Ternium SA (TX) 2024 Q1 法說會逐字稿

Hello, and thank you for standing by.

您好，感謝您的支持。

At this time, I would like to welcome everyone to the Ternium first-quarter-2024 results conference call.

此時，我歡迎大家參加 Ternium 2024 年第一季業績電話會議。

(Operator Instructions)

（操作員說明）

I would now like to turn the conference call over to Sebastian Marti.

我現在想將電話會議轉交給塞巴斯蒂安·馬蒂。

Please go ahead.

請繼續。

Good morning, and thank you for joining us today.

早安，感謝您今天加入我們。

My name is Sebastian Marti and I am Ternium's Global IR and Compliance Senior Director.

我叫 Sebastian Marti，是 Ternium 的全球 IR 和合規高級總監。

Ternium released yesterday it's financial results for the first quarter of 2024.

Ternium 昨天發布了 2024 年第一季的財務表現。

This call is complementary to that presentation.

這次電話會議是對該演講的補充。

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.

今天加入我的是 Ternium 執行長 Maximo Vedoya；以及公司財務長 Pablo Brizzio，他將討論 Ternium 的商業環境和表現。

At the conclusion of our prepared remarks, there will be a Q&A session.

在我們準備好的演講結束時，將舉行問答環節。

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.

在開始之前，我想提醒您，本次電話會議包含前瞻性訊息，實際結果可能與明示或暗示的結果有所不同。

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.

可能影響結果的因素包含在我們向美國證券交易委員會提交的文件以及今天網路廣播簡報的第 2 頁。

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.

您也可以在昨天發布的新聞稿中找到與最直接可比較的 IFRS 指標一致的非 IFRS 財務指標的參考資訊。

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

說完，我把電話轉給了維多亞先生。

Thank you, Sebastian.

謝謝你，賽巴斯蒂安。

Good morning to everyone, and thank you very much for participating in today's call.

大家早安，非常感謝您參加今天的電話會議。

Ternium began 2024 with strong performance and a healthy cash flow generation.

2024 年伊始，Ternium 就取得了強勁的業績和健康的現金流。

We delivered good results across all regions despite some macroeconomic challenges in some of them as we will discuss later on.

儘管其中一些地區面臨宏觀經濟挑戰，我們在所有地區都取得了良好的業績，我們將在稍後討論。

Our adjusted EBITDA margin reached a recurring level of 17% driven by higher steel crisis and cost efficiency.

在鋼鐵危機加劇和成本效率提高的推動下，我們的調整後 EBITDA 利潤率達到了 17% 的經常性水準。

We also continue showing a strong financial position increasing our net cash to $2 billion as of the end of March.

我們也持續展現出強勁的財務狀況，截至 3 月底，我們的淨現金增加至 20 億美元。

Our operation in Mexico, our main market, continue to show a positive performance.

我們在主要市場墨西哥的業務繼續表現出積極的表現。

Nearshoring in North America is intensifying as more manufacturing capacity relocate or expand in the region, driven by advantages of geographical proximity, lower logistic costs and shorter lead times.

在地理鄰近、較低的物流成本和較短的交貨時間等優勢的推動下，隨著更多的製造能力在該地區遷移或擴張，北美的近岸外包正在加劇。

This strength in particular favor for our company, as we have a strong presence and a diversified product portfolio in this market.

這種優勢對我們公司特別有利，因為我們在這個市場上擁有強大的影響力和多元化的產品組合。

Demand from the industrial sector grew in the first quarter compared to both the previous quarter and the same period last year.

第一季工業部門的需求較上一季及去年同期均成長。

The auto industry looks especially healthy with good production levels and expectations of reaching 4 million units in 2024, which would be a new record.

汽車產業看起來尤其健康，生產水準良好，預計 2024 年產量將達到 400 萬輛，創下新紀錄。

On the other hand, the home appliances and electric motor industries face some demand headwinds.

另一方面，家電和電機產業面臨一些需求阻力。

Finally, the commercial market is resuming activity after restocking phase in the first quarter triggered by a downturn in steel benchmark prices in North America.

最後，在北美鋼鐵基準價格下跌引發的第一季補庫存階段之後，商業市場正在恢復活動。

Due to these positive trends, we are expecting to see a sequential increase in shipments in the second quarter of the year.

由於這些積極的趨勢，我們預計今年第二季的出貨量將較上季成長。

Another positive development is a recent implementation of a new input tariff by the Mexican government to prevent unfair competition in the local market.

另一個積極的進展是墨西哥政府最近實施了新的投入關稅，以防止當地市場的不公平競爭。

Over 500 products across various industries adjust to duties ranging from 20% to 35%.

各行業的 500 多種產品調整了 20% 至 35% 的關稅。

These target import from country that have no trade agreement with Mexico such as China, and aim to level the playing field for local producer.

這些產品的目標是從中國等與墨西哥沒有貿易協定的國家進口，旨在為當地生產商提供公平的競爭環境。

I believe this is an important development that set a positive example to other countries in the region.

我相信這是一項重要進展，為本地區其他國家樹立了正面榜樣。

Moving to Brazil, steel consumption started 2024 on a positive note, showing a slight improvement over the previous year.

再來看巴西，2024 年鋼鐵消費開局呈現正態勢，較前一年略有改善。

The construction sector is slowly picking up driven by lower interest rates, improved consumer confidence and infrastructure project.

在利率下降、消費者信心改善和基礎設施項目的推動下，建築業正在緩慢復甦。

In the auto industry, the latest production forecast point to a 6% increase in this year.

在汽車產業，最新的產量預測今年將成長6%。

With a medium term view, this should benefit Usiminas activity as it is the largest supplier of steel to the automobile industry in Brazil.

從中期來看，這應該有利於烏西米納斯的活動，因為它是巴西汽車業最大的鋼鐵供應商。

Usiminas has a competitive edge in terms of quality, service and logistics, as it operates two mill strategically located in the southern region of Brazil, close to the main auto clusters.

Usiminas 在品質、服務和物流方面具有競爭優勢，因為它經營兩家工廠，地理位置優越，位於巴西南部地區，靠近主要汽車集群。

On the other hand, the Brazilian steel industry faces a significant challenge from the surge of import in it's steel market under unfair trade conditions, increasing by 16% in the first quarter compared to last year.

另一方面，巴西鋼鐵業面臨不公平貿易條件下鋼鐵市場進口激增的重大挑戰，第一季年增16%。

Most of these inputs are coming from China.

這些投入大部分來自中國。

To address this challenge, Brazil's executive management committee recently decided to raise import tariffs to 25% for several steel products that support a certain order level.

為了應對這項挑戰，巴西執行管理委員會最近決定將幾種支持一定訂單水準的鋼鐵產品的進口關稅提高至25%。

This is expected to take effect in 30 days once officially published, and to be valid for 12 months.

該公告預計將在正式發布後30天內生效，有效期為12個月。

This measure is perhaps less comprehensive than what other countries in the region have implemented, but we consider it.

這項措施可能不如該地區其他國家所實施的全面，但我們會考慮。

It is a first step in the right direction.

這是朝著正確方向邁出的第一步。

Together with the recovery of it's domestic market, Usiminas has been focused or restoring it's operational efficiency, following the restart of its main blast furnace in the last quarter of 2023.

隨著國內市場的復甦，烏西米納斯在 2023 年最後一個季度重啟主高爐後，致力於恢復營運效率。

This furnace is now operating and at the expected level for this stage, resulting in lower steel production costs than in the previous quarters.

該爐現已投入運作並達到現階段的預期水平，導致鋼鐵生產成本低於前幾季。

Despite the challenges that Usiminas faces, it is determined to improve it's operational efficiency by applying benchmarking and implementing best practice in various areas across the company.

儘管 Usiminas 面臨挑戰，但它決心透過在公司各個領域應用基準測試和實施最佳實踐來提高營運效率。

Usiminas' new management has shown remarkable leadership and competence since they took office less than a year ago.

烏西米納斯的新管理層自上任不到一年以來就展現了卓越的領導力和能力。

However, we must be realistic and acknowledge that this is a gradual process.

然而，我們必須現實並承認這是一個漸進的過程。

I am confident that Usiminas will achieve it's goal and overcome it's difficulties.

我相信烏西米納斯一定能達成目標，克服困難。

Usiminas has also announced a decarbonization goal, which is to reduce Scope 1 and 2 emissions intensity rate by 15% by 2030, relative to 2019 baseline following the world steel methodology.

Usiminas也宣布了脫碳目標，即到2030年，相對於依照世界鋼鐵方法論的2019年基準，將範圍1和範圍2的排放強度率降低15%。

This goal reflects its commitment to global effort to mitigate climate change and to the sustainable development of the steel industry.

這一目標體現了其對全球減緩氣候變遷努力和鋼鐵業永續發展的承諾。

During 2024, we will work on formulating a consolidated decarbonization roadmap with Usiminas.

2024年，我們將與Usiminas共同製定統一的脫碳路線圖。

Turning now to Argentina.

現在轉向阿根廷。

Shipments declined sharply in the first quarter, reflecting the negative short-term impact of the government's economic stabilization measures on the construction and industrial sectors.

第一季出貨量大幅下降，反映出政府穩定經濟措施對建築和工業部門的短期負面影響。

Argentina's medium-term outlook still remain uncertain, but we anticipate a gradual recovery in steel shipment as the economy adjust to the new policy framework and inflation moderates.

阿根廷的中期前景仍不明朗，但我們預計，隨著經濟適應新的政策框架和通膨放緩，鋼鐵出貨量將逐步復甦。

In the second quarter, we expect the agribusiness and the energy and mining sector to lead these recovery.

在第二季度，我們預計農業綜合企業以及能源和採礦業將引領復甦。

We remain confident in the long-term potential of Argentina, a country that has abundant natural resources, a diversified industrial base, and a highly skilled workforce.

我們對阿根廷的長期潛力充滿信心，阿根廷擁有豐富的自然資源、多元化的工業基礎和高技能的勞動力。

If the government succeeds in stabilizing the macroeconomic situation and deregulating the economy, Argentina will offer many opportunities for growth and development in various sectors that are relevant for our operation.

如果政府成功穩定宏觀經濟情勢並放鬆經濟管制，阿根廷將為與我們營運相關的各個產業提供許多成長和發展的機會。

Before I conclude my remarks, I would like to highlight some key aspects of our strategy and performance that will shape our future in the next few years.

在結束演講之前，我想強調我們策略和業績的一些關鍵方面，這些方面將塑造我們未來幾年的未來。

A crucial part of our strategic plan is to deliver our upstream and downstream projects at our industrial center impact carrier on time and within budget.

我們戰略計劃的一個重要部分是在我們的工業中心影響載體上按時、在預算範圍內交付我們的上游和下游項目。

We are making good progress in building a significant increase in value-added capacity from peaking to galvanizing and customizing.

我們在從峰值到鍍鋅和定制的增值能力大幅提升方面取得了良好進展。

The first stage of this project will come to function in 2024 with a peaking line and the first line in our customized process in the second half of the year.

該專案一期將於2024年投產，下半年將建成達峰線和我們客製化流程的第一條線。

Moreover, the new slab making mill will complement an integration process that was started more than a decade ago with the construction of the cold wall and galvanized line at Pesquería, our first greenfield facility in Mexico.

此外，新的板坯製造廠將補充十多年前在佩斯克拉（我們在墨西哥的第一個新建工廠）建造冷牆和鍍鋅生產線時開始的一體化流程。

The new facility will be capable of producing the whole range of automotive grade steel with the lowest carbon emission level in the Americas.

新工廠將能夠生產美洲碳排放水平最低的全系列汽車級鋼材。

These projects are vital for our long-term success in the region, as they will allow us to benefit from the nearshoring of manufacturing capacity, advanced our CO2 emissions roadmap and reinforce our strong competitive position to replace imports in the Mexican steel market.

這些項目對於我們在該地區的長期成功至關重要，因為它們將使我們能夠從近岸製造能力中受益，推進我們的二氧化碳排放路線圖，並增強我們在墨西哥鋼鐵市場替代進口的強大競爭地位。

Another key aspect or key element of our strategy for the coming years is to unlock the full potential for Usiminas.

我們未來幾年策略的另一個關鍵面向或關鍵要素是釋放烏西米納斯的全部潛力。

We believe that Usiminas has a great opportunity to enhance its profitability in the long run.

我們相信，從長遠來看，Usiminas 有很大的機會提高其獲利能力。

It will require a steady and consistent effort and we will stand by Usiminas management to help them achieve this goal.

這需要穩定而持續的努力，我們將支持烏西米納斯管理層幫助他們實現這一目標。

Okay, Pablo, please give us an overview of Ternium performance in the first quarter.

好的，Pablo，請給我們介紹一下 Ternium 第一季的表現。

Thanks, Maximo, and good morning to everyone.

謝謝馬克西莫，祝大家早安。

Before we start, I would like to let you know that Ternium has redefined it's operational segments to reflect the integration of Usiminas operations.

在開始之前，我想告訴您，Ternium 已重新定義其營運部門，以反映 Usiminas 營運的整合。

The new segment are field of mine.

新的部分是我的領域。

It's the segment that includes the sales of steel and other products.

該部門包括鋼鐵和其他產品的銷售。

Meanwhile, the mining segment includes the sales of iron ore produced both, in Brazil and in Mexico.

同時，採礦部門包括銷售巴西和墨西哥生產的鐵礦石。

Now, let's review our company's operational and financial results on the webcast presentation for a more detailed picture of our performance.

現在，讓我們在網路廣播演示中回顧我們公司的營運和財務業績，以更詳細地了解我們的業績。

Let's begin with page number 3.

我們從第 3 頁開始。

Ternium's has demonstrated robust performance during in the first quarter of this year marked by robust margins and sustained high steel sales volume.

Ternium 在今年第一季展現了強勁的業績，其特點是強勁的利潤率和持續的高鋼材銷量。

Adjusted EBITDA for the first quarter was $855 million, up 31% from the prior quarter, representing a higher adjusted EBITDA margin that reached 17%.

第一季調整後 EBITDA 為 8.55 億美元，季增 31%，調整後 EBITDA 利潤率更高，達 17%。

The positive operating performance was a result of improved pricing, reduced cost and $56 million gain related to readjustment of electricity transmission cost in Mexico.

積極的經營業績得益於定價改善、成本降低以及與墨西哥輸電成本調整相關的 5,600 萬美元收益。

Looking forward to the second quarter of this year, Ternium anticipates a decline in recovering adjusted EBITDA.

展望今年第二季度，Ternium 預計恢復性調整後 EBITDA 將下降。

This is mainly due to a decrease in EBITDA margin, partially offset by increased shipments.

這主要是由於 EBITDA 利潤率下降，但部分被出貨量增加所抵銷。

The decrease in EBITDA margin results mainly from an expected decline in revenue per tonne within the steel segment across most of Ternium's markets.

EBITDA 利潤率的下降主要是由於 Ternium 大部分市場的鋼鐵部門每噸收入預計下降。

Moving on to results, both net income and earnings per ADS demonstrated significant strength during the first quarter due to a strong operating performance partially offset by losses associated with effective result under divestment of certain assets and sovereign bonds holdings.

說到業績，第一季淨利和每美國存託股收益都表現出強勁的實力，因為強勁的經營業績被剝離某些資產和主權債券持有的有效業績所部分抵銷。

We will go deeper into these results later in the presentation.

我們將在稍後的演示中深入探討這些結果。

Let's shift our focus to the performance of our field segment.

讓我們將注意力轉移到我們的現場部分的表現。

On page 4, in Mexico, Ternium steel shipments remained strong during the period.

第 4 頁顯示，墨西哥的 Ternium 鋼鐵出貨量在此期間保持強勁。

Volume experienced slight decrease sequentially.

成交量較上季略有下降。

This decline is attributed to a transitory de-stocking in Mexico commercial steel market.

這一下降歸因於墨西哥商業鋼鐵市場的暫時去庫存。

However, it was largely mitigated by strong demand from industrial customers.

然而，工業客戶的強勁需求在很大程度上緩解了這種情況。

Looking forward, Ternium steel shipments in Mexico are expected to increase in the second quarter.

展望未來，預計第二季墨西哥Ternium鋼鐵出貨量將增加。

As Jim mentioned, Brazil was stable sequentially.

正如吉姆所提到的，巴西連續穩定。

The year-over-year increase reflects the consolidation of Usiminas around the third quarter of last year.

同比成長反映了去年第三季 Usiminas 的整合。

In the following region, shipments experienced significant decline in the first quarter of 2024, attributed to the reduced activity level of Argentina and in stocking process in the steel value chain due to the negative short-term effects of the government economic stabilization measures.

在以下地區，2024年第一季出貨量大幅下降，原因是阿根廷的活動水準下降，以及政府經濟穩定措施的短期負面影響導致鋼鐵價值鏈的庫存過程減少。

The outlook for Argentina remain uncertain, yet Ternium anticipated gradual recovery in its local shipments starting in the second quarter of this year.

阿根廷的前景仍不確定，但 Ternium 預計從今年第二季開始，當地出貨量將逐步復甦。

Let's now zoom in the steel segment profitability on the next page.

現在讓我們放大下一頁的鋼鐵部門獲利能力。

Focusing on the upper left chart, steel products sales decreased in the first quarter mainly as a result of a lower shipment.

關注左上圖，第一季鋼材銷售下降主要是因為出貨量下降。

Our steel revenue per tonne's saw slight sequential increase of 2%.

我們的每噸鋼材收入較上季小幅成長 2%。

In Mexico, legalized steel prices increased by 8%, reflecting the lack of industrial contract prices at higher levels.

在墨西哥，合法鋼材價格上漲了8%，反映出較高水準的工業合約價格的缺乏。

On the other hand, with market conditions in Argentina, it led to a 6% sequential decline given realized steel price in the southern region.

另一方面，受阿根廷市場狀況影響，南部地區鋼材實際價格較上月下降6%。

Looking ahead, we expect lower realized steel prices in the upcoming quarter with decreases in most of the new markets.

展望未來，我們預期下一季鋼材實際價格將下降，大部分新市場價格都會下跌。

In the top right chart, we have included two measures of profitability of steel segments, cash operating income per tonne and cash operating income margin.

在右上角的圖表中，我們納入了鋼鐵業獲利能力的兩個衡量標準：每噸現金營業收入和現金營業利潤率。

Cash operating income equals operating income adjusted to depreciation and amortization as well as other certain non-cash items.

現金營業收入等於調整折舊和攤提以及其他某些非現金項目的營業收入。

You can find a detailed reconciliation of these non-GAAP measures at the end of the quarter results press release issued yesterday.

您可以在昨天發布的季度末業績新聞稿中找到這些非公認會計原則措施的詳細調節表。

Cash operating income per tonne, a margin for the steel segment, was strong in the first quarter.

第一季度，鋼鐵業的每噸現金營業收入表現強勁。

This was driven by lower cost of purchase slabs and raw material alongwith improved operating efficiencies of Usiminas steel facilities in Ipatinga.

這是由於購買板坯和原材料的成本降低以及伊帕廷加烏西米納斯鋼鐵廠運營效率的提高所推動的。

Furthermore, the previously mentioned gain related to a readjustment of electricity transmission charges in Mexico has a positive impact on the cost of sales for the period.

此外，前面提到的與墨西哥輸電費用調整相關的收益對該期間的銷售成本產生了積極影響。

Now, let's turn our attention to page 6 where we will examine the performance of the mining segment.

現在，讓我們將注意力轉向第 6 頁，我們將在其中檢查採礦部分的表現。

In the top-left chart, we observe that net sales for the mining segment decreased sequentially as a consequence of the review shipments and lower iron ore prices during the period.

在左上圖中，我們觀察到，由於審查出貨量和鐵礦石價格下跌，採礦部門的淨銷售額連續下降。

It was primarily due to decreased iron ore production levels in the field as anticipated.

這主要是由於該領域的鐵礦石產量水準如預期下降。

We are in profitability.

我們處於獲利狀態。

The mining segment cash operating income per tonne as mentioned in the first quarter showed attractive levels, although they were lower sequentially, mainly due to a decrease in revenue per tonne.

第一季提到的採礦業務每噸現金營業收入顯示出有吸引力的水平，儘管環比下降，主要是由於每噸收入下降。

Now, let's go through the adjusted EBITDA and net income on page 7.

現在，我們來看看第 7 頁的調整後 EBITDA 和淨利潤。

As previously commented, in the top chart, the main drivers behind the sequential increase in adjusted EBITDA were a significant reduction in the cost and increase in the state revenue per tonne and the gain related to the readjustment of the electricity already mentioned.

如同先前所評論的，在上圖中，調整後 EBITDA 連續成長的主要驅動力是成本的大幅降低和每噸國家收入的增加，以及與已經提到的電力調整相關的收益。

These were partially offset by a lower contribution from the mining segment.

這些被採礦部門的較低貢獻部分抵消。

The chart at the bottom, net income in the first quarter reflected a sequential increase in operating income.

底部圖表顯示，第一季淨利潤反映了營業收入的環比成長。

Foreign exchange losses due to fluctuation of the Mexican peso and the Brazilian real compared to FX gains in the prior quarters and better referred tax results which caused an unusual low effective tax rate in this quarter.

與前幾季的外匯收益相比，墨西哥比索和巴西雷亞爾的波動導致外匯損失，以及更好的參考稅收結果，導致本季有效稅率異常低。

Now, let's move on to the next slide to assess our cash flow performance.

現在，讓我們轉到下一張投影片來評估我們的現金流表現。

Cash flow from operation was healthy despite the $266 million increase in working capital related to an increase in inventories and in trade and other receivables during the first quarter.

儘管第一季庫存、貿易及其他應收款增加導致營運資金增加 2.66 億美元，但營運現金流仍保持健康。

Capital expenditure increased sequentially in the first quarter, primarily due to the completion of the relaying of the main blast furnace in Ipatinga, Brazil, and a reduction in the advance payment to equipment manufacturing related to the construction of the new facility at the industrial center in Pesquería.

一季度資本支出環比增長，主要是由於巴西伊帕廷加主高爐接力完成，以及巴西工業中心新設施建設相關設備製造預付款減少。

Finally, we continue to have a very solid financial position with net cash that showed a slight increase in the quarter, mainly related to evaluation of turning Argentine holdings of Argentine sovereign bonds.

最後，我們繼續擁有非常穩健的財務狀況，淨現金在本季度略有增加，這主要與阿根廷主權債券持有量的評估有關。

Okay.

好的。

With this, we have finished with our prepared remarks.

至此，我們準備好的發言就結束了。

Thank you very much for your attention and time.

非常感謝您的關注和時間。

And now, we can open to any questions that you may have.

現在，我們可以回答您可能提出的任何問題。

Operator, please, let's begin with the Q&A session.

接線員，請讓我們開始問答環節。

(Operator Instructions) Carlos de Alba.

（操作員指示）卡洛斯·德阿爾巴。

Yeah.

是的。

Good morning, gentlemen.

早安，先生們。

The first question is just a clarification on the $56 million gain related to the readjustment of electricity transmission charges in Mexico.

第一個問題只是澄清墨西哥輸電費調整帶來的5,600萬美元收益。

Maybe I don't know if Pablo or Maximo, can you provide some color?

也許我不知道Pablo還是Maximo，你能提供一些顏色嗎？

Is this something that you overpaid in the past?

這是您過去多付的錢嗎？

So you pay more than what you should have, and now it's just being reversed back, and therefore you kept it as an operational item in your reports?

所以你支付的費用超出了你應該支付的費用，現在它只是被沖回，因此你將其作為營運項目保留在你的報告中？

Hi, Carlos.

嗨，卡洛斯。

How are you?

你好嗎？

Basically, this was a change that the authorities in Mexico introduced some years ago.

基本上，這是墨西哥當局幾年前推出的改變。

But we have -- of course we did not agree with it.

但我們當然不同意它。

We have a provision on that, and then we went to court in order to challenge that.

我們對此有一項規定，然後我們上法庭對此提出質疑。

Finally, we were successful in that.

最後，我們成功了。

So on this final, by now, so we have reversed 100% of the provision that we have, and these should not be included anymore in our numbers.

因此，在這次決賽中，到目前為止，我們已經 100% 撤銷了現有的規定，這些不應該再包含在我們的數字中。

All right.

好的。

Okay, that's clear.

好的，很清楚了。

And then, on Argentina, two questions.

然後，關於阿根廷，有兩個問題。

One is, I heard that you said that you expect a gradual recovery in volumes.

一是，我聽說您說預計銷量會逐漸恢復。

There was a very sharp decline quarter on quarter in the first quarter, so can you maybe provide a bit more color as to how to interpret a gradual recovery?

第一季環比下降非常劇烈，所以您能否提供更多資訊來解釋如何解釋逐步復甦？

And the other part of the question is on the Argentine bond holdings that the company still has.

問題的另一部分是該公司仍然持有的阿根廷債券。

You sold some in the first quarter, but you highlighted in the release that there is still around $240 million on negative comprehensive income in connection to the bonds that you still hold.

您在第一季出售了一些債券，但您在新聞稿中強調，您仍然持有的債券仍有大約 2.4 億美元的負綜合收益。

What is the expectation there?

那裡的期望是什麼？

Are you planning on potentially selling those bonds?

您是否計劃出售這些債券？

Or what is the idea?

或者說這個想法是什麼？

Thank you.

謝謝。

Yeah.

是的。

Hi, Carlos.

嗨，卡洛斯。

How are you?

你好嗎？

I would take the first one.

我會選擇第一個。

Argentina, I mean, there is still a lot of uncertainty in Argentina.

阿根廷，我的意思是，阿根廷仍然存在許多不確定性。

So I don't want to give you an exact number and whatever number, you have to know that it can change because of the situation.

所以我不想給你一個確切的數字，無論什麼數字，你都必須知道它可能會因為情況而改變。

But as I said in my initial remarks, we think that the past is the correct and Argentina is doing what is necessary to do.

但正如我在最初的發言中所說，我們認為過去是正確的，阿根廷正在做必要的事情。

The first quarter, as you saw in the graphic, was a huge decline.

正如您在圖中看到的那樣，第一季出現了巨大的下降。

I think it was more of a 40% decline.

我認為下降了 40% 以上。

If I have to say a number of the second quarter will be a decline, about 20% of the year before, not of this quarter.

如果非要說第二季的數字會下降的話，大約是前年的20%，而不是這個季度。

And that should give us an increase of 25% or something like that quarter against quarter.

這應該會為我們帶來 25% 的成長，或類似於該季度的成長。

So those are the numbers we are seeing today.

這些就是我們今天看到的數字。

So there is a recovery and that is the number we expect, but it shouldn't be a fixed number.

所以會出現復甦，這是我們期望的數字，但它不應該是固定的數字。

As you know, develops in Argentina usually occur very quickly.

如您所知，阿根廷的發展通常發生得非常快。

I hope I answer the question with that.

我希望我能以此來回答這個問題。

Yes, it was very clear.

是的，這很清楚。

Thank you very much.

非常感謝。

And I will not call you to it.

我不會叫你這麼做。

Thank you.

謝謝。

Pablo, the second one?

巴勃羅，第二個嗎？

Okay.

好的。

That is quite complex to explain but let me try to be as simple as possible.

解釋起來相當複雜，但讓我盡可能簡單地解釋一下。

What we have done in the first quarter was that the company in selling all the bonds that we receive as civilian payment from Argentina into the holding company, and all the bonds that the government put in place in order to pay the suppliers that were not paid by the former government, it occurred during the first quarter.

我們在第一季所做的就是，公司將我們從阿根廷收到的所有作為民間付款的債券出售給控股公司，以及政府為支付未付款的供應商而發行的所有債券前政府的做法是在第一季發生的。

So at this point, we needed to reflect the loss that the value of these bonds that have a nominal value, and then the real value in dollars, going through the financial results of the company.

因此，在這一點上，我們需要反映這些具有名義價值的債券的價值的損失，然後反映以美元計算的實際價值，透過公司的財務表現。

The results we're really in reserve.

結果我們確實有保留。

So at the balance sheet level there was no change, but these need to be moved from that reserve to the financial results.

因此，在資產負債表層面沒有變化，但這些需要從儲備金轉移到財務績效。

On the other side, we have finalized with this.

另一方面，我們已經敲定了這一點。

So you will see not any other impact of this in the coming quarter.

因此，您在下個季度不會看到此問題的任何其他影響。

This was not related to the holding that we have in Argentina as cash in hand.

這與我們在阿根廷持有的現金無關。

This was related to bonds that the government issued to pay back suppliers on bonds that we have related to the dividend paid last year from Argentina.

這與政府發行用於償還供應商債券有關，這些債券與我們去年從阿根廷支付的股息有關。

So it was a significant impact during the quarter, but it is finalized.

因此，這在本季度產生了重大影響，但已最終確定。

So no impact in relationship to that will be seen in the coming quarters.

因此，未來幾季不會出現與此相關的影響。

I don't know if everything is clear because as I said, it is not an easy issue to explain.

我不知道一切是否都清楚了，因為正如我所說，這不是一個容易解釋的問題。

No.

不。

That's clear, I think.

我想這很清楚。

But so, do you still then have a loss position in the bonds that you still hold off around $240 million, and it's already recorded in comprehensive income, right?

但是，那麼，您仍然持有約 2.4 億美元的債券，是否仍有虧損頭寸，並且已經計入綜合收益，對吧？

Exactly.

確切地。

That is comprehensive income.

也就是綜合收入。

And as you you've seen, that reserve was reduced from $400 million or $450 million to $250 million, and that will depend on the valuation of the bonds that we have in hand.

正如您所看到的，該準備金從 4 億美元或 4.5 億美元減少到 2.5 億美元，這將取決於我們手頭債券的估值。

So if there is a further revaluation of the bonds, that reserve will be reduced.

因此，如果債券進一步重估，該準備金將會減少。

But again, these reserves will not be reflective of the moment, these reserve will not be reflected in the financial result up to the moment that we had to do something with that bonds.

但同樣，這些準備金不會反映當前情況，這些準備金不會反映在我們必須對這些債券採取行動之前的財務結果中。

Got it.

知道了。

Thank you very much.

非常感謝。

You're welcome.

不客氣。

Thank you, Carlos.

謝謝你，卡洛斯。

Caio Ribeiro, Bank of America.

卡約·裡貝羅，美國銀行。

Yes, good morning.

是的，早安。

Thanks for the opportunity.

感謝您提供的機會。

So my first question is on the recently announced quotas, import tariffs for steel products in Brazil.

我的第一個問題是關於巴西最近宣布的鋼鐵產品配額和進口關稅。

And you know, I know that you commented on them in your initial remarks but I just wanted to explore it a bit further.

你知道，我知道你在最初的評論中對它們進行了評論，但我只是想進一步探討。

And whether you think that the measures that were already announced are sufficient enough to quell the pressure from imports that we've been seeing over the past year, and perhaps and also generate an opportunity for price hikes to recompose profitability in Brazil in the short-term, so over the next few months.

您是否認為已經宣布的措施足以平息我們在過去一年中看到的進口壓力，或許還能為巴西短期內提價重組盈利能力創造機會？

So how do you see that playing out?

那麼您如何看待這種情況呢？

And then secondly, you mentioned in your press release, right, that there was an unexpected outage at one of your blast furnaces in Brazil.

其次，您在新聞稿中提到，您在巴西的一座高爐發生了意外停電。

So I just wanted to see if you can share some more details on that?

所以我只是想看看你是否可以分享更多細節？

What the timing is on resolving this issue?

解決這個問題的時機是什麼？

And whether you can share any expected impacts on costs as well.

您是否也可以分享對成本的任何預期影響。

Thank you.

謝謝。

Thank you, Caio.

謝謝你，凱奧。

I will take both questions.

我將回答這兩個問題。

The announcement of the measures in Brazil, as I said in my initial remarks, I think that the measurements are our first step in the right direction.

正如我在最初的演講中所說，巴西宣布這些措施，我認為這些措施是我們朝著正確方向邁出的第一步。

Will these measures be enough to combat unfair trade practices, mainly from China?

這些措施是否足以打擊主要來自中國的不公平貿易行為？

I am not sure.

我不知道。

I think that a little bit more is needed.

我認為還需要多一點。

I mean, as you know, we -- I don't have the exact description of how this is going to be implemented.

我的意思是，正如你所知，我們——我沒有關於如何實施的確切描述。

As you know, it was made public in a conference call but I don't have yet the details of how it's going to be implemented.

如您所知，它是在電話會議中公開的，但我還不清楚如何實施的細節。

But as I saw it, the numbers or the quota that is allowed to be imported in some of the products, it's still an important quota, so I don't know if it's going to have an impact in prices.

但據我所知，某些產品允許進口的數量或配額，它仍然是一個重要的配額，所以我不知道它是否會對價格產生影響。

But again, as I said, I think it's a good first step, and we should continue working as other governments are working.

但正如我所說，我認為這是好的第一步，我們應該像其他政府一樣繼續努力。

I know, these measures are being made in the US, in Mexico, in Europe, in Turkey, a lot of countries are taking these measurements because of what is happening in China.

我知道，美國、墨西哥、歐洲、土耳其正在採取這些措施，由於中國發生的事情，許多國家正在採取這些措施。

As you realized, last month was one of the highest exports of the history of China in steel products, more than 10 million tons in one single month.

如您所知，上個月是中國歷史上鋼材出口量最高的月份之一，單月出口量超過1000萬噸。

So China is dumping it's steel everywhere now, and most of the countries are shutting down that unfair trade imports.

因此，中國現在正在到處傾銷其鋼鐵，大多數國家正在停止這種不公平的貿易進口。

So it's not enough but it's a good first step.

所以這還不夠，但這是一個很好的第一步。

I hope I answered that question with this, the first question, Caio.

我希望我用第一個問題回答了這個問題，Caio。

Yes, absolutely.

是的，一點沒錯。

Very clear.

非常清楚。

Thank you.

謝謝。

Perfect.

完美的。

The blast furnace, this blast furnace is number one in Ternium Brazil facility in Rio.

高爐，這座高爐是位於裡約熱內盧的 Ternium 巴西工廠的第一號高爐。

It experienced which is a temporary disruption due to some unexpected outage in the last days of the first quarter.

由於第一季最後幾天的一些意外中斷，它經歷了暫時的中斷。

I think it was on March 28 or March 29.

我記得是3月28日或3月29日。

And we are now -- the blast furnace is now undergoing a restart process, so there's a huge -- when a blast furnace cold a little bit, you have a long process for the restorage or the restart process, and we are now in that restart process.

我們現在 - 高爐正在經歷重啟過程，所以有一個巨大的 - 當高爐稍微冷一點時，你有一個漫長的恢復或重啟過程，我們現在正處於這個過程中重新啟動進程。

Having known the problem, we already purchased enough slabs to comply with all our commitment with the customers.

知道這個問題後，我們已經購買了足夠的板材來履行我們對客戶的所有承諾。

We don't expect any noticeable impact on our shipment.

我們預計我們的發貨不會受到任何明顯影響。

Also, we have already purchased all the slabs we need, so we don't expect any main impact on shipments.

此外，我們已經購買了所需的所有板材，因此我們預計出貨量不會受到任何重大影響。

Understood.

明白了。

Thank you, Maximo.

謝謝你，馬克西莫。

Very clear.

非常清楚。

Thank you, Caio.

謝謝你，凱奧。

Timna Tanners.

蒂姆納·坦納斯。

Yeah.

是的。

Hey, good morning.

嗨，早安。

Thanks for the time.

謝謝你的時間。

I wanted to probe the guidance commentary a bit more.

我想進一步探討指導評論。

So you talked about lower prices in most markets.

您談到了大多數市場的較低價格。

What market might not be seeing lower prices?

哪個市場可能不會出現更低的價格？

And then, you've talked about EBITDA and EBITDA margins but can we talk about costs a bit more, and specifically, when you might see the benefit of some declines in coking coal prices?

然後，您談到了 EBITDA 和 EBITDA 利潤率，但我們可以多談談成本嗎？

Hi, Timna.

嗨，蒂姆納。

Yeah.

是的。

I mean, in all markets, we're seeing a little bit of a lower prices, not exactly in Brazil, but it depends on the exchange rate.

我的意思是，在所有市場中，我們都看到價格略有下降，不完全是在巴西，但這取決於匯率。

That will depend a little bit on the exchange rate, when you see it in dollar terms.

當你以美元計算時，這將在一定程度上取決於匯率。

What we are going to see in Mexico is that you will have a lower prices in the contract sales because of the lack every quarter we have.

我們在墨西哥將看到的是，由於每季都有短缺，合約銷售的價格將會較低。

But prices in the commercial market are increasing right now.

但目前商業市場的價格正在上漲。

So it's a mix between a lower price because of the contract and an increase in prices that we are seeing in our shipments to the commercial market.

因此，這是由於合約而導致的較低價格和我們在向商業市場發貨時看到的價格上漲之間的結合。

Overall, the price will probably be a little lower than the ones indeed in this quarter.

總體而言，價格可能會比本季的實際價格低一些。

Okay.

好的。

If you want to however go into the cost side of the equation, what we are expecting to see is same level of cost because it was a mixture of different things.

然而，如果您想考慮等式的成本方面，我們期望看到的是相同程度的成本，因為它是不同事物的混合體。

We are going to reflect as usual the price of slabs that we bought a couple of quarters ago, and then, we have not yet see decline in the price of that raw material.

我們將像往常一樣反映我們幾個季度前購買的板坯的價格，然後，我們還沒有看到該原材料的價格下降。

There is also a change in the cost of the iron ore that is more immediate to see, that impact in our numbers.

鐵礦石成本也發生了變化，這項變化對我們的數據產生了更直接的影響。

The increased profitability in the Usiminas numbers or the Usiminas production will also be reflected during next quarter and the following.

烏西米納斯數據或烏西米納斯產量的獲利能力的提高也將在下個季度及接下來的季度得到體現。

As Maximo was explaining that, the performance of the blast furnace number three after the relining is starting to get up to an expected level.

正如馬克西莫所解釋的那樣，三號高爐在更換爐襯後的性能開始達到預期水平。

Though as Usiminas presented the numbers year to date, you will have the impact of the increased price of slabs purchased in the market that will be impacted during the second quarter.

儘管烏西米納斯公佈了今年迄今為止的數據，但您將受到市場上購買的板材價格上漲的影響，這將在第二季度受到影響。

So all in all, it's why we are expecting to see a relatively stable level of cost for next quarter.

總而言之，這就是我們預計下個季度成本水準相對穩定的原因。

Okay.

好的。

And coking coke, it sounds like it takes a while to flow through then?

還有焦炭，聽起來好像要花一段時間才能流過呢？

Yes.

是的。

Well, yeah, exactly.

嗯，是的，完全正確。

It's something that we are buying for our operation in Brazil, and it takes a little while for it to be reflected in our Ternium life.

這是我們為巴西業務購買的東西，需要一段時間才能體現在我們的 Ternium 生活中。

Okay.

好的。

Thanks for that.

感謝那。

And then, I wanted to ask a little bit about the cadence of ramp up, if you could remind us on Pesquería.

然後，我想問一下關於提升節奏的問題，如果你能在 Pesqueria 上提醒我們的話。

You have the galvanizing lines, and you also then of course, have the DRI-EAF complex.

您擁有鍍鋅生產線，當然還有 DRI-EAF 綜合設施。

So if you could remind us about the timing?

您能否提醒我們一下時間？

And also, any update on project costs given that we've seen some broad inflation across many of these types of projects?

此外，考慮到我們已經看到許多此類項目出現了普遍的通貨膨脹，項目成本有什麼更新嗎？

How are you tracking there?

你在那裡追蹤得怎麼樣？

Yes, Timna.

是的，提姆納。

Costs, we don't have any update besides the one we gave the last quarter where we increased a little bit.

成本方面，除了上個季度略有增加的情況外，我們沒有任何更新。

But we are seeing that the cost will be that one.

但我們看到成本就是這樣的。

I think it was $3.4 billion, the total cost of all the Pesquería 3, as we call it, project.

我認為這是 34 億美元，是我們所說的 Pesqueria 3 項目的總成本。

Regarding timing, the first line that is coming online, it's coming in July with a ramp up, of course, it's the peaking line.

從時間上來說，第一條上線的時間是7月份，是有坡度的，當然是高峰線。

And then, the customers lines are starting, one also in July.

然後，顧客隊伍就開始排隊了，也是在七月。

And going forward, the other four, two months, each one.

展望未來，其他四個，兩個月，每個。

So by the end of the year, we will have the five lines of the customers lines working.

因此，到今年年底，我們將擁有 5 條客戶線。

Then, we have the galvanized line.

然後，我們有鍍鋅線。

The galvanized 2 as we call it, that, it's going to start by the end of 2025.

我們所說的鍍鋅 2 將於 2025 年底啟動。

The coal rolling line, the PLTCM 2, as we call it, that is going to start in March of 2026.

我們稱之為 PLTCM 2 的煤炭軋製線將於 2026 年 3 月啟動。

And then, we have the EAF-DRI facility, that is going to start.

然後，我們的 EAF-DRI 設施即將啟動。

We are pointed to the middle of 2026.

我們預計到 2026 年中期。

Okay.

好的。

And last one just to clarify, what do you mean by a customized line?

最後一個問題是想澄清一下，客製化生產線是什麼意思？

I'm just not familiar with that term.

我只是不熟悉這個詞。

A line for finishing products.

成品生產線。

I mean to finish coals roll, cold rolls and galvanized products, and to serve the customers directly.

我的意思是完成煤捲、冷捲和鍍鋅產品，直接為客戶服務。

Okay.

好的。

Got it.

知道了。

Thanks, again.

再次感謝。

You're welcome.

不客氣。

Enrique Marquez.

恩里克·馬爾克斯。

Hi.

你好。

Thank you for taking my question.

感謝您回答我的問題。

First question regarding capital allocation.

第一個問題關於資本配置。

We're seeing Ternium delivering strong results.

我們看到 Ternium 取得了強勁的成果。

Should we expect an increase in dividends?

我們應該期待股息增加嗎？

And also, I understand you're going through an investment cycle, but just -- do you guys have anything on the pipeline?

而且，我知道你們正在經歷一個投資週期，但──你們有什麼計畫嗎？

Or are you thinking of any other opportunities, maybe in other regions outside Mexico after this investment cycle is completed?

或者，在本投資週期完成後，您是否正在考慮任何其他機會，也許是在墨西哥以外的其他地區？

Thank you.

謝謝。

Okay.

好的。

So let me take first the question on dividends.

讓我先回答有關股利的問題。

As you know, the company has been increasing the dividend payment.

如您所知，該公司一直在增加股息支付。

We have increased this year with the result of last year to $3.3 per ADS, that was an increase in comparison to the one that we paid last year.

今年我們的價格比去年的結果提高到每份 ADS 3.3 美元，這比我們去年支付的價格有所增加。

Though you're right, that we have the financial resources in order to keep -- sustain this level of dividend payment.

雖然你是對的，但我們有足夠的財務資源來維持這種水準的股利支付。

You also need to take into consideration all the CapEx plans that we have and all the things that we need to do in our facilities.

您還需要考慮我們擁有的所有資本支出計劃以及我們在設施中需要做的所有事情。

What we share, and I think we we've commented on this in the prior conference call, is that whenever we or the company decides to increase the dividend payment is because we understand we have the resources to sustain at least this level.

我們的共同點是，我認為我們在之前的電話會議中對此進行了評論，每當我們或公司決定增加股息支付時，都是因為我們知道我們有資源至少維持這一水平。

Then, of course, year after year, the Board of Directors needs to propose to the shareholders meeting the final number, but with these new increased level of dividend is the one that we think that the company can sustain the medium run.

當然，年復一年，董事會需要向股東大會提出最終數字，但隨著這些新增加的股利水平，我們認為公司可以維持中期運作。

So we are not expecting any specific movement there, but at least to sustain the current level of dividend payments.

因此，我們預計不會有任何具體變動，但至少會維持目前的股利支付水準。

And again, what the second question again?

再說一遍，第二個問題是什麼？

Because we didn't hear very well here.

因為我們在這裡聽得不太清楚。

Sorry about that.

對於那個很抱歉。

It was just on the pipeline of next investments, any other opportunities maybe in other regions outside Mexico?

它只是在下一次投資的管道中，在墨西哥以外的其他地區還有其他機會嗎？

Well, you know, we are always analyzing opportunities in Mexico and outside Mexico also.

嗯，你知道，我們一直在分析墨西哥和墨西哥以外的機會。

Our pipeline today is very full, as you may well be aware, and so, we are not seeing any particularly today.

正如您可能知道的那樣，我們今天的管道非常滿，因此，我們今天沒有看到任何特別的情況。

But of course, there are regions outside Mexico that are also very important to us.

當然，墨西哥以外的一些地區對我們也非常重要。

As we always said, our focus is been in the Americas.

正如我們常說的，我們的重點是美洲。

We are not going to go to other parts of the world.

我們不會去世界其他地方。

We think there is good -- big opportunities or good opportunities for us to continue growing, to continue implementing all the things that we are doing in this region in the Americas, but we don't have any specific to give you today.

我們認為，我們有繼續發展、繼續實施我們在美洲這一地區所做的所有事情的良好機會，但我們今天沒有任何具體資訊可以提供給你們。

Got it.

知道了。

Thanks.

謝謝。

Just a quick follow up on the person's question.

只是快速跟進該人的問題。

The flattish cost outlook, is it already considering the purchase of excess slabs?

成本前景平淡，是否已經考慮購買多餘的板坯？

Yes.

是的。

Or should we see some impact from it -- coming from it?

或者我們應該看到它帶來的一些影響——來自它嗎？

No, no.

不，不。

It's considering the buying of slabs.

正在考慮購買板材。

Got it.

知道了。

Thanks.

謝謝。

You're welcome.

不客氣。

There are no further questions at this time, so I'll turn the call back over to Ternium's CEO.

目前沒有其他問題，因此我會將電話轉回給 Ternium 的執行長。

Thank you.

謝謝。

Well, we appreciate your interest in and attention to this call.

好的，我們感謝您對本次電話會議的興趣和關注。

Thank you very much for participating.

非常感謝您的參與。

And if you have any questions, don't doubt to ask us or call us.

如果您有任何疑問，請隨時向我們詢問或致電我們。

Have a great day and take care.

祝你有美好的一天，保重。

Bye bye.

再見。

This conclude today's conference call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。