Exhibit 3 - 2Q2020 Results Presentation
Exhibit 3 Second Quarter 2020 Results HARD ROCK HOTEL, UNITED STATES GOLDEN
1 CENTER, UNITED STATESExhibit 3 Second Quarter 2020 Results HARD ROCK HOTEL, UNITED STATES GOLDEN 1 CENTER, UNITED STATES
This presentation contains, and the reports we will file in the future may
contain, forward-looking statements within the meaning of the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of the U.S.
federal securities laws. 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, as of the date such forward-looking statements are made, or unless otherwise indicated, our
current expectations and projections about future events based on our 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 our expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on us or our consolidated entities, include, among other things: the
cyclical activity of the construction sector; our exposure to other sectors that impact our and our clients’ businesses, such as, but not limited to, the energy sector; availability of raw materials and related fluctuating prices; competition
in the markets in which we offer our products and services; general political, social, health, economic and business conditions in the markets in which we operate or that affect our operations and any significant economic, health, political or
social developments in those markets, as well as any inherent risks to international operations; the regulatory environment, including environmental, tax, antitrust, and acquisition-related rules and regulations; our ability to satisfy our
obligations under our material debt agreements, the indentures that govern our outstanding senior secured notes and our other debt instruments and financial obligations; the availability of short-term credit lines or working capital facilities,
which can assist us in connection with market cycles; the impact of our below investment grade debt rating on our cost of capital; loss of reputation of our brands; our ability to consummate asset sales, fully integrate newly acquired businesses,
achieve cost-savings from our cost-reduction initiatives, implement our global pricing initiatives for our products and generally meet our “A Stronger CEMEX” plan and “Operation Resilience” plan’s initiatives; the
increasing reliance on information technology infrastructure for our sales invoicing, procurement, financial statements and other processes that can adversely affect our sales and operations in the event that the infrastructure does not work as
intended, experiences technical difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our 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, our 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, including the USMCA, if it comes into effect, and NAFTA, while it is in effect, both of which Mexico
is a party to; 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 other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read this presentation and carefully consider the risks, uncertainties and other factors that affect our business. The
information contained in this presentation is subject to change without notice, and we are not obligated to publicly update or revise forward-looking statements after the date hereof or to reflect the occurrence of anticipated or unanticipated
events or circumstances. Readers should review future reports filed by CEMEX with the United States Securities and Exchange Commission. CEMEX’s “A Stronger CEMEX” plan and “Operation Resilience” plan is designed based
on CEMEX’s current beliefs and expectations. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. This presentation also includes
statistical data regarding the production, distribution, marketing and sale of cement, ready-mix concrete, clinker and aggregates. We generated some of this data internally, and some was obtained from independent industry publications and reports
that we believe to be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their reports in this presentation. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON
INTERNATIONAL FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries - 2 -This presentation contains, and the reports we will file in the future may contain, forward-looking statements within the meaning of
the U.S. federal securities laws. We intend for these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements within the meaning of the U.S. federal securities laws. 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, as of the date such forward-looking statements are made, or unless otherwise indicated, our current expectations and
projections about future events based on our 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 our
expectations. Some of the risks, uncertainties and other important factors that could cause results to differ, or that otherwise could have an impact on us or our consolidated entities, include, among other things: the cyclical activity of the
construction sector; our exposure to other sectors that impact our and our clients’ businesses, such as, but not limited to, the energy sector; availability of raw materials and related fluctuating prices; competition in the markets in which
we offer our products and services; general political, social, health, economic and business conditions in the markets in which we operate or that affect our operations and any significant economic, health, political or social developments in those
markets, as well as any inherent risks to international operations; the regulatory environment, including environmental, tax, antitrust, and acquisition-related rules and regulations; our ability to satisfy our obligations under our material debt
agreements, the indentures that govern our outstanding senior secured notes and our other debt instruments and financial obligations; the availability of short-term credit lines or working capital facilities, which can assist us in connection with
market cycles; the impact of our below investment grade debt rating on our cost of capital; loss of reputation of our brands; our ability to consummate asset sales, fully integrate newly acquired businesses, achieve cost-savings from our
cost-reduction initiatives, implement our global pricing initiatives for our products and generally meet our “A Stronger CEMEX” plan and “Operation Resilience” plan’s initiatives; the increasing reliance on information
technology infrastructure for our sales invoicing, procurement, financial statements and other processes that can adversely affect our sales and operations in the event that the infrastructure does not work as intended, experiences technical
difficulties or is subjected to cyber-attacks; changes in the economy that affect demand for consumer goods, consequently affecting demand for our 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, our 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, including the USMCA, if it comes into effect, and NAFTA, while it is in effect, both of which Mexico is a party to;
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 other risks and uncertainties described in CEMEX’s public filings. Readers are urged to read this presentation and carefully consider the risks, uncertainties and other factors that affect our business. The information contained
in this presentation is subject to change without notice, and we are not obligated to publicly update or revise forward-looking statements after the date hereof or to reflect the occurrence of anticipated or unanticipated events or circumstances.
Readers should review future reports filed by CEMEX with the United States Securities and Exchange Commission. CEMEX’s “A Stronger CEMEX” plan and “Operation Resilience” plan is designed based on CEMEX’s current
beliefs and expectations. Unless the context indicates otherwise, all references to pricing initiatives, price increases or decreases, refer to CEMEX’s prices for CEMEX’s products. This presentation also includes statistical data
regarding the production, distribution, marketing and sale of cement, ready-mix concrete, clinker and aggregates. We generated some of this data internally, and some was obtained from independent industry publications and reports that we believe to
be reliable sources. We have not independently verified this data nor sought the consent of any organizations to refer to their reports in this presentation. UNLESS OTHERWISE NOTED, ALL FIGURES ARE PRESENTED IN DOLLARS, BASED ON INTERNATIONAL
FINANCIAL REPORTING STANDARDS, AS APPLICABLE Copyright CEMEX, S.A.B. de C.V. and its subsidiaries - 2 -
Key messages for 2nd Quarter 2020 ▪ New COVID-19 operational
protocols allowed us to continue operating in most markets ▪ Geographic diversification and distinct market consumption modalities paid off ▪ Hard stop on non-essential expenses and capex resulted in higher profitability and FCF in a
declining sales environment ▪ Substantially enhanced our customer experience 1 and NPS through proven e-commerce platforms and distribution network ▪ Resilient prices in volatile world ▪ Energy tailwinds throughout portfolio
▪ Liquidity measures taken in 1H20 mitigated financial risks 1 Net Promoter Score - 3 -Key messages for 2nd Quarter 2020 ▪ New COVID-19 operational protocols allowed us to continue operating in most markets ▪ Geographic
diversification and distinct market consumption modalities paid off ▪ Hard stop on non-essential expenses and capex resulted in higher profitability and FCF in a declining sales environment ▪ Substantially enhanced our customer
experience 1 and NPS through proven e-commerce platforms and distribution network ▪ Resilient prices in volatile world ▪ Energy tailwinds throughout portfolio ▪ Liquidity measures taken in 1H20 mitigated financial risks 1 Net
Promoter Score - 3 -
Priorities rolled out in February under “Operation Resilience”
assured business continuity and improved customer experience Customer Financial Health Experience Resilience ▪ 52 new health and safety ▪ 13% increase in visits to CEMEX ▪ Maximize liquidity protocols to address Go vs. pre-COVID-19
levels ▪ Hard stop on non-essential COVID-19 ▪ Fortified supply chain and robust operating expenses, capex distribution network to meet ▪ Testing, tracking and deferrals and working capital customer demands timely case management
discipline ▪ Sharing COVID-19 safety ▪ Contact tracing to prevent ▪ Obtained important financial protocols with customers and spread of disease covenant flexibilities suppliers ▪ Outreach to employee ▪ Highest ever
global Net Promoter families to augment health Score (NPS) of 67 in 2Q20 and safety measures at home 4 - 4 -Priorities rolled out in February under “Operation Resilience” assured business continuity and improved customer experience
Customer Financial Health Experience Resilience ▪ 52 new health and safety ▪ 13% increase in visits to CEMEX ▪ Maximize liquidity protocols to address Go vs. pre-COVID-19 levels ▪ Hard stop on non-essential COVID-19 ▪
Fortified supply chain and robust operating expenses, capex distribution network to meet ▪ Testing, tracking and deferrals and working capital customer demands timely case management discipline ▪ Sharing COVID-19 safety ▪ Contact
tracing to prevent ▪ Obtained important financial protocols with customers and spread of disease covenant flexibilities suppliers ▪ Outreach to employee ▪ Highest ever global Net Promoter families to augment health Score (NPS) of
67 in 2Q20 and safety measures at home 4 - 4 -
Substantially strengthened our financial position Cash and cash-equivalents
variation 86 446 2,832 -87 1,000 1,387 Cash and cash Issuance of Drawdown Free cash Other Sources/Uses Cash and cash equivalents as 7.375% senior USD of revolving flow in 2Q20 of cash, net equivalents as of 1Q20 notes due 2027 credit facility, other
of 2Q20 credit lines and loans 5 Millions of U.S. dollars - 5 -Substantially strengthened our financial position Cash and cash-equivalents variation 86 446 2,832 -87 1,000 1,387 Cash and cash Issuance of Drawdown Free cash Other Sources/Uses Cash
and cash equivalents as 7.375% senior USD of revolving flow in 2Q20 of cash, net equivalents as of 1Q20 notes due 2027 credit facility, other of 2Q20 credit lines and loans 5 Millions of U.S. dollars - 5 -
Demand for our products was highly correlated to government COVID-19
regulations and improved as restrictions eased Cement volumes June 2Q20 Normal operations YoY % var. 2020 Industry can partially operate/Some restrictions in place CEMEX (10%) 9% Total or partial shutdown for part of quarter United States 6% 18%
Mexico (7%) 8% Europe (2%) 14% UK (36%) (14%) MEAA (24%) (1%) Philippines (31%) 8% SCAC (29%) 3% Panama (88%) (68%) Dominican Rep (32%) 10% June EBITDA grew 27% YoY on a like-to-like basis, highest monthly growth in 14 months 6 MEAA = Middle East,
Africa and Asia Map color relates to level of restrictions during 2Q20 - 6 -Demand for our products was highly correlated to government COVID-19 regulations and improved as restrictions eased Cement volumes June 2Q20 Normal operations YoY % var.
2020 Industry can partially operate/Some restrictions in place CEMEX (10%) 9% Total or partial shutdown for part of quarter United States 6% 18% Mexico (7%) 8% Europe (2%) 14% UK (36%) (14%) MEAA (24%) (1%) Philippines (31%) 8% SCAC (29%) 3% Panama
(88%) (68%) Dominican Rep (32%) 10% June EBITDA grew 27% YoY on a like-to-like basis, highest monthly growth in 14 months 6 MEAA = Middle East, Africa and Asia Map color relates to level of restrictions during 2Q20 - 6 -
Despite volume drop, cost containment efforts and pricing led to improved
EBITDA margin Net sales Operating EBITDA Operating EBITDA Free cash flow after margin maintenance capex -10% l-t-l -6% l-t-l +0.7pp -14% -11% -35% 3,400 623 19.0% 217 18.3% 554 2,912 140 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 7 Millions of U.S.
dollars - 7 -Despite volume drop, cost containment efforts and pricing led to improved EBITDA margin Net sales Operating EBITDA Operating EBITDA Free cash flow after margin maintenance capex -10% l-t-l -6% l-t-l +0.7pp -14% -11% -35% 3,400 623 19.0%
217 18.3% 554 2,912 140 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 2Q19 2Q20 7 Millions of U.S. dollars - 7 -
Achieved ~US$140 M of savings under “Operation Resilience” in
1H20 1H20 savings under Operation Resilience ▪ US$230 M Operation Resilience includes 141 US$150 M of expected savings from A Stronger 25 CEMEX, plus US$80 M COVID-19 related cost containment initiatives for 2020 20 79 15▪ YTD savings
primarily driven by SG&A 79 2 ▪ Cost savings contributed 2.4pp to 1H20 EBITDA margin 72 ▪ Savings on maintenance relate primarily to deferrals and will be largely executed in 2H20 SG&A Operations Low-cost Energy Maintenance Total
suppliers 8 Millions of U.S. dollars - 8 -Achieved ~US$140 M of savings under “Operation Resilience” in 1H20 1H20 savings under Operation Resilience ▪ US$230 M Operation Resilience includes 141 US$150 M of expected savings from A
Stronger 25 CEMEX, plus US$80 M COVID-19 related cost containment initiatives for 2020 20 79 15▪ YTD savings primarily driven by SG&A 79 2 ▪ Cost savings contributed 2.4pp to 1H20 EBITDA margin 72 ▪ Savings on maintenance
relate primarily to deferrals and will be largely executed in 2H20 SG&A Operations Low-cost Energy Maintenance Total suppliers 8 Millions of U.S. dollars - 8 -
Regional Highlights CONCRETE HOUSE, UNITED KINGDOMRegional Highlights
CONCRETE HOUSE, UNITED KINGDOM
United States: Continued demand momentum and cost savings increased
profitability and margin 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,971 1,006 Volume 8% 6% Cement % var (l-t-l) 7% 1% Price (LC) 1% (0%) Operating EBITDA 361 198 Volume 2% (5%) Ready mix % var (l-t-l) 23% 16% Price (LC) 3% 2% Operating EBITDA
margin 18.3% 19.7% Volume 3% (3%) Aggregates pp var 2.4pp 2.4pp Price (LC) 1% 0% ▪ Increase in cement volumes driven by infrastructure and residential activity ▪ Residential sector rebounding much faster than expected ▪ Stable
prices sequentially in our three core products ▪ EBITDA margin expansion due primarily to higher ready-mix price, cost reduction efforts and lower fuel costs ▪ Highest quarterly EBITDA in a decade 10 Millions of U.S. dollars - 10 -United
States: Continued demand momentum and cost savings increased profitability and margin 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,971 1,006 Volume 8% 6% Cement % var (l-t-l) 7% 1% Price (LC) 1% (0%) Operating EBITDA 361 198 Volume 2% (5%)
Ready mix % var (l-t-l) 23% 16% Price (LC) 3% 2% Operating EBITDA margin 18.3% 19.7% Volume 3% (3%) Aggregates pp var 2.4pp 2.4pp Price (LC) 1% 0% ▪ Increase in cement volumes driven by infrastructure and residential activity ▪
Residential sector rebounding much faster than expected ▪ Stable prices sequentially in our three core products ▪ EBITDA margin expansion due primarily to higher ready-mix price, cost reduction efforts and lower fuel costs ▪
Highest quarterly EBITDA in a decade 10 Millions of U.S. dollars - 10 -
Mexico: Bagged cement demand and resilient pricing cushion contraction in
formal construction activity 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,253 568 Volume (3%) (7%) Cement % var (l-t-l) (3%) (10%) Price (LC) 0% 1% Operating EBITDA 416 183 Volume (23%) (44%) Ready mix % var (l-t-l) (6%) (10%) Price (LC) 1%
(0%) Operating EBITDA margin 33.2% 32.3% Volume (19%) (35%) Aggregates pp var (1.1pp) (0.2pp) Price (LC) 4% 2% ▪ Growth in bagged cement supported by government social programs and home improvement activity ▪ Bulk cement and ready-mix
impacted by COVID-19 related restrictions on private sector, formal construction ▪ Flat sequential prices in local-currency terms despite declining volumes ▪ Initiatives to contain cost and expenses, a favorable product mix effect and
tailwinds from lower fuel prices supported EBITDA margin during the quarter 11 Millions of U.S. dollars - 11 -Mexico: Bagged cement demand and resilient pricing cushion contraction in formal construction activity 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19
2Q19 Net Sales 1,253 568 Volume (3%) (7%) Cement % var (l-t-l) (3%) (10%) Price (LC) 0% 1% Operating EBITDA 416 183 Volume (23%) (44%) Ready mix % var (l-t-l) (6%) (10%) Price (LC) 1% (0%) Operating EBITDA margin 33.2% 32.3% Volume (19%) (35%)
Aggregates pp var (1.1pp) (0.2pp) Price (LC) 4% 2% ▪ Growth in bagged cement supported by government social programs and home improvement activity ▪ Bulk cement and ready-mix impacted by COVID-19 related restrictions on private sector,
formal construction ▪ Flat sequential prices in local-currency terms despite declining volumes ▪ Initiatives to contain cost and expenses, a favorable product mix effect and tailwinds from lower fuel prices supported EBITDA margin during
the quarter 11 Millions of U.S. dollars - 11 -
EMEAA: Growth in Central Europe and Israel offset by stringent lockdown
measures in rest of markets 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,989 987 Volume (5%) (12%) Cement % var (l-t-l) (8%) (13%) Price (l-t-l) (2%) (1%) Operating EBITDA 251 147 Volume (8%) (12%) Ready mix % var (l-t-l) (13%) (20%) Price
(l-t-l) (1%) (1%) Operating EBITDA margin 12.6% 14.9% Volume (10%) (13%) Aggregates pp var (0.7pp) (1.5pp) Price (l-t-l) 1% (0%) ▪ Strong cement volume growth and pricing performance in Central Europe ▪ Significant deceleration in
construction activity in France, UK, and Spain due to strict COVID-19 restrictions; marked recovery seen in June as economies opened ▪ Philippines volumes adversely impacted by lockdown and resulting closure of Solid plant for two months
▪ Strong performance in Israel driven by continued construction activity in all sectors ▪ Construction activity in Egypt slowed due to suspension of private residential construction permits, fewer working days and mobility restrictions
related to COVID-19 Millions of U.S. dollars EMEAA: Europe, Middle East, Africa and Asia region 12 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 12 -EMEAA: Growth in Central Europe and Israel offset
by stringent lockdown measures in rest of markets 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 1,989 987 Volume (5%) (12%) Cement % var (l-t-l) (8%) (13%) Price (l-t-l) (2%) (1%) Operating EBITDA 251 147 Volume (8%) (12%) Ready mix % var (l-t-l)
(13%) (20%) Price (l-t-l) (1%) (1%) Operating EBITDA margin 12.6% 14.9% Volume (10%) (13%) Aggregates pp var (0.7pp) (1.5pp) Price (l-t-l) 1% (0%) ▪ Strong cement volume growth and pricing performance in Central Europe ▪ Significant
deceleration in construction activity in France, UK, and Spain due to strict COVID-19 restrictions; marked recovery seen in June as economies opened ▪ Philippines volumes adversely impacted by lockdown and resulting closure of Solid plant for
two months ▪ Strong performance in Israel driven by continued construction activity in all sectors ▪ Construction activity in Egypt slowed due to suspension of private residential construction permits, fewer working days and mobility
restrictions related to COVID-19 Millions of U.S. dollars EMEAA: Europe, Middle East, Africa and Asia region 12 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 12 -
SCAC: Favorable pricing and cost containment despite industry lockdowns
6M20 vs. 2Q20 vs. 6M20 2Q20 6M19 2Q19 Net Sales 651 279 Volume (19%) (29%) Cement % var (l-t-l) (19%) (30%) Price (l-t-l) 5% 6% Operating EBITDA 156 66 Volume (42%) (60%) Ready mix % var (l-t-l) (16%) (25%) Price (l-t-l) (1%) (3%) Operating EBITDA
margin 24.0% 23.6% Volume (44%) (61%) Aggregates pp var 1.0pp 1.7pp Price (l-t-l) 9% 5% ▪ Restrictions to construction activity significantly impacted our volume performance; however, improvement in back half of quarter as restrictions eased
▪ Improved sequential pricing in the region in practically all countries ▪ EBITDA margin increased 1.7pp mainly due cost reduction initiatives and higher prices, despite significant volume declines Millions of U.S. dollars SCAC: South,
Central America and the Caribbean region 13 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 13 -SCAC: Favorable pricing and cost containment despite industry lockdowns 6M20 vs. 2Q20 vs. 6M20 2Q20 6M19
2Q19 Net Sales 651 279 Volume (19%) (29%) Cement % var (l-t-l) (19%) (30%) Price (l-t-l) 5% 6% Operating EBITDA 156 66 Volume (42%) (60%) Ready mix % var (l-t-l) (16%) (25%) Price (l-t-l) (1%) (3%) Operating EBITDA margin 24.0% 23.6% Volume (44%)
(61%) Aggregates pp var 1.0pp 1.7pp Price (l-t-l) 9% 5% ▪ Restrictions to construction activity significantly impacted our volume performance; however, improvement in back half of quarter as restrictions eased ▪ Improved sequential
pricing in the region in practically all countries ▪ EBITDA margin increased 1.7pp mainly due cost reduction initiatives and higher prices, despite significant volume declines Millions of U.S. dollars SCAC: South, Central America and the
Caribbean region 13 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 13 -
2Q20 Results SOLAZ LOS CABOS, MEXICO2Q20 Results SOLAZ LOS CABOS,
MEXICO
Cost improvements, higher prices and energy tailwinds partially offset
impact of lower volumes on EBITDA EBITDA variation -6% -11% 623 85 586 -10 554 80 -32 -31 -161 2Q19 Volume Price Variable costs Fixed costs Others 2Q20 FX 2Q20 l-t-l 15 Millions of U.S. dollars - 15 -Cost improvements, higher prices and energy
tailwinds partially offset impact of lower volumes on EBITDA EBITDA variation -6% -11% 623 85 586 -10 554 80 -32 -31 -161 2Q19 Volume Price Variable costs Fixed costs Others 2Q20 FX 2Q20 l-t-l 15 Millions of U.S. dollars - 15 -
Proactive working capital management and lower capex strengthened FCF
generation January - June Second Quarter 2020 2019 % var 2020 2019 % var Average working capital days Operating EBITDA 1,088 1,169 (7%) 554 623 (11%) - Net Financial Expense 355 353 182 174 - Maintenance Capex 217 264 94 144 - Change in Working
Capital 481 570 71 44 - Taxes Paid 81 111 40 74 - Other Cash Items (net) 43 17 29 (5) -6 - Free Cash Flow (13) (26) (1) (25) Discontinued Operations Free Cash Flow after (75) (121) 38% 140 217 (35%) Maintenance Capex -11 - Strategic Capex 115 84 54
48 2Q20 2Q19 Free Cash Flow (190) (205) 7% 86 168 (49%) 16 Millions of U.S. dollars - 16 -Proactive working capital management and lower capex strengthened FCF generation January - June Second Quarter 2020 2019 % var 2020 2019 % var Average working
capital days Operating EBITDA 1,088 1,169 (7%) 554 623 (11%) - Net Financial Expense 355 353 182 174 - Maintenance Capex 217 264 94 144 - Change in Working Capital 481 570 71 44 - Taxes Paid 81 111 40 74 - Other Cash Items (net) 43 17 29 (5) -6 -
Free Cash Flow (13) (26) (1) (25) Discontinued Operations Free Cash Flow after (75) (121) 38% 140 217 (35%) Maintenance Capex -11 - Strategic Capex 115 84 54 48 2Q20 2Q19 Free Cash Flow (190) (205) 7% 86 168 (49%) 16 Millions of U.S. dollars - 16
-
Stable Net Debt under “Operation Resilience” Net Debt plus
perpetuals variation 0% 81 10,807 10,756 55 86 Net Debt plus perpetual Free cash flow in 2Q20 Debt FX effect Other Net Debt plus perpetual notes as of 1Q20 notes as of 2Q20 17 Millions of U.S. dollars - 17 -Stable Net Debt under “Operation
Resilience” Net Debt plus perpetuals variation 0% 81 10,807 10,756 55 86 Net Debt plus perpetual Free cash flow in 2Q20 Debt FX effect Other Net Debt plus perpetual notes as of 1Q20 notes as of 2Q20 17 Millions of U.S. dollars - 17
-
Healthy debt maturity profile with manageable refinancing risk Total debt
excluding perpetual notes as of June 30, 2020: US$13,196 million 2017 Facilities Agreement Other bank debt Average life of debt: Fixed Income 4.2 years Leases 2,561 2,453 Revolving 2,055 Credit 1,135 Tranche 1,497 1,205 1,061 999 809 528 28 2020
2021 2022 2023 2024 2025 2026 2027 2028 2029 18 Millions of U.S. dollars - 18 -Healthy debt maturity profile with manageable refinancing risk Total debt excluding perpetual notes as of June 30, 2020: US$13,196 million 2017 Facilities Agreement Other
bank debt Average life of debt: Fixed Income 4.2 years Leases 2,561 2,453 Revolving 2,055 Credit 1,135 Tranche 1,497 1,205 1,061 999 809 528 28 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 18 Millions of U.S. dollars - 18 -
Proactive de-risking through amendment of financial covenants ▪
Amendment was proactive response to impact of COVID-19 on the global economy and our business ▪ Obtained 100% of responding banks consent to amend our Facilities Agreement ▪ Modified leverage and coverage covenants ▪ Interest rate
margin grid adjusted to accommodate the changes to the leverage covenant ▪ Temporarily limits certain flexibilities related to capex, acquisitions, share buybacks, among others • Restrictions aligned to previously announced measures to
contain the impact of COVID-19 7.00x 7.00x 7.00x 6.75x Applicable 6.00x Leverage 5.75x 5.75x 5.75x margin (bps) 5.25x 5.25x New leverage covenant 4.75x 4.75x Above 6.00x 475 4.50x 5.50x to 5.99x 425 2.75x 2.75x 2.75x 2.50x 2.50x 2.50x 2.50x 5.00x to
5.49x 375 2.25x 2.25x 1.75x 1.75x 1.75x 1.75x Below 5.00x, margin grid remained New coverage covenant unchanged Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 & thereafter 19 - 19 -Proactive de-risking through
amendment of financial covenants ▪ Amendment was proactive response to impact of COVID-19 on the global economy and our business ▪ Obtained 100% of responding banks consent to amend our Facilities Agreement ▪ Modified leverage and
coverage covenants ▪ Interest rate margin grid adjusted to accommodate the changes to the leverage covenant ▪ Temporarily limits certain flexibilities related to capex, acquisitions, share buybacks, among others • Restrictions
aligned to previously announced measures to contain the impact of COVID-19 7.00x 7.00x 7.00x 6.75x Applicable 6.00x Leverage 5.75x 5.75x 5.75x margin (bps) 5.25x 5.25x New leverage covenant 4.75x 4.75x Above 6.00x 475 4.50x 5.50x to 5.99x 425 2.75x
2.75x 2.75x 2.50x 2.50x 2.50x 2.50x 5.00x to 5.49x 375 2.25x 2.25x 1.75x 1.75x 1.75x 1.75x Below 5.00x, margin grid remained New coverage covenant unchanged Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 &
thereafter 19 - 19 -
2020 Outlook I.E. LETICIA ARANGO, COLOMBIA2020 Outlook I.E. LETICIA
ARANGO, COLOMBIA
1 2020 FCF guidance slightly improved for energy Energy cost per ton (7%)
to (5%) of cement produced Capital ~US$700 million in total expenditures Cash taxes ~US$200 million 2 Cost of debt Increase of US$25 to US$50 million 1 Reflects CEMEX’s current expectations 21 2 Including perpetual and convertible securities -
21 -1 2020 FCF guidance slightly improved for energy Energy cost per ton (7%) to (5%) of cement produced Capital ~US$700 million in total expenditures Cash taxes ~US$200 million 2 Cost of debt Increase of US$25 to US$50 million 1 Reflects
CEMEX’s current expectations 21 2 Including perpetual and convertible securities - 21 -
What to expect ▪ Pleased with 2Q20 results and the resiliency of our
markets under unprecedented industry lockdowns ▪ Challenges remain as market visibility and pace of economic recovery is still quite low ▪ Key macro factors to watch include duration of existing fiscal and monetary stimulus measures,
pace of economic recovery, additional lockdown measures as well as infrastructure stimulus ▪ Continue to prioritize the health and safety of our employees and their families as well as our customers in all that we do ▪ Adjust our
strategy as necessary to deal with the next phase of COVID-19: the result of declining economic activity on demand in each market and the subsequent recovery ▪ Expect our COVID-19 cost initiatives, excluding maintenance, to remain in place for
rest of 2020 ▪ As we become more comfortable on outlook, we will redeploy cash to pay down debt 22 - 22 -What to expect ▪ Pleased with 2Q20 results and the resiliency of our markets under unprecedented industry lockdowns ▪
Challenges remain as market visibility and pace of economic recovery is still quite low ▪ Key macro factors to watch include duration of existing fiscal and monetary stimulus measures, pace of economic recovery, additional lockdown measures as
well as infrastructure stimulus ▪ Continue to prioritize the health and safety of our employees and their families as well as our customers in all that we do ▪ Adjust our strategy as necessary to deal with the next phase of COVID-19: the
result of declining economic activity on demand in each market and the subsequent recovery ▪ Expect our COVID-19 cost initiatives, excluding maintenance, to remain in place for rest of 2020 ▪ As we become more comfortable on outlook, we
will redeploy cash to pay down debt 22 - 22 -
Appendix DUBAI INTERNATIONAL AIRPORT, TERMINAL D, UNITED ARAB
EMIRATESAppendix DUBAI INTERNATIONAL AIRPORT, TERMINAL D, UNITED ARAB EMIRATES
Consolidated volumes and prices 6M20 vs. 6M19 2Q20 vs. 2Q19 2Q20 vs. 1Q20
Volume (l-t-l) (5%) (10%) (4%) Domestic gray Price (USD) (4%) (5%) (2%) cement Price (l-t-l) 1% 1% 1% Volume (l-t-l) (10%) (18%) (10%) Ready mix Price (USD) 1% 1% 1% Price (l-t-l) 3% 3% 2% Volume (l-t-l) (9%) (15%) (4%) Aggregates Price (USD) 2% 2%
0% Price (l-t-l) 4% 4% 1% 24 Price (l-t-l) calculated on a volume-weighted average basis at constant foreign-exchange rates - 24 -Consolidated volumes and prices 6M20 vs. 6M19 2Q20 vs. 2Q19 2Q20 vs. 1Q20 Volume (l-t-l) (5%) (10%) (4%) Domestic gray
Price (USD) (4%) (5%) (2%) cement Price (l-t-l) 1% 1% 1% Volume (l-t-l) (10%) (18%) (10%) Ready mix Price (USD) 1% 1% 1% Price (l-t-l) 3% 3% 2% Volume (l-t-l) (9%) (15%) (4%) Aggregates Price (USD) 2% 2% 0% Price (l-t-l) 4% 4% 1% 24 Price (l-t-l)
calculated on a volume-weighted average basis at constant foreign-exchange rates - 24 -
Additional information on debt and perpetual notes Other Second Quarter
First Quarter 7% 2020 2019 % var 2020 1 Euro 13,196 11,048 19% 11,701 Total debt 21% Currency Short-term 6% 7% 4% U.S. denomination dollar Long-term 94% 93% 96% 71% Perpetual notes 443 444 (0%) 441 Total debt plus perpetual notes 13,638 11,492 19%
12,143 Cash and cash equivalents 2,832 304 831% 1,387 Net debt plus perpetual notes 10,807 11,187 (3%) 10,756 Variable 2 10,790 10,805 (0%) 10,751 Consolidated funded debt 29% 2 4.57 4.00 4.40 3 Consolidated leverage ratio Interest rate 2 3.69 4.11
3.87 Consolidated coverage ratio Fixed 71% Millions of U.S. dollars 1 Includes convertible notes and leases, in accordance with International Financial Reporting Standard (IFRS) 2 Calculated in accordance with our contractual obligations under the
2017 Facilities Agreement, as amended and restated 25 3 Includes the effect of interest-rate swap instruments related to bank loans to fix floating rates with a nominal amount of US$1,000 million - 25 -Additional information on debt and perpetual
notes Other Second Quarter First Quarter 7% 2020 2019 % var 2020 1 Euro 13,196 11,048 19% 11,701 Total debt 21% Currency Short-term 6% 7% 4% U.S. denomination dollar Long-term 94% 93% 96% 71% Perpetual notes 443 444 (0%) 441 Total debt plus
perpetual notes 13,638 11,492 19% 12,143 Cash and cash equivalents 2,832 304 831% 1,387 Net debt plus perpetual notes 10,807 11,187 (3%) 10,756 Variable 2 10,790 10,805 (0%) 10,751 Consolidated funded debt 29% 2 4.57 4.00 4.40 3 Consolidated
leverage ratio Interest rate 2 3.69 4.11 3.87 Consolidated coverage ratio Fixed 71% Millions of U.S. dollars 1 Includes convertible notes and leases, in accordance with International Financial Reporting Standard (IFRS) 2 Calculated in accordance
with our contractual obligations under the 2017 Facilities Agreement, as amended and restated 25 3 Includes the effect of interest-rate swap instruments related to bank loans to fix floating rates with a nominal amount of US$1,000 million - 25
-
Additional information on debt 1 Total debt by instrument Second Quarter
First Quarter 2020 % of total 2020 % of total 15% Fixed Income 7,205 55% 6,177 53% 2017 Facilities Agreement 3,984 30% 3,832 33% Others 2,007 15% 1,692 14% 30% 55% 1 13,196 11,701 Total Debt Millions of U.S. dollars 26 1 Includes leases, in
accordance with IFRS - 26 -Additional information on debt 1 Total debt by instrument Second Quarter First Quarter 2020 % of total 2020 % of total 15% Fixed Income 7,205 55% 6,177 53% 2017 Facilities Agreement 3,984 30% 3,832 33% Others 2,007 15%
1,692 14% 30% 55% 1 13,196 11,701 Total Debt Millions of U.S. dollars 26 1 Includes leases, in accordance with IFRS - 26 -
2Q20 volume and price summary: selected countries/region Domestic gray
cement Ready mix Aggregates 2Q20 vs. 2Q19 2Q20 vs. 2Q19 2Q20 vs. 2Q19 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (7%) (16%) 1% (44%) (17%) (0%) (35%) (14%) 2% U.S. 6% (0%) (0%) (5%) 2% 2% (3%) 0%
0% Europe (2%) (2%) 1% (18%) (4%) (1%) (18%) (4%) (1%) Philippines (31%) (3%) (6%) N/A N/A N/A N/A N/A N/A Colombia (40%) (6%) 9% (57%) (10%) 3% (62%) (10%) 4% Panama (88%) (5%) (5%) (99%) 22% 22% (96%) (6%) (6%) Costa Rica (15%) (4%) (7%) (35%)
(9%) (11%) (60%) 39% 35% 27 Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates - 27 -2Q20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 2Q20 vs. 2Q19
2Q20 vs. 2Q19 2Q20 vs. 2Q19 Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Volume Price (USD) Price (LC) Mexico (7%) (16%) 1% (44%) (17%) (0%) (35%) (14%) 2% U.S. 6% (0%) (0%) (5%) 2% 2% (3%) 0% 0% Europe (2%) (2%) 1% (18%) (4%) (1%)
(18%) (4%) (1%) Philippines (31%) (3%) (6%) N/A N/A N/A N/A N/A N/A Colombia (40%) (6%) 9% (57%) (10%) 3% (62%) (10%) 4% Panama (88%) (5%) (5%) (99%) 22% 22% (96%) (6%) (6%) Costa Rica (15%) (4%) (7%) (35%) (9%) (11%) (60%) 39% 35% 27 Price (LC) for
Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates - 27 -
6M20 volume and price summary: selected countries/region Domestic gray
cement Ready mix Aggregates 6M20 vs. 6M19 6M20 vs. 6M19 6M20 vs. 6M19 Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Mexico (3%) (11%) 0% (23%) (10%) 1% (19%) (7%) 4% U.S. 8% 1% 1% 2% 3% 3% 3% 1% 1%
Europe (0%) (2%) 2% (13%) (3%) (0%) (14%) (2%) 0% Philippines (17%) (4%) (6%) N/A N/A N/A N/A N/A N/A Colombia (27%) (5%) 9% (40%) (10%) 3% (42%) (10%) 3% Panama (59%) (6%) (6%) (68%) (6%) (6%) (63%) (5%) (5%) Costa Rica (10%) (4%) (8%) (23%) (7%)
(11%) (66%) 90% 82% 28 Price (LC) for Europe calculated on a volume-weighted-average basis at constant foreign-exchange rates - 28 -6M20 volume and price summary: selected countries/region Domestic gray cement Ready mix Aggregates 6M20 vs. 6M19 6M20
vs. 6M19 6M20 vs. 6M19 Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Volumes Price (USD) Price (LC) Mexico (3%) (11%) 0% (23%) (10%) 1% (19%) (7%) 4% U.S. 8% 1% 1% 2% 3% 3% 3% 1% 1% Europe (0%) (2%) 2% (13%) (3%) (0%) (14%) (2%) 0%
Philippines (17%) (4%) (6%) N/A N/A N/A N/A N/A N/A Colombia (27%) (5%) 9% (40%) (10%) 3% (42%) (10%) 3% Panama (59%) (6%) (6%) (68%) (6%) (6%) (63%) (5%) (5%) Costa Rica (10%) (4%) (8%) (23%) (7%) (11%) (66%) 90% 82% 28 Price (LC) for Europe
calculated on a volume-weighted-average basis at constant foreign-exchange rates - 28 -
Definitions 6M20 / 6M19 Results for the first six months of the years 2020
and 2019, respectively SCAC South, Central America and the Caribbean EMEAA Europe, Middle East, Africa and Asia When providing cement volume variations, refers to domestic gray cement operations (starting in 2Q10, the base for Cement reported cement
volumes changed from total domestic cement including clinker to domestic gray cement) LC Local currency l-t-l (like to like) On a like-to-like basis adjusting for currency fluctuations and for investments/divestments when applicable Investments
incurred for the purpose of ensuring the company’s operational continuity. These include capital Maintenance capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory
expenditures capital expenditures, which are projects required to comply with governmental regulations or company policies Net Promoter Score (NPS) A core KPI that helps us to systematically measure our customer loyalty and satisfaction Operating
EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization pp Percentage points Prices All references to pricing initiatives, price increases or decreases, refer to our prices for our products Investments
incurred with the purpose of increasing the company’s profitability. These include capital expenditures on Strategic capital expenditures projects designed to increase profitability by expanding capacity, and margin improvement capital
expenditures, which are projects designed to increase profitability by reducing costs TCL Operations Trinidad Cement Limited includes Barbados, Guyana, Jamaica and Trinidad and Tobago USD U.S. dollars % var Percentage variation 29 - 29 -Definitions
6M20 / 6M19 Results for the first six months of the years 2020 and 2019, respectively SCAC South, Central America and the Caribbean EMEAA Europe, Middle East, Africa and Asia When providing cement volume variations, refers to domestic gray cement
operations (starting in 2Q10, the base for Cement reported cement volumes changed from total domestic cement including clinker to domestic gray cement) LC Local currency l-t-l (like to like) On a like-to-like basis adjusting for currency
fluctuations and for investments/divestments when applicable Investments incurred for the purpose of ensuring the company’s operational continuity. These include capital Maintenance capital expenditures on projects required to replace obsolete
assets or maintain current operational levels, and mandatory expenditures capital expenditures, which are projects required to comply with governmental regulations or company policies Net Promoter Score (NPS) A core KPI that helps us to
systematically measure our customer loyalty and satisfaction Operating EBITDA Operating earnings before other expenses, net plus depreciation and operating amortization pp Percentage points Prices All references to pricing initiatives, price
increases or decreases, refer to our prices for our products Investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on Strategic capital expenditures projects designed to increase
profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs TCL Operations Trinidad Cement Limited includes Barbados, Guyana, Jamaica and Trinidad and
Tobago USD U.S. dollars % var Percentage variation 29 - 29 -
Contact Information Investors Relations Stock Information In the United
States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1 Calendar of Events October 28, 2020 Third quarter 2020 financial results conference callContact
Information Investors Relations Stock Information In the United States NYSE (ADS): +1 877 7CX NYSE CX In Mexico Mexican Stock Exchange: +52 81 8888 4292 CEMEXCPO ir@cemex.com Ratio of CEMEXCPO to CX: 10 to 1 Calendar of Events October 28, 2020 Third
quarter 2020 financial results conference call
