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Business Strategy

We have built a portfolio of assets with sustainable, profitable, long-term growth potential. Looking forward, we will:


Focus on our core business of cement, ready-mix concrete, and aggregates »

Our geographically diverse portfolio of cement, ready-mix concrete, and aggregates assets well position us for the expected recovery of key construction markets, providing us with the opportunity for significant organic growth over the medium and long term.

By managing our cement, ready-mix concrete, and aggregates assets as one integrated business rather than as distinct businesses, we further improve their efficiency and profitability.

Provide our customers with the best value proposition »

We always work to provide superior building solutions in the markets we serve. To this end, we customize our products and services to meet our customers’ needs in all major construction segments, including the residential, commercial, industrial, and infrastructure sectors.

We also see abundant opportunities to deepen our customer relationships by focusing on more vertically integrated building solutions rather than separate products. By developing our integrated offerings, we can provide customers with more reliable, higher-quality service and more consistent product quality.

Regain our financial flexibility »

While we continually look to produce disciplined profitable growth over the short, medium, and long term, our near-term priority is to regain our financial flexibility—which is the key to our future growth. To that end, we reduced our total debt, including our perpetual notes, by more than US$1.4 billion in 2010. Moreover, we have reduced our total debt plus perpetual notes by US$4.5 billion since mid 2009. As part of that, we have paid—ahead of schedule—more than one third of the US$15 billion that we refinanced under our Financing Agreement last year. Hence, we have substantially addressed our maturities under this agreement until December 2012.

Maximize our operating efficiency »

We constantly look for ways to reduce our costs and maximize our operating efficiency. In a rapidly changing, challenging global business environment, we continually adapt our global operations network to meet current market dynamics. We continue to rightsize our business, particularly in the U.S. and Spain, and seize every opportunity to drive down costs at both the operating and corporate levels. As a result of our efforts, we achieved our cost saving target of US$150 million this year, while providing superior products and services to our customers. In addition to our global cost-reduction and rightsizing initiatives, we are optimizing our business structure, processes, and practices to make CEMEX a leaner, more agile, and flexible company.

Foster our sustainable development »

At CEMEX, sustainability is incorporated in our strategy and our day-to-day operations. Our goal is to provide building solutions that meet the needs of a resource-constrained world, to minimize the ecological footprint of our operations, and to foster closer relationships with all of our relevant stakeholders.

Among our priorities, we look to take the lead in sustainable construction through the development of products, services, and building solutions for a low-carbon economy. We also actively participate in low-income housing programs and high-scale infrastructure projects.

Moreover, as part of our efforts to reduce our ecological footprint, we increase our use of alternative fuels and raw materials, improve our energy efficiency, and contract renewable power where feasible. Additionally, we optimize air quality, waste management, and recycling; diminish disturbances from noise and dust; and implement biodiversity action plans at our quarries.

Furthermore, we engage our key stakeholders. In particular, we place a high priority on the health and safety of our employees, our contractors and our communities. We are committed to helping develop our local communities, and we collaborate with governments, NGO’s, and opinion leaders to anticipate and address emerging social demands.


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Alignment with investor interests

Employee stock-ownership plan

To better align our executives’ interests with those of our stockholders, we began offering executives a new stock-ownership program in 2005. The plan moves our company’s long-term incentives from stock options to programs based on restricted stock, which is more highly valued by our executives and stockholders.

As of December 31, 2010, our executives held 29,631,025 restricted CPOs, representing 0.3% of our total CPOs outstanding.

Corporate governance

We are committed to the highest standards of corporate governance. Our company’s board of directors is composed of qualified directors who provide appropriate oversight. The requirement of independence of the audit committee members satisfies applicable law, and one member of our audit committee meets the requirements of a “financial expert” as defined by the Sarbanes-Oxley Act of 2002 (SOX).

We also have designed and deployed 1) a formal internal process to support the certification by our chief executive officer and our executive vice president of planning and finance of the information that we present in CEMEX’s periodic reports to the U.S. Securities and Exchange Commission; 2) a system to ensure that relevant information reaches senior management in a timely manner; 3) a system for anonymously and confidentially communicating to the audit committee complaints and concerns regarding accounting and audit issues; 4) a process for anonymously and confidentially submitting complaints related to unethical conduct and misuse of assets; and 5) a task force to follow legal requirements and best corporate-governance practices and, when appropriate, propose further improvements. Our code of ethics reflects the requirements of SOX.

We are in compliance with the applicable sections of SOX, including section 404.

Learn more about CEMEX Corporate Governance

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