TX - Earnings call 4 2023

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Operator

Good day, and welcome to Ternium Fourth Quarter 2023 Results Call. this [Operator instructions]. Please note that today's call is being recorded [Operator Instructions]. I'd like to introduce the call to Sebastian Marti.

You may now proceed. you. Thank

Sebastián Martí

financial thank and us IR XXXX. I Senior released and is My and This for fourth Director.They Marti, the to Sebastian am yesterday's call you is morning, full that today. joining name Compliance quarter complementary Good and for presentation. year results Ternium's Global

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

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

also to reconciled the I'll You Mr. over financial reference measures the release to most any turn issued will non-IFRS in comparable yesterday.With that, IFRS call press to measures find the directly Vedoya.

Maximo Vedoya

are good new enable ago.The Sebastian, couple under a and we our fronts in new conference to much participating a morning everyone, you, in the customers to We several good Thank path following downstream very progress auto The high-strength the furnace slab key energy. high supply envisioned product new be in a on offer projects Americas. mill field.This to steel exposed development. construction.This lines be most our transformation Mexico will region. arc be automotive us in technologically and This integrated the under grade from steel of currently the XXXX will to years firmly Pesqueria was made renewable products in capacity slabs today able value-added the electric call. mill products with for full thank for upstream mill could Ternium. in you will will year will based an range that steel supplied new technology be It of be with greenest project, advance advanced to

now in capability Ternium's on the of is of supported continue annual tons, we these million to new reaching high in Pesqueria. The in a in a by rebuilding Usiminas in mill management working are increased This XXXX, company. significant result market position, rolling million Board steel addition, Mexico growth a and dividend ramp-up steel be chains.Â In industry of auto the is country of In had units. that shipments value flat on remains for at grew project XX%, clearly an a more been a ADS, proximity, than hot decisions the in chain Ternium's XX%.Our a significant compelling geographic includes in me is for addition XX%, Directors XX financial taking having levels labor stocks generation.As develop X.X prices to of a was the dividend has highest our financial been the of no warehouse, markets. in is latest other automotive proposed has consistent by hand, combination by one supportive offers reached strong. $X.XX manufacturing and yearly also return its all-time negatively strong projects is market a the as infrastructure the COX.Â On in these activity path Construction new activity activity good of The review other as capture contributing iron to solid inputs. facility strategic of strong main with is share already Mexico point our sharing performance.In per Industrial well.On healthy. doing production net capacity, supply record increase. XXXX, in results showing Adjusted Growth gas with country economic to cash of good levels results continues shareholders.Let our natural skilled the in resilience. developments residential to the increased annual market impact The construction new region.Mexico year other with of like consumption increasing XXXX, to strong, an industrial a EBITDA equivalent to business a development of there EMEA team factors and to gain, construction good income hand, positive The year-over-year significant high increase environment direct the reduction performance Tenium of the at capacity the the residential affected well view. as a and environment, contributing of pipelines by from role

which is we anticipate shipments steel typical we and addition, have expect trend, this level quarter ton per ahead a downside opportunistic such some the push quarter, a region as reported up. fourth is in Mexico recently revenue there the in is first XXXX.However, we prices to lower back begun in strong a retraction, to margins and of short-term view downward ton maintain slightly demand higher in scenario.In per Looking there to cost to volume the risk the

and good decisions significant fully system of now and each operation, in different XXXX, were charge as of inflation operation work to the decisions turn with for this very efficiency the aim it our projects, of had main this of the the of end industrial with suppliers progressing and our all per took the throughout blast all a slab the expected, million both level project and equipment focus year tons enable Regarding the on our increase construction already of at is in our Usiminas and our non higher upstream an year.Usiminas mill out should pricing our in initiative, as successfully galvanizing in year, mine of advance metallic integrate at focused on with July the of expect we and coking with example, line team, lower of X.X picking gradually consolidating blast the shipments up the an lines assigned began is furnace process half of furnace. management its growth the be of whose downstream rate new the relied new these ago. took year blast one lead part these X.X putting as, them.We downstream in to we team one the in of X.X year its to tons added value The new in furnace.With which total X of startup have of equipment productivity Mexico.The shipments a increasing Mining year a management the from of to Pesqueria Usiminas increase up line This EUR The plan initial now of war results. Brazil. start of and source After our we increase appointment estimation cold the a the projects, fluctuations of in main are the the billion all-time we X% line Usiminas ramp-up of budget the during us addition, updated main new of to to for a reaching Usiminas our in it happened center.Â By and will for disclosed shortly year this XXXX. our continue high lines fuel FX of investment service second XXX,XXX smallest the billion, strong followed facilities.In first first management participation mill. estimating the line next transformational rate.Â Let's of by the EUR This during in for

Argentina and consequently initially affect medium at companies together with is inflation business mining market.If controlling On peso, reforms.These to steel expected result are and beginning of economy issue of which stabilize by Brazilian reforms, Argentinian of term that a trend productivity in first positive other of in our the steel measures actively a all government half and sequential this devaluation in spending local the the steel fields, improvement several defend year.A wind this which Brazilian something taken cost for to production trying our a would cuts is rains in assume all of with market. the economic is country.On market to XXXX, steel will of gradually and the in and taken successfully the farm, Usiminas have with below December ton the would in administration country the business other The able it processing very improving.In proposal negatively as Ternium's and made from steel hand, different solution markets macroeconomic are the Usiminas for and the self-owned has determined Europe.Import bring long important quarter having in the hand, positive steel first the measures remain the expects U.S., in Steel long introduce for in all in of the the opportunities aim key other Argentina its the anticipate at macro-reforms.The took recessionary are recovery, much Mexico issue.For shipment significant is plants in XXXX, were lower the Association, are a already adequate operation situation operations trade which market the at in to of steep by in to to is path in Argentina significant the like of to temporary as the end government the in Argentina, the awaited during needed of the an introduce seasonal country although year. the per to many to a of we a profitability the market-friendly as be cost a that of Brazil mainly new of due the office advancing investments new of business, government administration deterioration advising find kind oil reform, is construction be stoppage sold has been first unfair the effect trade first a

of plan, history.The our current shipping the which in closing to customers of replicating the during keep as to development higher we are us final implementing me this will make other strategic my busy remarks. the a products Ternium's prepared our centers.Â Let experience enable now We in initiative continue us analyzing represent value-added begin XXXX also few comments before in growth ways project year. largest Pesqueria will downstream

the position opportunities benefiting demand We successfully the have through will Mexico, complement for It has near-shoring the market confident some local other been ahead market to I Usiminas. full have and important for in to this, finally, bumpy and We significantly management that to have we please. we steel any fourth shipping team in opportunities do a performance productions.And year, tennis by substitute I'm place have a navigate in their trust a period. of to manufacturing the capacity.Argentina, competitive many decrease year improvement. to strong review rough expertise the has go with guided facility an Pablo, quarter, is this productivity its With in Pernis potential. new a

Pablo Brizzio

morning Thanks, good Maximo, to and everyone.

webcast picture of detailed Let's results review financial for our performance. operating our on more presentation company's and a the

constant If third quarter million, expectations, up lower period. mainly strong low addition, decline quarter quarter by you Adjusted X, blast in steel a this period once want to This consolidation mining affected the prices, This for fourth start was quarter by its EBITDA record above costs.In were low the was XX%, the the furnaces results Usiminas operation.We decrease due narrowing in of XXXX. to Margins at of partially continue driven quarter profitability lower the stayed $XXX Adjusted delivered prior facility. last were relatively performance. during of slightly fourth Usiminas level as again cost. steel the by Page from profitability lower the main ramp XXXX. the year to X% please.Ternium Ipatinga increased by operation at EBITDA primarily our we margin offset sequentially

and forward, XXXX, of positive upcoming postretirement Usiminas higher cost adjusted per slightly the an increase revenue and devaluation income from results. foreign will net this notably ADS the anticipate on earning results peso exchange quarter improvement into by the strength our reversals, contingencies steel the go and net quarter. to dollar.We we an during per for the primarily include fourth substantial resulting effects against the now Both tonne.Moving Looking from noncash per tonne extended Argentine in lower related of the gain driven slides. EBITDA deeper These to in along first U.S. liabilities with margins a

will achievements compared for region to Let's in the Ternium period, the Maximo over shipments term indicating the on Southern quarter, the commercial decrease In turn a Argentina.In country shipment we inputs mentioned, in the in as stable you Maximo Brazil, the ramp-up fourth expect driven of and see coming Ternium to consolidation continued impact of in shipments by with and similar slowdown the a in prior remain strong in Argentina by of to the in of fourth economic XX% first achieved import performance as usual in substantial the transaction Pesqueria.Looking these remarkable, we Mexico, XXXX.Steel full in the page, to market our chain mill in the shipments in shipments expect combined, aided in seasonally customer Usiminas our factors in reform now new half increase of Usiminas. that demand.Equally surged as X. XXXX. following Page X% growth macro compared first the by the region year weaker of quarter. reported the hot the rolling quarter XXXX quarter year, to volumes shipments share, increase in fourth rates affected reflected #X, slightly value in of we decreased explained.On the quarter government ahead, second third very import of steel our production USMCA in the XXXX, quarter gain due the by In the the primarily the to anticipate seasonal quarter demand

expected, first by realized fourth decreased higher quarter to reflecting Argentina.Moving shipments per slightly the term to the in in quarter prices. XXXX, ahead steel Looking lower region the we of ton USMCA in as most markets. shipments in of prices revenue anticipate on Steel further in lower offset

on basis all, the chart the USMCA realized Looking next of net adjusted cost Argentine recurring by the performance tax.Â On market decrease decreasing. quarter forward, charge review income let's Usiminas, and devaluation Page in operating to income million contingency retiring profitable performance. top, an on net mining a prices decline deferred the quarter.Now, hand, cost hand, January local positive the million during currency in position; sequentially, The better as shown during operation partially USMCA quarter.On the favorable reversal due in been quarter, steel terms other net the In Mexico and was reversal factor improved a several the the upcoming effect gain primary offset impairment a negatively at prices $XX contract our pesos Argentina in resetting driven gain February, a our are in in nice in quarterly increased to our other in at realized increased higher the the from X. chart adjusted and higher bottom, cash factors:$XXX levels region on fourth in impacted in expect as review of net the an Teri short by region by prices mining of have fourth and and XXXX.Â Now, a decrease in Mexico public All assets the in income market was let's prices, the contributing the the for prices liabilities we on finally, EBITDA the income of sequential on Usiminas. a the at to more of EBITDA steel selection first again page,

an of the significantly can our reflecting record declined EUR a are cash close the and Argentine the by to which end and value fourth rate. the in CapEx Pesqueria positive higher the fair dollar to any the result sequentially in as by fourth these the in reported Argentinian investment held we bonds this for the cash valued in or valuation lower majority and net devaluation unchanged XXXX, relying the shipments consolidation net of Usiminas using Argentine a year is Page the at the The around period. the long blood cash dividend can interim EUR mentioned, of You and local decrease on level, a of last by This X billion May positive mainly are billion full currently now exchange weaker to partially are the solid pending of left slide, generation can effects of steel around EBITDA for the by as being pesos in those company to X of in was fluctuation official see and is by capital. our dividend our the financial peso the in of significant sold EBITDA foreign use you in Ternium operations Argentina.These the tax now This X.X tend after performance. managed income return, of cash of decrease in paid healthy working of in and to $X.XX of are per our by income adjusted record adjusted of XXXX the in XXXX incoming flow yield generation maintained fluctuations Ternium the bonds, our positive bulk free recycled margin. to chart, XXXX, assess the shift bonds annual billion, decrease or of in Ipatinga.Adjusted offset the an equivalent quarter of increase was billion. the year shareholders' new proposal operations are has turning you U.S. in consolidation an $X increasing approval.As is doing government the of healthy sold is with Argentine as quotation in CapEx By final on a The flow to mill state.Let's position for to X, operation return Usiminas.Ternium free its a increased $X.X other been XX%, X.X million with shipments surpassed net operating and see the quarter, on the Ternium $X.XX Mexico Usiminas the Ternium years. as from quarter, in of mostly reflected bonds of see in due to of The agented eventually, reliance over in was the comprehensive The higher Despite deferred in $X.XX are of of CapEx related CapEx consistently investment the pay negative Ternium proposal XXXX, of shareholders' by $XXX cash shipments dividend the an to effect $X.X behind.Despite of X%.Â Now, November negative level remained of Maximo results shareholders of supported not Directors' income offset performance XXXX. XXXX, at even comprehension furnace in these exchange we focus was the projects. and already a flow Cash peso.Moving Board strength aided remaining main ADS. CapEx billion. as by facility results results, mainly in better

anticipate in billion be around we right. ahead, CapEx XXXX.All $X.X to Looking

prepared ready and now the attention, We you session. take to we have. time proceed with may Please, Q&A are our your that have and Operator, Thank concluded remarks. for any you questions

Operator

Carlos Morgan Our Ladies comes for now opening we first Stanley. question and from and the are from answers. [Operator floor gentlemen, Instructions] De Alba question

Carlos de Alba

questions. X So,

not between should First is XXXX the of has distribution yet been how the spent? we billion about already? remaining has very much been portion And XXXX and that EUR how spent spent one the X.X straightforward, of think CapEx

Maximo Vedoya

Carlos. Yes,

billion. equipment. of because to No, XXXX, talking EUR project, includes CapEx is are are XXX, around I million And in some you was about I seeing XXXX particularly of probably This and XXX around The total in the Usiminas, including XXX, CapEx $XXX XX XXXX we Usiminas. it's yes X.X%.If around sorry. of this you yes, it's year, million. also mean, we payments XXXX the going $X.X $XXX are around be want. first you million, XXXX, the is made give X.X% Well, the X.X with it's total XXXX numbers if So, it's million of there

is XXXX. going Next to year, $XXX be around big X.X going it's And EUR part billion million. in around the to be

Carlos de Alba

particular, for going timing second the the EBITDA plans you the or operating you're for that think company?And to is in operation, reach, in the mentioned what $XXX the you per been to the overall question Are have or production know do to total I third that CapEx I operation Usiminas now point you months what there? what is, restart to think And for about X to? ton you is you in so are What the there so, Cubatao? that past you crusty for wanted company the you that do for the is going bring that you that see target have

Maximo Vedoya

operation. we upstream not operation, of mill.Putting that a some for still is last we with been or have be has not industrial how is make for Well, remarks.I last facility cold-stream has lot Cubatao the yes, very have the my It of it's new solid a answer no, as I But going are in Ipatinga making furnace in months. your capacity And an little Cubatao.I a stream operating focus we no option a but Usiminas the is operating think are are and from a bit the and think time clear take more a mentioned the a equipment. -- before I over blast as great management a there's competitive Cubatao for asset. put they Usiminas mill today we more that questions, changes, X I going mean Cubatao in could been that a that taking the whole, the already been there wonderful to productivity alternatives. and to again, Usiminas mean decision hot we question. there much

think, of be going we And of of the lot productivity the will we think, because, in facilities.And this focus, don't the But increase CapEx a one. that of I Usiminas another that's know seeing opportunities sense. XXXX, lower seeing As are the number to we of the It's in that's I to relining you both are year I said, are $XXX around blast I have of in idea. the course, XXXX today. if number hurdles. than million

Carlos de Alba

Yes.

we The was other related to what Usiminas? expecting were margin the to of question

Pablo Brizzio

clearly, very know, were you expecting are was XX% situation. year-end the year.The expectation, we coming margin expectation able achieve in of around Ternium we XX%. work the to getting achieve that. front reaching margin And always we recovering relining XXXX together for the the percentages clearly, the the margins blast production.So, have will working reduced this able consolidation with XX% XXXX margins be of last are to to that's reach that semester we EBITDA end furnace year, And start XX.X% the during the with of that order year, Usiminas.So, in the that As the last the on on from we the in and Carlos high of quarter, quarters. is margins review to around and working Usiminas Usiminas during of due a of because that better management idea number a that that We of to has to of and altogether, hopefully, to also during EBITDA second by of course, for of the of and the Usiminas lack should this

Carlos de Alba

Usiminas a Cubatao maybe, standard. order to in amount bring you Ipatinga the Usiminas, get a at, on to state operation, you think CapEx wanted invested of Maximo, in a both that CapEx already the one and range have Ternium to of Just to that I level that needs to really the maybe if what close more is question be ballpark, with

Maximo Vedoya

No.

of think X things. I to the that or has number, years XXX Usiminas is do million and project at that part EUR around several X that

but are easier of within cocoa we in the of Ipatinga, I that the decision to going it's also that in downstream the okay. with a we of have in the Some CapEx to some expecting operation.But following decision, be environmental numbers the level take years, are we part and improvements think

But other know, different long are the in course. we these term projects go that we The process in of preparing all mining completely that engineering number, if and issue That's studies of is necessary we the the approve you analyzing a operation. project. and forward as can so a if

Carlos de Alba

too is with want but on much down pelletizing Usiminas Cubatao? or together to Cubatao, the just the on And a DRI on, operations an there, it I in downstream don't mentioned, plus the you in electrical of road the location furnace to what assets possibility invest facility, for maybe given

Maximo Vedoya

that that Why I an it's in the facility of furnace I a is Brazil. is think natural yes, think partially, of course. an matter would I say. gas partially? electrical there, different of cost DRI option because

long cost to this a $XX Brazil in and can you, million it's If the the in DRI But furnaces with you have facility. facility. of possible electrical of put without an not again, DRI medium you term. put is But

We are today that. not about saying anything

Operator

Our next of question comes from Yulia Luisito of Bank America.

Yulia Luisito

just forward?And does what sense you I turning we your a next sense considering maybe to decision per long-term to mean, of in expect of our last should in should costs get in quite have a assets since American downstream the end ton? remain it forward? kind What make we're And going for Or starting. yet, So, model [indiscernible] increase EBITDA at don't EBITDA expect I a so, mining, expect the going to Usiminas time of the decision margins? arrear But have should still for line quarter Usiminas across does Usiminas. is guys half, percentage, my what understand of one that starting your just on X second a know second terms of line I it to questions. at My want first on so, one current is the mean and on portfolio I life why months at you're close? we of the we and Latin

Paolo Rocca

Paolo. This is

margins.Here, plan EBITDA take mentioned order we are by will me first the one are and your question. our be to and projects every that sustain end doing, increase are that that ready we and especially about investment year. up in talking Let you Clearly, next the of

we'll every to project it's the we which exactly upper the needs to And are supply position forward be of line big product are clearly able to new in we that because core new the mentioned, mentioned to to Ternium XX% the see the a value of have prices. the of we that increase to as plans But the full environment at after number range are did adding with want value plans product range mill.So, a that investment Maximo a auto always to difficult between increase for always But position So, we exactly and you new the XX%. number say, part that to CapEx be is as in margin currently that have Mexico, to on the we the clearly, industry rolling want in an to that the be. we how upper be our we tell of need you these the develop that contribute very It's clearly, in.As these we today. exact Ternium this and range that vena side will pulling difficult to the this on improve. have closer margins. to Remember projects where to we opening give is to we will

Maximo Vedoya

Yes.

cannot actual I and in ups the have doing forward that mean, until project, on years downs Usiminas production in a studies XXXX, very all mining year. and the make very is and decide to at is going putting in X team that of detail analyzing necessary and we're So, a have is some you than that on time.What management why decision. team at putting But going we are even far together to normal the new But XXXX are to we quickly, MUSA the is once decision making operation decision, and to Usiminas the taken least the because I to and permissions. the going make forward seems is be MUSA than more X Usiminas continue Mining asking least more the tell again, that's the Regarding project, a projects, we with which so go attractive. now

Operator

Question Marcus from from Enrique Sachs. Goldman

Enrique Marcus

from comment even better after little demand projects, understand devaluation the bit for public little if Argentine infrastructure guys whole on to Argentina can impacts for and want peso Just the in would the the expectations that prospectus you from a bit more any a great. be demand

Maximo Vedoya

in doing I of own for bit around Thank the numbers But for planning ones up to a number Bacauarta decrease high of and the demand infrastructure could facility, gas, the decreasing we are oil Infrastructure are is gas I production they we in of except pipe, And they in putting of mean, have of demand as north our a lot projects.So, seeing oil less than sales those demand. didn't of Yes, are you, year number the a probably Yes. forecast, little a all in putting the we those don't decrease in the are forward. and that. and we reversion XX%.This our gas. think I the be projects for Argentina, projects, continue that Enrique. mean,

bit are see if this we Argentina. of answered in being So, a are August, demand July, succeeded by course, infrastructure. don't demand the I with little the the I take start in to Again, in this reforms we decrease doing as a that And things in I your these going cautious. But, the better. we said, that, well-needed Enrique. reforms increase all speak hope very question, implementing government number, recession of has could is market.Probably in

Operator

[Operator Instructions] Marcio Sold comes from Our from Goldman Sachs. next question

Marcio Farid Filho

of follow-ups couple me. for A

we for some will total, be increase still in announced that in drivers now think dividend, is and onwards. in trying last, what for for be have the demand into visibility as quarter understand there but secondly, year and outlook know XXXX to give going you if position, for a one understand is the for base else obviously, the seen that I quite seems more this that the first maybe in for U.S., structural And The are to first earnings provide new trying think that expectations interesting can if one, Pesqueria, to is some there this XXXX are project to of well. just needed. have I the no still the us confident details that you're was you've on if anything terms can to in talked of capture a to be at the view base of about track.And increase the continuous CapEx going into revisions timing terms you year marginal $X.X you for about but so great.And Mexico

Maximo Vedoya

Thank Marcio. very much, you

Let me start with the Pesqueria CapEx question.

today. there we that, as more ago, project said, it's an X think change the number.First, and than inflation inflation correct I things of was when There some the did the are I year also number the X in construction. equipment in

some that was approved that euros XX. lot bought of today, $X, X.XX, And project, little bought mean, bit.The the we a the or in other it's logic the that equipment a EURX. part of some were we when increase And we is the time equipment euros. $X, it's I important to So, that issue

us So, there CapEx. also can far the increase are don't that that something increase the else make We Those is so number. factors that move an X there. see main

course, to in a some And road. put the the can safe we it don't think be honest, it's Of I we X.X%. to bumps today. quite have number see But

Pablo Brizzio

To perfectly add are timing. that, we to on

we of delay which So, on pressure question. we are any got that taking part the was second

Maximo Vedoya

dividend lines. delays as the to in steps the future. Then the I want the sustain always can is, billion. question, Yes. I No at you said, have we we X.X in this steps mean, that we mean, take any

the future. And can is X.X% sustain think the so, that we something that we in

X X.X. later, a I you that's increase X, putting last remember, pandemic, So years record, if big is think we're the X number are the why see years.If in our X.X%. X and the or on And today, you track was we it before

analyze is X.X% a the a as except exactly think can about I level, it's And have if remember and the don't new the are about happening, that a less. strategy little is was I Mexico. middle in going what it something to to to say, So, safe we or Board you always analyze the does, Marcio, question, we bit Mexico. question increase going

Marcio Farid Filho

Just about prices overall Mexico, within and demand please.

Maximo Vedoya

Mexico. the Mexico you But bit course, going a next Mexico, of low it's North and see or in little in bit recession we industrial call, a be Okay. the little and I only the good. again. but to settled that X demand, always production.Construction demand honest, be in probably to it's conference the driven is, to North don't We were mean, in months I general, start U.S. not Mexico.In we probably last prices low, today, America, see and I said Mexico, activity in is before And demand. several is down demand very is the little demand by healthy bit in coming. both the linked for America and much in because pretty commercial market mean see good. in X countries, talking about a when increasing

that World I grow be in it much course, Of think XXXX.The that Mexico was last number consumption don't of by increase as less. the steel up to remember in are X%, the healthy more it's consumption remarks, number or of I going my again, in Steel going was as seeing by in it to And we was grew in XX% XXXX. demand. now But

Operator

Greiner Our last from BTG question from comes Patel. Caio

Caio Greiner

in So, on X One America. quick one questions. HRC North prices

point we your other move of in on ago, relevant in to the are have in a talks with move wanted Ternium first an Just thoughts hear next Usiminas. regions. some we further seen at and thoughts but some a simplification one So the HRC to guys about that we're a forward. this see I Usiminas, guys wanted next attempted trading whatsoever I new into move maybe question, think expect even can are that that and maybe President announce seeing just trending XXXX.And Ternium, try Argentina, in hear be broader times think moving is update corporate on prices issue.And address can, that.I actually just could administration Usiminas lead quarter when time for on trying ago, I also with hikes, part a the to for lower.So, Ternium's more we a a what simplification. and going that Have future? haven't to the price even could even few years to to on both is the Corpus of valuation mean, thing mean controller guys, price be simplification, think wanted administration? valuation you you second Because down hear is a corporate so you guys discount going we on trading which on Prices the what I at players premium remember to interesting I Argentina. the to been we just the that and what it's you really do didn't new one mean, quarter short-term is be. to you second the my think for your

a could the corporate to on be when your room try those simplify there simplification latest the stock.So, So, maybe thoughts structure, company's just about get and some you re-rating mean, wanted on I that X to I think corporate hear for update on items. to all the

Maximo Vedoya

the the that one, And yet. if something, on Board.We TerniumÂ management will Pablo I is with Caio. at simplification And add much, please the very corporate you do Thank about least our of agenda, inform agenda Caio, and the then also, second start on to still first Pablo. don't one. anything wants to have

mean able to Argentina, we in be has this to on happen. of you with Steel have the that, point, agreement But our something some reason the Ternium transaction it's we government.So, I can if that. partner an different should at the government at is think I some and things a it that in talked favors and government going anything lot with new said, favors always issue. this honest, the should this Nippon haven't there. We be it It that as hands, a we that Usiminas mind, point new their with haven't like talked because be remember, of I of as is something favors government analyze government. Ternium. But kind

we be where And could are the are not we improve going on to next happy and to think today, year, are Usiminas. so, something. X.X working future, Usiminas years. for In anything I do the we But in

Pablo Brizzio

time. different I say, Clearly, have one And this wanted a Ternium as a mind. we long our said, we been from and this for the period part of very to clearly, you standpoint that. clearly is future strategy, important to for soon with move is discussing as clearly in we see it of the something consider it's of chances our as forward of that valuation

Caio Greiner

just on road guys down expires? agreement do on how gets simplification, you the possibility of delisting Nippon Usiminas corporate the And one with much the the follow-up X years view pretty

Pablo Brizzio

quite it's they are the That's we have of will seeing Maximo there for only corporate other to move loss because regulation, Usiminas. possibilities something us the service shareholders And are agreement mentioned, in some not take a but moment. answer, particular.So, that complicated. Brazil and that an difficult are in question We regulations there that not in Caio, time are some Then to know we that at forward.

said, I is mind. our simplification corporate in As

government that Clearly, it's can it's it always think move about. something we something difficult start But that in is we not future very something the it's that this thinking at moment. for speculate forward So, to are right to X, which now.So, in than relationship is on more we The we that in is it will do hopefully, chance easier and in the to that. this to to have past. have, the Argentine new one analyze to closer the depth with

Maximo Vedoya

and in prices last that down So, right, Mexico. San but prices the coming has the the recent in weeks.As of been the said, imports X are not a I the U.S. Caio, it problem is X, mainly problem in hot a demand, U.S. weeks, of Well, Paras it's coming you're to yes, that oil to

And demand that's prices don't a $XXX to this million good is at going is going around going is I America standard a near of always to new that down.As that that already in is prices still bit much North future. or higher be of there the floor news said, stabilize least. or is a something I little further new the main see reason. I The it's So, think there. in

lower. is more the think don't are demand are we the prices because following going May, June, imports for So, change. and coming Again, I much in know months there to July,

So, positive that. about I am

Operator

hand as I'd questions moment. to for pending remarks. the CEO, closing any over of have like don't now We to Maximo, back

Maximo Vedoya

again, you, Thank all today's participating in call. for

much, please contact Thank you questions any comments. or and to for goodbye. usual, very As us feel free

Operator

Ending today's wonderful day. call. a Have

Ternium (TX) 21 Feb 242023 Q4 Earnings call transcript