Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (September 2009)
13 slides from Tenaris's investor presentation, Sep 7, 2009
Slide 1: London Investor Presentation
London Investor Presentation Paolo Rocca Chairman and Chief Executive Officer September 7, 2009
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: Tenaris through the decades
Tenaris through the decades • 1950s Foundation • 1960s Integration • 1970s Modernization • 1980s Expansion • 1990s Globalization • 2000s Differentiation London Investor Presentation Tenaris September 7, 2009 3
Slide 4: Today leader in our sector with differentiated products and services
Today leader in our sector with differentiated products and services • Full product range of premium, seamless and welded instrumental in changing procurement patterns • Leaders in premium connection, sour service and riser technologies for complex applications • Technical and logistics service Blue
Slide 5: And global positioning close to our customers
And global positioning close to our customers London Investor Presentation Tenaris September 7, 2009 5
Slide 6: Impact of crisis on energy sector
Impact of crisis on energy sector Rig count, WTI, North American natural gas and coal prices Rigs (US$/mmbtu) 4,000 25.0 3,500 20.0 3,000 2,500 15.0 2,000 10.0 1,500 1,000 5.0 500 0 0.0 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 International US
Slide 7: High decline rates and long lead times make investments inevitable
High decline rates and long lead times make investments inevitable Global oil decline rates World Super Giant Giant All other Average rates per annum 2003-2007 Total 6.7% 3.4% 6.5% 10.4% Onshore 5.6%* 3.4% 5.6% 8.8% Offshore 8.6%* 3.4% 8.6% 11.6% Source: IEA WEO 2008. * Tenaris estimates London Inve
Slide 8: North American gas depletion is higher
North American gas depletion is higher 25.0 Tcf NatGas 1,491 Consumption Imports + stock withdrawals 20.0 20 0 9 Vi n Vi Vi Vi ta n n Vi Vi ta 20 ge Vi ta Vi n nt nt ta n g ge 08 n e ag 20 ta ag ta ge Vi 20 15.0 g 20 03 e ge nt e 20 e 06 20 07 ag 20 19 00 20 02 e 05 01 99 20 NatGas 04 Production 10.
Slide 9: But US OCTG inventories will have to be worked down
But US OCTG inventories will have to be worked down Months of supply Market share % 14 50% 45% 12 40% 10 35% 30% 8 25% 6 20% 4 15% 10% 2 5% - 0% 2004 2005 2006 2007 2008 1H09 Inventory levels - months of supply Chinese OCTG USA market share (%) Source: Duane Murphy Inventory Survey, US Department of
Slide 10: The crisis on our results
The crisis on our results Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Sales volume (metric tons) Tubes-Seamless 686 771 669 692 579 497 Tubes-Welded 282 270 263 242 110 65 Tubes-Total 968 1,041 932 934 689 562 Projects-Welded 132 170 155 134 84 90 Total 1,100 1,211 1,087 1,068 772 652 (US$ milli
Slide 11: Margins per ton of our Tubes segment
Margins per ton of our Tubes segment Prices and costs per metric ton of our Tubes segment US$ per metric ton 4,000 3,000 2,000 1,000 0 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 Margin per ton Cost per ton Price p
Slide 12: Competitive position: looking beyond the crisis
Competitive position: looking beyond the crisis Financial position • Financial strength: low net debt, good US$ million cash flow and higher margins than 4,000 1.0 competitors 0.8 3,000 0.6 • Unique global positioning: local 2,000 0.4 presence in major markets worldwide 1,000 0.2 0 0.0 • Flexible in
Slide 13: London Investor Presentation Tenaris September 7, 2009
London Investor Presentation Tenaris September 7, 2009 13