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Name | Symbol | Market | Type |
---|---|---|---|
Ternium SA | NYSE:TX | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 40.51 | 0 | 12:00:02 |
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 September 30, 2019
|
|
and for the nine-month periods
|
|
ended on September 30, 2019 and 2018
|
|
|
|
29 Avenue de la Porte-Neuve, 3rd floor
|
|
L – 2227
|
|
R.C.S. Luxembourg: B 98 668
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
|
Page
|
|
|
|
|
2
|
||
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
|
9
|
3
|
Segment information
|
10
|
4
|
Cost of sales
|
12
|
5
|
Selling, general and administrative expenses
|
13
|
6
|
Finance expense, Finance income and Other financial income (expenses), net
|
13
|
7
|
Property, plant and equipment, net
|
13
|
8
|
Intangible assets, net
|
14
|
9
|
Investments in non-consolidated companies
|
14
|
10
|
Distribution of dividends
|
16
|
11
|
Contingencies, commitments and restrictions on the distribution of profits
|
16
|
12
|
Related party transactions
|
20
|
13
|
Financial instruments by category and fair value measurement
|
21
|
14
|
Changes in accounting policies
|
22
|
|
|
|
|
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
||
(All amounts in USD thousands)
|
|
|
|
|
|
|
Three-month period ended
September 30, |
|
Nine-month period ended
September 30, |
||||||||
|
|
Notes
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||
Net sales
|
|
3
|
|
2,419,500
|
|
|
2,999,231
|
|
|
7,853,448
|
|
|
8,818,677
|
|
Cost of sales
|
|
3 & 4
|
|
(1,994,086
|
)
|
|
(2,078,290
|
)
|
|
(6,436,068
|
)
|
|
(6,423,453
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Gross profit
|
|
3
|
|
425,414
|
|
|
920,941
|
|
|
1,417,380
|
|
|
2,395,224
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general and administrative expenses
|
|
3 & 5
|
|
(208,303
|
)
|
|
(216,917
|
)
|
|
(663,744
|
)
|
|
(674,739
|
)
|
Other operating income (expenses), net
|
|
3
|
|
7,258
|
|
|
4,909
|
|
|
13,301
|
|
|
5,188
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating income
|
|
3
|
|
224,368
|
|
|
708,933
|
|
|
766,937
|
|
|
1,725,673
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Finance expense
|
|
6
|
|
(25,353
|
)
|
|
(40,113
|
)
|
|
(66,253
|
)
|
|
(101,558
|
)
|
Finance income
|
|
6
|
|
8,890
|
|
|
5,104
|
|
|
21,164
|
|
|
15,391
|
|
Other financial income (expenses), net
|
|
6
|
|
(15,637
|
)
|
|
(54,890
|
)
|
|
(17,205
|
)
|
|
(154,150
|
)
|
Equity in earnings (losses) of non-consolidated companies
|
|
9
|
|
1,872
|
|
|
22,594
|
|
|
37,079
|
|
|
54,943
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Profit before income tax expense
|
|
|
|
194,141
|
|
|
641,628
|
|
|
741,722
|
|
|
1,540,299
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Income tax expense
|
|
|
|
(83,504
|
)
|
|
(80,849
|
)
|
|
(198,521
|
)
|
|
(313,601
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Profit for the period
|
|
|
|
110,637
|
|
|
560,779
|
|
|
543,201
|
|
|
1,226,698
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
||||
Owners of the parent
|
|
|
|
94,502
|
|
|
523,555
|
|
|
497,609
|
|
|
1,156,086
|
|
Non-controlling interest
|
|
|
|
16,135
|
|
|
37,224
|
|
|
45,592
|
|
|
70,612
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Profit for the period
|
|
|
|
110,637
|
|
|
560,779
|
|
|
543,201
|
|
|
1,226,698
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
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 (losses) per share for profit (loss) attributable to the equity holders of the company (expressed in USD per share)
|
|
|
|
0.05
|
|
|
0.27
|
|
|
0.25
|
|
|
0.59
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
||
(All amounts in USD thousands)
|
|
|
|
|
Three-month period ended September 30,
|
|
Nine-month period ended
September 30, |
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
|
|
(Unaudited)
|
|
(Unaudited)
|
||||||||
Profit for the period
|
|
110,637
|
|
|
560,779
|
|
|
543,201
|
|
|
1,226,698
|
|
|
|
|
|
|
|
|
|
|
||||
Items that may be reclassified subsequently to profit or loss:
|
|
|
|
|
|
|
|
|
||||
Currency translation adjustment (see note 2)
|
|
(244,667
|
)
|
|
(162,828
|
)
|
|
(129,555
|
)
|
|
(423,705
|
)
|
Currency translation adjustment from participation in non-consolidated companies
|
|
(41,601
|
)
|
|
(16,372
|
)
|
|
(36,206
|
)
|
|
(87,314
|
)
|
Changes in the fair value of financial instruments at fair value through other comprehensive income
|
|
(1,019
|
)
|
|
(127
|
)
|
|
(974
|
)
|
|
(1,067
|
)
|
Income tax related to financial instruments at fair value
|
|
—
|
|
|
31
|
|
|
—
|
|
|
142
|
|
Changes in the fair value of derivatives classified as cash flow hedges
|
|
(87
|
)
|
|
50
|
|
|
(790
|
)
|
|
293
|
|
Income tax related to cash flow hedges
|
|
26
|
|
|
(15
|
)
|
|
237
|
|
|
(200
|
)
|
Other comprehensive income items
|
|
(22
|
)
|
|
—
|
|
|
(22
|
)
|
|
(305
|
)
|
Other comprehensive income items from participation in non-consolidated companies
|
|
(87
|
)
|
|
13
|
|
|
(18
|
)
|
|
498
|
|
Items that will not be reclassified subsequently to profit or loss:
|
|
|
|
|
|
|
|
|
||||
Remeasurement of post employment benefit obligations
|
|
—
|
|
|
—
|
|
|
(416
|
)
|
|
1,099
|
|
Income tax relating to remeasurement of post employment benefit obligations
|
|
—
|
|
|
—
|
|
|
63
|
|
|
(297
|
)
|
Remeasurement of post employment benefit obligations from participation in non-consolidated companies
|
|
270
|
|
|
(1,612
|
)
|
|
(971
|
)
|
|
(3,444
|
)
|
|
|
|
|
|
|
|
|
|
||||
Other comprehensive income (loss) for the period, net of tax
|
|
(287,187
|
)
|
|
(180,860
|
)
|
|
(168,652
|
)
|
|
(514,300
|
)
|
|
|
|
|
|
|
|
|
|
||||
Total comprehensive income (loss) for the period
|
|
(176,550
|
)
|
|
379,919
|
|
|
374,549
|
|
|
712,398
|
|
|
|
|
|
|
|
|
|
|
||||
Attributable to:
|
|
|
|
|
|
|
|
|
||||
Owners of the parent
|
|
(102,767
|
)
|
|
435,192
|
|
|
372,489
|
|
|
812,281
|
|
Non-controlling interest
|
|
(73,783
|
)
|
|
(55,274
|
)
|
|
2,060
|
|
|
(99,883
|
)
|
|
|
|
|
|
|
|
|
|
||||
Total comprehensive income (loss) for the period
|
|
(176,550
|
)
|
|
379,919
|
|
|
374,549
|
|
|
712,398
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
||
(All amounts in USD thousands)
|
|
|
|
|
|
|
Balances as of
|
||||||||||
|
|
Notes
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||
|
|
|
|
(Unaudited)
|
|
|
|
|
||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
|
||||
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
||||
Property, plant and equipment, net
|
|
7
|
|
6,295,826
|
|
|
|
|
5,817,609
|
|
|
|
||
Intangible assets, net
|
|
8
|
|
944,996
|
|
|
|
|
1,012,524
|
|
|
|
||
Investments in non-consolidated companies
|
|
9
|
|
494,415
|
|
|
|
|
495,241
|
|
|
|
||
Other investments
|
|
|
|
4,134
|
|
|
|
|
7,195
|
|
|
|
||
Derivative financial instruments
|
|
|
|
—
|
|
|
|
|
818
|
|
|
|
||
Deferred tax assets
|
|
|
|
128,471
|
|
|
|
|
134,224
|
|
|
|
||
Receivables, net
|
|
|
|
569,910
|
|
|
|
|
649,447
|
|
|
|
||
Trade receivables, net
|
|
|
|
1,784
|
|
|
8,439,536
|
|
|
4,766
|
|
|
8,121,824
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
|
||||
Receivables, net
|
|
|
|
375,005
|
|
|
|
|
309,750
|
|
|
|
||
Derivative financial instruments
|
|
|
|
4,705
|
|
|
|
|
770
|
|
|
|
||
Inventories, net
|
|
|
|
2,336,275
|
|
|
|
|
2,689,829
|
|
|
|
||
Trade receivables, net
|
|
|
|
994,774
|
|
|
|
|
1,128,470
|
|
|
|
||
Other investments
|
|
|
|
214,041
|
|
|
|
|
44,529
|
|
|
|
||
Cash and cash equivalents
|
|
|
|
637,669
|
|
|
4,562,469
|
|
|
250,541
|
|
|
4,423,889
|
|
Non-current assets classified as held for sale
|
|
|
|
|
|
2,069
|
|
|
|
|
2,149
|
|
||
|
|
|
|
|
|
4,564,538
|
|
|
|
|
4,426,038
|
|
||
Total Assets
|
|
|
|
|
|
13,004,074
|
|
|
|
|
12,547,862
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
EQUITY
|
|
|
|
|
|
|
|
|
|
|
||||
Capital and reserves attributable to the owners of the parent
|
|
|
|
|
|
6,536,301
|
|
|
|
|
6,393,255
|
|
||
Non-controlling interest
|
|
|
|
|
|
1,058,496
|
|
|
|
|
1,091,321
|
|
||
Total Equity
|
|
|
|
|
|
7,594,797
|
|
|
|
|
7,484,576
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
||||
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
||||
Provisions
|
|
|
|
593,918
|
|
|
|
|
643,950
|
|
|
|
||
Deferred tax liabilities
|
|
|
|
445,462
|
|
|
|
|
474,431
|
|
|
|
||
Other liabilities
|
|
|
|
424,692
|
|
|
|
|
414,541
|
|
|
|
||
Trade payables
|
|
|
|
947
|
|
|
|
|
935
|
|
|
|
||
Derivative financial instruments
|
|
|
|
86
|
|
|
|
|
—
|
|
|
|
||
Lease liabilities
|
|
14
|
|
279,269
|
|
|
|
|
65,798
|
|
|
|
||
Borrowings
|
|
|
|
1,751,299
|
|
|
3,495,673
|
|
|
1,637,101
|
|
|
3,236,756
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
||||
Current income tax liabilities
|
|
|
|
32,377
|
|
|
|
|
150,276
|
|
|
|
||
Other liabilities
|
|
|
|
295,348
|
|
|
|
|
351,216
|
|
|
|
||
Trade payables
|
|
|
|
918,369
|
|
|
|
|
904,171
|
|
|
|
||
Derivative financial instruments
|
|
|
|
5,693
|
|
|
|
|
12,981
|
|
|
|
||
Lease liabilities
|
|
14
|
|
46,326
|
|
|
|
|
8,030
|
|
|
|
||
Borrowings
|
|
|
|
615,491
|
|
|
1,913,604
|
|
|
399,856
|
|
|
1,826,530
|
|
Total Liabilities
|
|
|
|
|
|
5,409,277
|
|
|
|
|
5,063,286
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||||
Total Equity and Liabilities
|
|
|
|
|
|
13,004,074
|
|
|
|
|
12,547,862
|
|
TERNIUM S.A.
|
||
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
||
(All amounts in USD thousands)
|
|
|
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, 2019
|
|
2,004,743
|
|
(150,000
|
)
|
(23,295
|
)
|
1,385,701
|
|
(2,324,866
|
)
|
(2,702,477
|
)
|
8,203,449
|
|
6,393,255
|
|
|
1,091,321
|
|
|
7,484,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Profit for the period
|
|
|
|
|
|
|
|
497,609
|
|
497,609
|
|
|
45,592
|
|
|
543,201
|
|
||||||
Other comprehensive income (loss) for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency translation adjustment
|
|
|
|
|
|
|
(122,530
|
)
|
|
(122,530
|
)
|
|
(43,231
|
)
|
|
(165,761
|
)
|
||||||
Remeasurement of post employment benefit obligations
|
|
|
|
|
(1,270
|
)
|
|
|
|
(1,270
|
)
|
|
(54
|
)
|
|
(1,324
|
)
|
||||||
Cash flow hedges and others, net of tax
|
|
|
|
|
(282
|
)
|
|
|
|
(282
|
)
|
|
(271
|
)
|
|
(553
|
)
|
||||||
Others
|
|
|
|
|
(1,038
|
)
|
|
|
|
(1,038
|
)
|
|
24
|
|
|
(1,014
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total comprehensive income (loss) for the period
|
|
—
|
|
—
|
|
—
|
|
(2,590
|
)
|
—
|
|
(122,530
|
)
|
497,609
|
|
372,489
|
|
|
2,060
|
|
|
374,549
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid in cash (5)
|
|
|
|
|
|
|
|
(235,569
|
)
|
(235,569
|
)
|
|
—
|
|
|
(235,569
|
)
|
||||||
Dividends paid in cash to non-controlling interest
|
|
|
|
|
|
|
|
|
—
|
|
|
(24,546
|
)
|
|
(24,546
|
)
|
|||||||
Acquisition of non-controlling interest (6)
|
|
|
|
|
6,126
|
|
|
|
|
6,126
|
|
|
(10,339
|
)
|
|
(4,213
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance as of September 30, 2019 (unaudited)
|
|
2,004,743
|
|
(150,000
|
)
|
(23,295
|
)
|
1,389,237
|
|
(2,324,866
|
)
|
(2,825,007
|
)
|
8,465,489
|
|
6,536,301
|
|
|
1,058,496
|
|
|
7,594,797
|
|
TERNIUM S.A.
|
||
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
||
(All amounts in USD thousands)
|
|
|
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, 2018
|
|
2,004,743
|
|
(150,000
|
)
|
(23,295
|
)
|
1,416,121
|
|
(2,324,866
|
)
|
(2,403,664
|
)
|
6,491,385
|
|
5,010,424
|
|
|
842,347
|
|
|
5,852,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Impact of adopting IFRS 9 at January 1, 2018
|
|
—
|
|
—
|
|
—
|
|
450
|
|
—
|
|
—
|
|
(147
|
)
|
303
|
|
|
204
|
|
|
507
|
|
Impact of adopting IAS 29 at January 1, 2018
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
421,502
|
|
421,502
|
|
|
268,824
|
|
|
690,326
|
|
Adjusted Balance at January 1, 2018
|
|
2,004,743
|
|
(150,000
|
)
|
(23,295
|
)
|
1,416,571
|
|
(2,324,866
|
)
|
(2,403,664
|
)
|
6,912,740
|
|
5,432,229
|
|
|
1,111,375
|
|
|
6,543,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Profit for the period
|
|
|
|
|
|
|
|
1,156,086
|
|
1,156,086
|
|
|
70,612
|
|
|
1,226,698
|
|
||||||
Other comprehensive income (loss) for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency translation adjustment
|
|
|
|
|
|
|
(340,597
|
)
|
|
(340,597
|
)
|
|
(170,422
|
)
|
|
(511,019
|
)
|
||||||
Remeasurement of post employment benefit obligations
|
|
|
|
|
(2,501
|
)
|
|
|
|
(2,501
|
)
|
|
(141
|
)
|
|
(2,642
|
)
|
||||||
Cash flow hedges, net of tax
|
|
|
|
|
(136
|
)
|
|
|
|
(136
|
)
|
|
229
|
|
|
93
|
|
||||||
Others
|
|
|
|
|
(571
|
)
|
|
|
|
(571
|
)
|
|
(161
|
)
|
|
(732
|
)
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total comprehensive income (loss) for the period
|
|
—
|
|
—
|
|
—
|
|
(3,208
|
)
|
—
|
|
(340,597
|
)
|
1,156,086
|
|
812,281
|
|
|
(99,883
|
)
|
|
712,398
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividends paid in cash
|
|
|
|
|
|
|
|
(215,938
|
)
|
(215,938
|
)
|
|
—
|
|
|
(215,938
|
)
|
||||||
Dividends paid in cash to non-controlling interest
|
|
|
|
|
|
|
|
|
—
|
|
|
(20,940
|
)
|
|
(20,940
|
)
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance as of September 30, 2018 (unaudited)
|
|
2,004,743
|
|
(150,000
|
)
|
(23,295
|
)
|
1,413,363
|
|
(2,324,866
|
)
|
(2,744,262
|
)
|
7,852,888
|
|
6,028,572
|
|
|
990,553
|
|
|
7,019,124
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
||
(All amounts in USD thousands)
|
|
|
|
|
Nine- month period ended September 30,
|
||||
|
|
Notes
|
|
2019
|
|
2018
|
||
|
|
|
|
(Unaudited)
|
||||
Cash flows from operating activities
|
|
|
|
|
|
|
||
Profit for the period
|
|
|
|
543,201
|
|
|
1,226,698
|
|
Adjustments for:
|
|
|
|
|
|
|
||
Depreciation and amortization
|
|
7 & 8
|
|
484,269
|
|
|
459,175
|
|
Income tax accruals less payments
|
|
|
|
(181,667
|
)
|
|
(76,347
|
)
|
Equity in earnings of non-consolidated companies
|
|
9
|
|
(37,079
|
)
|
|
(54,943
|
)
|
Interest accruals less payments
|
|
|
|
10,551
|
|
|
(12,956
|
)
|
Changes in provisions
|
|
|
|
(2,271
|
)
|
|
1,347
|
|
Changes in working capital (1)
|
|
|
|
414,792
|
|
|
(341,041
|
)
|
Net foreign exchange results and others
|
|
|
|
30,003
|
|
|
(19,342
|
)
|
Net cash provided by operating activities
|
|
|
|
1,261,799
|
|
|
1,182,591
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
||
Capital expenditures
|
|
7 & 8
|
|
(748,375
|
)
|
|
(346,482
|
)
|
Recovery/(Loans) to non-consolidated companies
|
|
|
|
24,480
|
|
|
(24,480
|
)
|
(Increase) Decrease in other investments
|
|
|
|
(166,451
|
)
|
|
58,643
|
|
Proceeds from the sale of property, plant and equipment
|
|
|
|
512
|
|
|
607
|
|
Acquisition of non-controlling interest
|
|
|
|
(4,213
|
)
|
|
—
|
|
Net cash used in investing activities
|
|
|
|
(894,047
|
)
|
|
(311,712
|
)
|
Cash flows from financing activities
|
|
|
|
|
|
|
||
Dividends paid in cash to company’s shareholders
|
|
10
|
|
(235,569
|
)
|
|
(215,938
|
)
|
Dividends paid in cash to non-controlling interest
|
|
|
|
(24,546
|
)
|
|
(20,940
|
)
|
Finance lease payments
|
|
|
|
(36,155
|
)
|
|
(5,006
|
)
|
Proceeds from borrowings
|
|
|
|
1,133,000
|
|
|
1,105,203
|
|
Repayments of borrowings
|
|
|
|
(802,045
|
)
|
|
(1,648,233
|
)
|
Net cash provided by (used in) financing activities
|
|
|
|
34,685
|
|
|
(784,914
|
)
|
Increase in cash and cash equivalents
|
|
|
|
402,437
|
|
|
85,965
|
|
Movement in cash and cash equivalents
|
|
|
|
|
|
|
||
At January 1,
|
|
|
|
250,541
|
|
|
337,779
|
|
Effect of exchange rate changes and inflation adjustment
|
|
|
|
(15,309
|
)
|
|
(24,683
|
)
|
Increase in cash and cash equivalents
|
|
|
|
402,437
|
|
|
85,965
|
|
Cash and cash equivalents as of September 30, (2)
|
|
|
|
637,669
|
|
|
399,061
|
|
|
|
|
|
|
|
|
||
Non-cash transactions:
|
|
|
|
|
|
|
||
Acquisition of PP&E under lease contract agreements
|
|
|
|
3,048
|
|
|
—
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
1.
|
GENERAL INFORMATION AND BASIS OF PRESENTATION
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
|
|
Nine- month period ended September 30, 2019 (Unaudited)
|
||||||||||
|
|
Steel
|
|
Mining
|
|
Inter-segment eliminations
|
|
Total
|
||||
IFRS
|
|
|
|
|
|
|
|
|
||||
Net sales
|
|
7,853,420
|
|
|
264,300
|
|
|
(264,272
|
)
|
|
7,853,448
|
|
Cost of sales
|
|
(6,513,955
|
)
|
|
(186,194
|
)
|
|
264,081
|
|
|
(6,436,068
|
)
|
Gross profit
|
|
1,339,465
|
|
|
78,107
|
|
|
(191
|
)
|
|
1,417,380
|
|
Selling, general and administrative expenses
|
|
(652,372
|
)
|
|
(11,372
|
)
|
|
—
|
|
|
(663,744
|
)
|
Other operating income, net
|
|
13,730
|
|
|
(429
|
)
|
|
—
|
|
|
13,301
|
|
Operating income - IFRS
|
|
700,823
|
|
|
66,305
|
|
|
(191
|
)
|
|
766,937
|
|
Management view
|
|
|
|
|
|
|
|
|
||||
Net sales
|
|
8,003,009
|
|
|
335,128
|
|
|
(335,100
|
)
|
|
8,003,037
|
|
Operating income
|
|
691,078
|
|
|
140,851
|
|
|
(191
|
)
|
|
831,738
|
|
Reconciliation items:
|
|
|
|
|
|
|
|
|
||||
Differences in Cost of sales
|
|
|
|
|
|
|
|
104,493
|
|
|||
Effect of inflation adjustment (1)
|
|
|
|
|
|
|
|
(169,295
|
)
|
|||
Operating income - IFRS
|
|
|
|
|
|
|
|
766,937
|
|
|||
Financial income (expense), net
|
|
|
|
|
|
|
|
(62,294
|
)
|
|||
Equity in earnings of non-consolidated companies
|
|
|
|
|
|
|
|
37,079
|
|
|||
Income before income tax expense - IFRS
|
|
|
|
|
|
|
|
741,722
|
|
|||
Depreciation and amortization - IFRS (2)
|
|
(448,838
|
)
|
|
(35,431
|
)
|
|
—
|
|
|
(484,269
|
)
|
|
|
Nine- month period ended September 30, 2018 (Unaudited)
|
||||||||||
|
|
Steel
|
|
Mining
|
|
Inter-segment eliminations
|
|
Total
|
||||
IFRS
|
|
|
|
|
|
|
|
|
||||
Net sales
|
|
8,817,699
|
|
|
210,114
|
|
|
(209,136
|
)
|
|
8,818,677
|
|
Cost of sales
|
|
(6,466,835
|
)
|
|
(169,967
|
)
|
|
213,349
|
|
|
(6,423,453
|
)
|
Gross profit
|
|
2,350,864
|
|
|
40,147
|
|
|
4,213
|
|
|
2,395,224
|
|
Selling, general and administrative expenses
|
|
(662,768
|
)
|
|
(11,971
|
)
|
|
—
|
|
|
(674,739
|
)
|
Other operating income, net
|
|
4,479
|
|
|
709
|
|
|
—
|
|
|
5,188
|
|
Operating income - IFRS
|
|
1,692,575
|
|
|
28,885
|
|
|
4,213
|
|
|
1,725,673
|
|
Management view
|
|
|
|
|
|
|
|
|
||||
Net sales
|
|
9,096,614
|
|
|
254,032
|
|
|
(253,054
|
)
|
|
9,097,593
|
|
Operating income
|
|
1,480,006
|
|
|
81,441
|
|
|
(10,932
|
)
|
|
1,550,515
|
|
Reconciliation items:
|
|
|
|
|
|
|
|
|
||||
Differences in Cost of sales
|
|
|
|
|
|
|
|
392,974
|
|
|||
Effect of inflation adjustment
|
|
|
|
|
|
|
|
(217,813
|
)
|
|||
Operating income - IFRS
|
|
|
|
|
|
|
|
1,725,673
|
|
|||
Financial income (expense), net
|
|
|
|
|
|
|
|
(240,317
|
)
|
|||
Equity in earnings of non-consolidated companies
|
|
|
|
|
|
|
|
54,943
|
|
|||
Income before income tax expense - IFRS
|
|
|
|
|
|
|
|
1,540,299
|
|
|||
Depreciation and amortization - IFRS
|
|
(419,204
|
)
|
|
(39,971
|
)
|
|
—
|
|
|
(459,175
|
)
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
|
|
Nine- month period ended September 30, 2019 (Unaudited)
|
||||||||||
|
|
Mexico
|
|
Southern region
|
|
Other markets
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
||||
Net sales
|
|
4,261,739
|
|
|
1,174,028
|
|
|
2,417,681
|
|
|
7,853,448
|
|
|
|
|
|
|
|
|
|
|
||||
Non-current assets (1)
|
|
4,392,800
|
|
|
954,767
|
|
|
1,893,255
|
|
|
7,240,822
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Nine- month period ended September 30, 2018 (Unaudited)
|
||||||||||
|
|
Mexico
|
|
Southern region
|
|
Other markets
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
||||
Net sales
|
|
4,872,618
|
|
|
1,464,178
|
|
|
2,481,881
|
|
|
8,818,677
|
|
|
|
|
|
|
|
|
|
|
||||
Non-current assets (1)
|
|
4,042,274
|
|
|
1,001,568
|
|
|
1,665,260
|
|
|
6,709,102
|
|
|
|
|
|
|
|
|
|
|
||||
(1) Includes Property, plant and equipment and Intangible assets.
|
|
|
|
|
4.
|
COST OF SALES
|
|
|
Nine- month period ended September 30,
|
||||
|
|
2019
|
|
2018
|
||
|
|
(Unaudited)
|
||||
Inventories at the beginning of the year
|
|
2,689,829
|
|
|
2,550,930
|
|
Effect of initial inflation adjustment
|
|
—
|
|
|
191,708
|
|
Translation differences
|
|
(67,436
|
)
|
|
(454,874
|
)
|
Plus: Charges for the period
|
|
|
|
|
||
Raw materials and consumables used and
other movements |
|
4,816,111
|
|
|
5,478,464
|
|
Services and fees
|
|
115,171
|
|
|
119,652
|
|
Labor cost
|
|
459,830
|
|
|
529,510
|
|
Depreciation of property, plant and equipment
|
|
371,765
|
|
|
342,478
|
|
Amortization of intangible assets
|
|
13,553
|
|
|
20,152
|
|
Maintenance expenses
|
|
355,659
|
|
|
376,171
|
|
Office expenses
|
|
6,136
|
|
|
6,301
|
|
Insurance
|
|
7,219
|
|
|
6,425
|
|
Change of obsolescence allowance
|
|
9,022
|
|
|
6,426
|
|
Recovery from sales of scrap and by-products
|
|
(17,044
|
)
|
|
(22,326
|
)
|
Others
|
|
12,528
|
|
|
11,667
|
|
Less: Inventories at the end of the period
|
|
(2,336,275
|
)
|
|
(2,739,231
|
)
|
Cost of Sales
|
|
6,436,068
|
|
|
6,423,453
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
5.
|
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
|
Nine- month period ended September 30,
|
||
|
2019
|
|
2018
|
|
(Unaudited)
|
||
Services and fees
|
55,355
|
|
54,321
|
Labor cost
|
162,524
|
|
185,198
|
Depreciation of property, plant and equipment
|
11,950
|
|
10,145
|
Amortization of intangible assets
|
87,001
|
|
86,401
|
Maintenance and expenses
|
3,796
|
|
4,076
|
Taxes
|
73,066
|
|
68,006
|
Office expenses
|
26,006
|
|
27,842
|
Freight and transportation
|
233,349
|
|
227,418
|
Increase (decrease) of allowance for doubtful accounts
|
(335)
|
|
1,070
|
Others
|
11,032
|
|
10,262
|
Selling, general and administrative expenses
|
663,744
|
|
674,739
|
6.
|
FINANCE EXPENSE, FINANCE INCOME AND OTHER FINANCIAL INCOME (EXPENSES), NET
|
|
Nine- month period ended September 30,
|
||||
|
2019
|
|
2018
|
||
|
(Unaudited)
|
||||
Interest expense
|
(66,253
|
)
|
|
(101,558
|
)
|
|
|
|
|
||
Finance expense
|
(66,253
|
)
|
|
(101,558
|
)
|
|
|
|
|
||
Interest income
|
21,164
|
|
|
15,391
|
|
|
|
|
|
||
Finance income
|
21,164
|
|
|
15,391
|
|
|
|
|
|
||
Net foreign exchange gain (loss)
|
(92,188
|
)
|
|
(207,348
|
)
|
Inflation adjustment results
|
91,620
|
|
|
146,371
|
|
Derivative contract results
|
(10,683
|
)
|
|
(103,055
|
)
|
Others
|
(5,954
|
)
|
|
9,882
|
|
|
|
|
|
||
Other financial income (expenses), net
|
(17,205
|
)
|
|
(154,150
|
)
|
|
Nine- month period ended September 30,
|
||||
|
2019
|
|
2018
|
||
|
(Unaudited)
|
||||
At the beginning of the year
|
5,817,609
|
|
|
5,349,753
|
|
|
|
|
|
||
Effect of initial inflation adjustment
|
—
|
|
|
788,030
|
|
Effect of initial recognition of right-of-use assets
|
280,493
|
|
|
—
|
|
Currency translation differences
|
(111,849
|
)
|
|
(389,266
|
)
|
Additions
|
703,644
|
|
|
323,020
|
|
Disposals
|
(22,026
|
)
|
|
(17,589
|
)
|
Depreciation charge
|
(383,715
|
)
|
|
(352,623
|
)
|
Capitalized borrowing costs
|
12,955
|
|
|
—
|
|
Transfers and reclassifications
|
(1,285
|
)
|
|
(246
|
)
|
At the end of the period
|
6,295,826
|
|
|
5,701,079
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
|
Nine- month period ended September 30,
|
||||
|
2019
|
|
2018
|
||
|
(Unaudited)
|
||||
At the beginning of the year
|
1,012,524
|
|
|
1,092,579
|
|
|
|
|
|
||
Effect of initial inflation adjustment
|
—
|
|
|
4,966
|
|
Currency translation differences
|
(1,417)
|
|
|
(6,677)
|
|
Additions
|
34,823
|
|
|
23,462
|
|
Amortization charge
|
(100,554)
|
|
|
(106,553)
|
|
Transfers/Disposals
|
(380)
|
|
|
245
|
|
At the end of the period
|
944,996
|
|
|
1,008,022
|
|
9.
|
INVESTMENTS IN NON-CONSOLIDATED COMPANIES
|
Company
|
|
Country of incorporation
|
|
Main activity
|
|
Voting rights as of
|
|
Value as of
|
||||
|
|
|
September 30, 2019
|
|
December 31, 2018
|
|
September 30, 2019
|
|
December 31, 2018
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS
|
|
Brazil
|
|
Manufacturing and selling of steel products
|
|
34.39%
|
|
34.39%
|
|
471,517
|
|
480,084
|
Other non-consolidated companies (1)
|
|
|
|
|
|
|
|
|
|
22,898
|
|
15,157
|
|
|
|
|
|
|
|
|
|
|
494,415
|
|
495,241
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
9.
|
INVESTMENTS IN NON-CONSOLIDATED COMPANIES (continued)
|
Value of investment
|
|
USIMINAS
|
|
|
|
|
|
As of January 1, 2019
|
|
480,084
|
|
Share of results (1)
|
|
28,660
|
|
Other comprehensive income
|
|
(36,649
|
)
|
Dividends received
|
|
(578
|
)
|
|
|
|
|
As of September 30, 2019
|
|
471,517
|
|
|
|
|
|
(1) It includes the adjustment of the values associated to the purchase price allocation.
|
Usiminas' shareholders' equity
|
|
3,418,572
|
|
Percentage of interest of the Company over shareholders' equity
|
|
20.43
|
%
|
|
|
|
|
Interest of the Company over shareholders' equity
|
|
698,172
|
|
|
|
|
|
Purchase price allocation
|
|
72,387
|
|
Goodwill
|
|
249,600
|
|
Impairment
|
|
(548,642
|
)
|
|
|
|
|
Total Investment in Usiminas
|
|
471,517
|
|
|
|
USIMINAS
|
Summarized balance sheet (in million USD)
|
|
As of September 30, 2019
|
Assets
|
|
|
Non-current
|
|
4,145
|
Current
|
|
1,904
|
Other current investments
|
|
220
|
Cash and cash equivalents
|
|
218
|
|
|
|
Total Assets
|
|
6,487
|
Liabilities
|
|
|
Non-current
|
|
557
|
Non-current borrowings
|
|
1,339
|
Current
|
|
740
|
Current borrowings
|
|
66
|
|
|
|
Total Liabilities
|
|
2,702
|
|
|
|
Minority interest
|
|
366
|
|
|
|
Shareholders' equity
|
|
3,419
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
9.
|
INVESTMENTS IN NON-CONSOLIDATED COMPANIES (continued)
|
|
|
USIMINAS
|
Summarized income statement (in million USD)
|
|
Nine- month period ended September 30, 2019
|
|
|
|
Net sales
|
|
2,849
|
Cost of sales
|
|
(2,443)
|
Gross Profit
|
|
406
|
Selling, general and administrative expenses
|
|
(134)
|
Other operating income, net
|
|
(110)
|
Operating income
|
|
162
|
Financial expenses, net
|
|
(169)
|
Equity in earnings of associated companies
|
|
34
|
Profit before income tax
|
|
27
|
Income tax expense
|
|
2
|
Net profit before minority interest
|
|
29
|
Minority interest in other subsidiaries
|
|
(29)
|
Net profit for the period
|
|
0
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
11.
|
CONTINGENCIES, COMMITMENTS AND RESTRICTIONS ON THE DISTRIBUTION OF PROFITS (continued)
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
|
Nine-month period ended
September 30, |
||||
|
2019
|
|
2018
|
||
|
(Unaudited)
|
||||
(i) Transactions
|
|
|
|
||
(a) Sales of goods and services
|
|
|
|
||
Sales of goods to non-consolidated parties
|
439,437
|
|
|
602,794
|
|
Sales of goods to other related parties
|
68,118
|
|
|
131,291
|
|
Sales of services and others to non-consolidated parties
|
130
|
|
|
132
|
|
Sales of services and others to other related parties
|
687
|
|
|
919
|
|
|
|
|
|
||
|
508,372
|
|
|
735,135
|
|
(b) Purchases of goods and services
|
|
|
|
||
Purchases of goods from non-consolidated parties
|
298,641
|
|
|
357,359
|
|
Purchases of goods from other related parties
|
41,084
|
|
|
36,261
|
|
Purchases of services and others from non-consolidated parties
|
9,216
|
|
|
7,323
|
|
Purchases of services and others from other related parties
|
115,740
|
|
|
67,910
|
|
Purchases of goods and services in connection with lease contracts from other related parties
|
11,416
|
|
|
—
|
|
|
|
|
|
||
|
476,097
|
|
|
468,853
|
|
(c) Financial results
|
|
|
|
||
Income with non-consolidated parties
|
7,291
|
|
|
6,538
|
|
Expenses in connection with lease contracts from other related parties
|
(815
|
)
|
|
—
|
|
|
|
|
|
||
|
6,476
|
|
|
6,538
|
|
(d) Dividends received
|
|
|
|
||
Dividends received from non-consolidated parties
|
642
|
|
|
61
|
|
|
|
|
|
||
|
642
|
|
|
61
|
|
(e) Other income and expenses
|
|
|
|
||
Income (expenses), net with non-consolidated parties
|
529
|
|
|
527
|
|
Income (expenses), net with other related parties
|
882
|
|
|
521
|
|
|
|
|
|
||
|
1,411
|
|
|
1,048
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||
|
(Unaudited)
|
|
|
||
(ii) Period-end balances
|
|
|
|
||
(a) Arising from sales/purchases of goods/services
|
|
|
|
||
Receivables from non-consolidated parties
|
173,508
|
|
|
201,693
|
|
Receivables from other related parties
|
15,386
|
|
|
5,975
|
|
Advances from non-consolidated parties
|
10,130
|
|
|
2,812
|
|
Advances to suppliers with other related parties
|
19,153
|
|
|
7,534
|
|
Payables to non-consolidated parties
|
(27,319
|
)
|
|
(37,384
|
)
|
Payables to other related parties
|
(27,221
|
)
|
|
(23,495
|
)
|
Lease Liabilities with other related parties
|
(7,883
|
)
|
|
—
|
|
|
|
|
|
||
|
155,754
|
|
|
157,135
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
1)
|
Financial instruments by category
|
As of September 30, 2019 (in USD 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
|
|
409,836
|
|
|
—
|
|
|
—
|
|
|
409,836
|
|
Derivative financial instruments
|
|
—
|
|
|
4,705
|
|
|
—
|
|
|
4,705
|
|
Trade receivables
|
|
996,558
|
|
|
—
|
|
|
—
|
|
|
996,558
|
|
Other investments
|
|
181,290
|
|
|
—
|
|
|
36,634
|
|
|
217,924
|
|
Cash and cash equivalents
|
|
350,774
|
|
|
286,895
|
|
|
—
|
|
|
637,669
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
|
1,938,458
|
|
|
291,600
|
|
|
36,634
|
|
|
2,266,692
|
|
|
|
|
|
|
|
|
|
|
||||
As of September 30, 2019 (in USD thousands)
|
|
Amortized
cost |
|
Liabilities at fair value through profit or loss
|
|
|
|
Total
|
||||
|
|
|
|
|
|
|
|
|
||||
(ii) Liabilities as per statement of financial position
|
|
|
|
|
|
|
|
|
||||
Other liabilities
|
|
102,090
|
|
|
—
|
|
|
|
|
102,090
|
|
|
Trade payables
|
|
896,577
|
|
|
—
|
|
|
|
|
896,577
|
|
|
Derivative financial instruments
|
|
—
|
|
|
5,779
|
|
|
|
|
5,779
|
|
|
Lease liabilities
|
|
325,595
|
|
|
—
|
|
|
|
|
325,595
|
|
|
Borrowings
|
|
2,366,790
|
|
|
—
|
|
|
|
|
2,366,790
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total
|
|
3,691,052
|
|
|
5,779
|
|
|
|
|
3,696,831
|
|
2)
|
Fair Value by Hierarchy
|
|
|
Fair value measurement as of September 30, 2019 (in USD thousands):
|
|||||||
Description
|
|
Total
|
|
Level 1
|
|
Level 2
|
|||
|
|
|
|
|
|
|
|||
Financial assets at fair value through profit or loss / OCI
|
|
|
|
|
|
|
|||
Cash and cash equivalents
|
|
286,895
|
|
|
286,895
|
|
|
—
|
|
Other investments
|
|
36,635
|
|
|
36,635
|
|
|
—
|
|
Derivative financial instruments
|
|
4,705
|
|
|
—
|
|
|
4,705
|
|
|
|
|
|
|
|
|
|||
Total assets
|
|
328,235
|
|
|
323,530
|
|
|
4,705
|
|
|
|
|
|
|
|
|
|||
Financial assets at fair value through profit or loss / OCI
|
|
|
|
|
|
|
|||
Derivative financial instruments
|
|
5,779
|
|
|
—
|
|
|
5,779
|
|
|
|
|
|
|
|
|
|||
Total liabilities
|
|
5,779
|
|
|
—
|
|
|
5,779
|
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
|
|
Fair value measurement as of December 31, 2018 (in USD thousands)
|
|||||||
Description
|
|
Total
|
|
Level 1
|
|
Level 2
|
|||
|
|
|
|
|
|
|
|||
Financial assets at fair value through profit or loss / OCI
|
|
|
|
|
|
|
|||
Cash and cash equivalents
|
|
140,455
|
|
|
140,455
|
|
|
—
|
|
Other investments
|
|
36,630
|
|
|
36,630
|
|
|
—
|
|
Derivative financial instruments
|
|
1,588
|
|
|
—
|
|
|
1,588
|
|
|
|
|
|
|
|
|
|||
Total assets
|
|
178,673
|
|
|
177,085
|
|
|
1,588
|
|
|
|
|
|
|
|
|
|||
Financial assets at fair value through profit or loss / OCI
|
|
|
|
|
|
|
|||
Derivative financial instruments
|
|
12,981
|
|
|
—
|
|
|
12,981
|
|
|
|
|
|
|
|
|
|||
Total liabilities
|
|
12,981
|
|
|
—
|
|
|
12,981
|
|
(a)
|
Impact on the financial statements
|
|
Property, plant and equipment
|
Lease liabilities
Current (*) |
Lease liabilities
Non Current (*) |
|||
|
|
|
|
|||
Closing balance as of December 31, 2018 - IFRS 16
|
5,817,609
|
|
8,030
|
|
65,798
|
|
Initial recognition of right-of-use assets
|
280,493
|
|
—
|
|
—
|
|
Initial recognition of lease liabilities
|
—
|
|
34,848
|
|
245,645
|
|
Opening balance as of January 1, 2019 - IFRS 16
|
6,098,102
|
|
42,878
|
|
311,443
|
|
(b)
|
IFRS 16 Leases - Impact of adoption
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
|
|
Right-of-use assets
|
||||||||||
|
|
Buildings
and improvements |
|
Production equipment
|
|
Vehicles, furniture and fixtures
|
|
Total
|
||||
Values at the beginning of the year
|
|
|
|
|
|
|
|
|
||||
Cost
|
|
|
|
55,288
|
|
|
|
|
55,288
|
|
||
Accumulated depreciation
|
|
|
|
(5,918
|
)
|
|
|
|
(5,918
|
)
|
||
Net book value at January 1, 2019
|
|
—
|
|
|
49,370
|
|
|
—
|
|
|
49,370
|
|
Opening net book value
|
|
—
|
|
|
49,370
|
|
|
—
|
|
|
49,370
|
|
Effect of initial recognition under IFRS 16
|
|
226,936
|
|
|
52,469
|
|
|
1,088
|
|
|
280,493
|
|
Translation differences
|
|
(327
|
)
|
|
(7,000
|
)
|
|
—
|
|
|
(7,327
|
)
|
Net additions
|
|
2,287
|
|
|
1,568
|
|
|
(807
|
)
|
|
3,048
|
|
Depreciation charge
|
|
(22,084
|
)
|
|
(8,978
|
)
|
|
(281
|
)
|
|
(31,343
|
)
|
|
|
|
|
|
|
|
|
|
||||
Closing net book value
|
|
206,812
|
|
|
87,429
|
|
|
—
|
|
|
294,241
|
|
Values at the end of the year
|
|
|
|
|
|
|
|
|
||||
Cost
|
|
228,896
|
|
|
103,051
|
|
|
—
|
|
|
331,947
|
|
Accumulated depreciation
|
|
(22,084
|
)
|
|
(15,621
|
)
|
|
—
|
|
|
(37,705
|
)
|
Net book value at September 30, 2019
|
|
206,812
|
|
|
87,430
|
|
|
—
|
|
|
294,242
|
|
|
|
Lease liabilities
|
|||||||
|
|
Current
|
|
Non Current
|
|
Total
|
|||
Values at the beginning of the year
|
|
8,030
|
|
|
65,798
|
|
|
73,828
|
|
Effect of initial recognition under IFRS 16
|
|
34,848
|
|
|
245,645
|
|
|
280,493
|
|
Translation differences
|
|
1,645
|
|
|
(9,270
|
)
|
|
(7,625
|
)
|
Net proceeds
|
|
806
|
|
|
5,632
|
|
|
6,438
|
|
Repayments
|
|
(34,896
|
)
|
|
—
|
|
|
(34,896
|
)
|
Interest accrued
|
|
10,922
|
|
|
1,922
|
|
|
12,844
|
|
Interest paid
|
|
(5,487
|
)
|
|
—
|
|
|
(5,487
|
)
|
Reclassifications
|
|
30,458
|
|
|
(30,458
|
)
|
|
—
|
|
|
|
|
|
|
|
|
|||
As of September 30, 2019
|
|
46,326
|
|
|
279,269
|
|
|
325,595
|
|
(c)
|
IFRS 16 Leases - Accounting policies applied from January 1, 2019
|
–
|
Plants and equipment for the production of industrial gases and other production materials.
|
–
|
Transportation and maintenance equipment.
|
–
|
Warehouses and office spaces.
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
–
|
The value of the initial measurement of the lease liability;
|
–
|
Any lease payments made at or before the commencement date, less any lease incentives; and
|
–
|
Any initial direct costs incurred by the lessee; and
|
–
|
Fixed payments, less any lease incentives receivable;
|
–
|
Variable lease payments that depend on an index or rate, initially measured using the index or rate as of the commencement date;
|
–
|
Amounts expected to be payable by the lessee under residual value guarantees;
|
–
|
The exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
|
–
|
Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.
|
TERNIUM S.A.
|
|
|
Consolidated Condensed Interim Financial Statements as of September 30, 2019
|
||
and for the nine-month periods ended September 30, 2019 and 2018
|
–
|
Non-cancelable period of lease contracts;
|
–
|
Periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and
|
–
|
Periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option.
|
–
|
Increasing the carrying amount to reflect interest on the lease liability;
|
–
|
Reducing the carrying amount to reflect lease payments made; and
|
–
|
Re-measuring the carrying amount to reflect any reassessment or lease modifications.
|
–
|
Leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases.
|
–
|
Leases where all substantial risks and rewards of ownership are transferred by the lessor to the lessee are classified as finance leases.
|
|
|
|
Pablo Brizzio
|
|
|
|
|
Chief Financial Officer
|
|
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