Investor Presentation - Tenaris

Investor Presentation

Tenaris 2Investor Presentation May 2017

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.


Global Leader in Pipes for the Oil & Gas Industry


Source: Bloomberg + World Gas Intelligence; Rystad Energy NASWellCube

[US$/bbl]

[US$

/MM

Btu

]

-

5

10

15

20

-

20

40

60

80

100

120

Jan-12 Sep-12 May-13 Jul-14 Mar'15 Nov'15 Jul'16 Mar-17

WTI

US Gas (Henry Hub)

LNG

Industry Response to Lower Prices

-

10

20

30

40

50

60

70

80

90

Eagle Ford Permian Delaware Permian Midland

Breakeven Evolution for Key Shale Plays

2014 2015 2016


Source: TS estimates

4.8 4.2 3.5 3.7

3.9

2.62.6 2.6

1.1

0.80.6 0.7

8.0

4.0

2.2

5.2

17.7

11.6

8.8

12.1

2014 2015 2016 2017F

USA & CANADA

LATIN AMERICA

INTERNATIONAL

CHINA & RUSSIA

PJ Mix 20% 21% 23% 22%

[Mill tons]

OCTG Demand Recovery Underway


Rig Direct™ Global DeploymentIntegrated service solution that addresses costs, quality, operational efficiency and sustainability

TS OCTG Sales: % Rig Direct™ Dec 2016


0

1

2

3

4

5

6

7

8

2012 2013 2014 2015 2016 E

USA Demand

Imports fromsubject countries

[Mill Tn]

North America

USA InventoryUSA Demand and Imports


1.000

1.200

1.400

1.600

1.800

2.000

2.200

Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

[US$/Mt ton]

North America

Pipe Logix

20

40

60

80

100

120

140

160

180

2013

avg

1Q14

2Q14

3Q14

4Q14

1Q15

2Q15

3Q15

4Q15

1Q16

2Q16

3Q16

4Q16

1Q17

Raw Materials Costs Evolution

Iron Ore (IODEX)

Scrap USA (CRU)

HRC USA (CRU)

Pipe Logix

HCC (Platts)

687 US$/Tn

264 US$/Tn

86 US$/Tn

1,405 US$/Tn

169 US$/Tn


Rig Direct™ in North America

Industrial infrastructure

Service infrastructure

Product development

Shorter, more efficient and flexible supply chain

Differentiated service offer in the world’s largest and most dynamic market


American Manufacturing RevivalBay City, the world’s most modern seamless pipe mill, now in Texas


Short term

Offshore Recovery

Energy reform process advancing steadily but impact in demand will be limited over the next two years

Mex. Energy ReformE. Mediterranean Gas

Conditions for investment in outstanding shale play gradually falling into place

Fast track deepwaterpipeline developments (eg Zohr) with demanding schedules, pipe and service requirements

Vaca Muerta Shale

Medium term

Well Positioned in Growth Areas

Recovery in offshore projects will increase demand for advanced premium products and services

12TenarisInvestor Presentation May 2017

Financial Performance

* EBITDA adjusted excludes restructuring expenses

M illions of US$ (except rat ios and per ADS amounts)2012 2013 2014 2015 2016 Q1 2017

Net Sales 10,648 10,424 10,141 6,903 4,294 1,154

EBITDA 2,856 2,780 2,696 1,219 598 198

EBITDA Adjusted 2,856 2,780 2,696 1,396 672 207

EBITDA Adjusted margin 27% 27% 27% 20% 16% 18%

Net income (loss) of owners of the parent 1,699 1,551 1,159 (80) 55 205

Earnings per ADS 2.88 2.63 1.96 (0.14)

0.09 0.35

Cash flow from operations 1,856 2,377 2,044 2,215 864 26

Capital expenditures 790 753 1,089 1,132 787 139

Free cash flow 1,066 1,624 955 1,083 77 ( 113)

Net financial position -271 911 1,257 1,849 1,441 1,649

Dividend 508 508 531 531 484


Closing Remarks

• Market has changed in response to lower commodity prices: recovery underway led by North American shales

• Pipe prices increasing from unsustainable levels on higher demand

• Tenaris is uniquely positioned to take advantage in all regions and segments where growth is taking place

• Rig Direct™ is a game changer for the efficiency, capital discipline and time to market of the oil and gas industry

• Tenaris is leveraging its strengths in product technology, supply chain efficiency and global reach

• Tenaris has maintained a solid balance sheet and good financial performance throughout the downturn


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Investor Presentation - Tenaris