Disclaimer Tenaris January 2008

Transcription

1 January 2008

2 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 those statements. These statements include information regarding management strategy, investment plans, development and growth of the seamless steel pipe and oil and gas industries, trends and other prospective data, including trends regarding the development of raw material costs and the levels of investment in oil and gas drilling worldwide and general economic conditions in the countries where Tenaris operates and sells its products and services. We do not undertake to update any forwardlooking statement to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Tenaris January

3 Global industrial system serving the energy industry Annual manufacturing capacity of six million tons of steel pipes Net Sales 9M million tons of seamless pipes million tons of welded pipes K tons of welded pipes for pipeline projects Manufacturing facilities in 15 countries Middle East & Africa 22% Far East & Oceania 8% South America 22% R&D centers in five countries Service and distribution network in 25 countries Europe 16% North America * 32% 23,500 employees * Includes Mexico Tenaris January

4 With unmatched global footprint Tenaris January

5 Positioned for growth Building a leading market position in USA and Canada Worldwide OCTG consumption by region Leading market position with full range of products in Latin America (ex-brazil) Latin America 5% RoW 10% Leading market position in highend products in Middle East & Africa High-end finishing operation in China FSU 10% Middle East & Africa 14% USA and Canada 44% Penetrating high-end market in Russia China 17% Tenaris January

6 Integrating a solid platform in USA and Canada Full range of products (seamless, welded, premium connections, coiled tubing) with related services Approx. 20% OCTG market share in USA and Canada combined Industrial focus on quality, processes and safety Working with distributors to add value in an integrated supply chain Alliances with end-user customers Tenaris January

7 Changing the OCTG premium connection landscape TenarisHydril: a unique combination to meet the needs of ever more demanding drilling environments Worldwide Premium Connections Share Coupled joints Integral joints JFE 5% Others 14% Tenaris 21% Grant 8% VAM (Sumitomo) 14% Hydril 16% VAM (Vallourec) 22% TenarisBlue Hydril 523 Tenaris January

8 Developing advanced deepwater line pipe technologies Steel Catenary Riser Top Tension Riser Upset SCR TDZ Bends Flowlines Tenaris January

9 Managing the supply chain from the mill to the well String design Inventory and pipe management Just-in-time delivery to the rig Accessories procurement Tubular running assistance Tenaris January

10 Participating in the world s most demanding projects Skarv Snohvit Long Lake Gjoa Ormen Lange Narianmar Novatek Surmont Orenburg Astrakhan Primoria Karachaganak Tengiz Kashagan ACG Atlantis Thunder Horse Tahiti Corocoro Yucal Placer Mariscal Sucre In Salah Ourhoud In Amenas Gassi Touil Elephant Akpo Agbami Erha Bonga Moho Bilondo BBLT Tombua Landana Dalia Kizomba Qatargas Pearl GTL Mukhaizna Puguang JDA Greater Plutonio Greater Gorgon High End OCTG (Premium + Special Steels) High-End Line Pipe Tenaris January

11 Investing in human resources to enable future growth 370 graduates entered Global Trainee program in 2006, including 250 engineers TenarisUniversity established to oversee training and knowledge management Brazil 8% Canada 5% Romania 6% Employees by country 2006 Japan 3% Others 6% USA 16% Average 67 hours of training per white collar in 2006 Italy 13% Argentina 28% Mexico 15% Tenaris January

12 Oil and gas: demand growing and reserves not being replaced Global demand for oil and gas continues to grow but discovery of new reserves is falling further and further behind Source: BP Statistics and Woodmac Discoveries (Mb/Year) Production (Mb/Year) Tenaris January

13 Depletion leading to higher OCTG and line pipe consumption Depletion rates increase in mature fields in North America and elsewhere North America production Oil & Gas (Index 100=2002) China Production Oil (Index 100=2002) Oil Production Mbpd # Wells OCTG consumption Ktons Oil Production Mbpd # Wells OCTG consumption Ktons Tenaris January

14 Drilling activity in long-term uptrend Rig Count International Rig Count North America 1,100 2,200 1,000 2, , , , , , M M07 Oil Gas Misc Oil Gas Source: Baker Hughes International rig count excludes Iran, Sudan, onshore China and FSU Tenaris January

15 and drilling complexity is increasing Deepwater Deep directional Sour gas Thermal US wells drilled over E Arctic 100% Expansion of horizontal and deviated wells in USA Horizontal and extended reach 80% 60% Drilling with casing 40% 20% 0% Jan-91 Jul-92 Jan-94 Jul-95 Jan-97 Jul-98 Jan-00 Jul-01 Jan-03 Jul-04 Jan-06 Jul-07 Source: Spears, Baker Hughes Directional + Horizontal wells Vertical wells Tenaris January

16 Expansion of offshore drilling fleet Rigs by region (June 2007) 129 new rigs are scheduled to be delivered between 2007 and 2010 Brazil 4% RoW 17% USA 28% new-build scheduled delivery Mexico 6% West Africa 7% Far East 10% Middle East 13% North Sea 15% Jackup Semisub Drillship Existing rigs as of Source: Rig Logix Jackup Semisub Drillship Tenaris January

17 Growth in operating results Millions of US$ M 2007 Net sales 3,718 6,210 7,728 7,553 Tubes 3,273 5,124 6,824 6,400 Projects Pressure control 139 Others Operating profit 806 1,946 2,792 2,225 EBITDA ,160 3,047 2,597 EBITDA margin 24% 35% 39% 34% Net income ,278 1, ,377 Earnings per ADR Net debt ,095 3,044 Net debt / EBITDA ROE 36% 43% 44% 31% 6 (1) EBITDA = Operating income plus depreciation and amortization. Except for 2004 where non-recurring gains relating to Fintecna arbitration award are excluded (2) Attributable to Shareholders (3) 2004 results were affected by non-recurring gains of $258 million (4) Including income from discontinued operations US$47 million for FY 2006 (5) 9M2007 EBITDA annualised (6) Annualised Tenaris January

18 Summary Strengthening position as leading supplier of tubular products and services to the global energy industry Building a solid platform in North America Well positioned to benefit from increased drilling activity and well complexity Strong financial performance with solid growth prospects Tenaris January

19 Tenaris January

20 Complex drilling requires high-end products Land Shallow Well Land Directional Deep Well Offsh. Shallow Water Directional Deep Well Offshore Deep Water Deep Well m 9 5/8 300 m m 18 5/8 850 m 13 5/ m 13 5/ m 5 1/ m 13 3/ m 9 5/ m 9 5/ m 11 ¾ 5000 m 9 7/ m m m m 5 1/ m 100 Tons 0% Premium 0% Special Grades 1,350 Tons 70% Premium 80% Special Grades 700 Tons 100% Premium 50% Special Grades 700 Tons 70% Premium 30% Chrome Source: Company data Note: Strings with Premium Connections in RED Tenaris January

21 Share liquidity and distribution Average daily trading Free float shares by market Millions of US$ 270 December Buenos Aires 14% 210 New York 64% Milan 20% Mexico 2% New York Milan Buenos Aires Mexico Tenaris January