CEMEX, S.A.B. de C.V. (NYSE:CX) Q4 2020 Earnings Conference Call February 11, 2021 10:00 AM ET Company Participants Fernando Gonzalez – Chief Executive Officer Maher Al-Haffar – Chief Financial Officer Conference Call Participants Ben Theurer – Barclays Carlos Peyrelongue – Bank of America Francisco Suarez – Scotiabank Yassine Touahri – On Field Research Adrian Huerta – JPMorgan Operator Good morning, and welcome to the CEMEX Fourth Quarter 2020 Conference Call and Webcast. My name is Chuck, and I’ll be you ...

Financial Data and Key Metrics Changes - In Q1 2020, consolidated cement volumes increased by 1%, with prices improving in the range of 1% to 4% for core products, leading to a 2% like-to-like increase in sales [23] - EBITDA improved by 1%, while margins declined by 0.3 percentage points [53] - Free cash flow after maintenance CapEx was $215 million, compared to a deficit of $337 million in the same quarter last year, mainly due to lower investment in working capital [24] Business Line Data and Key Metrics Changes - In Mexico, cement volumes grew by 2% during the quarter, driven by higher consumption, with cement prices increasing by 3% sequentially [26] - In the U.S., demand and aggregate volumes increased by 10% on a like-to-like basis, while ready-mix volumes rose by 9% [33] - In Europe, domestic cement volumes were up 1% year-over-year, with solid growth in Central European markets, partially offset by declines in the UK and Spain [38] Market Data and Key Metrics Changes - The construction industry is considered essential in most markets, allowing operations to continue despite COVID-19 restrictions [8] - In South Central America and the Caribbean, regional sales and EBITDA declined mainly due to drops in Colombia and Panama [43] - In Asia, cement volumes in Egypt increased by 11%, while prices remained stable [50] Company Strategy and Development Direction - The company is focusing on safety, customer support, and preserving cash positions during the crisis [10][17] - A significant reduction in capital expenditures by $400 million was announced, representing a 60% reduction in non-committed CapEx for the rest of the year [18] - The company is monitoring demand conditions and market positions to adapt rapidly to changes [19] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of infrastructure spending to reactivate economies post-COVID-19 [7] - The company expects construction to be one of the first sectors to recover, supported by government stimulus programs [31] - There is uncertainty regarding the speed of recovery in the construction industry and cement demand for the rest of the year [30] Other Important Information - The company has suspended its share repurchase program and will not pay dividends this year [19] - Pro forma cash as of the end of the quarter reached about $1.7 billion, significantly higher than the average cash in hand during the last two years [21] - The company has initiated requests for amendments to its leverage and coverage ratios under its facilities agreement [20] Q&A Session Summary Question: Any initiatives in the U.S. or Europe for new infrastructure packages? - Management noted that there haven't been specific packages yet, but there are bipartisan conversations in the U.S. and Europe regarding potential infrastructure packages [64] Question: Can you comment on the performance in the U.S. during the last month of the quarter? - Management indicated that while there was a general slowdown in March, construction companies were speeding up job sites, leading to resilient volumes [68][74] Question: What is the volume development seen in early April across various markets? - Management reported stable to slight growth in the U.S., while Mexico experienced a decline in cement volumes but growth in bag cement demand [91][100] Question: How are margins in Mexico and the U.S. performing? - In Mexico, margins improved due to lower fuel costs, while in the U.S., strong volume growth and pricing contributed to a significant margin expansion [78][82] Question: Are there discussions with banks regarding covenants? - Management confirmed that they have approached banks for amendments to current covenants and expect continued support from the syndicate [102]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F (Mark One) ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECT ...

CEMEX, S.A.B. de C.V. (NYSE:CX) Q4 2019 Earnings Conference Call February 12, 2020 10:00 AM ET Company Participants Fernando González - Chief Executive Officer Maher Al-Haffar - Executive Vice President of Investor Relations, Communications & Public Affairs Conference Call Participants Adrian Huerta - JPMorgan Carlos Peyrelongue - Bank of America Mike Betts - Data Based Analysis Vanessa Quiroga - Credit Suisse Francisco Chávez - BBVA Yassine Touahri - On Field Investment Research Francisco Suarez - Scotiaba ...

Financial Position and Debt Management - As of December 31, 2018, total debt plus other financial obligations amounted to Ps207,724 million (U.S.$10,571 million), with 7% classified as short-term and 93% as long-term[27]. - As of December 31, 2018, 64% of total debt was denominated in U.S. Dollars, 26% in Euros, 5% in Pounds Sterling, and 2% in Philippine Pesos[27]. - The company reported a consolidated leverage ratio requirement of not exceeding 4.75:1 for certain periods, tightening to 4.25:1 for subsequent periods[64]. - The company faces significant debt maturities, including Ps116,794 million (U.S.$5,944 million) maturing after 2022, which may require refinancing[74]. - The company may not be able to generate sufficient cash to service all indebtedness or satisfy short-term liquidity needs, potentially leading to adverse actions[77]. - The company is subject to negative covenants that restrict its ability to incur additional debt, create liens, or enter into mergers[65]. - The company has pledged capital stock of subsidiaries as collateral to secure payment obligations under the 2017 Credit Agreement, with collateral valued at Ps172,617 million (U.S.$8,785 million)[73]. - The company has completed several capital markets transactions and asset disposals to improve liquidity and reduce outstanding debt under the 2009 Financing Agreement[26]. Strategic Plans and Operational Goals - The company aims to divest between U.S.$1.5 billion and U.S.$2 billion in assets by 2020 as part of its strategic plan to enhance shareholder value[28]. - The strategic plan also targets recurring operational improvements of U.S.$230 million by 2020 and a reduction of debt by U.S.$3.5 billion during the same period[28]. - The company’s strategic plan aims to fortify its position as a leading global heavy building materials company and accelerate its path to investment grade[28]. Economic and Market Conditions - The company has experienced adverse effects on operations due to economic downturns in the United States and other regions, particularly following the 2007-2008 financial crisis[24]. - The company’s operations are significantly influenced by economic conditions in various regions, including the United States, Mexico, and Europe, which may impact financial performance[31]. - Emerging markets are vulnerable to financial volatility, with risks of capital outflows and currency depreciation due to high U.S. Dollar-denominated corporate debt[38]. - Mexico's economic growth forecast for 2019 and 2020 has been reduced, which may adversely affect demand for the company's products[39]. - The ratification of the USMCA is pending, and failure to ratify could negatively impact Mexico's access to the U.S. market and investment confidence[40]. - Increased border control measures between the U.S. and Mexico could lead to higher costs and impact service quality, adversely affecting the company's operations[41]. - Economic conditions in China remain uncertain, with potential adverse impacts on demand and output due to external triggers and high credit growth[43]. - Colombia's economic activity is expected to improve slightly, but risks such as oil price fluctuations and civil works investment could affect future growth[44]. - Political instability in Nicaragua may lead to a severe economic downturn, negatively impacting the company's operations in the region[45]. - The Eurozone faces economic deceleration and risks related to negative deposit rates, which could adversely affect the company's results in Europe[46]. - Brexit uncertainty continues to impact economic activity in the UK, with potential disruptions to trade relations and increased costs for the company[48]. - General global economic conditions remain challenging, and any deterioration could adversely affect the company's financial condition and results of operations[57]. Financial Performance - Revenues for 2018 reached Ps 276,855 million, representing a 7.5% increase from Ps 257,437 million in 2017[176]. - Gross profit for 2018 was Ps 93,890 million, up from Ps 88,579 million in 2017, indicating a growth of 3.0%[176]. - Operating earnings for 2018 were Ps 27,359 million, a decrease of 4.9% compared to Ps 28,797 million in 2017[176]. - Basic earnings per share for 2018 were Ps 0.22, down from Ps 0.34 in 2017, reflecting a decline of 35.3%[176]. - Total assets as of December 31, 2018, were Ps 552,628 million, a decrease from Ps 567,691 million in 2017[176]. - Total debt plus other financial obligations decreased to Ps 207,724 million in 2018 from Ps 226,216 million in 2017, a reduction of 8.0%[176]. - Operating margin before other expenses for 2018 was 12.0%, down from 12.7% in 2017[176]. - Cash and cash equivalents decreased to Ps 6,068 million in 2018 from Ps 13,741 million in 2017, a decline of 55.8%[176]. - The ratio of Operating EBITDA to interest expense improved to 3.9 in 2018, up from 2.5 in 2017[176]. - CEMEX reported an Operating EBITDA of Ps49,266 million for the year ended December 31, 2018, compared to Ps48,600 million in 2017, reflecting a year-over-year increase of 1.4%[182]. Operational Challenges and Risks - The company is subject to risks from changing economic, environmental, political, and regulatory conditions that could adversely affect its business and financial condition[30]. - The company faces liquidity risks if unable to complete debt or equity offerings or if cash flow proves inadequate[82]. - CEMEX's financial and operational flexibility may be reduced due to more restrictive covenants imposed on sub-investment grade entities[89]. - The company has historically sought waivers and amendments to its debt instruments, which may be necessary in the future depending on compliance with financial ratios[81]. - The company faces potential adverse effects on its business due to changes in laws and regulations, which may require significant resources to adapt operations[104]. - The company relies on third-party providers for necessary approvals, licenses, and permits, and any delays or failures in obtaining these could materially impact operations[105]. - The company uses by-products from industrial processes, and any disruption in supply could lead to increased sourcing costs, adversely affecting financial performance[106]. - High energy and fuel costs are a significant part of the company's cost structure, and market volatility could adversely impact operating results[110]. - The introduction of substitutes for traditional construction materials could negatively affect demand and pricing for the company's products[112]. - The company operates in highly competitive markets, and failure to compete effectively could result in loss of market share and revenue decline[113]. - A substantial portion of the company's assets consists of intangible assets, including goodwill, which may be subject to impairment charges if market conditions deteriorate[117]. - The company is involved in various legal proceedings that could harm its reputation and operational capabilities[121]. - The effectiveness of the company's internal control over financial reporting is critical, and any weaknesses could lead to material misstatements in financial statements[122]. - The company is subject to stringent environmental laws and regulations, which could lead to substantial costs and liabilities, impacting profitability[125]. - Compliance with the Portland Cement NESHAP is ongoing, with a compliance deadline set for September 2015; failure to meet these standards could adversely affect business operations and financial condition[126]. - The CISWI rule imposes potentially more stringent emissions limits, with a compliance date established for February 2018, which could materially impact operations if certain alternative fuels are used[127]. - The company faces risks from geopolitical tensions in regions such as the Middle East and Asia, which could adversely affect operations and financial condition[134][139]. - Adverse weather conditions and natural disasters significantly impact demand for products, particularly during winter months, and can lead to material adverse effects on results of operations[143]. - Prolonged disruptions to production facilities due to various factors could adversely affect operations and financial condition[145]. - The company evaluates the need for environmental impairment insurance to mitigate financial consequences from environmental incidents, but coverage may not be sufficient[130]. - Political risks in countries of operation, including potential expropriation and nationalization, could materially affect business operations and financial condition[134]. - The company is exposed to economic risks from climate change regulations, which could lead to increased costs and impact access to capital[130]. - The company’s operations in Egypt have been adversely affected by political and social turmoil, which could continue to impact economic activity and operational stability[134]. Human Resources and Governance - The company faces potential liabilities related to health and safety issues, which could adversely impact its reputation and financial condition[150]. - Labor activism and unrest may affect the company's operations and financial results, particularly in Mexico where union activities are expected to increase[151]. - The company may face challenges in attracting and retaining qualified employees, which could hinder its operational success and growth opportunities[157]. - The board of directors and key management are critical to the company's success, and their loss could adversely affect operations and financial results[156]. - Insurance coverage may not be sufficient to cover all potential losses, including those related to cyber-security and natural disasters[155]. - The company is subject to anti-corruption and anti-bribery laws, with violations potentially leading to significant penalties and reputational damage[158]. Shareholder and Market Considerations - CEMEX, S.A.B. de C.V. must hold Series A shares in a trust for non-Mexican investors, limiting direct ownership[167]. - The CPO trust for non-Mexican investors is set to expire on September 6, 2029, potentially requiring a new trust to maintain economic interest in Series A shares[167]. - ADS holders may face dilution as they may not be able to exercise preemptive rights during future equity offerings[169]. Acquisitions and Divestitures - The company completed the sale of its operations in Austria and Hungary for €165 million (approximately $179 million) on October 31, 2015, resulting in a gain on sale of $45 million[196]. - The company sold its operations in Bangladesh and Thailand for $70 million on May 26, 2016, with a gain on sale of $24 million[196]. - The company divested its cement plant in Odessa, Texas, and other assets for $306 million on November 18, 2016[198]. - The company sold its Concrete Pipe Business for $500 million plus an additional $40 million contingent consideration based on future performance[198]. - The company increased its interest in Lehigh White Cement Company from 24.5% to 36.75% for a total consideration of $36 million[200]. - The company acquired shares of Procon Readymix Ltd for an amount equivalent to $22 million in August 2018[200]. - The company sold its Brazilian operations for $31 million on September 27, 2018[200]. Revenue Breakdown - The geographic breakdown of revenues for the year ended December 31, 2018, showed the United States contributing 24%, Mexico 21%, and the United Kingdom 7%[203]. - Revenue breakdown by line of business for the year ended December 31, 2018, indicated Cement at 43%, Ready-Mix Concrete at 40%, and Aggregates at 17%[205].