Vallourec Sa · EURONEXT:VK
Vallourec Sa — Investor Presentation (June 2026)
47 slides from Vallourec Sa's investor presentation, June 2026
Slide 1: Investor Presentation
Investor Presentation June 2026
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements This presentation includes forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as “believe”, “expect”, “anticipate”, “may”, “assume”, “plan”, “intend”, “will”, “shoul
Slide 3: Investment Overview
- + Investment Overview
Slide 4: Vallourec’s Strategic Journey
Vallourec’s Strategic Journey More profitable, more resilient, more cash generative New Vallourec Plan From Good to Great Plan 2022 New Vallourec Plan Brazil performance program Global operational excellence program European asset closures Two-phase mine extension plan China premiumization Brazil ca
Slide 5: Significantly Reshaped Production Footprint
Significantly Reshaped Production Footprint Changes resulting from the New Vallourec plan and subsequent Brazil optimization Rolling Capacity (kt) North America 850 Closed ~700kt of rolling capacity South America 800 and various finishing sites East Asia 280 Reduced rolling capacity by Europe 50 ~30
Slide 6: Execution Track Record
Execution Track Record Group EBITDA Margin (%) Net Working Capital Days 30% 125 107 95 99 20% 100 83 86 10% 75 – 50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 Total Cash Generation ($m) Net C
Slide 7: Closing the Margin and Return Gap Versus Peers
Closing the Margin and Return Gap Versus Peers Progress since New Vallourec plan announcement in May 2022 Higher Tubes Margin Than Peer in Q1 Continued Outperformance on ROIC Tubes EBITDA per Tonne (Peer vs. Vallourec, $) Trailing 12 Month Return on Invested Capital1 Vallourec Peer Quarterly Trailin
Slide 8: Debt and Liquidity
Debt and Liquidity Debt Evolution Liquidity Evolution Net Cash (Debt) ($ Million)1 $ Million Net Cash (Debt) Gross (Debt) 1 950 2 033 1 942 1 946 500 1 800 1 832 1 701 251 162 195 67 233 208 205 – 196 1 283 571 595 646 632 511 645 646 (500) 202 493 (1 000) (994) 1 146 1 187 1 134 1 119 995 948 980 (
Slide 9: Vallourec’s Capital Allocation Framework
Vallourec’s Capital Allocation Framework Maintain a Crisis-Proof Sustain and Expand Our Establish Our Shares as a Balance Sheet Premium Market Position High-Yielding Investment Vehicle • Retain substantial financial and • Ensure asset integrity with €100 – 125 • Distribute 80 – 100% of total cash st
Slide 10: 2026 Shareholder Returns
2026 Shareholder Returns Delivering on our commitment to be one of the most shareholder-friendly companies in our peer group Applying Our Capital Allocation Framework Balanced Shareholder Return Structure • Significant shareholder distributions Million Euros c.€700m 800 cash • Intention confirmed to
Slide 11: Vallourec’s Foreign Exchange and Cost Exposures
Vallourec’s Foreign Exchange and Cost Exposures Foreign Exchange Exposure and Management Cost Structure Summary % of Total 2025 Costs Impacting EBITDA • Revenue is primarily invoiced in USD • North America and Tubes export business largely USD SG&A and Other • Second largest: BRL (domestic Industry
Slide 12: Midcycle Cash Flow Simulation
Midcycle Cash Flow Simulation Significant Potential Returns Metric Assumption EBITDA (€) Tubes €750m Mine & Forest €125m Holding & Other, Intersegment (€25m) Group EBITDA €850m Cash Flows (€) Capital expenditures €175m Financial cash out €50m Cash tax €175m Group total cash generation €450m Total ca
Slide 13: Operations & Market Dynamics
Operations & Market Dynamics
Slide 14: Supplier of Mission-Critical Premium Seamless Tubular Solutions
Supplier of Mission-Critical Premium Seamless Tubular Solutions Focused on High-End Seamless Tubular Solutions Highly Demanding Applications for our Products Vallourec Focus Vertical Well Commercial Airline Section Cruising Altitude Up to 10,000 meters ~10,000 meters Welded Tubes Seamless Tubes Moun
Slide 15: The Seamless Tube Production Process
The Seamless Tube Production Process Heat Raw Material Sourcing Steelmaking Rolling Treatment Threading Externally sourced & recycled process scrap OCTG Only Scrap Metal Iron Ore Pelletizing Plant Pellets Cast Iron Lumber Kiln Charcoal Blast Furnace Conversion of scrap Piercing and Heating and cooli
Slide 16: Key Seamless Tubes Markets
Key Seamless Tubes Markets Oil Country Project Line Pipe Industry New Tubular Goods (PLP) and Energies (OCTG) and Process Other 2024 Total Market Size (mt) 12.0 4.1 Not Analyzed High-Growth 2024 Served Market Size (mt) 5.7 1.0 0.4 Emerging Markets % of 2024 Vallourec Volumes ~70% ~15% <15% Automotiv
Slide 17: Limited Set of Premium Seamless Tube Suppliers
Limited Set of Premium Seamless Tube Suppliers Tier 1 Global Suppliers ~6 million tonnes annual production Suppliers Unable to Access Global Premium Market Regional Western Suppliers Asia and CIS Suppliers ~2.5 million tonnes annual production >10 million tonnes annual production Note: reflects prod
Slide 18: Major Seamless OCTG Markets
Major Seamless OCTG Markets 2024 Market Size (Million Tonnes) CIS North America 2.6 Europe 0.4 3.7 China 2.8 1.3 Africa 0.4 Asia Pacific Middle East 0.5 Ex-China 0.4 South America Dominant Connection Technology Proprietary API Sources: Internal market intelligence based on public peer commentary, Ry
Slide 19: Technology Unlocks High-Value Markets
Technology Unlocks High-Value Markets Gaining Access to Value-Added Markets Advanced Technology Drives Higher Added Value Market Price ($/tonne) • Value over Volume strategy emphasizes participation in markets where we are well-positioned due to: 8 000 • Technology 7 000 • Geography or trade 6 000 •
Slide 20: Sustaining and Expanding our Premium Market Position
Sustaining and Expanding our Premium Market Position Expanding our capabilities to produce differentiated products with significant value creation potential Expanding High-Torque Capabilities Growing CLEANWELL® in OCTG Enhancing PLP Coating Offering Investing to support customer demands for Investin
Slide 21: Enhancing Our Value Chain
Enhancing Our Value Chain Ongoing Execution of High-Return Projects 2022 2023 2024 2025 2026 Mine & Forest Mine Phase 1 Extension Mine Phase 2 Extension Brazil Steelmaking Steelmaking Reconfiguration Brazil Capability Enhancement Rolling Brazil Plug Mill Closure German Mill Closures China Premiumiza
Slide 22: Major OCTG Market Characteristics
Major OCTG Market Characteristics Region Primary Customers Commercial Demands • High volumes Large Independent • Just-in-time delivery North America Exploration & Production • Reliable domestic supply chain Companies (E&Ps) • Fit-for-purpose technology • Multi-year program support • Inventory manage
Slide 23: Tubes Revenue Mix
Tubes Revenue Mix Balanced Geographic Exposure Focused on High-Value Oil & Gas Business % of 2025 Tubes Revenues % of 2025 Tubes Revenues Other Rest of 7% World Industry 21% 9% North America 41% South America 16% Oil & Gas¹ Middle East 84% 22% 1 Includes petrochemicals 23
Slide 24: US OCTG Market
US OCTG Market Robust demand with increasing market pricing Stable Drilling Activity in Q1 OCTG Consumption per Rig Continuing to Increase US Horizontal Rig Count Annualized US OCTG Consumption (ktonnes) per Horizontal Rig Oil (L Axis) Gas (R Axis) 10 600 150 9 500 125 8 400 100 7 300 75 200 50 6 10
Slide 25: US OCTG Market
US OCTG Market Robust demand with increasing market pricing Seamless Imports Remain Low Price Increases Since February Monthly OCTG Imports (Thousand Tonnes) Seamless Market Prices ($/tonne) Seamless Welded SMLS Imports % of Total Shipments (R Axis)1 2 574 2 638 2 509 2 553 2 521 2 486 2 492 2 522 2
Slide 26: US OCTG Trade Dynamics
US OCTG Trade Dynamics Key Sources of US Supply Welded: More Commoditized Seamless: Higher Value OCTG Shipments (Million Tonnes) % of 2024 Welded OCTG Imports % of 2024 Seamless OCTG Imports 6,0 Other Austria 19% 17% 5,1 Other 5,0 4,7 34% Korea 1,1 4,3 Imported 45% Thailand Canada 1,1 Welded 13% 15%
Slide 27: International OCTG Market Snapshot
International OCTG Market Snapshot Activity stable outside the Middle East, high tendering activity offshore Middle East Offshore Activity Most Impacted Signs of Inflection in International Pricing Indexed Rig Count (2025 Average = 100) Seamless Market Price ($/tonne) Middle East Onshore Middle East
Slide 28: Middle East Markets in Context
Middle East Markets in Context ~20-25% of Tubes Revenue from the Region Market Overview and Vallourec Response 2025 Tubes Revenues by Region Rest of • Resilient activity in Saudi Arabia and UAE World 21% • Vallourec Middle East sales primarily focused on onshore applications • OCTG demand remains re
Slide 29: How We Serve Middle East Customers
How We Serve Middle East Customers Limited operational impact so far thanks to strong local footprint Saudi Arabia • Iron ore typically supplied to domestic steelmakers from India, delivered to Oman • Tubes produced in-country with heat treatment and finishing facilities • Local finished tubes inven
Slide 30: Long-Term Oil & Gas Demand Forecasts Rising
Long-Term Oil & Gas Demand Forecasts Rising Changes in policy assumptions and price forecasts drive upward revisions Upward Revisions to Oil Demand Gas Demand Plateau Extended World Oil Demand (mb/d) World Gas Demand (bcm) STEPS 2024 STEPS 2025 CPS 2025 STEPS 2024 STEPS 2025 CPS 2025 115 113 6 000 5
Slide 31: Long-Term Supply: Increasing Decline Rates
Long-Term Supply: Increasing Decline Rates Reflects higher reliance on unconventional production, changing mix of conventional production & higher base Oil: Average Annual Loss in Production Gas: Average Annual Loss in Production Million barrels per day (mb/d) Billion cubic meters (bcm) 6,0 5,7 300
Slide 32: Well Positioned for Oil & Gas Upcycle
Well Positioned for Oil & Gas Upcycle Technical expertise and industrial footprint ready to support increasing client activity United States • Field-proven high-torque OCTG Eastern Hemisphere connections supporting the needs of • Premium solutions tailored to our increasingly longer lateral wells cl
Slide 33: Vallourec New Energies: a Comprehensive Portfolio
Vallourec New Energies: a Comprehensive Portfolio Broad offering to enable 10-15% of EBITDA contribution by 2030 Complements Oil & Gas business Contributes to global warming Reduces our industrial CO2 and opens new growth channels reduction by offering solutions footprint (focus on scope 3 to decarb
Slide 34: Geothermal Spotlight
Geothermal Spotlight Accelerating demand for high-value tubular products 150x Global annual electricity demand that UP TO 64% of forecast U.S. electricity demand 1.6GW Geothermal Power Purchase could be met by technically feasible growth at hyperscale data centers that Agreements signed enhanced geo
Slide 35: Geothermal Development Concepts
Geothermal Development Concepts Mature Technology, Emerging Technologies, Growing Applications High-potential Growth Conventional Geothermal Enhanced Geothermal Systems (EGS) Advanced Geothermal Systems (AGS) FOCUS INCREASING TECHNICAL TUBULAR REQUIREMENTS AND MARKET POTENTIAL 35 – Vallourec Geother
Slide 36: Next-Gen: Solid Business Opportunities for Vallourec
Next-Gen: Solid Business Opportunities for Vallourec CONVENTIONAL ENHANCED ADVANCED Typical MW/well 10-20 5-10 0.5 – 1.5 OCTG/well (t) From 450 to 750 tonnes + Vacuum Insulated Tubing Vallourec differentiation Medium High Very high Revenue potential per MW1 Indicative margin In-line with In-line
Slide 37: Geothermal: The Key Pillar of New Energies 2030 target
Geothermal: The Key Pillar of New Energies 2030 target Vallourec Addressable Market Size From a small contribution for Vallourec in 2025… Thousand Metric Tonnes • <1% of Vallourec volumes in 2025, >2x growth in 2026 400 Up to ~50% CAGR • Accretive EBITDA (similar or > OCTG average) 350 300 …to a sig
Slide 38: Financial Data
Financial Data
Slide 39: Change of Reporting Currency
Change of Reporting Currency Vallourec changed the reporting currency of the Group’s Consolidated Financial Statements from the Euro to the US Dollar, effective January 1, 2026, to make its financial information more readable by better reflecting the performance of its activities, which are mainly c
Slide 40: Summary Income Statement
Summary Income Statement $ million, unless noted 2019* 2020* 2021* 2022* 2023* 2024* 1Q25* 2Q25* 3Q25* 4Q25* 2025* 1Q26 Revenues 4 671 3 703 4 071 5 143 5 531 4 365 1 043 983 1 068 1 209 4 303 975 Cost of sales (3 845) (3 008) (3 081) (4 010) (3 807) (3 078) (737) (663) (754) (880) (3 033) (666) Ind
Slide 41: Summary Balance Sheet
Summary Balance Sheet $ million, unless noted 2019* 2020* 2021* 2022* 2023* 2024* 1Q25* 2Q25* 3Q25* 4Q25* 2025* 1Q26 Goodw ill & intangible assets 479 91 95 82 90 69 70 81 86 80 80 78 PP&E and biological assets 3 033 2 136 2 036 2 025 2 263 1 971 2 019 2 067 2 094 2 158 2 158 2 184 Other non-current
Slide 42: Summary Cash Flow Statement
Summary Cash Flow Statement $ million, unless noted 2019* 2020* 2021* 2022* 2023* 2024* 1Q25* 2Q25* 3Q25* 4Q25* 2025* 1Q26 EBITDA 388 295 582 753 1 294 900 216 209 244 249 919 220 Non-cash items in EBITDA (25) 1 (44) (72) 2 (10) (6) (22) (8) (17) (54) 7 Financial cash out (262) (265) (270) (116) (95
Slide 43: Segment Key Performance Indicators
Segment Key Performance Indicators $ million, unless noted 2021* 2022* 2023* 2024* 1Q25* 2Q25* 3Q25* 4Q25* 2025* 1Q26 Volume sold* 1 640 1 804 1 552 1 297 314 293 303 335 1 244 272 Revenue ($m) 3 584 4 912 5 194 4 096 960 872 995 1 157 3 984 897 Tubes Average Selling Price ($) 2 185 2 722 3 346 3 15
Slide 44: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross
Slide 45: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets. (Increase) decrease in net
Slide 46: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items. Non-cash items in EBITDA includes provisions and other non-cash items in E
Slide 47: Share Information and Financial Calendar
Share Information and Financial Calendar Share Information Financial Calendar Euronext Paris • July 30, 2026: Publication of Second Quarter ISIN code: FR0013506730 2026 Results Ticker: VK Upcoming Investor Events USA: American Depositary Receipt (ADR) • July 31, 2026: TP ICAP Non-Deal Roadshow ISIN