Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (December 2004)
19 slides from Tenaris's investor presentation, December 2004
Slide 1: Investor presentation Tenaris December, 2004
Investor presentation Tenaris December, 2004
Slide 2: Disclaimer
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 th
Slide 3: A key player in the global energy industry
A key player in the global energy industry Revenues by segment (2003) • Leading global supplier of seamless pipes Energy Other 4% to the oil and gas industry with manufacturing 10 % operations worldwide Welded 11 % • Leading supplier of welded pipes for South America’s oil and gas infrastructure Sea
Slide 4: Leader in OCTG sector
Leader in OCTG sector World seamless OCTG production Market cap of quoted sector 2003 market share players (1) Tenaris China 5,382 19% 5,000 22 % Others 4,000 1% Other West Europe 3,000 3% Japan USA 2,000 8% 12 % 1,313 1,000 1,143 1,098 Eastern 773 Europe & CIS V&M 21 % 13 % 0 Tenaris Maverick Vallo
Slide 5: Solid industrial platform
Solid industrial platform • Integrated, fully invested network of 3 steel mills, 13 rolling mills and 14 heat treatment facilities producing seamless pipes in 7 countries • Annual capacity of 3.3 million tons of seamless and 850,000 tons of welded pipes • Comprehensive range of products manufactured
Slide 6: Positioned to serve the growing needs of demanding markets
Positioned to serve the growing needs of demanding markets Stavanger • Aberdeen • • Moscow Rugby • • Calgary London • • • Mannheim • AlgomaTubes Paris • • • Atyrau Dalmine Silcotub • Baku Beijing • • NKKTubes • • Houston • Seoul Cairo • Tamsa • Dubai Caracas • • Tavsa • Kuala Lumpur Bogota • • Port
Slide 7: Serving four market segments
Serving four market segments • Focusing on direct sales to end-user customers • Developing industry-leading products • Redesigning the supply chain • Established roots in major energy producing countries Oilfield Pipeline Process & Power Industrial & Services Services Plant Services Automotive Servi
Slide 8: Consistently profitable operations
Consistently profitable operations Millions of 2001 2002 2003 9M03 9M04 US$ Net Sales 3,174 3,219 3,180 2,418 2,863 Seamless 2,496 2,244 2,376 1,783 2,266 Welded 433 580 351 300 270 Energy 113 210 333 234 277 Others 132 185 120 102 50 EBITDA (1) 644 20% 667 21% 602 19% 472 20% 608 21% Net Income (2)
Slide 9: Strong financial position
Strong financial position Indebtedness (Million US$) Firm Value (Million US$) US$6,158 As of September 30, 2004 Net Debt 776 Cash & Cash Equivalents (1) 427 Market Cap (3) Financial Debt (2) 1,203 5,382 Net Debt 776 Net Debt/EBITDA (LTM) 1.04 Net Debt / Equity 38.6% Balance Sheet (Million US$) As of
Slide 10: Prepared to take advantage of an energy-demanding world
Prepared to take advantage of an energy-demanding world • Global acquisitions and alliances • Cost-competitive industrial structure • Advanced product development • Adding value in the supply chain • Financial strength Investor presentation Tenaris December, 2004 10
Slide 11: Investor presentation Tenaris December, 2004
Investor presentation Tenaris December, 2004 11
Slide 12: Appendix
Appendix Investor presentation Tenaris December, 2004 12
Slide 13: World oil demand
World oil demand mmb/d Rig us$/bb s l 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 E 2005 E Source:EIA and Deutsche Bank Investor presentation Tenaris December, 2004 13
Slide 14: Rig counts
Rig counts Rigs Us$/bbl Rig us$/bb (1) 2,500 s l 60 RIG COUNT: IIIQ03 IIIQ04 USA: 1088 1229 50 2,000 Canada: 383 326 (2) 40 Latin America: 253 292 1,500 Other Intl.: 529 555 30 TOTAL: 2253 2401 1,000 20 (1) Average Quarterly Values (2) Mexico included 500 10 0 0 01 01 01 01 02 02 02 02 03 03 03 03 0
Slide 15: E&P spending forecast
E&P spending forecast 2002 A 2003 A 2004 E (Billion US$) ∆ VS. 02 ∆ VS. 03 USA 32.0 32.9 2.8% 34.4 4.6% Canada 12.1 15.8 30.5% 15.1 -4.0% Outside USA/Canada 88.2 99.7 13.0% 109.9 10.2% Worldwide 132.3 148.4 6.6% 159.5 7.5% Source: Citigroup – Smith Barney . Mid-year Survey Investor presentation Tena
Slide 16: Changing focus of the majors
Changing focus of the majors Activity in non-traditional areas forecast to rise to 42% of total in 2010 000 boe/d 30,000 25,000 20,000 Russia Caspian Heavy oil 15,000 LNG Deep water 10,000 Traditional 5,000 0 2003 2004 2005 2006 2007 2008 2009 2010 Companies ExxonMobil, BP, Shell, ChevronTexaco, Tot
Slide 17: Strategic raw material costs
Strategic raw material costs US$/ton Jul. 03 Dec. 03 Jun. 04 Sep. 04 Oct. 04 Europe Scrap 141 194 207 272 326 Pig iron 168 200 285 340 370 North America Scrap 136 172 148 207 261 Pig iron 165 200 270 350 350 HBI 150 195 260 320 335 Fe Alloys FeMo (us$/kg Mo) 10.9 15.9 28.4 39.8 40.5 Source: CRU / MB
Slide 18: Recent acquisitions
Recent acquisitions Silcotub (Romania) − Enter Eastern Europe and strenghten position in European industrial and automotive market − Efficent and modern plant with cold drawing and finishing facilities − Additional 180,000 tons of seamless pipe capacity − US$42 million Posven (Venezuela) − Sourc
Slide 19: Corporate organization
Corporate organization Tenaris Manufacturing Services & Investment & Technology Procurement Companies Trading Financial AlgomaTubes Tenaris Global Tenaris Tenaris (Canada) Exiros Services Investments Connections Dalmine (Italy) Tenaris Financial Services NKKTubes (Japan) Siderca (Argentina) Silcotub