Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (September 2017)
14 slides from Tenaris's investor presentation, September 2017
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: Global Leader in Pipes for the Oil & Gas Industry
Global Leader in Pipes for the Oil & Gas Industry Investor Presentation Tenaris September 2017 3
Slide 4: Industry Response to Lower Prices / Breakeven Evolution for Key Shale Plays
Industry Response to Lower Prices 90 80 Breakeven Evolution 70 for Key Shale Plays 60 [US$/bbl] 50 40 120,0 30 20 20,0 10 100,0 - Eagle Ford Permian Delaware Permian Midland 80,0 2014 2015 2016 15,0 [US$/MMBtu] 60,0 WTI 10,0 40,0 LNG 5,0 20,0 Gas (Henry Hub) 0,0 0,0 Jan-12 Jul-12 Jan-13 Jul-13 Jan-1
Slide 5: OCTG Demand Recovery Underway
OCTG Demand Recovery Underway USA & CANADA [Mill tons] LATIN AMERICA 17.7 INTERNATIONAL CHINA & RUSSIA 8.0 11.6 12.1 4.0 8.8 5.2 1.1 2.2 0.8 3.9 0.6 0.7 2.6 2.6 2.6 4.8 4.2 3.5 3.7 2014 2015 2016 2017F PJ Mix 20% 23% 22% 21% Source: TS estimates Investor Presentation Tenaris September 2017 5
Slide 6: Rig Direct™ Global Deployment
Rig Direct™ Global Deployment Integrated service solution that addresses costs, quality, operational efficiency and sustainability TS OCTG Sales: % Rig Direct™ Dec 2016 Investor Presentation Tenaris September 2017 6
Slide 7: North America
North America USA Demand and Imports USA Inventory 7 [Mill Tn] 3,5 16 [Months] USA Demand [Mill Tn] 6 US Inventory 3,0 14 Imports from @5 months of stock 5 subject countries Months of stock 12 2,5 4 10 2,0 8 3 1,5 6 2 1,0 4 1 0,5 2 0,0 0 0 1Q02 4Q02 3Q03 2Q04 1Q05 4Q05 3Q06 2Q07 1Q08 4Q08 3Q09 2Q10
Slide 8: North America
North America Pipe Logix Raw Materials Costs Evolution 180 2.200 [US$/Mt ton] Iron Ore (IODEX) 160 Scrap USA (CRU) 2.000 HRC USA (CRU) 140 Pipe Logix HCC (Platts) 193 US$/Tn 1.800 120 1.600 100 675 US$/Tn 1,605 US$/Tn 80 1.400 293 US$/Tn 60 1.200 70 US$/Tn 40 1.000 20 Jul-17 2013 avg 1Q14 2Q14 3Q14
Slide 9: Rig Direct™ in North America
Rig Direct™ in North America Differentiated service offer in the world’s largest and most dynamic market Industrial infrastructure Service infrastructure Product development Shorter, more efficient and flexible supply chain Investor Presentation Tenaris September 2017 9
Slide 10: American Manufacturing Revival
American Manufacturing Revival Bay City, the world’s most modern seamless pipe mill, now in Texas Investor Presentation Tenaris September 2017 10
Slide 11: Well Positioned in Growth Areas
Well Positioned in Growth Areas Short term Medium term E. Mediterranean Gas Vaca Muerta Shale Offshore Recovery Mex. Energy Reform Fast track deepwater Conditions for Recovery in offshore Energy reform process pipeline developments investment in projects will increase advancing steadily but (eg Zohr
Slide 12: Financial Performance
Financial Performance M illions of US$ (except rat ios and per ADS amount s) 2012 2013 2014 2015 2016 H1 2017 Net Sales 10,648 10,424 10,141 6,903 4,294 2,397 EBITDA 2,856 2,780 2,696 1,219 598 399 EBITDA Adjusted 2,856 2,780 2,696 1,396 672 420 EBITDA Adjusted margin 27% 27% 27% 20% 16% 18% Net inc
Slide 13: Closing Remarks
Closing Remarks • Market has changed in response to lower commodity prices: recovery underway led by North American shales • Pipe prices increasing from unsustainable levels on higher demand • Tenaris is uniquely positioned to take advantage in all regions and segments where growth is taking place •
Slide 14: Investor Presentation Tenaris September 2017
Investor Presentation Tenaris September 2017 14