Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (April 2008)
17 slides from Tenaris's investor presentation, April 2008
Slide 1: Investor Presentation April 2008
Investor Presentation April 2008
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: Global industrial system serving the energy industry
Global industrial system serving the energy industry • Annual manufacturing capacity of Net Sales 2007 six million tons of steel pipes - 3.4 million tons of seamless pipes Far East & Oceania 7% South - 1.9 million tons of welded pipes America 23% - 850 K tons of welded pipes for Middle East & pipeli
Slide 4: With unmatched global footprint
With unmatched global footprint Investor Presentation Tenaris April 2008 4
Slide 5: TenarisHydril: a new world of premium connections
TenarisHydril: a new world of premium connections • Deepwater • Deep directional • Sour gas • Thermal • Arctic • Horizontal and extended reach • Drilling with casing Blue™ Wedge 523™ Investor Presentation Tenaris April 2008 5
Slide 6: Advanced deepwater line pipe technologies
Advanced deepwater line pipe technologies Steel Catenary Riser Top Tension Riser Bends Upset SCR TDZ Flowlines Investor Presentation Tenaris April 2008 6
Slide 7: Managing the supply chain from the mill to the well
Managing the supply chain from the mill to the well • String design • Inventory and pipe management • Just-in-time delivery to the rig • Accessories procurement • Tubular running assistance Investor Presentation Tenaris April 2008 7
Slide 8: Oil demand growing but limited discoveries
Oil demand growing but limited discoveries 60 50 40 30 20 10 0 1930 1940 1950 1960 1970 1980 1990 2000 Discoveries (Mb/Year) Production (Mb/Year) Source: BP Statistics and Wood Mackenzie Investor Presentation Tenaris April 2008 8
Slide 9: Natural decline rates and access complicate efforts to meet demand
Natural decline rates and access complicate efforts to meet demand World oil Access to world’s demand and production proven oil reserves Oil reserves held by 120 new Russian 2015 companies 6% 2007 100 Mill 100 NOC oil reserves with 85 Mill equity access 11% 80 New Million bbl/d investments Reserves
Slide 10: Drilling activity
Drilling activity 2007 rigs by area Year 2004 = 100 2004 2005 2006 2007 Rig count USA 100 116 138 149 Canada % Change 16% 19% 7% 11% Canada 100 124 127 93 % Change 24% 3% (27%) International 100 109 111 120 USA % Change 9% 2% 9% International 57% 32% Total 100 115 127 130 % Change 15% 11% 2% Onshore
Slide 11: Global OCTG market
Global OCTG market 2007 OCTG apparent demand Year 2004 = 100 2004 2005 2006 2007 OCTG market International USA Operative consumption 100 113 125 136 61% 33% % Change 13% 10% 8% Apparent demand 100 117 134 130 % Change 17% 14% (3%) Canada 6% Source: Company data Investor Presentation Tenaris April 20
Slide 12: Operating results
Operating results Millions of US$ 2004 2005 2006 2007 (except ratios and per ADS amounts) Net sales 3,718 6,210 7,728 10,042 Tubes 3,273 5,128 6,827 8,553 Projects 280 790 454 876 Others 165 292 447 613 Operating income 806 1,946 2,792 2,957 EBITDA 1 887 2,158 3,046 3,449 EBITDA margin 24% 35% 39% 3
Slide 13: China and the competitive environment
China and the competitive environment World and Chinese Chinese increase in seamless pipe production seamless capacity (Mton) (Mton) 35 3.0 32 2.6 27 24 20 1.5 1.1 2003 2004 2005 2006 2007 E 2006 2007 2008 F 2009 F China production non exported China exports RoW production Investor Presentation Tena
Slide 14: Evolution of industry costs
Evolution of industry costs Raw materials FX rates (2006=100) (2006=100) 200 120 150 110 100 100 50 90 2006 2007 2008 F 2006 2007 2008 YTD Scrap Pig Iron Iron Ore Coking coal USD / EUR USD / Yen USD / Yuan Note: FX rate for 2008 is YTD average Source: CRU and company data Investor Presentation Tenar
Slide 15: Expansion of offshore drilling fleet
Expansion of offshore drilling fleet Rigs by region 134 new rigs are scheduled to be (January 2008) delivered between 2008 and 2010 RoW new-build scheduled delivery 20% USA 60 27% 50 4 13 Brazil 40 6 4% 30 20 Mexico 7% 20 32 13 10 7 28 West Africa North Sea 11 7% 15% 0 2008 2009 2010 Far East Jackup
Slide 16: Tenaris: unique global positioning
Tenaris: unique global positioning Safety and environmental indicators • Product and service differentiation 12 Accidents per million man hour 10.6 10 8.3 • Industrial presence in key markets 8 6.9 6.1 6 5.6 4 • Global industrial and commercial 2 system 0 2003 2004 2005 2006 2007 Tenaris CO2 Specifi
Slide 17: Investor Presentation Tenaris April 2008
Investor Presentation Tenaris April 2008 17