Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (August 2009)
13 slides from Tenaris's investor presentation, August 2009
Slide 1: Investor Presentation
Tenaris Investor Presentation
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: Agenda
Agenda • An extraordinary expansion cycle • Followed by a deep global crisis • Structural changes ahead • Our agenda Investor Presentation Tenaris August 2009 3
Slide 4: Operating and financial results over the expansion cycle
Operating and financial results over the expansion cycle Millions of US$ (except ratios and per 2004 2005 2006 2007 2008 ADS amounts) Net Sales 3,718 6,210 7,728 10,042 12,132 Tubes 3,273 5,128 6,827 8,553 10,115 Projects 280 790 454 876 1,271 Others 165 292 447 613 756 Operating income 806 1,946 2,
Slide 5: Margins per ton of our Tubes segment
Margins per ton of our Tubes segment Prices and costs per metric ton of our Tubes segment US$ per metric ton 4 ,0 0 0 3 ,0 0 0 2 ,0 0 0 1 ,0 0 0 0 1Q03 3Q03 1Q04 3Q04 1Q05 3Q05 1Q06 3Q06 1Q07 3Q07 1Q08 3Q08 1Q09 M arg in p e r to n C o s t p e r to n P ric e p e r to n P ip e L o g ix b as ke t Inve
Slide 6: Impact of crisis on energy sector
Impact of crisis on energy sector 2008 2009E World GDP variation 2.4% (1.2%) Oil demand (MMbbl/d) 86 82 WTI (US$/bbl) 100 40 US Henry Hub (US$/MMBtu) 8.9 4.0 Rigs 3,315 2,125 United States 1,871 950 Canada 369 200 International 1,075 975 Source: Tenaris estimates Investor Presentation Tenaris August
Slide 7: Reduced investment will aggravate production decline of oil…
Reduced investment will aggravate production decline of oil… Global oil decline rates with investments Super Average rates per annum World Giant All other 2003-2007 Giant Total 6.7% 3.4% 6.5% 10.4% Onshore 5.6%* 3.4% 5.6% 8.8% Offshore 8.6%* 3.4% 8.6% 11.6% Source: IEA WEO 2008. * Tenaris estimates
Slide 8: …and gas
…and gas U. S. natural gas production breakdown by vintage year 100% 18% 30% 31% 80% 39% 20% 60% 15% 15% 12% 11% 9% 8% 40% 55% 50% 45% 42% 20% 0% Dec-2008 Jun-2009 E Dec-2009 E Jun-2010 E 2006< 2007 2008 New Production Source: Tenaris / IHS • During 2009, around 30% of U.S. gas production will be pr
Slide 9: We are moving towards a less global environment
We are moving towards a less global environment Investor Presentation Tenaris August 2009 9
Slide 10: Regions show different market dynamics
Regions show different market dynamics US$ million 2006 2007 2008 1H2009 North America 1,993 2,922 4,519 1,016 South America 960 1,222 1,354 264 Europe 1,315 1,661 1,706 263 Middle East & Africa 1,896 2,058 1,810 395 Far East & Oceania 663 690 727 168 Total Tubes sales 6,827 8,553 10,115 2,106 Proje
Slide 11: Our agenda
Our agenda • Support our customers and strengthen our position in local markets • Reduce working capital and revise capital expenditure • Realign industrial system and adjust our workforce Investor Presentation Tenaris August 2009 11
Slide 12: Competitive position: looking beyond the crisis
Competitive position: looking beyond the crisis Financial position • Financial strength: low net debt, good US$ million cash flow and higher margins than 4,000 1.0 competitors 3,000 0.8 0.6 2,000 • Unique global positioning: local 0.4 1,000 presence in major markets worldwide 0.2 0 0.0 2006 2007 200
Slide 13: Investor Presentation Tenaris August 2009
Investor Presentation Tenaris August 2009 13