Tubacex, S.a. · BME:TUB

Tubacex — Investor Presentation (2015)

55 slides from Tubacex's investor presentation, 2015

  1. Slide 1: Tubacex Corporate Presentation 2015

    TUBACEX Corporate Presentation 2015 Tubacex Group 1

  2. Slide 2: Table of Contents

    Table of Contents 1 Tubacex Group 2 Strategic Plan 2013 – 2017 3 Current Status of the Strategic Plan 4 Transaction and Impact of IBF 5 Appendix Tubacex Group 2

  3. Slide 3: A strong Group to Your Service

    Tubacex Group A strong Group to Your Service Tubacex Group is an industrial group specialized in the production & distribution of high added value seamless stainless products, with global presence The Tubacex Group is listed on the Spanish Stock Market A fully integrated player Steel billets & Pipes

  4. Slide 4: A Group with a strong global presence

    Tubacex Group A Group with a strong global presence SWEDEN RUSSIA FINLAND UK NETHERLANDS POLAND GERMANY AUSTRIA FRANCE CZECHIA ACERALAVA SBER TTI LLODIO MIS SBER PU TTI AMURRIO IBF TTI OCTG JAPÓN SALEM TUBE ITALY TTA COTUBES TURKEY TSS TUBOS USA MECANICOS CHINA S.KOREA TUBACEX AMERICA MOROCCO TAIWAN

  5. Slide 5: Global leading supplier of seamless stainless steel tubes

    Tubacex Group  Global leading supplier of seamless stainless steel tubes  Sales of 600 million EUR  Investment of 152.2 million EUR in the 2008‐2013 period  Commercial presence in over 100 countries  More than 300 customers  c.2500 professionals Worlwide leading supplier of SSST Tubacex Group

  6. Slide 6: Sales breakdown by sector

    Tubacex Group Sales breakdown by sector* Others 3% Chem & Petroch. 13% E&P Oil&Gas 39% PowerGen 15%  Oil&Gas sector maintain its increasing weight in Group sales  Important orders in Subsea sector with important orders for tubes for high pressure equipment and tubes for Oil&Gas production in aggre

  7. Slide 7: Geographic Sales Breakdown

    Tubacex Group Geographic Sales Breakdown* 56% 14% 25% Europe U.S. and Canada Asia 5% ROW Products sold in more than 100 countries * Sales in 2014 Tubacex Group 7

  8. Slide 8: Seamless Stainless Steel Tube Sector

    Tubacex Group Seamless Stainles Steel Tube Sector Main Characteristics Main Customers  Production: 0,3 million tons per year vs. 1.300  OIL&GAS E&P million tons of crude steel production  On shore  Off shore  Highest value added steel market niche  PETROCHEM INDUSTRIES  Refineries  Constant

  9. Slide 9: Tubacex Story

    Tubacex Group TUBACEX STORY Tubacex Group 9

  10. Slide 10: Table of Contents

    Table of Contents 1 Tubacex Group 2 Strategic Plan 2013 – 2017 3 Current Status of the Strategic Plan 4 Transaction and Impact of IBF 5 Appendix Tubacex Group 10

  11. Slide 11: Four Strategic Targets

    Strategic Plan 2013 - 2017 Four Strategic Targets Double the Reduce Market Be a benchmark Be the company company's value Volatility supplier for for which people in 5 years clients want to work  Results: EBITDA, EBIT,  Break even vs. Sales  Market Share  Safety etc.  Product Diversification  Q

  12. Slide 12: Calendar

    Strategic Plan 2013 - 2017 Calendar Cash Generation Growth Consolidation Phase I Phase II Phase III 2013‐2014 2015‐2016 2017… 30% High Value-added 40% High Value-added 50% High Value-added Product Mix Products vs. 70% Traditional Products vs. 60% Traditional Products vs. 50% Traditional Sales Growth

  13. Slide 13: Strategic Axes

    Strategic Plan 2013 - 2017 Strategic Axes Management Strategy Business Strategy  Operational Excellence  Market  Process Management  Customer  Target alignment and  Product deployment Growth Strategy Operational Strategy  To be developed TxPS in Phase II Participation  PDCA Cycle Managemen

  14. Slide 14: Table of Contents

    Table of Contents 1 Tubacex Group 2 Strategic Plan 2013 – 2017 3 Current Status of the Strategic Plan 4 Transaction and Impact of IBF 5 Appendix Tubacex Group 14

  15. Slide 15: Main Financial Figures 2014

    Current Status of the Strategic Plan Main Financial Figures 2014 2013 2014 % €M Sales 554.1 546.7 ‐1.4% EBITDA 51.3 64.1 25.1% EBITDA Margin 9.3% 11.7% EBIT 31.5 43.7 38.5% EBIT Margin 5.7% 8.0% Profit Before Tax 16.6 32.6 96.6% Margin on sales 3.0% 6.0% 2013 2014 % Working Capital 217.6 202.4 ‐7.0%

  16. Slide 16: Main ratios 2014

    Current Status of the Strategic Plan Main ratios 2014 FY 2013 FY 2014 €M EBITDA Margin 9.3% 11.7% EBIT Margin 5.7% 8.0% EBT Margin 3.0% 6.0% R.o.E. 5.8% 8.4% R.o.C.E. 6.9% 10.0% Interest coverage 2.3x 3.8x Net working capital / sales 39.3% 37.0% Net Financial Debt / EBITDA 3.8x 2.4x Net Financial De

  17. Slide 17: H1 2015. Main figures

    Current Status of the Strategic Plan H1 2015. Main figures €M H1 2014 H1 2015 % Sales 276.6 302.5 9.4% EBITDA 34.9 33.71 ‐3.4% EBITDA Margin 12.6% 11.1% EBIT 24.0 17.9 ‐25.3% EBIT Margin 8.7% 5.9% Net Profit 13.7 14.0 1.8% Margin over sales 5.0% 4.6% Dec. 2014 H1 2015 % Net Working Capital 202.4 240

  18. Slide 18: Main Ratios Evolution

    Current Status of the Strategic Plan Main Ratios Evolution EBITDA Margin (%) EBIT Margin (%) 11,7% 8,0% 8,6% 9,3% 5,7% 5,0% FY 2012 FY 2013 FY 2014 FY 2012 FY 2013 FY 2014 EBT Margin (%) NFD/EBITDA 5,7x 6,0% 3,8x 3,0% 2,4x 2,5% FY 2012 FY 2013 FY 2014 FY 2012 FY 2013 FY 2014 Improving significantly

  19. Slide 19: Fulfillment of the Strategic Plan

    Current Status of the Strategic Plan Fulfillment of the Strategic Plan Successful fulfillment of Phase I and already started Phase II 1. Sales growth 2014 vs. 2012, assuming stable nickel price Tubacex Group 19

  20. Slide 20: Growth Strategy

    Current Status of the Strategic Plan Growth Strategy Growth Vision: Be a solutions provider Phase II  Organic and inorganic growth focused on value generation and 2015‐2016 looking for complementarity and synergies. 40% High Value Added  Maintain debt multiples of 2-3 times EBITDA. Products vs. 60

  21. Slide 21: Organizational Structure

    Current Status of the Strategic Plan Organizational Structure Asia & Spain Austria EE.UU. Italy … Middle East Financial & Controlling IMPLEMENTING SYSTEMS, MANAGEMENT MODELS AND Commercial ACHIEVING SYNERGIES & Trading HR Policies Purchasing R&D & Innovation Operations CLEAR P&L RESPONSIBILITY Organ

  22. Slide 22: Table of Contents

    Table of Contents 1 Tubacex Group 2 Strategic Plan 2013 – 2017 3 Current Status of the Strategic Plan 4 Transaction and Impact of IBF 5 Appendix Tubacex Group 22

  23. Slide 23: Transaction details

    Transaction & Impact of IBF Transaction details  TUBACEX takes over 65% of IBF share capital with a call option for the remaining 35% Benefits of the deal  Improvement in TUBACEX competitive positioning getting closer to become a solutions provider  Commitments and goals of the Strategic Plan are

  24. Slide 24: Fit with Tubacex Strategic Goals

    Transaction & Impact of IBF Fit with TUBACEX Strategic Goals TUBACEX GOALS Double the Reduce Market Be a benchmark Be the company for company's value in 5 Volatility supplier which people want years to work CONTRIBUTION  Unique position as  Geographic and  Management team Expected medium term man

  25. Slide 25: Investment rationale

    Transaction & Impact of IBF Investment rationale R&D opportunities for Tubacex becomes the development of new only manufacturer with products / materials complete dimensional range Significant Synergies that allow to improvements as increase contribution consequence of TxPS margin implementation The

  26. Slide 26: Commercial synergies: Product (i)

    Transaction & Impact of IBF Investment rationale Commercial synergies: Product (i)  Tubacex becomes the only Company that can offer the complete dimensional range in Seamless Stainless Steel Tubes Complete dimensional range Tubacex Group 26

  27. Slide 27: Commercial synergies: Product (ii)

    Transaction & Impact of IBF Investment rationale Commercial synergies: Product (ii)  The acquisition allows Tubacex to increase significantly its position in the fittings market − Manifolds, special components, laterals, etc.  The deal strengths the Tubacex competitiveness position by offering a c

  28. Slide 28: Commercial synergies: Product (iii)

    Transaction & Impact of IBF Investment rationale Commercial synergies: Product (iii) Downhole OCTG Oil & Gas E&P Subsea Well Intervention Onshore and Offshore Trees, Manifolds, Flow lines Umbilical, Control lines Risers, Jumpers, Connections Top side Platforms, FPSO Transportation Ships Process, re-

  29. Slide 29: Commercial synergies: Sector

    Transaction & Impact of IBF Investment rationale Commercial synergies: Sector TBX current  IBF acquisition allows Tubacex Premium offer Group to increase its premium offer by 30% Post IBF: + 30%  Increase of the offer by application sector Increase in Premium Product offer *Including nuclear Tubac

  30. Slide 30: Commercial synergies: Customers

    Transaction & Impact of IBF Investment rationale Commercial synergies: Customers  Clear commercial synergies due to the complementarity of clients Move forward in the Value Chain Tubacex Group 30

  31. Slide 31: Commercial synergies: Geographic

    Transaction & Impact of IBF Investment rationale Commercial synergies: Geographic  Revenues breakdown by customer country Europe North America Asia  Tubacex: 58%  Tubacex: 13%  IBF: 29%  Tubacex: 26%  IBF: 17%*  TBX+IBF: 50%  IBF: 58%  TBX+IBF: 14%  TBX + IBF: 34% RoW  Tubacex: 3%  IBF:

  32. Slide 32: Purchasing synergies

    Transaction & Impact of IBF Investment rationale Purchasing synergies  Synergies when buying raw material  Potential improvement in the management and sale of stainless scrap  Potential improvement in the purchase of other consumables and goods  Potential for synergy concerning the reuse of carr

  33. Slide 33: Operational synergies

    Transaction & Impact of IBF Investment rationale Operational synergies  TxPS implementation would allow significant improvements in capacity and productivity  Substantial operational improvements in reducing operating costs and rationalizing of working capital Together towards excellence Tubacex G

  34. Slide 34: Operational synergies

    Transaction & Impact of IBF Investment rationale Operational synergies Replicate the successful model implemented in Tubacex Tubacex Group 34

  35. Slide 35: Operational synergies

    Transaction & Impact of IBF Investment rationale Operational synergies  Goals Achieved: − Strong reduction of working capital thanks to lean manufacturing methods − Decrease of lead time − Productive improvement (OEE increase) together with cost cutting − Better use of materials improving refuse in

  36. Slide 36: Technological and R&D Opportunities

    Transaction & Impact of IBF Investment rationale Technological and R&D Opportunities Opportunities from the customer development point of view  Common R&D projects (materials, solutions, etc.)  A strong step towards becoming a full provider of solutions  Combined process to extend the product ran

  37. Slide 37: Technological and R&D Opportunities

    Transaction & Impact of IBF Investment rationale Technological and R&D Opportunities Opportunities from know-how point of view  Complementary technologies to manufacture a broader range of products  Development of process know-how  Best-practice deployment Oil & Gas tube Umbilical Coiled tubing -

  38. Slide 38: Impact on revenues

    Transaction & Impact of IBF Impact on revenues TUBACEX TUBACEX + IBF* Others 3% Others 3% Revenues by Asia 26% Asia 34% geographical Europe 50% aera Europe 58% USA + Canada 13% USA + Canada 14% Others 3% Others 5% PowerGen Nuclear 3% 15% E&P Powergen E&P Oil&Gas Revenues by Oil&Gas 20% 36% applicati

  39. Slide 39: Pro-forma financial figures 9M 2014

    Transaction & Impact of IBF Pro - forma financial figures 9M 2014 TBX + IBF €M TBX IBF 9M 2014 Sales 400.0 125.4 525.4 EBITDA 49.0 10.6 59.6 EBITDA Margin 12.3% 8.4% 11.3% EBIT 33.9 6.1 40.0 EBIT Margin 8.5% 4.9% 7.6% EBT 25.2 4.8 30.0 EBT Margin 6.3% 3.8% 5.7% Working Capital 210.1 72.5 282.6 Net F

  40. Slide 40: Table of Contents

    Table of Contents 1 Tubacex Group 2 Strategic Plan 2013 – 2017 3 Current Status of the Strategic Plan 4 Transaction and Impact of IBF 5 Appendix Tubacex Group 40

  41. Slide 41: Tubacex Product Strategy

    Appendix Tubacex Product Strategy Market value Focus on strategic Margin markets Commodity to Move to optimize capacity Premium and/or LCC Products D C B A Product Portfolio R&D&I New commercial profiles Excellent service M&A Key condition: Reinforce R&D and industrialization process and refocusing

  42. Slide 42: Product Strategy - Positioning

    Appendix Tubacex Product Strategy - Positioning Strong Tubacex presence Tubacex Growing presence + Off- shore Umbilicals CRA OCTG SC Boilers Market Growth Urea Precision High Alloys Furnaces Std Heat Downstream Exchangers linepipe Nuclear Std Hollow Boilers Bar - Focus on customer service Continue o

  43. Slide 43: Tubacex Product Strategy – Product Portfolio

    Appendix Tubacex Product Strategy – Product Portfolio Downhole OCTG Oil & Gas E&P Subsea Well Intervention Trees, Manifolds, Flow lines Umbilical, Control lines Risers, Jumpers, Connections Top side Platforms, FPSO Midstream Transportation Ships Process, re-gas Process piping Refining Linepipe Downs

  44. Slide 44: Tubacex Product Strategy

    Appendix Tubacex Product Strategy TX Sales % 2013 Oil & Gas Industry Diagram Oil & gas E&P onshore and offshore Gas Production 34% Oil production Process 14% On shore processing Downstream-HPI Platform 33% Power Generation FPSO Downstream 15% Other 4% Downhole Subsea Prod. Strong presence in the Oil

  45. Slide 45: Oil&Gas E&P: Subsea

    Appendix Tubacex Product Strategy– Oil&Gas E&P: Subsea  The umbilicals market continues to show very high growth rates over 5%.  Good fundamentals with sustained and more variable growth for subsea and top-site, respectively.  Opportunity: to complete our portfolio and continue progressing in our

  46. Slide 46: Oil&Gas E&P: Subsea. Concepts

    Appendix Tubacex Product Strategy– Oil&Gas E&P: Subsea. Concepts Drilling Rig Upstream E&P Topside/Platform Offshore Drill-ship Downstream Onshore FPSO/FLNG Tie-Back SUBSEA  FPSO: Floating, Production, Storage and Offloading. FLNG: Floating Liquified Natural Gas  SURF: Subsea, Umbilicals, Risers a

  47. Slide 47: Oil&Gas E&P: Subsea. Products

    Appendix Tubacex Product Strategy– Oil&Gas E&P: Subsea. Products BOP/Well Heads Risers Pipeline Umbilicals Flowline Manifold Manifold Jumpers/Spools Xmas Trees Tubacex Group 47

  48. Slide 48: Oil&Gas E&P: Subsea. Players

    Appendix Tubacex Product Strategy– Oil&Gas E&P: Subsea. Players Operators Integrators EPCs Tubacex Group 48

  49. Slide 49: Oil&Gas E&P: OCTG

    Appendix Tubacex Product Strategy– Oil&Gas E&P: OCTG  Our competitive position in OCTG is strong thanks to our investments and applied R&D  Development prospects are very positive for Asia (Middle East and Far East)  Tubacex was very well received by end-users  Opportunity: to continue our techn

  50. Slide 50: Downstream HPI: Fertilizer

    Appendix Tubacex Product Strategy– Downstream HPI: Fertilizer  The fertilizer market is a key target of our new Strategic Plan.  Sustained growth and lower fluctuations than in the energy sector.  Opportunity: to increase our market knowledge and to enter into a new market Global Fertilizer Consu

  51. Slide 51: Product Strategy - Power Gen

    Appendix Tubacex Product Strategy- Power Gen  Nuclear:  Our presence in the nuclear market is still reduced but we hope to continue growing.  Opportunity: JV Project: Global Nuclear Supply  Boilers:  Power generation prospects are good, despite heavy dependency on China e India.  Part of the i

  52. Slide 52: Precision & Aerospace

    Appendix Tubacex Product Strategy - Precision & Aerospace  Good fundamentals  Good competitive position of Salem: major opportunities in the US and to be developed in Europe Aircraft Demand 1400 1200 1000 800 600 400 200 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Hydrocarbon Proce

  53. Slide 53: Improvement of the mix

    Appendix Tubacex Product Strategy– Improvement of the mix Previous projections Current projections 72% 75% 66% 67% 61% 61% 56% 56% 48% 51% 46% 42% 46% 39% 42% 33% 36% 30% 28% 31% 24% 20% 20% 19% 2012 2013E 2014E 2015E 2016E 2017E 2013 2014E 2015E 2016E 2017E 2018E New Products Higher Value Added Pro

  54. Slide 54: Conclusion

    Appendix Conclusion Cash Generation Growth Consolidation Phase I Phase II Phase III 2013-2014 2015-2016 2017… 30% High Value-added 40% High Value-added 50% High Value-added Product Mix Products vs. 70% Traditional Products vs. 60% Traditional Products vs. 50% Traditional Sales Growth > 15% > 15% > 1

  55. Slide 55: Many thanks for your attention

    MANY THANKS FOR YOUR ATTENTION WWW.TUBACEX.COM Tubacex Group 55

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