Financial Data and Key Metrics Changes - In 2019, the company reported an EBITDA of $1.5 billion on shipments of 12.5 million tons, with an EBITDA margin of 15% [7][25] - Free cash flow reached $595 million, and net debt was reduced to $1.5 billion, resulting in a net debt-to-EBITDA ratio of 1 [8][39] - The proposed annual dividend was $1.20 per ADS, equating to a dividend yield of 6% and a payout ratio of 42% [8][40] Business Line Data and Key Metrics Changes - The fourth quarter EBITDA was $263 million, with an EBITDA margin of 12%, reflecting a low pricing environment in North America [26] - Shipments in Mexico decreased by 4% due to lower demand, but market share increased [14][30] - In Argentina, shipments decreased by 16% compared to 2018, with expectations for stability in 2020 [17][18] Market Data and Key Metrics Changes - Steel apparent consumption in Mexico decreased by 6%, primarily due to weak construction activity [13] - The Brazilian steel market showed signs of improvement, with local companies expected to increase slab purchases [22] - The overall steel shipments decreased by 5% sequentially in the fourth quarter and 2% year-over-year [33] Company Strategy and Development Direction - The company plans to complete expansion projects in Mexico and Colombia, including a new rebar mill in Colombia and a hot rolling mill in Mexico [24] - The ratification of the USMCA agreement is expected to reduce trade uncertainties and foster investment in the North American steel industry [16] - The company is considering both organic growth and potential M&A opportunities in the Americas [44][56] Management Comments on Operating Environment and Future Outlook - The management expects a gradual improvement in margins throughout 2020, with the fourth quarter being the lowest point [9][23] - The impact of the coronavirus outbreak on the steel market is currently unclear, but no significant effects are anticipated at this time [12] - The management is cautiously optimistic about the construction activity rebound in Mexico, expecting improvements in 2020 and stronger growth in 2021 [46][48] Other Important Information - The company will change the functional currency of its Argentine subsidiary to the U.S. dollar starting January 1, 2020, to reduce earnings volatility [38] - Capital expenditures in 2019 reached $1.1 billion, with expectations to remain high in 2020 at approximately $800 million [39] Q&A Session Summary Question: Long-term strategy and capital allocation - The company is focused on completing current investments and is analyzing future organic growth projects in Mexico, Colombia, and Brazil [54][56] Question: Construction activity rebound in Mexico - Management expects a slight improvement in 2020, with a more significant rebound anticipated in 2021 [46][48] Question: Capacity concerns in Mexico - The company believes it can manage increased capacity without issues due to strong demand and competitive cost structure [50][51] Question: EBITDA per ton expectations for the new facility in Colombia - The new facility is expected to improve margins by substituting imports and increasing production of high-end products [66] Question: Working capital sustainability - The company anticipates stable working capital levels, with no significant fluctuations expected in 2020 [75] Question: Price expectations for the first and second quarters - Prices are expected to improve in the second quarter, with higher volumes anticipated in the first quarter [114] Question: SG&A increase explanation - The increase was due to a new asset tax in Argentina and higher amortization costs related to a long-term contract [116][118]

Ternium – Fourth Quarter and Full Year 2019 Earnings Conference Call and Webcast 1 Fourth Quarter and Full Year 2019 Earnings Conference Call and Webcast February 19, 2020 Forward-Looking Statements This presentation contains certain forward-looking statements and information relating to Ternium S.A. and its subsidiaries (collectively, "Ternium") that are based on the current beliefs of its management as well as assumptions made by and information currently available to Ternium. Such statements reflect the ...

Ternium – Third Quarter and First Nine Months 2019 Earnings Conference Call and Webcast 1 Third Quarter and First Nine Months 2019 Earnings Conference Call and Webcast October 30, 2019 Forward-Looking Statements This presentation contains certain forward-looking statements and information relating to Ternium S.A. and its subsidiaries (collectively, "Ternium") that are based on the current beliefs of its management as well as assumptions made by and information currently available to Ternium. Such statements ...

Ternium S.A. (NYSE:TX) Q3 2019 Results Earnings Conference Call October 30, 2019 8:30 AM ET Company Participants Sebastián Martà - Investor Relations Director Máximo Vedoya - Chief Executive Officer Pablo Brizzio - Chief Financial Officer Conference Call Participants Caio Ribeiro - Crédit Suisse Jon Brandt - HSBC Carlos De Alba - Morgan Stanley Thiago Lofiego - BBI Timna Tanners - BoA Merrill Lynch Alex Hacking - Citi Operator Ladies and gentlemen, thank you for standing by. And welcome to the Ternium Third ...

Ternium – Second Quarter and First Half 2019 Earnings Conference Call and Webcast 1 Second Quarter and First Half 2019 Earnings Conference Call and Webcast July 31, 2019 Forward-Looking Statements This presentation contains certain forward-looking statements and information relating to Ternium S.A. and its subsidiaries (collectively, "Ternium") that are based on the current beliefs of its management as well as assumptions made by and information currently available to Ternium. Such statements reflect the cu ...

Ternium SA (NYSE:TX) Q2 2019 Earnings Conference Call July 31, 2019 8:00 AM ET Company Participants Sebastián Martà - IR Director Máximo Vedoya - CEO Pablo Brizzio - CFO Conference Call Participants Caio Ribeiro - Crédit Suisse Thiago Lofiego - Bradesco BBI Rodolfo Angele - JPMorgan Chase & Co. Juan Tavarez - Citigroup Carlos De Alba - Morgan Stanley Thiago Ojea - Goldman Sachs Group Gustavo Allevato - Santander Investment Securities Andreas Bokkenheuser - UBS Investment Bank Operator Good morning. My name ...

Ternium S.A. (NYSE:TX) Q1 2019 Earnings Conference Call May 2, 2019 8:45 AM ET Company Participants Sebastian Marti - Director of Investor Relations Maximo Vedoya - Chief Executive Officer Pablo Brizzio - Chief Financial Officer Conference Call Participants Carlos Alba - Morgan Stanley Caio Ribeiro - Credit Suisse Thiago Lofiego - BBI Jon Brandt - HSBC Timna Tanners - Bank of America Merrill Lynch Alfonso Salazar - Scotiabank Santiago Petri - Franklin Templeton Andreas Bokkenheuser - UBS Operator Good morni ...

Financial Performance - Net sales for 2018 reached $11,454.8 million, a 18.1% increase from $9,700.3 million in 2017[42] - Gross profit for 2018 was $2,971.5 million, up 29.3% from $2,297.3 million in 2017[42] - Operating income increased to $2,108.4 million in 2018, representing a 44.6% rise from $1,456.8 million in 2017[42] - Profit for the year attributable to owners of the parent was $1,506.6 million, a significant increase from $886.2 million in 2017[42] - Basic earnings per share for 2018 were $0.77, compared to $0.45 in 2017, reflecting a 71.1% increase[42] Assets and Liabilities - Total assets as of December 31, 2018, amounted to $12,547.9 million, up from $12,122.6 million in 2017[45] - Non-current assets increased to $8,121.8 million in 2018, compared to $7,727.3 million in 2017[45] - Current liabilities decreased to $1,826.5 million in 2018 from $2,827.3 million in 2017, indicating improved financial stability[45] Dividends - The company paid dividends of $0.120 per share in 2018, up from $0.110 in 2017[42] - The ability to pay dividends is contingent on the financial performance of subsidiaries, which could be restricted by legal and regulatory limitations[89] Market Risks - Ternium's sales may decline due to fluctuations in industry inventory levels, affecting demand for its products[58] - The company faces intense competition in the steel market, which could lead to declining margins and reduced sales volumes[60] - Price volatility and shortages of raw materials, such as iron ore and natural gas, could adversely impact Ternium's profitability[61] - Ternium relies on a limited number of key suppliers for essential inputs, which poses risks if these suppliers fail to deliver[62] - Labor disputes could lead to work stoppages, disrupting Ternium's operations and increasing costs[73] Acquisitions and Investments - Ternium has made significant acquisitions, including a $2.2 billion investment in Usiminas, which may not yield expected benefits[69] - As of December 31, 2018, Ternium's investment in Usiminas was valued at $480.1 million, subject to potential impairment charges[71] - Future acquisitions may not perform as expected, potentially impacting Ternium's operations and profits[64] Currency and Economic Factors - Ternium's operations are significantly affected by foreign currency exchange rate fluctuations, with a substantial portion of sales conducted in currencies other than the U.S. dollar, impacting financial results and net worth[74] - Economic conditions in Mexico significantly impact Ternium's revenues, with a majority of sales made in this market[94] - Inflation in Argentina reached 47.6% in 2018, adversely affecting Ternium Argentina's cost-competitiveness[107] - The Argentine government has increased taxes on companies, which could further burden Ternium's operations[108] - Brazil's political instability has historically influenced economic performance, contributing to market confidence issues[102] Regulatory and Compliance Issues - Regulatory changes in Mexico included a 30% corporate income tax and a 10% withholding tax on dividends[96][97] - Compliance with environmental regulations may increase operating costs and negatively impact Ternium's financial condition[115] - Ongoing negotiations related to greenhouse gas emissions could lead to new regulations affecting Ternium's operations[116] Production and Operations - Ternium is Latin America's leading flat steel producer with an annual crude steel production capacity of 12.4 million tons[127] - Ternium's aggregate production capacity of crude steel is approximately 12.4 million tons, while finished steel products capacity is around 11.3 million tons as of December 31, 2018[161] - The company operates through subsidiaries in multiple countries, including Mexico, Brazil, Argentina, Colombia, and the southern United States[127] - Ternium's production facilities include 12 steel production and processing units in Mexico, with a focus on serving the construction sector[165] Strategic Focus - The company plans to enhance its competitive position by focusing on higher margin value-added products and pursuing strategic growth opportunities[63] - Ternium's strategy focuses on enhancing shareholder value while consolidating its position as a leading steel producer in Latin America[145] - Ternium is focusing on higher margin value-added products, including cold-rolled sheets and coated products, and is building a new hot-dip galvanizing line and hot rolling mill in Pesquería, Mexico[27] Mining Operations - Ternium has a 100% interest in Las Encinas and a 50% interest in Consorcio Peña Colorada for iron ore production in Mexico[197] - The total capacity of Ternium's iron ore production facilities includes 4,500 tons per year from two crushing plants at Las Encinas and 18,000 tons from Consorcio Peña Colorada[198] - Ternium is exploring additional mining rights in Michoacán, Jalisco, and Colima, Mexico, to diversify its iron ore sources[208] Challenges and Risks - Ternium's exploration activities are speculative and may not yield expected results, potentially leading to substantial write-offs if deposits are not economically feasible[85] - The company faces risks related to unexpected natural and operational catastrophes, which could lead to environmental damage and significant liabilities[78] - Difficulties in relationships with local communities may adversely affect mining activities, as seen in past incidents where local actions disrupted operations[88]