Slide 1: Q4 2024 Results
Q4 2024 Results February 27, 2025
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements This presentation includes forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as “believe”, “expect”, “anticipate”, “may”, “assume”, “plan”, “intend”, “will”, “shoul
Slide 3: Agenda
Agenda Topic Speaker Slide 1 Executive Summary Philippe Guillemot, Chairman of the Board & Chief Executive Officer 4 2 Strategy & Capital Allocation Philippe Guillemot, Chairman of the Board & Chief Executive Officer 7 3 Market Environment Philippe Guillemot, Chairman of the Board & Chief Executive
Slide 4: Executive Summary
1 Executive Summary Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 5: Executive Summary: 2024 Highlights
Executive Summary: 2024 Highlights Strategic Initiatives Strong execution on key objectives • Welcomed ArcelorMittal as new 28.5% shareholder after its purchase of Apollo’s stake 1 • Divested substantial majority of Düsseldorf-Rath production site for €155m • Expanded business with announced purchas
Slide 6: Executive Summary: Results and Outlook
Executive Summary: Results and Outlook Results & Outlook Solid profitability and rapid deleveraging • Solid Q4 results underpinning faster deleveraging; Full-Year EBITDA above midpoint of outlook • Group EBITDA of €214m with EBITDA margin of 20%, increasing sequentially due to higher US and internat
Slide 7: Strategy and Capital Allocation
2 Strategy and Capital Allocation Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 8: Vallourec's Strategic Journey
Vallourec’s Strategic Journey More profitable, more resilient, more cash generative Operational and Strategic Improvements Execution of the 2022 New Vallourec Plan Brazil Tubes performance enhancement Downsized and closed activities in Europe Repositioned China towards premium markets Mine Phase 1 a
Slide 9: Vallourec's Capital Allocation Framework
Vallourec’s Capital Allocation Framework Maintain a Crisis-Proof Sustain and Expand Our Establish Our Shares as a Balance Sheet Premium Market Position High-Yielding Investment Vehicle • Retain substantial financial and • Ensure asset integrity with €100 – 125 • Distribute 80 – 100% of total cash st
Slide 10: Establishing Our Shares as a High-Yielding Investment Vehicle
Establishing Our Shares as a High-Yielding Investment Vehicle We aspire to be one of the most shareholder-friendly companies in our peer group Principles of Vallourec’s Shareholder Returns Significant Cash Flow Generation Euros per share • Returning 80 to 100% of total cash generation • Previous yea
Slide 11: Sustaining and Expanding our Premium Market Position
Sustaining and Expanding our Premium Market Position Expanding our capabilities to produce differentiated products with significant value creation potential Expanding high-torque capabilities Growing CLEANWELL® in OCTG Enhancing PLP coating offering Investing to support customer demands for Investin
Slide 12: Market Environment
3 Market Environment Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 13: Steady Recovery in US OCTG Market Prices
Steady Recovery in US OCTG Market Prices Rig count stable since mid-2024 Imports remain suppressed Spot prices continue to increase US Horizontal Rig Count Monthly OCTG Imports (Thousand Tonnes) Seamless OCTG Price ($ / Tonne) Oil Gas All Others Major Welded Importers 2,567 2,514 800 350 2,405 2,263
Slide 14: US Tariffs Likely to Impact Market Dynamics
US Tariffs Likely to Impact Market Dynamics Welded Imports Seamless Imports Key Impacts of New Policy Annual Imports (Thousand Tonnes) Annual Imports (Thousand Tonnes) • What’s changed? Austria Thailand Canada • Blanket 25% tariff for all steel Korea Taiwan Canada Other product imports, with all neg
Slide 15: Vallourec's Bookings Outperforming International Market Indicators
Vallourec’s Bookings Outperforming International Market Indicators Global activity levels remain broadly stable International market pricing remains healthy Onshore Rig Count Offshore Rig Count Seamless OCTG Price ($ / Tonne) Onshore (L Axis) Offshore (R Axis) Middle East North Sea 800 550 3,000 2,8
Slide 16: Q4 2024 Results Review
4 Q4 2024 Results Review Sascha Bibert Chief Financial Officer
Slide 17: Annual Results Analysis
Annual Results Analysis Tubes Volumes Group EBITDA and EBITDA Margin Thousand Tonnes € Million and % of Revenues 1,804 1,640 1,552 1,196 1,297 832 715 492 23% 21% 14% 15% 2021 2022 2023 2024 2021 2022 2023 2024 Net Income Net Debt Net Income, Group Share (€ Million) € Million 496 452 1,130 956 40 57
Slide 18: Key Group Figures
Key Group Figures Revenues EBITDA € Million € Million 1,276 280 1,065 (17%) 214 (24%) Q4 2023 Q4 2024 Q4 2023 Q4 2024 Adjusted Free Cash Flow Net Debt € Million € Million 265 240 (33%) 178 (€261m) (21) Q4 2023 Q4 2024 Q3 2024 Q4 2024 Please see “Definitions of Non-GAAP Financial Data” in the Appendi
Slide 19: Tubes Production and Revenue Details
Tubes Production and Revenue Details Volume Sold Average Selling Price Revenues Thousand Tonnes € / Tonne € Million 382 3,130 3,189 1,196 351 362 2,937 2,888 1,030 2,710 932 981 292 292 842 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q4 2023 Q1 2024 Q2 2024 Q3 202
Slide 20: Tubes Profitability
Tubes Profitability EBITDA and EBITDA Margin EBITDA per Tonne € Million and % of Revenues € / Tonne 249 651 (26%) (21%) 511 185 21% 19% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Please see “Definitions of Non-GAAP Financial Data” in the Appendix 20
Slide 21: Mine & Forest Performance
Mine & Forest Performance Production Sold Average Iron Ore Market Price1 Million Tonnes $ / Tonne (Quarterly Average) 1.7 129 1.3 (20%) 103 (24%) Q4 2023 Q4 2024 Q4 2023 Q4 2024 Revenues EBITDA € Million € Million and % of Revenues 101 43 (26%) 74 40 (7%) 54% 42% Q4 2023 Q4 2024 Q4 2023 Q4 2024 Plea
Slide 22: Group Net Income Analysis
Group Net Income Analysis Net Income, Group Share (Q4 2024) Net Income Evolution € Million Net Income, Group Share (€ Million) 157 159 163 105 105 111 78 76 73 67 6 29 74 (35) 29 214 163 (415) EBITDA D&A Financial Other Income tax Net income income, (loss) Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 s
Slide 23: Cash Flow Analysis
Cash Flow Analysis Q4 2024 Cash Flow Metrics Full Year 2024 Cash Flow Metrics € Million € Million 832 261 253 214 622 597 592 178 534 149 EBITDA Adj. op. Adj. FCF Total cash (Increase) EBITDA Adj. op. Adj. FCF Total cash (Increase) cash flow generation decrease cash flow generation decrease in net d
Slide 24: Debt and Liquidity
Debt and Liquidity Debt Liquidity Net Debt (€ Million) € Million 1,493 1,877 1,130 1,000 868 741 1,714 570 485 364 1,590 1,539 1,561 224 240 1,498 186 1,498 1,391 190 181 177 197 1,203 228 550 (21) 185 462 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 462 462 189 462 550 312 550 2022 2023 2024 703 462 Gross Debt (€
Slide 25: Outlook & Key Takeaways
5 Outlook & Key Takeaways Philippe Guillemot Chairman of the Board & Chief Executive Officer
Slide 26: 2025 Operational Outlook
2025 Operational Outlook First Quarter 2025 Full Year 2025 Expect international shipments to increase in H2 Sales volumes to be down sequentially due to vs. H1 due to strong recent bookings lower international shipments Tubes EBITDA per tonne to further improve in H2 vs. EBITDA per tonne to be highe
Slide 27: Key Takeaways
Key Takeaways Vallourec delivered another successful year in 2024, punctuated by 1 reaching our net debt zero target a full year ahead of plan. Vallourec will pay its first dividend in a decade with a highly 2 meaningful €1.50 payout to be proposed at the 2025 AGM. We see further margin expansion op
Slide 28: Appendices
Appendices ¥ vallourec
Slide 29: Key Performance Indicators
Key Performance Indicators Quarterly Figures Year-to-Date Figures Q4 2024 Q3 2024 Q4 2023 QoQ chg. YoY chg. FY 2024 FY 2023 YoY chg. Volume sold 362 292 382 24% (5%) 1,297 1,552 (16%) Revenues (€m) 981 842 1,196 17% (18%) 3,786 4,802 (21%) Tubes Average Selling Price (€) 2,710 2,888 3,130 (6%) (13%)
Slide 30: Tubes Revenue Breakdown
Tubes Revenue Breakdown Revenue by Region Quarterly Figures Year-to-Date Figures QoQ YoY YoY in € million Q4 2024 Q3 2024 Q4 2023 % chg. % chg. FY 2024 FY 2023 % chg. North America 403 331 548 22% (27%) 1,567 2,329 (33%) South America 132 136 230 (3%) (43%) 590 846 (30%) Middle East 183 143 212 28%
Slide 31: Income Statement
Income Statement Quarterly Figures Year-to-Date Figures € million, unless noted Q4 2024 Q3 2024 Q4 2023 QoQ chg. YoY chg. FY 2024 FY 2023 YoY chg. Revenues 1,065 894 1,276 170 (211) 4,034 5,114 (1,080) Cost of sales (769) (633) (886) (136) 117 (2,845) (3,520) 675 Industrial margin 296 262 390 34 (94
Slide 32: Balance Sheet
Balance Sheet In € million Assets 31-Dec-24 31-Dec-23 Liabilities 31-Dec-24 31-Dec-23 Equity - Group share 2,512 2,157 Net intangible assets 33 42 Non-controlling interests 89 67 Goodwill 34 40 Total equity 2,601 2,224 Net property, plant and equipment 1,842 1,980 Bank loans and other borrowings 962
Slide 33: Cash Flow Summary
Cash Flow Summary Quarterly Figures Year-to-Date Figures In € million Q4 2024 Q3 2024 Q4 2023 QoQ chg. YoY chg. FY 2024 FY 2023 YoY chg. EBITDA 214 168 280 46 (66) 832 1,196 (364) Non-cash items in EBITDA (5) (14) (1) 9 (4) (9) 2 (11) Financial cash out (36) (17) (1) (20) (35) (113) (88) (25) Tax pa
Slide 34: Financial Indebtedness and Liquidity
Financial Indebtedness and Liquidity Financial Indebtedness In € million 31-Dec-24 31-Dec-23 8.500% 5-year EUR Senior Notes due 2026 – 1,105 7.500% 8-year USD Senior Notes due 2032 771 – 1.837% PGE due 2027 176 229 ACC ACE (a) 39 94 (b) Other 117 42 Total gross financial indebtedness 1,103 1,470 Cas
Slide 35: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross
Slide 36: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets. (Increase) decrease in net
Slide 37: Definitions of Non-GAAP Financial Data and Concepts
Definitions of Non-GAAP Financial Data and Concepts Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items. Non-cash items in EBITDA includes provisions and other non-cash items in E
Slide 38: Share Information and Financial Calendar
Share Information and Financial Calendar Share Information Financial Calendar Euronext Paris • May 15, 2025: Publication of First Quarter ISIN code: FR0013506730 2025 Results Ticker: VK • May 22, 2025: Annual General Meeting • May 26, 2025: Target Ex-Dividend Date USA: American Depositary Receipt (A