18,568		(6	%)		16,532		5	%
Advances to Contractors		28,781		39,421		(27	%)		31,722		(9	%)
Deferred Income Taxes - net		20,944		14,998		40	%		20,431		3	%
Goodwill		549,718		530,661		4	%		550,152		(0	%)
Other Assets		617,134		603,917		2	%		619,115		(0	%)

Total Liabilities		432,896		590,208		(27	%)		575,448		(25	%)
Current Liabilities		165,414		202,889		(18	%)		200,174		(17	%)
Long-Term Liabilities		220,053		336,336		(35	%)		326,810		(33	%)
Deferred Tax Liability		32		2,470		(99	%)		31		3	%
Other Liabilities		47,397		48,513		(2	%)		48,433		(2	%)

Consolidated Stockholders’ Equity		836,400		550,567		52	%		585,811		43	%
Non-controlling Interest		3		4		(25	%)		3		0	%
Stockholders’ Equity Attributable to Controlling Interest		836,397		550,563		52	%		585,808		43	%


2020 First Quarter Results		Page 6


Other Information

Newly issued PFRS effective in 2019

PFRS 16, Leases (“PFRS 16”)

In summary, beginning January 1, 2019, PFRS 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 of 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 Holdings Philippines, Inc. and Subsidiaries adopted PFRS 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:


(Thousands of Philippine Pesos)	As of January 1, 2017
Assets for the right-of-use		2,187,292
Deferred income tax assets		33,509
Deferred income tax liability		(3,053	)
Lease liabilities		2,309,165

Retained earnings¹		(85,311	)

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.

As of March 31, 2020 and 2019, assets for the right-of-use amounted to PHP 1,867 million and PHP 2,039 million, respectively. In addition, financial liabilities related to lease contracts amounted to PHP 2,089 million as of March 31, 2020 and PHP 2,251 million as of March 31, 2019. These amounts of financial liabilities as of March 31, 2020 and 2019 are included in the “Debt Information” section appearing on page 4.


2020 First Quarter Results		Page 7


Definitions of Terms and Disclosures

Methodology for translation, consolidation, and presentation of results

CEMEX Holdings Philippines, Inc. (“CHP”) reports its consolidated financial statements under Philippine Financial Reporting Standards (“PFRS”). When reference is made in 2020 and 2019 to consolidated financial statements, it means CHP financial information together with its subsidiaries.

For the purpose of presenting figures in U.S. dollars, the consolidated balance sheet as of March 31, 2020 has been converted at the end of period exchange rate of 50.68 Philippine pesos per US dollar while the consolidated income statement for the three-month period ended March 31, 2020 has been converted at the January to March 2020 average exchange rate of 50.83 Philippine pesos per US dollar.

Definition of terms

PHP refers to Philippine Pesos.

pp equals percentage points.

Prices all references to pricing initiatives, price increases or decreases, refer to our prices for our products.

Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization.

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 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.

Strategic capital expenditures investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.

Change in Working capital in the Free cash flow statements only include trade receivables, trade payables, receivables and payables from and to related parties, other current receivables, inventories, other current assets, and other accounts payable and accrued expense.

Net debt equals total debt minus cash and cash equivalents.

Exchange Rates

January - March

First Quarter

January - March

2020
average

2019
average

2020
average

2019
average

2020
End of period

2019
End of period

Philippine peso

50.83

52.11

50.83

52.11

50.68

52.50

Amounts provided in units of local currency per US dollar


2020 First Quarter Results		Page 8