Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (September 2012)
18 slides from Tenaris's investor presentation, September 2012
Slide 1: Investor Presentation
Investor Presentation Tenaris
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: OCTG demand has recovered
OCTG demand has recovered (2008 = 100) 120% 100% 80% 60% 40% 20% 0% 2008 2009 2010 2011 2012 F Premium Mix 15% 19% 18% 19% 21% Premium API • OCTG demand in 2012 is anticipated to exceed 2008 level • We expect demand for premium products to grow at a faster pace than for API products Investor present
Slide 4: Leading global player with oil and gas focus
Leading global player with oil and gas focus Sales breakdown 2011 Worldwide OCTG market US$10.0 billion Local markets Rest of China Industrial in the Americas the world and Russia & Others 14% Oil & Gas North Process America API, 59% & Power 35% 13% API, 83% API, 94% Oil & Gas Eastern PRM, 41% Hemis
Slide 5: Industry leadership
Industry leadership Global industrial system Leading innovation through Global network, direct contact and execution excellence new products development with end users and rig access Investor presentation Tenaris September, 2012 5
Slide 6: Global industrial system deployment
Global industrial system deployment Industrial re-alignment to extend product range, improve efficiency and reduce costs and environmental impact • New small diameter rolling mill in Mexico, including heat treatment and premium threading lines, in time and within budget • Industrial update in Italy,
Slide 7: New seamless pipe mill and logistics center in the USA
New seamless pipe mill and logistics center in the USA Main product: seamless OCTG Annual production capacity: 650 th tons Time frame: expected to begin operations in 2016 Estimated investment: ~US$ 1.5 billion • Shales and deepwater developments are transforming the US and global energy landscapes
Slide 8: Premium connections for shales and thermal wells
Premium connections for shales and thermal wells • TenarisHydril – for all applications supported by global threading and repair shop network, field service engineers and extensive testing and development facilities Shales Operational requirements: • Bending • High compression • Torque Wedge 563™ We
Slide 9: Tenaris W625™ specially designed for shales
Tenaris W625™ specially designed for shales • The Wedge 625™ is the first connection in the new series 600. • Providing outstanding tensile and compression efficiency, torque resistance and internal and external sealing capacity, TSH 625 is designed for use in high pressure, deep, horizontal and ext
Slide 10: Premium connections for deepwater and arctic wells
Premium connections for deepwater and arctic wells • Dopeless® connections to improve operational efficiency and reduce environmental impact of oil and gas drilling operations • Sour service and chrome grades for corrosive environments Deep water Operational requirements: • Collapse pressures • Tens
Slide 11: North America: growth concentrated on crude oil
North America: growth concentrated on crude oil US Rig Count detail* 1,941 Gas Dry 1,941 2000 1,894 2000 1,894 68 117 158 290 Dry Gas 782 Crude Oil 296 1500 809 1500 219 | 1% 696 | 42% 473 1000 1000 Crude Oil 642 | 39% Liquids Rich 267 | 16% 672 | 41% Shale Gas Non Shale 1.419 1.159 484 | 29% 500 1,
Slide 12: North America: offshore deep water activity
North America: offshore deep water activity 25 New DW well permits … 20 15 10 5 0 Sep-09 Sep-10 Sep-11 Mar-09 Jul-09 Mar-10 Jul-10 Mar-11 Jul-11 Mar-12 Jul-12 Jan-09 Nov-09 Jan-10 Nov-10 Jan-11 Nov-11 Jan-12 May-09 May-10 May-11 May-12 • Number of new deep water well permits approved is recovering •
Slide 13: Deepwater drilling: strong growth ahead
Deepwater drilling: strong growth ahead Deepwater outlook: millions of oil equivalent barrels per day Deepwater: Water depths of 2,500 feet or more 14 12 10 8 6 4 2 0 1990 1995 2000 2005 2010 2015 2020 2025 2030 North America Latin America Europe Russia/Caspian Africa Far East • Deepwater production
Slide 14: Competitive environment
Competitive environment China OCTG Exports (Mill Tn) China OCTG Exports IH 2012 2.7 Others SEA 21% 24% USA 1% Canada 1.3 4% 1.1 1.0 1.0 CIS 0.8 0.8 0.7 10% Middle East 0.6 31% North Africa 9% 1H08 2H08 1H09 2H09 1H10 2H10 1H 11 2H 11 IH 12 US & Canada Others • Trade actions have constrained Chinese
Slide 15: Operating and financial results
Operating and financial results M illions of US$ (except rat ios and per ADS amounts) 2008 2009 2010 2011 IH 2012 Net Sales 11.988 8.149 7.712 9.972 5.419 Tubes 10.010 6.671 6.676 8.481 4.706 Projects 1.271 986 429 724 328 Others 707 492 606 767 385 Operating income 3.126 1.814 1.574 1.895 1.187 EBI
Slide 16: Margin of Tubes segment
Margin of Tubes segment US$/Ton Thousand Tons 4.000 1.500 3.000 1.000 2.000 500 1.000 0 - 1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 3Q09 1Q10 3Q10 1Q11 3Q11 1Q12 Tubes volumes Cost per ton Price per ton Pipe Logix basket Investor presentation Tenaris September, 2012 16
Slide 17: Well placed in a changing and competitive world
Well placed in a changing and competitive world Net Debt evolution US$ Million 1500 • Global deployment, industrial excellence and execution capabilities 1000 • Leader in supplying solutions for the 500 growing market in complex tubular 0 applications 2008 2009 2010 2011 IH 2012 -500 • Expanding loc
Slide 18: Investor presentation Tenaris September, 2012
Investor presentation Tenaris September, 2012 18