Tubacex, S.A. · BME:TUB
Tubacex — Investor Presentation (October 2006)
22 slides from Tubacex's investor presentation, October 2006
Slide 1: Tubacex Group
TUBACEX GROUP Madrid, 250th October 2006 0
Slide 2: Index
Index 1. Our sector: The Seamless Stainless Steel Tubes (SSST) 2. The Tubacex Group 3. Main strategic lines 4. Tubacex in figures 1 1
Slide 3: 1. Our Sector: The Seamless Stainless Steel Tubes (SSST)
1. Our Sector: The Seamless Stainless Steel Tubes (SSST) 2 2
Slide 4: Steel Tube Market size
1. Our sector: The Seamless Stainless Steel Tubes Market size Crude Stainless ThyssenKrupp Mittal Steel Outokumpu Arcelor Steel Nippon Steel Acerinox 1.132 POSCO 24 POSCO TISCO ….. ….. Welded Seamless Seamless (Carbon & Stainless) (Carbon) (Stainless) TMK Tenaris 0,3 Tube 72 Baosteel Mittal Steel 26
Slide 5: Sector characteristics
1. Our sector: The Seamless Stainless Steel Tubes Characteristics Annual growth between 5-7% during the previous years (trend to increase). High level of consolidation: Few major key players. Strong entrance barriers: CAPEX and know-how. More competence coming from “New Comers” in commodity products
Slide 6: Competitors
1. Our sector: The Seamless Stainless Steel Tubes Competitors Eastern Europe Nikopol Central Europe TMK Sandvik NAFTA TTI (Tx Group) Korea SBER (Tx Group) Changwon SALEM (Tx Group) DMV Stainless DMV Stainless India China ………… Choksi (Sand) Japan Pexco (Sand-Sum) Walsin Sumitomo Ratnamani Juli Kobe …
Slide 7: Production vs. Demand
1. Our sector: The Seamless Stainless Steel Tubes Production vs. Demand Central Production Consumption Europe Central 50% Europe Asia 40% 40% 35% Asia 30% 30% 25% 20% Eastern 20% USA/Canada Europe Eastern 15% 10% USA/Canada Europe 10% Others 0% 5% 0% Central Europe Asia Eastern Europe USA/Canada Cen
Slide 8: Raw materials
1. Our sector: The Seamless Stainless Steel Tubes Raw materials Nickel Molibdenum 25.000 90.000 21.291 80.000 78.338 20.000 70.000 14.744 60.000 15.000 57.699 13.331 13.830 50.000 43.289 10.000 40.000 8.872 8.230 9.633 8.129 7.505 8.642 7.041 30.000 6.336 6.929 6.771 6.015 5.000 5.267 5.958 20.000 4
Slide 9: Final demand sectors
1. Our sector: The Seamless Stainless Steel Tubes Final demand sectors Linked to the investment cycle in the petrochemical, oil, gas and energy industries. More of a supplier for these industries than a steel player. Carbon Stainless High Alloys Diverse Industrial processes Welded Construction Tube
Slide 10: 2. The Tubacex Group
2. The Tubacex Group 9 9
Slide 11: Vertically integrated Group
2. The Tubacex Group Vertically integrated Group Raw materials: I Nickel N Acerálava T Stainless scrap Molibdenum (Steel mill) E Ferrochromiun R Others N M A TTI C T A Hot & O I R SBER Extrusion T O K U N E A TTI B L T & Cold E N SBER Rolling S E T - W M O SALEM Cold I R Stretching S K 10 10
Slide 12: Sales breakdown
2. The Tubacex Group Sales breakdown By geographical area (*) By sector Asia Others Mechanical USA/Canada 9% 8% 11% 22% Energy Others 23% 1% Chemical & Petrochemical Europe 60% 66% Source: Tubacex Geographical and industrial higher forecasted growth segments exposure. (*) Contribution in euros to th
Slide 13: 3. Main strategic lines
3. Main strategic lines 12 12
Slide 14: Global presence
3. Main strategic lines Global presence Leadership in the worldwide project market: flexibility, cost leadership, timing and adaptation of our portfolio to the client´s necessities. Consolidated position with the main European distributors. Opening of commercial offices in Shanghai and Sao Paulo. Gr
Slide 15: Growth
3. Main strategic lines Growth Organic Growth: Production 2007 • Cold finishing enhancement in Austria and Spain. • Technological improvements in the extrusion press. • Constant search for new technologies in order to improve the current mix of products. Inorganic Growth: • The financial structure a
Slide 16: Commercial strategy
3. Main strategic lines Commercial strategy Increase in the order backlog: • Very good development of the project market (Investment Cycle). • Good shape in the distribution market. Improvement in base prices with a major impact in 2007. Improvement of the product range with new high-valued products
Slide 17: Balance and profit and loss account
3. Main strategic lines Balance and profit and loss account Financial structure: • Constant reduction of the long term debt. • Increase in the short term debt due to the increase in the prices of our main raw materials. Strongly amortised asset base (80%). The average pay-out ratio amounted to 45% i
Slide 18: Corporate Governance leadership
3. Main strategic lines Corporate Governance leadership Removed the voting rights limitations inside our By-laws in the 25th of May AGM. “First in line” Spanish midcap company in Corporate Governance and Social Responsibility policies & best practices. Three established Codes: Internal Behaviour, Bo
Slide 19: 4. Tubacex in figures
4. Tubacex in figures 18 18
Slide 20: Main figures
4. Tubacex in figures Main figures The EBIT and Net Profit evolution during the three previous years and the forecasted figures for 2006 are the following: 45 40 35 30 25 20 15 10 5 0 2003 2004 2005 F2006 .......................... F2010 EBIT Net Profit Note: Figures in million euros 19 19
Slide 21: Share development
4. Tubacex in figures Share development Market Capitalization: • 1992: 12 million euros. • 2005: 476 million euros. • 20th October 2006: 584 million euros. Stock market: • During 2005 Tubacex rose in value by 89.4% whereas the IBEX-35 increased its price by 18.2%. • During 2006, until the 20th of Oc
Slide 22: Tubacex Group
TUBACEX GROUP Madrid, 2521th October 2006 21