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Ternium I February 20201As of February 19, 2020

Investor PresentationFebruary 2020

Ternium I February 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 $11.2 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 People

Downstream Facilities

Distribution Centers

Service Centers

Integrated Facilities

15

24

Mexico; 50%

Brasil

USA

Southern Region; 15%

Steel Shipments 2019

ColombiaOther

Other Markets,34%

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 1.00.7 0.7 0.8

2015 2016 2017 2018 2019

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


Sustainable ProfitabilitySound capital structure and consistent dividend payments

Attractive dividend payments in 2019 with

5% dividend yield1

42% payout ratio

Solid financial position, with net debt to EBITDA ratio2 of 1.0 times in 2019

Strong operating cash flow based on sustainable profitability

Dividends Payments ($ per ADS)

Net Debt ($ billion)

1.10.9

2.7

1.71.5

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

1.1x 0.6x 1.4x 0.6x 1.0x2

0.901.00

1.101.20 1.20

2016 2017 2018 2019 2020

3

1 Dividend yield: Dividend / Average stock price (Source: Bloomberg)2 Net Debt/EBITDA Ratio (last 12 months EBITDA)

3 Proposed by the Board of Directors on February 18th, 2020


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: fourth quarter 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: April 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


9.6 9.811.6

13.0 12.5

2015 2016 2017 2018 2019

Steel shipments (million tons)

1,073

1,5491,931

2,698

1,526

2015 2016 2017 2018 2019

EBITDA ($ million)

467 435 409520

1,052

2015 2016 2017 2018 2019

Capital Expenditures ($ million)

857

664

(25)

1,219

595

2015 2016 2017 2018 2019

Free Cash Flow ($ million)

Ternium’s PerformanceSteel Shipment and EBITDA


Ternium’s PerformanceQuarterly EBITDA and Net Income

513470

405 388

263

4Q18 1Q19 2Q19 3Q19 4Q19

EBITDA ($ million)

19%17%

15% 16%12%

4Q18 1Q19 2Q19 3Q19 4Q19

EBITDA Margin (% of net sales)

173147

121 127

90

4Q18 1Q19 2Q19 3Q19 4Q19

EBITDA per Ton1 ($)

1 Consolidated EBITDA divided by steel shipments.

435

225 203 112 90

1.79

1.11 0.92

0.49 0.36

4Q18 1Q19 2Q19 3Q19 4Q19

Net Income and Earnings per ADSNet Income (Loss) ($ 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

Shipments and Net Sales

Income Statement

Cash Flow Statement

Balance Sheet

Selected Webcast Presentation Slides Fourth Quarter and Full Year 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)


Shipments and Net Sales

USD million 4Q 2019 4Q 2018 Dif. 4Q 2019 4Q 2018 Dif. 3Q 4Q 2019 4Q 2018 Dif.

Mexico 1,197.3 1,439.9 -17% 1,543.7 1,523.4 1% 776 945 -18%Southern Region 444.0 474.3 -6% 484.4 505.1 -4% 917 939 -2%Other Markets 550.2 653.3 -16% 889.2 935.2 -5% 619 699 -11%Total steel products 2,191.5 2,567.5 -15% 2,917.3 2,963.6 -2% 751 866 -13% Other products1 51.9 68.2 -24%Total steel segment 2,243.4 2,635.7 -15%

Total mining segment 99.7 71.9 39% 916.6 856.9 7% 109 84 30%

Total steel and mining segments 2,343.1 2,707.6 -13%

Intersegment eliminations (93.1) (71.5) 30%

Total net sales 2,250.0 2,636.1 -15%

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

Mexico 5,326.7 6,134.0 -13% 6,305.0 6,544.8 -4% 845 937 -10%Southern Region 1,696.6 1,933.4 -12% 1,938.3 2,301.1 -16% 875 840 4%Other Markets 2,866.7 3,023.6 -5% 4,268.0 4,105.2 4% 672 737 -9%Total steel products 9,890.1 11,091.0 -11% 12,511.3 12,951.1 -3% 790 856 -8% Other products1 296.1 362.4 -18%Total steel segment 10,186.2 11,453.4 -11%

Total mining segment 364.0 282.0 29% 3,575.9 3,616.3 -1% 102 78 31%

Total steel and mining segments 10,550.2 11,735.4 -10%

Intersegment eliminations (357.4) (280.6) 27%

Total net sales 10,192.8 11,454.8 -11%1 The item “Other products” primarily includes Ternium Brasil’s and Ternium México’s electricity sales.

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

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


Income Statement

$ million 4Q 2019 4Q 2018 2019 2018

Net sales 2,250.0 2,636.1 10,192.8 11,454.8 Cost of sales (1,943.3) (2,059.9) (8,452.4) (8,483.3)Gross profit 306.7 576.3 1,740.4 2,971.5

Selling, general and administrative expenses (222.9) (202.0) (897.5) (876.8)

Other operating income, net 8.5 8.5 21.7 13.7 Operating income 92.2 382.7 864.6 2,108.4

Finance expense (21.5) (29.6) (88.3) (131.2)

Finance income 7.7 5.8 29.1 21.2

Other financial expenses, net (16.3) 84.5 (39.8) (69.6)

Equity in earnings of non-consolidated companies 23.9 47.8 61.0 102.8

Profit before income tax expense 86.1 491.3 826.6 2,031.6 Income tax benefit (expense) 3.8 (55.8) (196.5) (369.4)Profit for the period 89.9 435.4 630.0 1,662.1

Attributable to:Owners of the parent 70.5 350.6 564.3 1,506.6 Non-controlling interest 19.5 84.9 65.8 155.5 Profit for the period 89.9 435.4 630.0 1,662.1

(Unaudited)


Cash Flow StatementUSD million 4Q 2019 4Q 2018 2019 2018

Profit for the period 89.9 435.4 630.0 1,662.1 Adjustments for:Depreciation and amortization 170.8 130.1 661.1 589.3 Equity in earnings of non-consolidated companies (23.9) (47.8) (61.0) (102.8)Changes in provisions 0.7 (9.0) (1.5) (7.7)Net foreign exchange results and others 22.1 13.6 51.7 (5.8)Interest accruals less payments 0.4 (0.1) 3.4 (13.0)Income tax accruals less payments (21.2) (78.0) (208.8) (154.4)Changes in working capital 154.0 112.5 572.7 (228.6)

Net cash provided by operating activities 392.9 556.7 1,647.6 1,739.3

Capital expenditures (307.4) (173.8) (1,052.3) (520.3)Proceeds from the sale of property, plant & equipment 0.3 0.3 0.8 0.9 Acquisition of non-controlling interest (1.6) - (5.8) -Recovery from (loans to) non-consolidated companies - - 24.5 (24.5)Decrease (increase) in other investments 2.7 28.2 (163.8) 86.9

Net cash used in investing activities (306.1) (145.3) (1,196.6) (457.0)

Dividends paid in cash to company's shareholders - - (235.6) (215.9)Dividends paid in cash to non-controlling interest - - (28.5) (20.9)Financial Lease Payments (9.9) (2.6) (38.6) (7.6)Proceeds from borrowings 396.8 83.5 1,529.8 1,188.7 Repayments of borrowings (575.6) (618.3) (1,377.6) (2,266.6)

Net cash used in financing activities (188.7) (537.4) (150.5) (1,322.3)

(Decrease) increase in cash and cash equivalents (101.9) (126.0) 300.5 (40.0)

(Unaudited)


Balance Sheet

Property, plant and equipment, net 6,539.6 5,817.6 Intangible assets, net 943.8 1,012.5 Investments in non-consolidated companies 513.6 495.2 Deferred tax assets 163.5 134.2 Receivables, net 592.6 649.4 Trade receivables, net 0.9 4.8 Derivative financial instruments - 0.8 Other investments 3.3 7.2Total non-current assets 8,757.3 8,121.8

Receivables, net 334.7 309.8 Derivative financial instruments 1.2 0.8 Inventories, net 2,158.3 2,689.8 Trade receivables, net 949.7 1,128.5 Other investments 212.3 44.5 Cash and cash equivalents 520.0 250.5Total current assets 4,176.1 4,423.9

Non-current assets classified as held for sale 2.1 2.1

Total assets 12,935.5 12,547.9

USD million December 31, 2019

December 31, 2018

Capital and reserves attributable to the owners of the parent 6,611.7 6,393.3Non-controlling interest 1,103.2 1,091.3

Total Equity 7,714.9 7,484.6

Provisions 613.4 643.9

Deferred tax liabilities 403.3 474.4 Other liabilities 507.6 414.5 Trade payables 1.2 0.9 Derivative financial instruments - - Lease Liabilities 298.2 65.8 Borrowings 1,628.9 1,637.1Total non-current liabilities 3,452.5 3,236.8

Current income tax liabilities 47.1 150.3 Other liabilities 240.9 351.2 Trade payables 876.8 904.2 Derivative financial instruments 3.0 13.0 Financial Lease Liabilities 40.5 8.0 Borrowings 559.8 399.9Total current liabilities 1,768.1 1,826.5

Total liabilities 5,220.7 5,063.3

Total equity and liabilities 12,935.5 12,547.9

USD million December 31, 2019

December 31, 2018


Fourth Quarter and FY 2019 Results – Webcast PresentationSteel Shipments and EBITDA

14%

21% 20%24%

15%

2015 2016 2017 2018 2019

EBITDA Margin (% of net sales)

112

159 167208

122

2015 2016 2017 2018 2019

EBITDA per Ton1 ($)

1 Consolidated EBITDA divided by steel shipments.

9.6 9.811.6

13.0 12.5

2015 2016 2017 2018 2019

Steel shipments (million tons)

1,073

1,5491,931

2,698

1,526

2015 2016 2017 2018 2019

EBITDA ($ million)


Mexico

1,523 1,563 1,569 1,629 1,544

4Q18 1Q19 2Q19 3Q19 4Q19

505442

508 504 484

4Q18 1Q19 2Q19 3Q19 4Q19

Southern Region

Fourth Quarter and FY 2019 Results – Webcast PresentationSteel Shipments

670880 950

643 578

935

1,199 1,256

924 889

4Q18 1Q19 2Q19 3Q19 4Q19

Slabs

Other Markets

-4%

-5%

-4%

Mexico; 53%

Brasil

USA

Southern Region; 17%

Steel Shipments 4Q19

ColombiaOther

Other Markets,30%


Fourth Quarter and FY 2019 Results – Webcast PresentationTotal Shipments and Revenue per Ton

866830 802 774 751

945 912

872 820

776

600

700

800

900

1,000

1,100

4Q18 1Q19 2Q19 3Q19 4Q19

Revenue per Ton ($/ton)

-5%

-3%

2,636 2,736 2,7572,450 2,250

4Q18 1Q19 2Q19 3Q19 4Q19

Net Sales ($ million)

2,964 3,205 3,3333,057 2,917

4Q18 1Q19 2Q19 3Q19 4Q19

-5%

Total Shipments (thousand tons)

Mexico

Consolidated

-8%

Steel prices in North America

Spot prices bottomed out at the end of October 2019 and recovered some ground since then.

Revenue per ton in Mexico to slightly increase sequentially in 1Q20.

Industrial contract realized prices in Mexico to improve from 2Q20 due to lagged price reset.


11290

Net Income3Q19

Net FinancialResults

Income Tax OperatingIncome

Net Income4Q19

(18)

(107)388

263

EBITDA3Q19

Shipments Ebitda per Ton EBITDA4Q19

Fourth Quarter and FY 2019 Results – Webcast PresentationEBITDA and Net Results

(mill

ion

$)

(mill

ion

$)

EBITDA 3Q19

EBITDA 4Q19

Net Income3Q19

Equity in Earnings of

non-consolidated Companies

Net Income4Q19

(136)

522

87

Lower revenue per ton on weak pricing environment in North America.

Lower shipment volumes in 4Q19, mainly on seasonality.

Better result from Usiminas.

Lower effective tax rate in 4Q19 due mainly to the effect on deferred taxes of Mexican peso fluctuations.


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