FORM 6 - K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d - 16 of

the Securities Exchange Act of 1934

As of 02/07/2025

Ternium S.A.

(Translation of Registrant’s name into English)

Ternium S.A.
26, Boulevard Royal - 4th floor

L-2449 Luxembourg

(352) 2668-3152

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or 40-F.

Form 20-F a Form 40-F __

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of 1934.

Yes __ No a

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

Not applicable

The attached material is being furnished to the Securities and Exchange Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange Act of 1934, as amended.

This report contains Ternium S.A.’s Sustainability Report 2024.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

TERNIUM S.A.

By: /s/ Guillermo Etchepareborda By: /s/ Sebastián Martí

Name: Guillermo Etchepareborda Name: Sebastián Martí

Title: Attorney in Fact Title: Attorney in Fact

Dated: July 2, 2025

CONTENTS

06. Chairman´s Letter

10. Our Sustainability Journey

14. Ternium at a Glance

16. Our Values

18. About this Report

OVERVIEW

142

ESG: ENVIRONMENTAL_SOCIAL_GOVERNANCE

ANNEXES

22. Climate Action

40. Environmental Responsibility in Operations

56. Occupational Health and Safety Management

74. Human Resources Management

94. Community Engagement

110. Commercial Positioning and the Value Chain

128. Corporate Governance

144. Annex 1: ESG Recognitions

146. Annex 2: ISO Certifications

148. Annex 3: UN Sustainable Development Goals

153. Annex 4: Economic & Financial Performance 2024

155. Annex 5: GRI, SASB and TCFD Indexes

160. Annex 6: ESG Historical Data

Ternium S.A. (the “Company”) is a Luxembourg company
and its American Depositary Shares, or ADSs, are listed
on the New York Stock Exchange (NYSE: TX). We refer
to Ternium S.A. and its consolidated subsidiaries as
“we,” “our” or “Ternium.”

The financial and operational information contained in this report is based on Ternium’s operational data and on the Company’s consolidated financial statements, which were prepared in accordance with IFRS and IFRIC interpretations as issued by the IASB and adopted by the European Union and presented in U.S. dollars ($) and metric tons.



6. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

CHAIRMAN’S
LETTER



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	7

While 2024 saw Ternium continue to build its position as the leading steelmaker in Latin America, these achievements unfolded against the backdrop of mounting uncertainty in global markets, presenting new challenges and opportunities for continued growth. At our Pesquería complex in Mexico, we completed a new pickling line at the end of the year. In Brazil, Usiminas successfully resumed production at its Ipatinga blast furnace following its relining and modernization during 2023, and, in Argentina, we began operations at our new wind farm in December, which will supply 90% of the purchased energy requirements for our operations in the country.

Net sales amounted to $17.6 billion, in line with 2023, as we consolidated the results of Usiminas for the full year. Although shipments rose, steel prices fell through the year in our most relevant markets. EBITDA declined to $2.0 billion with a margin of 12%. Net income was $174 million, affected by a provision following an adverse court ruling in Brazil, which we continue to dispute. Our balance sheet remains solid with a net cash position of $1.6 billion at year-end. At our shareholders’ meeting, an annual dividend of $2.70 per ADS was approved, reflecting our commitment to maintain a competitive dividend payout over the years. This dividend considers a lower net income level in 2024, net of the provision for litigation in Brazil, and our extensive investment program over the next two years.

Our investment program is centered on our Pesquería complex in Mexico, where we are integrating advanced electric steelmaking and natural gas-based direct reduction facilities while expanding our downstream processing capacity for high-value flat steel products. Once these investments are complete, the Pesquería complex will be one of the most advanced steelmaking and processing sites in North America, compliant with USMCA “melted and poured” requirements and able to supply the ultra-high-strength steel products required by the automotive industry and other demanding industrial and construction applications.

Tariffs and trade tensions in recent months have created a climate of uncertainty, impacting business confidence and economic growth in North America and more widely. To the extent that the tariffs are intended to address unsustainable trade imbalances and China’s unfair trading practices, we are confident that Mexico will be recognized by the United States as a valuable ally and partner in strengthening manufacturing activity and addressing trade imbalances across North America and that the USMCA will be renewed with a favorable tariff treatment for its members and stricter rules of origin to prevent unfairly traded imports in the region.

In Mexico, amidst the current uncertainty concerning tariffs and the economy, the government is pursuing a “Plan Mexico” strategy to attract investment and increase the local and regional content of manufactured goods through nearshoring, infrastructure development and support for SMEs. Ternium is well placed to contribute to this strategy: it continues to consolidate its leading position in the domestic market as a supplier of advanced steel products for local industry and infrastructure projects, it is investing in developing capacity and products to replace imports, and it has its own ProPymes program which is designed to support the development of SMEs. Once the uncertainty concerning tariffs is lifted, we expect to see the Mexican industrial economy emerge stronger as part of a revitalized USMCA trading block.

In Brazil, the industrial markets that Usiminas serves have been growing strongly and, following the modernization of its Ipatinga blast furnace, it has increased sales and production while reducing costs. We continue to see, however, the pressure from unfairly traded steel imports as China increases its exports of surplus steel production to Latin



8. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

America, where Brazil is its largest regional trading partner. Although the government has taken some measures to limit such imports, their effectiveness is still to be seen.

In Argentina, the economy has started to recover following the government’s measures to reduce inflation and liberalize the economy. The transformation that is being undertaken is having profound effects on the economy and is expected to lay the foundations for growth for the years ahead following 15 years of stagnation. Last year, our sales in the Southern Region declined 33% compared to 2023 as volumes were affected by a contraction in the industrial and construction sectors. As 2025 progresses, we are seeing a recovery in demand in some sectors, such as energy, agriculture and mining, although some other sectors like construction continue to show subdued activity levels.

For Ternium, like other companies operating in the steel industry, decarbonization is a major challenge that will take many years and substantial investments to accomplish. The integration of state-of-the-art electric furnace steelmaking and direct reduction facilities into our operations in Pesquería, Mexico, represents a significant part of our plans to reduce the emissions intensity of our operations in line with our 2030 decarbonization target and prepare for further reductions thereafter. Our investment in a 99 MW wind farm, completed during 2024, to replace 90% of our purchased electric energy requirements in Argentina is an additional step towards that target. Usiminas has also established a 2030 target to reduce its emissions intensity by 15% compared to a 2019 baseline to which the recent modernization of the Ipatinga blast furnace will contribute. At the same time, we need to identify and develop economic, scalable technologies that will enable further decarbonization of our operations beyond 2030. In this respect, we are participating in a pilot plant to produce turquoise hydrogen through methane hydrolysis and are partnering with Vale to develop raw material products with lower carbon emissions intensity.

As an industrial company with a long-term perspective, the safety of our people, protection of the environment and support for the inclusive development of our communities are an integral part of our management agenda. In addition to our decarbonization program, we are advancing with a multi-year $550 million investment plan to enhance our environmental performance through improving the management of water and air emissions and maximizing the recycling and reuse of resources at our industrial facilities. This reflects our commitment to setting an example on managing environmental issues within our communities. Among the projects already implemented under this plan are the installation of a dome and iron ore silos to control dust emissions at our Guerrero plant in Mexico, the incorporation of technology for the measuring and control of air emissions in our plants in Argentina and Brazil and improvements in the settling ponds and water treatment systems throughout our industrial system.

In 2024, we invested a further $60 million in projects aimed at improving our safety performance. Many of our safety investments over the past four years have been in automation to reduce human participation in high-risk operations, such as continuous casting. This has resulted in a significant reduction in human exposure to hazardous conditions. This year, we received a Health & Safety Excellence Recognition from worldsteel for this safety program. Our performance during 2024, however, was affected by two fatalities. This is a major setback for Ternium, which has an absolute commitment to safety with its employees and its communities. We deeply regret the loss of life and are reinforcing all our actions on preventive activities with a focus on critical risks.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	9

As we engage with our communities, our educational programs are at the forefront of our efforts to support inclusive growth. They are designed to open opportunities, encouraging merit and an entrepreneurial spirit. We accompany the development of students from a young age with our Roberto Rocca After School Program and are strengthening our network of Roberto Rocca Technical Schools. Early this year, we opened a new school in Santa Cruz, Brazil, which will receive 576 students over the next three years and will share curriculum and best practices with its sister schools in Pesquería, Mexico, and Campana, Argentina. These schools open their doors not only to their enrolled students but also act as professional training centers for their communities offering various Industry 4.0 training courses and certifications licensed by companies such as Festo and Siemens. The educational institutions are obtaining excellent results and the new school in Santa Cruz has created high expectations in the community surrounding our Brazilian slab mill.

Our employees are always at the center of our achievements. Our aim is to offer them the opportunities to develop their skills and potential in a respectful and dynamic working environment in which they are recognized for their contribution to our goals. We are also focused on enhancing diversity and improving the gender balance among our employees and in managerial positions, recognizing the positive benefits to our industrial culture that diversity can bring.

In closing, I would like to give a special thanks to them for their ongoing efforts and achievements over the past year. I would also like to thank our customers, suppliers, shareholders and communities for their continuing support for our project.

July, 2025

Paolo Rocca

Chairman



10. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

OUR SUSTAINABILITY
JOURNEY



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	11


At Ternium, we believe that steel is much more than just a material, it is the backbone of progress in our societies. That is why our vision is rooted in producing steel responsibly, innovatively, and sustainably, while serving as a key driver of economic and social development across Latin America. We are making significant progress with the construction of our new DRI-EAF steel mill at the Industrial Center in Pesquería, Mexico. This project will be among the most sustainable of its kind in the Americas. The facility will have the capacity to produce 2.6 million tons of low-emission steel annually, including high-end exposed steel and advanced high-strength steel grades. All of this will be achieved while maintaining the lowest CO₂ emissions per ton in the market for these products. We also continued executing other initiatives outlined in our decarbonization roadmap. The latest one to be put in place was the wind farm in Olavarría, Argentina, which replaces 90% of our electricity purchases from the national grid with renewable energy, cutting approximately 111 thousand tons of CO₂ emissions each year. As a company, we are resolute in our commitment to minimizing the impact of our operations on the environment through continuous improvement and adherence to stringent environmental standards. Our company has achieved numerous certifications that underscore our commitment to sustainability, including ISO 14001, which highlights our robust environmental management system, and ISO 50001, demonstrating our commitment to energy efficiency. Our efforts extend beyond compliance with these certifications. We have implemented state-of-the-art technologies to reduce emissions, conserve energy, and optimize resource use. We believe that industrial growth and environmental stewardship go hand in hand, and we are dedicated to forging a sustainable future through innovative practices, transparency, and a steadfast commitment to our environmental responsibilities. To become more competitive, sustainable and resilient, we are building the future of manufacturing on four essential pillars: the safety of our people, the protection of the environment, deep engagement with local communities, and the integration of smarter, more efficient technologies. These principles will continue to guide every step we take.

MÁXIMO VEDOYA Chief Executive Officer



12. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW


\



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	13



14. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

TERNIUM AT A GLANCE



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	15



16. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW


OUR VALUES

ENVIRONMENT

We are committed to achieving

excellence in environmental

and energy performance in all

our operations to protect the

environment, setting an example

in our communities.

HEALTH AND SAFETY

Nothing is more important to

Ternium than the health and safety of all those working with the company.

Our priority is to provide our employees a safe workplace, promoting their well-being and

a healthy lifestyle.

PEOPLE AND DIVERSITY

Our people are at the heart of

our industrial project and the

foundation of our achievements.

We aim to provide them

opportunities for development

and fulfilling their potential,

while promoting diversity, equity

and inclusion, and rejecting any

form of discrimination based on

gender, sexual orientation, ethnic

origin, color, age, religion or

political belief.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	17

COMMUNITY

The development and inclusive

growth of the communities

where we have our operations

is integral to the success of

our industrial project. Our

community activities focus

on support for education and

opportunities based on merit,

with technical education

seen as an engine for growth,

transformation and social

mobility.

QUALITY AND

INDUSTRIAL

EXCELLENCE

Excellence and quality in our products, services, processes, and the professionalism of our people are our principal competitive advantage. We are focused on the continuous improvement of our plants and processes and on developing outstanding technologies and products.

INTEGRITY

Transparency in management

and communications is

a fundamental value in

our relationship with our

stakeholders, customers,

employees, suppliers, and

the communities of which we

are a part. We are committed

to building a culture of

transparency and integrity in

everything we do.



18. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW


ABOUT THIS REPORT

This report provides a comprehensive overview of Ternium’s integrated strategy, including the progress made in 2024 across various economic, environmental, social and governance dimensions. It also highlights how the company’s actions contribute to achieving the United Nations Sustainable Development Goals (SDGs).

The report has been prepared with reference to international standards issued by the GRI (Global Reporting Initiative) and SASB (Sustainability Accounting Standards Board), as well as the guidelines of the worldsteel association, and follows the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures) regarding climate change reporting.

Ternium S.A. is incorporated in Luxembourg and, as such, is subject to certain European regulations, including the Corporate Sustainability Reporting Directive (CSRD). In February 2025, the European Commission presented the “Omnibus Package” aimed at simplifying regulatory obligations and proposed amendments to several frameworks, including the CSRD. Based on this proposal, Ternium is expected to begin reporting sustainability information in 2028, covering fiscal year 2027, in accordance with the applicable requirements, which are currently under review.

Double materiality assessment

Regarding topic selection for disclosure, in late 2024 and the beginning of 2025, the company carried out a double materiality assessment aimed at identifying key issues for the business. Topics were mapped across Ternium’s value chain and validated with internal stakeholders to ensure coverage of all activities, relationships and geographic regions.

The process consisted of five stages: identification of relevant topics across the industry, impact materiality assessment, financial materiality assessment,

consolidation of the results and stakeholder engagement.

To identify relevant topics, an initial analysis of sustainability issues from various sources—such as the European Sustainability Reporting Standards (ESRS), Ternium’s Sustainability Report, ESG frameworks and standards, peer benchmarks, and industry associations—was conducted to develop a master list.

For impact materiality assessment, the company identified actual or potential, positive or negative impacts on people and/or the environment and linked them to the relevant ESRS subtopics available at the time. These impacts were then evaluated based on time horizon and severity (rated on a scale from 1 [least severe] to 5 [most severe]). For potential impacts, the likelihood of occurrence was also considered.

For the financial materiality assessment, risks and opportunities were evaluated based on time horizon, magnitude and likelihood of occurrence, using criteria aligned with internal risk management methodologies. For risks, magnitude referred to the potential extent of damage or disruption (e.g., financial loss), while for opportunities, it reflected the scale of potential benefits (e.g., financial gain). Likelihood was rated on a scale from 1 (unlikely) to 5 (certain), in line with internal practices.

The fourth step involved consolidating the findings by defining a materiality threshold. As a result, the material topics and subtopics identified were as follows: in the environmental dimension, climate change—including mitigation, adaptation and energy—was highlighted, along with pollution of air, soil and water, and water withdrawals, taking into account the location of the facilities. In the social dimension, relevant topics included the company’s workforce, with a focus on equal opportunities, working conditions and other work-related rights; workers in the value chain, particularly in terms of working conditions and safety; affected communities, addressing social and cultural



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	19

rights, including the specific rights of indigenous communities; and consumers and end-users, focusing on impacts related to product information and transparency. In the area of governance, material issues included corporate culture, anti-corruption and bribery, the management of supplier relationships, and the protection of whistleblowers. Additionally, other relevant topics identified by the company were innovation and technology, as well as cybersecurity.

For the stakeholder engagement, we conducted a survey based on seven questions. The aim was to assess stakeholders’ perceptions of Ternium’s current sustainability efforts and to identify areas of focus for future initiatives. We surveyed 655 internal and external stakeholders across the following groups: Employees, Customers, Suppliers, Financial Institutions, Community Members, Industry Chambers/Associations, Media and Universities. The stakeholder list was based on participants from Ternium’s previous materiality assessment, with updates to reflect organizational and contextual changes.

Ongoing stakeholder engagement

Beyond this process, the company continuously monitors stakeholder interests and includes relevant information in its disclosures to address their expectations. Some ongoing engagement initiatives include:

< Employees: We prioritize transparent communication

through feedback check-ins, town hall meetings, surveys and performance reviews. In 2024, our CEO hosted four “Live Talks” with Q&A sessions, attended by an average of 3,500 employees. We also organized Ternium’s Safety Day for employees and managers to address safety topics and improve operations.

< Customers: We maintain an open dialogue with our

customers to understand their needs and develop long-term partnerships that enhance supply chain and digital integration. In 2024, several customers invited us to participate in sustainability surveys and CSR audits and requested information about our performance for benchmarking in platforms such as CDP and EcoVadis.

< Suppliers: We collaborate closely with our suppliers to

strengthen the steel value chain, with the ProPymes

program playing a central role. Additionally, our procurement company Exiros—jointly owned with Tenaris—provides valuable insight into supplier priorities and concerns.

< Communities: Transparent communication with local

communities is one of Ternium’s core values. Over ten years ago, we launched the “One Mill, One Fan Page” strategy, linking each industrial facility to a dedicated Facebook Fan Page to facilitate community engagement. We currently operate eight local pages with 294 thousand followers, used to share timely and transparent information with community members, media and nearby institutions. We also organize in-person meetings led by Regional Presidents to listen to local concerns and provide operational updates.

< Investors: We maintain regular communication with

shareholders through meetings, calls and anonymous feedback, keeping them informed and aligned with current trends.

< Industry Associations: Our active participation in the

industry associations promotes collaboration, sharing of best practices, and the development of common standards for the future of the steel sector.

Scope alignment with financial statements

The company is working to harmonize the scope of sustainability reporting with that of its financial statements. In the meantime, reported indicators and KPIs do not include Usiminas, unless explicitly stated.



22. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

CLIMATE ACTION

SUSTAINABLE DEVELOPMENT GOALS



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	23

GOALS & ACTIONS

2024 KPIs

GOALS

▪To reduce the emission intensity rate per ton of hot-rolled steel by 15% by 2030 compared to 2023 baseline, considering Scopes 1, 2 and 3 (categories 1 and 10), measured using the GHG Protocol.

▪To achieve a 40% share of renewable energy in the purchased electricity by 2030 up to the hot-rolling process.

▪To improve energy efficiency across all industrial processes.

▪To collaborate with the value chain to reduce GHG emissions.

▪To develop strategies and projects with the ambition of achieving carbon neutrality in Ternium’s products and operations, considering the technological feasibility and local market conditions.

$198

MILLION INVESTED

IN DECARBONIZATION

2.2

TONS OF CO2e PER TON OF

HOT ROLLED STEEL

(Scopes 1, 2 and 3)

GHG Protocol methodology

23.6

GJ CONSUMED PER TON

OF CRUDE STEEL

Worldsteel methodology

28%

SCRAP CONTENT

PER TON OF CRUDE STEEL

ACTIONS
IN THE
LAST FIVE
YEARS

Management

▪Creation of a climate change governance structure, including a decarbonization committee and oversight by the board of directors.

▪Integration of climate change risks into the risk analysis process.

▪Incorporation of a scenario analysis to assess asset vulnerability to physical risks.

▪Implementation of an internal carbon price for investment projects.

▪Strengthening our emissions management system, including:

_Third-party verification of emissions under ISO 14064-1 and GHG protocol standard.

_Introduction of data processing and GHG inventory systems to enhance granularity and information analysis.

_Collection of supplier primary data (Scope 3 emissions).

_Inclusion of Scope 3 categories in the GHG emissions inventory.

_Certification under ISO 50001 standard for our processes.

Projects

▪Inauguration of the wind farm in Argentina with an estimated annual generation of 480 GWh, which will replace 90% of the electricity currently purchased from the national grid.

▪Continuation of the EAF-DRI project in Pesquería, Mexico, aimed at producing 2.6 million tons of low-emissions steel.

▪Implementation of energy efficiency projects across all facilities.

▪Continuation of the scrapyard project in Ternium Brazil with the aim of increasing the scrap ratio in the BOF process.

Notes:
(1) Figures do not include Usiminas.
(2) In this chapter, the term "emissions" refers specifically to GHG (greenhouse gas) emissions.



24. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

GOVERNANCE

The company has established a comprehensive governance system to address climate change across various levels. At the board level, the Vice-Chairman has been appointed to report quarterly on the progress of Ternium’s climate change strategy to the Board of Directors.

At the management level, a decarbonization committee, chaired by the CEO, regularly reviews performance indicators and the progress of decarbonization projects.

Climate change risks and their mitigation strategies are integrated into the company’s risk management system, with the critical risks committee oversight. Risks are first identified at the local level and then incorporated into a unified risk matrix that is assessed at least three times a year by this committee.

In terms of the policies and procedures established on the matter, Ternium’s Environmental and Energy Policy, updated in 2023, serves as the primary framework guiding the company’s environmental efforts. Among its key principles is a commitment to reduce emissions

OUR STRUCTURE

CLIMATE CHANGE GOVERNANCE



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	25

intensity and the ambition to achieve carbon neutrality, subject to technological feasibility and local market conditions.

In 2024, the company reviewed its emissions intensity reduction target to include scope 3 emissions and better reflect our operational configuration and set a goal of a 15% reduction in intensity up to hot rolled by 2030 (compared to a 2023 baseline). This target encompasses Scopes 1, 2, and 3 emissions, including Category 1 (emissions from the production of raw materials and slabs/billets purchased from third parties) and Category 10 (emissions from third parties processing slabs and billets sold by Ternium), in line with the GHG Protocol’s guidelines: the Corporate Accounting and Reporting Standard (2004) and the Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011).

Additionally, the investments included in Ternium’s decarbonization roadmap undergo a step-by-step approval process defined in the investment authorization procedure for projects, ensuring involvement and oversight at the highest management levels.

Both the timely and effective execution of decarbonization projects and the operational performance of Ternium’s sites, ensuring alignment with the decarbonization targets, are integral components of the annual incentive framework for the participating sectors, directors and the CEO.

Participation in global sustainability and trade forums

The company remains actively engaged in industrial forums and international initiatives to promote fair trade conditions across regions during the transition to a low-carbon economy. For instance, Ternium’s Global Sustainability Senior Director serves as the chairman of the environmental policy committees at both worldsteel and ALACERO. Additionally, several of the company’s directors and managers actively contribute to the working groups of these organizations, fostering collaboration and advancing sustainable industry practices.

INDUSTRY LANDSCAPE AND THE COMPANY’S INDUSTRIAL SCHEME

Steel is a fundamental material for modern societies, yet its production accounts for between 7% and 9% of global CO2 emissions, according to worldsteel data. As reported in worldsteel’s latest sustainability indicators, in 2023, the global average emission intensity stood at 1.9 tCO2 per ton of crude steel (Scopes 1, 2 and 3 Category 1 from the production of raw materials).

Emission intensity is determined by the production technology used, the availability of raw materials, the type of energy used and the characteristics needed in the final products. According to worldsteel, in 2023, 71.6% of global steel production relied on blast furnaces, with an average emission intensity of 2.3 tons of CO2 per ton of crude steel cast (tCO2/t). Electric arc furnaces (EAF) using scrap accounted for 20.4% of production, with an average emission intensity of 0.7 tCO2/t, while EAFs using direct reduced iron (DRI) represented 8%, with an average emission intensity of 1.4 tCO2/t.

As the world transitions to a low-carbon economy, the steel production landscape is expected to evolve in the coming decades. With infrastructure and industrial development entering a replacement phase, scrap availability is projected to increase, facilitating the adoption of scrap-based technologies. Additionally, renewable energy is set to play a pivotal role in this transition, both for direct use in steelmaking processes and to produce green hydrogen as a replacement for natural gas in some processes in the long term. According to the International Energy Agency’s (IEA Renewables 2024), global renewable capacity is expected to increase by over 5,520 GW between 2024 and 2030–2.6 times more than the deployment of the period 2017–2023.

Recognizing both the challenges and opportunities in the industry, Ternium prioritizes reducing emission intensity and improving energy efficiency as key pillars of its sustainability agenda.



26. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

TERNIUM’S STEELMAKING PROCESSES

CURRENT STATUS AND POST-COMPLETION OF THE PESQUERÍA

STEELMAKING PROJECT

MAIN PRODUCTION
INPUTS

PRODUCTION

ROUTE

CRUDE STEEL
PRODUCTION (2024)

CRUDE STEEL
CAPACITY (2027)

▪Iron ore

▪Coking coal

▪Pulverized injection coal (PCI)

▪Natural gas

Blast furnace

BOF

Basic oxigen

furnace

Slab continuous caster

61%

▪Iron ore pellets

▪Natural gas

▪Electricity

▪Scrap

DRI

Direct reduction

iron plant

EAF

Electric

arc furnace

Slab and billet continuous caster

30%

▪Scrap

▪Electricity

EAF

Electric

arc furnace

Billet continuous caster

The information presented herein does not include Usiminas. If included, it would have been:
2024: 71% BF-BOF; 22% DRI-EAF; 6% Scrap based-EAF | 2027: 61% BF-BOF; 33% DRI-EAF; 5% Scrap based-EAF .

STRATEGY

In 2024 the company updated its decarbonization target for 2030 to a 15% reduction in the CO2e intensity up to hot rolling from a 2023 baseline, considering Scopes 1, 2 and 3 (category 1 and 10) under GHG Protocol methodology. These changes better reflect Ternium’s operational configuration, considering that our hot rolling capacity is higher than the steelmaking capacity, and the change in methodology allows the comparison with other industries and eventually compliance with international regulations

like the EU Corporate Sustainability Reporting Directive (CSRD).

Ternium’s decarbonization strategy for 2030 comprises five axes of work:

< Prioritizing low-emission production technologies

< Increasing the share of renewable energy in the energy mix

< Expanding the capacity for CO2 capture and usage

< Advancing in energy efficiency initiatives and improving industrial performance

< Increasing the use of scrap in the metallic mix.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	27

TARGET: 15% REDUCTION IN EMISSIONS INTENSITY UP TO HOT-ROLLED

TERNIUM’S DECARBONIZATION ROADMAP

The following chart outlines Ternium’s decarbonization

roadmap, showing the contribution of each strategy

toward achieving a reduction in emission intensity.

This roadmap reflects current operational conditions and project feasibility according to the company’s

latest assessment.

2.1 tCO2e/HReq

1.8 tCO2e/HReq

Low carbon
technologies

(8%)

Renewable
energy

(3%)

Improvements in Performance/Energy Efficiency initiatives
(2%)

Carbon capture and usage/storage

(1%)

Scrap

in the

metallic mix

(1%)

2023
Baseline

2030
Target

Pesquería: at the core of our sustainable growth strategy

At the heart of our sustainable growth strategy is the Industrial Center in Pesquería, where we are developing a state-of-the-art steelmaking facility based on Direct Reduced Iron (DRI) and Electric Arc Furnace (EAF) technology. This facility will have a significantly lower carbon intensity compared to conventional steelmaking processes, reinforcing our commitment to reducing emissions and enhancing environmental performance.

The DRI module will utilize ENERGIRON technology, an advanced DRI process jointly developed by Tenova (a company from the Techint Group) and Danieli. ENERGIRON stands out for its high energy efficiency and reduced CO2 emissions. It is equipped with carbon capture features, allowing for the efficient removal and repurposing of CO2, contributing to our broader decarbonization goals. It is also adaptable to hydrogen-based reduction when economically viable. Additionally, the DRI installation includes a direct



28. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

pneumatic transport system for hot DRI to the EAF, further optimizing energy consumption.

The Electric Arc Furnace (EAF) will incorporate cutting-edge energy efficiency technologies, including the Consteel® system by Tenova. Consteel® is a continuous scrap charging and preheating system that enhances process stability while reducing electricity consumption. Additionally, the CONSTEERER system will provide real-time process optimization, improving energy efficiency and reducing electrode consumption. Together, these technologies will enhance industrial performance while lowering the facility’s carbon footprint.

Beyond emissions reduction, the facility’s design integrates additional environmental safeguards. The iron ore storage area has been designed to minimize diffuse emissions, incorporating domes and enclosed material handling circuits to prevent airborne dust. Moreover, water management is a critical component of our sustainability strategy. For its cooling processes, the facility will use treated sewage water, which is then filtered within the Industrial Center to

meet the required process quality standards, thereby preserving natural water resources.

References considered when assessing Ternium’s strategy

The decarbonization roadmap was developed considering Ternium’s current industrial configuration, the available technologies at industrial scale in the world, the availability of certain raw materials and the advancement of local regulations. The strategy was designed in accordance with the IEA Stated Policies Scenario and Sustainable Development Scenarios published in October 2020 and the general commitments made by each country for 2030 that were assessed with a high probability of materializing.

As an example, the embedded emission intensity rate for the company’s crude steel products for the year 2030 (Scopes 1 and 2) is 1.35 tons of CO2e per ton of crude steel, calculated using the GHG Protocol methodology. This intensity rate is more ambitious than the 1.5 tons of CO2 per ton of crude steel (Scopes 1 and 2) estimated by the IEA Sustainable Development Scenario for the steel sector for the same year.

EXAMPLES OF REFERENCES CONSIDERED WHEN ASSESSING TERNIUM'S STRATEGY

AGENCY/COUNTRY

REFERENCES

TERNIUM'S STRATEGY OUTPUT

International Energy Agency (IEA)

▪Available technologies by 2030: DRI-EAF, BOF-BF, Scrap based-EAF

▪1.5 emissions intensity for steel sector by 2030 (scopes 1 and 2)

▪Ternium's technologies: DRI-EAF, BOF-BF, Scrap based-EAF

▪1.35 emissions intensity for crude steel by 2030 (scopes 1 and 2)

Mexico's Nationally Determined Contribution (NDC)

▪~38% renewable energy by 2030 for the energy sector

▪Potential mitigation actions for the industrial sector

▪Higher production with EAF (DRI and scrap based)

▪Carbon capture and usage between industries

▪Improvement of energy efficiency

▪34% renewable electricity purchased by 2030 (up to hot rolling process) and 50% at the new steelmaking facility in Pesquería

▪New slab production capacity using DRI-EAF in Pesquería

▪Double the capacity for CO2 capture and usage by 2030 compared to 2018

▪Certification of ISO 50001 in energy-intensive processes

Argentina's Nationally Determined Contribution (NDC)

▪20% renewable energy by 2025

▪90% renewable electricity purchased by 2030



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	29

Internal carbon price (ICP)

The company has an internal carbon price of $80 per ton of CO2 in the assessment of investment projects. Its purpose is to assess the potential financial impacts of carbon emission pricing mechanisms. The methodology for its implementation is shadow pricing, a hypothetical price per ton of CO2 emitted considering Scopes 1, 2 and 3 (when applicable) emissions, and the amount is defined based on global references. This tool was implemented to help in the sensitivity analysis of investment projects.

Looking ahead: beyond 2030

Ternium has the ambition to achieve carbon neutrality in its operations and products. With that in mind, we are mapping different alternatives in each region regarding CCUS technologies, the use of biomass, biofuels and hydrogen, aiming to determine the most economically feasible way to decarbonize our operations.

One of the recent initiatives in this effort is Ternium’s participation in the Tulum Energy project, supported by TechEnergy Ventures, the investment fund of Tecpetrol, and developed in collaboration with Tenova, both companies part of the Techint Group. The Tulum Energy project focuses on the production of turquoise hydrogen through methane pyrolysis, aiming to provide a cost-effective and scalable solution for hydrogen production. This innovative process breaks down natural gas into hydrogen and solid carbon without emitting direct CO2, offering a cleaner alternative for industrial applications.

The pilot plant is being developed at Ternium’s Industrial Center in Pesquería, Mexico. The facility will utilize a plasma reactor powered by an electric arc, leveraging existing steel industry technology to efficiently extract hydrogen while capturing solid carbon. By exploring turquoise hydrogen as a low-carbon energy source, we reinforce our commitment to advancing sustainable steel production and contributing to the global energy transition.

We have also established strategic partnerships with suppliers like Vale in Brazil. In this case, we have joined


“At Ternium, sustainability and economic feasibility go hand in hand. Improving our processes is a shared commitment across the company to build a more efficient, responsible, and future-ready steel industry.”

									JOSÉ FONROUGE GLOBAL SUSTAINABILITY SENIOR DIRECTOR

efforts to explore the development of new products aimed at reducing the carbon footprint of raw materials and diversifying the feedstock for Ternium’s blast furnace and direct reduction operations. We expected to run tests at industrial scale during 2025.

Recognizing the potential of Latin America for nature-based decarbonization solutions, Ternium is analyzing its participation in projects for biomass production and utilization, as well as the protection and reforestation of affected areas. These efforts would allow the company to offset residual emissions in the long term while promoting human well-being and biodiversity.



30. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

Risk assessment

Climate risks are part of the company’s risk management and are assessed locally and corporately.

Decarbonization catalysts

Ternium’s decarbonization efforts are influenced by various external factors that will shape the viability and timing of projects in the coming decades:

< Economic incentives: Such as tax reductions or direct

government investments, which are key to advancing the decarbonization roadmap. As an example, in February 2025, the European Commission launched the Clean Industry Pact with EUR 100 billion to support clean manufacturing in the EU. To mobilize these funds, the Commission will facilitate the approval of state aid aimed at renewable energy, industry decarbonization, and scaling up clean technology manufacturing capacity; stimulate research and development; and amend regulations to increase financial guarantees for supporting investments. Similar incentives in regions where Ternium operates could help accelerate its decarbonization efforts.

< Development of infrastructure necessary like an electrical grid:

With electricity demand and supply projected to increase substantially in the coming years, it’s critical that the grid is capable of managing both the scale and variability of power. Governments should establish clear frameworks for grid operators to facilitate timely investments and translate targets set to different sectors into specific regional capacities that can meet future requirements.

< New legislation: Implementing carbon capture and storage

(CCS) technologies require specific regulatory frameworks. Brazil is progressing towards establishing a

legal structure for CCS activities, potentially becoming the first South American nation to do so. In Mexico, regions with a high potential for CO2 utilization and storage have been identified, but comprehensive regulations and carbon market mechanisms are still needed to facilitate CCS projects.

< Fair competition: Given the disparity in actions among

countries in addressing the challenge of climate change, it is essential for governments to support national industries that are making efforts to protect the environment. This stands in contrast to raw materials/goods coming from countries with less stringent environmental requirements. Defending these environmentally responsible products and industries promotes equitable competition and ensures that efforts made towards sustainability are recognized and rewarded.

< Common emissions measurement methodologies: Currently,

there are various standards for carbon emission accounting and determining the carbon footprint of products. A common and interoperable industry standard would enable the comparison of steel products and empower consumers to make well-informed decisions.

< Consumer preference: Differential pricing for products manufactured with lower emissions would encourage investment and the development of new technologies.

RISKS

According to Ternium’s Risk Management Policy, climate-related risks are identified and assessed locally with the involvement of the environmental, industrial, planning, legal, and risk management departments. All identified risks are categorized in a matrix considering their economic impact and probability of occurrence. Risks are reviewed at least three times a year, and those classified as significant, very significant, or critical are analyzed in the Critical Risks Committee, chaired by the CEO. During these meetings, each business unit presents its mitigation plans, which are then approved by the committee.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	31

CLIMATE CHANGE RISK ANALYSIS

RISK TYPE

CLASSIFICATION

DESCRIPTION

EXAMPLES

Transition

Legislation

Changes in carbon pricing mechanisms or new laws could increase production costs and capital expenditures, negatively affecting the company’s competitiveness.

Current legislation on carbon taxes with different scopes are implemented in Argentina, Brazil, Mexico and Colombia.

▪Argentina: Natural gas is not included (2017 reform).

▪Brazil: The Sistema Brasileiro de Comércio de Emissões (SBCE) was recently approved and is expected to regulate activities that emit more than 25,000 tons of CO2e per year. This mixed CAP & TRADE system will include both regulated and voluntary markets, and its implementation will take place in five phases, with economic effects expected by 2030. Its regulation is still pending.

▪Mexico: Natural gas is not covered by the national carbon tax. The final rules and regulations of the Sistema de Comercio de Emisiones (SCE) are still pending, and it is expected that the operational phase will begin in the short term. Furthermore, some states may impose carbon emissions taxes on top of the national carbon tax.

▪Colombia: Natural gas for the steel industry is not covered by the fossil fuel tax.

Market

Changes in customer preference could impact the sales level.

▪Shifts in customer preferences and failure to respond to stakeholders’ demand for climate-related measures could adversely affect the ability or willingness of our customers or suppliers to do business with us, harm our reputation, erode stakeholder support and restrict or reduce access to financial resources.

▪The changing landscape could reshape market dynamics, thereby intensifying competitive pressures and increasing the demand for scale-up and commercialization of low-emission steel.

Technology

The development of new production technologies requires significant investment and scale-up of commercialization.

▪Approximately 72% of the global steel industry relies on blast furnace technology (using coking coal as a reducing agent). Currently, there is no definitive solution to drastically reduce CO2 emissions from this route, which is still necessary given raw materials and scrap availability as well as the technical characteristics of final products.

▪Increased likelihood of abrupt policy interventions as governments attempt to meet their environmental goals.

Physical

Chronic

Changes in the water level of navigable channels hinder the provision of raw materials, increasing production costs.

Changes in precipitation patterns and extreme variability in weather patterns have led to low water levels in the Paraguay and Paraná waterways, intermittently disrupting the supply of iron ore to Ternium Argentina. This has forced the company to obtain this raw material from an alternative source at a higher cost and increase its iron ore inventories.

Acute

Extreme weather events and natural disasters could affect business operations, the workforce markets, infrastructure, raw materials, and assets of companies.

▪Extreme weather conditions in southern United States and northern Mexico have disrupted the supply of natural gas and energy to operations in Mexico, negatively impacting steel production levels.

▪Droughts in Monterrey, Mexico, affect the availability of drinking water for the community, so the company is continuously using alternative sources and making a more efficient use of this resource.

▪Heavy rains in Brazil and Argentina have hindered personnel access to facilities, limiting steel production.



32. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

Ternium classifies climate-related risks into two categories: transition risks and physical risks.

Regarding physical risks, during 2021 and 2022, the company engaged an external consultant to assess the exposure of its assets and provide a conclusion on the level of risk (Risk Index) considering the established preventive measures. The analysis considered the exposure and vulnerability to five types of events:

< Pluvial flooding

< Tropical cyclones

< Landslides

< Forest fires

< Droughts

Prediction models were based on Representative Concentration Pathways (RCP): 4.5 (intermediate) and 8.5 (extreme with very high GHG emissions) from the Intergovernmental Panel on Climate Change (IPCC) and covered the periods 2020 to 2039 and 2040 to 2059.

The analysis concluded that Ternium’s facilities do not pose significant risks, given the level of exposure and the mitigation and adaptation measures already implemented by the company across the scenarios and time periods analyzed. These results remain relevant, and the company is exploring options to establish a more frequent monitoring system.

OPPORTUNITIES

Currently, Ternium is focused on developing a range of lighter steel products while maintaining durability and strength. In the renewable energy sector, Ternium supplies galvanized steel to manufacturers of support structures for solar panels in Mexico and Argentina. Furthermore, the hot rolling mill in Pesquería, Mexico, is equipped with technology that enables the production of high-value-added steels for the automotive industry. For the construction sector, Ternium has designed a family of coated steels and sustainable insulation panels, combining environmentally friendly components and energy-saving solutions.

The company continuously strives to develop new products with a strong focus on sustainability. In 2024, we submitted two projects to the "Innovation of the

Focus on sustainability

In 2024, two of Ternium’s projects were shortlisted for the WorldSteel Steelie Awards in the "Innovation of the Year" category. The company is strongly committed to developing high-quality products with enhanced sustainability performance.

Year" category of the WorldSteel Steelie Awards, both of which were later shortlisted. The first project, "Nitrogen and Residuals Control in EAF for Automotive and High-End Applications," focuses on controlling nitrogen and residual elements in raw materials. It optimizes process parameters to reduce nitrogen content and prevents nitrogen pickup throughout the DRI-EAF steelmaking route. The second project, "Steel Solutions for Optimized Truck Trailers Used for Freight Transport," aims to improve efficiency and sustainability in the transportation sector through specially designed products. First, specialized steels reduce trailer weight, enhancing fuel efficiency and lowering emissions. Second, wear-resistant steel solutions extend the durability and lifespan of truck trailers by combining structural and high-performance steels. Both approaches prioritize safety, efficiency, and



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	33




STEEL RAW MATERIALS									Scrap is a key raw material for the steel industry. In 2024, Ternium used 2.7 million tons in its production process, a figure expected to grow with the construction of the scrap yard in Brazil and the start-up of the DRI-EAF in Pesquería.

sustainability while incorporating recycled materials to support circular economy principles and reduce environmental impact.

In 2024, Ternium sold approximately $232 million worth of products for use in renewable energy projects, electric vehicles, transportation solutions designed to reduce weight or increase capacity, and packaging that is more environmentally friendly compared to alternative materials.

2024 PERFORMANCE

In 2024, Ternium’s CO2e emission intensity rate for hot-rolled steel (Scopes 1, 2 and 3, category 1 and 10) under the GHG Protocol methodology was 2.2 tons of CO2e

per ton of hot-rolled steel equivalent. Under the worldsteel methodology, the emission intensity for crude steel (Scope 1 and 2) in 2024 was 1.7 tons of CO₂ per ton of crude steel. This figure is consistent with previous years and aligns with the global steel industry average, according to worldsteel data.

Throughout the year, the company continued the execution of its decarbonization projects:

< Renewable energy: The wind farm in Olavarría,

Argentina, began operations, marking a significant milestone in the company’s renewable energy initiatives. The wind farm features 22 turbines, each with a capacity of 4.5 megawatts, totaling an installed capacity of 99 megawatts. This facility is expected to generate approximately 480 gigawatt-hours of renewable energy



34. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

480

GWh OF RENEWABLE ENERGY CAPACITY

FROM THE WIND FARM BUILT IN ARGENTINA, REDUCING RELIANCE ON THE NATIONAL GRID

274

THOUSAND TONS OF CO2

WERE CAPTURED AND SOLD

BY THE COMPANY IN 2024

annually, enabling Ternium to replace about 90% of the electricity it currently purchases from the national grid in Argentina. This shift will result in an estimated reduction of 111 thousand tons of CO2 emissions each year.

< Utilization of low CO2 emission technologies: Continuation of

the construction of the steel mill in Pesquería (Mexico), based on DRI-EAF technology. The project incorporates the use of renewable energy, CO2 capture, and the potential transition from natural gas to green hydrogen in the DRI module when economically feasible. Commissioning is expected by 2026.

< CO2 capture and usage: During 2024 the company captured

and sold 274 thousand tons of CO2, equivalent to the annual CO2 emissions of 59 thousand gasoline-powered passenger vehicles, according to the United States Environmental Protection Agency (EPA). This helps

prevent emissions in other industries, such as carbonated beverages and chemicals. Given the positive experience in Mexico, studies are underway for CO2 capture and usage at our facilities in Brazil.

< Increase of scrap in the metallic mix: The scrap yard

construction project in Brazil is underway to increase the scrap share of this steel mill up to 16%. The project is expected to be completed by 2025.

< New raw materials for use in blast furnaces: The company is

actively exploring the partial replacement of coal in our facilities in Argentina and Brazil. It conducted successful pilot and industrial tests for the use of various types of charcoal derived from biomass and forestry as a substitute for mineral coal in the coking facilities at its steelmaking sites in Brazil and Argentina. Efforts are now underway to identify charcoals with sustainable certification at a competitive price.

Ternium anticipates that emission intensity will begin to decrease in 2027, as decarbonization projects are completed and reach their full operational stage.

Implementation of systems for GHG inventory management and calculation

As part of Ternium’s GHG management system, the company has an online platform to calculate GHG emissions using the carbon balance approach outlined by the GHG Protocol methodology. This system allows us to manage emissions at the process line level across all our operations, improving transparency and accuracy in our calculations and facilitating the successful verification of our inventory by an external third party for the fourth consecutive year. The company continues to advance the systematization of products’ carbon footprint calculations.

Furthermore, as part of our sustainable sourcing practices and efforts to improve the accuracy of Ternium’s corporate GHG emissions inventory, we are actively collecting data on the emissions intensity of raw materials and steel purchased from third parties. This initiative strengthens our Scope 3 emissions assessment and helps identify key suppliers for further engagement. As a result of the 2024 campaign, 84% of scope 3 emissions from raw materials and steel purchases were



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	35

TERNIUM’S DECARBONIZATION PROJECTS

PROGRESS DURING 2024

PROJECTS EXECUTED

PROJECTS ANNOUNCED OR UNDER EXECUTION

PROJECTS UNDER ANALYSIS

INITIATIVES

MEXICO

BRAZIL

ARGENTINA

PROGRESS DURING 2024

Energy efficiency
initiatives

–Mexico: Puebla facility was certified under ISO 50001. Additionally, the lighting system modernization project continued in both Mexico and Argentina.

–Brazil: Project at the hot blast stoves to increase blow temperature by approximately 130°C and reduce the use of fossil reductants.

–Argentina: Replacement of steel ladle heaters in the Steel Plant, reducing natural gas consumption.

Scrap in the
metallic mix

–Ongoing project to increase the scrapyard capacity in Brazil. Estimated completion during 2025.

Alternative raw materials-biomass

_ Identifying charcoal suppliers with sustainable certification and exploring potential developments through synergistic partnerships.

Renewable
energy

–Argentina: Start of operations at the wind farm with a total installed capacity of 99 MW.

–Mexico: Installation of small solar farms at productive sites and service centers. Analysis of partnerships with renewable energy producers.

Carbon capture
and usage

–Mexico: Closed negotiations for the sale of CO2 from the future Direct Reduction facility at the Pesquería unit, Mexico.

–Brazil: Prefeasibility studies for Carbon Capture, Usage, or Geological Storage continue.

Low carbon technologies

–Mexico: Ongoing construction of the steel mill in Pesquería (Mexico), based on DRI-EAF technology.

–Argentina: Analysis of alternatives to adapt the BF-BOF technology to one with lower emissions.



36. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

calculated using specific supplier data. Additionally, in 2024, all relevant categories (C1, C3 and C4) and certain non-relevant categories (C5, C6, C9, and C10) were included in our corporate inventory.

It is worth noting that significant work remains for the industry as a whole to establish common criteria for measuring the different categories of Scope 3 emissions. worldsteel is actively working on updating emission factors for aluminum and ferroalloy production, and is analyzing the inclusion of upstream methane emissions from natural gas and coal production. We have already updated some Scope 3 emission factors, but we anticipate that these initiatives could impact Scope 3 measurements in the future.

ENERGY MANAGEMENT

Ternium is committed to improving its environmental and energy management systems. The company operates

with the aim of achieving a circular economy and minimizing CO2 emissions through efficient energy management.

Depending on the technology used, Ternium’s power plants in Brazil and Argentina reuse recovered residual gases from iron and steel production processes, such as blast furnace gas (BFg), basic oxygen furnace gas (BOFg), and coke oven gas (COg), as well as residual heat from coke production.

The power plant in Brazil supplies energy to the steel production process and sells 40% of the electricity generated to the national grid and private off takers. Additionally, the company is reducing its natural gas consumption in Brazil by using biomethane obtained from urban solid waste. The substitution rate of fossil natural gas with biomethane was around 22% in 2024, making it a flexible and renewable energy source.

In Argentina, the company uses process gases to produce electricity that partially covers its needs. In 2024 we




SUSTAINABLE GROWTH STRATEGY									Ternium is developing a cutting-edge steelmaking facility in Pesquería (Nuevo León, Mexico), following the company’s decarbonization plan.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	37

inaugurated the wind farm in Olavarría that will replace 90% of the electricity currently purchased from third-parties.

In Mexico, Ternium contracts the supply of electricity to Techgen, a combined-cycle power plant owned in partnership with Tenaris and Tecpetrol. Of Techgen’s 900-megawatt capacity, Ternium purchases 78% for its own use and sells the surplus to the Mexican market. The use of electricity from Techgen represents a reduction in Ternium’s scope 2 market-based emissions compared to using electricity from the national grid. Additionally, in 2024 Ternium acquired, through Techgen, clean energy certificates equivalent to almost 10% of its electricity consumption in Mexico.

Looking ahead, Ternium aims to achieve a 40% share of renewable electricity of the purchased electricity by 2030 (up to hot rolling process).

Energy efficiency: Ternium’s commitment to continuous improvement

Energy efficiency plays a vital role in decarbonization efforts, as electricity consumption from fossil sources is directly related to greenhouse gas emissions. Additionally, reducing electricity consumption leads to economic savings and, depending on the project, an improvement in overall productivity.

In 2014, the company launched a comprehensive energy efficiency program to identify and exploit energy-saving opportunities. Since then, the program has expanded and is reviewed annually in light of the latest technological advancements and market best practices.

Some of the projects executed during 2024 include:

< In Argentina: We replaced ladle dryers in the steel

manufacturing process to optimize natural gas consumption. This project led to a reduction of over 2.0 million m³ of natural gas per year, equivalent to mitigating more than 4,000 tons of CO2 annually. Additionally, throughout 2024, the company continued upgrading lighting systems across its plants. At the San Nicolás facility, 67% of traditional high-bay lights were replaced with LED technology, along with 95% of roadway lighting.

22%

SUBSTITUTION RATE

OF NATURAL GAS

WITH BIOMETHANE IN BRAZIL

90%

ESTIMATED REPLACEMENT

OF THE ELECTRICITY PURCHASED

FROM THE NATIONAL GRID WITH THE NEW

WIND FARM IN ARGENTINA

< In Mexico: We have improved the control and

measurement systems of the electric arc furnaces (EAF), further optimizing electricity consumption during the process. Additionally, we have achieved a 92% progress rate in replacing outdated lighting systems with LED technology at the Guerrero, Pesquería, and Tenigal plants. Over the past year, this initiative has resulted in energy savings of approximately 54,000 GJ.

Furthermore, a project is currently underway to enhance the electricity measurement system at the Guerrero plant, with more than 100 devices already installed.

< In Brazil: The blast furnace regenerator system (hot blast

stoves) optimization project is currently in progress. This initiative aims to increase the blast temperature by approximately 130°C compared to the baseline year, enhancing furnace efficiency. As a result, the



38. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

consumption of fossil-based reducing agents, such as coke and PCI, will be reduced, contributing to a more sustainable operation.

Finally, Ternium’s energy management system is certified under ISO 50001. Currently, the facilities in Puebla, Guerrero and Pesquería in Mexico, San Nicolás in Argentina (except for industrial services), and Rio de Janeiro in Brazil are certified under this standard. For more information, please refer to Annex 2: Certifications in this report.

USIMINAS’ DECARBONIZATION COMMITMENT

As part of its commitment to sustainability, Usiminas has developed the 2030 Decarbonization Plan, an integral part of its ESG strategy. This plan aims to reduce greenhouse gas emission intensity by 15% per ton of steel produced by 2030, using 2019 as the baseline year, considering scope 1 and scope 2 and calculated using worldsteel methodology. To achieve this, Usiminas focuses on four key pillars: Energy Efficiency, Biomass, Raw Material Optimization, and Renewable Energy. The plan is overseen by the Decarbonization Committee, which includes the company’s top leadership and is dedicated to driving progress.

The company quantifies its emissions annually through corporate GHG inventories following the GHG Protocol and WSA methodologies, with third-party verification in accordance with NBR 14.064 standards and recognition with the Gold Seal in the Public Emissions Registry –GHG Protocol. In 2024, Usiminas achieved a CO2 emission intensity of 2.16 tCO2 per ton of steel produced (considering scope 1 and 2), an improvement over the previous year, demonstrating continued progress in reducing its carbon footprint. For more information, please refer to Usiminas’s 2024 Sustainability Report.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	39


KEY FIGURES


GHG INTENSITY UP-TO-HOT ROLLED(1) GHG METHODOLOGY


CO2 CAPTURED AND SOLD TO THIRD PARTIES THOUSAND TONS


ENERGY INTENSITY PER TON OF CRUDE STEEL(2) WORLDSTEEL METHODOLOGY

(1) GHG specific emissions up to hot-rolled process is calculated by dividing Scope 1, Scope 2 and Scope 3 (Categories 1 and 10) emissions by the volume of equivalent hot-rolled products (considering own hot rolled production plus the equivalent of slabs and billets sold by Ternium and processed by third parties), in line with Ternium’s 2030 target. Emissions were calculated using the GHG Protocol methodology and include CO₂, CH₄, N₂O, HFCs, PFCs, and SF₆. Scope 1 emissions were calculated using direct carbon content measurements conducted by Ternium on key raw materials. Scope 2 emissions were estimated using market-based emission factors, based on data from local electricity suppliers.

(2) Energy intensity per ton of crude steel is calculated by dividing the energy consumed at Ternium's steel shops by the tons of crude steel produced. The energy consumption calculation follows worldsteel’s sectoral approach methodology, which has been published as International Standard ISO 14404:2013.



40. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

ENVIRONMENTAL RESPONSIBILITY IN OPERATIONS

SUSTAINABLE DEVELOPMENT GOALS



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	41

GOALS & ACTIONS

2024 KPIs

GOALS

▪To prevent pollution at the source, minimizing the impact of the company's operations on the environment.

▪To make efficient use of resources.

▪To minimize water withdrawal in water-stressed areas.

▪To promote circular economy and develop new markets for steelmaking co-products.

▪To preserve biodiversity within the company's area of influence.

▪To incorporate environmental factors into all company decisions.

▪To promote environmental stewardship within our industry and throughout our value chain.

▪To raise environmental awareness among our employees and the communities in which we operate.

$120

MILLION INVESTED

IN ENVIRONMENTAL

PROJECTS

100%

OF CRUDE STEEL PRODUCED

IN ISO 14001

CERTIFIED FACILITIES

91%

OF CRUDE STEEL PRODUCED

IN ISO 50001

CERTIFIED FACILITIES

98.8%

OF MATERIAL EFFICIENCY

(MATERIAL CONVERTED

INTO PRODUCTS

& CO-PRODUCTS)

ACTIONS

▪Execution of the 2020–2030 Environmental Investment Plan: $556 million.

▪Implementation of improvements in environmental monitoring and deployment of technological solutions to enhance environmental conditions.

▪Design of facilities and processes with a water stewardship approach, including closed-loop water systems and prioritization of treated wastewater use.

▪Promotion of alternative uses for co-products generated during the steelmaking process.

▪Certification under ISO 14001 across major facilities.

▪Alignment of environmental concepts and management practices across all production units in the countries where Ternium operates.

Note: Figures do not include Usiminas



42. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

GOVERNANCE

Environmental performance is monitored monthly in meetings with executive officers dedicated to environment, health and safety matters. In addition, environmental topics are regularly discussed during industrial and business performance reviews, both at the local and corporate levels. The Board of Directors is also informed on a quarterly basis about any environmental incidents that could affect surrounding communities or potentially impact Ternium’s reputation or operations.

Recognizing the close link between industrial activity and environmental performance, Ternium integrated its Environment and Health & Safety departments in 2021. Both areas are now overseen by the Chief Environment, Health & Safety Officer.

Ternium’s Environmental and Energy Policy serves as the company’s main standard on environmental matters. It establishes the overarching principles for environmental protection, energy efficiency and sustainable resource use. This policy guides the development and continuous improvement of the company’s Environmental Management System, as well

OUR STRUCTURE

ENVIRONMENTAL GOVERNANCE



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	43

as the implementation of specific procedures and practices aimed at minimizing emissions, waste, and other environmental impacts. Through this framework, Ternium ensures compliance with applicable regulations, promotes pollution prevention, and fosters a culture of environmental responsibility and innovation across all operations. Ternium’s environmental and energy policy is available on the company’s website and at the end of this chapter.

As of 2024, 18 of Ternium’s 19 steel production and processing facilities have been certified under the ISO 14001 standard (some service centers are also included in the multi-site certificate). Additionally, the


“We invest in modernizing our facilities and adopting cutting-edge technologies to reduce our environmental impact. Integrating safety, health, and environmental management enhances our ability to protect people and the environment.”

									MARINA CHIESA CHIEF ENVIRONMENT, HEALTH AND SAFETY OFFICER

operational mining units (the Aquila site, the Tecomán transfer station, the Alzada pelletizing facility and the Palomas mine), have received this certification. The Pesquería facility was certified under the LEED scheme in 2017.

STRATEGY

Ternium’s environmental performance strategy encompasses the following components:

< Establishing consistent environmental standards across all sites under Ternium’s operational oversight.

< Developing a unified environmental management system to streamline the certification process under international standards.

< Regular auditing to keep environmental and energy management processes up-to-date and identify areas for improvement.

< Establishment of a fully integrated environmental incident reporting and investigation system, combined with the Health and Safety Management System, to ensure a holistic approach.

< Improvement of the company’s environmental data management system including online monitoring.

< Execution of a ten-year investment plan focused on improving environmental performance. In 2024, investments amounted to $120 million, representing a 22% increase from the previous year.

< Utilization of the best available techniques (BAT) to minimize impact and prevent pollution. Investment projects include BAT evaluation to improve performance beyond local compliance standards.

< Updating Life Cycle Assessment (LCA) and Environmental Product Declarations (EPD).

< Inclusion of environmental topics within Ternium University’s courses and curriculum to increase awareness on the matter. As of 2024, 84% of Ternium's workforce has received training on environmental issues.

< Participation of Ternium’s management in environmental committees of different organizations, such as Alacero in Latin America and worldsteel worldwide, building knowledge of best practices.



44. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

2024 PERFORMANCE

The following section describes Ternium’s approach to managing different environmental aspects of the production process, the projects recently executed or planned for the coming years, and the performance achieved during 2024.

Water management

Ternium places a strong emphasis on responsible water management in its operations, implementing a site-specific strategy that considers the unique characteristics of each operating location. Through continuous adoption of cutting-edge technologies, Ternium aims to enhance water management practices across the entire cycle, from intake to discharge, thereby reducing its environmental footprint and promoting sustainable water usage.

In 2024, Ternium’s total water intake, which includes steelmaking, downstream processing, and electricity production, amounted to 754 million m3. Only 2% came from regions classified as having high or extremely high water stress according to the Water Risk Atlas of the World Resources Institute (WRI) version 4.0. The primary use of water was for the power plants in Argentina and Brazil, where nearly all intake is returned to its source. As a result, total water consumption, representing water lost in the process (mainly due to evaporation), amounted to only 7% of the annual intake in 2024. Excluding power plants, water intake for steelmaking and downstream processes in 2024 was 167 million m3, with approximately 10% located in high or extremely high water stress areas (Mexico).

Over the years, Ternium has developed various strategies to minimize water usage at its Mexican steel facilities, achieving a water use intensity rate of just 3.2 cubic meters per ton of crude steel produced in 2024 (including reused water). This figure significantly contrasts with the average intake intensity of 28.1 m3 per ton of crude steel in Electric Arc Furnace technology facilities reported in a 2011 worldsteel study.

The company has also consistently increased its use of third-party water in Mexico, primarily treated sewage water from external wastewater treatment plants or sourced directly from municipal sewage systems.

53%

OF WATER INTAKE

AT STEEL FACILITIES IN MEXICO

COMES FROM TREATED SEWAGE WATER

3.2M3/TON CRUDE STEEL

WATER USE INTENSITY RATE

AT MEXICAN STEELMAKING SITES

Consequently, treated sewage water accounted for 53% of water intake at Ternium’s Mexican steel facilities in 2024, with the Pesquería facility sourcing 95% of its water from treated sewage instead of groundwater.

As water plays a significant role in Ternium’s production system, both in cooling machinery and steam generation, and considering that water availability varies across its locations, the company views water as a critical resource in designing new facilities. As an example, the Palmar de Varela facility in Colombia, inaugurated in 2021, operates with a 100% closed circuit system, replenishing water lost only due to evaporation and purges. Similarly, the hot rolling mill in Pesquería, Mexico, follows this closed-circuit principle.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	45




WATER TREATMENT AT TERNIUM'S FACILITIES									To support sustainable water management, Ternium’s steel facilities in Mexico use treated sewage water, significantly reducing their dependence on groundwater sources.

Moreover, Ternium’s water management system ensures that water discharged is cooled, treated and safely returned to its source. With this approach, the company rigorously monitors the quality of water intake and discharge to comply with local environmental regulations. All facilities assess water quality using multiple physicochemical and bacteriological parameters. At the corporate level, Ternium developed a managerial platform for monthly monitoring of KPIs related to the intake, reuse, consumption and discharge of all operational steelmaking and downstream processes sites.

Some recent projects related to water management are the following:

Mexico

At the Guerrero facility, we implemented effluent treatment processes to increase the availability of reused water and reduce groundwater extraction, like the installation of a reverse osmosis processes. This enables water to be reused while achieving high quality standards. In 2024, storm Alberto raised reservoir levels and temporarily eased water availability issues in Nuevo León. However, as the region remains classified as water-stressed, a comprehensive water plan is being developed to reduce groundwater use at the Guerrero and Apodaca facilities and to enhance discharge control and water reuse practices.



46. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

A continuous commitment

Ternium has developed a series of initiatives to control and reduce air emissions at the source, improve the treatment of process gases and ensure compliance with local air emissions standards.

Argentina

We are advancing in the unification of discharge streams at the San Nicolás facility by channeling and pumping all effluents into a single sedimentation unit. This integration will simplify the monitoring of effluent quality and strengthen our efforts to improve water management across the site.

Additionally, a new sludge dewatering unit using geobags was installed at the steel shop’s water treatment plant. This system helps to reduce sedimentable material in the treated river water and produces inert sludge that can be repurposed for various applications, while also enhancing the quality of the final effluent.

Brazil

We implemented an online monitoring system to track water reuse across the operations. Through the development of a digital dashboard within the Plant Information Management System (PIMS)—based on existing flow meters—water reuse flows became visible

in real time. As a result, water reuse increased almost 2% from 2023 to 2024. Additionally, the company launched a potable water use reduction plan aimed at improving efficiency. Key actions included identifying and prioritizing areas without flow measurement instruments, setting consumption targets based on historical data, inspecting and upgrading infrastructure through the installation of automatic valves and faucets, and promoting the use of reused water in place of potable water in selected processes. The initiative also involved internal communication campaigns to raise awareness about water consumption.

Air quality management

Atmospheric emissions, which extend beyond carbon dioxide (CO2), pose a significant challenge in the industrial sector due to their impact on air quality and the environment. The main emissions from the steel industry are NOx, SOx, and particulate matter (PM). Controlling and reducing emissions are environmental imperatives and a social responsibility for all industrial companies.

Aware of this responsibility, Ternium has developed a series of initiatives to reduce air emissions at the source, improve the treatment of its process gases, and ensure compliance with air emissions standards at each location. Some of the projects under execution or finalized are the following:

Mexico

We implemented a range of initiatives at the Guerrero facility with the aim of minimizing diffuse emissions, particularly in raw material handling, steelmaking and direct reduction operations. These measures include using dust suppressors with reused water during operations and applying a mixture of molasses and reused water on roads and pathways to control particulate matter. Some of the infrastructure projects include upgrades to the direct reduction iron handling system and installation of a new dust collector, construction of the roofing of slag pits and modifications to the transfer system to improve dust containment and material preservation. Additional measures include the construction of silos for fume house dust, sealing of the steel shop and caster building façades and the installation of a gas scrubbing system for cold venting at the continuous feeding area. In the



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	47

Alzada facility we introduce a sulfur flotation plant to enhance environmental performance.

Argentina

At the San Nicolás facility, we have implemented several initiatives to strengthen air quality management. These include the renewal of the steel shop’s dust collection, transport, and flow control systems, significantly improving dust capture efficiency. Additionally, new igniters were installed in the coke batteries to ensure more effective combustion of gases emitted through the flaring system. The facility is also equipped with an air quality monitoring system based on LiDAR (Light Detection and Ranging) technology, installed in previous years, which enables real-time data collection to support environmental management.

Brazil

As part of a broader technological upgrade, new particulate matter (PM) monitors were installed at the three air quality monitoring stations located in the community’s surrounding areas. Additionally, a project was launched to enhance the management of continuous emissions monitoring data, enabling the integration of key process variables associated with emissions into an online platform, with system testing scheduled for 2025. To improve operational continuity and emission control, a Switch Over Station (SOS) was installed at the steel shop, allowing electrostatic precipitators to be switched for maintenance without halting the converter. The company also completed a revamping of the electrostatic precipitators in both the




MONITORING CENTER IN RIO DE JANEIRO									In Brazil, Ternium has an online air-quality monitoring center that tracks environmental performance indicators, allowing real-time decision-making.



48. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

steel shop and the sinter plant. Further improvements include an ongoing project to revitalize the coke plant to ensure long-term refractory integrity and reduce potential diffuse emissions. Additionally, the Automatic Network for Monitoring Fugitive Particulate Emissions (RAMP) project is underway at the co-products yard. This project is part of a larger plan that includes all yards that receive, process and store co-products.

Material efficiency and recycling

Steel plays a key role in building a more sustainable future, thanks to its ability to be endlessly recycled without any loss in quality or property.

At Ternium, all steel scrap generated at the company’s facilities is fully recycled. Additionally, Ternium sources scrap from external scrap-processing companies and collection firms. In 2024, the company recycled 2.7 million tons of steel scrap to produce new steel, without affecting the final properties of steel products.

Local governments have a critical role to play in advancing the circular economy by encouraging the reuse and commercialization of co-products and scrap metal from the steelmaking process. A key step would be formally recognizing scrap as a key raw material rather than as waste. This regulatory shift would modernize waste management practices, promote sustainability, and unlock the full potential of circularity in the steel value chain.

Ternium is also committed to minimizing waste and maximizing material efficiency across its operations. For example, fines from raw materials (iron ore, coal, coke, lime and dolomite), as well as dust and sludge from effluent treatment systems, are recovered through sintering and briquetting processes to be reused as raw materials, thereby avoiding waste generation and reducing the consumption of virgin raw materials.

The company generates a range of co-products—including blast furnace and steel shop slag and various chemical substances—which are sold and used by other industries, helping them reduce both raw material consumption and energy use. This, in turn, has a positive impact on CO₂ emissions and waste generation

across the value chain. In facilities with blast furnaces, the granulated slag is sold to the cement industry as a substitute for clinker. Additionally, the slag generated in the steel shop is also used to consolidate roads and therefore avoid the use of new materials. In Mexico, the dust and slag generated by the electric-arc furnaces at our Guerrero and Puebla facilities and the scales from our hot rolling mills in Pesquería and Churubusco are transformed into Mix Rock®, an innovative co-product developed and registered by Ternium, and other mixes. In 2024, Ternium sold 141 thousand tons of Mix Rock® and other mixes to the cement industry.

The company also uses process gases generated during the processing of metallurgical coal in the Blast Furnace route to generate co-products. In Argentina, Ternium treats these gases and produces chemical products such as tar and benzol, which are sold to third parties.

As a result of these and other initiatives, in 2024 Ternium achieved a material efficiency rate of 98.8% in its steel operations, with 4.5 million tons of co-products and recovered materials either reused internally or sold to other industries.

Life cycle and environmental product declarations

Ternium evaluates the life cycle of its steel products and actively participates in worldsteel’s Life Cycle Assessment (LCA) initiatives to better understand and improve their environmental footprint.

In line with ISO 14040 and 14044 standards, LCAs provide a comprehensive inventory of the energy and materials used throughout the steel value chain, enabling a more accurate assessment of environmental impacts. In 2024, Ternium’s LCA reporting covered 98% of its crude steel production.

To meet growing customer demand for transparency, Ternium has developed eight Environmental Product Declarations (EPDs) for different product families produced in Mexico. These documents provide detailed information on each product’s environmental performance, including carbon footprint and other key indicators. All EPDs are available on Ternium’s website.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	49




PROTECTION OF LOCAL SPECIES									Ternium is collaborating with the University of Rio de Janeiro and the Boto Cinza Institute in a marine biodiversity research focused on the study of the grey dolphin (Sotalia guianensis), a key player in Brazil’s ecosystem.

Biodiversity endeavors

Ternium takes proactive steps to preserve local biodiversity before developing new facilities. Within the Pesquería Industrial Center, the company created an ecological reserve of over 80 hectares to protect the site’s biodiversity and integrate nature with industrial activity. In Brazil, the company has a broad strategy to protect the fauna and flora of Sepetiba Bay, including 160 hectares (395 acres) of mangroves.

Every new project is assessed considering the impacts on biodiversity. For example, following the announcement of its new steelmaking facility in Pesquería, Mexico, Ternium launched a Wildlife Rescue Program aimed at protecting local flora and fauna prior to construction. As a result, over 16,800 plants—including species such as Colima, Cenizo and Gavia—were successfully preserved. Additionally, 50 animals, including reptiles and small mammals, were rescued and relocated,

reflecting the company’s strong commitment to biodiversity conservation.

Another example is the work carried out during the construction of the wind farm in Argentina. Ternium conducted a baseline analysis of the flying fauna species that could be affected, with a focus on documenting globally threatened species according to the criteria of the International Union for Conservation of Nature (IUCN). The development of the Flying Fauna Baseline is part of the BACI analysis (Before-After-Control-Impact), as recommended by the 2019 Good Practices Guide for Wind Development in Argentina. Based on this, we will continue seasonal monitoring of birds and bats. We also completed environmental characterization maps, including topography, hydrogeology, vegetation, and the definition of landscape units.

The company carries out extensive fieldwork to identify ecological connectivity areas. These efforts include continuous environmental monitoring, wildlife rescue



50. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

ECOSYSTEM RESTORATION PARTNERSHIP

REVIVING UANL’S “BOSQUE ESCUELA”

On February 16, 2024, Ternium México signed a collaboration agreement with the Universidad Autónoma de Nuevo León (UANL) to restore 233 hectares (576 acres) of forest land within the university’s “Bosque Escuela” (Forest School), which was severely impacted by a wildfire on April 28, 2021. This initiative aims to recover the ecosystem services of the affected area and promote long-term environmental resilience.

The restoration plan includes a series of coordinated actions such as installing a 13,000-meter perimeter fence, rehabilitating 8,000 meters of access roads, building around 700 check dams, and creating 32,000 square meters of firebreaks. Additionally, the project involves constructing over 29,000 meters of soil retention works using vegetation, trenches, or rock structures, and reforesting 230 hectares with over 69,000 native seedlings (equivalent to 300 plants per hectare).

To support this reforestation effort, a forest nursery will be rehabilitated to ensure annual seedling
production. The project also includes a structured maintenance and ecological monitoring program. By the
end of 2024, 35% of the restoration work had been completed, with full implementation expected by 2025. Ongoing quarterly maintenance of the planted areas will be continued thereafter.

programs, and the installation of wildlife crossings—such as gates for reptiles, amphibians and small mammals—to maintain habitat connectivity.

In 2024, Ternium conducted a biodiversity assessment using the IBAT platform, focusing on the geographic locations of its mining, steelmaking and hot rolling operations. The analysis covered a 50-kilometer radius around each site and considered three key aspects: Protected Areas, Key Biodiversity Areas (KBAs) and Threatened Species listed by the IUCN Red List. These findings will help Ternium further focus and adapt its conservation efforts in areas of greater ecological significance.

Protecting the grey dolphin and marine biodiversity
in Brazil

Ternium is actively participating in a marine biodiversity research project in collaboration with the Federal University of Rio de Janeiro and the Boto Cinza Institute. The study focuses on the grey dolphin (Sotalia guianensis), a key species in the local ecosystem. The first phase of the project, completed in 2022, explored the species’ chemical and population ecology. It also generated important data on whale habitats, which helped authorities redefine navigation routes to reduce the risk of collisions with vessels.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	51

The second phase, launched in 2025, aims to deepen scientific knowledge of dolphins and whales in Sepetiba and Ilha Grande Bays, through research on ecology, health and conservation, as well as educational outreach. This includes analyzing the presence of compounds such as pharmaceuticals and UV filters in marine mammals, studying viral agents to better understand potential public health risks, and promoting marine conservation in nearby communities through school-based awareness programs, with the grey dolphin as a flagship species.

Reforestation and biodiversity conservation in mining operations (Mexico)

Ternium’s mining units, Las Encinas and Peña Colorada, continued strengthening their environmental efforts in 2024 through large-scale reforestation and biodiversity protection programs. At Las Encinas, over 19,800 trees were planted in new areas, complemented by more than 78,000 trees for enrichment and replanting purposes, covering 19.4 new hectares and maintaining more than 310 hectares (765 acres) previously reforested. The on-site nursery produced over 92,000 trees, with a production capacity of 200,000, and included 35 native species. Fire prevention and control efforts included the creation of 26,940 meters of firebreaks, covering nearly 116,000 square meters, and the containment of three wildfires in coordination with Comisión Nacional Forestal (CONAFOR). Wildlife conservation was also a key focus, with 125 animals from 37 different species rescued and relocated to safer habitats.

At Peña Colorada, reforestation efforts reached the milestone of 160,000 plants, 13 of which belong to species classified under protection by the NOM-059-SEMARNAT-2010 regulation. In wildfire prevention, 78.5 kilometers of firebreaks were established, and 16 wildfires were successfully controlled in partnership with CONAFOR’s firefighting brigades. Conservation funding included support annual feeding of local wildlife and a utility vehicle to strengthen field operations at UMA Palapo. Additionally, Peña Colorada invested in the rehabilitation of an educational corridor at the local Tortugario, promoting awareness about the ecological importance of marine turtles.

+19,800

TREES PLANTED

IN NEW AREAS AT LAS ENCINAS

MINING UNIT IN MEXICO

+26,900

METERS OF FIREBREAKS

TO HELP CONTAIN

WILDFIRES IN MEXICO

RISKS

Due to the nature of its steelmaking and mining operations, Ternium operates within a framework of increasingly comprehensive local, regional and national environmental regulations. Compliance with these standards requires the timely renewal of permits, as well as the continuous adaptation of processes and procedures. While the company consistently works to meet these requirements, there may be occasions when additional regulatory oversight or administrative processes demand further attention and resources.



52. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

Ternium also faces environmental risks related to fluctuating natural conditions, such as water availability. Some of Ternium Mexico’s facilities are located in water-stressed regions, which could lead to operational challenges or increased water costs, particularly in the context of severe droughts. For instance, following the 2022 drought in the Monterrey area, Mexico’s national water authority suspended new freshwater concessions, a measure that remains in effect. While these actions have not significantly impacted operations to date, ongoing regulatory developments and national efforts to improve water sustainability—

such as proposed legislative reforms and the review of existing water concessions—may pose future challenges for industrial water use in the country.

Ternium continues to invest in environmental initiatives and management systems aimed at minimizing impacts and ensuring regulatory compliance. However, the risk of incidents, litigation or regulatory actions that could lead to reputational damage, production interruptions, or financial liabilities remains. For more information related to environmental risks, please refer to Ternium’s latest 20-F filing.




HABITAT CONNECTIVITY IN THE SURROUNDING AREAS									Preserving the environment is essential for Ternium. The company takes into account the native flora and fauna of the operational sites when undertaking new projects.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	53

USIMINAS: ADVANCING ENVIRONMENTAL COMPLIANCE AND COMMUNITY PROGRAMS

In Ipatinga, Usiminas operates a 24/7 Environmental Monitoring Center, to manage atmospheric emissions, air quality and effluents. The system is connected to local authorities and supports real-time data reporting, strengthening compliance and response capacity. As part of its Environmental Compliance Program, the company ensures risk prevention across operations. Both Ipatinga and Cubatão facilities are ISO 14001 certified, with high water recirculation rates of 94.8% and 95.28%, respectively, and a material efficiency rate above 98%.

Usiminas also leads impactful community-based environmental initiatives. Since 2015, the “Usiminas Mobiliza” program has supported rural infrastructure by donating steel aggregates, restoring 5,200 km of roads and benefiting over 1.5 million people in 60 municipalities. In exchange, local governments commit to socio-environmental projects, including the recovery of native springs. In 2024, over 644,000 tons of aggregates were donated, and 790 new springs were registered, bringing the total to 6,820. The company also maintains ongoing fauna and flora protection programs across its operations. For more information, please refer to Usiminas 2024 Sustainability Report.



54. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW


KEY FIGURES


INVESTMENTS IN ENVIRONMENTAL PROJECTS $ MILLION


PARTICULATE MATTER EMISSIONS() (*) KG/TON CRUDE STEEL

(*) The information presented corresponds to Ternium’s steelmaking sites. For more information,
please refer to the Annex 6: ESG Historical Data.


WATER MANAGEMENT AT MEXICAN STEEL FACILITIES MILLION CUBIC METERS – M3/tons of crude steel


CO-PRODUCTS REUSED OR SOLD TO THIRD PARTIES() (**) MILLION TONS

(**) Air emission figures for 2023 include specific measurements taken at the sinter plant
in Argentina, representing an improvement over previous years when estimates were used
due to data limitations.

(***) Co-products and recovered materials, reused or sold to third parties.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	55


ENVIRONMENTAL AND ENERGY POLICY


– – – – – – – – – – – – –			Ternium, an integrated steel company, whose processes range from mining operations to the manufacture of finished steel products, defines in this Policy its commitment to environmental protection and its goal of achieving excellence in environmental and energy performance throughout its operations. This Policy applies to Ternium and its subsidiaries. It will be actively disseminated to ensure compliance. The company believes that the sustainable development of its operations requires engagement through open dialogue with its employees, suppliers, contractors, customers and communities. Caring for the environment is a core value, and establishes the following principles: Environmental protection and energy efficiency is a responsibility of Ternium's personnel, as well as its suppliers and contractors. Pollution must be prevented at the source, controlling the significant environmental aspects of our operations and minimizing their impacts and risks. Compliance with the applicable legislation and voluntary agreements in relation to environmental protection and efficient energy consumption. Promotion of continuous improvement in environmental and energy performance and management systems to achieve the established objectives and targets. Integration of environmental and energy components into all company management processes. Planning and executing decarbonization roadmaps with the ambition to achieve carbon neutrality of our products and operations, according to technological feasibility and local market conditions. Using natural resources efficiently to contribute to circular economy. Minimizing air emissions at the sites where we operate, optimizing the use of water, and maximizing its reuse. Protecting biodiversity in areas where we operate and compensate the impacts where and when feasible. Application of life cycle perspective and risk management in our continuous improvement processes, when feasible. Promoting renewable energy generation and use, as well as the application of energy-efficient products, technologies and services, and the implementation of projects designed to improve energy and environmental performance, where significant. Encourage the purchase of sustainable and energy-efficient products, technologies and services. Promotion of employee training and awareness in relation to environmental protection and responsible energy use. The company must provide the information, means and resources to enable compliance with this Policy, as well as with the objectives and goals established, thus supporting sustainability throughout operations, considering the context in which it operates. All management levels are primarily responsible and accountable for environmental protection and energy consumption in their areas. July 2023

			Máximo Vedoya Chief Executive Officer



56. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

OCCUPATIONAL HEALTH
AND SAFETY MANAGEMENT

SUSTAINABLE DEVELOPMENT GOALS



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	57

GOALS & ACTIONS

2024 KPIs

GOALS

▪To consolidate a strong health and safety-oriented culture within the company and to extend best practices across our value chain.

▪To intensify preventive activities, particularly regarding high-risk activities.

▪To promote awareness and behaviors that enhance physical and mental well-being among all employees.

▪To establish a workplace free from fatalities and severe injuries.

$68

MILLION INVESTED

IN HEALTH AND SAFETY

PROJECTS

2.7

INJURIES

FREQUENCY RATE (IFR)

0.69

LOST TIME INJURIES

FREQUENCY RATE (LTIFR)

18% REDUCTION FROM 2020

95%

OF EMPLOYEES

AND CONTRACTORS

OPERATE ON SITES CERTIFIED

UNDER ISO 45001

214

THOUSAND

OCCUPATIONAL HEALTH

AND SAFETY INSPECTIONS

ACTIONS

▪Development of a five-year process safety program for integrated risk management.

▪Certification of main facilities under ISO 45001.

▪Implementation of planned and random inspections.

▪Introduction of preventive tools such as “task rejection”.

▪Improvement in employee training and safety awareness.

▪Creation of a High-Risk Task Certification Program with Ternium University.

▪Implementation of regular and recurrent communications on safety topics from management, including events such as Safety Day.

▪Implementation of ergonomics practices at all locations.

▪Development of the Safe Supplier program.

▪Participation in industry-wide health and safety initiatives such as worldsteel's Safety Day.

Note: Figures do not include Usiminas



58. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

SAFETY AS OUR NUMBER ONE CONCERN

Ternium has devoted significant efforts to create a culture under the idea of “Safety First.” This involves promoting an environment where safety is ingrained in every aspect of operations, from top-level management to hourly employees. By prioritizing safety and making it a core value, we believe we are not only protecting our workforce but also enhancing productivity, morale and overall business performance. Ultimately, a strong safety culture fosters trust, collaboration and a shared commitment to preventing accidents and injuries.

GOVERNANCE

Safety is embedded at every level of the corporate structure. The Board of Directors receives quarterly reports on recent incidents and updates on the Safety Strategy, presented alongside the company’s financial results.

At the management level, Ternium has a Chief Environment, Health, and Safety (EHS) Officer responsible for overseeing these matters and defining the company’s overall corporate health and safety strategy. Local EHS teams, together with the hygiene and medical

OUR STRUCTURE

HEALTH AND SAFETY GOVERNANCE



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	59

departments, support these efforts. Safety incidents are reviewed monthly at both the local and corporate levels. Ultimately, the primary responsibility for ensuring occupational safety within each facility lies with the local managers of each production unit.

Ternium’s Occupational Health and Safety Policy serves as the main framework for protecting the well-being of employees, customers, contractors and suppliers across its operations. Rooted in key principles such as injury prevention, regulatory compliance and continuous improvement, the policy emphasizes the shared responsibility of all stakeholders in fostering a safe and healthy work environment. The policy is available online on Ternium’s website and at the end of this chapter.

Safety is a shared responsibility across the organization. In line with this vision—and to recognize the daily commitment and efforts of all personnel—safety will be formally incorporated as a mandatory component of the performance evaluation process, starting with the July 2024 to June 2025 cycle.

To ensure consistency in how safety is evaluated, a guideline was issued outlining expectations structured around three key areas: (1) reducing risk in critical activities, (2) implementing preventive actions with a focus on quality over quantity and (3) monitoring reactive indicators from relevant events to assess whether preventive efforts are effectively targeted. The evaluation criteria are specifically designed to foster a proactive approach centered on prevention and risk mitigation, rather than a reactive response to incidents.

STRATEGY

Health and safety have long been a focal point of Ternium’s sustainability agenda, continuously evolving and undergoing reviews to incorporate industry’s best practices and insights gained from experience.

The key components of this strategy include:

< Unified safety management system

< Process safety management

< Accident investigation and risk management

< Definition of safety plans across locations

< Proactive and preventive activities


“Safety is a daily responsibility. We constantly work to align our operations with this value, ensuring that no matter how complex the task is, we always apply a safety-first approach.”

									MARINA CHIESA CHIEF ENVIRONMENT, HEALTH AND SAFETY OFFICER

< Implementation of technology to mitigate risks and facilitate learning

< Education and training initiatives

< Engagement of top management and effective communication

< Integration of contractors into safety initiatives

< Occupational health initiatives.

Recently, the company has redirected its efforts to identify and address the root causes of major injuries and high-severity events, shifting away from a previous focus on traditional targets such as the Injury Frequency Rate (IFR) and the Lost Time Injury Frequency Rate (LTIFR).

Unified safety management system

Ternium relies on an integrated Occupational Health and Safety (OH&S) management system in place throughout our industrial operations to ensure the consistent application of policies, methodologies and processes. Periodic audits of processes are conducted to identify new opportunities for enhancing the safety management system and ensuring compliance with local



60. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

regulations. 100% of employees and contractors are covered by the company’s safety management system.

The company’s OH&S management system is certified under the ISO 45001 standard. In December 2024, 89% of employees and contractors were working in ISO 45001 certified facilities, including both upstream and downstream operations.

Process safety management

Process safety is paramount in the steel industry, as it serves to avert major accidents and safeguard the well-

being of employees, the environment and company assets. Our focus on process safety management revolves around identifying, understanding and mitigating risks associated with operations, aiming to minimize incidents such as fires, explosions, exposure to hazardous chemicals and structural collapse.

The process safety management model, referred to as PSM, adheres to global best practices and is structured around three core pillars: technology, facilities and people. Our ultimate objective is to achieve operational excellence through stringent operational discipline and continuous process enhancement.

SIASSO MOBILE

ENHANCING SAFETY MANAGEMENT AT TERNIUM

As part of its simplification strategy, Ternium launched SIASSO Mobile, a digital tool that modernizes safety management by allowing employees to monitor and manage safety processes anytime, anywhere. This mobile application enhances flexibility and speed in risk assessments, with real-time alerts and data enabling proactive responses.

Designed for all levels of staff involved in industrial safety—executives, managers, safety teams and maintenance crews—across operations in Argentina, Brazil, Colombia, Guatemala, Mexico and the U.S., SIASSO Mobile supports event reporting, audits, safe-hour tracking and positive approaches directly from a smartphone, improving data quality and decision-making. In addition, Ternium added an EHS menu to its internal chatbot “Ternium Responde”

(available in all locations except the U.S.), offering features such as Simplified Event Reporting, Positive Approach Registration and Coverage, Safe Behavior Observation, Communication Routine and Task Rejection.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	61

The company consistently implements preventive measures and adds to its procedures recommendations from its risk insurers. Looking ahead, we are implementing a five-year strategic plan integrating objectives from the health and safety team with those of the maintenance departments. This plan encompasses projects such as implementing standardized protection barriers across our facilities in all regions. Moreover, we have refined our risk analysis procedures by integrating the Bow Tie methodology and enhancing tools for investigating process safety-related incidents.

In case of an emergency, the company has a corporate procedure for a quick response. The Crisis Management Procedure aims to provide comprehensive guidance for developing, implementing and maintaining effective crisis management strategies to minimize the negative effects and expedite the return to normal business operations. The procedure outlines types of crises, escalation criteria, and the roles and responsibilities of key personnel in managing and responding to crises effectively. Additionally, it emphasizes the importance of proactive measures, compliance with regulatory requirements, and clear and transparent communications to safeguard personnel, assets and the company’s reputation. It also defines the establishment of a Crisis Committee responsible for monitoring and coordinating crisis response efforts.

Accident investigation and risk management

Ternium’s management follows specific protocols when an accident or incident occurs at the company’s workplace, regardless of the severity of the damage or injuries caused by such an event. Data collection and fact analysis are conducted by multidisciplinary teams, with the participation of the director responsible for the involved area. Management uses all available resources that could contribute to the understanding of the event, including the Causal Factor Tree Analysis methodology.

Once the causes have been fully identified and understood, the company implements an action plan structured around a hierarchy of controls. The action plan is presented to the Environmental and Safety Committee and, three months later, a revision is conducted to determine the effectiveness of the proposed action plan in eliminating the cause of the situation or event that compromised safety.

This process is conducted within the SIASSO system, an internally developed OH&S platform, which incorporates a tool that assesses the robustness of the analysis and action plan. The tool prevents the process from concluding if specific parameters relevant to the type of event are not met. In other words, the severity of the event determines the level of analysis rigor required by the tool.

Specific protocols

When an accident or incident occurs at Ternium’s workplace, regardless of the severity
of the damage or injuries,
the company’s management uses all available resources
to understand the event’s causes.



62. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

Definition of safety plans across all Ternium locations

In 2024, the cross-facility safety plans were redesigned to enhance the effectiveness of company-wide initiatives. A new framework of responsibilities was established, along with a structured roadmap for each plan, resulting in the definition of twelve focused plans to be implemented across Ternium.

To ensure effectiveness, each focus plan has been assigned to one or more directors, who are directly responsible for driving progress. Their responsibilities include conducting diagnostic assessments of current conditions, benchmarking best practices, defining necessary actions and technological upgrades, updating or enhancing employee training in coordination with

LESSONS LEARNED FROM SEVERITY 4 EVENTS

TERNIUM’S CROSS-FACILITY SAFETY PLANS

As part of our strategy to strengthen the management of Severity 4 events, we are moving forward with a comprehensive roadmap that includes four key stages, each with clearly defined deliverables:

Diagnosis & Scope: Understanding the root causes of Severity 4 events. Deliverable: Initial situation assessment, action plan at Ternium level, implementation guidelines and key indicators.

Documentation: Collecting information with expert support and benchmarking. Deliverable:

Level 2 procedures and/or best practices guide and technological definitions.

Training: Reviewing and evaluating current programs. Deliverable: Improvement proposal with Ternium University, identifying best practices.

Monitoring: Defining tools for long-term sustainability. Deliverable: Monitoring tools (e.g., video analytics rules, standardized audit forms), including tech solutions.

A Cross-Ternium Safety Plan Committee will follow up on each plan according to an agreed annual schedule.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	63

Ternium University, and developing monitoring tools to track progress and effectiveness in the long term.

The twelve plans cover key areas such as Safe Cranes; Vehicle and Mobile Equipment Safety; Piping and Structures; Hot Metal Handling; Electrical Risk and Lightning Protection; Annealing; Pickling and Acid Regeneration Plants; Furnace Safety; Emergency Response Planning; Gases, Asphyxiation, and Explosion Prevention; and Fire Prevention.

In addition, the company continues to monitor progress and ensure compliance in other ongoing areas, including the standardization of Personal Protective Equipment (PPE), Radiological Safety and Safe Warehouse Operations.

Preventive activities

Ternium designs preventive activities to identify and mitigate potential hazards before they escalate into incidents or accidents. After reviewing the preventive processes, the company is focusing more on the quality of the tools rather than the quantity of activities and reports. Among Ternium’s preventive measures are the following:

< Safety and environment hour initiative: Managers conduct

tours through operational areas across the production

facilities. This initiative serves multiple purposes,

including identifying safe behaviors that can be

replicated across different facilities and addressing

unsafe acts or situations through open dialogue with

employees. The agenda of the visit is previously

defined and may include observing and evaluating

factors such as people’s behavior, safety conditions,

presence of accident precursors in the area,

operational discipline, and critical activities. Each

leader is required to complete a set number of visits

per month.

< On-site revisions: Tailored to the specific needs of each

area to ensure compliance with relevant OH&S policies, procedures, and practices. Last year, over 85,200 health and safety revisions were conducted outside the formal Safety and Environment Hour initiative.

ACTIVE SAFETY PLANS

IN PLACE ACROSS FACILITIES,

TARGETING CRITICAL AREAS

85,200

ON-SITE

HEALTH AND SAFETY REVISIONS

WERE CONDUCTED IN 2024

< Identifying precursors of serious injuries and fatal accidents:

The company has increased its efforts to identify signals of potential severe injuries or fatalities and has already registered several non-controlled repeating precursors. Some of them are protections and barriers, equipment lockouts and mobile equipment conditions.

< Task Rejection Tool: This tool strengthens people’s

determination not to start or, if started, to suspend a task when they consider that an uncontrolled risk is present. Task Rejection helps prevent injuries resulting from a lack of effective control of previously identified safety risks. The company encourages the use of this tool and has started recognizing workers when their personal analysis of Occupational Health and Safety conditions prevents the occurrence of a high-risk event. In 2024, we recorded approximately 17,500 reports, 27% of which involved potential high risks.



64. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW




TECHNOLOGY TO MINIMIZE RISKS									Drones are used for inspections and to reach areas of the plants that are difficult to access, preventing accidents and prioritizing safety.

< Pre-shift Assessments: The company has identified

behavioral factors, such as distraction, which contribute to certain accidents. This tool consists of assessing the condition of workers before their shifts. Initially, the focus is on workers who perform high-risk activities. The chosen approach is a Readiness Test conducted daily to hourly employees, utilizing normalized responses and artificial intelligence to assess employees’ general state. It measures parameters like impulse control, reaction time, attention and concentration over time. Its purpose is to ensure that workers are mentally prepared and focused, effectively preventing potential incidents. This tool is currently operative in Brazil, in the United States and in several facilities in Argentina, Colombia, Guatemala and Mexico.

Implementation of technology to mitigate risks and facilitate learning

We have implemented advanced technologies to enhance operational performance and minimize human risk exposure, following the principle of “no people on the floor.” For example, at the slabs yard in the new hot rolling mill in Pesquería, Mexico, we control all access points to prevent unauthorized entry and coordinate the movement of cranes and transport carts using a warehouse management system, making them autonomous.

Furthermore, we have embraced cutting-edge technologies to improve risk assessment, incident analysis and staff education in Occupational Health



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	65

and Safety. We have integrated advanced tools like Video Analytics, drones for inspections, remote assistance from the maintenance department, simulations of high-risk scenarios, and virtual reality into our operations.

Automated video analytics continuously monitor our operations, comparing real-time activities against established safety standards. When deviations are detected, alerts are immediately triggered, and the information is uploaded to the SIASSO platform. Starting in December 2024, the company also began using cameras and drones to conduct audits. These tools are especially useful for accessing more locations, covering different shifts, and observing complex tasks—even those where the presence of an auditor could introduce additional risk. The purpose of camera-based audits is not to replace in-person inspections, but to broaden our understanding of how work is performed beyond what is typically seen during routine site visits. In February 2025, an official module was introduced in the SIASSO platform to record the outcomes of these video-based inspections.

Moreover, technology helps us learn from past incidents. Using 3D technology, we simulate and analyze high-risk events to understand their causes and implement preventive measures. We also use virtual reality for training in hazardous tasks and maintenance activities, such as operating mobile equipment like forklifts, locomotives and cranes.

Education and training initiatives

The company is committed to training its employees, customers and suppliers on the appropriate use of the company’s OH&S management systems, as well as raising awareness of the risks involved in task execution.

Ternium University offers a diverse range of training courses on OH&S. In 2024, over 19,100 employees and contractors received an average of 16 hours of training on safety-related issues focused on Ternium’s OH&S programs and preventive measures.

Furthermore, teams from EHS and Ternium University have developed a certification program focused on activities that entail high risks, with the aim of ensuring that only specifically trained personnel perform the required tasks.

WORLDSTEEL RECOGNITION

SAFETY INNOVATION THROUGH ROBOTICS IN BRAZIL

In 2024, Ternium received the Safety and Health Excellence Recognition from worldsteel for its robotic automation initiative in Brazil. Since 2018, Ternium Brazil has leveraged robotic technology in its continuous casting process to eliminate human exposure to high-risk tasks.

Robots now perform critical operations such as ladle shroud manipulation, tundish insulation powder application, shroud showering, temperature and hydrogen probing, sampling, and ladle opening via oxygen lancing. Traditionally, each casting machine required two ladle operators, one technician and one coordinator.

With automation, the workforce has been reduced by one operator per machine—significantly improving safety and reducing exposure to hazards like burns, explosions, extreme heat and moving parts. This innovation not only enhances safety but also improves operational efficiency. Ternium continues to invest in robotics and risk prevention as part of its commitment to sustainable, safe steel production.



66. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

The program includes medical checkups, specific courses, on-the-job training, and a final evaluation authorizing employees to perform the tasks. Currently, the certification is mandatory for locomotive, forklift, and crane operators, as well as for maintenance tasks, work-at-heights or confined spaces, electrical risks and logout/tagout procedures. The certification process requires periodic re-certification every 1 to 3 years, depending on the nature of the activity and local regulations.

Additionally, the company has developed documents that define best safety practices for different groups, such as the guidebook for managers. This manual serves as a valuable resource, outlining expected behaviors and effective decision-making processes under various scenarios.

It was created based on insights and experiences shared by a diverse group of over 300 directors and managers from across the organization through virtual and in-person sessions. During these gatherings, participants discussed various topics relevant to leadership, including the 7 best practices, common mental pitfalls, the Bradley curve, along with other developments in the safety field. These best practices have also been extended to supervisors, hourly employees and contractors.

Engagement of top management and effective

communication

Over the years, Ternium has enhanced the visibility of safety issues through its communication platforms.

HOST AT TECHINT GROUP’S CONFERENCE

TERNIUM’S COMMITMENT TO OCCUPATIONAL HEALTH

In August of 2024, Ternium hosted the third edition of the Techint Group Occupational Health Conference at the Buenos Aires Convention Center, Argentina. The event gathered professionals from Ternium, Tenaris, Hospital Clínica Nova, Techint E&C, Usiminas, Tenova, and Humanitas to share best practices and explore innovative approaches to occupational health.

The conference fostered knowledge exchange on strategies to improve workplace health and safety. Dra. Elena Azzolini, Director of Hospital Humanitas, presented on vaccination strategies for healthcare workers, drawing from her COVID-19 experience in Italy.

Other topics included occupational disease prevention, addiction and mental health awareness, and cardiovascular risk management. The event reaffirmed Ternium’s commitment to a safer, healthier work environment through continuous learning and collaboration.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	67

The agenda includes videos, articles and events, with the Safety Day at the center of its communication strategy.

Ternium’s Safety Day, held annually in July as a reminder of a severe accident that occurred in the Guerrero facility in Mexico, is the ideal forum to communicate key messages throughout the organization regarding the priority of safety and to align our vision about safety.

During the event, the company organizes meetings and panel discussions on OH&S management to review its safety performance in the preceding year and agree on new actions to continue improving OH&S at each facility. The event is chaired by Ternium’s CEO and the top management of each business unit. In 2024, over

195

CONTRACTOR COMPANIES

HAD THEIR OH&S PROGRAMS AUDITED

FROM JULY 2023 TO JUNE 2024

CONTRACTOR COMPANIES

WERE COMMENDED FOR

THEIR IMPROVEMENTS

6,000 people participated in person or in online meetings. In this day, production lines are stopped to signal the company’s commitment to industrial safety.

The company has also introduced Safety Talks, an open-dialogue instance for plant supervisors and their teams to analyze selected OH&S issues each week as determined by senior management. Under this program, in 2024 the company delivered infographics via email to over 3,500 employees, and leaders and EHS teams conducted more than 28,200 short interactive sessions at the beginning of each shift to emphasize workplace health and safety issues globally, locally, or by theme, reaching over 22,500 employees.

Integration of contractors into safety initiatives

Ternium actively promotes the adoption of its Safety Vision and goals among all contractors’ employees. To achieve this, the company has initiated several programs, including meetings with top managers of Ternium contractors and the involvement of their employees in Ternium’s OH&S workshops. Additionally, Ternium has implemented an OH&S improvement plan specifically tailored for contractors. This plan draws on the best practices of contractors, identified through benchmarking their operations at various locations within the company’s facilities.

From July 2023 to June 2024, Ternium conducted audits of the OH&S programs of 195 contractor companies across four countries, 28 of which were commended for the improvements made during the year.

Occupational Health Initiatives

Ternium demonstrates its commitment to providing a healthy workplace through the implementation of a comprehensive occupational health program. We regularly conduct monitoring activities and risk analysis within our health management system to assess and manage the various factors that may impact employees’ health. These factors include chemical, biological, physical, ergonomic and psychological conditions associated with work activities.

Ternium has a Health Surveillance and Medical Control program regarding occupational health exams

and medical studies for Ternium’s employees. The objective is to comply with the required occupational



68. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

medical exams according to applicable legislation, monitor the health of employees exposed to specific health risks, ensure employees are fit for their assigned tasks, provide voluntary access to medical exams, and implement preventive campaigns based on statistical data. The company conducts mandatory medical check-ups based on local law requirements and offers annual voluntary medical check-ups aiming to improve employees’ health and identify common diseases and health conditions for statistical analysis.

On a more specific basis, the company has in place an Alcohol and Drugs Program with the aim of maintaining a safe and drug-free workplace environment to ensure optimal safety and well-being levels across its facilities

and operations. The company prohibits activities such as possessing, producing, selling, distributing, or consuming alcohol and drugs within Ternium’s premises or during work-related activities. It also mandates that employees refrain from consuming drugs, whether prescribed or not, that could impair their performance, without prior notification to their immediate superior.

To enforce compliance, the company establishes prevention procedures and conducts objective tests to detect the presence of prohibited substances. This obligation extends to suppliers, contractors, subcontractors and visitors, who are expected to adhere to these regulations as per the applicable legal framework. Through these measures, Ternium seeks to

FREQUENCY OF MANDATORY MEDICAL TESTS

• ANNUALLY • EVERY 2 YEARS • EVERY 3 YEARS • ANNUALLY FOR WOMEN OVER 40 • ANNUALLY FOR MEN OVER 45

TEST TYPE

JOB TYPE

Employees with administrative tasks who do not usually access operational areas

Employees who carry out their activities in operational areas

Employees operating vehicles or cranes or working in confined
spaces or at heights

Medical Evaluation

•

Visual Acuity

•

Audiometry

•

Spirometry

•

Electrocardiogram

•

Blood Tests

•

Urine Test

•

Mammogram

•

Prostate-specific antigen (PSA)

•

Drug and Alcohol Screening

•

Vestibular Tests

•



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	69

create a secure and healthy work environment conducive to productivity and employee well-being.

RISKS

According to worldsteel’s “Safety and health in

the steel industry - Data report 2025”, the top five causes of fatalities over the period 2020-2024 were fall from height, moving machinery, gassing and asphyxiation, on site road vehicle and falling objects. This seems to be consistent over time. In terms of causes of lost time injuries in the last 5 years (2020-2024),

they mention slip, trip and fall, manual tasks tools, moving machinery, fall from height and falling object as the main ones.

In the case of Ternium, the fatalities recorded in the period 2020-2024 were related to explosions, electrical hazards, rail-related incidents (trains and wagons), vehicle and internal traffic collisions within the facilities, and falling objects. The top causes of lost-time injuries during the same period were manual tasks and hand tools, moving machinery, falls from height, same-level falls, and incidents involving cranes and lifting devices.




COMMUNICATION ROUTINES									Ternium’s managers are involved personally in talks, training activities, workshops and face-to-face meetings on safety, environment, quality and industrial performance topics.



70. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

Risk analysis

Risks are assessed considering the severity of injuries, probability of occurrence and frequency of exposure. For unacceptable risks, the activity is halted until additional measures are implemented to reduce the risk to acceptable levels.

The company has set out a framework for hazard identification, risk assessment, and control using the IPER (Hazard Identification and Risk Assessment) Matrix. The process is based on hazard identification using a specific list, considering factors such as work organization, routine and non-routine activities, past and potential incidents, and human and environmental conditions. Once hazards are identified, existing control measures are documented and additional actions are planned according to a hierarchy that includes elimination, substitution, engineering controls, signage/administrative controls and personal protective elements.

Risk is assessed considering the severity of injuries, probability of occurrence and frequency of exposure, and is determined to be acceptable or unacceptable. For unacceptable risks, the activity is halted until additional measures are implemented to reduce the risk to acceptable levels.

Hazard and risk matrices are periodically reviewed under circumstances such as changes in processes, work methods, acquisition of new equipment, projects, audit results, real emergencies, legislative changes, and

modifications in the organization’s occupational health and safety management system, among others. To ensure that employees have access to the results of their risk analyses and to promote the use of this information through various tools, the IPER matrices are being digitalized within the SIASSO platform. This has made it easier to audit critical activities—those considered high-risk based on severity and likelihood of occurrence—as well as to implement improvement actions and review related documentation.

SAFETY PERFORMANCE: ACCIDENTS AND INCIDENTS

In 2024, Ternium recorded an Injury Frequency Rate (IFR) of 2.70 injuries per million hours worked and a Lost Time Injuries Frequency Rate (LTIFR) of 0.69 lost time injuries per million hours worked. The injury frequency rate was a setback from the performance of the previous year, but still below worldsteel averages of 3.54 IFR and 0.70 LTIFR for the year 2024.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	71

The year 2024 was marked by two fatal accidents involving a contractor and a direct employee in Argentina. The first accident occurred in the Blast Furnace area during maintenance work, while the second took place in the rail yard as a result of interaction with a moving train.

As a result of the first accident, the company reviewed the Global Risk Consultants (GRC) recommendations and prioritized them based on their potential impact on people. Personal protective equipment was standardized, and the response strategy of medical teams in the presence of flammable substances was reinforced.

Following the second accident, we decided to incorporate new mechanisms to detect risks in areas where human inspections were more limited and extended the use of cameras. Additionally, we conducted a review with Ternium University to identify ways to enhance employee awareness of the hazards present in their daily tasks.

While the steel industry inherently involves various safety risks due to the nature of the activity, we remain committed to enhancing safety and accident prevention, and we will continue implementing actions to ensure a safe working environment for everyone involved in our operations.

USIMINAS’ COMMITMENT TO WORKPLACE SAFETY AND WELL-BEING

At Usiminas, the goal is Zero Accidents, a commitment pursued through initiatives that engage all hierarchical levels and encompass both direct employees and contractors. The company is dedicated to promoting workplace safety and employee health by implementing tools that foster a strong safety culture. This is an ongoing objective with no fixed deadline, ensuring continuous improvement in safety standards.

The Usiminas Health and Safety Policy acknowledges life and well-being as universal rights. Prioritizing these values, the company has implemented a comprehensive

Occupational Health and Safety Management System designed to provide a safe and healthy work environment for all employees and contractors.

Supporting this framework, the Integrated Management Policy, Golden Rules, Code of Ethics and Conduct, and

internal regulations establish clear guidelines for safely carrying out workplace activities while prioritizing employee health and well-being. 100% of employees and contractors are covered by the company’s safety management system.

In addition to workplace safety, employee health is a top priority. Usiminas provides its workforce with access to the Usisaúde health plan, covering medical and dental consultations, along with care at Occupational Health Unit facilities.

Furthermore, the São Francisco Xavier Foundation, a philanthropic entity established by Usiminas in 1969, plays a significant role in advancing healthcare and well-being. With approximately 6,200 employees, the foundation is recognized for its excellence and commitment to social development in the communities where it operates.

To further enhance health promotion, Usiminas has introduced the +ATITUDE Health Promotion Program. This initiative leverages an online platform with gamification to encourage preventive healthcare and holistic family well-being, focusing on primary care and disease prevention.



72. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW


KEY FIGURES


INVESTMENT IN HEALTH AND SAFETY $ MILLION


INJURIES FREQUENCY RATE (IFR) # PER MILLION HOURS WORKED


MAJOR INJURIES AND HIGH POTENTIAL EVENTS FREQUENCY RATE # PER MILLION HOURS WORKED


LOST TIME INJURIES FREQUENCY RATE (LTIFR) # DAY-LOSS PER MILLION HOURS WORKED

All figures present consolidated metrics for both direct employees and contractors.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	73


OCCUPATIONAL HEALTH AND SAFETY POLICY


– – – – – – – – – – – – – –			Ternium, an integrated steel company, along with its subsidiaries is committed to the occupational safety and health of its personnel, customers, contractors, and suppliers. The company’s occupational health and safety policy is the baseline for sustainable development across all its operations. Policy adherence, dissemination, and compliance apply and are to be promoted throughout Ternium and its subsidiaries. Looking out for the occupational health and safety of every person who works for the company or is inside its facilities is an essential value. To that end, we promote our commitment through the following principles: All work-related injuries and illnesses can and should be prevented. Compliance with all applicable legal and other regulations to which Ternium voluntarily agrees. Continuous improvement of all processes related to staff’s health and safety. Occupational health and safety must be integrated into all company processes. No emergency situation, production process or results justify putting people’s occupational health or safety at risk. Commitment from and training of the entire staff is essential. Working safely is an employment condition. Every person is responsible for looking after his/her own safety and the safety of others. In each company, everyone is responsible for occupational health and safety: The company provides the means and resources for activities to be carried out safely so as to preserve everyone’s physical integrity and occupational health. Managers are in charge of the occupational health and safety of everyone who works for them or is in their area. All other workers must comply with regulations and instructions, and work with their managers to detect, control, and resolve any dangerous situations. Contractor companies and their staff must comply with the Safety Regulations in force at the facilities where they provide services. People who enter the facility must comply with the applicable Safety Regulations. Health and safety staff must take preventive measures through support, advising and auditing. At Ternium and its subsidiaries, these principles are shared throughout the entire value chain and in all the communities where it operates in order to promote people’s healthcare and safety.
			March 2018

			Máximo Vedoya Chief Executive Officer



74. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

HUMAN RESOURCES MANAGEMENT

SUSTAINABLE DEVELOPMENT GOALS



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	75

GOALS & ACTIONS

2024 KPIs

GOALS

▪To cultivate an inclusive and engaging working environment that attracts and retains the necessary talent for the long-term sustainability of the company.

▪To promote a culture of industrial and technological excellence.

▪To foster innovation.

▪To ensure equal opportunity and treatment for all employees.

▪To increase diversity in Ternium’s management positions and Board of Directors.

NATIONALITIES

REPRESENTED WITHIN

OUR PERSONNEL

HOURS OF TRAINING

PER EMPLOYEE

(95 hours including on the

job training)

ACTIONS

▪Utilization of technology and data to simplify human resources processes, predict people’s needs and develop HR programs.

▪Establishment of corporate mechanisms to ensure that the selection of personnel is based on their individual knowledge and skills.

▪Enhancement of employees’ skills through training programs at all levels of the company.

▪Development of a collaborative working culture that transcends geography.

▪Endorsement of the United Nations Women’s Empowerment Principles (WEPs).

▪Implementation of a medium-term plan to increase female participation in management positions.

▪Consolidation of corporate programs like the Lean In Together initiative and Maternity Mentoring to promote fair and equitable treatment.

$11

MILLION INVESTED

IN TRAINING ACTIVITIES

38%

WOMEN

OCCUPYING POSITIONS

AT THE BOARD OF DIRECTORS

(Current Board Composition)

45%

FEMALE SALARIED

EMPLOYEES

UNDER 30 YEARS OLD

Note: Figures do not include Usiminas



76. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

DEVELOPING THE TALENT OF OUR PEOPLE

Ternium has become a leading flat steel producer in Latin America by virtue of its main asset: a team of committed, innovative, industrious, diverse and highly qualified individuals. We rely on the talent and determination of our people to shape our company in the years to come.

GOVERNANCE

People’s management is structured at both local and corporate levels. The local Human Resources teams

oversee general working conditions, such as working hours, leave policies, payroll processing and union relations, which are closely tied to labor regulations. These matters are presented to Regional Presidents and Industrial Directors as necessary.

Compensation policies and procedures, including employee benefits and mobility schemes, are established at the corporate level. Annually, they undergo review in a dedicated meeting attended by the Global Compensation & HR Shared Service Senior Director and team, alongside the Chief Human Resources Officer and the CEO.

OUR STRUCTURE

HUMAN RESOURCES GOVERNANCE



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	77

Furthermore, as part of the annual performance review process, career committees convene within each division to analyze performance and succession planning. This process is scaled up until a uniform curve and a general plan is developed for the entire company.

Topics related to work-life balance, diversity and inclusion, employee training, as well as talent attraction and retention, fall under the oversight of the Vice President of Global Talent Management. Subsequently, proposals are presented to the Chief Human Resources Officer and the CEO for approval.

The company has different policies and procedures that regulate life at Ternium. Some of them are the following:

< Human Rights Policy: It underscores the company’s

dedication to upholding ethical standards and respecting fundamental human rights across its operations. Aligned with international frameworks like the Universal Declaration of Human Rights and the UN Global Compact, Ternium pledges to uphold principles such as freedom, dignity and the prohibition of child labor and discrimination. The policy emphasizes safe working conditions, employee development and cultural respect. It applies to Ternium, its subsidiaries, and all associated parties, with a commitment to fostering a compliant supply chain. Non-compliance is not tolerated, and mechanisms like the Transparent Line are in place for reporting and addressing violations.

< Code of Conduct: It emphasizes the importance of

compliance with applicable laws, internal regulations, and policies, and requires all employees, regardless of their position, to abide by these standards, promoting a workplace environment characterized by honesty, loyalty and transparency. The code prohibits discrimination, harassment, coercion or bullying in any form, including sexual, physical, psychological, or otherwise. It supports the elimination of all forms of illegal, forced or compulsory labor, slavery or servitude, particularly child labor, not only within Ternium, but also among its suppliers, contractors, and associated persons. Additionally, the code respects the rights of employees to establish or join trade unions and engage in collective bargaining, and ensures compliance with occupational health and safety regulations.

It promotes health and safe working conditions and encourages employees at all levels to maintain a respectful environment, fostering cooperation and addressing personal differences constructively. The Code of Conduct was updated and subsequently published in 2024. To date, 99% of white-collar employees have reaffirmed the new version.


“In the coming years, our key challenge for Human Resources will be sustaining employee engagement and productivity, strengthening people’s development, and fostering a deep transformation in digital mindset throughout the organization, without losing sight of the essence and values that define our industrial culture.”

									RODRIGO PIÑA CHIEF HUMAN RESOURCES OFFICER



78. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

NEW COMPETENCY MODEL

EMBRACING THE VALUES OF OUR ORGANIZATIONAL CULTURE

From the recruitment process to development stages and training programs, the company aims to foster the development of key competencies among its employees. These are:

Attitude of service: deep understanding of internal and external customer needs, and the commitment necessary to add value.

Get Things Done: understanding and executing business processes effectively. This aims to improve processes, products and services using best practices, new technologies and innovation.

Collaboration: collaborating with others to achieve goals.

Professionalism: demonstrating strong skills and knowledge, always looking for continuous learning opportunities.

Leadership: ability to mobilize people in a specific direction by conveying a clear vision,

communicating effectively and motivating others.

Diversity & Inclusion: creating an inclusive environment that values people from different backgrounds, with diverse identities and perspectives.

< Diversity and Harassment-Free Work Environment Policy:

It establishes a commitment to creating an inclusive workplace that respects and values individual differences across genders, nationalities, cultures and backgrounds. It prohibits all forms of harassment and discrimination and emphasizes the responsibility of every employee in promoting a respectful workplace environment. It also establishes the mechanisms for reporting incidents and conducting appropriate investigations and remedial actions led by the Audit and Human Resources departments.

STRATEGY AND PERFORMANCE 2024

The Human Resources development and retention strategy is structured at both local and corporate levels. While certain general guidelines are established globally, the scope and implementation of programs depend on the structure and resources available in each country.

The company’s key action areas are:

< The use of technology to improve processes, increase safety and enhance user experience.

< Review of working conditions and employee benefits.

< Development of training options to improve employees’ skills.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	79




DIGITAL TRANSFORMATION									We are expanding the use of digital tools to streamline processes and empower our people to enhance their performance.

< Initiatives to create a work environment of equal treatment, diversity and inclusion.

< Performance management.

< Continuous communication.

The use of technology to improve processes, increase safety and enhance user experience

In recent years, the company has been enhancing its Human Resources processes by implementing technology across various stages.

We have integrated Ternium’s chatbot into all available devices—including personal computers and mobile phones—enabling employees to perform a wide range of tasks, from simple inquiries to transactions such as

requesting time off. Currently, 98% of Ternium’s active workforce uses the chatbot, with each user making an average of 6.7 requests per month—setting a new record.

Notably, 40% of these interactions occur outside regular working hours, significantly improving the user experience, while also freeing up operational time for HR teams that would otherwise be spent on routine personnel management tasks. The Net Promoter Score is 75, reflecting a high level of user satisfaction. The company is now expanding the chatbot’s capabilities to include queries related to other employee-related areas such as health and safety, industrial operations, and help desk services.



80. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

In the UX Supervisor Tool—which oversees all functions related to work teams, such as shift scheduling, replacements, break and vacation management, mandatory training (including safety), and the tracking of completed or pending medical check-ups—we have recently added two new features: tracking of on-the-job trainings and alerts for excessive time in position, which has been identified as a precursor to incidents and accidents.

We have also continued to advance in People Analytics to generate valuable insights from human resources data. By leveraging advanced analytics techniques and technology, we analyze information on employee performance, engagement and development to support data-driven decision-making and optimize human resources strategies. This includes identifying productivity drivers, addressing skill gaps and forecasting future workforce needs. Our ultimate goal is

to maximize the potential of human capital and drive greater success and growth through intelligent workforce management.

Improving working conditions for a better life

Ternium ensures compliance with all labor legal requirements in the countries where it operates. This includes issues such as the number of hours worked, paid vacations, and compensations above legally established levels. Other rights, such as freedom of association, are recognized and respected by the company, with 71% of employees covered by some form of collective bargaining agreement.

Additionally, the company establishes a series of benefits to support the development of its employees in their personal lives depending on the resources availability of each local business unit:




FAMILY DAY AT TERNIUM									Families in Argentina, Brazil, Colombia and Mexico joined a fun and educational Family Day to close Safety & Environment Week. Activities helped raise awareness of our company’s core values.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	81

< Discounts at top-tier universities: The company believes

that continuous improvement is built on education. In addition to internally developed programs, the company has established strategic partnerships with various universities in the countries where it operates to offer its employees financial benefits for undergraduate and graduate courses.

< Access to healthcare systems: The company strives to

protect the health of its employees and their families. In this regard, workers have access to private healthcare systems such as APSOT in Argentina, the Hospital Clínica Nova in Mexico, and sickness insurance coverage depending on the healthcare structure in each country of operation.

< Work flexibility: The company implemented a flexible

working program that includes a hybrid work scheme of four days at the office and one day from home for salaried employees, and two days at the office and three days from home for new parents during the first year after birth. There is also the possibility to adjust entry and exit times within a three-hour window. To support this flexible working scheme, we have made improvements to our facilities and created open, collaborative spaces. Meeting rooms have been enhanced with advanced audiovisual tools and certain physical barriers, including some offices, have been removed to facilitate team collaboration and a fluid workflow.

< Access to recreational activities: The company organizes

cultural and recreational activities in the various regions where it operates and provides benefits to access clubs, gyms and institutions, offering a wide range of activities. For more information on this topic, please refer to the Community chapter.

< Discounts for purchasing goods: Depending on the type

of market served and the established commercial relationships in each country, the company has built a network of suppliers and customers offering various goods at more favorable conditions than the market, including appliances, automobiles and energy installations, such as solar panels.

Ternium University (TU):
A key training tool

TU has expanded its offerings, from incorporating strategic alliances with digital training centers in 2024 to continually enhancing tailored courses based on role and seniority.

Development of training opportunities to enhance employee skills

As part of Ternium’s 2024 strategy to strengthen employee training, we significantly expanded the range of content available to salaried staff and management through the Ternium University (TU) platform. The expansion was facilitated by a strategic alliance with LinkedIn Learning, which has been well received—1,779 employees currently maintain active licenses. As a result of these efforts, 19,540 employees have interacted with the TU platform at least once, and more than 15,211 log in each month.

The most popular topics among users include artificial intelligence, business intelligence tools and business English. These trends align with the learning paths curated by the Ternium University team to support the development of Ternium’s six core competencies: Get Things Done, Leadership, Collaboration, Attitude of Service, Professionalism, and Diversity & Inclusion. Employees are encouraged to select courses based on their professional interests and to complete them at their own pace.



82. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

Ternium also values in-person learning for its ability to foster exchange and networking. To that end, the company has developed a range of training programs in collaboration with recognized vendors and regional universities across the countries where it operates, tailored to the specific needs of industrial roles. Notable programs include:

< Safety Awareness Workshop: Targeting all supervisors and

operators, this program reinforces awareness and safe behavior at work. It aims to empower employees to take responsibility for their own safety and that of their colleagues, contributing to a safer workplace. Over 440 people participated in 2024.

< Supervisor and Shift Leader Development Program (PDLP):

Designed to support current and future supervisors as they transition into leadership roles, this program promotes the adoption of Ternium’s industrial excellence model, encourages a safety and environmental care culture, and strengthens technical knowledge relevant to the processes they oversee. In 2024, a total of 904 shift leaders from across Ternium participated in this training program.

< Diploma in Engineering and Maintenance Management:

Aimed at employees and managers in the maintenance area, this 14-month program—developed in partnership with UDEM University in Monterrey, Mexico—provides modern concepts and techniques for implementing best practices. In 2024, 41 participants graduated.

< Diploma in Project Management: Based on international

standards from the Project Management Institute (PMI), this 8-month program is intended for employees and managers in engineering and operations. Developed in partnership with ITBA in Buenos Aires, Argentina, 44 participants graduated in 2024.

< Certification Program in Human Factors and Organizational Safety: This 60-hour program is aimed

at managerial staff in EHS, operations, maintenance, and engineering. It promotes a systemic approach to safety events, focusing on organizational culture and human factors as root causes. Developed by the University of San Andrés and ICSI, the program held two sessions in 2024, with a total of 53 graduates.

Tailored growth paths

Ternium offers customized training for all levels
–from trainees to executives–with global programs and certifications in partnership with IE, IPADE and Wharton.

Ternium sponsors candidates to access international master’s programs at leading universities, which offer advanced academic degrees specializing in the steel industry. For instance, in 2024, one manager began a Master’s in Metallurgy at the University of Sheffield in the UK, while another completed their studies. These master’s programs require full-time dedication and come with leave and financial support from the company.

Regarding professional development, Ternium has designed specific training paths based on employee categories:

< Global Trainee (GT) and Global Professional (GP): These

programs are designed for new hires and support their growth during their first four years at Ternium. The programs offer personalized training—both online and in person—as well as networking opportunities. Participants rotate through different departments to gain experience in targeted fields. Networking



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	83




HIGH-IMPACT LEADERSHIP PROGRAM									Three months of executive training in partnership with IE Business School (Spain), culminating in international certification.

activities include site visits across regions, group interviews with regional presidents and executives, and international assignments.

< Managers: Ternium’s management skills programs aim to

strengthen its competency model, with content tailored to each career level and responsibility:

< High-Impact Leadership Program (HILP): A three-month program developed jointly with IE Business School in Spain, offering international certification.

< Leadership Excellence Program (LEP): Co-designed with IPADE Business School, in Mexico, this program prepares leaders to face the challenges of a global and diverse environment. It supports continuous professional development in alignment with the company’s goals. In 2024, 50 managers graduated.

< Senior Directors and Executives: The Global Leaders

Executive Program is designed for high-level managers and conducted in partnership with the Wharton School at the University of Pennsylvania. It addresses current business challenges and trends while delivering practical knowledge and skills relevant to the steel industry. Over 100 senior managers, including board members, have participated in the program.

Beyond formal education, Ternium promotes international exchange programs to spread best practices across its global operations. These initiatives also offer participants valuable exposure to new cultures and diverse professional experiences. To support these efforts, the company has expanded its training programs to include topics such as effective communication and intercultural leadership.



84. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

7th

GENERATION OF LEAN IN CIRCLES

TO ADDRESS TOPICS RELATED TO DIVERSITY AND INCLUSION IN A SAFE AND OPEN SPACE

1,000

PEOPLE HAVE PARTICIPATED

IN THE PROGRAM SINCE ITS BEGINNING,

INCLUDING 55 DIRECTORS

Equal treatment in a diverse and inclusive environment

Over time, Ternium’s workforce has become increasingly diverse. Our employees represent 28 different nationalities, with Mexican, Argentine, Brazilian and Colombian citizens constituting the largest portion of the company’s team.

Ternium is dedicated to being an equal opportunity employer, striving to create a working environment that recognizes and nurtures talent from diverse backgrounds, encompassing different genders, nationalities, generations, cultures, religions and experiences.

Among the actions implemented to ensure equal treatment and foster inclusion and diversity, there are:

< Bias-free selection: Ternium aims at creating a

transparent and merit-based system that allows all employees to have equal access to career advancement opportunities within the organization. During the recruitment process we use specialized software to ensure a fair assessment of candidates based solely on their cognitive and technical knowledge. Furthermore, for internal vacancies, we have an Opportunities Committee system. The vacancies are promoted through e-mail and people are given a timeframe to apply. After gathering information and conducting a process of interviews, a committee of members from various departments, supported by the HR Talent sector, convenes to make a final decision.

< Equal treatment conditions: The company has adapted its

policies and procedures to ensure equal treatment. As an example, the company grants extended maternity and paternity leave in countries where maternity leave is less than 120 days and paternity leave is less than 30 days. Additionally, we have a flexibility program where 3 days are worked from home and 2 days in the office from the return of the mother or primary caregiver until the child is one year old. These benefits apply to all, regardless of sexual orientation.

Specific training activities: Ternium developed the Lean

In Together initiative. This project aims to raise awareness and foster discussions about important topics related to inclusion and diversity, including unconscious biases, sexual diversity, gender identity, and the



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	85

relevance of intercultural and inclusive leadership. The Lean In Together circles provide a safe and open space for participants from diverse regions, genders, professional backgrounds and expertise to freely express themselves and engage in thoughtful dialogues on these matters. In 2024, the seventh generation of Lean In circles was launched, with 290 participants that completed the program, including 10 company directors and expanding to all Ternium locations. Additionally, specific discussions on gender equality and generational interaction were reinforced, involving participants from previous stages of the program. Since the beginning of the program, 1,000 employees have completed it, including 55 directors (1,490 participated in at least one event).

< New ways to include people with special abilities:

Ternium’s Labor Integration Program in Argentina began in 1997 with the employment of a group of graduates from Vocational Training Centers in nearby communities, and it continues to this day. In Brazil, the company also operates a labor inclusion program for people with disabilities and organizes annual events and communications to search for candidates interested in working for the company. In 2024, there were 10 people with special needs from Argentina and 135 from Brazil in positions such as administrative staff, internal communications analysts and gardeners. These employees have different types of disabilities, such as motor disabilities, hearing impairments, visual impairments, intellectual disabilities and mixed disabilities.




BEST PLACES TO WORK FOR LGBTQ+									Ternium was named one of the best places to work for the LGBTQ+ community in Mexico by the Human Rights Campaign (HRC) for the fifth time. In 2024, the company achieved triple certification: in Mexico, Brazil and Argentina.



86. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

A WORKPLACE FOR EVERYONE

INCREASING WOMEN’S PARTICIPATION

In 2021, Ternium embraced the United Nations Women’s Empowerment Principles (WEPs), reinforcing its commitment to gender equality. Since then, the company has been actively working to increase female participation in leadership roles and in the industry overall. To achieve this, Ternium focuses on: recruiting more young female professionals, supporting women during maternity to help them balance personal and professional goals, and boosting female representation at the board level. As a result, the company has seen a 42% increase in the number of women in managerial positions since 2021.

Key initiatives to support women throughout their careers include:

Continued employment after maternity: The Maternity Mentoring Program helps reduce turnover among female employees after maternity leave by providing guidance and support during the transition. This program is currently available in Mexico,

Argentina, Brazil and Guatemala.

Creating a motherhood-friendly workplace: Ternium has installed lactation rooms at its main facilities and is working on making its facilities more inclusive.

Financial support: The company offers a daycare assistance benefit, which is currently available in Argentina and Mexico.

Board representation: Women now make up 38% of Ternium’s Board of Directors, reflecting the company’s commitment to increasing female representation and showcasing leadership at the highest level.

Ternium’s efforts to recruit and retain more women in engineering are also reflected in the growing number of women working in operations. The number of female operators has increased by 45% from 2023.

Aligned with the WEPs, Ternium is also committed to advancing women’s empowerment across the steel industry value chain and in the communities around its operations.


WHITE COLLAR COMPOSITION 2024 - BY AGE AND GENDER WOMEN'S PARTICIPATION


EVOLUTION OF WOMEN PARTICIPATION SALARIED UNDER 30



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	87

< Regional programs: In Brazil, Ternium has implemented a

mentorship program for university students, with a focus on promoting equitable access to the job market. This edition prioritized support for Afro-descendant students—particularly those pursuing engineering degrees—through mentorship provided by Ternium professionals. This initiative complements other mentorship programs we offer to students from diverse backgrounds. Of the 20 participants across the program’s two editions, 18 went on to join Ternium or other companies as trainees. Additionally, the program achieved 50% female participation, helping to boost representation in a sector where women have been historically underrepresented.

Ternium’s commitment to diversity and inclusion has been recognized by the Human Rights Campaign Foundation (HRC), which named Ternium as one of the best places to work for the LGBTQ+ community in Mexico for the fifth time in 2024. This certification evaluates the company’s commitment to equality, taking into account its actions, policies and procedures concerning equity, gender identity, sexual orientation and inclusion. In 2024, the company also received the recognition of HRC Argentina and HRC Brazil.

Positive work environments

At Ternium, fostering positive work environments is a strategic priority and a key part of our commitment to inclusion, equity and respect across all countries and organizational levels. We believe that a healthy workplace is built on recognizing and valuing differences, as well as actively preventing harassment and discrimination.

To support this, we promote initiatives that provide tools to identify inappropriate behavior, properly assess each situation, and respond responsibly. In addition, we have established clear and confidential channels for reporting any incidents that compromise integrity and respect in the workplace.

This approach strengthens our organizational culture, aligning with the values that guide our management practices and labor relations.

The Mentorship Program
in Brazil

Supports equitable access
to the job market for
university students from
diverse backgrounds.

Performance management

Every year, Ternium employees must establish a work plan in collaboration with their leaders and respective departments. These objectives are divided into two types: area objectives, which involve specific contributions, and personal objectives, focused on improving individual development and leadership or technical skills.

Starting in July 2024, two additional types of objectives were introduced: mandatory EHS (Environment, Health, and Safety) objectives, and optional but recommended diversity and inclusion objectives. The application of EHS objectives applies to all employees and managers in industrial areas and roles related to the plant floor, accounting for 30% of the overall evaluation. Diversity objectives have a broader scope, being recommended for all employees, regardless of their activity.



88. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW




CONTINUOUS COMMUNICATION									In 2024, Ternium’s CEO hosted four Live Talks with Q&A sessions, engaging an average of over 3,400 employees each time.

Once the year concludes, Ternium conducts a formal assessment to evaluate the performance of salaried employees and managers. The results of this assessment impact several areas, including career development, compensation, identification of training needs, and the setting of measurable objectives for the next period.

The performance assessment process includes a self-evaluation and an evaluation by the employee’s leader. It is integrated into the company’s HR IT system to track progress over time and follows a comprehensive 360-degree approach, incorporating client feedback. This structure ensures transparency and fairness in the evaluation process throughout the year.

The evaluation is reviewed by various committees up to the corporate level, and the results are shared in

dedicated feedback meetings to communicate outcomes and identify areas for improvement.

Continuous communication

Ternium regularly organizes interactive engagement events to outline its strategy and gather employee feedback. CEO live talks, online town hall meetings, and Safe Hour meetings at the company’s facilities are some mechanisms used to connect with employees.

Moreover, Ternium conducts confidential surveys to gather feedback on the working experience and perception of the company’s management, leadership and culture. These surveys monitor employee satisfaction and provide insights for continuous improvement. The latest survey was conducted



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	89

in February 2024, with results and follow-up action plans expected to be developed throughout the year.

RISKS

Some of the risks associated with human resources management, as well as Ternium’s approach to each topic, are detailed below:

< Talent attraction, retention and engagement: It is key to

build a robust talent pipeline, an appealing employment proposition and develop growth opportunities to sustain and inspire our workforce. To tackle this challenge, Ternium implements comprehensive talent attraction strategies, including university outreach and assessments nationwide (in Argentina), participation in job fairs and public events (in Mexico) and engagement with universities across the countries where it has operations. Furthermore, in terms of retention, the company strives to provide competitive economic conditions, foster work-life balance and encourage continuous employee development to ensure adequate retention levels.

< Conduct and culture: A hostile work environment

characterized by bullying, harassment, unsafe practices, or fraudulent behavior, all of which are incongruent with our corporate values, can severely tarnish the company’s reputation and lead to costly legal consequences. Ternium addresses such issues by implementing specific procedures to detect, investigate and appropriately sanction behaviors that violate the company’s Code of Conduct.

< Succession and key personnel risk: Inadequate succession

planning and the risk of key talent loss can leave the company overly reliant on specific individuals, potentially resulting in significant disruptions if these individuals are unable to fulfill their roles. As part of its performance management process and annual evaluations, Ternium conducts a thorough analysis of succession plans.

< Obsolete skills: Discrepancies in workforce skill sets,

arising from rapid digitization and automation, may hinder the achievement of business objectives. To remain at the forefront, Ternium offers numerous

training programs, both internally and externally, overseen by Ternium University and the Talent Management team.

USIMINAS’S PEOPLE MANAGEMENT

Through its Integrated Management Policy, Usiminas promotes both personal and professional development, prioritizes employee well-being, and supports the social and environmental progress of the communities where it operates.

As of 2024, Usiminas had 12,422 employees, with women representing 9% of its workforce. The company offers a complementary pension plan to enhance long-term financial security and actively fosters an inclusive workplace through its Diversity and Inclusion Program, which focuses on gender equality, disability inclusion, racial and ethnic diversity, intergenerational integration, and LGBTQI+ representation. For more information, please refer to Usiminas 2024 Sustainability Report.



90. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW


KEY FIGURES


HEADCOUNT # OF EMPLOYEES


DISTRIBUTION BY NATIONALITY % OF EMPLOYEES


DISTRIBUTION BY AGE %


NATIONALITY OF TERNIUM'S MANAGERS %



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	91


DISTRIBUTION BY GENDER %


PERFORMANCE AND CAREER DEVELOPMENT REVIEW % SALARIED AND MANAGEMENT EMPLOYEES



92. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW


HUMAN RIGHTS POLICY

Ternium is committed to conducting its operations in an ethical and transparent manner that is consistent with human rights principles, fostering and promoting respect for fundamental rights and the dignity of people.

Ternium is committed to acting in accordance with the Universal Declaration of Human Rights, the principles established in the Declaration of Fundamental Principles and Rights at Work of the International Labor Organization and the United Nations Global Compact, as well as all applicable human rights laws, rules and regulations in the jurisdictions where it carries out its activities.

Without limitation, Ternium adheres to the following principles:

– Respect for freedom and human dignity.

– Prohibition of child labor, forced or compulsory labor, slavery and servitude.

– Prohibition of cruel, inhuman or degrading treatment or punishment.

– Promotion of safe and healthy working conditions, in accordance with our Occupational Health

and Safety Policy.

– Respect for labor rights established in local laws, including freedom of association and

collective bargaining.

– Promotion of diversity and prohibition of all types of discrimination or harassment, based on race,

gender, sexual orientation, religion, nationality or ethnic origin, age, political beliefs, physical characteristics or other conditions or causes identified and prohibited in our Privacy Policy, Diversity and Harassment-Free Work Environment and in applicable legal standards and international conventions.

– Promoting the development of the company’s employees, offering training and education

opportunities.

In the event that the national legislation and regulations applicable to Ternium’s different operations differ from the principles and commitments contemplated in this Policy, Ternium will consider the applicable provisions that are more strict and rigorous.

Ternium values and respects the cultures and traditions of the communities in which it operates and actively works to consider the health, safety, environment, human rights and economic well-being of these communities in all of its operations.

Ternium recognizes that understanding and commitment to human rights are fundamental to corporate culture. For this reason, this Policy must be properly disseminated internally and be available for consultation on the company’s official communication channels. Ternium is committed to collaborating so that its employees understand and act in accordance with the principles and values of this Policy, and encourages them to request advice from the Human Resources Department, Internal Audit or the Legal Service on how to interpret and apply it in certain situations.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	93

This Policy applies to Ternium, its Subsidiaries, companies and third-party associations controlled by Ternium, as well as all of their respective directors, officers and employees.

Furthermore, Ternium expects all members of its supply chain to share Ternium’s values and principles regarding labor, human rights and community relations. These factors will be considered at the time of contracting, as established in the Sustainable Supply Policy and the Ternium Supplier Code of Conduct.

Ternium will not tolerate any behavior that is not consistent with the principles and values reflected in this Policy, whether on the part of its own employees, its suppliers or third parties that collaborate with the company.

Ternium encourages the use of the Transparent Line to report any possible violation or violation of this Policy and is committed to investigating and effectively addressing complaints received.

September 2023



			Máximo Vedoya Chief Executive Officer

(*) For the purposes of this Policy, “Subsidiary” means any entity in which Ternium SA owns, directly or indirectly, more than 50% of the shares with voting rights and “control” means the possession, directly or indirectly, of the sufficient power to approve or impose the application of principles and provisions similar to those contained in this Policy.



94. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

COMMUNITY ENGAGEMENT

SUSTAINABLE DEVELOPMENT GOALS



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	95

GOALS & ACTIONS

2024 KPIs

GOALS

▪To improve education at all levels in our immediate and broader communities, with focus on technical training.

▪To encourage creativity and innovation through culture.

▪To preserve and promote our community's identity and heritage through cultural initiatives.

▪To procure support in times of crisis, by addressing the community's needs in areas such as health, education, and humanitarian aid.

▪To support local healthcare institutions and extend medical assistance to the communities whenever possible.

$12

MILLION SPENT

IN COMMUNITY

PROGRAMS

82%

OF COMMUNITY BUDGET

ALLOCATED TO EDUCATION

14,272

BENEFICIARIES

OF EDUCATIONAL

PROGRAMS

1,746

PARTICIPANTS

IN VOLUNTEERS

PROGRAMS

ACTIONS

▪Implementation of STEM education programs in primary and secondary schools.

▪Operation and construction of technical schools in Pesquería (Mexico) and in Santa Cruz (Brazil).

▪Reinforcement of technical high school’s content, including math, certified training, and technical internships and projects.

▪Modernization of public technical schools’ facilities and labs.

▪Grant of financial awards for academic performance for high school and undergraduate students.

▪Organization of cultural events, including Latin American film festivals, photography exhibitions and music performances.

▪Management of medical facilities in Mexico (NOVA Hospital), implementation of vaccination campaigns and promotion of a healthy lifestyle.

Note: Figures do not include Usiminas



96. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

OUR INDUSTRIAL PROJECT IS ANCHORED IN THE COMMUNITY’S DEVELOPMENT

At Ternium, we believe our industrial project can only succeed if the communities where we operate grow alongside us.

We aim for inclusive growth and development in the communities where we work and live, promoting a culture that rewards merit and encourages both academic and personal effort.

GOVERNANCE

Ternium’s community programs are developed in collaboration with the Techint Group, fostering an international network of support and development across all affiliated companies. The Techint Group Community Relations team is responsible for coordinating global programs, defining strategic approaches, sharing best practices, and providing guidance on continuous improvement to enhance quality and efficiency across all initiatives. For more information on the Techint Group’s Community Relations activities, please visit https://www.techintgroup.com/en/community-relations.

OUR STRUCTURE

COMMUNITY RELATIONS GOVERNANCE



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	97

At Ternium, the Community Relations team implements programs locally, measures their impact, engages with community stakeholders, and assesses specific local needs to ensure a meaningful and effective contribution. These plans are reviewed at least once a year with regional Presidents and the company’s CEO to align efforts with strategic priorities.

STRATEGY AND PERFORMANCE 2024

In Ternium, we believe that education and culture are the key drivers for individual and social progress.

We have seven global programs that are implemented locally and tailored to the specific needs of the communities where we live and work. These include: four educational programs named after Roberto Rocca, one of our founders; two art and cultural programs that foster innovation and creativity, and strengthen local identities by preserving memory and celebrating diversity; and a volunteer program primarily focused on improving public schools in the communities where we operate.

At a local level, we also implement sports and fitness activities, health and social welfare initiatives, and environmental and sustainable development.

In 2024, Ternium invested $12.1 million in its community relations program, directing 82% of the funds to education initiatives that benefited over 14,272 students. In addition the Techint Group foundation donated directly $4.0 million to support programs in Argentina and the construction of the Roberto Rocca Technical School in Santa Cruz, Brazil.

Roberto Rocca Educational Programs

The Roberto Rocca Educational Programs cover the entire cycle, from elementary school to university, helping children and youngsters fulfill their potential and become active contributors to society. These programs strongly emphasize technical skills and innovation, with a specific focus on developing STEM skills (Science, Technology, Engineering and Mathematics), socio-emotional skills, and literacy in children and youth.

Roberto Rocca Technical Schools Network

The Roberto Rocca Technical Schools are a network of three technical schools within the Techint Group, established with a long-term vision of providing advanced technical education, create equal opportunities and contribute to the progress of communities near the companies’ production facilities. The first school in the Roberto Rocca Technical School Network was built in 2013 in Campana (Argentina) by Tenaris, a sister company.

Ternium built its first school in 2016 in the city of Pesquería, in the state of Nuevo León, Mexico, with an investment of $32.6 million. In 2023, the company began construction of its second Roberto Rocca Technical School in Santa Cruz, Brazil, which started classes in February 2025. By December 2024, the company had invested $13.6 million in building the Roberto Rocca Technical School in Brazil, which also received $8 million in donations.

The Pesquería and Santa Cruz Roberto Rocca Technical Schools cover high school education from the ages of 15 to 18 and offer Mechatronics and Electromechanics specializations. All students at the Roberto Rocca Technical Schools receive scholarships based on their family economic situation to give equal opportunities to access high quality technical education.

GLOBAL INITIATIVES

$22

MILLION IN ACCUMULATED INVESTED

IN THE CONSTRUCTION OF ROBERTO ROCCA TECHNICAL SCHOOL IN BRAZIL



98. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW




ROBERTO ROCCA TECHNICAL SCHOOLS									Since 2013, Techint Group’s network of institutions has provided high school students the opportunity to access advanced technical education by awarding scholarships based on their family economic situation.

The network’s educational model is anchored in four pedagogical principles: academic excellence, active learning, experiential learning, and collaborative learning, all upheld within the context of a positive, safe school environment, and a culture of physical and industrial safety.

ROBERTO ROCCA TECHNICAL SCHOOL IN PESQUERÍA

In 2016, the Roberto Rocca Technical School in Pesquería opened its doors. Today, it has 426 students and since its opening, 600 young people have graduated with the titles of electromechanical technician or mechatronics technician. The school’s high completion rate (93%) reflects the institution’s commitment to improve technical education and student engagement. Some graduated students were beneficiaries of the

Roberto Rocca University Scholarship program to further their university education. In 2024, 17 former students of the school received the scholarship.

One of the key components of the project-based learning methodology is the presentation of STEM projects at student science fairs. In 2024, students presented 235 STEM projects. Among them, the followings stood out: “SARSCAM”a system that uses an automated conveyor belt to select specific materials in the electrical, structural and pneumatic areas of an industry; “Safe Stop” an automated system that moves bus shelter roofs in real time, maximizing the shade they provide; and “Easy Motricity”a system to improve the mobility of people with mobility disabilities through a motorized walker operated by the user.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	99

The Roberto Rocca Technical School recognized in Mexico’s 4th Voluntary National Review of UN's 2030 Agenda

The Roberto Rocca Technical School in Pesquería was highlighted as a national example of how business-led education initiatives can drive community impact and
support the UN Sustainable Development Goals.

The school also acts as a bridge between students and the industry, helping them transition into the job market by teaching them how to solve real problems under expert supervision. In 2024, 118 final-year students completed their internships in 10 companies of their community, 57 of them in Ternium.

During 2024, students participated in national and international competitions reaching significant achievements: three students participated in the WER 2024 robotics tournament in León, Guanajuato, and advanced to the international round held in Shanghai, China, where they achieved the 10th place out of 215 teams. They were awarded the Chairman’s Award for their team spirit and resilience, being the only team made up entirely of women. Also, three students

participated in Expociencias Tabasco with their innovative wind generator design project, earning the first place in the region and a direct pass to the competition in Abu Dhabi, United Arab Emirates, which will take place in September 2025.

To measure and benchmark the quality of its education, the Roberto Rocca Technical School participates in different evaluations. The school takes part in the tests that the Monterrey Institute of Technology (TEC) uses in the selection process for its Leaders of Tomorrow program. The school’s students scored 21% higher than the applicant pool in mathematics and 25% higher in leadership. Additionally, in the Nuevo León Aprende test, conducted by the State Department of Education, the Rocca School stood out for having the best results in communication, mathematics and science among private institutions in the municipalities of Nuevo León.

Ongoing training and performance evaluation of educators at the Roberto Rocca Technical Schools is a key aspect of the institution, as it ensures the effective implementation of its educational model. From July 2023 to June 2024, the Roberto Rocca Technical School provided over 1,280 hours of training for teachers and staff.

The Roberto Rocca Technical School also evaluates its teachers on their use of active teaching methods and the quality of their classes. To ensure continuous improvement, the school regularly seeks feedback from students, parents, teachers, and staff via surveys. The 2024 survey had an average positive rating of 84%. The results serve to develop future action plans and continue to elevate the school’s standards.

With the goal of opening their doors to neighboring communities, to share best educational practices and promote employability, the Roberto Rocca Technical School offers courses on Electromechanics, Machine tools and CNC, Welding, and Electricity. The school is also a certification center for SolidWorks and FESTO, to certify students from other schools in Industry 4.0 skills. SolidWorks is a type of computer-aided design (CAD) software widely used for creating 3D models of products, and FESTO is a company that



100. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

A BRAND NEW PLACE

SANTA CRUZ ROBERTO ROCCA TECHNICAL SCHOOL

In 2023, Ternium launched the construction of a new Roberto Rocca Technical School in Santa Cruz, Brazil, designed to accommodate 576 students specializing in Mechatronics and Electromechanics.

Throughout 2024, the school conducted a rigorous admissions process across 51 schools. A total of 1,400 students applied, with 492 advancing to a three-month preparatory program focused on reinforcing language and math skills.

Admission was based on academic performance, socioeconomic background, technical aptitude and engagement in the preparatory activities. As a result, 192 first-year students—49% female and 51% male—were selected to begin classes in February 2025. All admitted students will receive scholarships, with financial aid level determined by a socioeconomic assessment.

specializes in manufacturing automation technology and provides technical educational solutions on a global scale. During 2024, 407 students were certified.

Also, the Roberto Rocca Technical School offers Math and Language courses for all middle school students about to begin high school, organizes the School for Parents program to address educational challenges faced by children and conducts training sessions for Ternium and other companies’ employees.

In 2024, the Roberto Rocca Technical School trained 3,460 persons from the local community.

Roberto Rocca Technical Gene Program

The Roberto Rocca Technical Gene program supports public technical schools in bridging the gap between the education of young graduates and industry requirements. The company provides training in Industry 4.0 skills, facilitates internships and modernizes school equipment and infrastructure, leveraging from the knowledge and experience developed in the Roberto Rocca Technical School program. Roberto Rocca Technical Gene is present in 8 schools of 4 countries, reaching 1,638 students and teachers.

In 2024, over 600 students from technical schools in Monterrey (Mexico), Santa Cruz (Brazil), Ramallo (Argentina) and San Nicolás (Argentina) completed their training in pneumatics, electropneumatics, hydraulics and automation, which we developed in partnership with FESTO, enriching the technical qualifications of the participants and enhancing their employability in the industry. Also, over 1,900 attendees completed Basic Technical courses and over 1,400 attendees completed Safety Trainings.

During 2024, Ternium renovated the pneumatics laboratory and the project design space of a technical school of Santa Cruz and built a welding workshop, with seven welding booths, in Palmar de Varela (Colombia).

In 2024, we opened our plants to 269 students from Monterrey (Mexico), Santa Cruz (Brazil), Ramallo (Argentina) and San Nicolás (Argentina) to perform



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	101

their industrial internships, which provide students with the chance to gain valuable real-world experience.

Continuing with our efforts to improve mathematics levels in Latin America, we designed 35 courses for teachers in the region, which are available at the Roberto Rocca Campus. In addition, we increased math training in schools across our communities, benefiting more than 750 teachers and students from 5 schools.

Roberto Rocca After School Program

The Roberto Rocca After School program is a non-formal education initiative that focuses on STEM and Art to improve the development and enhance the basic literacy and socio-emotional skills of children and young people aged 6 to 15. The program is held at schools after

+750

TEACHERS AND STUDENTS

BENEFITED FROM THE MATH TRAINING

1,139

REGULAR STUDENTS REACHED

BY ROBERTO ROCCA AFTER SCHOOL PROGRAM




ROBERTO ROCCA TECHNICAL GENE									The industry-oriented program supports public technical institutions. Ternium provides training in 4.0 skills to students and teachers and facilitates internships.



102. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW




ROBERTO ROCCA SCHOLARSHIP									In 2024, 1,544 high-school students living in Ternium’s communities were given a Roberto Rocca Scholarship based on their academic achievements, dedication and commitment to learning.

regular hours and has an experiential learning approach to STEM content. It encourages children to commit to their long-term development by offering activities that foster their interest in these subjects.

The program is underway in 16 schools in 3 countries, reaching over 1,139 regular students.

In Monterrey and Santa Cruz, 81 graduates of the secondary school program passed the admissions process for the Roberto Rocca Technical School in Pesqueria and Santa Cruz.

With the aim of enriching the connection between technical education and industrial culture, After School

students participated in student project's exhibitions. Among the initiatives, it stood out one from Ramallo: biodegradable straws and containers made with biomaterials, contributing to the reduction of single-use plastics.

During 2024 the test designed by Harvard University’s PEAR Institute was implemented to measure changes in STEM and 21st-century skills and attitudes. The results show the positive effects of the program: 89% of the students feel that, throughout their participation in the program, they experienced positive changes in their perseverance, 92% in their critical thinking and 94% in their interest in STEM careers.



ENVIRONMENTAL SOCIAL GOVERNANCE	ANNEXES	103

Throughout 2024, the program’s educational model was updated, with the aim of reinforcing academic skills in mathematics, reading, writing, and integrate a robotics curriculum to incentive technical education. With these changes, the Roberto Rocca After School program reaffirms its commitment to providing students with greater opportunities to successfully transition to higher educational levels.

Roberto Rocca Scholarships Program

The Roberto Rocca Scholarships program was launched in Argentina in 1976 with the aim of promoting academic excellence and commitment among high-school students living in Ternium’s communities. The program was later expanded in 2005 to include undergraduate students, with a focus on encouraging the study of applied science and engineering. In addition to academic excellence, the program also takes into consideration the socioeconomic situation of the students’ families when assessing their eligibility for scholarships. This approach reflects the company’s commitment to promoting equal opportunities and recognizes the crucial role of education in facilitating upward social mobility.

In 2024, the program awarded a total of 1,544 scholarships, a quantity 10% higher than in 2023. This underscores the program’s continuous efforts to support talented students at different stages of their academic journey and to create opportunities for them to achieve their full potential.

Other programs with educational impact

In January 2025, Ternium, in collaboration with the University of Colima, modernized the Smart Library at High Schools 12 and 13 in Cuauhtémoc, Colima, Mexico. This initiative underscores a significant commitment to enhancing educational resources for the local community. The upgraded facility encompasses nine specialized areas aligned with Industry 4.0 technologies, including a control area, multimedia creation spaces, virtual and augmented reality zones, and a 3D printing section.

Art and culture Programs

For Ternium, art and culture serve as a source of innovation and provide the means for celebrating


“Technical education drives our path to a sustainable future. We grow with the communities where we operate, sharing a culture of tenacity, transparency, improvement, innovation and collective development.”

									ERIKA BIENEK CHIEF COMMUNITY RELATIONS OFFICER, TECHINT GROUP

diversity and exploring the complexities of the human experience. In 2024, the company invested $1.7 million in cultural activities, which include two main programs: Film Festivals and Photographic Archives.

We organized four Film Festivals, engaging 8,860 attendees from Argentina and Mexico, who enjoyed movies selected by the Fundación PROA. Additionally, we continued with the Photographic Archives, which collect and preserve images repositories in Argentina. These collections are made available to the communities by social media, exhibitions and outdoor shows, as well as fairs.



104. TERNIUM	SUSTAINABILITY REPORT 2024	OVERVIEW

Voluntee

Ternium S.A. 6-K