Company Overview - ATOGSIn addition to the API steel grades, Tenaris provides a complete range of proprietary grades, including Corrosion Resistant Alloys, with performance properties

Company Overview

Tenaris 2 June 2, 2017

Serving the world's energy industry and other industrial applications

Countries

17

Manufacturing facilities

5 R&D Centers Worldwide

19,400 Employees (2016)

Global Leader in Pipes for the Oil & Gas Industry

4.3 US$ billion

Annual net sales (2016)

30 Countries Services and distribution network

Sales by Region

North America 31%

South America 28%

Europe 13%

Middle East & Africa 25%

Asia Pacific 3%


Worldwide Operations


A History of Industrial Enterprise

Agostino Rocca, Techint’s founder, is Managing Director at Dalmine.

1930s

Tenaris integrates Silcotub.

2004

Further expansion through incorporation of Tavsa, Confab, NKKTubes and AlgomaTubes.

1998

Tenaris becomes listed company following exchange offer.

2002

Launch of Tenaris brand.

2001

Tamsa and Siderca begin operations.

1954

Siderca expands capacity for export markets.

1980s

Siderca and Tamsa form strategic alliance.

1993

Dalmine joins strategic alliance.

1996


A History of Industrial Enterprise

Tenaris expands in USA, Canada and Colombia through Maverick Tube Corp.

With Hydril, Tenaris expands products and services offer for the oil & gas industry.

Tenaris opens new rolling mill in Mexico.

2006 2007 2011 2013

Tenaris starts construction of first seamless facility in the United States.


Integrated Industrial Management

ISO 9001:2008 Single Quality Management System

ISO 14001 and

OHSAS 18001 Single HSE Management System

4 12 30 52

1036.3

Electric steel shops

Seamless rolling mills

Welded tube mills

Heat treatment lines

Premium threading lines

Million tons of steel pipes

3.7 2.6

Million tons of seamless pipes

Million tons of welded pipes


Market Segments

Leading global manufacturer and supplier of tubular products and services used in: • Drilling, completion and production of oil and gas • Transportation of oil and gas • Process and power plants • Specialized industrial and automotive applications

OCTG Premium Connections

Line Pipe for Offshore and

Onshore applications

Hydrocarbon Processing

Power Generation

Industrial & Automotive


Market Segments

OCTG


A complete product and service package for the oilfield Tenaris supplies a full range seamless and welded,

high quality casing and tubing as well as premium

connections, OCTG accessories, drill pipe, sucker

rods and coiled tubing for use in all types of oil and

gas drilling and well completion activities.

In addition to the API steel grades, Tenaris provides

a complete range of proprietary grades, including

Corrosion Resistant Alloys, with performance

properties that surpass those indicated by the API.

Along with our high quality products, we offer a wide

array of expert services –known as Rig Direct™–,

covering everything from string design and material

selection to direct delivery and running assistance.


Rig Direct™

Integrated solution that addresses costs, quality, operational efficiency and sustainability

•  Product optimization and standardization

•  Inventory/working capital reduction

•  Operational cost savings and process simplification

•  Shorter and more flexible supply chain

•  Consistent QHSE management system certified to the highest standards (ISO 9001, OHSAS 18001, ISO 14001)

•  Supported by infrastructure investments


Market Segments

Premium Connections


TenarisHydril Premium Connections A full range of integral and threaded and coupled premium threads to take on the challenges of different drilling environments and applications.

•  HP/HT & Deep Wells

•  Deep Water

•  Shallow Water

•  Shales

•  Horizontal & Extended Reach Wells

•  Casing While Drilling

•  Thermal (SAGD & CSS)

•  Geothermal

•  Workstrings

•  Corrosion Protection & ID Coating

Blue® Series

Weld-on Connectors

Wedge Series

Legacy Series

Dopeless® technology

Dopeless® technology is a dry, multifunctional coating applied to TenarisHydril premium connections

in the mill, making storage and running thread compounds obsolete.


Market Segments

Line Pipe for Offshore and Onshore Applications


Line Pipe for Offshore Applications

Tenaris supplies a full range of high quality line pipe, coating and accessories for use in all types of oil & gas offshore developments.

The offer includes:

•  CMn

•  Corrosion Resistant Alloys

•  Clad and lined pipes

•  Coiled line pipe

We accompany our products with an extensive range of accessories like:

•  Bends, Buckle arrestors, Transition joints and Anode Pads.

Services like:

•  Double joints, Best Matching Applications, etc.

In addition we also provide all types of coatings from anticorrosive to anti-buoyancy and flow assurance as well as our proprietary coatings TenCoat™. Our TenarisHydril Blue® Riser for use in Top Tension, Hybrid and Work Over risers applications where and exceptional level of fatigue resistance and sealability is required.


Line Pipe for Onshore Applications

Tenaris supplies a full range of high quality line pipe plus coatings and accessories for use in all types of land lines and other onshore developments.

Main applications go from:

•  Oil and gas pipelines

•  Oil and gas gathering systems

•  Water and sewage pipelines

•  Mineral slurry pipelines


Market Segments

Hydrocarbon Processing


Hydrocarbon Processing Tenaris provides a wide range of seamless steel tubes and pipes for refineries, petrochemical and gas-processing plants. Tenaris has developed the Total Cost of Ownership model, which takes into account all variables that may impact on project, measuring and controlling the corresponding costs. Tenaris can collaborate with engineering companies to achieve cost savings, offering:

•  Material definition of the hydrocarbon processing project

•  Mill planning direct support

•  Production flexibility

•  Price structure customization

•  Supply chain coordination

•  Best practices sharing


Market Segments

Power Generation


Power Generation

Tenaris provides a complete range of seamless tubes and pipes in different steel grades for all Power Generation applications (HRSG, SC/USC Boilers, Waste to Energy, Heat Exchangers, Nuclear, IGCC, Renewable, CCS).

•  The longest tubes in the world: 26 meters, allowing to save on space, welding time and cost

•  The most stringent length tolerances: –0/+5mm allowing to save costs for pressure parts manufacturers and EPCs

•  Tighter wall thickness and outside diameter tolerances, meaning lighter structures, less welding passages an more efficiency

•  Reduced roughness: reduced pressure drop inside the tubes, thus improving the flow of the power plant

•  Thor™115, a ferritic steel with increased Cr content ensuring better steam oxidation resistance, long term stability and superior creep behavior for use in plants with advanced gas turbines.


Market Segments

Industrial & Mechanical


Industrial & Mechanical

•  Tenaris provides seamless tubular

products and components for industrial

applications such as high fatigue

resistance hydraulic cylinders, reduced

weight gas cylinders, cranes, structural

and other mechanical uses

•  The fully-integrated manufacturing

process includes steelmaking, hot-rolling,

cold-drawing, heat treatments, NDT

testing and tubular parts processing,

focused on designing tailor-made products

to meet customers’ needs


Market Segments

Automotive Services


Automotive Services

•  Tenaris provides a wide range of seamless

tubes and tube-based components according to

ISO TS 16949 for car manufacturers and their

suppliers

•  Cold-drawn and hot-rolled seamless tubes

produced for application in airbags, steering,

chassis and suspensions, heavy trucks and

trailers, transmission, ring gears and power

train components

•  Four automotive service centers in Argentina,

Mexico, Romania and China work with teams

able to perform high added-value operations


An Integrated R&D Network

We are responsible for developing and testing products used in many of the world's most advanced oil and gas exploration, production and processing activities and in specialized mechanical applications

Our global R&D footprint:

•  Five dedicated R&D centers located in Argentina, Italy, Japan, Mexico and Brazil

•  R&D Main Office in Amsterdam, Netherlands

•  A Technology Group in Houston, Texas

•  About 360 researchers

•  Collaboration with selected external R&D laboratories, product testing centers and universities


R&D Network: Areas of Research

From our R&D centers we perform specific scientific and technological research into:

•  TenarisHydril premium connections

•  Corrosion-resistant materials, HT/HP and sour service steels

•  Flowlines and risers

•  Weld-on connectors

•  Sucker rods and accessories

•  Drill pipe

•  Products for power generation and industrial applications

•  Coatings development

•  String design and novel solutions for field applications

•  Manufacturing processes including steelmaking, hot rolling, heat treatment, non-destructive inspection and others

•  Tracking and traceability of tubular products and process control

•  Welding metallurgy

•  Nanotechnology

•  Full-scale combined loads testing of premium connections and fatigue testing of welded and threaded joints

•  Structural reliability of line pipe and risers plus the development of products for challenging deep and ultra-deep water projects.


Pursuing the Highest Standards in QHSE

•  QHSE standards and objectives integrated into all management processes

•  Principles of sustainable development integrated into all operations

•  Employee health and safety, customer satisfaction and environmental protection are key business drivers

•  Programs of global reach, Safe Hour and Zero Tolerance, which aim to improve safety and achieve an incident-free working environment

•  Since 2009, Tenaris has each year received the Climate Action Recognition award granted by Worldsteel, for its participation in the CO2 data collection program

•  Globally-certified company: OHSAS 18001 and ISO 14000 were completed in 2016

Lost Time Injury Frequency rate

Accidents per million man/hours

5,0

3,4

3,7 3,2

3

2,2 2,7

2.9 2.2

2.7 2.8 2.3

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2012 2013 2014 2015 2016

0.30 0.32 0.32 0.35 0.33

0.31 0.35 0.34 0.45 0.48

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

2012 2013 2014 2015 2016

Other upstream emissions

Electricity upstream emissions

Direct emissions

CO2 Emissions – Sites with steel production

Methodology: worldsteel Association Facilities included: Siderca, Silcotub Steel Shop, Tamsa, Dalmine.


Investing in Our People

•  TenarisUniversity organizes company-wide training including managerial and leadership development focused on knowledge excellence and active employee participation

•  39 hours of training per salaried employee and 33 hours of training (excluding On the Job Training) per hourly employee in 2016

•  International, culturally diverse team with specific programs to encourage diversity

•  Working environment that fosters creativity, initiative, teamwork and professional growth

•  Performance and compensation management systems designed to ensure internal and external equity, reward performance and stimulate employee development

Personnel employed by country 19,400 employees

Dec. 2016

Argentina 25%

Italy 10%

Mexico 26%

Romania 8%

USA 8%

Others 6%

Canada 2%

Colombia 4%

Indonesia 3%

Brazil 6%

Japan 2%


Community Development

•  Conviction that industry contributes to sustainable growth and socially inclusive community development

•  Education is the primary focus of our community programs and we have a major commitment to strengthen technical education in our communities

•  We also support cultural activities with focus on excellence and integration

•  Programs include Roberto Rocca Technical Schools, Technical Education Support, Roberto Rocca Education Program, Merit awards, AfterSchool Program, Volunteers in Action, Latin American Film Festivals, PROA and Toni El Suizo's global bridge building activities, among others

Investment in Community programs US $9.5 million

2016

Culture 38%

Social inclusion and sustainability

8%

Education 54%


Business Conduct Compliance

•  A Code of Conduct, a Policy on Business Conduct and a Code of Conduct for Suppliers including guidelines and standards of integrity and transparency.

•  A Business Conduct Compliance Officer (BCCO) leading the Business Conduct Compliance Program across the company.

•  Regular risk assessment to identify, prevent and mitigate compliance risks.

•  Mandatory risk evaluation of third parties to qualify and certify their credentials and reputation or discontinue them.

•  Regular in-person and online digital training for all employees and representatives.

•  Monitoring and audits to verify implementation of anti-bribery regulations, the Code of Conduct and the Policy on Business Conduct.

•  Tenaris core values foster ethics, transparency and open communications throughout all our relations.

•  A Compliance Line promoted throughout the company and open to employees, suppliers, customers, shareholders and third parties.


Documents

Company Overview - ATOGSIn addition to the API steel grades, Tenaris provides a complete range of proprietary grades, including Corrosion Resistant Alloys, with performance properties