Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (February 2014)
19 slides from Tenaris's investor presentation, February 2014
Slide 1: Investor Presentation
Investor Presentation Tenaris
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: Market environment
Market environment Oil prices Gas prices [$/bbl] [$/MMbtu] 140 25 120 Brent Spot LNG NE Asia 20 100 WTI 80 15 NBP ICE UK 60 WCS 10 40 5 HH 20 0 0 Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Jul‐10 Jan‐11 Jul‐11 Jan‐12 Jul‐12 Jan‐13 Jul‐13 Jan‐14 Jan‐08 Jul‐08 Jan‐09 Jul‐09 Jan‐10 Jul‐10 Jan‐11 Jul‐11 Jan‐12
Slide 4: Market environment
Market environment Rig count US drilling efficiencies 1,30 [Wells/rig, 1,26 Index Q1'12] 4.000 1,20 3.500 1,13 3.000 1,10 1,04 2.500 1,00 2.000 1.500 0,90 Avg. Shale 1.000 Avg. US Land 0,80 500 Avg. Non‐Shale ‐ 0,70 2009 2010 2011 2012 2013 1Q‐12 2Q‐12 3Q‐12 4Q‐12 1Q‐13 2Q‐13 3Q‐13 4Q‐13(f) Internat
Slide 5: OCTG demand
OCTG demand OCTG demand evolution Premium OCTG consumption by application (2013F) [Mill Tn] Premium Deep 17,1 16,6 Water API Others Oil 14% 15,2 3,9 24% 13,4 3,4 2,8 2,4 10,1 Shallow Water 2,0 21% Others 12,4 13,2 13,3 Gas 11,0 18% 8,1 Shale Oil Shale Gas 15% 8% 2009 2010 2011 2012 2013F * HPHT appl
Slide 6: OCTG demand
OCTG demand [Mill Tn] 17,1 16,6 Shales 15,2 13,4 4,1 4,3 Others 2,8 1,6 10,1 11,8 12,4 12,5 12,8 10,1 2009 2010 2011 2012 2013F Investor presentation Tenaris February 2014 6
Slide 7: Shipments by product type
Shipments by product type 200% 132% 100% 107% 86% 2010 2011 2012 2013F PREMIUM OCTG SLP INDUSTRIAL Investor presentation Tenaris February 2014 7
Slide 8: Key markets in transition
Key markets in transition 2013 Mid-term USA & Canada • Infrastructure constraints • Shale gas • Unfairly traded imports • Thermal Mexico • Chicontepec • Energy & fiscal reform • Pemex financial and operating • Deepwater constraints • Shale gas Brazil • Petrobras financial and • Deepwater operating c
Slide 9: USA OCTG trade case
USA OCTG trade case USA OCTG imports • On February 18, 2014, the DOC imposed [Mill Tn] preliminary anti-dumping duties on a 3.3 majority of the subject countries but not 3.0 Korea. 2.6 0.8 0.9 2.1 0.6 0.8 • The DOC has stated that, in its final 1.5 0.5 0.5 0.7 0.3 determination (July 7, 2014), it wi
Slide 10: Bay City
Bay City Investor presentation Tenaris February 2014 10
Slide 11: Bay City: strategic location
Bay City: strategic location Hickman Fayetteville Woodford Barnett Permian Haynesville Tuscaloosa Marine Houston Conroe / McCarty Westwego 500 mile radius Freeport Bay City 350 mile Mexico Eagle Ford radius Tamsa Investor presentation Tenaris February 2014 11
Slide 12: Key markets showing strong growth
Key markets showing strong growth Middle East OCTG consumption Deepwater OCTG consumption [Th Tn] [Th Tn] 54% 1.400 600 50% 1.200 43% PJ Gas 500 1.000 40% 400 800 30% 300 600 Oil 20% 200 400 10% 100 200 0 0% 0 2011 2012 2013F 2011 2012 2013F Investor presentation Tenaris February 2014 12
Slide 13: Premium connections portfolio
Premium connections portfolio New products for more complex drilling requirements TSH Wedge 623™ TSH Blue® Riser Deepwater TSH Wedge 623™ (GOM) TSH Blue® Riser (GOM) HP/HT Blue® Max (North Sea) Blue® Heavy Wall (Angola) TSH Blue® Max TSH Blue® Quick Seal Large Diameter Conductor and Surface Casing B
Slide 14: Global industrial system and supply chain
Global industrial system and supply chain Investor presentation Tenaris February 2014 14
Slide 15: Financial performance
Financial performance Free cash flow and EBITDA margin LTM FCF US$ million 8.000 SLB 7.000 6.000 5.000 4.000 3.000 HAL TS 2.000 BHI 1.000 LTM EBITDA % ‐ ‐1.000 0% 5% 10% 15% WFT 20% 25% 30% 35% ‐2.000 LTM= last twelve months Free cash flow = Operating cash flow – Capital expenditures EBITDA= Operati
Slide 16: Financial performance
Financial performance Free cash flow and EBITDA margin LTM FCF US$ million 3.000 2.500 TS 2.000 1.500 TMK 1.000 500 ‐ LTM EBITDA % 0% 5% 10% 15% 20% 25% 30% 35% ‐500 VK ‐1.000 LTM= last twelve months Free cash flow = Operating cash flow – Capital expenditures EBITDA= Operating income + Depreciation
Slide 17: Operating and financial results
Operating and financial results M illions of US$ (except rat ios and per ADS amounts) 2009 2010 2011 2012 2013 Net Sales 8.149 7.712 9.972 10.834 10.594 Operating income 1.734 1.519 1.844 2.357 2.185 EBITDA 2.239 1.959 2.399 2.875 2.795 EBITDA margin 27% 25% 24% 27% 26% Net income of owners of the p
Slide 18: Strategic agenda
Strategic agenda • Expansion in North America: new industrial and logistics center in USA • Strengthen our leading position in Latin America: Mexico, Colombia, Brazil, Argentina • Leverage technical leadership and global capabilities in complex projects worldwide • Differentiation through product de
Slide 19: Investor presentation Tenaris February 2014
Investor presentation Tenaris February 2014 19