building a STRONGER foundation - Cemex

(4) CEMEX, S.A.B. de C.V. and Centro Distribuidor de Cemento, S.A. de C.V. indirectly hold 100% of New Sunward through
other intermediate subsidiaries.
(5) Includes the interest of New Sunward, CEMEX, S.A.B. de C.V. and other subsidiaries of the group.
(6) Includes approximate 99.63% interest pledged as part of the Collateral.
(7) Includes CEMEX España’s 69.39% interest and the CEMEX France Gestion (S.A.S.) 30.61% interest.
(8) Formerly RMC.
(9) EMBRA AS is an operational company and also the holding company for operations in Finland, Norway and Sweden.
(10) Includes CEMEX Asia Holdings’ 70% economic interest and the 30% interest of CEMEX España.
(11) Represents CEMEX Asia Holdings’ indirect economic interest.
(12) Represents our economic interest in three UAE companies, CEMEX Topmix LLC, CEMEX Supermix LLC and CEMEX
Falcon LLC. We own a 49% equity interest in each of these companies, and we have purchased the remaining 51% of the
economic benefits through agreements with other shareholders.
(13) Includes CEMEX (Costa Rica) S.A.’s 98% interest and CEMEX España’s 2% indirect interest.
(14) Registered business name is CEMEX Ireland.
(15) On June 18, 2008, the Government of Venezuela promulgated a Nationalization Decree, mandating that the cement production
industry in Venezuela be reserved for the Government of Venezuela. On August 18, 2008, an Expropriation Decree was issued
by the President of Venezuela.
(16) As of December 4, 2009, Dalmacijacement d.d. changed its name to CEMEX Hrvatska d.d.
(17) Represents our 33.95% interest in ordinary shares and our 11.64% interest in preferred shares.
North America
For the year ended December 31, 2010, our business in North America, which includes our operations in Mexico and the United
States, represented approximately 40% of our net sales before eliminations. As of December 31, 2010, our business in North America
represented approximately 48% of our total installed cement capacity and approximately 55% of our total assets. With the acquisition
of Rinker, our North American operations increased significantly.
Our Operations in Mexico
Overview. Our operations in Mexico represented approximately 23% of our net sales in Peso terms, before eliminations
resulting from consolidation, for the year ended December 31, 2010, and approximately 12% of our total assets as of December 31,
2010.
As of December 31, 2010, we owned 100% of the outstanding capital stock of CEMEX México. CEMEX México is a direct
subsidiary of CEMEX, S.A.B. de C.V. and is both a holding company for some of our operating companies in Mexico and an
operating company involved in the manufacturing and marketing of cement, plaster, gypsum, groundstone and other construction
materials and cement by-products in Mexico. CEMEX México, indirectly, is also the holding company for our international
operations. CEMEX México, together with its subsidiaries, accounts for a substantial part of the revenues and operating income of our
operations in Mexico.
In September 2006, we announced a plan to construct a new kiln at our Tepeaca cement plant in Puebla, Mexico. The current
production capacity of the Tepeaca cement plant is approximately 3.3 million tons of cement per year. The construction of the new
kiln, which is designed to increase our total production capacity in the Tepeaca cement plant to approximately 7.4 million tons of
cement per year, is expected to be completed in 2013. We anticipate spending a total of approximately U.S.$570 million on the
construction of this new kiln, which includes capital expenditures of approximately U.S.$303 million in 2008, approximately U.S.$30
million in 2009 and approximately U.S.$1 million in 2010. In addition, we expect to spend approximately U.S.$2 million in 2011 and
approximately U.S.$108 million thereafter. We expect that this investment will be fully funded with free cash flow generated during
the construction period.
In 2001, we launched the Construrama program, a registered brand name for construction material stores. Through the
Construrama program, we offer to an exclusive group of our Mexican distributors the opportunity to sell a variety of products under
the Construrama brand name, a concept that includes the standardization of stores, image, marketing, products and services. As of
December 31, 2010, approximately 900 independent concessionaries with more than 2,500 stores were integrated into the
Construrama program, with nationwide coverage.
The Cement Industry in Mexico. According to INEGI, Mexico’s construction GDP remained flat in 2010 compared to 2009. For
the full year 2010, total construction investment increased 0.7%, primarily as a result of a 6% increase in infrastructure spending,
offset by an estimated decrease in the residential and non-residential sectors of 1.5% and 4.0%, respectively.
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