Vallourec Sa · EURONEXT:VK

Vallourec Sa — Q1 2025 Earnings Presentation

31 slides from Vallourec Sa's earnings presentation, May 15, 2025

  1. Slide 1: Q1 2025 Results

    Q1 2025 Results May 15, 2025 vv valiourec

  2. Slide 2: Legal Disclaimer

    Legal Disclaimer Forward-Looking Statements This presentation includes forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as “believe”, “expect”, “anticipate”, “may”, “assume”, “plan”, “intend”, “will”, “shoul

  3. Slide 3: Agenda

    Agenda Topic Speaker Slide 1 Executive Summary Philippe Guillemot, Chairman of the Board & Chief Executive Officer 4 2 Market Environment Philippe Guillemot, Chairman of the Board & Chief Executive Officer 6 3 Q1 2025 Results Review Sascha Bibert, Chief Financial Officer 10 4 Outlook & Key Takeaways

  4. Slide 4: Executive Summary

    1 Executive Summary Philippe Guillemot Chairman of the Board & Chief Executive Officer

  5. Slide 5: Executive Summary

    Executive Summary Results & Outlook Strong operating results and excellent cash conversion • Solid Q1 profitability enabling high cash generation; Q1 EBITDA above midpoint of outlook • Group EBITDA of €207m with EBITDA margin of 21% • Total cash generation of €104m, bringing net cash position to €11

  6. Slide 6: Market Environment

    2 Market Environment Philippe Guillemot Chairman of the Board & Chief Executive Officer

  7. Slide 7: Steady Recovery in US OCTG Market Prices

    Steady Recovery in US OCTG Market Prices Rig count stable since mid-2024 Imports reflect policy transition Spot prices have increased US Horizontal Rig Count Monthly OCTG Imports (Thousand Tonnes) Seamless OCTG Price ($ / Tonne) Oil Gas All Others Major Welded Importers 2,514 2,502 800 350 2,395 2,2

  8. Slide 8: International OCTG Market Remains Robust

    International OCTG Market Remains Robust Global activity levels remain broadly stable International market pricing remains healthy Onshore Rig Count Offshore Rig Count Seamless OCTG Price ($ / Tonne) Onshore (L Axis) Offshore (R Axis) Middle East North Sea 800 550 2,767 2,800 2,833 2,850 2,850 2,750

  9. Slide 9: Vallourec's Bookings Outperforming Market Indicators

    Vallourec’s Bookings Outperforming Market Indicators Strong booking performance in Q1 Price trend confirms Value over Volume strategy Total OCTG Bookings (Tonnes)1 Average OCTG Booking Price ($ / Tonne) Rest of World² NA Onshore Rest of World² NA Onshore Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2

  10. Slide 10: Q1 2025 Results Review

    3 Q1 2025 Results Review Sascha Bibert Chief Financial Officer

  11. Slide 11: Key Group Figures

    Key Group Figures Revenues EBITDA € Million € Million 1,065 235 990 991 214 207 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Adjusted Free Cash Flow Net Cash (Debt) € Million € Million 171 178 168 112 21 (485) Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Please see “Definitions of Non-GAAP Fin

  12. Slide 12: Tubes Production and Revenue Details

    Tubes Production and Revenue Details Volume Sold Average Selling Price Revenues Thousand Tonnes € / Tonne € Million 351 362 1,030 981 314 3,189 932 912 292 292 2,937 2,888 2,910 842 2,710 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024

  13. Slide 13: Tubes Profitability

    Tubes Profitability EBITDA and EBITDA Margin EBITDA per Tonne € Million and % of Revenues € / Tonne 220 751 210 185 599 24% 162 166 556 20% 511 528 19% 19% 18% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Please see “Definitions of Non-GAAP Financial Data” in the A

  14. Slide 14: Mine & Forest Performance

    Mine & Forest Performance Production Sold Average Iron Ore Market Price1 Million Tonnes $ / Tonne (Quarterly Average) 1.6 123 1.4 1.3 103 104 Q1 2024 Q4 2024 Q1 2025 Q1 2024 Q4 2024 Q1 2025 Revenues EBITDA € Million € Million and % of Revenues 90 53 80 74 40 30 54% 59% 38% Q1 2024 Q4 2024 Q1 2025 Q1

  15. Slide 15: Group Net Income Analysis

    Group Net Income Analysis Net Income, Group Share (Q1 2025) Net Income Evolution € Million Net Income, Group Share (€ Million) 157 159 163 105 105 111 78 76 73 86 51 6 10 17 (35) 207 44 86 (415) EBITDA D&A Financial Other Income tax Net income income, (loss) Group Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

  16. Slide 16: Cash Flow Analysis

    Cash Flow Analysis Q1 2025 Cash Flow Metrics Strong Cash Conversion € Million Adjusted Free Cash Flow / EBITDA 112% 102% 99% 95% 207 83% 81% 73% 60% 171 168 45% 39% 104 91 (29%) (87%) (464%) EBITDA Adj. op. Adj. FCF Total cash (Increase) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 cash flow generation de

  17. Slide 17: Debt and Liquidity

    Debt and Liquidity Net and Gross Debt Liquidity Net Cash (Debt) (€ Million) € Million 21 112 1,877 1,880 1,714 (485) (364) (240) 1,590 1,539 1,561 224 232 (570) 1,498 186 1,498 (868) (741) 1,391 (1,130) (1,000) 190 177 197 1,203 181 228 550 550 (1,493) 185 462 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 462 46

  18. Slide 18: Outlook & Key Takeaways

    4 Outlook & Key Takeaways Philippe Guillemot Chairman of the Board & Chief Executive Officer

  19. Slide 19: 2025 Operational Outlook

    2025 Operational Outlook Second Quarter 2025 Full Year 2025 Sales volumes to be flat Expect international shipments to increase in H2 to slightly down sequentially vs. H1 due to strong recent bookings Tubes EBITDA per tonne to be flat EBITDA per tonne to improve in H2 vs. H1 due to slightly higher s

  20. Slide 20: Key Takeaways

    Key Takeaways We delivered another robust quarter of earnings and cash generation in 1 Q1, demonstrating the strength of the New Vallourec. Solid international bookings and recent improvements in US prices 2 underpin our expectations of improving results in H2 2025. Our efficiency programs, accretiv

  21. Slide 21: Appendices

    Appendices ¥ vallourec

  22. Slide 22: Key Performance Indicators

    Key Performance Indicators Q1 2025 Q4 2024 Q1 2024 QoQ chg. YoY chg. Volume sold 314 362 292 (13%) 7% Revenues (€m) 912 981 932 (7%) (2%) Tubes Average Selling Price (€) 2,910 2,710 3,189 7% (9%) EBITDA (€m) 166 185 220 (11%) (25%) EBITDA per Tonne (€) 528 511 751 3% (30%) Capex (€m) 33 32 46 4% (28

  23. Slide 23: Tubes Revenue Breakdown

    Tubes Revenue Breakdown Revenue by Region QoQ YoY in € million Q1 2025 Q4 2024 Q1 2024 % chg. % chg. North America 385 403 450 (4%) (14%) Middle East 194 183 162 6% 20% South America 123 132 153 (6%) (19%) Asia 120 128 68 (7%) 75% Europe 36 44 51 (18%) (29%) Rest of World 55 92 48 (40%) 14% Total Tu

  24. Slide 24: Income Statement

    Income Statement € million, unless noted Q1 2025 Q4 2024 Q1 2024 QoQ chg. YoY chg. Revenues 991 1,065 990 (74) 1 Cost of sales (699) (769) (669) 70 (29) Industrial margin 292 296 321 (3) (28) (as a % of revenue) 29.5% 27.8% 32.4% 1.7 pp (2.9) pp Selling, general and administrative expenses (81) (88)

  25. Slide 25: Balance Sheet

    Balance Sheet In € million Assets 31-Mar-25 31-Dec-24 Liabilities 31-Mar-25 31-Dec-24 Equity - Group share 2,577 2,512 Net intangible assets 30 33 Non-controlling interests 94 89 Goodwill 35 34 Total equity 2,671 2,601 Net property, plant and equipment 1,802 1,842 Bank loans and other borrowings 933

  26. Slide 26: Cash Flow Summary

    Cash Flow Summary In € million Q1 2025 Q4 2024 Q1 2024 QoQ chg. YoY chg. EBITDA 207 214 235 (7) (28) Non-cash items in EBITDA (6) (5) 10 (2) (16) Financial cash out 3 (36) 5 39 (1) Tax payments (33) (24) (15) (9) (19) Adjusted operating cash flow 171 149 235 22 (64) Change in working capital 79 3 (7

  27. Slide 27: Financial Indebtedness and Liquidity

    Financial Indebtedness and Liquidity Financial Indebtedness In € million 31-Mar-25 31-Dec-24 7.500% 8-year USD Senior Notes due 2032 741 771 1.837% PGE due 2027 178 176 ACC ACE (a) 5 39 Other (b) 52 117 Total gross financial indebtedness 975 1,103 Cash and cash equivalents 1,098 1,103 Fair value of

  28. Slide 28: Definitions of Non-GAAP Financial Data and Concepts

    Definitions of Non-GAAP Financial Data and Concepts Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross

  29. Slide 29: Definitions of Non-GAAP Financial Data and Concepts

    Definitions of Non-GAAP Financial Data and Concepts Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets. (Increase) decrease in net

  30. Slide 30: Definitions of Non-GAAP Financial Data and Concepts

    Definitions of Non-GAAP Financial Data and Concepts Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items. Non-cash items in EBITDA includes provisions and other non-cash items in E

  31. Slide 31: Share Information and Financial Calendar

    Share Information and Financial Calendar Share Information Financial Calendar Euronext Paris • May 22, 2025: Annual General Meeting ISIN code: FR0013506730 • May 26, 2025: Ex-Dividend Date Ticker: VK • May 28, 2025: Dividend Payment • July 25, 2025: Publication of Second Quarter USA: American Deposi

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