Ternium S.A.

In this annual report, unless otherwise specified or if the context so requires:

• References to “Adjusted EBITDA”, “Net Cash” and “Free Cash Flow” correspond to non-IFRS alternative performance measures. The reconciliation of non-IFRS alternative performance measures to the most directly comparable IFRS measures is included in section “Alternative Performance Measures” of this annual report;

• References to “ADSs” are to the American Depositary Shares, which are evidenced by American Depositary Receipts;

• References to “billions” are to thousands of millions, or 1,000,000,000;

• References to “finished steel products” are to steel products other than steel slabs;

• References to “San Faustin” are to San Faustin S.A., a Luxembourg société anonyme and Ternium S.A.’s controlling shareholder;

• References to “Techgen” are to Techgen S.A. de C.V., a Mexican sociedad anónima de capital variable, 48% indirectly owned by Ternium, 22% indirectly owned by Tenaris, and 30% indirectly owned by Tecpetrol International S.A., a wholly owned subsidiary of San Faustin;

• References to “Tenaris” are to Tenaris S.A., a Luxembourg société anonyme and a shareholder of Ternium S.A.;

• References to “Tenigal” are to Tenigal S.R.L. de C.V., a Mexican sociedad de responsabilidad limitada de capital variable, 51% indirectly owned by Ternium and 49% indirectly owned by Nippon Steel Corporation, or NSC;

• References to “Ternium”, the “company”, “we,” “us” or “our” are to Ternium S.A. and its consolidated subsidiaries;

• References to “Ternium Argentina” are to Ternium Argentina S.A., an Argentine sociedad anónima and a subsidiary of Ternium S.A.;

• References to “Ternium Brasil” are to Ternium Brasil S.A., a Brazilian sociedade anonima and a subsidiary of Ternium S.A.;

• References to “Ternium Investments” are to Ternium Investments S.à r.l., a Luxembourg société à responsabilité limitée, and a wholly owned subsidiary of Ternium S.A.;

• References to “Ternium S.A.” are exclusively to Ternium S.A., a Luxembourg société anonyme;

• References to “tons” are to metric tons; one metric ton is equal to 1,000 kilograms, 2,204.62 pounds or 1.102 U.S. (short) tons; and

• References to “Usiminas” are to Usinas Siderúrgicas de Minas Gerais S.A. – USIMINAS, a listed Brazilian sociedade anonima controlled by Usiminas control group, which is composed by Ternium Investments, Ternium Argentina and Tenaris’s subsidiary Confab Industrial S.A. (all of which conform the T/T Group), and Usiminas’ pension fund Previdência Usiminas.

TERNIUM S.A.

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