EX-99.2 3 d192917dex992.htm EXHIBIT 2 - SECOND QUARTER 2021 RESULTS FOR CEMEX HOLDINGS PHILIPPINES, INC.,

Exhibit 2

2021

SECOND 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 - June |  |  | Second Quarter |
|  | 2021 |  |  | 2020 |  |  | % var |  |  | 2021 |  |  | 2020 |  |  | % var |
Net sales |  |  | 10,894 |  |  |  | 9,623 |  |  |  | 13 | % |  |  | 5,692 |  |  |  | 3,993 |  |  |  | 43 | %
Gross profit |  |  | 4,421 |  |  |  | 3,784 |  |  |  | 17 | % |  |  | 2,398 |  |  |  | 1,430 |  |  |  | 68 | %
as % of net sales |  |  | 40.6 | % |  |  | 39.3 | % |  |  | 1.3pp |  |  |  | 42.1 | % |  |  | 35.8 | % |  |  | 6.3pp |
Operating earnings before other expenses, net |  |  | 1,292 |  |  |  | 653 |  |  |  | 98 | % |  |  | 819 |  |  |  | 132 |  |  |  | 521 | %
as % of net sales |  |  | 11.9 | % |  |  | 6.8 | % |  |  | 5.1pp |  |  |  | 14.4 | % |  |  | 3.3 | % |  |  | 11.1pp |
Controlling Interest Net Income (Loss) |  |  | 804 |  |  |  | 135 |  |  |  | 495 | % |  |  | 598 |  |  |  | 46 |  |  |  | 1203 | %
Operating EBITDA |  |  | 2,331 |  |  |  | 1,850 |  |  |  | 26 | % |  |  | 1,305 |  |  |  | 767 |  |  |  | 70 | %
as % of net sales |  |  | 21.4 | % |  |  | 19.2 | % |  |  | 2.2pp |  |  |  | 22.9 | % |  |  | 19.2 | % |  |  | 3.7pp |
Free cash flow after maintenance capital expenditures |  |  | 2,358 |  |  |  | 45 |  |  |  | 5161 | % |  |  | 1,092 |  |  |  | (267 | ) |  |  | N/A |
Free cash flow |  |  | 1,049 |  |  |  | (1,908 | ) |  |  | N/A |  |  |  | 469 |  |  |  | (768 | ) |  |  | N/A |
Net debt1 |  |  | 5,429 |  |  |  | 8,409 |  |  |  | (35 | %) |  |  | 5,429 |  |  |  | 8,409 |  |  |  | (35 | %)
Total debt1 |  |  | 11,491 |  |  |  | 13,681 |  |  |  | (16 | %) |  |  | 11,491 |  |  |  | 13,681 |  |  |  | (16 | %)
Earnings per share2 |  |  | 0.06 |  |  |  | 0.01 |  |  |  | 381 | % |  |  | 0.04 |  |  |  | 0.00 |  |  |  | 1203 | %

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 7 for more detail.

2 | In Philippine Pesos

Net sales increased, year-over-year, by 43% during the second quarter and by 13% during the first six months of 2021 due to higher volume.

Cost of sales was 59.4% of sales during the first six months of 2021, compared with 60.7% in the same period of 2020.

Total fuel cost was 1% higher year-over-year for the first half of 2021. CHP continues to use a more cost-efficient fuel mix to lower dependence on coal, the market price of which has been at its highest level in more than a decade.

Total power cost increased by 32% year-over-year for the first half of 2021 with higher electricity rates, and a rebate from the wholesale electricity spot market received in the prior year.

Operating expenses, as a percentage of sales, was 28.7% during the first six months of 2021, compared with 32.5% in the same period of 2020.

Distribution expenses was 15% of sales during the first half of 2021, a decrease of 3 pp year-over-year. This was driven primarily by lower delivered volumes and efficiency initiatives.

Selling and administrative expenses was 13% of sales during the first half of 2021, lower by 1 pp year-over-year.

Operating EBITDA for the first six months of 2021 increased by 26% year-over-year mainly due to higher volume.

Operating EBITDA margin was at 21.4% for the first half of 2021.

Controlling interest net income was at PHP 804 for the first six months of 2021 mainly due to higher operating earnings.

Financial expenses were lower by 78% year-over-year during the first half, reflecting lower debt levels and declining interest rates.

Foreign exchange losses were primarily a result of the declining Philippine Peso to U.S. Dollar exchange rate.

Year-to-date income taxes include a one-time expense from the revaluation of deferred tax assets pursuant to income tax rate reductions related to the Corporate Recovery and Tax Incentives for Enterprises or the CREATE Act, which was approved into law on March 26, 2021.

Total debt at the end of June 2021 was at PHP 11,491 million, of which PHP 9,717 million pertained to debt owed to BDO Unibank, Inc. (the “BDO Loan Facility”).

2021 Second Quarter Results |  |  |  | Page 2

Operating Results |  |

Domestic Gray Cement |  | January - June |  |  | Second Quarter |  |  | Second Quarter 2021 |
|  | 2021 vs. 2020 |  |  | 2021 vs. 2020 |  |  | vs. First Quarter 2021 |
Volume |  |  | 16 | % |  |  | 45 | % |  |  | 7 | %
Price in PHP |  |  | (4 | %) |  |  | (3 | %) |  |  | 2 | %

Our domestic cement volumes increased by 45% year-over-year during the second quarter, supported by an easing of quarantine restrictions on our industry and reflecting a low base effect due to strict lockdowns in the same period last year.

Sequentially, our domestic cement volumes increased by 7%, as favorable weather conditions aided construction activity during the second quarter.

On a year-to-date basis, our domestic cement volumes increased by 16% year-over-year. Our domestic cement prices increased by 2% sequentially, due to price adjustments implemented in 2Q21.

Year-over-year, the change in our domestic cement prices was mainly driven by higher proportion of pick-up sales.

Net of freight charges, our domestic cement prices decreased by 1% year-over-year during the second quarter and first half of 2021, mainly due to competitive market dynamics and the impact of COVID-19 on business activity.

2021 Second Quarter Results |  |  |  | Page 3

Operating EBITDA, Free Cash Flow and Debt Information |  |

Operating EBITDA and Free Cash Flow

|  | January - June |  |  | Second Quarter |
|  | 2021 |  |  | 2020 |  |  | % var |  |  | 2021 |  |  | 2020 |  |  | % var |
Operating earnings before other income, net |  |  | 1,292 |  |  |  | 653 |  |  |  | 98 | % |  |  | 819 |  |  |  | 132 |  |  |  | 521 | %
+ Depreciation and operating amortization |  |  | 1,039 |  |  |  | 1,197 |  |  |  |  |  |  |  | 486 |  |  |  | 636 |  |  |  |  |
Operating EBITDA |  |  | 2,331 |  |  |  | 1,850 |  |  |  | 26 | % |  |  | 1,305 |  |  |  | 767 |  |  |  | 70 | %
- Net financial expenses |  |  | 115 |  |  |  | 534 |  |  |  |  |  |  |  | 52 |  |  |  | 255 |  |  |  |  |
- Maintenance capital expenditures |  |  | 73 |  |  |  | 45 |  |  |  |  |  |  |  | 41 |  |  |  | (4 | ) |  |  |  |
- Change in working capital |  |  | (286 | ) |  |  | 1,019 |  |  |  |  |  |  |  | 37 |  |  |  | 687 |  |  |  |  |
- Income taxes paid |  |  | 108 |  |  |  | 205 |  |  |  |  |  |  |  | 81 |  |  |  | 83 |  |  |  |  |
- Other cash items (net) |  |  | (37 | ) |  |  | 1 |  |  |  |  |  |  |  | 1 |  |  |  | 13 |  |  |  |  |
Free cash flow after maintenance capital expenditures |  |  | 2,358 |  |  |  | 45 |  |  |  | 5161 | % |  |  | 1,092 |  |  |  | (267 | ) |  |  | N/A |
- Strategic capital expenditures |  |  | 1,309 |  |  |  | 1,953 |  |  |  |  |  |  |  | 623 |  |  |  | 501 |  |  |  |  |
Free cash flow |  |  | 1,049 |  |  |  | (1,908 | ) |  |  | N/A |  |  |  | 469 |  |  |  | (768 | ) |  |  | N/A |

In millions of Philippine Pesos

Debt Information

|  | Second Quarter |  |  |  |  |  | First Quarter |
|  | 2021 |  |  | 2020 |  |  | % var |  |  | 2021 |
Total debt(1)(2) |  |  | 11,491 |  |  |  | 13,681 |  |  |  | (16 | %) |  |  | 12,153 |
Short term |  |  | 4 | % |  |  | 6 | % |  |  |  |  |  |  | 5 | %
Long term |  |  | 96 | % |  |  | 94 | % |  |  |  |  |  |  | 95 | %
Cash and cash equivalents |  |  | 6,062 |  |  |  | 5,272 |  |  |  | 15 | % |  |  | 6,064 |
Net debt |  |  | 5,429 |  |  |  | 8,409 |  |  |  | (35 | %) |  |  | 6,089 |
Leverage Ratio(3) |  |  | 2.47 |  |  |  | 3.69 |  |  |  |  |  |  |  | 2.95 |
Coverage Ratio(3) |  |  | 7.83 |  |  |  | 4.16 |  |  |  |  |  |  |  | 6.47 |

In millions of Philippine Pesos, except percentages

(1) | U.S. dollar debt converted using end-of-period exchange rate. See Exchange Rates on page 7 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.

|  | Second Quarter |
|  | 2021 |  |  | 2020 |
Currency denomination |  |  |  |  |  |  |  |
U.S. dollar |  |  | 2 | % |  |  | 6 | %
Philippine peso |  |  | 98 | % |  |  | 94 | %
Interest rate |  |  |  |  |  |  |  |
Fixed |  |  | 62 | % |  |  | 57 | %
Variable |  |  | 38 | % |  |  | 43 | %

2021 Second 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 - June |  |  | Second Quarter |
INCOME STATEMENT |  | 2021 |  |  | 2020 |  |  | % var |  |  | 2021 |  |  | 2020 |  |  | % var |
Net sales |  |  | 10,894,093 |  |  |  | 9,623,042 |  |  |  | 13 | % |  |  | 5,691,856 |  |  |  | 3,993,126 |  |  |  | 43 | %
Cost of sales |  |  | (6,472,884 | ) |  |  | (5,838,720 | ) |  |  | (11 | %) |  |  | (3,293,587 | ) |  |  | (2,562,903 | ) |  |  | (29 | %)
Gross profit |  |  | 4,421,209 |  |  |  | 3,784,322 |  |  |  | 17 | % |  |  | 2,398,269 |  |  |  | 1,430,223 |  |  |  | 68 | %
Selling and Administrative Expenses |  |  | (1,456,414 | ) |  |  | (1,377,933 | ) |  |  | (6 | %) |  |  | (737,213 | ) |  |  | (610,477 | ) |  |  | (21 | %)
Distribution expenses |  |  | (1,672,385 | ) |  |  | (1,753,826 | ) |  |  | 5 | % |  |  | (842,491 | ) |  |  | (688,022 | ) |  |  | (22 | %)
Operating earnings before other expenses, net |  |  | 1,292,410 |  |  |  | 652,563 |  |  |  | 98 | % |  |  | 818,565 |  |  |  | 131,724 |  |  |  | 521 | %
Other income (expenses), net |  |  | 36,915 |  |  |  | (1,373 | ) |  |  | N/A |  |  |  | (1,157 | ) |  |  | (13,467 | ) |  |  | 91 | %
Operating earnings (loss) |  |  | 1,329,325 |  |  |  | 651,190 |  |  |  | 104 | % |  |  | 817,408 |  |  |  | 118,257 |  |  |  | 591 | %
Financial and other financial expenses, net |  |  | (114,952 | ) |  |  | (534,124 | ) |  |  | 78 | % |  |  | (52,374 | ) |  |  | (254,584 | ) |  |  | 79 | %
Foreign exchange gain (loss), net |  |  | (115,116 | ) |  |  | (305 | ) |  |  | (37643 | %) |  |  | (44,073 | ) |  |  | 66,106 |  |  |  | N/A |
Net income (loss) before income taxes |  |  | 1,099,257 |  |  |  | 116,761 |  |  |  | 841 | % |  |  | 720,961 |  |  |  | (70,221 | ) |  |  | N/A |
Income tax benefit (expenses) |  |  | (295,585 | ) |  |  | 18,256 |  |  |  | N/A |  |  |  | (122,772 | ) |  |  | 116,117 |  |  |  | N/A |
Consolidated net income (loss) |  |  | 803,672 |  |  |  | 135,017 |  |  |  | 495 | % |  |  | 598,189 |  |  |  | 45,896 |  |  |  | 1203 | %
Non-controlling interest net income (loss) |  |  | 14 |  |  |  | 12 |  |  |  | 17 | % |  |  | 5 |  |  |  | 3 |  |  |  | 67 | %
Controlling Interest net income (loss) |  |  | 803,686 |  |  |  | 135,029 |  |  |  | 495 | % |  |  | 598,194 |  |  |  | 45,899 |  |  |  | 1203 | %
Operating EBITDA |  |  | 2,330,991 |  |  |  | 1,849,907 |  |  |  | 26 | % |  |  | 1,304,958 |  |  |  | 767,471 |  |  |  | 70 | %
Earnings per share |  |  | 0.06 |  |  |  | 0.01 |  |  |  | 381 | % |  |  | 0.04 |  |  |  | 0.00 |  |  |  | 1203 | %

|  | as of June 30 |  |  |  |  |  | as of December 31 |
BALANCE SHEET |  | 2021 |  |  | 2020 |  |  | % Var |  |  | 2020 |  |  | % Var |
Total Assets |  |  | 64,143,452 |  |  |  | 63,348,718 |  |  |  | 1 | % |  |  | 63,760,347 |  |  |  | 1 | %
Cash and Temporary Investments |  |  | 6,062,321 |  |  |  | 5,271,916 |  |  |  | 15 | % |  |  | 6,139,411 |  |  |  | (1 | %)
Derivative Asset |  |  | 51,067 |  |  |  | 0 |  |  |  |  |  |  |  | 24,039 |  |  |  | 112 | %
Trade Accounts Receivables |  |  | 883,386 |  |  |  | 883,519 |  |  |  | (0 | %) |  |  | 700,162 |  |  |  | 26 | %
Other Receivables |  |  | 130,984 |  |  |  | 39,038 |  |  |  | 236 | % |  |  | 47,512 |  |  |  | 176 | %
Insurance Claims and Premium Receivables |  |  | 263,520 |  |  |  | 359,821 |  |  |  | (27 | %) |  |  | 87,569 |  |  |  | 201 | %
Inventories |  |  | 2,173,369 |  |  |  | 2,380,727 |  |  |  | (9 | %) |  |  | 2,349,966 |  |  |  | (8 | %)
Assets Held for Sale |  |  | 0 |  |  |  | 0 |  |  |  |  |  |  |  | 0 |  |  |  |  |
Other Current Assets |  |  | 1,984,774 |  |  |  | 1,778,188 |  |  |  | 12 | % |  |  | 1,825,209 |  |  |  | 9 | %
Current Assets |  |  | 11,549,421 |  |  |  | 10,713,209 |  |  |  | 8 | % |  |  | 11,173,868 |  |  |  | 3 | %
Fixed Assets |  |  | 22,117,102 |  |  |  | 21,248,850 |  |  |  | 4 | % |  |  | 21,699,377 |  |  |  | 2 | %
Investments in an Associate and Other Investments |  |  | 14,097 |  |  |  | 14,097 |  |  |  | 0 | % |  |  | 14,097 |  |  |  | 0 | %
Other Assets and Noncurrent Accounts Receivables |  |  | 746,896 |  |  |  | 873,674 |  |  |  | (15 | %) |  |  | 782,399 |  |  |  | (5 | %)
Advances to Contractors |  |  | 958,597 |  |  |  | 1,378,280 |  |  |  | (30 | %) |  |  | 1,142,685 |  |  |  | (16 | %)
Deferred Income Taxes - net |  |  | 897,645 |  |  |  | 1,260,914 |  |  |  | (29 | %) |  |  | 1,088,227 |  |  |  | (18 | %)
Goodwill |  |  | 27,859,694 |  |  |  | 27,859,694 |  |  |  | 0 | % |  |  | 27,859,694 |  |  |  | 0 | %
Other Assets |  |  | 30,476,929 |  |  |  | 31,386,659 |  |  |  | (3 | %) |  |  | 30,887,102 |  |  |  | (1 | %)
Total Liabilities |  |  | 20,274,725 |  |  |  | 21,131,517 |  |  |  | (4 | %) |  |  | 20,849,759 |  |  |  | (3 | %)
Current Liabilities |  |  | 8,643,137 |  |  |  | 7,511,370 |  |  |  | 15 | % |  |  | 8,169,894 |  |  |  | 6 | %
Long-Term Liabilities |  |  | 9,579,624 |  |  |  | 11,123,722 |  |  |  | (14 | %) |  |  | 10,566,642 |  |  |  | (9 | %)
Deferred Tax Liability |  |  | 858 |  |  |  | 1,453 |  |  |  | (41 | %) |  |  | 853 |  |  |  | 1 | %
Other Liabilities |  |  | 2,051,106 |  |  |  | 2,494,972 |  |  |  | (18 | %) |  |  | 2,112,370 |  |  |  | (3 | %)
Consolidated Stockholders’ Equity |  |  | 43,868,727 |  |  |  | 42,217,201 |  |  |  | 4 | % |  |  | 42,910,588 |  |  |  | 2 | %
Non-controlling Interest |  |  | 136 |  |  |  | 158 |  |  |  | (14 | %) |  |  | 150 |  |  |  | (9 | %)
Stockholders’ Equity Attributable to Controlling Interest |  |  | 43,868,591 |  |  |  | 42,217,043 |  |  |  | 4 | % |  |  | 42,910,438 |  |  |  | 2 | %

2021 Second 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 - June |  |  | Second Quarter |
INCOME STATEMENT |  | 2021 |  |  | 2020 |  |  | % var |  |  | 2021 |  |  | 2020 |  |  | % var |
Net sales |  |  | 225,554 |  |  |  | 190,354 |  |  |  | 18 | % |  |  | 118,092 |  |  |  | 79,418 |  |  |  | 49 | %
Cost of sales |  |  | (134,016 | ) |  |  | (115,496 | ) |  |  | (16 | %) |  |  | (68,334 | ) |  |  | (50,973 | ) |  |  | (34 | %)
Gross profit |  |  | 91,538 |  |  |  | 74,858 |  |  |  | 22 | % |  |  | 49,758 |  |  |  | 28,445 |  |  |  | 75 | %
Selling and Administrative Expenses |  |  | (30,154 | ) |  |  | (27,258 | ) |  |  | (11 | %) |  |  | (15,295 | ) |  |  | (12,143 | ) |  |  | (26 | %)
Distribution expenses |  |  | (34,626 | ) |  |  | (34,693 | ) |  |  | 0 | % |  |  | (17,480 | ) |  |  | (13,684 | ) |  |  | (28 | %)
Operating earnings before other expenses, net |  |  | 26,758 |  |  |  | 12,907 |  |  |  | 107 | % |  |  | 16,983 |  |  |  | 2,618 |  |  |  | 549 | %
Other income (expenses), net |  |  | 764 |  |  |  | (27 | ) |  |  | N/A |  |  |  | (24 | ) |  |  | (268 | ) |  |  | 91 | %
Operating earnings (loss) |  |  | 27,522 |  |  |  | 12,880 |  |  |  | 114 | % |  |  | 16,959 |  |  |  | 2,350 |  |  |  | 622 | %
Financial and other financial expenses, net |  |  | (2,380 | ) |  |  | (10,566 | ) |  |  | 77 | % |  |  | (1,087 | ) |  |  | (5,063 | ) |  |  | 79 | %
Foreign exchange gain (loss), net |  |  | (2,383 | ) |  |  | (6 | ) |  |  | (39617 | %) |  |  | (914 | ) |  |  | 1,315 |  |  |  | N/A |
Net income (loss) before income taxes |  |  | 22,759 |  |  |  | 2,308 |  |  |  | 886 | % |  |  | 14,958 |  |  |  | (1,398 | ) |  |  | N/A |
Income tax benefit (expenses) |  |  | (6,120 | ) |  |  | 361 |  |  |  | N/A |  |  |  | (2,547 | ) |  |  | 2,309 |  |  |  | N/A |
Consolidated net income (loss) |  |  | 16,639 |  |  |  | 2,669 |  |  |  | 523 | % |  |  | 12,411 |  |  |  | 911 |  |  |  | 1262 | %
Non-controlling interest net income (loss) |  |  | 0 |  |  |  | 0 |  |  |  |  |  |  |  | 0 |  |  |  | 0 |  |  |  |  |
Controlling Interest net income (loss) |  |  | 16,639 |  |  |  | 2,669 |  |  |  | 523 | % |  |  | 12,411 |  |  |  | 911 |  |  |  | 1262 | %
Operating EBITDA |  |  | 48,262 |  |  |  | 36,593 |  |  |  | 32 | % |  |  | 27,075 |  |  |  | 15,264 |  |  |  | 77 | %

|  | as of June 30 |  |  |  |  |  | as of December 31 |
BALANCE SHEET |  | 2021 |  |  | 2020 |  |  | % Var |  |  | 2020 |  |  | % Var |
Total Assets |  |  | 1,314,412 |  |  |  | 1,271,298 |  |  |  | 3 | % |  |  | 1,327,705 |  |  |  | (1 | %)
Cash and Temporary Investments |  |  | 124,228 |  |  |  | 105,798 |  |  |  | 17 | % |  |  | 127,843 |  |  |  | (3 | %)
Derivative Asset |  |  | 1,046 |  |  |  | 0 |  |  |  |  |  |  |  | 501 |  |  |  | 109 | %
Trade Accounts Receivables |  |  | 18,102 |  |  |  | 17,731 |  |  |  | 2 | % |  |  | 14,580 |  |  |  | 24 | %
Other Receivables |  |  | 2,684 |  |  |  | 783 |  |  |  | 243 | % |  |  | 989 |  |  |  | 171 | %
Insurance Claims and Premium Receivables |  |  | 5,400 |  |  |  | 7,221 |  |  |  | (25 | %) |  |  | 1,823 |  |  |  | 196 | %
Inventories |  |  | 44,536 |  |  |  | 47,777 |  |  |  | (7 | %) |  |  | 48,934 |  |  |  | (9 | %)
Assets Held for Sale |  |  | 0 |  |  |  | 0 |  |  |  |  |  |  |  | 0 |  |  |  |  |
Other Current Assets |  |  | 40,672 |  |  |  | 35,685 |  |  |  | 14 | % |  |  | 38,007 |  |  |  | 7 | %
Current Assets |  |  | 236,668 |  |  |  | 214,995 |  |  |  | 10 | % |  |  | 232,677 |  |  |  | 2 | %
Fixed Assets |  |  | 453,219 |  |  |  | 426,427 |  |  |  | 6 | % |  |  | 451,854 |  |  |  | 0 | %
Investments in an Associate and Other Investments |  |  | 289 |  |  |  | 283 |  |  |  | 2 | % |  |  | 294 |  |  |  | (2 | %)
Other Assets and Noncurrent Accounts Receivables |  |  | 15,304 |  |  |  | 17,534 |  |  |  | (13 | %) |  |  | 16,292 |  |  |  | (6 | %)
Advances to Contractors |  |  | 19,643 |  |  |  | 27,660 |  |  |  | (29 | %) |  |  | 23,795 |  |  |  | (17 | %)
Deferred Income Taxes - net |  |  | 18,394 |  |  |  | 25,304 |  |  |  | (27 | %) |  |  | 22,661 |  |  |  | (19 | %)
Goodwill |  |  | 570,895 |  |  |  | 559,095 |  |  |  | 2 | % |  |  | 580,132 |  |  |  | (2 | %)
Other Assets |  |  | 624,525 |  |  |  | 629,876 |  |  |  | (1 | %) |  |  | 643,174 |  |  |  | (3 | %)
Total Liabilities |  |  | 415,467 |  |  |  | 424,071 |  |  |  | (2 | %) |  |  | 434,163 |  |  |  | (4 | %)
Current Liabilities |  |  | 177,114 |  |  |  | 150,740 |  |  |  | 17 | % |  |  | 170,125 |  |  |  | 4 | %
Long-Term Liabilities |  |  | 196,304 |  |  |  | 223,233 |  |  |  | (12 | %) |  |  | 220,033 |  |  |  | (11 | %)
Deferred Tax Liability |  |  | 18 |  |  |  | 29 |  |  |  | (38 | %) |  |  | 18 |  |  |  | 0 | %
Other Liabilities |  |  | 42,031 |  |  |  | 50,069 |  |  |  | (16 | %) |  |  | 43,987 |  |  |  | (4 | %)
Consolidated Stockholders’ Equity |  |  | 898,949 |  |  |  | 847,225 |  |  |  | 6 | % |  |  | 893,542 |  |  |  | 1 | %
Non-controlling Interest |  |  | 3 |  |  |  | 3 |  |  |  | 0 | % |  |  | 3 |  |  |  | 0 | %
Stockholders’ Equity Attributable to Controlling Interest |  |  | 898,946 |  |  |  | 847,222 |  |  |  | 6 | % |  |  | 893,539 |  |  |  | 1 | %

2021 Second Quarter Results |  |  |  | Page 6

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 2021 and 2020 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 June 30, 2021 has been converted at the end of period exchange rate of 48.80 Philippine pesos per US dollar while the consolidated income statement for the six-month period ended June 30, 2021 has been converted at the January to June 2021 average exchange rate of 48.30 Philippine pesos per US dollar. On the other hand, the consolidated income statement for the three-month period ended June 30, 2021 has been converted at the April to June 2021 average exchange rate of 48.20 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.

|  | January - June |  |  | Second Quarter |  |  | January - June |
|  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |  |  | 2021 |  |  | 2020 |
Exchange Rates |  | average |  |  | average |  |  | average |  |  | average |  |  | End of period |  |  | End of period |
Philippine peso |  |  | 48.30 |  |  |  | 50.55 |  |  |  | 48.20 |  |  |  | 50.28 |  |  |  | 48.80 |  |  |  | 49.83 |

Amounts provided in units of local currency per US dollar

2021 Second Quarter Results |  |  |  | Page 7

Disclaimer |  |

This report contains forward-looking statements. In some cases, these statements can be identified by the use of forward-looking words such as “may,” “assume,” “might,” “should,” “could,” “continue,” “would,” “can,” “consider,” “anticipate,” “estimate,” “expect,” “envision,” “plan,” “believe,” “foresee,” “predict,” “potential” “target,” “strategy,” “intend” or other similar words. These forward-looking statements reflect current expectations and projections about future events of CEMEX Holdings Philippines, Inc. (“CHP”) based on CHP’s knowledge of present facts and circumstances and assumptions about future events. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially from CHP’s expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on CHP or its subsidiaries (together, the “CHP Group”), include, but are not limited to, the cyclical activity of the construction sector; the CHP Group’s exposure to other sectors that impact the CHP Group’s business, such as, but not limited to, the energy sector; general political, social, economic, health and business conditions in the markets in which the CHP Group operates; competition in the markets in which the CHP Group offers its products and services; the regulatory environment, including environmental, tax, antitrust and acquisition-related rules and regulations; the CHP Group’s ability to satisfy its debt obligations and the ability of CEMEX, S.A.B. de C.V. (“CEMEX”), the ultimate parent company of the major shareholder of CHP, to satisfy CEMEX’s obligations under its material debt agreements, the indentures that govern CEMEX’s senior secured notes and CEMEX’s other debt instruments; the CHP Group’s and CEMEX’s ability to refinance their existing indebtedness; the impact of CEMEX’s below investment grade debt rating on the CHP Group’s and CEMEX’s cost of capital; the CHP Group’s and CEMEX’s ability to consummate asset sales and fully integrate newly acquired businesses; achieve cost-savings from the CHP Group’s cost-reduction initiatives and implement the CHP Group’s pricing initiatives for the CHP Group’s products; the increasing reliance on information technology infrastructure for the CHP Group’s invoicing, procurement, financial statements and other processes that can adversely affect operations in the event that the infrastructure does not work as intended, experiences technical difficulties or is subject to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for the CHP Group’s products and services; the impact of pandemics, epidemics or outbreaks of infectious diseases and the response of governments and other third parties, including with respect to COVID-19, which have affected and may continue to adversely affect, among other matters, supply chains, international operations, availability of liquidity, investor confidence and consumer spending, as well as availability of, and demand for, the CHP Group’s products and services; weather conditions, including but not limited to, excessive rain and snow, and disasters such as earthquakes and floods; trade barriers, including tariffs or import taxes and changes in existing trade policies or changes to, or withdrawals from free trade agreements; terrorist and organized criminal activities as well as geopolitical events; declarations of insolvency or bankruptcy or becoming subject to similar proceedings; natural disasters and other unforeseen events (including global health hazards such as COVID-19); and the other risks and uncertainties described in CHP’s public filings. Readers are urged to read this document and carefully consider the risks, uncertainties and other factors that affect the CHP Group’s business. The information contained in this report is subject to change without notice, and CHP is not obligated to publicly update or revise forward-looking statements. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to the CHP Group’s prices for products sold or distributed by the CHP Group.

Copyright CEMEX Holdings Philippines, Inc. and its subsidiaries

2021 Second Quarter Results |  |  |  | Page 8