2010 Business Results and 2011 priorities

1. 2010 Business Results and 2011 priorities

2. 2010 Global Results • Overall picture • Net sales U$14.1 billion (£9.1 billion), 3% decrease vs 2009 • EBITDA U$2.3 billion, (£1.5 billion), 13% decrease vs 2009 • Free Cash Flow (after maintenance capital expenditures) U$512 million (£332 million), • 58% decrease vs 2009 • Operating Income U$856 million (£555 million), 27% decrease vs 2009 • 2010 highlights • Achieved U$150 million (£97 million) as part of our 2010 • savings programme • Total debt reduced by more than U$1.4 billion (£0.9 billion) • Increased the use of alternative fuels by 20% • On track to achieve a 25% reduction in specific CO2 • emissions by 2015 from 1990 levels • Volumes 2010 vs 2009 • Cement increased 1% • Readymix decreased 5% • Aggregates decreased 6%

3. 2010 UK/Europe Results UK budget – OCF* • UK volumes (2010 vs 2009) • Cement increased 1% • Readymix decreased 3% • Aggregates decreased 2% Target almost met (-9%) (+1% vs 2009) • Overall picture for Europe • Net sales U$4,793 million (£3,108 million), 11% decrease vs • 2009 • EBITDA U$434 million, (£281 million), 27% decrease vs 2009 • Main driver of demand for building materials was the • residential sector • National budget cuts affected public infrastructure spending • Bad weather affected operations in February and December • European volumes (2010 vs 2009) • Cement decreased 8% • Readymix decreased 7% • Aggregates decreased 8% *OCF – Operating Cash Flow

4. 2010 – Health & Safety Initiatives • Safety Essentials and Health Essentials Campaigns • Including: Working at Height, Safeguard your Back, Safe Systems and Driving • Driver Safety • MYSPACE, handbooks, workshops, audits and on-line training • CEMEX LEGACY Safety Leadership Programme • 8 sessions trained 130 managers/supervisors to enhance their Health & Safety leadership • Lock Out Turn Out Video • Watched by all relevant employees and contractors • Contractor management • Inductions and performance feedback • Cyclist Safety Events • Including Team Green Britain Bike Week – CEMEX trucks and advisors at UK events • Guarding and Roadways Gap Analysis • Working with the Regional Aggregates Network to look at site standards and action changes L E G A C Y CEMEX Safety Leadership Programme

5. 2010 – Health & Safety Results • Moving in the right direction: • No workplace fatalities • Lost time injuries down from 19 to 6 • 5,500 visible ‘Felt Leadership’ visits • 22,500 Near Miss/Hazard Alert reports submitted • – 94% closed off • RoSPA Occupational Health & Safety Awards: • 14 Awards including 3 President’s Awards, 3 Gold • Medals and Management of Occupational Road Risk Gold • MPA Health & Safety Best Practice Awards: • 1 Sector Award, 1 ‘Special Award’ and 20 individual • recognitions • PACS Health & Safety scores: • Aggregates 99%, Cement 94% and Readymix 97% RoSPA – Royal Society for the Prevention of Accidents, MPA – Mineral Products Association, PACS – Process Assessment Certification System

6. 2011 – Health & Safety Focus Despite our progress, we are a long way from achieving zero injuries: 2010: 250 injuries reported, 15 resulting in work restrictions • 2011 will focus on: • Safety Essentials and Health Essentials • Effective Leadership – LEGACY Health & Safety Training • Engagement – developing a Heath & Safety Team culture • LGV Driver Safety – ‘Driving Essentials’ programme, videos and bi-monthly campaigns • Contractor Safety • Eliminating the root causes of our incidents • Please:Look After Yourself, Look After Each Other…… Our improved Health & Safety performance is the result of your effort and commitment!

7. 2010-2015 Business Plan Strategic Priorities Initiatives • Attract and develop the right people • National HR plan 1 • Zero accidents • From ‘individual’ to ‘team’ Health & Safety 2 • Be the partner of choice for our customers • Foster close relationships • Consistently deliver on our promises • Be ‘easy to do business with’ • Commercial project: aligning the way we operate to • become the partner of choice • Key account management 3 • Maximise customer and product profitability • Quality of market share • Pricing strategy by business 4 • Embed continuous improvement in the organisation • Working capital initiatives • Benchmark on efficiency 5 • Optimise vertical integration • Footprint review for maximum profit 6 • Ensure the long-term viability of our businesses • Energy sourcing leadership • Reserves life • Environmental conscience • Foster relationships with our communities • Sustainability is key • Cement: Alternative fuels (mechanical • biological treatment), electricity and carbon • Readymix: Ageing asset base • Aggregates: Reserves life 7

8. 2010 UK Key Moments • Launch of 2010-2020 Biodiversity Strategy to restore 1000 hectares of habitat • Greater focus on sustainable working methods and recognition (Ecobuild) • UK Operational Improvement Projects start delivering value • New rail routes and tracks opened to save road mileage • Highest mill production at Tilbury with an output of 110 tonnes per hour • Heather the Leather (Angling’s most famous fish) carps it at 30 years • New Readymix plant opens in York • New customer products launched within Readymix and bagged cement • Launch of Lendahand – new staff volunteer scheme • New nationwide customer focus research and staff programme • EPoD (Electronic Point of Delivery) – rolled out further within Logistics

9. 2010 UK Your Moments • UK employee participation in Haiti Appeal (£5566), Sport Relief, Pakistan Flood • Disaster (£700+), Children in Need, Movember (£2340), Windsor Half Marathon, • London Marathon, Isle of Man TT course bike ride, Coast to Coast bike ride (£10k+) • Sheena Booker (Dove Holes Quarry) and Pam Watson (Moot Quarry) sky dived for • Cancer Research (£404) and Disadvantaged Kids Cumbria and SW Scotland (£740) • Kevin Penny (Surfacing) – Arctic Challenge for St John Ambulance • Gary Money (H&S) – South Wales Police vs Welsh Guards rugby match - £800 • raised for Welsh Guards Afghanistan appeal • Wayne Harmes (Asphalt) – London-Brighton bike ride for British Heart Foundation • John Batty (South Ferriby Logistics) – ‘Barcelona Bangers’, Calais-Barcelona drive – • £800+ raised for Help for Heroes • Dave ‘you shall go to the ball’ Routledge (Readymix Logistics) takes neighbour to • her high school prom in Readymix truck • Jill Blagden (Training & Development) – Manchester 10k run - £850+ raised for the • Doorstep School in memory of Dave Gordon

10. UK Operations – Aggregates Aggregates budget • 2010 – highlights • Severely impacted by volumes and transfer price changes • Aggregate Improvement Project identified over 350 opportunities, £8m of benefits • and embedded a continuous improvement culture in the business • Maintenance costs per tonne were at their lowest level on record • 2011 - priorities • Improve compliance with processes – no excuses • Focus on developing our people • Further progress with cost base – in particular through reduced energy consumption • and factoring in the CRC (Carbon Reduction Commitment) Scheme Target almost met (-9%) (-20% vs 2009) Aggregates volume Target almost met (-4%) (-2% vs 2009) Marine budget • 2010 - highlights • Commendation from Marine and Coastguard Agency for high operational standards • Entered Danish market for first time • Reduced fleet repair and maintenance costs • Increased reserves by 18m tonnes • 2011 - priorities • Match commercial opportunities with fleet capacity to secure profitable volumes – • look at going beyond the English Channel • Implement opportunities identified in Marine Improvement Project to further reduce • costs and increase revenue • Replenish and increase reserves for the long-term Target met (0%) (+24% vs 2009) Marine volume Target almost met (-3%) (-3% vs 2009)

11. UK Operations – Aggregates • 2010 - highlights • Secured 2 long term contracts worth over £50m during next 4/5 years • Investment in first UK combined tack coat sprayer and service vehicle • Reduced costs and increased margin through the Surfacing Improvement Project • Praise from Highways Agency for quick service, lowering traffic disruption levels • 2011 - priorities • Public spending review – identify opportunities and innovative solutions • Promote the use of composite construction of highways • Improve commercial relationships • Reduce Waste Surfacing budget Target not met Asphalt budget • 2010 - highlights • Achieved 1 year without a Lost Time Injury for the first time ever • RAP (Recycled Asphalt Planings) use at an all time high • Significant reduction in Logistics costs • Implemented a successful Asphalt Improvement Project, reducing costs • 2011 - priorities • Focus on improved Health, Safety and Environmental performance • Adjust the business to market conditions created by the Comprehensive Spending • Review • Improve process compliance and tight cost control • Increase selling price through discipline, product mix and targeted segmentation Target not met (-266%) (-401% vs 2009) Asphalt volume Target met (0%) (+6% vs 2009)

12. UK Operations – Readymix • 2010 – highlights • Volumes fell slightly short of expectation with some market share losses during in the • first 6 months following our tough stance on price • Significant improvement achieved in cost control with notable efficiencies in raw • materials consumption and reductions in maintenance, product liability, wash waste • and particularly haulage costs • Strengthened Commercial Development team and secured 3 major site plant projects • and a supply agreement with Thames Water • Better price stability in second half of year but still a long way behind 2009 despite • improvement in sundries collected and special products • Tremendous performance from the Dry Silo Mortar business achieving record profits • 2011 - priorities • Maintain and build on the successes of 2010 • Maintain pricing discipline • Increase sales into higher margin market segments • Continue to improve efficiency - Readymix Operations Improvement Project • Focus on haulage – further significant benefits to be gained from improving the • efficiency of the way we use our fleet • ..…every penny counts when it comes to Readymix! Readymix budget Target almost met (-14%) (+48% vs 2009) Readymix volume Target almost met (-4%) (-3% vs 2009)

13. UK Operations – Cement/Logistics/Building Products Commercial Cement budget • 2010 - highlights • Launched new ‘Premium’ packed range • Introduced imported ash sources (from Italy and Holland) • Successfully set up direct debit payment scheme • 2011 - priorities • Launch plastic packaging in packed cement • Increase and maintain prices • Make fleet and supply-chain more efficient Target almost met (-2%) (-4% vs 2009) Commercial Cement volume Target met (0%) (+1% vs 2009) • 2010 - highlights • Rugby: Better management of electricity use • Established the Cement Community Engagement Group • South Ferriby: Permission given for new Scunthorpe MBT (Mechanical Biological • Treatment) plant – to convert household waste into Climafuel • In last 2 for North Lincolnshire waste management contract bid • Rugby and South Ferriby: Significant increase in alternative fuel use – new UK record • Improved Climafuel gate fees • Tilbury: Received ISO 9001 accreditation • 2011 - priorities • Start construction of 2 new MBT plants in Scunthorpe and Rugby • Secure cheaper electricity prices • Commission South Ferriby kiln 2 with new filtering process to reduce stack dust emission Cement Operations Alternative Fuel replacement levels, South Ferriby kiln 67.5% 57.6% 70 60 50 40 30 20 10 0 28% 2005 2006 2007 2008 2009 2010

14. UK Operations – Cement/Logistics/Building Products Logistics • 2010 - highlights • Increased tipper fleet productivity by 0.6 loads per vehicle day • Managed subcontractor rates despite fuel price increases • Reduction of Aggregates driver sickness levels to 2.7% - saving £40k • Investment in 40 new cement trucks for South Ferriby • 2011 - priorities • Miles per gallon improvements in relation to fuel price hikes • Widening delivery windows • Improving CEMEX fleet and subcontractor productivity to reduce cost • Finalise implementation of supply chain management in Aggregates Building Products budget • 2010 - highlights • Moved sales prices forward despite difficult market conditions • Significant reductions in fixed costs, sales and general admin • Successful implementation of CEMEX Way SAP • 2011 - priorities • Maintain price focus • Concrete Products Continuous Improvement Project – ‘The Drive for Profit’ • Secure long term rail contracts • Continue to focus on growth opportunities for tiles in the housing market Target exceeded (61%) (+154% vs 2009)

15. Changing behaviour and culture Changing perceptions NATIONWIDE CUSTOMER FOCUS LAUNCH EVENTS INTERNAL CUSTOMER SERVICE WORKSHOPS UK HR SERVICE ALIGNMENT SERVICE BRAND BUILDING • Project launch and • introduction to • objectives • Adding detail to the • service promise • Documentation of • service behaviours and • align with HR policy • Re-positioning in UK • marketplace Customers Focus Vision Research with customers, top management and employees gave us a very clear message. Service is key to our customers and we have the opportunity to be a leader • Transform CEMEX UK into a superbly service orientated, customer intimate and relationship • driven company • Enable the business to deliver against its brand promise ‘A partner I can trust’ • Engage the entire workforce to focus behaviours and standards around the importance and • principles of delivering service excellence The most trusted service provider in our industry

16. New Commercial Offer • Improved processes • Improved tools • More targeted training for • commercial staff • New Customer Needs Analysis • What is important to • our customers • Understand their needs • Analyse our customers • ‘CEMEX journey’ • New Customer Segmentation • Who are our customers • What segments are they in • Who should we focus on • Where are the risks Commercial Strategy

17. End to End process • Objective is to give us a more stable business, a more efficient way of working and better tools and • information to do our jobs • This will be done through reviewing our main end to end processes, simplifying them and ensuring • we deliver what the business demands • Project teams have worked with • employees within 5 key workstreams • to identify needs, issues and ideas • This has led to a number of initiatives • to implement over an 18-24 month • period (started April 2010) • We will resolve the ‘big issues’ - not all • problems, but life should get easier! • Surfacing, Building Products and our Joint Ventures have been significantly brought up to date with • our systems (eg move onto SAP) • A new UK Shared Service function is being set up to leverage process efficiencies – consolidating a • number of our functions it will also align with Regional Shared Services in Hungary

18. 2010 UK Engagement Why is employee engagement important? It has a proven direct link to business performance and retaining talent How did the UK do in 2010? • Good participation levels – 42% paper survey • and 75% online • Engagement levels measured were 74% (paper • survey) and 78% (online survey) • 6% of the functional areas engagement level is • below the UK standard of 78% • Although other areas have engagement levels of • 78%+, this still needs improving Teams will now discuss the results and put in place actions plans by 31 March

19. 2010 UK Engagement Paper survey On-line survey I am proud to work at CEMEX I enjoy working at CEMEX I believe that remaining with CEMEX is the best thing for me, both professionally and personally The best way for me to advance in my career is to stay with CEMEX I always try to act in the best interests of CEMEX I am constantly looking for ways to do my job better When needed, I am willing to put in the extra effort to get a job done I rarely think about quitting my job and leaving CEMEX I am not actively looking for a job with another company Engagement Index

20. ETHOS looks after you • ETHOS is a service to support you at work so that, as a company, we follow recognised • standards and legislative procedures • ETHOSline (00 52 81 8888 4168) is there for you to seek advice • or anonymously report unethical behaviour • ETHOS Policy Centre (Plaza) provides information on: • global and local policies and procedures • working in a compliant and ethical way • access to courses related to compliance and ethics • managing (personal) ethical dilemmas • business awareness • implications of misconduct • conduct with competitors

21. Sustainability 2010 highlights • Moving in the right direction: • 23 reported incidents in 2010 vs 35 in 2009 – 33% better • Overall an 85% improvement vs 2007 and 70% vs 2008 • Awarded: • Green Dragon Environmental Standard from Groundwork • Wales to Newport Blockworks factory • Marsh Lepidoptera Award from Butterfly Conservation • to CEMEX • Green Flag Award from Keep Britain Tidy to Wick Golden • Valley local nature reserve • Environmental Standard certification, ISO 14001, increased from 56% to nearly 78% coverage • across the UK business • Achieved best range of responsibly sourced products in the UK industry (like ‘fair-trade’ coffee) • Carbon Trust Standard achieved for all UK Operations, recognising our carbon reduction and • good carbon management systems • First cement company in the world to ‘carbon label’ our products

22. Sustainability 2011 challenges CO2 management is our key priority for 2011 • New ‘Carbon Reduction Commitment’ legislation means we will have to pay • for every tonne of CO2 we emit – including offices and small Readymix plants • The next stage of the European Emissions Trading scheme for cement is very • challenging and may extend to some asphalt plants • CEMEX UK can emit up to 2m tonnes of CO2 a year from our operations and • travel – that is equal to 0.35% of the total UK society!! • Cost implications for our business are enormous - £millions a year • Every bit of energy we can save – fuel, electricity, heating – will make a real difference • We need your help to ensure that we become a lower CO2 business • Don’t forget that it’s not just about the business – it’s about your future and the future • of your families. Visit http://actonco2.direct.gov.ukor ring the Energy Saving Trust Advice line for free • on 0800 512 012to see how you can make a difference: in the home, on the move, out shopping and in • your community It’s up to you how the story ends!

23. CEMEX/RSPB Partnership • The RSPB (Royal Society for the Protection of Birds) – BirdLife in the UK • Currently a 2 year partnership which started in October 2009 • We work together as a partnership and share resources • Outputs so far include: Consultations • Employee communications and External Public Relations • Launch of a Corporate Biodiversity Strategy • Biodiversity strategy process: • Scale of opportunity • Current business systems • Expertise and resources from • across the business

24. This is CEMEX UK…….

25. ……but so is this!

26. Our vision and pledges • Vision: To be a successful, sustainable business that makes a positive contribution to people and the environment • Aims: Outstanding managers of the natural environment • Maximise on opportunities to make a positive contribution towards biodiversity • Pledges: Create and manage priority biodiversity habitats • Establish biodiversity flagship sites • Educate and empower employees to contribute towards biodiversity • conservation • Work in partnership for biodiversity • Champion biodiversity

27. How do we achieve our pledges? • Create and manage priority biodiversity habitats • UK biodiversity action plan priority habitats: Heathlands to reedbeds (36) • National and local • High quality restorations: Wildlife, local communities and the company • Ecosystem services • Create and manage 100 extra hectares of UK habitats: 1000 hectares by 2020 • Plan for 150 extra hectares of UK habitats: 1500 hectares by 2020 • CEMEX flagship sites • Valuable and inspiring: People and nature • Attenborough Nature Reserve: 250,000 visitors! • Amwell, Lackford Lakes, Dungeness, Wick Valley • Develop further flagship sites within each region: Local value and credibility • Landscape scale conservation projects: Futurescapes

28. How do we achieve our pledges? • Empowering employees • People – the cause but also the solution: A company made up of over 3500 employees • Basic biodiversity training for all employees • Specific training for planning and delivery • Established ‘Lendahand’ volunteering programme – 8 hours paid time off work a year • Working in partnership • Partnership across sectors is crucial when dealing with core sustainability issues • Conservation organisations, universities, local councils and neighbours: Dialogue • Knowledge transfer • Southam Quarry, Warwickshire: Habitat management • Increase in Small Blue butterflies

29. How do we achieve our pledges? • Champion biodiversity • Raising awareness: Internal and external audiences • Value, threats and opportunities • Reporting progress: Successes and set backs • Run biodiversity awareness days to engage local communities • Identify biodiversity champions on each site to drive delivery • Conservation Book series • New major projects – dedicated biodiversity manager • So what’s the future? • Implementation • Embracing the challenge • Building biodiversity

30. CEMEX and the City market forecast for next few years • Industry output will fall by 2% in 2011 and fall further in 2012 • Private sector construction will grow by 5% in next 2 years however • public sector construction will fall by 9% in both 2011 and 2012 • Commercial sector to rise 20% between 2009 and 2015 • Rail construction anticipated to double by 2015 despite £1 billion • saving on Crossrail • Energy construction expected to treble by 2015 due to nuclear and • renewables work

31. 2011 UK targets Operating Cash Flow (£M) +13% +12% 5.1 Winter effect +38% 59.9 48.1 47.5 2009 2010 2011B Excluding January and December Operating Cash Flow in 2010 was 21% higher than in 2009

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