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CEMEX, S.A.B. de C.V. (CEMEX) (NYSE: CX) today informed the Mexican Stock Exchange (Bolsa Mexicana de Valores) of a message sent
by the CEO of CEMEX to CEMEXS worldwide employees announcing further measures designed to mitigate the impact of the COVID-19 pandemic and to strengthen CEMEXs liquidity position.
CEMEX believes the world is going through an unprecedented time due to the COVID-19 pandemic and that
CEMEXs industry and CEMEX are no exception. CEMEX expects that construction activity across most of the markets in which CEMEX operates will be impacted for some time, before returning to pre-pandemic (COVID-19) levels.
CEMEX also believes that it is crucial that it responds in an agile manner to this
health crisis, focusing its efforts on the variables CEMEX can control. CEMEXs focus during these challenging times is on three priorities: first, to protect the health and safety of its employees and their families, customers, and
communities; second, to support its customers as much as possible in a responsible way; and third, to take decisions that protect the future of CEMEX.
In the past few weeks, CEMEX has applied strict hygiene protocols in all its operations and modified its manufacturing, sales, and delivery
processes to implement physical distancing intended to considerably reduce the possibility of contagion of COVID-19. CEMEX has also strengthened its liquidity position, mainly with funds from its committed
revolving credit facility and with proceeds from asset sales.
As a further measure to enhancing CEMEXs liquidity, CEMEX is
suspending its share repurchase program for the remainder of the year and, as previously informed, is not paying dividends during 2020.
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addition, CEMEX shall undertake the following temporary measures that CEMEX believes could save jobs, weather the crisis, and allow CEMEX to recover as soon as possible. Starting May 1st, 2020 and for a 90-day
period, in accordance with applicable laws and regulations:
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CEMEXs Chairman of the Board of Directors, CEO and the members of CEMEXs Executive Committee, along
with CEMEXs Board of Directors (starting the next CEMEX Board of Directors and Board Committees Meetings), have agreed to forgo 25% of their salaries or fees, respectively;
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CEMEX has asked its senior leadership team to voluntarily forgo 15% of their monthly salaries;
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CEMEX is asking all other salaried employees to voluntarily defer 10% of their monthly salary. The deferred
amount will be paid in full in December 2020; and
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For hourly employees, where applicable, CEMEX will work to mitigate the impact on jobs derived from any
operational shutdowns due to demand contraction or government mandates as a consequence of the current health and economic crisis.
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Also, with immediate effect, and for the next 90-days, CEMEX will suspend or reduce the following:
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Capital expenditures not related to managing the pandemic, with no exceptions;
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Budgeted operating expenses, in line with the evolution of demand per market in which CEMEX operates;
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Production and inventory levels in all our markets, in line with lower demand conditions; and
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Corporate and global networks activities that detract from CEMEXs business focus on managing the crisis and
their respective operations.
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During the next three months, CEMEX plans to focus all its efforts on managing the impact
of the COVID-19 pandemic on its production, commercial, and financial activities. CEMEX will continue to carefully monitor this overall situation and expects to take additional steps, as could be required.
This report contains forward-looking statements and information within the meaning of the U.S. federal securities laws. CEMEX, S.A.B.
de C.V. and its direct and indirect subsidiaries (the Company) intend for these and any other forward-looking statements to be covered by the safe harbor provisions for forward-looking statements in the U.S. federal securities laws. In
some cases, these statements can be identified by the use of forward-looking words such as may, assume, should, could ,continue, would, can, consider,
anticipate, estimate, expect, plan, believe, foresee, predict, potential, guidance, target, strategy and
intend or other similar words. These forward-looking statements reflect the Companys current expectations and projections about future events based on the Companys knowledge of present facts and circumstances and assumptions
about future events, as well as the Companys current plans based on such facts and circumstances. These statements necessarily involve risks and uncertainties that could cause actual results to differ materially