Third quarter 2020 results for CEMEX Holdings Philippines, Inc.

Exhibit 2

LOGO

2020

THIRD 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 - September									Third Quarter
	2020			2019			% var			2020			2019			% var
Net sales		15,142			18,224			(17	%)		5,519			5,868			(6	%)
Gross profit		6,313			7,506			(16	%)		2,529			2,424			4	%
as % of net sales		42	%		41	%		1pp			46	%		41	%		5pp
Operating earnings before other expenses, net		1,492			2,085			(28	%)		840			628			34	%
as % of net sales		10	%		11	%		(2pp	)		15	%		11	%		5pp
Controlling Interest Net Income (Loss)		758			875			(13	%)		623			72			761	%
Operating EBITDA		3,281			3,446			(5	%)		1,431			1,075			33	%
as % of net sales		21.7	%		18.9	%		2.8pp			25.9	%		18.3	%		7.6pp
Free cash flow after maintenance capital expenditures		1,967			2,891			(32	%)		1,922			1,204			60	%
Free cash flow		(365	)		851			N/A			1,543			(437	)		N/A
Net debt¹		6,843			17,643			(61	%)		6,843			17,643			(61	%)
Total debt¹		13,510			20,235			(33	%)		13,510			20,235			(33	%)
Earnings per share²		0.06			0.17			(62	%)		0.05			0.01			232	%

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 decreased, year-over-year, by 6% during the third quarter and by 17% during the first nine months of the year, due to lower volumes and prices.

Cost of sales was at 58% of sales during the first nine months of 2020 compared with 59% in the same period of 2019. The decrease was driven by lower costs and efforts to contain expenses, amidst the COVID-19 pandemic.

Total fuel cost was 5% lower year-over-year, while total power cost declined by 18% year-over-year during the first nine months of 2020 due to the temporary stoppage of Solid Cement Plant in the second quarter of the year due to lockdowns, production optimization initiatives, and lower energy prices.

Operating expenses, as a percentage of sales, was at 32% during the first nine months of 2020, compared with 30% in the same period of 2019.

Distribution expenses, as a percentage of sales, was at 18% during the first nine months of 2020, compared with 17% in the same period of 2019. Total distribution expenses were lower by 14% year-over-year for the first three quarters of 2020.

Selling and administrative expenses, as a percentage of sales, was at 14% during the first nine months of 2020, compared with 13% in the same period of 2019. Total selling and administrative expenses were lower by 8% year-over-year for the first three quarters of 2020.

Operating EBITDA for the first nine months of 2020 was around PHP 3.3 billion, a decrease of 5% year-over-year. Third quarter operating EBITDA benefitted from maintenance deferrals, lower costs, and controlling of expenses.

Operating EBITDA margin was at 22% for the first nine months of the 2020, as lower volumes and prices were partially offset by lower costs and cost containment measures, including maintenance cost deferrals.

Controlling interest net income was at PHP 758 million for the first nine months of 2020, 13% lower on a year-over-year basis, due to COVID-19 pandemic-related restrictions, and its negative impact on demand.

Income tax was a benefit for the first nine months of the year due to an increase in the company’s deferred tax assets related to Net Operating Loss Carry-Over (NOLCO) and Minimum Corporate Income Tax (MCIT) credits.

Total debt at the end of September 2020 was at PHP 13,510 million, of which PHP 11,322 million pertained to debt owed to BDO Unibank, Inc.


2020 Third Quarter Results		Page 2


Operating Results


Domestic Gray Cement	January - September			Third Quarter			Third Quarter 2020
	2020 vs. 2019			2020 vs. 2019			vs. Second Quarter 2020
Volume		(12	%)		(3	%)		38	%
Price in PHP		(5	%)		(3	%)		1	%

Our domestic cement volumes decreased by 3% year-over-year during the third quarter. We saw a reimposition of lockdown measures during the quarter, in areas including Metro Manila and nearby provinces, which returned to two-weeks of stricter quarantine classifications.

On a sequential basis, our domestic cement volumes increased by 38% for the quarter, in line with government efforts to reopen the economy.

During the first nine months of 2020, our domestic cement volumes decreased by 12% year-over-year due to the negative effects of the COVID-19 pandemic.

Our domestic cement prices during the first nine months of the 2020 were 5% lower year-over-year, reflecting declines that began in the second half of 2019.

The sequential change in our prices reflects product and geographic mix effects.


2020 Third Quarter Results		Page 3


Operating EBITDA, Free Cash Flow and Debt Information

Operating EBITDA and Free Cash Flow


				January - September									Third Quarter
	2020			2019			% var			2020			2019			% var
Operating earnings before other income, net		1,492			2,085			(28	%)		840			628			34	%
+ Depreciation and operating amortization		1,789			1,362						592			447

Operating EBITDA		3,281			3,446			(5	%)		1,431			1,075			33	%
- Net financial expenses		707			1,067						173			352
- Maintenance capital expenditures		167			386						121			28
- Change in working capital		131			(1,258	)					(888	)		(621	)
- Income taxes paid		305			391						100			132
- Other cash items (net)		4			(32	)					3			(22	)

Free cash flow after maintenance capital expenditures		1,967			2,891			(32	%)		1,922			1,204			60	%
- Strategic capital expenditures		2,331			2,040						379			1,641

Free cash flow		(365	)		851			N/A			1,543			(437	)		N/A

In millions of Philippine Pesos

Debt Information


	Third Quarter						Second Quarter
	2020			2019			% var			2020
Total debt⁽¹⁾⁽²⁾		13,510			20,235			(33	%)		13,681
Short term		6	%		9	%					6	%
Long term		94	%		91	%					94	%

Cash and cash equivalents		6,667			2,592			157	%		5,272

Net debt		6,843			17,643			(61	%)		8,409

Leverage Ratio⁽³⁾		3.33			4.04						3.69
Coverage Ratio⁽³⁾		5.21			3.40						4.16


	Third Quarter
	2020			2019
Currency denomination
U.S. dollar		5	%		28	%
Philippine peso		95	%		72	%

Interest rate
Fixed		56	%		44	%
Variable		44	%		56	%

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 on June 30, 2021.


2020 Third 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 - September									Third Quarter
INCOME STATEMENT	2020			2019			% var			2020			2019			% var
Net sales		15,142,304			18,223,518			(17	%)		5,519,262			5,867,591			(6	%)
Cost of sales		(8,829,342	)		(10,717,942	)		18	%		(2,990,621	)		(3,443,247	)		13	%

Gross profit		6,312,962			7,505,576			(16	%)		2,528,641			2,424,344			4	%
Selling and Administrative expenses		(2,131,900	)		(2,307,000	)		8	%		(753,969	)		(760,793	)		1	%
Distribution expenses		(2,688,895	)		(3,113,928	)		14	%		(935,069	)		(1,035,832	)		10	%

Operating earnings before other expenses, net		1,492,167			2,084,648			(28	%)		839,603			627,719			34	%
Other income (expenses), net		(4,309	)		32,159			N/A			(2,935	)		21,681			N/A

Operating earnings (loss)		1,487,858			2,116,807			(30	%)		836,668			649,400			29	%
Financial expenses, net		(707,223	)		(1,067,235	)		34	%		(173,099	)		(352,432	)		51	%
Foreign exchange gain (loss), net		133,009			127,921			4	%		133,314			(146,480	)		N/A

Net income (loss) before income taxes		913,644			1,177,493			(22	%)		796,883			150,488			430	%
Income tax benefit (expenses)		(155,512	)		(302,811	)		49	%		(173,768	)		(78,117	)		(122	%)

Consolidated net income (loss)		758,132			874,682			(13	%)		623,115			72,371			761	%
Non-controlling interest net income (loss)		16			18			(11	%)		4			6			(33	%)

Controlling Interest net income (loss)		758,148			874,700			(13	%)		623,119			72,377			761	%

Operating EBITDA		3,281,154			3,446,204			(5	%)		1,431,247			1,074,502			33	%
Earnings per share		0.06			0.17			(62	%)		0.05			0.01			232	%


	as of September 30							as of December 31
BALANCE SHEET	2020		2019		% Var			2019		% Var
Total Assets		63,721,233		58,150,371		10	%		58,806,177		8	%
Cash and Temporary Investments		6,667,022		2,591,799		157	%		1,399,180		376	%
Derivative Asset		0		2,777		(100	%)		0
Trade Accounts Receivables		807,720		1,052,519		(23	%)		892,951		(10	%)
Other Receivables		41,077		73,410		(44	%)		92,993		(56	%)
Insurance Claims and Premium Receivables		175,285		518		33739	%		445,535		(61	%)
Inventories		2,273,242		2,944,124		(23	%)		3,013,444		(25	%)
Assets Held for Sale		0		0					0
Other Current Assets		1,362,209		1,108,763		23	%		1,672,392		(19	%)
Current Assets		11,326,555		7,773,910		46	%		7,516,495		51	%
Fixed Assets		21,246,158		19,076,228		11	%		19,937,723		7	%
Investments in an Associate and Other Investments		14,097		14,097		0	%		14,097		0	%
Other Assets and Noncurrent Accounts Receivables		799,317		887,865		(10	%)		837,151		(5	%)
Advances to Contractors		1,286,693		1,778,104		(28	%)		1,606,397		(20	%)
Deferred Income Taxes - net		1,188,719		760,473		56	%		1,034,620		15	%
Goodwill		27,859,694		27,859,694		0	%		27,859,694		0	%
Other Assets		31,148,520		31,300,233		(0	%)		31,351,959		(1	%)

Total Liabilities		21,080,917		28,724,703		(27	%)		29,140,690		(28	%)
Current Liabilities		7,549,321		9,604,901		(21	%)		10,136,812		(26	%)
Long-Term Liabilities		11,095,900		16,511,763		(33	%)		16,549,640		(33	%)
Deferred Tax Liability		1,043		7,624		(86	%)		1,587		(34	%)
Other Liabilities		2,434,653		2,600,415		(6	%)		2,452,651		(1	%)

Consolidated Stockholders’ Equity		42,640,316		29,425,668		45	%		29,665,487		44	%
Non-controlling Interest		151		175		(14	%)		170		(11	%)
Stockholders’ Equity Attributable to Controlling Interest		42,640,165		29,425,493		45	%		29,665,317		44	%


2020 Third 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 - September									Third Quarter
INCOME STATEMENT	2020			2019			% var			2020			2019			% var
Net sales		303,217			351,507			(14	%)		113,309			113,735			(0	%)
Cost of sales		(176,803	)		(206,735	)		14	%		(61,396	)		(66,743	)		8	%

Gross profit		126,414			144,772			(13	%)		51,913			46,992			10	%
Selling and Administrative expenses		(42,690	)		(44,500	)		4	%		(15,479	)		(14,748	)		(5	%)
Distribution expenses		(53,844	)		(60,064	)		10	%		(19,197	)		(20,078	)		4	%

Operating earnings before other expenses, net		29,880			40,208			(26	%)		17,237			12,166			42	%
Other income (expenses), net		(86	)		620			N/A			(60	)		420			N/A

Operating earnings (loss)		29,794			40,828			(27	%)		17,177			12,586			36	%
Financial expenses, net		(14,162	)		(20,586	)		31	%		(3,554	)		(6,831	)		48	%
Foreign exchange gain (loss), net		2,663			2,467			8	%		2,737			(2,839	)		N/A

Net income (loss) before income taxes		18,295			22,709			(19	%)		16,360			2,916			461	%
Income tax benefit (expenses)		(3,114	)		(5,841	)		47	%		(3,567	)		(1,514	)		(136	%)

Consolidated net income (loss)		15,181			16,868			(10	%)		12,793			1,402			812	%
Non-controlling interest net income (loss)		0			0						0			0

Controlling Interest net income (loss)		15,181			16,868			(10	%)		12,793			1,402			812	%

Operating EBITDA		65,703			66,473			(1	%)		29,383			20,828			41	%


	as of September 30							as of December 31
BALANCE SHEET	2020		2019		% Var			2019		% Var
Total Assets		1,313,975		1,121,943		17	%		1,161,259		13	%
Cash and Temporary Investments		137,479		50,006		175	%		27,630		398	%
Derivative Asset		0		54		(100	%)		0
Trade Accounts Receivables		16,656		20,307		(18	%)		17,633		(6	%)
Other Receivables		847		1,416		(40	%)		1,836		(54	%)
Insurance Claims and Premium Receivables		3,614		10		36040	%		8,798		(59	%)
Inventories		46,876		56,803		(17	%)		59,507		(21	%)
Assets Held for Sale		0		0					0
Other Current Assets		28,090		21,392		31	%		33,025		(15	%)
Current Assets		233,562		149,988		56	%		148,429		57	%
Fixed Assets		438,110		368,054		19	%		393,715		11	%
Investments in an Associate and Other Investments		291		272		7	%		278		5	%
Other Assets and Noncurrent Accounts Receivables		16,482		17,130		(4	%)		16,532		(0	%)
Advances to Contractors		26,532		34,306		(23	%)		31,722		(16	%)
Deferred Income Taxes - net		24,512		14,672		67	%		20,431		20	%
Goodwill		574,486		537,521		7	%		550,152		4	%
Other Assets		642,303		603,901		6	%		619,115		4	%

Total Liabilities		434,702		554,209		(22	%)		575,448		(24	%)
Current Liabilities		155,671		185,315		(16	%)		200,174		(22	%)
Long-Term Liabilities		228,805		318,575		(28	%)		326,810		(30	%)
Deferred Tax Liability		22		147		(85	%)		31		(29	%)
Other Liabilities		50,204		50,172		0	%		48,433		4	%

Consolidated Stockholders’ Equity		879,272		567,734		55	%		585,811		50	%
Non-controlling Interest		3		3		0	%		3		0	%
Stockholders’ Equity Attributable to Controlling Interest		879,269		567,731		55	%		585,808		50	%


2020 Third 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 September 30, 2020 and 2019, assets for the right-of-use amounted to PHP 1,966 million and PHP 2,121 million, respectively. In addition, financial liabilities related to lease contracts amounted to PHP 2,188 million as of September 30, 2020 and PHP 2,365 million as of September 30, 2019. These amounts of financial liabilities as of September 30, 2020 and 2019 are included in the “Debt Information” section appearing on page 4.


2020 Third 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 September 30, 2020 has been converted at the end of period exchange rate of 48.50 Philippine pesos per US dollar while the consolidated income statement for the nine-month period ended September 30, 2020 has been converted at the January to September 2020 average exchange rate of 49.94 Philippine pesos per US dollar. On the other hand, the consolidated income statement for the three-month period ended September 30, 2020 has been converted at the July to September 2020 average exchange rate of 48.71 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 - September

Third Quarter

January - September

2020
average

2019
average

2020
average

2019
average

2020
End of period

2019
End of period

Philippine peso

49.94

51.84

48.71

51.59

48.50

51.83

Amounts provided in units of local currency per US dollar


2020 Third Quarter Results		Page 8