Ternium S.A 6-K, filed Aug 3, 2022

Ternium S.A. (TX)

6-K 2022-08-03 For: 2022-06-30

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Added on April 07, 2026

About this 6-K

Ternium S.A filed this 6-K on August 3, 2022.

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By: /s/ Guillermo Etchepareborda						By:/s/ Sebastián Martí
Name: Guillermo Etchepareborda						Name: Sebastián Martí
Title: Attorney in Fact						Title: Attorney in Fact




TERNIUM S.A.
Consolidated Condensed Interim Financial Statements
as of June 30, 2022
and for the six-month periods
ended on June 30, 2022 and 2021



26 Boulevard Royal, 4th floor
L – 2449 Luxembourg
R.C.S. Luxembourg: B 98 668


		Page

Consolidated Condensed Interim Income Statements		2
Consolidated Condensed Interim Statements of Comprehensive Income		3
Consolidated Condensed Interim Statements of Financial Position		4
Consolidated Condensed Interim Statements of Changes in Equity		5
Consolidated Condensed Interim Statements of Cash Flows		7
Notes to the Consolidated Condensed Interim Financial Statements
1	General information and basis of presentation	8
2	Accounting policies	8
3	Segment information	8
4	Cost of sales	10
5	Selling, general and administrative expenses	11
6	Finance expense, Finance income and Other financial income (expenses), net	11
7	Property, plant and equipment, net	11
8	Intangible assets, net	12
9	Investments in non-consolidated companies	12
10	Distribution of dividends	15
11	Contingencies, commitments and restrictions on the distribution of profits	15
12	Related party transactions	17
13	Financial instruments by category and fair value measurement	18
14	Foreign exchange restrictions in Argentina	19
15	The Russia-Ukraine armed conflict	20


TERNIUM S.A.
Consolidated Condensed Interim Financial Statements as of June 30, 2022
and for the six-month periods ended June 30, 2022 and 2021
(All amounts in $ thousands)




		Three-month period ended June 30,		Six-month period ended June 30,
	Notes	2022	2021	2022	2021
		(Unaudited)		(Unaudited)
Net sales	3	4,437,676	3,919,764	8,742,505	7,169,060
Cost of sales	3 & 4	(3,058,908)	(2,415,692)	(6,043,093)	(4,553,943)

Gross profit	3	1,378,768	1,504,072	2,699,412	2,615,117

Selling, general and administrative expenses	3 & 5	(310,444)	(244,531)	(591,747)	(454,898)
Other operating income, net	3	2,828	11,900	22,502	16,995

Operating income	3	1,071,152	1,271,441	2,130,167	2,177,214

Finance expense	6	(7,313)	(6,796)	(13,935)	(14,024)
Finance income	6	15,636	18,456	39,953	34,769
Other financial (expense) income, net	6	28,856	11,233	(49,711)	18,117

Equity in earnings of non-consolidated companies	9	49,273	171,054	108,022	217,573

Profit before income tax expense		1,157,604	1,465,388	2,214,496	2,433,649

Income tax expense		(221,419)	(307,124)	(400,793)	(568,717)

Profit for the period		936,185	1,158,264	1,813,703	1,864,932

Attributable to:
Owners of the parent		799,270	1,022,108	1,574,891	1,625,036
Non-controlling interest		136,915	136,156	238,812	239,896

Profit for the period		936,185	1,158,264	1,813,703	1,864,932

Weighted average number of shares outstanding		1,963,076,776	1,963,076,776	1,963,076,776	1,963,076,776

Basic and diluted earnings per share for profit attributable to the equity holders of the company (expressed in $ per share)		0.41	0.52	0.80	0.83


		Balances as of
	Notes	June 30, 2022		December 31, 2021
		(Unaudited)
ASSETS

Non-current assets
Property, plant and equipment, net	7	6,407,596		6,431,578
Intangible assets, net	8	915,585		902,256
Investments in non-consolidated companies	9	899,075		751,475
Other investments		70,484		67,277

Deferred tax assets		222,332		160,745
Receivables, net		226,457		177,803
Trade receivables, net		—	8,741,529	229	8,491,363

Current assets
Receivables, net		463,857		357,705
Derivative financial instruments		7,401		4,353
Inventories, net		4,540,431		3,908,305
Trade receivables, net		1,976,150		1,767,196
Other investments		1,340,082		1,290,459
Cash and cash equivalents		719,149	9,047,070	1,276,605	8,604,623

Non-current assets classified as held for sale			1,895		1,921

			9,048,965		8,606,544

Total Assets			17,790,494		17,097,907

EQUITY
Capital and reserves attributable to the owners of the parent			11,776,285		10,535,019

Non-controlling interest			1,927,963		1,700,019

Total Equity			13,704,248		12,235,038

LIABILITIES

Non-current liabilities
Provisions		84,350		83,299
Deferred tax liabilities		128,357		186,216
Other liabilities		541,296		506,886
Trade payables		1,058		989

Lease liabilities		208,321		215,250
Borrowings		538,461	1,501,843	656,465	1,649,105

Current liabilities
Current income tax liabilities		58,320		873,759
Other liabilities		363,838		345,123
Trade payables		1,564,479		1,126,049
Derivative financial instruments		450		1,889
Lease liabilities		46,504		44,371
Borrowings		550,812	2,584,403	822,573	3,213,764

Total Liabilities			4,086,246		4,862,869

Total Equity and Liabilities			17,790,494		17,097,907


	Attributable to the owners of the parent (1)
	Capital stock (2)	Treasury shares (2)	Initial public offering expenses	Reserves (3)	Capital stock issue discount (4)	Currency translation adjustment	Retained earnings	Total	Non-controlling interest	Total Equity


Balance as of January 1, 2022	2,004,743	(150,000)	(23,295)	1,360,637	(2,324,866)	(2,898,593)	12,566,393	10,535,019	1,700,019	12,235,038

Profit for the period							1,574,891	1,574,891	238,812	1,813,703
Other comprehensive income (loss) for the period
Currency translation adjustment						39,807		39,807	3,066	42,873
Remeasurement of post employment benefit obligations				(3,370)				(3,370)	(577)	(3,947)
Cash flow hedges and others, net of tax				19				19	19	38
Others (5)				(16,504)				(16,504)	(9,383)	(25,887)

Total comprehensive income (loss) for the period	—	—	—	(19,855)	—	39,807	1,574,891	1,594,843	231,937	1,826,780

Dividends paid in cash (6)							(353,354)	(353,354)	—	(353,354)



Acquisition of non-controlling interest (7)				(223)				(223)	(3,993)	(4,216)

Balance as of June 30, 2022 (unaudited)	2,004,743	(150,000)	(23,295)	1,340,559	(2,324,866)	(2,858,786)	13,787,930	11,776,285	1,927,963	13,704,248


	Six-month period ended June 30, 2022 (Unaudited)
	Steel	Mining	Inter-segment eliminations	Total
IFRS

Net sales	8,742,442	213,553	(213,490)	8,742,505
Cost of sales	(6,055,811)	(178,575)	191,293	(6,043,093)

Gross profit	2,686,631	34,978	(22,197)	2,699,412

Selling, general and administrative expenses	(571,531)	(20,216)	—	(591,747)
Other operating income (loss), net	23,148	(646)	—	22,502

Operating income	2,138,248	14,116	(22,197)	2,130,167














Depreciation and amortization	(260,608)	(42,286)	—	(302,894)


	Six-month period ended June 30, 2021 (Unaudited)
	Steel	Mining	Inter-segment eliminations	Total
IFRS

Net sales	7,148,721	235,839	(215,500)	7,169,060
Cost of sales	(4,609,708)	(152,711)	208,476	(4,553,943)

Gross profit	2,539,013	83,128	(7,024)	2,615,117

Selling, general and administrative expenses	(445,310)	(9,588)	—	(454,898)
Other operating income, net	16,732	263	—	16,995

Operating income	2,110,435	73,803	(7,024)	2,177,214














Depreciation and amortization	(269,238)	(31,141)	—	(300,379)


	Six-month period ended June 30, 2022 (Unaudited)
	Mexico	Southern region	Brazil and other markets	Total

Net sales	4,779,293	1,892,019	2,071,193	8,742,505

Non-current assets (1)	4,767,553	860,474	1,695,154	7,323,181

	Six-month period ended June 30, 2021 (Unaudited)
	Mexico	Southern region	Brazil and other markets	Total

Net sales	4,149,753	1,492,886	1,526,421	7,169,060

Non-current assets (1)	4,781,947	891,284	1,716,999	7,390,230

(1) Includes Property, plant and equipment and Intangible assets.


Company	Country of incorporation	Main activity	Voting rights as of		Value as of
			June 30, 2022	December 31, 2021	June 30, 2022	December 31, 2021


Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS	Brazil	Manufacturing and selling of steel products	34.39%	34.39%	816,609	681,711
Techgen S.A. de C.V.	Mexico	Provision of electric power	48.00%	48.00%	77,582	64,140
Other non-consolidated companies (1)					4,884	5,624
					899,075	751,475


Value of investment						USIMINAS

As of January 1, 2022						681,711
Share of results (1)						94,564
Other comprehensive income (2)						40,334




As of June 30, 2022						816,609

(1) It includes the adjustment of the values associated to the purchase price allocation.
(2) It includes mainly the effect of the currency translation adjustment.


Usiminas' shareholders' equity	4,541,548
Percentage of interest of the Company over shareholders' equity	20.40	%

Interest of the Company over shareholders' equity	925,699

Purchase price allocation	58,367
Goodwill	198,441
Impairment	(365,898)


Total Investment in Usiminas	816,609


						USIMINAS
Summarized balance sheet (in million $)						As of June 30, 2022
Assets
Non-current						3,771
Current						3,042
Other current investments						205
Cash and cash equivalents						863

Total Assets						7,881
Liabilities
Non-current						538
Non-current borrowings						1,122
Current						1,138
Current borrowings						33

Total Liabilities						2,831

Non-controlling interest						508

Shareholders' equity						4,542


						USIMINAS
Summarized income statement (in million $)						Six-month period ended June 30, 2022

Net sales						3,232
Cost of sales						(2,460)
Gross Profit						772
Selling, general and administrative expenses						(127)
Other operating income (loss), net						(60)
Operating income						585
Financial income (expenses), net						45
Equity in earnings of associated companies						18
Profit before income tax						648
Income tax expense						(192)
Net profit before non-controlling interest						456
Non-controlling interest in other subsidiaries						(48)
Net profit for the period						408


		Six-month period ended June 30,
	Notes	2022	2021
		(Unaudited)
Cash flows from operating activities
Profit for the period		1,813,703	1,864,932
Adjustments for:
Depreciation and amortization	7 & 8	302,894	300,379
Income tax accruals less payments		(1,084,086)	197,485
Equity in earnings of non-consolidated companies	9	(108,022)	(217,573)
Interest accruals less payments		3,989	2,096

Changes in provisions		(1,732)	6,048
Changes in working capital (1)		(349,988)	(1,317,992)

Net foreign exchange results and others		110,265	120,872

Net cash provided by operating activities		687,023	956,247

Cash flows from investing activities
Capital expenditures	7 & 8	(285,633)	(291,133)

(Increase) Decrease in other investments		(195,251)	173,335
Proceeds from the sale of property, plant and equipment		794	1,017
Dividends received from non-consolidated companies		28,884	499






Acquisition of non-controlling interest		(4,216)	(757)

Net cash (used in) provided by investing activities		(455,422)	(117,039)

Cash flows from financing activities
Dividends paid in cash to company’s shareholders		(353,354)	(412,246)

Finance lease payments		(24,892)	(22,417)


	Six-month period ended June 30,
	2022	2021
	(Unaudited)

Inventories at the beginning of the year	3,908,305	2,001,781




Plus: Charges for the period
Raw materials and consumables used and other movements	5,504,178	4,550,452
Services and fees	86,242	73,614
Labor cost	477,049	334,761
Depreciation of property, plant and equipment	263,829	256,011
Amortization of intangible assets	19,591	10,545
Maintenance expenses	310,841	271,337
Office expenses	4,503	3,625

Insurance	7,692	5,785
Change of obsolescence allowance	12,140	(901)
Recovery from sales of scrap and by-products	(21,213)	(16,397)
Others	10,367	8,573

Less: Inventories at the end of the period	(4,540,431)	(2,945,243)

Cost of Sales	6,043,093	4,553,943


	Six-month period ended June 30,
	2022	2021
	(Unaudited)
Services and fees	37,091	29,938
Labor cost	160,898	130,525
Depreciation of property, plant and equipment	6,783	7,656
Amortization of intangible assets	12,691	26,167
Maintenance and expenses	4,634	3,635
Taxes	85,183	74,171
Office expenses	20,485	15,040
Freight and transportation	260,347	157,995
Increase of allowance for doubtful accounts	486	(132)
Others	3,149	9,903

Selling, general and administrative expenses	591,747	454,898


	Six-month period ended June 30,
	2022	2021
	(Unaudited)
At the beginning of the year	6,431,578	6,504,681


Currency translation differences	282	69
Additions	245,665	262,672
Value adjustments of lease contracts	15,919	3,830
Disposals	(13,446)	(16,380)
Depreciation charge	(270,612)	(263,667)
Capitalized borrowing costs	403	4,873
Transfers and reclassifications	(2,193)	(1,796)


At the end of the period	6,407,596	6,494,282



As of June 30, 2022 (in $ thousands)	Amortized cost	Assets at fair value through profit or loss	Assets at fair value through OCI	Total

(i) Assets as per statement of financial position
Receivables	178,862	—	—	178,862
Derivative financial instruments	—	7,401	—	7,401
Trade receivables	1,976,150	—	—	1,976,150
Other investments	418,490	519,538	472,286	1,410,314
Cash and cash equivalents	572,265	136,642	10,242	719,149

Total	3,145,767	663,581	482,528	4,291,876

As of June 30, 2022 (in $ thousands)	Amortized cost	Liabilities at fair value through profit or loss		Total

(ii) Liabilities as per statement of financial position
Other liabilities	57,614	—		57,614
Trade payables	1,523,507	—		1,523,507
Derivative financial instruments	—	450		450
Lease liabilities	254,825	—		254,825
Borrowings	1,089,273	—		1,089,273

Total	2,925,219	450		2,925,669


	Fair value measurement as of June 30, 2022 (in $ thousands):
Description	Total	Level 1	Level 2	Level 3

Financial assets at fair value through profit or loss / OCI
Cash and cash equivalents	146,884	146,884	—	—
Other investments	991,824	848,593	119,257	23,974
Derivative financial instruments	7,401	—	7,401	—

Total assets	1,146,109	995,477	126,658	23,974

Financial liabilities at fair value through profit or loss / OCI
Derivative financial instruments	450	—	450	—

Total liabilities	450	—	450	—


	Fair value measurement as of December 31, 2021 (in $ thousands):
Description	Total	Level 1	Level 2	Level 3 (*)

Financial assets at fair value through profit or loss / OCI
Cash and cash equivalents	692,529	692,529	—	—
Other investments	735,654	668,056	39,777	27,821
Derivative financial instruments	4,353	—	4,353	—

Total assets	1,432,536	1,360,585	44,130	27,821

Financial liabilities at fair value through profit or loss / OCI
Derivative financial instruments	1,889	—	1,889	—

Total liabilities	1,889	—	1,889	—