EX-99.2 3 d73293dex992.htm THIRD QUARTER 2020 RESULTS FOR CEMEX LATAM HOLDINGS, S.A.

Third quarter 2020 results for CEMEX Latam Holdings, S.A.

Exhibit 2

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

OPERATING AND FINANCIAL HIGHLIGHTS January-September Third Quarter 2020 2019 % var I-t-l % var 2020 2019 % var I-t-l % var Consolidated cement volume 3,919 4,892 (20%) 1,475 1,647 (10%) Consolidated domestic gray cement volume 3,634 4,392 (17%) 1,374 1,480 (7%) Consolidated ready-mix volume 1,178 1,831 (36%) 463 601 (23%) Consolidated aggregates volume 2,427 4,377 (45%) 931 4,426 (35%) Net sales 571 752 (24%) (18%) 209 245 (15%) (8%) Gross profit as % of net sales 229 40.0% 290 38.6% (21%) 1.4pp (16%) 87 41.8% 96 39.2% (9%) 2.6pp (2%) Operating earnings (loss) before other expenses, net as % of net sales 69 12.1% 87 11.6% (21%) 0.5pp (15%) 32 15.2% 27 11.2% 15% 4.0pp 26% Controlling interest net income (loss) -129 8 NA -109 -4 (2974%) Operating EBITDA as % of net sales 126 22.0% 146 19.4% (14%) 2.6pp (9%) 51 24.2% 46 18.7% 10% 5.5pp 19% Free cash flow after maintenance capital expenditures 68 52 31% 40 12 238% Free cash flow 66 50 32% 39 12 228% Net debt 659 765 (14%) 659 765 (14%) Total debt 688 788 (13%) 688 788 (13%) Earnings (loss) of continued operations per share (0.23) 0.01 N/A (0.20) (0.01) (2965%) Shares outstanding at end of period 558 557 0% 558 557 0% Employees 3,932 3,896 1% 3,932 3,896 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. Consolidated net sales during the third quarter of 2020 declined by 8% on a like-to-like basis adjusting for foreign exchange fluctuations, compared with those of the third quarter of 2019. Cost of sales as a percentage of net sales during the third quarter decreased by 2.6pp from 60.8.% to 58.2%, on a year-over-year basis. Operating expenses as a percentage of net sales during the quarter declined by 1.3pp from 27.9% to 26.6%, compared to those of 2019. Operating EBITDA during the third quarter of 2020 increased by 19% on a like-to-like basis, compared with that of the third quarter of 2019. Operating EBITDA margin during the third quarter of 2020 increased by 5.5pp, compared with that of the third quarter of 2019. Controlling interest net income during the third quarter was a loss of US$109 million due to a non-cash impairment of goodwill and idle assets. Net debt declined US$48 million from June to September, reaching US$659 million.

OPERATING RESULTS Colombia January-September Third Quarter 2020 2019 % var I-t-I % var 2020 2019 % var I-t-I % var Net sales 284 376 (25%) (14%) 115 127 (9%) 1% Operating EBITDA 57 59 (4%) 8% 28 20 42% 59% Operating EBITDA margin 19.9% 15.7% 4.2pp 24.6% 15.7% 8.9pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January-September Third Quarter January-September Third Quarter January-September Third Quarter Volume (20%) (6%) (30%) (12%) (33%) (13%) Price (USD) (5%) (3%) (10%) (9%) (12%) (15%) Price (local currency) 9% 8% 3% 2% (0%) (5%) Year-over-year percentage variation. In Colombia, after the sharp decline in cement demand during April and May due to the lockdowns, industry volumes reached nearly 2019 levels during the third quarter. Our cement volumes declined by 6% during the quarter, reflecting an impact due to our price increase implemented in July and a high base of comparison as a new competitor entered the market in late 2019. Our cement prices increased by 2% and 8% on a sequential and year-over-year basis, respectively, reaching the highest level since 2016 in local-currency terms. The improvement on a sequential basis reflects our price increase implemented in July. Panama January-September Third Quarter 2020 2019 % var I-t-I % var 2020 2019 % var I-t-I % var Net sales 58 143 (60%) (60%) 16 45 (64%) (64%) Operating EBITDA 8 38 (78%) (78%) 1 14 (89%) (89%) Operating EBITDA margin 14.6% 26.8% (12.2pp) 9.0% 30.7% (21.7pp) In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January-September Third Quarter January-September Third Quarter January-September Third Quarter Volume (60%) (63%) (74%) (87%) (69%) (82%) Price (USD) (6%) (5%) (6%) (1%) (8%) (19%) Price (local currency) (6%) (5%) (6%) (1%) (8%) (19%) Year-over-year percentage variation. Panama is the country in the region with the longest and most severe restrictions on mobility and activity. Following government regulations, our operations resumed regular activities in mid-September. Hardware stores and certain infrastructure projects could operate during the quarter, while formal construction sites resumed operations in mid-September. Our quarterly cement volumes declined by 63%. In addition to the COVID-19 restrictions, our performance reflects a new cement producer which came into the market during late June.

OPERATING RESULTS Costa Rica January—September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 67 80 (17%) (18%) 21 25 (15%) (12%) Operating EBITDA 22 24 (9%) (10%) 7 5 49% 54% Operating EBITDA margin 32.4% 29.6% 2.8pp 34.3% 19.6% 14.7pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates Januray—September Third Quarter Januray—September Third Quarter Januray—September Third Quarter Volume (13%) (21%) (21%) (17%) (70%) (79%) Price (USD) (5%) (5%) (7%) (8%) 107% 169% Price (local currency) (6%) (1%) (9%) (5%) 102% 179% Year-over-year percentage variation. In Costa Rica, our cement volumes during the third quarter declined by 21%. COVID-19 cases in the country accelerated in late June, prompting a 9-day quarantine in July only for the districts impacted by a COVID-19 surge. Although the lockdown did not impact our operations directly, it curbed cement demand during that period. Our quarterly prices improved by 2% sequentially and declined by 1% year-over-year, in local-currency terms. The sequential improvement reflects our price increase of around 4% for bagged cement, effective on June. Rest of CLH January—September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 174 164 6% 7% 60 51 18% 19% Operating EBITDA 58 46 25% 27% 21 14 50% 52% Operating EBITDA margin 33.5% 28.3% 5.2pp 34.5% 27.1% 7.4pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates Januray—September Third Quarter Januray—September Third Quarter Januray—September Third Quarter Volume 11% 25% (17%) (30%) (38%) (54%) Price (USD) (4%) (3%) 1% (0%) 2% (15%) Price (local currency) (2%) (2%) 2% 1% 5% (12%) Year-over-year percentage variation. Our cement volumes improved by 25% during the quarter, reaching the highest level since the third quarter of 2016. Cement volumes increased in all countries of the Rest of CLH region. In Guatemala, our cement volumes improved during the quarter supported by an acceleration in the self-construction sector, segment where we have a higher relative presence. Additionally, our volumes benefited from tighter controls in the northern border—implemented because of COVID-19—which restrained flows of illegal cement imports. In Nicaragua, we are encouraged by the improvement in construction activity observed during the quarter and the first nine months of the year. Our cement volumes increased during the quarter driven by the self-construction sector, as well as by government-sponsored projects, such as a hospital, highways, and a social-housing complex.

OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January—September Third Quarter 2020 2019 % var 2020 2019 % var Operating earnings before other expenses, net 69 87 (21%) 32 27 15% + Depreciation and operating amortization 57 59 19 18 Operating EBITDA 126 146 (14%) 51 46 10% - Net financial expense 39 40 13 13 - Capital expenditures for maintenance 10 30 6 13 - Change in working Capital 6 (9) (13) (4) - Taxes paid (2) 35 2 12 -Other cash items (Net) 5 (1) 3 2 Free cash flow after maintenance capital exp 68 52 31% 40 12 238% - Strategic Capital expenditures 2 1 1 —   Free cash flow 66 50 32% 39 12 228% In millions of US dollars, except percentages. Information on Debt Third Quarter Second Quarter Third Quarter 2020 2019 %var 2020 2020 2019 Total debt 1, 2 688 788 785 Currency denomination Short term 3% 18% 6% U.S. dollar 98% Long term 97% 82% 94% Colombian peso 2% Cash and cash equivalents 30 23 28% 78 Interest rate Net debt 659 765 (14)% 707 Fixed 67% 60% Net debt / LTM3 EBITDA 3.7x 3.8x 4.1x Variable 33% 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. 3 Refers to “last Twelve Months”

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 INCOME STATEMENT 2020 2019 % var I-t-1 % var 2020 2019 % var I-t-1 % var Netsales 571,417 751,826 (24%) (18%) 209,064 244,644 (15%) (8%) Cost of sales (342,734) (461,730) 26% (121,721) (148,824)18% Gross profit 228,683 290,096 (21%) (16%) 87,343 95,820 (9%) (2%) Operating expenses (159,601) (202,969) 21% (55,655) (68,361)19% Operating earnings (loss) before other expenses, net 69,082 87,127 (21%) (15%) 31,688 27,459 15% 26% Other expenses, net (130,264) (12,337) (956%) (125,519) (4,244) (2858%) Operating earnings (loss) (61,182) 74,790 n/a (93,831) 23,215 n/a Financial expenses (38,711) (39,598) 2% (12,237) (12,591) 3% Other income (expenses), net (18,436) (22,595) 18% 3,122(16,708) n/a Net income (loss) before income taxes (118,329) 12,597 n/a (102,946) (6,084) (1592%) Income tax (11,489)(5,036) (128%) (6,996) 2,502 n/a Consolidated net income (loss) (129,818) 7,561 n/a (109,942) (3,582) (2969%) Non-controlling interest net income 765 18 4071% 679 27 2454% Controlling Interest Net Income (loss) (129,053) 7,579 n/a (109,263) (3,555) (2974%) Operating EBITDA 125,600 146,003 (14%) (9%) 50,546 45,827 10% 19% Earnings (loss) of continued operations per share (0.23)0.01 n/a (0.20) (0.01) (2965%) as of September 30 BALANCE SHEET 2020 2019 % var Total Assets 2,616,830 2,934,625(11%) Cash and Temporary Investments 29,755 23,193 28% Trade Accounts Receivables 63,507 79,833 (20%) Other Receivables 52,887 54,383 (3%) Inventories 70,077 76,176 (8%) Other Current Assets 17,395 13,708 27% Current Assets 233,621 247,293 (6%) Fixed Assets 982,144 1,113,189 (12%) Other Assets 1,401,065 1,574,143 (11%) Total Liabilities1,294,500 1,412,635 (8%) Current Liabilities 242,000 392,858 (38%) Long-Term Liabilities 990,402 1,002,663 (1%) Other Liabilities 62,098 17,114 263% Consolidated Stockholders’ Equity 1,322,330 1,521,990 (13%) Non-controlling Interest 4,6805,116 (9%) Stockholders’ Equity Attributable to Controlling Interest 1,317,650 1,516,874 (13%)

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 2020 2019 % var 2020 2019 % var Net sales 2,149,540 2,456,598 (12%) 792,967 830,568 (5%) Cost of sales (1,289,286) (1,508,707) 15% (461,679) (505,314) 9% Gross profit 860,254 947,891 (9%) 331,288 325,344 2% Operating expenses (600,383) (663,204) 9% (211,097) (232,111) 9% Operating earnings (loss) before other expenses, net 259,871 284,687 (9%) 120,191 93,233 29% Other expenses, net (490,024) (40,311) (1116%) (476,088) (14,410) (3204%) Operating earnings (loss) (230,153) 244,376 n/a (355,897) 78,823 n/a Financial expenses (145,624) (129,386) (13%) (46,413) (42,751) (9%) Other income (expenses), net (69,351) (73,829) 6% 11,843 (56,729) n/a Net income (loss) before income taxes (445,128) 41,161 n/a (390,467) (20,657) (1790%) Income tax (43,128) (16,456) (163%) (26,538) 8,494 n/a Consolidated net income (loss) (488,346) 24,705 n/a (417,005) (12,163) (3329%) Non-controlling interest net income 2,878 60 4702% 2,577 94 2649% Controlling interest Net Income (loss) (485,468) 24,765 n/a (414,428) (12,069) (3334%) Operating EBITDA 472,479 477,068 (1%) 191,720 155,599 23% Earnings (loss) of continued operations per share (875) 44 n/a (747) (22) (3324%) as of September 30 BALANCE SHEET 2020 2019 % var Total Assets 10,150,525 10,159,700 (0%) Cash and Temporary Invetments 115,450 80,294 44% Trade Accounts Receivables 246,340 276,384 (11%) Other Receivables 205,147 188,276 9% Inventories 271,823 263,722 3% Other Current Assets 67,472 47,455 42% Current Assets 906,202 856,131 6% Fixed Assets 3,809,680 3,853,872 (1%) Other Assets 5,434,643 5,449,697 (0%) Total Liabilities 5,021,288 4,890,556 3% Current Liabilities 938,705 1,360,078 (31%) Long-Term Liabilities 3,841,711 3,471,231 11% Other Liabilities 240,872 59,247 307% Consolidated Stockholders’ Equity 5,129,237 5,269,144 (3%) Non-controlling Interest 18,150 17,709 2% Stockholders’ Equity Attributable to Controlling Interest 5,111,087 5,251,435 (3%)

OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales January-September Third Quarter 2020 2019 % var I-t-l % var 2020 2019 % var I-t-l % var NET SALES Colombia 283,689 376,324 (25%) (14%) 115,049 126,673 (9%) 1% Panama 57,526 143,038 (60%) (60%) 16,342 45,182 (64%) (64%) Costa Rica 66,829 80,109 (17%) (18%) 21,157 24,901 (15%) (12%) Rest of CLH 173,840 164,369 6% 7% 60,226 51,195 18% 19% Others and intercompany eliminations (10,467) (12,014) 13% 13% (3,709) (3,307) (12%) (12%) TOTAL 571,417 751,826 (24%) (18%) 209,064 244,644 (15%) (8%) GROSS PROFIT Colombia 112,220 139,944 (20%) (9%) 48,573 47,985 1% 13% Panama 13,221 50,327 (74%) (74%) 3,212 18,364 (83%) (83%) Costa Rica 33,454 37,134 (10%) (11%) 11,075 9,491 17% 21% Rest of CLH 72,095 63,021 14% 16% 25,176 19,166 31% 33% Others and intercompany eliminations (2,307) (330) (599%) N/A (693) 814 N/A N/A TOTAL 228,683 290,096 (21%) (16%) 87,343 95,820 (9%) (2%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 38,211 38,729 (1%) 10% 21,941 13,295 65% 84% Panama (3,130) 25,424 N/A N/A (2,050) 9,731 N/A N/A Costa Rica 18,091 20,216 (11%) (12%) 6,145 3,742 64% 70% Rest of CLH 52,097 40,699 28% 30% 18,517 12,061 54% 55% Others and intercompany eliminations (36,187) (37,941) 5% 5% (12,865) (11,370) (13%) (13%) TOTAL 69,082 87,127 (21%) (15%) 31,688 27,459 15% 26% OPERATING EBITDA Colombia 56,585 58,974 (4%) 8% 28,343 19,901 42% 59% Panama 8,386 38,281 (78%) (78%) 1,469 13,869 (89%) (89%) Costa Rica 21,625 23,689 (9%) (10%) 7,264 4,878 49% 54% Rest of CLH 58,219 46,442 25% 27% 20,771 13,861 50% 52% Others and intercompany eliminations (19,215) (21,383) 10% 10% (7,301) (6,682) (9%) (9%) TOTAL 125,600 146,003 (14%) (9%) 50,546 45,827 10% 19% OPERATING EBITDA MARGIN Colombia 19.9% 15.7% 4.2pp 24.6% 15.7% 8.9pp Panama 14.6% 26.8% (12.2pp) 9.0% 30.7% (21.7pp) Costa Rica 32.4% 29.6% 2.8pp 34.3% 19.6% 14.7pp Rest of CLH 33.5 28.3% 5.2pp 34.5% 27.1% 7.4pp TOTAL 22.0% 19.4% 2.6pp 24.2% 18.7% 5.5pp

OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters January-SeptemberThird Quarter 20202019% var20202019% var Total cement volume1 3,9194,892(20%)1,4751,647(10%) Total domestic gray cement volume 3,6344,392(17%)1,3741,480(7%) Total ready-mix volume 1,1781,831(36%)463601(23%) Total aggregates volume 2,4274,377(45%)9311,426(35%) 1 Consolidated cement volume includes domestic and export volume of gray cement, special cement, mortar and clinker. Per-country volume summary January-Septembet Third Quarter Third Quarter 2020 2020 vs. 2019 2020 vs. 2019 vs. Second Quarter 2020 DOMESTIC GRAY CEMENT Colombia (20%) (6%) 66% Panama (60%) (63%) 187% Costa Rica (13%) (25%) (7%) Rest of CLH 11% 25% 8% READY-MIX Colombia (30%) (12%) 118% Panama (74%) (87%) 1702% Costa Rica (21%) (17%) (8%) Rest of CLH (17%) (30%) (15%) AGGREGATES Colombia (33%) (13%) 128% Panama (69%) (82%) 373% Costa Rica (70%) (79%) (57%) Rest of CLH (38%) (54%) (3%)

OPERATING RESULTS Price Summary Variation in U.S. dollars Variation in local currency January - September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 67 80 (17%) (18%) 21 25 (15%) (12%) Operating EBITDA 22 24 (9%) (10%) 7 5 49% 54% Operating EBITDA margin 32.4% 29.6% 2.8pp 34.3% 19.6% 14.7pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - September Third Quarter January - September Third Quarter January - September Third Quarter Volume (13%) (21%) (21%) (17%) (70%) (79%) Price (USD) (5%) (5%) (7%) (8%) 107% 169% Price (local currency) (6%) (1%) (9%) (5%) 102% 179% Year-over-year percentage variation. January - September Third Quarter 2020 2019 % var l-t-l % var 2020 2019 % var l-t-l % var Net sales 174 164 6% 7% 60 51 18% 19% Operating EBITDA 58 46 25% 27% 21 14 50% 52% Operating EBITDA margin 33.5% 28.3% 5.2pp 34.5% 27.1% 7.4pp In millions of US dollars, except percentages. Domestic gray cement Ready-Mix Aggregates January - September Third Quarter January - September Third Quarter January - September Third Quarter Volume 11% 25% (17%) (30%) (38%) (54%) Price (USD) (4%) (3%) 1% (0%) 2% (15%) Price (local currency) (2%) (2%) 2% 1% 5% (12%) Year-over-year percentage variation.

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 Exchange rates January - September January - September Third Quarter 2020 EoP 2019 Eop 2020 average 2019 average 2020 average 2019 average Colombian peso 3,878.94 3,462.01 3,761.77 3,267.51 3,792.94 Panama balboa 1.00 1.00 1.00 1.00 1.00 3,395.38 Costa Rica colon 606.68 583.88 584.22 592.56 597,67 577.50 Euro 0.85 0.86 0.89 0.84 0.85 0.86 Amounts provided in units of local currency per US dollar.

DEFINITIONS OF TERMS AND DISCLOSURES Relevant accounting effects included in the reported financial statements In the financial statements of the third quarter of 2020, approved by its Board of Directors, CEMEX Latam Holdings S.A. recognized a non-cash aggregate impairment charge in the income statement of $121.1 million dollars, within the line item other expenses, net. The impairment charge is comprised of $108.2 million of impairment from goodwill related to CLH’s businesses in Panama of $81.3 million and Costa Rica of $26.9 million, recognized under the line of Goodwill and other intangible assets, net, as well as of $12.9 million of impairment from idle fixed assets, recognized within the line of Property, machinery and equipment, net and right-of-use assets, net, mainly in assets of the cement sector in Panama for $11.1 million dollars and the aggregates business in Colombia for $1.8 millions of dollars. The aforementioned non-cash impairment charges, were caused by the negative effects on its operating results caused by the COVID-19 Pandemic resulting from the quarantine periods, social distancing and suspension and reduction of operations in accordance with the disposals issued by each government, as well as the high uncertainty regarding with the length and consequences in the different markets where CLH operates. These non-cash charges do not impact CLH’s liquidity, Operating EBITDA and cash taxes payable, nevertheless its total assets, net income and equity were affected in the quarter.

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.