EX-99.2 3 d949699dex992.htm EXHIBIT 2 - 2Q2020 RESULTS

Exhibit 2

2020 SECOND QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutierrez +57 (1) 603-9051 E-mail: pabloantonio.gutierrez@cemex.com

OPERATING AND FINANCIAL HIGHLIGHTS |  |

|  | January – June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |  |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |
Consolidated cement volume |  |  | 2,444 |  |  |  | 3,245 |  |  |  | (25 | %) |  |  |  |  |  |  | 1,019 |  |  |  | 1,620 |  |  |  | (37 | %) |  |  |  |
Consolidated domestic gray cement volume |  |  | 2,261 |  |  |  | 2,912 |  |  |  | (22 | %) |  |  |  |  |  |  | 974 |  |  |  | 1,459 |  |  |  | (33 | %) |  |  |  |
Consolidated ready-mix volume |  |  | 715 |  |  |  | 1,230 |  |  |  | (42 | %) |  |  |  |  |  |  | 235 |  |  |  | 588 |  |  |  | (60 | %) |  |  |  |
Consolidated aggregates volume |  |  | 1,496 |  |  |  | 2,951 |  |  |  | (49 | %) |  |  |  |  |  |  | 494 |  |  |  | 1,462 |  |  |  | (66 | %) |  |  |  |
Net sales |  |  | 362 |  |  |  | 507 |  |  |  | (29 | %) |  |  | (23 | %) |  |  | 148 |  |  |  | 249 |  |  |  | (41 | %) |  |  | (36 | %)
Gross profit |  |  | 141 |  |  |  | 194 |  |  |  | (27 | %) |  |  | (22 | %) |  |  | 54 |  |  |  | 91 |  |  |  | (40 | %) |  |  | (36 | %)
as % of net sales |  |  | 39.0 | % |  |  | 38.3 | % |  |  | 0.7pp |  |  |  |  |  |  |  | 36.6 | % |  |  | 36.4 | % |  |  | 0.2pp |  |  |  |  |
Operating earnings (loss) before other expenses, net |  |  | 37 |  |  |  | 60 |  |  |  | (37 | %) |  |  | (34 | %) |  |  | 11 |  |  |  | 26 |  |  |  | (58 | %) |  |  | (54 | %)
as % of net sales |  |  | 10.3 | % |  |  | 11.8 | % |  |  | (1.5pp | ) |  |  |  |  |  |  | 7.3 | % |  |  | 10.3 | % |  |  | (3.0pp | ) |  |  |  |
Controlling interest net income (loss) |  |  | -20 |  |  |  | 11 |  |  |  | N/A |  |  |  |  |  |  |  | 11 |  |  |  | -4 |  |  |  | N/A |  |  |  |  |
Operating EBITDA |  |  | 75 |  |  |  | 100 |  |  |  | (25 | %) |  |  | (21 | %) |  |  | 29 |  |  |  | 46 |  |  |  | (36 | %) |  |  | (32 | %)
as % of net sales |  |  | 20.7 | % |  |  | 19.8 | % |  |  | 0.9pp |  |  |  |  |  |  |  | 19.7 | % |  |  | 18.3 | % |  |  | 1.4pp |  |  |  |  |
Free cash flow after maintenance capital expenditures |  |  | 28 |  |  |  | 41 |  |  |  | (32 | %) |  |  |  |  |  |  | 25 |  |  |  | 23 |  |  |  | 8 | % |  |  |  |
Free cash flow |  |  | 27 |  |  |  | 40 |  |  |  | (34 | %) |  |  |  |  |  |  | 25 |  |  |  | 21 |  |  |  | 19 | % |  |  |  |
Net debt |  |  | 707 |  |  |  | 805 |  |  |  | (12 | %) |  |  |  |  |  |  | 707 |  |  |  | 805 |  |  |  | (12 | %) |  |  |  |
Total debt |  |  | 785 |  |  |  | 834 |  |  |  | (6 | %) |  |  |  |  |  |  | 785 |  |  |  | 834 |  |  |  | (6 | %) |  |  |  |
Earnings (loss) of continued operations per share |  |  | (0.04 | ) |  |  | 0.02 |  |  |  | N/A |  |  |  |  |  |  |  | 0.02 |  |  |  | (0.01 | ) |  |  | N/A |  |  |  |  |
Shares outstanding at end of period |  |  | 557 |  |  |  | 557 |  |  |  | 0 | % |  |  |  |  |  |  | 557 |  |  |  | 557 |  |  |  | 0 | % |  |  |  |
Employees |  |  | 4,156 |  |  |  | 4,128 |  |  |  | 1 | % |  |  |  |  |  |  | 4,156 |  |  |  | 4,128 |  |  |  | 1 | % |  |  |  |

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.

C on s ol i d ated n et sa l es during the second quarter of 2020 declined by 41% in U.S.-dollar terms, or by 36% in local-currency terms, compared with those of the second quarter of 2019.

C o st o f sa l es as a percentage of net sales during the second quarter decreased by 0.2pp from 63.6% to 63.4%, on a year-over-year basis.

O p e r at in g e xp e n s e s as a percentage of net sales during the quarter increased by 3.2pp from 26.1% to 29.3%, compared with those of 2019.

O p e r at in g E BIT D A during the second quarter of 2020 declined in U.S.- dollar and local-currency terms by 36% and 32%, respectively, compared with that of the second quarter of 2019.

O p e r at in g E BIT D A ma rg i n during the second quarter of 2020 increased by 1.4pp, compared with that of the second quarter of 2019.

C on t r ol l in g in te r est n et inco me during the second quarter was US$11 million, compared with a loss of US$4 million during the same quarter of 2019.

T o tal de b t declined by 6% during the quarter on a year-over-year basis, reaching US$785 million.

2020 Second Quarter Results |  | Page 2

OPERATING RESULTS |  |

Colombia

|  | January – June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |  |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |
Net sales |  |  | 169 |  |  |  | 250 |  |  |  | (32 | %) |  |  | (22 | %) |  |  | 67 |  |  |  | 122 |  |  |  | (45 | %) |  |  | (36 | %)
Operating EBITDA |  |  | 28 |  |  |  | 39 |  |  |  | (28 | %) |  |  | (18 | %) |  |  | 12 |  |  |  | 17 |  |  |  | (32 | %) |  |  | (23 | %)
Operating EBITDA margin |  |  | 16.7 | % |  |  | 15.7 | % |  |  | 1.0pp |  |  |  |  |  |  |  | 17.4 | % |  |  | 14.1 | % |  |  | 3.3pp |  |  |  |  |

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |
Volume |  |  | (27 | %) |  |  | (40 | %) |  |  | (40 | %) |  |  | (57 | %) |  |  | (42 | %) |  |  | (62 | %)
Price (USD) |  |  | (5 | %) |  |  | (6 | %) |  |  | (10 | %) |  |  | (10 | %) |  |  | (10 | %) |  |  | (10 | %)
Price (local currency) |  |  | 9 | % |  |  | 9 | % |  |  | 3 | % |  |  | 3 | % |  |  | 3 | % |  |  | 4 | %

Year-over-year percentage variation.

In Colombia, construction activity during the quarter was impacted by the COVID-19 containment measures. During this period, our cement volumes declined by 40%. However, our volumes recovered during June as restrictions eased, declining a high-single digit on a year-over-year basis and improving significantly versus May. During June, we observed increased activity in 4G projects and in the self-construction sector.

Despite the volume decline, our cement prices during June reached the highest levels since September 2016. During the quarter, our cement prices improved by 9% year-over-year and by 1% sequentially, in local-currency terms.

Panama

|  | January – June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |  |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |
Net sales |  |  | 41 |  |  |  | 98 |  |  |  | (58 | %) |  |  | (58 | %) |  |  | 7 |  |  |  | 48 |  |  |  | (86 | %) |  |  | (86 | %)
Operating EBITDA |  |  | 7 |  |  |  | 24 |  |  |  | (72 | %) |  |  | (72 | %) |  |  | -3 |  |  |  | 11 |  |  |  | N/A |  |  |  | N/A |
Operating EBITDA margin |  |  | 16.8 | % |  |  | 24.9 | % |  |  | (8.1pp | ) |  |  |  |  |  |  | -51.4 | % |  |  | 22.1 | % |  |  | (73.5pp | ) |  |  |  |

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |
Volume |  |  | (59 | %) |  |  | (88 | %) |  |  | (68 | %) |  |  | (99 | %) |  |  | (63 | %) |  |  | (96 | %)
Price (USD) |  |  | (6 | %) |  |  | (5 | %) |  |  | (6 | %) |  |  | 22 | % |  |  | (5 | %) |  |  | (6 | %)
Price (local currency) |  |  | (6 | %) |  |  | (5 | %) |  |  | (6 | %) |  |  | 22 | % |  |  | (5 | %) |  |  | (6 | %)

Year-over-year percentage variation.

Panama is the country in the region with the most severe restrictions imposed to fight the COVID-19 crisis. Following government regulations, the construction industry and its supply chain were fully closed during April and May. Then, in early June, certain infrastructure projects and hardware stores could resume activities although with restrictions.

2020 Second Quarter Results |  | Page 3

OPERATING RESULTS |  |

Costa Rica

|  | January – June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |  |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |
Net sales |  |  | 46 |  |  |  | 55 |  |  |  | (17 | %) |  |  | (20 | %) |  |  | 20 |  |  |  | 27 |  |  |  | (26 | %) |  |  | (28 | %)
Operating EBITDA |  |  | 14 |  |  |  | 19 |  |  |  | (24 | %) |  |  | (26 | %) |  |  | 7 |  |  |  | 9 |  |  |  | (27 | %) |  |  | (29 | %)
Operating EBITDA margin |  |  | 31.4 | % |  |  | 34.1 | % |  |  | (2.7pp | ) |  |  |  |  |  |  | 32.1 | % |  |  | 32.5 | % |  |  | (0.4pp | ) |  |  |  |

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |
Volume |  |  | (10 | %) |  |  | (15 | %) |  |  | (23 | %) |  |  | (35 | %) |  |  | (66 | %) |  |  | (60 | %)
Price (USD) |  |  | (4 | %) |  |  | (4 | %) |  |  | (7 | %) |  |  | (9 | %) |  |  | 90 | % |  |  | 39 | %
Price (local currency) |  |  | (8 | %) |  |  | (7 | %) |  |  | (11 | %) |  |  | (11 | %) |  |  | 82 | % |  |  | 35 | %

Year-over-year percentage variation.

In Costa Rica, our cement volumes during the second quarter declined by 15%, in line with the industry. Our volumes declined by 22% during April, then recovered during May and June. During the quarter, the impact of COVID-19 containment measures had a relatively mild impact on industry cement volumes, supported by the resilience of the self-construction sector.

Regarding cement pricing, our quarterly prices in local-currency terms improved by 1% sequentially. The increased price on a sequential basis partially reflects our price increase of around 4% for bagged cement, that we made effective on June 22.

Rest of CLH

|  | January – June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |  |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |
Net sales |  |  | 114 |  |  |  | 113 |  |  |  | 0 | % |  |  | 2 | % |  |  | 56 |  |  |  | 57 |  |  |  | (0 | %) |  |  | 1 | %
Operating EBITDA |  |  | 37 |  |  |  | 33 |  |  |  | 15 | % |  |  | 17 | % |  |  | 20 |  |  |  | 15 |  |  |  | 29 | % |  |  | 31 | %
Operating EBITDA margin |  |  | 33.0 | % |  |  | 28.8 | % |  |  | 4.2pp |  |  |  |  |  |  |  | 35.5 | % |  |  | 27.3 | % |  |  | 8.2pp |  |  |  |  |

In millions of US dollars, except percentages.

|  | Domestic gray cement |  |  | Ready-Mix |  |  | Aggregates |
|  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |  |  | January - June |  |  | Second Quarter |
Volume |  |  | 5 | % |  |  | 5 | % |  |  | (10 | %) |  |  | (3 | %) |  |  | (26 | %) |  |  | (38 | %)
Price (USD) |  |  | (4 | %) |  |  | (4 | %) |  |  | 2 | % |  |  | 0 | % |  |  | 13 | % |  |  | 4 | %
Price (local currency) |  |  | (2 | %) |  |  | (2 | %) |  |  | 3 | % |  |  | 2 | % |  |  | 18 | % |  |  | 8 | %

Year-over-year percentage variation.

In Guatemala, we estimate that industry volumes declined a low- to mid-single digit during 2Q20, affected by lower formal construction activity in Guatemala City. However, our cement volumes improved during the second quarter due to our relatively low exposure to the formal sector, and to increased activity in our main markets.

In Nicaragua, we are encouraged by the improvement in construction activity observed during the quarter and the first half of the year. Our cement volumes increased by 9% during the quarter, driven by a mild reactivation of the self-construction sector, as well as by government-sponsored projects, such as a hospital, highways, and a social-housing complex.

2020 Second Quarter Results |  | Page 4

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION |  |

Operating EBITDA and free cash flow

|  | January - June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | 2020 |  |  | 2019 |  |  | % var |
Operating earnings before other expenses, net |  |  | 37 |  |  |  | 60 |  |  |  | (37 | %) |  |  | 11 |  |  |  | 26 |  |  |  | (58 | %)
+ Depreciation and operating amortization |  |  | 38 |  |  |  | 41 |  |  |  |  |  |  |  | 18 |  |  |  | 20 |  |  |  |  |
Operating EBITDA |  |  | 75 |  |  |  | 100 |  |  |  | (25 | %) |  |  | 29 |  |  |  | 46 |  |  |  | (36 | %)
- Net financial expense |  |  | 26 |  |  |  | 27 |  |  |  |  |  |  |  | 13 |  |  |  | 13 |  |  |  |  |
- Capital expenditures for maintenance |  |  | 4 |  |  |  | 17 |  |  |  |  |  |  |  | 2 |  |  |  | 12 |  |  |  |  |
- Change in working Capital |  |  | 19 |  |  |  | (4 | ) |  |  |  |  |  |  | (2 | ) |  |  | (10 | ) |  |  |  |
- Taxes paid |  |  | (4 | ) |  |  | 24 |  |  |  |  |  |  |  | (11 | ) |  |  | 10 |  |  |  |  |
- Other cash items (Net) |  |  | 2 |  |  |  | (3 | ) |  |  |  |  |  |  | 1 |  |  |  | (3 | ) |  |  |  |
Free cash flow after maintenance capital exp |  |  | 28 |  |  |  | 41 |  |  |  | (32 | %) |  |  | 25 |  |  |  | 23 |  |  |  | 8 | %
- Strategic Capital expenditures |  |  | 1 |  |  |  | 1 |  |  |  |  |  |  |  | 0 |  |  |  | 1 |  |  |  |  |
Free cash flow |  |  | 27 |  |  |  | 40 |  |  |  | (34 | %) |  |  | 25 |  |  |  | 21 |  |  |  | 19 | %

In millions of US dollars, except percentages.

Information on Debt

|  |  |  |  | Second Quarter |  |  |  |  |  | First Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | 2020 |
Total debt 1,2 |  |  | 785 |  |  |  | 834 |  |  |  |  |  |  |  | 766 |
Short term |  |  | 6 | % |  |  | 17 | % |  |  |  |  |  |  | 1 | %
Long term |  |  | 94 | % |  |  | 83 | % |  |  |  |  |  |  | 99 | %
Cash and cash equivalents |  |  | 78 |  |  |  | 28 |  |  |  | 180 | % |  |  | 32 |
Net debt |  |  | 707 |  |  |  | 805 |  |  |  | (12 | %) |  |  | 734 |
Net debt / EBITDA |  |  | 4.1x |  |  |  | 3.6x |  |  |  |  |  |  |  | 3.9x |

|  | Second Quarter |
|  | 2020 |  |  | 2019 |
Currency denomination |  |  |  |  |  |  |  |
U.S. dollar |  |  | 96 | % |  |  | 99 | %
Colombian peso |  |  | 4 | % |  |  | 1 | %
Interest rate |  |  |  |  |  |  |  |
Fixed |  |  | 61 | % |  |  | 58 | %
Variable |  |  | 39 | % |  |  | 42 | %

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.

2020 Second 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 – June |  |  | Second Quarter |
INCOME STATEMENT |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |  |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |
Net sales |  |  | 362,353 |  |  |  | 507,182 |  |  |  | (29 | %) |  |  | (23 | %) |  |  | 148,128 |  |  |  | 248,958 |  |  |  | (41 | %) |  |  | (36 | %)
Cost of sales |  |  | (221,013 | ) |  |  | (312,906 | ) |  |  | 29 | % |  |  |  |  |  |  | (93,847 | ) |  |  | (158,243 | ) |  |  | 41 | % |  |  |  |
Gross profit |  |  | 141,340 |  |  |  | 194,276 |  |  |  | (27 | %) |  |  | (22 | %) |  |  | 54,281 |  |  |  | 90,715 |  |  |  | (40 | %) |  |  | (36 | %)
Operating expenses |  |  | (103,946 | ) |  |  | (134,608 | ) |  |  | 23 | % |  |  |  |  |  |  | (43,418 | ) |  |  | (65,011 | ) |  |  | 33 | % |  |  |  |
Operating earnings (loss) before other expenses, net |  |  | 37,394 |  |  |  | 59,668 |  |  |  | (37 | %) |  |  | (34 | %) |  |  | 10,863 |  |  |  | 25,704 |  |  |  | (58 | %) |  |  | (54 | %)
Other expenses, net |  |  | (4,745 | ) |  |  | (8,093 | ) |  |  | 41 | % |  |  |  |  |  |  | (3,034 | ) |  |  | (8,156 | ) |  |  | 63 | % |  |  |  |
Operating earnings (loss) |  |  | 32,649 |  |  |  | 51,575 |  |  |  | (37 | %) |  |  |  |  |  |  | 7,829 |  |  |  | 17,548 |  |  |  | (55 | %) |  |  |  |
Financial expenses |  |  | (26,474 | ) |  |  | (27,007 | ) |  |  | 2 | % |  |  |  |  |  |  | (13,194 | ) |  |  | (13,151 | ) |  |  | (0 | %) |  |  |  |
Other income (expenses), net |  |  | (21,558 | ) |  |  | (5,887 | ) |  |  | (266 | %) |  |  |  |  |  |  | 17,160 |  |  |  | (8,659 | ) |  |  | n/a |  |  |  |  |
Net income (loss) before income taxes |  |  | (15,383 | ) |  |  | 18,681 |  |  |  | n/a |  |  |  |  |  |  |  | 11,795 |  |  |  | (4,262 | ) |  |  | n/a |  |  |  |  |
Income tax |  |  | (4,493 | ) |  |  | (7,538 | ) |  |  | 40 | % |  |  |  |  |  |  | (1,184 | ) |  |  | (235 | ) |  |  | (405 | %) |  |  |  |
Consolidated net income (loss) |  |  | (19,876 | ) |  |  | 11,143 |  |  |  | n/a |  |  |  |  |  |  |  | 10,611 |  |  |  | (4,497 | ) |  |  | n/a |  |  |  |  |
Non-controlling interest net income |  |  | 86 |  |  |  | (9 | ) |  |  | n/a |  |  |  |  |  |  |  | 17 |  |  |  | 30 |  |  |  | (43 | %) |  |  |  |
Controlling Interest Net Income (loss) |  |  | (19,790 | ) |  |  | 11,134 |  |  |  | n/a |  |  |  |  |  |  |  | 10,628 |  |  |  | (4,467 | ) |  |  | n/a |  |  |  |  |
Operating EBITDA |  |  | 75,054 |  |  |  | 100,176 |  |  |  | (25 | %) |  |  | (21 | %) |  |  | 29,252 |  |  |  | 45,538 |  |  |  | (36 | %) |  |  | (32 | %)
Earnings (loss) of continued operations per share |  |  | (0.04 | ) |  |  | 0.02 |  |  |  | n/a |  |  |  |  |  |  |  | 0.02 |  |  |  | (0.01 | ) |  |  | n/a |  |  |  |  |

|  | as of June 30 |
BALANCE SHEET |  | 2020 |  |  | 2019 |  |  | % var |
Total Assets |  |  | 2,861,981 |  |  |  | 3,033,689 |  |  |  | (6 | %)
Cash and Temporary Investments |  |  | 78,360 |  |  |  | 28,300 |  |  |  | 177 | %
Trade Accounts Receivables |  |  | 61,748 |  |  |  | 82,911 |  |  |  | (26 | %)
Other Receivables |  |  | 56,850 |  |  |  | 54,190 |  |  |  | 5 | %
Inventories |  |  | 74,793 |  |  |  | 80,023 |  |  |  | (7 | %)
Other Current Assets |  |  | 24,510 |  |  |  | 27,566 |  |  |  | (11 | %)
Current Assets |  |  | 296,261 |  |  |  | 272,990 |  |  |  | 9 | %
Fixed Assets |  |  | 1,024,614 |  |  |  | 1,170,711 |  |  |  | (12 | %)
Other Assets |  |  | 1,541,106 |  |  |  | 1,589,988 |  |  |  | (3 | %)
Total Liabilities |  |  | 1,390,363 |  |  |  | 1,479,606 |  |  |  | (6 | %)
Current Liabilities |  |  | 254,823 |  |  |  | 403,749 |  |  |  | (37 | %)
Long-Term Liabilities |  |  | 1,071,086 |  |  |  | 1,057,916 |  |  |  | 1 | %
Other Liabilities |  |  | 64,454 |  |  |  | 17,941 |  |  |  | 259 | %
Consolidated Stockholders’ Equity |  |  | 1,471,618 |  |  |  | 1,554,083 |  |  |  | (5 | %)
Non-controlling Interest |  |  | 4,924 |  |  |  | 5,274 |  |  |  | (7 | %)
Stockholders’ Equity Attributable to Controlling Interest |  |  | 1,466,694 |  |  |  | 1,548,809 |  |  |  | (5 | %)

2020 Second 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 - June |  |  | Second Quarter |
INCOME STATEMENT |  | 2020 |  |  | 2019 |  |  | % var |  |  | 2020 |  |  | 2019 |  |  | % var |
Net sales |  |  | 1,357,444 |  |  |  | 1,624,798 |  |  |  | (16 | %) |  |  | 565,900 |  |  |  | 814,191 |  |  |  | (30 | %)
Cost of sales |  |  | (827,958 | ) |  |  | (1,002,418 | ) |  |  | 17 | % |  |  | (358,527 | ) |  |  | (517,518 | ) |  |  | 31 | %
Gross profit |  |  | 529,486 |  |  |  | 622,380 |  |  |  | (15 | %) |  |  | 207,373 |  |  |  | 296,673 |  |  |  | (30 | %)
Operating expenses |  |  | (389,400 | ) |  |  | (431,229 | ) |  |  | 10 | % |  |  | (165,874 | ) |  |  | (212,610 | ) |  |  | 22 | %
Operating earnings (loss) before other expenses, net |  |  | 140,086 |  |  |  | 191,151 |  |  |  | (27 | %) |  |  | 41,499 |  |  |  | 84,063 |  |  |  | (51 | %)
Other expenses, net |  |  | (17,775 | ) |  |  | (25,926 | ) |  |  | 31 | % |  |  | (11,590 | ) |  |  | (26,671 | ) |  |  | 57 | %
Operating earnings (loss) |  |  | 122,311 |  |  |  | 165,225 |  |  |  | (26 | %) |  |  | 29,909 |  |  |  | 57,392 |  |  |  | (48 | %)
Financial expenses |  |  | (99,177 | ) |  |  | (86,519 | ) |  |  | (15 | %) |  |  | (50,405 | ) |  |  | (43,009 | ) |  |  | (17 | %)
Other income (expenses), net |  |  | (80,761 | ) |  |  | (18,860 | ) |  |  | (328 | %) |  |  | 65,557 |  |  |  | (28,321 | ) |  |  | n/a |
Net income (loss) before income taxes |  |  | (57,627 | ) |  |  | 59,846 |  |  |  | n/a |  |  |  | 45,061 |  |  |  | (13,938 | ) |  |  | n/a |
Income tax |  |  | (16,831 | ) |  |  | (24,149 | ) |  |  | 30 | % |  |  | (4,523 | ) |  |  | (771 | ) |  |  | (487 | %)
Consolidated net income (loss) |  |  | (74,458 | ) |  |  | 35,697 |  |  |  | n/a |  |  |  | 40,538 |  |  |  | (14,709 | ) |  |  | n/a |
Non-controlling interest net income |  |  | 321 |  |  |  | (30 | ) |  |  | n/a |  |  |  | 66 |  |  |  | 100 |  |  |  | (34 | %)
Controlling Interest Net Income (loss) |  |  | (74,137 | ) |  |  | 35,667 |  |  |  | n/a |  |  |  | 40,604 |  |  |  | (14,609 | ) |  |  | n/a |
Operating EBITDA |  |  | 281,165 |  |  |  | 320,921 |  |  |  | (12 | %) |  |  | 111,751 |  |  |  | 148,926 |  |  |  | (25 | %)
Earnings (loss) of continued operations per share |  |  | (134 | ) |  |  | 64 |  |  |  | n/a |  |  |  | 73 |  |  |  | (26 | ) |  |  | n/a |

|  | as of June 30 |
BALANCE SHEET |  | 2020 |  |  | 2019 |  |  | % var |
Total Assets |  |  | 10,757,927 |  |  |  | 9,725,005 |  |  |  | 11 | %
Cash and Temporary Investments |  |  | 294,547 |  |  |  | 90,720 |  |  |  | 225 | %
Trade Accounts Receivables |  |  | 232,107 |  |  |  | 265,785 |  |  |  | (13 | %)
Other Receivables |  |  | 213,694 |  |  |  | 173,715 |  |  |  | 23 | %
Inventories |  |  | 281,139 |  |  |  | 256,526 |  |  |  | 10 | %
Other Current Assets |  |  | 92,132 |  |  |  | 88,372 |  |  |  | 4 | %
Current Assets |  |  | 1,113,619 |  |  |  | 875,118 |  |  |  | 27 | %
Fixed Assets |  |  | 3,851,433 |  |  |  | 3,752,912 |  |  |  | 3 | %
Other Assets |  |  | 5,792,875 |  |  |  | 5,096,975 |  |  |  | 14 | %
Total Liabilities |  |  | 5,226,248 |  |  |  | 4,743,128 |  |  |  | 10 | %
Current Liabilities |  |  | 957,858 |  |  |  | 1,294,285 |  |  |  | (26 | %)
Long-Term Liabilities |  |  | 4,026,117 |  |  |  | 3,391,329 |  |  |  | 19 | %
Other Liabilities |  |  | 242,273 |  |  |  | 57,514 |  |  |  | 321 | %
Consolidated Stockholders’ Equity |  |  | 5,531,679 |  |  |  | 4,981,877 |  |  |  | 11 | %
Non-controlling Interest |  |  | 18,506 |  |  |  | 16,908 |  |  |  | 9 | %
Stockholders’ Equity Attributable to Controlling Interest |  |  | 5,513,173 |  |  |  | 4,964,969 |  |  |  | 11 | %

2020 Second 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

NET SALES |  | January - June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |  |  | 2020 |  |  | 2019 |  |  | % var |  |  | l-t-l % var |
Colombia |  |  | 168,640 |  |  |  | 249,651 |  |  |  | (32 | %) |  |  | (22 | %) |  |  | 66,905 |  |  |  | 121,585 |  |  |  | (45 | %) |  |  | (36 | %)
Panama |  |  | 41,184 |  |  |  | 97,856 |  |  |  | (58 | %) |  |  | (58 | %) |  |  | 6,668 |  |  |  | 47,832 |  |  |  | (86 | %) |  |  | (86 | %)
Costa Rica |  |  | 45,672 |  |  |  | 55,208 |  |  |  | (17 | %) |  |  | (20 | %) |  |  | 20,322 |  |  |  | 27,451 |  |  |  | (26 | %) |  |  | (28 | %)
Rest of CLH |  |  | 113,614 |  |  |  | 113,174 |  |  |  | 0 | % |  |  | 2 | % |  |  | 56,355 |  |  |  | 56,603 |  |  |  | (0 | %) |  |  | 1 | %
Others and intercompany eliminations |  |  | (6,757 | ) |  |  | (8,707 | ) |  |  | 22 | % |  |  | 22 | % |  |  | (2,122 | ) |  |  | (4,513 | ) |  |  | 53 | % |  |  | 53 | %
TOTAL |  |  | 362,353 |  |  |  | 507,182 |  |  |  | (29 | %) |  |  | (23 | %) |  |  | 148,128 |  |  |  | 248,958 |  |  |  | (41 | %) |  |  | (36 | %)
GROSS PROFIT |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 63,647 |  |  |  | 91,959 |  |  |  | (31 | %) |  |  | (20 | %) |  |  | 23,672 |  |  |  | 43,474 |  |  |  | (46 | %) |  |  | (38 | %)
Panama |  |  | 10,009 |  |  |  | 31,963 |  |  |  | (69 | %) |  |  | (69 | %) |  |  | (3,487 | ) |  |  | 14,154 |  |  |  | N/A |  |  |  | N/A |
Costa Rica |  |  | 22,379 |  |  |  | 27,643 |  |  |  | (19 | %) |  |  | (22 | %) |  |  | 10,218 |  |  |  | 13,472 |  |  |  | (24 | %) |  |  | (26 | %)
Rest of CLH |  |  | 46,919 |  |  |  | 43,855 |  |  |  | 7 | % |  |  | 9 | % |  |  | 24,782 |  |  |  | 20,914 |  |  |  | 18 | % |  |  | 20 | %
Others and intercompany eliminations |  |  | (1,614 | ) |  |  | (1,144 | ) |  |  | (41 | %) |  |  | N/A |  |  |  | (904 | ) |  |  | (1,299 | ) |  |  | 30 | % |  |  | 30 | %
TOTAL |  |  | 141,340 |  |  |  | 194,276 |  |  |  | (27 | %) |  |  | (22 | %) |  |  | 54,281 |  |  |  | 90,715 |  |  |  | (40 | %) |  |  | (36 | %)
OPERATING EARNINGS BEFORE OTHER EXPENSES, NET |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 16,270 |  |  |  | 25,434 |  |  |  | (36 | %) |  |  | (29 | %) |  |  | 6,100 |  |  |  | 10,545 |  |  |  | (42 | %) |  |  | (33 | %)
Panama |  |  | (1,080 | ) |  |  | 15,693 |  |  |  | N/A |  |  |  | N/A |  |  |  | (7,574 | ) |  |  | 6,526 |  |  |  | N/A |  |  |  | N/A |
Costa Rica |  |  | 11,946 |  |  |  | 16,474 |  |  |  | (27 | %) |  |  | (30 | %) |  |  | 5,228 |  |  |  | 7,808 |  |  |  | (33 | %) |  |  | (34 | %)
Rest of CLH |  |  | 33,580 |  |  |  | 28,638 |  |  |  | 17 | % |  |  | 19 | % |  |  | 18,234 |  |  |  | 13,373 |  |  |  | 36 | % |  |  | 38 | %
Others and intercompany eliminations |  |  | (23,322 | ) |  |  | (26,571 | ) |  |  | 12 | % |  |  | 12 | % |  |  | (11,126 | ) |  |  | (12,548 | ) |  |  | 11 | % |  |  | 11 | %
TOTAL |  |  | 37,394 |  |  |  | 59,668 |  |  |  | (37 | %) |  |  | (34 | %) |  |  | 10,863 |  |  |  | 25,704 |  |  |  | (58 | %) |  |  | (54 | %)
OPERATING EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 28,242 |  |  |  | 39,073 |  |  |  | (28 | %) |  |  | (18 | %) |  |  | 11,654 |  |  |  | 17,188 |  |  |  | (32 | %) |  |  | (23 | %)
Panama |  |  | 6,917 |  |  |  | 24,412 |  |  |  | (72 | %) |  |  | (72 | %) |  |  | (3,429 | ) |  |  | 10,570 |  |  |  | N/A |  |  |  | N/A |
Costa Rica |  |  | 14,361 |  |  |  | 18,811 |  |  |  | (24 | %) |  |  | (26 | %) |  |  | 6,516 |  |  |  | 8,931 |  |  |  | (27 | %) |  |  | (29 | %)
Rest of CLH |  |  | 37,448 |  |  |  | 32,581 |  |  |  | 15 | % |  |  | 17 | % |  |  | 20,002 |  |  |  | 15,471 |  |  |  | 29 | % |  |  | 31 | %
Others and intercompany eliminations |  |  | (11,914 | ) |  |  | (14,701 | ) |  |  | 19 | % |  |  | 19 | % |  |  | (5,491 | ) |  |  | (6,622 | ) |  |  | 17 | % |  |  | 17 | %
TOTAL |  |  | 75,054 |  |  |  | 100,176 |  |  |  | (25 | %) |  |  | (21 | %) |  |  | 29,252 |  |  |  | 45,538 |  |  |  | (36 | %) |  |  | (32 | %)
OPERATING EBITDA MARGIN |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 16.7 | % |  |  | 15.7 | % |  |  | l.0pp |  |  |  |  |  |  |  | 17.4 | % |  |  | 14.1 | % |  |  | 3.3pp |  |  |  |  |
Panama |  |  | 16.8 | % |  |  | 24.9 | % |  |  | (8.1pp | ) |  |  |  |  |  |  | -51.4 | % |  |  | 22.1 | % |  |  | (73.5pp | ) |  |  |  |
Costa Rica |  |  | 31.4 | % |  |  | 34.1 | % |  |  | (2.7pp | ) |  |  |  |  |  |  | 32.1 | % |  |  | 32.5 | % |  |  | (0.4pp | ) |  |  |  |
Rest of CLH |  |  | 33.0 | % |  |  | 28.8 | % |  |  | 4.2pp |  |  |  |  |  |  |  | 35.5 | % |  |  | 27.3 | % |  |  | 8.2pp |  |  |  |  |
TOTAL |  |  | 20.7 | % |  |  | 19.8 | % |  |  | 0.9pp |  |  |  |  |  |  |  | 19.7 | % |  |  | 18.3 | % |  |  | 1.4pp |  |  |  |  |

2020 Second 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 - June |  |  | Second Quarter |
|  | 2020 |  |  | 2019 |  |  | % var |  |  | 2020 |  |  | 2019 |  |  | % var |
Total cement volume 1 |  |  | 2,444 |  |  |  | 3,245 |  |  |  | (25 | %) |  |  | 1,019 |  |  |  | 1,620 |  |  |  | (37 | %)
Total domestic gray cement volume |  |  | 2,261 |  |  |  | 2,912 |  |  |  | (22 | %) |  |  | 974 |  |  |  | 1,459 |  |  |  | (33 | %)
Total ready-mix volume |  |  | 715 |  |  |  | 1,230 |  |  |  | (42 | %) |  |  | 235 |  |  |  | 588 |  |  |  | (60 | %)
Total aggregates volume |  |  | 1,496 |  |  |  | 2,951 |  |  |  | (49 | %) |  |  | 494 |  |  |  | 1,462 |  |  |  | (66 | %)

1 | Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.

Per-country volume summary

DOMESTIC GRAY CEMENT |  | January - June |  |  | Second Quarter |  |  | Second Quarter 2020 |
|  | 2020 vs. 2019 |  |  | 2020 vs. 2019 |  |  | vs. First Quarter 2020 |
Colombia |  |  | (27 | %) |  |  | (40 | %) |  |  | (29 | %)
Panama |  |  | (59 | %) |  |  | (88 | %) |  |  | (83 | %)
Costa Rica |  |  | (10 | %) |  |  | (15 | %) |  |  | (12 | %)
Rest of CLH |  |  | 5 | % |  |  | 5 | % |  |  | 1 | %
READY-MIX |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | (40 | %) |  |  | (57 | %) |  |  | (47 | %)
Panama |  |  | (68 | %) |  |  | (99 | %) |  |  | (99 | %)
Costa Rica |  |  | (23 | %) |  |  | (35 | %) |  |  | (29 | %)
Rest of CLH |  |  | (10 | %) |  |  | (3 | %) |  |  | (19 | %)
AGGREGATES |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | (42 | %) |  |  | (62 | %) |  |  | (51 | %)
Panama |  |  | (63 | %) |  |  | (96 | %) |  |  | (95 | %)
Costa Rica |  |  | (66 | %) |  |  | (60 | %) |  |  | 42 | %
Rest of CLH |  |  | (26 | %) |  |  | (38 | %) |  |  | (13 | %)

2020 Second Quarter Results |  | Page 9

OPERATING RESULTS |  |

Price Summary

Variation in U.S. dollars

DOMESTIC GRAY CEMENT |  | January - June |  |  | Second Quarter |  |  | Second Quarter 2020 |
|  | 2020 vs. 2019 |  |  | 2020 vs. 2019 |  |  | vs. First Quarter 2020 |
Colombia |  |  | (5 | %) |  |  | (6 | %) |  |  | (3 | %)
Panama |  |  | (6 | %) |  |  | (5 | %) |  |  | 0 | %
Costa Rica |  |  | (4 | %) |  |  | (4 | %) |  |  | 1 | %
Rest of CLH |  |  | (4 | %) |  |  | (4 | %) |  |  | (0 | %)
READY-MIX |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | (10 | %) |  |  | (10 | %) |  |  | (4 | %)
Panama |  |  | (6 | %) |  |  | 22 | % |  |  | 28 | %
Costa Rica |  |  | (7 | %) |  |  | (9 | %) |  |  | (1 | %)
Rest of CLH |  |  | 2 | % |  |  | 0 | % |  |  | 2 | %
AGGREGATES |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | (10 | %) |  |  | (10 | %) |  |  | (2 | %)
Panama |  |  | (5 | %) |  |  | (6 | %) |  |  | (3 | %)
Costa Rica |  |  | 90 | % |  |  | 39 | % |  |  | (46 | %)
Rest of CLH |  |  | 13 | % |  |  | 4 | % |  |  | (8 | %)

For Rest of CLH, volume-weighted average prices.

Variation in local currency

DOMESTIC GRAY CEMENT |  | January - June |  |  | Second Quarter |  |  | Second Quarter 2020 |
|  | 2020 vs. 2019 |  |  | 2020 vs. 2019 |  |  | vs. First Quarter 2020 |
Colombia |  |  | 9 | % |  |  | 9 | % |  |  | 1 | %
Panama |  |  | (6 | %) |  |  | (5 | %) |  |  | 0 | %
Costa Rica |  |  | (8 | %) |  |  | (7 | %) |  |  | 1 | %
Rest of CLH |  |  | (2 | %) |  |  | (2 | %) |  |  | 0 | %
READY-MIX |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 3 | % |  |  | 3 | % |  |  | (0 | %)
Panama |  |  | (6 | %) |  |  | 22 | % |  |  | 28 | %
Costa Rica |  |  | (11 | %) |  |  | (11 | %) |  |  | (1 | %)
Rest of CLH |  |  | 3 | % |  |  | 2 | % |  |  | 2 | %
AGGREGATES |  |  |  |  |  |  |  |  |  |  |  |
Colombia |  |  | 3 | % |  |  | 4 | % |  |  | 1 | %
Panama |  |  | (5 | %) |  |  | (6 | %) |  |  | (3 | %)
Costa Rica |  |  | 82 | % |  |  | 35 | % |  |  | (46 | %)
Rest of CLH |  |  | 18 | % |  |  | 8 | % |  |  | (8 | %)

For Rest of CLH. volume-weighted average prices.

2020 Second Quarter Results |  | Page 10

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.”

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 - June |  |  | January - June |  |  | Second Quarter |
|  | 2020 EoP |  |  | 2019 EoP |  |  | 2020 average |  |  | 2019 average |  |  | 2020 average |  |  | 2019 average |
Colombian peso |  |  | 3,758.91 |  |  |  | 3,205.67 |  |  |  | 3,746.19 |  |  |  | 3,203.58 |  |  |  | 3,820.34 |  |  |  | 3,270.40 |
Panama balboa |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |  |  |  | 1.00 |
Costa Rica colon |  |  | 583.49 |  |  |  | 583.64 |  |  |  | 577.49 |  |  |  | 600.09 |  |  |  | 577.29 |  |  |  | 591.09 |
Euro |  |  | 0.91 |  |  |  | 0.86 |  |  |  | 0.91 |  |  |  | 0.83 |  |  |  | 0.91 |  |  |  | 0.85 |

Amounts provided in units of local currency per US dollar.

2020 Second Quarter Results |  | Page 11

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.

2020 Second Quarter Results |  | Page 12