6-K - CX - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the monthof February 2025

Commission File Number: 001-14946

Cemex, S.A.B. de C.V.

(Translation of Registrant’s name into English)

AvenidaRicardo Margáin Zozaya #325, Colonia Valle del Campestre,

San Pedro Garza García, Nuevo León 66265,México

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F ☒ Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Contents

1.	Cemex, S.A.B. de C.V.’s (NYSE: CX) (“Cemex”) and its subsidiaries’ consolidated<br> financial statements for the years ended December 31, 2024, 2023, and 2022.
2.	Cemex’s separate financial statements for the years ended December <br>31, 2024, 2023, and 2022.
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Cemex’s consolidated and separate financial statements are subject to approval by Cemex’s shareholders at the Ordinary General Shareholders’ Meeting to be held on March 25, 2025.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, Cemex, S.A.B. de C.V. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Cemex, S.A.B. de C.V.
	(Registrant)
Date: February 21, 2025	By:	/s/ Rafael Garza Lozano
		Name:	Rafael Garza Lozano
		Title:	Chief Comptroller

EXHIBIT INDEX

EXHIBIT<br>NO.	DESCRIPTION
1.	Cemex, S.A.B. de C.V.’s (NYSE: CX) (“Cemex”) and its subsidiaries’ consolidated financial statements for the years ended December <br>31, 2024, 2023, and 2022, subject to approval by Cemex’s shareholders at the Ordinary General Shareholders’ Meeting to be held on March 25, 2025.
2.	Cemex’s separate financial statements for the years ended December <br>31, 2024, 2023, and 2022, subject to approval by Cemex’s shareholders at the Ordinary General Shareholders’ Meeting to be held on March 25, 2025.

EX-1

Exhibit 1

INDEX TO AUDITED CONSOLIDATED FINANCIAL STATEMENTS

Cemex, S.A.B. de C.V. and Subsidiaries:
Consolidated Statements of Income for the years ended December 31, 2024, 2023 and<br>2022	1
Consolidated Statements of Comprehensive Income for the years ended December 31, 2024, 2023<br>and 2022	2
Consolidated Statements of Financial Position as of December 31, 2024, 2023 and 2022	3
Consolidated Statements of Cash Flows for the years ended December 31, 2024, 2023 and<br>2022	4
Statements of Changes in Stockholders’ Equity for the years ended December 31, 2024,<br>2023 and 2022	5
Notes to the Consolidated Financial Statements	6
Independent auditors’ report — KPMG Cárdenas Dosal, S.C	63

Cemex, S.A.B. de C.V. and Subsidiaries

Consolidated Statements of Income

(Millions of U.S. Dollars, except for earnings per share)

		Years ended December 31,
	Notes	2024			2023			2022
Revenues	3	$	16,200			16,554			14,706
Cost of sales	5		(10,761	)		(10,979	)		(10,221	)
Gross profit		****	5,439	****	****	5,575	****	****	4,485	****
Operating expenses	6		(3,611	)		(3,616	)		(3,124	)
Operating earnings before other expenses, net	2	****	1,828	****	****	1,959	****	****	1,361	****
Other expenses, net	7		(7	)		(211	)		(488	)
Operating earnings		****	1,821	****	****	1,748	****	****	873	****
Financial expense	8.1, 17		(555	)		(539	)		(505	)
Financial income and other items, net	8.2		(379	)		16			172
Share of profit of equity accounted investments	14.1		93			98			30
Earnings before income tax		****	980	****	****	1,323	****	****	570	****
Income tax	20		(67	)		(1,204	)		(168	)
Net income from continuing operations		****	913	****	****	119	****	****	402	****
Discontinued operations	4.2		47			80			483
CONSOLIDATED NET INCOME		****	960	****	****	199	****	****	885	****
Non-controlling interest net income			21			17			27
CONTROLLING INTEREST NET INCOME		$	939	****	****	182	****	****	858	****
Basic earnings per share	23	$	0.0217			0.0042			0.0197
Basic earnings per share from continuing operations	23	$	0.0206			0.0023			0.0086
Diluted earnings per share	23	$	0.0213			0.0041			0.0193
Diluted earnings per share from continuing operations	23	$	0.0202			0.0023			0.0085

The accompanying notes are part of these consolidated financial statements.

Cemex, S.A.B. de C.V. and Subsidiaries

Consolidated Statements of Comprehensive Income

(Millions of U.S. Dollars)

			Years ended December 31,
	Notes		2024			2023			2022
CONSOLIDATED NET INCOME			$	960	****	****	199	****	****	885	****
Items that will not be reclassified subsequently to the statement of income
Net actuarial gains (losses) from remeasurements of defined benefit pension plans	****	19		74			(45	)		176
Effects from strategic equity investments	****	14.2		1			(2	)		(9	)
Income tax benefit (expense) recognized directly in other comprehensive income	****	20		(11	)		5			(32	)
				64			(42	)		135
Items that are or may be reclassified subsequently to the statement of income
Results from derivative financial instruments designated as cash flow hedges	****	17.4		(140	)		(7	)		80
Currency translation results of foreign subsidiaries	****	21.2		(206	)		255			(326	)
Income tax benefit recognized directly in other comprehensive income	****	20		(37	)		1			18
				(383	)		249			(228	)
Total items of other comprehensive income (loss), net				(319	)		207			(93	)
CONSOLIDATED COMPREHENSIVE INCOME			****	641	****	****	406	****	****	792	****
Non-controlling interest comprehensive income<br>(loss)				(31	)		31			(36	)
CONTROLLING INTEREST COMPREHENSIVE INCOME			$	672	****	****	375	****	****	828	****

The accompanying notes are part of these consolidated financial statements.

Cemex, S.A.B. de C.V. and Subsidiaries

Consolidated Statements of Financial Position

(Millions of U.S. Dollars)

		As of December 31,
	Notes	2024			2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	9	$	864			624
Trade accounts receivable	10		1,582			1,751
Other accounts receivable	11		715			650
Inventories	12		1,485			1,789
Assets held for sale and other current assets	13		370			191
Total current assets		$	5,016			5,005
NON-CURRENT ASSETS
Investments in associates and joint ventures	14.1		753			729
Other investments and non-current accounts<br>receivable	14.2		256			340
Property, machinery and equipment, net and assets for the right-of-use, net	15		11,240			12,466
Goodwill and intangible assets, net	16		9,361			9,530
Deferred income tax assets	20.2		673			363
Total non-current assets			22,283			23,428
TOTAL ASSETS		$	27,299	****	****	28,433	****
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current debt	17.1		189			25
Other current financial obligations	17.2		927			950
Trade accounts payable	18.1		3,090			3,109
Income tax payable	20.4		469			1,082
Other current liabilities	18.2		1,326			1,620
Liabilities related to assets held for sale	13		91			—
Total current liabilities		$	6,092			6,786
NON-CURRENT LIABILITIES
Non-current debt	17.1		5,340			6,203
Other non-current financial obligations	17.2		902			986
Pensions and other post-employment benefits	19		559			735
Deferred income tax liabilities	20.2		548			443
Other non-current liabilities	18.3		1,381			1,164
Total non-current liabilities			8,730			9,531
TOTAL LIABILITIES		$	14,822	****	****	16,317	****
STOCKHOLDERS’ EQUITY
Controlling interest:
Common stock and additional paid-in capital	21.1		7,699			7,699
Other equity reserves and subordinated notes	21.2		(770	)		(363	)
Retained earnings	21.3		5,247			4,428
Total controlling interest			12,176			11,764
Non-controlling interest	21.4		301			352
TOTAL STOCKHOLDERS’ EQUITY		****	12,477	****	****	12,116	****
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	27,299	****	****	28,433	****

The accompanying notes are part of these consolidated financial statements.

Cemex, S.A.B. de C.V. and Subsidiaries

Consolidated Statements of Cash Flows

(Millions of U.S. Dollars)

			Years ended December 31,
	Notes		2024			2023			2022
OPERATING ACTIVITIES
Consolidated net income			$	960	****	****	199	****	****	885	****
Discontinued operations				47			80			483
Net income from continuing operations				913			119			402
Adjustments for:
Depreciation and amortization of assets	****	5, 6		1,250			1,190			1,072
Impairment losses of longed-lived assets	****	7		122			43			442
Share of profit of equity accounted investments	****	14.1		(93	)		(98	)		(30	)
Results on sale of associates, fixed assets and others				(172	)		(41	)		(120	)
Financial expense, financial income and other financial items, net				934			523			333
Income taxes	****	20		67			1,204			168
Decrease (increase) in working capital, excluding income taxes				231			192			(390	)
Cash flows provided by operating activities from continuing operations			****	3,252	****	****	3,132	****	****	1,877	****
Interest paid				(621	)		(549	)		(493	)
Income taxes paid	****	20.4		(878	)		(515	)		(136	)
Net cash flows provided by operating activities from continuing operations				1,753			2,068			1,248
Net cash flows provided by operating activities from discontinued operations				141			154			120
Net cash flows provided by operating activities after interest and income taxes			****	1,894	****	****	2,222	****	****	1,368	****
INVESTING ACTIVITIES
Investment in property, machinery and equipment, net	****	15		(1,000	)		(865	)		(755	)
Investment in intangible assets, net	****	16.1		(296	)		(207	)		(151	)
Disposal (acquisition) of subsidiaries and associates, net	****	4,14.1		1,020			(189	)		341
Non-current assets and others, net				35			22			(14	)
Cash flows used in investing activities from continuing operations				(241	)		(1,239	)		(579	)
Net cash flows used in investing activities from discontinued operations				(87	)		(83	)		(61	)
Net cash flows used in investing activities			****	(328	)	****	(1,322	)	****	(640	)
FINANCING ACTIVITIES
Proceeds from new debt instruments	****	17.1		5,048			2,938			2,006
Debt repayments	****	17.1		(5,497	)		(3,840	)		(2,420	)
Issuance of subordinated notes	****	21.2		—			992			—
Other financial obligations, net	****	17.2		(292	)		(274	)		(197	)
Own shares repurchase program	****	21.1		—			—			(111	)
Dividends paid	****	21.1		(90	)		—			—
Shares in trust for future deliveries under share-based compensation	****	22		(52	)		(45	)		(36	)
Changes in non-controlling interests	****	21.4		(2	)		(62	)		(14	)
Derivative financial instruments	****	17.4		(37	)		(189	)		34
Coupons on subordinated notes	****	21.2,21.4		(143	)		(120	)		(51	)
Non-current liabilities, net				(188	)		(101	)		(172	)
Net cash flows used in financing activities			****	(1,253	)	****	(701	)	****	(961	)
Increase (decrease) in cash and cash equivalents from continuing operations				259			128			(292	)
Increase in cash and cash equivalents from discontinued operations				54			71			59
Foreign currency translation effect on cash				(73	)		(70	)		115
Cash and cash equivalents at beginning of period				624			495			613
CASH AND CASH EQUIVALENTS AT END OF PERIOD	****	9	$	864	****	****	624	****	****	495	****
Changes in working capital, excluding income taxes:
Trade accounts receivable			$	56			(27	)		(208	)
Other accounts receivable and other assets				(45	)		21			(23	)
Inventories				196			68			(464	)
Trade accounts payable				159			(45	)		290
Other accounts payable and accrued expenses				(135	)		175			15
Decrease (increase) in working capital, excluding income taxes			$	231	****	****	192	****	****	(390	)

The accompanying notes are part of these consolidated financial statements.

Cemex, S.A.B. de C.V. and Subsidiaries

Statements of Changes in Stockholders’ Equity

For the years ended December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

								Other equity
					Additional			reserves and						Total						Total
			Common		paid-in			subordinated			Retained			controlling			Non-controlling			stockholders’
	Notes		stock		capital			notes			earnings			interest			interest			equity
Balance as of December 31, 2021			$	318	****	7,492	****	****	(1,371	)	****	3,388	****	****	9,827	****	****	444	****	****	10,271	****
Net income for the period				—		—			—			858			858			27			885
Other comprehensive loss for the period				—		—			(30	)		—			(30	)		(63	)		(93	)
Total of other comprehensive income (loss) for the period	****	21.2		—		—			(30	)		858			828			(36	)		792
Own shares purchased under shares repurchase program	****	21.1		—		—			(111	)		—			(111	)		—			(111	)
Shares in trust for future deliveries under share-based compensation	****	22		—		—			(36	)		—			(36	)		—			(36	)
Share-based compensation	****	22		—		—			47			—			47			—			47
Coupons accrued on subordinated notes	****	21.2		—		—			(54	)		—			(54	)		—			(54	)
Balance as of December 31, 2022			****	318	****	7,492	****	****	(1,555	)	****	4,246	****	****	10,501	****	****	408	****	****	10,909	****
Net income for the period				—		—			—			182			182			17			199
Other comprehensive income for the period				—		—			193			—			193			14			207
Total of other comprehensive income for the period	****	21.2		—		—			193			182			375			31			406
Cancellation of own shares by shareholders’ resolution	****	21.1		—		(111	)		111			—			—			—			—
Shares in trust for future deliveries under share-based compensation	****	22		—		—			(45	)		—			(45	)		—			(45	)
Issuance of subordinated notes	****	21.2		—		—			992			—			992			—			992
Changes in non-controlling interest	****	21.4		—		—			—			—			—			(87	)		(87	)
Share-based compensation	****	22		—		—			61			—			61			—			61
Coupons accrued on subordinated notes	****	21.2		—		—			(120	)		—			(120	)		—			(120	)
Balance as of December 31, 2023			****	318	****	7,381	****	****	(363	)	****	4,428	****	****	11,764	****	****	352	****	****	12,116	****
Net income for the period				—		—			—			939			939			21			960
Other comprehensive income for the period				—		—			(267	)		—			(267	)		(52	)		(319	)
Total of other comprehensive income for the period	****	21.2		—		—			(267	)		939			672			(31	)		641
Dividends declared	****	21.1		—		—			—			(120	)		(120	)		—			(120	)
Shares in trust for future deliveries under share-based compensation	****	22		—		—			(52	)		—			(52	)		—			(52	)
Changes in non-controlling interest	****	21.4		—		—			—			—			—			(20	)		(20	)
Share-based compensation	****	22		—		—			55			—			55			—			55
Coupons accrued on subordinated notes	****	21.2		—		—			(143	)		—			(143	)		—			(143	)
Balance as of December 31, 2024			$	318	****	7,381	****	****	(770	)	****	5,247	****	****	12,176	****	****	301	****	****	12,477	****

The accompanying notes are part of these consolidated financial statements.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

1)	DESCRIPTION OF BUSINESS

Cemex, S.A.B. de C.V., originated in 1906, is a publicly traded variable stock corporation (Sociedad Anónima Bursátil deCapital Variable) organized under the laws of Mexico, and is the parent company of entities whose main activities are oriented to the construction industry, through the production, marketing, sale and distribution of cement, ready-mix concrete, aggregates, urbanization solutions and other construction materials and services. In addition, Cemex, S.A.B. de C.V. performs significant business and operational activities in Mexico.

The shares of Cemex, S.A.B. de C.V. are listed on the Mexican Stock Exchange (“MSE”) as Ordinary Participation Certificates (“CPOs”) (Certificados de Participación Ordinaria) under the symbol “CemexCPO.” Each CPO represents two series “A” shares and one series “B” share of the common stock of Cemex, S.A.B. de C.V. In addition, Cemex, S.A.B. de C.V.’s shares are listed on the New York Stock Exchange (“NYSE”) as American Depositary Shares (“ADSs”) under the symbol “CX.” Each ADS represents ten CPOs.

The terms “Cemex, S.A.B. de C.V.” and/or the “Parent Company” used in these accompanying notes to the financial statements refer to Cemex, S.A.B. de C.V. without its consolidated subsidiaries. The terms the “Company” or “Cemex” refer to Cemex, S.A.B. de C.V. together with its consolidated subsidiaries.

The issuance of these consolidated financial statements was authorized by the Board of Directors of the Parent Company on February 5, 2025 considering the favorable recommendation of its Audit Committee. These financial statements will be submitted for approval to the annual general ordinary shareholders’ meeting of the Parent Company on March 25, 2025.

2)	BASIS OF PRESENTATION AND DISCLOSURE

The consolidated financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022, were prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Note 29 includes Cemex’s material accounting policies. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can be reasonably expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements.

Presentation currency and definition of terms

The consolidated financial statements and the accompanying notes are presented in Dollars of the United States of America (the “United States”), except when specific reference is made to a different currency. When reference is made to “U.S. Dollar,” “Dollar,” “Dollars” or “$” it means Dollars of the United States. All amounts in the financial statements and the accompanying notes are stated in millions, except when references are made to earnings per share and/or prices per share. When reference is made to “Ps” or “Pesos,” it means Mexican Pesos. When reference is made to “€” or “Euros,” it means the currency in circulation in a considerable number of European Union (“EU”) countries. When reference is made to “£” or “Pounds,” it means British Pounds sterling. Previously reported Dollar amounts of prior years are restated when the underlying transactions in other currencies remain unsettled using the closing exchange rates as of the reporting date. Amounts reported in Dollars should not be construed as representations that such amounts represented those Dollars or could be converted into Dollars at the rates indicated.

Amounts disclosed in the notes in connection with outstanding tax and/or legal proceedings (notes 20.4 and 25), which are originated in jurisdictions where currencies are different from the Dollar, are presented in Dollar equivalents as of the closing of the most recent year presented. Consequently, without any change in the original currency, such Dollar amounts will fluctuate over time due to changes in exchange rates.

Discontinued operations (note 4.2)

Cemex reports as discontinued operations the disposal of entire geographical reportable operating segments regardless of size, the sale of a considerable portion of a significant reportable operating segment, as well as the sale of a major line of business. The statements of income and the statements of cash flows of prior periods were represented to consider the effects of additional discontinued operations occurred in 2024.

Statements of income

Cemex includes the line item titled “Operating earnings before other expenses, net” considering that it is a subtotal relevant for the determination of Cemex’s “Operating EBITDA” (Operating earnings before other expenses, net plus depreciation and amortization) as described below in this note. The line item of “Operating earnings before other expenses, net” allows for easy reconciliation of the amount in these financial statements under IFRS to the non-IFRS measure of Operating EBITDA by adding back depreciation and amortization. The line item “Other expenses, net” consists primarily of revenues and expenses not directly related to Cemex’s main activities or which are of a non-recurring nature, including impairment losses of long-lived assets, results on disposal of assets, as well as restructuring costs, among others (note 7). Under IFRS, the inclusion of certain subtotals such as “Operating earnings before other expenses, net” and the display of the statement of income vary significantly by industry and company according to specific needs.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Basis of presentation and disclosure – Statements of income – continued

Although Operating EBITDA is not a measure of operating performance, an alternative to cash flows or a measure of financial position under IFRS, Operating EBITDA is the financial measure used by Cemex’s chief executive officer to review operating performance and profitability, for decision-making purposes and to allocate resources. Moreover, Operating EBITDA is a measure used by Cemex’s creditors to review its capacity to internally fund capital expenditures, to service or incur debt and to comply with financial covenants under its financing agreements. Cemex presents “Operating EBITDA” in notes 4.3 (selected financial information by reportable segment and line of business) and 17.1 (Financial instruments–Financial covenants). Cemex’s Operating EBITDA may not be comparable to other similarly titled measures of other companies.

Statements of cash flows

The statements of cash flows exclude the following transactions that did not represent sources or uses of cash:

Financing activities:

•	In 2024, 2023 and 2022, the increases in other financing obligations in connection with lease contracts<br>negotiated during the year for $290, $341 and $296, respectively (note 17.2);
•	In 2024, the portion of dividends declared during the year that is still payable as of December 31, 2024<br>for $30 (notes 21.1 and 21.3); and
---	---

Investing activities:

•	In 2024, 2023 and 2022, in connection with the leases negotiated during the year, the increases in assets for<br>the right-of-use related to lease contracts for $290, $341 and $296, respectively (note 15.2).

Newly issued IFRS adopted in 2024

Beginning January 1, 2024, Cemex adopted IFRS amendments that did not result in any material impact on its results of operation or financial position, and which are explained as follows:

Standard	Main topic
Amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments:Disclosures – Supplier Finance Arrangements	The amendments require disclosure of supplier finance arrangements and their effects on an entity’s liabilities, cash<br>flows and exposure to liquidity risk. As a result of the adoption of the amendments to IAS 7 and IFRS 7, the Company provides new disclosures for trade accounts payable under supplier finance arrangements in note 18.1.
Amendment to IAS 1 – Presentation of Financial Statement	Clarifies the requirements to be applied in classifying liabilities as current and<br>non-current for non-current liabilities that are subject to covenants within 12 months after the reporting period. The adoption of the amendments to IAS 1 did not impact<br>Cemex´s financial statements.
Amendments to IFRS 16, Leases – Lease Liability in a Sale and Leaseback	The amendments mention that on initial recognition, the seller-lessee would include variable payments when it measures a<br>lease liability arising from a sale-and-leaseback transaction. In addition, the amendments establish that the seller-lessee could not recognize gains or losses relating<br>to the right of use it retains after initial recognition. There are no sale and leaseback transactions during the reported periods.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

3)	REVENUES

Cemex’s revenues are mainly originated from the sale and distribution of cement, ready-mix concrete, aggregates and other construction materials and services, including urbanization solutions, and are recognized at a point in time or over time in the amount of the price, before tax on sales, expected to be received for goods and services supplied due to ordinary activities, as contractual performance obligations are fulfilled, and control of goods and services passes to the customer. Cemex grants credit for terms ranging generally from 15 to 90 days depending on the type and risk of each customer. For the years ended December 31, 2024, 2023 and 2022, revenues were as follows:

	2024
From the sale of goods associated to Cemex’s main activities ^1^	$	15,732	16,103	14,293
From maritime trade and the sale of other goods and services ^2^		468	451	413
	$	16,200	16,554	14,706
1	During the reported periods, revenues recognized over time under construction contracts were not<br>significant.
---	---
2	Refers mainly to trade maritime transactions of cement and clinker carried by Cemex’s trading<br>unit, among other minor revenues generated by subsidiaries not individually significant operating in different lines of business.
---	---

Information of revenues by reportable segment and line of business for the years 2024, 2023 and 2022 is presented in note 4.3.

As of December 31, 2024 and 2023, amounts receivable for progress billings and advances received from customers of construction contracts were not significant. Moreover, for the years 2024, 2023 and 2022, revenues and costs related to construction contracts in progress were not significant.

Certain promotions and/or discounts and rebates offered as part of the sale transaction, result in that a portion of the transaction price should be allocated to such commercial incentives as separate performance obligations, recognized as contract liabilities with customers, and deferred to the statement of income during the period in which the incentive is exercised by the customer or until it expires. For the years ended December 31, 2024, 2023 and 2022 changes in the balance of contract liabilities with customers were as follows:

	2024
Opening balance of contract liabilities with customers	$	384		293		257
Increase during the period for new transactions		476		801		1,083
Decrease during the period for exercise or expiration of incentives		(576	)	(717	)	(1,045	)
Currency translation effects		(15	)	7		(2	)
Closing balance of contract liabilities with customers	$	269		384		293

For the years 2024, 2023 and 2022, any costs capitalized as contract fulfillment assets and released over the contract life according to IFRS 15, Revenues from contracts with customers were not significant.

4)	BUSINESS COMBINATIONS, DIVESTITURES AND DISCONTINUED OPERATIONS AND SELECTED FINANCIAL INFORMATION BYREPORTABLE SEGMENT AND LINE OF BUSINESS
4.1)	BUSINESS COMBINATIONS
---	---

On September 3, 2024, Cemex acquired from the Heim Group in Germany for a price of $4 a 51% controlling interest in RC-Baustoffe Berlin GmbH & Co. KG (“RC-Baustoffe Berlin”), a Berlin-based recycling company that processes mineral construction, demolition, excavation materials and operates one plant to permanently store biogenic CO2 in recycled mineral waste. The acquired recycling facility should process up to 0.4 million tons of materials per year to turn into repurposed aggregates for concrete production, reintroducing them into the construction value chain. In connection with the excess of the purchase price and the fair value of the net assets acquired, Cemex determined goodwill of $5.

On November 1, 2023, Cemex completed in Germany the acquisition of a 100% controlling interest in Kiesel, a mortars and adhesives technological leader in the construction industry that serves the German, French, Polish, and Czech markets, consisting of a production facility and five distribution locations for a total consideration of $13. Cemex determined goodwill of $5.

On May 11, 2023, Cemex completed the asset acquisition of Atlantic Minerals Limited in Newfoundland and Labrador, Canada, consisting mainly of an aggregates quarry and maritime port operations for a price of $75. With this investment, Cemex secured a long-term aggregates reserve for its operations in Florida and the east coast of the United States, as well as a source for chemical-grade stone serving broader base of customers. Cemex did not determine goodwill.

On January 30, 2023, for a price of $13, Cemex acquired a 51% controlling interest in Israel-based SHTANG Recycle LTD (“SHTANG”), a construction demolition and excavation waste recycling company. The acquisition is aligned with the strategy of strengthening Cemex’s business in developed markets through bolt-on acquisitions in businesses with strong circular and sustainable attributes. SHTANG holds a 13-year license to build and operate the facility. The state-of-the-art facility should be processing 600,000 tons of waste annually. The facility’s production is used as raw materials for aggregate production, reintegrating them into the construction value chain. Cemex determined goodwill of $3.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Business combinations – continued

On July 11, 2022, Cemex completed the acquisition of a 53% controlling interest in the German aggregates company ProStein for a total consideration of $21. The investment expands Cemex’s aggregates business in the region and the estimated life of aggregates reserves in Central Europe for at least 25 years. The majority stake in ProStein’s assets adds a full range of fine and hardstone aggregates to Cemex’s aggregates portfolio. In addition to supplying the greater Berlin area, the additional capacity should supply several urban centers in Poland and the Czech Republic. ProStein’s assets include six active hardstone plants and six CDEW recovery sites. Cemex did not determine goodwill. On December 30, 2024, a sale option of the owners of the remaining 47% was activated in two tranches, a 21% in 2025 and a 26% in 2026, consequently, Cemex recognized a current liability of $8 and a non-current liability of $10 and cancelled the non-controlling interest in consolidated equity.

The following table presents the combined condensed fair value information of the assets acquired and liabilities assumed that were integrated into Cemex in connection with the acquisition of RC-Baustoffe Berlin in 2024 and of Kiesel, Atlantic Minerals and SHTANG in 2023.

	2024
Current assets	$	2	30
Property, machinery and equipment		8	89
Other non-current assets and goodwill		5	25
Total assets		15	144
Current liabilities		1	17
Non-current liabilities		9	19
Total liabilities		10	36
Net assets acquired	$	5	108
4.2)	DIVESTITURES AND DISCONTINUED OPERATIONS
---	---

On December 2, 2024, considering separate agreements with each counterparty and the satisfaction of closing conditions, which included the approval by the Philippine Competition Commission and the fulfillment of other requirements by the purchasers to the shareholders of Cemex Holdings Philippines, Inc. (“CHP”), including the non-controlling interest owned by third parties in CHP, Cemex concluded the sale of its operations and assets in the Philippines to DACON Corporation, DMCI Holdings, Inc. and Semirara Mining & Power Corporation, for a total consideration related to the Cemex’s controlling interest of $798 including the sale of minority investments in land ownership and mineral extraction activities, as well as debt assumed by the purchaser. The divested assets mainly consisted of two cement plants with an installed capacity of around 5.7 million metric tons per year, six marine distributions terminals and 18 land distribution centers, among other assets and investments in extracting entities. For the period from January 1 to December 2, 2024 and for the years ended December 31, 2023 and 2022, Cemex’s operations in the Philippines are reported in the statements of income, net of income tax, in the single line item “Discontinued operations,” including in 2024 a loss on sale of $119, net of the reclassification of foreign currency translation effects accrued in equity until the date of loss of control and goodwill cancellation of $79.

On November 1, 2024, Cemex sold its non-controlling interest of 34.8% in Neoris N.V. (“Neoris”) (note 14.1) to EPAM Systems, Inc. for a total of $215 resulting in a gain of $139 recognized within Other expenses, net. Neoris operates in the digital solutions sector and, after the sale, remains a services supplier for Cemex. Previously, on October 25, 2022, Cemex sold to Advent International a 65% controlling interest in Neoris for a total of $119 and retained such non-controlling interest of 34.8%. The remaining non-controlling interest was remeasured at fair value upon loss of control, was subsequently accounted for under the equity method and was presented within the line item “Investments in associates and joint ventures.” Neoris’ results for the period from January 1 to October 25, 2022 are reported in the statements of income, net of income tax, in the single line item “Discontinued operations,” including in 2022 a gain on sale of $117, net of the reclassification of foreign currency translation effects accrued in equity until the date of loss of control.

On September 10, 2024, Cemex sold its operations in Guatemala to a subsidiary of Holcim Ltd, for a total consideration of $212. The divested assets mainly consist of one grinding mill with an installed capacity of around 0.6 million metric tons per year, three ready mix plants and five distribution centers. For the period from January 1 to September 10, 2024 and for the years ended December 31, 2023 and 2022, Cemex’s operations in Guatemala are reported in the statements of income, net of income tax, in the single line item “Discontinued operations,” including in 2024 a gain on sale of $163, net of the reclassification of foreign currency translation effects accrued in equity until the date of loss of control.

On August 5, 2024, Cemex announced an agreement with Cementos Progreso Holdings, S.L. and its strategic partners, for the sale of its operations in the Dominican Republic, for a total consideration of $950, subject to final adjustments. The assets for divestment mainly consist of one cement plant in the Dominican Republic with two integrated production lines and related cement, concrete, aggregates and marine terminal assets. As of December 31, 2024, Cemex’s assets and liabilities in the Dominican Republic are presented in the line items “Assets held for sale” and “Liabilities related to assets held for sale,” respectively (note 13). For the years ended December 31, 2024, 2023 and 2022, Cemex’s operations in the Dominican Republic are reported in Cemex’s income statements, net of income tax, in the single line item “Discontinued operations.” See note 28 for subsequent events related to this disposal.

On August 31, 2022, through subsidiaries, Cemex concluded the sale with affiliates of Cementos Progreso Holdings, S.L. of its entire operations in Costa Rica and El Salvador for a total of $325, related to Cemex’s aggregate controlling interest. The assets sold consisted of one cement plant, one grinding station, seven ready-mix plants, one aggregates quarry, one distribution center in Costa Rica and one distribution center in El Salvador. Cemex’s results of these operations for the period from January 1 to August 31, 2022 are reported in the statements of income, net of income tax, in the single line item “Discontinued operations,” including in 2022 a gain on sale of $240 which includes the reclassification of foreign currency translation effects accrued in equity until the disposal date.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Discontinued operations – continued

The following table presents combined condensed information of the statement of financial position of the operations held for sale in the Dominican Republic as of December 31, 2024, and as of the date of sale in 2024 of Guatemala and the Philippines.

	2024
Current assets	$	326
Property, machinery and equipment		733
Other non-current assets and goodwill		161
Total assets		1,220
Current liabilities		291
Non-current liabilities		113
Total liabilities		404
Net assets sold or held for sale	$	816

The following table presents condensed combined information of the statements of income of: a) the operations in the Philippines for the period from January 1 to December 2, 2024 and the years 2023 and 2022; b) the operations in Guatemala for the period from January 1 to September 10, 2024 and the years 2023 and 2022; c) the operations in the Dominican Republic for the years 2024, 2023 and 2022; d) Neoris’ operations for the period from January 1 to October 25, 2022; and e) the operations in Costa Rica and El Salvador for the period from January 1 to August 31, 2022.

	2024
Revenues	$	737		833		1,127
Cost of sales, operating expenses and other expenses, net		(633	)	(732	)	(882	)
Financial expenses, net, and others		9		25		(22	)
Earnings before income tax		113		126		223
Income tax		(109	)	(46	)	(44	)
Result of discontinued operations		4		80		179
Net disposal result		43		—		304
Net result of discontinued operations	$	47		80		483

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

4.3)	SELECTED FINANCIAL INFORMATION BY REPORTABLE SEGMENT AND LINE OF BUSINESS

Reportable segments

The Company’s operating segments represent the components of Cemex that engage in business activities from which Cemex earns revenues and incurs expenses, whose operating results are reviewed by Cemex’s Chief Executive Officer (“CEO”) and senior management to make decisions about resources to be allocated to the segments and assess their performance, and for which discrete financial information is available. A reportable segment represents an operating segment or an aggregation of operating segments considering certain thresholds, under which entities must report separately any operating segments which account for 10% or more of combined revenues, both internal and external, 10% or more of combined net profit or loss, depending on the individual result of the operating segment, and/or 10% or more of the combined assets of all operating segments. In addition, despite the described 10% threshold not being met individually, entities must report as many individual operating segments as needed to cover at least 75% of the entity’s revenue. Cemex operates by geography and line of business. Cemex discloses its segment information presenting 12 reportable segments. After discontinued operations, Cemex’s operations are organized in four regions, each under the supervision of a regional president, as follows: 1) Mexico, comprised of one operating and reportable segment, 2) United States, comprised of one operating and reportable segment, 3) Europe, Middle East and Africa (“EMEA”), comprised of 10 operating segments, of which four were aggregated into a single reportable operating segment as described below, and 4) South, Central America and the Caribbean (“SCA&C”), comprised of 10 operating segments, of which six were aggregated into two reportable operating segments as described below.

The material accounting policies applied to determine the financial information by reportable segment are consistent with those described in note 29.

Aggregation criteria

Considering materiality, as well as similar regional and/or economic characteristics, such as: (a) the nature of the products and services, all related to construction materials and the construction industry, (b) the nature of the production processes, which are the same for cement, ready-mix concrete, aggregates and urbanization solutions across geographies, (c) the type of customers for their products or services, in all cases construction materials distributors and wholesalers, governments and big construction firms, and (d) the methods used to distribute their products or provide their services, which are very similar among the Company’s geographies using both third-party transportation for cement and aggregates and our own mixers fleet for ready-mix, certain operating segments have been aggregated and presented as single reportable segments. These reportable segments are as follows: a) the “Rest of EMEA” reportable segment refers to Cemex’s operating segments in the Czech Republic, Croatia, Egypt and the United Arab Emirates; b) the “Rest of SCA&C” reportable segment refers to Cemex’s operating segments in Puerto Rico, Nicaragua, Jamaica and the Caribbean, excluding the operations of Trinidad Cement Limited (“TCL”); and c) the “Caribbean TCL” reportable segment refers to the operating segments of TCL and subsidiaries in Trinidad and Tobago, Jamaica, Guyana and Barbados. The line item “Other activities,” included to reconcile the total of reportable segments with the consolidated amounts from continuing operations, refers to the following combined transactions: 1) cement trade maritime operations, 2) the non-operating transactions of the Parent Company, other corporate entities and finance subsidiaries, and 3) other minor subsidiaries with different lines of business.

Selected information of the consolidated statements of income by reportable segment for the years 2024, 2023 and 2022, excluding the share of profits of equity accounted investments by reportable segment that is included in note 14.1, was as follows:

2024
Mexico	(136	)	4,745	1,475		207	1,268		(26	)	(38	)	(269	)
United States	—		5,194	1,031		514	517		(4	)	(74	)	(33	)
EMEA
United Kingdom	—		953	186		91	95		(6	)	(14	)	15
France	—		756	34		42	(8	)	(56	)	(16	)	1
Germany	(52	)	424	23		34	(11	)	2		(3	)	(5	)
Poland	(1	)	542	100		27	73		(1	)	(3	)	—
Spain	(46	)	409	60		29	31		(13	)	(4	)	(1	)
Israel	—		724	79		37	42		(1	)	(8	)	1
Rest of EMEA	—		784	155		47	108		(8	)	(7	)	(5	)
SCA&C
Colombia ^1^	(2	)	466	65		27	38		(11	)	(4	)	(15	)
Panama ^1^	(23	)	125	29		17	12		(2	)	(1	)	—
Caribbean TCL ^2^	(21	)	309	87		20	67		(18	)	(3	)	(4	)
Rest of SCA&C ^1^	(1	)	301	54		16	38		(5	)	(2	)	—
Reportable segments			15,732	3,378		1,108	2,270		(149	)	(177	)	(315	)
Other activities ^3^			468	(300	)	142	(442	)	142		(378	)	(64	)
Consolidated			16,200	3,078		1,250	1,828		(7	)	(555	)	(379	)

All values are in US Dollars.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Selected information of the consolidated statements of income by reportable segment– continued

2023
Mexico	(205	)	4,855	1,488		221	1,267		(59	)	(39	)	105
United States	—		5,338	1,040		483	557		(31	)	(75	)	(30	)
EMEA
United Kingdom	—		992	193		72	121		(6	)	(14	)	(17	)
France	—		842	53		54	(1	)	(39	)	(15	)	(1	)
Germany	(50	)	447	37		32	5		(3	)	(2	)	(5	)
Poland	(1	)	466	72		24	48		1		(2	)	2
Spain	(38	)	411	71		31	40		3		(2	)	1
Israel	—		794	90		33	57		5		(6	)	1
Rest of EMEA	(4	)	766	147		48	99		(7	)	(6	)	(6	)
SCA&C
Colombia ^1^	—		458	62		25	37		(19	)	(6	)	(1	)
Panama ^1^	(26	)	132	35		17	18		(2	)	—		—
Caribbean TCL ^2^	(12	)	317	78		20	58		(17	)	(2	)	(2	)
Rest of SCA&C ^1^	—		285	54		11	43		(10	)	(1	)	1
Reportable segments			16,103	3,420		1,071	2,349		(184	)	(170	)	48
Other activities ^3^			451	(271	)	119	(390	)	(27	)	(369	)	(32	)
Consolidated			16,554	3,149		1,190	1,959		(211	)	(539	)	16

All values are in US Dollars.

2022
Mexico	(200	)	3,642	1,133		172	961		(69	)	(28	)	32
United States	(4	)	5,034	762		455	307		(205	)	(55	)	(21	)
EMEA
United Kingdom	—		982	195		60	135		(8	)	(8	)	(8	)
France	—		781	63		50	13		1		(10	)	2
Germany	(46	)	439	40		28	12		2		(2	)	(3	)
Poland	(4	)	415	64		22	42		1		(2	)	4
Spain	(36	)	346	6		28	(22	)	(113	)	(2	)	2
Israel	—		840	112		46	66		5		(4	)	—
Rest of EMEA	(1	)	706	116		55	61		(10	)	(4	)	2
SCA&C
Colombia ^1^	—		429	61		24	37		12		(7	)	22
Panama ^1^	(34	)	115	28		16	12		(2	)	—		—
Caribbean TCL ^2^	(8	)	294	74		17	57		(19	)	(4	)	(1	)
Rest of SCA&C ^1^	(1	)	270	53		11	42		(2	)	(2	)	(5	)
Reportable segments			14,293	2,707		984	1,723		(407	)	(128	)	26
Other activities ^3^			413	(274	)	88	(362	)	(81	)	(377	)	146
Consolidated			14,706	2,433		1,072	1,361		(488	)	(505	)	172

All values are in US Dollars.

1	Until June 2023, after the conclusion of a tender offer and delisting process, Cemex Latam Holdings, S.A.<br>(“CLH”), a company incorporated in Spain, traded its ordinary shares on the Colombian Stock Exchange. CLH is the indirect holding company of Cemex’s operations in Colombia, Panama, Nicaragua and, until September 10, 2024, of the<br>operations in Guatemala and, until August 31, 2022, of the operations in Costa Rica and El Salvador. As of December 31, 2024 and 2023, there was a non-controlling interest in CLH of 0.16% and 0.50%,<br>respectively (note 21.4).
2	The shares of TCL trade on the Trinidad and Tobago Stock Exchange. As of December 31, 2024 and 2023,<br>there was a non-controlling interest in TCL of 30.17% of its ordinary shares in both years (note 21.4).
---	---
3	In regards of external revenues, refers mainly to trade maritime transactions of cement and clinker carried<br>by Cemex’s trading unit and, in the rest of the captions, refers to Cemex’s corporate activities.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Selected information of the consolidated statements of financial position by reportablesegment

As of December 31, 2024 and 2023, the selected statement of financial position information by reportable segment was as follows:

2024	Associates andjoint ventures		Othersegmentassets		Totalassets		Totalliabilities		Net assetsby segment			Capitalexpenditures ^1^
Mexico	$	—		4,155		4,155		1,693		2,462			315
United States		285		12,700		12,985		2,903		10,082			486
EMEA
United Kingdom		6		1,386		1,392		848		544			65
France		38		820		858		412		446			52
Germany		3		487		490		279		211			36
Poland		—		426		426		138		288			38
Spain		—		637		637		234		403			41
Israel		—		895		895		540		355			57
Rest of EMEA		10		732		742		316		426			79
SCA&C
Colombia		—		954		954		280		674			105
Panama		—		281		281		73		208			13
Caribbean TCL		—		511		511		238		273			50
Rest of SCA&C		—		234		234		85		149			21
Reportable segments		342		24,218		24,560		8,039		16,521			1,358
Other activities		411		2,063		2,474		6,692		(4,218	)		22
Assets held for sale		—		265		265		91		174			—
Consolidated	$	753		26,546		27,299		14,822		12,477			1,380
2023	Associates andjoint ventures		Othersegmentassets		Totalassets		Totalliabilities		Net assetsby segment			Capitalexpenditures ^1^
---	---	---	---	---	---	---	---	---	---	---	---	---	---
Mexico	$	—		5,381		5,381		2,052		3,329			264
United States		216		12,782		12,998		2,770		10,228			521
EMEA
United Kingdom		6		1,484		1,490		960		530			107
France		41		922		963		467		496			44
Germany		3		506		509		289		220			47
Poland		—		415		415		153		262			44
Spain		—		666		666		212		454			38
Philippines		—		795		795		135		660			85
Israel		—		808		808		507		301			41
Rest of EMEA		11		852		863		329		534			75
SCA&C
Colombia		—		1,007		1,007		308		699			76
Panama		—		292		292		78		214			13
Caribbean TCL		—		478		478		207		271			18
Dominican Republic		—		233		233		95		138			16
Rest of SCA&C		—		280		280		111		169			25
Reportable segments		277		26,901		27,178		8,673		18,505			1,414
Other activities		452		754		1,206		7,644		(6,438	)		3
Assets held for sale		—		49		49		—		49			—
Consolidated	$	729		27,704		28,433		16,317		12,116			1,417
1	Capital expenditures represent: a) the purchases of property, machinery and equipment, b) stripping<br>costs, as well as c) assets for the right-of-use incurred during the respective period (notes 15.1 and 15.2) and exclude increases in assets related to asset retirement<br>obligations (note 18.3).
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Revenue information by line of business and reportable segment

The Company’s main activities are oriented to the construction industry, mainly through the production, marketing, sale and distribution of cement, ready-mix concrete, aggregates, urbanization solutions and other construction materials and services. Revenues including intragroup transactions and external customers by line of business and reportable segment for the years ended December 31, 2024, 2023 and 2022, were as follows:

2024
Mexico	1,434	393	1,077	10	(1,376	)	4,745
United States	2,905	1,374	658	1	(1,649	)	5,194
EMEA
United Kingdom	292	379	208	24	(235	)	953
France	568	339	17	—	(168	)	756
Germany	141	84	67	54	(132	)	424
Poland	197	52	8	1	(97	)	542
Spain	117	45	27	—	(105	)	409
Israel	592	190	113	—	(171	)	724
Rest of EMEA	318	57	18	19	(168	)	784
SCA&C
Colombia	178	50	56	24	(160	)	466
Panama	33	8	15	4	(47	)	125
Caribbean TCL	5	9	1	3	(25	)	309
Rest of SCA&C	9	5	25	1	(8	)	301
Reportable segments	6,789	2,985	2,290	141	(4,341	)	15,732
Other activities	—	—	—	468	—		468
Consolidated							16,200

All values are in US Dollars.

2023
Mexico	1,397	399	1,163	13	(1,495	)	4,855
United States	3,070	1,347	694	14	(1,775	)	5,338
EMEA
United Kingdom	344	376	201	22	(266	)	992
France	656	356	17	—	(187	)	842
Germany	171	91	38	62	(142	)	447
Poland	169	44	6	—	(84	)	466
Spain	119	41	25	—	(100	)	411
Israel	662	200	116	2	(186	)	794
Rest of EMEA	288	52	17	23	(165	)	766
SCA&C
Colombia	163	48	54	22	(145	)	458
Panama	30	9	12	4	(51	)	132
Caribbean TCL	5	8	1	4	(17	)	317
Rest of SCA&C	9	5	25	1	(8	)	285
Reportable segments	7,083	2,976	2,369	167	(4,621	)	16,103
Other activities	—	—	—	451	—		451
Consolidated							16,554

All values are in US Dollars.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Information related to revenue by line of business and reportable segment –continued

2022
Mexico	925	261	843	14	(1,064	)	3,642
United States	2,871	1,202	697	12	(1,765	)	5,034
EMEA
United Kingdom	329	371	206	27	(263	)	982
France	622	332	15	—	(188	)	781
Germany	186	81	32	71	(151	)	439
Poland	160	41	4	1	(73	)	415
Spain	99	34	25	—	(93	)	346
Israel	718	213	97	21	(209	)	840
Rest of EMEA	260	48	18	26	(150	)	706
SCA&C
Colombia	137	40	62	19	(125	)	429
Panama	27	7	13	2	(53	)	115
Caribbean TCL	4	6	2	5	(20	)	294
Rest of SCA&C	9	3	19	1	(7	)	270
Reportable segments	6,347	2,639	2,033	199	(4,161	)	14,293
Other activities	—	—	—	413	—		413
Consolidated							14,706

All values are in US Dollars.

5)	COST OF SALES

Represents the production cost of inventories at the moment of sale and includes depreciation, amortization and depletion of assets involved in production, expenses related to storage in production plants, freight expenses of raw material in plants and delivery expenses of Cemex’s ready-mix concrete business.

The detail of the consolidated cost of sales by nature for the years 2024, 2023 and 2022 is as follows:

	2024
Raw materials and goods for resale	$	4,994	5,228	4,885
Payroll		1,798	1,711	1,452
Electricity, fuels and other services		1,457	1,593	1,439
Depreciation and amortization		1,023	985	894
Maintenance, repairs and supplies		959	918	770
Transportation costs		527	456	661
Other production costs and change in inventory		3	88	120
	$	10,761	10,979	10,221
6)	OPERATING EXPENSES
---	---

Administrative and selling expenses represent the expenses associated with personnel, services and equipment, including depreciation and amortization, related to managerial and back-office activities of the Company’s management, as well as selling activities, respectively. Distribution and logistics expenses refer to expenses of storage at points of sales, including depreciation and amortization, as well as freight expenses of finished products between plants and points of sale and freight expenses between points of sales and the customers’ facilities.

Consolidated operating expenses by function during 2024, 2023 and 2022 are as follows:

	2024
Administrative expenses ^1, 2^	$	1,336	1,354	1,046
Selling expenses ^2^		438	393	344
Administrative and selling expenses		1,774	1,747	1,390
Distribution and logistics expenses		1,837	1,869	1,734
Operating expenses	$	3,611	3,616	3,124
1	All significant research and development activities are executed by several internal areas of Cemex as part<br>of their daily activities. In 2024, 2023 and 2022, the total combined expenses of these departments recognized within administrative expenses were $59, $55, and $42, respectively.
---	---
2	In 2024, 2023 and 2022, administrative expenses include depreciation and amortization of $173, $161 and<br>$138, respectively, and selling expenses include depreciation and amortization of $54 in 2024, $44 in 2023 and $40 in 2022.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Operating expenses – continued

Consolidated operating expenses during 2024, 2023 and 2022 by nature are as follows:

	2024
Transportation costs	$	1,667	1,715	1,592
Payroll		1,125	1,096	935
Professional legal, accounting and advisory services		274	277	185
Depreciation and amortization		227	205	178
Maintenance, repairs and supplies		111	98	83
Office supplies, utilities and rental expenses		80	85	71
Expected credit losses		15	11	9
Other operating expenses		112	129	71
	$	3,611	3,616	3,124
7)	OTHER EXPENSES, NET
---	---

The detail of the caption “Other expenses, net” for the years 2024, 2023 and 2022 is as follows:

	2024
Impairment losses (notes 15.1, 16.1 and 16.2)	$	(122	)	(43	)	(442	)
Results from the sale of assets and others<br>^1^		125		(166	)	(26	)
Restructuring costs ^2^		(10	)	(2	)	(20	)
	$	(7	)	(211	)	(488	)
1	In 2024, includes a gain of $139 related to the sale of Cemex’s 34.8% equity interest in Neoris. In<br>2024, 2023 and 2022, includes expenses of $9, $3 and $1, respectively, in connection with property damage related to natural disasters (note 25.1). In addition, in 2022 includes a gain of $48 resulting from the remeasurement at fair value of<br>Cemex’s previous controlling interest in Neoris after the loss of control.
---	---
2	Restructuring costs mainly refer to severance payments and expenses related to the definitive closing of<br>operating sites.
---	---
8)	FINANCIAL ITEMS
---	---
8.1)	FINANCIAL EXPENSE
---	---

Consolidated financial expenses represent the interest on Cemex’s debt instruments measured using the effective interest rate and, in 2024, 2023 and 2022, include $74, $70 and $62 of interest expense related to lease contracts (notes 15.2 and 17.2).

8.2)	FINANCIAL INCOME AND OTHER ITEMS, NET

The detail of financial income and other items, net in 2024, 2023 and 2022 was as follows:

	2024
Foreign exchange results	$	(353	)	130		96
Financial income		36		37		25
Results from financial instruments, net (notes 14.2 and 17.4)		(4	)	(65	)	99
Net interest cost of defined benefit liabilities (note 19)		(40	)	(44	)	(28	)
Effects of amortized cost on assets and liabilities		(53	)	(42	)	(32	)
Others		35		—		12
	$	(379	)	16		172

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

9)	CASH AND CASH EQUIVALENTS

The balance in this caption is comprised of available amounts of cash and cash equivalents, represented by low-risk, highly liquid short-term investments readily convertible into known amounts of cash, including overnight investments, which yield fixed returns and have maturities of less than three months from the investment date. These fixed-income investments are recorded at cost plus accrued interest. Accrued interest is included in the statement of income as part of “Financial income and other items, net.”

As of December 31, 2024 and 2023, consolidated cash and cash equivalents consisted of: ****

	2024
Cash and bank accounts	$	330	363
Fixed-income securities and other cash equivalents		534	261
	$	864	624
10)	TRADE ACCOUNTS RECEIVABLE
---	---

As of December 31, 2024 and 2023, consolidated trade accounts receivable consisted of:

	2024
Trade accounts receivable	$	1,659		1,841
Allowances for expected credit losses		(77	)	(90	)
	$	1,582		1,751

As of December 31, 2024 and 2023, trade accounts receivable include receivables of $755 and $848, respectively, sold in several countries under outstanding trade accounts receivable securitization programs and/or factoring programs with recourse, in which generally, Cemex effectively does not surrender full control or the majority of risks and rewards associated with the trade accounts receivable sold. Therefore, the trade accounts receivable sold were not derecognized from the statement of financial position and the funded amounts to Cemex as of December 31, 2024 and 2023 of $658 and $678, respectively, were recognized within the line item of “Other financial obligations” (note 17.2).

The discount granted to the acquirers of the trade accounts receivable is recorded as financial expense and amounted to $52 in 2024, $52 in 2023 and $24 in 2022. Cemex’s securitization programs are usually negotiated for periods of one to two years and are usually renewed at their maturity.

Additionally, as of December 31, 2024, there are trade accounts receivable sold under factoring programs that qualify for derecognition for $54 which, considering that Cemex surrendered control and the majority of risks and rewards associated with the amount sold, the balance was derecognized from the statement of financial position

As of December 31, 2024, the balances of trade accounts receivable and the allowance for Expected Credit Losses (“ECL”) were as follows:

	Accountsreceivable
Mexico	$	332	29	8.7	%
United States		542	8	1.5	%
EMEA		701	34	4.9	%
SCA&C		72	6	8.3	%
Others		12	—	—
	$	1,659	77

Changes in the allowance for ECL in 2024, 2023 and 2022, were as follows:

	2024
Allowances for expected credit losses at beginning of period	$	90		91		101
Charged to selling expenses		15		11		9
Deductions		(17	)	(15	)	(21	)
Reclassification to assets held for sale		(6	)	—		—
Foreign currency translation effects		(5	)	3		2
Allowances for expected credit losses at end of period	$	77		90		91

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

11)	OTHER ACCOUNTS RECEIVABLE

As of December 31, 2024 and 2023, consolidated other accounts receivable consisted of:

	2024
Advances of income taxes and refundable taxes	$	494	472
Non-trade accounts receivable ^1^		87	102
Current portion of assets from valuation of derivative financial instruments		64	6
Interest and notes receivable		56	54
Loans to employees and others		14	16
	$	715	650
1	Non-trade accounts receivable are mainly attributable to the<br>sale of assets.
---	---
12)	INVENTORIES
---	---

Inventories are valued using the lower of cost or net realizable value. The weighted average cost of inventories includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Inventory balances are subject to impairment. When an impairment situation arises, the related inventory is adjusted to its net realizable value against “Cost of sales.” Advances to suppliers of inventory are presented as part of other current assets.

As of December 31, 2024 and 2023, the consolidated balances of inventories were summarized as follows:

	2024
Finished goods	$	392	461
Materials and spare parts		383	537
Raw materials		377	370
Work-in-process		266	330
Inventory in transit		67	91
	$	1,485	1,789

For the years ended December 31, 2024, 2023 and 2022, Cemex recognized within “Cost of sales” in the statements of income, inventory impairment losses of $7, $7 and $10, respectively.

13)	ASSETS HELD FOR SALE AND OTHER CURRENT ASSETS

As of December 31, 2024 and 2023, assets held for sale and other current assets were detailed as follows:

	2024
Assets held for sale	$	265	49
Other current assets		105	142
	$	370	191

As of December 31, 2024 and 2023, other current assets presented above are mainly comprised of advance payments to inventory suppliers.

As of December 31, 2024 and 2023, the caption of assets held for sale in the table above, which are measured at the lower of their estimated realizable value, less costs to sell, and their carrying amounts, as well as liabilities directly related with such assets are detailed as follows:

	2024						2023
	Assets		Liabilities		Net Assets		Assets		Liabilities		Net Assets
Dominican Republic (note 4.2)	$	229		91		138	$	—		—		—
Other assets held for sale		36		—		36		49		—		49
	$	265		91		174	$	49		—		49

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

14)	INVESTMENTS IN ASSOCIATES AND JOINT VENTURES, OTHER INVESTMENTS ANDNON-CURRENT ACCOUNTS RECEIVABLE
14.1)	INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
---	---

As of December 31, 2024 and 2023, the investments in common shares of associates and joint ventures, which are accounted under the equity method, were as follows:

Associates	Activity				2024
Camcem, S.A. de C.V.		Cement	Mexico	40.1	$	393	364
Concrete Supply Co. LLC		Concrete	United States	40.0		111	103
Lehigh White Cement Company		Cement	United States	36.8		85	83
Couch Aggregates, LLC ^1^		Aggregates	United States	49.0		55	—
Neoris N.V. ^2^		Technology	The Netherlands	34.8		—	69
Joint ventures
Société d’Exploitation de Carrières		Aggregates	France	50.0		23	24
Société Méridionale de Carrières		Aggregates	France	33.3		12	13
Other companies		—	—	—		74	73
					$	753	729
Out of which:
Acquisition cost					$	388	330
Equity method recognition						365	399
1	On July 12, 2024, Cemex acquired a non-controlling<br>interest in a newly formed entity which specializes in aggregates production and marine distribution in the Mid-South region of the United States and operates seven aggregate pits and four marine terminals.<br>This transaction is part of Cemex’s ongoing strategy to accelerate growth and expand its aggregates business in the country, increasing Cemex’s presence in this growing market.
---	---
2	On November 1, 2024, Cemex sold its 34.8% equity interest in Neoris (note 4.2)<br>
---	---

The combined condensed statements of financial position of associates and joint ventures as of December 31, 2024 and 2023 are set forth below:

	2024
Current assets	$	1,755	1,761
Non-current assets		2,108	1,877
Total assets ^1^		3,863	3,638
Current liabilities		492	468
Non-current liabilities		859	850
Total liabilities ^1^		1,351	1,318
Total net assets	$	2,512	2,320
1	Out of total assets in 2024 and 2023 of the table above, Camcem, S.A. de C.V. (“Camcem”),<br>holding company of GCC, S.A.B. de C.V., represented 78% and 76%, respectively. In addition, out of total liabilities, Camcem represented 79% in 2024 and 77% in 2023.
---	---

Combined selected information of the statements of income of associates and joint ventures in 2024, 2023 and 2022 is set forth below:

	2024
Revenues	$	2,098	2,410	2,319
Operating earnings		440	535	398
Income before income tax		320	394	268
Net income ^1^		211	268	186
1	Out of net income in the table above, caption that Cemex accounts under the equity method, Camcem<br>represented 68% in 2024, 59% in 2023 and 53% in 2022.
---	---

The share of associates and joint ventures by reportable segment in the statements of income for 2024, 2023 and 2022 are detailed as follows:

	2024
Mexico	$	68	65	39
United States		17	21	17
EMEA		8	10	8
Corporate and others		—	2	(34	)
	$	93	98	30

As of December 31, 2024 and 2023, Cemex did not have written put options for the acquisition of associates and joint ventures.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

14.2)	OTHER INVESTMENTS AND NON-CURRENT ACCOUNTS RECEIVABLE

As of December 31, 2024 and 2023, consolidated other investments and non-current accounts receivable were summarized as follows:

	2024
Non-current accounts receivable ^1^	$	191	272
Non-current portion of assets from valuation of derivative<br>financial instruments (note 17.4)		60	64
Investments in strategic equity securities		4	3
Investments at fair value through the statements of income		1	1
	$	256	340
1	Includes, among other items: a) accounts receivable from equity investments and joint ventures of $44<br>in 2024 and $78 in 2023, b) advances to suppliers of fixed assets of $28 in 2024 and $41 in 2023, c) employee prepaid compensation of $11 in 2024 and $8 in 2023 and, d) warranty deposits of $11 in 2024 and $24 in 2023.
---	---
15)	PROPERTY, MACHINERY AND EQUIPMENT, NET AND ASSETS FOR THE RIGHT-OF-USE, NET
---	---

As of December 31, 2024 and 2023, property, machinery and equipment, net and assets for the right-of-use, net were summarized as follows:

	2024
Property, machinery and equipment, net	$	10,152	11,272
Assets for the<br>right-of-use, net		1,088	1,194
	$	11,240	12,466
15.1)	PROPERTY, MACHINERY AND EQUIPMENT, NET
---	---

As of December 31, 2024, the average useful lives by category of fixed assets, which are reviewed at each reporting date, were as follows:

	Years
Administrative buildings		31
Industrial buildings		25
Machinery and equipment in plant		17
Ready-mix trucks and motor vehicles		11
Office equipment and other assets		7

As of December 31, 2024, to the best of its knowledge, management considers that its commitments and actions in relation to climate change currently do not affect the estimated average useful lives of its property, machinery and equipment described above (note 24.3).

As of December 31, 2024 and 2023, consolidated property, machinery and equipment, net and the changes in this line item during 2024 and 2023, were as follows:

	2024
	Land andmineralreserves			Building			Machineryandequipment			Constructionin progress ^2^			Total
Cost at beginning of period	$	5,295			2,636			12,702			1,931			22,564
Accumulated depreciation and depletion		(1,495	)		(1,657	)		(8,140	)		—			(11,292	)
Net book value at beginning of period		3,800			979			4,562			1,931			11,272
Capital expenditures		65			99			695			182			1,041
Stripping costs^^^1^		49			—			—			—			49
Total capital expenditures		114			99			695			182			1,090
Ordinary sales ^3^		(42	)		(4	)		(44	)		—			(90	)
Divestitures and reclassifications<br>^4^		(67	)		(62	)		(205	)		(359	)		(693	)
Business combinations (note 4.1)		—			—			2			—			2
Depreciation and depletion for the period		(34	)		(33	)		(738	)		—			(805	)
Impairment losses (note 7)		(36	)		(26	)		(60	)		—			(122	)
Asset retirement obligations (note 18.3)		—			15			48			—			63
Foreign currency translation effects		(244	)		(77	)		112			(356	)		(565	)
Cost at end of period		5,120			2,426			11,962			1,398			20,906
Accumulated depreciation and depletion		(1,629	)		(1,535	)		(7,590	)		—			(10,754	)
Net book value at end of period	$	3,491			891			4,372			1,398			10,152

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Property, machinery and equipment, net – continued

	2023
	Land andmineralreserves			Building			Machineryandequipment			Constructionin progress ^2^		Total
Cost at beginning of period	$	4,843			2,342			11,663			1,668		20,516
Accumulated depreciation and depletion		(1,337	)		(1,513	)		(7,510	)		—		(10,360	)
Net book value at beginning of period		3,506			829			4,153			1,668		10,156
Capital expenditures		33			86			720			200		1,039
Stripping costs^^^1^		37			—			—			—		37
Total capital expenditures		70			86			720			200		1,076
Ordinary sales ^3^		(31	)		(2	)		(75	)		—		(108	)
Business combinations (note 4.1)		13			4			22			—		39
Depreciation and depletion for the period		(140	)		(74	)		(628	)		—		(842	)
Impairment losses (note 7)		(16	)		(2	)		(18	)		—		(36	)
Asset retirement obligations (note 18.3)		—			20			44			—		64
Foreign currency translation effects		398			118			344			63		923
Cost at end of period		5,295			2,636			12,702			1,931		22,564
Accumulated depreciation and depletion		(1,495	)		(1,657	)		(8,140	)		—		(11,292	)
Net book value at end of period	$	3,800			979			4,562			1,931		11,272
1	All waste removal costs or stripping costs incurred in the operative phase of surface mines to access the<br>mineral reserves are recognized as part of their carrying amount. The capitalized amounts are subsequently amortized over the expected useful life of exposed ore body based on the<br>units-of-production method.
---	---
2	As of December 31, 2024, in connection with the cement plant located in the municipality of Maceo in<br>Colombia (the “Maceo Plant”) with an annual capacity of 1.3 million tons of cement, Cemex is performing the last infrastructure works required at the Maceo Plant to initiate commercial operations during 2025, including the access road<br>to the plant, among others. There are also several ongoing processes for the proper operation of the assets and other legal proceedings (note 25.3). As of December 31, 2024, the carrying amount of the Maceo Plant is for an amount in Colombian<br>Pesos equivalent to $335.
---	---
3	In 2024 includes sales of non-strategic fixed assets in the United<br>States and the United Kingdom for $69 and $7, respectively, among others. In 2023 includes sales of non-strategic fixed assets in the United States and France for $23 and $16, respectively, among others.<br>
---	---
4	In 2024 includes the reclassification to assets held for sale of the Dominican Republic operations for $115,<br>as well as the divestiture of the operations in the Philippines and Guatemala for $542 and $36, respectively (note 4.2).
---	---

During the years ended December 31, 2024, 2023 and 2022 impairment losses of fixed assets by operating segment are as follows:

	2024
France	$	45	6	—
United States		24	3	26
Caribbean TCL		16	7	14
Spain		15	2	23
United Kingdom		9	5	10
Others		13	13	4
	$	122	36	77

In connection with the impairment losses presented in the table above, recognized within the line item of “Other expenses, net” (notes 7 and 29.5).

The impairment losses of fixed assets recognized in 2024, 2023 and 2022 relate mainly to: a) closing and/or reduction of operations resulting from adjusting the supply to current demand conditions; b) a change of operating model of certain assets; c) material decrease in real estate prices; and d) inactivity over long periods. In addition, during 2022, certain impairment losses were associated also with some negative effects of the COVID-19 Pandemic initiated in 2020, as a result of which, Cemex closed certain assets that will remain closed for the foreseeable future in relation to the estimated sales volumes and the Company’s ability to supply demand by achieving efficiencies in other operating assets. During 2024, 2023 and 2022 there were no reversal of impairment charges recognized in prior years.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

15.2)	ASSETS FOR THERIGHT-OF-USE, NET

As of December 31, 2024 and 2023, consolidated assets for the right-of-use, net and the changes in this caption during 2024 and 2023, were as follows:

	2024
	Land			Buildings			Machineryandequipment			Others			Total
Assets for the<br>right-of-use at beginning of period	$	476			356			1,722			58			2,612
Accumulated depreciation		(155	)		(234	)		(985	)		(44	)		(1,418	)
Net book value at beginning of period		321			122			737			14			1,194
Additions of new leases		24			76			171			19			290
Cancellations and remeasurements, net		(22	)		(2	)		(16	)		(2	)		(42	)
Divestitures and reclassifications (note 4.2)		(34	)		(3	)		(4	)		—			(41	)
Business combinations (note 4.1)		6			—			—			—			6
Depreciation		(34	)		(36	)		(177	)		(13	)		(260	)
Foreign currency translation effects		(16	)		18			(67	)		6			(59	)
Assets for the<br>right-of-use at end of period		456			365			1,571			69			2,461
Accumulated depreciation		(211	)		(190	)		(927	)		(45	)		(1,373	)
Net book value at end of period	$	245			175			644			24			1,088
	2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Land			Buildings			Machineryandequipment			Others			Total
Assets for the<br>right-of-use at beginning of period	$	439			335			1,570			55			2,399
Accumulated depreciation		(142	)		(203	)		(894	)		(32	)		(1,271	)
Net book value at beginning of period		297			132			676			23			1,128
Additions of new leases		36			9			284			12			341
Cancellations and remeasurements, net		(10	)		(4	)		(14	)		(1	)		(29	)
Depreciation		(14	)		(32	)		(135	)		(12	)		(193	)
Foreign currency translation effects		12			17			(74	)		(8	)		(53	)
Assets for the<br>right-of-use at end of period		476			356			1,722			58			2,612
Accumulated depreciation		(155	)		(234	)		(985	)		(44	)		(1,418	)
Net book value at end of period	$	321			122			737			14			1,194

For the years ended December 31, 2024, 2023 and 2022, the combined rental expense related with short-term leases, leases of low-value assets and variable lease payments were $128, $135 and $106, respectively, and were recognized in cost of sales and operating expenses, as applicable. During the reported periods, Cemex did not have any material revenue from sub-leasing activities.

16)	GOODWILL AND INTANGIBLE ASSETS, NET
16.1)	BALANCES AND CHANGES DURING THE PERIOD
---	---

As of December 31, 2024 and 2023, consolidated goodwill, intangible assets and deferred charges were summarized as follows:

	2024							2023
	Cost		Accumulatedamortization			Carryingamount		Cost		Accumulatedamortization			Carryingamount
Intangible assets of indefinite useful life:
Goodwill	$	7,441		—			7,441	$	7,674		—			7,674
Intangible assets of definite useful life:
Extraction rights		1,796		(506	)		1,290		1,768		(479	)		1,289
Internally developed software		1,137		(734	)		403		973		(639	)		334
Customer relationships		—		—			—		196		(196	)		—
Mining projects		49		(8	)		41		47		(7	)		40
Industrial property and trademarks		29		(17	)		12		32		(16	)		16
Other intangible assets		390		(216	)		174		357		(180	)		177
	$	10,842		(1,481	)		9,361	$	11,047		(1,517	)		9,530

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Goodwill and intangible assets – continued

Changes in consolidated goodwill for the years ended December 31, 2024 and 2023, were as follows:

	2024
Balance at beginning of period	$	7,674		7,538
Divestitures and reclassifications (note 4.2)		(92	)	—
Business combinations (note 4.1)		5		8
Foreign currency translation effects		(146	)	128
Balance at end of period	$	7,441		7,674

Changes in intangible assets of definite life in 2024 and 2023, were as follows:

	2024
	Extractionrights			Internallydevelopedsoftware ^1^			Miningprojects			Industrialproperty andtrademarks			Others			Total
Balance at beginning of period	$	1,289			334			40			16			177			1,856
Amortization for the period		(47	)		(103	)		(1	)		(1	)		(33	)		(185	)
Additions (disposals), net ^1^		55			188			3			(2	)		52			296
Foreign currency translation effects		(7	)		(16	)		(1	)		(1	)		(22	)		(47	)
Balance at the end of period	$	1,290			403			41			12			174			1,920
	2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Extractionrights			Internallydevelopedsoftware ^1^			Miningprojects			Industrialpropertyandtrademarks			Others			Total
Balance at beginning of period	$	1,277			286			33			17			142			1,755
Amortization for the period		(42	)		(91	)		(1	)		(1	)		(20	)		(155	)
Impairment (note 7)		(7	)		—			—			—			—			(7	)
Additions (disposals), net ^1^		2			148			7			2			48			207
Business combinations		26			—			—			—			—			26
Foreign currency translation effects		33			(9	)		1			(2	)		7			30
Balance at the end of period	$	1,289			334			40			16			177			1,856
1	Includes the capitalized direct costs incurred in the development stage of<br>internal-use software, such as professional fees, direct labor and related travel expenses. The capitalized amounts are amortized to the statement of income over a period ranging from 3 to 5 years.<br>
---	---
16.2)	ANALYSIS OF GOODWILL IMPAIRMENT
---	---

Cemex mandatorily analyses the possible impairment of goodwill at least once a year during the last quarter, or additionally, on any interim date when impairment indicators exist, by means of determining the value in use of its groups of Cash Generating Units (“CGUs”) to which goodwill balances have been allocated. The value in use represents the discounted cash flow projections of each CGU for the next five years plus a terminal value using risk adjusted discount rates.

In 2024, Cemex did not determine goodwill impairment losses, considering that in most cases, Cemex’s cash flows projections by reportable operating segment to which goodwill balances have been allocated slightly improved as compared to 2023, mainly due to reductions in the applicable discount rates, which on weighted average decreased 70 basis points (0.7%) against 2023, while the generation of Operating EBITDA is generally expected to remain flat considering geopolitical uncertainty among other factors.

In 2023, Cemex did not determine goodwill impairment losses considering the increase in the Company’s projected cash flows linked to the improved generation of Operating EBITDA against 2022 in the majority of the reportable operating segments to which goodwill balances have been allocated and the positive outlook at the time for the following years, partly offset by the general increase in the applicable discount rates as compared to 2022, which on average increased 120 basis points or 1.2%.

In 2022, as part of the mandatory impairment tests during the fourth quarter, Cemex recognized within “Other expenses, net” (note 7), non-cash goodwill impairment losses for an aggregate amount of $365, of which, $273 related to the operating segment in the United States and $92 related to the operating segment in Spain. In both cases, the book value of the operating segments exceeded their corresponding value in use. The impairment losses in 2022 were mainly related to the significant increase in the discount rates as compared to 2021 and the resulting significant decrease in the Company’s projected cash flows in these segments considering the global high inflationary environment at the time, which increased the risk-free rates, and the material increase in the funding cost observed in the industry during the period. These negative effects more than offset the expected improvements in the estimated Operating EBITDA generation in both the United States and Spain.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Analysis of goodwill impairment – continued

As of December 31, 2024 and 2023, goodwill balances allocated by operating segment, net of cumulative impairment adjustments, were as follows:

	2024
Mexico	$	359	441
United States		6,176	6,176
EMEA
United Kingdom		259	264
France		194	207
Spain		55	59
Philippines ^1^		—	82
Rest of EMEA ^2^		50	50
SCA&C
Colombia		220	254
Caribbean TCL		83	83
Rest of SCA&C ^3^		45	58
	$	7,441	7,674
1	In December 2024, Cemex sold its operations and assets in the Philippines (note 4.2).<br>
---	---
2	This caption refers to the operating segments in Israel, the Czech Republic, Egypt and Germany.<br>
---	---
3	This caption refers to the operating segments in the Caribbean and Panama. In 2024, goodwill<br>associated with the Company’s operations in the Dominican Republic of $13 was reclassified to “Assets held for sale” (note 4.2).
---	---

As of December 31, 2024, 2023 and 2022, Cemex’s pre-tax discount rates and long-term growth rates used to determine the discounted cash flows in the group of CGUs with the main goodwill balances were as follows:

	Discount rates			Long-term growth rates^1^
Groups of CGUs	2024	2023	2022	2024	2023	2022
United States	9.4%	10.1%	9.1%	2.1%	2.0%	2.0%
United Kingdom	9.7%	10.4%	9.1%	1.3%	1.5%	1.5%
France	9.8%	10.4%	9.2%	1.3%	1.5%	1.4%
Spain	9.8%	10.7%	9.4%	1.6%	1.6%	1.7%
Mexico	10.9%	11.6%	10.3%	0.5%	1.0%	1.1%
Colombia	12.1%	12.7%	10.9%	3.0%	3.3%	3.3%
Range of rates in other countries	9.6% — 12.8%	10.3% — 14.7%	9.3% — 13.9%	0.7% — 4.0%	1.1% — 4.0%	1.5% — 4.5%
1	Cemex’s long-term growth rates are generally based on projections issued by the International Monetary<br>Fund (“IMF”) as maximum benchmarks but may be adjusted downwards based on industry specific expectations.
---	---

As of December 31, 2024, the discount rates used by Cemex in its cash flows projections to determine the value in use of its operating segments (group of CGUs) to which goodwill was allocated, decreased by a weighted average of 0.7% as compared to 2023, mainly considering the decrease in the risk-free rate which changed from 4.79% in 2023 to 4.25% in 2024 and the reduction in the funding cost that changed from 6.7% in 2023 to 5.3% in 2024, net of the decrease in the weight of debt which changed from 22.5% in 2023 to 21.1% in 2024 and the slight reduction in the public comparable companies’ stock volatility (“Beta”) which changed from 1.07 in 2023 to 1.05 in 2024. These reductions were partially offset by the increase in the market premium which changed from 5.9% in 2023 to 6.0% in 2024. These financial assumptions will be revised upwards or downwards again in the future.

As of December 31, 2023, the discount rates used by Cemex in its cash flows projections to determine the value in use of its operating segments to which goodwill was allocated, increased by a weighted average of 1.2% as compared to 2022, mainly considering the increase in the risk-free rate which changed from 3.58% in 2022 to 4.79% in 2023 and the reduction in the weight of debt which changed from 27% in 2022 to 22.5% in 2023. This was partially offset by the reduction in the Beta which changed from 1.08 in 2022 to 1.07 in 2023. In 2023, the funding cost remained unchanged at 6.7% as compared to 2022, as well as other assumptions that remained relatively flat in 2023 as compared to 2022.

As of December 31, 2022, the discount rates used by Cemex in its cash flows projections to determine the value in use of its operating segments to which goodwill was allocated, increased by a weighted average of 2.0% as compared to 2021, mainly considering the increase in the risk-free rate which changed from 1.82% in 2021 to 3.58% in 2022, the increase in the funding cost which changed from 4.1% in 2021 to 6.7% in 2022 and the average increase of 1.7% in the cost of equity in 2022. The other variables remained relatively flat.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Analysis of goodwill impairment – continued

In connection with the aforementioned discount rates and long-term growth, Cemex verified the reasonableness of its conclusions using sensitivity analyses to changes in assumptions, affecting the value in use of all groups of CGUs with an independent reasonably possible increase of 1% in the pre-tax discount rate, an independent possible decrease of 1% in the long-term growth rate, as well as using multiples of Operating EBITDA, by means of which, Cemex determined a weighted-average multiple of Operating EBITDA to enterprise value observed in recent mergers and acquisitions in the industry. The average multiple was then applied to a stabilized amount of Operating EBITDA and the result was compared to the corresponding carrying amount for each group of CGUs to which goodwill had been allocated. Cemex considered an average Operating EBITDA multiple of 9.7 times in 2024 obtained from its recent divestment transactions.

In relation to the economic assumptions used by the Company described above, the additional impairment losses that would have resulted from the sensitivity analyses derived from independent changes in each of the relevant assumptions, as well as the average multiple of Operating EBITDA, in those operating segments that presented relative impairment risk as of December 31, 2024, are as follows:

			Impairment effects from the sensitivity analyses tochanges in assumptions as of December 31, 2024
Operating segment	Impairmentlossesrecognized		Discount rate<br>+1%		Long-termgrowth rate<br>–1%		MultiplesOperatingEBITDA<br>9.7x
United States	$	—		509		213		—
Colombia	$	—		49		23		—

As of December 31, 2024, the factors considered by the Company’s management that could cause the hypothetical scenario of the previous sensitivity analyses of discount rates in the United States and Colombia, an independent increase of 450 bps (4.5%) in the Company’s funding cost observed as of December 31, 2024 of 5.3% or, an independent increase in the risk-free rate of 125 bps to reach 5.5%. Nonetheless, such assumptions did not seem reasonable as of December 31, 2024 in an environment with inflation receding and consequently with interest rates decreasing. Cemex continually monitors the evolution of the groups of CGUs to which goodwill has been allocated that have presented relative goodwill impairment risk in any of the reported periods and if the relevant economic variables and the related value in use would be negatively affected, it may result in goodwill impairment losses in the future.

Impairment tests are significantly sensitive to the estimation of future prices of Cemex’s products, the development of operating expenses, local and international economic trends in the construction industry, the long-term growth expectations in the different markets, as well as the discount rates and the growth rates in perpetuity applied. For purposes of estimating future prices, Cemex uses, to the extent available, historical data; plus the expected increase or decrease according to information issued by trusted external sources, such as national construction or cement producer chambers and/or in governmental economic expectations. Operating expenses are normally measured as a constant proportion of revenues, following experience. However, such operating expenses are also reviewed considering external information sources in respect of inputs that behave according to international prices, such as oil and gas. Cemex uses specific pre-tax discount rates for each group of CGUs to which goodwill is allocated, which are applied to discount pre-tax cash flows. The amounts of estimated undiscounted cash flows are significantly sensitive to the growth rate in perpetuity applied. The higher the growth rate in perpetuity applied, the higher the amount of undiscounted future cash flows by group of CGUs obtained. Moreover, the amounts of discounted estimated future cash flows are significantly sensitive to the weighted average cost of capital (discount rate) applied. The higher the discount rate applied, the lower the amount of discounted estimated future cash flows by group of CGUs obtained.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

17)	FINANCIAL INSTRUMENTS
17.1)	CURRENT AND NON-CURRENT DEBT
---	---

As of December 31, 2024 and 2023, Cemex’s consolidated debt summarized by interest rates and currencies, was as follows:

	2024								2023
	Current			Non-current			Total ^1, 2^		Current			Non-current			Total ^1, 2^
Floating rate debt	$	23			1,305			1,328	$	13			1,968			1,981
Fixed rate debt		166			4,035			4,201		12			4,235			4,247
	$	189			5,340			5,529	$	25			6,203			6,228
Effective rate ^3^
Floating rate		5.1	%		6.0	%				6.4	%		7.1	%
Fixed rate		7.3	%		4.6	%				4.4	%		5.0	%
	2024									2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Currency	Current		Non-current		Total		Effective rate ^3^			Current		Non-current		Total		Effective rate ^3^
Dollars	$	161		3,595		3,756		5.1	%	$	1		4,348		4,349		5.5	%
Euros		2		876		878		3.9	%		9		990		999		4.2	%
Pesos		—		842		842		11.2	%		—		704		704		12.0	%
Philippine Pesos		—		—		—		—			11		112		123		7.1	%
Other currencies		26		27		53		5.4	%		4		49		53		4.5	%
	$	189		5,340		5,529				$	25		6,203		6,228
1	As of December 31, 2024 and 2023, from the total debt of $5,529 and $6,228, respectively, 95%<br>and 94% was held in the Parent Company and 5% and 6% in subsidiaries of the Parent Company, respectively.
---	---
2	As of December 31, 2024 and 2023, cumulative discounts, fees and other direct costs incurred in<br>Cemex’s outstanding debt borrowings and the issuance of notes payable (jointly “Issuance Costs”) for $29 and $47, respectively, are presented reducing debt balances and are amortized to financial expense over the maturity of the<br>related debt instruments under the effective interest rate method.
---	---
3	In 2024 and 2023, represents the weighted-average effective interest rate of the related debt<br>agreements determined at the end of each period.
---	---

As of December 31, 2024 and 2023, Cemex’s consolidated debt summarized by type of instrument, was as follows:

2024	Current		Non-current
Bank loans
Lines of credit, 2025 to 2026	$	11		81
Syndicated loans, 2026 to 2029		—		1,731
		11		1,812
Notes payable
Medium-term notes, 2025 to 2031		150		3,538
Other notes payable, 2025 to 2027		6		12
		156		3,550
Total bank loans and notes payable		167		5,362
Current maturities		22		(22	)
	$	189		5,340
2023	Current		Non-current
---	---	---	---	---	---
Bank loans
Lines of credit, 2024 to 2025	$	10		202
Syndicated loans, 2025 to 2028		—		2,476
		10		2,678
Notes payable
Medium-term notes, 2026 to 2031		—		3,508
Other notes payable, 2024 to 2027		5		27
		5		3,535
Total bank loans and notes payable		15		6,213
Current maturities		10		(10	)
	$	25		6,203

Changes in consolidated debt for the years ended December 31, 2024, 2023 and 2022 were as follows:

	2024
Debt at beginning of year	$	6,228		6,971		7,379
Proceeds from new debt instruments		5,048		2,938		2,006
Debt repayments		(5,497	)	(3,840	)	(2,420	)
Foreign currency translation and accretion effects		(250	)	159		6
Debt at end of year	$	5,529		6,228		6,971

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Consolidated debt – continued

As a result of transactions incurred during the reported periods to issue, refinance, replace and/or repurchase existing debt instruments, as applicable, Cemex paid transactional costs, including premiums and/or redemption costs (jointly the “Transactional Costs”) for aggregate amounts of $22 in 2024, $72 in 2023 and $51 in 2022. Of these Transactional Costs, $9 in 2024, $16 in 2023 and $4 in 2022, corresponding to new debt instruments or the refinancing of existing debt, adjusted the carrying amount of the related debt instruments and are amortized over the remaining term of each instrument, while $56 in 2023 and $47 in 2022 of such Transactional Costs, associated with the extinguished portion of the related debt, were recognized each period in the caption “Financial income and other items, net.” In addition, Transactional Costs pending for amortization related to extinguished debt instruments of $2 in 2024, $12 in 2023 and $6 in 2022 were also recognized within “Financial income and other items, net.”

As of December 31, 2024 and 2023, non-current notes payable for $3,550 and $3,535, respectively, were detailed as follows:

Description		Issuer^1^							2024
2023 CEBURES variable<br>rate ^3^	05/Oct/23	Cemex, S.A.B. de C.V.	Peso	3,000	TIIE+.45	%	01/Oct/26		$	144	59
2023 CEBURES fixed rate^^^3^	05/Oct/23	Cemex, S.A.B. de C.V.	Peso	8,500	11.480	%	26/Sep/30			411	292
July 2031 Notes ^4^	12/Jan/21	Cemex, S.A.B. de C.V.	Dollar	1,750	3.875	%	11/Jul/31	)		1,104	1,102
September 2030 Notes ^4^	17/Sep/20	Cemex, S.A.B. de C.V.	Dollar	1,000	5.2	%	17/Sep/30	)		715	714
November 2029 Notes ^4^	19/Nov/19	Cemex, S.A.B. de C.V.	Dollar	1,000	5.45	%	19/Nov/29	)		750	749
March 2026 Notes ^4^	19/Mar/19	Cemex, S.A.B. de C.V.	Euro	400	3.125	%	19/Mar/26			414	441
July 2025 Notes	01/Apr/03	Cemex Materials LLC	Dollar	150	7.70	%	21/Jul/25			—	151
Other notes payable										12	27
									$	3,550	3,535

All values are in US Dollars.

1	As of December 31, 2024, except for the July 2025 Notes and other notes payable, these issuances<br>are fully and unconditionally guaranteed by Cemex Concretos, S.A. de C.V., Cemex Operaciones México, S.A. de C.V., Cemex Innovation Holding Ltd. and Cemex Corp. The July 2025 Notes are fully and unconditionally guaranteed by Cemex Corp.<br>
2	Presented net of all notes repurchased by Cemex. As of December 31, 2024, all repurchased notes<br>have been canceled.
---	---
3	On February 16, 2024, Cemex reopened and placed an additional principal amount of Ps5,500 of its<br>sustainability-linked long-term notes (Certificados Bursátiles de Largo Plazo or the “2023 CEBURES”) issued in 2023 . The reopening closed on February 20, 2024 and consisted of two tranches: the first of Ps2,000 at a<br>floating annual interest rate of TIIE 28 plus 0.45%, and the second of Ps3,500 at a fixed annual interest rate of 11.48%. In connection with these issuances in 2024 and 2023, Cemex negotiated interest rate and currency derivative instruments to<br>synthetically change the financial risks profile of these issuances from the Peso to the Dollar (note 17.4).
---	---
4	During 2022, pursuant to tender offers and other market transactions, Cemex partially repurchased<br>several series of its notes for an aggregate notional amount of $1,172. The difference between the amount paid for such notes and the notional amount redeemed, net of transactional costs, generated a repurchase gain of $104, recognized in the line<br>item “Financial income and other items, net.”
---	---

The maturities of consolidated long-term debt as of December 31, 2024, were as follows:

	Bank loans
2026	$	275	565	840
2027		694	4	698
2028		694	2	696
2029		93	750	843
2030 and thereafter		34	2,229	2,263
	$	1,790	3,550	5,340

As of December 31, 2024, Cemex had the following lines of credit, of which, the committed portion refers to the revolving credit facility under the 2023 Credit Agreement, at annual interest rates ranging between 5.25% and 6.35%, depending on the negotiated currency:

	Lines of credit
Other lines of credit in foreign subsidiaries<br>^1^	$	392	250
Other lines of credit from banks<br>^1^		1,009	1,009
Revolving credit facility 2023 Credit Agreement		2,311	2,311
	$	3,712	3,570
1	Uncommitted amounts subject to the banks’ availability.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Consolidated debt – continued

Sustainability-linked and green financing

As of December 31, 2024 and 2023, Cemex’s consolidated debt of $5,529 and $6,228, respectively, included balances outstanding denominated in Dollars, Euros and Pesos under either its 2021 Sustainability-linked Financing Framework (the “2021 SLFF”) or its 2023 Sustainability-linked Financing Framework (the “2023 SLFF”, and together with the 2021 SLFF, the “SLFFs”) of $4,597 in 2024 and $4,227 in 2023, representing the Company’s debt that is linked and aligned to Cemex’s strategy of CO2 emissions reduction and its ultimate vision of a carbon-neutral economy (note 24.3).

As of December 31, 2024, the balance of debt under the SLFFs includes $4,042 of debt arising from bank loans, including the 2023 Credit Agreement described below. Under the 2023 Credit Agreement, the annual performance in respect to the metrics referenced in the 2023 SLFF may result in a total adjustment of the interest rate margin of plus or minus 5 bps^1^, in line with other sustainability-linked facilities from investment-grade rated borrowers.

The remainder of the debt balance under the SLFFs relates to the 2023 CEBURES. Of these, $144 or the variable rate leg is linked exclusively to one metric of the 2023 SLFF and may result in an increase of 20 bps in the nominal value at redemption. The remaining $411, or the fixed rate leg is also linked to only one metric of the 2023 SLFF and may result in a per annum increase of 25 bps to the interest rate applicable to the last four semi-annual coupon payments.

On November 8, 2021, Cemex, S.A.B. de C.V. closed a Dollar-denominated $3,250 syndicated sustainability-linked credit agreement (the “2021 Credit Agreement”), which proceeds were mainly used to fully repay its previous syndicated facilities agreement entered in 2017. The 2021 Credit Agreement was the first debt instrument issued by Cemex under the 2021 SLFF. Additionally, Cemex’s securitization programs (notes 10 and 17.2) are linked to the SLFFs, utilizing one or more metrics and may result in an annual fee payment equivalent to up to 5 bps of the total facilities amount.

2023 Credit Agreement and 2021 Credit Agreement

On October 30, 2023, Cemex refinanced its 2021 Credit Agreement (as described below), extending the maturity to 2028. The refinanced 2021 Credit Agreement (the “2023 Credit Agreement”) comprises a $1,000, 5-year amortizing term loan and a $2,000, 5-year committed revolving credit facility (“RCF”). The 2023 Credit Agreement represented a reduction of $500 in the term loan and an increase of $250 in the revolver of the 2021 Credit Agreement. The 2023 Credit Agreement, denominated exclusively in Dollars, maintained its previous interest rate margin and financial covenants, consistent with an investment-grade capital structure, which provide for a maximum ratio of Consolidated Net Debt (as defined below) to Consolidated EBITDA (as defined below) (“Consolidated Leverage Ratio”) of 3.75 times throughout the life of the loan and a minimum ratio of Consolidated EBITDA to interest expense (“Consolidated Coverage Ratio”) of 2.75 times. As of December 31, 2024 and 2023, the debt outstanding under the 2023 Credit Agreement amounted to $1,000 and $1,600, which included amounts owed under the RCF of $600 in 2023.

All tranches under the 2023 Credit Agreement include a margin over SOFR**^1^** from 100 bps**^1^** to 175 bps, depending on the Consolidated Leverage Ratio ranging from less than or equal to 2.25 times in the lower end to greater than 3.25 times in the higher end.

The balance of debt under the 2023 Credit Agreement, in which Cemex, S.A.B. de C.V. is the borrower, is guaranteed by Cemex Concretos, S.A. de C.V., Cemex Operaciones México, S.A. de C.V., Cemex Innovation Holding Ltd. and Cemex Corp. This guarantor structure is applicable in all senior notes of the Parent Company and the previous 2021 Credit Agreement.

The 2023 Credit Agreement contains ongoing representations, warranties, affirmative and negative covenants, including financial covenants. As of December 31, 2024 and 2023, Cemex was in compliance with all covenants contained in the 2023 Credit Agreement. Cemex cannot assure that in the future it will be able to comply with all such covenants, including any financial covenants, which non-compliance, if not remedied, could result in an event of default, which could materially and adversely affect Cemex’s business and financial condition.

1	The Secured Overnight Financing Rate (“SOFR”) is a measure of the cost of borrowing cash<br>overnight collateralized by Treasury securities. As of December 31, 2024 and 2023, SOFR rate was 4.49% and 5.38%, respectively. The contraction “bps” means basis points. One hundred basis points equal 1%.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Consolidated debt – continued

Financial Covenants

Under the 2023 Credit Agreement and the 2021 Credit Agreement, as applicable depending on the reported period, at the end of each quarter for each period of four consecutive quarters, Cemex must comply with a maximum Consolidated Leverage Ratio of 3.75 times and a minimum Consolidated Coverage Ratio of 2.75 times throughout the life of the corresponding credit agreement. These financial ratios are calculated using the consolidated amounts under the terms of the agreement.

Consolidated Leverage Ratio

•

Under the 2023 Credit Agreement and the 2021 Credit Agreement, the ratio is calculated by dividing “Consolidated Net Debt” by “Consolidated EBITDA” for the last twelve months as of the calculation date. Consolidated Net Debt equals debt, as reported in the statement of financial position, net of cash and cash equivalents, excluding any existing or future obligations under any securitization program, and any subordinated debt of Cemex, adjusted for net mark-to-market of all derivative instruments, as applicable, among other adjustments including in relation for business acquisitions or disposals.

Consolidated EBITDA: Under the 2023 Credit Agreement and the 2021 Credit Agreement, represents Operating EBITDA for the last twelve months as of the calculation date, as adjusted for any discontinued EBITDA, and solely for the purpose of calculating the Consolidated Leverage Ratio on a pro forma basis for any material disposition and/or material acquisition.

Consolidated Coverage Ratio

•	Under the 2023 Credit Agreement and the 2021 Credit Agreement, the ratio is calculated by dividing<br>Consolidated EBITDA by the financial expense for the last twelve months as of the calculation date.

As of December 31, 2024, 2023 and 2022, under the 2023 Credit Agreement and the 2021 Credit Agreement, as applicable, the main consolidated financial ratios were as follows:

Consolidated financial ratios		Refers to the compliance limits and calculations that wereeffective on each date
		2024		2023		2022
Leverage ratio	Limit		<=3.75		<=3.75		<=3.75
	Calculation		1.81		2.06		2.84
Coverage ratio	Limit		>=2.75		>=2.75		>=2.75
	Calculation		7.26		7.91		6.27

As a result of noncompliance with the agreed upon financial ratios or, in such event, the absence of a waiver of compliance or a negotiation thereof, after certain procedures followed upon Cemex’s lenders’ request, they may call for the acceleration of payments due under the 2023 Credit Agreement. That scenario would have a material adverse effect on Cemex’s operating results, liquidity or financial position. Cemex’s ability to comply with these ratios may be affected by economic conditions, volatility in foreign exchange rates, as well as by overall conditions in the financial and capital markets or other factors.

Cemex will classify all of its non-current debt as current debt if: 1) as of any measurement date Cemex fails to comply with any covenants that would cause a default, including the aforementioned financial ratios; and/or 2) the cross default-clause that is part of the 2023 Credit Agreement is triggered by the provisions contained therein. Moreover, although Cemex will not classify its non-current debt as current debt in the following events, Cemex will disclose the fact if: (i) as of any date prior to a subsequent measurement date Cemex expects not to be in compliance with such financial ratios in the absence of: a) amendments and/or waivers covering the next succeeding 12 months; b) high probability that the violation will be cured during any agreed upon remediation period and be sustained for the next succeeding 12 months; and/or c) an agreement to refinance the relevant debt on a long-term basis.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

17.2) OTHER FINANCIAL OBLIGATIONS

As of December 31, 2024 and 2023, other financial obligations in the consolidated statement of financial position were detailed as follows:

	2024						2023
	Current		Non-current		Total		Current		Non-current		Total
I. Leases	$	269		902		1,171	$	272		986		1,258
II. Liabilities secured with accounts receivable		658		—		658		678		—		678
	$	927		902		1,829	$	950		986		1,936
I.	Leases (notes 8.1, 15.2, 24.1 and 29.4)
---	---

Cemex has several operating and administrative assets under lease contracts (note 15.2). As mentioned in note 29.4, Cemex applies the recognition exemption for short-term leases and leases of low-value assets. Changes in the balance of lease financial liabilities during 2024, 2023 and 2022 were as follows:

	2024
Lease financial liability at beginning of year	$	1,258		1,176		1,176
Additions from new leases		290		341		296
Reductions from payments		(296	)	(256	)	(276	)
Cancellations and liability remeasurements		(47	)	(24	)	7
Foreign currency translation and accretion effects		(34	)	21		(27	)
Lease financial liability at end of year	$	1,171		1,258		1,176

As of December 31, 2024, the maturities of non-current lease financial liabilities are as follows:

	Total
2026	$	203
2027		149
2028		124
2029		85
2030 and thereafter		341
	$	902

Total cash outflows for leases in 2024, 2023 and 2022, including the interest expense portion as disclosed in note 8.1, were $371, $331 and $342, respectively. Future payments associated with these contracts are presented in note 24.1.

II.	Liabilities secured with accounts receivable

As mentioned in note 10, as of December 31, 2024 and 2023, the funded amounts of trade accounts receivable sold under securitization programs and/or factoring programs with recourse of $658 and $678, respectively, were recognized within the line item “Other financial obligations” in the statement of financial position. For the years ended December 31, 2024, 2023 and 2022, the net cash flows generated by (used in) these securitization programs were $3, $(18) and $79, respectively.

The balances of the Company’s other financial obligations associated with the programs for the sale of accounts receivable mentioned above are part of Cemex’s total obligations under the SLFFs framework mentioned before, which are linked and aligned to Cemex’s strategy of CO2 emissions reduction and its ultimate vision of a carbon-neutral economy (note 24.3).

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

17.3) FAIR VALUE OF FINANCIAL INSTRUMENTS

Under IFRS, fair value represents an “Exit Value” which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, considering the counterparty’s credit risk in the valuation. Exit Value is premised on the existence of a market and market participants for the specific asset or liability. When there are no market and/or market participants, IFRS establishes a fair value hierarchy that gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements), inputs other than quoted prices in active markets that are observable for the asset or liability, either directly or indirectly, used mainly to determine the fair value of securities, investments or loans that are not actively traded (Level 2 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements).

Financial assets and liabilities

The book values of cash, trade accounts receivable, other accounts receivable, trade payables, other accounts payable and accrued expenses, as well as short-term debt, approximate their corresponding estimated fair values due to the revolving nature of these financial assets and liabilities in the short-term.

The estimated fair value of Cemex’s non-current debt is level 1 and level 2 and is either based on estimated market prices for such or similar instruments, considering interest rates currently available for Cemex to negotiate debt with the same maturities, or determined by discounting future cash flows using market-based interest rates currently available to Cemex.

The fair values determined by Cemex for its derivative financial instruments are level 2. There is no direct measure for the risk of Cemex or its counterparties in connection with such instruments. Therefore, the risk factors applied for Cemex’s assets and liabilities originated by the valuation of such derivatives were extrapolated from publicly available risk discounts for other public debt instruments of Cemex or its counterparties.

The estimated fair value of derivative instruments fluctuates over time and is determined by measuring the effect of future relevant economic variables according to the yield curves shown in the market as of the reporting date. These values should be analyzed in relation to the fair values of the underlying transactions and as part of Cemex’s overall exposure to fluctuations in interest rates and foreign exchange rates. The notional amounts of derivative instruments do not represent amounts of cash exchanged by the parties, and consequently, there is no direct measure of Cemex’s exposure to the use of these derivatives. The amounts exchanged are determined based on the notional amounts and other terms included in the derivative instruments.

As of December 31, 2024 and 2023, the carrying amounts of financial assets and liabilities and their respective fair values were as follows:

	2024				2023
	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Derivative financial instruments (notes 14.2 and 17.4)	$	60		60	$	64		64
Other investments and non-current accounts receivable<br>(note 14.2)		196		179		276		266
	$	256		239	$	340		330
Financial liabilities
Long-term debt (note 17.1)	$	5,340		5,145	$	6,203		6,030
Other financial obligations (note 17.2)		902		898		986		919
Derivative financial instruments (notes 17.4 and 18.3)		100		100		15		15
	$	6,342		6,143	$	7,204		6,964

As of December 31, 2024 and 2023, assets and liabilities carried at fair value in the consolidated statements of financial position are included in the following fair value hierarchy categories (note 29.4):

2024	Level 1		Level 2		Level 3		Total
Assets measured at fair value
Derivative financial instruments (notes 14.2 and 17.4)	$	—		60		—		60
Investments in strategic equity securities (note 14.2)		4		—		—		4
Other investments at fair value through earnings (note 14.2)		—		1		—		1
	$	4		61		—		65
Liabilities measured at fair value
Derivative financial instruments (notes 17.4 and 18.3)	$	—		100		—		100
2023	Level 1		Level 2		Level 3		Total
---	---	---	---	---	---	---	---	---
Assets measured at fair value
Derivative financial instruments (notes 14.2 and 17.4)	$	—		64		—		64
Investments in strategic equity securities (note 14.2)		3		—		—		3
Other investments at fair value through earnings (note 14.2)		—		1		—		1
	$	3		65		—		68
Liabilities measured at fair value
Derivative financial instruments (notes 17.4 and 18.3)	$	—		15		—		15

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

17.4) DERIVATIVE FINANCIAL INSTRUMENTS

During the reported periods, in compliance with the guidelines established by its Risk Management Committee, the restrictions set forth by its debt agreements and its hedging strategy (note 17.5), Cemex held derivative instruments with the objectives explained in the following paragraphs.

As of December 31, 2024 and 2023, the notional amounts and fair values of Cemex’s derivative instruments were as follows:

	2024					2023
	Notional amount		Fair value			Notional amount		Fair value
I. Foreign exchange forwards hedging the net investment	$	713		63			976		(94	)
II. Cross currency swaps		658		(100	)		335		23
III. Interest rate swaps		600		14			750		30
IV. Fuel price hedging		356		6			232		5
V. Foreign exchange options		650		41			300		10
	$	2,977		24			2,593		(26	)

The caption “Financial income and other items, net” in the statements of income includes certain gains and losses related to the recognition of changes in fair values of the derivative financial instruments during the applicable period, which represented net losses of $2 in 2024, $19 in 2023 and $5 in 2022. During the reported periods, Cemex did not have derivatives designated as fair value hedges.

I.	Net investment hedges

As of December 31, 2024 and 2023, there are Dollar/Peso foreign exchange forward contracts with target tenor ranging from 1 to 15 months for notional amounts of $492 and $518, respectively. Cemex has designated this program as a hedge of Cemex’s net investment in Pesos, pursuant to which changes in the fair market value of these instruments are recognized as part of other equity reserves. For the years 2024, 2023 and 2022, these contracts generated gains of $86 and losses of $172 and $96, respectively, which partially offset currency translation effects in each year recognized in equity generated from Cemex’s net assets denominated in Pesos. The gains generated in 2024 from these derivatives are related to the depreciation of the Peso during the year, while the losses during 2023 and 2022 were related to the appreciation of the Peso in both years.

In addition, as of December 31, 2024 and 2023, as part of Cemex’s Peso net investment hedge strategy, there are additional Dollar/Peso capped forwards, structured with option contracts, for a notional amount of $221 and $458, respectively. These capped forwards contain limits on the upside that the instrument may generate. Changes in the fair market value of such capped forward contracts are also recognized as part of other equity reserves. For the years 2024, 2023, and 2022, these contracts generated gains of $43, and losses of $54 and $2, respectively, which partially offset currency translation effects recognized in equity generated from Cemex’s net assets denominated in Pesos due to the depreciation of the Peso in 2024 and the appreciation of the Peso in 2023 and 2022.

Moreover, during the year 2022, Cemex unwound Dollar/Euro cross-currency swap contracts for a notional amount of $750, which resulted in a settlement gain of $80 in equity. Cemex designated the foreign exchange forward component of these instruments as a hedge of Cemex’s net investment in Euros and changes in fair market were recognized as part of other equity reserves, while changes in fair value of the interest rate swap component until settlement were recognized within the line item of “Financial income and other items, net,” representing gains of $8 in 2022. For the year 2022, the foreign exchange forward component generated gains of $70 recognized in equity, which partially offset currency translation losses recognized in equity generated from Cemex’s net assets denominated in Euros due to the depreciation of the Euro against the Dollar in 2022, related to the exchange of interest rates in the statement of income.

II.	Cross currency swaps

As of December 31, 2024 and 2023, Cemex held cross-currency swap contracts for a notional amount of $658 and $335, respectively, in connection with the 2023 CEBURES as described in note 17.1, aiming to change the rate and currency risk profile of such 2023 CEBURES from the Peso to the Dollar. Cemex designated these contracts as cash flow hedges of interest rate payments in relation to an equivalent amount of variable and fixed interest rate debt. Changes in fair value of these contracts for the interest rate swap leg are initially recognized as part of other equity reserves and are subsequently allocated through financial expense as interest expense on the related loans is accrued in the statement of income, while changes in fair value of the currency forward leg are recognized directly in the statement of income partially offsetting the related Peso denominated debt’s foreign exchange fluctuation. For the years 2024 and 2023, changes in the fair value of these contracts generated losses of $123 and gains of $23, respectively, recognized in other comprehensive income. Moreover, during the same periods, Cemex reclassified results from equity to the line item “Financial expenses” representing income of $28 in 2024 and $5 in 2023.

III.	Interest rate swaps

For accounting purposes under IFRS, Cemex designates interest rate swaps as cash flow hedges, to fix interest rate payments in relation to an equivalent amount of floating interest rate debt. As a result, changes in the fair value of these contracts are initially recognized as part of other equity reserves and are subsequently reclassified to financial expense as the interest expense of the related floating interest rate debt is accrued in the statement of income.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Derivative financial instruments – Interest rate swaps – continued

As of December 31, 2024 and 2023, Cemex held interest rate swaps for a notional amount of $600 and $750, respectively, with a fair market value representing assets of $14 in 2024 and $30 in 2023, negotiated in June 2018 to fix interest payments of existing bank loans bearing Dollar floating rates. For the years 2024 and 2023, changes in the fair value of these contracts generated losses of $16 and $9, respectively and for the year 2022, gains of $69, recognized in other comprehensive income. Moreover, during the same periods, Cemex reclassified results from equity to the line item “Financial expenses” representing income of $23 in 2024, $22 in 2023 and expenses of $2 in 2022.

In addition, as of December 31, 2022, Cemex held interest rate swaps for a notional of $268 negotiated to fix interest payments of existing bank loans referenced to Peso floating rates that matured in November 2023, which fair value represented an asset of $15 in 2022. For the years 2023 and 2022 until their settlement, changes in the fair value of these contracts generated losses of $15 and gains of $3, respectively, recognized in other comprehensive income. Moreover, during the same periods, Cemex recycled results from equity to the “Financial expenses” line item representing gains of $18 in 2023, and $7 in 2022.

IV.	Fuel price hedging

As of December 31, 2024 and 2023, Cemex maintained swap and option contracts negotiated to hedge the price of certain fuels in several operations, primarily diesel and gas, for aggregate notional amounts of $134 and $110, respectively, with an estimated aggregate fair value representing assets of $1 in 2024 and also in 2023. By means of these contracts, for its own consumption only, Cemex either fixed the price of these fuels, or entered into option contracts to limit the prices to be paid for these fuels, over certain volumes representing a portion of the estimated consumption of such fuels in several operations. These contracts have been designated as cash flow hedges of diesel or gas consumption, and as such, changes in fair value are recognized temporarily through other equity reserves and are recycled to operating expenses as the related fuel volumes are consumed. For the years 2024, 2023 and 2022, changes in fair value of these contracts recognized in other equity reserves represented losses of $6, $6 and $25, respectively. Moreover, during the same periods, Cemex recycled results from equity to the line items of “Cost of sales” and “Operating expenses,” as applicable, representing losses in 2024 and in 2023, of $5 and $7, respectively, and gains of $88 in 2022.

In addition, as of December 31, 2024 and 2023, Cemex held Brent oil call spreads with a notional of $150 and $122, respectively, intended economically to mitigate the exposure over a portion of the diesel cost implicit in Cemex’s distribution expense. Changes in the fair value of these contracts are recognized directly in the statement of income as part of “Financial income and other items, net” which resulted in losses of $8 in 2024 and losses of $1 in 2023.

Moreover, as of December 31, 2024, Cemex held coal call spreads with notional of $72, intended to economically mitigate the exposure over the petcoke consumption in Cemex production process. Changes in the fair value of these contracts are recognized directly in the statement of income as part of “Financial income and other items, net” which resulted in losses of $9.

V.	Foreign exchange options

As of December 31, 2024 and 2023, Cemex held Dollar/Peso call spread option contracts for a notional amount of $650 and $300, respectively. Such contracts mature between January 2026 and October 2026 and were negotiated to maintain the value in Dollars over an equivalent amount of revenue generated in Pesos. Changes in the fair value of these instruments generated gains of $15 in 2024, losses of $18 in 2023 and $13 in 2022, recognized within “Financial income and other items, net” in the statement of income.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

17.5) RISK MANAGEMENT

Enterprise risks may arise from any of the following situations: i) the potential change in the value of assets owned or reasonably anticipated to be owned, ii) the potential change in value of liabilities incurred or reasonably anticipated to be incurred, iii) the potential change in value of services provided, purchase or reasonably anticipated to be provided or purchased in the ordinary course of business, iv) the potential change in the value of assets, services, inputs, products or commodities owned, produced, manufactured, processed, merchandised, leased or sold or reasonably anticipated to be owned, produced, manufactured, processed, merchandised, leased or sold in the ordinary course of business, or v) any potential change in the value arising from interest rate or foreign exchange rate exposures arising from current or anticipated assets or liabilities.

In the ordinary course of business, Cemex is exposed to commodities risk, including the exposure from inputs such as fuel, coal, petroleum coke, carbon slags, gypsum and other industrial materials which are commonly used by Cemex in the production process, and expose Cemex to variations in prices of the underlying commodities. To manage this and other risks, such as credit risk, interest rate risk, foreign exchange risk, equity risk and liquidity risk, considering the guidelines set forth by the Parent Company’s Board of Directors, which represent Cemex’s risk management framework and that are supervised by several Committees, Cemex’s management establishes specific policies that determine strategies oriented to obtain natural hedges to the extent possible, such as avoiding customer concentration on a determined market or aligning the currencies portfolio in which Cemex incurred its debt, with those in which Cemex generates its cash flows.

As of December 31, 2024 and 2023, these strategies are sometimes complemented with the use of derivative financial instruments as mentioned in note 17.4, such as the commodity forward contracts on fuels negotiated to fix the price of these underlying commodities.

The main risk categories are mentioned below:

Credit risk

Credit risk is the risk of economic loss faced by Cemex if a customer or counterparty to a financial instrument does not meet its contractual obligations and originates mainly from trade accounts receivable. As of December 31, 2024 and 2023, the maximum exposure to credit risk is represented by the balance of financial assets. Management has developed policies for the authorization of credit to customers. Exposure to credit risk is monitored constantly according to the payment behavior of debtors. Credit is assigned on a customer-by-customer basis and is subject to assessments which consider the customers’ payment capacity, as well as past behavior regarding due dates, balances past due and delinquent accounts. In cases deemed necessary, Cemex’s management requires guarantees from its customers and financial counterparties regarding financial assets.

The Company’s management has established a policy of low risk tolerance that analyzes the creditworthiness of each client individually before offering the general conditions of payment terms and delivery. The review includes external ratings when references are available and, in some cases, bank references. Thresholds of purchase limits are established for each client, which represent the maximum purchase amounts that require various levels of approval. Customers who do not meet the levels of solvency requirements imposed by Cemex are not granted with credit terms. As of December 31, 2024, Cemex’s best estimate of potential expected losses based on the ECL model (note 10) was $77.

Interest rate risk

Interest rate risk is the risk that a financial instrument’s fair value or future cash flows will fluctuate because of changes in market interest rates, which only affects Cemex’s results if the fixed-rate long-term debt is measured at fair value. Cemex’s fixed-rate long-term debt is carried at amortized cost and therefore is not subject to interest rate risk. Cemex’s exposure to the risk of changes in market interest rates relates primarily to its long-term debt obligations with floating interest rates, which, if such rates were to increase, may adversely affect its financing cost and the results for the period.

Additionally, there is an opportunity cost for continuing to pay a determined fixed interest rate when the market rates have decreased, and the entity may obtain improved interest rate conditions in a new loan or debt issuance. Cemex manages its interest rate risk by balancing its exposure to fixed and floating rates while attempting to reduce its interest costs. Cemex could renegotiate the conditions or repurchase the debt, particularly when the net present value (“NPV”) of the estimated future benefits from the interest rate reduction is expected to exceed the cost and commissions that would have to be paid in such renegotiation or repurchase of debt.

As of December 31, 2024 and 2023, 26%, respectively, of Cemex’s long-term debt was denominated in floating rates at a weighted-average interest rate of SOFR plus 95 basis points in 2024 and 95 basis points in 2023. These figures reflect the effect of interest rate swaps held by Cemex during 2024 and 2023. As of December 31, 2024 and 2023, if interest rates at that date had been 0.5% higher, with all other variables held constant, Cemex’s net income for 2024 and 2023 would have reduced by $14 and $14, respectively, because of higher interest expense on variable rate denominated debt. Conversely, a hypothetical 0.5% decrease in interest rates would have the opposite effect. This analysis does not include the effect of interest rate swaps held by Cemex during 2024 and 2023.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Risk management – continued

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Cemex’s exposure to the risk of changes in foreign exchange rates relates primarily to its operating activities. Due to its geographic diversification, Cemex’s revenues and costs are generated and settled in various countries and different currencies. For the year ended December 31, 2024, 29% of Cemex’s external revenues were generated in Mexico, 32% in the United States, 6% in the United Kingdom, 5% in France, 3% in Germany, 3% in Poland, 3% in Spain, 4% in Israel and 5% in the Rest of EMEA region, 3% in Colombia, 1% in Panama, 2% in Caribbean TCL and 2% in the Rest of SCA&C, and 2% in other activities.

Foreign exchange results incurred through monetary assets or liabilities in a currency different from its functional currency are recorded in the consolidated statements of income. Exchange fluctuations associated with foreign currency indebtedness related to the acquisition of foreign entities and exchange fluctuations in related parties’ long-term balances denominated in foreign currency that are not expected to be settled in the foreseeable future, are recognized in the statement of other comprehensive income. As of December 31, 2024, excluding from the sensitivity analysis the impact of translating the net assets denominated in currencies different from Cemex’s presentation currency, considering a hypothetical 10% strengthening of the Dollar against the Peso, with all other variables held constant, Cemex’s net income for 2024 would have decreased by $183, as a result of higher foreign exchange losses on Cemex’s Dollar-denominated net monetary liabilities held in consolidated entities with other functional currencies. Conversely, a hypothetical 10% weakening of the Dollar against the Peso would have the opposite effect.

As of December 31, 2024, 68% of Cemex’s financial debt was Dollar-denominated, 16% was Euro-denominated, 15% was Peso-denominated and 1% was in other currencies. Therefore, Cemex had a foreign currency exposure arising mainly from the Dollar-denominated debt versus the several currencies in which Cemex’s revenues are settled in most countries in which it operates. Cemex cannot guarantee that it will generate sufficient revenues in Dollars from its operations to service these obligations. As of December 31, 2024, Cemex had implemented a derivative financing hedging strategy using foreign exchange options for a notional amount of $650 to hedge the value in Dollar terms of revenues generated in Pesos to partially address this foreign currency risk (note 17.4). Complementarily, Cemex may negotiate other derivative financing hedging strategies in the future if either of its debt portfolio currency mix, interest rate mix, market conditions and/or economic expectations changes.

As of December 31, 2024 and 2023, Cemex’s consolidated net monetary assets (liabilities) by currency are as follows:

	2024
	Mexico			United States			EMEA			SCA&C			Others ^1^			Total
Monetary assets	$	1,683			648			1,216			241			338			4,126
Monetary liabilities		1,859			2,893			2,699			701			6,352			14,504
Net monetary assets (liabilities)	$	(176	)		(2,245	)		(1,483	)		(460	)		(6,014	)		(10,378	)
Out of which:
Dollars	$	(149	)		(2,248	)		(16	)		(24	)		(4,087	)		(6,524	)
Pesos		(27	)		—			—			—			(797	)		(824	)
Euros		—			—			(606	)		—			(1,278	)		(1,884	)
Pounds		—			—			(601	)		—			85			(516	)
Other currencies		—			3			(260	)		(436	)		63			(630	)
	$	(176	)		(2,245	)		(1,483	)		(460	)		(6,014	)		(10,378	)
	2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Mexico			United States			EMEA			SCA&C			Others ^1^			Total
Monetary assets	$	1,627			651			1,491			274			(241	)		3,802
Monetary liabilities		2,184			2,679			3,087			730			7,179			15,859
Net monetary assets (liabilities)	$	(557	)		(2,028	)		(1,596	)		(456	)		(7,420	)		(12,057	)
Out of which:
Dollars	$	(157	)		(2,030	)		(5	)		(61	)		(4,780	)		(7,033	)
Pesos		(400	)		—			—			—			(524	)		(924	)
Euros		—			—			(660	)		—			(1,563	)		(2,223	)
Pounds		—			—			(710	)		—			97			(613	)
Other currencies		—			2			(221	)		(395	)		(650	)		(1,264	)
	$	(557	)		(2,028	)		(1,596	)		(456	)		(7,420	)		(12,057	)
1	Includes the Parent Company, Cemex’s financing subsidiaries, among other entities.<br>
---	---

Considering that the Parent Company’s functional currency for its financial and holding company activities is the Dollar (note 29.3), foreign currency risk is associated with the translation into Dollars of subsidiaries’ net assets denominated in different currencies. When the Dollar appreciates, the value of these net assets denominated in other currencies decreases in terms of Dollars, generating negative foreign currency translation and reducing stockholders’ equity. Conversely, when the Dollar depreciates, the value of such net assets denominated in other currencies would increase in terms of Dollars generating the opposite effect. Cemex has implemented a Dollar/Peso foreign exchange forward contracts program to hedge foreign currency translation in connection with its net assets denominated in Pesos (note 17.4).

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Risk management – continued

Equity risk

Equity risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate in connection with changes in the market price of Cemex, S.A.B. de C.V.’s and/or third party’s shares. Under these equity derivative instruments, there is a direct relationship between the change in the fair value of the derivative and the change in price of the underlying share. All changes in the fair value of such derivative instruments, with certain exemptions for physically-only settled instruments, would be recognized in the statement of income as part of “Financial income and other items, net.” Although Cemex has negotiated equity forward contracts on its own shares and third-party shares in the past, during 2024, 2023 and 2022, Cemex did not have derivative financial instruments based on the price of the Parent Company’s shares or any third-party’s shares.

Liquidity risk

Liquidity risk is the risk that Cemex will not have sufficient funds available to meet its obligations. In addition to cash flows provided by its operating activities, to meet Cemex’s overall liquidity needs for operations, servicing debt and funding capital expenditures and other acquisitions, Cemex relies on cost-cutting and operating improvements to optimize capacity utilization and maximize profitability, as well as borrowing under credit facilities, proceeds of debt and equity offerings, and proceeds from asset sales. Cemex is exposed to risks from changes in foreign currency exchange rates, prices and currency controls, interest rates, inflation, governmental spending, social instability and other political, economic and/or social developments in the countries in which it operates, any one of which may materially affect Cemex’s results and reduce cash from operations. The maturities of Cemex’s contractual obligations are included in note 24.1.

As of December 31, 2024, current liabilities, which included $1,116 of current debt and other financial obligations, exceed current assets by $1,076. It is noted that as part of its operating strategy implemented by management, the Company operates with a negative working capital balance. For the year ended December 31, 2024, Cemex generated net cash flows from operating activities of $1,894. The Company’s management considers that Cemex will generate sufficient cash flows from operations in the following twelve months to meet its current obligations. In addition, as of December 31, 2024, Cemex has a committed line of credit under the RCF for $2,311. As of December 31, 2024, the total amount of the RCF was available for Cemex.

18)	TRADE ACCOUNTS PAYABLE, OTHER CURRENT LIABILITIES AND NON-CURRENTLIABILITIES
18.1)	TRADE ACCOUNTS PAYABLE
---	---

Supplier Finance Agreements

To enhance its supplier’s liquidity needs, Cemex has acted as mediator with financial institutions in several countries to establish productive supply chain programs, by means of which, any supplier registered under the program may elect to sell its account receivable from Cemex to the financial institution before the receivable’s agreed payment date. Any financial cost under these programs is assumed directly by Cemex’s suppliers. The accounts payable sold by the Company’s suppliers to these financial institutions are settled by Cemex at their original agreed due dates without extending the payment date further. As of December 31, 2024 and 2023, the consolidated balances of trade payables in the statements of financial position include $999 in 2024 and $972 in 2023 of trade payables outstanding under these productive supply chain programs with an average payment term of 92 days. These programs do not involve any additional cash flow risk to Cemex.

The balance of any trade accounts payable would be classified as debt whenever the originally agreed payment terms would be extended using the aforementioned programs with the financial institutions. As of December 31, 2024 and 2023, there are no debt balances arising from trade accounts payable.

18.2)	OTHER CURRENT LIABILITIES

As of December 31, 2024 and 2023, consolidated other current liabilities were as follows:

	2024
Other accounts payable and accrued expenses<br>^1^	$	569	656
Provisions ^2^		399	492
Contract liabilities with customers (note 3)<br>^3^		269	384
Interest payable		89	88
	$	1,326	1,620
1	Other accounts payable and accrued expenses mainly refer to accrued fixed and variable employee<br>benefits, insurance payments and accruals for public services. These amounts are revolving in nature and are expected to be settled and replaced by similar amounts within the next 12 months.
---	---
2	Current provisions are detailed by concept in note 18.3 below.
---	---
3	As of December 31, 2024 and 2023, contract liabilities with customers included $225 and $339,<br>respectively, of advances received from customers, as well as in 2024 and 2023 the current portion of deferred revenues in connection with advances under long-term clinker supply agreements of $5 in both years. Note 3 includes the changes during the<br>period of this caption.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

18.3)	OTHER NON-CURRENT LIABILITIES

As of December 31, 2024 and 2023, consolidated other non-current liabilities were as follows:

	2024
Asset retirement obligations<br>^1^	$	563	470
Environmental liabilities ^2^		203	250
Accruals for legal assessments and other responsibilities ^3^		95	100
Non-current liabilities for valuation of derivative<br>instruments		100	15
Other non-current liabilities and provisions ^4^		420	329
	$	1,381	1,164
1	Provisions for asset retirement obligations include future estimated costs for demolition, cleaning<br>and reforestation of production sites at the end of their operation, which are initially recognized against the related assets and are depreciated over their estimated useful life.
---	---
2	Environmental liabilities include future estimated costs arising from legal or constructive<br>obligations, related to cleaning, reforestation and other remedial actions to remediate damage caused to the environment. The expected average period to settle these obligations is greater than 15 years.
---	---
3	Provisions for legal claims and other responsibilities include items related to tax contingencies.<br>
---	---
4	As of December 31, 2024 and 2023, the balance includes deferred revenues of $17 and $22,<br>respectively, that are amortized to the statement of income as deliverables are fulfilled over the maturity of long-term clinker supply agreements.
---	---

Changes in consolidated non-current other liabilities plus current provisions for the years 2024 and 2023, were as follows:

	2024
	Asset<br>retirement<br>obligations			Environmental<br>liabilities			Accruals<br>for legal<br>proceedings			Valuation of<br>derivative<br>instruments			Other liabilities<br>and provisions			Total			2023
Balance at beginning of period	$	573			279			105			95			604			1,656			1,341
Additions or increase in estimates		63			6			45			123			158			395			532
Releases or decrease in estimates		(12	)		(52	)		(41	)		(118	)		(95	)		(318	)		(314	)
Accretion expense		38			—			—			—			15			53			42
Foreign currency translation		26			(5	)		(8	)		—			(19	)		(6	)		55
Balance at end of period	$	688			228			101			100			663			1,780			1,656
Out of which:
Current provisions	$	125			25			6			—			243			399			492
Other non-current liabilities		563			203			95			100			420			1,381			1,164

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

19)	PENSIONS AND POST-EMPLOYMENT BENEFITS

Defined contribution pension plans

The consolidated costs of defined contribution plans for the years ended December 31, 2024, 2023 and 2022 were $74, $64 and $59, respectively. Cemex contributes periodically the amounts offered by the pension plan to the employee’s individual accounts, not retaining any remaining liability as of the financial statements’ date.

Defined benefit pension plans

Most of Cemex’s defined benefit plans have been closed to new participants for several years. Actuarial results related to pension and other post-employment benefits are recognized in earnings and/or in “Other comprehensive income” for the period in which they are generated, as appropriate. For the years ended December 31, 2024, 2023 and 2022, the effects of pension plans and other post-employment benefits are summarized as follows:

	Pensions									Other benefits								Total
Net period cost (income):	2024			2023			2022			2024		2023			2022			2024			2023			2022
Recorded in operating costs and expenses
Service cost	$	7			6			7			4		4			4			11			10			11
Past service cost		—			—			1			—		—			—			—			—			1
Settlements, curtailments and other changes		—			(9	)		2			—		(1	)		—			—			(10	)		2
		7			(3	)		10			4		3			4			11			—			14
Recorded in other financial expenses
Net interest cost		32			36			22			8		8			6			40			44			28
Recorded in other comprehensive income
Actuarial (gains) losses for the period		(75	)		46			(166	)		1		(1	)		(10	)		(74	)		45			(176	)
	$	(36	)		79			(134	)		13		10			—			(23	)		89			(134	)

As of December 31, 2024 and 2023, the reconciliation of the actuarial benefits’ obligations and pension plan assets, are presented as follows:

	Pensions						Other benefits						Total
	2024			2023			2024			2023			2024			2023
Change in benefits obligation:
Projected benefit obligation at beginning of the period	$	1,909			1,811			101			92			2,010			1,903
Service cost		7			6			4			4			11			10
Interest cost		97			100			8			8			105			108
Actuarial (gains) losses		(159	)		30			1			(1	)		(158	)		29
Reduction from disposal of assets		(17	)		2			—			—			(17	)		2
Settlements and curtailments		—			(2	)		—			—			—			(2	)
Plan amendments		—			(10	)		—			(1	)		—			(11	)
Benefits paid		(160	)		(122	)		(10	)		(8	)		(170	)		(130	)
Foreign currency translation		(65	)		94			(12	)		7			(77	)		101
Projected benefit obligation at end of the period		1,612			1,909			92			101			1,704			2,010
Change in plan assets:
Fair value of plan assets at beginning of the period		1,273			1,207			2			1			1,275			1,208
Return on plan assets		65			64			—			—			65			64
Actuarial losses		(84	)		(16	)		—			—			(84	)		(16	)
Employer contributions		85			97			10			8			95			105
Reduction from disposal of assets		(13	)		1			—			—			(13	)		1
Settlements		—			(2	)		—			—			—			(2	)
Benefits paid		(160	)		(122	)		(10	)		(8	)		(170	)		(130	)
Foreign currency translation		(22	)		44			(1	)		1			(23	)		45
Fair value of plan assets at end of the period		1,144			1,273			1			2			1,145			1,275
Net projected liability in the statement of financial position	$	468			636			91			99			559			735

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Defined benefit pension plans – continued

For the years 2024, 2023 and 2022, actuarial (gains) losses for the period were generated by the following main factors as follows:

	2024
Actuarial (gains) losses due to experience	$	(26	)	13		96
Actuarial (gains) losses due to demographic assumptions		(28	)	(5	)	(2	)
Actuarial (gains) losses due to financial assumptions		(20	)	37		(270	)
	$	(74	)	45		(176	)

In 2024, net actuarial gains due to financial assumptions were driven by a general increase in the discount rates applicable to the calculation of the Projected Benefit Obligation (“PBO”), mainly in the United Kingdom, Mexico and the United States, partially offset by lower returns in plan assets than estimated for a total of $84, of which $66 refers to the United Kingdom, $18 to the United States and $9 to Mexico. In addition, the actuarial gains due to experience for $26 and due to demographic assumptions of $28 were mainly generated in the United Kingdom.

In 2023, net actuarial losses due to financial assumptions were mainly driven by a decrease in the discount rates applicable to the calculation of the PBO in the United Kingdom, the United States, Germany, Colombia and Poland. Moreover, the overall net actual return on plan assets in most countries were less than the expected returns for a total of $16, of which $31 referred to the United Kingdom, partially offset by a higher performance than expected in Mexico of $12 and the United States of $8. In addition, the PBO increased by adjustments due to experience for $13, mainly in the United Kingdom and Germany.

In 2022, net actuarial gains due to financial assumptions were driven by a general increase in the discount rates applicable to the calculation of the PBO in the United Kingdom, the United States, Germany, and Mexico, partially offset by actual returns in plan assets lower than estimated for a total of $466, of which $373 referred to the United Kingdom, $52 to the United States and $19 to Mexico. In addition, the PBO increased significantly related to adjustments due to experience for $96, mainly in the United Kingdom for $77 and Germany for $13. Adjustments in demographic assumptions of $2 were not significant.

As of December 31, 2024 and 2023, based on the hierarchy of fair values, plan assets are detailed as follows:

	2024								2023
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash	$	25		—		—		25	$	24		—		—		24
Investments in corporate bonds		237		46		—		283		11		391		—		402
Investments in government bonds		339		—		—		339		114		209		—		323
Total fixed-income securities		601		46		—		647		149		600		—		749
Investment in marketable securities		127		73		—		200		179		43		—		222
Other investments and private funds		44		32		222		298		70		33		201		304
Total variable-income securities		171		105		222		498		249		76		201		526
Total plan assets	$	772		151		222		1,145	$	398		676		201		1,275

The most significant assumptions used in the determination of the benefit obligation were as follows:

	2024										2023
				United			United			Range of rates in				United			United			Range of rates in
	Mexico			States			Kingdom			other countries	Mexico			States			Kingdom			other countries
Discount rates		11.8	%		5.7	%		5.6	%	3.3% – 9.5%		10.5	%		5.2	%		4.7	%	3.1% – 11.0%
Rate of return on plan assets		11.8	%		5.7	%		5.6	%	3.3% – 9.5%		10.5	%		5.2	%		4.7	%	3.1% – 11.0%
Rate of salary increases		4.5	%		—			3.2	%	2.5% – 7.3%		4.5	%		—			3.1	%	2.5% – 7.3%

As of December 31, 2024, estimated payments for pensions and other post-employment benefits over the next 10 years were as follows:

	Estimatedpayments
2025	$	156
2026		135
2027		133
2028		133
2029 – 2034		803

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Defined benefit pension plans – continued

As of December 31, 2024 and 2023, the aggregate PBO for pension plans and other post-employment benefits and the plan assets by country were as follows:

	2024							2023
	PBO		Assets		Deficit			PBO		Assets		Deficit
Mexico	$	200		30		170		$	253		44		209
United States		142		143		(1	)		184		188		(4	)
United Kingdom		960		752		208			1,129		821		308
Germany		121		5		116			141		6		135
Other countries		281		215		66			303		216		87
	$	1,704		1,145		559		$	2,010		1,275		735

In some countries, Cemex has established health care benefits for retired personnel limited to a certain number of years after retirement. As of December 31, 2024 and 2023, the projected benefits obligation related to these benefits was $51 and $57, respectively, included within other benefits liability. The medical inflation rates used to determine the PBO of these benefits in 2024 and 2023 for Mexico were 8.0% and 8.0%, respectively, for Puerto Rico 7.0% in 2024 and 6.6% in 2023, for the United Kingdom were 6.7% in 2024 and 6.6% in 2023, and for TCL was a range between 5.0% and 8.0% in 2024 and 5.0% and 9.0% in 2023.

Significant settlements or curtailments related to employees’ pension benefits and otherpost-employment benefits during the reported periods

During 2024, there were no significant settlements or curtailments related to employees’ pension benefits and other post-employment benefits.

In 2023 as a result of an extension in the retirement age for the Company’s operations in Mexico, there was a reduction of $11 in the retirement obligations recognized against the statement of income for the period. Additionally, in France, there was a pension reform that increased the legal minimum retirement age, resulting in a total past service amendment of $1 in its pension plan recognized in the statement of income for the period.

During 2022, there were no significant settlements or curtailments related to employees’ pension benefits and other post-employment benefits.

Sensitivity analysis of pension and other post-employment benefits

As of December 31, 2024, Cemex performed sensitivity analyses on the most significant assumptions that affect the PBO, considering reasonable independent changes of plus or minus 50 basis points in each of these assumptions. The increase (decrease) that would have resulted in the PBO of pensions and other post-employment benefits are shown below:

	Pensions						Other benefits						Total
Assumptions:	+50 bps			-50 bps			+50 bps			-50 bps			+50 bps			-50 bps
Discount Rate Sensitivity	$	(75	)		83			(3	)		3			(78	)		86
Salary Increase Rate Sensitivity		4			(4	)		1			(1	)		5			(5	)
Pension Increase Rate Sensitivity		56			(54	)		—			—			56			(54	)

Multiemployer defined benefit pension plans

In addition to the Company’s sponsored plans, Cemex contributes to union-sponsored multiemployer retirement defined benefit pension plans (the “Multiemployer Plans”) under the terms of collective bargaining agreements for certain union employees in the United States and the United Kingdom. The Company’s main risks of participating in Multiemployer Plans are different from its single-employer plans in the following aspects:

a)	Assets contributed to the Multiemployer Plans by one employer may be used to provide benefits to employees<br>of other participating employers;
b)	If a participating employer stops contributing to the Multiemployer Plans, the unfunded obligations of the<br>Multiemployer Plans may be borne by the remaining participating employers; and
---	---
c)	If Cemex chooses to stop participating in the Multiemployer Plans, the Company may be required to pay the<br>Multiemployer Plans an amount based on the underfunded status of the Multiemployer Plans, referred to as a withdrawal liability.
---	---

The Company’s funding arrangements, rate of contributions and funding requirements were made in accordance with the contractual multiemployer agreements. The combined amounts contributed to the Multiemployer Plans were $19 in 2024, $20 in 2023 and $21 in 2022. The Company expects to contribute $20 to the Multiemployer Plans in 2025.

Among other factors, Multiemployer Plans in the red zone (critical) are generally less than 65% funded, Multiemployer Plans in the yellow zone (endangered) are less than 80% funded and Multiemployer Plans in the green zone (neither critical and declining, critical, or endangered) are at least 80% funded. Over 99% of Cemex’s obligations and contributions under the Multiemployer Plans are related to the United States where 461 former employees are beneficiaries and where, according to data obtained from Multiemployer Plans actuary, most of the plans are considered to be in the green zone and one plan is in the yellow zone. As a result, the Company’s risk of increasing contributions is considered low. In the United Kingdom, the Multiemployer Plan, which covers only two of Cemex’s former employees, is in the green zone. In both the United States and the United Kingdom, Cemex is a small participant in the applicable Multiemployer Plans.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

20)	INCOME TAXES
20.1)	INCOME TAXES FOR THE PERIOD
---	---

The amounts of income tax expense in the statements of income for 2024, 2023 and 2022 are summarized as follows:

	2024
Current income tax expense ^1^	$	343		1,101	129
Deferred income tax (benefit) expense		(276	)	103	39
	$	67		1,204	168
1	In 2024 includes minimum taxes which were not material (note 29.10).
---	---
20.2)	DEFERRED INCOME TAXES
---	---

As of December 31, 2024 and 2023, the main temporary differences that generated the consolidated deferred income tax assets and liabilities are presented below:

	2024
Deferred tax assets:
Tax loss carryforwards and other tax credits	$	446		445
Accounts payable and accrued expenses		1,084		883
Intangible assets, net and other		130		203
Total deferred tax assets, gross		1,660		1,531
Presentation of net position by same legal entity		(987	)	(1,168	)
Total deferred tax asset, net in the statement of financial position		673		363
Deferred tax liabilities:
Property, machinery and equipment and right-of-use asset, net		(1,298	)	(1,470	)
Investments and other assets		(237	)	(141	)
Total deferred tax liabilities, gross		(1,535	)	(1,611	)
Presentation of net position by same legal entity		987		1,168
Total deferred tax liabilities, net in the statement of financial position		(548	)	(443	)
Net deferred tax assets (liabilities)	$	125		(80	)
Out of which:
Net deferred tax assets in Mexican entities	$	393		67
Net deferred tax liabilities in foreign entities		(268	)	(147	)
Net deferred tax assets (liabilities)	$	125		(80	)

As of December 31, 2024 and 2023, balances of the deferred tax assets and liabilities included in the statement of financial position are located in the following entities:

	2024								2023
	Assets		Liabilities			Net			Assets		Liabilities			Net
Mexican entities	$	518		(125	)		393		$	185		(118	)		67
Foreign entities		155		(423	)		(268	)		178		(325	)		(147	)
	$	673		(548	)		125		$	363		(443	)		(80	)

The breakdown of changes in consolidated deferred income taxes during 2024, 2023 and 2022 was as follows:

	2024
Deferred income tax (benefit) expense in the statement of income	$	(276	)	103		39
Deferred income tax expense (benefit) in stockholders’ equity		57		(6	)	14
Reclassifications ^1^		14		—		7
Change in deferred income tax during the period	$	(205	)	97		60
1	In 2024 and 2022, refers to the effects of the reclassification of balances to assets held for sale<br>and related liabilities (note 4.2).
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Deferred income taxes – continued

Current and/or deferred income tax relative to items of other comprehensive income during 2024, 2023 and 2022 were as follows:

	2024
Expense related to foreign exchange fluctuations from intercompany balances (note 21.2)	$	—	5		—
Expense (benefit) associated to actuarial results (note 21.2)		11	(5	)	32
Expense (benefit) related to derivative financial instruments (note 17.4)		4	(41	)	(30	)
Expense from foreign currency translation and other effects		33	35		12
	$	48	(6	)	14

As of December 31, 2024, consolidated tax loss and tax credits carryforwards expire as follows:

	Amount ofcarryforwards
2025	$	26	18	8
2026		44	24	20
2027		50	18	32
2028		45	20	25
2029 and thereafter		6,348	4,668	1,680
	$	6,513	4,748	1,765

As of December 31, 2024, in connection with Cemex’s deferred tax loss carryforwards presented in the table above, to realize the benefits associated with such deferred tax assets that have been recognized, before their expiration, Cemex would need to generate $1,765 in consolidated pre-tax income in future periods. Based on the same forecasts of future cash flows and operating results used by Cemex’s management to allocate resources and evaluate performance in the countries in which Cemex operates, along with the implementation of feasible tax strategies, Cemex believes that it will recover the balance of its tax loss carryforwards that have been recognized before their expiration. In addition, Cemex concluded that the deferred tax liabilities considered in the analysis of recoverability of its deferred tax assets will reverse in the same period and tax jurisdiction of the related recognized deferred tax assets. Moreover, a certain amount of Cemex’s deferred tax assets refers to operating segments and tax jurisdictions in which Cemex is currently generating taxable income or in which, according to Cemex’s management cash flow projections, will generate taxable income in the relevant periods before the expiration of the deferred tax assets.

The Parent Company does not recognize a deferred income tax liability related to its investments in subsidiaries considering that Cemex controls the reversal of the temporary differences arising from these investments and management is satisfied that such temporary differences will not reverse in the foreseeable future.

20.3)	RECONCILIATION OF EFFECTIVE INCOME TAX RATE

For the years ended December 31, 2024, 2023 and 2022, the effective consolidated income tax rates were as follows:

	2024
Earnings before income tax	$	980		1,323		570
Income tax expense		(67	)	(1,204	)	(168	)
Effective consolidated income tax expense rate<br>^1, 2^		6.8	%	91.0	%	29.5	%
1	The average effective tax rate equals the net amount of income tax benefit or expense divided by<br>income or loss before income taxes, as these line items are reported in the statements of income.
---	---
2	Note 29.10 includes the statutory income tax rates of the main countries in which Cemex operates.<br>
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Reconciliation of effective income tax rate – continued

Differences between the financial reporting and the corresponding tax basis of assets and liabilities and the different income tax rates and laws applicable to Cemex, among other factors, give rise to permanent differences between the statutory tax rate applicable in Mexico, and the effective tax rate presented in the consolidated statements of income, which in 2024, 2023 and 2022 were as follows:

	2024				2023				2022
	%				%				%
Mexican statutory tax rate		30.0	%			30.0	%			30.0	%
Income tax penalties in Spain (note 20.4)		—				46.9	%			—
Difference between accounting and tax expenses, net ^1^		(9.2	)%	)		0.4	%			48.4	%
Non-taxable sale of equity securities and fixed assets ^2^		(10.6	)%	)		(1.3	)%	)		4.6	%
Difference between book and tax inflation		6.1	%			9.1	%			38.1	%
Differences in the income tax rates in the countries where Cemex operates ^3^		2.5	%			7.7	%			(8.4	)%	)
Changes in deferred tax assets<br>^4^		(10.1	)%	)		(4.3	)%	)		(80.7	)%	)
Changes in provisions for uncertain tax positions		1.1	%			0.1	%			(6.8	)%	)
Others		(3.0	)%	)		2.4	%			4.3	%
Effective consolidated income tax expense rate		6.8	%			91.0	%			29.5	%

All values are in US Dollars.

1	In 2022, includes $365 related to the effects of impairment charges during the period which are basically non-deductible for tax purposes (note 7).
2	In 2024, includes $72 related to non-taxable income from the sale of<br>shares of subsidiaries and associates during the period.
---	---
3	Refers to the effects of the differences between the statutory income tax rate in Mexico of 30% and<br>the applicable income tax rates of each country where Cemex operates.
---	---
4	Refers to the effects in the effective income tax rate associated with changes during the period in the<br>amount of deferred income tax assets related to Cemex’s tax loss carryforwards.
---	---

The following table compares the line item “Changes in deferred tax assets” as presented in the table above against the changes in deferred tax assets in the statement of financial position for the years ended December 31, 2024 and 2023:

	2024						2023
	Changes in thestatement offinancialposition			Amounts inreconciliation			Changes in thestatement offinancialposition			Amounts inreconciliation
Tax loss carryforwards generated and not recognized during the year	$	—			89			—			45
Derecognition related to tax loss carryforwards recognized in prior years		(100	)		—			(125	)		—
Recognition related to unrecognized tax loss carryforwards		105			(186	)		12			(105	)
Foreign currency translation and other effects		(4	)		(2	)		(3	)		3
Changes in deferred tax assets	$	1			(99	)		(116	)		(57	)
20.4)	UNCERTAIN TAX POSITIONS AND SIGNIFICANT TAX PROCEEDINGS
---	---

Uncertain tax positions

As of December 31, 2024 and 2023, as part of current provisions and non-current other liabilities (note 18), Cemex has recognized provisions related to unrecognized tax benefits in connection with uncertain tax positions taken, in which it is deemed probable that the tax authorities would differ from the position adopted by Cemex. As of December 31, 2024, the tax returns submitted by some subsidiaries of Cemex located in several countries are under review by the respective tax authorities in the ordinary course of business. Cemex cannot anticipate if such reviews will result in new tax assessments, which would, should any arise, be appropriately disclosed and/or recognized in the financial statements. A summary of the beginning and ending balances of unrecognized tax benefits for the years ended December 31, 2024, 2023 and 2022, excluding interest and penalties, is as follows:

	2024
Balance of tax positions at beginning of the period	$	78		41		48
Additions for tax positions of prior periods		5		34		5
Additions for tax positions of current period		14		3		5
Reductions for tax positions related to prior periods and other items		(2	)	(1	)	(11	)
Settlements and reclassifications		(31	)	—		(4	)
Expiration of the statute of limitations		(8	)	(2	)	(2	)
Foreign currency translation effects		(5	)	3		—
Balance of tax positions at end of the period	$	51		78		41

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Uncertain tax positions – continued

Tax examinations can involve complex issues, and the resolution of issues may span multiple years, particularly if subject to negotiation or litigation. Although Cemex believes its estimates of the total unrecognized tax benefits are reasonable, uncertainties regarding the final determination of income tax audit settlements and any related litigation could affect the amount of total unrecognized tax benefits in future periods. It is difficult to estimate the timing and range of possible changes related to uncertain tax positions, as finalizing audits with the tax authorities may involve formal administrative and legal proceedings. Accordingly, it is not possible to reasonably estimate the expected changes to the total unrecognized tax benefits over the next 12 months, although any settlements or statute of limitations expirations may result in a significant increase or decrease in the total unrecognized tax benefits, including those positions related to tax examinations being currently conducted.

Significant tax proceedings

As of December 31, 2024, the Company’s most significant tax proceedings are as follows:

•	On August 9, 2024, in connection with the fines imposed by the tax authorities in Spain (the “Tax<br>Authorities”) related to the years 2006 to 2009, the Tax Authorities notified Cemex España, S.A. (“Cemex España”) of the final amount for a total of $473, initially payable no later than September 20, 2024. On<br>September 6, 2024, Cemex España paid an amount equivalent to $284 (60% of the fines). In connection with the remaining 40% of the fines for an amount equivalent to $189, Cemex España filed before the National Court (AudienciaNacional) a motion against the assessment issued by the Tax Authorities, claiming a right to a reduction of the remaining 40% for early payment considered by the applicable tax code in Spain. Furthermore, as a cautionary measure, on<br>September 9, 2024, Cemex España filed an appeal with the Tribunal Económico Administrativo Central (“TEAC”) in connection with the motion mentioned before. On September 10, 2024, Cemex España paid an<br>additional amount of $3 and, if the process over the reduction of the 40% is not resolved in Cemex’s favor, filed a request to the Tax Authorities for a postponement of payment and requested an authorization to pay the outstanding amount of the<br>fines in installments over four years starting in April 2025. Cemex has offered to the Tax Authorities, as guarantee to cover such postponement, a surety insurance. As of December 31, 2024, the Tax Authorities have neither accepted nor denied<br>such request. However, the processes filed before the National Court and TEAC plus the request for the postponement, have suspended the execution of the outstanding amount of the fines by the Tax Authorities.
•	On March 26, 2021, the Tax Authorities notified Cemex España of an assessment for income taxes in<br>an amount equivalent to $50 as of December 31, 2024, plus late interest, derived from a tax audit process covering the tax years 2010 to 2014. This assessment was appealed before the TEAC. For the suspension of the payment of the tax assessment<br>to be granted, Cemex España provided a payment guarantee which was approved by such tax authorities. Moreover, on November 30, 2021, the Tax Authorities notified Cemex España of a penalty for an amount equivalent to $70, derived<br>from the tax audit process covering the same period from 2010 to 2014. This assessment was appealed before the TEAC. In December 2023, Cemex España received a partial resolution from the TEAC. On February 26, 2024, Cemex España<br>received the provisional assessment to pay a $60 including the income tax due and the penalty. Cemex España paid the mentioned amount. As of December 31, 2024, this matter is finalized.
---	---
•	In connection with the tax return for the year 2012, the Colombian Tax Authority (the “Colombian Tax<br>Authority”) assessed an increase in the income tax payable by Cemex Colombia S.A. (“Cemex Colombia”) and imposed an inaccuracy penalty for amounts in Colombian Pesos equivalent to $28 of income tax and $28 of penalty. After several<br>procedures and appeals, in 2021, Cemex Colombia filed an appeal in the Administrative Court of Cundinamarca. If the proceeding is adversely resolved in the final stage, Cemex Colombia must pay the amounts determined in the official settlement plus<br>interest accrued on the amount of the income tax adjustment until the payment date. As of December 31, 2024, Cemex considers that an adverse resolution in this proceeding after the conclusion of all available defense procedures is not probable,<br>however, it is difficult to assess with certainty the likelihood of an adverse result in the proceeding. If adversely resolved, Cemex believes this proceeding could have a material adverse impact on the operating results, liquidity or financial<br>position of Cemex.
---	---
•	In connection with the tax return for the year 2011, the Colombian Tax Authority notified Cemex Colombia of a<br>proceeding in which it rejected certain deductions and determined an increase in the income tax payable and imposed a penalty for amounts in Colombian Pesos equivalent to $19 of income tax and $19 of penalty. After several procedures and appeals, in<br>2020, the Colombian Tax Authority confirmed the claims of the official liquidation, and this was then appealed in the Administrative Court of Cundinamarca. If the proceeding is adversely resolved in its final stage, Cemex Colombia would have to pay<br>the amounts determined in the official settlement plus interest accrued on the amount of the income tax adjustment until the date of payment. As of December 31, 2024, Cemex considers that an adverse resolution in this proceeding after the<br>conclusion of all available defense procedures is not probable, however, it is difficult to assess with certainty the likelihood of an adverse result in the proceeding. If adversely resolved, Cemex believes this proceeding could have a material<br>adverse impact on the operating results, liquidity or financial position of Cemex.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

21)	STOCKHOLDERS’ EQUITY

The consolidated financial statements are presented in Dollars based on IAS 21, The Effects of Changes in Foreign Exchange Rates (“IAS 21”), while the reporting currency of the Parent Company is the Peso. As a result, for the consolidated entity, transactions of common stock, additional paid-in capital and retained earnings are translated and accrued using historical exchange rates of the dates on which the transactions occurred. As a result, although the amounts of total non-controlling interest in the consolidated financial statements and total stockholders’ equity of the Parent Company are the same, IAS 21 methodology results in differences between line-by-line items within Cemex’s total controlling interest and the Parent Company’s total stockholders’ equity. The official stockholders’ equity for statutory purposes is that of the Parent Company as expressed in Pesos. As of December 31, 2024, the line-by-line reconciliation between Cemex’s controlling interest, as reported using the Dollar as presentation currency, and the Parent Company’s stockholders’ equity, using a convenience translation of the balances in Pesos translated using the exchange rate of 20.83 Pesos per Dollar as of December 31, 2024, is as follows:

	As of December 31, 2024
	Consolidated			Parent Company
Common stock and additional paid-in capital ^1^	$	7,699			4,958
Other equity reserves ^1, 2^		(770	)		3,149
Retained earnings ^2^		5,247			4,069
Total controlling interest	$	12,176			12,176
1	The difference relates to the method of accruing Dollars using the historical exchange rates to<br>translate each common stock and additional paid-in capital transaction denominated in Pesos to Dollars. The cumulative effect of these changes in exchange rates is recognized against other equity reserves.<br>
---	---
2	The difference relates to the method of accruing Dollars using the exchange rates of each month<br>during the period for statement of income purposes. The cumulative effect of these changes in exchange rates is recognized against other equity reserves.
---	---

As of December 31, 2024 and 2023, stockholders’ equity excludes investments in CPOs of the Parent Company held by subsidiaries of $12 (20,541,277 CPOs) and $16 (20,541,277 CPOs), respectively, which were eliminated within “Other equity reserves.”

21.1)	COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL

As of December 31, 2024 and 2023, the breakdown of consolidated common stock and additional paid-in capital was as follows:

	2024
Common stock	$	318	318
Additional paid-in capital		7,381	7,381
	$	7,699	7,699

As of December 31, 2024 and 2023, the common stock of Cemex, S.A.B. de C.V. was presented as follows:

	2024				2023
Shares ^1^	Series A ^2^		Series B ^2^		Series A ^2^		Series B ^2^
Subscribed and paid shares		29,016,656,496		14,508,328,248		29,016,656,496		14,508,328,248
Unissued shares authorized for executives’ stock compensation programs		881,442,830		440,721,415		881,442,830		440,721,415
		29,898,099,326		14,949,049,663		29,898,099,326		14,949,049,663
1	As of December 31, 2024 and 2023, 13,068,000,000 shares correspond to the fixed portion, and<br>31,779,148,989 shares correspond to the variable portion, respectively.
---	---
2	Series “A” or Mexican shares must represent at least 64% of Cemex, S.A.B. de C.V.’s<br>capital stock; Series “B” or free subscription shares must represent at most 36% of Cemex, S.A.B. de C.V.’s capital stock.
---	---

On March 22, 2024 stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) the payment of a cash dividend for a total of $120 in four equal quarterly installments beginning in June 2024 and finalizing in March 2025; (b) setting the amount of $500 or its equivalent in Pesos as the maximum amount that during fiscal year 2024, and until the next ordinary general shareholders’ meeting of Cemex, S.A.B. de C.V. is held, Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (c) the appointment of the members of the Board of Directors, the Audit Committee, the Corporate Practices and Finance Committee and, the Sustainability, Climate Action, Social Impact and Diversity Committee; and (d) the extension of share-based long-term compensation programs in shares of Cemex, S.A.B. de C.V.’s until December 31, 2028. During 2024, there were no purchases of own shares under the outstanding share repurchase program.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Common stock and additional paid-in capital– continued

On March 23, 2023, stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) setting an amount of $500 or its equivalent in Pesos, as the maximum amount of resources that during fiscal year 2023, and until the next general ordinary shareholders’ meeting is held that Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (b) authorize the Parent Company’s Board of Directors to determine the bases on which the acquisition and placement of said shares shall be instructed, designate the persons that shall make the decisions to acquire or place them, appoint those responsible for carrying out the transaction and giving the corresponding notices to the authorities; and (c) to decrease Cemex, S.A.B. de C.V.’s capital stock, in its variable part, through the cancellation of 662 million of own shares (22.1 million ADSs), which were acquired through the share repurchase program in 2022. During 2023, there were no purchases of own shares under the outstanding share repurchase program.

On March 24, 2022, stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) setting an amount of $500 or its equivalent in Pesos as the maximum amount of resources through the year 2022 and until the next general ordinary shareholders’ meeting is held that Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (b) authorize the Parent Company’s Board of Directors to determine the bases on which the acquisition and placement of any such shares shall be instructed, designate the persons that shall make the decisions to acquire or place them, appoint those responsible for carrying out the transaction and giving the corresponding notices to the authorities; and (c) designation of the members of the Board of Directors, as well as members of the Audit, Corporate Practices and Finance, and Sustainability Committees. During 2022, 662 million own shares (22.1 million ADSs) were acquired under the outstanding share repurchase program for an amount of $111.

In 2024, 2023 and 2022, Cemex, S.A.B. de C.V. did not issue shares in connection with its executive share-based compensation programs (note 22).

21.2)	OTHER EQUITY RESERVES AND SUBORDINATED NOTES

As of December 31, 2024 and 2023, the caption of other equity reserves and subordinated notes was integrated as follows:

	2024
Other equity reserves	$	(2,756	)	(2,349	)
Subordinated notes		1,986		1,986
	$	(770	)	(363	)

Other equity reserves

As of December 31, 2024 and 2023, other equity reserves are detailed as follows:

	2024
Cumulative translation effect, tax effects from deferred income taxes recognized directly in<br>equity (note 20.2) and derivative financial instruments designated as cash flow hedges	$	(1,066	)	(672	)
Cumulative actuarial losses		(324	)	(398	)
Cumulative coupon accrued under perpetual debentures		(1,070	)	(1,070	)
Cumulative coupon accrued under subordinated notes		(347	)	(204	)
Other effects		51		(5	)
	$	(2,756	)	(2,349	)

For the years ended December 31, 2024, 2023 and 2022, the translation effects of foreign subsidiaries included in the statements of comprehensive income were as follows:

	2024
Foreign currency translation results<br>^1^	$	(275	)	356		(235	)
Foreign exchange fluctuations from debt<br>^2^		68		(28	)	(23	)
Foreign exchange fluctuations from intercompany balances ^3^		1		(73	)	(68	)
	$	(206	)	255		(326	)
1	These effects refer to the translation result of the financial statements of foreign subsidiaries and<br>include the changes in the fair value of foreign exchange forward contracts designated as a hedge of a net investment (note 17.4).
---	---
2	Generated by foreign exchange fluctuations over a notional amount of debt in Cemex, S.A.B. de C.V.,<br>identified and designated as a hedge of the net investment in foreign subsidiaries (note 29.3).
---	---
3	Refers to foreign exchange fluctuations arising from balances with related parties in foreign currencies<br>that are of a long-term investment nature considering that their liquidation is not anticipated in the foreseeable future and foreign exchange fluctuations over a notional amount of debt of a subsidiary of Cemex España identified and<br>designated as a hedge of the net investment in foreign subsidiaries.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Subordinated notes

In March 2023, the Parent Company issued $1,000 of 9.125% subordinated notes (the “2023 Subordinated Notes”). After issuance costs, the Parent Company received $992. The 2023 Subordinated Notes are aligned with the Green Financing Framework (the “GFF”) and the net proceeds obtained in the issuance should be applied to finance, in whole or in part, one or more new or existing Eligible Green Projects (“EGPs”) under its GFF’s use-of-proceeds. EGPs include those related to pollution prevention and control, renewable energy, energy efficiency, clean transportation, sustainable water and wastewater management, and eco-efficient and/or circular economy adapted products, production technologies and processes.

In June 2021, the Parent Company issued $1,000 of 5.125% subordinated notes (the “2021 Subordinated Notes”). After issuance costs, the Parent Company received $994. The net proceeds obtained were used to repurchase in full the balance then outstanding of perpetual debentures issued by subsidiaries and the repayment of debt.

Under the 2023 Subordinated Notes and the 2021 Subordinated Notes (jointly the “Subordinated Notes”), which do not have a maturity or repayment date or mandatory redemption date, interest may be deferred indefinitely at the sole discretion of the Parent Company. In addition, the Subordinated Notes: (i) are not redeemable at the option of the holders of the Subordinated Notes (the “Noteholders”), (ii) do not have the benefit of standard debt covenants, and (iii) do not include an event of default relating to a payment or covenant default with respect to any indebtedness of Cemex. Moreover, the Parent Company is in control of the instances that may lead to the repayment of the Subordinated Notes, including Cemex’s repurchase option on the fifth anniversary of each issuance, the specific redemption events as well as those under a reorganization or bankruptcy event under the applicable laws. In the hypothetical event of liquidation of the Parent Company, the Noteholders would have a claim on any residual net assets available after all liabilities have been settled; therefore, the Noteholders have no guarantee of collecting the principal amounts of the Subordinated Notes or any deferred accrued interest, if any.

Based on the above characteristics of the Subordinated Notes, included in contractual terms that are considered to be substantive, and legal considerations, under IAS 32, Financial Instruments: Presentation (“IAS 32”), Cemex concluded that the Subordinated Notes do not meet the definition of financial liability under IAS 32, and consequently are classified in controlling interest stockholders’ equity within Other equity reserves. The classification as equity of the Subordinated Notes can be summarized as follows:

•	As mentioned above, the Subordinated Notes do not meet the definition of financial liability considering that<br>they include no contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavorable<br>to the issuer. This is because:
•	The Noteholders have agreed to the deferral of interest and principal, given that the Parent Company has the<br>unilateral and unconditional right to perpetually defer the payment of principal and interest;
---	---
•	The Parent Company controls any payments to be made to the Noteholders, including in the event of bankruptcy<br>under either the laws of Mexico (Ley de Concursos Mercantiles) or U.S. bankruptcy laws (Chapter 11); and
---	---
•	The Subordinated Notes contractually evidence a residual interest in the assets of the Parent Company after<br>deducting all of its liabilities. The only requirement to settle the Notes would be in liquidation, which is akin to an equity instrument under IAS 32.
---	---

Coupon payments on the Subordinated Notes were included in “Other equity reserves” and amounted to $143 in 2024, $120 in 2023 and $54 in 2022.

21.3)	RETAINED EARNINGS

The Parent Company’s net income for the year is subject to a 5% allocation toward a legal reserve until such reserve equals one-fifth of the common stock. As of December 31, 2024, the legal reserve amounted to $87. During 2024, as mentioned in note 21.1, the Parent Company declared dividends of $120, of which, as of December 31, 2024, the last quarterly payment of $30 remain payable.

21.4)	NON-CONTROLLING INTEREST

Non-controlling interest

Non-controlling interest represents the share of non-controlling stockholders in the equity and results of consolidated subsidiaries. As of December 31, 2024 and 2023, non-controlling interest in equity amounted to $301 and $352, respectively. In 2024, 2023 and 2022, non-controlling interests in consolidated net income were $21, $17 and $27, respectively. These non-controlling interests arise mainly from the following Cemex’s subsidiaries:

•	TCL shares trade in the Trinidad and Tobago Stock Exchange. As of December 31, 2024 and 2023,<br>there is a non-controlling interest in TCL of 30.17% of its common shares (see note 4.3 for certain relevant condensed financial information).
•	As of December 31, 2023, there was a non-controlling<br>interest in CHP of 10.14% of its ordinary shares. CHP’s assets consisted primarily of Cemex’s cement manufacturing assets in the Philippines. As mentioned in note 4.2, on December 2, 2024, Cemex sold all its operations and assets in<br>the Philippines.
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Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Non-controlling interest – continued

•

Until June 2023, after the conclusion of a tender offer and delisting process, CLH, traded its ordinary shares on the Colombian Stock Exchange. CLH is the indirect holding company of Cemex’s operations in Colombia, Panama and Nicaragua, until September 10, 2024 of the operations in Guatemala and, until August 31, 2022 of the operations in Costa Rica and El Salvador. As of December 31, 2024 and 2023, there was a non-controlling interest in CLH of 0.16% and 0.50% of its ordinary shares, respectively.

22)

EXECUTIVE SHARE-BASED COMPENSATION

---

Stock-based awards granted to executives are defined as equity instruments, considering that the services received from employees are settled by delivering shares. The cost of these equity instruments represents their estimated fair value at the grant date of each plan and is recognized in the statement of income during the periods in which the executives render services and vest the exercise rights.

Cemex, S.A.B. de C.V. sponsors different long-term restricted share-based compensation programs for a wide range of executives. For eligible executives, stock-based compensation represents a fixed percentage of such executive’s annual compensation (the “Stock Bonus”). This Stock Bonus was paid in the Parent Company’s CPOs until December 31, 2023 and is paid in the Parent Company’s ADSs beginning January 1, 2024, considering certain management improvements that do not affect employees, and which number is determined on the award date by reference to the Stock Bonus amount and the stock market price of such award date (i.e., once the number of shares is determined, such number is fixed and will not change as a result of changes in the stock market price).

Under our long-term share-based compensation programs, the Company sponsors a program oriented to our top management, which is subject to internal and external performance metrics and rendering of services over a three-year period (the “Performance Plan”), and another program for key executives and key performers, which is subject only to the passage of time and rendering of services over a four-year period (the “Ordinary Plan” together with the Performance Plan, the “Share-Based Compensation Programs”). Shares awarded under the Ordinary Plan are initially restricted for sale and are proportionately released to the executives as services are rendered at the end of each year at a 25% rate over a four-year period, to the extent they remain in the Company at each settlement date. Once the executive is no longer employed by the Company, any shares awarded under the Ordinary Plan are generally forfeited. The Performance Plan, depending on their weighted achievement, may result in a final payout at the end of the third year between 0% and 200% of the target for each award. The fair value of the awards under the Performance Plan is determined by using an option pricing model.

For the years 2024, 2023 and 2022, the changes in connection with the Share-Based Compensation Programs were as follows:

										ADSs equivalents delivered (thousands)
Plan	Targetnumber ofADSs(thousands)^1^		ADS priceat award’sdate ^2^		Fair value(%)			Fair value(millions)		2024		2023		2022		ADSsForfeited(thousands)		ADSsOutstanding<br>(thousands) ^3^
Performance Plans
2019		2,303.0	$	4.4		130	%		13.2		—		—		3,062.8		—		—
2020		4,146.0	$	2.3		155	%		14.8		—		8,448.2		—		—		—
2021		1,227.2	$	8.0		150	%		14.7		446.3		—		—		780.9		—
2022		2,403.6	$	4.3		149	%		15.4		—		—		—		—		3,571.7
2023		2,825.4	$	6.4		145	%		26.1		—		—		—		—		4,094.1
2024		1,976.7	$	6.3		133	%		16.6		—		—		—		—		2,621.5
Ordinary Plans
2019		8,048.2	$	4.7		100	%		37.5		—		42.4		1,521.4		118.3		—
2020		11,162.2	$	2.5		100	%		28.1		—		2,293.0		2,370.9		253.7		—
2021		5,716.6	$	7.2		100	%		41.3		1,210.7		1,442.7		1,465.6		56.6		4.2
2022		9,483.0	$	4.9		100	%		46.0		2,166.0		2,450.5		2,499.8		26.4		2,298.8
2023		6,531.9	$	5.9		100	%		38.4		1,582.9		1,765.0		—		48.0		3,136.0
2024		8,531.7	$	7.2		100	%		61.5		2,248.0		—		—		—		6,283.7
											7,653.9		16,441.8		10,920.5		1,283.9		22,010.0
1	The target number of ADSs for the performance plans assume a 100% payout.
---	---
2	Average ADS price of the awards at the date of grant.
---	---
3	Until the final payout of the Performance Plans is known after the conclusion of the three-year period for<br>each award, the number of ADSs outstanding assumes a payout considering the same percentage of fair value determined by the option pricing model.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Share-based compensation programs – continued

The combined compensation expense related to the Share-Based Compensation Programs described above as determined considering the fair value of the awards at the date of grant in 2024, 2023 and 2022, was recognized in the operating results of each subsidiary where the executives render services against other equity reserves and amounted to $55 in 2024, $61 in 2023 and $52 in 2022. The compensation expense determined at the date of grant is not reversed when the final payout of the performance programs is lower than the estimated fair value. The required Parent Company’s ADSs delivered to the executives to meet the Company’s awards are either newly issued or purchased, at the Company’s election. For these purposes, from time to time, an external trust in which the executives are beneficiaries, may receive funding from Cemex to incur these purchases. When the Parent Company funds the executives’ trust, it recognizes a decrease in other equity reserves against cash. As of December 31, 2024, there were no options or commitments to make payments in cash to the executives based on changes in the market price of the Parent Company’s ADSs.

23)	EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income attributable to ordinary equity holders of the Parent Company (the numerator) by the weighted average number of shares outstanding (the denominator) during the period. Shares that would be issued depending only on the passage of time should be included in the determination of the basic weighted average number of shares outstanding. Diluted earnings per share should reflect in both the numerator and denominator the assumption that convertible instruments are converted, that options or warrants are exercised, or that ordinary shares are issued upon the satisfaction of specified conditions, to the extent that such assumption would lead to a reduction in basic earnings per share or an increase in basic loss per share. Otherwise, the effects of potential shares are not considered because they generate anti-dilution.

The amounts considered for calculations of earnings per share in 2024, 2023 and 2022 were as follows:

	2024
Denominator (thousands of shares)
Weighted-average number of shares outstanding – basic		43,405,354	43,510,758	43,554,921
Effect of dilutive instruments – share-based compensation (note 22) ^1^		660,298	599,229	793,322
Weighted-average number of shares – diluted		44,065,652	44,109,987	44,348,243
Numerator
Net income from continuing operations	$	913	119	402
Less: non-controlling interest net income		21	17	27
Controlling interest net income from continuing operations	$	892	102	375
Net income from discontinued operations	$	47	80	483
Basic earnings per share
Controlling interest basic earnings per share	$	0.0217	0.0042	0.0197
Controlling interest basic earnings per share from continuing operations		0.0206	0.0023	0.0086
Controlling interest basic earnings per share from discontinued operations		0.0011	0.0018	0.0111
Controlling interest diluted earnings per share
Controlling interest diluted earnings per share	$	0.0213	0.0041	0.0193
Controlling interest diluted earnings per share from continuing operations		0.0202	0.0023	0.0085
Controlling interest diluted earnings per share from discontinued operations		0.0011	0.0018	0.0109
1	Number of the Parent Company’s shares to be potentially issued under the Share-Based Compensation<br>Programs, equivalent to 220.1 million CPOs or 22.01 million ADSs.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

24)	COMMITMENTS
24.1)	CONTRACTUAL OBLIGATIONS
---	---

As of December 31, 2024, Cemex had the following contractual obligations:

	2024
Obligations	Less than1 year		1-3years		3-5years		More than<br>5 years		Total
Long-term debt	$	189		1,551		1,552		2,267		5,559
Leases ^1^		320		398		255		542		1,515
Total debt and other financial obligations<br>^2^		509		1,949		1,807		2,809		7,074
Interest payments on debt ^3^		262		510		359		387		1,518
Pension plans and other benefits<br>^4^		156		268		266		670		1,360
Acquisition of property, plant and equipment		293		174		2		—		469
Purchases of services, raw materials, fuel and energy ^5^		506		793		406		513		2,218
Total contractual obligations	$	1,726		3,694		2,840		4,379		12,639
1	Represent nominal cash flows. As of December 31, 2024, the NPV of future payments under the<br>Company’s lease contracts was $1,171, of which, $352 refers to payments from 1 to 3 years and $209 refers to payments from 3 to 5 years.
---	---
2	The schedule of debt payments, which includes current maturities, does not consider the effect of any<br>refinancing of debt that may occur during the following years. In the past, Cemex has replaced its long-term obligations for others of a similar nature.
---	---
3	Estimated cash flows on floating rate denominated debt were determined using the floating interest<br>rates in effect as of December 31, 2024.
---	---
4	Represents estimated annual payments under these benefits for the next ten years (note 19), including<br>the estimate of new retirees during such future years.
---	---
5	Future payments for the purchase of raw materials are presented based on contractual nominal cash<br>flows. Future nominal payments for energy were estimated for all contractual commitments based on an aggregate average expected consumption per year using the future prices of energy established in the contracts for each period. Future payments also<br>include Cemex’s commitments for the purchase of fuel, carbon allowances and other services.
---	---

As of December 31, 2024 and 2023, from the contractual obligations summarized in the table above, the description of the most significant contracts is as follows:

•	In March 2024, with the intention of hedging a significant portion of Cemex’s expected deficit of<br>emission carbon allowances (“EUAs”) under the European Union’s emissions trading system (“EU ETS”) (note 29.13), Cemex entered into physically-settled forward purchase commitments for own use in 2029 and 2030 for the<br>acquisition of 1.8 million EUAs for an aggregate price of $157.
•	In October 2022, Cemex entered into a five-year agreement with Neoris beginning in 2023 for the acquisition of<br>Information Technology (“IT”) solutions and services for an annual amount of at least $55.
---	---
•	In February 2022, Cemex renewed or entered into new agreements with six service providers in the fields of<br>data processing services (back office) in finance, accounting and human resources; as well as IT infrastructure services, support and maintenance of IT applications in the countries in which Cemex operates, for a tenure of five to seven years at an<br>average annual cost of $60. These contracts replaced the agreements Cemex maintained with IBM, which expired on August 31, 2022.
---	---
•	Beginning in 2016, in connection with the Ventika S.A.P.I. de C.V. and the Ventika II S.A.P.I. de C.V. wind<br>farms (jointly “Ventikas”) located in the Mexican state of Nuevo Leon with a combined generation capacity of 252 Megawatts (“MW”), Cemex agreed to acquire a portion of the energy generated by Ventikas for its overall electricity<br>needs in Mexico for a period of 20 years. The estimated annual cost of this agreement is $24 if Cemex receives all its energy allocation. Nonetheless, energy supply from wind is variable in nature and final amounts are determined considering the<br>final MW per hour (“MWh”) effectively received at the agreed prices per unit.
---	---
•	Beginning in 2010, for its overall electricity needs in Mexico, Cemex agreed with EURUS to purchase a portion<br>of the electric energy generated for no less than 20 years. EURUS is a wind farm with an installed capacity of 250 MW operated by ACCIONA in the Mexican state of Oaxaca. The estimated annual cost of this agreement is $77 if Cemex receives all its<br>energy allocation. Nonetheless, energy supply from wind sources is variable in nature and final amounts will be determined considering the final MWh effectively received at the agreed prices per unit.
---	---
•	Cemex maintains a commitment initiated in April 2004 to purchase the energy generated by Termoeléctrica<br>del Golfo (“TEG”) until 2027 for its overall electricity needs in Mexico. The estimated annual cost of this agreement is $87 if Cemex receives all its energy allocation. Nonetheless, final amounts will be determined considering the final<br>MWh effectively received at the agreed prices per unit.
---	---
•	In regard to the above, Cemex also committed to supply TEG and another third-party electrical energy<br>generating plant adjacent to TEG with all fuel necessary for their operations until the year 2027, equivalent to 1.2 million tons of petroleum coke per year. Cemex covers its commitments under this agreement acquiring the volume of fuel from<br>sources in the international markets and Mexico.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Contractual obligations – continued

•

On October 24, 2018, Cemex, S.A.B. de C.V. entered into an energy financial hedge agreement in Mexico, commencing October 1, 2019 and for a period of 20 years. Through the contract, the Company fixed the MWh cost over an electric energy volume of 400 thousand MWh per year, through the payment of 25.375 Dollars per MWh of electric power in exchange for a market price. The committed price to pay will increase by 1.5% annually. The differential between the agreed price and the market price is settled monthly. Cemex considers this agreement as a hedge for a portion of its aggregate consumption of electric energy in Mexico and recognizes the result of the exchange of price differentials described previously in the statements of income as a part of the costs of energy. As a result of this contract, during 2024, 2023 and 2022, the Company received net proceeds of $5, $3 and $3, respectively. Cemex does not recognize this agreement at fair value since there is no deep market for electric power in Mexico that would effectively allow for its valuation.

24.2)

COMMITMENTS FROM EMPLOYEE BENEFITS

---

In some countries, Cemex has self-insured health care benefits plans for its active employees, which are managed on cost-plus fee arrangements with major insurance companies or provided through health maintenance organizations. As of December 31, 2024, in particular plans, Cemex has established stop-loss limits for continued medical assistance derived from a specific cause (e.g., an automobile accident, illness, etc.) ranging for a total limit of 550 thousand Dollars. In other plans, Cemex has established stop-loss limits per employee regardless of the number of events for a total cost of 2.5 million Dollars. The contingency for Cemex if all employees qualifying for health care benefits required medical services simultaneously is significant. However, Cemex believes this scenario is remote. The amount expensed through self-insured health care benefits was $72 in 2024, $72 in 2023 and $64 in 2022.

24.3)	CLIMATE CHANGE AND COMMITMENTS FOR THE REDUCTION OF CARBON DIOXIDE (“CO2”) EMISSIONS (unaudited)

The cement industry releases CO2 as part of the production process, mainly during the calcination of limestone, as well as CO2 released through the use of fossil fuels in the kilns. Currently, it is estimated that the whole cement industry releases between 5% to 8% of global CO2 emissions per year. In Cemex, from an estimate of close to 50 million tons of gross CO2 emissions per year (excluding discontinued operations), 63% are directly related to the production process (Scope 1), 6% are indirect emissions from electricity consumption (Scope 2) and the remaining 31% arise from activities related to the rest of the supply chain which includes supply and transportation (Scope 3).

Cemex has an agenda of medium-term and long-term initiatives aiming at significantly reducing its CO2 emissions in order to align the Company’s efforts with the Paris Agreement objectives of limiting global warming to 1.5ºC above pre-industrial levels. Cemex has defined its medium-term and long-term targets, which are mainly: 1) 31% reduction in CO2 emissions by 2030, compared to its 2020 baseline in Scope 1 emissions (a 47% reduction compared to its 1990 baseline); 2) achieve a 58% reduction in Scope 2 emissions by 2030 compared to a 2020 baseline; 3) achieve reductions by 2030 compared to a 2020 baseline, of 25% in CO2 emissions per ton of purchased clinker and cement, 30% in transport emissions, 40% of Scope 3 emissions per ton of purchased fuels and 42% in absolute Scope 3 emissions from the use of traded fuels; and 4) reach net zero CO2 emissions across the Company by 2050. Cemex’s 2030 targets for its cement business were verified by the Science-Based Targets initiative (“SBTi”) to be in line with the 1.5ºC scenario. Also, Cemex’s 2050 net-zero roadmap was validated by SBTi. SBTi, the foremost entity on science-based climate action goals, drives ambitious climate action in the private sector by enabling companies to set science-based emissions reduction targets.

To meet Cemex’s 2030 targets, the objectives have an impact that ranges from -10% to +10% in the total cash payout of the annual executive variable compensation of the Chief Executive Officer, the top senior management, and more than 4,500 employees, eligible for executive variable compensation. Moreover, Cemex has detailed yearly CO2 roadmaps developed for each cement plant which include, among other factors: a) the increasing use of alternative fuels and electricity from clean sources as well as combustion enhancers such as hydrogen, b) the increasing use of decarbonated or lower carbon raw materials and cementitious materials to reduce the clinker factor, as well as c) a roll-out of other proven CO2 reduction technologies and the investments required for their implementation.

Furthermore, to achieve the net-zero CO2 emissions target globally by 2050, Cemex is working through an open innovation platform in which it partners and collaborates with start-ups, universities, other industry players and entities from other industries along with the capabilities of Cemex’s Global Research and Development, Cemex Ventures, the corporate venture capital and open innovation unit of Cemex, and the internal “Smart Innovation” process, Cemex is developing a robust research and development portfolio of projects aimed at identifying the most promising technologies to capture, store and utilize CO2. These technologies should contribute beyond 2030 to fully decarbonize Cemex’s operations. To build this portfolio, Cemex is tapping into and expects to continue to tap government funding in Europe and the United States, where there are well established programs to foster innovation in the green technologies of the future. Cemex continues to pursue its strategy in the different markets where it operates.

As of the reporting date, there are no internal plans or commitments with local authorities to shut down operating assets due to climate change issues or concerns. For the years ended December 31, 2024, 2023 and 2022, the Company’s other expenses, net, in the statement of income, include expenses and losses associated with severe weather conditions of $9, $3 and $1, respectively, mainly related with hurricanes in Mexico and the United States in 2024, winter storms in the United States in 2023 and hurricane Ian in 2022. As of December 31, 2024, Cemex does not expect additional investments, expenses, or losses in connection with these events of nature.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

25)	LEGAL PROCEEDINGS
25.1)	PROVISIONS RESULTING FROM LEGAL PROCEEDINGS
---	---

Cemex is involved in various significant legal proceedings, which adverse resolutions are deemed probable. As a result, certain provisions and/or losses have been recognized in the financial statements, representing the best estimate of foreseeable cash outflows. As of December 31, 2024, the details of the most significant cases are as follows:

•	As of December 31, 2024, Cemex has environmental remediation liabilities in the United Kingdom pertaining<br>to closed and current landfill sites for the confinement of waste, representing the NPV of the obligations for an amount in Pounds sterling equivalent to $178. Expenditure, including monitoring, installation, repair and renewal of environmental<br>infrastructure, was assessed and quantified over a period up to 60 years from the date of closure, in which the sites have the potential to cause environmental harm.
•	As of December 31, 2024, Cemex has environmental remediation liabilities in the United States for $37,<br>related to: a) the disposal of various materials in accordance with past industry practice, which might currently be categorized as hazardous substances or wastes; and b) the cleanup of sites used or operated by Cemex, including discontinued<br>operations, regarding the disposal of hazardous substances or waste, either individually or jointly with other parties. Cemex does not believe that expenditure on these matters would exceed the amounts recorded. The ultimate cost that may be<br>incurred to resolve these environmental issues cannot be assured until all environmental studies, investigations, remediation work and negotiations with, or litigation against, potential sources of recovery have been completed.<br>
---	---
25.2)	CONTINGENCIES FROM LEGAL PROCEEDINGS
---	---

Cemex is involved in various legal proceedings, which have not required the recognition of accruals, considering that the probability of loss is less than probable. Nonetheless, until all stages in the procedures are exhausted in each proceeding, Cemex cannot assure the achievement of a final favorable resolution.

As of December 31, 2024, the most significant contingencies with a quantification of the potential loss, when it is determinable and would not impair the outcome of the relevant proceeding, were as follows:

•	The European Commission has inspected Cemex’s offices in France and requested certain information<br>relating to the business in France in the construction chemicals sector, which includes chemical admixtures and additives for use in concrete, cement and related construction products. Cemex is fully cooperating with the authorities conducting this<br>investigation. The fact that this investigation is being conducted does not mean that the European Commission has concluded that Cemex has violated the law. As of December 31, 2024, due to the current stages of this investigation, Cemex is not<br>able to assess the likely outcome of the investigation as it relates to us or whether it would have a material adverse impact on our results of operations, liquidity and financial condition.
•	Cemex’s operations in the United States received a grand jury subpoena issued by the Department of<br>Justice (the “DOJ”) in connection with an investigation of possible antitrust law violations in the cement additives and concrete admixtures sector. Cemex is fully cooperating with the authorities conducting this investigation. The fact<br>that this investigation is being conducted does not mean that the DOJ has concluded that Cemex has violated the law. As of December 31, 2024, due to the current stage of this investigation, we are not able to assess the likely outcome of the<br>investigation as it relates to us or whether it would have a material adverse impact on our results of operations, liquidity and financial condition.
---	---
•	In December 2016, the Parent Company received subpoenas from the SEC seeking information to determine whether<br>there have been any violations of the U.S. Foreign Corrupt Practices Act stemming from the Maceo Project. These subpoenas do not mean that the SEC has concluded that the Parent Company or any of its affiliates violated the law. On March 12,<br>2018, the DOJ issued a grand jury subpoena to the Parent Company relating to its operations in Colombia and other jurisdictions. In 2020, the Company delivered all of the information and documentation that had been requested and has not received any<br>more requests since then. The Parent Company intends to continue to cooperate fully with the SEC, the DOJ and any other investigative entity. As of December 31, 2024, the Parent Company is unable to predict the duration, scope, or outcome of<br>either the SEC investigation or the DOJ investigation, or any other investigation that may arise, or the potential sanctions which could be borne by the Parent Company, or if such sanctions, if any, would have a material adverse impact on Cemex<br>results of operations, liquidity or financial position.
---	---

In addition to the legal proceedings described above in notes 25.1 and 25.2, as of December 31, 2024, Cemex is involved in various legal proceedings of lesser impact that have arisen in the ordinary course of business. These proceedings involve: 1) product warranty claims; 2) claims for environmental damages; 3) indemnification claims relating to acquisitions or divestitures; 4) claims to revoke permits and/or concessions; and 5) other diverse civil, administrative, commercial and lawless actions. Cemex considers that in those instances in which obligations have been incurred, Cemex has accrued adequate provisions to cover the related risks. Cemex believes these matters will be resolved without any significant effect on its business, financial position or results of operations. In addition, in relation to certain ongoing legal proceedings, Cemex is sometimes able to make and disclose reasonable estimates of the expected loss or range of possible loss, as well as disclose any provision accrued for such loss, but for a limited number of ongoing legal proceedings, Cemex may not be able to make a reasonable estimate of the expected loss or range of possible loss or may be able to do so but believes that disclosure of such information on a case-by-case basis would seriously prejudice Cemex’s position in the ongoing legal proceedings or any related settlement discussions. Accordingly, in these cases, Cemex has disclosed qualitative information with respect to the nature and characteristics of the contingency but has not disclosed the estimate of the range of potential loss.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

25.3)	OTHER SIGNIFICANT PROCESSES

In connection with the Maceo Plant, as described in note 15.1, as of December 31, 2024, the Maceo Plant has not initiated commercial operations. The evolution and status of the main issues related to the Maceo Plant are described as follows:

•	As of December 31, 2024, part of Cemex’s investments in the Maceo Plant, including the land, the<br>mining concession, the environmental license and the shares of Zona Franca Especial Cementera del Magdalena Medio S.A.S. (“Zomam”) (holder of the free trade zone concession), acquired in 2012 from CI Calizas y Minerales S.A. (“CI<br>Calizas”) and part of the plant’s own assets (28%), are under a process of forfeiture of ownership that was linked to a former shareholder of CI Calizas by the Attorney General’s Office of the Colombian Nation (the “Attorney<br>General”). The rest of the plant’s assets (72%) belongs to Cemex Colombia. As a consequence of the process of forfeiture of ownership, Cemex Colombia (i) does not have the Zomam’s legal representation, (ii) is not the<br>legitimate owner of the land on which the Maceo Plant was built, and (iii) is not the assigned beneficiary of the mining concession or the permits associated with the project. Additionally, Cemex Colombia’s ownership of the Zomam shares<br>and of Zomam’s assets are subject to several legal proceedings.
•	In relation with the property of Zomam’s assets and its shares, on December 2020, Cemex Colombia filed a<br>lawsuit before the Business Superintendency of Colombia, seeking the invalidity and, alternatively, the annulment of the equity contribution in-kind carried out by Cemex Colombia to Zomam in December 2015, by<br>means of which a portion of the Maceo Plant’s assets were contributed to such entity. As of December 31, 2024, the first and the second instance rulings, clearly stated that the capitalization made by Cemex Colombia was legal and complied<br>with applicable laws. Against the decision, Cemex filed an extraordinary appeal, which is yet to be resolved by the Colombian Supreme Court of Justice. Additionally, on March 12, 2024, Corporación Cementera Latinoamericana S.L.U.<br>(“CCL”), a Cemex indirect subsidiary, filed a lawsuit against Zomam, to recover $32.6 plus interest, owed by Zomam to CCL. Currently, the proceeding it’s on the initial stage and a first instance decision is yet to be obtained.<br>
---	---
•	As to the forfeiture of ownership proceeding mentioned above, in April 2019, Cemex Colombia and one of its<br>subsidiaries reached a conciliatory agreement with the Sociedad de Activos Especiales, S.A.S. (the “SAE”) and CI Calizas before the Attorney General’s Office and as a consequence, signed a contract of Mining Operation, Manufacturing<br>and Delivery Services and Leasing of Properties for Cement Production (the “Operation Contract”), which allows Cemex Colombia to continue using the assets for an initial term of 21 years that can be extended for ten additional years under<br>certain conditions. Under the Operation Contract, once the Maceo Plant begins commercial operations, Cemex Colombia and/or a subsidiary will pay on a quarterly basis: a) 0.9% of the net sales resulting from the cement produced in the plant as<br>compensation to CI Calizas for the right of Cemex Colombia to extract and use the mineral reserves; and b) 0.8% of the net sales resulting from the cement produced in the plant as payment to Zomam for cement manufacturing and delivery services, as<br>long as Zomam maintains the free trade zone benefit, or, 0.3% in case that Zomam losses such benefit. The Operation Contract will continue in force regardless of the result of the forfeiture of ownership process.
---	---
•	As of December 31, 2024, Cemex believes that it would be able to keep ownership of the Maceo Plant.<br>Nevertheless, if the forfeiture of ownership proceeding over the assets is ordered in favor of the Colombian State, and if the assets were adjudicated to a third party in a public tender offer, by virtue of and early disposal proceeding, such third<br>party would have to subrogate to the Operation Contract. As of December 31, 2024, Cemex is not able to estimate the results of such proceedings.
---	---
•	In October 2021, CI Calizas, as holder of the environmental license, began the procedures before the National<br>Environmental License Authority (“ANLA”) to expand the environmental extraction license to 1.3 million metric tons of minerals (clay and limestone) annually from the Maceo Plant quarry without the need to bring minerals from other<br>locations. On November 15, 2024, the ANLA archived CI Calizas’ application, this decision was appealed by CI Calizas. The ruling temporarily limits the mine’s material extraction capacity to 990 thousand tons of minerals (clay<br>and limestone) and the plant’s production to 1.5 million metric tons of cement per year. This decision does not have a material adverse impact on the operations of the Maceo Plant. CI Calizas still has the right to file again the<br>application to expand the environmental extraction license.
---	---
•	With this decision, most of the relevant permits of the Maceo Plant have been obtained, and thus, as of<br>December 31, 2024, it is expected that the access road will be substantially completed in 2025 as well as the commissioning of the Maceo Plant. The Maceo Plant can begin operations adjusting its productions to the limits established by the<br>corresponding permits and licenses without the conclusion of the access road.
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Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

26)	RELATED PARTIES

All significant balances and transactions between the entities that constitute Cemex have been eliminated in the preparation of the consolidated financial statements. These balances with related parties resulted primarily from: (i) the sale and purchase of goods between group entities; (ii) the sale and/or acquisition of subsidiaries’ shares within Cemex; (iii) the invoicing of administrative services, rentals, trademarks and commercial name rights, royalties and other services rendered between group entities; and (iv) loans between related parties. When market prices and/or market conditions are not readily available, Cemex conducts transfer pricing studies in the countries in which it operates to comply with regulations applicable to transactions between related parties.

The definition of related parties includes entities or individuals outside Cemex, who may take advantage of being in a privileged situation due to their relationship with Cemex. Likewise, this applies to cases where Cemex may take advantage of such relationships and benefit from its financial position or operating results.

For the years ended December 31, 2024, 2023 and 2022, in the ordinary course of business, Cemex enters into transactions with related parties for the sale and/or purchase of products, the sale and/or purchase of services or the lease of assets, all of which are not significant for Cemex and, except for the transaction mentioned below, to the best of Cemex’s knowledge, are not significant to the related party, are incurred for non-significant amounts for Cemex and are executed under conditions following the same authorizations applied to other third parties. These identified transactions, which involved members of the Parent Company’s Board of Directors, members of Cemex’s Executive Committee and other members of senior management, as applicable, are reviewed by the Parent Company’s Board of Directors Corporate Practices and Finance Committee and approved or ratified at least annually by the Parent Company’s Board of Directors, as per Cemex’s applicable policies on conflicts of interest and related person transactions. These transactions with related parties also include transactions with subsidiaries with significant non-controlling interests, such as TCL and Caribbean Cement Company Limited; with other companies in which Cemex has a non-controlling position, such as GCC and Lehigh White Cement Company; with companies in which the Parent Company’s Board of Director members are members of such company’s board of directors, like Banco Santander de Negocios de México, S.A. de C.V. and affiliates, Grupo ICA, S.A. de C.V. and affiliates, FEMSA, S.A.B. de C.V., Carza, S.A.P.I. de C.V. and related companies, Nemak, S.A.B. de C.V., NEG Natural, S.A. de C.V., Banco Mercantil del Norte, S.A. and affiliates, BBVA México S.A. and affiliates, Neoris N.V.; and with companies at which members of Cemex’s Executive Committee have family members such as Cementos Españoles de Bombeo, S. de R.L. (“CEB”), HSBC México, S.A. and affiliates and the firm Mckinsey & Company Inc. México, S.C. and affiliates, among others.

For Cemex, except as set forth below, none of these transactions executed in 2024 are material to be disclosed separately. In addition, during the same periods, no member of Cemex, S.A.B. de C.V.’s senior management or Board of Directors had any outstanding loans with Cemex.

The most important transaction with related parties during 2024 included in Cemex’s financial statements was as follows:

•	For the year 2024, Cemex incurred services from CEB, a provider of<br>ready-mix pumping services to Cemex’s customers in Mexico for $70.

For the years 2024, 2023 and 2022, the aggregate compensation paid to members of Cemex, S.A.B. de C.V.’ Board of Directors, including alternate directors, and Cemex’s senior management was $48, $71 and $44, respectively. Of these amounts, $31 in 2024, $24 in 2023, $29 in 2022, were paid as base compensation plus performance bonuses, including pension and post-employment benefits. In addition, $17 in 2024, $47 in 2023 and $15 in 2022 of the aggregate amounts in each year, corresponded to allocations of ADSs under Cemex’s executive share-based compensation programs.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

27)	PRINCIPAL SUBSIDIARIES

As mentioned in notes 4.3 and 21.4, as of December 31, 2024 and 2023, there are non-controlling interests in certain consolidated entities that are in turn holding companies of relevant operations. The principal subsidiaries as of December 31, 2024 and 2023, which ownership interest is presented according to the interest maintained by Cemex, were as follows:

		% Interest
Subsidiary	Country	2024		2023
Cemex España, S.A. ^1^	Spain		99.9		99.9
Cemex, Inc.	United States of America		100.0		100.0
Cemex Nicaragua, S.A. ^2^	Nicaragua		100.0		100.0
Assiut Cement Company	Egypt		95.8		95.8
Cemex Colombia, S.A. ^3^	Colombia		99.7		99.7
Cemento Bayano, S.A. ^4^	Panama		99.5		99.5
Cemex Dominicana, S.A. ^5^	Dominican Republic		100.0		100.0
Trinidad Cement Limited	Trinidad and Tobago		69.8		69.8
Caribbean Cement Company Limited<br>^6^	Jamaica		79.0		79.0
Cemex de Puerto Rico Inc.	Puerto Rico		100.0		100.0
Cemex France (formerly Cemex France Gestion (S.A.S.))	France		100.0		100.0
Cemex Holdings Philippines, Inc.	Philippines		—		89.9
Solid Cement Corporation	Philippines		—		100.0
APO Cement Corporation	Philippines		—		100.0
Cemex UK	United Kingdom		100.0		100.0
Cemex Deutschland, AG.	Germany		100.0		100.0
Cemex Czech Republic, s.r.o.	Czech Republic		100.0		100.0
Cemex Polska sp. Z.o.o.	Poland		100.0		100.0
Cemex Holdings (Israel) Ltd.	Israel		100.0		100.0
Cemex Topmix LLC, Cemex Supermix LLC and Cemex Falcon LLC ^7^	United Arab Emirates		100.0		100.0
Cemex International Trading LLC<br>^8^	United States of America		100.0		100.0
Sunbulk Shipping, S.L.U. ^9^ ****	Spain		100.0		100.0
1	Cemex España is the direct or indirect holding company of most of Cemex’s international<br>operations.
---	---
2	Represents Cemex Colombia’s 99% interest and CLH’s 1% interest held indirectly through<br>another subsidiary of CLH.
---	---
3	Represents CLH’s direct and indirect interest in ordinary and preferred shares, including own<br>shares held in Cemex Colombia’s treasury.
---	---
4	Represents CLH’s 99.483% indirect interest in ordinary shares, which excludes a 0.516% interest<br>held in Cemento Bayano, S.A.’s treasury.
---	---
5	See subsequent event related to this subsidiary in note 28.
---	---
6	Represents the aggregate ownership interest of Cemex in this entity of 79.04%, which includes<br>TCL’s 74.08% direct and indirect interest and Cemex’s 4.96% indirect interest held through other subsidiaries.
---	---
7	Cemex España indirectly owns a 49% equity interest in each of these entities and indirectly<br>holds the remaining 51% of the economic benefits, through agreements with other shareholders.
---	---
8	Cemex International Trading LLC participates in the international trading of Cemex’s products<br>and fuel commercialization.
---	---
9	Sunbulk Shipping, S.L.U. is involved mainly in maritime and land transportation and/or shipping of<br>goods worldwide and the handling, administration, and hiring of shipments and cargo at ports, terminals and other loading and unloading destinations worldwide, as well as the offering and contracting of services in relation thereto for Cemex’s<br>trading entities and operations.
---	---

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

28)	SUBSEQUENT EVENT

On January 30, 2025, Cemex completed the sale of its operations in the Dominican Republic (note 4.2), considering a business valuation of $950 subject to final adjustments for changing balances of cash, debt and working capital.

29)	MATERIAL ACCOUNTING POLICIES
29.1)	PRINCIPLES OF CONSOLIDATION
---	---

The consolidated financial statements include those of Cemex, S.A.B. de C.V. and those of all controlled entities. Balances and operations between related parties are eliminated in consolidation.

Investments in associates and joint controlled entities are accounted for by the equity method. The equity method reflects the investee’s original cost and Cemex’s share of the investee’s equity and earnings after acquisition.

29.2)	USE OF ESTIMATES AND CRITICAL ASSUMPTIONS

The preparation of financial statements in accordance with IFRS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities at the date of the financial statements, as well as the reported amounts of revenues and expenses during the period. These assumptions are reviewed on an ongoing basis using available information. Actual results could differ from these estimates. The main items subject to significant estimates and assumptions by management include impairment tests of long-lived assets, recognition of deferred income tax assets, the recognition of uncertain tax positions, the measurement of asset retirement obligations, as well as provisions regarding legal proceedings and environmental liabilities, among others. Significant judgment is required by management to appropriately assess the amounts of these concepts.

29.3)	FOREIGN CURRENCY TRANSACTIONS AND TRANSLATION OF FOREIGN CURRENCY FINANCIAL STATEMENTS

Transactions denominated in foreign currencies are recorded in the functional currency of each consolidated entity at the exchange rates prevailing on the dates of their execution. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of each consolidated entity at the exchange rates prevailing at the statement of financial position date, and the resulting foreign exchange fluctuations are recognized in earnings, except for exchange fluctuations arising from: 1) foreign currency indebtedness associated with the acquisition of foreign entities; and 2) fluctuations associated with related parties’ balances denominated in foreign currency, whose settlement is neither planned nor likely to occur in the foreseeable future and as a result, such balances are of a permanent investment nature. These fluctuations are recorded against “Other equity reserves,” as part of the foreign currency translation adjustment (note 21.2) until the disposal of the foreign net investment, at which time, the accumulated amount in equity is recycled through the statement of income as part of the gain or loss on disposal.

The financial statements of consolidated entities, as determined using their respective functional currency, are translated to Dollars at the closing exchange rate for the statement of financial position and at the closing exchange rates of each month within the period for the statements of income. The functional currency is that in which each consolidated entity primarily generates and expends cash. The corresponding translation effect is included within “Other equity reserves” and is presented in the statement of other comprehensive income for the period as part of the foreign currency translation adjustment (note 21.2) until the disposal of the net investment in the consolidated entity.

Considering its integrated activities, for purposes of functional currency, the Parent Company deemed to have two divisions, one related with its financial and holding company activities, in which the functional currency is the Dollar for all assets, liabilities and transactions associated with these activities, and another division related with the Parent Company’s operating activities in Mexico, in which the functional currency is the Peso for all assets, liabilities and transactions associated with these activities.

The most significant closing exchange rates for the statement of financial position and the approximate average exchange rates (as determined using the closing exchange rates of each month within the period) for the statements of income with respect Cemex’s main functional currencies to the Dollar as of December 31, 2024, 2023 and 2022, were as follows:

	2024				2023				2022
Currency	Closing		Average		Closing		Average		Closing		Average
Peso		20.83		18.55		16.97		17.63		19.50		20.03
Euro		0.9654		0.9265		0.9059		0.9227		0.9344		0.9522
British Pound Sterling		0.7988		0.7819		0.7852		0.8019		0.8266		0.8139
Colombian Peso		4,409		4,104		3,822		4,272		4,810		4,277

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

29.4)	FINANCIAL INSTRUMENTS

Classification and measurement of financial instruments

Financial assets are classified as “Held to collect” and measured at amortized cost when they meet both of the following conditions and are not designated as at fair value through profit or loss: a) are held within a business model whose objective is to hold assets to collect contractual cash flows; and b) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Amortized cost represents the NPV of the consideration receivable or payable as of the transaction date. This classification of financial assets comprises the following captions:

•	Cash and cash equivalents (note 9).
•	Trade accounts receivable, other current accounts receivable and other current assets (notes 10 and 11). Due<br>to their short-term nature, Cemex initially recognizes these assets at the original invoiced or transaction amount less expected credit losses, as explained below.
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•	Trade accounts receivable sold under securitization programs, in which certain residual interest in the trade<br>accounts receivable sold in case of recovery failure and continued involvement in such assets is maintained, do not qualify for derecognition and are maintained in the statement of financial position (notes 10 and 17.2).
---	---
•	Investments and non-current accounts receivable (note 14.2).<br>Subsequent changes in effects from amortized cost are recognized in the statement of income as part of “Financial income and other items, net.”
---	---

Certain strategic investments are measured at fair value through other comprehensive income within “Other equity reserves” (note 14.2). Cemex does not maintain financial assets “Held to collect and sell” whose business model has the objective of collecting contractual cash flows and then selling those financial assets.

The financial assets that are not classified as “Held to collect” or that do not have strategic characteristics fall into the residual category of held at fair value through the statement of income as part of “Financial income and other items, net” (note 14.2).

Debt instruments and other financial obligations are classified as “Loans” and measured at amortized cost (notes 17.1 and 17.2). Interest accrued on financial instruments is recognized within “Other accounts payable and accrued expenses” against financial expense. During the reported periods, Cemex did not have financial liabilities voluntarily recognized at fair value or associated with fair value hedge strategies with derivative financial instruments.

Derivative financial instruments are recognized as assets or liabilities in the statement of financial position at their estimated fair values, and the changes in such fair values are recognized in the statement of income within “Financial income and other items, net” for the period in which they occur, except in the case of hedging instruments as described below.

Hedging instruments (note 17.4)

A hedging relationship is established to the extent the entity considers, based on the analysis of the overall characteristics of the hedging and hedged items, that the hedge will be highly effective in the future and the hedge relationship at inception is aligned with the entity’s reported risk management strategy (note 17.5). The accounting categories of hedging instruments are: a) cash flow hedge; b) fair value hedge of an asset or forecasted transaction; and c) hedge of a net investment in a subsidiary.

In cash flow hedges, the effective portion of changes in fair value of derivative instruments are recognized in stockholders’ equity within other equity reserves and are reclassified to earnings as the interest expense of the related debt is accrued, in the case of interest rate swaps, or when the underlying products are consumed in the case of contracts on the price of raw materials and commodities. In hedges of the net investment in foreign subsidiaries, changes in fair value are recognized in stockholders’ equity as part of the foreign currency translation result within “Other equity reserves” (note 29.3), whose reversal to earnings would take place upon disposal of the foreign investment. Derivative instruments are negotiated with institutions with significant financial capacity; therefore, Cemex believes the risk of non-performance of the obligations agreed to by such counterparties to be minimal.

Impairment of financial assets

Impairment losses of financial assets, including trade accounts receivable, are recognized using the Expected Credit Loss model (“ECL”) for the entire lifetime of such financial assets on initial recognition, and at each subsequent reporting period, even in the absence of a credit event or if a loss has not yet been incurred, considering for their measurement past events and current conditions, as well as reasonable and supportable forecasts affecting collectability. For purposes of the ECL model of trade accounts receivable, on a country-by-country basis, Cemex segments its accounts receivable by type of client, homogeneous credit risk and days past due and determines for each segment an average rate of ECL, considering actual credit loss experience generally over the last 12 months and analyses of future delinquency, that is applied to the balance of the accounts receivable. The average ECL rate increases in each segment of days past due until the rate is 100% for the segment of 365 days or more past due.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Costs incurred in the issuance of debt or borrowings

Direct costs incurred in debt issuances or borrowings, as well as debt refinancing or non-substantial modifications to debt agreements that did not represent an extinguishment of debt by considering that the holders and the relevant economic terms of the new instrument are not substantially different to the replaced instrument, adjust the carrying amount of the related debt and are amortized as interest expense as part of the effective interest rate of each instrument over its maturity. These costs include commissions and professional fees. Costs incurred in the extinguishment of debt, as well as debt refinancing or modifications to debt agreements, when the new instrument is substantially different from the old instrument according to a qualitative and quantitative analysis, are recognized in the statement of income as incurred.

Leases (notes 15.2 and 17.2)

At the inception of a contract, Cemex assesses whether a contract is, or contains, a lease. A contract is, or contains a lease, if at the inception of the contract, it conveys the right to control the use of an identified asset for a period in exchange for consideration. Pursuant to IFRS 16, leases are recognized as financial liabilities against assets for the right-of-use, measured at their commencement date as the NPV of the future contractual fixed payments, using the interest rate implicit in the lease or, if that rate cannot be readily determined, Cemex’s incremental borrowing rate. Cemex determines its incremental borrowing rate by obtaining interest rates from its external financing sources and makes certain adjustments to reflect the term of the lease, the type of the asset leased and the economic environment in which the asset is leased.

Cemex does not separate the non-lease component from the lease component included in the same contract. Lease payments included in the measurement of the lease liability comprise contractual rental fixed payments, less incentives, fixed payments of non-lease components and the value of a purchase option, to the extent that option is highly probable to be exercised or is considered a bargain purchase option. Interest incurred under the financial obligations related to lease contracts is recognized as part of the “Interest expense” line item in the statement of income.

At the commencement date or on modification of a contract that contains a lease component, Cemex allocates the consideration in the contract to each lease component based on their relative stand-alone prices. Cemex applies the recognition exception for lease terms of 12 months or less and contracts of low-value assets and recognizes the lease payment of these leases as rental expense in the statement of income over the lease term. Cemex defined the lease contracts for office and computer equipment as low-value assets.

The lease liability is measured at amortized cost using the effective interest method as payments are incurred and is remeasured when: a) there is a change in future lease payments arising from a change in an index or rate, b) if there is a change in the amount expected to be payable under a residual guarantee, c) if the Company changes its assessment of whether it will exercise a purchase, extension or termination option, or d) if there is a revised in-substance fixed lease payment. When the lease liability is remeasured, an adjustment is made to the carrying amount of the asset for the right-of-use or is recognized within “Financial income and other items, net” if such asset has been reduced to zero.

Embedded derivative financial instruments

Cemex reviews its contracts to identify the existence of embedded derivatives. Identified embedded derivatives are analyzed to determine if they need to be separated from the host contract and recognized in the statement of financial position as assets or liabilities, applying the same valuation rules used for other derivative instruments.

29.5)	PROPERTY, MACHINERY AND EQUIPMENT AND ASSETS FOR THE RIGHT-OF-USE (note 15)

Property, machinery and equipment are recognized at their acquisition or construction cost, as applicable, less accumulated depreciation and impairment losses. Depreciation of fixed assets is recognized as part of cost and operating expenses (notes 5 and 6) and is calculated using the straight-line method over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of-production method. Periodic maintenance of fixed assets is expensed as incurred. Advances to suppliers of fixed assets are presented as part of other non-current accounts receivable.

Assets for the right-of-use related to leases are initially measured at cost, which comprises the initial amount of the lease liability adjusted by any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle, remove or restore the underlying asset, less any lease incentives received. Assets for the right-of-use are generally depreciated using the straight-line method from the commencement date to the end of the lease term. Assets for the right-of-use may be reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

Cemex capitalizes, as part of the related cost of fixed assets, interest expense from existing debt during the construction or installation period of qualifying fixed assets, considering Cemex’s corporate average interest rate and the average balance of investments in process for the period.

29.6)	BUSINESS COMBINATIONS, GOODWILL AND OTHER INTANGIBLE ASSETS (notes 4.1 and 16)

The consideration transferred in business combinations is allocated to all assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date. Any unallocated portion of the consideration transferred represents goodwill, which is not amortized and is subject to periodic impairment tests (note 29.7). Costs associated with the acquisition are expensed in the statement of income as incurred.

Intangible assets are recognized at their acquisition or development cost, as applicable, when probable future economic benefits are identified and there is evidence of control over such benefits. Definite life intangible assets are amortized on a straight-line basis or using the units-of-production method, as applicable, as part of operating costs and expenses (notes 5 and 6). Direct costs incurred in the development stage of computer software for internal use are capitalized and amortized through the operating results over the useful life of the software, which, on average is five years.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Other intangible assets – continued

Cemex’s extraction rights have a weighted average useful life of 83 years, depending on the sector and the expected life of the related reserves. Except for extraction rights which are amortized using the units-of-production method and/or as otherwise indicated, Cemex’s intangible assets are amortized on a straight-line basis over their useful lives that range on average from 3 to 20 years.

29.7)	IMPAIRMENT OF LONG-LIVED ASSETS (notes 15 and 16)

Property, machinery and equipment, assets for theright-of-use, intangible assets of definite life and other investments

These assets are evaluated for impairment upon the occurrence of internal or external impairment indicators. Impairment losses, corresponding to the excess of the asset’s carrying amount over its recoverable amount, are recorded within “Other expenses, net.” Recoverable amounts, which include the NPV of future projected cash flows arising from the asset over its useful life (value in use), are determined considering market economic assumptions.

Goodwill

Goodwill is tested for impairment when required upon the occurrence of internal or external indicators of impairment or at least once a year, during the last quarter of such year, at the level of the group of cash-generating units (“CGUs”) to which goodwill balances were allocated by determining the recoverable amount of such group of CGUs, corresponding to the NPV of estimated future cash flows to be generated by such CGUs over periods of 5 years plus terminal value (value in use). An impairment loss is recognized within “Other expenses, net” when the recoverable amount is lower than the net book value of the group of CGUs. Impairment charges recognized on goodwill are not reversed in subsequent periods.

The reportable segments reported by Cemex (note 4.3), represent Cemex’s groups of CGUs to which goodwill has been allocated for purposes of testing goodwill for impairment and represent the lowest level within Cemex at which goodwill is monitored internally by management.

29.8)	PROVISIONS (notes 18, 24 and 25)

Cemex recognizes provisions when it has a legal or constructive obligation resulting from past events, whose resolution would require cash outflows, or the delivery of other resources owned by the Company. As of December 31, 2024 and 2023, some significant proceedings that gave rise to a portion of the carrying amount of Cemex’s other current and non-current liabilities and provisions are detailed in note 25.1.

Obligations or losses related to contingencies are qualitatively disclosed in the notes to the financial statements. The effects of long-term commitments established with third parties, such as supply contracts with suppliers or customers, are recognized in the financial statements on an incurred or accrued basis, after taking into consideration the substance of the agreements. Relevant commitments are disclosed in the notes to the financial statements.

29.9)	PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS (note 19)

Defined contribution pension plans

The costs of defined contribution pension plans are recognized in the operating results as they are incurred. Liabilities arising from such plans are settled through cash transfers to the employees’ retirement accounts, without generating future obligations.

Definedbenefit pension plans and other post-employment benefits

The costs associated with defined benefit pension plans and other post-employment benefits, the latter comprised of health care benefits, life insurance and seniority premiums, are recognized services are rendered by the employees based on actuarial estimations of the benefits’ present value considering the advice of external actuaries. For certain pension plans, Cemex has created irrevocable trust funds to cover future benefit payments (“plan assets”). These plan assets are valued at their estimated fair value at the statement of financial position date. All actuarial gains and losses for the period, related to differences between the projected and real actuarial assumptions at the end of the period, as well as the difference between the expected and actual return on plan assets, are recognized as part of “Other items of comprehensive income, net” within stockholders’ equity.

The service cost, corresponding to the increase in the obligation for additional benefits earned by employees during the period, is recognized within operating costs and expenses. The net interest cost, resulting from the increase in obligations for changes in NPV and the change during the period in the estimated fair value of plan assets, is recognized within “Financial income and other items, net.”

Termination benefits

Termination benefits, not associated with a restructuring event, which mainly represent severance payments by law, are recognized in the operating results for the period in which they are incurred. In the event of restructuring, the expenses are recognized within “Other expenses, net.”

29.10)	INCOME TAXES (note 20)

The income taxes reflected in the statement of income include the amounts incurred during the period and the amounts of deferred income taxes, determined according to the income tax law applicable to each subsidiary, reflecting any uncertainty in income tax treatments and include the effects measured in each subsidiary by applying the enacted statutory income tax rate at the end of the reporting period. According to IFRS, all items charged or credited directly in stockholders’ equity or as part of other comprehensive income or loss for the period are recognized net of their current and deferred income tax effects. The effect of a change in enacted statutory tax rates is recognized in the period in which the change is officially enacted.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Deferred income taxes

Deferred tax assets are reviewed at each reporting date and are derecognized when it is not deemed probable that the related tax benefit will be realized, considering the aggregate amount of self-determined tax loss carryforwards that Cemex believes will not be rejected by the tax authorities based on available evidence and the likelihood of recovering them prior to their expiration through an analysis of estimated future taxable income. To determine whether it is probable that deferred tax assets will ultimately be recovered, Cemex takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, expansion plans, projected taxable income, carryforward periods, current tax structure, potential changes or adjustments in tax structure, tax planning strategies, future reversals of existing temporary differences. Deferred income tax assets and liabilities relating to different tax jurisdictions are not offset.

Uncertain taxpositions

The income tax effects of uncertain tax positions are recognized when it is probable that the position will be sustained based on its technical merits and assuming that the tax authorities will examine each position with full knowledge of all relevant information. For each position, Cemex considers its probability, regardless of its relation to any broader tax settlement. The probability threshold represents a positive assertion by management that Cemex is entitled to the economic benefits of a tax position. If a tax position is considered not probable to be sustained, no benefits of the position are recognized. Interest and penalties related to unrecognized tax benefits are recorded as part of the income tax in the statements of income based on the Company’s analysis of the nature of such interest and penalties, considering recent IFRS Interpretations Committee guidance.

Effective income tax rate

The effective income tax rate is determined by dividing the line item “Income tax” by the line item “Earnings before income tax.” This effective tax rate is further reconciled to Cemex’s statutory tax rate applicable in Mexico (note 20.3). A significant effect on Cemex’s effective tax rate and consequently on the reconciliation of Cemex’s effective tax rate, relates to the difference between the statutory income tax rate in Mexico of 30% and the applicable income tax rates of each country where Cemex operates.

For the years ended December 31, 2024, 2023 and 2022, the statutory tax rates in Cemex’s main operations were as follows:

Country	2024	2023	2022
Mexico	30.0%	30.0%	30.0%
United States	21.0%	21.0%	21.0%
United Kingdom	25.0%	23.5%	19.0%
France	25.8%	25.8%	25.8%
Germany	28.2%	28.2%	28.2%
Spain	25.0%	25.0%	25.0%
Israel	23.0%	23.0%	23.0%
Colombia	35.0%	35.0%	35.0%
Other operations	15.0% – 30.0%	15.0% – 30.0%	18.0% – 30.0%

Cemex’s current and deferred income tax amounts included in the statement of income for the period are highly variable, and are subject, among other factors, to taxable income determined in each jurisdiction in which Cemex operates. Such amounts of taxable income depend on factors such as sale volumes and prices, costs and expenses, exchange rate fluctuations and interest on debt, among others, as well as the estimated tax assets at the end of the period due to the expected future generation of taxable gains in each jurisdiction.

Global minimum tax

On July 10, 2021, the intergovernmental international group promoting economic and financial cooperation known as G20 endorsed the key components of the Pillar Two tax reform that was agreed by 132 countries and jurisdictions (Inclusive Framework on Base Erosion and Profit Shifting or the “Inclusive Framework”). The key components of Pillar Two, which are commonly referred to as the “global minimum tax” introduce a minimum effective tax rate of at least 15%, calculated based on a specific rule set, known as “GloBE model rules”, which was published on December 20, 2021, by the Organization for Economic Co-operation and Development (“OECD”), as approved by the Inclusive Framework. Groups with an effective tax rate below the minimum in any particular jurisdiction would be required to pay top-up tax at the level of the ultimate parent entity or the intermediate parent entities, as applicable, based on the Income Inclusion Rule. The global minimum tax would be applied to groups with annual revenue of at least 750 million Euros. Among the countries in which Cemex operates, Switzerland and the EU have endorsed the global minimum tax, and consequently, the rule will start to be applied at the level of Cemex’s Swiss on January 1, 2025, and for Spanish intermediate parent entity started January 1, 2024, each considering all their corresponding subsidiaries. For instance, if the effective tax rate of a jurisdiction where subsidiaries of Cemex España operate as determined using each individual entity’s financial statements (considering certain adjustments) is below 15% on a combined basis, Cemex España would then need to pay in Spain the difference between the implied effective tax rate and the minimum tax rate of 15%, unless a Qualified Domestic Minimum Top-up Tax is in effect, in which case, any top-up tax would be paid in such jurisdiction. As of December 31, 2024, the effects of Pillar Two implementation are not material.

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

29.11)	STOCKHOLDERS’ EQUITY

Other equity reserves and subordinated notes (note 21.2)

Groups the cumulative effects of items and transactions that are, temporarily or permanently, recognized directly to stockholders’ equity, and includes the comprehensive income, which reflects certain changes in stockholders’ equity that do not result from investments by owners and distributions to owners, as well as Subordinated Notes (note 21.2).

The most significant items within “Other equity reserves and subordinated notes” during the reported periods are as follows:

Items of “Other equity reserves and subordinated notes” included in the determination of other comprehensive income:

•	Currency translation effects from the translation of foreign subsidiaries, including: a) exchange results from<br>foreign currency debt related to the acquisition of foreign subsidiaries; and b) exchange results from foreign currency related parties’ balances that are of a non-current investment class (note 29.3);<br>
•	The effective portion of the valuation and liquidation effects from derivative financial instruments under<br>cash flow hedging relationships, which are recorded temporarily in stockholders’ equity (note 29.4);
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•	Changes in fair value of other investments in strategic securities (note 29.4); and
---	---
•	Current and deferred income taxes during the period arising from items which effects are directly recognized<br>in stockholders’ equity.
---	---

Items of “Other equity reserves and subordinated notes” not included in inthe determination of other comprehensive income:

•	Effects related to controlling stockholders’ equity for changes or transactions affecting non-controlling interest stockholders in Cemex’s consolidated subsidiaries;
•	Effects attributable to controlling stockholders’ equity for financial instruments issued by consolidated<br>subsidiaries that qualify for accounting purposes as equity instruments, such as the interest expense paid on perpetual debentures;
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•	The balance of Subordinated Notes with no fixed maturity and any interest accrued thereof; and<br>
---	---
•	The cancellation of the Parent Company’s shares held by consolidated entities or held in trust for the<br>liquidation of executive long-term share-based compensation.
---	---
29.12)	EXECUTIVE SHARE-BASED COMPENSATION (note 22)
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Share-based payments to executives are defined as equity instruments when services received from employees are settled by delivering shares of the Parent Company and/or a subsidiary; or as liability instruments when Cemex commits to making cash payments to the executives upon exercise of the awards based on changes in the Parent Company and/or the subsidiary’s stock (intrinsic value). The cost of equity instruments represents their estimated fair value at the date of grant and is recognized in the operating results during the periods in which the executives release any restriction. Cemex does not grant liability instruments.

29.13)	ALLOWANCES RELATED TO EMISSIONS OF CO2

In certain countries where Cemex operates, including the EU countries and the United Kingdom, among others, mechanisms aimed at reducing carbon dioxide emissions have been established, such as the EU ETS and UK ETS, respectively, by means of which, under the outstanding rules, the relevant environmental authorities have granted annually to the entities that release CO2, such as the cement industry, certain number of carbon emission rights (“Allowances”) free of cost. Entities in turn must submit to such environmental authorities at the end of the compliance period, Allowances for a volume equivalent to the tons of CO2 released. Companies must buy additional Allowances to meet deficits between actual CO2 emissions during the compliance period and Allowances received. In general, failure to deliver the required Allowances is subject to significant monetary penalties. Entities may also dispose of any surplus of Allowances in the market. The trend is that Allowances received free of cost will be reduced over time from 2026 to zero by 2034 so that entities are compelled to act and gradually reduce the aggregate volume of emissions. EU ETS and UK ETS rules are periodically reviewed to ensure they remain effective and aligned with the EU’s and UK’s climate goals respectively.

As of December 31, 2024, according to management estimates (unaudited), Cemex held excess Allowances received for no consideration in prior years which, together with ongoing mitigation and emission offsetting initiatives, should be sufficient to allow the Company offsetting CO2 costs in the EU and the United Kingdom operations until 2028; a significant portion of the 2029 and 2030 deficit is being covered with forward purchase commitments (note 24.1).

Cemex, S.A.B. de C.V. and Subsidiaries

Notes to the Consolidated Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of U.S. Dollars)

Allowances related to emissions ofCO2 – continued

Cemex accounts for the effects associated with CO2 emission reduction mechanisms as follows:

•	Allowances received for no consideration paid are recognized at zero cost in the statement of financial<br>position.
•	Revenues received from the sale of excess Allowances are recognized in the statement of income in the period<br>in which they occur.
---	---
•	Allowances acquired to hedge expected deficits of CO2<br>emissions, i.e. for own use-only with no trading intention, are recognized as intangible assets at cost and are amortized to the cost of sales during the relevant compliance period as emissions are released.<br>
---	---
•	Cemex would accrue a provision at market value against the cost of sales if current emissions of CO2 exceed the number of emission rights on hand and the required additional Allowances have not yet been acquired in the market.
---	---
•	In addition, in certain countries, the environmental authorities impose levies per ton of CO2 or other greenhouse gases released. Such expenses are recognized as part of the cost of sales as incurred.
---	---
29.14)	CONCENTRATION OF CREDIT
---	---

Cemex sells its products primarily to distributors in the construction industry, with no specific geographic concentration within the countries in which Cemex operates. As of and for the years ended December 31, 2024, 2023 and 2022, no single customer individually accounted for a significant amount of the reported amounts of sales or in the balances of trade accounts receivable. In addition, there is no significant concentration of a specific supplier relating to the purchase of raw materials.

29.15)	NEWLY ISSUED IFRS NOT YET ADOPTED

There are several amendments or new IFRS issued but not yet effective which are under analysis and the Company’s management expects to adopt in their specific effective dates considering preliminarily without any significant effect on the Company’s financial position or operating results, and which are summarized as follows:

Standard	Main topic	Effective date
Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates – Lack of Exchangeability	The amendments require an entity to apply a consistent approach to assessing whether a currency is exchangeable into<br>another currency and when it is not, to determine the exchange rate to use and the disclosures to provide.	January 1, 2025
Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures	The amendments to IFRS 9 and IFRS 7 clarify the derecognition of financial liabilities on the settlement date, allow<br>accounting options for electronic settlements, and require additional disclosures for financial assets and liabilities with contingent terms, including Environmental, Social and Governance features.	January 1, 2026

In addition, IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1 and is effective beginning January 1, 2027, introduces new categories and subtotals in the statement of profit or loss, requires disclosure of management-defined performance measures, and establishes new requirements for the location, aggregation, and disaggregation of financial information. Cemex is analyzing these changes in formats and presentation.

Independent Auditors’ report

To the Board of Directors and Stockholders

Cemex, S.A.B. de C.V.

U.S. Dollars

Opinion

We have audited the consolidated financial statements of Cemex, S.A.B. de C.V. and subsidiaries (“the Group”), which comprise the consolidated statements of financial position as at December 31, 2024 and 2023, the consolidated statements of income, comprehensive income, changes in stockholders’ equity and cash flows for the years ended December 31, 2024, 2023 and 2022, and notes comprising material accounting policies and other explanatory information.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2024 and 2023, and its consolidated financial performance and its consolidated cash flows for the years ended December 31, 2024, 2023 and 2022 in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS Accounting Standards).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Mexico, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Evaluation of the goodwill impairment analysis for a group of cash-generating units

The key audit matter

How the matter was addressed in our audit

As discussed in notes 16.2 and 29.7 to the consolidated financial statements, the goodwill balance as of December 31, 2024 was $7,441 million, of which $6,176 million relate to the group of Cash-Generating Units in the United States of America (“the group of CGUs”). The goodwill balance represents 27% of the Group’s total consolidated assets as of December 31, 2024. Goodwill is tested for impairment upon the occurrence of internal or external indicators of impairment or at least once a year. We have identified the evaluation of the goodwill impairment analysis for the group of CGUs as a key audit matter because the estimated value in use involved a high degree of subjectivity. Specifically, the discount rate and the long-term growth rate used to calculate the value in use of the group of CGUs were challenging to test and changes to these assumptions could have had a significant impact on the value in use amount.

Our audit procedures in this area included, among others, the following: We performed sensitivity analyses over the discount rate and the long-term growth rate assumptions to assess their impact on the determination of the value in use of the group of CGUs. We evaluated the Group’s forecasted long-term growth rates for the group of CGUs by comparing the growth assumptions to publicly available data. We compared the Group’s historical cash flow forecasts to actual results to assess the Group’s ability to accurately forecast. To assess the overall reasonableness of the resulting value in use determination, we evaluated the implied multiples of earnings resulting from the value in use determination against publicly available information of multiples of earnings in market transactions. In addition, we involved our valuation specialists, who assisted in: • Evaluating the discount rate for the group of CGUs and performing sensitivity analyses by comparing with a discount rate range that was independently developed using publicly available data for comparable entities and evaluating the long-term growth rate by comparing it against publicly available data; and • Performing sensitivity analyses of the value in use of the group of CGUs using the Group’s cash flow forecasts and determining an independently developed discount rate and comparing the results of our estimates to the Group’s estimates of value in use.

Evaluation of impairment indicators related to a cement plant

The key audit matter

How the matter was addressed in our audit

As discussed in notes 15.1 and 29.7 to the consolidated financial statements, the construction in progress balance as of December 31, 2024 was $1,931 million, of which $335 million relate to the carrying amount of a cement plant in Colombia (“the Plant”). Property, machinery and equipment assets, including construction in progress, are evaluated for impairment upon the occurrence of internal or external impairment indicators. As discussed in note 25.3, the Group is involved in certain legal proceedings related to the Plant. The evaluation of identification and assessment of impairment indicators related to the Plant is considered a key audit matter. Subjective judgment is required to evaluate the identification and assessment of impairment indicators related to the Plant due to uncertainty and judgement around the expected outcome of legal proceedings and their impact on the assessment.

Our audit procedures in this area included, among others, the following: We evaluated the professional qualifications, competence, and capabilities of the in-house and external lawyers of the Group that assessed the current status and the expected outcome of legal proceedings. We involved our legal specialists with specialized skills and knowledge, who assisted in our evaluation of the Group’s external counsel’s assessment of the current status and the expected outcome of the legal proceedings and the impact on the identification and assessment of impairment indicators related to the Plant by: • Inquiring with Group’s officials responsible for the monitoring of these legal proceedings • Inspecting letters received directly from the Group’s external counsel • Inspecting the latest correspondence issued by the corresponding authorities, as applicable.

Other Information

Management is responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended December 31, 2024, to be filed with the National Banking and Securities Commission (Mexico) (Comisión Nacional Bancaria y de Valores) and the Mexican Stock Exchange (Bolsa Mexicana de Valores) (“the Annual Report”) but does not include the consolidated financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date of this auditors’ report.

Our opinion on the consolidated financial statements does not cover the other information and we will not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above when it becomes available and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

When we read the Annual Report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.

Responsibilities of Management and Those Charged with Governance for theConsolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. ‘Reasonable assurance’ is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

•

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

•

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

---

•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and<br>related disclosures made by management.
•	Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based<br>on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we<br>are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained<br>up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
---	---
•	Evaluate the overall presentation, structure and content of the consolidated financial statements, including<br>the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
---	---
•	Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial<br>information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group<br>audit. We remain solely responsible for our audit opinion.
---	---

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

KPMG Cárdenas Dosal, S.C.
<br><br><br><br><br> <br>C.P.C. Arturo González Prieto
Monterrey, N.L.
February 14, 2025

EX-2

Exhibit 2

Cemex, S.A.B. DE C.V.

Separate Financial Statements

December 31, 2024, 2023 and 2022

(With Independent Auditor’s Report Thereon)

INDEX TO THE PARENT COMPANY-ONLY FINANCIAL STATEMENTS

Cemex, S.A.B. de C.V. (Parent Company-Only):
Statements of Income for the years ended December 31, 2024, 2023 and 2022	1
Statements of Comprehensive Income (Loss) for the years ended December 31, 2024, 2023 and<br>2022	2
Statements of Financial Position as of December 31, 2024 and 2023	3
Statements of Cash Flows for the years ended December 31, 2024, 2023 and 2022	4
Statements of Changes in Stockholders’ Equity for the years ended December 31, 2024,<br>2023 and 2022	5
Notes to the Financial Statements	6
Independent Auditors’ Report – KPMG Cárdenas Dosal, S.C	41

Cemex, S.A.B. de C.V. (PARENT COMPANY-ONLY)

Statements of Income

(Millions of Pesos)

		Years ended December 31,
	Notes	2024			2023			2022
Revenues	3	$	99,586			100,892			88,866
Cost of sales	4		(64,560	)		(67,668	)		(59,077	)
Gross profit		****	35,026	****	****	33,224	****	****	29,789	****
Operating expenses	5		(22,283	)		(20,985	)		(18,040	)
Operating earnings before other income (expenses), net		****	12,743	****	****	12,239	****	****	11,749	****
Other income (expenses), net	6		682			84			(921	)
Operating earnings		****	13,425	****	****	12,323	****	****	10,828	****
Financial expense	7.1, 17		(12,474	)		(13,017	)		(11,451	)
Financial income and other items, net	7.2		2,141			(123	)		4,677
Foreign exchange result			(601	)		(716	)		(439	)
Share of profit of equity accounted investees	13		10,889			8,699			12,577
Net income before income tax		****	13,380	****	****	7,166	****	****	16,192	****
Income tax (expense) benefit	20		3,623			(3,846	)		1,149
NET INCOME		$	17,003	****	****	3,320	****	****	17,341	****

The accompanying notes are part of these Parent Company-only financial statements.

Cemex, S.A.B. de C.V. (PARENT COMPANY-ONLY)

Statements of Comprehensive Income (Loss)

(Millions of Pesos)

			Years ended Decembre 31,
	Notes		2024			2023			2022
NET INCOME			$	17,003	****	****	3,320	****	****	17,341	****
Items that will not be reclassified subsequently to the statement of income
Net actuarial gains (losses) from remeasurements of defined benefit pension plans	****	19		14			12			(33	)
Income tax benefit recognized directly in other comprehensive income	****	20.2		180			657			519
				194			669			486
Items that are or may be reclassified subsequently to the statement of income
Currency translation effects and results on equity of subsidiaries	****	25.2, 25.3		43,821			(25,392	)		(12,714	)
Results from derivative financial instruments designated as cash flow hedges	****	17.4		(2,580	)		(8	)		2,105
				41,241			(25,400	)		(10,609	)
Total items of other comprehensive income (loss) for the period				41,435			(24,731	)		(10,123	)
TOTAL COMPREHENSIVE INCOME (LOSS)			$	58,438	****	****	(21,411	)	****	7,218	****

The accompanying notes are part of these Parent Company-only financial statements.

Cemex, S.A.B. de C.V. (PARENT COMPANY-ONLY)

Statements of Financial Position

(Millions of Pesos)

			As of December 31,
	Notes		2024		2023
ASSETS
CURRENT ASSETS
Cash and cash equivalents	****	8	$	4,557		3,066
Trade accounts receivable, net	****	9		4,948		4,992
Other accounts receivable	****	10		5,701		2,739
Inventories	****	11		1,372		1,139
Accounts receivable from related parties	****	18.1		2,288		1,922
Other current assets	****	12		561		542
Total current assets				19,427		14,400
NON-CURRENT ASSET
Equity accounted investees	****	13		370,998		320,187
Other investments and non-current accounts<br>receivable	****	14		1,992		1,743
Accounts receivable from related-parties long term	****	18.1		1,304		2,362
Property, machinery and equipment, net and assets for the right-of-use, net	****	15		53,510		50,918
Deferred income tax assets	****	20.2		6,719		—
Total non-current assets				434,523		375,210
TOTAL ASSETS			$	453,950	****	389,610
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Current debt			$	76		—
Other current financial obligations	****	17.2		2,515		2,350
Trade payables	****	16.1		8,412		7,118
Current accounts payable to related parties	****	18.1		67,057		66,112
Other current liabilities	****	16.2		8,029		12,593
Total current liabilities				86,089		88,173
NON-CURRENT LIABILITIES
Non-current debt	****	17.1		109,759		98,987
Other non-current financial obligations	****	17.2		1,136		968
Pensions and other post-employment benefits	****	19		549		517
Non-current accounts payable to related<br>parties	****	18.1		35		28
Deferred income tax liabilities	****	20.2		—		336
Other non-current liabilities				2,762		954
Total non-current liabilities				114,241		101,790
TOTAL LIABILITIES			****	200,330	****	189,963
STOCKHOLDERS’ EQUITY
Common stock and additional paid-in capital	****	21.1		103,276		103,276
Other equity reserves and subordinated notes	****	21.3		65,741		26,744
Retained earnings	****	21.2		84,603		69,627
TOTAL STOCKHOLDERS’ EQUITY			****	253,620	****	199,647
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY			$	453,950	****	389,610

The accompanying notes are part of these Parent Company-only financial statements.

Cemex, S.A.B. de C.V. (PARENT COMPANY-ONLY)

Statements of Cash Flows

(Millions of Pesos)

		Years ended December 31,
	Notes	2024			2023			2022
OPERATING ACTIVITIES
Net income		$	17,003	****	****	3,320	****	****	17,341	****
Adjustments for:
Depreciation and amortization of assets	4, 5		2,378			2,466			2,373
Share of profit of equity accounted investees	13		(10,889	)		(8,699	)		(12,577	)
Financial items, net			10,934			13,856			7,213
Income taxes	20		(3,623	)		3,846			(1,149	)
Results from the sale of assets	6		136			(478	)		(1	)
Changes in working capital, excluding income taxes			17,144			2,293			9,578
Cash flow provided by operating activities		****	33,083	****	****	16,604	****	****	22,778	****
Financial expenses paid			(8,751	)		(10,503	)		(9,867	)
Income taxes paid			(3,257	)		(6,298	)		(138	)
Net cash flows provided by (used in) operating activities after interest and incometaxes		****	21,075	****	****	(197	)	****	12,773	****
INVESTING ACTIVITIES
Equity accounted investments	13		(2,769	)		5,314			73
Purchase of property, machinery, and equipment, net	15		(3,488	)		(1,029	)		(3,397	)
Non-current related parties, net			932			(642	)		—
Non-current leases with related parties			—			341			(625	)
Net cash flows provided by (used in) investing activities		****	(5,325	)	****	3,984	****	****	(3,949	)
FINANCING ACTIVITIES
Debt repayments	17.1		(100,207	)		(65,601	)		(47,113	)
Proceeds from new debt instruments	17.1		92,757			50,902			39,947
Issuances of subordinated notes	21.3		—			18,269			—
Coupons paid on subordinated notes	21.3		(2,708	)		(2,160	)		(1,096	)
Derivative financial instruments	17.4		(683	)		(3,333	)		684
Dividends paid	21.1		(1,745	)		—			—
Shares in trust for future deliveries under share-based compensation	22		(885	)		(785	)		(733	)
Other financial obligations, net	17.2		(767	)		(633	)		(853	)
Non-current leases paid to related parties			(21	)		(32	)		57
Non-current related parties, net			—			—			925
Own shares repurchase program	21.1		—			—			(2,296	)
Other financial expenses paid in cash			—			—			(250	)
Net cash flows used in financing activities		****	(14,259	)	****	(3,373	)	****	(10,728	)
Increase (decrease) in cash and cash equivalents			1,491			414			(1,904	)
Cash and cash equivalents at beginning of period			3,066			2,652			4,556
CASH AND CASH EQUIVALENTS AT END OF PERIOD	8	$	4,557	****	****	3,066	****	****	2,652	****
Changes in working capital, excluding income taxes:
Trade accounts receivable, net		$	44			(749	)		(571	)
Other accounts receivable			(2,962	)		(1,031	)		(48	)
Inventories			(233	)		(18	)		(354	)
Current related parties, net			23,565			1,487			8,160
Trade accounts payable			1,294			244			(199	)
Other current liabilities			(4,564	)		2,360			2,590
Changes in working capital, excluding income taxes		$	17,144	****	****	2,293	****	****	9,578	****

The accompanying notes are part of these Parent Company-only financial statements.

Cemex, S.A.B. de C.V. (PARENT COMPANY-ONLY)

Statements of Changes in Stockholders’ Equity

For the years ended December 31, 2024, 2023 and 2022

(Millions of Pesos)

	Notes	Common<br>stock			Additional paid-in<br>capital			Other equity reserves<br>and subordinated notes			Retained earnings			Total stockholders’<br>Equity
Balance as of December 31, 2021		$	4,164	****	****	101,408	****	****	46,921	****	****	48,966	****	****	201,459	****
Comprehensive income (loss), net	21.3		—			—			(10,123	)		17,341			7,218
Coupons on subordinated notes	21.3		—			—			(1,079	)		—			(1,079	)
Share-based compensation	22		—			—			895			—			895
Transfer of employees´ rights and obligations	21		—			—			(691	)		—			(691	)
Shares in trust for future deliveries under share-based compensation	22		—			—			(733	)		—			(733	)
Own shares purchased under share repurchase program	21.1		—			—			(2,296	)		—			(2,296	)
Balance as of December 31, 2022		$	4,164	****	****	101,408	****	****	32,894	****	****	66,307	****	****	204,773	****
Comprehensive income (loss), net	21.3		—			—			(24,731	)		3,320			(21,411	)
Issuance of subordinated notes	21.3		—			—			18,269			—			18,269
Coupons on subordinated notes	21.3		—			—			(2,228	)		—			(2,228	)
Share-based compensation	22		—			—			1,029			—			1,029
Shares in trust for future deliveries under share-based compensation	22		—			—			(785	)		—			(785	)
Cancellation of own shares by shareholders’ resolution	21.1		(2	)		(2,294	)		2,296			—			—
Balance as of December 31, 2023		$	4,162	****	****	99,114	****	****	26,744	****	****	69,627	****	****	199,647	****
Comprehensive income, net	21.3		—			—			41,435			17,003			58,438
Coupons on subordinated notes	21.3		—			—			(2,708	)		—			(2,708	)
Share-based compensation	22		—			—			1,155			—			1,155
Dividends declared	21.1		—			—			—			(2,027	)		(2,027	)
Shares in trust for future deliveries under share-based compensation	22		—			—			(885	)		—			(885	)
Balance as of December 31, 2024		$	4,162	****	****	99,114	****	****	65,741	****	****	84,603	****	****	253,620	****

The accompanying notes are part of these Parent Company-only financial statements

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

1)	DESCRIPTION OF BUSINESS

Cemex, S.A.B. de C.V., originated in 1906, is a publicly traded variable stock corporation (sociedad anónima bursátil decapital variable) organized under the laws of Mexico, and is the parent company of entities whose main activities are oriented to the construction industry, through the production, marketing, sale and distribution of cement, ready-mix concrete, aggregates, urbanization solutions and other construction materials and services. In addition, Cemex, S.A.B. de C.V. performs significant business and operational activities in Mexico.

The shares of Cemex, S.A.B. de C.V. are listed on the Mexican Stock Exchange (“MSE”) as Ordinary Participation Certificates (“CPOs”) (Certificados de Participación Ordinaria) under the symbol “CemexCPO.” Each CPO represents two series “A” shares and one series “B” share of common stock of Cemex, S.A.B. de C.V. In addition, Cemex, S.A.B. de C.V.’s shares are listed on the New York Stock Exchange (“NYSE”) as American Depositary Shares (“ADSs”) under the symbol “CX.” Each ADS represents ten CPOs.

The issuance of these separate financial statements was authorized by Cemex, S.A.B. de C.V.´s management on February 5, 2025. These separate financial statements will be submitted for approval to the annual general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. on March 25, 2025.

2)	BASIS OF PRESENTATION AND DISCLOSURE

Cemex, S.A.B. de C.V.’s separate financial statements as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022, were prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

Note 25 includes Cemex, S.A.B. de C.V., material accounting policies. Accounting policy information is material if, when considered together with other information included in an entity’s separate financial statements, it can be reasonably expected to influence decisions that the primary users of general-purpose financial statements make on the basis of those financial statements.

Separate financial statements

The parent company-only financial statements of Cemex, S.A.B. de C.V. presented herein constitute the separate financial statements of a parent company as defined by International Accounting Standard 27 - Separate Financial Statements (“IAS 27”). Separate Financial Statements reflect the Parent Company’s unconsolidated financial position, financial performance, cash flows and changes in stockholders’ equity as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022. The consolidated financial statements of Cemex, S.A.B. de C.V. and its subsidiaries were issued separately.

Presentation currency and definition of terms

During the reported periods, the presentation currency of the financial statements was the Mexican Peso. When reference is made to Pesos or “$” it means Mexican Pesos, except when specific reference is made to a different currency. The amounts in the financial statements and the accompanying notes are stated in millions, except when references are made to earnings per share and/or prices per share. When reference is made to “US$” “U.S. Dollar” or “Dollars,” it means Dollars of the United States of America (the “United States”). When reference is made to “€” or “Euros,” it means the currency in circulation in a considerable number of European Union (“EU”) countries. When reference is made to “£” or “Pounds,” it means British Pounds sterling. Previously reported Peso amounts of prior years are restated when the underlying transactions in other currencies remain unsettled using the closing exchange rates as of the reporting date. Amounts reported in Pesos should not be construed as representations that such amounts represent those Pesos or Dollars or could be converted into Pesos or Dollars at the rates indicated.

As of December 31, 2024 and 2023, translations of Pesos into Dollars and Dollars into Pesos, were determined for statement of financial position amounts using the closing exchange rate of $20.83 and $16.97, respectively, and for statements of income amounts, using the average exchange rates of $18.55, $17.63 and $20.03 Pesos per Dollar for 2024, 2023 and 2022, respectively. When the amounts between parentheses are the Peso and the Dollar, the amounts were determined by translating the Euro amount into Dollars using the closing exchange rates at year-end and then translating the Dollars into Pesos as previously described.

Statements of income

Cemex, S.A.B. de C.V. includes the line item titled “Operating earnings before other income (expenses), net” considering that it is subtotal relevant for the determination of Cemex’s “Operating EBITDA” (Operating earnings before other income (expenses), net plus depreciation and amortization) as described below in this note. The line item of “Operating earnings before other income (expenses), net” allows for easy reconciliation of the amount in these financial statements under IFRS to the non-IFRS measure of Operating EBITDA by adding back depreciation and amortization. The line item “Other income (expenses), net” consists primarily of revenues and expenses not directly related to Cemex, S.A.B. de C.V.’s main activities or which are of a non-recurring nature, including impairment losses of long-lived assets, results on disposal of assets, as well as restructuring costs, among others (note 6). Under IFRS, the inclusion of certain subtotals such as “Operating earnings before other income (expenses), net” and the display of the statement of income vary significantly by industry and company according to specific needs.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Basis of presentation and disclosure – Statements of income – continued

Cemex, S.A.B. de C.V. presents consolidated Operating EBITDA in note 17.1 (Financial instruments—Financial covenants), which may not be comparable to other similarly titled measures of other companies.

Statements of cash flows

During 2024, 2023 and 2022, the statements of cash flows exclude the following transactions that did not represent sources or uses of cash:

Operating activities – Changes in working capital:

•	In 2024, Cemex Operaciones Mexico, S.A. de C.V. (“COM”) executed an equity distribution to Cemex,<br>S.A.B. de C.V., which extinguished part of the corresponding accounts payable balance with COM for an amount of $27,253 (note 18.1). The changes in working capital does not include this effect.

Financing activities:

•	In 2024, 2023 and 2022, the increases in other financing obligations in connection with lease contracts<br>negotiated during those years for $1,044, $260 and $746, respectively (note 17.2);
•	In 2024, the portion of dividends declared during the year that is still payable as of December 31, 2024<br>for $282 (notes 21.1 and 21.2); and
---	---

Investing activities:

•	In 2024, 2023 and 2022, in connection with the leases negotiated during the year, the increases in assets for<br>the right-of-use related to lease contracts for $1,044, $260 and $746, respectively (note 15.2).
•	In 2024, in connection with the equity distribution mentioned above, the statement of cash flows excludes the<br>reduction in investments accounted under the equity method of the Parent Company in COM of $27,253 (note 13).
---	---

Newly issued IFRSadopted in 2024

Beginning January 1, 2024, Cemex, S.A.B de C.V, adopted IFRS amendments that did not result in any material impact on its results of operation or financial position, and which are explained as follows:

Standard	Main topic
Amendments to IAS 7, Statement of Cash Flows and IFRS 7, Financial Instruments: Disclosures<br>– Supplier Finance Arrangements	The amendments require disclosure of supplier finance arrangements and their effects on an entity’s liabilities, cash<br>flows and exposure to liquidity risk. As a result of the adoption of the amendments to IAS 7 and IFRS 7, the Parent Company provides new disclosures for trade accounts payable under supplier finance arrangements in note 16.1.
Amendment to IAS 1 – Presentation of Financial Statement	Clarifies the requirements to be applied in classifying liabilities as current and<br>non-current for non-current liabilities that are subject to covenants within 12 months after the reporting period. The adoption of the amendments to IAS 1 did not impact<br>the Parent Company financial statements.
Amendments to IFRS 16, Leases – Lease Liability in a Sale and Leaseback	The amendments mention that on initial recognition, the seller-lessee would include variable payments when it measures a<br>lease liability arising from a sale-and-leaseback transaction. In addition, the amendments establish that the seller-lessee could not recognize gains or losses relating<br>to the right of use it retains after initial recognition. There are no sale and leaseback transactions during the reported periods.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

3)	REVENUES

Cemex, S.A.B. de C.V.’s revenues are related to its operational activities, mainly originated from the sale and distribution of cement, ready-mix concrete, aggregates and other construction materials and services, including urbanization solutions, as well as to management and other activities, and are recognized at a point in time or over time in the amount of the price, before tax on sales, expected to be received for goods and services supplied due to ordinary activities, as contractual performance obligations are fulfilled, and control of goods and services passes to the customer. Cemex, S.A.B. de C.V. grants credit for terms ranging generally from 15 to 90 days depending on the type and risk profile of each customer. For the years ended December 31, 2024, 2023 and 2022, revenues were as follows:

	2024
From the sale of goods related to main activities	$	89,929	91,303	79,512
Rental income ^1^		7,063	7,126	6,165
License fees and administrative services		2,594	2,463	3,189
	$	99,586	100,892	88,866
1	For the years ended December 31, 2024, 2023 and 2022, includes $6,928, $6,676 and $5,787,<br>respectively, in relation to operating leases with related parties (note 15.2).
---	---

Under IFRS 15, certain promotions and/or discounts and rebates offered as part of the sale transaction, result in that a portion of the transaction price being allocated to such commercial incentives as separate performance obligations, recognized as contract liabilities with customers, and deferred to the statement of operations during the period in which the incentive is exercised by the customer or until it expires.

For the years ended December 31, 2024, 2023 and 2022 changes in the balance of contract liabilities with customers were as follows:

	2024
Opening balance of contract liabilities with customers	$	430		405		364
Increase during the period for new transactions		3,366		2,083		1,643
Decrease during the period for exercise or expiration of incentives		(3,342	)	(2,058	)	(1,602	)
Closing balance of contract liabilities with customers	$	454		430		405

4)	COST OF SALES

The detail of Cemex, S.A.B. de C.V.’s cost of sales by nature for the years 2024, 2023 and 2022 is as follows:

	2024
Raw materials and goods for resale	$	53,994	57,527	50,904
Electricity, fuels and other services		4,789	4,394	3,822
Depreciation and amortization		1,685	1,856	1,794
Payroll		1,242	1,095	880
Professional services related to production		920	721	662
Transportation costs		912	799	749
Other production costs and changes in inventory		614	931	44
Maintenance, repairs and supplies		404	345	222
	$	64,560	67,668	59,077

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

5)	OPERATING EXPENSES

Administrative and selling expenses represent the expenses associated with personnel, services, and equipment, including depreciation and amortization, related to managerial and back-office activities of the Company’s management, as well as selling activities, respectively. Distribution and logistics expenses refer to expenses of storage at points of sales, including depreciation and amortization, as well as freight expenses of finished products between plants and points of sale and freight expenses between points of sales and the customers’ facilities.

Cemex, S.A.B. de C.V.’s operating expenses by function during 2024, 2023 and 2022, are as follows:

	2024
Administrative expenses	$	7,013	6,404	5,824
Selling expenses		2,712	2,270	2,016
Administrative and selling expenses		9,725	8,674	7,840
Distribution and logistics expenses		12,558	12,311	10,200
Operating expenses	$	22,283	20,985	18,040

Cemex, S.A.B. de C.V.’s operating expenses by nature during 2024, 2023 and 2022, are as follows:

	2024
Transportation costs	$	11,173	10,926	8,797
Payroll		4,645	4,653	3,709
Professional legal, accounting and miscellaneous consulting services		4,989	4,427	4,371
Depreciation and amortization		693	610	579
Maintenance, repairs and supplies		157	26	13
Insurance and sureties		119	128	161
Public services and office supplies		98	69	41
Rental expenses		10	84	52
Expected credit losses on trade accounts receivable		43	1	33
Other operating expenses		356	61	284
	$	22,283	20,985	18,040
6)	OTHER INCOME (EXPENSES), NET
---	---

The detail of the caption “Other income (expenses), net” in 2024, 2023 and 2022 is as follows:

	2024
Provision related to electricity charges<br>^1^	$	924		(260	)	(667	)
Results from the sale of assets		(136	)	478		1
Miscellaneous fees and others		(106	)	(99	)	86
Restructuring costs ^2^		—		(35	)	(341	)
	$	682		84		(921	)
1	Refers to a provision recognized in 2023 and 2022 as a result of a change in legislation that may<br>require additional payment in relation to electricity charges. In 2024 this provision was canceled.
---	---
2	Refers mainly to non-recurrent expenses related to severance<br>payments and the definite closing of operating sites.
---	---
7)	FINANCIAL ITEMS
---	---
7.1)	FINANCIAL EXPENSE
---	---

Financial expenses of $12,474 in 2024, $13,017 in 2023 and $11,451 in 2022, represent the interest on Cemex, S.A.B. de C.V. debt instruments measured using the effective interest rate and, in 2024, 2023 and 2022 includes $116, $108 and $120, respectively, of interest expense related to lease contracts (notes 15.2 and 17.2).

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

7.2)	FINANCIAL INCOME AND OTHER ITEMS, NET

For the years ended December 31, 2024, 2023 and 2022, the detail of “Financial income and other items, net” was as follows:

	2024
Financial income	$	2,214		1,013		2,590
Results from financial instruments, net (notes 14 and 17.4)		(64	)	(1,122	)	2,041
Net interest cost of defined benefits liabilities (note 19)		(38	)	(49	)	(12	)
Others		29		35		58
	$	2,141		(123	)	4,677
8)	CASH AND CASH EQUIVALENTS
---	---

As of December 31, 2024 and 2023, cash and cash equivalents consisted of:

	2024
Cash and bank accounts	$	316	811
Fixed-income securities and other cash equivalents^^		4,241	2,255
	$	4,557	3,066
9)	TRADE ACCOUNTS RECEIVABLE, NET
---	---

As of December 31, 2024 and 2023, trade accounts receivable, net consisted of:

	2024
Trade accounts receivable	$	5,195		5,209
Allowances for expected credit losses		(247	)	(217	)
	$	4,948		4,992

As of December 31, 2024 and 2023, balances include accounts receivable of $2,325 and $2,387, respectively, sold under outstanding securitization programs and/or factoring programs with recourse established in Mexico, in which Cemex, S.A.B. de C.V., effectively does not surrender full control or the majority of risks and rewards associated with the trade accounts receivable sold. Therefore, the receivables sold were not removed from the statement of financial position and the amounts funded to the Parent Company of $1,782, in both years, were recognized within the line item “Other financial obligations” (note 17.2).

The discount granted to the acquirers of the trade receivables is recorded as a financial expense and amounted to $240 in 2024, $256 in 2023 and $189 in 2022. These securitization and factoring programs mentioned above are usually negotiated for periods of one to two years and are usually renewed at their maturity.

Allowances for doubtful accounts are determined and recognized upon origination of the trade accounts receivable based on an Expected Credit Loss (“ECL”) model. For the years ended December 31, 2024, 2023 and 2022, the ECL expense on accounts receivable was $43, $1 and $33, respectively, charged to the statements of income as part of operating expense. Under this ECL model, Cemex, S.A.B. de C.V. segments its accounts receivable in a matrix by type of client or homogeneous credit risk and days past due and determines for each segment an average rate of ECL, considering actual credit loss experience over the last 24 months and analyses of future delinquency, which is applied to the balance of the accounts receivable. Changes in the ECL allowance in 2024, 2023 and 2022 were as follows:

	2024
Allowances for expected credit losses at beginning of period	$	217		274		255
Charged to selling expenses		43		1		33
Deductions		(13	)	(58	)	(14	)
Allowances for expected credit losses at end of period	$	247		217		274

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

10)	OTHER ACCOUNTS RECEIVABLE

As of December 31, 2024 and 2023, the caption other accounts receivable included the following:

	2024
Other refundable taxes	$	3,082	1,654
Current portion of assets from valuation of derivative financial instruments (note 17.4)		1,739	360
Non-trade accounts receivable^^^1^		880	725
	$	5,701	2,739
1	Non-trade accounts receivable are mainly attributable to the<br>sale of assets.
---	---
11)	INVENTORIES
---	---

Inventories are valued using the lower cost or net realizable value. The weighted average cost of inventories includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. Inventory balances are subject to impairment. When an impairment situation arises, the inventory balance is adjusted to its net realizable value against “Cost of sales.” Advances to suppliers of inventory are presented as part of other current assets.

As of December 31, 2024 and 2023, the balances of inventories were summarized as follows:

	2024
Finished goods	$	910	798
Materials and spare parts		102	52
Inventory in transit		360	289
	$	1,372	1,139

For the years ended December 31, 2024, 2023 and 2022, Cemex, S.A.B. de C.V. recognized in the caption of “Cost of sales” in the statements of income, inventory obsolescence of $7, $8 and $9, respectively.

12)	OTHER CURRENT ASSETS

As of December 31, 2024 and 2023, other current assets consisted of:

	2024
Advance payments	$	340	306
Investment available for sale		221	236
	$	561	542

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

13)	EQUITY ACCOUNTED INVESTEES

As of December 31, 2024 and 2023 equity method accounted investees are detailed as follows:

Subsidiaries:				2024
Cemex Innovation Holding Ltd.	Holding	Switzerland	99.6	$	72,862		58,329
Cemex Operaciones México, S.A. de C.V.	Cement	Mexico	99.9		268,530		241,978
Cemex Concretos, S.A. de C.V.	Ready-mix	Mexico	95.9		13,535		7,132
Other companies	—	—	—		8,001		5,866
Associates:
Camcem, S.A. de C.V.	Cement	Mexico	40.1		7,988		6,702
Other companies	—	—	—		82		180
				$	370,998		320,187
Out of which:
Acquisition cost				$	438,179		462,664
Equity method recognition				$	(67,181	)	(142,477	)

In July 2024, Cemex S.A.B. de C.V. received an equity distribution of $27,253 from COM (note 2). Additionally, in May 2024, Cemex S.A.B. de C.V. received dividends for $106 from Camcem, S.A. de C.V. (“Camcem”).

In July 2023, Cemex Concretos, S.A. de C.V. declared dividends in the amount of $3,700, of which, $3,547 was received by the Parent Company. In addition, in November 2023, Cemex S.A.B. de C.V. received dividends for an aggregate amount of $1,767 from its subsidiaries Cemex Internacional, S.A. de C.V., Cemex Agencia, S.A. de C.V., Pro Ambiente, S.A. de C.V., Proveedora Mexicana de Materiales, S.A. de C.V and other companies.

The combined condensed financial information presented below refers to equity accounted investees in which Cemex, S.A.B. de C.V. holds significant influence. For information regarding the financial position and statement of income of Cemex’s subsidiaries, reference is made to the consolidated financial statements of Cemex.

The combined condensed statements of financial position information of associates as of December 31, 2024 and 2023 are set forth below:

	2024
Current assets	$	27,225	22,383
Non-current assets		35,198	25,744
Total assets		62,423	48,127
Current liabilities		6,341	4,674
Non-current liabilities		15,924	13,143
Total liabilities		22,265	17,817
Total net assets	$	40,158	30,310

Out of the total assets amounts in 2024 and 2023 presented in the table above, Camcem, which is the holding company of Grupo Cementos de Chihuahua, S.A.B. de C.V., represented 98% in both years. In addition, out of total liabilities, Camcem represented 97% in 2024 and 80% in 2023.

Combined selected information of the statements of income of associates in 2024, 2023 and 2022 is set forth below:

	2024
Revenues	$	23,524	24,372	23,870
Operating earnings		6,973	6,717	5,442
Income before income tax		4,873	4,566	3,282
Net income		2,824	2,658	1,937

Out of net income in 2024, 2023 and 2022 from the table above, amounts that Cemex participates, and which reflect the share in associates in the Company’s statements of income, Camcem represented 99%, 101% and 100%, respectively.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

14)	OTHER INVESTMENTS AND NON-CURRENT ACCOUNTS RECEIVABLE

As of December 31, 2024 and 2023, other investments and non-current accounts receivable included the following:

	2024
Non-current portion of assets from valuation of derivative<br>financial instruments (note 17.4)	$	1,191	1,073
Extraction rights		109	109
Investments in strategic equity securities		65	40
Investments at fair value with changes recognized through the statement of operations		7	6
Other non-current investments		620	515
	$	1,992	1,743
15)	PROPERTY, MACHINERY AND EQUIPMENT, NET AND ASSETS FOR THE RIGHT-OF-USE, NET
---	---

As of December 31, 2024 and 2023, property, machinery and equipment, net and assets for the right-of-use, net were summarized as follows:

	2024
Property, machinery and equipment, net	$	52,281	50,000
Assets for the<br>right-of-use, net		1,229	918
	$	53,510	50,918
15.1)	PROPERTY, MACHINERY AND EQUIPMENT, NET
---	---

As of December 31, 2024, the average useful lives by category of fixed assets, which are reviewed at each reporting date, were as follows:

	Years
Administrative buildings		35
Industrial buildings		20
Machinery and equipment in plant		25
Ready-mix trucks and motor vehicles		10
Office equipment and other assets		5

As of December 31, 2024, to the best of its knowledge, management considers that its commitments and actions in relation to climate change do not currently affect the estimated average useful lives of its property, machinery and equipment described above.

As of December 31, 2024 and 2023, the property, machinery and equipment, net balances and changes for the period for such caption, are as following:

	2024
	Land andquarries			Building			Machinery andequipment^^			Investmentsin progress^1^			Total
Cost at beginning of period	$	16,358			9,284			39,333			11,533			76,508
Accumulated depreciation and depletion		(1,501	)		(3,607	)		(21,400	)		—			(26,508	)
Net book value at beginning of period		14,857			5,677			17,933			11,533			50,000
Capital expenditures		50			1,713			6,355			3,714			11,832
Stripping costs		42			—			—			—			42
Disposals and reclassification		—			(77	)		(464	)		(7,981	)		(8,522	)
Depreciation and depletion for the period		(145	)		(264	)		(1,384	)		—			(1,793	)
Foreign currency translation effects		577			145			—			—			722
Cost at end of period		17,027			11,065			45,224			7,266			80,582
Accumulated depreciation and depletion		(1,646	)		(3,871	)		(22,784	)		—			(28,301	)
Net book value at end of period	$	15,381			7,194			22,440			7,266			52,281

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Property, machinery and equipment, net - continued

	2023
	Land and<br>quarries			Building			Machinery andequipment^^			Investmentsin progress^1^			Total
Cost at beginning of period	$	16,234			8,810			37,730			11,881			74,655
Accumulated depreciation and depletion		(1,353	)		(3,352	)		(19,735	)		—			(24,440	)
Net book value at beginning of period		14,881			5,458			17,995			11,881			50,215
Capital expenditures		—			451			2,402			2,573			5,426
Stripping costs		72			—			—			—			72
Disposals and reclassification		(225	)		(46	)		(799	)		(2,921	)		(3,991	)
Depreciation and depletion for the period		(148	)		(255	)		(1,665	)		—			(2,068	)
Foreign currency translation effects		277			69			—			—			346
Cost at end of period		16,358			9,284			39,333			11,533			76,508
Accumulated depreciation and depletion		(1,501	)		(3,607	)		(21,400	)		—			(26,508	)
Net book value at end of period	$	14,857			5,677			17,933			11,533			50,000
1	As of December 31, 2024, and 2023, includes costs related to the construction of the second kiln<br>in the Tepeaca cement plant in the Mexican state of Puebla and other investment projects for $1,441 and $7,879, respectively. The construction of this kiln is intended to increase the installed capacity of the plant to four million tons per year.<br>
---	---
15.2)	ASSETS FOR THERIGHT-OF-USE, NET
---	---

As of December 31, 2024 and 2023, assets for the right-of-use, net and the changes in this caption, were as follows:

	2024
	Land			Buildings			Machinery andequipment^^			Others			Total
Assets for the<br>right-of-use at beginning of period	$	268			392			2,410			271			3,341
Accumulated depreciation		(123	)		(234	)		(1,854	)		(212	)		(2,423	)
Net book value at beginning of period		145			158			556			59			918
Additions of new leases		15			47			724			258			1,044
Cancellations and remeasurements, net		1			(3	)		(146	)		—			(148	)
Depreciation for the period		(37	)		(56	)		(373	)		(119	)		(585	)
Assets for the<br>right-of-use at end of period		284			436			2,988			529			4,237
Accumulated depreciation		(160	)		(290	)		(2,227	)		(331	)		(3,008	)
Net book value at end of period	$	124			146			761			198			1,229
	2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
	Land andquarries			Buildings			Machinery andequipment^^			Others			Total
Assets for the<br>right-of-use at beginning of period	$	205			401			2,332			271			3,209
Accumulated depreciation		(89	)		(182	)		(1,658	)		(96	)		(2,025	)
Net book value at beginning of period		116			219			674			175			1,184
Additions of new leases		62			58			140			—			260
Cancellations and remeasurements, net		1			(67	)		(62	)		—			(128	)
Depreciation for the period		(34	)		(52	)		(196	)		(116	)		(398	)
Assets for the<br>right-of-use at end of period		268			392			2,410			271			3,341
Accumulated depreciation		(123	)		(234	)		(1,854	)		(212	)		(2,423	)
Net book value at end of period	$	145			158			556			59			918

For the years ended December 31, 2024, 2023 and 2022, the combined rental expense related with short-term leases, low-value leases and variable lease payments were $43, $56 and $48, respectively, and were recognized in cost of sales and operating expenses, as applicable.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

16)	TRADE ACCOUNT PAYABLES AND OTHER CURRENT LIABILITIES
16.1)	TRADE ACCOUNT PAYABLES
---	---

Supplier Finance Agreements

To enhance its supplier’s liquidity needs, Cemex, S.A.B. de C.V. has acted as mediator with financial institutions to establish productive supply chain programs, by means of which, any supplier registered under the program may elect to sell its account receivable from Cemex, S.A.B. de C.V. to the financial institution before the receivable’s agreed payment date. Any financial cost under these programs is assumed directly by Cemex’s suppliers. The accounts payable sold by the Parent Company’s suppliers to these financial institutions are settled by Cemex, S.A.B. de C.V. at their original agreed due dates without extending the payment date further. As of December 31, 2024 and 2023, the balances of trade payables in the statements of financial position include $8,360 in 2024 and $8,348 in 2023 of trade payables outstanding under these productive supply chain programs with an average payment term of 90 days. These programs do not involve any additional cash flow risk to the Parent Company.

16.2)	OTHER CURRENT LIABILITIES

As of December 31, 2024 and 2023, other current liabilities are shown below:

	2024
Provisions ^1^	$	978	3,930
Advance from customers		2,612	3,253
Accounts payable and accrued expenses		983	2,426
Interest payable		1,734	1,388
Taxes payable		1,268	1,166
Contract liabilities with customers (note 3)		454	430
	$	8,029	12,593
1	The caption refers primarily to services, insurance and fees.
---	---
17)	FINANCIAL INSTRUMENTS
---	---
17.1)	CURRENT AND NON-CURRENT DEBT
---	---

Cemex, S.A.B. de C.V.’s debt summarized as of December 31, 2024 and 2023, by interest rates and currencies were as follows:

	2024								2023
	Current			Non-current			Total^1^		Current		Non-current			Total^1^
Floating rate debt	$	—			26,774			26,774	$	—		30,614			30,614
Fixed rate debt		76			82,985			83,061		—		68,373			68,373
	$	76			109,759			109,835	$	—		98,987			98,987
Effective rate^2^
Floating rate		—			6.0	%				—		7.2	%
Fixed rate		0.0	%		4.6	%				—		5.1	%
	2024									2023
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
Currency	Current		Non-current		Total		Effective rate^2^			Current		Non-current		Total		Effective rate^2^
Dollars	$	76		73,998		74,074		4.9	%	$	—		70,249		70,249		5.4	%
Euros		—		18,216		18,216		3.9	%		—		16,796		16,796		4.2	%
Pesos		—		17,545		17,545		11.2	%		—		11,942		11,942		12.0	%
	$	76		109,759		109,835				$	—		98,987		98,987
1	As of December 31, 2024 and 2023, cumulative discounts, fees and other direct costs incurred in<br>Cemex, S.A.B. de C.V.’s outstanding debt borrowings and the issuance of notes payable for $614 (US$29) and $779 (US$46), respectively, are presented reducing the related debt balances and are amortized to financial expense over the maturity of<br>the related debt instruments under the effective interest rate method.
---	---
2	In 2024 and 2023, represents the weighted-average effective interest rate of the related debt<br>agreements determined at the end of each period.
---	---

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Debt – continued

As of December 31, 2024 and 2023, Cemex, S.A.B. de C.V.’s debt summarized by type of instrument, was as follows:

2024	Current			2023	Current
Bank loans				Bank loans
Lines of credit, 2025		76	—	Lines of credit, 2024 to 2025		—	—
Syndicated loans, 2026 to 2029		—	36,064	Syndicated loans, 2025 to 2028		—	42,014
		76	36,064			—	42,014
Notes payable				Notes payable
Medium-term notes, 2025 to 2031		—	73,695	Medium-term notes, 2026 to 2031		—	56,973
		—	73,695			—	56,973
Total bank loans and notes payable		76	109,759	Total bank loans and notes<br>payable		—	98,987
Current maturities		—	—	Current maturities		—	—
	$	76	109,759		$	—	98,987

Changes in debt for the years ended December 31, 2024, 2023 and 2022 were as follows:

	2024
Debt at beginning of year	$	98,987		128,027		141,592
Proceeds from new debt instruments		92,757		50,902		39,947
Debt repayments		(100,207	)	(65,601	)	(47,113	)
Foreign currency translation and accretion effects		18,298		(14,341	)	(6,399	)
Debt at end of year	$	109,835		98,987		128,027

As a result of debt transactions incurred to issue, refinance, replace and/or repurchase existing debt instruments, as applicable, the Parent Company issuance costs, premiums and/or redemption costs (jointly the “Transactional Costs”) for a total of $451 in 2024, $1,207 in 2023 and $932 in 2022. Of which, $193 in 2024, $275 in 2023 and $89 in 2022, related to new debt instruments or the extension of existing debt, adjusted the carrying amount of the related debt and are amortized over the remaining term of each instrument while $932 in 2023 and $843 in 2022, associated with the extinguished portion of the related debt, were recognized in the caption “Financial income and other items, net.” In addition, Transactional Costs pending for amortization related to extinguished debt of $41 in 2024, $199 in 2023 and $116 in 2022 were recognized within “Financial income and other items, net.”

As of December 31, 2024 and 2023, non-current notes payable for $73,695 and $56,973, respectively, are detailed as follows:

Description ^1^								2024
CEBURES 2023 variable rate ^3^	05/Oct/23	Pesos	3,000	TIIE+.45	%	01/Oct/26		$	3,000	1,000
CEBURES 2023 fixed rate ^3^	05/Oct/23	Pesos	8,500	11.48	%	26/Sep/30			8,560	4,961
July 2031 Notes ^4^	12/Jan/21	Dollar	1,750	3.875	%	11/Jul/31	)		22,993	18,706
September 2030 Notes ^4^	17/Sep/20	Dollar	1,000	5.20	%	17/Sep/30	)		14,895	12,119
November 2029 Notes ^4^	19/Nov/19	Dollar	1,000	5.45	%	19/Nov/29	)		15,627	12,710
March 2026 Notes	19/Mar/19	Euro	400	3.125	%	19/Mar/26			8,620	7,477
								$	73,695	56,973

All values are in US Dollars.

1	As of December 31, 2024, these issuances are fully and unconditionally guaranteed by Cemex Concretos,<br>S.A. de C.V., COM, Cemex Innovation Holding Ltd. and Cemex Corp.
2	Presented net of all notes repurchased and held by Cemex, S.A.B. de C.V.’s subsidiaries. As of<br>December 31, 2024, all repurchased notes have been canceled.
---	---
3	On February 16, 2024, Cemex, S.A.B. de C.V. reopened and placed and additional principal amount<br>of $5,500 of its sustainability-linked long-term notes (Certificados Bursátiles de Largo Plazo or the “2023 CEBURES”), issued in 2023. The reopening closed on February 20, 2024 and consisted of two tranches: the first of<br>$2,000 at a floating annual interest rate of TIIE 28 plus 0.45%, and the second of $3,500 at a fixed annual interest rate of 11.48%. In connection with these issuances in 2024 and 2023, Cemex, S.A.B. de C.V. negotiated interest rate and currency<br>derivative instruments to synthetically change the financial risks profile from the Peso to the Dollar (note 17.4).
---	---
4	During 2022, pursuant to tender offers and other market transactions, Cemex, S.A.B de C.V. partially<br>repurchased several series of its notes for an aggregate notional amount of US$1,172. The difference between the amount paid for such notes and the notional amount redeemed, net of transactional costs, generated a repurchase gain of US$104 ($2,132),<br>recognized in the statement of operations for the year in the line item “Financial income and other item, net.”
---	---

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Debt – continued

Non-current debt maturities as of December 31, 2024, were as follows:

	2024
2026	$	16,914
2027		14,426
2028		14,426
2029		17,546
2030 and thereafter		46,447
	$	109,759

As of December 31, 2024, Cemex, S.A.B. de C.V. had the following lines of credit, of which, the only committed portion refers to the revolving credit facility under the 2023 Credit Agreement, at annual interest rates ranging between 5.25% and 6.35%, depending on the negotiated currency:

Millions of U.S. Dollars	Lines of credit
Other lines of credit from banks<br>^1^	US$	988	988
Revolving credit facility 2023 Credit Agreement		2,311	2,311
	US$	3,299	3,299
1	Uncommitted amounts subject to the banks’ availability.
---	---

Sustainability-linked and green financing

As of December 31, 2024 and 2023, Cemex, S.A.B. de C.V. debt of $109,835 and $98,987, included balances outstanding denominated in Dollars, Euros and Pesos under either its 2021 Sustainability-linked Financing Framework (the “2021 SLFF”) or its 2023 Sustainability-linked Financing Framework (the “2023 SLFF, and together with the 2021 SLFF, the (“SLFFs”) of $95,756 in 2024 and $71,732 in 2023, representing the Company’s debt that is linked and aligned to Cemex’s strategy of CO2 emissions reduction and its ultimate vision of a carbon-neutral economy.

As of December 31, 2024, the balance of debt under the SLFFs includes $84,195 of debt arising from bank loans, including the 2023 Credit Agreement described below. Under the 2023 Credit Agreement, the annual performance in respect to the metrics referenced in the 2023 SLFF may result in a total adjustment of the interest rate margin of plus or minus 5 bps^1^, in line with other sustainability-linked facilities from investment-grade rated borrowers.

The remainder of the debt balance under the SLFFs relates to the 2023 CEBURES. Of these, $3,000 or the variable rate leg is linked exclusively to one metric of the 2023 SLFF and may result in an increase of 20 bps in the nominal value at redemption. The remaining $8,560, or the fixed rate leg is also linked to only one metric of the 2023 SLFF and may result in a per annum increase of 25 bps to the interest rate applicable to the last four semi-annual coupon payments.

On November 8, 2021, Cemex, S.A.B. de C.V. closed a Dollar-denominated US$3,250 syndicated sustainability-linked credit agreement (the “2021 Credit Agreement”), which proceeds were mainly used to fully repay its previous syndicated facilities agreement entered in 2017. The 2021 Credit Agreement was the first debt instrument issued by Cemex under the 2021 SLFF. Additionally, Cemex’s securitization programs (notes 9 and 17.2) are linked to the 2021 SLFFs, utilizing one or more metrics and may result in an annual fee payment equivalent to up to 5 bps of the total facilities amount.

2023 Credit Agreement and 2021 Credit Agreement

On October 30, 2023, Cemex refinanced its 2021 Credit Agreement (as described below), extending the maturity to 2028. The refinanced 2021 Credit Agreement (the “2023 Credit Agreement”) comprises a US$1,000, 5-year amortizing term loan and a US$2,000, 5-year committed revolving credit facility (“RCF”). The 2023 Credit Agreement represents a reduction of US$500 in the term loan and an increase of US$250 in the revolver of the 2021 Credit Agreement. The 2023 Credit Agreement, denominated exclusively in Dollars, maintained its previous interest rate margin and financial covenants, consistent with an investment-grade capital structure, which provide for a maximum ratio of Consolidated Net Debt (as defined below) to Consolidated EBITDA (as defined below) (“Consolidated Leverage Ratio”) of 3.75 times throughout the life of the loan and a minimum ratio of Consolidated EBITDA to interest expense (“Consolidated Coverage Ratio”) of 2.75 times. As of December 31, 2024 and 2023, the debt outstanding under the 2023 Credit Agreement amounted to $20,830 (US$1,000) and $27,152 (US$1,600), which included amounts owed under the RCF of $10,182 (US$600) in 2023.

The balance of debt under the 2023 Credit Agreement, in which debtor is Cemex, S.A.B. de C.V., is the borrower, is guaranteed by Cemex Concretos, S.A. de C.V., COM, Cemex Innovation Holding Ltd. and Cemex Corp. This guarantor structure is applicable in all senior notes of the Parent Company and the previous 2021 Credit Agreement.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Debt – continued

The 2023 Credit Agreement contains ongoing representations, warranties, affirmative and negative covenants, including financial covenants. As of December 31, 2024 and 2023, The Parent Company was in compliance with all covenants contained in the 2023 Credit Agreement. Cemex, S.A.B. de C.V. cannot assure that in the future it will be able to comply with all such covenants, including any financial covenants, which non-compliance, if not remedied, could result in an event of default, which could materially and adversely affect Cemex, S.A.B. de C.V. business and financial condition.

1	The Secured Overnight Financing Rate (“SOFR”) is a measure of the cost of borrowing cash<br>overnight collateralized by Treasury securities. As of December 31, 2024 and 2023, SOFR rate was 4.49% and 5.38%, respectively. The contraction “bps” means basis points. One hundred basis points equal 1%.
2	The Tasa de Interés Interbancaria de Equilibrio (“TIIE”) is the variable rate<br>used for debt denominated in Pesos. As of December 31, 2024 and 2023, the 28-day TIIE rate was 10.25% and 11.50%, respectively.
---	---

Financial Covenants

Under the 2023 Credit Agreement and the 2021 Credit Agreement, as applicable depending on the reported period, at the end of each quarter for each period of four consecutive quarters, Cemex, S.A.B. de C.V. must comply with a maximum Consolidated Leverage Ratio of 3.75 times and a minimum Consolidated Coverage Ratio of 2.75 times throughout the life of the corresponding credit agreement. These financial ratios are calculated using the consolidated amounts under the terms of the agreement.

Consolidated Leverage Ratio

•

Under the 2023 Credit Agreement and the 2021 Credit Agreement, the ratio is calculated by dividing “Consolidated Net Debt” by “Consolidated EBITDA” for the last twelve months as of the calculation date. Consolidated Net Debt equals debt, as reported in the statement of financial position, net of cash and cash equivalents, excluding any existing or future obligations under any securitization program, and any subordinated debt of Cemex, S.A.B. de C.V., adjusted for net mark-to-market of all derivative instruments, as applicable, among other adjustments including in relation for business acquisitions or disposals.

Consolidated Coverage Ratio

•	Under the 2023 Credit Agreement and the 2021 Credit Agreement, the ratio is calculated by dividing<br>Consolidated EBITDA by the financial expense for the last twelve months as of the calculation date.

As of December 31, 2024, 2023 and 2022, under the 2023 Credit Agreement and the 2021 Credit Agreement, as applicable, the main consolidated financial ratios were as follows:

Consolidated financial ratios		Refers to the compliance limits and calculations that were<br>effective on each date
		2024		2023		2022
Leverage ratio	Limit		<=3.75		<=3.75		<=3.75
	Calculation		1.81		2.06		2.84
Coverage ratio^^	Limit		>=2.75		>=2.75		>=2.75
	Calculation		7.26		7.91		6.27

As a result of noncompliance with the agreed upon financial ratios or, in such event, the absence of a waiver of compliance or a negotiation thereof, after certain procedures followed upon Cemex, S.A.B de C.V.’s lenders’ request, they may call for the acceleration of payments due under the 2023 Credit Agreement. That scenario would have a material adverse effect on Cemex, S.A.B. de C.V.’s operating results, liquidity or financial position. Cemex, S.A.B. de C.V.’s ability to comply with these ratios may be affected by economic conditions, volatility in foreign exchange rates, as well as by overall conditions in the financial and capital markets or other factors.

Cemex, S.A.B. de C.V. will classify all of its non-current debt as current debt if: 1) as of any measurement date Cemex, S.A.B. de C.V. fails to comply with any covenants that would cause a default, including the aforementioned financial ratios; and/or 2) the cross-default clause that is part of the 2023 Credit Agreement is triggered by the provisions contained therein. Moreover, although Cemex, S.A.B. de C.V. will not classify its non-current debt as current debt in the following events, Cemex, S.A.B. de C.V. will disclose the fact if: (i) as of any date prior to a subsequent measurement date Cemex, S.A.B. de C.V. expects not to be in compliance with such financial ratios in the absence of: a) amendments and/or waivers covering the next succeeding 12 months; b) high probability that the violation will be cured during any agreed upon remediation period and be sustained for the next succeeding 12 months; and/or c) an agreement to refinance the relevant debt on a long-term basis.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

17.2)	OTHER FINANCIAL OBLIGATIONS

Other financial obligations in the statement of financial position of Cemex, S.A.B. de C.V. as of December 31, 2024 and 2023, are as follows:

	2024						2023
	Current		Non-current		Total		Current		Non-current		Total
I. Leases	$	733		1,136		1,869	$	568		968		1,536
II. Liabilities secured with accounts receivable		1,782		—		1,782		1,782		—		1,782
	$	2,515		1,136		3,651	$	2,350		968		3,318
I.	Leases (7.1, 15.2, 25.1, 25.3 and 25.5)
---	---

Cemex, S.A.B. de C.V. has several operating and administrative assets under lease contracts (note 15.2). The Parent Company applies the recognition exemption for short-term leases and leases of low-value assets, which are directly recognized in the cost of sales or operating expenses, as applicable. Changes in the balance of lease financial liabilities during 2024, 2023 and 2022 were as follows:

	2024
Lease financial liability at beginning of year	$	1,536		2,128		2,465
Additions from new leases		878		260		746
Reductions from payments		(767	)	(633	)	(853	)
Cancellations and liability remeasurements		(14	)	(311	)	(275	)
Foreign currency translation and accretion effects		236		92		45
Lease financial liability at end of year	$	1,869		1,536		2,128

As of December 31, 2024 the non-current lease financial liabilities are as follows:

	Total
2026	$	564
2027		214
2028		100
2029		76
2030 and thereafter		182
	$	1,136

Total cash outflows for leases in 2024, 2023 and 2022, including the interest expense portion as disclosed in note 7.1, were $871, $738 and $973, respectively. Future payments associated with these contracts are presented in notes 18.2 and 23.2.

II.	Liabilities secured with accounts receivable

As mentioned in note 9, as of December 31, 2024 and 2023, the funded amounts of trade accounts receivable sold under securitization programs and/or factoring programs with recourse of $1,782, in both years, were recognized in “Other financial obligations” in the statement of financial position.

The balances of the Parent Company’s other financial obligations associated with the programs for the sale of accounts receivable mentioned above are part of Cemex, S.A.B. de C.V. total obligations under the SLFFs framework mentioned before, which are linked and aligned to Cemex’s strategy of CO2 emissions reduction and its ultimate vision of a carbon-neutral economy.

17.3)	FAIR VALUE OF FINANCIAL INSTRUMENTS

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Fair value of financial instruments – continued

Financial assets and liabilities

The book values of cash, trade receivable, other accounts receivable, trade payables, other accounts payable and accrued expenses, as well as current debt, approximate their corresponding estimated fair values due to the revolving nature of these financial assets and liabilities in the short-term.

The estimated fair value of non-current debt is level 1 and level 2 and is either based on estimated market prices for such or similar instruments, considering interest rates currently available for Cemex, S.A.B. de C.V. to negotiate debt with the same maturities, or determined by discounting future cash flows using market-based interest rates currently available.

The fair values determined by Cemex, S.A.B. de C.V. for its derivative financial instruments are level 2. There is no direct measure for the risk of Cemex, S.A.B. de C.V. or its counterparties in connection with such instruments. Therefore, the risk factors applied for Cemex, S.A.B. de C.V.’s assets and liabilities originated by the valuation of such derivatives were extrapolated from publicly available risk discounts for other public debt instruments of Cemex, S.A.B. de C.V. or its counterparties.

The estimated fair value of derivative instruments fluctuates over time and is determined by measuring the effect of future relevant economic variables according to the yield curves shown in the market as of the reporting date. These values should be analyzed in relation to the fair values of the underlying transactions and as part of Cemex, S.A.B. de C.V.’s overall exposure to fluctuations in interest rates and foreign exchange rates. The notional amounts of derivative instruments do not represent amounts of cash exchanged by the parties, and consequently, there is no direct measure of Cemex, S.A.B. de C.V.’s exposure to the use of these derivatives. The amounts exchanged are determined based on the notional amounts and other terms included in the derivative instruments.

As of December 31, 2024 and 2023, the carrying amounts of non-current financial assets and liabilities and their respective fair values were as follows:

	2024				2023
	Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Investments available for sale (note 12)	$	221		221	$	236		236
Derivative financial instruments (notes 14 and 17.4)		1,191		1,191		1,073		1,073
	$	1,412		1,412	$	1,309		1,309
Financial liabilities
Non-current debt (note 17.1)	$	109,759		105,706	$	98,987		95,999
Other financial obligations (note 17.2)		1,136		1,113		968		624
Derivative financial instruments (note 17.4)		2,088		2,088		260		260
Non-current accounts payable with related parties (note<br>18.1)		35		35		28		28
	$	113,018		108,942	$	100,243		96,911
17.4)	DERIVATIVE FINANCIAL INSTRUMENTS
---	---

During the reported periods, in compliance with the guidelines established by its Risk Management Committee, the restrictions set forth by its debt agreements and its hedging strategy (note 17.5), Cemex, S.A.B. de C.V. held derivative instruments with the objectives explained in the following paragraphs.

As of December 31, 2024 and 2023, the notional amounts and fair values of Cemex, S.A.B. de C.V.’s derivative instruments were as follows:

	2024					2023
	Notional amount		Fair value			Notional amount		Fair value
I. Foreign exchange forwards hedging the net investment	US$	713		63			976		(94	)
II. Cross currency swaps		658		(100	)		335		23
III. Interest rate swaps		600		14			750		30
IV. Fuel price hedging		356		6			232		5
V. Foreign exchange options		650		41			300		10
	US$	2,977		24			2,593		(26	)

The caption “Financial income and other items, net” in the statements of income includes gains and losses related to the recognition of changes in fair values of the derivative financial instruments during the applicable period, which represented net losses of US$2 ($42) in 2024, US$19 ($326) in 2023 and of US$5 ($103) in 2022. During the reported periods, Cemex, S.A.B. de C.V. did not have derivatives designated as fair value hedges.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Derivatives financial instruments – continued

I.	Net investment hedges

As of December 31, 2024 and 2023, there are Dollar/Peso foreign exchange forward contracts with target tenor ranging from 1 to 15 months for notional amounts of US$492 ($10,248) and US$518 ($8,790), respectively. Cemex, S.A.B. de C.V. has designated this program as a hedge of Cemex, S.A.B. de C.V.’s net investment in Pesos, pursuant to which changes in the fair market value of these instruments are recognized as part of other equity reserves. For the years 2024, 2023 and 2022, these contracts generated gains of $1,586 (US$86) and losses of $3,028 (US$172) and $1,924 (US$96), respectively, which partially offset currency translation effects in each year recognized in equity generated from the Parent Company’s net assets denominated in Pesos. The gains generated in 2024 from these derivatives are related to the depreciation of the Peso during the year, while the losses during 2023 and 2022 were related to the appreciation of the Peso in both years.

In addition, as of December 31, 2024 and 2023, as part of the Peso net investment hedge strategy, there are additional Dollar/Peso capped forwards, structured with option contracts, for a notional amount of US$221 ($4,612) and US$458 ($7,777), respectively. These capped forwards contain limits on the upside that the instrument may generate. Changes in the fair market value of such capped forward contracts are also recognized as part of other equity reserves. For the years 2024, 2023 and 2022, these contracts generated gains of $802 (US$43) and losses of $953 (US$54) and $37 (US$2), respectively, which partially offset currency translation effects recognized in equity generated from Cemex S.A.B de C.V. net assets denominated in Pesos due to the depreciation of the Peso in 2024 and the appreciation of the Peso in 2023 and 2022.

Moreover, during the year 2022, the Parent Company unwound Dollar/Euro cross-currency swap contracts for a notional amount of US$750 ($14,625), which resulted in a settlement gain of $1,550 (US$80) recognized in equity. Cemex, S.A.B. de C.V. designated the foreign exchange forward component of these instruments as a hedge of its net investment in Euros, and changes in fair market were recognized as part of other equity reserves, while changes in fair value of the interest rate swap component until settlement were recognized within the line of “financial income and other items, net.” representing gains of $151 (US$8) in 2022. For the year 2022, the foreign exchange forward component generated gains of $1,400 (US$70) recognized in equity, which partially offset currency translation losses recognized in other equity reserves generated from net assets denominated in Euros due to the depreciation of the Euro against the Dollar in 2022, related to the exchange of interest rates in the statement of income.

II.	Cross currency swaps

As of December 2024 and 2023, Cemex, S.A.B. de C.V. held cross-currency swap contracts for a notional amount of US$658 ($13,706) and US$335 ($5,685), respectively, in connection with the 2023 CEBURES as described in note 17.1, aiming to change the rate and currency risk profile of the 2023 CEBURES from the Peso to the Dollar. The Parent Company designated these contracts as cash flow hedges of interest rate payments in relation to an equivalent amount of variable and fixed interest rate debt. Changes in fair value of these contracts for the interest rate swap leg are initially recognized as part of other equity reserves and are subsequently allocated through financial expense as interest expense on the related loans is accrued in the statement of income while changes in fair value of the currency forward leg are recognized directly in the statement of income partially offsetting the related Peso denominated debt’s foreign exchange fluctuation. For the years 2024 and 2023, changes in the fair value of these contracts generated losses of $2,290 (US$123) and gains of $409 (US$23), respectively, recognized in other equity reserves. Moreover, during the same periods, the Parent Company reclassified results from equity to the line item “Financial expenses” representing gains of $523 (US$28) in 2024 and $89 ($5) in 2023.

III.	Interest rate swaps

For accounting purposes under IFRS, Cemex, S.A.B. de C.V. designates interest rate swaps as cash flow hedges, to fix interest rate payments in relation to an equivalent amount of floating interest rate debt. As a result, changes in the fair value of these contracts are initially recognized as part of other comprehensive income in equity and are subsequently reclassified to financial expense as the interest expense of the related floating interest rate debt is accrued in the statement of income.

As of December 31, 2024 and 2023, the Parent Company held interest rate swaps for a notional amount of US$600 ($12,498) and US$750 ($12,728), respectively, with a fair market value representing assets of $298 (US$14) in 2024 and $508 (US$30) in 2023, negotiated in June 2018 to fix interest payments of existing bank loans bearing Dollar floating rates. For the years ended in 2024 and 2023, changes in the fair value of these contracts generated losses of $291 (US$16) and $157 (US$9), respectively and for the year 2022, gains of $1,382 (US$69), recognized in other equity reserves. Moreover, during the same periods, Cemex, S.A.B. de C.V. recycled results from equity to the line item “Financial expenses” representing income of $427 (US$23) in 2024, $393 (US$22) in 2023 and expense of $39 (US$2) in 2022.

In addition, as of December 31, 2022, the Parent Company held interest rate swaps for a notional of US$268 ($5,231), negotiated to fix interest payments of existing bank loans referenced to Pesos floating rates that matured in November 2023, which fair value represented an asset of $287 (US$15) in 2022. For the years 2023 and 2022 until their settlement, changes in the fair value of these contracts generated losses of $260 (US$15) and gains of $59 (US$3), respectively, recognized in other equity reserves. Moreover, during the same periods, Cemex, S.A.B. de C.V. recycled results from equity to the line item of “Financial expenses” representing gains of $329 (US$18) in 2023 and gains of $150 (US$7) in 2022.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Derivatives financial instruments – continued

IV.	Fuel price hedging

As of December 31, 2024 and 2023, Cemex, S.A.B. de C.V. maintained swap and option contracts negotiated to hedge the price of certain fuels in several operations, primarily diesel and gas, for aggregate notional amounts of US$134 ($2,800) and US$110 ($1,866), respectively, with an estimated aggregate fair value representing assets of $24 (US$1) in 2024 and of $12 (US$1) in 2023. By means of these contracts, for own consumption only at the consolidated level, the Parent Company either fixed the price of these fuels or entered into option contracts to limit the prices to be paid for these fuels, over certain volumes representing a portion of the estimated consumption of such fuels in several operations. These contracts have been designated as cash flow hedges of diesel or gas consumption, and as such, changes in fair value are recognized temporarily through other equity reserves and are recycled to operating expenses as the related fuel volumes are consumed. For the years 2024, 2023 and 2022, changes in fair value of these contracts recognized in other equity reserves represented losses of $124 (US$6), $97 (US$6) and $509 (US$25), respectively. For these derivative financial instruments Cemex, S.A.B. de C.V. only acts as a financial intermediary for its subsidiaries with the third parties, for such reason the accounting effects for the Parent Company in other equity reserves are offset by virtue of mirror contracts.

In addition, as of December 31, 2024 and 2023, Cemex, S.A.B. de C.V. held Brent oil call spreads with a notional of US$150 ($3,132) and US$122 ($2,070), respectively, intended economically to mitigate the exposure over a portion of the diesel cost implicit in the distribution expense. Changes in the fair value of these contracts are recognized directly in the statement of income as part of “Financial income and other items, net” which resulted in losses of $156 (US$8) in 2024 and $13 (US$1) in 2023.

Moreover, as of December 31, 2024, Cemex, S.A.B. de C.V. held Coal call spreads with notional of US$72 ($1,502), intended to economically mitigate the exposure over the petcoke consumption in the production process. Changes in the fair value of these contracts are recognized directly in the statement of income as part of “Financial income and other items, net” which resulted in losses of $162 (US$9).

V.	Foreign Exchange Options

As of December 31, 2024 and 2023, Cemex, S.A.B. de C.V. held Dollar/Peso call spread option contracts for a notional amount of US$650 ($13,540) and US$300 ($5,091), respectively. Such contracts mature between January 2026 and October 2026 and were negotiated to maintain the value in Dollars over an equivalent amount of revenue generated in Pesos. Changes in the fair value of these instruments generated gains of $276 (US$15) in 2024, losses of $328 (US$18) in 2023 and losses of $257 (US$13) in 2022, recognized within “Financial income and other items, net” in the statement of income.

17.5)	RISK MANAGEMENT

Enterprise risks may arise from any of the following situations: i) the potential change in the value of assets owned or reasonably anticipated to be owned, ii) the potential change in value of liabilities incurred or reasonably anticipated to be incurred, iii) the potential change in value of services provided, purchase or reasonably anticipated to be provided or purchased in the ordinary course of business, iv) the potential change in the value of assets, services, inputs, products or commodities owned, produced, manufactured, processed, merchandised, leased or sell or reasonably anticipated to be owned, produced, manufactured, processed, merchandised, leased or sold in the ordinary course of business, or v) any potential change in the value arising from interest rate or foreign exchange rate exposures arising from current or anticipated assets or liabilities.

In the ordinary course of business, the Parent Company is exposed to commodities risk, including the exposure from inputs such as fuel, coal, petroleum coke, carbon slags, gypsum and other industrial materials which are commonly used in the production process, and expose Cemex, S.A.B. de C.V. to variations in prices of the underlying commodities. To manage this and other risks, such as credit risk, interest rate risk, foreign exchange risk, equity risk and liquidity risk, considering the guidelines set forth by the Board of Directors, which represent Cemex, S.A.B. de C.V.’s risk management framework and that are supervised by several Committees, the Parent Company’s management establishes specific policies that determine strategies oriented to obtain natural hedges to the extent possible, such as avoiding customer concentration in a determined market or aligning the currencies portfolio in which Cemex, S.A.B. de C.V. incurred its debt with those in which cash flows are generated.

The main risk categories are mentioned below:

Credit risk

Credit risk is the risk of economic loss faced by the Parent Company if a customer or counterpart of a financial instrument does not meet its contractual obligations and originates mainly from trade accounts receivable. As of December 31, 2024 and 2023, the maximum exposure to credit risk is represented by the balance of financial assets. Management has developed policies for the authorization of credit to customers. The accounting exposure to credit risk is monitored constantly according to the payment behavior of the debtors. Credit is assigned on a customer-by-customer basis and is subject to assessments which consider the customers’ payment capacity, as well as past behavior regarding due dates, balances past due and delinquent accounts. In cases deemed necessary, Cemex, S.A.B. de C.V.’s management requires guarantees from its customers and financial counterparties regarding financial assets.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Risk management – credit risk – continued

The Parent Company’s management has established a policy of low risk tolerance that analyzes the creditworthiness of each client individually before offering the general conditions of payment terms and delivery. The review includes external ratings when references are available and in some cases bank references. Thresholds of purchase limits are established for each client, which represent the maximum purchase amounts that require various levels of approval. Customers who do not meet the levels of solvency requirements imposed by Cemex, S.A.B. de C.V. are not granted with credit terms. As of December 31, 2024, considering Cemex, S.A.B. de C.V.’s best estimate of potential expected losses based on the ECL model (note 9), the allowance for expected credit losses was $247.

The aging of trade accounts receivable as of December 31, 2024 is as follows:

	2024
Neither past due, nor impaired portfolio	$	4,401
Past due less than 90 days portfolio		490
Past due more than 90 days portfolio		304
	$	5,195

Interest rate risk

Interest rate risk is the risk that a financial instrument’s fair value or future cash flows will fluctuate because of changes in market interest rates, which only affect Cemex, S.A.B. de C.V.’s results if the fixed rate non-current debt is measured at fair value. The Parent Company’s fixed-rate non-current debt is carried at amortized cost and therefore is not subject to interest rate risk. Cemex, S.A.B. de C.V.’s exposure to the risk of changes in market interest rates relates primarily to its non-current debt obligations with floating interest rates which, if such rates were to increase, may adversely affect its financing cost and the results for the period.

Additionally, there is an opportunity cost for continuing to pay a determined fixed interest rate when the market rates have decreased, and the entity may obtain improved interest rate conditions in a new loan or debt issuance. Cemex, S.A.B. de C.V. manages its interest rate risk by balancing its exposure to fixed and floating rates while attempting to reduce its interest costs. The Parent Company could renegotiate the conditions or repurchase the debt, particularly when the net present value (“NPV”) of the estimated future benefits from the interest rate reduction is expected to exceed the cost and commissions that would have to be paid in such renegotiation or repurchase of debt.

As of December 31, 2024 and 2023, 25% and 31%, respectively, of the non-current debt was denominated in floating interest rates at a weighted average interest rate of SOFR plus 95 basis points in 2024 and 95 basis points in 2023. These figures reflect the effect of interest rate swaps held by the Parent Company during 2024 and 2023. As of December 31, 2024 and 2023, if interest rates at that date had been 0.5% higher, with all other variables held constant, the net income of Cemex, S.A.B. de C.V. in 2024 and 2023 would have decreased by $272 (US$13) and $227 (US$13), because of higher interest expense on variable rate denominated debt. Conversely, a hypothetical 0.5% decrease in interest rates would have the opposite effect. This analysis does not include the effect of interest rate swaps during 2024 and 2023.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. Cemex, S.A.B. de C.V.’s exposure to the risk of changes in foreign exchange rates relates primarily to its financing activities. As of December 31, 2024, 67% of the financial debt was Dollar-denominated, 17% was Euro-denominated and 16% was Peso-denominated; therefore, Cemex, S.A.B. de C.V. has a foreign currency exposure arising from the Dollar-denominated financial debt and the Euro-denominated financial debt, versus the currency in which Cemex, S.A.B. de C.V.’s revenues are settled. Cemex, S.A.B. de C.V. cannot assure that it will generate revenues in Pesos sufficient to settle its obligations in Dollars and Euro. As of December 31, 2024, Cemex, S.A.B. de C.V. had implemented a derivative financing hedging strategy using foreign exchange options for a notional amount of US$650 to hedge the value in Dollar terms of revenues generated in Pesos to partially address this foreign currency risk (note 17.4). Complementarily, Cemex, S.A.B. de C.V. may negotiate other derivative financing hedging strategies in the future if either of its debt portfolio currency mix, interest rate mix, market conditions and/or economic expectations changes.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Risk management – continued

Monetary position by currency

As of December 31, 2024 and 2023, the net monetary assets (liabilities) by currency are as follows:

Current:	2024
Monetary assets	$	18,055		15,088
Monetary liabilities		(86,089	)	(87,973	)
Net monetary liabilities	$	(68,034	)	(72,885	)
Non-current:
Monetary assets	$	3,296		2,078
Monetary liabilities		(114,241	)	(101,790	)
Net monetary liabilities	$	(110,945	)	(99,712	)
Out of which:
Dollars	$	(114,134	)	(92,759	)
Pesos		(46,347	)	(62,881	)
Euros		(18,498	)	(16,957	)
	$	(178,979	)	(172,597	)

Considering that the Parent Company’s functional currency for its financial and holding company activities is the Dollar (note 25.3), foreign currency risk is associated with the translation into Dollars of subsidiaries’ net assets denominated in other currencies. When the Dollar appreciates, the value of such net assets denominated in other currencies decreases in Dollar terms, generating negative foreign currency translation and reducing stockholders’ equity. Conversely, when the Dollar depreciates, the value of such net assets denominated in other currencies increase in Dollar terms generating the opposite effect. Cemex, S.A.B. de C.V. has implemented a Dollar/Peso foreign exchange forward contracts program to hedge foreign currency translation in connection with its net assets denominated in Pesos (note 17.4).

Equity risk

Equity risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate in connection with changes in the market price of Cemex, S.A.B. de C.V.’s and/or third party’s shares. Under these equity derivative instruments, there is a direct relationship between the change in the fair value of the derivative and the change in price of the underlying share. All changes in the fair value of such derivative instruments, with certain exemptions for physically-only settle instruments, would be recognized in the statement of income as part of “Financial income and other items, net.” Although Cemex, S.A.B. de C.V. has negotiated equity forward contracts on its own shares and third-party shares in the past, during 2024, 2023 and 2022, Cemex, S.A.B. de C.V. did not have derivative financial instruments based on the price of the Parent Company’s shares or any third-party’s shares.

Liquidity risk

Liquidity risk is the risk that Cemex, S.A.B. de C.V. will not have sufficient funds available to meet its obligations. In addition to cash flows provided by its operating activities, to meet Cemex, S.A.B. de C.V.’s overall liquidity needs for operations, servicing debt and funding capital expenditures and other acquisitions, Cemex, S.A.B. de C.V. relies on cost-cutting and operating improvements to optimize capacity utilization and maximize profitability, as well as borrowing under credit facilities, proceeds of debt and equity offerings, and proceeds from asset sales. Cemex, S.A.B. de C.V. is exposed to risks from changes in foreign currency exchange rates, prices and currency controls, interest rates, inflation, governmental spending, social instability, and other political, economic and/or social developments, any one of which may materially affect Cemex, S.A.B. de C.V.’s results and reduce cash from operations. The maturities of Cemex, S.A.B. de C.V.’s contractual obligations are included in note 23.2.

As of December 31, 2024, current liabilities, which include $67,057 of current accounts payable to related parties, exceed current assets by $66,662. It is noted that as part of its operating strategy implemented by management, the Company operates with a negative working capital balance. For the year ended December 31, 2024, Cemex, S.A.B. de C.V. generated cash flows provided by operating activities of $21,075. Cemex, S.A.B. de C.V.’s management considers that it will generate sufficient cash flows from operations in the following twelve months to meet its current obligations, considering that its consolidated subsidiaries also have significant current assets that can be obtained by Cemex, S.A.B. de C.V. if required. In addition, as of December 31, 2024, Cemex, S.A.B. de C.V. has a committed line of credit under the RFC for US$2,311 ($48,138). As of December 31, 2024, the total amount of the RCF was available for the Cemex, S.A.B. de C.V.

As of December 31, 2024 and 2023, the potential requirement for additional margin calls under our different commitments is not significant.

As of December 31, 2024, in connection with the aggregate balance of current liabilities with related parties of $67,057, which refer primarily to Cemex Innovation Holding Ltd, Cemex Operaciones Mexico, S.A. de C.V., Cemex Transporte, S.A. de C.V. and Cemex Concretos, S.A. de C.V. (note 18.1), Cemex, S.A.B. de C.V. has proven successful in refinancing such liabilities considering that it exercises control over its subsidiaries.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

18)	BALANCES AND TRANSACTIONS WITH RELATED PARTIES
18.1)	ACCOUNTS RECEIVABLE AND PAYABLE WITH RELATED PARTIES
---	---

Balances and transactions between Cemex, S.A.B. de C.V. and its subsidiaries and equity accounted investees result primarily from: (i) businesses and operational activities in Mexico; (ii) the acquisition or sale of shares of subsidiaries within the group; (iii) products purchase and sale, billing of administrative services, rents, rights to use brands and commercial names, royalties and other services rendered between affiliated companies; and (iv) loans with subsidiaries and equity accounted investees. When market prices and/or market conditions are not readily available, Cemex, S.A.B. de C.V. conducts transfer pricing studies to assure compliance with regulations applicable to transactions between related parties. As of December 31, 2024 and 2023, the primary accounts receivable and payable with related parties, are the following:

2024	Assets				Liabilities
	Current		Non-current		Current		Non-current
Cemex Innovation Holding Ltd	$	—		—		39,476		—
Cemex Operaciones México, S.A. de C.V (note 2)		—		—		6,446		—
Sinergia Deportiva, S.A. de C.V.		—		1,094		—		—
Especialistas en Corredores Viales, S.A. de C.V.		729		—		—		—
Construrama Supply, S.A. de C.V.		513		—		—		—
Cemex Corp		250		—		—		—
Cemex Transporte, S.A. de C.V.		—		—		3,066		17
Cemex Concretos, S.A. de C.V.		—		105		15,263		—
Others		796		105		2,806		18
	$	2,288		1,304		67,057		35
2023	Assets				Liabilities
---	---	---	---	---	---	---	---	---
	Current		Non-current		Current		Non-current
Cemex Innovation Holding Ltd	$	—		—		22,727		—
Cemex Operaciones México, S.A. de C.V.		—		62		26,123		—
Sinergia Deportiva, S.A. de C.V.		—		2,027		—		—
Especialistas en Corredores Viales, S.A. de C.V.		651		—		—		—
Reservas Ecológicas Sustentables de la Laguna, S.A. de C.V.		219		—		—		—
Cemex Corp		184		—		—		—
Cemex Transporte, S.A. de C.V.		—		—		2,249		—
Cemex Concretos, S.A. de C.V.		—		272		12,091		—
Others		868		1		2,922		28
	$	1,922		2,362		66,112		28
18.2)	PRINCIPAL OPERATIONS WITH RELATED PARTIES
---	---

The principal operations of Cemex, S.A.B. de C.V. with related parties for the years ended December 31, 2024, 2023 and 2022, were as follows:

	2024
Revenues:
Net sales	$	21,073	23,772		20,578
Rental income (notes 3 and 15.2)		7,063	7,126		6,165
License fees and administrative services (note 3)		2,594	2,463		3,189
Cost of sales and operating expenses:
Raw material, finished goods and other production cost		38,334	41,244		35,753
Management service expense		—	—		1,568
Lease expense (note 15.2)		51	18		—
Financing (income) cost:
Financial expense		5,297	6,137		3,558
Financial income and other items, net		2,039	(796	)	(2,492	)

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Principal operations with related parties – continued

As of December 31, 2024, in connection with the operating lease agreements that Cemex, S.A.B. de C.V. holds with related parties, the cash flows to be received in the following years are detailed as follows:

	2024
Obligations	Less than 1<br>year		1 – 3<br>Years		3 – 5<br>Years		More than 5<br>Years		Total
Operating leases to be received from related parties ^1^	$	2,742		5,484		5,484		4,343		18,053
^1^	The amounts represent nominal cash flows.
---	---

As of December 31, 2024 and 2023, Cemex, S.A.B. de C.V. had lease payable with related parties for US$11 ($226) and US$2 ($40), respectively.

As of December 31, 2024, in relation to the rights of use that Cemex, S.A.B. de C.V. sublease to related parties described in note 15.2, below are the nominal cash flows to be received in the following years:

	2025
Cemex Operaciones México, S.A. de C.V.	US$	5	3	2	—	10
Cemex Concretos, S.A. de C.V.		9	4	2	—	15
	US$	14	7	4	—	25
	$	292	146	83	—	521

In addition, for the years 2024, 2023 and 2022, in the ordinary course of business, the Parent Company has entered into transactions with related parties for the sale and/or purchase of products, sale and/or purchase of services or the lease of assets, all of which are not significant and to the best of the Parent Company’s knowledge are not significant to the related party, are incurred for non-significant amounts and are executed following the same authorizations applied to other third parties. The identified transactions, which involved members of the Parent Company’s Board of Directors and senior management, as applicable, are reviewed by the Parent Company’s Board of Directors Corporate Practices and Finance Committee and approved or ratified at least annually by the Parent Company’s Board of Directors, as per Cemex’s applicable policies on conflicts of interest and related person transactions.

The Parent Company, also, enters into transactions with affiliates it indirectly controls, such as Trinidad Cement Limited and Caribbean Cement Company Limited; with other companies in which Cemex has a non-controlling position, such as GCC and Lehigh White Cement Company; with companies in which the Parent Company’s Board of Director members are members of such company’s board of directors, like Banco Santander de Negocios de México, S.A. de C.V. and affiliates, Grupo ICA, S.A. de C.V. and affiliates, FEMSA, S.A.B. de C.V., Carza, S.A.P.I. de C.V., Nemak, S.A.B. de C.V., NEG Natural, S.A. de C.V., Banco Mercantil del Norte, S.A., BBVA México S.A., Neoris, N.V.; and with companies at which members of Cemex’s Executive Committee have family members, such as Cementos Españoles de Bombeo, S. de R.L. de C.V. (“CEB”), HSBC México, S.A. and the firm Mckinsey & Company Inc. México, S.C., among others, all of which are also reviewed by the Parent Company’s Board of Directors Corporate Practices and Finance Committee and approved or ratified at least annually by the Parent Company’s Board of Directors.

For the Parent Company, except for as set forth below, none of these transactions executed in 2024 are material to be disclosed separately. In addition, during the same periods, no member of Cemex, S.A.B. de C.V.’s senior management or Board of Directors had any outstanding loans with Cemex.

The most important transactions with related parties during 2024 included in Cemex, S.A.B. de C.V.’s financial statements was as follows:

•	For the year 2024, Cemex incurred services from CEB, a provider of<br>ready-mix pumping services to Cemex’s customers in Mexico for a consolidated amount of US$70.

For the years 2024, 2023 and 2022, the aggregate compensation of Cemex, S.A.B. de C.V.’ Board of Directors, including alternate directors, and Cemex’s top management was USD$48, USD$71 and USD$44, respectively. Of these amounts, USD$31 in 2024, USD$24 in 2023, USD$29 in 2022, were paid as base compensation plus performance bonuses, including pension and post-employment benefits. In addition, USD$17 in 2024, USD$47 in 2023 and USD$15 in 2022 of the aggregate amounts in each year, corresponded to allocations of ADSs under Cemex’s executive share-based compensation programs.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

19)	PENSIONS AND POST-EMPLOYMENT BENEFITS

Defined contribution pension plans

The costs of defined contribution plans for the years ended December 31, 2024, 2023 and 2022 were $342, $277 and $279, respectively. Cemex, S.A.B. de C.V. contributes periodically the amounts offered by the pension plan to the employee’s individual accounts, not retaining any remaining liability as of the financial statements’ date.

Defined benefit pension plans

Cemex, S.A.B. de C.V. defined benefit plans is closed to new participants. Actuarial results related to pension and other post-employment benefits are recognized in earnings and/or in “Other comprehensive income” for the period in which they are generated, as appropriate. For the years ended December 31, 2024, 2023 and 2022, the effects of pension plans and other post-employment benefits are summarized as follows:

	Pensions								Other benefits							Total
Net period cost (income):	2024			2023			2022		2024		2023			2022		2024			2023			2022
Recorded in operating costs and expenses
Service cost	$	2			2			2		12		10			9		14			12			11
Past service cost		—			2			1		—		1			—		—			3			1
Settlements, curtailments, and other changes		—			(69	)		—		—		(20	)		—		—			(89	)		—
		2			(65	)		3		12		(9	)		9		14			(74	)		12
Recorded in other financial expenses
Net interest cost		21			35			3		17		14			9		38			49			12
Recorded in other comprehensive income
Actuarial (gains) losses for the period		(41	)		(20	)		33		27		8			—		(14	)		(12	)		33
	$	(18	)		(50	)		39		56		13			18		38			(37	)		57

As of December 31, 2024 and 2023, the reconciliation of the actuarial benefits’ obligations and pension plan assets, are presented as follows:

	Pensions						Other benefits						Total
	2024			2023			2024			2023			2024			2023
Change in benefits obligation:
Projected benefit obligation at beginning of the period	$	355			407			162			150			517			557
Service cost		2			2			12			10			14			12
Interest cost		21			35			17			14			38			49
Actuarial (gains) losses		(41	)		(20	)		27			8			(14	)		(12	)
Plan amendments		—			(67	)		—			(19	)		—			(86	)
Benefits paid		(2	)		(3	)		(5	)		(3	)		(7	)		(6	)
Employees transfer from subsidiaries		1			1			—			2			1			3
Net projected liability in the statement of financial position	$	336			355			213			162			549			517

For the years 2024, 2023 and 2022, actuarial (gains) losses for the period were generated by the following main factors as follows:

	2024
Actuarial (gains) losses due to experience	$	7		(26	)	9
Actuarial (gains) losses due to demographic assumptions		—		13		59
Actuarial (gains) losses due financial assumptions		(21	)	1		(35	)
	$	(14	)	(12	)	33

In 2024, the gain of $21 in financial assumptions was mainly driven by an increase in the discount rate applicable to the calculation of the benefits’ obligations, partially offset by actuarial losses due to experience adjustments of $7.

In 2023, net actuarial gains due to experience adjustments of $26, partially offset by actuarial losses due to demographic variables of $13, mainly due to the update of the mortality table.

In 2022, net actuarial losses due to demographic assumptions resulted from a change in life expectancy and the ongoing update of the mortality table. In addition, the gain in financial assumptions was mainly driven by an increase in the discount rate applicable to the calculation of the benefits’ obligations, as market interest rates increased in 2022 as compared to 2021.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Pensions and post-employment benefits – continued

The most significant assumptions used in the determination of the benefit obligation were as follows:


Discount rates	11.75	%	10.50	%
Rate of return on plan assets	11.75	%	10.50	%
Rate of salary increases	4.50	%	4.50	%

As of December 31, 2024, estimated payments for pensions and other post-employment benefits over the next 10 years were as follows:

	Estimatedpayments
2025	$	330
2026		42
2027		41
2028		40
2029 – 2034		231

Cemex, S.A.B. de C.V. has established health care benefits for retired personnel limited to a certain number of years after retirement. As of December 31, 2024 and 2023, the projected benefits obligation related to these benefits was $71 and $75, respectively, included within other benefits liability. The medical inflation rates used to determine the projected benefits obligation of these benefits in 2024 and 2023 was 8% in both years.

Significant reduction or liquidation of pensions and otherpost-employment benefits to employees during the reporting periods.

During 2024, there were no significant settlements or curtailments related to employees’ pension benefits and other post-employment benefits.

In 2023, as a result of an extension in the retirement age for the Company’s operations in Mexico, Cemex, S.A.B. de C.V. there was a reduction of $89 in the retirement obligations recognized against the statement of income for the period. In addition, a labor reform in vacation days in Mexico resulted in a modification to its pension plans in a past service expense of $3, recognized in the statement of income for the period.

Sensitivity analysis ofpension and other post-employment benefits

For the year ended December 31, 2024, Cemex, S.A.B. de C.V. performed sensitivity analyses on the most significant assumptions that affect the PBO, considering reasonable independent changes of plus or minus 50 basis points in each of these assumptions. The increase (decrease) that would have resulted in the PBO of pensions and other post-employment benefits as of December 31, 2024 are shown below:

	Pensions						Other benefits						Total
Assumptions:	+50 bps			-50 bps			+50 bps			-50 bps			+50 bps			-50 bps
Discount Rate Sensitivity	$	(9	)		9			(6	)		6			(15	)		15
Salary Increase Rate Sensitivity		2			(2	)		3			(2	)		5			(4	)
Pension Increase Rate Sensitivity		2			(2	)		1			(1	)		3			(3	)
20)	INCOME TAXES
---	---
20.1)	INCOME TAXES FOR THE PERIOD
---	---

The amounts of income tax (expense) benefit in the statement of income for 2024, 2023 and 2022 are summarized as follows:

	2024
Current income tax	$	(3,252	)	(4,521	)	(91	)
Deferred income tax		6,875		675		1,240
	$	3,623		(3,846	)	1,149

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

20.2)	DEFERRED INCOME TAXES

The effect of deferred income taxes for the period represents the difference between the income tax balances at the beginning and end of the period. As of December 31, 2024 and 2023 the temporary differences that generated the deferred income tax assets and liabilities of Cemex, S.A.B. de C.V. are presented below:

	2024
Deferred tax assets:
Allowances for expected credit losses	$	74		65
Provisions		655		1,501
Advance from customers		831		1,059
Liabilities for the<br>right-of-use (note 15.2)		552		463
Derivative financial instruments		1,956		2,029
Deferred financial expenses		7,876		—
Other deferred tax assets		437		122
Total deferred tax assets^^		12,381		5,239
Deferred tax liabilities:
Land and buildings		(5,121	)	(5,117	)
Assets for the<br>right-of-use (note 15.2)		(376	)	(275	)
Accounts receivable to related parties		(19	)	(63	)
Advance payments		(146	)	(120	)
Total deferred tax liabilities		(5,662	)	(5,575	)
Net deferred tax assets (liabilities)	$	6,719		(336	)

Cemex, S.A.B. de C.V. does not recognize a deferred tax liability for the undistributed earnings generated by its subsidiaries, considering that such undistributed earnings are expected to be reinvested and not generate taxable income in the near future. In addition, for the year ended December 31, 2024 and 2023, Cemex, S.A.B. de C.V. recognized an income tax gain within other comprehensive income of $180 in 2024 and of $657 in 2023, respectively, mainly related to the net investment hedge (note 17.4).

20.3)	RECONCILIATION OF EFFECTIVE INCOME TAX RATE

For the years ended December 31, 2024, 2023 and 2022, the effective income tax rates were as follows:

	2024
Net income before income tax^^	$	13,380		7,166		16,192
Income tax (expense) benefit		3,623		(3,846	)	1,149
Effective income tax rate ^1^		(27.1%	)	53.7	%	(7.0%	)
^1^	The average effective tax rate equals the net amount of income tax benefit or expense divided by net<br>income before income taxes, as these line items are reported in the statement of operations.
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The effects of inflation are recognized differently for tax purposes and for book purposes. This situation, which creates differences between book and tax bases, gives rise to permanent differences between the enacted tax rate and the effective rate shown in the statement of income of Cemex, S.A.B. de C.V.

As of December 31, 2024, 2023 and 2022, these differences were as follows:

	2024				2023				2022
	%				%				%
Enacted income tax rate		30.0				30.0				30.0
Inflation adjustments		9.3				33.7				29.1
Changes in deferred tax assets<br>^1^		—				(10.1	)	)		(57.6	)	)
Fiscal exchange loss (gain)		(44.0	)	)		73.0				16.7
Income of equity accounted investees		(24.4	)	)		(36.4	)	)		(23.3	)	)
Non-deductible and other items^^		2.0				(36.5	)	)		(1.9	)	)
Effective income tax expense (benefit) rate		(27.1	)	)		53.7				(7.0	)	)

All values are in US Dollars.

^1^	Refers to the effects in the effective income tax rate associated with changes during the period in the<br>amount of deferred income tax assets related to tax loss carryforwards.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

21)	STOCKHOLDERS’ EQUITY

As of December 31, 2024 and 2023, stockholders’ equity excludes investments in CPOs of Cemex, S.A.B. de C.V. held by subsidiaries of $250 (20,541,277 CPOs) and $272 (20,541,277 CPOs), respectively, which were eliminated within “Other equity reserves and subordinated notes.”

21.1)	COMMON STOCK AND ADDITIONAL PAID-IN CAPITAL

As of December 31, 2024 and 2023, common stock and additional paid-in capital was as follows:

	2024
Common stock	$	4,162	4,162
Additional paid-in capital		99,114	99,114
	$	103,276	103,276

As of December 31, 2024 and 2023, the common stock of Cemex, S.A.B. de C.V. was represented as follows:

	2024				2023
Shares^^^1^^^	Series A^2^		Series B^2^		Series A^2^		Series B^2^
Subscribed and paid shares		29,016,656,496		14,508,328,248		29,016,656,496		14,508,328,248
Unissued shares authorized for executives’ stock compensation programs		881,442,830		440,721,415		881,442,830		440,721,415
		29,898,099,326		14,949,049,663		29,898,099,326		14,949,049,663
^1^	As of December 31, 2024 and 2023, 13,068,000,000 shares correspond to the fixed portion and<br>31,779,148,989 shares correspond to the variable portion, respectively.
---	---
^2^	Series “A” or Mexican shares must represent at least 64% of Cemex, S.A.B. de C.V.’s<br>capital stock; Series “B” or free subscription shares must represent at most 36% of Cemex, S.A.B. de C.V.’s common stock.
---	---

On March 22, 2024 stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) the payment of a cash dividend for a total of US$120 ($2,027) in four equal quarterly installments beginning in June 2024 and finalizing in March 2025; (b) setting the amount of US$500 or its equivalent in Pesos as the maximum amount that during fiscal year 2024, and until the next ordinary general shareholders’ meeting of Cemex, S.A.B. de C.V. is held, Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (c) the appointment of the members of the Board of Directors, the Audit Committee, the Corporate Practices and Finance Committee and, the Sustainability, Climate Action, Social Impact and Diversity Committee; and (d) the extension of share-based long-term compensation programs in shares of Cemex, S.A.B. de C.V.’s until December 31, 2028. During 2024, there were no purchases of own shares under the outstanding share repurchase program.

On March 23, 2023, stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) setting an amount of US$500 or its equivalent in Pesos, as the maximum amount of resources that during fiscal year 2023, and until the next general ordinary shareholders’ meeting is held that Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (b) authorize the Parent Company’s Board of Directors to determine the bases on which the acquisition and placement of said shares shall be instructed, designate the persons that shall make the decisions to acquire or place them, appoint those responsible for carrying out the transaction and giving the corresponding notices to the authorities; and (c) to decrease Cemex, S.A.B. de C.V.’s capital stock, in its variable part, through the cancellation of 662 million of own shares (22.1 million ADSs), which were acquired through the share repurchase program in 2022. During 2023, there were no purchases of own shares under the outstanding share repurchase program.

On March 24, 2022, stockholders at the general ordinary shareholders’ meeting of Cemex, S.A.B. de C.V. approved: (a) setting an amount of US$500 or its equivalent in Pesos as the maximum amount of resources through the year 2022 and until the next general ordinary shareholders’ meeting is held that Cemex, S.A.B. de C.V. may use for the acquisition of its own shares or securities representing such shares; (b) authorize the Parent Company’s Board of Directors to determine the bases on which the acquisition and placement of any such shares shall be instructed, designate the persons that shall make the decisions to acquire or place them, appoint those responsible for carrying out the transaction and giving the corresponding notices to the authorities; and (c) designation of the members of the Board of Directors, as well as members of the Audit, Corporate Practices and Finance, and Sustainability Committees. During 2022, 662 million own shares (22.1 million ADSs) were acquired under the outstanding share repurchase program for an amount of US$111 ($2,296).

In 2024, 2023 and 2022 Cemex, S.A.B de C.V. did not issue shares in connection with its executive share-based compensation programs (note 22).

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

21.2)	RETAINED EARNINGS

Cemex, S.A.B. de C.V.’s net income for the year is subject to a 5% allocation toward a legal reserve until such reserve equals one fifth of the equity represented by the common stock. As of December 31, 2024, 2023 and 2022, the legal reserve amounted to $1,804. During 2024, as mentioned in note 21.1, the Parent Company declared dividends of $2,027 (US$120), of which, as of December 31, 2024, the last quarterly payment of $282 remain payable.

21.3)	OTHER EQUITY RESERVES AND SUBORDINATED NOTES

As of December 31, 2024 and 2023, the caption of other equity reserves and subordinated notes was integrated as follows:

	2024
Other equity reserves	$	27,686	(11,311	)
Subordinated notes		38,055	38,055
	$	65,741	26,744

Subordinated notes

In March 2023, Cemex, S.A.B. de C.V. issued US$1,000 of its 9.125% subordinated notes (the “2023 Subordinated Notes”). After issuance costs, Cemex, S.A.B. de C.V. received US$992. The 2023 Subordinated Notes are aligned with the Green Financing Framework (the “GFF”) and the net proceeds obtained in the issuance should be applied to finance, in whole or in part, one or more new or existing Eligible Green Projects (“EGPs”) under its GFF’s use-of-proceeds. EGPs include those related to pollution prevention and control, renewable energy, energy efficiency, clean transportation, sustainable water and wastewater management, and eco-efficient and/or circular economy adapted products, production technologies and processes.

In June 2021, Cemex, S.A.B. de C.V. issued one series of US$1,000 of its 5.125% subordinated notes (the “2021 Subordinated Notes”). After issuance costs, Cemex, S.A.B. de C.V. received US$994. The net proceeds obtained were used to repurchase in full the balance then outstanding of perpetual debentures issued by subsidiaries and the repayment of debt.

Based on the above characteristics of the Subordinated Notes, included in contractual terms that are considered to be substantive, and legal considerations, under IAS 32, Financial Instruments: Presentation (“IAS 32”), Cemex concluded that the Subordinated Notes do not meet the definition of financial liability under IAS 32, and consequently are classified within controlling interest stockholders’ equity within Other equity reserves. The classification as equity of the Subordinated Notes can be summarized as follows:

•	As mentioned above, the Subordinated Notes do not meet the definition of financial liability under IAS 32<br>considering that they include no contractual obligation: (i) to deliver cash or another financial asset to another entity; or (ii) to exchange financial assets or financial liabilities with another entity under conditions that are<br>potentially unfavorable to the issuer. This is because:
•	The Noteholders have agreed to the deferral of interest and principal, given that the Parent Company has the<br>unilateral and unconditional right to perpetually defer the payment of principal and interest;
---	---
•	The Parent Company controls any payments to be made to the Noteholders, including in the event of bankruptcy<br>under either the laws of Mexico (Ley de Concursos Mercantiles) or U.S. bankruptcy laws (Chapter 11); and
---	---
•	The Subordinated Notes contractually evidence a residual interest in the assets of the Parent Company after<br>deducting all of its liabilities. The only requirement to settle the Notes would be in liquidation, which is akin to an equity instrument under IAS 32.
---	---

Coupon payments on the Subordinated Notes were included within “Other equity reserves and subordinated notes” and amounted to $2,708 in 2024, $2,228 in 2023 and $1,079 in 2022.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

22)	EXECUTIVE SHARE-BASED COMPENSATION

Stock/based awards granted to executives are defined as equity instruments, considering that the services received from employees are settled by delivering shares. The cost of these equity instruments represents their estimated fair value at the grant date of each plan and is recognized in the statement of income during the periods in which the executives render services and vest the exercise rights.

Cemex, S.A.B. de C.V. sponsors different long-term restricted share-based compensation programs for a wide range of executives. For eligible executives, stock-based compensation represents a fixed percentage of such executive’s annual compensation (the “Stock Bonus”). This Stock Bonus was paid in the Parent Company’s CPOs until December 31, 2023 and will be paid in the Parent Company’s ADSs beginning January 1, 2024, considering certain management improvements that do not affect the employees, and which number is determined on the award date by reference to the Stock Bonus amount and the stock market price of such award date (i.e., once the number of shares is determined, such number is fixed and will not change as a result of changes in the stock market price).

Under our long-term share-based compensation programs, the Company sponsors a program oriented to our top management, which is subject to internal and external performance metrics and rendering of services over a three-year period (the “Performance Plan”), and another program for key executives and key performers, which is subject only to the passage of time and rendering of services over a four-year period (the “Ordinary Plan” together with the Performance Plan, the “Share-Based Compensation Programs”). Shares awarded under the Ordinary Plan are initially restricted for resale and are proportionately released to the executives as services are rendered at the end of each year at a 25% rate over a four-year period, to the extent they remain in the Company at each settlement date. Once the executive is no longer employed by the Company, any shares awarded under the Ordinary Plan are generally forfeited. The Performance Plan, depending on their weighted achievement, may result in a final payout at the end of the third year between 0% and 200% of the target for each award. The fair value of the awards under the Performance Plan is determined by using an option pricing model.

For the years 2024, 2023 and 2022, in connection with the Share-Based Compensation Programs were as follows:

Millions U.S. Dollars										ADSs equivalents delivered(thousands)
Plan	Targetnumber ofADSs<br>(thousands) ^1^		ADS<br>price at<br>award’sdate^2^		Fair value<br>(%)			Fair value<br>(millions)		2024		2023		2022		ADSsForfeited<br>(thousands)		ADSs<br>Outstanding<br>(thousands)^3^
Performance Plans
2019		2,303.0	$	4.4		130	%		13.2		—		—		3,062.8		—		—
2020		4,146.0	$	2.3		155	%		14.8		—		8,448.2		—		—		—
2021		1,227.2	$	8.0		150	%		14.7		446.3		—		—		780.9		—
2022		2,403.6	$	4.3		149	%		15.4		—		—		—		—		3,571.7
2023		2,825.4	$	6.4		145	%		26.1		—		—		—		—		4,094.1
2024		1,976.7	$	6.3		133	%		16.6		—		—		—		—		2,621.5
Ordinary Plans
2019		8,048.2	$	4.7		100	%		37.5		—		42.4		1,521.4		118.3		—
2020		11,162.2	$	2.5		100	%		28.1		—		2,293.0		2,370.9		253.7		—
2021		5,716.6	$	7.2		100	%		41.3		1,210.7		1,442.7		1,465.6		56.6		4.2
2022		9,483.0	$	4.9		100	%		46.0		2,166.0		2,450.5		2,499.8		26.4		2,298.8
2023		6,531.9	$	5.9		100	%		38.4		1,582.9		1,765.0		—		48.0		3,136.0
2024		8,531.7	$	7.2		100	%		61.5		2,248.0		—		—		—		6,283.7
											7,653.9		16,441.80		10,920.5		1,283.9		22,010.0
1	The target number of ADSs for the performance plans assume a 100% payout.
---	---
2	Average ADS price of the awards at the date of grant.
---	---
3	Until the final payout of the Performance Plans is known after the conclusion of the three-year<br>period for each award, the number of ADSs outstanding assumes a payout considering the same percentage of fair value determined by the option pricing model.
---	---

The required Cemex, S.A.B. de C.V.’s ADSs delivered to the executives to meet the Parent Company’s awards are either newly issued or purchased, at the Parent Company’s election. For these purposes, from time to time, an external trust in which the executives are beneficiaries may receive funding from Cemex, S.A.B. de C.V. to incur these purchases. When Cemex, S.A.B. de C.V. funds the executives’ trust, it recognizes a decrease in other equity reserves against cash. As of December 31, 2024, there were no options or commitments to make payments in cash to the executives based on changes in the market price of the Cemex, S.A.B. de C.V.’s ADSs.

The compensation expense related to the Share-Based Compensation Programs described above, as determined considering the fair value of the awards at the date of grant in 2024, 2023 and 2022, was recognized in the operating results of each subsidiary where the executives render services against other equity reserves. In addition, the compensation expense related to the beneficiaries that render services directly in the Parent Company amounted to $539 in 2024, $513 in 2023 and $508 in 2022.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

23)	COMMITMENTS
23.1)	GUARANTEES
---	---

As of December 31, 2024 and 2023, Cemex, S.A.B. de C.V., had guaranteed loans of certain subsidiaries for US$43 ($891) and US$42 ($713), respectively.

23.2)	CONTRACTUAL OBLIGATIONS

As of December 31, 2024, Cemex, S.A.B. de C.V. had the following contractual obligations are as follows:

(Millions)	2024
Obligations	Less than 1<br>year		1-3<br>years		3-5<br>years		More than<br>5 years		Total
Non-current debt ^1^	US$	4		1,518		1,548		2,233		5,303
Leases^^^2^^^		37		20		5		48		110
Total debt and other financial obligations		41		1,538		1,553		2,281		5,413
Short-term and low-value assets rentals^^^3^		2		—		—		—		2
Pension plans and other benefits^^^4^^^		16		4		4		9		33
Interest payment on debt^^^5^		247		504		355		387		1,493
Purchases of services, raw materials, fuel and energy ^6^		176		360		180		355		1,071
Total contractual obligations	US$	482		2,406		2,092		3,032		8,012
	$	10,040		50,117		43,576		63,157		166,890
1	The schedule of debt payments, which includes current maturities, does not consider the effect of any<br>refinancing of debt that may occur during the following years. In the past, Cemex, S.A.B. de C.V. has replaced its long-term obligations for others of a similar nature.
---	---
2	Represent nominal cash flows. As of December 31, 2024, the NPV of future payments under such<br>leases was US$90, of which, US$18 refers to payments from 1 to 3 years and US$4 refers to payments from 3 to 5 years.
---	---
3	The amounts represent nominal cash flows. Refers to the estimated rental payments under short-term<br>lease contracts and assets of low value. These contracts are not recognized as assets for the right-of-use and other financial obligations considering the exemption<br>adopted by Cemex, S.A.B. de C.V.
---	---
4	Represents estimated annual payments under these benefits for the next ten years (note 19), including<br>the estimate of new retirees during such future years.
---	---
5	Estimated cash flows on floating rate denominated debt were determined using the floating interest<br>rates in effect as of December 31, 2024.
---	---
6	Future payments for the purchase of raw materials are presented based on contractual nominal cash<br>flows. Future nominal payments for energy were estimated for all contractual commitments based on an aggregate average expected consumption per year using the future prices of energy established in the contracts for each period. Future payments also<br>include Cemex’s commitments for the purchase of fuel, carbon allowances and other services.
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As of December 31, 2024 and 2023, a description of the most significant contracts presented in the table above is as follows:

•	In March 2024, with the intention of hedging a significant portion of Cemex’s expected consolidated<br>deficit of emission carbon allowances (“EUAs”) under the European Union´s emissions trading system (“EU ETS”), Cemex, S.A.B. de C.V. entered into physically-settled forward purchase commitments for own use in 2029 and 2030<br>for the acquisition of 1.8 million EUAs for an aggregate price of US$157.
•	In October 2022, the Company signed with Neoris a 5-year contract<br>globally beginning in 2023 until 2027 for the acquisition by Cemex of digitalization services and solutions for an annual amount of at least US$55, of which, it is expected that some portion of the annual cost under this contract will be incurred<br>directly by the Parent Company.
---	---
•	On February 8, 2022, Cemex, S.A.B. de C.V renewed or entered into new agreements with six service<br>providers in the fields of data processing services (back office) in finance, accounting and human resources; as well as Information Technology (“IT”) infrastructure services, support and maintenance of IT applications in the countries in<br>which Cemex operates, for a tenure of five to seven years at an average annual cost of US$60. These contracts replaced the agreements Cemex, S.A.B. de C.V maintained with IBM, which expired on August 31, 2022. It is expected that some portion<br>of the annual cost under these contracts will be incurred directly by the Parent Company.
---	---

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Contractual obligations – continued

•	Beginning in April 2016, in connection with the Ventika S.A.P.I. de C.V. and the Ventika II S.A.P.I. de C.V.<br>wind farms (jointly “Ventikas”) located in the Mexican state of Nuevo Leon with a combined generation capacity of 252 Megawatts (“MW”), Cemex, S.A.B. de C.V agreed to acquire a portion of the energy generated by Ventikas for its<br>overall electricity needs in Mexico for a period of 20 years. The estimated annual cost of this agreement is US$24 if Cemex receives all its energy allocation. Nonetheless, energy supply from wind is variable in nature and final amounts are<br>determined considering the final MW per hour (“MWh”) effectively received at the agreed prices per unit.
•	Beginning in February 2010, for its overall electricity needs in Mexico Cemex, S.A.B. de C.V agreed with EURUS<br>to purchase a portion of the electric energy generated for no less than 20 years. EURUS is a wind farm with an installed capacity of 250 MW operated by ACCIONA in the Mexican state of Oaxaca. The estimated annual cost of this agreement is US$77 if<br>the Company receives all its energy allocation. Nonetheless, energy supply from wind sources is variable in nature and final amounts will be determined considering the final MWh effectively received at the agreed prices per unit.<br>
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•	Cemex, S.A.B. de C.V maintains a commitment initiated in April 2004 to purchase the energy generated by<br>Termoeléctrica del Golfo (“TEG”) until 2027 for its overall electricity needs in Mexico. The estimated annual cost of this agreement is US$87 if the Company receives all its energy allocation. Nonetheless, final amounts will be<br>determined considering the final MWh effectively received at the agreed prices per unit.
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•	In connection with the above, Cemex, S.A.B. de C.V also committed to supply TEG and another third-party<br>electrical energy generating plant adjacent to TEG with all fuel necessary for their operations until the year 2027, equivalent to 1.2 million tons of petroleum coke per year. The Company covers its commitments under this agreement acquiring<br>the volume of fuel from sources in the international markets and Mexico.
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•	On October 24, 2018, Cemex, S.A.B. de C.V. entered into an energy financial hedge agreement in Mexico,<br>commencing October 1, 2019 and for a period of 20 years. Through the aforementioned contract, the Company fixed the MWh cost over an electric energy volume of 400 thousand MWh per year, through the payment of US$25.375 price per MWh of<br>electric power in exchange for a market price. The committed price to pay will increase by 1.5% annually. The differential between the agreed price and the market price is settled monthly. Cemex, S.A.B. de C.V. considers this agreement as a hedge<br>for a portion of its aggregate consumption of electric energy in Mexico and recognizes the result of the exchange of price differentials described previously in the Statements of Income as a part of the costs of energy. As a result of this contract<br>during 2024, 2023 and 2022, Cemex, S.A.B. de C.V. received US$5, US$3 and US$3, respectively. Cemex, S.A.B. de C.V. does not recognize this agreement at fair value due to the fact that there is no deep market for electric power in Mexico that would<br>effectively allow for its valuation.
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24)	CONTINGENCIES FROM LEGAL PROCEEDINGS
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Cemex, S.A.B. de C.V. is involved in various legal proceedings, which have not required the recognition of accruals, considering that the probability of loss is less than probable or remote. In certain cases, a negative resolution may represent a decrease in future revenues, an increase in operating costs or a loss. Nonetheless, until all stages in the procedures are exhausted in each proceeding, Cemex, S.A.B. de C.V. cannot assure the achievement of a final favorable resolution.

As of December 31, 2024, the most significant events with a determinable potential loss, the disclosure of which would not impair the outcome of the relevant proceeding, were as follows:

•

In December 2016, Cemex, S.A.B. de C.V. received subpoenas from the SEC seeking information to determine whether there have been any violations of the U.S. Foreign Corrupt Practices Act stemming from the Maceo Project. These subpoenas do not mean that the SEC has concluded that Cemex, S.A.B. de C.V. or any of its affiliates violated the law. Cemex, S.A.B. de C.V. has been cooperating with the SEC and intends to continue cooperating fully with the SEC. On March 12, 2018, the DOJ issued a grand jury subpoena to Cemex, S.A.B. de C.V. relating to its operations in Colombia and other jurisdictions. In 2020, the Company delivered all of the information and documentation that had been requested and has not received any more requests since then. Cemex, S.A.B. de C.V. intends to cooperate fully with the SEC, the DOJ and any other investigatory entity. As of December 31, 2024, Cemex, S.A.B. de C.V. is unable to predict the duration, scope, or outcome of either the SEC investigation or the DOJ investigation, or any other investigation that may arise, or, because of the current status of the SEC investigation and the preliminary nature of the DOJ investigation, the potential sanctions which could be borne by the Parent Company, or if such sanctions, if any, would have a material adverse impact on Cemex, S.A.B. de C.V. results of operations, liquidity or financial position.

•

In addition, as of December 31, 2024, Cemex, S.A.B. de C.V. is involved in various legal proceedings of minor impact that have arisen in the ordinary course of business. These proceedings involve: 1) product warranty claims; 2) claims for environmental damages; 3) indemnification claims relating to acquisitions or divestitures; 4) claims to revoke permits and/or concessions; and 5) other diverse civil, administrative, commercial and lawless actions. Cemex, S.A.B. de C.V. considers that in those instances in which obligations have been incurred, Cemex, S.A.B. de C.V. has accrued adequate provisions to cover the related risks. Cemex, S.A.B. de C.V. believes these matters will be resolved without any significant effect on its business, financial position or results of operations. In addition, in relation to certain ongoing legal proceedings, Cemex, S.A.B. de C.V. is sometimes able to make and disclose reasonable estimates of the expected loss or range of possible loss, as well as disclose any provision accrued for such loss, but for a limited number of ongoing legal proceedings, Cemex, S.A.B. de C.V. may not be able to make a reasonable estimate of the expected loss or range of possible loss or may be able to do so but believes that disclosure of such information on a case-by-case basis would seriously prejudice Cemex, S.A.B. de C.V.’s position in the ongoing legal proceedings or in any related settlement discussions. Accordingly, in these cases, Cemex, S.A.B. de C.V. has disclosed qualitative information with respect to the nature and characteristics of the contingency but has not disclosed the estimate of the range of potential loss.

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Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

25)	MATERIAL ACCOUNTING POLICIES
25.1)	USE OF ESTIMATES AND CRITICAL ASSUMPTIONS
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25.2)	FOREIGN CURRENCY TRANSACTIONS

Transactions denominated in foreign currencies are recorded in the functional currency at the exchange rates prevailing on the dates of their execution. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rates prevailing at the statement of financial position date, and the resulting foreign exchange fluctuations are recognized in earnings, except for exchange fluctuations arising from: 1) foreign currency indebtedness associated with the acquisition of foreign entities; and 2) fluctuations associated with related parties’ balances denominated in foreign currency, whose settlement is neither planned nor likely to occur in the foreseeable future and as a result, such balances are of a permanent investment nature. These fluctuations are recorded against “Other equity reserves,” as part of the foreign currency translation adjustment (note 25.10) until the disposal of the foreign net investment, at which time, the accumulated amount in equity is recycled through the statement of income as part of the gain or loss on disposal.

The financial statements of foreign subsidiaries, as determined using their respective functional currency, are translated to U.S. Dollars and then to Pesos at the closing exchange rate for the statement of financial position and at the closing exchange rates of each month within the period for the statement of income. The functional currency is that in which each consolidated entity primarily generates and expends cash. The corresponding translation effect is included within “Other equity reserves” and is presented in the statement of other comprehensive income for the period as part of the foreign currency translation adjustment (note 25.10) until the disposal of the net investment in the foreign subsidiary.

Considering its integrated activities, for purposes of functional currency, Cemex, S.A.B. de C.V. deemed to have two divisions, one related with its financial and holding company activities, in which the functional currency is the Dollar for all assets, liabilities and transactions associated with these activities, and another division related with the Cemex, S.A.B. de C.V.’s operating activities in Mexico, in which the functional currency is the Peso for all assets, liabilities and transactions associated with these activities.

The most significant closing exchange rates for the statement of financial position and the approximate average exchange rates (as determined using the closing exchange rates of each month within the period) for the statement of income with respect to the primary functional currencies to the Peso as of December 31, 2024, 2023 and 2022, were as follows:

Country	2024				2023				2022
	Closing		Average		Closing		Average		Closing		Average
Dollar		20.83		18.55		16.97		17.63		19.50		20.03
Euros		0.9654		0.9265		0.9059		0.9227		0.9344		0.9522
British Pound Sterling		0.7988		0.7819		0.7852		0.8019		0.8266		0.8139

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

25.3)	FINANCIAL INSTRUMENTS

Classification and measurement of financial instruments

The financial assets that meet both of the following conditions and are not designated as at fair value through profit or loss: a) are held within a business model whose objective is to hold assets to collect contractual cash flows, and b) its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, are classified as “Held to collect” and measured at amortized cost. Amortized cost represents the NPV of the consideration receivable or payable as of the transaction date. This classification of financial assets comprises the following captions:

•	Cash and cash equivalents (note 8).
•	Trade accounts receivable, other current accounts receivable and other current assets (notes 9, 10 and 12).<br>Due to their short-term nature, Cemex, S.A.B. de C.V. initially recognizes these assets at the original invoiced or transaction amount less expected credit losses, as explained below.
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•	Trade accounts receivable sold under securitization programs, in which certain residual interest in the trade<br>accounts receivable sold in case of recovery failure and continued involvement in such assets is maintained, do not qualify for derecognition and are maintained in the statement of financial position (notes 9 and 17.2).
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•	Investments and non-current accounts receivable (note 14). Subsequent<br>changes in effects from amortized cost are recognized in statement of operations as part of “Financial income and other items, net.”
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Certain strategic investments are measured at fair value through other comprehensive income within “Other equity reserves” (notes 14 and 25.10). Cemex, S.A.B. de C.V. does not maintain financial assets “Held to collect and sell” whose business model has the objective of collecting contractual cash flows and then selling those financial assets.

The financial assets that are not classified as “Held to collect” or that do not have strategic characteristics fall into the residual category of held at fair value through the statement of operations as part of “Financial income and other items, net,” (notes 7.2 and 14).

Debt instruments and other financial obligations are classified as “Loans” and measured at amortized cost (notes 17.1 and 17.2). Interest accrued on financial instruments is recognized within “Other current liabilities” against financial expense. During the reported periods, Cemex, S.A.B. de C.V. did not have financial liabilities voluntarily recognized at fair value or associated with fair value hedge strategies with derivative financial instruments.

Derivative financial instruments are recognized as assets or liabilities in the statement of financial position at their estimated fair values, and the changes in such fair values are recognized in the statement of operations within “Financial income and other items, net” for the period in which they occur, except in the case of hedging instruments as described below (notes 7.2 and 17.4).

Hedging instruments (note 17.4)

A hedging relationship is established to the extent the entity considers, based on the analysis of the overall characteristics of the hedging and hedged items, that the hedge will be highly effective in the future and the hedge relationship at inception is aligned with the entity’s reported risk management strategy (note 17.5). The accounting categories of hedging instruments are: a) cash flow hedge, b) fair value hedge of an asset or forecasted transaction, and c) hedge of a net investment in a subsidiary.

In cash flow hedges, the effective portion of changes in fair value of derivative instruments are recognized in stockholders’ equity within other equity reserves and are reclassified to earnings as the interest expense of the related debt is accrued, in the case of interest rate swaps, or when the underlying products are consumed in the case of contracts on the price of raw materials and commodities. In hedges of the net investment in foreign subsidiaries, changes in fair value are recognized in stockholders’ equity as part of the foreign currency translation gains and losses within other equity reserves (note 17.4), whose reversal to earnings would take place upon disposal of the foreign investment. Derivative instruments are negotiated with institutions with significant financial capacity; therefore, Cemex, S.A.B. de C.V. believes the risk of non-performance of the obligations agreed to by such counterparties to be minimal.

Impairment of financial assets

Impairment losses of financial assets, including trade accounts receivable, are recognized using the Expected Credit Loss model (“ECL”) for the entire lifetime of such financial assets on initial recognition, and at each subsequent reporting period, even in the absence of a credit event or if a loss has not yet been incurred, considering for their measurement past events and current conditions, as well as reasonable and supportable forecasts affecting collectability. For purposes of the ECL model of trade accounts receivable, on a country-by-country basis, Cemex, S.A.B. de C.V. segments its accounts receivable by type of client, homogeneous credit risk and days past due and determines for each segment an average rate of ECL, considering actual credit loss experience generally over the last 12 months and analyses of future delinquency, which is applied to the balance of the accounts receivable. The average ECL rate increases in each segment of days past due until the rate is 100% for the segment of 365 days or more past due.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

Costs incurred in the issuance of debt or borrowings.

Leases (notes 15.2, 17.2 and 25.5)

At the inception of a contract, Cemex, S.A.B. de C.V. assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if at the inception of the contract, conveys the right to control the use of an identified asset for a period in exchange for consideration. Pursuant to IFRS 16, leases are recognized as financial liabilities against assets for the right-of-use, measured at their commencement date as the NPV of the future contractual fixed payments, using the interest rate implicit in the lease or, if that rate cannot be readily determined, Cemex, S.A.B. de C.V.’s incremental borrowing rate. Cemex, S.A.B. de C.V. determines its incremental borrowing rate by obtaining interest rates from its external financing sources and makes certain adjustments to reflect the term of the lease, the type of the asset leased and the economic environment in which the asset is leased.

Cemex, S.A.B. de C.V. does not separate the non-lease component from the lease component included in the same contract. Lease payments included in the measurement of the lease liability comprise contractual rental fixed payments, less incentives, fixed payments of non-lease components and the value of a purchase option, to the extent that option is highly probable to be exercised or is considered a bargain purchase option. Interest incurred under the financial obligations related to lease contracts is recognized as part of the “Financial expense” line item in the statement of operations.

At the commencement date or upon modification of a contract that contains a lease component, Cemex, S.A.B. de C.V. allocates the consideration in the contract to each lease component based on their relative stand-alone prices. Cemex, S.A.B. de C.V. applies the recognition exception for lease terms of 12 months or less and contracts of low-value assets and recognizes the lease payment of these leases as rental expense in the statement of operations over the lease term. Cemex, S.A.B. de C.V. defined the lease contracts for office and computer equipment as low-value assets.

The lease liability is measured at amortized cost using the effective interest method as payments are incurred and is remeasured when: a) there is a change in future lease payments arising from a change in an index or rate, b) if there is a change in the amount expected to be payable under a residual guarantee, c) if the Parent Company changes its assessment of whether it will exercise a purchase, extension or termination option, or d) if there is a revised in-substance fixed lease payment. When the lease liability is remeasured, an adjustment is made to the carrying amount of the asset for the right-of-use or is recognized within “Financial income and other items, net” if such asset has been reduced to zero.

Embedded derivative financial instruments.

Cemex, S.A.B. de C.V. reviews its contracts to identify the existence of embedded derivatives. Identified embedded derivatives are analyzed to determine if they need to be separated from the host contract and recognized in the statement of financial position as assets or liabilities, applying the same valuation rules used for other derivative instruments.

25.4)	EQUITY ACCOUNTED INVESTEES (note 13)

Investments in controlled entities and in entities over which Cemex, S.A.B. de C.V. exercises significant influence, which are not classified as available for sale, are measured using the equity method.

25.5)	PROPERTY, MACHINERY AND EQUIPMENT AND RIGHT OF USE (note 15)

Property, machinery and equipment are recognized at their acquisition or construction cost, as applicable, less accumulated depreciation and impairment losses. Depreciation of property, machinery and equipment is recognized as part of cost and operating expenses (notes 4 and 5) and is calculated using the straight-line method over the estimated useful lives of the assets, except for mineral reserves, which are depleted using the units-of-production method. Periodic maintenance of fixed assets is expensed as incurred. Advances to suppliers of fixed assets are presented as part of other non-current accounts receivable.

Assets for the right-of-use related to leases are initially measured at cost, which comprises the initial amount of the lease liability adjusted by any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle, remove or restore the underlying asset, less any lease incentives received. Asset for the right-of-use are generally depreciated using the straight-line method from the commencement date to the end of the lease term. Asset for the right-of-use may be reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

Cemex, S.A.B. de C.V. capitalizes, as part of the related cost of fixed assets, interest expense from existing debt during the construction or installation period of qualifying fixed assets, considering Cemex, S.A.B. de C.V.’s corporate average interest rate and the average balance of investments in process for the period.

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

25.6)	IMPAIRMENT OF LONG-LIVED ASSETS (notes 13, 14 and 15)

Property, machinery and equipment, assets for the right-of-use and otherinvestments

These assets are evaluated for impairment upon the occurrence of internal or external impairments indicators. Impairment losses, corresponding to the excess of the asset’s carrying amount over its recoverable amount, are recorded within “Other income (expenses), net.” Recoverable amounts, which include the NPV of future projected cash flows arising from the asset over its useful life (value in use), are determined considering market economic assumptions.

Equity accounted investees

Equity accounted investees are tested for impairment when required due to significant adverse changes, by determining the recoverable amount of such investment, which consists of the higher of the investment in subsidiaries and associates’ fair value, less cost to sell and value in use, represented by the discounted amount of estimated future cash flows to be generated to which those net assets relate. Cemex, S.A.B. de C.V. initially determines its discounted cash flows over periods of 5 to 10 years, depending on the economic cycle. If the value in use of the equity accounted investees is lower than its corresponding carrying amount, the Parent Company determines the fair value of its investment using methodologies generally accepted in the market to determine the value of entities, such as multiples of Operating EBITDA and by reference to other market transactions. An impairment loss is recognized within “Other income (expenses), net,” if the recoverable amount is lower than the net book value of the investment.

25.7)	PROVISIONS (note 16)

Cemex, S.A.B. de C.V. recognizes provisions when it has a legal or constructive obligation resulting from past events, whose resolution would require cash outflows, or the delivery of other resources owned by the Parent Company. As of December 31, 2024 and 2023, some significant proceedings that gave rise to a portion of the carrying amount of Cemex, S.A.B. de C.V.’s other current and non-current liabilities and provisions are detailed in note 24.

25.8)	PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS (note 19)

Defined contribution pension plans

Defined benefit pension plans and other post-employment benefits

The costs associated with defined benefit pension plans and other post-employment benefits, the latter comprised of health care benefits, life insurance and seniority premiums, are recognized as services are rendered by the employees based on actuarial estimations of the benefits’ present value considering the advice of external actuaries. For certain pension plans, Cemex, S.A.B de C.V has created irrevocable trust funds to cover future benefit payments (“plan assets”). These plan assets are valued at their estimated fair value at the statement of financial position date. All actuarial gains and losses for the period, related to differences between the projected and real actuarial assumptions at the end of the period, as well as the difference between the expected and actual return on plan assets, are recognized as part of “Other items of comprehensive income, net” within stockholders’ equity.

Termination benefits

Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

25.9)	INCOME TAXES (note 20)

The income taxes reflected in the statement of operations include the amounts incurred during the period and the amounts of deferred income taxes, determined according to the income tax law applicable, reflecting any uncertainty in income tax treatments, and represent the addition of the amounts determined by applying the enacted statutory income tax rate at the end of the reporting period. According to IFRS, all items charged or credited directly in stockholders’ equity or as part of other comprehensive income or loss for the period are recognized net of their current and deferred income tax effects. The effect of a change in enacted statutory tax rates is recognized in the period in which the change is officially enacted.

Deferred income taxes

Deferred tax assets are reviewed at each reporting date and are derecognized when it is not deemed probable that the related tax benefit will be realized, considering the aggregate amount of self-determined tax loss carryforwards that Cemex, S.A.B. de C.V. believes will not be rejected by the tax authorities based on available evidence and the likelihood of recovering them prior to their expiration through an analysis of estimated future taxable income. To determine whether it is probable that deferred tax assets will ultimately be recovered, Cemex, S.A.B. de C.V. takes into consideration all available positive and negative evidence, including factors such as market conditions, industry analysis, expansion plans, projected taxable income, carryforward periods, current tax structure, potential changes or adjustments in tax structure, future reversals of existing temporary differences. Deferred income tax assets and liabilities relating to different tax jurisdictions are not offset.

Uncertain tax positions

The income tax effects of uncertain tax position are recognized when it is probable that the position will be sustained based on its technical merits and assuming that the tax authorities will examine each position and have full knowledge of all relevant information. For each position Cemex, S.A.B. de C.V. considers individually its probability, regardless of its relationship to any other broader tax settlement. The probability threshold represents a positive assertion by management that Cemex, S.A.B. de C.V. is entitled to the economic benefits of a tax position. If a tax position is considered not probable to be sustained, no benefits of the position are recognized. Interest and penalties related to unrecognized tax benefits are recorded as part of the income tax in the statement of income.

Effective income tax rate

The effective income tax rate is determined dividing the line item “Income tax” by the line item “Net income before income tax.” This effective tax rate is further reconciled to Cemex, S.A.B. de C.V.’s statutory tax rate applicable in Mexico (note 20).

25.10)	STOCKHOLDERS’ EQUITY

Other equity reserves and subordinated notes (note 21.3)

The most significant items within “Other equity reserves and subordinated notes” during the reported periods are as follows:

Items of “Other equity reserves and subordinated notes” included in the determination of other comprehensive income (loss):

•	The effective portion of the valuation and liquidation effects from derivative instruments under cash flow<br>hedging relationships, which are recorded temporarily in stockholders’ equity (note 25.3);
•	Changes in fair value of other investments in strategic securities (note 25.3); and
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•	Current and deferred income taxes during the period arising from items which effects are directly recognized<br>in stockholders’ equity.
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Items of “Other equity reserves and subordinated notes” not included in the determination ofother comprehensive income (loss):

•	Effects attributable to controlling stockholders’ equity for financial instruments issued by consolidated<br>subsidiaries that qualify for accounting purposes as equity instruments;
•	The balance of Subordinated Notes with no fixed maturity and any interest accrued thereof; and<br>
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•	The cancellation of Cemex, S.A.B. de C.V.’s shares held by consolidated entities or held in trust for the<br>liquidation of executive long-term share-based compensation.
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Cemex, S.A.B. de C.V.

Notes to the Parent Company-only Financial Statements

As of December 31, 2024, 2023 and 2022

(Millions of Mexican Pesos)

25.11)	EXECUTIVE SHARED-BASED COMPENSATION (note 22)

25.12)	CONCENTRATION OF CREDIT

Cemex, S.A.B. de C.V. sells its products primarily to distributors in the construction industry, with no specific geographic concentration within the country in which Cemex, S.A.B. de C.V. operates. As of and for the years ended December 31, 2024, 2023 and 2022, no single customer individually accounted for a significant portion of the reported amounts of sales or in the balances of trade receivables. In addition, there is no significant concentration of a specific supplier relating to the purchase of raw materials.

25.13)	NEWLY ISSUED IFRS NOT YET ADOPTED

There are several amendments or new IFRS issued but not yet effective which are under analysis by Cemex, S.A.B. de C.V. management and expected to be adopted on their specific effective dates. Cemex, S.A.B. de C.V. management has preliminarily determined that these amendments and new IFRS, summarized as follows, will have no significant effect on the Parent Company’s financial position or operating results:

Standard	Main topic	Effective date
Amendments to IAS 21, The Effects of Changes in Foreign Exchange Rates – Lack of<br>Exchangeability	The amendments require an entity to apply a consistent approach to assessing whether a currency is exchangeable into<br>another currency and when it is not, to determine the exchange rate to use and the disclosures to provide.	January 1,2025
Amendments to the Classification and Measurement of Financial Instruments – Amendments to<br>IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures	The amendments to IFRS 9 and IFRS 7 clarify the derecognition of financial liabilities on the settlement date, allow<br>accounting options for electronic settlements, and require additional disclosures for financial assets and liabilities with contingent terms, including Environmental, Social and Governance features.	January 1, 2026

In addition, IFRS 18, Presentation and Disclosure in Financial Statements, which replaces IAS 1 and is effective beginning January 1, 2027, introduces new categories and subtotals in the statement of profit or loss, requires disclosure of management-defined performance measures, and establishes new requirements for the location, aggregation, and disaggregation of financial information. Cemex, S.A.B. de C.V. is analyzing these changes in formats and presentation.

Independent auditors’ report

To the Board of Directors and Stockholders

CEMEX, S.A.B. de C.V.

Millions of Mexican pesos

Opinion

We have audited the separate financial statements of CEMEX, S.A.B. de C.V. (“the Company”), which comprise the separate statements of financial position as at December 31, 2024 and 2023, the separate statements of income, comprehensive income (loss), changes in stockholders’ equity and cash flows for the years ended December 31, 2024, 2023 and 2022, and notes, comprising material accounting policies and other explanatory information.

In our opinion, the accompanying separate financial statements present fairly, in all material respects, the unconsolidated financial position of the Company as at December 31, 2024 and 2023, and its unconsolidated financial performance and its unconsolidated cash flows for the years ended December 31, 2024, 2023 and 2022 in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (IFRS).

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors ’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in Mexico, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the separate financial statements of the current period. These matters were addressed in the context of our audit of the separate financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Valuation of the carrying amount of investments in subsidiaries

The key audit matter

How the matter was addressed in our audit

As discussed in note 13 to the separate financial statements, the balance of equity accounted investees as of December 31, 2024 is $370,998 which represented 82% of the total assets of the Company at such date and which is substantially comprised of the Company’s investment in its subsidiaries. We identified the valuation of the carrying amount of the Company’s investments in its subsidiaries as a key audit matter due to the judgment involved in the determination of whether an impairment triggering event has occurred.

Our audit procedures in this area included, among others: We have audited the consolidated financial statements of the Company and issued our audit opinion thereon on February 13th, 2025. When performing the audit of the consolidated financial statements we evaluated the analysis of goodwill impairment of the subsidiaries of the Company where we identified a higher risk. We used such analysis to assess if there are triggering events that could be indicative of impairment in the Company’s investments in its subsidiaries, and if the conclusions of the Company in this regard are appropriate.

Emphasis of Matter

As described in note 2, the accompanying separate financial statements have been prepared to be used by the Management of CEMEX, S.A.B. de C.V. as well as to comply with certain legal and tax requirements. The financial information therein does not include the consolidation of the financial statements of its subsidiaries, which have been accounted for under the equity method. In assessing the financial situation and results of the economic entity, we must refer to the consolidated financial statements of CEMEX, S.A.B. de C. V. and subsidiaries as of December 31, 2024 and 2023 and for the years ended December 31, 2024, 2023 and 2022, which were issued separately on February 13^th^, 2025 in accordance with IFRS. Our opinion is not modified in respect of this matter.

Responsibilities of Management and Those Charged with Governance for the Separate Financial Statements

Management is responsible for the preparation and fair presentation of the separate financial statements in accordance with IFRS Accounting Standards, and for such internal control as management determines is necessary to enable the preparation of separate financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the separate financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Company´s financial reporting process.

Auditors’ Responsibilities for the Audit of the Separate Financial Statements

Our objectives are to obtain reasonable assurance about whether the separate financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. ‘Reasonable assurance’ is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these separate financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:

•	Identify and assess the risks of material misstatement of the separate financial statements, whether due to<br>fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is<br>higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
•	Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are<br>appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
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•	Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and<br>related disclosures made by management.
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•	Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based<br>on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we<br>are required to draw attention in our auditors’ report to the related disclosures in the separate financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to<br>the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
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•	Evaluate the overall presentation, structure and content of the separate financial statements, including the<br>disclosures, and whether the separate financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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•	Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial<br>information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group<br>audit. We remain solely responsible for our audit opinion.
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From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the separate financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

KPMG Cárdenas Dosal, S.C.

LOGO

C.P.C. Arturo González Prieto

Monterrey, N.L.

February 17, 2025