Tenaris Investor Presentation May 2014 Arial y Verdana

Investor Presentation

Tenaris 2June 2014Investor presentation

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 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 forward-looking statement to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.

Except where otherwise stated, the data presented herein is based on Tenaris analysis and estimates.


Market environment

Source: Bloomberg / World Gas Intelligence

Oil prices Gas prices

Crude Oil approx Heat Content per Barrel: 5.8 MMbtu

0

20

40

60

80

100

120

140

Mar

-08

Sep

-08

Mar

-09

Sep

-09

Mar

-10

Sep

-10

Mar

-11

Sep

-11

Mar

-12

Sep

-12

Mar

-13

Sep

-13

Mar

-14

Brent

WTI

WCS

[$/bbl]

0

5

10

15

20

25

Mar

-08

Sep

-08

Mar

-09

Sep

-09

Mar

-10

Sep

-10

Mar

-11

Sep

-11

Mar

-12

Sep

-12

Mar

-13

Sep

-13

Mar

-14

Spot LNG NE Asia

NBP ICE UK

HH

[$/MMbtu]


Market environment

Rig count US drilling efficiencies

Note: Baker Hughes’ rig count evolution does not cover China Onshore, FSU, Iran, Syria and Caspian Sea. Iraq is only included in the quarterly average, once it has been published by BHI since 3Q12.

1.19

1.09

1.01

0.70

0.80

0.90

1.00

1.10

1.20

1.30

1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14

[Wells/rig, Index Q1'12]

Avg. ShaleAvg. US LandAvg. Non-Shale

9741,069 1,139 1,165 1,212 1,267 1,306 1,285 1,320 1,337

1,090

1,5461,879 1,919 1,761 1,758 1,761 1,770 1,757 1,779222

348

419 364353

531152 350 379

525

2,286

2,963

3,436 3,4473,326

3,556

3,2193,405 3,456

3,641

357 383 424 423 419 426 425 407 416 402

2009 2010 2011 2012 2013 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14

International USA Canada Latin America Iraq

Yearly average Quarterly average

66 80 93 92 89


OCTG demand

Premium OCTG consumption by application (2013)

OCTG demand evolution

* HPHT applications represent 12% of total premium consumption.

Deep

water16%

Shallow

water22%

Shales oil

12%

Shales

gas6%

Others Gas18%

Others

Oil26%

11,012,4 13,2 13,1 12,7

0,10,3 0,7 0,9

2,4

2,73,1 3,3 3,4

13,4

15,2

16,6 17,1 17,0

2010 2011 2012 2013 2014F

PRM

Semi-PRM

API

[Mill Tn]


OCTG demand

11,8 12,4 12,5 12,8 12,3

1,62,8

4,1 4,3 4,713,4

15,216,6

17,1 17,0

2010 2011 2012 2013 2014F

Shales

Others

[Mill Tn][Mill Tn]


Shipments by product type

100%

180%

100%104%

83%

2010 2011 2012 2013

PRM API & Semi-PRM SLP INDUSTRIAL


Key markets in transition

2013 Mid-term

USA & Canada • Infrastructure constraints• Unfairly traded imports

• Shale gas• Thermal

Mexico • Chicontepec• Pemex financial and operating

constraints

• Energy & fiscal reform• Deepwater• Shale gas

Brazil • Petrobras financial and operating constraints

• Deepwater

Argentina • Investment climate• Energy imports

• Shales (oil & gas)


USA OCTG trade case

USA OCTG imports

• On February 18, 2014, the DOC imposed preliminary anti-dumping duties on a majority of the subject countries but not Korea.

• The DOC has stated that, in its final determination (July 7, 2014), it willconsider additional elements, that in ourview, strongly support the case againstKorean imports.

1,3 1,4 1,5 1,7 1,3

0,4

0,3 0,5

0,8

0,7

0,1

0,1

0,5

0,6

0,8

0,9

0,3

1,5

2,2

2,6

3,3

2,9

0,8

-

0,5

1,0

1,5

2,0

2,5

3,0

3,5

2009 2010 2011 2012 2013 IQ 2014

Others Others trade case South Korea

[Mill Tn][Mill Tn][Mill Tn][Mill Tn][Mill Tn][Mill Tn][Mill Tn][Mill Tn]


Bay City


Bay City: strategic location

Bay City

HoustonConroe / McCarty

Freeport

350 mile radius

500 mile radius

Westwego

Hickman

Permian

Barnett

Eagle Ford

Haynesville

TuscaloosaMarine

WoodfordFayetteville

Tamsa

Mexico


Key markets showing strong growth

Middle East OCTG consumption Deepwater OCTG consumption

0%

10%

20%

30%

40%

50%

0

200

400

600

800

1.000

1.200

1.400

2011 2012 2013

Gas

Oil

43% PJ

50%

[Th Tn]

0

100

200

300

400

500

600

2011 2012 2013

[Th Tn]


Premium connections portfolio New products for more complex drilling requirements

Dopeless® Technology

Large Diameter Conductor and Surface Casing

HP/HT

Deepwater

TSH Wedge 623™ (GOM)

TSH Blue® Riser (GOM)

Blue® Max (North Sea)

Blue® Heavy Wall (Angola)

Blue® Quick Seal (North Sea)

BlueDock™ connector (Brazil)

Standard on new products

TSH Blue® Max TSH Blue® Quick Seal

TSH Wedge 623™ TSH Blue® Riser


Global industrial system and supply chain


Financial performance

Free cash flow and EBITDA margin

LTM= last twelve monthsFree cash flow = Operating cash flow – Capital expendituresEBITDA= Operating income + Depreciation & Amortization +/- Non recurring resultsThe size of the circles is proportionate to invoicing

-2.000

-1.000

-

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

0% 5% 10% 15% 20% 25% 30% 35%

LTM EBITDA %

LTM FCF US$ million

TS

SLB

HAL

BHI

WFT


Financial performance

Free cash flow and EBITDA margin

LTM= last twelve monthsFree cash flow = Operating cash flow – Capital expendituresEBITDA= Operating income + Depreciation & Amortization +/- Non recurring resultsThe size of the circles is proportionate to invoicing

-1.000

-500

-

500

1.000

1.500

2.000

2.500

3.000

0% 5% 10% 15% 20% 25% 30% 35%LTM EBITDA %

LTM FCF US$ million

LTM EBITDA %

LTM FCF US$ million

TS

TMK

VK


Operating and financial results

M illions of US$ (except ratios and per ADS amounts) 2009 2010 2011 2012 2013 IQ 2014

Net Sales 8.149 7.712 9.972 10.834 10.594 2.580

Operating income 1.734 1.519 1.844 2.357 2.185 566

EBITDA 2.239 1.959 2.399 2.875 2.795 718

EBITDA margin 27% 25% 24% 27% 26% 28%

Net income of owners of the parent 1.162 1.127 1.331 1.699 1.551 423

Earnings per ADS 1,97 1,91 2,26 2,88 2,63 0,72

Cash flow from operations 3.064 871 1.283 1.860 2.355 612

Net debt / (cash) (676) (276) (324) 271 (911) (1.279)


Strategic agenda

• Expansion in North America: new industrial and logistics center in USA

• Strengthen our leading position in Latin America: Mexico, Colombia, Brazil, Argentina

• Leverage technical leadership and global capabilities in complex projects worldwide

• Differentiation through product development, industrial excellence and customer solutions

Tenaris Investor Presentation May 2014 Arial y Verdana

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