Washington, D.C. 20549
Indicate by check mark
whether the registrant files or will file annual reports under cover Form 20-F or 40-F.
Indicate by check mark whether the registrant
by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule
12G3-2(b) under the Securities Exchange Act of 1934.
If “Yes”
is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
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 Ternium S.A.’s presentation during
its 2017 investor day.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
TERNIUM S.A.
By:
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/s/ Pablo Brizzio
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Name:
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Pablo Brizzio
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Title:
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Chief Financial Officer
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Dated:
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June 29, 2017
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TERNIUM INVESTOR DAY 2017 SOLOMON R.GUGGENHEIM MUSUM. Thursday,
June 29th, 2017
Forward-Looking Statements
This presentation contains certain forward-looking statements and information relating to Ternium S.A. and its subsidiaries (collectively,
“Ternium”) that are based on the current beliefs of its management as well as assumptions made by and information
currently available to Ternium. Such statements reflect the current views of Ternium with respect to future events and are subject
to certain risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of Ternium
to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking
statements, including, among others, changes in general economic, political conditions in the countries in which Ternium does
business or other countries which have an impact on Ternium’s business activities and investments, changes in interest rates,
changes in inflation rates, changes in exchange rates, the degree of growth and the number of consumers in the markets in which
Ternium operates and sells its products, changes in steel demand and prices, changes in raw material and energy prices or difficulties
in acquiring raw materials or energy supply cut-offs, changes in business strategy and various other factors. Should one or more
of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially
from those described herein as anticipated, believed, estimated, expected or targeted. Ternium does not intend, and does not assume
any obligation, to update these forward-looking statements. Ternium Investor Day 2017
Event Schedule 8:30am
Registration and breakfast 9:15am Presentation by Daniel Novegil, CEO, and Ternium management 10:00am Q&A session 11:00am
Closing remarks Ternium Investor Day 2017
Speakers Daniel Novegil,
Chief Executive Officer Mr. Novegil, who has been Ternium’s CEO since 2005, is an Industrial Engineer from Universidad de
Buenos Aires and has a Master of Science in Management degree from Stanford University. Mr. Novegil is a member of the Board of
the World Steel Association. He is also a member of the Advisory Board of the Sloan Master Program of Stanford University. Pablo
Brizzio, Chief Financial Officer Máximo Vedoya, Managing Director, Mexico Martín Berardi, Managing Director, Argentina
Oscar Montero, Planning and Global Business Development General Director Sebastián Martí, Investor Relations Director
Ternium Investor Day 2017
INDEX Safety and Environment
Global Steel Markets Profile Ternium’s Markets Business Strategy Next Steps – Opportunities for Ternium Conclusion
SAFETY AND ENVIRONMENT
Safety Continuous performance
improvement • 4-year long safety projects and Lost time injuries frequency rate (# of events / million hours worked) certification
of facilities to be completed by year-end __ • OHSAS 18001 safety certification __ __ • Critical process program (DuPont
2.6 assistance) 1.4 1.1 0.9 • Deployment of new technology to improve safety performance 2011 2013 2015 2017 YTD worldsteel
average • Video analytics: learning machine that analyzes images collected by 1,300 cameras • Online detection of non-compliance
situations, new tool that helps implement preventive and corrective actions • 7 out of 10 safety criteria being digitally
monitored Ternium Investor Day 2017
Environment Continuous
reduction of Ternium’s environmental impact • ISO 14001 environmental certification ISO 14001 environmental certification
(% of employees and contractors working in • 97% of employees working in certified certified production facilities) production
facilities • LEED certification (Leadership in Energy & 97% Environmental Design) • U.S. Green Building Council
30% • First flat steel facility in Mexico with 2011 2013 2015 2017f LEED certification • New investments in best available
technologies to reduce Ternium’s environmental impact mainly on: • Air emissions • Water discharges • By-products
management Ternium Investor Day 2017
GLOBAL STEEL MARKETS
Global Steel Markets
World
ex-China with positive growth expectations • Strong expectations for U.S.’s steel Apparent steel use (ASU) ASU use
growth based on: (y-o-y growth rate) (kg/pers) • Rebound of manufacturing industry 2016 2017f 2018f 2018f • Infrastructure
investments World 1.0% 1.3% 0.9% 208 • China 1.3% 0.0% -2.0% 479 Upside potential to China’s steel consumption forecast,
coupled with World ex China 0.7% 2.4% 3.1% 146 program to reduce excess capacity USA -4.7% 3.0% 2.9% 295 • India and ASEAN
countries steel use Mexico 2.5% 1.4% 2.4% 200 expected to grow significantly Brazil -14.4% 2.8% 7.0% 94 • Mexico to continue
to grow despite Argentina -20.1% 7.6% 6.0% 107 NAFTA renegotiation India + ASEAN 8.9% 6.2% 6.7% 89 • Argentina back to growth
after macroeconomic transition in 2016 Source: worldsteel - SRO Apr 2017 / Alacero SRO Apr 2016 forecast: China 2016f= -4% and
2017f= -3% Ternium Investor Day 2017
Global Steel Markets
NAFTA renegotiation status • No significant impact on shipments to U.S. international trade1 in 2016 industrial customers
so far (USD billion) • NAFTA renegotiation as an opportunity to Export Import Trade Deficit Share improve treaty (rules of
origin) China 116 463 579 -347 46% • Section 232 investigation in the U.S. might Japan 63 132 195 -69 9% lead to higher duties
on imported steel Germany 49 114 163 -65 9% • Problem is China, not Mexico Mexico 231 294 525 -63 8% • U.S. trade deficit
with China four times Canada 268 279 547 -11 1% higher than its trade deficit with Mexico + Others 732 928 1,660 -196 26% Canada.
World 1,460 2,210 3,670 -750 100% • Mexico is a net importer of steel in NAFTA (trade deficit with the U.S. of more than
1 Source: US Department of Commerce 1 Trade is the addition of exports and imports million tons - majority of imports from U.S.
are high-end steel products) Ternium Investor Day 2017
PROFILE
Profile
Consistently
superior performance • Focus on high margin value-added products EBITDA margin (% of net sales) 21% • Flexible production
configuration 17% 17% 15% • Diversified cost structure 14% 14% 13% • Upstream and downstream integration Average 6%
• Best practices 5% • Broad distribution network 2012 2013 2014 2015 2016 Ternium Peers range1 • Recruitment and
retention of talent 1 Long steel Americas, global player, U.S. minimill and U.S. integrated (Source: Bloomberg) • Innovative
culture, industrial expertise and long-term view Ternium Investor Day 2017
Profile
Solid
financial position and attractive dividend yield • 5% dividend yield1 in 2016 Dividends paid (USD per ADS) +54% • 54%
dividend increase in last 5 years 1.00 • Agreement to acquire CSA to increase net 0.90 0.90 0.75 debt to EBITDA ratio to
1.50x - 1.75x by 0.65 3Q172 Dividend yield 2013 2014 2015 2016 2017 6% Ternium Net debt and net debt to EBITDA ratio Peers range3
5% (USD billion / last 12 months EBIDA) 4% 3% 1.7 3% 3% Average 0.9 1% 1% 1.3x 0.6x 2012 2013 2014 2015 2016 2012 2016 1 Dividend
paid / yearly average share price (Bloomberg) 3 Long steel Americas, global player, U.S. minimill 2 Subject to completion of acquisition
and U.S. integrated Ternium Investor Day 2017
TERNIUM’S MARKETS
Ternium’s Markets
Well
positioned in Latin America’s largest steel markets • Leading supplier of flat steel products in Mexico and Argentina
• Participation in Usiminas controlling group • Agreement to acquire CSA in Brazil • Operations in Colombia, the
U.S. and Central America Ternium’s steel shipments (2016) USA 4% Argentina 21% Mexico Colombia 66% 6% Other 3% Ternium Investor
Day 2017
Ternium’s Markets – Mexico
Mexican
flat steel market growing consistently Most attractive steel market in Latin America Apparent flat steel use – Mexico (million
tons) • 36% increase in flat steel consumption Local Imports 15.0 15.6 since 2011 12.6 11.5 • Opportunity to substitute
imports of high-end products 58% 55% • Industrial market increasing relevance 2011 2013 2015 2017f • Strong measures
to promote fair trade in Source: Alacero / Ternium estimates the NAFTA region Apparent flat steel use – Mexico • 32
cases against 35 countries (% share) Industrial Commercial • China with tariffs to most steel products 44% 42% 41% 38% •
Renewal of 15% import tariff in Mexico (for countries with no trade agreements) 56% 58% 59% 62% 2011 2013 2015 2017f Source: Ternium
estimates Ternium Investor Day 2017
Ternium’s Markets – Mexico
Strong
industrial steel demand • Light vehicle production expected to Light vehicle production continue growing (million units)
4.1 3.4 3.5 3.2 • Production up 14% YTD, to reach 4.1 2.9 2.9 million units in 2017 • New OEM capacity starting up during
2017 • Production expected to reach 4.6 million 2012 2013 2014 2015 2016 2017f Source: AMIA units by 2020 Construction spending
• Home appliance and electrical equipment (billion of constant MXN) industries growing 6% YTD Private Government 300 •
Construction activity up 2% YTD 200 • Private activity offsetting decrease in government investment 100 • Infrastructure
investment expected to 0 improve in 2017 2012 2013 2014 2015 2016 Source: INEGI Ternium Investor Day 2017
Ternium’s Markets – Mexico
Strong
growth of Ternium’s shipments Ternium outpacing Mexican steel consumption Ternium steel shipments in Mexico (million tons)
growth through import substitution +8% Industrial Commercial 6.4 5.9 • 500,000-ton shipment increase in 2016 5.6 5.0 5.0
• Volume growth higher in the automotive and 50% home-appliance industries 60% • Broader product range enabled by 50%
40% upgrading of re-rolling facility 2012 2013 2014 2015 2016 • Differentiation in the commercial market Ternium’s
shipments growth in 2016 through value-added products and services (year-over-year % change) • Increasing customer digital
connectivity 20% • Nationwide coverage through regional 11% distributors and distributors centers 4% 3% Automotive Home Construction
Other appliance sectors Ternium Investor Day 2017
Ternium’s Markets – Mexico
New
investment targeting the industrial market • New hot-dipped galvanizing and pre-painting lines in Pesquería •
High-end value-added products for the home-appliance, heating-ventilation-air conditioning (HVAC) and automotive industries •
Annual production capacity of 300,000 tons of galvanized products and 120,000 tons of pre-painted products • Most advanced
painting technology in Mexico • Expected start up: • Galvanizing: 2H 2019 • Pre-painting: 1H 2019 • Total
investment of USD 260 million Ternium Investor Day 2017
Ternium’s Markets – Argentina
Activity
recovering in 2017 and positive outlook for 2018 • Economic reforms to improve Argentina’s Apparent flat steel use
(ASU) – Argentina (million tons) performance in following years: +10% +10% -19% • 2016: GDP -2.2% / ASU -19% 3.1 3.0
2.8 2.7 • 2017: GDP +2.6% / ASU +10% 2.5 • 2018: GDP +3.0% / ASU +10% • Factors that developed as expected: •
Initial currency devaluation 2014 2015 2016 2017f 2018f • Reduction of government subsidies Source: Alacero / Ternium estimates
• Ongoing recession in Brazil • Factors that didn’t develop as expected: • Economy gaining momentum driven
by: • Delayed start up of government’s • Agriculture infrastructure projects • Construction • Delayed
new regulation framework for • Non-conventional oil & gas oil & gas industry • Currency real appreciation (deferring
private sector investment projects) Ternium Investor Day 2017
Ternium’s Markets – Argentina
Activity
recovering in 2017 and positive outlook for 2018 • Higher agro production and investment Agro equipment sales Implements
Seeders (thousand units) Tractors Harvesters • Production: +14% in ’16/’17 season 20.4 +41% • Bright spots:
sales of agro machinery 17.2 17.6 4.2 14.8 13.9 and pick-up trucks 3.0 • Construction activity gaining momentum, driven by
government infrastructure investments 2012 2013 2014 2015 2016 1Q16 1Q17 • Vaca Muerta: shale oil & gas drilling Source:
INDEC increasing in 2H’17 Cement shipments (million tons) +10% • Government price stimulus 11.9 12.2 12.0 11.4 10.9
• Restructured labor agreements 10.7 • USD7 billion recently announced investments in next 3 years • Government
investment estimates: USD14 billion in 2017/18; USD15-20 billion per year from 2019 2012 2013 2014 2015 2016 2017f Source: AFCP
/ Ternium estimates Ternium Investor Day 2017
BUSINESS STRATEGY
Business Strategy
Main
elements of Ternium’s business strategy Envisioning Strategic Agenda • Leader in key markets, high • Expansion
in North America, market share mainly Mexico • Focus on high-end and value- • Increase in high-end product added products
offering • Differentiation • Operational excellence • Profit sustainability • Slabs supply strategy •
Growth Ternium Investor Day 2017
Business Strategy
Growth
in Mexico: Leader in the Mexican flat steel market Ternium’s shipments to industrial 2005 - Hylsamex customers (million
tons) 2007 - Grupo Imsa +65% 3.3 2.9 2013 - Industrial center at Pesquería 2.6 2.0 2.1 2013 - Tenigal 2016 - Techgen 2017
- New galvanizing and pre-painted lines 2012 2013 2014 2015 2016 Ternium Investor Day 2017
Business Strategy
Differentiation
through value-added products • Advanced high strength steel qualities for auto industry • Lighter vehicles • Increased
cargo capacity for trucks • New functional coatings for home appliances • Textured and stainless steel-looking surfaces
• Chrome-free systems (RoHS1 compliant) • Steel qualities for electric motors (lower energy loss) • Metallic and
textured coatings for exposed surfaces • Increased light reflection (lower cooling requirements) • LEED compliant systems
• High resistance and high toughness API qualities for natural gas pipelines (higher transportation yields) 1 Restriction
of Hazardous Substances Ternium Investor Day 2017
Business Strategy
Operational
excellence to sustain profitability Breakthrough initiatives to increase differentiation and reduce costs • Customer integration
• Labor productivity • Exiros • Working capital optimization • Logistics management • Contractors management
• Energy efficiency • Continuous improvement Ternium Investor Day 2017
Business Strategy
Slab
supply strategy to provide a solid base for growth • Ternium short-slab since the acquisition of Slab purchases for Ternium
Mexico Grupo Imsa in 2007 (million tons) +45% 3.7 • Decision to delay integration investments 2.5 following 2008/2009 downturn
• Take advantage of world’s excess crude steelmaking capacity • Focus on industrial customers’ requirements
• Capital expenditures shift towards 2012 2016 downstream investments • CSA acquisition as an opportunity to reduce
Ternium’s short-slab position • Attractive transaction at lower price than replacement value • Integrating to
gain operational flexibility • Opportunity to take CSA to its full potencial Ternium Investor Day 2017
Business Strategy
Agreement
to acquire CSA • CSA is a Brazilian state-of-the-art steel slab producer • 5 mtpy capacity of high-grade steel slabs
• 490 MW combined cycle power plant • Deep-water harbor • Compact, efficient and environmentally friendly facility
• Just-in-time iron ore supply (railroad) • Two million tons per year agreement to supply slabs to thyssenkrupp’s
former Calvert re-rolling facility in the U.S., expiring in September 2019 • Completion of acquisition subject to satisfaction
of all closing conditions, including Brazilian antitrust approval Ternium Investor Day 2017
NEXT STEPS - OPPORTUNITIES FOR TERNIUM
Next Steps
Opportunities
for Ternium in the next five years Strategic Agenda Next five years • Expansion in Mexico • Continue growing in the
Mexican market • Increase in high-end product • Capitalize on the integration of offering CSA into Ternium’s industrial
system • Operational excellence • Continue development of new • Develop market value high-end steel products potential
relative to peers • Intensive use of IT/IS to achieve breakthroughs in operational excellence Ternium Investor Day 2017
Next Steps
Capitalize
on CSA to continue growing in the Mexican market Strong foundation to continue growing • Integrate CSA into Ternium to take
it to its full potential • Reevaluate all downstream opportunities in Mexico • Increase competitiveness in the high-end
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 Ternium Investor
Day 2017
Next Steps - Operational Excellence
SMART
Factory • Ternium already completed two decisive stages in its IT evolution: • Technology base to maximize data availability,
connectivity and processing power • Expanded that technology to the entire value chain • Next step: SMART Factory, a
new concept of USER EXPERIENCE total interoperability ALGORITHMS & PREDICTION SMART • Social (employee skills and communication)
INTEROPERABILITY Factory • INTERNET OF Mobile (ubiquity) THINGS • Analytics (and cognitive) • Robots (autonomous)
Value Chain Expanded • Things (internet of things) Real Time Ternium Investor Day 2017
CONCLUSION
Conclusion
•
Consistently superior results in attractive steel markets in Latin America • Solid financial position and strong dividend
payments • Successful implementation of business strategy geared toward sustainable profitable growth • CSA as an opportunity
to grow and strengthen business in the region • Continued focus on generating long-term shareholder value Ternium Investor
Day 2017
Ternium Investor Day 2017