Financial Data and Key Metrics Changes - Ternium reported an adjusted EBITDA of $545 million for Q2 2024, maintaining a 12% margin despite a weak steel price environment [4][17] - The company generated strong cash from operations amounting to $656 million, maintaining a solid net cash position of $1.9 billion even after record dividend distributions [4][22] - Net income was negatively impacted by a $783 million provision related to ongoing litigation concerning Usiminas, with adjusted net income decreasing to $40 million [5][18] Business Line Data and Key Metrics Changes - Shipments in Mexico experienced a slight decline in Q2, affected by a downturn in steel prices and a tropical storm [19] - In Brazil, shipments increased by 6% across all segments, particularly in the automotive and manufacturing sectors [19][13] - The mining segment's net sales remained stable, with volume and revenue per ton steady in Q2 [21] Market Data and Key Metrics Changes - The steel market in Mexico remains healthy, with a 14% year-over-year increase in apparent steel consumption last year [8] - Automotive production in Mexico increased by 5% year-over-year in the first half of 2024, indicating strong demand in the industrial steel market [8] - U.S. exports of finished steel to Mexico rose by 7% in the first five months of 2024, while Mexican exports to the U.S. decreased by 12% [11] Company Strategy and Development Direction - Ternium is focused on expanding its capabilities in the USMCA region, with significant projects underway, including a new 2.6 million tons steel slab mill expected to be completed by mid-2026 [8][6] - The company aims to enhance its product offerings in high-end steel products for automotive, renewable energy, and construction sectors, leveraging new finishing lines and R&D initiatives [7][6] - Ternium is committed to sustainability, with ongoing climate change initiatives, including the construction of a wind farm in Argentina [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about Ternium's performance in the upcoming quarters, anticipating a bottoming of margins in Q3 followed by growth in shipments and margins as steel prices begin to rise [16][56] - The company noted that the steel market is influenced by external factors, including excess production from China, but sees robust demand in both the U.S. and Mexico [27][42] - Management highlighted the importance of the USMCA agreement, emphasizing mutual benefits for the U.S. and Mexico [44] Other Important Information - Ternium's technical school in Pesqueria has been recognized for its positive impact on communities and sustainability, graduating over 600 students since its establishment [15] - The company is actively defending its position in ongoing litigation related to Usiminas, with plans to file all available motions and appeals [5][6] Q&A Session Summary Question: Update on HRC prices in the U.S. and MUSA expansion - Management noted that HRC prices in the U.S. have stabilized around $700 per metric ton, with indications of a potential rebound [26] - The decision on the MUSA project is expected by the end of next year, with ongoing engineering and project scope work [29] Question: Status of U.S. import tariffs and Usiminas lawsuit - Management confirmed that the 25% import tariff exemption for Brazilian steel is considered official, although implementation details are still being finalized [31] - The ongoing judicial process regarding the CSN lawsuit is complex, and management prefers not to comment further at this time [32] Question: Demand recovery and potential risks from U.S. elections - Management indicated a pickup in demand in Mexico, with clients returning to purchase as prices stabilize [42] - Concerns about the USMCA's future were addressed, with management expressing confidence in the agreement's benefits for all parties involved [44] Question: Siderar's operating loss and future profitability - Management acknowledged that Siderar faced challenges in Q2 due to low volumes and increased costs, but expects a recovery in the coming quarters [46][47] Question: Dividend policy and slab pricing - Management sees no reason to change the current dividend policy, citing strong free cash flow and a solid financial position [51] - Ternium is a net buyer of slabs, and the Brazilian operations can operate efficiently even at lower slab prices [53]

Financial Data and Key Metrics - Adjusted EBITDA for Q1 2024 was $655 million, up 31% from the previous quarter, with an adjusted EBITDA margin of 17% [21] - Net cash increased to $2 billion as of the end of March 2024 [5] - Net income and earnings per ADS showed significant strength in Q1, partially offset by losses from divestment of certain assets and sovereign bond holdings [23] - Cash flow from operations was healthy despite a $266 million increase in working capital due to higher inventories and receivables [31] Business Line Performance - Mexico operations remained strong, with slight sequential volume decline due to transitory re-stocking but strong demand from industrial customers [24] - Brazil saw stable steel shipments, with a year-over-year increase due to the consolidation of Usiminas [25] - Argentina experienced a sharp decline in shipments due to government economic stabilization measures, but a gradual recovery is expected starting in Q2 [14][25] - Usiminas in Brazil improved operational efficiency, with lower steel production costs following the restart of its main blast furnace [12] Market Performance - Nearshoring in North America is intensifying, benefiting Ternium's operations in Mexico due to geographical proximity and lower logistics costs [5] - Brazil's steel consumption improved slightly, driven by lower interest rates, improved consumer confidence, and infrastructure projects [6] - Argentina's medium-term outlook remains uncertain, but recovery is anticipated in agribusiness, energy, and mining sectors [14] Strategic Direction and Industry Competition - Ternium is focusing on upstream and downstream projects at its industrial center, with the first stage expected to come online in 2024 [15] - The company aims to benefit from nearshoring, advance its CO2 emissions roadmap, and strengthen its competitive position in the Mexican steel market [16] - Usiminas has set a decarbonization goal to reduce Scope 1 and 2 emissions intensity by 15% by 2030 [13] - New tariffs in Mexico and Brazil aim to level the playing field against unfair competition, particularly from China [10][11] Management Commentary on Operating Environment and Future Outlook - Management highlighted strong performance across all regions despite macroeconomic challenges [4] - Nearshoring trends and new tariffs in Mexico are seen as positive developments for the company [5][10] - Argentina's recovery is expected to be gradual, with significant uncertainty remaining [14][39] - The company anticipates a sequential increase in shipments in Q2, driven by positive trends in industrial demand [9] Other Important Information - Ternium refined its operational segments to reflect the integration of Usiminas operations, with new segments including steel and mining [19] - The company recorded a $56 million gain related to the readjustment of electricity transmission costs in Mexico [21] - Usiminas announced a decarbonization roadmap, with plans to reduce emissions intensity by 15% by 2030 [13] Q&A Session Summary Question: Clarification on the $56 million gain related to electricity transmission charges in Mexico - The gain was due to a reversal of overpaid charges from previous periods, now reflected as an operational item [38] Question: Outlook for Argentina's recovery and bond holdings - Argentina's recovery is expected to be gradual, with a 20% decline in Q2 compared to the previous year, but a 25% increase sequentially [39] - The company sold bonds received as payment from Argentina, with no further impact expected in future quarters [41][43] Question: Impact of new tariffs in Brazil and blast furnace outage - The new tariffs are a positive step but may not be sufficient to fully address unfair trade practices from China [48] - The blast furnace outage in Brazil is being resolved, with no significant impact expected on shipments or costs [50] Question: Guidance on pricing and costs - Lower prices are expected in most markets, with stable costs due to a mix of factors including slab purchases and iron ore price changes [56][57] Question: Capital allocation and dividend policy - Ternium has increased dividends and plans to sustain the current level, considering ongoing CapEx plans [66] - No specific new investment opportunities outside Mexico are currently being pursued [69]

Market Dynamics - In 2023, there was a 42% surge in the import of flat steel products in Brazil compared to 2022, primarily due to low-priced steel imports from China, adversely affecting Brazilian domestic steel production[43]. - Steel prices have shown significant volatility, with US prices of hot-rolled coils dropping to USD 485 per ton in 2020, peaking at USD 2,135 per ton in 2021, and fluctuating throughout 2022 and 2023[39]. - The steel industry is experiencing a contraction in global steel consumption in 2023 due to economic factors, including the Russian invasion of Ukraine and tightened monetary conditions by central banks[37]. - A downturn in global or regional economic activity could significantly impact steel demand, adversely affecting Ternium's business and results of operations[38]. - The steel industry faces intense competition, which could lead to declining margins and reduced shipments for Ternium[45]. - Price fluctuations and disruptions in the supply of raw materials could adversely affect Ternium's profitability, especially with the ongoing geopolitical tensions impacting supply chains[47]. - Ternium's operations are significantly affected by the security situation in regions where it operates, potentially leading to increased operational costs and delays in growth plans[120]. - Ongoing trade tensions and potential tariffs on steel exports to the U.S. could adversely affect Ternium's operations and investment climate in Mexico[123]. Business Strategy and Investments - Ternium's business strategy includes significant investments, such as the construction of a new steelmaking facility and a direct reduction unit in Pesquería, along with a new port facility for raw material handling[51]. - Ternium's expansion plan in Mexico includes a steelmaking facility and other production lines with a total cost of approximately $3.5 billion, expected to start-up gradually from 2024 to 2026[54]. - The company has made two large acquisitions in the past decade, including a stake in Usiminas, Brazil's largest flat steel producer, and CSA, a Brazilian steel slab producer[51]. - Ternium's annual production capacity increased to 12.4 million tons after acquiring a steel producer in Brazil, representing a 70% increase[210]. - Ternium's new downstream project in Pesquería Industrial Center includes a push-pull pickling line and new finishing lines, expected to be commissioned in the second half of 2024, with a hot-dip galvanizing line starting operations by the end of 2025 and a cold-rolling mill in the first half of 2026[203]. Financial Performance and Risks - Ternium recorded a $1.1 billion non-cash net loss due to increased participation in Usiminas, including a $935 million loss related to prior stakes and a $171 million loss from purchase price allocation[58]. - The company may face significant charges to earnings if it reassesses goodwill or other long-lived assets, which could adversely affect its results and net worth[56]. - Ternium's ability to recover increased costs of raw materials through higher selling prices may take an extended period, affecting its operating results[40]. - Ternium's financial results could be negatively impacted by tax disputes and changes in applicable tax laws across various jurisdictions[102][103]. - Ternium's ability to pay dividends is contingent on the financial performance of its subsidiaries, which may be restricted by local regulations and economic conditions[107][108]. Geopolitical and Regulatory Environment - Ternium's operations are exposed to geopolitical risks that could disrupt supplier operations and affect growth opportunities and profitability[54]. - Compliance with the USMCA's "melted and poured" manufacturing requirements is crucial for Ternium's competitiveness, with potential impacts on profitability if delayed[55]. - Recent changes in Mexico's energy regulations could impact the cost and supply of electricity, affecting Ternium's operations[116][119]. - The Mexican government raised temporary import tariffs on steel products from 15% to 25% for imports from countries without trade agreements, impacting Ternium's cost structure[150]. - The Brazilian Congress approved significant changes to the tax regime in 2023, potentially impacting Ternium's cash flow and profitability[142]. Environmental and Sustainability Initiatives - Ternium aims to reduce carbon dioxide emissions intensity in its steelmaking operations by 20% by 2030, using a 2018 baseline[180]. - The company is exploring additional initiatives to achieve carbon neutrality as part of its decarbonization roadmap[180]. - Ternium's commitment to environmental sustainability includes standardized EHS management systems and significant resource allocation to EHS projects[182]. - Ternium's environmental management system is certified under ISO 14001 and ISO 50001, ensuring compliance with environmental laws and regulations[215]. - The introduction of new carbon pricing mechanisms could increase Ternium's production costs, affecting profitability[169]. Operational Challenges - Labor disputes could lead to work stoppages, negatively impacting Ternium's operations and results[62]. - Changes in foreign currency exchange rates could adversely affect Ternium's business, as a significant portion of transactions is conducted in currencies other than the U.S. dollar[63]. - Ternium's operations in water-stressed areas may face challenges due to water shortages and increased costs, particularly in Mexico[78]. - Ternium's mining operations are subject to risks including operational accidents, environmental pollution, and potential liabilities from toxic torts and natural resource damages[83][85]. - Ternium's mining operations in Mexico face significant risks due to increasing violence and crime, which could lead to temporary or permanent shutdowns[100][101][120]. Community and Social Responsibility - Ternium has built and operates a technical school in Mexico and is constructing another in Brazil to support local education and welfare[183]. - Ternium's community programs focus on education, culture, volunteer work, and health, aiming to foster sustainable community growth[220]. - Ternium's ProPymes program has supported small and medium-sized enterprises in the steel value chain for over 20 years, enhancing competitiveness[202]. Technological Advancements - Ternium has invested in state-of-the-art technologies to enhance its product research and development infrastructure, particularly in the high-end steel segment[203]. - Ternium's digital marketplace, "Ternium Activo," integrates processes with customers and suppliers, improving management efficiency[211].

Financial Data and Key Metrics Changes - Adjusted EBITDA for Q4 2023 was $651 million, a 7% decline from Q3 2023, primarily due to lower steel prices, partially offset by lower costs [21] - Adjusted EBITDA margin remained constant at 13%, affected by the consolidation of Usiminas, which recorded low profitability [10] - Net income increased sequentially, driven by gains from reversals of post-retirement liabilities and a favorable effect from the devaluation of the Argentine peso [12] Business Line Data and Key Metrics Changes - Shipments in Mexico grew by 22% in 2023, indicating substantial market share gain, supported by the ramp-up of the new hot rolling mill in Pesqueria [6][22] - Usiminas' mining operation achieved an all-time high of 9.1 million tons in 2023, but is expected to face challenges in H1 2024 due to temporary stoppages [18] - Steel shipments in Argentina decreased by 7% in Q4 2023 due to government restrictions affecting production rates [11] Market Data and Key Metrics Changes - Mexico's flat steel consumption reached an all-time high of over 18 million tons in 2023, with a yearly increase of 18% [6] - Automotive production in Mexico increased by 14% in 2023, reaching 3.8 million units, contributing to strong industrial activity [6] - Demand in Argentina is expected to decrease by around 10% in 2024 due to macroeconomic reforms and recessionary effects [60] Company Strategy and Development Direction - The company is focused on implementing its strategic plan, which includes the largest growth initiative in its history, particularly in Mexico [9] - The new downstream project in Pesqueria aims to integrate higher value-added products, with a total investment of $3.5 billion, up 9% from initial estimates [39] - The company is exploring opportunities for productivity improvements at Usiminas, with a focus on enhancing efficiency and reducing costs [18] Management's Comments on Operating Environment and Future Outlook - Management anticipates lower costs per ton and slightly higher revenue per ton to improve margins in 2024 [10] - The nearshoring of manufacturing capacity in Mexico is expected to contribute positively to economic activity [17] - The new government in Argentina is expected to introduce significant macro reforms, which may initially have a recessionary effect but are seen as positive for the medium to long term [40] Other Important Information - The company proposed an annual dividend of $3.30 per ADS, marking a significant year-over-year increase and the highest annual dividend on record [16][25] - Ternium maintained a solid net cash position of $1.9 billion by the end of 2023, despite a decline due to the devaluation of Argentine bonds [24] Q&A Session Summary Question: What are the expectations for long-term EBITDA margins with the new downstream lines at Pesqueria? - Management indicated that the projects are aimed at sustaining and increasing EBITDA margins, but specific numbers are difficult to provide due to market price fluctuations [35][36] Question: What is the timeline for decisions regarding Usiminas mining operations? - Management stated that there is at least a two-year window to make decisions regarding the mining project, with current operations expected to continue until 2028-2029 [37] Question: What are the expectations for demand in Argentina following the peso devaluation? - Demand is forecasted to decrease by around 10%, but infrastructure projects related to oil and gas are expected to continue [60] Question: Will there be further CapEx revisions for the Pesqueria project? - Management confirmed that the current CapEx estimate is accurate, with increases attributed to inflation and currency fluctuations [63] Question: What is the outlook for dividends moving forward? - Management expressed confidence that the proposed dividend of $3.30 is sustainable and represents a new base for future increases [86]

Maximo Vedoya Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Thank you. I would now like to turn the call back over to Ternium's CEO for closing remarks. Please go ahead. Thank you. And thank you all very much for participating on today's call. As usual, feel free to contact us if you have any questions. Thank you again, and goodbye. Operator Company Participants Carlos de Alba - Morgan Stanley Timna Tanners - Wolfe Research Gabriel Simões - Goldman Sac ...

Yeah, is it better? Yeah, it's better. Much better. Yeah. Okay. So, sorry about that, guys. Yeah. No worries. So, the first question is a little bit more conceptual, Maximo. I mean, everyone has been following the story for many years, right? And now with Usiminas being consolidated, you guys obviously made a move some years ago with CSA, which is now Ternium Brazil, which is also super relevant. Just again, I know there's no decision and this is all very conceptual, but would it make any sense, I mean, do ...

Ternium S.A. (NYSE:TX) Q1 2023 Earnings Call Transcript April 26, 2023 8:00 AM ET Company Participants Sebastian Marti - Investor Relations Maximo Vedoya - Chief Executive Officer Pablo Brizzio - Chief Financial Officer Conference Call Participants Caio Greiner - BTG Pactual Caio Ribeiro - Bank of America Timna Tanners - Wolfe Research Thiago Lofiego - Bradesco Carlos Alba - Morgan Stanley Operator Ladies and gentlemen, thank you for standing by. And welcome to the Ternium First Quarter 2023 Results Call. I ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the fiscal year ended 31 December 2022 Washington, D.C. 20549 FORM 20-F (Mark One) ☐ Registration statement pursuant to Section 12(b) or 12(g) of the Securities Exchange Act of 1934 or or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 or ☐ Shell company report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 193 ...

FORM 6 - K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a - 16 or 15d - 16 of the Securities Exchange Act of 1934 As of 3/30/2023 Ternium S.A. (Translation of Registrant's name into English) Ternium S.A. 26, Boulevard Royal, 4th floor L-2449 Luxembourg (352) 2668-3152 (Address of principal executive offices) Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40- F. Form 20-Fa Form 40-F __ I ...

Ternium S.A. (NYSE:TX) Q4 2022 Earnings Conference Call February 15, 2023 8:00 AM ET Company Participants Sebastian Marti - Global IR and Compliance Senior Director Maximo Vedoya - CEO Pablo Brizzio - CFO Conference Call Participants Caio Greiner - BTG Pactual Timna Tanners - Wolfe Research Isabella Vasconcelos - Bradesco BBI Alfonso Salazar - Scotiabank Alex Hacking - Citi Operator Good morning, my name is Rob and I'll be your conference operator today. At this time. I would like to welcome everyone to the ...