Tenaris S.a. · MIL:TEN
Tenaris — Investor Presentation (October 2004)
19 slides from Tenaris's investor presentation, October 2004
Slide 1: Investor presentation
Investor presentation October, 2004
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: A key player in the global energy industry
A key player in the global energy industry Revenues by segment (2003) • Leading global supplier of seamless pipes Energy Other 4% to the oil and gas industry with manufacturing 10 % operations worldwide Welded 11 % • Leading supplier of welded pipes for South America’s oil and gas infrastructure Sea
Slide 4: Leader in OCTG sector
Leader in OCTG sector World seamless OCTG production Market cap of quoted sector 2003 market share players (1) Tenaris China 19% 5,000 22 % 5,076 Others 4,000 1% Other West Europe 3,000 3% Japan USA 2,000 8% 12 % 1,000 1,228 1,101 1,004 943 Eastern Europe & CIS V&M 21 % 13 % 0 Tenaris Maverick Vallo
Slide 5: Solid industrial platform
Solid industrial platform • Integrated, fully invested network of 3 steel mills, 12 rolling mills and 13 heat treatment facilities producing pipes in 8 countries • Annual capacity of 3.3 million tons of seamless and 850,000 tons of welded pipes • Comprehensive range of products manufactured to exact
Slide 6: Positioned to serve the growing needs of demanding markets
Positioned to serve the growing needs of demanding markets Stavanger • Aberdeen • • Moscow Rugby • • Calgary London • • • Mannheim • AlgomaTubes Paris • • • Atyrau Dalmine Silcotub • Baku Beijing • • NKKTubes • • Houston • Seoul Cairo • Tamsa • Dubai Caracas • • Tavsa • Kuala Lumpur Bogota • • Port
Slide 7: Serving four market segments
Serving four market segments • Focusing on direct sales to end-user customers • Developing industry-leading products • Redesigning the supply chain • Established roots in major energy producing countries Oilfield Pipeline Process & Power Industrial & Services Services Plant Services Automotive Servi
Slide 8: Consistently profitable operations
Consistently profitable operations 2001 2002 2003 1H03 1H04 Million US$ Net Sales 3,174 3,219 3,180 1,658 1,856 Seamless 2,496 2,244 2,376 1,203 1,472 Welded 433 580 351 216 156 Energy 113 210 333 154 197 Others 132 185 120 85 31 EBITDA (1) 644 20% 667 21% 602 19% 310 19% 358 19% Net Income (2) 136
Slide 9: Strong financial position
Strong financial position Indebtedness (Million US$) Firm Value (Million US$) US$5,776 As of June 30, 2004 Net Debt 700 Cash & Cash Equivalents (1) 408 Financial Debt (2) 1,108 Market Cap (3) 5,076 Net Debt 700 Net Debt/EBITDA (LTM) 1.1 Net Debt / Equity 37.70% Balance Sheet (Million US$) As of June
Slide 10: Prepared to take advantage of an energy-demanding world
Prepared to take advantage of an energy-demanding world • Global acquisitions and alliances • Cost-competitive industrial structure • Advanced product development • Adding value in the supply chain • Financial strength Investor presentation Tenaris October, 2004 10
Slide 11: Investor presentation Tenaris October, 2004
Investor presentation Tenaris October, 2004 11
Slide 12: Appendix
Appendix Investor presentation Tenaris October, 2004 12
Slide 13: World oil demand
World oil demand mmb/d Rig us$/bb s l 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 E 2005 E Source:EIA and Deutsche Bank Investor presentation Tenaris October, 2004 13
Slide 14: Rig counts
Rig counts Rigs Us$/bbl Rig us$/bb (1) 2,500 s l 50 RIG COUNT: IIQ03 IIQ04 45 USA: 1028 1164 2,000 40 Canada: 203 202 35 (2) Latin America: 240 290 1,500 30 25 Other Intl.: 524 547 1,000 20 TOTAL: 1996 2203 15 (1) Average Quarterly Values (2) Mexico included 500 10 5 0 0 01 01 01 01 02 02 02 02 03 0
Slide 15: E&P spending forecast
E&P spending forecast 2002 A 2003 A 2004 E (Billion US$) ∆ VS. 02 ∆ VS. 03 USA 32.0 32.9 2.8% 34.4 4.6% Canada 12.1 15.8 30.5% 15.1 -4.0% Outside USA/Canada 88.2 99.7 13% 109.9 10.2% Worldwide 132.3 148.4 6.6% 159.5 7.5% Source: Citigroup – Smith Barney . Mid-year Survey Investor presentation Tenari
Slide 16: Changing focus of the majors
Changing focus of the majors Activity in non-traditional areas forecast to rise to 42% of total in 2010 000 boe/d 30,000 25,000 20,000 Russia Caspian Heavy oil 15,000 LNG Deep water 10,000 Traditional 5,000 0 2003 2004 2005 2006 2007 2008 2009 2010 Companies ExxonMobil, BP, Shell, ChevronTexaco, Tot
Slide 17: Strategic raw material costs
Strategic raw material costs July December June July Us$/ton 2003 2003 2004 2004 Europe Scrap 141 194 207 261 Pig Iron 168 200 285 330 North America Scrap 136 172 148 197 Pig Iron 165 200 270 318 HBI 150 195 260 300 Fe Alloys FeMo 10.9 15.9 26.8 29 Source: CRU / MBR (Metal Bulletin Research) Investo
Slide 18: Recent acquisitions
Recent acquisitions Silcotub (Romania) − Enter Eastern Europe and strenghten position in European industrial and automotive market − Efficent and modern plant with cold drawing and finishing facilities − Additional 180,000 tons of seamless pipe capacity − USD42 million Posven (Venezuela) − Sourc
Slide 19: Corporate organization
Corporate organization Tenaris Manufacturing Services & Investment & Technology Procurement Companies Trading Financial AlgomaTubes Tenaris Global Tenaris Tenaris (Canada) Exiros Services Investments Connections Dalmine (Italy) Tenaris Financial Services NKKTubes (Japan) Siderca (Argentina) Silcotub