Earnings call transcript Q1 2023

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Ternium First Quarter 2023 Results Call. I would now like to turn the call over to Sebastian Marti. Please go ahead.

Sebastian Marti

Good morning. joining for you thank us today. And is Investor Relations name Sebastian Marti Global Ternium's am I and and My Compliance Director. Senior

This yesterday released quarter that its results call XXXX. presentation. for to is Ternium complementary the financial of first

will me the Vedoya; the Maximo prepared conclusion Brizzio, will of Company's Executive environment business there Pablo and discuss Officer, our today Ternium's are be Financial and Joining session. Chief who Officer, a Ternium's Q&A Chief performance. remarks After

that or this would and results I like today's that filings you Securities Exchange presentation. our forward-looking may to begin, with could in call we information in and conference webcast remind Commission that vary Before contains from implied. affect results on actual and contained X, the those are expressed Factors Page

financial find to the press You any reconciled directly IFRS non-IFRS yesterday. to reference measures measures comparable also release in most the will issued

that, turn Vedoya. the call over Mr. to With I'll

Maximo Vedoya

And participation EBITDA in per thank quarter to good This of and and results XXXX morning the everyone conference Thank to equivalent is margin. a billion. set a ton recorded an with today’s you, Ternium of in XX% Sebastian. good to your $X.X first for $XXX you call.

with had will quarter. free have cash the in quarter. depth in first more flow a also on million healthy in Further of $XXX We go cash Pablo generation the on, our performance

continue industry the first remains business began of our of market in markets into year apparent main in which value restocking the demand beginning market, quarter volatility yet. with chain fourth increase in chain in you environment Mexico, review the seeing industrial quarter this In Mexican disruptions the significantly the to our signs last Let's and steel seeing the healthy. commercial with we most what the The see the and eased year In in less we steady auto plan market. markets, steel commercial are of OEMs it production. supply are not finalizing demand than we

US by goods industries are manufacturing HVAC hand, industries softer. other housing driven currently and white market the On like

industry, increasing from hot as our are automotive products process in rolling certification the Pesquería new the We mill in advances. of market new share, especially the

the quarter X.X million the in when in we of the expect mill hot is tons than shipped example, the XX%, increase was X.X more we tons quarter. more the of first startup. first the XXXX, what than XXXX, million an is This market. first second shipped rolling As in shipments Mexican of this growing stage to of quarter in This continue in the and we market an

this at us downstream facility the the offer is development currently market. products go February. mill to the also added progress in enable This addition, projects our making to been will upstream and have this deeper project. under in conference previous slab new we call, to we our In complement announced new new into Since capacity value

we Although, very we are close location to not so. ready are to it yet, disclose exact do its

the in is of market. to lower and end the a If rate availability sector offers national it been at north beneficiary calling trend force. dynamic X% measure closer just in supply and Industrial Association membership even rate in many the occupancy its reflected end the has of terms re-assuring the the attention Mexican industrial for has of According result is to advantages, XX%. demand USMCA. shorter country, as of rate. or increasing XX% lead transportation the being the lower this And the need region. is that Parks, Something of to chains reliable to This markets. costs due is real more occupancy we estate has of of country. estate real this investor lately the in serve this to labor And experience a is exception a Mexico qualified technical an and It its

one an be and hometown. Tesla's built the profile Monterey, in new which Mexico, As our latest will announcements highest factory investment example, in is of

comments our make market Let about XX% with Argentina, some second me of largest now total shipments.

considerable Argentina's impact coupled second Our Argentina demand relatively a bank hard Argentina level strong central uncertainty expected unstable during and suffers the the of and a business This, consequently is revenue a although continues currency that and high well, steel drought adversely from in half in grain level XXXX. environment, reserve. inflation there in with this market. is very to is this do activity significantly country macroeconomic to year a export of affecting economic

the has now Control Usiminas XXXX I to Nippon Ternium’s in a increase it Usiminas brief Group. would when Group. like in a participation make regarding Usiminas Previdência participation since joined Ternium Steel recent had Control in in announcement our and about comment Usiminas

different the On March XX, During we having Nippon either ability management roles. equal and have on without Usiminas Group Control take Ternium other. decision Steel to shared footing the impose XX past an years, with on on to partner the partners our agree

in and us a to business America's producer in implementation of continue Nippon steel contributing to management all assume, and Ternium than Steel successfully more in say a the a the company, We flat will maintain the a of outside company. and technology has steel in largest proven managing involvement position record while leadership assets course in Latin region. the Usiminas. direct ordinary This after strategy, will their of more perfect Usiminas decisions a the will in is have a track its decade put key position expertise

make to affiliate change agreed of our participation some as portion sell To Group, to put and action, shareholders Steel into Ternium in changes as Usiminas the Control this to its Pinheiro, agreement. a Nippon well to

We of one a Steel the Usiminas Previdência of the and will and the other majority of officer will a board. Officers, the members retain of Nippon majority Board each. CEO, appoint

more approval to CADE, be CADE’s As to for cannot the for in approval understand we you this, the we going Until hope information already disclosed. add able next the we have transaction. have go Authority, are Usiminas. on we first I won't matter further steps, than we need much the able to antitrust Because to be Brazil's transaction, to plans section close into Q&A of received our of the

recognized we efforts fifth ESC proud demonstrates the to as are in topics, World are to champions Turning by to last for that right sustainability recognition track in year industry our make have our we been This now a more on the row. Steel week operations sustainable.

very our of we near things of are One is lab new the a the of Cruz, facility. that I'm Santa proud technical in construction Brazil, school Ternium launching

which leverage all which was technique, and students Xth using of communities The on receive very For rare. year underprivileged these in technology school our this, school comes of the This from high now on from laboratories. technical innovative in remarkable. we our school, to the scholarships, Pesquería, to of to Pesquería, educate results technical community is teaching experience of staying with of school the the is the one operation, been methods launched opportunity successful Mexico. assist high latest and both have where These students, to initiatives classrooms plan

of school Today, more studies. this university graduates XX% their going through than are from

of classes We to to bring education first new with expect technical of XXX close and the Brazil's the technical start school tools with XXXX. the latest technology students quarter in learning to

elementary developed communities project where can the educational to Ternium cycle education alongside acting in role their to become programs if We covering operate be the the school society. contributors company years, a has this the only sustainable potential fulfill the Over industrial and from we youngsters children postgraduate and and believe key grow company levels, and helping entire that overall. plays

competitive good second make the continue uncertainty to of put the we half now regarding believe during and I confident advantage opportunity project in to Ternium and performance are is to me our to remarks. year, will have have development, its in be we Let We following there Even some under the With to years final the company in my come a Ternium of ready opportunities. am these latest macroenvironment strong with take have grow business close downstream XXXX. prepared position a and comments though will the there upstream more ample investments, the

we of hand, steel in This Americas the the us always you to believe heard we grow opportunities in been largest many the times the committed our future. markets say have will as in many Brazil. offer On one is it other to past, and have business

Group. with all of respect, Nippon this from will believe our excited give in success renew change us Usiminas stakeholders. are our benefiting with Steel days I agreement very Usiminas recent Control In Usiminas we to which the contribute to

Pablo, with can go you your quarter. in Okay, first the ahead now presentation Ternium’s performance on

Pablo Brizzio

Thanks participating conference Maximo thanks and again and everybody good morning call. in for to our

guidance in first the more and our the Ternium quarter Let's second in quarter. for performance review detailed

presentation on will X We of Ternium’s and with page the income. start webcast net EBITDA

first the a per price EBITDA, company's approached EBITDA Margins cost year, the in of ton $X.XX leading deflation mostly in period. in the as per anticipated, continue margin sequentially through range, and first company the the of quarter lower earnings inventories. flowing EBITDA improved as of ADS to As usual material result raw the quarter

Looking we shipments the expect of the on increase margins. company's EBITDA in higher second ton to year quarter this forward,

We will coming analyze more this in in the slides. detail

seasonally on in explained. XX% now in Region will XXXX. due all-time In million Maximo high what the in company year, mainly steel integration as normalize last performance as shipped In a was also, Mexico into In facility the new offset in shipments slab market. The of not last this last in shipments in Ternium Brazilian share higher by Argentina, our we parties currently page shipments had the X. Shipments of volume decrease quarter third quarter decreased in sequentially Mexico, only increased weaker the dynamic move other slab they the its a a we against as second increase improved lower market volume expect with sequential of the a Southern the year, to which were facilities downstream result mostly to the demand but achievements quarter of our reflecting of the in XXXX volumes Mexico. quarter X%, market. mostly tons in lower Let's of steel Ternium was already Region, X.X and of reached Southern than first first sequential somewhat further market,

quarter, Southern these to ton in this lower X, in first in Region. see by a the which in first of Region. contract combining of in the that number in were has second the on the quarter reset steel lower Revenue page, This the USMCA next in the was been lag mainly prices negative the Southern relatively per with higher region. remained the somewhat already and we increase in that this Mexico prices despite on prices quarter million consolidated mainly to In in shipments in the spot X.X realized can the prices Mexico achievements stable effect due reflected quarter, Based consolidated year, increase volumes expect developments, and tons. discussed, you

higher at to reset the This coupled a In sequentially spot per levels. steel contract expected second higher prices, prices are healthy lead quarter. expected the the positive ton quarter, in to revenue development, to with second consolidated

and was next in main result To of the per land lower page, decreased lower and quarter XXXX materials this result the let's top The gas in per in mainly EBITDA the ton quarter as a sequential per Moving cost mostly purchased shows cost extent, a achievements the relatively inventories EBITDA in also through in half cost, on The decreased. decrease the ton the behind due unchanged. energy drivers changes company's as price of chart second during now continue year. and natural the revenue was priced acquired that first of the that net to ton, the lesser on lower review income. flowing a a first of cost raw remain improvement

cost achievement forward, ton a revenue little further. consolidated as second Ternium per EBITDA sequentially ton Looking the deflate increase and expect and increased per to in quarter adjusted

results. this Mexican period. mainly a The lesser year, gain and on X% shows subsidiary deferred result results appreciation dollar include the the first with of bottom extent, sequential tax and was in peso in tax increase against In operating Ternium’s that of quarter US income to income the Mexican in tax the better connection by the driven higher chart the the net a

performance flow was year from and $XXX of the now of review the sheet. $XXX operations million. working capital Cash release on flow including first quarter page a balance X, cash Let's million Ternium in

level quarters in net by is cash quarter $XXX quarter the Pesquería were the announced coming forward, billion to The drove after to as increasing in of announced to America. expect CapEx downstream continue in end Looking $XXX Ternium second Ternium we capital in flow was million. close Free its position project higher cash the sync and steel $X production March. in in working other North the shipments to expected projects with CapEx million first the of This prices. and increase

for can we Q&A With you this, attention. Thanks to that conclude remarks. have. now proceed may any lot operator And question session. with prepared take Please the go we your a our

Operator

[Operator Instructions]

the from line Caio Our first from Greiner of question comes BTG Pactual.

Caio Greiner

morning, everyone. first your operations. Thank question Hello. North Good on American My you.

So wanted bit the to North seeming short little wise. it. you guys auto since quite on in restocking is more you as still term, guys demand, be strong And America strong mentioned some so explore so expected to pointed even a out, demand in remains stronger chain that still conditions industry supply volumes quarter the second the

sustained are little do So that you for year in at continue we see? that on with that the of with you more bit expect I I you estimated believe outlook steel an earnings going market would current just share second volume the the to still could that And a year. guys be the volumes Mexico levels wanted also year. to demand increase explore points forward? you Are mean guys, rising for could half the if for pressure any helpful. the be working there us, entire Should

that maybe to share see wanted if just And you short said in Are there addressed the to that lowering little asset know consolidating anything ahead, see any down guys add see Ternium just acquisition? for second initial I question this Thank at us share term? you Usiminas then that understand point, you transaction, transaction Maximo’s much. there that very this this and Are you any that to the share helpful. can could So with also us any stake short they from assets you there road, but see term? the medium probably could you can there's you be the comments? wanted to guys that in be And further eventually you can can Is I that. if its my will even Usiminas regarding what plans the guys turning increasing on are the fruit that remark can, with priorities that wanted

Maximo Vedoya

Thank you much, Caio. very

start you're question me and first right. the Yes, Let demand. with

increase We second year. are of going shipments the this Q probably to in

market, the market, because restocking Mexico stable. it's this is are In think is US as market commercial industrial I said, process. mainly and and I also the we in in gaining still share

We is Q of robust. half I happen is is a think So are demand What second seeing still going second that to the fine. the the year?

some and happening that affected that We consume customers from that coming are, today. we will are are seeing from or new very region. the are that you things especially change demand. production other and in not not increase own The that softening, the are things degree can market steel they that our their re-assuring the housing, that the from Mexico are we are relevant. demand bringing everywhere are more in speaking, that are Asia. is seeing but I'm probably they There as a that probably customers the sectors, part by I north a of ones And seeing seeing of said, mainly in will so They much are comes capacity reassuring increasing the that

So there industrial more is forward have increasing region. they because that customers in to is trend where are capacity a they the going steel the consume are starting customers

recession quarters US. this time that in seems every speaking in this more is delayed so the it macroeconomic this the speak or rate I we what is of think a happen impact that we in is the bring if negative interest only tightening the and mean and called increase the have impact for will of some going to I US. with the now impact recession been it

outlook working to expect and affect our but it's But emphasize and huge interest Our uncertainty in are customers that that to increase they don't today all want I expect they a customers. softening going is a with this the recession. from rate the coming industrial nevertheless uncertainty the how is there

little we today, can are it. some what I in of was or house the bit demand, softening market. hope said that's you some I seeing with Caio. a the I problems As give And this only outlook But

well. Usiminas The I second I understand about think question it's if

Caio Greiner

Yes, on transaction. Usiminas

any guys investment term just any maybe increasing its that you I adjustments initial wondering on So eventually stake or see could can short plan, was further company. if short us with going trading term the in you share you would

Maximo Vedoya

to Yes, well for CADE plans you're Caio. on right. I in as prepared and elaborate a and in group and the transaction. to approval to the will before Usiminas Usiminas we its lot prefer changes stakeholders. its grants It's a But very not Usiminas that the believe I of mean, good believe I all future you question. mentioned the develop as remarks, agree benefit know, I committed are we Ternium control the

Ternium On the there we will know in this believe capacity work excited is is we lot other assets, and approved Brazil have good develop. Mining Ipatinga always that a to also again, CADE the assets. to the our unlock many market have have that and a capable side, for significant been to we and and potential be but transaction. opportunities honest, opinion having or once that to potential that Usiminas very important people you the do committed and is of My And of we Usiminas Cubatão, believe partner has opportunity.

is development do Number the realigning indeed hand, also you operations have further Coking a enormous other in I of investments these. in mining lost a the Usiminas investment the approved, the market On improve to of big of or situation once is all has taking the the to last challenge that competitive going order year. strategy, the in with in all or to the Ternium, help sustainability medium that the term the competitiveness situation an analyzing and position again, challenge blast leadership And has furnace. like three, think operation share also the regain in facilities that to

subject, can I what that's the on think I Caio. comment

Caio Greiner

very helpful, Thank you very much. Maximo. That’s

a you actually Just having guys follow the question. up Can previous share with on –

Maximo Vedoya

because you closer Caio, mic speak, hearing little bit are very to low. a sorry, the Can can speak we

Caio Greiner

me hear better now? you Can Okay.

Maximo Vedoya

Yes, that's perfect.

Caio Greiner

Okay, so the for guys of the you an on Ternium maybe in the estimate operation Mexican idea on with for the just shipments your color us volumes to with just can so you operation? question, very on follow you thank Can share what question, for XXXX? Mexican Usiminas, for you versus on up increases XXXX are working previous share much

Maximo Vedoya

increase. have we an yes, Well,

are little I sustain shipments in we or think the to we going have the increase a bit first that Q.

So we repeat going those shipments. to are

Q trend Second that we a think it's increase or be to expecting little year is going third Q, that not but XX% higher. of in are bit and something percent of increasement And year. a in shipments after in With continue maintaining. XX to I fourth

new You have running it's almost I hot to rolling is hot realize that mill not at ill, think full The XX% of capacity. the capacity. mean, running I rolling

increase So in through increase of we don't are the a have lot production mill. more space the of going shipments. much And old to we

some of lot So a space of more to our have much increase we space, have don't we but shipments.

Operator

Our next from from Caio of America. of question comes line Ribeiro the Bank

Caio Ribeiro

Thank everyone. morning, for opportunity. the you Good

forward. working first my trends So on question capital is your going

wanted this a color to working I what quarter, expect think capital I quarters. there some was get big you coming on more the release in just so

to hikes bit. stabilized somewhat late and times USHRC shorten seems since have a multiple prices right, And after that it secondly price year, lately then last have trends started on lead

just for wanted medium on as what and you to long sustainable see at half of I you. in see if price you the of Thank terms price this year second USHRC the a you term in color particularly trends, expect to could provide So some point. what

Maximo Vedoya

start to didn't and you Price very mind I the part change last and leave terms, several second quarters I we mean with working I the what capital I Pablo. much quarter my about before. discussed much, Thank Caio.

right at much new new the they pre-pandemic was than bottom, of had values. normal floor to after. I last started before arrived see they new increase just what it year higher normal prices. and that is with And And we think a this there when bottom steel we is a prices or

rolled XXX in a healthy prices to some the of they this say of I be the normal probably, you stabilizing probably the prices be. we think the cannot to discussed, or new increase price remain at reference a That's in and adjustment. $XXX but is prices for particularly, second stable future as So of Again, of going respect, around my or today, are new most said, coil. used What, I that quarter? it year will Probably, my in $X,XXX. hot but always at there's situation the course, as are

are the not, macroeconomic but that's that least little the the a the level the big it's If but numbers if hope that going that's activity I in On in the that more. ore, material ups raw I some is my other thoughts. so really Caio, that I going for there is on our there to carbon, should what depends the I also bit think a cost be prices. gas a we also decreased, quite macroeconomic normal other downs healthy it's it's side, adjustment? happens answered on be mean adjustment. question, same natural has and not with to case the affect going at quarter that factors and with I iron to How second looking recession think

Caio Ribeiro

Thank Yes, Maximo. you, absolutely.

Maximo Vedoya

Pablo? capital, Working

Pablo Brizzio

Maximo also decrease saying into the in seen first are increases just pulling some was some of are that the your for Region take in Hi, to raw have what so the course growth further are that, the see prices not going Caio, of we are be small North capital. seeing quarter in of that are that expecting we a to will price that our market, Mexico, question, pricing working to shipments in normal material. are that in with expecting But only of how comparing Southern need we also all-in-all the market growth So movement there also see is the that clearly are Yes. to especially uses consideration we American we mentioned now second we you? expecting or especially

an is utilization. shouldn't significant the we in all somewhat are expected see or But that to We significant. pulling to the like level capital. our what a have the of last some of continue working quarters three and expectation that quarter we release have huge not not Not in last working last now because of be we release, increase where in capital will things together cases, happened year,

Now to a we into we prices a working are be the capital adjusted little level. and we think process entering new volume will where until recovering more

Operator

Our Wolfe comes question next from Research. the line of from Timna Tanners

Timna Tanners

My the wanted those few but Yes. balance you for is morning, in to that. producing best has that a QX. you're price second Hey. first attracting you Good is lot like going of you're which Mexico reasonable? half those modest? everyone. could just the Hearing imports. do running. steel, the in in first or it's imports the Do elephant it ask are reports restart not that restarting. saying keep And room, that's is world think think in about it the question about AMSA AMSA of irrespective, to One the hearing I'm a I questions sizable Do potentially you think asking sounds about imports

actually? you think about Thanks. How that

Maximo Vedoya

not have but I you much. of probably are furnace blast clearly press, restart the big of the restart more imports, I good But don't the more Mexican several as market, relocating the the is very you to most a I it's is clearly as know, mean to AMSA mean, US used blast be. us. they are years North if hearing restart, trying to It's and that going the understand will it's probably so are AMSA level if It's in competing going from very question, as I a you Mexican part going down, and furnace. restart restart you what know at they and to quarter. and don't market, know third to that take in they is customers are to Timna. to also our to everybody Thank And much we the source Market. a imports the with of production American

a increase So increase imports, the little be abandoned. affect our have programs to I but ability the that to expect going don't in program ship that is we I have expect to we do that in

it's that's that I how question, can answer So enough. hope Timna. I

Timna Tanners

No, that's I great. appreciate situation. challenging

Okay, qualification about mix to timing could. to Pesquería's you you terms ask process of there thanks. you how the and And if in magnitude can improving remind then wanted and if us about think

Maximo Vedoya

the going Pesquería this in really is the remember, starting Well, show to to quarter. process qualification

consumption. of part compare the Mexico, there's if first much these quarter in consumption XXX,XXX in not first the change XXXX in tons, of to So XXXX, of you quarter steel

the In think country. flat fact, XXXX against XXXX I whole year, consumption was in the

you're two is remember not the was or going complaining same there in And I the, mean same to market XXXX I'm the fact, quarters to now And XXXX has the no, the it's I So looking grow World lot a compared in consumption the X.X%, that to in XXXX. the Range and the name, and in Short yes, Steel by take SRO, Mexico Outlook decreased XXXX. same. the

market after time the in certification, it increases that is increases more share. are that's year of increases takes. these that And one in So part

to round additional roughly the And have annual next when sector, much be XXX to qualification are probably industrial our the something quarter it's with to contract customers, increase year our with the there contracts a small customers. and expect to the is share process. next in the or until with of the then increasing going can shipments of more market this We the X,XXX we tons second

in a quarter. this have huge So we increase

Timna Tanners

about to end great? expect any also where I Okay, you be higher sometimes you be than I And color normal a range QX. maybe to on range be margins. high probably was know of XX% along you that benefits, about a of steer in little talk should great. the us Suffice so bit would say, a margin But asking to those can past the lines XX%. we or other if

Maximo Vedoya

It's right. usually that want you're we Yes, a very to question, good don't answer. Timna,

were this EBITDA margin We the bottom quarter. part XX% right. of in in You're

next little the above that most we between range I say side we Probably hope in enough upper normal say likely never range, that is in we quarter because a to XX% be of that. Our always bit XX%. are that. the going and is

Operator

Our Thiago Bradesco. the of Lofiego comes from from question line next

Thiago Lofiego

you. Thank Good quick morning, gentlemen. questions. Two

What's one, be coming you great. First on we quarters? outlook expect And the little should more about dynamics can second What your Maximo, bit that question, a demand? for for would that? you. you If for XXXX, Thank slab integration on can steel Argentina? you comment quantify could talk the the

Maximo Vedoya

slab And integration, Thiago. you, Thank you as say.

our our As I always of most to are going own said, through slabs facilities. it's going

If than of think went the we this in shipments, Mexico. but you in consumption, tons mainly either see million X All the XX,XXX only Argentina, slabs own I our slabs. of tons of numbers more other, to in ship quarter

expectation integration we in is point. we I XXX% almost second it’s we still And said, as steel for and consumption. difficult year, slab putting to one to the the consultants say seeing not And healthy X% demand expect GDP Q, the rest think it's steel the consumption, mean are are all demand, for decrease. It's consumption variation Argentina, GDP of X% very today. that Argentina decrease, probably Argentina, quarter. the as today. the So in the what number, that's whole year. the but Clearly, going our that's first of is I with the of between of the the in

whole for second not year, the half. the For

For the whole year.

Operator

MS. the Alba De final our from Carlos of line comes question Our next from

Carlos Alba

Morgan morning, for Stanley thank don't so Good much. Maximo, very just [inaudible]. those Sebastian. that initial All thank right, MS much. is very you know, Yes, has you Pablo,

much in cash but about about high if is I billion on is half you cash talk of have use in or on very not maybe I'm that Argentina, the you the about that. One questions. have net but cash this that is company of the basis have investing And are think level Could in of And the in Argentina. challenges sure couple have, other already can. you the because clearly a sheet, of you corporates cash just half strong a you have a you may net it country, to balance as $X as may and situation. possibly Just Argentina cash, that may

economy The expanding really shape. good outlook is the not in are uncertain. is and assets Your

not projects So you least. right now growth be in invest to might at able

that you it'll use do be options very could cash what interesting. comment have Argentina? outside that, you If of on to So potentially

question but mining do is, sitting potential presented overall, in that your business to potential now that I be? there a was the and your is be what comment in mining law on have Mexico have What bill lesser Senate. you if of then Senate? is a as know second and could some the look this approved taken And business is impact and the you Have part the operations a a change to would

Maximo Vedoya

questions. Yes. Carlo, both you very thank with question. I start much for the second

the You're honest. And right. There be went a is it law probably and to will through the that in mining it's Senate. discussed now House new be today

of original. not in a on mining affection way are the the The lot seeing in the We mine. it the House, as was went it

senators discussions, some be only Mexican use and I has affection House the water. in both a the yet, has the honest, to in to there the there some made And some technical were law I of But the that are Mexico, changes think the operations not issues the these think Mexican that all and the to has government things. and understand House that discussion There huge And mining the with mainly approved. significant discussions it think be There progress to I with with very been be government. a helpful honest. ours. issues the of

to mean government didn't a the impediment. position, very it's an technical So I be think which this

I changes made. So there again, be goodwill to change small and to think is there a are

So don't is this with today Cash going Pablo? in issue Argentina, that, how I situation a through. see think big I

Pablo Brizzio

to nice a what answer. question Okay,

Maximo Vedoya

easy. that's Yes,

Pablo Brizzio

situation can to It's in to all, or things Argentina. of fact our the do thing that on out cash of and in first easy paying not have right So, week of well, is have in first level do, And the a this get subsidiary, country. done cash we significant Argentina you're the we you dividends. just

in that Ternium Monday of Argentina, subsidiary a in on have we dividend pay the just our announced than bonds. there, more million $XXX company kind So will

do So traditionally Argentina. out And is company has a to money to that way the way pays some that get is in dividend. normal it's company that. one any Argentina of fact,

makes the enter normal not into different a much will rules details time usually we things to has because certain Argentina but course, Of from have country.

different be cash Argentina to So this distribute cash without important all-in- that of comment to shareholders. takes to that part and of most that was But that it investment make consideration of Argentina, longer that utilize the we that because I the into steps other project to any is doing the followed. deals has have the cash all, of process think right moment in of to to having take part level

cash, the managing cash currency currency, we dollar effect inflation are peso work the rest is and over the And the have in protect ourselves we we variations quotation against of continue to there suffering the that that our currency against country. dollar and of and our the because of that in the protecting also

what to to in case monitoring shareholders of example company course, we which have just will that. this But have are is of part to receiving our the cash [inaudible], right very distribute So we we outside now. react done, is the be Argentina. in situation XX.X% we will and what that's try the subsidiary that as cash of of doing closely continue there best And and the

are So that's is you what complex seeing situation the through. going a that are in Argentina as we And one that doing.

Maximo Vedoya

questions. Carlos, I clarifies that hope both

Operator

would to for call I turn Ternium closing now like CEO to over the remarks.

Maximo Vedoya

as comments, in talk feel usual. any for us everybody, we Please additional you you next if questions very questions, much. have good contact participating very Thank all making any call. and Okay, thank to and free the conference you

Operator

does conclude you today's ladies your gentlemen. call. for participation. Thank This you, Thank and

disconnect. now may You

Ternium (TX) 26 Apr 232023 Q1 Earnings call transcript