Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (November 2018)
13 slides from Tenaris's investor presentation, November 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: Global Leader in Steel Pipes for the Energy Industry
Global Leader in Steel Pipes for the Energy Industry • Manufacturing facilities in 18 countries 9M 2018 Sales by Region • Annual manufacturing capacity of (US$5.6 Bn) 6.9 million tons of steel pipes • 4 Electric steel shops, 13 Seamless rolling mills, 25 Welded tube mills, 53 Heat treatment lines, a
Slide 4: Global OCTG Demand Recovering
Global OCTG Demand Recovering [Mill Tn] USA & CANADA 17,6 LATIN AMER ICA INTERNATIONA L 15,0 CHINA & R USSIA 13,7 8,0 11,8 5,9 5,8 4,0 9,6 1,1 0,7 2,3 0,8 0,5 3,8 0,6 3,0 2,6 2,5 2,7 4,8 4,8 5,5 4,4 3,9 2014 2015 2016 2017 2018F Investor Presentation Tenaris November 2018 4
Slide 5: Worldwide Operations
Worldwide Operations Investor Presentation Tenaris November 2018 5
Slide 6: Differentiated Products
Differentiated Products Full range of high quality products (seamless and welded pipes, premium connections, large OD OCTG and connectors, line pipe, mechanical pipe, accessories, sucker rods and coiled tubing for use in all types of oil and gas drilling, well completion and transportation activitie
Slide 7: Innovative Services. Rig Direct®
Innovative Services. Rig Direct® Integrated solution that addresses costs, quality, operational efficiency and sustainability • Active in 30 countries around the world Rig Direct® OCTG Shipments • 40 service and distribution facilities 57% • 20+ years of experience in Rig Direct® 50% • USA: extensiv
Slide 8: International Positioning
International Positioning Middle East LNG Projects Offshore Recovery Latin America Tenaris maintains strong Growing global demand Competitive offshore Energy reform/opening position as a supplier to for gas is creating the projects (eg Liza) are in Mexico and Brazil, and the major Middle East condit
Slide 9: US Regional Focus
US Regional Focus Tenaris’s presence in the US aligned with major oil and gas basins • State of the art manufacturing center • Shorter, more efficient and flexible Bakken & supply chain Rockies • Lead time & Pittsburgh inventory reduction California & Denver Alaska Eastern Mid-Continent • Product de
Slide 10: US OCTG Market Dynamics
US OCTG Market Dynamics Mi l l tons 8 60% 7 50% 6 40% 5 4 30% 3 20% 2 10% 1 0 0% 2014 2015 2016 2017 9M 2018 Domestic Imports % Domestic supply • Ramping up Bay City to support domestic production. • Restart of Conroe provides additional finishing capacity for Bay City production. • Increasing produ
Slide 11: Financials Support the Upcycle
Financials Support the Upcycle USD million EBITDA % USD million Cash Flows 3.000 3.000 30% 2.500 2.500 25% 2.000 2.000 20% 1.500 1.500 15% 1.000 500 1.000 10% 0 500 5% 2014 2015 2016 2017 9M 2018 ‐500 ‐ 0% ‐1.000 2014 2015 2016 2017 9M 2018 ‐1.500 EBITDA % EBITDA margin OCF Capex FCF USD million WK
Slide 12: Closing Remarks
Closing Remarks • Oil and gas drilling recovery gradually spreading to most regions: North American shales will remain a key driver in coming years • Tenaris is increasing US production at Bay City and its other US mills and is strongly positioned to take advantage in all regions and segments where
Slide 13: Investor Presentation Tenaris November 2018
Investor Presentation Tenaris November 2018 13