Paolo Rocca Chairman and Chief Executive Officer Milan September 14, 2006
A key player in the global energy industry Leading global supplier of oilfield Revenues breakdown (1H 2006) equipment to the oil and gas industry Others Energy 4% 8% Leading supplier of welded pipes Welded for oil and gas…
Global operations Distribution of seamless Distribution of seamless sales production (2.9 mill tons) volume (2.9 mill tons) Last 12 months Last 12 months Middle East & Africa Far East & Oceania Europe 23% 8% 31% Europe 24%…
With worldwide presence Paolo Rocca Tenaris September 14, 2006 5
Integrated business model Focus on sales of high value products direct to end-user customer base Global industrial system producing comprehensive range of products to a single quality standard Global R&D network Global…
Leading market position World seamless OCTG production 2005 market share Others; 7% Tenaris; 19% Japan; 8% US Steel; 8% TPCO; 9% Rest of USA; 4% V&M; 13% Rest of China; 16% TMK; 11% Rest of CIS; 5% Source: Company…
Drivers Paolo Rocca Tenaris September 14, 2006 8
Demand for OCTG depends on oil and gas drilling activity Sustained growth in global demand for oil and gas Supply constraints led by accelerating depletion of mature fields, lack of discoveries of substantial new reserves and…
WTI Rig Count Evolution Paolo Rocca Tenaris September 14, 2006 10
Reserve development to be in complex operating environments Production trend towards non-conventional sources 2003 Oil & Gas production 2010 Oil & Gas production Acid Sour 0% LNG Tight Gas Arctic 6% Tight Gas Acid Sour 3% 4% 0%…
Well complexity drives demand for premium products Land Land Offsh. Shallow Water Offshore Deep Water Shallow Well Directional Deep Well Directional Deep Well Deep Well 30 50 m 9 5/8 300 m 20 800 m 18 5/8 850 m 13 5/8…
Strategy Paolo Rocca Tenaris September 14, 2006 14
Consolidating market position and investing for growth R&D expenditures Mill. of US US350 million investment program to 40 increase high-end seamless capacity 30 Customer take-up of TenarisBlue 20 connections increasing 10…
Maverick Tube acquisition A leading North American producer of welded OCTG and line pipe for use in oil and gas wells A leading global producer of coiled tubing and umbilicals Operations in United States, Canada and Colombia…
Drilling activity in USA and Canada growing But oil and gas production is declining Rig count Mill. Tonnes oil equivalent 2,200 1,200 2 2,000 1,100 40 345 1,800 1,000 50 338 900 1,600 46 52 800 1,400 264 67 45 309 700…
OCTG consumption in USA & Canada Mill. of tons 6 5 4 2.6 2.3 3 1.8 2.1 2 1.3 2.5 1 2.0 1.6 1.5 1.1 0 2001 2002 2003 2004 2005 Seamless Welded Source: Preston Pipe, Statistics Canada and Company…
Strategic rationale Complementary market position Gain substantial access to United States and leading position in North American market commensurate with our global position Product offering in North America will cover a wide…
Enhanced company profile If acquisition of Maverick completed Annual net sales to exceed US9 billion and 22,500 employees 20% market share in North America (USA and Canada) OCTG market (5 million tons in 2005) 30% of net sales in…
Driving financial performance Millions of US 2003 2004 2005 1H 2006 Net Sales 3,180 4,136 6,736 3,745 Seamless 2,376 3,273 5,124 3,078 Welded 351 348 845 245 Energy 333 418 526 284 Others 120 97 241 139 1 EBITDA 602 899 2,163 1,404…
Liquidity of shares has increased Average daily trading Free float shares by market Millions of US June 2006 240 Argentina 200 16% ADRs 57% 160 120 80 40 Italy 25% 0 2003 2004 2005 1H06 Mexico 2% New York Milan Buenos…
Summary A leading global player in the oilfield services and equipment sector Well positioned to benefit from increased drilling activity and well complexity Integrated business model and leading market position Strong…
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