Tubacex, S.A. · BME:TUB

Tubacex — Shareholder Meeting (May 2023)

43 slides from Tubacex's shareholder meeting presentation, May 2023

1. Slide 1: Annual General Meeting

   ANNUAL GENERAL MEETING ANNUAL GENERAL MEETING May 2023

2. Slide 2: Index

   Index 1. 2022 Results 2. Outlook for 2023 3. Strategic Plan 2021-2025 4. Future Outlook 5. Stock Market

3. Slide 3: 2022 Results

   1. 2022 Results

4. Slide 4: Main Highlights

   2022 Results Main Highlights  The 2022 financial year has closed with excellent results, achieving over 700M€ sales and 92M€ EBITDA  The EBITDA margin is structurally aligned with the Group’s strategic objective (12% - 15%)  Particularly outstanding results in an inflationary environment, reflect

5. Slide 5: Main financial figures

   2022 Results Main financial figures 2021 2022 % Var. (€M) Sales 365.0 714.7 +95.8% EBITDA 17.5 92.3 426.5% EBITDA Margin 4.8% 12.9% EBIT -27.3 44.5 n.m. EBIT Margin neg. 6.2% Net Profit -32.2 20.2 n.m. Margin neg. 2.8% Dec 21 Dec 22 Var. (€M) Working Capital 222.5 230.0 +7.5 Working Capital / Sales

6. Slide 6: EBITDA recent evolution analysis

   2022 Results EBITDA recent evolution analysis 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 COVID Effect COVID Effect 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 202

7. Slide 7: 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 – Annual General Meeting 2023 7

8. Slide 8: Growth in 2022 – new locations

   2022 Results Growth in 2022 – 3 new locations TX local footprint in NTS 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 Royal Dutch Shell , Eni,

9. Slide 9: Achievements in 2022

   2022 Results Achievements in 2022  Highest order intake ever achieved: 1.8Bn€  Significant awards received from ADNOC, Aker Solutions, Petrobras, KPO, EDF Nuclear and others  Multiannual contracts and frameworks agreements signed  Record backlog at year-end, diversified and with high margin Sign

10. Slide 10: 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

11. Slide 11: Outlook for 2023

    2. Outlook for 2023

12. Slide 12: Main Highlights

    Outlook for 2023 Main Highlights  Extremely positive quarter in terms of results generated and order intake  Seventh consecutive quarter of growth, with the highest ever quarterly sales figure and EBITDA  The sales margins have been consolidated at the Strategic Plan target levels (EBITDA margin

13. Slide 13: Main financial figures

    Outlook for 2023 Main financial figures Q1 2022 Q1 2023 % Var. Q4 2022 Q1 2023 % Var. (€M) Sales 158.1 232.2 46.9% 187.7 232.2 23.8% EBITDA 19.0 30.5 60.0% 25.0 30.5 21.6% EBITDA Margin 12.0% 13.1% 13.3% 13.1% EBIT 7.4 18.7 153.6% 12.7 18.7 46.9% EBIT Margin 4.7% 8.1% 6.8% 8.1% Net Profit 3.4 10.0 1

14. Slide 14: Main Figures from the Income Statement

    Outlook for 2023 Main Figures from the Income Statement Quarterly Average EBITDA evolution (€M) Annual EBITDA evolution (€M) 30.5 24.8 25.0 23.4 92.3 COVID Effect 19.0 69.6 17.4 16.8 67.1 12.6 9.5 38.1 4.7 17.5 Q1 30.5 2023 0.1 2018* 2019* 2020* H1 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2018 2019 2020 2021 2022 2023

15. Slide 15: Backlog Evolution

    Outlook for 2023 Backlog Evolution Backlog evolution +29.4% Book-to-bill ratio 650.0 650.0 +336.2% 502.3 Q1 2023 1.01x 115.2 Total Backlog including ADNOC’s project amounts to €1,650M 01.2021 12.2021 12.2022* 03. 2023*  Record invoicing with the order intake at the same level as the 2022 year-end 

16. Slide 16: Conclusions on Q1 2023 results

    Outlook for 2023 Conclusions on Q1 2023 results  The improvement rate in terms of results has been maintained, reaching the Group’s highest ever quarterly Sales Figure and EBITDA  Working capital and debt containment in an upward earnings environment  On track to fulfill the strategic objectives

17. Slide 17: Strategic Plan 2021-2025

    3. Strategic Plan 2021-2025

18. Slide 18: We are constantly evolving

    Strategic Plan 2021-2025 We are constantly evolving Up to 2014 2014-2020 Tubacex 2021-2025 Traditional Seamless Premium Tubular Multi-energy solution Stainless-Steel Producer solutions provider  Straight seamless stainless-  New product development to  Diversification from Oil & Gas steel pipes u

19. Slide 19: Previous Strategic Plan (2014-2020) – Market repositioning

    Strategic Plan 2021-2025 Previous Strategic Plan (2014-2020) – Market repositioning  Relevant investments in industrial installations and R&D to develop new products  Integration of new companies in Asia to reposition our lower value-added products selling through our new sales channel (TSS – 12 s

20. Slide 20: Background

    Strategic Plan 2021-2025 Background  The 2014-2020 Strategic Plan allowed Tubacex an important market repositioning betting on comprehensive value added solutions  During 2020 & 2021 we focused on restructuring our Company adapting it to the new market conditions and to the current expansive cycle

21. Slide 21: Three clearly differentiated phases

    Strategic Plan 2021-2025 Three clearly differentiated phases Phase 0: 2020-2021 Phase 1: 2022-2025 Phase 2: 2024-2025 Restructuring Delivering stable Growth & & preparing results and cash Diversification generation Commercial, cost and Growing sector and Focus on reinvestment diversification efforts

22. Slide 22: Three Business lines aligned with Society's decarbonization goals

    Strategic Plan 2021-2025 Three Business lines aligned with Society’s decarbonization goals Core Tubacex Low carbon New Products solutions Businesses Supporting our customers in Offering low carbon solutions Analyzing organic and inorganic their decarbonization processes for energy generation, storag

23. Slide 23: Five strategic axes

    Strategic Plan 2021-2025 Five strategic axes 1 2 3 4 5 Sustainability Net Debt Current Diversification Competitiveness Plan Reduction Business Stability  Specific plan  Focus on cash  Reinforce our  Reduce our  Focus on our lean defined to reduce generation, Long-term exposure to oil operations

24. Slide 24: Five strategic axes – Evolution 2022-2023: Sustainability Plan

    Strategic Plan 2021-2025 Five strategic axes – Evolution 2022-2023 1  Significant developments in all respects: Sustainability • Internally: we have successfully implemented different projects to reduce our carbon Plan emissions and waste valorization • Supply Chain: we have been recognized for our

25. Slide 25: Five strategic axes – Evolution 2022-2023: Net Debt Reduction

    Strategic Plan 2021-2025 Five strategic axes – Evolution 2022-2023 2 Net Debt  Important cash generation achieved in 2022 and also expected for this year 2023 Net Debt Reduction Reduction  Reduction of net debt to ratios aligned with strategic plan objectives Main ratios Net Financial Debt (M EUR)

26. Slide 26: Five strategic axes – Evolution 2022-2023: Current Business Stability

    Strategic Plan 2021-2025 Five strategic axes – Evolution 2022-2023 3  The company has experienced significant growth in every area: Current Net Debt • Diversification: we continue developing our presence in Aerospace and H&I segments Business Reduction • Long Term Agreements: we have successfully a

27. Slide 27: Five strategic axes – Evolution 2022-2023: Diversification

    Strategic Plan 2021-2025 Five strategic axes – Evolution 2022-2023 4  Clear commitment to the aerospace market Diversification  Important growth expected in nuclear segment, where we provide essential products and services to our main customers: EDF and Westinghouse  We supply tailor-made solutio

28. Slide 28: Five strategic axes – Evolution 2022-2023: Competitiveness

    Strategic Plan 2021-2025 Five strategic axes – Evolution 2022-2023 5  Significant effort made in 2020-2021 with a reduction of more than €30 million in fixed costs  Effective rightsizing of the 22 companies in the group Competitiveness  Correct product allocation based on production plant’s compe

29. Slide 29: Our strategic goals

    Strategic Plan 2021-2025 Our strategic goals Financial Goals 2025 ESG Goals 2030 Expansive cycle of traditional CO2 Revenues 1,000-1,200M -60% business emissions EBITDA Energy 12%-15% -25% Margin intensity Growth aligned with energy Waste transition NFD / EBITDA 2-3x 95% recycled Working 30% over LT

30. Slide 30: Conclusions

    Strategic Plan 2021-2025 Conclusions  We have achieved our objectives in terms of market positioning, entry into new products and new customers  We are continuously adapting our organization in cost structure to new market conditions  Market is recovering gradually, and we have been able to sign

31. Slide 31: Face the new challenges of human progress

    Face the new challenges of human progress providing advanced industrial products and services Hacer frente a los nuevos retos para el progreso humano aportando soluciones industriales avanzadas TUBACEX – Annual General Meeting 2023 31

32. Slide 32: Future Outlook

    3. Future Outlook

33. Slide 33: Our financial strategic goals

    Future Outlook Our financial strategic goals Financial Goals 2025 FY 2022 Q1 2023 Revenues 1,000-1,200M 715M 789M1 EBITDA 12%-15% 12.9% 13.1% Margin NFD / EBITDA 2-3x 3.1x 2.8x Working 30% over 32.1% 29.1% capital sales RoNA >10%2 7.3% 9.1% Most of the goals already achieved and on the right track f

34. Slide 34: Our ESG strategic goals

    Future Outlook Our ESG strategic goals ESG Goals 2030 FY 2022 Q1 2023 CO2 -60% -57,2% -68,6% emissions Energy -25% -40% -51% intensity Waste 95% 81,3% 89,5% recycled LTIFR -75% -57,6% -52,6% Injury -75% -50,0% -25,0% severity rate Great progress towards the fulfillment of the ESG goals TUBACEX – Ann

35. Slide 35: Market Outlook

    Future Outlook Market Outlook Global Oil & Gas Upstream CAPEX Billion USD (nominal) 597 640  While upstream investment in 2022 returned 481 499 to an eight-year high and posted the largest 450 441 410 year-on-year increase in history, it will need 348 358 300 to rise Upstream investment will need t

36. Slide 36: Low Carbon Solutions

    Future Outlook Low Carbon Solutions Carbon Capture and Storage Hydrogen and Renewable Energy Fertilizers  Development of OCTG solution  Development of specific materials  Decarbonization of Fertilizer’s for injection of CO2 in CCS Storage for High Temperature and High- industry through Low Emissi

37. Slide 37: Other markets

    Future Outlook Other markets Nuclear Industrial & Precision applications Mobility  Recognition of nuclear energy as transition energy by the  High demand for high precision  Good perspectives for European Union machining components in high aeronautical and aerospace alloys sector  Reactivation o

38. Slide 38: Conclusions

    Future Outlook Conclusions  Robust results have allowed to anticipate the fulfillment of most of the financial strategic goals in 2023  Strong market perspectives enable to maintain growth for the upcoming years  Conventional markets booming leaded by Upstream of Gas and nuclear energy  Energy t

39. Slide 39: Stock market

    3. Stock market

40. Slide 40: Tubacex share

    Tubacex Share Tubacex share + 27% +33.0% Key data 2022 €/share 2.00€ (12.31.2022) 12.31.2021 Market Cap 2.00€ €257.7M (€M) 1.552€ Minimum (Jan. 13&24) 12.31.2021 2.615€ Maximum 1.502€ (June 8) 05.22.2022 % evolution +33.0% 2.54€ YTD 2023 €/share 2.54€ (05.23.2022) Market Cap €327.0M (€M) Positive pe

41. Slide 41: Analysts Coverage

    Tubacex Share Analysts Coverage Company Recommendation Target Price Norbolsa Buy 3.11 JB Capital Buy 3.60 Buy 67% Renta 4 Outperform 4.00 Santander Outperform 4.50 GVC Gaesco Buy 3.80 BPI Buy 3.60 Outperform 33% Average Target Price 3.77 Support from the sell-side with all positive recommendations T

42. Slide 42: Shareholding structure – significant shareholders

    Tubacex Share Shareholding structure – significant shareholders Significant Shareholder % ownership shareholders 32.23% Grupo Aristrain 11.00% Torre Rioja 5.00% EDM 4.97% Itzarri 3.22% Treasury stock 3.82% Treasury stock 3.82% Free Float 63.95% Total 28,02% As part of its commitment with shareholder

43. Slide 43: Thank you!

    THANK YOU! TUBACEX GROUP

Tubacex — Shareholder Meeting (May 2023) on 6ix