Today we are announcing an important transaction under our ‘Stronger CEMEX’ plan that is in line with our ongoing effort to rebalance our portfolio; reduce our debt; and, strengthen our path to regain investment grade.

Within this context, I would like to share with you that we have signed an agreement with the German building materials group SCHWENK for the sale of all our assets in the Baltics and Nordics for approximately €340 million. This represents a multiple of approximately 13 times EV/EBITDA.

In Latvia, the transaction includes one cement plant, four aggregates quarries, two cement quarries, six ready-mix plants, one marine terminal and one land distribution terminal. It also includes our approximate 38% interest in one cement production plant in Lithuania. In addition, the exports business to Estonia is also included.

The Nordic assets being divested consist of three import terminals in Finland; four import terminals in Norway, and four import terminals in Sweden.

We currently expect to close the transactions during the first quarter of 2019, which is still conditional to the all the necessary approvals by the corresponding competition authorities.

This is an important step in our efforts to optimize our portfolio and improve our returns on capital. As a company, we continue to move in the right direction, reinforcing our path to becoming a Stronger CEMEX and continue adding value to all our stakeholders.

I am aware that these series of transactions can create uncertainty in some of our colleagues, especially in the countries involved, but I count on your ongoing support to make the transition phase as smooth as possible.

As always, thank you for your support and continuous engagement.

Fernando Gonzalez