Ternium S.A. · NYSE:TX
Ternium — Investor Day (March 2012)
32 slides from Ternium's investor day presentation, Mar 27, 2012
Slide 1: Form 6-K Ternium S.A.
FORM 6-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Report of Foreign Private Issuer Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934 As 03/27/2012 Ternium S.A. (Translation of Registrant’s name into English) Ternium S.A. 29 Avenue de la Porte-Neuve L-2227 Luxe
Slide 2: Form 6-K furnishing statement and signature
The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended. This report contains the presentation shown by Ternium S.A. at its Investor Day held in New York City on March 27, 2012. SIGN
Slide 3: Investor Day 2012 New York
TENIGAL AND COLD-ROLLING MILL CONSTRUCTION SITE INVESTOR DAY 2012 NEW YORK PALACE HOTEL MARCH 27, 2012
Slide 4: Forward-Looking Statements
TERNIUM (collectively, Ternium different in exchange prices underlying anythe obligation, countries or with from difficulties rates, assumptions l Investor “Ternium”) respect any to the in update which future degree into Day acquiring future prove Ternium these results, that –ofMarch growth are inco
Slide 5: Event Schedule
TERNIUM l Investor Day – March 27, 2012 3 Event Schedule11:30amRegistration & luncheon12:00pmPresentation by Daniel Novegil, CEO1:00pmQ&A with Ternium management2:00pmClosing remarks
Slide 6: Speakers
TERNIUM has Program a Master of the l of Investor Stanford Science Dayin University Management – March 27, School 2012 degree ofSpeakers4 Business. from Stanford Daniel Pablo University. Brizzio, Novegil,CFO CEO Mr.Novegil Máximo Mr.Novegil Vedoya, is a member is Chief Mexico Executive of the Area B
Slide 7: Latin American Steel Markets
TERNIUM l Investor Day – March 27, 2012 5 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion
Slide 8: Latin American Steel Markets
TERNIUM (CAGR) investments America64.010723%5.2%4.0% 11mtkg/capImpo%ASUGDPBrazil25.012714%5.8%4.2%Mexico18.015732%2.3%2.5%Argentina5.313118%8.2%7.7%Colombia3.26948%11.2%4.8%Chile2.514744%4.6%4.3%Other9.95554%7.3%4.5%Latin 2003- of 5.2% linInvestor infrastructure, in last Day8 years – March energy St
Slide 9: Latin American Steel Markets: flat steel consumption
TERNIUM 34 52%4%44%Flat (2011) appliances1.85%Chile1.256%47%Energy1.34%Other3.760%37%Packaging1.24%Latin million (2)mtImpo%Flat/TotalmtweightBrazil13.018%52%Construction15.446%Mexico11.437%64%Automotive8.525%Argentina2.816%52%Industry5.316%Colombia1.459%44%Home tons l Investor (52% products33.5 of D
Slide 10: Competitive Positioning
TERNIUM l Investor Day – March 27, 2012 8 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion
Slide 11: Competitive Positioning
TERNIUM steel through consumption products integration l Investor (2011) Leaders into Day invalue-chain high-end – Marchsteel 27, Usiminas, 2012 usingCompetitive sectors NipponDeep Steel, Positioning downstream TerniumOther Leading integration Latam player playersImports and in broad flat steel netw
Slide 12: Competitive Positioning: Construction markets
TERNIUM infrastructure engineered (1)34%38%28%Imports Ternium estimates buildings, l Investor development tubes DayCAGR –Broad and March purlins) 2003-11 customer 27, 2012 Opportunities = 5.4%112118130143152157153160172'03'04'05'06'07'08'09'10'11e base Competitive and extensive for Positioning impor
Slide 13: Competitive Positioning: Automotive markets
TERNIUM (million •Automotive oGalvanized Steel, Ternium units) l sheets Investor steel-making •Vehicles Source: forDay ADEFA, exposed production: –facilities March parts ANFAVEA, 27, in7.2 oAdvanced Mexico, 2012 million ACOLFA, CAGR Brazil units high-strength 2003-11 (3.4 and FAVENPA, Argentina. in
Slide 14: Competitive Positioning: Energy markets
TERNIUM Colombia, Fuel 2020 tankers periodshale lto oProduction Investor supply gas inDay aArgentina) total platforms – March of 443and 27, oOffshore projects infrastructure 2012 (1) Competitive support •Mexico’s •Relationship vessels Positioning energy oDrilling sector withLatin Tenaris rigs willAm
Slide 15: Key Drivers of Profitability
TERNIUM l Investor Day – March 27, 2012 13 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion
Slide 16: Key Drivers of Profitability
TERNIUM supply related chain synergies l management, Investor and value Day –service creation Marchand27, 14 distribution 2012 Key Drivers centers,ofproprietary Profitability ITProduct platformdifferentiation: Upstream integration: development increase of high-end iron ore products production to and
Slide 17: Product Differentiation
TERNIUM product GalvannealGL: HighEndElec-trical(1) portfolio l Investor GalvalumePP: enables Day TRIPContinuousAnnealing offering – March Pre-paintedTIN: a 27, complete 2012 Product product Tinplate AHSSContinuousAnnealing Differentiation range (1)Grain to customers, non-oriented Highly from comple
Slide 18: Product Differentiation: Capacity expansions
TERNIUM Currently free steelgradesin visiting l Investor Argentina OEM’s Dayto– Processing prepare March 27, qualification 2012 capacity: Product 1.2 procedures million DifferentiationAutomotive tons Capacity: per year 400,000 Expected tons steelstart-up: per products year 2Q Expected 16Tenigal: 201
Slide 19: Tenigal and cold-rolling mill
TERNIUM (PLTCM) Annual capacity High-end l Investor of 1.5 products:Exposed Day million – March tons 27, Tenigal surface 2012and Product for Cold-RollingMillconstructionsite the DifferentiationHigh-end automotive industry High-strength cold-rolledmicro-alloyed steel productssteels 17New Advancedhigh
Slide 20: Downstream Integration
TERNIUM l Investor management Latam(galvanized improvements & electrogalvanized)Ternium Day – 18Downstream March 27, 2012Integration Broad 32%Usiminas network Ternium of 18%CSN21%Mittal10% service and Usiminas and distribution service and centers Ternium distribution Combined 26% Usiminas networksSe
Slide 21: Business Service Differentiation
TERNIUM l and web-catalog platform:Unified 19 Investor preferred product Daycode and – March historical Business 27, 2012 to product business Service selection EDI Differentiation (electronic Real-timedata Customer order interface) tracking portal Real-time (credit Ternium status, operation offers l
Slide 22: Upstream Integration: iron ore
TERNIUMofl Investor Resources 235 mt inDay sites – March in operation 27, 2012 (Aquila, Upstream Peña IntegrationNew Colorada) New mining project under in Mexico20 development Total iron (Sierra ore del resources Alo) PACIFIC of 700 million OCEAN tons (ROM, measured and indicated, average Fe content
Slide 23: Sierra del Alo project
TERNIUM (ROM capex: Project USD1 –Fe development content l Investor billion36% Project supported Day -magnetite – March time byframe: world-class 27, iron2012 ore) 4 years Project 21Sierra mining Pellet description:Open del consultants: feed Alo, expected Jalisco mine cash (Mexico) pitdesign, mine,
Slide 24: Crude steel expansion
TERNIUM crude steel capacity l InvestorofDay 500,000 – March tons27, per2012 year Remainingcapex:USD120million Upstream Integration Crude steel expansion Third-partyslabssubstitution in Argentina22Debottleneckingof Fixedcostsdilution steelmaking Increasedoperationalflexibility facility Installation
Slide 25: Pelletizing project in Brazil
TERNIUM made already project, to invite inobtained. only the additional lfollowing pelletizing Investor Installation partners Day areas:Land: facility –(Usiminas, March license or call in27, for final off Nippon 2012 pelletizing the stages Upstream project Steel, of facility acquisition Availability
Slide 26: Upstream Integration: natural gas advantage
TERNIUM Ternium’s year rolledreduction advantageDRI/EAF for every Mexican l Investor 1in dollar average subsidiary cost Day change advantage natural – March in Ternium the gas 27, natural prices4525Natural 2012 Mexico’s average Upstream average gasIntegration price. GasElectricityUSD70 natural (1)He
Slide 27: Investment in Usiminas
TERNIUM l Investor Day – March 27, 2012 25 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion
Slide 28: Usiminas turnaround: first steps
TERNIUMbyl Investor Managers Organizational SouzaIndustrial Ternium StructureFinance VPMarcelo Day to support – CharaCEOJulián March & Usiminasturnaround IR 27,VPRonald 2012 Techint Eguren SeckelmannSubsidiaries Group Initiatives appointed launched 3 directors to VPPaolo review to BassettiCorporate
Slide 29: Association with Usiminas and Nippon Steel
TERNIUM from steel UsiminasTurnaroundAssociation products importsl Investor Procurement in LatinDay American –(economies March markets with 27,Usiminas, of 2012 Combined scale Investment and Nippon scope) procurement in Steel Iron UsiminasTwo and oreefforts Tenaris27 business (Exiros) main developme
Slide 30: Conclusion
TERNIUM l Investor Day – March 27, 2012 28 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion
Slide 31: Conclusion
TERNIUM Steel and distribution createsl aInvestor unique centers Day competitive Product – March and position 27, service 2012indifferentiation 29 theConclusion Latin American and Latin upstream marketsComplete America’s integration steel markets product are keywith range drivers strong focused of g
Slide 32: TERNIUM l Investor Day – March 27, 2012 30
TERNIUM l Investor Day – March 27, 2012 30