Cemex 2008

FOCUS

2008 ANNUAL REPORT

CEMEX is a global building materials company that provides high-quality products and reliable service to customers and communities in more than 50 countries throughout the world. CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future.

TABLE OF CONTENTS: Letter to stockholders [2] Financial highlights [5] Focus on customers [6] Focus on operating flexibility [8] Focus on financial flexibility [10] Selected consolidated financial information [12] Management discussion and analysis [14] Financial statements [25] Board of directors [90] Management team [91] Terms we use [92] Investor and media information [93]

Tough times

call for tough

actions

We are intensely focusing our efforts on the variables we can control.

1

letter to our

Dear fellow stockholders:

2008 was a tumultuous year. The unprecedented financial and economic crisis that started in the United States spread to Europe, Asia, and other global markets, negatively affecting companies and industries worldwide. Many of our most important markets contracted faster and further than anyone anticipated, while competitive and cost pressures continued to grow. Consequently, after more than a decade of doubledigit growth, our results fell significantly short of our goals. Our diversified portfolio and the supply-demand dynamics in most of our markets partially compensated for the downturn in the United States, Spain, and the United Kingdom and higher input costs. For the year, our net sales held steady at US$21.7 billion. Our EBITDA decreased 5 percent to US$4.3 billion. And our free cash flow after maintenance capital expenditures increased 1 percent to US$2.6 billion. Turbulent times require decisive measures. To adapt quickly to changing market conditions, we have aggressively implemented an action plan to regain our...