Ternium S.A 6-K, filed Aug 4, 2021

Ternium S.A. (TX)

6-K 2021-08-04 For: 2021-06-30

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Added on April 07, 2026

About this 6-K

Ternium S.A filed this 6-K on August 4, 2021.

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By: /s/ Pablo Brizzio						By:/s/ Máximo Vedoya
Name: Pablo Brizzio						Name: Máximo Vedoya
Title: Chief Financial Officer						Title: Chief Executive Officer




TERNIUM S.A.
Consolidated Condensed Interim Financial Statements
as of June 30, 2021
and for the six-month periods
ended on June 30, 2021 and 2020

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	9
4	Cost of sales	11
5	Selling, general and administrative expenses	12
6	Finance expense, Finance income and Other financial income (expenses), net	12
7	Property, plant and equipment, net	12
8	Intangible assets, net	13
9	Investments in non-consolidated companies	13
10	Distribution of dividends	16
11	Contingencies, commitments and restrictions on the distribution of profits	16
12	Related party transactions	18
13	Financial instruments by category and fair value measurement	19
14	The Covid-19 pandemic and its impact on Ternium	20
15	Foreign exchange restrictions in Argentina	21


TERNIUM S.A.
Consolidated Condensed Interim Financial Statements as of June 30, 2021
and for the six-month periods ended June 30, 2021 and 2020
(All amounts in $ thousands)




		Three-month period ended June 30,		Six-month period ended June 30,
	Notes	2021	2020	2021	2020
		(Unaudited)		(Unaudited)
Net sales	3	3,919,764	1,745,760	7,169,060	4,017,115
Cost of sales	3 & 4	(2,415,692)	(1,508,797)	(4,553,943)	(3,429,274)

Gross profit	3	1,504,072	236,963	2,615,117	587,841

Selling, general and administrative expenses	3 & 5	(244,531)	(171,451)	(454,898)	(383,042)
Other operating income (expenses), net	3	11,900	74	16,995	(3,537)

Operating income	3	1,271,441	65,586	2,177,214	201,262

Finance expense	6	(6,796)	(13,566)	(14,024)	(29,859)
Finance income	6	18,456	7,049	34,769	14,997
Other financial income (expenses), net	6	11,233	(8,100)	18,117	106,400

Equity in earnings (losses) of non-consolidated companies	9	171,054	(19,668)	217,573	(13,582)

Profit before income tax expense		1,465,388	31,301	2,433,649	279,218

Income tax (expense) benefit		(307,124)	12,284	(568,717)	(254,998)

Profit for the period		1,158,264	43,585	1,864,932	24,220

Attributable to:
Owners of the parent		1,022,108	44,046	1,625,036	32,464
Non-controlling interest		136,156	(461)	239,896	(8,244)

Profit for the period		1,158,264	43,585	1,864,932	24,220

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)		0.52	0.02	0.83	0.02


		Balances as of
	Notes	June 30, 2021		December 31, 2020
		(Unaudited)
ASSETS

Non-current assets
Property, plant and equipment, net	7	6,494,282		6,504,681
Intangible assets, net	8	895,948		908,583
Investments in non-consolidated companies	9	715,856		471,306
Other investments		3,039		2,881

Deferred tax assets		140,480		158,703
Receivables, net		192,334	8,441,939	243,306	8,289,460


Current assets
Receivables, net		316,199		288,609
Derivative financial instruments		3,338		1,572
Inventories, net		2,945,243		2,001,781
Trade receivables, net		1,754,168		918,438
Other investments		616,005		813,527
Cash and cash equivalents		768,691	6,403,644	537,882	4,561,809

Non-current assets classified as held for sale			4,996		4,966

			6,408,640		4,566,775

Total Assets			14,850,579		12,856,235

EQUITY
Capital and reserves attributable to the owners of the parent			8,549,548		7,286,115

Non-controlling interest			1,398,209		1,157,038

Total Equity			9,947,757		8,443,153

LIABILITIES

Non-current liabilities
Provisions		90,732		80,570
Deferred tax liabilities		237,949		346,485
Other liabilities		518,562		551,856
Trade payables		1,179		1,145
Derivative financial instruments		323		523
Lease liabilities		235,938		251,617
Borrowings		972,629	2,057,312	1,327,289	2,559,485

Current liabilities
Current income tax liabilities		415,514		110,499
Other liabilities		381,103		249,836
Trade payables		1,404,114		1,049,337
Derivative financial instruments		1,251		5,835
Lease liabilities		43,587		42,486
Borrowings		599,941	2,845,510	395,604	1,853,597

Total Liabilities			4,902,822		4,413,082

Total Equity and Liabilities			14,850,579		12,856,235


	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, 2021	2,004,743	(150,000)	(23,295)	1,329,945	(2,324,866)	(2,861,029)	9,310,617	7,286,115	1,157,038	8,443,153

Profit for the period							1,625,036	1,625,036	239,896	1,864,932
Other comprehensive income (loss) for the period
Currency translation adjustment						27,980		27,980	2,057	30,037
Remeasurement of post employment benefit obligations				28,483				28,483	3,380	31,863
Cash flow hedges and others, net of tax				56				56	55	111
Others				(5,887)				(5,887)	(3,449)	(9,336)

Total comprehensive income for the period	—	—	—	22,652	—	27,980	1,625,036	1,675,668	241,939	1,917,607

Dividends paid in cash (5)							(412,246)	(412,246)	—	(412,246)



Acquisition of non-controlling interest (6)				11				11	(768)	(757)

Balance as of June 30, 2021 (unaudited)	2,004,743	(150,000)	(23,295)	1,352,608	(2,324,866)	(2,833,049)	10,523,407	8,549,548	1,398,209	9,947,757


	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 - IFRS	2,110,435	73,803	(7,024)	2,177,214

Management view
Net sales	7,148,721	294,957	(274,618)	7,169,060
Operating income	1,513,776	135,682	(3,297)	1,646,161
Reconciliation items:
Differences in Cost of sales				531,053

Operating income - IFRS				2,177,214

Financial income (expense), net				38,862
Equity in earnings of non-consolidated companies				217,573

Income before income tax expense - IFRS				2,433,649

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


	Six-month period ended June 30, 2020 (Unaudited)
	Steel	Mining	Inter-segment eliminations	Total
IFRS

Net sales	3,987,313	193,521	(163,719)	4,017,115
Cost of sales	(3,461,131)	(134,816)	166,673	(3,429,274)

Gross profit	526,182	58,704	2,954	587,841

Selling, general and administrative expenses	(372,395)	(10,647)	—	(383,042)
Other operating income, net	(2,759)	(778)	—	(3,537)

Operating income - IFRS	151,028	47,280	2,954	201,262

Management view
Net sales	3,987,313	191,366	(161,564)	4,017,115
Operating income	254,648	52,200	(1,388)	305,460
Reconciliation items:
Differences in Cost of sales				(104,198)

Operating income - IFRS				201,262

Financial income (expense), net				91,538
Equity in earnings of non-consolidated companies				(13,582)

Income before income tax expense - IFRS				279,218

Depreciation and amortization - IFRS	(301,504)	(23,188)	—	(324,692)


	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

	Six-month period ended June 30, 2020 (Unaudited)
	Mexico	Southern region	Brazil and other markets	Total

Net sales	2,167,411	633,941	1,215,763	4,017,115

Non-current assets (1)	4,714,696	969,774	1,827,963	7,512,433

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


Company	Country of incorporation	Main activity	Voting rights as of		Value as of
			June 30, 2021	December 31, 2020	June 30, 2021	December 31, 2020


Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS	Brazil	Manufacturing and selling of steel products	34.39%	34.39%	655,963	422,948
Techgen S.A. de C.V.	Mexico	Provision of electric power	48.00%	48.00%	54,503	42,625
Other non-consolidated companies (1)					5,390	5,733
					715,856	471,306


Value of investment						USIMINAS

As of January 1, 2021						422,948
Share of results (1)						205,650
Other comprehensive income						27,365




As of June 30, 2021						655,963

(1) It includes the adjustment of the values associated to the purchase price allocation.


Usiminas' shareholders' equity	3,979,530
Percentage of interest of the Company over shareholders' equity	20.41	%

Interest of the Company over shareholders' equity	810,120

Purchase price allocation	50,718
Goodwill	207,795
Impairment	(412,670)


Total Investment in Usiminas	655,963


						USIMINAS
Summarized balance sheet (in million $)						As of June 30, 2021
Assets
Non-current						3,643
Current						2,435
Other current investments						461
Cash and cash equivalents						749

Total Assets						7,288
Liabilities
Non-current						582
Non-current borrowings						1,137
Current						1,046
Current borrowings						28

Total Liabilities						2,793

Non-controlling interest						515

Shareholders' equity						3,980


						USIMINAS
Summarized income statement (in million $)						Six-month period ended June 30, 2021

Net sales						3,102
Cost of sales						(1,965)
Gross Profit						1,137
Selling, general and administrative expenses						(82)
Other operating income (loss), net						234
Operating income						1,289
Financial income (expenses), net						183
Equity in earnings of associated companies						17
Profit before income tax						1,489
Income tax expense						(411)
Net profit before non-controlling interest						1,078
Non-controlling interest in other subsidiaries						(121)
Net profit for the period						957


		Six-month period ended June 30,
	Notes	2021	2020
		(Unaudited)
Cash flows from operating activities
Profit for the period		1,864,932	24,220
Adjustments for:
Depreciation and amortization	7 & 8	300,379	324,692
Income tax accruals less payments		197,485	179,812
Equity in (earnings) losses of non-consolidated companies	9	(217,573)	13,582
Interest accruals less payments		2,096	3,721

Changes in provisions		6,048	(337)
Changes in working capital (1)		(1,317,992)	487,581

Net foreign exchange results and others		120,872	(86,839)

Net cash provided by operating activities		956,247	946,432

Cash flows from investing activities
Capital expenditures	7 & 8	(291,133)	(368,429)

Decrease (Increase) in other investments		173,335	(494,827)
Proceeds from the sale of property, plant and equipment		1,017	221
Dividends received from non-consolidated companies		499	—






Acquisition of non-controlling interest		(757)	(11,318)

Net cash used in investing activities		(117,039)	(874,353)

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

Finance lease payments		(22,417)	(20,355)


	Six-month period ended June 30,
	2021	2020
	(Unaudited)

Inventories at the beginning of the year	2,001,781	2,158,298




Plus: Charges for the period
Raw materials and consumables used and other movements	4,550,452	2,291,794
Services and fees	73,614	58,619
Labor cost	334,761	261,652
Depreciation of property, plant and equipment	256,011	261,984
Amortization of intangible assets	10,545	6,993
Maintenance expenses	271,337	185,491
Office expenses	3,625	2,662

Insurance	5,785	5,065
Change of obsolescence allowance	(901)	2,481
Recovery from sales of scrap and by-products	(16,397)	(10,231)
Others	8,573	8,359

Less: Inventories at the end of the period	(2,945,243)	(1,803,893)

Cost of Sales	4,553,943	3,429,274


	Six-month period ended June 30,
	2021	2020
	(Unaudited)
Services and fees	29,938	30,297
Labor cost	130,525	92,174
Depreciation of property, plant and equipment	7,656	8,062
Amortization of intangible assets	26,167	47,653
Maintenance and expenses	3,635	1,861
Taxes	74,171	39,288
Office expenses	15,040	14,413
Freight and transportation	157,995	138,816
(Decrease) Increase of allowance for doubtful accounts	(132)	1,068
Others	9,903	9,410

Selling, general and administrative expenses	454,898	383,042


	Six-month period ended June 30,
	2021	2020
	(Unaudited)
At the beginning of the year	6,504,681	6,539,581


Currency translation differences	69	(1,851)
Additions	262,672	344,435
Value adjustments of lease contracts	3,830	(9,559)
Disposals	(16,380)	(13,480)
Depreciation charge	(263,667)	(270,046)
Capitalized borrowing costs	4,873	8,089
Transfers and reclassifications	(1,796)	(455)


At the end of the period	6,494,282	6,596,714



As of June 30, 2021 (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	153,020	—	—	153,020
Derivative financial instruments	—	3,338	—	3,338
Trade receivables	1,754,168	—	—	1,754,168
Other investments	321,637	2,787	294,368	618,792
Cash and cash equivalents	479,569	288,870	252	768,691

Total	2,708,394	294,995	294,620	3,298,009

As of June 30, 2021 (in $ thousands)	Amortized cost	Liabilities at fair value through profit or loss		Total

(ii) Liabilities as per statement of financial position
Other liabilities	70,166	—		70,166
Trade payables	1,342,758	—		1,342,758
Derivative financial instruments	—	1,574		1,574
Lease liabilities	279,525	—		279,525
Borrowings	1,572,570	—		1,572,570

Total	3,265,019	1,574		3,266,593


	Fair value measurement as of June 30, 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	289,122	289,122	—	—
Other investments	297,155	294,368	—	2,787
Derivative financial instruments	3,338	—	3,338	—

Total assets	589,615	583,490	3,338	2,787

Financial liabilities at fair value through profit or loss / OCI
Derivative financial instruments	1,574	—	1,574	—

Total liabilities	1,574	—	1,574	—


	Fair value measurement as of December 31, 2020 (in $ thousands):
Description	Total	Level 1	Level 2	Level 3 (*)

Financial assets at fair value through profit or loss / OCI
Cash and cash equivalents	259,020	259,020	—	—
Other investments	236,240	233,611	—	2,629
Derivative financial instruments	1,572	—	1,572	—

Total assets	496,832	492,631	1,572	2,629

Financial liabilities at fair value through profit or loss / OCI
Derivative financial instruments	6,358	—	6,358	—

Total liabilities	6,358	—	6,358	—