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Ternium I January 20201As of January 6, 2020

Investor PresentationJanuary 2020

Ternium I January 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.


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

Vertically integrated, from iron ore mines to service centers

Focus on high value-added products

Participation in Usiminas1 control group

Integrated Facilities

Countries People

Downstream Facilities

Distribution Centers

Service Centers

Integrated Facilities

15

24

Mexico; 50%

Brasil

USA

Southern Region; 15%

Steel Shipments 9M19

ColombiaOther

Other Markets,35%

Slabs


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

1,71,5

dic-15 dic-16 dic-17 dic-18 sep-19

0.9x1

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 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, 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

21,7

6,6

24,7

1990 2000 2010

BrasilMexico

2019e

2,7

4,1

1,1

3,7

1990 2000 2010

ArgentinaColombia

2019e

Apparent steel use (million tons)

Source: Alacero October 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

Painting line started up in July 2019

Galvanizing line started up in December 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: first quarter 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)


Short-Term Trends


10,0 9,6

9,6 9,8

11,6 13,0

2015 2016 2017 2018 9M 19

Steel Shipments (million tons)

Ternium’s PerformanceEbitda margin going back to historical range

836

514

857

664

(25)

1.219

2015 2016 2017 2018 9M 19

Free Cash Flow ($ million)

347

748

467 435 409520

2015 2016 2017 2018 9M 19

Capital Expenditures ($ million)

1.0731.549

1.931

2.1851.251

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 9M 19

Ebitda ($ million) and Ebitda Margin

2,698


Ternium’s PerformanceQuarterly EBITDA and Net Income

856

513 468402 382

3Q18 4Q18 1Q19 2Q19 3Q19

EBITDA ($ million)29%

19%17%

15% 16%

3Q18 4Q18 1Q19 2Q19 3Q19

EBITDA Margin (% of net sales)

273

173146

120 125

3Q18 4Q18 1Q19 2Q19 3Q19

EBITDA per Ton1 ($)

1 Consolidated EBITDA divided by steel shipments.

561435

225 207 111

2,67

1,79

1,11 0,94

0,48

3Q18 4Q18 1Q19 2Q19 3Q19

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 Third Quarter and First Nine Months 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 Sales

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

Mexico 1,334.9 1,521.3 -12% 1,628.6 1,525.2 7% 820 997 -18%Southern Region 406.0 506.9 -20% 503.8 546.5 -8% 806 928 -13%Other Markets 594.7 867.9 -31% 924.3 1,071.3 -14% 643 810 -21%Total steel products 2,335.6 2,896.2 -19% 3,056.8 3,143.0 -3% 764 921 -17%

Other products1 83.9 102.8 -18%Total steel segment 2,419.5 2,999.0 -19%

Total mining segment 111.7 66.6 68% 904.4 914.5 -1% 124 73 70%Intersegment eliminations (111.7) (66.4) 68%

Total net sales 2,419.5 2,999.2 -19%

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

Mexico 1,334.9 1,367.7 -2% 1,628.6 1,569.3 4% 820 872 -6%Southern Region 406.0 402.5 1% 503.8 507.8 -1% 806 793 2%Other Markets 594.7 870.0 -32% 924.3 1,255.7 -26% 643 693 -7%Total steel products 2,335.6 2,640.2 -12% 3,056.8 3,332.7 -8% 764 792 -4%

Other products1 83.9 85.6 -2%Total steel segment 2,419.5 2,725.8 -11%

Total mining segment 111.7 76.8 45% 904.4 835.1 8% 124 92 34%Intersegment eliminations (111.7) (76.8) 45%

Total net sales 2,419.5 2,725.8 -11%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)


Income Statement

USD million 3Q 2019 3Q 2018 9M 2019 9M 2018

Net sales 2,419.5 2,999.2 7,853.4 8,818.7 Cost of sales (1,994.1) (2,078.3) (6,436.1) (6,423.5)Gross profit 425.4 920.9 1,417.4 2,395.2

Selling, general and administrative expenses (208.3) (216.9) (663.7) (674.7)

Other operating income (expenses), net 7.3 4.9 13.3 5.2 Operating income 224.4 708.9 766.9 1,725.7

Finance expense (25.4) (40.1) (66.3) (101.6)

Finance income 8.9 5.1 21.2 15.4

Other financial expenses, net (15.6) (54.9) (17.2) (154.2)

Equity in earnings of non-consolidated companies 1.9 22.6 37.1 54.9

Profit before income tax expense 194.1 641.6 741.7 1,540.3

Income tax expense (83.5) (80.8) (198.5) (313.6)Profit for the period 110.6 560.8 543.2 1,226.7

Attributable to:Owners of the parent 94.5 523.6 497.6 1,156.1 Non-controlling interest 16.1 37.2 45.6 70.6 Profit for the period 110.6 560.8 543.2 1,226.7

(Unaudited) (Unaudited)


Cash Flow Statement

USD million 3Q 2019 3Q 2018 9M 2019 9M 2018

Profit for the period 110.6 560.8 543.2 1,226.7 Adjustments for:Depreciation and amortization 157.3 147.5 484.3 459.2 Equity in earnings of non-consolidated companies (1.9) (22.6) (37.1) (54.9)Changes in provisions 0.4 0.3 (2.3) 1.3 Net foreign exchange results and others 18.4 (86.7) 30.0 (19.3)Interest accruals less payments 2.2 (5.9) 10.6 (13.0)Income tax accruals less payments 15.8 (43.7) (181.7) (76.3)Changes in working capital 208.4 (92.9) 414.8 (341.0)

Net cash provided by operating activities 511.3 456.8 1,261.8 1,182.6

Capital expenditures (257.3) (116.9) (748.4) (346.5)Proceeds from the sale of property, plant & equipment — 0.2 0.5 0.6 Dividends received from non-consolidated companies — —(Loans to) recovery from non-consolidated companies — (24.5) 24.5 (24.5)Decrease in Other Investments (184.4) 52.3 (166.5) 58.6

Net cash used in investing activities (445.9) (88.9) (894.0) (311.7)

Dividends paid in cash to company's shareholders — — (235.6) (215.9)Dividends paid in cash to non-controlling interest — — (24.5) (20.9)Financial Lease Payments (12.8) (1.2) (36.2) (5.0)Proceeds from borrowings 263.6 579.2 1,133.0 1,105.2 Repayments of borrowings (448.2) (762.9) (802.0) (1,648.2)

Net cash (used in) provided by financing activities (197.4) (184.9) 34.7 (784.9)

(Decrease) increase in cash and cash equivalents (131.9) 183.1 402.4 86.0

(Unaudited) (Unaudited)


Balance Sheet

September 30, December 31,2019 2018(Unaudited) (Audited)

Property, plant and equipment, net 6,295.8 5,817.6 Intangible assets, net 945.0 1,012.5 Investments in non-consolidated companies 494.4 495.2 Deferred tax assets 128.5 134.2 Receivables, net 569.9 649.4 Trade receivables, net 1.8 4.8 Derivative financial instruments 0.0 0.8 Other investments 4.1 7.2Total non-current assets 8,439.5 8,121.8

Receivables 375.0 309.8 Derivative financial instruments 4.7 0.8 Inventories, net 2,336.3 2,689.8 Trade receivables, net 994.8 1,128.5 Other investments 214.0 44.5 Cash and cash equivalents 637.7 250.5Total current assets 4,562.5 4,423.9

Non-current assets classified as held for sale 2.1 2.1

Total assets 13,004.1 12,547.9

USD million September 30, December 31,2019 2018

Capital and reserves attributable to the owners of the parent 6,536.3 6,393.3Non-controlling interest 1,058.5 1,091.3

Total Equity 7,594.8 7,484.6

Provisions 593.9 644.0

Deferred tax liabilities 445.5 474.4 Other liabilities 424.7 414.5 Trade payables 0.9 0.9 Derivative financial instruments 0.1 - Lease Liabilities 279.3 65.8 Borrowings 1,751.3 1,637.1Total non-current liabilities 3,495.7 3,236.8

Current income tax liabilities 32.4 150.3 Other liabilities 295.3 351.2 Trade payables 918.4 904.2 Derivative financial instruments 5.7 13.0 Financial Lease Liabilities 46.3 8.0 Borrowings 615.5 399.9Total current liabilities 1,913.6 1,826.5

Total liabilities 5,409.3 5,063.3

Total equity and liabilities 13,004.1 12,547.9

USD million


Mexico

1.525 1.523 1.563 1.569 1.629

3Q18 4Q18 1Q19 2Q19 3Q19

546 505442

508 504

3Q18 4Q18 1Q19 2Q19 3Q19

Southern Region

Third Quarter 2019 Results – Webcast PresentationSteel Shipments

744 670880 950

643

1.071935

1.199 1.256

924

3Q18 4Q18 1Q19 2Q19 3Q19

Slabs

Other Markets

-26%

Mexico53%

Other Markets30%

Brazil

USASouthern Region16%

Steel Shipments 3Q19

Colombia

Other

4%


Third Quarter 2019 Results – Webcast PresentationRevenue per Ton and Total Shipments

921866

822 792 764

997 945

911 872

820

600

700

800

900

1.000

1.100

3Q18 4Q18 1Q19 2Q19 3Q19

Revenue per Ton ($/ton)

-6%

-4%

2.9992.636 2.708 2.726

2.419

3Q18 4Q18 1Q19 2Q19 3Q19

Net Sales ($ million)

3.143 2.964 3.205 3.3333.057

3Q18 4Q18 1Q19 2Q19 3Q19

-8%

Total Shipments (thousand tons)

Mexico

Consolidated

Steel prices in North America

Downward trend resumed, mainly during Oct’19

Spot steel prices currently appear to be bottoming out

Industrial contracts realized prices in Mexico to continue decreasing in 4Q19 due to lagged price reset

-11%


(11)

(30)(18)

(38)207

111

Net Income2Q19

OperatingIncome

Net FinancialResults

Income Tax Net Income3Q19

(33)

13

402 382

EBITDA2Q19

Shipments Ebitda per Ton EBITDA3Q19

Third Quarter 2019 Results – Webcast PresentationEBITDA and Net Results

Net Income3Q19

Net Income2Q19

Equity in Earnings of

non-consolidated Companies

(mill

ion

$)

(mill

ion

$)

EBITDA 2Q19

EBITDA 3Q19

Lower slab shipments to third parties in 3Q19

Higher finished steel shipments in Mexico

Lower prices in Mexico and Other Markets

Lower costs in 3Q19 despite better value-added sales mix

Impact in financial results from FX fluctuation in Argentina

High effective tax rate in 3Q19 due to a FX effect on deferred taxes versus a low effective tax rate in 2Q19


(959)

178

(18)

1151.227

543

Net Income9M18

OperatingIncome

Net FinancialResults

Income Tax Net Income9M19

(86)

(848)2.185

1.251

EBITDA 9M18 Shipments Ebitda Per ton EBITDA 9M19

First Nine Months 2019 Results – Webcast PresentationEBITDA and Net Results

Equity in Earnings of

non-consolidated Companies

EBITDA 9M18

EBITDA 9M19

Net Income9M19

Net Income 9M18

(mill

ion

$)

(mill

ion

$)

Lower shipments in Mexico in 9M19 on softer commercial market (and strong 9M18 in anticipation of rising steel prices)

Lower shipments in Argentina on weaker steel demand

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

Lower prices in Ternium’s markets in 9M19 (after strong pricing in 9M18)

Higher cost of raw materials, lower cost of labor

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

Ebitda per Ton


117

174211

280257

3Q18 4Q18 1Q19 2Q19 3Q19

Third Quarter 2019 Results – Webcast PresentationFree Cash Flow and Net and Financial Debt

2,1

1,71,4

1,71,5

sep-18 dic-18 mar-19 jun-19 sep-19

0.9x1

Net Debt ($ billion)

0.8x 0.6x 0.6x

1 Net Debt/EBITDA Ratio (last 12 months EBITDA)

0.8x

Capital Expenditures ($ million)

340 383

269

(9)

254

3Q18 4Q18 1Q19 2Q19 3Q19

Free Cash Flow ($ million)

457

557479

271

511

3Q18 4Q18 1Q19 2Q19 3Q19

Cash from Operations ($ million)


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