Fourth quarter 2020 results for CEMEX Holdings Philippines, Inc.

Exhibit 2

LOGO

2020

FOURTH 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 - December									Fourth Quarter
	2020			2019			% var			2020			2019			% var
Net sales		19,707			23,596			(16	%)		4,564			5,372			(15	%)
Gross profit		8,092			9,683			(16	%)		1,779			2,177			(18	%)
as % of net sales		41	%		41	%		0pp			39	%		41	%		(2pp	)
Operating earnings before other expenses, net		1,808			2,342			(23	%)		315			257			23	%
as % of net sales		9	%		10	%		(1pp	)		7	%		5	%		2pp
Controlling Interest Net Income (Loss)		985			1,280			(23	%)		227			405			(44	%)
Operating EBITDA		4,172			4,227			(1	%)		891			781			14	%
as % of net sales		21.2	%		17.9	%		3.3pp			19.5	%		14.5	%		5.0pp
Free cash flow after maintenance capital expenditures		2,814			2,481			13	%		847			(411	)		N/A
Free cash flow		(437	)		(719	)		39	%		(72	)		(1,570	)		95	%
Net debt¹		6,714			18,664			(64	%)		6,714			18,664			(64	%)
Total debt¹		12,853			20,063			(36	%)		12,853			20,063			(36	%)
Earnings per share²		0.08			0.25			(66	%)		0.02			0.08			(78	%)

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 15% during the fourth quarter and by 16% for 2020, due to lower volumes and prices.

Cost of sales as a percentage of sales, was flat at 59% for 2020. Extraordinary benefit in 2020 shutdown costs due to reduced scope and postponement of APO Cement Plant major kiln shutdown.

Total fuel cost was 7% lower year-over-year, while total power cost declined by 16% year-over-year for 2020 due to production optimization, and lower energy prices.

During the fourth quarter, cost of sales was at 61% of sales due to the execution of kiln shutdown works in our Solid Cement Plant.

Operating expenses, as a percentage of sales, was at 32% for 2020, compared with 31% in 2019.

Distribution expenses, as a percentage of sales, was flat at 18% for 2020. Total distribution expenses decreased by 17% year-over-year for 2020, driven by initiatives to increase operational and cost efficiency.

Selling and administrative expenses, as a percentage of sales, was at 14% for 2020, compared with 13% in 2019. Total selling and administrative expenses were lower by 11% year-over-year for year 2020. Cost control measures were implemented to reduce discretionary expenses.

Operating EBITDA for 2020 was at PHP 4.2 billion, a decrease of 1% year-over-year.

Operating EBITDA margin was at 21% for 2020, as lower volumes and prices were offset by lower costs and our efforts to contain expenses, including maintenance cost deferrals.

Controlling interest net income was at PHP 985 million for 2020, 23% lower on a year-over-year basis, due to the impact of the COVID-19 pandemic on operating earnings.

Income tax for 2020 was higher on a year-over-year basis due to the utilization of deferred tax assets (NOLCO credits) during the second half which reduced cash tax payments.

Financial expenses for 2020 reflected lower outstanding loan balances and declining interest rates. From the Stock Rights Offering proceeds raised during 1Q20, we disbursed around PHP 7.9 billion for the repayment of debt owed to CEMEX ASIA, B. V., most of which had been incurred for our Solid Cement Plant expansion project.

Total debt at the end of December 2020 was at PHP 12,853 million, of which PHP 10,787 million pertained to debt owed to BDO Unibank, Inc.


2020 Fourth Quarter Results		Page 2


Operating Results


Domestic Gray Cement	January - December			Fourth Quarter			Fourth Quarter 2020
	2020 vs. 2019			2020 vs. 2019			vs. Third Quarter 2020
Volume		(11	%)		(9	%)		(13	%)
Price in PHP		(6	%)		(7	%)		(5	%)

Our domestic cement volumes decreased by 9% year-over-year during the fourth quarter due to adverse weather conditions, amidst the ongoing pandemic.

Sequentially, our daily sales volumes were lower by 8%, after adjusting for the impact of holidays.

For 2020, domestic cement volumes decreased by 11% year-over-year mainly due to the COVID-19 pandemic.

Our domestic cement prices were 7% lower year-over-year during the fourth quarter. This movement in our composite price was driven by a higher proportion of pick-up sales, lower demand, and competitive market dynamics.

The sequential and full year change in our prices also reflect the same effects.


2020 Fourth Quarter Results		Page 3


Operating EBITDA, Free Cash Flow and Debt Information

Operating EBITDA and Free Cash Flow


				January - December									Fourth Quarter
	2020			2019			% var			2020			2019			% var
Operating earnings before other income, net		1,808			2,342			(23	%)		315			257			23	%
+ Depreciation and operating amortization		2,364			1,886						575			524

Operating EBITDA		4,172			4,227			(1	%)		891			781			14	%
- Net financial expenses		626			1,305						(81	)		237
- Maintenance capital expenditures		274			659						108			273
- Change in working capital		9			(785	)					(122	)		473
- Income taxes paid		418			575						112			184
- Other cash items (net)		30			(9	)					26			24

Free cash flow after maintenance capital expenditures		2,814			2,481			13	%		847			(411	)		N/A
- Strategic capital expenditures		3,251			3,199						919			1,159

Free cash flow		(437	)		(719	)		39	%		(72	)		(1,570	)		95	%

In millions of Philippine Pesos

Debt Information


	Fourth Quarter						Third Quarter
	2020			2019			% var			2020
Total debt⁽¹⁾⁽²⁾		12,853			20,063			(36	%)		13,510
Short term		6	%		9	%					6	%
Long term		94	%		91	%					94	%

Cash and cash equivalents		6,139			1,399			339	%		6,667

Net debt		6,714			18,664			(64	%)		6,843

Leverage Ratio⁽³⁾		3.08			3.47						3.33
Coverage Ratio⁽³⁾		5.95			3.73						5.21


	Fourth Quarter
	2020			2019
Currency denomination
U.S. dollar		4	%		30	%
Philippine peso		96	%		70	%

Interest rate
Fixed		58	%		43	%
Variable		42	%		57	%

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 Fourth 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 - December									Fourth Quarter
INCOME STATEMENT	2020			2019			% var			2020			2019			% var
Net sales		19,706,682			23,595,877			(16	%)		4,564,378			5,372,359			(15	%)
Cost of sales		(11,614,953	)		(13,913,316	)		17	%		(2,785,612	)		(3,195,374	)		13	%

Gross profit		8,091,729			9,682,561			(16	%)		1,778,766			2,176,985			(18	%)
Selling and Administrative Expenses		(2,782,058	)		(3,111,531	)		11	%		(650,158	)		(804,531	)		19	%
Distribution expenses		(3,502,053	)		(4,229,410	)		17	%		(813,158	)		(1,115,482	)		27	%

Operating earnings before other expenses, net		1,807,618			2,341,620			(23	%)		315,450			256,972			23	%
Other income (expenses), net		(30,310	)		8,544			N/A			(26,001	)		(23,615	)		(10	%)

Operating earnings (loss)		1,777,308			2,350,164			(24	%)		289,449			233,357			24	%
Financial expenses, net		(626,420	)		(1,304,540	)		52	%		80,803			(237,304	)		N/A
Foreign exchange gain (loss), net		170,224			453,125			(62	%)		37,215			325,205			(89	%)

Net income (loss) before income taxes		1,321,112			1,498,749			(12	%)		407,467			321,258			27	%
Income tax benefit (expenses)		(336,018	)		(219,174	)		(53	%)		(180,505	)		83,636			N/A

Consolidated net income (loss)		985,094			1,279,575			(23	%)		226,962			404,894			(44	%)
Non-controlling interest net income (loss)		20			23			(13	%)		4			5			(20	%)

Controlling Interest net income (loss)		985,114			1,279,598			(23	%)		226,966			404,899			(44	%)

Operating EBITDA		4,171,707			4,227,133			(1	%)		890,553			780,927			14	%
Earnings per share		0.08			0.25			(66	%)		0.02			0.08			(78	%)


	as of December 31
BALANCE SHEET	2020		2019		% Var
Total Assets		63,765,564		58,806,177		8	%
Cash and Temporary Investments		6,139,411		1,399,180		339	%
Derivative Asset		0		0
Trade Accounts Receivables		700,162		892,951		(22	%)
Other Receivables		71,551		92,993		(23	%)
Insurance Claims and Premium Receivables		87,569		445,535		(80	%)
Inventories		2,349,966		3,013,444		(22	%)
Assets Held for Sale		0		0
Other Current Assets		1,825,209		1,672,392		9	%
Current Assets		11,173,868		7,516,495		49	%
Fixed Assets		21,699,377		19,937,723		9	%
Investments in an Associate and Other Investments		14,097		14,097		0	%
Other Assets and Noncurrent Accounts Receivables		782,399		837,151		(7	%)
Advances to Contractors		1,142,685		1,606,397		(29	%)
Deferred Income Taxes—net		1,093,444		1,034,620		6	%
Goodwill		27,859,694		27,859,694		0	%
Other Assets		30,892,319		31,351,959		(1	%)

Total Liabilities		20,861,166		29,140,690		(28	%)
Current Liabilities		8,068,494		10,136,812		(20	%)
Long-Term Liabilities		10,566,642		16,549,640		(36	%)
Deferred Tax Liability		853		1,587		(46	%)
Other Liabilities		2,225,177		2,452,651		(9	%)

Consolidated Stockholders’ Equity		42,904,398		29,665,487		45	%
Non-controlling Interest		150		170		(12	%)
Stockholders’ Equity Attributable to Controlling Interest		42,904,248		29,665,317		45	%


2020 Fourth 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 - December									Fourth Quarter
INCOME STATEMENT	2020			2019			% var			2020			2019			% var
Net sales		398,160			457,595			(13	%)		94,773			105,905			(11	%)
Cost of sales		(234,672	)		(269,821	)		13	%		(57,840	)		(62,990	)		8	%

Gross profit		163,488			187,774			(13	%)		36,933			42,915			(14	%)
Selling and Administrative Expenses		(56,210	)		(60,343	)		7	%		(13,500	)		(15,861	)		15	%
Distribution expenses		(70,757	)		(82,021	)		14	%		(16,884	)		(21,989	)		23	%

Operating earnings before other expenses, net		36,521			45,410			(20	%)		6,549			5,065			29	%
Other income (expenses), net		(612	)		166			N/A			(540	)		(466	)		(16	%)

Operating earnings (loss)		35,909			45,576			(21	%)		6,009			4,599			31	%
Financial expenses, net		(12,656	)		(25,299	)		50	%		1,678			(4,678	)		N/A
Foreign exchange gain (loss), net		3,439			8,787			(61	%)		773			6,411			(88	%)

Net income (loss) before income taxes		26,692			29,064			(8	%)		8,460			6,332			34	%
Income tax benefit (expenses)		(6,789	)		(4,250	)		(60	%)		(3,748	)		1,649			N/A

Consolidated net income (loss)		19,903			24,814			(20	%)		4,712			7,981			(41	%)
Non-controlling interest net income (loss)		0			0						0			0

Controlling Interest net income (loss)		19,903			24,814			(20	%)		4,712			7,981			(41	%)

Operating EBITDA		84,286			81,977			3	%		18,491			15,394			20	%


	as of December 31
BALANCE SHEET	2020		2019		% Var
Total Assets		1,327,813		1,161,374		14	%
Cash and Temporary Investments		127,843		27,633		363	%
Derivative Asset		0		0
Trade Accounts Receivables		14,580		17,635		(17	%)
Other Receivables		1,490		1,837		(19	%)
Insurance Claims and Premium Receivables		1,823		8,799		(79	%)
Inventories		48,934		59,513		(18	%)
Assets Held for Sale		0		0
Other Current Assets		38,007		33,028		15	%
Current Assets		232,677		148,445		57	%
Fixed Assets		451,854		393,754		15	%
Investments in an Associate and Other Investments		294		278		6	%
Other Assets and Noncurrent Accounts Receivables		16,292		16,533		(1	%)
Advances to Contractors		23,795		31,725		(25	%)
Deferred Income Taxes - net		22,769		20,433		11	%
Goodwill		580,132		550,206		5	%
Other Assets		643,282		619,175		4	%

Total Liabilities		434,399		575,504		(25	%)
Current Liabilities		168,012		200,193		(16	%)
Long-Term Liabilities		220,033		326,842		(33	%)
Deferred Tax Liability		18		31		(42	%)
Other Liabilities		46,336		48,438		(4	%)

Consolidated Stockholders’ Equity		893,414		585,869		52	%
Non-controlling Interest		3		3		0	%
Stockholders’ Equity Attributable to Controlling Interest		893,411		585,866		52	%


2020 Fourth 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 earnings ¹		(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 December 31, 2020 and 2019, assets for the right-of-use amounted to PHP 1,791 million and PHP 1,962 million, respectively. In addition, financial liabilities related to lease contracts amounted to PHP 2,066 million as of December 31, 2020 and PHP 2,163 million as of December 31, 2019. These amounts of financial liabilities as of December 31, 2020 and 2019 are included in the “Debt Information” section appearing on page 4.


2020 Fourth 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 December 31, 2020 has been converted at the end of period exchange rate of 48.02 Philippine pesos per US dollar while the consolidated income statement for the whole year period ended December 31, 2020 has been converted at the January to December 2020 average exchange rate of 49.49 Philippine pesos per US dollar. On the other hand, the consolidated income statement for the three-month period ended December 31, 2020 has been converted at the October to December 2020 average exchange rate of 48.16 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 - December

Fourth Quarter

January - December

2020
average

2019
average

2020
average

2019
average

2020
End of period

2019
End of period

Philippine peso

49.49

51.57

48.16

50.73

48.02

50.64

Amounts provided in units of local currency per US dollar


2020 Fourth Quarter Results		Page 8