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INVESTOR DAY 2005 – Tenaris Sa

Tenaris Sa · May 3, 2005 · 30 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. INVESTOR DAY 2005 – Tenaris Sa – slide 1
    Investor Day 2005 Paolo Rocca Chairman and CEO May 3, 2005
  2. INVESTOR DAY 2005 – Tenaris Sa – slide 2
    A key player in the global energy industry Leading global supplier of seamless pipes Revenues by segment (2004) to the oil and gas industry with manufacturing Other Energy operations worldwide 10% 2% Welded 8% Leading supplier…
  3. INVESTOR DAY 2005 – Tenaris Sa – slide 3
    Leader in OCTG sector World seamless OCTG production Leading consolidator in the seamless pipes 2004 market share industry Japan 9% Tenaris 18% Eastern Europe & Focusing on sales of high-end products direct CIS 20% to end-user…
  4. INVESTOR DAY 2005 – Tenaris Sa – slide 4
    Positioned to serve the needs of demanding markets worldwide Investor Day 2005 Tenaris May 3, 2005 5
  5. INVESTOR DAY 2005 – Tenaris Sa – slide 5
    Core seamless pipe business is global Distribution of production capacity Distribution of sales volume (2004) (3.3 million tons) (2.7 million tons) South America 14% South America North America 27% North America 28% 31% Far…
  6. INVESTOR DAY 2005 – Tenaris Sa – slide 6
    Growing oil demand not matched by additional supply capacity Mln b/d 90 14 85 12 80 10 75 8 70 6 65 4 60 2 55 50 - 1974 1979 1984 1989 1994 1999 2004 World oil demand Spare capacity (RHS) Source: EIA, BP…
  7. INVESTOR DAY 2005 – Tenaris Sa – slide 7
    Constraints to supply growth Point to multi-year period of higher investment in all parts of the industry Since 1985 production has exceeded the discovery of new reserves every year Decline rates for older reservoirs are…
  8. INVESTOR DAY 2005 – Tenaris Sa – slide 8
    E&P spending expected to grow In US billion 210 8% 190 R= C AG 170 % 11 150 8% 130 = 4% CAGR 110 90 70 50 2000 2001 2002 2003 2004 2005E 2006E 2007E 2008E 2009E 2010E Source: IFP / IEA Investor Day 2005…
  9. INVESTOR DAY 2005 – Tenaris Sa – slide 9
    Investments will increasingly be in difficult operating environments Production trend towards non-conventional sources 2003 Oil & Gas production 2010 Oil & Gas production Tight Gas Acid Sour 3% 0% LNG Acid Sour Arctic 6% Tight…
  10. INVESTOR DAY 2005 – Tenaris Sa – slide 10
    Responding to the needs of the industry And enhancing competitive differentiation Investing in global industrial structure to increase capacity in high value products, reduce costs and secure raw material supply Increasing…
  11. INVESTOR DAY 2005 – Tenaris Sa – slide 11
    Adding value to our sales and winning customer loyalty High-end tubes (% of total sold) Tubes with value added service (% of total sold) % % 40 30 38 36 25 34 20 32 30 15 28 26 10 24 5 22 20 0 2001 2002 2003 2004 2005E…
  12. INVESTOR DAY 2005 – Tenaris Sa – slide 12
    Setting new industry standards in premium connections Statoils Snhvit project in the Barents Sea is the first field worldwide where all casing and tubing will be dope-free TenarisBlue Dopeless is increasingly seen as the thread and…
  13. INVESTOR DAY 2005 – Tenaris Sa – slide 13
    At the forefront of industry developments Caspian (Karachaganak, Kashagan, Tengizchevroil) Gas production for LNG and regional grids (Qatar, Egypt, Nigeria, Australia) Saudi Aramco expanding production West African deepwater…
  14. INVESTOR DAY 2005 – Tenaris Sa – slide 14
    Line pipe for deepwater operations Steel catenary and top tension risers Deepwater operations projected to grow Oil production (000 b/d) 9,000 Heavy wall line pipe 8,000 7,000 Advanced welding and automated end-sizing…
  15. INVESTOR DAY 2005 – Tenaris Sa – slide 15
    Canadian oil sands Investing in AlgomaTubes, Canadas only Oil sands production projected to grow seamless pipe mill Oil production (000 b/d) 4,500 Unique package of premium connections 4,000 to meet demanding SAGD operational…
  16. INVESTOR DAY 2005 – Tenaris Sa – slide 16
    Investing to reduce costs and expand industrial structure USD60m in Matesi reduces exposure to high scrap prices and gives access to competitive Venezuelan iron ore and natural gas USD140m in Dalmine power plant will reduce energy…
  17. INVESTOR DAY 2005 – Tenaris Sa – slide 17
    Seamless pipe margins are growing US 1,800 800 Rig USD/b s bl 1,600 700 1,400 1,200 600 1,000 500 800 600 400 400 300 200 0 200 2000FY 2001FY 2002FY 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 Margin…
  18. INVESTOR DAY 2005 – Tenaris Sa – slide 18
    Operating results improving US Million 2001 2002 2003 2004 1Q 2005 Net Sales 3,174 3,219 3,180 4,136 1,453 Seamless 2,496 2,244 2,376 3,273 1,105 Welded 433 580 351 348 160 Energy 113 210 333 418 144 Others 132 185 120 97 43…
  19. INVESTOR DAY 2005 – Tenaris Sa – slide 19
    Liquidity of shares increasing Average daily trading Millions of US 30 25 20 15 10 5 0 2003 2004 1 Q 2005 New York Milan Buenos Aires Mexico Investor Day 2005 Tenaris May 3, 2005 20
  20. INVESTOR DAY 2005 – Tenaris Sa – slide 20
    Summary Global leader in a consolidated industry segment Well positioned to benefit from extended energy cycle Investing in R&D and industrial structure Operating results transformed Investor Day 2005 Tenaris May 3, 2005…
  21. INVESTOR DAY 2005 – Tenaris Sa – slide 21
    Investor Day 2005 Carlos Condorelli Chief Financial Officer May 3, 2005
  22. INVESTOR DAY 2005 – Tenaris Sa – slide 22
    Strong balance sheet Indebtedness (Million US) Firm value US 7,921 As of March 31, 2005 Net debt 649 649 Cash & Cash Equivalents 477 Financial Debt 1,126 Net Debt 649 Net Debt / Equity 22.9% Balance Sheet (Million US) Market…
  23. INVESTOR DAY 2005 – Tenaris Sa – slide 23
    Financial indicators FY 2003 FY 2004 1Q 2005 Million US % Million US % Million US % EBITDA (1) 602 19% 899 22% 458 31% Shareholders Equity 1,841 2,496 2,830 Market Capitalization (2) 3,891 5,795 7,272 Firm Value (FV) (3) 4,339…
  24. INVESTOR DAY 2005 – Tenaris Sa – slide 24
    Corporate organization Tenaris Manufacturing Services & Investment & R&D & Procurement Centres Trading Financial Technology AlgomaTubes Tenaris Global Tenaris Tenaris Exiros (Canada) Services Investments Connections…
  25. INVESTOR DAY 2005 – Tenaris Sa – slide 25
    Cost of debt FY 2003 FY 2004 1Q 2005 Million US Million US Million US Interest expenses (33.1) (46.9) (12.4) BHP 0.0 7.0 0.8 ARS NDF 0.7 3.2 3.2 Adjusted interest expenses (32.4) (36.7) (8.5) Average Total Debt (775) (1,046)…
  26. INVESTOR DAY 2005 – Tenaris Sa – slide 26
    Currency exposure management Policy is to hedge consolidated exposure to currencies other than the USD Tenaris maintains a short position in emerging markets currencies Tenaris uses forex hedges to lock in expected margin on major…
  27. INVESTOR DAY 2005 – Tenaris Sa – slide 27
    Working capital Millions of US 2003 2004 1Q 2005 Inventories (152) (411) (91) Trade receivables 4 (271) (194) Trade payables & customer advances (10) 181 85 BHP/ Fintecna 0 (117) 66 Others 50 (3) (9) Changes in Working…
  28. INVESTOR DAY 2005 – Tenaris Sa – slide 28
    Income tax position FY 2004 1Q 2005 Million US Million US Income (loss) before income tax and equity in 819.3 363.9 earnings (losses) of associated companies Fintecna (126) Income (loss) before income tax and equity in 693.2…
  29. INVESTOR DAY 2005 – Tenaris Sa – slide 29
    Reinvesting cash flow in growth and dividends Million US 600 500 400 300 200 100 0 2002 2003 2004 Acquisitions Capex Dividends Investor Day 2005 Tenaris May 3, 2005 30
  30. INVESTOR DAY 2005 – Tenaris Sa – slide 30
    Investor Day 2005 Tenaris May 3, 2005 31

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