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: Market Context
Market Context Oil price futures Note: Forward Curves refers to December of each year. Apr’16 updated to Apr 25th 2016. Investor presentation Tenaris June 2016 3
Slide 4: Downturns Compared
Downturns Compared Oil price and US rig count [US$/bbl] 150 '08-09 '14-15 120 90 60 '85-86 30 0 1980 1985 1990 1995 2000 2005 2010 2015 US Rigs - Index Base 100 120 100 80 A' 60 40 20 85-86 08-09 14-15 0 1 6 12 18 24 30 36 42 48 54 60 1-year 2-year 3-year 4-year 5-year A’: last peak before steep dro
Slide 5: Global OCTG Demand Outlook
Global OCTG Demand Outlook [Mill Tn] 17.5 17.7 16.5 6.9 8.0 7.0 11.2 3.8 8.5 1.8 9.6 10.6 9.7 7.4 6.7 2012 2013 2014 2015 2016F Others USA & Canada Source: TS estimates Investor presentation Tenaris June 2016 5
Slide 6: Strengthening Position in NAM Shales
Strengthening Position in NAM Shales Differentiating with product, service and industrial excellence Percentage of rigs served by TS in the US with rig services 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Dec-14 Jul-15 Dec-15 Mar-16 • Products (Wedge 563™, TXP® BTC, Wedge 625™, BlueCoil™, sucker rods) • R
Slide 7: North America – market context
North America – market context 3000 Canada Rig count 450 Korean OCTG imports in the US [Th Tn] USA 400 2500 350 2000 300 250 1500 200 1000 150 100 500 50 0 0 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 3.5 [Mill Tn] USA inventory [Months] 16 Pipe logix 2,200 [US$/Mt ton] 3.0 US Inventory 14 @5 mont
Slide 8: Actions on Costs
Actions on Costs 120 100 647 US$/Tn 305 US$/Tn 80 1,232 US$/Tn 60 Iron Ore (IODEX) 40 55 US$/Tn Scrap USA (CRU) HRC USA (CRU) 20 Pipe Logix 0 May-16 Apr-16 2013 avg 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 • Leveraging flexibility of global industrial system • Focus on improving industrial effic
Slide 9: Sustainable financial performance
Sustainable financial performance EBITDA* Margin Free cash flow US$ Million 40% 2,000 30% 20% 1,500 10% 0% 2012 2013 2014 2015 1Q16 1,000 -10% -20% -30% 500 -40% -50% 0 TS VK USS Tubulars SLB 2012 2013 2014 2015 1Q16 * Excluding asset impairments. US$ Million Net (debt) / cash 2,500 US$ Million Divi
Slide 10: Operating and financial results
Operating and financial results M illions of US$ (except ratios and per ADS amounts) 2011 2012 2013 2014 2015 IQ 2016 Net Sales 9,972 10,834 10,597 10,338 7,101 1,257 Operating income 1,844 2,357 2,185 1,899 195 42 EBITDA 2,399 2,875 2,795 2,720 1,255 205 EBITDA margin 24% 27% 26% 26% 18% 16% Net in
Slide 11: Summary
Summary • Oil and gas fundamentals are still there: increasing global demand and production decline will eventually stimulate a recovery in drilling led by NAM shales • Tenaris is in the right position to support the industry with product and service solutions combining cost competitiveness, leading
Slide 12: Investor presentation Tenaris June 2016
Investor presentation Tenaris June 2016 12