Exhibit 2
2018 THIRD QUARTER RESULTS Stock Listing Information Colombian Stock Exchange S.A. Ticker: CLH Investor Relations Pablo Gutiérrez +57 (1)603-9051E-mail: pabloantonio.gutierrez@cemex.com
OPERATING AND FINANCIAL HIGHLIGHTS January - September Third Quarter 2018 2017 % var 2018 2017 % var Consolidated cement volume 4,969 5,455 (9%) 1,638 1,812 (10%) Consolidated domestic gray cement volume 4,366 4,757 (8%) 1,462 1,571 (7%) Consolidatedready-mix volume 1,945 2,197 (11%) 658 721 (9%) Consolidated aggregates volume 4,794 5,234 (8%) 1,559 1,695 (8%) Net sales 849 928 (9%) 277 302 (8%) Gross profit 346 410 (15%) 114 129 (12%) as % of net sales 40.8% 44.1% (3.3pp) 41.1% 42.7% (1.6pp) Operating earnings before other expenses, net 129 184 (30%) 41 55 (26%) as % of net sales 15.2% 19.8% (4.6pp) 14.8% 18.3% (3.5pp) Controlling interest net income (loss) 53 79 (33%) 20 28 (30%) Operating EBITDA 188 242 (22%) 60 72 (17%) as % of net sales 22.1% 26.1% (4.0pp) 21.7% 23.9% (2.2pp) Free cash flow after maintenance capital 35 77 (55%) 16 19 (13%) expenditures Free cash flow 34 46 (26%) 17 17 3% Net debt 811 881 (8%) 811 881 (8%) Total debt 834 922 (10%) 834 922 (10%) Earnings of continuing operations per share 0.10 0.13 (21%) 0.05 0.05 (6%) Shares outstanding at end of period 557 557 0% 557 557 0% Employees 4,156 4,351 (4%) 4,156 4,351 (4%) Cement and aggregates volumes in thousands of metric tons.Ready-mix volumes in thousands of cubic meters. In millions of US dollars, except volumes, percentages, employees, andper-share amounts. Shares outstanding are presented in millions. Consolidated net sales during the third quarter of 2018 declined by 8% Operating EBITDA margin during the third quarter of 2018 declined by compared to those in the third quarter of 2017. The decline is mainly 2.2pp, compared to that of the third quarter of 2017. due to lower volumes partially offset by higher cement prices. Controlling interest net income during the third quarter of 2018 Cost of sales as a percentage of net sales during the third quarter reached US$20 million, compared to US$28 million in the same quarter increased by 1.6pp from 57.3% to 58.9%, on a year-over-year basis. of 2017. The decline was primarily driven by lower gross profit and a negative effect in discontinued operations, partially offset by a positive Operating expenses as a percentage of net sales during the quarter effect in other expenses, net, as well as lower financial expenses and increased by 1.8pp from 24.5% to 26.3%, compared to those of the same taxes. period of 2017. Total debt decreased by US$61 million during the quarter, reaching Operating EBITDA during the third quarter of 2018 declined by 17% US$834 million. compared to that of the third quarter of 2017. The decline is mainly explained by lower results in Panama and Nicaragua, partially offset by improvements in Colombia.
OPERATING RESULTS Colombia January - September Third Quarter 2018 2017 % var 2018 2017 % var Net sales 399 432 (8%) 134 142 (5%) Operating EBITDA 73 83 (12%) 26 22 16% Operating EBITDA margin 18.2% 19.2% (1.0pp) 19.4% 15.9% 3.5pp In millions of US dollars, except percentages. Domestic gray cementReady-Mix Aggregates January - January - January - Third Quarter Third Quarter Third Quarter September September September Volume (10%) (8%) (13%) (11%) (13%) (12%) Price (USD) 3% 6% 2% (0%) 0% 0% Price (local currency) 2% 6% 0% (0%) (2%) 0% Year-over-year percentage variation. In Colombia, during the third quarter our domestic gray cement,ready-mix and aggregates volumes declined by 8%, 11%, and 12%, respectively, compared to those of the third quarter of 2017. For the first nine months of the year, our domestic gray cement,ready-mix and aggregates volumes decreased by 10%, 13%, and 13%, respectively, compared to those of the same period of 2017. Cement volumes increased by 7% sequentially during the third quarter reflecting the acceleration of industry demand after the elections, as well as a slight improvement in our estimated market position on a sequential basis. Our cement prices in local currency during the quarter were 6% higher on a year-over-year basis. Panama January - September Third Quarter 2018 2017 % var 2018 2017 % var Net sales 169 212 (20%) 58 71 (18%) Operating EBITDA 51 88 (42%) 16 30 (44%) Operating EBITDA margin 30.2% 41.3% (11.1pp) 28.5% 42.1% (13.6pp) In millions of US dollars, except percentages. Domestic gray cementReady-Mix Aggregates January - January - January - Third Quarter Third Quarter Third Quarter September September September Volume (20%) (16%) (18%) (9%) (7%) (13%) Price (USD) (1%) (1%) (8%) (9%) (0%) 9% Price (local currency) (1%) (1%) (8%) (9%) (0%) 9% Year-over-year percentage variation. In Panama during the third quarter our domestic gray cement,ready-mix and aggregates volumes decreased by 16%, 9%, and 13%, respectively, compared to those in the third quarter of 2017. For the first nine months of 2018, our domestic gray cement,ready-mix and aggregates volumes declined by 20%, 18%, and 7%, respectively, compared to those in the same period of 2017. Our cement volumes improved by 10% during the third quarter on a sequential basis, mostly due to a low comparison base with the previous quarter which was affected by the construction-workers strike. Our quarterly cement volumes declined on a year-over-year basis mainly due to a subdued market demand. Weakness in the residential sector was partially offset by improvements in infrastructure activity. Please note that we observed no significant imports during the quarter.
OPERATING RESULTS Costa Rica January - September Third Quarter 2018 2017 % var 2018 2017 % var Net sales 112 114 (2%) 33 37 (11%) Operating EBITDA 37 40 (8%) 11 13 (12%) Operating EBITDA margin 32.9% 35.2% (2.3pp) 34.8% 35.1% (0.3pp) In millions of US dollars, except percentages. Domestic gray cementReady-Mix Aggregates January - January - January - Third Quarter Third Quarter Third Quarter September September September Volume 6% (4%) 10% (6%) 9% 18% Price (USD) 2% 3% 2% 7% (13%) (21%) Price (local currency) 2% 3% 2% 8% (13%) (21%) Year-over-year percentage variation. In Costa Rica, during the third quarter our domestic gray cement andready-mix volumes declined by 4% and 6%, respectively, while our aggregates volumes increased by 18%, compared to those in the third quarter of 2017. For the first nine months of the year our domestic gray cement,ready-mix and aggregates volumes increased by 6%, 10% and 9%, respectively, compared to those of the same period of 2017. Our national cement consumption estimates indicate that demand declined by around 9% during the third quarter. About 2 percentage points of this decline was due to a state-workers strike that lowered activity for 21 days in September. Our cement volumes outperformed the industry during the quarter due to an improvement in our estimated market position on a year-over-year basis. However, on a sequential basis, our estimated position declined during the quarter due to a new competitor that commissioned its grinding mill in July. Our volumes during the quarter were supported by ongoing projects like the wholesale market in the North-Pacific region and the new building for the Parliament. Additionally, two relevant projects started consumption during the quarter: the new Central-Bank building and the new Coca-Cola plant. Rest of CLH January - September Third Quarter 2018 2017 % var 2018 2017 % var Net sales 180 189 (5%) 56 57 (2%) Operating EBITDA 56 68 (17%) 16 20 (21%) Operating EBITDA margin 31.2% 35.8% (4.6pp) 27.7% 34.2% (6.5pp) In millions of US dollars, except percentages. Domestic gray cementReady-Mix Aggregates January - January - January - Third Quarter Third Quarter Third Quarter September September September Volume (3%) 2% 5% 12% 6% (17%) Price (USD) (2%) (4%) (4%) (11%) (11%) (25%) Price (local currency) 1% (0%) (1%) (7%) (6%) (21%) Year-over-year percentage variation. In the Rest of CLH, region which includes our operations in Nicaragua, Guatemala and El Salvador, during the third quarter our domestic gray cement andready-mix volumes increased by 2% and 12%, respectively, while our aggregates volumes declined by 17%, compared to those in the third quarter of 2017. During the first nine months of 2018, our domestic gray cement decreased by 3%, while ourready-mix and aggregates volumes increased by 5% and 6%, respectively, compared to those in the same period of 2017. In Nicaragua, although violence in the country receded, consumer and business confidence has been severely damaged by the socio-political crisis, affecting particularly the tourism and construction sectors. During the quarter, our cement volumes were mainly supported by the continued activity in ongoing road projects from the government. With regards to Guatemala, the residential andindustrial-and-commercial sectors were the main drivers of demand during the quarter, supported by vertical-housing projects and shopping malls in Guatemala City. 2018 Third Quarter Results Page 4
OPERATING EBITDA, FREE CASH FLOW AND DEBT RELATED INFORMATION Operating EBITDA and free cash flow January - September Third Quarter 2018 2017 % var 2018 2017 % var Operating earnings before other expenses, net 129 184 (30%) 41 55 (26%) + Depreciation and operating amortization 59 58 19 17 Operating EBITDA 188 242 (22%) 60 72 (17%) - Net financial expense 43 47 14 14 - Capital expenditures for maintenance 26 36 11 13 - Change in working Capital 10 (8) 0 5 - Taxes paid 40 83 15 19 - Other cash items (Net) 32 4 4 2 - Free cash flow discontinued operations 1 4 (2) 1 Free cash flow after maintenance capital exp 35 77 (55%) 16 19 (13%) - Strategic Capital expenditures 0 30 (1) 2 Free cash flow 34 46 (26%) 17 17 3% In millions of US dollars, except percentages. Additionally, we received about 31 million dollars during the third quarter related to the gross proceeds from the sale of our cement-distribution business in Brazil. Free cash flow and the proceeds from the Brazil divestment were mainly used to reduce debt during the quarter. Net debt decreased by 45 million dollars in this period, reaching 811 million. Thenet-debt-to-EBITDA ratio dropped to 3.1 times, despite the lower EBITDA. Information on Debt Second Third Quarter Third Quarter Quarter 2018 2017 % var 2018 2018 2017 Total debt 1, 2 834 922 895 Currency denomination Short term 24% 16% 23% U.S. dollar 99% 98% Long term 76% 84% 77% Colombian peso 1% 2% Cash and cash equivalents 24 41 (43%) 39 Interest rate Net debt 811 881 (8%) 856 Fixed 60% 65% Net debt / EBITDA 3.1x 2.7x 3.2x Variable 40% 35% In millions of US dollars, except percentages. 1 Includes capital leases, in accordance with International Financial Reporting Standards (IFRS). 2 Represents the consolidated balances of CLH and subsidiaries. 2018 Third Quarter Results Page 5
OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in thousands of U.S. Dollars, except per share amounts January - September Third Quarter INCOME STATEMENT 2018 2017 % var 2018 2017 % var Net sales 848,520 928,187 (9%) 276,617 301,717 (8%) Cost of sales (502,189) (518,621) 3% (162,791) (172,784) 6% Gross profit 346,331 409,566 (15%) 113,826 128,933 (12%) Operating expenses (217,115) (225,634) 4% (72,765) (73,811) 1% Operating earnings before other expenses, net 129,216 183,932 (30%) 41,061 55,122 (26%) Other expenses, net (704) (6,047) 88% 5,321 (4,584) n/a Operating earnings 128,512 177,885 (28%) 46,382 50,538 (8%) Financial expenses (42,938) (46,592) 8% (13,784) (14,469) 5% Other income (expenses), net 10,589 (1,082) n/a 5,604 7,224 (22%) Net income before income taxes 96,163 130,211 (26%) 38,202 43,293 (12%) Income tax (33,344) (45,155) 26% (9,789) (13,036) 25% Profit of continuing operations 62,819 85,056 (26%) 28,413 30,257 (6%) Discontinued operations (9,383) (5,560) (69%) (8,659) (2,083) (316%) Consolidated net income 53,436 79,496 (33%) 19,754 28,174 (30%)Non-controlling Interest Net Income (186) (288) 35% (107) (99) (8%) Controlling Interest Net Income 53,250 79,208 (33%) 19,647 28,075 (30%) Operating EBITDA 187,739 242,089 (22%) 60,016 72,191 (17%) Earnings of continued operations per share 0.10 0.13 (21%) 0.05 0.05 (6%) Earnings of discontinued operations per share (0.02) (0.01) (69%) (0.02) (0.00) (316%) as of September 30 BALANCE SHEET 2018 2017 % var Total Assets 3,118,344 3,367,493 (7%) Cash and Temporary Investments 23,564 41,401 (43%) Trade Accounts Receivables 107,937 125,287 (14%) Other Receivables 56,064 67,647 (17%) Inventories 79,178 78,236 1% Assets held for sale 0 0 n/a Other Current Assets 21,213 14,929 42% Current Assets 287,956 327,500 (12%) Fixed Assets 1,219,337 1,265,865 (4%) Other Assets 1,611,051 1,774,128 (9%) Total Liabilities 1,570,766 1,816,889 (14%) Liabilities available for sale 0 0 n/a Other Current Liabilities 487,499 501,456 (3%) Current Liabilities 487,499 501,456 (3%) Long-Term Liabilities 1,068,446 1,300,131 (18%) Other Liabilities 14,821 15,302 (3%) Consolidated Stockholders’ Equity 1,547,578 1,550,604 (0%)Non-controlling Interest 5,624 5,146 9% Stockholders’ Equity Attributable to Controlling Interest 1,541,954 1,545,458 (0%) 2018 Third Quarter Results Page 6
OPERATING RESULTS Income statement & balance sheet CEMEX Latam Holdings, S.A. and Subsidiaries in millions of Colombian Pesos in nominal terms, except per share amounts January - September Third Quarter INCOME STATEMENT 2018 2017 % var 2018 2017 % var Net sales 2,448,660 2,732,285 (10%) 818,353 892,419 (8%) Cost of sales (1,449,217) (1,526,655) 5% (481,605) (511,062) 6% Gross profit 999,443 1,205,630 (17%) 336,745 381,357 (12%) Operating expenses (626,550) (664,192) 6% (215,271) (218,316) 1% Operating earnings before other expenses, net 372,893 541,438 (31%) 121,475 163,041 (25%) Other expenses, net (2,033) (17,802) 89% 15,743 (13,560) n/a Operating earnings 370,860 523,636 (29%) 137,217 149,481 (8%) Financial expenses (123,909) (137,151) 10% (40,779) (42,796) 5% Other income (expenses), net 30,557 (3,185) n/a 16,579 21,369 (22%) Net income before income taxes 277,508 383,300 (28%) 113,018 128,054 (12%) Income tax (96,226) (132,923) 28% (28,960) (38,561) 25% Profit of continuing operations 181,282 250,377 (28%) 84,058 89,493 (6%) Discontinued operations (27,078) (16,368) (65%) (25,616) (6,160) (316%) Consolidated net income 154,204 234,011 (34%) 58,442 83,333 (30%)Non-controlling Interest Net Income (535) (847) 37% (317) (292) (9%) Controlling Interest Net Income 153,669 233,164 (34%) 58,126 83,041 (30%) Operating EBITDA 541,776 712,633 (24%) 177,552 213,525 (17%) Earnings of continued operations per share 326 450 (28%) 151 161 (6%) Earnings of discontinued operations per share (49) (29) 65% (46) (11) (316%) as of September 30 BALANCE SHEET 2018 2017 % var Total Assets 9,268,281 9,904,032 (6%) Cash and Temporary Investments 70,035 121,762 (42%) Trade Accounts Receivables 320,807 368,479 (13%) Other Receivables 166,632 198,955 (16%) Inventories 235,333 230,095 2% Assets held for sale 0 0 n/a Other Current Assets 63,050 43,908 44% Current Assets 855,857 963,199 (11%) Fixed Assets 3,624,088 3,722,997 (3%) Other Assets 4,788,336 5,217,836 (8%) Total Liabilities 4,668,600 5,343,596 (13%) Liabilities available for sale 0 0 n/a Other Current Liabilities 1,448,936 1,474,816 (2%) Current Liabilities 1,448,936 1,474,816 (2%) Long-Term Liabilities 3,175,613 3,823,776 (17%) Other Liabilities 44,051 45,004 (2%) Consolidated Stockholders’ Equity 4,599,681 4,560,436 1%Non-controlling Interest 16,716 15,135 10% Stockholders’ Equity Attributable to Controlling Interest 4,582,964 4,545,301 1% 2018 Third Quarter Results Page 7
OPERATING RESULTS Operating Summary per Country in thousands of U.S. dollars Operating EBITDA margin as a percentage of net sales January - September Third Quarter 2018 2017 % var 2018 2017 % var NET SALES Colombia 399,249 432,019 (8%) 134,274 141,501 (5%) Panama 169,412 211,792 (20%) 57,932 70,593 (18%) Costa Rica 111,931 113,732 (2%) 32,999 37,168 (11%) Rest of CLH 180,129 189,243 (5%) 56,128 57,354 (2%) Others and intercompany eliminations (12,201) (18,599) 34% (4,716) (4,899) 4% TOTAL 848,520 928,187 (9%) 276,617 301,717 (8%) GROSS PROFIT Colombia 152,405 159,132 (4%) 53,234 47,812 11% Panama 66,844 100,085 (33%) 22,044 34,530 (36%) Costa Rica 51,503 52,981 (3%) 16,469 17,529 (6%) Rest of CLH 73,957 84,244 (12%) 21,485 24,985 (14%) Others and intercompany eliminations 1,622 13,124 (88%) 594 4,077 (85%) TOTAL 346,331 409,566 (15%) 113,826 128,933 (12%) OPERATING EARNINGS BEFORE OTHER EXPENSES, NET Colombia 51,516 63,506 (19%) 19,050 17,144 11% Panama 39,707 74,593 (47%) 12,644 25,845 (51%) Costa Rica 33,214 36,081 (8%) 10,298 11,581 (11%) Rest of CLH 51,281 63,361 (19%) 14,024 18,096 (23%) Others and intercompany eliminations (46,502) (53,609) 13% (14,955) (17,544) 15% TOTAL 129,216 183,932 (30%) 41,061 55,122 (26%) OPERATING EBITDA Colombia 72,507 82,813 (12%) 26,059 22,448 16% Panama 51,183 87,515 (42%) 16,490 29,688 (44%) Costa Rica 36,832 40,058 (8%) 11,483 13,050 (12%) Rest of CLH 56,185 67,782 (17%) 15,539 19,612 (21%) Others and intercompany eliminations (28,968) (36,079) 20% (9,555) (12,607) 24% TOTAL 187,739 242,089 (22%) 60,016 72,191 (17%) OPERATING EBITDA MARGIN Colombia 18.2% 19.2% 19.4% 15.9% Panama 30.2% 41.3% 28.5% 42.1% Costa Rica 32.9% 35.2% 34.8% 35.1% Rest of CLH 31.2% 35.8% 27.7% 34.2% TOTAL 22.1% 26.1% 21.7% 23.9% 2018 Third Quarter Results Page 8
OPERATING RESULTS Volume Summary Consolidated volume summary Cement and aggregates in thousands of metric tons Ready mix in thousands of cubic meters January - September Third Quarter 2018 2017 % var 2018 2017 % var Total cement volume 1 4,969 5,455 (9%) 1,638 1,812 (10%) Total domestic gray cement volume 4,366 4,757 (8%) 1,462 1,571 (7%) Totalready-mix volume 1,945 2,197 (11%) 658 721 (9%) Total aggregates volume 4,794 5,234 (8%) 1,559 1,695 (8%) 1 Consolidated cement volume includes domestic and export volume of gray cement, white cement, special cement, mortar and clinker.Per-country volume summary January - September Third Quarter Third Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. Second Quarter 2018 DOMESTIC GRAY CEMENT Colombia (10%) (8%) 7% Panama (20%) (16%) 10% Costa Rica 6% (4%) (20%) Rest of CLH (3%) 2% (3%)READY-MIX Colombia (13%) (11%) 4% Panama (18%) (9%) 36% Costa Rica 10% (6%) (7%) Rest of CLH 5% 12% (13%) AGGREGATES Colombia (13%) (12%) 4% Panama (7%) (13%) 4% Costa Rica 9% 18% 13% Rest of CLH 6% (17%) (66%) 2018 Third Quarter Results Page 9
OPERATING RESULTS Price Summary Variation in U.S. dollars January - September Third Quarter Third Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. Second Quarter 2018 DOMESTIC GRAY CEMENT Colombia 3% 6% (4%) Panama (1%) (1%) (1%) Costa Rica 2% 3% (2%) Rest of CLH (2%) (4%) (2%)READY-MIX Colombia 2% (0%) (5%) Panama (8%) (9%) 2% Costa Rica 2% 7% 2% Rest of CLH (4%) (11%) (2%) AGGREGATES Colombia 0% 0% (0%) Panama (0%) 9% 10% Costa Rica (13%) (21%) (10%) Rest of CLH (11%) (25%) 0% For Rest of CLH, volume-weighted average prices. Variation in local currency January - September Third Quarter Third Quarter 2018 2018 vs. 2017 2018 vs. 2017 vs. Second Quarter 2018 DOMESTIC GRAY CEMENT Colombia 2% 6% (1%) Panama (1%) (1%) (1%) Costa Rica 2% 3% (1%) Rest of CLH 1% (0%) (1%)READY-MIX Colombia 0% (0%) (2%) Panama (8%) (9%) 2% Costa Rica 2% 8% 3% Rest of CLH (1%) (7%) (0%) AGGREGATES Colombia (2%) 0% 2% Panama (0%) 9% 10% Costa Rica (13%) (21%) (9%) Rest of CLH (6%) (21%) 1% For Rest of CLH, volume-weighted average prices. 2018 Third Quarter Results Page 10
OTHER ACTIVITIES AND INFORMATION Information regarding the Tax Authority special proceeding received by CEMEX Colombia related to the income tax year 2011 On September 2012, the Colombian Tax Authority (the “Tax Authority”) notified CEMEX Colombia an ordinary request for the review of its income tax return for the fiscal year 2011 in connection with the amortization of goodwill related the acquisition of its subsidiary Lomas del Tempisque S.R.L. that was considered tax deductible in such tax return. On October 5, 2012, CEMEX Colombia filed a challenge to the arguments of the proceeding and requested the case to be dismissed. On August 9, 2013, CEMEX Colombia received from the Tax Authority a notice for verification of the income tax return, which was under audit until September 5, 2018, when CEMEX Colombia was notified of a special proceeding by the Tax Authority in which certain deductions included in such tax return of the fiscal year 2011 were rejected. The Tax Authority assessed an increase in the income tax payable by CEMEX Colombia and imposed a penalty for amounts in Colombian Pesos equivalent to approximately $28.5 million and $28.5 million, respectively. CEMEX Colombia has until December 5, 2018 to respond to the proceeding notice; and, in case an official liquidation is issued, CEMEX Colombia intends to appeal the Colombian Tax Authority’s decision and exhaust all legal recourses available, which could take between six and eight years to resolve. If a final resolution adverse to CEMEX Colombia is reached in this matter, CEMEX Colombia will have to pay the amounts determined in the official liquidation, plus the interest caused on these amounts until the payment date. In this stage of the proceedings, as of September 30, 2018, CEMEX Latam is not able to assess the likelihood of an adverse result to this matter; but if adversely resolved, this proceeding could have a material adverse impact on the operating results, liquidity or financial position of CEMEX Latam. 2018 Third Quarter Results Page 11
DEFINITIONS OF TERMS AND DISCLOSURES Methodology for translation and presentation of results INCOME STATEMENT Jan - Sep Third Quarter Under IFRS, CLH reports its consolidated results in its functional currency, which is the US Dollar, by translating the financial statements (Millions of dollars) 2018 2017 2018 2017 of foreign subsidiaries using the corresponding exchange rate at the Sales 26.8 26.1 9.1 9.8 reporting date for the balance sheet and the corresponding exchange Cost of sales and operating (28.1) (32.8) (9.6) (12.3) rates at the end of each month for the income statement. Other expenses, net (0.1) 0.0 0.0 0.0 For the reader’s convenience, Colombian peso amounts for the Interest expense, net and others (0.3) 0.2 (0.2) 0.1 consolidated entity are calculated by converting the US dollar amounts Income (loss) before income tax (1.6) (6.5) (0.6) (2.4) using the closing COP/US$ exchange rate at the reporting date for Income tax 0.3 1.0 0.0 0.3 balance sheet purposes, and the average COP/US$ exchange rate for the Loss of discontinued operations (1.3) (5.6) (0.6) (2.1) corresponding period for income statement purposes. The exchange rates are provided below. Result in sale, withholding and Fx (8.1) - (8.1) - reclassificationPer-country/region selected financial information of the income Net loss of discontinued operations (9.4) (5.6) (8.7) (2.1) statement is presented before corporate charges and royalties which are included under “other and intercompany eliminations.” Discontinued operations and assets held for sale Consolidated financial information On September 27, 2018, by means of two of its subsidiaries and after When reference is made to consolidated financial information means receiving the corresponding authorizations by local authorities, CEMEX the financial information of CLH together with its consolidated sold its operations in Brazil as part of binding agreements entered with subsidiaries. Votorantim Cimentos N/NE S.A. (“Votorantim”) on May 24, 2018. The Company’s operations in Brazil comprised mainly a water cement Presentation of financial and operating information distribution terminal located in Manaus, Amazonas state and its Individual information is provided for Colombia, Panama and Costa Rica. operating license. The selling price was approximately US$31 million including working capital adjustments and before withholding taxes. Countries in Rest of CLH include Nicaragua, Guatemala and El Salvador. CEMEX Latam’s operations for its operating segment in Brazil for the nine-month periods ended September 30, 2018 and 2017 are reported net of tax in the single line item “Discontinued Operations”. The following table presents condensed combined information of the income statements of CEMEX Latam discontinued operations in its operating segment in Brazil for the nine-month periods ended September 30, 2018 and 2017: Exchange rates January - September January - September Third Quarter 2018 EoP 2017 EoP 2018 average 2017 average 2018 average 2017 average Colombian peso 2,972.18 2,941.07 2,885.80 2,943.68 2,958.43 2,957.80 Panama balboa 1.00 1.00 1.00 1.00 1.00 1.00 Costa Rica colon 585.80 574.13 572.57 572.71 577.18 575.57 Euro 0.86 1.12 0.85 1.11 0.86 1.12 Amounts provided in units of local currency per US dollar. 2018 Third Quarter Results Page 12
DEFINITIONS OF TERMS AND DISCLOSURES Definition of terms 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 ensuring CLH’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 internal policies. Net debt equals total debt minus cash and cash equivalents. Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization. pp equals percentage points. EoP equals End of Period. Strategic capital expenditures investments incurred with the purpose of increasing CLH’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. Working capital equals operating accounts receivable (including other current assets received as payment in kind) plus historical inventories minus operating payables. 2018 Third Quarter Results Page 13