Vallourec Sa · EURONEXT:VK
Vallourec Sa — H1 2018 Earnings Presentation
17 slides from Vallourec Sa's earnings presentation, Jul 25, 2018
Slide 1: H1 2018 Results Investor Presentation
H1 2018 RESULTS INVESTOR PRESENTATION July 25, 2018 July 25, 2018 H1 2018 RESULTS – INVESTOR PRESENTATION
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: H1 2018 Highlights
H1 2018 HIGHLIGHTS July 25, 2018 H1 2018 RESULTS – INVESTOR PRESENTATION
Slide 4: H1 2018 at a Glance
H1 2018 AT A GLANCE CONFIRMATION OF MARKET TRENDS IN IMPROVED FINANCIAL PERFORMANCE OIL & GAS Demand for OCTG continues to be strong in Revenue: €1,844m up 7.5% YoY (+17.6% at the U.S. constant exchange rates) with positive momentum on the US O&G market Higher bookings in EA and MEA regions
Slide 5: Continuing Our Way Towards Recovery
CONTINUING OUR WAY TOWARDS RECOVERY Ongoing savings and enhanced competitiveness through our Transformation Plan: Further significant cost reductions to be generated: Continuous efforts in Europe Additional savings targeted in Brazil Continuous focus on cash management: Capex and WCR dis
Slide 6: H1 2018 Financial Results
H1 2018 FINANCIAL RESULTS July 25, 2018 H1 2018 RESULTS – INVESTOR PRESENTATION 6
Slide 7: Revenue by Market
H1 2018 REVENUE BY MARKET Revenue up 7.5% vs. H1 2017 +17.6% at constant exchange rates H1 2018 revenue in millions of € Oil & Gas and as a % of revenue Industry & Other +3.5%1 (+15.2%2) +8.6%1 (+16.9%2) North America: Strong momentum Europe: Higher volumes and prices Higher prices for M
Slide 8: Efficient Implementation of the Transformation Plan
EFFICIENT IMPLEMENTATION OF THE TRANSFORMATION PLAN Transformation Plan execution on track: GROSS SAVINGS FROM TRANSFORMATION PLAN (in €m) H1 2018 gross savings of €52m 200 164 Gross savings achieved since the beginning of the 151 150 Plan: €367m 100 52 50 New competitive routes: 0 2016 2017
Slide 9: Revenue and EBITDA
H1 2018 REVENUE AND EBITDA +7.5% €1,716m 10.3% €1,844m Revenue 7.3% Positive volume and price/mix, essentially in the -10.1% US +17.6% Negative forex impact EBITDA improved +€36m YoY H1 2017 Currency Translation Volume Price/Mix H1 2018 Industrial margin up €20m VALLOUREC H1 H1 Change Hi
Slide 10: H1 2018 vs H1 2017: EBITDA to Net Income
H1 2018 VS H1 2017: EBITDA TO NET INCOME VALLOUREC H1 H1 Change Higher EBITDA In millions of euros 2018 2017 YoY EBITDA 18 (18) +€36m €57m of non-recurring “asset disposals, restructuring EBITDA as % of revenue 1.0% -1.0% +2.0pts and other”: Restructuring measures in Europe and divestiture of
Slide 11: H1 2018: Free Cash-Flow
H1 2018: FREE CASH-FLOW Vallourec H1 H1 Change Q2 In millions of euros 2018 2017 (€m) 2018 Cash-flow from operating activities (FFO) (A) (144) (160) +16 (61) Change in operating WCR (B) (236) (104) -132 (84) [+ decrease, (increase)] Gross capital expenditure (C) (38) (61) +23 (19) Free cash-flow1 (A
Slide 12: Strong Focus on Cash Management
STRONG FOCUS ON CASH MANAGEMENT 2014- H1 2018 CASH FLOW FROM STRICT CAPEX MANAGEMENT (in €m) OPERATIONS EVOLUTION (in €m) 682 388 268 175 152 (229) (144) 38 (332) (399) 2014 2015 2016 2017 H1 2018 2014 2015 2016 2017 H1 2018 EVOLUTION OF SALES & OPERATING WCR IN DAYS 1,800 162 160 180 154 1,600 122
Slide 13: Net Debt
H1 2018 NET DEBT (in millions of €) Net Debt Net Debt as at as at 31 Dec. 2017 30 June. 2018 Cash-flow from operating activities Change Asset in WCR1 Gross (1,542) disposals (144) capital expenditure & other items (236) (38) 26 (1,934) Free cash-flow = -€418m Mainly disposal of the Drilling Products
Slide 14: Debt and Liquidity
DEBT AND LIQUIDITY GROSS DEBT BREAKDOWN (in €m) Net debt as at 30 June 2018 Bank & Other Financing (ST) Gross Debt: €2,853m €319m Cash & Cash equivalents: €919m Net Debt: €1,934m Commercial Papers (ST) €337m 30 June Bonds (LT) 2018 €1,888m Liquidity as at 30 June 2018 Bank & Other Financin
Slide 15: Outlook
OUTLOOK July 25, 2018 H1 2018 RESULTS – INVESTOR PRESENTATION
Slide 16: Outlook for 2018
OUTLOOK FOR 2018 NORTH AMERICA EUROPE-AFRICA AND MIDDLE-EAST ASIA Demand for tubular products should stay strong: robust drilling O&G: Vallourec anticipates higher deliveries from H2 2018 on activity Industry: Macro-economic environment expected to stay Vallourec has realized as planned sign
Slide 17: Investor Relations Contact - Vallourec Group
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 July 25, 2018 H1 2018 RESULTS – INVESTOR P