building a STRONGER foundation - Cemex

For the year ended December 31, 2010, our net resources provided by operating activities included a net reduction in working
capital of approximately Ps100 million, which was primarily generated by increases in trade payables, other accounts payables and
accrued expenses and decreases in trade receivables and inventories of an aggregate amount of approximately Ps2.8 billion, partially
offset by increases in other accounts receivables and other assets for an aggregate amount of approximately Ps2.7 billion.
During 2010, our net resources used in financing activities of approximately Ps24.4 billion included payments of debt of
approximately Ps9.6 billion. The net resources provided by operating activities were disbursed mainly in connection with: a)
repayments of debt, as described above; b) capital expenditures of approximately Ps4.7 billion; and c) financial expenses paid in cash,
including perpetual instruments, of approximately Ps15.0 billion.
2009. During 2009, in nominal Peso terms and including the negative foreign currency effect of our initial balances of cash and
investments generated during the period of approximately Ps2.1 billion, there was an increase in cash and investments of continuing
and discontinued operations of Ps2.2 billion and Ps1.2 billion, respectively. This increase was generated by net cash flows provided by
operating activities, which after income taxes paid in cash of approximately Ps4.2 billion, amounted to approximately Ps34.8 billion,
and by net resources provided by investing activities of approximately Ps5.7 billion, which were partially offset by net resources used
in financing activities of approximately Ps37.1 billion.
For the year ended December 31, 2009, our net resources provided by operating activities included a net increase in working
capital of approximately Ps2.6 billion, which was mainly generated by decreases in trade payables and other accounts payable and
accrued expenses for an aggregate amount of approximately Ps10.6 billion, partially offset by decreases in trade receivables and other
accounts receivable and decreases in inventories for an aggregate amount of approximately Ps8.0 billion.
During 2009, our net resources used in financing activities of approximately Ps37.1 billion included new borrowings of
approximately Ps40.2 billion which, in conjunction with net resources provided by operating activities and resources obtained from
the sale of subsidiaries and affiliates of approximately Ps21.1 billion and the equity issuance of approximately Ps24.0 billion, were
disbursed mainly in connection with: a) debt repayments of approximately Ps76.0 billion; b) net losses realized in derivative financial
instruments of approximately Ps8.5 billion; c) capital expenditures of approximately Ps8.7 billion; d) financial expenses, including
perpetual instruments, for approximately Ps14.6 billion; and e) restructuring fees for approximately Ps8.4 billion.
The resources obtained during 2009 from the sale of subsidiaries and associates for approximately Ps21.1 billion principally
consisted of the sale of our Australian operations (see note 3B to our consolidated financial statements included elsewhere in this
annual report).
2008. During 2008, in nominal Peso terms and including the positive foreign currency effect of our initial balances of cash and
investments generated during the period of approximately Ps1.3 billion, there was an increase in cash and investments of continuing
and discontinued operations of Ps1.1 billion and Ps1.8 billion, respectively. This increase was generated by net cash flows provided by
operating activities, which after income taxes paid in cash of approximately Ps3.6 billion, amounted to approximately Ps41.3 billion,
which was partially offset by net resources used in investing activities of approximately Ps14.6 billion and by net resources used in
financing activities for approximately Ps23.7 billion.
For the year ended December 31, 2008, our net resources provided by operating activities included a net reduction in working
capital of approximately Ps1.3 billion, which was mainly generated by decreases in trade receivables resulting from our securitization
programs in Mexico and the U.S. and decreases in other accounts receivable and other assets for an aggregate amount of
approximately Ps4.7 billion, partially offset by increases in inventories and decreases in trade payables and other accounts payable and
accrued expenses for an aggregate amount of approximately Ps3.4 billion.
During 2008, our net resources used in financing activities of approximately Ps23.7 billion included new borrowings of
approximately Ps59.6 billion, which in conjunction with net resources provided by operating activities and resources obtained from
the sale of subsidiaries and affiliates of approximately Ps10.8 billion, were disbursed mainly in connection with: a) debt repayments of
approximately Ps63.2 billion; b) net losses realized in derivative financial instruments of approximately Ps9.9 billion; c) capital
expenditures for approximately Ps23.2 billion; and d) financial expenses, including perpetual instruments, for approximately Ps11.8
billion.
The resources obtained during 2008 from the sale of subsidiaries and affiliates for approximately Ps10,845 million principally
consisted of the sale of a 9.5% interest in Axtel, S.A.B. de C.V. (“AXTEL”), the sale/contribution of assets to our associate, Ready
Mix USA LLC, the sale of our operations in the Canary Islands and the sale of our operations in Italy, all of which occurred in 2008
and are detailed in notes 9A and 11A to our consolidated financial statements included elsewhere in this annual report.
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