Ternium SA (TX) 2023 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Ternium First Quarter 2023 Results Call.

女士們，先生們，感謝你們的支持，歡迎來到 Ternium 2023 年第一季度業績電話會議。

I would now like to turn the call over to Sebastian Marti. Please go ahead.

我現在想把電話轉給 Sebastian Marti。請繼續。

Good morning, and thank you for joining us today. My name is Sebastian Marti, and I am Ternium's Global Investor Relations and Compliance Senior Director. Ternium released yesterday its financial results for the first quarter of 2023. This call is complementary to that presentation.

早上好，感謝您今天加入我們。我叫 Sebastian Marti，是 Ternium 的全球投資者關係和合規高級總監。 Ternium 昨天發布了 2023 年第一季度的財務業績。此次電話會議是對該演示文稿的補充。

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

今天加入我的是 Ternium 的首席執行官 Maximo Vedoya；以及公司的首席財務官 Pablo Brizzio，他將討論 Ternium 的業務環境和績效。在我們準備好的發言結束時，將進行問答環節。

Before we begin, I would like to remind you that this conference call contains forward-looking information and that actual results may vary from those expressed or implied. Factors that could affect results are contained in our filings with the Securities and Exchange Commission and on Page 2 in today's webcast presentation. You will also find any reference to non-IFRS financial measures reconciled to the most directly comparable IFRS measures in the press release issued yesterday.

在我們開始之前，我想提醒您，本次電話會議包含前瞻性信息，實際結果可能與明示或暗示的結果不同。可能影響結果的因素包含在我們提交給美國證券交易委員會的文件中以及今天網絡廣播演示文稿的第 2 頁。您還將在昨天發布的新聞稿中找到任何與最直接可比的 IFRS 措施相協調的非 IFRS 財務措施的參考資料。

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

有了這個，我會把電話轉給 Vedoya 先生。

Thank you, Sebastian. Good morning to everyone, and thank you for your participation in today's conference call. Ternium reported a good set of results in the first quarter of 2023 with an EBITDA slightly over $0.5 billion. This is equivalent to $166 per ton and to a 14% margin. We also have had a healthy cash generation with free cash flow of $414 million in the quarter. Further on, Pablo will go more in this -- on our performance in the first quarter.

謝謝你，塞巴斯蒂安。大家早上好，感謝您參加今天的電話會議。 Ternium 在 2023 年第一季度報告了一系列良好的業績，EBITDA 略高於 5 億美元。這相當於每噸 166 美元和 14% 的利潤率。我們還產生了健康的現金，本季度自由現金流為 4.14 億美元。此外，Pablo 將在這方面做更多的工作——我們在第一季度的表現。

Let's review the business environment in our main markets, beginning with Mexico. Apparent steel demand in the Mexican market remains healthy. In the commercial market, a restocking in the value chain, which began in the fourth quarter of last year continued into the first quarter of this year, and we are not seeing signs of it finalizing yet. In the industrial markets, we are seeing steady steel demand with less volatility than what we see in the commercial market.

讓我們回顧一下我們主要市場的商業環境，首先是墨西哥。墨西哥市場的表觀鋼鐵需求依然健康。在商業市場，從去年第四季度開始的價值鏈補貨一直持續到今年第一季度，我們還沒有看到它最終確定的跡象。在工業市場，我們看到鋼鐵需求穩定，波動性低於商業市場。

The auto industry supply chain disruptions eased significantly and most OEMs plan to increase production. On the other hand, manufacturing industries driven by the U.S. housing market like white goods and HVAC industries are currently softer. We are increasing our market share, especially in the automotive industry as the certification process of new products from the new hot rolling mill in Pesqueria advances.

汽車行業供應鏈中斷情況明顯緩解，大多數原始設備製造商計劃增加產量。另一方面，白色家電和暖通空調等受美國房地產市場驅動的製造業目前較為疲軟。我們正在增加我們的市場份額，特別是在汽車行業，因為來自 Pesqueria 的新熱軋廠的新產品認證過程取得進展。

As an example, in the first quarter of 2023, we shipped 2.1 million tons in the Mexican market. This is 0.5 million tons more than what we shipped in the first quarter of 2022 when the hot strip mill was in the first stage of the start-up. This is an increase of more than 30%, and we expect shipments to continue growing in this market in the second quarter.

舉個例子，2023年第一季度，我們在墨西哥市場出貨210萬噸。這比我們在 2022 年第一季度熱連軋機處於啟動第一階段時的出貨量多了 50 萬噸。這是超過 30% 的增幅，我們預計第二季度該市場的出貨量將繼續增長。

In addition, the downstream projects currently under development at this facility will enable us to complement this new capacity and go deeper into new value-added products to offer to the market. Since our previous conference call, we have also been making progress in our upstream projects. This is the new slab mill we announced in February. Although we are not ready to disclose its exact location yet, we are very close to do it so.

此外，該工廠目前正在開發的下游項目將使我們能夠補充這一新產能，並更深入地開發新的增值產品以提供給市場。自上次電話會議以來，我們的上游項目也取得了進展。這是我們在 2 月份宣布的新板坯軋機。雖然我們還沒有準備好透露它的確切位置，但我們已經非常接近這樣做了。

Something that has been lately calling investor attention is increasing nearshowing trend in the region. This is due to the need of closer and more reliable supply chains to serve end market. Mexico is a beneficiary of this dynamic as a result of its many advantages. It's a membership to the USMCA. It has an exception -- experience and technical qualified labor force, and it offers shorter lead terms and lower transportation costs to end markets.

最近引起投資者註意的事情是該地區的增長趨勢接近尾聲。這是因為需要更緊密、更可靠的供應鏈來服務終端市場。墨西哥因其眾多優勢而成為這一動態的受益者。它是 USMCA 的會員。它有一個例外——經驗和技術合格的勞動力，它提供更短的交貨期和更低的終端市場運輸成本。

And this is being reflected in demand for real estate in the country. According to the Mexican Association of Industrial Parks, the industrial real estate sector has a national occupancy rate of 97%. If we just measure this in the north of the country, the availability rate is even lower at 1% or 99% of occupancy rate. As an example, one of the latest and highest profile investment announcement is Tesla's, new factory in Mexico, which will be built in Monterrey our hometown.

這反映在該國對房地產的需求上。據墨西哥工業園區協會稱，工業地產部門的全國入住率為 97%。如果我們僅在該國北部進行測量，可用率甚至更低，為 1% 或入住率的 99%。例如，最新和最引人注目的投資公告之一是特斯拉在墨西哥的新工廠，該工廠將建在我們的家鄉蒙特雷。

Let me now make some comments about Argentina, our second largest market with 18% of total shipments. Our business in Argentina continues to do relatively well, although there is a considerable level of uncertainty in this market. Argentina suffered from a very strong drought this year that it adversely -- that is adversely affecting grain export revenue and consequently, Argentina's Central Bank hard currency reserves.

現在讓我談談阿根廷，它是我們的第二大市場，佔總出貨量的 18%。我們在阿根廷的業務繼續表現相對較好，儘管這個市場存在相當大的不確定性。阿根廷今年遭受了非常嚴重的干旱，這對穀物出口收入產生了不利影響，從而對阿根廷中央銀行的硬通貨儲備產生了不利影響。

This coupled with a high inflation level and a significantly unstable macroeconomic environment is expected to impact economic activity and steel demand in the country during the second half of 2023. I would like now to make a brief comment about our recent announcement regarding the increase in Ternium's participation in Usiminas control group. Ternium has had a participation in Usiminas since 2012 when it joined Nippon Steel and Previdencia Usiminas in Usiminas control group.

再加上高通脹水平和顯著不穩定的宏觀經濟環境，預計將在 2023 年下半年影響該國的經濟活動和鋼鐵需求。我現在想對我們最近關於增加 Ternium 的公告做一個簡短的評論參與 Usiminas 對照組。自 2012 年加入 Usiminas 控制組的 Nippon Steel 和 Previdencia Usiminas 以來，Ternium 一直參與 Usiminas。

During the past 11 years, Ternium and Nippon Steel have shared Usiminas management on an equal footing without either partner having the ability to impose decision on the other. On March 30, we agreed with our control group partners to take on different roles. We will have a more direct involvement in Usiminas management and the implementation of its strategy, while Nippon Steel will maintain a say in all key decisions outside the ordinary course of weakness and will continue contributing the technology expertise to the company.

在過去的 11 年裡，Ternium 和 Nippon Steel 以平等的地位分享 Usiminas 的管理權，任何一方都沒有能力將決定強加給另一方。 3 月 30 日，我們與控制組合作夥伴同意承擔不同的角色。我們將更直接地參與 Usiminas 的管理及其戰略的實施，而新日鐵將在所有關鍵決策中保持發言權，而不是通常的軟弱過程，並將繼續為公司貢獻技術專長。

Ternium is Latin America's largest flat steel producer and has a proven track record of successfully managing steel assets in the region. This put us in a perfect position to assume after more than a decade in the company, our leadership position in Usiminas.

Ternium 是拉丁美洲最大的扁鋼生產商，在成功管理該地區的鋼鐵資產方面有著良好的記錄。這使我們處於一個完美的位置，可以在公司工作十多年後承擔我們在 Usiminas 的領導地位。

To put this change into action, Nippon Steel agreed to sell to Ternium and our affiliate Tenaris, a portion of its participation in Usiminas control group as well as to make some changes to the shareholders' agreement. We will appoint the CEO, a majority of the other members of the Board of officers and a majority of the Board. Nippon Steel and Previdencia, Usiminas will retain one officer each.

為將這一變化付諸行動，新日鐵同意將其在 Usiminas 控制集團中的一部分股份出售給 Ternium 和我們的附屬公司 Tenaris，並對股東協議進行一些修改。我們將任命首席執行官、董事會的大多數其他成員和董事會的大多數成員。 Nippon Steel 和 Previdencia、Usiminas 將各保留一名官員。

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

至於下一步，首先，我們需要獲得巴西反壟斷機構 CADE 的批准才能完成交易。在我們收到 CADE 對交易的批准之前，我們無法進一步研究我們對 Usiminas 的計劃。因此，我希望您理解，我們無法在問答部分提供比我們已經披露的更多的信息。

Turning now to ESG topics, we are proud to have been recognized last week a Sustainability Champions by World Steel for the fifth year in a row. This industry recognition demonstrates that we are on the right track in our efforts to make our operations more sustainable. One of the things, I'm very proud of is that we are launching the construction of a new technical school in Santa Cruz, Brazil, near our Ternium slab facility.

現在談談 ESG 話題，我們很自豪上周連續第五年被世界鋼鐵公司評為可持續發展冠軍。這一行業認可表明，我們在努力使我們的運營更具可持續性方面走在正確的軌道上。其中一件讓我感到非常自豪的事情是，我們正在巴西聖克魯斯的 Ternium 平板工廠附近啟動一所新技術學校的建設。

For this, we plan to leverage on the experience obtained with our technical school in Pesqueria, Mexico. This technical school, the one of in Pesqueria, which is now on the seventh year of successful operation was launched to educate high school students from our community using innovative technique teaching methods and the latest technology in both classrooms and laboratories. The results of these initiatives, has been remarkable.

為此，我們計劃利用我們在墨西哥佩斯奎里亞的技術學校獲得的經驗。這所位於 Pesqueria 的技術學校現已成功運營第七年，旨在利用創新的技術教學方法和課堂和實驗室的最新技術對我們社區的高中生進行教育。這些舉措的成果，已經顯著。

These students, all of which received scholarships comes from underprivileged communities where the opportunity to assist to high school is very rare. Today, more than 50% of graduates from this school are going through their university studies. We expect Brazil's new technical school to bring technical education with the latest learning tools and technology to close to 600 students with the start-up classes in the first quarter of 2025.

這些獲得獎學金的學生都來自貧困社區，在這些社區，幫助他們上高中的機會非常少。如今，該校50%以上的畢業生正在完成大學學業。我們預計巴西的新技術學校將在 2025 年第一季度通過初創課程為近 600 名學生提供配備最新學習工具和技術的技術教育。

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

多年來，公司開發了涵蓋從小學到研究生階段的整個學校週期的教育項目，幫助兒童和青少年發揮潛能，成為社會的積極貢獻者。我們相信，只有在我們經營所在的社區與公司一起成長的情況下，Ternium 工業項目才能可持續發展，而教育在這方面和整體上起著關鍵作用。

Let me now make some final comments to close my prepared remarks. Even though there continue to be uncertainty regarding the macro environment during the second half of the year, I am confident Ternium's will have a good performance in 2023. With our latest investments, we have put the company in a strong competitive position, and there is more to come with the upstream and downstream project under development.

現在讓我做一些最後的評論來結束我準備好的發言。儘管下半年宏觀環境仍存在不確定性，但我相信 Ternium 將在 2023 年取得良好表現。通過我們最新的投資，我們使公司處於強大的競爭地位，並且有上游和下游項目正在開發中。

We believe Ternium, we have ample opportunity to grow its business in the following years, and we are ready to take advantage of these opportunities. On the other -- hand, as you have heard us saying many times in the past, we have always been committed to Brazil. This is one of the largest steel markets in Americas, and we believe it will offer many opportunities to grow our business in the future.

我們相信 Ternium，我們有充足的機會在未來幾年發展其業務，我們已準備好利用這些機會。另一方面——正如你過去多次聽到我們所說的那樣，我們一直致力於巴西。這是美洲最大的鋼鐵市場之一，我們相信它將為我們未來的業務發展提供許多機會。

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

在這方面，我們對 Usiminas 對照組的變化感到非常興奮。我相信我們最近與 Nippon Steel 達成的協議將為我們帶來新的一天，為 Usiminas 的成功做出貢獻，使所有 Usiminas 利益相關者受益。

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

好的，Pablo，你現在可以繼續介紹 Ternium 第一季度的表現。

Thanks, Maximo, and good morning to everybody and thank you again, for participating in our conference call. Let's review more in detail Ternium's performance in the first quarter and our guidance for the second quarter.

謝謝 Maximo，大家早上好，再次感謝您參加我們的電話會議。讓我們更詳細地回顧一下 Ternium 第一季度的表現以及我們對第二季度的指導。

We will start on Page 3 of the webcast presentation, with Ternium's EBITDA and net income. As anticipated, EBITDA, EBITDA margin and EBITDA per ton improved sequentially in the first quarter of the year, leading to earnings per ADS of $1.91 in the period.

我們將從網絡直播演示文稿的第 3 頁開始，介紹 Ternium 的 EBITDA 和淨收入。正如預期的那樣，EBITDA、EBITDA 利潤率和每噸 EBITDA 在今年第一季度依次改善，導致該期間每 ADS 收益為 1.91 美元。

Margins in the first quarter approached the company's usual range, mostly as a result of cost deflation as lower price raw material continue flowing through the company's investors. Looking forward, we expect the company's EBITDA to increase in the second quarter of this year on higher shipments and margins. We will analyze this in more detail in the coming slides.

第一季度的利潤率接近公司的正常範圍，這主要是由於較低價格的原材料繼續流經公司投資者而導致的成本通縮。展望未來，我們預計公司今年第二季度的 EBITDA 將因更高的出貨量和利潤率而增加。我們將在接下來的幻燈片中更詳細地分析這一點。

Let's move now to our shipment performance on Page 4. In Mexico, Ternium's steel shipments reached a new all-time high of 2.1 million tons in the first quarter of 2023, as Maximo already explained. Shipments were not only higher than what we had last year, but also they improved 10% sequentially against last quarter of last year, reflecting Ternium increased market share in this dynamic market.

現在讓我們轉到第 4 頁的出貨量表現。正如 Maximo 已經解釋的那樣，在墨西哥，Ternium 的鋼鐵出貨量在 2023 年第一季度達到了 210 萬噸的歷史新高。出貨量不僅高於去年，而且與去年最後一個季度相比連續增長 10%，反映出 Ternium 在這個充滿活力的市場中增加了市場份額。

The sequential volume increase in Mexico in the first quarter was mostly offset by lower volumes in the Southern region and other markets. In the Southern region, shipments decreased 8%, mainly as a result of a seasonally weaker demand in Argentina, which we currently expect will normalize somewhat in the second quarter of 2023.

第一季度墨西哥的連續銷量增長大部分被南部地區和其他市場的銷量下降所抵消。在南部地區，出貨量下降 8%，主要是由於阿根廷的季節性需求疲軟，我們目前預計該需求將在 2023 年第二季度有所恢復。

In our markets, the sequential decrease in steel shipments was mostly due to a lower volume of slabs shipped to third-parties as the company further the integration of its Brazilian slab facility with the downstream facilities in Mexico.

在我們的市場中，鋼材出貨量環比下降主要是由於公司進一步整合其巴西板坯工廠與墨西哥下游工廠，運往第三方的板坯數量減少。

In the next Page, #5, you can see that combining this development, consolidated shipments in the first quarter was 3.1 million tons. Based on that, as already been discussed, we expect consolidated steel shipments to increase in the second quarter of this year, mainly reflecting higher volumes in Mexico and somewhat in the Southern region. Revenue per ton remained relatively stable in the first quarter despite the increase in spot steel prices in the USMCA regions.

在下一頁 #5 中，您可以看到結合這一發展，第一季度的綜合出貨量為 310 萬噸。基於此，正如已經討論過的，我們預計今年第二季度綜合鋼鐵出貨量將增加，主要反映墨西哥和南部地區的銷量增加。儘管USMCA地區現貨鋼材價格上漲，但第一季度每噸收入保持相對穩定。

These were mainly due to the negative effect of lower prices on the contracts in Mexico in this quarter, which reset prices with a lag and by lower realized prices in the Southern region. In the second quarter, contract steel prices are expected to sequentially reset at higher levels. This positive development, coupled with, a healthy spot prices expected to lead to higher consolidated revenue per ton in the second quarter.

這主要是由於本季度墨西哥合同價格較低的負面影響，價格重置滯後，以及南部地區實現價格較低。二季度，鋼材合約價格有望在較高水平上依次重置。這種積極的發展，加上健康的現貨價格，預計將導致第二季度每噸綜合收入增加。

Moving on the next page, let's review now the main drivers we have the sequential changes in EBITDA and net income. The chart on top shows that the improvement in EBITDA in the first quarter was mostly the result of lower cost per ton achievements and revenue per ton, remained relatively unchanged.

轉到下一頁，讓我們現在回顧一下 EBITDA 和淨收入連續變化的主要驅動因素。上圖顯示，第一季度 EBITDA 的改善主要是由於每噸成本和每噸收入的降低，保持相對不變。

The decrease in cost was mainly due to the lower price -- and raw materials acquired during the second half of 2022, but continue flowing through the company's inventories in the first quarter of this year. To a lesser extent, cost per ton also increased as a result of lower energy costs as natural gas price decrease.

成本下降主要是由於價格下降以及 2022 年下半年採購的原材料，但在今年第一季度繼續流經公司的庫存。在較小程度上，由於天然氣價格下降導致能源成本降低，每噸成本也有所增加。

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

展望未來，Ternium 預計調整後的 EBITDA 將在第二季度連續增長，因為每噸的綜合出貨量和收入增加，每噸成本進一步顯示。

The chart on the bottom shows that the sequential increase in net income was driven mainly by higher operating results and to a lesser extent, better income tax results. In the first quarter of this year, tax results include a deferred tax gain and Ternium's Mexican subsidiary in connection with the 7% appreciation of the Mexican peso against the U.S. dollar in the period.

底部的圖表顯示，淨收入的環比增長主要是由更高的經營業績以及較小程度上更好的所得稅結果推動的。在今年第一季度，稅收結果包括遞延所得稅收益和 Ternium 的墨西哥子公司與該期間墨西哥比索兌美元升值 7% 有關。

Let's review now on Page 7, Ternium cash flow performance and balance sheet. Cash flow from operations in the first quarter of the year was $612 million, including a working capital release of $218 million. Looking forward, we expect working capital to increase in the second quarter in sync with higher steel production shipments and prices.

現在讓我們回顧一下第 7 頁，Ternium 現金流量表現和資產負債表。今年第一季度的運營現金流為 6.12 億美元，其中包括釋放的營運資金 2.18 億美元。展望未來，我們預計第二季度營運資金將隨著鋼鐵生產出貨量和價格的上漲而同步增加。

Free cash flow in the first quarter was $414 million after CapEx of close to $200 million. This drove Ternium net cash position to $3 billion by the end of March. The CapEx level is expected to continue increasing in the coming quarters as Ternium advanced its downstream project in Pesqueria and the other projects already announced in North America.

在資本支出接近 2 億美元後，第一季度的自由現金流為 4.14 億美元。到 3 月底，這使 Ternium 的淨現金頭寸達到 30 億美元。隨著 Ternium 推進其在 Pesqueria 的下游項目和已經在北美宣布的其他項目，預計未來幾個季度的資本支出水平將繼續增加。

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

至此，我們結束了準備好的發言。非常感謝您的關注，現在我們可以去回答您可能有的任何問題。接線員，請繼續進行問答環節。

(Operator Instructions) Our first question comes from the line of Caio Greiner from BTG Pactual.

（操作員說明）我們的第一個問題來自 BTG Pactual 的 Caio Greiner。

My first question on your North American operations. So I wanted to explore a little bit more on demand. So the demand condition in North America is still seeing quite strong in the short-term as you have pointed out. So the auto industry remains strong since supply chain restocking. And you guys mentioned that the second quarter's growth is expected to be even stronger volumes-wise?

我的第一個問題是關於你們的北美業務。所以我想按需探索更多。因此，正如您所指出的，北美的需求狀況在短期內仍然相當強勁。因此，自供應鏈補貨以來，汽車行業依然強勁。你們提到第二季度的增長預計會更強勁嗎？

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

所以我只是想多探討一下今年下半年的前景，我們是否應該期望 Ternium 的銷量繼續上升。我的意思是，您是否仍然相信 Ternium 可以在當前水平維持一整年。你們有沒有看到任何壓力點，如果你們正在處理墨西哥市場今年的估計銷量增長，你們可以與我們分享，這也會有所幫助。

And a second question on the Usiminas transaction, I know that you had said that there's very little - there's probably a little that you can share with us at this point. But just wanting feedback if there any initial remarks that you can make in that to marking those comments. So just wondering if you guys can share what are turning plans from the asset from those acquisitions -- are there any priorities in the short and medium term?

關於 Usiminas 交易的第二個問題，我知道你說過很少 - 現在你可能有一些可以與我們分享。但只是希望得到反饋，如果您可以在其中發表任何初步評論來標記這些評論。所以只是想知道你們是否可以從這些收購中分享資產的轉變計劃 - 短期和中期有什麼優先事項嗎？

Are there any lower hanging fruit that you guys -- that could be addressed in the short-term? And maybe also wanted to understand if you could eventually see Ternium further increasing its stake ahead may be even consolidating the assets down the road anything that you can share with us regarding the Usiminas transaction that will be helpful?

你們有什麼可以在短期內解決的更容易實現的成果嗎？也許還想了解你是否最終能看到 Ternium 進一步增加其未來的股份，甚至可能會在未來整合資產，你可以與我們分享關於 Usiminas 交易的任何有用信息嗎？

Thank you very much, Caio. Let me start with the first question and demand. Yes, you're right. We are going to increase probably shipments in the second Q of this year. I think this is mainly because commercial market, as I said, is still in the restocking process in Mexico and in the U.S. also, we are gaining market share and industrial market, it's stable. So I think the second Q is fine.

非常感謝你，卡約。先說第一個問題和需求。你是對的。我們可能會在今年第二季度增加出貨量。我認為這主要是因為正如我所說，商業市場仍在墨西哥和美國的補貨過程中，我們正在獲得市場份額和工業市場，它很穩定。所以我認為第二個Q很好。

What is going to happen in the second half of the year -- perhaps we are still seeing a demand that is robust. We are not seeing the things that can change the demand we are seeing today. There are as I said, some sectors, especially the ones that are affected by housing that they are softened. But in a degree that is not very relevant. And we are seeing other things happening in the market that will probably increase the demand.

今年下半年會發生什麼——也許我們仍然看到強勁的需求。我們沒有看到可以改變我們今天看到的需求的事情。正如我所說，有些行業，尤其是那些受房地產影響的行業，它們已經走軟。但是在某種程度上不是很相關。我們看到市場上發生的其他事情可能會增加需求。

The nearshoring that I'm speaking, you are seeing that everywhere in the North of Mexico. And a part of that, the nearshoring comes from our own customers that are increasing their capacity, so they will consume much more steel and new customers that are coming from the region, they are bringing production probably or mainly from Asia.

我所說的近岸外包，在墨西哥北部隨處可見。其中一部分，近岸外包來自我們自己的客戶，他們正在增加產能，因此他們將消耗更多的鋼鐵和來自該地區的新客戶，他們可能或主要從亞洲帶來生產。

So there is a trend that is going forward, where customers have started to consume industrial customers more still because they are increasing the capacity they have in the region. I think that the only impact or negative impact is more the macroeconomic impact or what is going to happen with this increase -- in the interest rate, and if this tightening will bring a so-called recession in the U.S. I mean, we have been speaking of this for some quarters now.

所以有一種趨勢正在向前發展，客戶已經開始更多地消費工業客戶，因為他們正在增加他們在該地區的產能。我認為唯一的影響或負面影響更多的是宏觀經濟影響或這種增長會發生什麼——利率，如果這種緊縮會在美國帶來所謂的衰退。我的意思是，我們一直在現在在某些方面談到這一點。

And every time we speak, it seems that it is delayed the recession in the U.S. Our customers today are working with outlook that they expect a softening, but they don't expect a huge recession. But nevertheless, I want to emphasize that there is uncertainty and the uncertainty is coming from the increase in the interest rate and how this is going to affect all our industrial customers. As I said, today, we are only seeing some problems or some softening in the household -- in house market, and that's it. But I hope with this, I can give you a little bit of what was the outlook demand, Caio.

每次我們講話時，似乎都在推遲美國的經濟衰退。我們今天的客戶正在處理他們預計會出現疲軟的前景，但他們預計不會出現嚴重衰退。但是，儘管如此，我想強調存在不確定性，不確定性來自利率的上升以及這將如何影響我們所有的工業客戶。正如我所說，今天，我們只看到家庭出現一些問題或出現一些軟化——在房屋市場，僅此而已。但我希望通過這個，我可以告訴你一些關於前景需求的信息，Caio。

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

第二個問題，我想是關於 Usiminas 的，如果我理解得很好的話。

Yes, on the Usiminas transaction so I was just wondering if you can share any initial plan (inaudible) short term, that eventually you see trading further increasing in the company?

是的，關於 Usiminas 交易，所以我只是想知道您是否可以分享任何初始計劃（聽不清）短期，最終您會看到公司的交易進一步增加？

Yes both -- yes it is a very good question, Caio. But as I mentioned in my prepared remarks, I prefer not to elaborate a lot on the future plan for Usiminas before CADE grant its approval to the transaction. I mean, as Ternium, we are committed to the develop, of Usiminas. And I believe and we believe that the agree changes in the control group will benefit Usiminas and all its shareholders.

是的——是的，這是一個很好的問題，Caio。但正如我在準備好的發言中提到的，在 CADE 批准交易之前，我不想詳細說明 Usiminas 的未來計劃。我的意思是，作為 Ternium，我們致力於開發 Usiminas。我相信，我們也相信，控制組的同意變更將使 Usiminas 及其所有股東受益。

On the other side, you know that Brazil is a very important market for Ternium and we have always been committed or excited of having this opportunity. And we will have a lot of work to do. But again, once the CADE approved the transaction. My opinion is that there is a significant potential in Usiminas. And we believe, and our partners also believe that we have the capacity to unlock that potential to be honest.

另一方面，你知道巴西是 Ternium 的一個非常重要的市場，我們一直致力於或很高興有這個機會。我們將有很多工作要做。但同樣，一旦 CADE 批准了交易。我的觀點是 Usiminas 具有巨大的潛力。我們相信，我們的合作夥伴也相信我們有能力釋放這種潛力。

Usiminas has good assets the mining assets, Ipatinga and Cubatao, capable people, and many opportunities to develop. On the other hand, also we have enormous challenge or a big challenge, like the relining of the blast furnace #3, the investments in the coking facilities, further development of the sustainability strategy, analyzing indeed all the mining operations that in the medium term has to do an investment.

Usiminas 擁有良好的資產，即 Ipatinga 和 Cubatao 礦業資產、有能力的人才和許多發展機會。另一方面，我們也面臨著巨大的挑戰或巨大的挑戰，例如 3 號高爐的改造、焦化設施的投資、可持續發展戰略的進一步發展，以及對中期所有採礦作業的分析必須做投資。

And also to improve the competitive situation or competitiveness situation in order to regain some market share that that has lost in the last years. And again, I think that Ternium once the operation is approved, taking -- a leadership position in Usiminas is going to help with all of this. I think that's what I can comment on the subject, Caio.

並且還要改善競爭狀況或競爭力狀況，以重新獲得過去幾年失去的一些市場份額。再一次，我認為 Ternium 一旦手術獲得批准，在 Usiminas 擔任領導職務將有助於解決所有這些問題。 Caio，我想這就是我可以對這個主題發表的評論。

That was very helpful, Maximo. Just if I can follow-up on the previous question? Can you guys share with me --

這很有幫助，馬克西莫。只是我可以跟進上一個問題嗎？你們能和我分享嗎——

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

凱歐，對不起。你能不能靠近麥克風說話，因為它 - 我們聽到的聲音很低。

Okay. Can you hear me better now?

好的。你現在能聽得更清楚了嗎？

Yes, that's perfect.

是的，那太完美了。

Okay. So just, a follow-up on the previous question on the shipment question. Can you maybe share with us your estimate for the volume increase for your Mexican operations for 2023 versus 2022 compare an idea of where you guys are working with in Ternium for the Mexican operation?

好的。那麼，就上一個關於裝運問題的問題進行跟進。您能否與我們分享您對 2023 年與 2022 年墨西哥業務增長量的估計，比較你們在 Ternium 中與墨西哥業務合作的想法？

Well, yes, we have an increase. I think we're going to sustain or increase a little bit the shipments that we have in the first Q. So, we are going to repeat those shipments. Second Q is going to be a little bit higher. And third and 4Q, we are expecting to continue that trend not of increasement, but of maintaining. With that, I think it's a 25% or 20-something percent increase in shipments in year-after-year.

嗯，是的，我們有增加。我認為我們將維持或增加第一季度的出貨量。因此，我們將重複這些出貨量。第二個Q會高一點。第三和第四季度，我們預計將繼續保持這種趨勢，而不是增加，而是維持。這樣一來，我認為出貨量年復一年增長 25% 或 20% 左右。

You have to realize that the hot strip mill is not running almost at full capacity, the new hot strip mill. I mean its running, I think, 88% of capacity. So we don't have a lot of space to increase much more shipments. And we are going through the increase of production in the old mill. So we have some space, but we don't have a lot of space to increase much, much more our shipments.

您必須意識到，熱帶鋼軋機幾乎沒有滿負荷運行，新的熱帶鋼軋機。我的意思是它正在運行，我認為是 88% 的容量。所以我們沒有太多空間來增加更多的出貨量。我們正在經歷老工廠的增產。所以我們有一些空間，但我們沒有太多空間來增加我們的出貨量。

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

我們的下一個問題來自美國銀行的 Caio Ribeiro。

So my first question is on your working capital trends going forward. There was a big working capital release this quarter. So I just wanted to get some more color on what you expect in the coming quarters? And then secondly, on U.S. HRC trends, right, after multiple price hikes since late last year, it seems that prices have somewhat stabilized lately, right, and lead times have started to shorten a bit?

所以我的第一個問題是關於您未來的營運資金趨勢。本季度有大量營運資金釋放。所以我只是想了解一下您對未來幾個季度的期望？其次，關於美國熱軋卷趨勢，對吧，自去年年底以來多次漲價後，最近價格似乎有所穩定，對吧，交貨時間開始縮短了一點？

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

所以我只是想看看您是否可以提供一些顏色來說明您對價格趨勢的預期，尤其是在今年下半年？您認為目前美國熱軋卷的可持續中長期價格是多少？

Thank you very much, Caio. I'll start with the second part, and I leave working capital to Pablo. Price terms, I mean, I didn't change my -- much my mind about what we discussed the last quarter and several quarters before. I think there is a new floor or a new normal of steel prices, and that normally is much higher than what it was before pre-pandemic values. And we see this with the new bottom prices we had last year.

非常感謝你，卡約。我將從第二部分開始，我將營運資金留給 Pablo。價格條款，我的意思是，我沒有改變我對我們上個季度和之前幾個季度討論的內容的看法。我認為鋼鐵價格有一個新底線或新常態，通常比大流行前的價格高得多。我們從去年的新底價中看到了這一點。

And when they arrive at bottom, they started to increase just right after. So I think prices will remain at a stable or a healthy situation for most of the year in my respect. Of course, today, as we discussed, prices increased and probably, as you said, they are stabilizing at this price of hot roll coil. What in the second -- Q2 probably, but I cannot say it particularly, but probably there's going to be some adjustment.

當它們到達底部時，它們立即開始增加。因此，我認為在我看來，今年大部分時間價格將保持穩定或健康的狀態。當然，正如我們所討論的，今天價格上漲了，而且可能正如您所說，它們正在穩定在這個熱軋卷的價格上。第二個——可能是第二季度，但我不能具體說，但可能會有一些調整。

Again my reference of prices in the future are always at the new normal is around $900 or $1,000. That's the new $600 that used to be. On the other side, I mean, the raw material cost also has decreased iron ore, carbon, natural gas, in our case also. So it's normal that for the second quarter, there should be some adjustment. How big is that adjustment? I think it's not going to depend on other factors that what happens with the macroeconomic activity.

同樣，我對未來價格的參考始終處於新常態，即 900 美元或 1,000 美元左右。那是以前的新 600 美元。另一方面，我的意思是，原材料成本也降低了鐵礦石、碳、天然氣，在我們的情況下也是如此。所以對於第二季度來說，應該有一些調整是正常的。調整幅度有多大？我認為這不會取決於宏觀經濟活動發生的其他因素。

And the macroeconomic numbers, if really there is a recession, well, that's going to affect quite a little bit more. If not, I think it's going to be the same that we are looking with the ups and downs, but on a healthy level in the prices. I hope I answered that question, Caio. At least that's my thoughts.

宏觀經濟數據，如果真的出現衰退，那麼影響會大得多。如果不是，我認為這將與我們看到的漲跌相同，但價格處於健康水平。我希望我回答了那個問題，Caio。至少那是我的想法。

Yes, absolutely.

是的，一點沒錯。

Working capital Pablo?

營運資金巴勃羅？

Yes hi Caio. How are you? So going to your question, clearly, what we are seeing now is that with the normal movement of shipments especially that we are expecting to see in the North American market, especially in Mexico. And also the growth -- or the small growth that we are expecting also in the Southern region market, there will be a need for further uses of working capital.

是的，嗨，Caio。你好嗎？因此，很明顯，對於您的問題，我們現在看到的是，隨著出貨量的正常流動，尤其是我們期望在北美市場，尤其是墨西哥市場看到的情況。還有我們在南部地區市場預期的增長或小幅增長，將需要進一步使用營運資金。

But not only that, we are also saying that we are expecting to see some price increases in our pricing comparing the second to the first quarter. So putting all in all, of course, taking into consideration what just Maximo mentioned, that we are seeing some decrease in prices of raw material. We are expecting to see somewhat an increase in the level of working capital utilization, not that significant, because putting all the things together shouldn't be that significant.

但不僅如此，我們還表示，與第一季度相比，我們預計我們的定價會有所上漲。因此，總而言之，當然，考慮到 Maximo 剛才提到的內容，我們看到原材料價格有所下降。我們預計營運資金利用率水平會有所提高，但不會那麼顯著，因為將所有因素放在一起應該不會那麼顯著。

But we will not -- or our expectation now is not to continue what happened -- in the last 3 quarters where we have released and in some cases, like last quarter, in the last quarter of last year, we had a huge release of working capital. Now we think we are entering into a process where we're recovering a little more working capital until prices and volume adjusted to the new level.

但是我們不會——或者我們現在的期望是不會繼續發生的事情——在過去的三個季度裡我們已經發布了，在某些情況下，比如上個季度，在去年的最後一個季度，我們發布了大量的營運資金。現在我們認為我們正在進入一個過程，我們正在恢復更多的營運資金，直到價格和數量調整到新水平。

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

我們的下一個問題來自 Wolfe Research 的 Timna Tanners。

My first question is about the elephant in the room, which is AMSA not running. I wanted to ask a few questions first about that. One is hearing reports that it could restart in Q3, do you think that's reasonable? Hearing Mexico has the best price in the world for steel it's attracting a lot of imports?

我的第一個問題是關於房間裡的大象，即 AMSA 沒有運行。我想先問幾個問題。一個是聽說它可能在第三季度重啟，你認為這合理嗎？聽說墨西哥的鋼鐵價格是世界上最好的，它正在吸引大量進口？

Do you think those imports are sizable or modest? And do you think that -- it sounds like you're saying in the second half, you're going to keep producing irrespective, but I'm just asking about the balance of potentially those imports, AMSA restarting, how you think about that cadence?

您認為這些進口量大還是小？你是否認為 - 聽起來你在下半年說，無論如何你都會繼續生產，但我只是問潛在的這些進口的平衡，AMSA 重新啟動，你是怎麼想的節奏？

It's a very good question, Timna. Thank you very much. I mean, I don't know much of AMSA as probably what you -- everybody is hearing in the press. But I don't know if AMSA is going to restart. And if it restart -- it's going to restart in the third quarter. It's clearly not going to restart at the level they used to be. I mean, as you know, the blast furnace is down. So that will take probably several years to restart a blast furnace.

這是一個非常好的問題，Timna。非常感謝。我的意思是，我對 AMSA 的了解不多，可能就像每個人都在媒體上聽到的那樣。但是不知道AMSA會不會重啟。如果它重新啟動——它將在第三季度重新啟動。它顯然不會以以前的水平重新啟動。我的意思是，如你所知，高爐已經關閉。因此，重啟高爐可能需要幾年時間。

Imports, clearly a big part of the Mexican market, and we are competing with imports, the Mexican and the U.S. market. But you have to understand that most of our customers are -- they are relocating production to the North American market. They are also trying to source more and more from us. So, I do expect a little increase in imports.

進口，顯然是墨西哥市場的很大一部分，我們正在與進口、墨西哥和美國市場競爭。但你必須明白，我們的大多數客戶都是——他們正在將生產轉移到北美市場。他們還試圖從我們這裡獲得越來越多的資源。所以，我確實預計進口會略有增加。

But I don't expect that, that increase is going to affect the ability that we have to ship the program that we have in our programs to be redundant. So that's how I can answer that question, Timna, I hope it's enough.

但我不認為，這種增加會影響我們必須將程序中的程序交付為冗餘程序的能力。這就是我可以回答這個問題的方式，Timna，我希望這就足夠了。

No, that's great. I appreciate, it's a challenging situation. Okay. And then wanted to ask you if you can remind us about Pesqueria's qualification process and how to think about the mix improving there in terms of timing and magnitude if you could?

不，那太好了。我很感激，這是一個具有挑戰性的情況。好的。然後想問你是否可以提醒我們 Pesqueria 的資格認證過程，以及如果可以的話，如何考慮在時間和幅度方面改進那裡的組合？

Well, remember, the Pesqueria, it's going to -- it's starting really to show the qualification process in this quarter. So part of these 500,000 tons, if you compare the first quarter of 2022 to the first quarter of 2023, there is not much change in consumption in Mexico, in steel consumption. In fact, 2022 against 2023, the whole year, I think consumption was flat in the country.

好吧，請記住，Pesqueria，它將 - 它開始真正展示本季度的資格認證過程。因此，這 50 萬噸中的一部分，如果將 2022 年第一季度與 2023 年第一季度進行比較，墨西哥的鋼鐵消費量變化不大。事實上，2022 年與 2023 年相比，我認為全年國內消費持平。

So, we are comparing 2 quarters that has the same market, or the same -- yes, in fact, I'm looking to the -- and now I remember the name, the World Steel take the -- these are all the short-range outlook and the consumption in Mexico decreased by 2.8%, 2022 compared to 2021. So and so there is no -- I mean in 2022, was the same, and it's not going to grow a lot in 2023. So these increases are more inclusive in market share and part of that increases is that after one year in certification, that's the time it takes.

所以，我們正在比較具有相同市場或相同市場的兩個季度——是的，事實上，我正在尋找——現在我記得這個名字，世界鋼鐵——這些都是空頭-範圍展望和墨西哥的消費下降了 2.8%，2022 年與 2021 年相比。某某沒有——我的意思是 2022 年是一樣的，2023 年不會增長很多。所以這些增長是更具包容性的市場份額和增長的部分原因是經過一年的認證，這就是它所需要的時間。

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

我們正在增加我們對工業部門市場份額的出貨量。我們預計在這個資格認證過程的第二季度會有大約 100 噸左右的額外產量。然後，直到明年可能會有小幅增長，屆時將出現下一輪標記——與客戶簽訂年度合同。所以，我們在這個季度有了巨大的增長。

Okay. Great and I was also asking a bit about margin benefits. So maybe along those lines, if you can steer us to where you expect margins I know in the past, sometimes you talked about a normal range of 15% to 20%, suffice to say probably be a little higher than Q1, but it will be on the high-end of that range or any other color would be (inaudible)?

好的。太好了，我還問了一些關於保證金收益的問題。所以也許沿著這些思路，如果你能引導我們達到我過去所知道的預期利潤率，有時你談到了 15% 到 20% 的正常範圍，足以說可能比第一季度高一點，但它會處於該範圍的高端還是任何其他顏色（聽不清）？

Yes, you're right. It's a good -- it's a very good question, Timna, that we usually don't want to answer. You're right. We were in the bottom part, 14% of margin EBITDA in this quarter. Our normal range, we always said is between 15% and 20%. Probably in the next quarter, we are going to be in the upper side of that range. Most likely up -- a little bit up of that.

你是對的。這是一個很好的問題，Timna，我們通常不想回答這個問題。你說得對。我們處於底部，本季度利潤率為 EBITDA 的 14%。我們的正常範圍，我們總是說在 15% 到 20% 之間。可能在下個季度，我們將處於該範圍的上端。最有可能上漲——有一點上漲。

Okay. Great.

好的。偉大的。

I hope that is enough, because we never say that.

我希望這就足夠了，因為我們從不這樣說。

That's enough.

夠了。

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

我們的下一個問題來自 Bradesco BBI 的 Thiago Lofiego。

2 quick questions first one, Maximo, can you comment on your slab integration dynamics for the coming quarters? What should we expect on that? And the second question, can you talk a little bit more about Argentina? What's the outlook for steel demand if you could quantify for 2023 that would be great?

2 個快速問題，第一個，Maximo，你能評論一下你未來幾個季度的平板集成動態嗎？我們應該期待什麼？第二個問題，你能多談談阿根廷嗎？如果可以量化 2023 年的鋼鐵需求前景如何？

Thank you, Thiago. And in slab integration as you say -- as I always said, it's going through -- most of our slabs are going through our own facilities. If you see the numbers of shipments, I think we already ship in this quarter, 60,000 tons of slabs, all the other more than 1 million tons of slabs went to our own consumption either in Argentina, but mainly in Mexico. So the slab integration is almost at 100% today -- that's one point.

謝謝你，蒂亞戈。正如你所說，在平板集成中——就像我一直說的那樣，它正在經歷——我們的大部分平板都在通過我們自己的設施。如果你看到出貨量，我想我們在本季度已經出貨了 60,000 噸板坯，所有其他超過 100 萬噸的板坯用於我們在阿根廷的消費，但主要是在墨西哥。所以現在平板集成幾乎達到了 100%——這是一點。

Argentina, as I said, second Q, we are still seeing demand as in the first quarter. I mean it's a healthy demand for steel consumption. Clearly, that's not what we expect for the rest of the year and we think that with the variation of the GDP of the decrease, all the consultants are putting in the GDP of Argentina, the whole year, probably consumption -- steel consumption in Argentina, it's going to decrease. It's very difficult to say the number, but our expectation is between 2% and 3% today for the whole year, not for the second half, for the whole year.

阿根廷，正如我所說，第二季度，我們仍然看到第一季度的需求。我的意思是這是對鋼鐵消費的健康需求。顯然，這不是我們對今年剩餘時間的預期，我們認為隨著 GDP 下降的變化，所有顧問都將阿根廷的 GDP 投入全年，可能是消費——阿根廷的鋼鐵消費，它會減少。很難說出這個數字，但我們今天的預期是全年 2% 到 3%，而不是下半年，全年。

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

我們的最後一個問題來自 MS 的 Carlos De Alba。

MS is Morgan Stanley, for those that don't know, just a little (inaudible). Just a couple of questions, one is on the cash situation. I mean, you clearly have a very strong balance sheet, $3 billion on net cash, but about -- I think about half of that and I'm not sure if these are on a net cash basis or just the cash basis having -- in Argentina, but about half of this is in Argentina.

MS 是摩根士丹利，對於那些不知道的人，只是一點點（聽不清）。只有幾個問題，一個是關於現金狀況。我的意思是，你顯然擁有非常強大的資產負債表，淨現金為 30 億美元，但大約 - 我認為其中一半，我不確定這些是基於淨現金還是僅基於現金 -在阿根廷，但其中大約一半在阿根廷。

Could you talk about the challenges that you may have, the company may have and other corporates may have in Argentina to use that high level of cash in the country? But maybe you are already investing as much as you possibly can, your assets are in good shape, the economy is not really expanding and the outlooks and short-terms. So you might not be able to invest in growth projects right now at least. So like what options do you have to use potentially that cash outside of Argentina? If you could comment on that, that will be very interesting?

您能否談談您可能遇到的挑戰，公司可能遇到的挑戰，以及其他公司在阿根廷可能遇到的挑戰，以便在該國使用大量現金？但也許你已經盡可能多地投資，你的資產狀況良好，經濟並沒有真正擴張，前景和短期。因此，您可能至少現在無法投資增長項目。那麼，您有哪些選擇可以在阿根廷境外使用這些現金？如果你能對此發表評論，那會很有趣嗎？

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

然後第二個問題是——我知道這在您的整體業務中所佔比例較小，但您在墨西哥確實有一些採礦業務，而且參議院正在對一項採礦法進行潛在修改。如果在向參議院提交該法案時獲得批准，我們會怎麼做，您是否看過並且 - 只是對您的業務可能產生的潛在影響發表評論？

Yes, Carlos, thank you very much for both questions, I start with the second question, you're right, there is a mining, there is new law that went through the house. And now within the senate and probably it will be discussed today, to be honest. We are not seeing a lot of affection in the mind the way it went in the House. The mining as they -- it was on the original. I think it has a huge affection to all the mining operations of Mexico not only ours. But to be honest, there were some discussions very helpful discussions with the Mexican government.

是的，卡洛斯，非常感謝你提出這兩個問題，我從第二個問題開始，你是對的，有採礦業，有新的法律通過了眾議院。老實說，現在參議院內部可能會在今天進行討論。我們沒有像眾議院那樣在腦海中看到很多感情。他們的採礦——它是在原來的。我認為它對墨西哥的所有採礦作業都產生了巨大的影響，而不僅僅是我們的。但老實說，與墨西哥政府進行了一些非常有益的討論。

And I think there has been significant progress in the discussion and then the changes that the House made and the law that the House approved. There are some issues yet to be honest. And I think that both the Senators and the Mexican government understand these things. There has to be mainly with some technical issues with the use of water, so it's very technical position, which. I think the government demands this to be an impediment.

我認為討論已經取得了重大進展，然後是眾議院所做的修改以及眾議院批准的法律。還有一些問題需要誠實。我認為參議員和墨西哥政府都明白這些事情。主要是水的使用存在一些技術問題，所以這是非常技術性的立場。我認為政府要求這是一個障礙。

So I think there is goodwill to change and again there are small changes to be made. So I think that. I don't see a big issue today with how this is going through, cash situation in Argentina, Pablo.

所以我認為有改變的善意，而且還有一些小的改變要做。所以我認為。今天我看不出有什麼大問題，阿根廷的現金狀況，巴勃羅。

Okay. It's a nice question to answer.

好的。這是一個很好回答的問題。

Yes, that's easy.

是的，這很容易。

So well, first of all, you're right on the situation in Argentina it's not easy to think that to get cash out of the country and we have a significant level of cash in our Argentina subsidiary. The first thing that you can do, in fact, we have done just these week is paying dividends. So we have just announced on Monday that the company Ternium Argentina our subsidiary there will pay a dividend of more that $600 million -- in bonds.

好吧，首先，您對阿根廷的情況是正確的，認為從該國提取現金並不容易，而且我們的阿根廷子公司擁有大量現金。你能做的第一件事，事實上，我們這周剛剛做的就是支付紅利。因此，我們週一剛剛宣布，我們在阿根廷的子公司 Ternium Argentina 將支付超過 6 億美元的股息——債券。

So that is one way to get some money out of Argentina and in fact it's the normal way in the company have to do that. And Argentina is a company that traditional pay dividend of course I'd probably we will not have the time to enter into detail. Because Argentina, usually has certain rules that make things much different from a normal country, so it's the process of paying these Argentina takes longer and have different steps to followed.

所以這是從阿根廷獲得一些資金的一種方式，事實上這是公司必須這樣做的正常方式。阿根廷是一家傳統支付股息的公司，當然我可能沒有時間詳細介紹。因為阿根廷通常有某些規則，使事情與正常國家大不相同，所以支付這些阿根廷的過程需要更長的時間，並且要遵循不同的步驟。

But all in all, I think that the most important comment to make. Is that because of this level of cash that we have in Argentina. It was the right moment to utilize a part of the cash. We are having are and yes in different project to take into consideration to distribute that part of that cash to the shareholders. On the rest of the cash, we continue to work in protecting the cash that we have over there against variations of or quotation of the dollar.

但總而言之，我認為這是最重要的評論。這是因為我們在阿根廷擁有這種現金水平嗎？現在是使用部分現金的合適時機。我們正在並且是在不同的項目中考慮將那部分現金分配給股東。對於其餘的現金，我們繼續努力保護我們在那裡的現金免受美元變化或報價的影響。

Because you know that our currency and inflation on currency and our managing currency is the dollar and protect ourselves against the inflation effect that we are also suffering in the country. So that's what we are doing right now. And the company will continue monitoring very closely the situation there and try to react to that. But the best example is what we have just done, which is distribute cash to the shareholders outside, in the case of Ternium.

因為你知道我們的貨幣和貨幣通貨膨脹以及我們管理的貨幣是美元，並且保護我們自己免受我們在該國也遭受的通貨膨脹影響。這就是我們現在正在做的事情。該公司將繼續密切關注那裡的情況，並試圖對此做出反應。但最好的例子是我們剛剛所做的，就是在 Ternium 的情況下向外部股東分配現金。

Of course, we will be receiving this cash as per the -- as 52.5% that we have of our subsidiary in Argentina. So that's what we are doing, and in a complex situation, the one that we are seeing that Argentina goal.

當然，我們將根據我們在阿根廷子公司的 52.5% 收到這筆現金。這就是我們正在做的，在復雜的情況下，我們看到了阿根廷的目標。

Carlos, I hope that clarifies both questions.

卡洛斯，我希望這能澄清這兩個問題。

Yes.

是的。

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

我現在想將電話轉給 Ternium 的首席執行官以作結束語。

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

好的。感謝大家參與並提出非常好的問題。與往常一樣，如果您有任何意見和其他問題，請隨時與我們聯繫。我們將在下一次電話會議中討論所有內容。非常感謝。

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

謝謝你們，女士們，先生們。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。