Investor Presentation Disclaimer This presentation contains - - PowerPoint PPT Presentation

▶
investor presentation disclaimer this presentation
SMART_READER_LITE
LIVE PREVIEW

Investor Presentation Disclaimer This presentation contains - - PowerPoint PPT Presentation

Apr 11, 2023 327 likes •466 views

Investor Presentation Disclaimer This presentation contains forward-looking statements. Forward-looking statements are based on managements current views and assumptions and involve known and unknown risks that could cause actual

slide-1
SLIDE 1

Investor Presentation

slide-2
SLIDE 2

Tenaris 2 Investor Presentation November 2017 Disclaimer This presentation contains “forward-looking statements.” Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those

  • statements. These statements include information regarding management strategy, investment plans,

development and growth of the steel pipe and oil and gas industries, trends and other prospective data, including trends regarding the development of raw material costs and the levels of investment in

  • il and gas drilling worldwide and general economic conditions in the countries where Tenaris operates

and sells its products and services. We do not undertake to update any forward-looking statement to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Except where otherwise stated, the data presented herein is based on Tenaris analysis and estimates.

slide-3
SLIDE 3

Tenaris 3 Investor Presentation November 2017

Source: Bloomberg ; Rystad ; IHS

Industry Adapting to Lower Oil Prices

US Shale Breakeven Costs ($/bbl) 20 40 60 80 2014 2017 Deepwater Breakeven Costs ($/boe) 20 40 60 80 2014 2017

Liza Kaikias Coral Range

  • 20

40 60 80 100 120

  • 100

200 300 400 500 600 700 800 900 1,000 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014 2016

US$/bbl Capex US$ Bn

Onshore/Conventional Onshore/Unconventional Offshore WTI

slide-4
SLIDE 4

Tenaris 4 Investor Presentation November 2017

Source: TS estimates

OCTG Demand Recovering

4.3 3.5 4.6 2.3 5.8 4.1 1.3 1.3 1.7 0.9

  • 2

4 6 8 10 12 14 16 18 20 2014 2015 2016 2017

Million Tonnes

Russia & China Onshore Others Onshore Shales Middle East Offshore

+8% (4%) +126%

∆ 2016

+60% +5%

17.7 11.6 8.8 12.1

slide-5
SLIDE 5

Tenaris 5 Investor Presentation November 2017

Strengthening Rig Direct™ in North America

Expanded North American footprint

Oklahoma City Fort McMurray Grande Prairie Leduc Fort Saskatchewan Bienfait Nisku Prudential AlgomaTubes Midland Freeport Hickman Bakersfield Conroe Houston Westwego Manufacturing Centers Service Centers BayCity

6 new service centers Product development (TSH Wedge XP™) PipeTracer™ digital pipe by pipe tracking system State of the art manufacturing center Shorter, more efficient and flexible supply chain Lead time & inventory reduction

Bay City Others

$1.8 Bn Bay City $0.1 Bn Service Centers

Investment

Tamsa Reynosa Poza Rica Comalcalco Dos Bocas Ciudad del Carmen

slide-6
SLIDE 6

Tenaris 6 Investor Presentation November 2017

Rig Direct™ Global Deployment

Integrated service solution that addresses costs, quality,

  • perational efficiency and sustainability

97 205 157 297 % OCTG Sales Customers Served Rigs Served

Rig Direct™ Evolution

Jul-17 Jul-16

54 49

  • USA: extensive adoption in

Permian, Eagle Ford and Haynesville; extending to

  • ther regions
  • Canada: widespread adoption

facilitating market share gains

  • Latam: established in Mexico

and Argentina for 20 years, now in Colombia and Ecuador

  • EH: fully established in North

Sea, Romania and Chevron Thailand, expanding in Indonesia, Caspian and UAE

slide-7
SLIDE 7

Tenaris 7 Investor Presentation November 2017

US OCTG Imports

0% 10% 20% 30% 40% 50% 60% 70%

  • 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2014 Quarterly Average 2015 Quarterly Average 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17

Thousand Tonnes

Domestic Supply Other Imports Imports from Subject Countries % of imports on Total Demand

slide-8
SLIDE 8

Tenaris 8 Investor Presentation November 2017

Short term

Offshore Recovery

Recent discoveries by Talos and ENI will encourage energy reform process: as investments are implemented demand should gradually recover

  • Mex. Energy Reform
  • E. Mediterranean Gas

Investments in world- class Vaca Muerta shale are being confirmed and sales in Argentina are recovering Deliveries to fast track deepwater pipeline developments (eg Zohr) will boost results from Q4

Vaca Muerta Shale

Medium term

Well Positioned in Growth Areas

New offshore projects are starting to be sanctioned and a gradual recovery should take place

slide-9
SLIDE 9

Tenaris 9 Investor Presentation November 2017

1.000 1.200 1.400 1.600 1.800 2.000 2.200 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

[US$/Mt ton]

Costs and Price evolution

Pipe Logix

20 40 60 80 100 120

2014 avg 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 16-Oct

Iron Ore (IODEX) Scrap USA (CRU) HRC USA (CRU) HRC FOB China 285 US$/Tn 589 US$/Tn 63 US$/Tn 555 US$/Tn

Input costs

slide-10
SLIDE 10

10 Tenaris Investor Presentation November 2017

Financial Performance

* EBITDA adjusted excludes restructuring expenses

Millions of US$ (except ratios and per ADS amounts)

2012 2013 2014 2015 2016 9M 2017 Net Sales 10,648 10,424 10,141 6,903 4,294 3,700 EBITDA 2,856 2,780 2,696 1,219 598

624

EBITDA Adjusted 2,856 2,780 2,696 1,396 672

651

EBITDA Adjusted margin 27% 27% 27% 20% 16% 18% Net income (loss) of owners of the parent 1,699 1,551 1,159 (80) 55 385 Earnings per ADS 2.88 2.63 1.96 (0.14) 0.09

0.65

Cash flow from operations 1,856 2,377 2,044 2,215 864

(9)

Capital expenditures 790 753 1,089 1,132 787

437

Free cash flow 1,066 1,624 955 1,083 77

(446)

Net financial position (271) 911 1,257 1,849 1,441 974 Dividend 508 508 531 531 484 153

slide-11
SLIDE 11

11 Tenaris Investor Presentation November 2017

Closing Remarks

  • Market is adapting to lower oil and gas prices: North American

shales will remain a key driver in coming years

  • Tenaris is uniquely positioned to take advantage in all regions

and segments where growth is taking place

  • Rig Direct™ is being adopted in many parts of the world as its

benefits for the efficiency, capital discipline and time to market of the oil and gas industry are demonstrated in the field

  • Tenaris is leveraging its strengths in product technology, supply

chain efficiency and global service delivery

  • Tenaris maintains a solid balance sheet and good financial

performance giving it the flexibility to take advantage of market

  • pportunities
slide-12
SLIDE 12

12 Tenaris Investor Presentation November 2017