Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (February 2018)
12 slides from Tenaris's investor presentation, February 2018
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: Industry Adapting to Lower Oil Prices
Industry Adapting to Lower Oil Prices US Shale Breakeven Costs Deepwater Breakeven Costs ($/bbl) ($/boe) 80 80 1,000 60 120 60 Range 900 Kaikias 40 40 100 800 Liza 20 20 Coral 700 80 0 0 Capex US$ Bn 600 2014 2017 2014 2017 US$/bbl 500 60 400 40 300 200 20 100 - - 1970 1972 1974 1976 1978 1980 1982
Slide 4: OCTG Demand Recovering
OCTG Demand Recovering [Mill Tn] USA & CANADA LATIN AMERICA 17.7 INTERNATIONAL CHINA & RUSSIA 14.8 13.6 8.0 11.9 6.3 9.7 5.7 4.0 1.1 2.3 0.7 0.8 0.6 3.8 0.6 2.9 2.6 2.6 2.7 4.8 4.4 4.7 5.0 4.0 2014 2015 2016 2017F 2018F Source: TS estimates. Certain figures of OCTG demand have been revised upwards,
Slide 5: Strengthening Rig Direct in North America
Strengthening Rig Direct® in North America Expanded North American footprint Grande Prairie Leduc Fort McMurray Nisku Fort Saskatchewan Bienfait AlgomaTubes Prudential BakersfieldOklahoma City Hickman Conroe Manufacturing Centers BayCity Westwego Service Centers Midland Houston Bay City Others Reyno
Slide 6: Rig Direct Global Deployment
Rig Direct® Global Deployment Integrated service solution that addresses costs, quality, operational efficiency and sustainability • USA: extensive adoption in Permian, Eagle Ford and Rig Direct® Evolution Haynesville; extending to other regions 360 Rigs Served 241 • Canada: widespread adoption faci
Slide 7: US OCTG Imports
US OCTG Imports 1,800 70% 1,600 60% 1,400 50% 1,200 Thousand Tonnes 1,000 40% 800 30% 600 20% 400 10% 200 - 0% 2014 2015 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17(f) Quarterly Quarterly Average Average Domestic Supply Other Imports Imports from Subject Countries % of imports on Total Demand Investor P
Slide 8: Well Positioned in Growth Areas
Well Positioned in Growth Areas Short term Medium term E. Mediterranean Gas Vaca Muerta Shale Offshore Recovery Mex. Energy Reform Deliveries to fast track Investments in world- New offshore projects Recent discoveries by deepwater pipeline class Vaca Muerta shale are starting to be Talos and ENI wi
Slide 9: Costs and Price evolution
Costs and Price evolution Pipe Logix Input costs 200 Iron Ore (IODEX) Scrap USA (CRU) 180 HRC USA (CRU) 583 US$/Tn 2.200 [US$/Mt ton] HRC FOB China 160 797 US$/Tn 2.000 331 US$/Tn 140 78 US$/Tn 1.800 120 1.600 100 1.400 80 1.200 60 1.000 40 Current 2015 avg 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 Ja
Slide 10: Financial Performance
Financial Performance Millions of US$ (except ratios and per ADS amounts) 2012 2013 2014 2015 2016 2017 Net Sales 10,648 10,424 10,141 6,903 4,294 5,289 EBITDA 2,856 2,780 2,696 1,219 598 943 EBITDA Adjusted* 2,856 2,780 2,696 1,396 672 978 EBITDA Adjusted margin 27% 27% 27% 20% 16% 18% Net income (
Slide 11: Closing Remarks
Closing Remarks • Market is adapting to lower oil and gas prices: North American shales will remain a key driver in coming years • Tenaris is uniquely positioned to take advantage in all regions and segments where growth is taking place • Rig Direct® is being adopted in many parts of the world as it
Slide 12: Investor Presentation Tenaris February 2018
Investor Presentation Tenaris February 2018 12