Tubacex, S.A. · BME:TUB
Tubacex — Investor Presentation (November 2019)
37 slides from Tubacex's investor presentation, November 2019
Slide 1: Corporate Presentation 2019
CORPORATE PRESENTATION 2019
Slide 2: Index
Index 1. Tubacex Group 2. Recent Evolution 3. Outlook & Results 4. Strategic Plan
Slide 3: Tubacex Group
Tubacex Group 4 Ss ; oar i 1 = Avaaw® GROUP ~
Slide 4: Starting Point
TUBACEX Group Starting Point Worldwide presence. With our own production plants, a global distribution network and a worldwide sales presence, Competitiveness. Management excellence with the involvement of everybody. Full Service Supplier. Cooperation with our customers to develop tailor made soluti
Slide 5: A fully integrated supplier
TUBACEX Group A fully integrated supplier Pipes & tubes Commercial Steel billets & bars Extrusion Cold finishing fittings Master network distribution TUBACEX is the largest Seamless Stainless Steel Manufacturer Corporate Presentation 2019 5
Slide 6: Geographical Presence
TUBACEX Group Geographical Presence KEY FACTS • Sales: 677,3 million euros • 2500 professionals • Full Range of Seamless Stainless tubular Products • 15 mills in Spain, USA, Austria, Italy, India, Thailand, Norway, UAE & Dubai • Commercial presence in over 30 countries • An own global master distrib
Slide 7: Business Strategy: Market Growth
TUBACEX Group Business Strategy Traditional Products Higher Added Value Products + Off- shore Umbilicals Market Growth SC OCTG Boilers Urea Precision High Alloys Furnaces Std Heat Downstream Exchangers linepipe Nuclear Std Bar - Boilers - Profitability + Focus on customer service and Continue our te
Slide 8: Product positioning
TUBACEX Group Product positioning Offshore Furnaces, #1 25% (Topside & Subsea) #1 heaters and 27% re-heaters #2 Umbilicals #1 Standard 15% 20% pipes & tubes #2 20% CRA OCTG #3 Precision 14% tubing #2 Power Gen #2 30% 22% Hollow bar 9 Corporate Presentation 2019 8
Slide 9: Tubacex Service Solutions Strategy
TUBACEX Group Tubacex Service Solutions Strategy Price management Working capital reduction Just in time deliveries Package supply Global leadership in the distribution market through TSS Corporate Presentation 2019 9
Slide 10: Other key matters
TUBACEX Group Other key matters Relationship with Investors Shareholder Structure Stable core of shareholders committed to the long-term project JM Aristrain 11,0% AZValor 6,2% One new significant shareholder in 2018: Santalucía EDM 5,1% Ecofin 4,9% 100% of analysts with active Itzarri 3,2% coverage
Slide 11: Recent Evolution
Recent Evolution TUBACEX
Slide 12: Evaluation of 2018
Recent Evolution Evaluation of 2018 The expected recovery has not taken place: Fourth consecutive year of the most serious crisis in the Oil&Gas sector Market Dramatic reduction of the Capex in the industry, causing an unprecedented fall in the volume produced and intense price competition Imp
Slide 13: Evolution of Revenues
Recent Evolution Evolution of Revenues The dramatic fall in Upstream Capex has affected Tubacex’s revenues However, the Good positioning in premium products has allowed the Group to increase revenues in 2018 Global Spending in Upstream Tubacex’s Revenues +38% 800 687(1) 700 -40% ≈-40% 600 US$ Bn
Slide 14: 2018 Highlights
Recent Evolution 2018 Highlights Leadership in the supply of OCTG projects with full service: Tubacex Upstream Commercial Technologies invoiced more tan €200M Supplying boiler tubes for the first Ultra-Super-Critical project in India Record year in the delivery of umbilical tubes New plant i
Slide 15: 2018 – 2019 Highlights
Recent Evolution 2018 – 2019 Highlights Mou Egypt Joint Venture with Midhani Alliance with SENAAT Indian company specialized in Abu Dhabi’s state-owned the manufacture of special industrial development group Signing of a Letter of Intent with the Egyptian Government steels Alliance to undert
Slide 16: Main financials
Recent Evolution Main financials €M 2018 2017 % Var. Revenues 677.3 490.4 38.1% EBITDA 69.6 25.91 168.2% EBITDA Margin 10.3% 5.3% EBIT 34.5 (28.3)1 n.m. EBIT Margin 5.1% neg. Net Attributable Profit 17.4 (19.7)2 n.m. Net Margin 2.6% neg. Working Capital 222.2 193.0 +29.2 Working capital / Sales 32.8
Slide 17: Main figures evolution
Recent Evolution Main figures evolution Revenues (€M) EBITDA (€M) EBIT (€M) 64 70 44 49 35 12% 9% 35 26 16 677 20 2 -28 (1) 547 533 494 490 10% 7% 5% 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 -30 2014 2015 2016 2017 2018 EBITDA Margen Excluding extraordinary adjustments Excluding extraordina
Slide 18: Sales breakdown by sector (2018)
Recent Evolution Sales breakdown by sector (2018)* Mid & E&P Gas Downstr. – Global trend towards – Sector’s performance sustainability and CO2 stable 41% – reduction High weight of OCTG and 30% – Strategy focused on selling integral tubular solutions umbilical tubes – Significant tenders to be award
Slide 19: Revenues Breakdown by Geography (2018)
Recent Evolution Revenues Breakdown by Geography (2018) Europe Asia 47% 28% USA & Canada 60% 44% 9% 10% Revenues by final destination Revenues by client’s country Asia remains the biggest market for the Group Corporate Presentation 2019 19
Slide 20: Outlook & Results
3 Outlook & Results
Slide 21: Positive macroeconomic indicators
Outlook & Results Positive macroeconomic indicators After the drop of 44% in Upstream capex between 2014 and 2016, an annual growth of 6% is forecasted for the coming years Demand growth will be robust for CRA grades mainly driven by gas extraction in environments with high component of CO2 y HS
Slide 22: Positive macroeconomic indicators
Outlook & Results Positive macroeconomic indicators Number of offshore projects by commitment year 120 128 114 92 94 92 Fixed 78 56 62 46 Floater Subsea Tie 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Back Offshore greenfield capex by commitment year ($Bn) 212 174 163 Fixed 156 156 79 94 Float
Slide 23: Positive macroeconomic indicators
Outlook & Results Positive macroeconomic indicators Upstream capex to be sanctioned in 2019 & 2020 Middle East Qatar UAE Africa Mozambique Nigeria Latin America Brazil Guyana Asia North America USA Europe UK Norway Australia Russia Source: Rystad Energy; Tubacex Middle East is the highest growth exp
Slide 24: New Perimeter set up during Crisis
Outlook & Results New Perimeter set up during Crisis New perimeter investing in 9 productive mills with potential revenues of approx. €300M Corporate Presentation 2019 24
Slide 25: Strategic Positioning
Outlook & Results Strategic Positioning Complete offer of Industrial Diversification high value added Positioning solutions Bundled offer of different Correct product Commitment to new types of pipes, tubes, allocation of each product technologies and products fittings, etc. focused on to be p
Slide 26: Strengthening our Management Strategy
Outlook & Results Strengthening our Management Strategy To settle management strategy oriented Operational to operational excellence Excellence Flow optimization Lean manufacturing technologies Industry 4.0 – Big data Process Automation. Robotization Digitalization Use of sensorization i
Slide 27: Commited to Innovation
Outlook & Results Commited to Innovation Goal: Transforming the most demanding needs into customized solutions of high technological value developed in co-creation with customers Effort in R&D+i Hours devoted to R&D x2 2012 2013 2014 2015 2016 2017 2018 2015 2016 2017 2018 New products, services and
Slide 28: 2019 Outlook
Outlook & Results 2019 Outlook 2019 to be a year of transition, with a lot of projects getting the green light and anticipating a strong expansion for 2020 and 2021 Vey similar to 2018 in terms of financials, but optimistic regarding the level of placed orders, which could be record-breaking S
Slide 29: Main financials 9M 2019
Outlook & Results Main financials 9M 2019 9M 2018 % Var. Q3 2019 Q3 2018 % Var. Mill.€ Revenues 476.3 519.9 -8.4% 152.8 159.3 -4.1% EBITDA 46.2 55.3 -16.4% 13.0 19.7 -34.3% EBITDA margin 9.7% 10.6% 8.5% 12.4% EBIT 17.8 28.4 -37.2% 4.5 12.1 -62.5% EBIT margin 3.7% 5.5% 3.0% 7.6% Net Attributable Prof
Slide 30: Revenues and EBITDA evolution
Outlook & Results Revenues and EBITDA evolution Revenues 210 192 180 180 168 160 159 157 153 140 147 143 140 143 150 136 131 129 123 121 128 112 119 120 120 105 110 90 60 30 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016
Slide 31: Strategic Plan
Strategic Plan TUBACEX GROUP
Slide 32: Phases in our Strategic Plan
Strategic Plan Phases in our Strategic Plan Starting Strategic Improvement Oil&Gas Crisis Recovery point Target FY 2012 2013-2014 2015-2017 2018 - 2019 2020 - 2021 Product Mix (% 36.2% Premium 60% Premium 70% Premium 27% 70% Premium premium over sales) Products Products Products Sales n.a. +15% -30%
Slide 33: Strategic Objectives 2022: Global supplier of tubular solutions
Strategic Plan Strategic Objectives 2022 Continue positioning TUBACEX as global supplier of tubular 1 solutions Value Premium Product New Products Chain Margin OEM +83% x2,3 EPC 73% Fabricators 2018 47% 40% Pack. Compilers 20% Distribut. 2012 Product 2012 2018 2012 2018 type D C B A % in euros of Pr
Slide 34: Strategic Objectives 2022: Reduction of volatility
Strategic Plan Strategic Objectives 2022 2 Reduction of the volatility diversifying risks Market Sector Geographic Diversification Increase in non-oil Product Raw Materials Correct Product Allocation sales Current Future End Other 3% Other 5% market Mid & Downstream E&P Gas Industrial
Slide 35: Strategic Objectives 2022: Build the company where people want to work
Strategic Plan Strategic Objectives 2022 Build the company where people want to work at 3 In 2013: In 2018: Global company Spain 62% Spain 46% Rest of Europe 31% Rest of Europe 36% Asia 0% Asia 13% America 7% America 5% Key people Since 2013 more than 30 high level professional
Slide 36: Strategic Objectives 2022: Sustainable and profitable growth
Strategic Plan Strategic Objectives 2022 Sustainable and profitable growth that takes us to attractive 4 financial ratios for the financial markets Organic growth Internal Projects Commercial positioning TSS- full development of global Revenues: 1,000M€ logistics Fully assembled tubular syst
Slide 37: Thank You!
THANK YOU! TUBACEX GROUP