Investor Presentation September 2019 · Ternium I September 2019 4 Ternium’s Profile A leading...

Ternium I September 20191As of September 4, 2019

Investor PresentationSeptember 2019

Ternium I September 20192

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.


Profile and Performance


Ternium’s ProfileA leading steel company in Latin America

Net sales of $11.5 billion in 2018

Steel shipments in 2018 of 13.0 million tons

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

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

Mexico, 48%

Brasil

USA

Southern Region, 15%

Steel Shipments 1H19

ColombiaOther

Other Markets,37%

Vertically integrated, from iron ore mines to service centers

Focus on high value-added products

Participation in Usiminas1 control groupSlabs

Integrated Facilities

Countries People

Downstream Facilities

Distribution Centers

Service Centers

Integrated Facilities


Sustainable ProfitabilityA comprehensive management approach

Proactive approach to environment, health and safety (EHS) management

Focus on differentiation through sophisticated products and services

Deep ties with our communities

Commitment to integrity

Recruitment, training and retention of talent

Quest for excellence in industrial management and technology

Fostering of steel value chain

Economic Value Generated and Distributed (2018)

Economic value

generated $11.5 B

Suppliers$7.7 B

Employees $941 M

Capex$520 M

Taxes $713 M

Capital providers$368 M

Research & development

$8.9 M

Community investments

$9.5 M


Sustainable ProfitabilityStrong commitment to the environment, health and safety

Standardized Environment Health & Safety (EHS) management systems

Extensive training and management performance accountability on EHS

Dupont program and certification of EHS systems

Health and safety OHSAS 18001

Environment ISO 14001

Energy saving ISO 50001

Investment in best available technologies to reduce environmental footprint and safety risk

1.1 1.1 1.0 0.8 0.7

2014 2015 2016 2017 2018

Lost time injury frequency rate (# of events / million hours worked)


Sustainable ProfitabilityCommitment to integrity through strong corporate governance

Audit committee (three 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 and related party transactions

Employee accountability and training to ensure a transparent behavior

Confidential channels to report non-compliant behavior

Codes Policies Procedures

Conduct for all Transparency Relevant

employees Business conduct information

Ethics for senior Antifraud Related party

financial officers Securities trading transactions

Conduct for Human rights

suppliers


Supporting 1,600 SMEs (customers and suppliers) through:

Training programs

Industrial projects and business consultancy

Institutional assistance

Commercial support and financial aid

Playing an active role at:

Universities

Business schools

Government agencies

Industrial associations

“ProPymes has helped create an industrial networkthat encourages the professionalization and quest forexcellence of SMEs.”

Sustainable ProfitabilityFostering the steel industry value chain in Mexico and Argentina


Sustainable ProfitabilityDeep ties with our communities

Working together with local institutions to enhance the education and welfare of our communities

Scholarships, internships, teachers’ training, infrastructure funding, volunteering programs

Health prevention campaigns, infrastructure funding, sports sponsoring

Integration (social and arts events) New technical school in Pesquería

Volunteer programs for school repairHeritage Photo Archive


1.10.9

2.7

1.7 1.7

Dec-15 Dec-16 Dec-17 Dec-18 Jun-19

0.8x1

Sustainable ProfitabilitySound capital structure and consistent dividend payments

Solid financial position, with net debt to EBITDA ratio1 in a range of 0.6x to 1.4x in the last five years

Growing dividend payments, with a 33% increase in the last five years (5% dividend yield2 in 2019)

Strong operating cash flow based on sustainable profitability

1 Net Debt/EBITDA Ratio (last 12 months EBITDA)2 Dividend of $1.20 per ADS in 2019 divided by average stock price YTD 2019 (Source: Bloomberg)

1.1x

0.90 0.901.00

1.101.20

2015 2016 2017 2018 2019

Dividends Payments ($ per ADS)

Net Debt ($ billion)

0.6x 1.4x 0.6x


Developing Ternium’s industrial system


Our Main Steel Markets The Mexican steel market became the largest in Latin America

Mexico’s steel consumption CAGR of 5.8% in the last decade, among the highest in the region, driven by a dynamic manufacturing industry

Mexico, Brazil, Argentina and Colombia account for approximately 81% of Latin America’s steel consumption

9.7

21.1

6.6

25.4

1990 2000 2010

BrasilMexico

2018

2.7

4.8

1.1

3.4

1990 2000 2010

ArgentinaColombia

2018

Apparent steel use (million tons)

Source: Alacero March 2019


A Growth Opportunity for TerniumIncrease in Mexican steel consumption led by industrial sector

Mexican industrial sector demanding increasingly sophisticated steel products and services

Steel imports continue to have a significant participation in steel consumption in the Mexican market

Majority of steel imports consist in value-added products for the industrial sector

Ternium has an opportunity to further increase its capabilities in Mexico to substitute imports of high-end products

Source: Alacero / Ternium estimates

55%55%

5.1

7.111.4

15.9

2011 2018

Local Imports

45%

45%

Apparent flat steel use – Mexico (million tons)

5.0

5.711.4

15.9

2011 2018

Industrial Commercial

36%

44%

64%56%


The Next Phase in Ternium’s DevelopmentTernium currently carrying out a significant transformation of its industrial system

7.3

12.4

Dec´16 Dec´17

+71%

Crude steel capacity(million tons / year)

8.9

13.4

Dec´16 Dec´20f

+50%

Hot-rolled coils capacity (million tons / year)

2.8

3.4

Dec´16 Dec´20f

+20%

HDG steel capacity(million tons / year)

0.9

1.1

Dec´16 Jul´19

+18%

Pre-painted capacity(million tons / year)

Crude steel capacity up 71% after the acquisition ofthe Rio de Janeiro facility in September 2017

Hot-rolled coils capacity to increase 50% with theaddition of a new hot rolling mill at the Pesqueríaindustrial center

Expansion of our footprint in Mexico with cutting-edge new products


Ternium BrasilA strong foundation for Ternium’s next phase of development

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

Realize cost reduction opportunities Coordinated procurement effort (Exiros) IT integration Inventory optimization Benchmarking


New Hot Rolling Mill at Pesquería Industrial CenterLinking Ternium’s industrial systems in Brazil and Mexico

Significant technological upgrade to expand TX’s product range in Mexico

Aimed at replacing high value-added steel imports and improving customer service

Targeting the automotive industry, as well as the home appliance, machinery, energy and construction sectors

Annual production capacity of 4.1 million tons (option to increase capacity to 4.8 million tons)

Expected start up: end of 2020

Total investment of $1.1 billion


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

New hot-dipped galvanizing and painting lines

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

Most advanced painting technology in Mexico

Annual production capacity:

Galvanizing: 350,000 tons

Painting: 120,000 tons

Galvanizing line expected start up during the third quarter 2019

Painting line started up in July 2019

Total investment of $280 million


ColombiaGrowth opportunity in the long steel market

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

Greenfield rebar facility under construction

Annual capacity of 520,000 tons

Start up: beginning of 2020

Total investment of $90 million


Main Steel Markets


Access to the North American steel market through NAFTA (or USMCA once ratified)

Developed industrial sector (approximately 56% of Ternium’s total shipments in 2018)

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

MexicoAttractive steel market with a significant demand for high-end steel products

Commercial, 44%

Automotive, 28%

Other industries, 11%

Home appliances, 9%

HVAC / lighting, 8%

Ternium’s steel shipments by industry (2018)


ArgentinaThird largest steel market in Latin America with a developed industrial sector

Source: Alacero / Ternium estimates

Significant industrial customer base representing approximately 53% of Ternium’s total shipments (2018)

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 home appliance, transportation and renewable energy)

Commercial, 47%Automotive, 17%

Agribusiness, 5%

Home appliance, 4%

Cans, 5%

Oil & gas, 7%

Other industrial, 15%

Ternium’s steel shipments by industry (2018)


Steel Markets Trends


Ternium’s PerformanceEbitda margin going back to historical range

6.1

9.6 9.811.6

13.0

6.5

2015 2016 2017 2018 1H 19

Steel shipments (million tons)

496

264

857

664

(25)

1,219

2015 2016 2017 2018 1H 19

Free Cash Flow ($ million)

230

485

467 435 409

520

2015 2016 2017 2018 1H 19

Capital Expenditures ($ million)

1,0731,549

1,931

1,328884

14%

21%20%

24%

16%

-4%

1%

6%

11%

16%

21%

26%

-400

100

600

1,100

1,600

2,100

2,600

3,100

3,600

2015 2016 2017 2018 1H 19

Ebitda ($ million) and Ebitda Margin

2,698


Ternium’s PerformanceQuarterly EBITDA and Net Income

725

856

513 474410

2Q18 3Q18 4Q18 1Q19 2Q19

EBITDA ($ million)

24%

29%

19%17%

15%

2Q18 3Q18 4Q18 1Q19 2Q19

EBITDA Margin (% of net sales)

218

273

173148

123

2Q18 3Q18 4Q18 1Q19 2Q19

EBITDA per Ton1 ($)

1 Consolidated EBITDA divided by steel shipments.

289

561435

224 206

1.50

2.67

1.79

1.11 0.92

2Q18 3Q18 4Q18 1Q19 2Q19

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


Conclusion


Conclusion

Consistently strong results and attractive growth opportunities in Latin America

Solid financial position and increasing dividend payments

Successful implementation of business strategy geared toward sustainable profitable growth

TX Brasil integration and new investment program provide opportunity to strengthen business in the region

Continued focus on generating long-term shareholder value


Appendix

Corporate Structure

Production Capacity

CSA Acquisition

Shipments and Net Sales

Income Statement

Cash Flow Statement

Balance Sheet

Selected Webcast Presentation Slides Second Quarter and First Half 2019


Economic participation

1 Participation based on ordinary shares distributed2 Participation based on total shares distributed3 Net of non-controlling interest in TX Argentina4 Formerly known as Siderar5 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%

Ternium Int. Guatemala

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 Int. Guatemala 100% 100%

TX USA 100% 100%

Las Encinas 71% 17% 89%

Peña Colorada 36% 9% 45%

Corporate Structure


Mexico Argentina Other (1)Total

Slabs 2.4 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 6.4 2.9 9.3

Rebars & wire rods 1.2 0.2 1.4

Cold rolled coils 3.6 1.8 5.4

Tinplated products 0.2 0.2

Galvanized products 2.0 0.7 0.3 3.0

Pre-painted products 0.6 0.1 0.2 0.9

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 2018 (million metric tons per year)


CSA Acquisition – Ternium BrasilThe Transaction

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 an agreement to supply slabs to thyssenkrupp’s former Calvert re-rolling facility in the U.S. (amended in Dec17)

Ternium disbursed EUR1.4 billion on a cash-free, debt-free basis, for the acquisition of both the tkSIshares and the slab supply agreement

The transaction was financed with a five-year syndicated term loan facility in a principal amount of $1.5 billion

Ternium began consolidating tkSI’s balance sheet and results of operations in its consolidated financial statements in Sep17

Upon closing, CSA name was changed to Ternium Brasil


CSA Acquisition – Ternium BrasilThe Assets

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 at the time 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, Terniumcustomers 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.”


Shipments and Net SalesSecond Quarter and First Half 2019

2Q 2019 2Q 2018 Dif. 2Q 2019 2Q 2018 Dif. 3Q 2Q 2019 2Q 2018 Dif.

Mexico 1,370.6 1,657.4 -17% 1,569.3 1,721.7 -9% 873 963 -9%Southern Region 484.9 478.5 1% 507.8 604.2 -16% 955 792 21%Other Markets 872.2 778.0 12% 1,255.7 995.8 26% 695 781 -11%Total steel products 2,727.7 2,913.9 -6% 3,332.7 3,321.6 0% 818 877 -7%

Other products1 85.7 107.9 -21%Total steel segment 2,813.4 3,021.8 -7%

Total mining segment 76.8 73.7 4% 835.1 915.6 -9% 92 81 14%Intersegment eliminations (76.8) (73.1) 5%

Total net sales 2,813.4 3,022.4 -7%1 The item “Other products” primarily includes Ternium Brasil’s and Ternium México’s electricity sales.

1H 2019 1H 2018 Dif. 1H 2019 1H 2018 Dif. 3Q 1H 2019 1H 2018 Dif.

Mexico 2,798.1 3,172.8 -12% 3,132.7 3,496.2 -10% 893 907 -2%Southern Region 916.6 952.1 -4% 950.0 1,249.5 -24% 965 762 27%Other Markets 1,723.6 1,502.4 15% 2,454.5 2,098.7 17% 702 716 -2%Total steel products 5,438.3 5,627.3 -3% 6,537.2 6,844.5 -4% 832 822 1%

Other products1 160.4 191.4 -16%Total steel segment 5,598.7 5,818.7 -4%

Total mining segment 152.6 143.5 6% 1,755.0 1,844.9 -5% 87 78 12%Intersegment eliminations (152.6) (142.7) 7%

Total net sales 5,598.7 5,819.4 -4%

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

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


Income Statement

$ million 2Q 2019 2Q 2018 1H 2019 1H 2018

Net sales 2,813.4 3,022.4 5,598.7 5,819.4 Cost of sales (2,325.0) (2,212.4) (4,583.3) (4,345.2)Gross profit 488.3 810.0 1,015.4 1,474.3

Selling, general and administrative expenses (250.4) (234.0) (475.6) (457.8)

Other operating income (expenses), net 0.4 (5.5) 5.9 0.3 Operating income 238.3 570.5 545.7 1,016.7

Finance expense (21.7) (31.3) (41.7) (61.4)

Finance income 6.6 5.3 12.6 10.3

Other financial expenses, net 9.5 (75.5) (2.1) (99.3)

Equity in earnings of non-consolidated companies 20.3 12.4 35.2 32.3

Profit before income tax expense 253.1 481.4 549.7 898.7

Income tax expense (47.3) (192.2) (119.8) (232.8)Profit for the period 205.7 289.3 429.9 665.9

Attributable to:Owners of the parent 181.1 293.7 398.9 632.5 Non-controlling interest 24.6 (4.4) 31.0 33.4 Profit for the period 205.7 289.3 429.9 665.9

(Unaudited) (Unaudited)


Cash Flow Statement

$ million 2Q 2019 2Q 2018 1H 2019 1H 2018

Profit for the period 205.7 289.3 429.9 665.9 Adjustments for:Depreciation and amortization 171.7 154.4 337.9 311.6 Equity in earnings of non-consolidated companies (20.3) (12.4) (35.2) (32.3)Changes in provisions 1.7 (0.1) (2.7) 1.0 Net foreign exchange results and others 4.9 69.8 1.0 67.4 Interest accruals less payments 8.7 5.5 8.3 (7.1)Income tax accruals less payments (134.0) 67.5 (192.4) (32.7)Changes in working capital 31.3 (35.5) 202.6 (248.1)

Net cash provided by operating activities 269.6 538.4 749.6 725.8

Capital expenditures (273.9) (131.9) (485.1) (229.6)Proceeds from the sale of property, plant & equipment 0.3 0.2 0.5 0.4 Recovery / (Loans) to non-consolidated companies 0.0 4.8 24.5 0.0 Decrease in Other Investments 35.2 13.7 17.9 6.3

Net cash used in investing activities (238.4) (113.2) (442.2) (222.9)

Dividends paid in cash to company's shareholders (235.6) (215.9) (235.6) (215.9)Dividends paid in cash to non-controlling interest (29.6) (20.9) (29.6) (20.9)Financial Lease Payments (10.6) (2.5) (23.4) (3.8)Proceeds from borrowings 703.2 298.9 869.4 526.0 Repayments of borrowings (143.7) (477.7) (353.8) (885.4)

Net cash (used in) provided by financing activities 283.7 (418.2) 227.0 (600.0)

Increase (Decrease) in cash and cash equivalents 315.0 7.1 534.3 (97.1)

(Unaudited) (Unaudited)


Balance Sheet

June 30, December 31,2019 2018

(Unaudited)

Property, plant and equipment, net 6,375.1 5,817.6 Intangible assets, net 968.6 1,012.5 Investments in non-consolidated companies 534.0 495.2 Deferred tax assets 139.4 134.2 Receivables, net 621.7 649.4 Trade receivables, net 2.8 4.8 Derivative financial instruments 0.2 0.8 Other investments 5.1 7.2Total non-current assets 8,646.9 8,121.8

Receivables 390.8 309.8 Derivative financial instruments 0.1 0.8 Inventories, net 2,447.6 2,689.8 Trade receivables, net 1,289.5 1,128.5 Other investments 28.6 44.5 Cash and cash equivalents 777.5 250.5Total current assets 4,934.2 4,423.9

Non-current assets classified as held for sale 2.1 2.1

Total assets 13,583.3 12,547.9

$ million June 30, December 31,2019 2018

(Unaudited)

Capital and reserves attributable to the owners of the parent 6,630.3 6,393.3Non-controlling interest 1,137.6 1,091.3

Total Equity 7,767.9 7,484.6

Provisions 646.1 644.0 Deferred tax liabilities 470.2 474.4 Other liabilities 434.0 414.5 Trade payables 1.0 0.9 Financial Lease Liabilities 290.0 65.8 Borrowings 1,829.1 1,637.1Total non-current liabilities 3,670.5 3,236.8

Current income tax liabilities 26.8 150.3 Other liabilities 321.6 351.2 Trade payables 1,014.3 904.2 Derivative financial instruments 3.8 13.0 Financial Lease Liabilities 52.3 8.0 Borrowings 726.2 399.9Total current liabilities 2,144.9 1,826.5

Total liabilities 5,815.4 5,063.3

Total equity and liabilities 13,583.3 12,547.9

$ million


Mexico

1,7221,525 1,523 1,563 1,569

2Q18 3Q18 4Q18 1Q19 2Q19

604546 505

442508

2Q18 3Q18 4Q18 1Q19 2Q19

Southern Region

Webcast Presentation - Second Quarter 2019 ResultsSteel Shipments

15%

659 744 670880 950

996 1,071935

1,199 1,256

2Q18 3Q18 4Q18 1Q19 2Q19

Slabs

Other Markets

5%

Mexico47%

Other Markets38%

Brazil

USASouthern Region

15%

Steel Shipments 2Q19

ColombiaOther


Webcast Presentation - Second Quarter 2019 ResultsRevenue per Ton and Total Shipments

877

921

866846

818

963997

945 913

873

750

800

850

900

950

1,000

1,050

2Q18 3Q18 4Q18 1Q19 2Q19

Revenue per Ton ($/ton)

-4%

-3%

3,022 2,9992,636 2,785 2,813

2Q18 3Q18 4Q18 1Q19 2Q19

Net Sales ($ million)

3,322 3,143 2,964 3,205 3,333

2Q18 3Q18 4Q18 1Q19 2Q19

4%

Total Shipments (thousand tons)

Mexico

Consolidated

Steel prices in North America

Downward trend continued during 2Q19

Steel prices rebounding after bottoming out in Jul’19

Industrial contracts realized prices in Mexico to continue decreasing in 3Q19 due to lagged price reset

1%


19

(83)

474410

EBITDA1Q19

Shipments Ebitda per Ton EBITDA2Q19

(69)

20 525

224 206

Net Income1Q19

OperatingIncome

Net FinancialResults

Income Tax Net Income2Q19

Webcast Presentation - Second Quarter 2019 ResultsEBITDA and Net Results

Net Income2Q19

Net Income1Q19

Equity in Earnings of

non-consolidated Companies

(mill

ion

$)

(mill

ion

$)

EBITDA 1Q19

EBITDA 2Q19

Higher shipments in all regions in 2Q19

Weaker pricing environment in the U.S. and Mexican markets

Lower FX losses mainly at Ternium’sArgentine subsidiary due to better ARP performance

Lower inflation adjustment gains at Ternium’s Argentine subsidiary on easing inflation

Higher earnings from Usiminas

Lower effective tax rate mainly due to application of inflation adjustments for tax purposes in Argentina


(471)

119 3

113

666

430

Net Income1H18

OperatingIncome

Net FinancialResults

Income Tax Net Income1H19

(60)

(385)1,328

884

EBITDA1H 2018

Shipments Ebitda per Ton EBITDA1H 2019

Webcast Presentation - First Half 2019 ResultsEBITDA and Net Results

Equity in Earnings of

non-consolidated Companies

EBITDA 1H18

EBITDA 1H19

Net Income1H19

Net Income 1H18

(mill

ion

$)

(mill

ion

$)

Lower shipments in Mexico in 1H19 on soft commercial market, compared to strong 1H18

Lower shipments in Argentina on weaker steel demand

Higher shipments in Other Markets (mainly slabs to third parties)

Higher cost of sales (purchased slab, raw material, energy, maintenance, depreciation)

Lower net indebtedness and average interest rates and better FX fluctuations related results

Lower effective tax rate


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