Ternium S.A.

Good morning, ladies and gentlemen. Welcome to Turnium's conference call to discuss the results for the first quarter 2026. We would like to inform you that this event is being recorded and all participants will be in listen-only mode during the company's presentation. After the company's remarks are completed, there will be a question and answer session. At that time, further instructions will be given. We would like to remind you that this conference call is intended exclusively for investors and market analysts. We request that any questions from journalists be dedicated to the media relations through our website in the press section. With this, I would like now to turn the floor over to Mr. Sebastian Marti. You may proceed. Thank you.

Good morning, and thank you for joining us. My name is Sebastián Martí, and I am Turing's Global IR and Compliance Senior Director. Yesterday, we announced our financial results for the first quarter of 2026. Today's call is intended to provide additional context to that presentation. I'm joined by Máximo Bedoya, Turing's Chief Executive Officer, and Pablo Bricio, the company's Chief Financial Officer, who will discuss Turing's operating environment and performance. Following our prepared remarks, we will open up the call to your questions. 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 two 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. With that, I'll turn the call over to Mr. Bedoya.

Thank you, Sebastian. Good morning, everyone, and thank you for joining our conference call. W's margin in the first quarter continued on a recovery path reaching 12%. This improvement reflects a combination of factors. An improving market environment in Mexico, a focus on profitability over volume in Brazil, and the continued work of our teams to increase efficiency across our industrial operations. In Mexico, apparent steel consumption fell around 10% in 2025, driven by uncertainty triggered by U.S. trade actions. In 2026, however, we see an improvement. The Mexican government has been actively working to mitigate the negative effects of US trade measures on the Mexican economy by defending the local industry against unfair imports from Asia. These actions not only support the continued development of the Mexican industry, but are closely aligned with the US government's own trade strategy. Plan Mexico is also central to this effort. It promotes industrial development, increased domestic content in manufacturing, and strengthens regional supply chains. In this same line, last week, the steel industry and the Mexican government signed a landmark agreement to prioritize domestically produced steel in all public procurements, a clear sign of the opportunity ahead. Taken together, These policies support our expectation of a recovery in Mexican steel demand. In this context, we expect volumes in Mexico to continue improving in the second quarter, driven mainly by the commercial market. The significant stocking that took place across the value chain in 2025 is now giving way to a normalization of apparent demand. Beyond that, we are seeing early movements in several infrastructure projects, which could add meaningful demand in the coming orders. Turning to our pesquería project in Mexico, the ramp-up curve of the cold rolling mill and the galvanizing line are running ahead of plan. We expect both lines to be operating close to a full capacity by October. The slab facility is also advancing in line with expectation. This project is central to our strategy. It will significantly increase our vertical integration in Mexico, reduce our resilience on externally sourced slabs, and enhance our product capabilities across automotive, industrial, and construction applications. Importantly, as the automotive USMCA rule of origin enters into effect next year, this facility will position Ternium as a key player in meeting a growing demand. In this respect, I am pleased to share that we have been granted a patent in the United States for our new electrical steelmaking process, which will enable us to produce exposed built at scale. This innovation leverages the integration of direct reduction at the same site. In addition, innovations such as virtual stamping solution, which utilizes artificial intelligence to streamline certification process for the automotive industry, enforcing our drive for operational excellence. This commitment continues to be recognized by our customers. In February, we were honored by Ariston Group with the Strategic Ponding Award, the highest recognition for quality and partnership. And in April, Tarnio Mexico received the 2025 John Deere Crop Award and achieved the ponding level, John Deere's highest distinction for cost efficiency. effective, and long-term collaboration. Brazil's steel consumption remains broadly stable, with some sectors showing resilience and others facing more pressure. The automotive industry continues to perform well, with production expected to grow around 4% this year. On the other hand, sectors like agribusiness has been weakened We have seen weaker demand. A key challenge in the quarter was a significant increase in steel imports, up around 30% versus the previous quarter. Imports accelerated ahead of the government's anti-dumping measures on coal-rollet and coal-fit products. This has resulted in elevated inventory levels of imported material in the market, which we expect to normalize by the second half of the year. These trade defenses measure gain traction and inventories level normalized. We expect the CEMINA's market share to improve. However, it is also worth noting that import pressure is not limited to China. Volumes from Southeast Asia, particularly South Korea and Vietnam, have increased significantly, reflecting the rather indirect effects of China oversupply on the region's trade flow. In March... We were honored to welcome President Lula to the official inauguration of the Roberto Roca Technical School located near our Rio de Janeiro plant. The school provides full-funded technical education to young people from the surrounding communities, offering them access to a world-class education. Built with an investment of $50 million, we expect to welcome close to 600 students by next year. In Argentina, a 2024 record, one of the lowest deal consumption levels in two decades, the market began to recover in 2025. However, 2026 did not start as we had expected. Demand is growing unequally. Mining, energy, and agriculture are performing well. Automate remains at reasonable levels. Constructions remain soft. Metal, mechanical, and home appliance sectors are lagging, affected by weak domestic consumption. I bring my remarks to a close. I am pleased to share that Ternium has once again been recognized as a sustainability champion by the World Steel Association. This recognition is granted to companies that innate sustainability into their core strategy, combining environmental management, safety performance, innovation, and responsible community engagements. Looking ahead, We are constructive on our market and our ability to continue improving performance. In Mexico, the combination of normalizing demand, supportive industrial policies, and the ramp-up of our downstream projects position us well for the quarters ahead. In Brazil, as trade defenses measures gain traction and imports inventory normalize, we expect to see a healthy competitive environment. In Argentina, we continue to monitor the recovery closely while maintaining our operational discipline. Across all our operations, our team remains focused on driving efficiency and lowering costs, and we are already seeing the benefits. For all, the recognition we continue to receive from our customers reflects the quality of what we are doing every day. We are confident in Sterling's ability to deliver even stronger performance in the periods ahead. With that, I'd like to move to a review of our quarterly performance. Pablo, please go ahead.