Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (May 2003)
21 slides from Tenaris's investor presentation, May 2003
Slide 1: Investor Presentation
Investor Presentation May 2003
Slide 2: Exchange offer and creation of Tenaris
Exchange offer and creation of Tenaris • Tenaris became a public company following an offer to exchange its shares for shares of Siderca, Tamsa and Dalmine • The transaction was the result of a long-term industrial project under which Tenaris has grown into what it is today • It consolidated Tenaris
Slide 3: Current shareholding structure
Current shareholding structure (1) The remainder of Tavsa is currently held by the Venezuelan government. (2) The remainder of NKKTubes is currently held by NKK Corporation (now part of the JFE Group). (3) The remainder of Confab is currently owned by the public. Siderca holds 99.2% of Confab’s voti
Slide 4: Share ownership at start of trading
Share ownership at start of trading Tenaris’s ownership % of Number of % of Techint Shares outstanding shares float 61.2% shares Italy 3.4% Controlling shareholder 710,747,187 61.2% ADRs in the US 178,497,470 15.4% 39.7% Argentina Mexico 30,658,016 2.6% 6.8% 17.3% Argentina 201,180,749 17.3% 44.7% M
Slide 5: TS performance in NYSE…
TS performance in NYSE… Price (US$/ADR) 25.00 US$24.31 24.00 23.00 22.00 21.00 20.00 TS started trading on December 16th in 19.00 NYSE at a price of US$16.40, as of May 9th, the ADR has increased 18.00 approximately 48% 17.00 16.00 10 ar 17 ar 24 ar 07 ar 23 ic 30 ic 6 c 13 n e 2 ne 0 ne 31 ar 2 ne
Slide 6: Trading volumes in the four markets
Trading volumes in the four markets Millions of dollars 90 TS 60 D+S+T SDT 30 TAM D 0 Jul-02 Aug 02 Sep-02 Oct-02 Nov-02 Dec 02 Jan 03 Feb-03 Mar-03 Apr 03 TS D+S+T TAM SDT D IM
Slide 7: Tenaris: a leading global OCTG player
Tenaris: a leading global OCTG player • Eight steel pipe mills strategically located around the world with a combined production capacity of 3.125 million tons of seamless and 850,000 tons of welded steel tubes Ø combined annual sales of US$3.2 billion Ø 13,800 employees worldwide 1 Oilfield Pipelin
Slide 8: Global reach with local presence
Global reach with local presence Stavanger l Aberdeen l l Moscow l Calgary AlgomaTubes Rugby ll London l Paris Dalmine l Atyrau l Baku Beijing l NKKTubes l Houston l Cairo Tamsa l Dubai Caracas l Tavsa l Kuala Lumpur l Port Harcourt Singapore l Bogota l Quito l Jakarta l Santa Cruz l Confab Siderca
Slide 9: Solid relationships with premier names in Oil & Gas sector
Solid relationships with premier names in Oil & Gas sector
Slide 10: Expansion over the last decade
Expansion over the last decade Annual production capacity (thousand tons) Seamless operations 3,125 Welded operations 250 Siderca - Argentina Siat - Argentina Tamsa - Mexico 2,615 260 Confab - Brasil Dalmine - Italy 2,500 65 65 Tavsa - Venezuela 850 NKKTubes - Japan AlgomaTubes- Canada 350 500 950 9
Slide 11: Global manufacturing profile
Global manufacturing profile Seamless operations Tenaris’s total capacity breakdown 2,3 Acquisition date1 Company Country Capacity Seamless + Welded (000 tons) Siderca Argentina 820 Argentina Jun-93 Tamsa Mexico 780 29% Feb-96 Dalmine Italy 950 Oct-98 Tavsa Venezuela 65 Venezuela 2% Aug-00 NKKTubes
Slide 12: ... with a well-balanced portfolio
. . . with a well-balanced portfolio Tenaris volume breakdown Tenaris net sales breakdown 2002 Far East & In thousand of tons 2001 2002 Oceania South 14% America Seamless Pipes Sales Volume 2,673 2,283 32% South America 490 324 Middle East and North America 438 401 Africa Europe 715 644 18% Middle E
Slide 13: Competitive strengths
Competitive strengths • Global production, commercial and distribution capabilities • Ability to provide value-added services worldwide • Ability to design and manufacture technogically advanced products • Solid and diversified customer base • Low-cost operations, primarily at state-of-the-art, stra
Slide 14: Competitive differentiation based on adding value for customers
Competitive differentiation based on adding value for customers Tubular technologies, Innovative services Ø Supply chain services: Ø Extensive use of IT: Ø Just-in-time installed column (JIC) Ø TenarisTracking Ø Advanced product development: Ø New premium joint technology Ø Deep water applications
Slide 15: Reflected in financial results
Reflected in financial results 2000 2001 2002 US$ millions % Net sales 2,361 100% 3,174 100% 3,219 100% Operating income 241 10% 442 14% 472 15% EBITDA (1) 398 17% 603 19% 648 20% Net income(2) 123 5% 136 4% 194 6% 1Q02 1Q03 US$ millions % Net sales 810 100% 790 100% Operating income 129 16% 99 13%
Slide 16: Strong balance sheet
Strong balance sheet Current debt situation (US$ million) Capitalization As of March 31, 2003 (assets of US$ 4.1 bn under IAS 1) Cash & equivalents 390 3,125 325 Financial debt 715 Net debt Net debt 325 2800 Market cap 1 Assets as of March 31, 2003
Slide 17: Revenues breakdown
Revenues breakdown US$ Millions 2001 2002 Change Seamless 2,496 2,241 (255) Welded 433 580 147 Energy 113 210 97 Flat products / Other 132 188 56 Total Tenaris 3,174 3,219 45 US$ Millions 1Q02 1Q03 Change Seamless 567 566 (1) Welded 145 99 (46) Energy 48 72 24 Flat products / Other 50 53 3 Total Ten
Slide 18: WTI - Rig Count Evolution
WTI - Rig Count Evolution 2001 - 2003 Rig Count / WTI Evolution Rigs us$/bbl 3600 36 3200 34 32 28 28 2800 28 24 24 (*) 2400 24 RIG COUNT: IQ02 IQ03 2000 20 Lat. Am: 225 217 1600 16 Other Intl.: 507 527 1200 12 Canada: 383 494 800 8 USA: 818 901 400 4 (*) Average Quarterly Values 0 0 Jul-01 Jul-02 N
Slide 19: Oil price and demand projections
Oil price and demand projections WTI Oil Demand 35 82 30 80 78 25 76 20 74 15 72 10 70 5 68 0 66 1996 1997 1998 1999 2000 2001 2002E 2003E 2004E 2005E 2006E WTI Oil Demand WTI Yearly Avg. Oil Demand: Millions of barrels per day Source: Spears & Associates
Slide 20: E&P Expenditures Forecast
E&P Expenditures Forecast Estimated 2002 - 2003 E&P Expenditures Billion us$ 2001 2002 E 2003 E ∆ VS. 01 ∆ VS. 02 US Independents 20.4 17.2 (15.5)% 17.1 (0.6)% US Majors 13.9 14.2 2.5% 14.3 0.9% US Total 34.3 31.4 (8.2)% 31.5 0.1% Canada 12.9 11.7 (9.3)% 12.4 5.7% Outside North America 76.8 85.1 10.
Slide 21: Tenaris
Tenaris