6-K 1 d321450d6k.htm FORM 6-K

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

As 03/27/2012

Ternium S.A.

(Translation of Registrant’s name into English)

Ternium S.A.

29 Avenue de la Porte-Neuve

L-2227 Luxembourg

(352) 2668-3152

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F.

Form 20-F x Form40-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.

Yes ¨ No x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Not applicable

The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended.

This report contains the presentation shown by Ternium S.A. at its Investor Day held in New York City on March 27, 2012.

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: |  | /s/ Pablo Brizzio
Name: Pablo Brizzio Title: Chief Financial Officer

Dated: March 27, 2012

TENIGAL AND COLD-ROLLING MILL CONSTRUCTION SITE INVESTOR DAY 2012 NEW YORK PALACE HOTEL MARCH 27, 2012

TERNIUM l Investor Day – March 27, 2012 2 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 l Investor Day – March 27, 2012 3 Event Schedule11:30amRegistration & luncheon12:00pmPresentation by Daniel Novegil, CEO1:00pmQ&A with Ternium management2:00pmClosing remarks

TERNIUM l Investor Day – March 27, 2012 Speakers4 Daniel Novegil, CEO Mr.Novegil is Chief Executive Officer of Ternium. An Industrial Engineer, he graduated 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 the Stanford University School of Business. Pablo Brizzio, CFO Máximo Vedoya, Mexico Area Manager Oscar Montero, Planning and Operations General Director Sebastián Martí, IR Director

TERNIUM l Investor Day – March 27, 2012 5 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion

TERNIUM l Investor Day – March 27, 2012 Latin American Steel MarketsContinuedstrong growth drivers Latin America apparent steel use (ASU) of 64 million tons in 2011 Compounded annual growth rate (CAGR) of 5.2% in last 8 years Steel demand to grow 6.5% in 2012(1) Annual imports of 14 million tons (23% of total consumption) Steel consumption at 107 kg per capita, expected to increase based on investments in infrastructure, energy projects, residential construction and industrialization (1) AlaceroforecastSteel Consumption(kg per capita) GDP per capita (thousands USD)Apparent Steel UseCAGR 2003-11mtkg/capImpo%ASUGDPBrazil25.012714%5.8%4.2%Mexico18.015732%2.3%2.5%Argentina5.313118%8.2%7.7%Colombia3.26948%11.2%4.8%Chile2.514744%4.6%4.3%Other9.95554%7.3%4.5%Latin America64.010723%5.2%4.0% 60100200300400500010ChinaCISLatamAseanIndia30405060EU27USA Source: worldsteel

TERNIUM l Investor Day – March 27, 2012 Latin American Steel MarketsFlat steel markets -Good prospects for growthLatin American steel markets (2011)7 Latin America flat steel consumption of 34 million tons (52% of total ASU) Direct and indirect flat steel imports represent an opportunity for local producers Construction and automotive are the main flat steel consuming sectors (71% of market) 52%4%44%Flat products33.5 mtLongproducts28 mtOthersteel products2.5 mt(1) Alacero (2) Ternium’sestimateFlat steel markets (2011) (1)Flat steel consuming sectors (2011) (2)mtImpo%Flat/TotalmtweightBrazil13.018%52%Construction15.446%Mexico11.437%64%Automotive8.525%Argentina2.816%52%Industry5.316%Colombia1.459%44%Home appliances1.85%Chile1.256%47%Energy1.34%Other3.760%37%Packaging1.24%Latin America33.525%52%Total33.5100% Source: Alacero, Ternium

TERNIUM l Investor Day – March 27, 2012 8 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion

TERNIUM l Investor Day – March 27, 2012 Competitive Positioning Leading player in flat steel products in Latin America9 Usiminas, Nippon Steel and Ternium combined market share approx. 37% in flat steel products Leaders in high-end steel using sectors Deep downstream integration and broad network of service and distribution centers A high value-added product mix Close relationship with customers through integration into value-chain Usiminas, Nippon Steel, TerniumOther Latam playersImports Andean Region (3.9 mt) Brazil (13.0 mt) Mexico & CA (12.2 mt) Southern Area (4.3 mt) Flat steel consumption (2011)

TERNIUM l Investor Day – March 27, 2012 Competitive Positioning Latin American construction markets Growth potential coming from: housing deficit (23 million units), demographic expansion and infrastructure development Broad customer base and extensive market reach (39 service centers and 20 distribution centers) High value added portfolio (insulating sandwich panels, pre-painted steel, pre-engineered buildings, tubes and purlins) Opportunities for imports substitution:Coated products in Brazil Plates Wide and thick hot-rolled sheet (1) Ternium estimates Construction flat steel markets (15.4 mt) (1)34%38%28%Imports CAGR 2003-11 = 5.4%112118130143152157153160172'03'04'05'06'07'08'09'10'11e Cement production (million tons) Other Latam players10Usiminas, Nippon Steel,Ternium Source: Ternium estimates

TERNIUM l Investor Day – March 27, 2012 CAGR 2003-11 = 9.1%3.64.14.85.45.96.25.47.07.2'03'04'05'06'07'08'09'10'11eCompetitive Positioning Latin American automotive markets Vehicles production (million units) •Vehicles production: 7.2 million units (3.4 in Brazil, 2.7 in Mexico, 0.8 in Argentina) •Market with strong growth potential (new plants announced in Mexico and Brazil, +2.2 million units) •Automotive steel-making facilities in Mexico, Brazil and Argentina. Joint-ventures in Mexico (Tenigal) and Brazil (Unigal) •Opportunities for import substitution: oCold-rolled and coated products oGalvanized sheets for exposed parts oAdvanced high-strength steels (AHSS) (1) Ternium estimates Automotive flat steel markets (8.5 mt) (1)43%28%29%Imports Other Latam players11 Usiminas, Nippon Steel, Ternium Source: ADEFA, ANFAVEA, ACOLFA, FAVENPA, AMIA

TERNIUM l Investor Day – March 27, 2012 Competitive Positioning Latin American energy markets •Extensive opportunities to develop energy related projects (pre-salt in Brazil, linepipes in Mexico and Colombia, shale gas in Argentina) and infrastructure •Relationship with Tenaris and investment in Usiminas enhances our competitive position in the energy market •Steel will be needed for: oPipelines oOil & Fuel tankers oProduction platforms oOffshore support vessels oDrilling rigs (1) Organização Nacional da Indústria do Petróleo (ONIP) 12 Brazil’s oil industry will need 9.4 million tons of steel in the 2010-2020 period to supply a total of 443 projects (1) •Mexico’s energy sector will need 1.5 million tons of welded steel tubes

TERNIUM l Investor Day – March 27, 2012 13 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion

TERNIUM l Investor Day – March 27, 2012 Key Drivers of Profitability Product differentiation: development of high-end products to serve market niches Downstream integration and service differentiation: supply chain management, service and distribution centers, proprietary IT platform Upstream integration: increase iron ore production and natural gas based steelmaking capacity (DRI) Usiminas investment related synergies and value creation 14

TERNIUM l Investor Day – March 27, 2012 Product Differentiation Highly complementary product range15 Usiminas, Nippon Steel and Ternium have a highly complementary product range Combined product portfolio enables offering a complete product range to customers, from commercial qualities to highly sophisticated steels HR: Hot Rolled CR: Cold RolledEG: Electrogalvanized GI: GalvanizedGA: GalvannealGL: GalvalumePP: Pre-paintedTIN: Tinplate (1)Grain non-oriented Full Process and Grain OrientedNote: includes products to be produced in the new Pesqueria facility Double Reduced CQ HighEndElec-trical(1) TRIPContinuousAnnealing AHSSContinuousAnnealing Plates HRCREGGI GAGL PP TINNippon Steel Usiminas Ternium

TERNIUM l Investor Day – March 27, 2012 Product DifferentiationAutomotive steel products 16Tenigal: Joint venture with Nippon Steel Production of high-grade galvanized and galvannealed steel sheets Currently visiting OEM’s to prepare qualification procedures Capacity: 400,000 tons per year Expected start-up: 3Q 2013New vacuum degassing station Productionof ultra lowcarbon (ULC) and intersticial-free steelgradesin Argentina Processing capacity: 1.2 million tons per year Expected start-up: 2Q 2013 Source: Tenigal

TERNIUM l Investor Day – March 27, 2012 Product DifferentiationHigh-end cold-rolled steel products 17New cold-rolling mill (Monterrey, Mexico) Integrated pickling line with tandem cold-rolling mill (PLTCM) High-end products:Exposed surface for the automotive industry High-strength micro-alloyed steels Advancedhigh-strength steels for galvanizing Widths of up to 1850 mm for a diverse range of uses Annual capacity of 1.5 million tons Tenigal and Cold-RollingMillconstructionsite

TERNIUM l Investor Day – March 27, 2012 Broad network of service and distribution centers Combined steel processing capacity of 7.4 million tons (slitters, cut-to-length, roll-forming, tubes) Supply-chain management improvements 18Downstream Integration Ternium and Usiminas service and distribution networksService CenterSteel Mill/Rolling/Coated Distribution CenterCoated Steel Capacity in Latam(galvanized & electrogalvanized)Ternium 32%Usiminas 18%CSN21%Mittal10% Ternium 26% Usiminas 24% CSN 16%Mittal12% Hot Rolled Capacity in Latam (hot rolled coils and plates)

TERNIUM l Investor Day – March 27, 2012 Service Differentiation Customer portal Ternium offers its customers value-added services through a proprietary IT platform:Self-service order-entry including web-catalog and preferred and historical product selection Real-time order tracking (credit status, lead-time, documentation) Bidding platform for low turnover materials Based on Ternium’sIT platform:Unified product code Business to business EDI (electronic data interface) Real-time operation Automation of administrative processes Modeling technology for planning, forecasting and optimization 19

TERNIUM l Investor Day – March 27, 2012 Upstream IntegrationNew mining project in Mexico20 Total iron ore resources of 700 million tons (ROM, measured and indicated, average Fe content 34%) Resources of 235 mt in sites in operation (Aquila, Peña Colorada) New mining project under development (Sierra del Alo) PACIFIC OCEAN

TERNIUM l Investor Day – March 27, 2012 21Sierra del Alo, Jalisco (Mexico) Target 4 million tons of iron ore concentrate production per year Total measured and indicated resources of 175 million tons (ROM –Fe content 36% -magnetite iron ore) Project description:Open pit mine, beneficiation plant in site Pipeline to Alzada facility Existing railroad transportation to Manzanillo port (for export) Estimated capex: USD1 billion Project time frame: 4 years Pellet feed expected cash cost of 35-45 USD/ton FOT Alzada Currently working in exploration, land acquisition, environmental permits and feasibility studies Project development supported by world-class mining consultants: mine design, industrial specifications and environmental permits Upstream IntegrationNew mining project in Mexico

TERNIUM l Investor Day – March 27, 2012 Upstream Integration Crude steel expansion in Argentina22Debottleneckingof steelmaking facility Installation of a new two-stand continuous caster Additional crude steel capacity of 500,000 tons per year Remainingcapex:USD120million Third-partyslabssubstitution Fixedcostsdilution Increasedoperationalflexibility StartUp:3Q2013

TERNIUM l Investor Day – March 27, 2012 Upstream Integration Project Brazil (Porto do Açu) 23 Project being developed in two main stages (pelletizing facility and steel mill based on DRI) Progress being made in the following areas:Land: in final stages of acquisition (3,400 acres) Iron ore: long term provision contract with Anglo American (advanced negotiations) Environmental permits: preliminary license already obtained. Installation license for pelletizing facility to be requested by mid 2012 Port services: contract signed with LLX Contractual business decision deadline in September 2012 to build complete project, only pelletizing facility or call off the project Availability of natural gas in the area at competitive costs is critical for feasibility of steel mill Opportunity to capitalize value created with the possibility to invite additional partners (Usiminas, Nippon Steel, Tenaris)

TERNIUM l Investor Day – March 27, 2012 Upstream Integration DRI cost advantage24 Ternium has 3.3 million tons of steel capacity based on DRI/EAF technology HyL®DRI technology developed by Ternium’s Mexican subsidiary Ternium Mexico’s average natural gas price in 2011 was 4 USD/MBTU(1), equivalent to met coal at 105 USD/ton Ternium Mexico’s energy cost changes 70 million dollars per year for every 1 dollar change in the natural average gas price. (1)Henry Hub equivalentEnergy cost equivalence betweenEnergy cost savings for every USD1/MBTUDRI/EAF vs BF/BOF in Hot-rolledreduction in average natural gas prices4525Natural GasElectricityUSD70 million per year0501001502002500246810Natural gas prices (USD/MBTU)Met coal prices, FOB (USD/ton)Blast Furnace cost advantageDRI/EAF cost advantage

TERNIUM l Investor Day – March 27, 2012 25 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion

TERNIUM l Investor Day – March 27, 2012 Techint Group appointed 3 directors to UsiminasBoard Joint control with Nippon Steel Julian Eguren, former Ternium Mexico President, appointed UsiminasCEO Managers by Ternium to support Usiminasturnaround Initiatives launched to review costs, capex plan, optimize inventories, working capital and general expenses Investment in UsiminasFirst steps 26Usiminas Organizational StructureFinance & IR VPRonald SeckelmannSubsidiaries VPPaolo BassettiCorporate Planning VPNobuhiro YamamotoCommercial VPSergio LeiteVP Technology & QualityRomel de SouzaIndustrial VPMarcelo CharaCEOJulián Eguren

TERNIUM l Investor Day – March 27, 2012 Investment in UsiminasTwo main value creation drivers Cost efficiency and capex management Maximize capacity utilization rates Recover market share in Brazil from imports Procurement (economies of scale and scope) Iron ore business development Leadership in Latin American flat steel markets Wide product range of highly sophisticated products Distribution of steel products in Latin American markets Combined procurement efforts (Exiros) Vertical integration opportunities (capex optimization) Technical assistance, share best-practices, R&D opportunities UsiminasTurnaroundAssociation with Usiminas, Nippon Steel and Tenaris27

TERNIUM l Investor Day – March 27, 2012 28 Latin American Steel Markets Competitive Positioning Key Drivers of Profitability Investment in Usiminas Conclusion

TERNIUM l Investor Day – March 27, 2012 29 Conclusion Latin America’s steel markets with strong growth prospects and relevant import substitution opportunities Association with Usiminas and Nippon Steel creates a unique competitive position in the Latin American marketsComplete product range focused on high-end segments Relevant market share and downstream integration Broad network of service and distribution centers Product and service differentiation and upstream integration are key drivers of profitability Investment in Usiminas provides distinctive value creation opportunities

TERNIUM l Investor Day – March 27, 2012 30