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Ternium I November 20201As of November 4, 2020
Investor PresentationNovember 2020
Ternium I November 20202
Forward-Looking Statements
This presentation contains certain forward-looking statements and information relating to Ternium S.A. and itssubsidiaries (collectively, “Ternium”) that are based on the current beliefs of its management as well as assumptionsmade by and information currently available to Ternium. Such statements reflect the current views of Ternium withrespect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause theactual results, performance or achievements of Ternium to be materially different from any future results, performance orachievements that may be expressed or implied by such forward-looking statements, including, among others, changes ingeneral economic, political conditions in the countries in which Ternium does business or other countries which have animpact on Ternium’s business activities and investments, changes in interest rates, changes in inflation rates, changes inexchange rates, the degree of growth and the number of consumers in the markets in which Ternium operates and sellsits products, changes in steel demand and prices, changes in raw material and energy prices or difficulties in acquiringraw materials or energy supply cut-offs, changes in business strategy and various other factors. Should one or more ofthese risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may varymaterially from those described herein as anticipated, believed, estimated, expected or targeted. Ternium does notintend, and does not assume any obligation, to update these forward-looking statements.
Ternium I November 20203
Profile
Ternium I November 20204
Mexico 50%
Brasil 11% (slabs)
USA 17% (slabs 13%)
Southern Region 16%
Steel Shipments 2019
Colombia 4%Other 2%
Other Markets 34%
Ternium’s ProfileA leading steel company in Latin America
Net sales of $10.2 billion in 2019
Steel shipments in 2019 of 12.5 million tons
Industrial facilities in Mexico, Argentina, Brazil,
Colombia, USA and Central America
1Usiminas: a leading company in the Brazilian flat steel market
Vertically integrated, from iron ore mines to
service centers
Focus on high value-added products
Participation in Usiminas1 control group
Integrated Facilities
Countries Employees
Downstream
Facilities
Distribution
Centers
Service
Centers
Integrated
Facilities
24
22
20,000
Ternium I November 20205
Sustainable ProfitabilityA comprehensive approach to value creation
Quest for excellence in industrial management
and technology
Focus on differentiation through sophisticated
products and services
Proactive approach to environment, health and
safety
Recruitment, training, and retention of talent
Strengthening of steel value chain
Deep ties with our communities
Commitment to integrity
Economic Value Generated and Distributed (2019)
Economic value
generated $10.3 B
Suppliers
$7.7 B
Employees $827 M
Capex
$1.1 B
Taxes
$357 M
Capital providers
$352 M
Research & development
$10 M
Community investments
$6.6 M
Ternium I November 20206
0.90 0.901.00
1.101.20
2015 2016 2017 2018 2019
Sustainable ProfitabilityDelivering Ternium’s business strategy
Dividend Payments ($ per ADS)
Focus on high-margin value-added products
Pursue strategic growth opportunities
Implement Ternium’s best practices
Maximize the benefits arising from Ternium’s
distribution network
Enhance Ternium’s position as a competitive steel
producer
Quest for excellence in industrial management and
technology
Production capacity (million tons per year)
7.3
12.4 12.410.3 10.8
15.7
2016 2019 2021f
Crude steel Hot-rolled steel
+47%
+68%
Ternium I November 20207
Sustainable ProfitabilityImproving our health and safety performance
Occupational health and safety (OH&S) policy
Standardized and certified OH&S management
system
Safety-focused capital expenditure plan
Integral program for critical steel production
processes and iron ore tailings dams
Management tours at the facilities, training,
workshops and conferences to raise awareness
Extensive communication to engage and commit
Ternium's and contractor's employees
Initiatives to promote healthy and safe operations in
the steel industry value chain
1.1 1.00.7 0.7 0.8
2015 2016 2017 2018 20191
Lost time injury frequency rate (# of events / million hours worked)
1 The 2019 LTIFR increase reflected mainly the effect of construction works carried out
for the new facility in Mexico and Colombia
Ternium I November 20208
Sustainable ProfitabilityHealth and safety measures against Covid-19
Work-from-home policy whenever possible
New protocols for on-site work that comply with, or exceed, local
authorities’ directives
strict social distancing and mandatory face masks
temperature checks at admission posts
strengthened disinfection routines including buses, working
posts and cafeterias
Employees with higher risk of developing complications stay at home
Prompt testing of all individuals showing symptoms along with their
close contacts and contagion tracking
Extensive communication program to promote health and wellness
protocols at both work and home
Ternium I November 20209
Sustainable ProfitabilityMinimizing Ternium’s environmental footprint
Responsible use of natural resources
Raw materials and other inputs
Waste generation
Focus on excellence in environmental performance
Certified environmental management system
Management performance accountability
Investments to control particulate emission and
discharges
Sustainable building solutions at new facilities
Biodiversity protection
Field works at greenfield projects
Support to Sepetiba Bay and Iberá Wetlands
initiatives
Project of the Rewilding Argentina Foundation at the Iberá Wetlands
Investments to improve the capture and treatment of air emissions
Ternium I November 202010
Promoting a collaborative network to foster
excellence in performance:
Universities
Business schools
Government agencies
Industrial associations
Helping 1,800 SMEs, customers and suppliers, grow:
Training programs
Industrial projects and business consultancy
Institutional initiatives
Commercial support and financial assistance
“ProPymes has helped create an industrial network
that encourages the professionalization and quest
for excellence of SMEs.”
Sustainable ProfitabilityStrengthening Ternium's value chain
Ternium I November 202011
Sustainable ProfitabilityHelping our communities thrive
Roberto Rocca Technical School in Pesquería, Mexico
Volunteer programs for school repair
Fostering education:
Ternium’s technical school in Pesquería
Refurbishing of community schools
Special education program for children
Financial support to high-school, undergraduate
and graduate students
Supporting initiatives that strengthen our communities:
Funding of health care infrastructure and
equipment
Sponsorship of diverse cultural exhibitions and
events
Arrangement of city races and other sport activities
COVID-19: $5.5 million dedicated fund to help our
communities during the pandemic
Ternium I November 202012
Sustainable Profitability Special funding program to help our communities
Construction and operation of a field hospital in Monterrey, Mexico
100 beds
10 fully-equipped units for intensive care (IC)
Equipment donation to 16 hospitals and health-care units in 4 countries
(ventilators, units for IC, beds, IC equipment and protection gear)
Creation of a professional network to share COVID-19 treatments
Linking doctors from our communities with Humanitas’1 colleagues
Humanitas expertise available at a public virtual campus
Adaptation to online learning at some of Ternium’s education programs
Roberto Rocca Technical School
AfterSchool program
Food support for vulnerable families
1 Humanitas: an Italian network of hospitals controlled by the Techint Group
Ternium I November 202013
Sustainable ProfitabilityCommitment to integrity through strong corporate governance
Audit committee (all independent directors)
Internal Audit Department reporting to the
Chairman and the Audit Committee
Business Conduct Compliance Officer reporting
to the CEO
Compliance department that oversees SOX
certifications, related party transactions and
conflict minerals
Employee accountability and training to ensure a
transparent behavior
Confidential channels to report non-compliant
behavior
Codes Policies Procedures
Conduct (for Business conduct Disclouse (relevant
wc employees) Transparency information)
Conduct for Anti-fraud Related party
suppliers Securities trading transactions
Ethics for senior Diversity Conflict mineral
financial officers Human rights disclosure
Ternium I November 202014
Latin American Steel Markets
Ternium I November 202015
Latin America Steel Markets Ternium has a leading position in the Mexican steel market
9.7
20.8
6.6
24.2
1990 2000 2010
BrasilMexico
2019
2.7
3.9
1.1
3.5
1990 2000 2010
ArgentinaColombia
2019
Apparent steel use (million tons)
Source: Alacero June 2020
The Mexican market is the largest in Latin America
Growth in Mexico’s steel consumption over the last decades was driven mainly by a dynamic
manufacturing industry
Mexico, Brazil, Argentina and Colombia accounted for approximately 80% of Latin America’s steel
consumption in 2019
Ternium I November 202016
MexicoAttractive steel market with a significant demand for high-end steel products
Commercial 47%
Automotive 26%
Other industries 10%
White goods 9%
HVAC / lighting 8%
Steel shipments by industry (2019)
Developed industrial sector (approximately 53% of
shipments in Mexico)
Access to the North American steel market through
USMCA
Ternium’s focus on value added products and services:
Service center network
Nationwide coverage through distribution centers
and regional distributors
Customer digital connectivity
Ongoing investment plan to increase our capabilities
for industrial customers
Ternium I November 202017
MexicoNew hot-rolling mill in Pesquería expected to start up by mid-2021
Source: Canacero / Ternium estimates
36%
Apparent flat steel use – Mexico 2019 Significant technological upgrade to expand TX’s
product range and improve customer service
The new mill will further increase Ternium’s
capabilities to substitute imports, which in 2019
accounted for 54% of Mexico’s flat steel use
Targeting the automotive industry, as well as the
white goods, machinery, energy and construction
sectors
Annual production capacity of 4.4 million tons (option
to increase capacity to 4.8 million tons)
65%
35%
Industrial Commercial
46%
54%
Local Imports
Ternium I November 202018
MexicoDeveloping our industrial center in Pesquería, Mexico
36%
Greenfield facility inaugurated in 2013 with cold-rolling and galvanizing lines
Additional hot-dipped galvanizing and painting lines inaugurated in 2019 with the most advanced painting
technology in Mexico
New hot-rolling mill to start-up in mid-2021
High-end value-added products for the automotive, white goods and heating-ventilation-air conditioning
(HVAC) industries
Expected annual production capacity in 2021:
Hot-Rolling: 4.4 million tons
Cold-rolling: 1.6 million tons
Hot-dipped galvanizing: 830,000 tons
Painting: 120,000 tons
Ternium I November 202019
ArgentinaThird largest steel market in Latin America with a developed industrial sector
Source: Ternium estimates
Significant industrial customer base representing 47%
of steel shipments in Argentina
Focus on value added products and services:
Service center network
Short notice delivery and just-in-time agreements
Customer digital connectivity
Joint product research and development projects
with our value chain (mainly white goods,
transportation and renewable energy)
Commercial 53% Automotive 9%
Agribusiness 6%
White goods 5%
Canning 6%
Oil & gas 5%
Other industrial 16%
Steel shipments by industry (2019)
Ternium I November 202020
Colombia New rebar mill in Colombia
Colombian steel market is the fourth largest in Latin America
Imports account for a significant share of long steel consumption
Ternium to expand its participation in the construction sector in the north/northwest of Colombia
Approximately 50% of steel rebar consumption
No local production
Expensive logistics from the mills in central Colombia
New greenfield rebar facility
Annual capacity of 520,000 tons
First bar produced in November 2020
Total investment of $90 million
Ternium I November 202021
Ternium’s Performance
Ternium I November 202022
Ternium’s PerformanceOperating Results and Balance Sheet
435 409520
1,052
600
2016 2017 2018 2019 2020f
Capital Expenditures ($ million)
0.9
2.7
1.71.5
0.6
dec-16 dec-17 dec-18 dec-19 sep-20
0.5x10.6x
Net Debt ($ billion)
1,263 879
1,549
1,931
2,698
1,526
2016 2017 2018 2019 9M20
Ebitda ($ million)
21% 20%
24%
15% 14%
2016 2017 2018 2019 9M20
Ebitda Margin (% of net sales)
1 Net Debt/EBITDA Ratio (last 12 months EBITDA)
1.4x 0.6x 1.0x
Ternium I November 202023
Ternium’s PerformanceEBITDA and Net Income
388
263302
224
353
3Q19 4Q19 1Q20 2Q20 3Q20
EBITDA ($ million)
16%
12%13% 13%
17%
3Q19 4Q19 1Q20 2Q20 3Q20
EBITDA Margin (% of net sales)
127
90101 91
124
3Q19 4Q19 1Q20 2Q20 3Q20
EBITDA per Ton1 ($)
1 Consolidated EBITDA divided by steel shipments.
11290
(19)
44
173
0.49 0.36 (0.06)
0.22
0.74
-0.50 - 0.50 1.00 1.50 2.00 2.50 3.00
-65 -15 35 85
135 185 235
3Q19 4Q19 1Q20 2Q20 3Q20
Net Income and Earnings per ADSNet Income (Loss) ($ million)Earnings (Losses) per ADS
Ternium I November 202024
Mexico (thousand tons)
1,629 1,5441,650
1,175
1,445
3Q19 4Q19 1Q20 2Q20 3Q20
504 484
380344
547
3Q19 4Q19 1Q20 2Q20 3Q20
Southern Region (thousand tons)
Ternium’s PerformanceSteel Shipments
643 578 636 664 519
924 889969 931 853
3Q19 4Q19 1Q20 2Q20 3Q20
Slabs
Other Markets (thousand tons)
-8%
23%
59% Mexico 51%
Brazil 7% (slabs)
USA 11% (5% slabs)
Southern Region 19%
Steel Shipments 3Q20
Colombia 5%
Other 8% (7% slabs)
Other Markets
30%
Ternium I November 202025
Ternium’s PerformanceTotal Shipments and Revenue per Ton
774751 737
690727
820
776 769
725 737
600
650
700
750
800
850
900
950
3Q19 4Q19 1Q20 2Q20 3Q20
Revenue per Ton ($/ton)
2%
5%
2,4502,250 2,271
1,7462,139
3Q19 4Q19 1Q20 2Q20 3Q20
Net Sales ($ million)
3,057 2,917 2,998
2,4492,845
3Q19 4Q19 1Q20 2Q20 3Q20
16%
Total Shipments (thousand tons)
Mexico
Consolidated
23%
Shipments and realized prices expected to continue
recovering in the 4Q20:
Mexico: Industrial market shipments to reach pre-
pandemic levels, construction sector improving.
Southern Region: buildup of stocks and advance
purchases to continue driving strong steel shipments.
Other Markets: stable third party shipments, with
increase in domestic sales substituting exports.
Ternium I November 202026
Ternium’s PerformanceCash Flow and Balance Sheet
256
307
258
11171
3Q19 4Q19 1Q20 2Q20 3Q20
Capital Expenditures ($ million)
250
85
185
393 389
3Q19 4Q19 1Q20 2Q20 3Q20
Free Cash Flow ($ million)
1.5 1.51.3
0.9
0.6
sep-19 dec-19 mar-20 jun-20 sep-20
0.5x1
Net Debt ($ billion)
0.8x0.9x
1 Net Debt/EBITDA Ratio (last 12 months EBITDA)
1.0x
506
393443
504460
3Q19 4Q19 1Q20 2Q20 3Q20
Cash from Operations ($ million)
0.9x
Ternium I November 202027
Conclusion
Ternium I November 202028
Conclusion
A leading steel company in Latin America with a
comprehensive management approach
Successful implementation of business strategy geared
toward sustainable profitable growth
Solid financial position
Resilience in times of crisis
New hot-rolling mill in Mexico provides opportunity to
strengthen business in the region
Continued focus on generating long-term stakeholder value
Ternium I November 202029
Ternium I November 202030
Appendix
Corporate Structure
Production Capacity
Shipments and Net Sales
Income Statement
Cash Flow Statement
Balance Sheet
Selected Webcast Presentation Slide Third Quarter and First Nine Months 2020
Ternium’s Debt Profile
More about Ternium’s developing industrial system in Brasil
Ternium I November 202031
Economic participation
1 Participation based on total shares distributed
2 Net of non-controlling interest in TX Argentina
3 Formerly known as Siderar
4 Formerly known as CSA
Non-consolidated companies
Techint Group: 62%
Tenaris: 11%
Ternium (treasury shares): 2%
Public: 24%
Exiros
Ternium Colombia
Ternium México
Usiminas
Ternium Argentina3
Nippon Steel Corp: 19%
TenarisConfab: 3%
CEU: 3%
CSN: 18%
Other: 37%
38%
29%
71%
62%
50%
100%
4%
Other
17%
Tenaris50%
Subsidiaries
Peña Colorada
50%
Las Encinas
100%
Ternium Int. Guatemala
Ternium USA
100%
100%
Joint operations
ArcelorMittal
50%
Tenigal51%
Nippon Steel Corp49%
Techgen48%
22%
Tecpetrol30%
Ternium Brasil4100%
Direct Indirect2 Total
Ternium Mexico 71% 18% 89%
Ternium Argentina3 62% 62%
Ternium Brasil4 100% 100%
Usiminas1 17% 2% 19%
Tenigal 51% 51%
Ternium Colombia 100% 100%
TX Int. Guatemala 100% 100%
TX USA 100% 100%
Las Encinas 71% 18% 89%
Peña Colorada 36% 9% 44%
Corporate Structure
Ternium del Atlántico100%
Ternium I November 202032
Mexico Argentina Other (1)
Total
Slabs 2.5 3.2 5.0 10.7
Billets 1.6 0.2 1.9
Crude steel 4.1 3.2 5.2 12.5
Hot rolled coils 6.5 2.9 9.4
Rebars & wire rods 1.2 0.2 1.4
Cold rolled coils 3.7 1.8 5.5
Tinplated products 0.2 0.2
Galvanized products 2.4 0.6 0.4 3.4
Pre-painted products 0.8 0.1 0.2 1.1
Service center 3.9 2.3 1.3 7.5
Production Capacity
(1) Brazil, Southern US, Colombia and Central America
(2)
(2) Corresponds to Ternium Brasil
Production Capacity as of year-end 2019 (million metric tons per year)
Ternium I November 202033
Shipments and Net Sales
3Q2020 3Q2019 Dif. 3Q2020 3Q2019 Dif.3
Q 3Q2020 3Q2019 Dif.
Mexico 1,065.7 1,334.9 -20% 1,445.1 1,628.6 -11% 737.5 819.6 -10%
Southern Region 495.6 435.9 14% 546.8 503.8 9% 906.4 865.2 5%
Other Markets 508.0 595.1 -15% 853.1 924.3 -8% 595.5 643.8 -7%
Total steel products 2,069.4 2,365.8 -13% 2,845 3,057 -7% 727 774 -6%
Other products1 45.6 83.9 -46%
Total steel segment 2,114.9 2,449.7 -14%
Total mining segment 91.3 111.7 -18% 869 904 -4% 105 124 -15%
Total steel and mining segments 2,206.2 2,561.4 -14%
Intersegment eliminations (67.6) (111.7)
Total net sales 2,138.6 2,449.7 -13%
9M2020 9M2019 Dif. 9M2020 9M2019 Dif.3
Q 9M2020 9M2019 Dif.
Mexico 3,186.1 4,129.4 -23% 4,269 4,761 -10% 746 867 -14%
Southern Region 1,129.2 1,252.6 -10% 1,270 1,454 -13% 889 862 3%
Other Markets 1,654.7 2,316.5 -29% 2,753 3,379 -19% 601 686 -12%
Total steel products 5,970.0 7,698.6 -22% 8,292 9,594 -14% 720 802 -10%
Other products1 132.3 244.2 -46%
Total steel segment 6,102.3 7,942.8 -23%
Total mining segment 284.8 264.3 8% 2,854 2,659 7% 100 99 0%
Total steel and mining segments 6,387.1 8,207.1 -22%
Intersegment eliminations (231.3) (264.3)
Total net sales 6,155.8 7,942.8 -22%1 The item “Other products” primarily includes Ternium Brasil’s and Ternium México’s electricity sales.
Net Sales (USD million) Shipments (thousand tons) Revenue / ton (USD / ton)
Net Sales (USD million) Shipments (thousand tons) Revenue / ton (USD / ton)
Ternium I November 202034
Income Statement
$ million 3Q2020 3Q2019 9M2020 9M2019
Net sales 2,138.6 2,449.7 6,155.8 7,942.8
Cost of sales (1,756.6) (2,016.4) (5,185.8) (6,509.1)
Gross profit 382.1 433.3 969.9 1,433.7
Selling, general and administrative expenses (183.1) (211.9) (566.1) (674.5)
Other operating income (expenses), net 2.0 7.2 (1.5) 13.2
Operating income 201.0 228.6 402.3 772.3
Finance expense (9.0) (25.6) (38.9) (66.8)
Finance income 15.9 9.0 30.9 21.4
Other financial income (expenses) income, net (20.6) (18.3) 85.8 (23.5)
Equity in (losses) earnings of non-consolidated companies 13.2 1.9 (0.4) 37.1
Profit before income tax expense 200.5 195.6 479.7 740.5
Income tax income (expense) (27.5) (83.6) (282.5) (200.4)
Profit for the period 173.0 111.9 197.2 540.1
Attributable to:
Owners of the parent 145.6 95.3 178.1 493.8
Non-controlling interest 27.4 16.6 19.2 46.3
Profit for the period 173.0 111.9 197.2 540.1
(Unaudited) (Unaudited)
Ternium I November 202035
Cash Flow Statement
$ million 3Q2020 3Q2019 9M2020 9M2019
Profit for the period 173.0 111.9 197.2 540.1
Adjustments for:
Depreciation and amortization 152.4 159.4 477.1 490.3
Equity in (earnings) losses of non-consolidated companies (13.2) (1.9) 0.4 (37.1)
Changes in provisions 0.0 0.4 (0.3) (2.3)
Net foreign exchange results and others 58.8 20.3 (28.1) 29.6
Interest accruals less payments 0.8 (1.5) 4.6 3.0
Income tax accruals less payments (52.4) 14.8 127.4 (187.6)
Changes in working capital 140.6 202.7 628.1 418.7
Net cash provided by operating activities 460.0 506.2 1,406.4 1,254.7
Capital expenditures (71.1) (255.9) (439.6) (744.8)
Proceeds from the sale of property, plant & equipment 0.1 0.0 0.4 0.5
Acquisition of non-controling interest (2.8) (4.2) (14.1) (4.2)
Recovery of loans to non-consolidated companies - - - 24.5
Decrease (increase) in other investments 84.3 (184.4) (410.5) (166.5)
Net cash provided by (used in) investing activities 10.5 (444.4) (863.9) (890.5)
Dividends paid in cash to company's shareholders - - - (235.6)
Dividends paid in cash to non-controlling interest - - - (28.5)
Finance Lease Payments (10.1) (9.0) (30.4) (28.6)
Proceeds from borrowings 24.8 263.6 244.3 1,133.0
Repayments of borrowings (239.4) (448.2) (558.2) (802.0)
Net cash (used in) provided by financing activities (224.6) (193.6) (344.3) 38.2
Increase (decrease) in cash and cash equivalents 245.8 (131.9) 198.2 402.4
(Unaudited) (Unaudited)
Ternium I November 202036
Balance Sheet
$ millionSeptember 30,
2020
December 31,
2019
(Unaudited)
Property, plant and equipment, net 6,525.8 6,539.6
Intangible assets, net 908.3 943.8
Investments in non-consolidated companies 393.5 513.6
Deferred tax assets 126.8 163.5
Receivables, net 267.8 592.6
Trade receivables, net 0.1 0.9
Other investments 2.9 3.3
Total non-current assets 8,225.2 8,757.3
Receivables, net 217.0 334.7
Derivative financial instruments 1.5 1.2
Inventories, net 1,667.3 2,158.3
Trade receivables, net 776.3 949.7
Other investments 623.2 212.3
Cash and cash equivalents 680.7 520.0
Total current assets 3,965.9 4,176.1
Non-current assets classified as held for sale 1.9 2.1
Total assets 12,193.0 12,935.5
$ millionSeptember 30,
2020
December 31,
2019
(Unaudited)
Capital and reserves attributable to the owners of the parent 6,686.1 6,611.7
Non-controlling interest 1,091.0 1,103.2
Total Equity 7,777.1 7,714.9
Provisions 256.4 613.4
Deferred tax liabilities 469.2 403.3
Other liabilities 447.4 507.6
Trade payables 1.0 1.2
Derivative financial instruments 0.5 0.0
Lease liabilities 257.6 298.2
Borrowings 1,457.4 1,628.9
Total non-current liabilities 2,889.6 3,452.5
Current income tax liabilities 36.2 47.1
Other liabilities 215.6 240.9
Trade payables 824.6 876.8
Derivative financial instruments 0.1 3.0
Lease liabilities 41.2 40.5
Borrowings 408.8 559.8
Total current liabilities 1,526.4 1,768.1
Total liabilities 4,416.0 5,220.7
Total equity and liabilities 12,193.0 12,935.5
Ternium I November 202037
61
105
(31) (6)
224
353
EBITDA 2Q20
Shipments Price/Mix Cost Other EBITDA3Q20
135 1
33
(40)
44
173
Net Income2Q20
OperatingIncome
Net FinancialResults
Income Tax Net Income3Q20
Third Quarter 2020 Results – Webcast PresentationEBITDA and Net Results
(mill
ion
$)
Equity in
Earnings of
non-consolidated
Companies
EBITDA
3Q20
EBITDA
2Q20
Net Income
3Q20
Net Income
2Q20(m
illio
n$)
Higher shipments in the 3Q20, particularly in
Mexico and Argentina.
Higher revenue per ton, mainly reflecting a higher
value added product mix.
Slight increase in cost per ton.
Improved result from the equity in earnings of
Usiminas in the 3Q20.
Low effective tax rates in the 3Q20 and 2Q20,
affected by non-cash deferred tax gains due to the
effect of the MXN appreciation versus the USD.
Ternium I November 202038
(370)
147
(37)
(82)
540
197
Net Income…Operating IncomeNet Financial Results Income Tax Net Income…
(171)
(212)
1,263
879
EBITDA 9M19 Shipments Ebitda per Ton EBITDA 9M20
Equity in
Earnings of
non-consolidated
Companies
First Nine Months 2020 Results – Webcast PresentationEBITDA and Net Results
(mill
ion
$)
(mill
ion
$)
EBITDA
9M20
EBITDA
9M19
Net Income9M20
Net Income
9M19Operating
Income
Income TaxNet Financial
Results
Lower shipments in 9M20 in Ternium’s main
markets due to the effect of the COVID-19
pandemic.
Lower EBITDA per ton on lower steel prices
partially offset by lower costs per ton.
Significant variation in net financial results mainly
related to to the effect of a substantial fluctuation of
the MXN, ARS and BRL versus the USD in both
periods.
High effective tax rate in the 9M20 mainly related to
non-cash deferred tax loss due to the effect of
significant MXN depreciation versus the USD.
Ternium I November 202039
Debt ProfileComfortable maturity schedule
72
469
663
138
534
sep-20 2021 2022 2023 2024+
Tx Mexico Synd. Loan Tx Investments Synd. Loan
Tx Brasil Synd. Loan Other outstanding long-term debt
Revolving credit facilities
$1.9 billion gross debt as of Sep’20
Main outstanding syndicated loans:
Ternium Mexico: $625 million
Ternium Brasil: $500 million
Ternium Investments S.à.r.l.: $400 million
Other outstanding long-term debt:
Tenigal: $63 million
Peña Colorada: $63 million
Revolving credit facilities (uncommitted) of $226
million outstanding, mainly in Mexico
Debt maturity profile Sep’20 ($/million)
Ternium I November 202040
Ternium Brasil AcquisitionA strong foundation for Ternium’s next phase of development
Acquired in September 2017
5 mtpy high-end slab facility in Brazil
Further integrate Ternium Brasil to take it to its full
potential
Increase competitiveness in the high-end Mexican steel
market vis-à-vis imports
Improve customer service supported by higher
operational flexibility
Customized steel products
Coordinated product development
Enhanced logistics
Ternium I November 202041
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