Slide 1: Investor Presentation
Tenaris Investor Presentation
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: Two years on: review of strategic initiatives
Two years on: review of strategic initiatives • Net sales have risen 60% from $6.2 billion (2005) to $10.0 billion (2007) • Range of technology, products and services expanded – 35% global market share in premium OCTG • Global positioning strengthened – USA, Canada, Latin America and others • Now la
Slide 4: Products and services for a wider and more complex range of applications
Products and services for a wider and more complex range of applications • TenarisHydril premium connections cover full range of applications with leading technology • Combination of premium, seamless, welded and coiled tubing unique in our sector and instrumental to expansion of alliance model Blue
Slide 5: Global positioning strengthened
Global positioning strengthened • USA and Canada – 13 industrial Industrial system facilities, 4,500 employees, 18% DRI plants 2 market share, 75% of sales through Electric steel shops 4 alliances and programs Seamless rolling mills 15 Welded tube mills 32 Heat treatment lines 28 • Global industrial
Slide 6: Raw material cost environment
Raw material cost environment Correction after sharp increase in 2008 H1 (Jan 2006 = 100) 450 400 350 300 250 200 150 100 50 0 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Scrap HRC Pig iron Iron ore - pellets Tenaris November 2008 6
Slide 7: Prices are responding to the market environment
Prices are responding to the market environment Prices and costs per metric ton of our Tubes segment US$ per metric ton 4,000 3,000 2,000 1,000 0 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 Margin per ton Cost per ton Price per t
Slide 8: Regions show different market dynamics
Regions show different market dynamics US$ million 9M06 9M07 9M08 North America 1,222 2,166 3,100 South America 716 898 971 Europe 951 1,200 1,337 Middle East & Africa 1,282 1,599 1,385 Far East & Oceania 523 537 533 Total tubes sales 4,694 6,400 7,326 Projects 281 561 959 Others 292 453 608 Total s
Slide 9: Strong operating results
Strong operating results Millions of US$ 2005 2006 2007 9M08 (except ratios and per ADS amounts) Net sales 6,210 7,728 10,042 8,893 Tubes 5,128 6,827 8,553 7,326 Projects 790 454 876 959 Others 292 447 613 608 Operating income 1,946 2,792 2,957 2,469 EBITDA 1 2,158 3,046 3,449 2,872 EBITDA margin 35
Slide 10: Investing in capacity to meet the growing needs of our customers
Investing in capacity to meet the growing needs of our customers • New small diameter rolling mill in Mexico with an annual production capacity of 450,000 tons of pipes fully integrated with iron and steel making and finishing facilities • Continue with our CAPEX program throughout our global indust
Slide 11: Summary
Summary • We continue to strengthen our unique position in the industry • Our financial strength and engineering capabilities enable us to undertake a major expansion program of organic growth • Human resource base strengthened through investment in TenarisUniversity • Preparing to accompany the nex
Slide 12: Tenaris November 2008
= Tenaris Tubular Technologies. Innovative Services. Tenaris November 2008 12