Vallourec Sa · EURONEXT:VK
Vallourec Sa — Q1 2017 Earnings Presentation
26 slides from Vallourec Sa's earnings presentation, Apr 26, 2017
Slide 1: Q1 2017 Results Investor Presentation
Q1 2017 RESULTS Investor Presentation 26 April 2017
Slide 2: Information and Forward-Looking Statements
INFORMATION Quarterly financial statements are unaudited and are not subject to any review Half year financial statements are subject to limited review by statutory auditors Full year consolidated financial statements at 31 December are audited Unless otherwise specified, indicated variation
Slide 3: Q1 2017 Highlights
Q1 2017 HIGHLIGHTS CHARTE POWERPOINT VALLOUREC 26/04/2017 3
Slide 4: Volumes Shipped Across the Cycle
VOLUMES SHIPPED ACROSS THE CYCLE VOLUMES SHIPPED 2013-Q1 2017 (in Kt) 2013 2014 2015 2016 2,159 Kt 2,323 Kt 1,411 Kt 1,281 Kt * Tianda included Q1 2017 RESULTS – INVESTOR PRESENTATION – 26 APRIL 2017 4
Slide 5: Q1 2017 Key Figures
Q1 2017 KEY FIGURES VOLUMES SHIPPED (In Ktons) REVENUE (in millions of €) EBITDA(1) (in millions of €) FREE CASH FLOW(2) (in millions of €) (1) Earnings Before Interest, Taxes, Depreciation and Amortization (2) Non-GAAP measure defined as cash flow from operating activities minus capital expenditure
Slide 6: Q1 2017 Revenues
Q1 2017 REVENUES +16.7% 8.5% -37.8% 36.3% 9.7% €783m €671m * Scope effect calculated with regard to restated Q1 2016 revenue Q1 2017 RESULTS – INVESTOR PRESENTATION – 26 APRIL 2017 6
Slide 7: Q1 2017 Financial Results
Q1 2017 FINANCIAL RESULTS CHARTE POWERPOINT VALLOUREC 7
Slide 8: Revenue Breakdown
Q1 2017 REVENUE BREAKDOWN AS % OF TOTAL GROUP REVENUE REVENUE BY MARKET REVENUE BY REGION Oil & Gas Power Generation North America Rest of the world Petrochemicals Industry & Other South America Europe Asia & Middle East Q1 2017 RESULTS – INVESTOR PRESENTATION – 26 APRIL 2017 8
Slide 9: From Revenue to EBITDA
Q1 2017: FROM REVENUE TO EBITDA Change Change in millions of € Q1 2017 Q1 2016 Q4 2016 YoY QoQ EBITDA up €51m YoY Revenue 783 671 16.7% 838 -6.6% Consolidated revenue up: Due to a positive (1) Cost of sales (682) (621) +9.8% (778) -12.3% scope and forex effect Industrial margin 101 50 102.0% 6
Slide 10: From EBITDA to Net Income
Q1 2017: FROM EBITDA TO NET INCOME Change Change in millions of € Q1 2017 Q1 2016 Q4 2016 YoY QoQ EBITDA (21) (72) +51m (63) +42m Net loss reduced Depreciation (79) (70) 12.9% (73) 8.2% by €158m, of industrial assets thanks to Amortization increased (11) (11) na (16) na and other depreciation EBIT
Slide 11: Free Cash Flow
Q1 2017 FREE CASH FLOW in millions of € Q1 2017 Q1 2016 Q4 2016 Cash flow from operating activities (82) (135) (124) (FFO) (A) Change in WCR (B) (104) (61) +196 + decrease, (increase) Gross capital expenditure (C) (34) (43) (75) Free Cash Flow* (A)+(B)+(C) (220) (239) (3) FREE CASH FLOW: €(220) m (*
Slide 12: Net Debt
Q1 2017 NET DEBT (in millions of €) Net Debt as at Net Debt as at 31 Dec. 2016 31 Mar. 2017 Net Net debt = debt = 42% 34.0% of of equity equity Cash flow from operating activities Change Gross Asset in WCR(1) Dividends (1,287) capital disposals paid (82) expenditure & other items (104) - (34) (26) (
Slide 13: Liquidity and Financing
LIQUIDITY AND FINANCING LONG-TERM DRAWN DEBT MATURITY PROFILE (in € m) 1 084 1 084 1 066 Net debt at 31 March 2017 Gross debt €2.5 billion (incl. €1.1 billion LT debt: bonds, leasing...) 650 635 621 607 Cash: €1 billion Net debt: €1,533 million Liquidity at 31 March 2017 Mar-17 Dec-17 Dec-
Slide 14: Outlook
OUTLOOK 26/04/2017 CHARTE POWERPOINT VALLOUREC 14
Slide 15: 2017 Outlook
2017 OUTLOOK Oil & Gas revenue in the US expected to rebound more significantly than previously foreseen, while timing of recovery in EAMEA still uncertain In Brazil, drilling activity expected to remain broadly stable compared to 2016 No major changes in other Group businesses Vallourec Tra
Slide 16: Appendix
APPENDIX CHARTE POWERPOINT VALLOUREC 26/04/2017 16
Slide 17: Vallourec at a Glance
VALLOUREC AT A GLANCE FY 2016: Worldwide presence with 18,300 employees(1) in more than 20 countries Over 50 production facilities worldwide delivering a large spectrum of products for diversified applications, geographies and sectors Sales volume: 1,281 Kt Highly innovative with 6 advanced R&
Slide 18: Recovery Fundamentals
RECOVERY FUNDAMENTALS Global oil production needs (2012-2035) 0.5% Demand growth Above and beyond demand, field (per year) depletion is the key factor: 5m Bpd need to be put in production every year to maintain current oil supply Production decline (per year) Rebound in E&P necessary to avoid a
Slide 19: Transformation Plan: Strategic Initiatives Fully Executed
TRANSFORMATION PLAN: STRATEGIC INITIATIVES FULLY EXECUTED Reshape European operations Closure of four facilities 2 rolling mills: Saint-Saulve and Déville-Lès-Rouen (France) 1 threading line: Mülheim (Germany) 1 heat treatment line: Bellshill (Scotland) Sale of a majority holding in Saint-Saulve ste
Slide 20: A Reshaped Industrial Set-up
A RESHAPED INDUSTRIAL SET-UP NORTH AMERICA EUROPE Rolling capacity: Rolling capacity: 2014: 750 Kt, i.e. 25% 2014: 1,350 Kt, i.e. 46% 2017: 750 Kt, i.e. 24% 2017: 700 Kt, i.e. 23% BRAZIL CHINA Rolling capacity: Rolling capacity*: 2014: 800 Kt, i.e. 27% 2014: 0 Kt 2017: 1,100 Kt, i.e. 35% 2017: 550 K
Slide 21: Transformation Plan: Targets Confirmed
TRANSFORMATION PLAN: TARGETS CONFIRMED Transformation Plan Valens savings to be overachieved: €350m €750m1,2 Target 2015-2017: €350m3 Achieved 2015-2016: €280m4 €250m Transformation Plan execution fully in line: Valens Savings: Target of €400m over 2016-2020 €150m €150M already achieved
Slide 22: Q1 2017 Financial Data
Q1 2017 FINANCIAL DATA Q1 2017 RESULTS – INVESTOR PRESENTATION – 26 APRIL 2017 22
Slide 23: Revenue by Geography
REVENUE BY GEOGRAPHY As % As % Change in millions of € Q1 2017 Q1 2016 Q4 2016 of revenue of revenue YoY Europe 115 14.7% 135 20.1% -14.8% 186 North 187 23.9% 128 19.1% +46.1% 193 America South 163 20.8% 98 14.6% +66.3% 89 America Asia & Middle 276 35.2% 171 25.5% +61.4% 289 East Rest of 42 5.4% 139
Slide 24: Capital Expenditure
CAPITAL EXPENDITURE (in millions of €) 909 873 803 677 567 529 388 268 175 34 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q1 2017 Q1 2017 RESULTS – INVESTOR PRESENTATION – 26 APRIL 2017 24
Slide 25: Q1 2017 Balance Sheet
Q1 2017 BALANCE SHEET In millions of € 31 Mar. 2017 31 Dec. 2016 In millions of € 31 Mar. 2017 31 Dec. 2016 Equity, Group share 3,183 3,284 Non current assets 4,801 4,877 Non-controlling interests 479 494 Inventories 1,199 1,035 and work-in-progress Equity 3,662 3,778 Trade and other Shareholder loa
Slide 26: Investor Relations Contact
EURONEXT PARIS: ISIN CODE: FR0000120354, TICKER: VK USA: AMERICAN DEPOSITARY RECEIPT (ADR) - ISIN CODE: US92023R2094, TICKER: VLOWY Investor Relations Contact - Vallourec Group Tel: +33 1 49 09 39 76 / email: investor.relations@vallourec.com www.vallourec.com