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20 February 2023

Ternium is collaborating with Mexican authorities in the case of Messrs. Antonio Diaz Valencia and Ricardo Arturo Lagunes Gasca of the community of Aquila

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Ternium is actively collaborating with the Mexican authorities in all within our reach to contribute to the case of the missing individuals and assisting local, state and federal agencies in relation to the disappearance of Messrs. Antonio Díaz Valencia and Ricardo Arturo Lagunes Gasca. Ternium has expressed its consternation and solidarity with them, their families and with the Community of Aquila.

We have a good working relationship with the community, and in particular with Messrs. Antonio Díaz Valencia and Ricardo Arturo Lagunes Gasca. Our subsidiary Las Encinas S.A. de C.V. has entered into agreements with the community, under the supervision of the Mexican authorities, that facilitate a smooth operation of our mining activities in the region beneficial to all parties.

We have publicly denied and rejected any speculation that Ternium or Las Encinas had any involvement or connection with the disappearance of Messrs. Díaz Valencia and Lagunes Gasca, or that Ternium and Las Encinas tolerate any unlawful behavior or that Messrs. Díaz Valencia and Lagunes Gasca had any conflict with the companies.

As contemplated in its Code of Conduct and its Human Rights Policy, Ternium is committed to conducting its operations in an ethical and transparent manner that is consistent with human rights principles by fostering and promoting the respect for the fundamental rights and dignity of people. Ternium also encourages employees and third parties to use its Compliance Line to file anonymous reports, on any possible or suspected human rights violation. All such reports are handled directly by our Internal Audit team and reported to the audit committee of Ternium’s board of directors.

Similarly, Ternium is deeply committed to the communities in which its operations are located. Particularly with respect to the Aquila community, Las Encinas has funded a health care center, makes sizable contributions to the community, and engages in constant dialogue with its representatives with the highest level and international standard of legal compliance.

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