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Investor PresentationJanuary 2018

As of January 24, 2018

January 2018Ternium

2

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 current views

of Ternium with respect to future events and are subject to certain risks, uncertainties and assumptions. Many

factors could cause the actual results, performance or achievements of Ternium to be materially different from

any future results, performance or achievements that may be expressed or implied by such forward-looking

statements, including, among others, changes in general economic, political conditions in the countries in which

Ternium does business or other countries which have an impact on Ternium’s business activities and investments,

changes in interest rates, changes in inflation rates, changes in exchange rates, the degree of growth and the

number of consumers in the markets in which Ternium operates and sells its products, changes in steel demand

and prices, changes in raw material and energy prices or difficulties in acquiring raw materials or energy supply

cut-offs, changes in business strategy and various other factors. Should one or more of these risks or

uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially

from those described herein as anticipated, believed, estimated, expected or targeted. Ternium does not intend,

and does not assume any obligation, to update these forward-looking statements.

Investor Presentation 3

Profile and Performance

January 2018Ternium

4

• Net sales of USD 7.2 billion in 2016

• Crude steel capacity of 12.3 million tons

• Industrial facilities in Mexico, Argentina, Brazil, Colombia, USA and Central America

• Vertically integrated, from iron ore mines to service centers

• Focus on high value-added products

• Participation in Usiminas1 control group

Steel Shipments2 – 9M 2017

Ternium’s ProfileA leading steel company in Latin America

Mexico61%

Other Markets

17%

Southern Region22%

1 Usiminas: a leading company in the Brazilian flat steel market

2 Ternium Brasil (ex-CSA) started consolidating in September 2017

January 2018Ternium

5

• Focus on high margin value-added

products

• Flexible production configuration

• Diversified cost structure

• Upstream and downstream

integration

• Best practices

• Broad distribution network

• Recruitment and retention of talent

• Innovative culture, industrial

expertise and long-term view

Ternium’s ProfileConsistently superior results

14%

14%

6%8%

15%17% 17%

14%

21% 21%

2012 2013 2014 2015 2016

1 Long steel Americas, global player, U.S. minimill and U.S. integrated (Source: Bloomberg)

Average

EBITDA Margin (% of net sales)

Ternium Peers range1

9M17

January 2018Ternium

6

33

209

62

857

664

2012 2013 2014 2015 2016

1,023

883

444 467 436

2012 2013 2014 2015 2016

5.0 5.0 5.6 5.9 6.4

2.4 2.62.5 2.6 2.2

1.4 1.41.2 1.1 1.1

8.8 9.0 9.4 9.6 9.8

2012 2013 2014 2015 2016

Mexico Southern Region Other Markets

1,287

1,487 1,471

1,073

1,549

2012 2013 2014 2015 2016

Steel shipments (million tons)

Capital Expenditures (USD million)

EBITDA (USD million)

Performance Sustainable growth and resilient profitability

Free cash flow (USD million)

January 2018Ternium

7

2 Last 12 months EBITDA

PerformanceSolid financial position

Net debt and net debt to EBITDA ratio2

(USD billion)

Strong balance sheet

• Net debt to EBITDA ratio of 1.5x as ofSeptember 2017

• USD1.5 billion five-year syndicated termloan facility to finance CSA acquisition inSeptember 2017

Growing dividend payments

• USD1 per ADS in 2016, 54% increase inlast 5 years

• 5% dividend yield in 20161

Annual dividends(USD per ADS)

1 Dividend yield: Dividend paid / Average stock price (Source: Bloomberg)

1.51.8

1.10.9

2.7

2013 2014 2015 2016 Sep-17

0.6x 1.5x1.0x 1.2x 1.1x

0.650.75

0.90 0.901.00

2012 2013 2014 2015 2016

January 2018Ternium

8

502

351

465498

466

3Q16 4Q16 1Q17 2Q17 3Q17

EBITDA

(USD million)

PerformanceQuarterly EBITDA and net income

27%

19%

23%22%

19%

3Q16 4Q16 1Q17 2Q17 3Q17

EBITDA Margin

(% of net sales)

214

147

188 189

152

3Q16 4Q16 1Q17 2Q17 3Q17

EBITDA per ton1

(USD)

1 Consolidated EBITDA divided by steel shipments.

264

145

310282

233

1.17

0.60

1.33 1.27

0.99

3Q16 4Q16 1Q17 2Q17 3Q17

Net Income and Earnings per ADSNet Income (Loss) (USD million)

Earnings (Losses) per ADS

January 2018Ternium

9

Breakthrough initiatives to increase differentiation and reduce costs

• Customer integration

• Labor productivity

• Exiros

• Working capital optimization

• Logistics management

• Contractors management

• Energy efficiency

• Continuous improvement

PerformanceContinuous focus on profitability

January 2018Ternium

10

A Level Playing FieldWorld dealing with unfair trade

• Cases against steel unfair trade grew

strongly in the last decade

• China is the main target of unfair trade

cases in more than 20 countries

• World reacted against unfair Chinese

steel trade conditions

Note: AD: anti-dumping; CV: countervailing

Claims initiated against China forunfair steel trade in the world (# per

year)

Standing duties for Chinese steel imports in U.S. and Mexico

U.S. up to 91% AD

Mexico up to USD355/ton AD

256% CV

266% AD

Mexico up to 103% AD

210% AD

up to 241% CV

Mexico up to 76% AD

U.S.

U.S.

Cold-rolled

Hot-rolled

Corrosion-

resistant

6

25

36

2007 2012 2017


Latin American Steel Markets

January 2018Ternium

12

2.7

4.8

1.1

3.7

1990 2000 2010

Argentina

Colombia

9.7

18.4

6.6

26.8

1990 2000 2010

Brasil

Mexico

• Mexico, Brazil, Argentina and Colombia account for approximately 80% of Latin

America’s steel consumption

• Mexico’s steel consumption CAGR of 2.9% in the last decade, among the highest in

the region, driven by a dynamic manufacturing industry

Latin American Steel MarketsMexico became the largest steel market in the region

Source: Canacero, Aço Brasil, Cámara Argentina del Acero, ANDI

Apparent steel use (million tons)

2017f 2017f


Mexico

January 2018Ternium

14

Ternium’s Markets - MexicoShipments to industrial customers growing consistently

55%58%

11.512.6

15.016.7

2011 2013 2015 2017f

Local Imports

Apparent flat steel use – Mexico (million tons)

56% 58% 59% 62%

44% 42% 41% 38%

2011 2013 2015 2017f

Industrial Commercial

Apparent flat steel use – Mexico (% share)

Source: Alacero / Ternium estimates

Most attractive steel market in Latin America

• 46% increase in flat steel consumptionsince 2011

• Opportunity to substitute imports ofhigh-end products

• Industrial market increasing relevance

• Strong measures to promote fair tradein the NAFTA region

• 33 cases against 35 countriesmainly against China

• China with dumping cases in mostof the steel products

• Renewal of 15% import tariff inMexico (for countries with no tradeagreements)

January 2018Ternium

15

0

100

200

300

2012 2013 2014 2015 2016 2017f

Private Government

Ternium’s Markets - MexicoStrong industrial steel demand

• Light vehicle production is expected tocontinue growing

• Production in 2017 increased by8% reaching 3.8 million units

• New OEM capacity was addedduring 2017

• Production expected to reach 4.2million units by 2020

• Construction: Private activity growthstabilized in 2017

• Private activity offset decrease ingovernment investment over thelast years

• Infrastructure investment expectedto improve in 2018

2.9 2.93.2 3.4 3.5

3.8

2012 2013 2014 2015 2016 2017

Light vehicle production(million units)

Construction spending(billion of constant MXN)

Source: AMIA/IHS

Source: INEGI

January 2018Ternium

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Ternium’s Markets - MexicoStrong growth of Ternium’s shipments

• 500,000-ton shipment increase in 2016

• Volume growth higher in the automotiveand home-appliance industries

• Broader product range enabled byupgrading of re-rolling facility

• Differentiation in the commercial marketthrough value-added products andservices

• Increasing customer digital connectivity

• Nationwide coverage through regionaldistributors and distributors centers

20%

11%

4%3%

Automotive Homeappliance

Construction Othersectors

Ternium’s shipments growth in 2016(year-over-year % change)

5.0 5.05.6 5.9

6.4

2012 2013 2014 2015 2016

Industrial Commercial

Ternium steel shipments in Mexico (million tons)

+8%

60%

40%50%

50%

Ternium outpacing Mexican steel consumption

growth through import substitution


Southern Region - Argentina

January 2018Ternium

18

Ternium’s Markets - ArgentinaRecovery in 2017 and positive outlook for 2018

2.83.1

2.52.8

3.1

2014 2015 2016 2017f 2018f

+13%

+10%

-19%

Apparent flat steel use – Argentina (million tons)

Economic reforms to improve Argentina’s

performance in following years:

Economy gaining momentum driven by:

• Agriculture

• Construction

• Non-conventional oil & gas

• Gradually improving: household

appliance and automotive industries

Source: Alacero / Ternium estimates

GDP ASU

2016 -2.2% -18.6%

2017 +2.9% +12.5%

2018 +3.2% +10.0%

Source: BCRA – REM Dec’17

January 2018Ternium

19

Ternium’s Markets - ArgentinaActivity recovering in 2017 and positive outlook for 2018

Source: INDEC and AFCP

10.711.9 11.4

12.210.9

12.2

2012 2013 2014 2015 2016 2017

Cement shipments(million tons)

+12%

17.2

20.4

14.8 13.9

17.6

12.2

16.5

2012 2013 2014 2015 2016 9M16 9M17

Implements Seeders Tractors Harvesters

Agro equipment sales(thousand units)

+36%

• Higher agro production and investment

• Production: +14% in ’16/’17 season

• Bright spots: sales of agro machinery

and pick-up trucks

• Government infrastructure investmentsdriving construction activity

• Vaca Muerta: shale oil & gas drillingincreasing in 2H’17

• Government price stimulus

• Restructured labor agreements

• USD7 billion recently announced

investments in next 3 years

• Government investment estimates:

USD14 billion in 2017/18; USD15-20

billion per year from 2019


Steel Market Trends

January 2018Ternium

21

150

200

250

300

350

400

450

4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Jan-18

USD/long ton

300

400

500

600

700

800

1Q15 3Q15 1Q16 3Q16 1Q17 3Q17 Jan-18f

Europe domestic (USD/ton) US domestic (USD/ton)

1.5

2.0

2.5

3.0

3.5

4.0

4.5

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Million tons

Source: Platts / MSCI / US Census Bureau / Ternium

Steel price (hot rolled coils)

US service center inventoryUS steel imports

Steel Market TrendsUS steel market

Scrap price (shredded USA Midwest)

1.0

1.3

1.6

1.9

2.2

2.5

2.8

3.1

3.4

3.7

4.0

5.5

6.0

6.5

7.0

7.5

8.0

8.5

9.0

9.5

10.0

10.5

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

Million tons Months of supply

January 2018Ternium

22

1

2

3

4

5

6

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

USD/MMBtu

50

100

150

200

250

300

350

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

USD/ton

30

45

60

75

90

105

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17

USD/ton

100

200

300

400

500

600

4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17f

USD/ton

Steel Market TrendsInput costs

Slab price (Brazil Export)

Source: Platts / Bloomberg / Ternium

Natural gas price (Henry Hub)

Iron ore price (IODEX CFR China)

Hard met coal price (FOB Australia)

Jan-18f

Jan-18f Jan-18f


Developing Ternium’s industrial system

January 2018Ternium

24

CSA AcquisitionStrong foundation to continue growing

• New 5 mtpy high-end slab facility in Brazil

• Integrate CSA into Ternium to take it to itsfull potential

• Increase competitiveness in the high-endMexican steel market vis-à-vis imports

• Improve customer service supported byhigher operational flexibility

• Customized steel products

• Coordinated product development

• Enhanced logistics

• Realize cost reduction opportunities in CSA

• Coordinated procurement effort(Exiros)

• IT integration

• Inventory optimization

• Benchmarking

January 2018Ternium

25

• Significant technological upgrade toexpand TX’s product range in Mexico witha broader dimensional offering and themost advanced steel grades

• Aimed at replacing high value-added steelimports, improving customer service andreducing lead-times in the value chain

• Targeting the demanding and innovativeautomotive industry, as well as the homeappliance, machinery, energy andconstruction sectors

• Annual production capacity of 3.7 milliontons (option to increase capacity by 1.1million tons with small additionalinvestment)

• Expected start up in second half of 2020

• Total investment of USD1.1 billion

New Hot Rolling Mill at Pesquería Industrial CenterA logical step after the addition of CSA

January 2018Ternium

26

• New hot-dipped galvanizing and painting lines

• High-end value-added products for the home-appliance, heating-ventilation-airconditioning (HVAC) and automotive industries

• Most advanced painting technology in Mexico

• Annual production capacity:

• Galvanizing: 300,000 tons

• Painting: 120,000 tons

• Expected start up:

• Galvanizing: 2H 2019

• Painting: 1H 2019

• Total investment of USD260 million

New Coating Lines at Pesquería Industrial CenterOpportunity to grow in the high-end Mexican market

January 2018Ternium

27

New Reinforcing Bar Production Facility in ColombiaExpanding TX’s share in the country’s construction sector

• Colombian long steel market growingsignificantly over the last years

• Fourth largest steel market in LatinAmerica

• Targeting the dynamic constructionsector to expand market share bysubstituting imports

• Investment to enable upstreamintegration by replacing purchases ofreinforcing bars from third parties

• Annual production capacity of 520,000tons

• Expected start up in second half of 2019

• Total investment of USD90 million

1.3 1.4

3.03.5

3.7

2000 2004 2008 2012 2016

Apparent steel use – Colombia (million tons)

+191%


Conclusion

January 2018Ternium

29

Strategic agenda

• Expansion in Mexico

• Increase in high-end

product offering

• Operational excellence

• Develop market value

potential relative to peers

ConclusionOpportunities for Ternium in the next five years

Next five years

• Continue growing in the

Mexican market

• Capitalize on the integration

of CSA into Ternium’s

industrial system

• Continue development of

new high-end steel

products

• Intensive use of IT/IS to

achieve breakthroughs in

operational excellence

January 2018Ternium

30

• Consistently superior results in

attractive steel markets in Latin

America

• Solid financial position and strong

dividend payments

• Successful implementation of business

strategy geared toward sustainable

profitable growth

• CSA acquisition as an opportunity to

grow and strengthen business in the

region

• Continued focus on generating long-

term shareholder value

Conclusion

January 2018Ternium

31

January 2018Ternium

32

• Corporate Structure

• Production Capacity

• CSA Acquisition

• Shipments and Net Sales

• Income Statement

• Cash Flow Statement

• Balance Sheet

• Webcast Presentation Third Quarter and First Nine Months of 2017

Appendix

January 2018Ternium

33

Corporate Structure

Economic participation

1 Participation based on ordinary shares distributed

2 Participation based on total shares distributed

3 Net of non-controlling interest in TX Argentina

4 Formerly known as Siderar

5 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 Argentina4

CEU: 5%1

Nippon Steel & Sumitomo Metal: 32%1

TenarisConfab: 5%1

Other (ordinary shares): 23%1

39%

29%

71%

61%

50%

100%

6%1

Other

28%1

Tenaris50%

Subsidiaries

Peña Colorada

50%

Las Encinas

100%

TerniumGuatemala

Ternium USA

100%

100%

Joint operations

ArcelorMittal

50%

Tenigal51% Nippon Steel &

Sumitomo Metal

49%

Techgen48%

22%

Tecpetrol30%

Ternium Brasil5100%

Direct Indirect3 Total

Ternium Mexico 71% 17% 89%

Ternium Argentina4 61% 61%

Ternium Brasil5 100% 100%

Usiminas2 17% 2% 19%

Tenigal 51% 51%

Ternium Colombia 100% 100%

TX Guatemala 100% 100%

TX USA 100% 100%

Las Encinas 71% 17% 89%

Peña Colorada 36% 9% 45%

January 2018Ternium

34

Production Capacity (*)

(million metric tons per year)

Mexico Argentina Other Total

Slabs 2.3 3.2 5.0 10.6

Billets 1.6 0.2 1.8

Crude steel 3.9 3.2 5.2 12.3

Coils 6.1 2.9 8.9

Rebars & wire rods 1.1 0.2 1.3

Hot rolled 7.2 2.9 0.2 10.3

Cold rolled coils 3.7 1.8 5.6

Tinplated products 0.2 0.2

Galvanized products 1.9 0.7 0.3 2.9

Pre-painted products 0.6 0.1 0.2 0.9

Service center 3.9 2.3 1.2 7.4

(1) Brazil, Southern US, Colombia and Central America

(*) As of year-end 2016

Production Capacity

(2)

(2) Corresponds to Ternium Brasil (ex-CSA)

(1)

January 2018Ternium

35

• On Sep 7, 2017 Ternium acquired thyssenkrupp Slab International B.V. (tkSI) and its

wholly-owned subsidiary CSA Siderúrgica do Atlântico Ltda. from thyssenkrupp AG

(tkAG)

• In addition, tkAG assigned to Ternium a 2.0 million tons per year agreement to

supply slabs to thyssenkrupp’s former Calvert re-rolling facility in the U.S.

• Ternium disbursed EUR1.4 billion on a cash-free, debt-free basis, for the acquisition

of both the tkSI shares and the slab supply agreement

• The transaction was financed with a five-year syndicated term loan facility in a

principal amount of USD1.5 billion

• Ternium began consolidating tkSI’s balance sheet and results of operations in its

consolidated financial statements in September 2017

• Upon closing, CSA name was changed to Ternium Brasil

CSA AcquisitionThe Transaction

January 2018Ternium

36

CSA is a Brazilian state-of-the-art steel slab producer

• 5 mtpy capacity of high-grade steel slabs

• 490 MW combined cycle power plant

• Deep-water harbor

• Compact, efficient and environmentally friendly facility

• Just-in-time iron ore supply (railroad)

Daniel Novegil, Ternium’s CEO said: “This acquisition brings another state-of-the-art

facility into Ternium’s industrial system, along with CSA’s highly-skilled personnel and

know-how, thereby enhancing our differentiation and value-added capabilities in the

steel production supply chain. Upon integration, Ternium customers will not only benefit

from our expanded high-end steel slabs capacity, but also see the results of an

enhanced product development and supply chain management effort that will increase

our high-end steel specialization in Mexico and Argentina. We move forward as a

strengthened organization across our strategic industrial sectors in Latin America.”

CSA AcquisitionThe Assets

January 2018Ternium

37

Shipments and Net SalesThird Quarter 2017 and First Nine Months of 2017

3Q 2017 3Q 2016 Dif. 3Q 2017 3Q 2016 Dif. 3Q 2017 3Q 2016 Dif.

Mexico 1,348.6 1,172.8 15% 1,625.0 1,529.4 6% 830 767 8%

Southern Region 618.8 452.5 37% 666.3 535.3 24% 929 845 10%

Other Markets 495.4 227.2 118% 778.8 283.1 175% 636 803 -21%- - -

Total steel products 2,462.8 1,852.5 33% 3,070.2 2,347.9 31% 802 789 2%

Other products (1) 16.7 3.0 455%- - -

Total steel segment 2,479.5 1,855.5 34%- - -

Total mining segment 84.3 58.1 45% 938.3 808.3 16% 90 72 25%- - -

Intersegment eliminations (84.3) (57.5) - - -

Total steel and mining segments 2,479.5 1,856.1 34%

9M 2017 9M 2016 Dif. 9M 2017 9M 2016 Dif. 9M 2017 9M 2016 Dif.

Mexico 4,072.6 3,349.2 22% 5,008.4 4,880.3 3% 813 686 18%

Southern Region 1,693.7 1,367.5 24% 1,810.8 1,643.3 10% 935 832 12%

Other Markets 990.2 646.1 53% 1,366.5 862.5 58% 725 749 -3%- - -

Total steel products 6,756.4 5,362.8 26% 8,185.8 7,386.1 11% 825 726 14%

Other products (1) 25.8 10.0 159%- - -

Total steel segment 6,782.2 5,372.8 26%- - -

Total mining segment 202.4 150.3 35% 2,676.3 2,454.1 9% 76 61 24%- - -

Intersegment eliminations (202.4) (148.7) - - -

Total steel and mining segments 6,782.3 5,374.4 26%(1) A s of 3Q 17, the item "O ther products" primarily inc ludes the sale of energy in Ternium Bras il.

Net Sales (million USD) Shipments (thousand tons) Revenue/ton (USD/ton)


January 2018Ternium

38

Shipments and Net SalesFull Year 2016 and 2015

2016 2015 Dif 2016 2015 Dif 2016 2015 Dif

Mexico 4,477.6 4,354.8 3% 6,405.2 5,933.4 8% 699 734 -5%

Southern Region 1,865.9 2,567.2 -27% 2,220.8 2,552.2 -13% 840 1,006 -16%

Other Markets 864.4 905.4 -5% 1,138.1 1,114.6 2% 760 812 -6%

Total steel products 7,208.0 7,827.4 -8% 9,764.0 9,600.3 2% 738 815 -9%

Other products (1) 13.8 47.7 -71%

Total steel segment 7,221.8 7,875.2 -8%

Total mining segment 204.9 203.1 1% 3,309.6 3,635.6 -9% 62 56 11%

Intersegment eliminations (202.7) (200.8) 1%

Total steel and mining segments 7,224.0 7,877.4 -8%(1) The item "O ther products" primarily inc ludes the sale of energy in Ternium Bras il


January 2018Ternium

39

Income Statement

USD million 3Q 2017 3Q 2016 9M 2017 9M 2016 2016 2015

Net sales 2,479.5 1,856.1 6,782.3 5,374.4 7,224.0 7,877.4

Cost of sales (1,917.0) (1,291.3) (5,081.6) (3,967.8) (5,384.4) (6,477.3)

Gross profit 562.6 564.8 1,700.7 1,406.6 1,839.6 1,400.2

Selling, general and administrative expenses (211.2) (168.4) (572.6) (512.5) (687.9) (770.3)

Other operating (expenses) income, net (1.5) 2.8 (21.3) 0.9 (9.9) 9.5

Operating income 349.8 399.1 1,106.8 895.0 1,141.7 639.3

Finance expense (29.2) (28.7) (74.7) (65.3) (90.0) (89.5)

Finance income 5.3 3.4 14.3 10.5 14.1 8.0

Other financial (expenses) income, net (4.8) 13.2 (75.5) 20.6 38.0 (17.9)

Equity in earnings of non-consolidated companies 15.5 0.8 52.1 8.1 14.6 (272.8)

Bargain purchase on acquisition of business - - - -

Profit before income tax expense 336.6 387.7 1,023.1 868.9 1,118.5 267.1

Income tax expense (103.8) (123.4) (198.2) (306.7) (411.5) (207.3)

Profit for the period 232.7 264.3 824.9 562.2 706.9 59.8

Attributable to:

Owners of the parent 194.9 228.9 706.0 477.2 595.6 8.1

Non-controlling interest 37.8 35.5 118.9 84.9 111.3 51.7


(Unaudited) (Unaudited) (Unaudited)

January 2018Ternium

40

Cash Flow Statement

USD million 3Q 2017 3Q 2016 9M 2017 9M 2016 2016 2015


Adjustments for:

Depreciation and amortization 116.3 103.1 321.9 303.0 406.9 433.8

Equity in earnings of non-consolidated companies (15.5) (0.8) (52.1) (8.1) (14.6) 272.8

Changes in provisions 0.6 (0.8) 1.9 0.9 1.7 3.2

Net foreign exchange results and others 9.5 (10.7) 119.5 (10.2) (33.9) 61.5

Interest accruals less payments 5.9 1.7 7.9 8.6 12.7 5.5

Income tax accruals less payments (7.4) 73.6 (317.0) 128.2 182.3 (23.9)

Results on the sale of participation in subsidiary company - - - - - 1.7

Changes in working capital (96.8) (210.1) (555.3) (163.0) (162.4) 509.1

Net cash provided by operating activities 245.3 220.4 351.8 821.5 1,099.6 1,323.5

Capital expenditures (100.4) (104.9) (282.9) (335.0) (435.5) (466.6)

Proceeds from the sale of property, plant and equipment 0.4 0.3 0.7 0.8 1.2 1.2

Sale of participation in subsidiary company, net of cash disposed - - - - - (0.7)

Investment in consolidated companies

Purchase consideration (1,891.0) - (1,891.0) - - -

Cash acquired 278.2 - 278.2 - - -

Investment in non-consolidated companies - Usiminas/Techgen - - - (114.4) (114.4) (9.6)

Dividends received from non-consolidated companies - - 0.1 0.1 0.2 -

Loans to non-consolidated companies - (25.2) (23.9) (77.2) (92.5) (10.4)

(Increase) Decrease in Other Investments (1.3) 6.4 (9.5) 40.5 86.3 (85.9)

Net cash used in investing activities (1,714.1) (123.4) (1,928.3) (485.3) (554.7) (572.1)

Dividends paid in cash to company's shareholders - - (196.3) (176.7) (176.7) (176.7)

Dividends paid in cash to non-controlling interest - - (30.6) (50.8) (50.8) (32.7)

Acquisition of non-controlling interest - - - - - (74.0)

Contributions from non-controlling shareholders in

consolidated subsidiaries - - - - - 30.9

Finance Lease payments - - (1.1) - - -

Proceeds from borrowings 1,953.9 183.0 2,812.2 793.5 910.6 822.7

Repayments of borrowings (279.0) (308.4) (806.3) (900.9) (1,191.8) (1,379.7)

Net cash (used in) provided by financing activities 1,674.8 (125.4) 1,778.0 (334.9) (508.7) (809.6)

Increase (decrease) in cash and cash equivalents 206.0 (28.4) 201.5 1.2 36.2 (58.2)

(Unaudited) (Unaudited)

January 2018Ternium

41

Balance Sheet

USD millionSeptember 30,

2017

December 31,

2016

Property, plant and equipment, net 5,023.7 4,136.0

Intangible assets, net 1,132.5 842.6

Investments in non-consolidated

companies488.1 418.4

Deferred tax assets 117.8 85.8

Receivables, net 360.6 132.6

Trade receivables, net 1.5 1.3

Other investments 3.4 6.0

Total non-current assets 7,127.7 5,622.6

Receivables 316.3 79.8

Derivative financial instruments 6.3 0.3

Inventories, net 2,357.2 1,647.9

Trade receivables, net 1,068.0 633.7

Other investments 157.2 144.9

Cash and cash equivalents 383.8 183.5

Total current assets 4,288.8 2,690.1

Non-current assets classified as held

for sale9.7 10.2

Total assets 11,426.2 8,322.9

USD millionSeptember 30,

2017

December 31,

2016

Capital and reserves attributable to

the owners of the parent4,888.0 4,391.3

Non-controlling interest 846.4 775.3

Total Equity 5,734.4 5,166.6

Provisions 121.8 7.0

Deferred tax liabilities 484.4 609.0

Other liabilities 394.3 302.8

Trade payables 3.2 9.3

Financial Lease Liabilities 65.8 -

Borrowings 1,795.4 396.7

Total non-current liabilities2,865.0 1,324.8

Current income tax liabilities 36.6 178.1

Other liabilities 371.6 228.1

Trade payables 992.0 603.1

Derivative financial instruments 0.1 0.3

Financial Lease Liabilities 11.7 -

Borrowings 1,414.9 821.9

Total current liabilities2,826.8 1,831.5

Total liabilities5,691.8 3,156.3

Total equity and liabilities 11,426.2 8,322.9

January 2018Ternium

42

1,856 1,8502,040

2,263

2,480

3Q16 4Q16 1Q17 2Q17 3Q17

Net Sales

(USD million)

3Q17 Results – Webcast PresentationConsolidated Net Sales

2,348 2,3782,475

2,641

3,070

3Q16 4Q16 1Q17 2Q17 3Q17

Steel Shipments

(thousand tons)

Mexico53%

Other Markets

25%

Southern Region22%

Steel Shipments 3Q17

1 Southern Region encompasses the steel markets of Argentina,

Bolivia, Chile, Paraguay and Uruguay.

789

855

802

690

720

750

780

810

840

870

900

3Q16 4Q16 1Q17 2Q17 3Q17

Revenue per ton(USD/ton)

-6%

1

10%16%

January 2018Ternium

43

1,173 1,128

1,300

1,4241,349

3Q16 4Q16 1Q17 2Q17 3Q17

-5%Net Sales

(USD million)

3Q17 Results– Webcast PresentationMexico Net Sales

1,529 1,5251,663 1,720

1,625

3Q16 4Q16 1Q17 2Q17 3Q17

Steel Shipments

(thousand tons)

767

828 830

620

660

700

740

780

820

860

3Q16 4Q16 1Q17 2Q17 3Q17


-6%

January 2018Ternium

44

535578

545599

666

3Q16 4Q16 1Q17 2Q17 3Q17

11%

452498 511

564

619

3Q16 4Q16 1Q17 2Q17 3Q17

Net Sales

(USD million)

3Q17 Results – Webcast PresentationSouthern Region Net Sales

845

940929

790

820

850

880

910

940

970

1,000

3Q16 4Q16 1Q17 2Q17 3Q17


10%

Steel Shipments

(thousand tons)

January 2018Ternium

45

227 218 224

271

495

3Q16 4Q16 1Q17 2Q17 3Q17

3Q17 Results – Webcast PresentationOther Markets Net Sales

283 276 267321

779

3Q16 4Q16 1Q17 2Q17 3Q17

143%

803

844

636

600

630

660

690

720

750

780

810

840

870

900

3Q16 4Q16 1Q17 2Q17 3Q17


83%

-25%

Net Sales

(USD million)

Steel Shipments

(thousand tons)

January 2018Ternium

46

3Q17 Results– Webcast PresentationEBITDA

111

2

17

(163)

498466

0

100

200

300

400

500

600

EBITDA

2Q17

Shipments Price/Mix Cost Other EBITDA

3Q17

US

D M

illi

on

January 2018Ternium

47

First 9M 2017 Results– Webcast PresentationEBITDA

180

813

(749) (14)

1,198

1,429

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2,200

EBITDA

9M16

Shipments Price/Mix Cost Other EBITDA

9M17

US

D M

illi

on

January 2018Ternium

48

3Q17 Results – Webcast PresentationNet Results

Equity in Earnings of non-

consolidated companies

38 0

(43) (45)

282

233

0

50

100

150

200

250

300

350

Net Income2Q17

OperatingIncome

Net FinancialResults

Income Tax Net Income3Q17

US

D M

illi

on

January 2018Ternium

49

First 9M 2017 Results– Webcast PresentationNet Results

212

44

109

(102)

562

825

0

100

200

300

400

500

600

700

800

900

Net Income9M16

OperatingIncome

Net FinancialResults

Income Tax Net Income9M17

US

D M

illi

on

Equity in Earnings of non-

consolidated companies

January 2018Ternium

50

3Q17 Results– Webcast PresentationFree Cash Flow

5

(18)

(111)

(97)

(100)

466

145

0

100

200

300

400

500

600

EBITDA

3Q17

Cash

financialresults

Cash income

tax

Changes in

workingcapital

Other Capex Free

cash flow3Q17

US

D M

illi

on

January 2018Ternium

51

First 9M 2017 Results– Webcast PresentationFree Cash Flow

46

(52)

(515)

(555)

(283)

1,429

690

200

400

600

800

1,000

1,200

1,400

1,600

EBITDA9M17

Cashfinancialresults

Cash incometax

Changes inworkingcapital

Other Capex Freecash flow

9M17

US

D M

illi

on

Inventories: +USD318 million• steel price +USD189 million• steel volume +USD85 million• raw materials and other

(price/volume) +USD44 millionTrade and other receivablesand payables (net): +USD141 million

January 2018Ternium

52

1.10.9 0.9

1.2

2.7

3Q16 4Q16 1Q17 2Q17 3Q17

3Q17 Results– Webcast PresentationFree Cash Flow and Net Financial Debt

Free cash flow

(USD million)

Cash from operations

(USD million)

Capital expenditures

(USD million)

Net debt and net debt to EBITDA ratio1

(USD billion)

0.7x 0.6x 0.7x

1 Last 12 months EBITDA

1.5x0.5x

220

278

86

21

245

3Q16 4Q16 1Q17 2Q17 3Q17

115

178

2

(78)

145

3Q16 4Q16 1Q17 2Q17 3Q17

105 100

84

99 100

3Q16 4Q16 1Q17 2Q17 3Q17

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