Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (June 2015)
10 slides from Tenaris's investor presentation, June 2015
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 environment
Market environment Oil Prices Gas Prices [$/bbl] [$/MMbtu] 140 25 120 Spot LNG NE Asia Brent 20 100 WTI 80 15 60 10 40 WCS NBP ICE UK 5 20 HH 0 0 May-08 May-09 May-10 May-11 May-12 May-13 May-14 May-15 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 May-10 May-11 May-12 May-13 May-14 May-15 Nov-10
Slide 4: OCTG demand
OCTG demand [Mill Tn] 17.5 17.1 16.5 15.2 3.6 3.6 3.1 2.7 0.7 0.3 1.2 12.0 2.7 0.9 12.4 13.0 13.2 12.2 8.4 2011 2012 2013 2014 2015F API Semi-PRM PRM Investor presentation Tenaris June, 2015 4
Slide 5: North America – market context
North America – market context Rig count Korean OCTG imports in the US 3,000 USA 250 [Th Tn] 2,500 Canada 200 2,000 150 1,500 100 1,000 500 50 0 0 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 Jan-14 Apr-14 Jul-14 Oct-14 Jan-15 Apr-15 F 2,200 [US$/Mt ton] 3.5 [Mill Tn] USA inventory [Months] 16 Pipe log
Slide 6: Rest of the world – mixed dynamics
Rest of the world – mixed dynamics Trend Main drivers Mexico • Pemex capex reduction • Delay in energy reform Brazil • Rota 3 pipe line Argentina • Pipe line projects • Stable OCTG demand Middle East • Saudi Arabia destocking Sub-Saharan Africa • Reduced investment in deepwater projects Europe • Red
Slide 7: Sustainable financial performance
Sustainable financial performance EBITDA margin and FCF/revenues US$ Million Free Cash Flow 14% [2014 FCF/revenues %] SLB 1.800 1.600 12% 1.400 10% TS 1.200 8% 1.000 6% VK BHI 800 600 4% HAL 400 2% 200 [2014 EBITDA %] 0 0% 2010 2011 2012 2013 2014 0% 5% 10% 15% 20% 25% 30% US$ Million Net cash / (de
Slide 8: Operating and financial results
Operating and financial results M illions of US$ (except ratios and per ADS amounts) 2010 2011 2012 2013 2014 IQ 2015 Net Sales 7,712 9,972 10,834 10,597 10,338 2,254 Operating income 1,519 1,844 2,357 2,185 1,899 379 EBITDA 1,959 2,399 2,875 2,795 2,720 527 EBITDA margin 25% 24% 27% 26% 26% 23% Net
Slide 9: Preparing for the downturn
Preparing for the downturn • Financial strength: cash positive, good cash flow and higher margins than competitors • Flexible industrial system: adjusting operations and costs to fit the new environment, reducing working capital • Capex: preserving strategic investments, looking beyond the crisis •
Slide 10: Investor presentation Tenaris June, 2015
Investor presentation Tenaris June, 2015 10