Tubacex, S.a. · BME:TUB

Tubacex — FY2022 Earnings Presentation

25 slides from Tubacex's earnings presentation, February 2023

  1. Slide 1: Tubacex reports record-breaking results in profitability, liquidity and backlog visibility

    Tubacex reports record-breaking results in terms of profitability, liquidity and visibility of its backlog Tubacex announced its best results in the last 14 years today, with an EBITDA of €92.3M. Furthermore, from the perspective of the Balance Sheet, this large improvement in results is translated

  2. Slide 2: Looking ahead to forthcoming years, visibility of the current backlog

    Looking ahead to forthcoming years, visibility and implicit value of the current backlog enables us to anticipate a structural trend of result growth and cashflow generation, determined by both the many years of underinvestment in the energy sector and the strategic positioning shift regarding produ

  3. Slide 3: Tubacex Group FY 2022 Results Release

    TUBACEX GROUP FY 2022 Results Release February 2023

  4. Slide 4: Main Highlights

    2022 Results Main Highlights  The 2022 financial year has closed with the best results in the past 14 years, whereby the final quarter of the year saw the EBITDA improve for the sixth consecutive quarter  The EBITDA margin is structurally aligned with the Group’s strategic objective (12% - 15%) -

  5. Slide 5: Main financial figures

    2022 Results Main financial figures 2021 2022 % Var. Q4 2021 Q4 2022 % Var. (€M) Sales 365.0 714.7 +95.8% 118.6 187.7 58.3% EBITDA 17.5 92.3 426.5% 12.6 25.0 99.4% EBITDA Margin 4.8% 12.9% 10.6% 13.3% EBIT -27.3 44.5 n.m. 0.3 12.7 n.m. EBIT Margin neg. 6.2% 0.2% 6.8% Net Profit -32.2 20.2 n.m. 0.2 3

  6. Slide 6: Main Figures from the Income Statement

    2022 Results Main Figures from the Income Statement Sales (€M)  Sales for the year reached €714.7M, up 95.8% on the previous year 714.7 187.7  The growth in sales reflects the increase in volume sold and an improved mix 118.6 365.0  Market recovery to pre-COVID levels  Annual EBITDA stands at €9

  7. Slide 7: Main Figures from the Income Statement: EBITDA evolution

    2022 Results Main Figures from the Income Statement Quarterly Average EBITDA evolution (€M) Annual EBITDA evolution (€M) 24,8 25,0 92.3 23,4 19,0 69.6 67.1 17,4 16,8 12,6 9,5 38.1 4,7 17.5 0,1 2018* 2019* 2020* H1 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2020 2021 2022 2021 2021 2021 2022 2022 2022 2022 *Quarter

  8. Slide 8: Main Figures from the Balance Sheet: Working Capital

    2022 Results Main Figures from the Balance Sheet: Working Capital Working Capital  The working capital amounts to €230.0M, up €7.5M on the 2021 year-end but €12.3M below the close of the third quarter 222.5 230.0  Increase of €64.8M in inventory levels due to: − Increased cost of raw materials and

  9. Slide 9: Main Figures from the Balance Sheet: Net Financial Debt

    2022 Results Main Figures from the Balance Sheet: Net Financial Debt Net Financial Debt  Reduction of Net Financial Debt by €49.1M with respect to the 2021 336.2 year-end, despite the increase in stock levels 287.1 19.2x - Cash flow generation above €100M prior to the increase in working capital of

  10. Slide 10: Revenues breakdown by sector

    2022 Results Revenues breakdown by sector  The overall tendency in order intake is extremely positive in practically all sectors and geographical areas  Very good prospects in the gas and nuclear markets thanks to their recognition as transition energies by the European Union, with a high level of

  11. Slide 11: Backlog Evolution

    2022 Results Backlog Evolution Backlog evolution +29.4% Book-to-bill ratio* 650.0 +336.2% 502.3 FY 2022 1.27x 115.2 Total Backlog including ADNOC’s project amounts to €1,650M 01.2021 12.2021 12.2022*  The backlog continues increasing, even in an environment of invoicing growth  Book-to-bill ratio

  12. Slide 12: Commercial remarks (i): Offshore

    2022 Results Commercial remarks (i)  Acceleration in the execution of OCTG projects for Petrobas in Brazil and Exxon in Guyana with General regular deliveries during the second half of the year and for coming quarters  Commissioning of new gas extraction projects in Qatar and Abu Dhabi  Significa

  13. Slide 13: Commercial remarks (ii): PowerGen

    2022 Results Commercial remarks (ii)  Increase in Opex expenditure with operators seeking plant efficiency and optimization but Industrial delays in the reactivation of new projects (Capex) due to geopolitical circumstances or the re- analysis of costs  Positive prospects for 2023, particularly in

  14. Slide 14: Commercial remarks (iii): New businesses

    2022 Results Commercial remarks (iii)  Good positioning of Tubacex in new technologies aligned with the energy transition, such as Small Modular Reactors (SMR), Carbon Capture and Storage (CCS), Hydrogen, energy storage, Energy transition Bio-refineries and Biofuels, among others, in collaboration

  15. Slide 15: Revenues breakdown by final destination

    2022 Results Revenues breakdown by final destination Europe 31%  Development of TSS Norway America 29%  Long-term contracts with umbilical manufacturers  Growing importance of the  Opportunities in the nuclear H&I segment segment in France  Record orders in the  New market: Kazakhstan aeronaut

  16. Slide 16: Main ESG KPIs

    2022 Results Main ESG KPIs *2020 and 2021 are not considered as representative years due to Covid-19 and strike in some sites 1. Group companies intensities weight by energy use 2. Group companies intensities weight by emissions GAV: Gross Added Value (€k) TUBACEX – 2022 Results 14

  17. Slide 17: Stock Information

    2022 Results Stock Information Tubacex stock evolution (€/share) Key data 2,7 2.615€ 2,6 # shares 2,5 128,978,782 2,4 outstanding 2,3 €/share 2,2 2.00€ 2.00€ (12.31.22) 2,1 2,0 1,9 Market Cap (€M) 257.7€M 1,8 1,7 1,6 % evolution YTD +33.0% 1,5 1.552€ 1,4 1,3 1.50€ Max. €2.615 (June 7th) 1,2 €1.552 (

  18. Slide 18: Conclusions

    2022 Results Conclusions  Strong growth in terms of results and cash flow generation for the 2022 financial year, exceeding initial expectations  Well positioned in the fulfillment of our strategic objectives for 2025  Strategic commitment to sustainability and the energy transition:  Ambitious

  19. Slide 19: Growth projects – Core products: Significant events (i)

    2022 Results: Significant events (i) Growth projects– Core products TX local footprint in NTS JV in Guyana OCTG repair in Brazil Kazakhstan  Guyana will be one of the largest oil  First order with KPO (joint venture  Some local repair service is required & gas production hubs in the world between

  20. Slide 20: Significant award: Significant events (ii)

    2022 Results: Significant events (ii) Significant award  On 22 June, Tubacex announced the award of its biggest ever order for a value in excess of 30,000 tonnes for the supply of comprehensive CRA OCTG solutions for gas extraction in the Middle East over the coming ten years  The order represents

  21. Slide 21: Appendix

    Appendix

  22. Slide 22: Income Statement - Detail

    Appendix 2022 Results Income Statement - Detail (€ M) FY 2021 FY 2022 change % Q4 2021 Q4 2022 change % Sales 365,0 714,7 95,8% 118,6 187,7 58,3% Change in inventories (7,0) 53,6 n.m. (7,5) 12,4 n.m. Other income 15,0 15,5 3,3% 3,6 4,0 10,9% Cost of materials (155,4) (330,5) 112,7% (39,0) (82,7) 112

  23. Slide 23: Balance Sheet - Detail

    Appendix 2022 Results Balance Sheet - Detail (€ M) 2021-12-31 31/12/2022 %change (€ M) 2021-12-31 31/12/2022 %change Intangible assets 114,1 114,4 0,2% Equity, Group Share 197,4 221,5 12,2% Tangible assets 278,1 266,8 -4,1% Minority interests 51,8 54,6 5,5% Financial assets 90,6 100,3 10,7% Equity 2

  24. Slide 24: Historical quarterly evolution: Revenues & EBITDA

    Appendix 2022 Results Historical quarterly evolution: Revenues & EBITDA Revenues (€M) 187.7 157.4 137.2 118.6 90.0 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 EBITDA (€M) 25.0 20.8 14.3 15.2% 11.7 12.6 13.3% 13.0% 10.6% 9.1% Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 % Mg EBITDA EBITDA TUBACEX – 2022 Resul

  25. Slide 25: Thank you!

    THANK YOU! TUBACEX GROUP

Tubacex — FY2022 Earnings Presentation on 6ix