Overview and Strategy Results for 2012

Transcription

1 April 2013

2 Contents Overview and Strategy Results for

3 Overview and Strategy

4 Seamless Steel tubes Company Global International Footprint 87% of Sales Oriented to the Energy Sector 83% of Sales Focus on Special Products and Niches - 63% of Sales Strategic Plan Mll Eur investment plan under execution 4

5 Business Lines Seamless tubes Distribution Automotive Manufacture of Small and Medium size diameter Tubes Manufacture of Large size diameter tubes Cold rolled seamless steel tubes Distribution of tubular products (carbon and alloy steel, copper, PPR...), fittings, insulation and related products TIER 1 supplier of tubular-shaped components and other autoparts such as suspension "links % of Sales, 2012: 82% 8% 10% 5

6 Core Seamless Tube Manufacturing Business Seamless steel tube producer Production sites located in the Basque Country (Northern Spain) 1,900 employees Production process vertically integrated Tubos Reunidos Industrial Manufacture of small and midsize diameter tubes. Diameter: mm. (6-120mm upon cold-drawn). Thickness: mm. Carbon, alloyed and high alloy. Productos Tubulares Manufacture of large diameter tubes. Diameter: mm. Thickness: mm. Carbon, high alloy and stainless. 69% of sales 31% of sales 6

7 Global Commercial Footprint 25 Agents 9 Delegations: Spain, France, Italy, USA, China, Venezuela, Cuba, Dubai, Jakarta Seamless Tube Business 7

8 Sales in International Markets Historic Presence in International Markets Geographic Diversification 78% of the Group Sales in International Markets 87% of Seamless Steel Tubes Sales in International Markets % of Consolidated Sales, M % of Seamless Steel Tubes sales, M Spain 12,7% 12,4% 57% 57% 58% 63% 65% 69% 75% 78% Europe North America Far East 14,1% 15,9% 29,7% 33,4% 31,3% 26,8% Middle East 7,1% 8,3% New Markets 5,0% 3,3% % 5% 10% 15% 20% 25% 30% 35% 40% Spain International markets

9 Energy Sector OCTG (Oil Country Tubular Goods) Pressure Pipes Line Pipes Oil & Gas Power Generation & Petrochemicals Oil & Gas, Power Generation & Petrochemicals Drilling Casing Tubing Heaters Boilers Heat Exchangers Flow Lines 83 % of sales 9

10 Focus on Special Products and in niche segments OCTG: Tubes in steels more resistant to pressure, temperature and corrosion, with special thermal and finish treatments with individualised specifications in combinations of special dimensional ranges for unconventional and new exploration techniques as per customer requirements Power generation and petrochemical (Pressure pipes): High quality steel tubes for high resistance to pressures and temperatures in power generation and petrochemical plants Special lengths for solar power plants and HRSG which require long tubes with high steam pressure Cold drown rifle tubes specially designed to increase efficiency of plants Line pipes: Large diameters, lengths and special thickness tubes in alloyed and stainless steels for special conductions with high pressures and temperatures 63 % of sales 10

11 Focus on Special Services: Flexibility Special Orders Special size: short production runs Special Delivery lead time: urgencies, Special product range in thickness, diameter and length combinations Thanks to: The competitive advantage offered by size, Continuous innovation in new processes and products The own consolidated business management model throughout 125 years of history competing globally: Consolidated, stable global sales network Group recognition Technical response and service capability Agile, integrated decision making model 11

12 Strategic Lines and Positioning Target Global Presence Diversification Major consumer markets Fastest growth markets Specialisation in High Value-Added Products R&D&I serving customer requirements: new products Focus on special products: with greatest growth and profitability Service Quality and Flexibility Differentiation in delivery lead times and order sizes: flexibility Competitiveness and Financial Robustness R&D&I focusing on competitiveness: continuous development of new, more efficient production processes Differentiation: large company QUALITY with small company FLEXIBILITY 12

13 Premium Products for the Energy Sector MARKET MARKET DEMANDS TR R&D&I: Premium Products Oil & Gas Power Generation Non-conventional operations: Directional Wells, Shale Gas, Offshore Operations, Special Tubing, Arctic Grades, require special tubing with more complex and demanding specifications Larger and more efficient facilities, with work cycles at higher pressure and temperature require special steels more resistant to pressure and temperatures and larger diameter, thickness and length combinations High alloy / specific composition steels: development of materials more resistant to corrosion, pressure and temperature Special finishing processes: threads, coatings, upsetting New diameter / thickness combinations Special steels with resistance to high pressures, temperatures and aggressive environments Bigger diameters, thicknesses and lengths that maximise performance with lower assembly costs Energy Sector, % sales: 78% 83% 90% 13

14 Product Plan Goals: To increase the volume of special products as a differentiation strategy To increase the range of special products To enter new markets through new products To consolidate leadership in high valueadded niches: large diameter tubes in alloy and stainless steels Investment Plan for : 150M 14

15 Strengthen Presence in Current and Growth Markets USA Mexico Europe North Africa Eastern Europe Middle East India China/ Korea Current Markets Growth Markets South America Sub- Saharan Africa New Markets, % sales: 3.5% 5% > 10% 15

16 Investment Plan New Steels New Products Higher alloy steels with restrictive specifications With tailor-made compositions: specific according to customer requirements Development of special stainless steels for large diameter tubes Increase dimensional range of high alloy steel tubes special diameter / length / thickness combinations Longer tubes Large outer diameter tubes: increase range up to 28" diameter and increase thicknesses in special steels Premium Finish in tubes for OCTG Threads and Power Generation Rifled Tube New Processes Developments to manufacture new products, maximising efficiency and competitiveness Improved service: differential and flexible delivery lead times and order sizes 16

17 2012 Results

18 Seamless Steel Tubes Business Progress in Specialisation Improved product mix: Price increases of > 8% Increased sales outside Europe: 57.5% in 2012 vs. 54.3% in 2011 Positioning in energy sector in segments with greatest growth and profitability Boost in efforts made in R&D&I, 35M: New products Improved competitiveness Sales, M EBITDA, M 407, ,6% 15,6% 59,7 59,

19 Increase of Geographical Diversification % of total sales, M Spain Europe North America Far East Middle East New Markets 7,1% 8,3% 5,0% 3,3% 12,7% 12,4% 14,1% 15,9% 29,7% 33,4% 31,3% 26,8% 0% 5% 10% 15% 20% 25% 30% 35% 40% Seamless Tube Business Good performance in activity outside Europe North America: 12% increase in sales Other markets: Middle East, India, Korea, North Africa, South-East Asia, New commercial branch opened in Dubai 19

20 Increase of Sales in Energy Sector and Special Products % Sales in Energy Sector, M % Sales of special products, M 21% 17% 78% 83% Other Sectors Energy Sector OCTG, Line Pipes, Pressure Pipes for Power Generation growth in: Special tubing and OCTG Boilers for electrical power generation Petrochemicals: growth in for projects with a mix of higher alloy products 20

21 Distribution Business: Reorganisation & Plan for Future 2010: Distribution business focused on the domestic market and with a strong presence in the tertiary sector - not a core factor in Grupo Tubos Reunidos strategy: Decision to disinvest 2012: The situation of markets has made it difficult to complete the disinvestment process. Determination of a new strategic definition, aligned with the core business of the Group, which involves its reorganisation Reorganisation: Terminate tertiary business, including currently associated structure and assets Plan for FUTURE: Focus exclusively on Industrial business Products and services complementary to the main seamless steel tubes activity Become more International, taking advantage of the Group sales network 21

22 Consolidated Results 2012: Key Figures Sales, M EBITDA, M Net Result, M 499,6 41,5 464, , ,2 60,4 24,4 24,5 62,4 49,6-12,8-13,8 10, sin Distribución Total 2012 distribución sin Distribución distribución Total Distribution Business Impact of the new strategic definition of the distribution business on the consolidated result, which involves the implementation of a reorganization plan whose single and non-recurring cost was recorded in 2012 Without the effect of the distribution business, the Group achieved EBITDA improvement of 14.6% in 2012 vs. 13.2% in 2011 as a result of the improved mix and progress in competitiveness 22

23 Consolidated Income Statement 2012 ( K) Consolidated Profit & Loss Account Net Sales EBITDA % / net sales 10,7% 12,5% Amortization EBIT Net Financial Result Pre tax Profit Taxes Net Profit before minorities Discounted Operations Minority Interests Net Profit y 2011: Includes the distribution business 23

24 Consolidated Cash Flow 2012: Key Figures Net Working Capital, M CAPEX, M DFN, M Debt structure, 2012 Positive execution of the Investment Plan for 150M Extraordinary tax payment of 20 Mll Eur in 2012 Long-term debt structure Short-term Long-term NFD 2011 Cash flow before extraordinary tax payment Extraordinary Tax payments NFD : Includes the distribution business 24

25 Consolidated Balance Sheet 2012 ( K) Consolidated Balance Sheet Non Current Assets Inventory and Accounts Receivables Cash and Cash equivalents Current Assets Assets held for sale Total Assets Equity Deferred Income LT interest bearing debt Other liabilities Non current liabilities ST interest bearing debt Accounts payable and others Current Liabilities Liabilities from assets held for sale Total liabilities y 2011: Includes the distribution business 25