Company Overview

Company Overview
Global Industrial System
Serving the world's energy industry and other industrial applications
6.4
16
5
Million tons
of steel pipes
Countries
R&D
Centers
Annual
manufacturing
capacity
Manufacturing
facilities
3.8 million tons
of seamless pipes
21,740
2.6 million tons
of welded pipes
Employees
Tenaris
Worldwide
(2015)
April 20, 2016
2
Global Industrial System
7.1
4
US$ billion
Countries
Annual net sales
(2015)
Stock exchange
listings
30
New York
Buenos Aires
Italy
Mexico
Sales by Region
Asia Pacific
Middle
East &
Africa
4%
16%
Europe
10%
Countries
Services and
distribution
network
Tenaris
South America
30%
North America
40%
April 20, 2016
3
Worldwide Operations
Tenaris
Manufacturing Centers
Service Centers
R&D Centers
Commercial Offices
April 20, 2016
4
A History of Industrial Enterprise
1930s
1998
Launch of Tenaris brand.
2001
Further expansion through incorporation of Tavsa,
Confab, NKKTubes and AlgomaTubes.
Tenaris
1993
Siderca acquires Siat, an Argentine
welded pipe manufacturer.
Tamsa and Siderca begin
operations.
1996
1986
1980s
1954
Dalmine joins strategic alliance.
Siderca and Tamsa form
strategic alliance.
Siderca expands capacity
for export markets.
Agostino Rocca, Techint’s founder,
is Managing Director at Dalmine.
Tenaris integrates Silcotub.
2002
2004
Tenaris becomes listed company
following exchange offer.
April 20, 2016
5
A History of Industrial Enterprise
Tenaris expands presence in Far East through integration of
SPIJ, an Indonesian OCTG processing operation.
Tenaris expands in USA, Canada and
Colombia through Maverick Tube Corp.
2006
Venezuela acquires control over TAVSA.
2007
2009
Inauguration of new threading
facility in Saudi Arabia.
With Hydril, Tenaris expands products and
services offer for the oil & gas industry.
Tenaris announces construction of first
seamless facility in the United States
Tenaris opens new
rolling mill in Mexico.
2011
2012
Tenaris expands presence in Romania through
acquisition of sucker rods mill in Campina.
Tenaris
2013
2010
Tenaris opens Service Centers in Argentina
and in the United States (Midland and
Freeport).
2014
2015
Inauguration of new R&D Center in Rio
de Janeiro, Brazil.
April 20, 2016
6
Integrated Industrial Management
4
12
30
54
103
Tenaris
Electric steel shops
ISO 9001:2008
One single Quality Management System
Seamless rolling mills
Welded tube mills
Heat treatment lines
Premium threading lines
ISO 14001 and
OHSAS 18001
One single HSE Management System.
Today, 86% of Tenaris personnel works in
production sites certified according to
these standards
April 20, 2016
7
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
Tenaris
Premium
Connections
Line Pipe for
Offshore and
Onshore
applications
Hydrocarbon
Processing
Power
Generation
Industrial &
Automotive
April 20, 2016
8
Customer value proposition
• 
Most comprehensive product portfolio in
the industry with renowned reliability
• 
Industrial excellence: state-of-the-art
manufacturing under a single quality
management system
• 
Services: promoting cost-efficiency and
reducing lead times through strategic,
local presence
• 
Financial strength
Tenaris
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9
Market Segments
OCTG
Tenaris
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10
OCTG
Tenaris supplies a full range of high quality casing and tubing, drill
pipes, premium connections, pipe accessories, 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.
Tenaris
April 20, 2016
11
Rig Direct™
Along with our high quality products, we offer a wide array of expert services to support
our customers’ operations.
Technical
Product qualification
and testing
training
Failure analysis and
product optimization
DemandSync™
Our demand planning and
inventory management
service
Production planning
of OCTG and
accessories
String design and
material selection
Storage at regional
yards
Demand forecasting
Running
Assistance
Pipe inspection
Certified field
services specialists
Run Ready
On-site delivery of
pipe ready to be
installed in the well
On-time delivery of
multiple items
Repair, restock, of pipes
and accessories
Technical
support in the
field
Tools and
workstrings rental
Tenaris
Net invoicing
Customers only pay for
pipes they use
Collection and recycling of
protectors
Sub-assemblies
buck-on
PipeTracer™
Our unique pipe tracking and
traceability application that
automates yard management and onsite pipe identification
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12
Market Segments
Premium
Connections
Tenaris
April 20, 2016
13
Premium Connections
A full range of products and services for ever more demanding E&P
applications and environments
• 
HP/HT & Deep Wells
•  Casing While Drilling
• 
Deep Water
•  Thermal (SAGD & CSS)
• 
Shallow Water
•  Geothermal
• 
Shales
•  Workstrings
• 
Horizontal & Extended Reach Wells
•  Corrosion Protection & ID Coating
Weld-on
Connectors
Tenaris
Blue®
Series
Wedge 623™
(with Dopeless®
coating)
Wedge
TM
Series 500
TenarisXP®
Buttress
connection
Legacy
Series
April 20, 2016
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Dopeless® Technology
Dopeless® technology is a dry, multifunctional coating applied to
TenarisHydril premium connections in the mill, making storage and
running thread compounds obsolete.
Since it was first run in 2003 in Norway,
this solution has been adopted in over
50 countries by more than 80 customers.
Dopeless® technology brings quantifiable
benefits to E&P operations worldwide.
• 
Running times reduced by 25%
• 
Nearly zero re-makeups and rejects
•  10% savings in total pipe costs
•  Zero discharge and minimal risk
Tenaris
April 20, 2016
15
Market Segments
Line Pipe for Offshore
and Onshore
Applications
Tenaris
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16
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.
Tenaris
April 20, 2016
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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:
• 
Water and sewage pipelines
• 
Mineral slurry pipelines
• 
Oil & gas all types
In addition we also provide all types of coating
as well as our proprietary coatings TenCoat™.
Tenaris
April 20, 2016
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Market Segments
Hydrocarbon
Processing
Tenaris
April 20, 2016
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Hydrocarbon Processing
Tenaris provides a wide range of seamless steel tubes and pipes for
refineries, petrochemical and gas-processing plants able to comply
with the most stringent customers’ requirements.
Tenaris has developed a unique model, the Total Cost of Ownership,
which takes into account all variables that may impact on project
performance, measuring and controlling the corresponding costs.
Tenaris
April 20, 2016
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Hydrocarbon Processing
By participating since the FEED stage, Tenaris can collaborate with
engineering companies to achieve cost savings, offering:
• 
Material definition for each portion of the
hydrocarbon processing project
• 
Mill planning direct support
• 
Guaranteed mill space and production
flexibility
•  Price structure customization
•  Supply chain coordination
•  Best practices sharing
Tenaris
April 20, 2016
21
Market Segments
Power
Generation
Tenaris
April 20, 2016
22
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).
Tenaris can provide tailor-made solutions: fixed lengths, special
tolerances, special packing, surface protection and color coding.
Tenaris has a unique laboratory where extensive studies and
characterizations of boiler materials are performed, with single test
duration reaching more than 100,000 hours. Tests ensure the highest
product performance and reliability.
Tenaris
April 20, 2016
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Power Generation
Tenaris has invested $60 million in Romania to build a dedicated
finishing line and to process high alloys up to 12% Cr. With this
investment, Tenaris is able to offer:
• 
• 
The longest tubes in the world: 26 meters,
•  Tighter wall thickness and outside diameter
allowing to increase the height of the
tolerances: allowing to reduce the weight of
HRSG module, saving on space, welding
the structure and the welding passages,
time and cost
while increasing overall efficiency
The most stringent length tolerances:
–0/+5mm allowing to save costs for
pressure parts manufacturers and EPCs
Tenaris
•  Reduced roughness: decreasing the
pressure drop inside the tubes, thus
improving the flow of the power plant
April 20, 2016
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Market Segments
Industrial &
Automotive Services
Tenaris
April 20, 2016
25
Industrial & Automotive Services
Industrial & Mechanical Services
• 
Tenaris provides seamless tubular products
• 
Tenaris provides a wide range of seamless
and components for industrial applications
tubes and tube-based components according to
such as high fatigue resistance hydraulic
ISO TS 16949 for car manufacturers and their
cylinders, reduced weight gas cylinders,
suppliers
cranes, structural and other mechanical
• 
Automotive Services
• 
Cold-drawn and hot-rolled seamless tubes
uses
produced for application in safety, steering,
The fully-integrated manufacturing process
chassis and suspensions, heavy trucks and
includes steelmaking, hot-rolling, cold-
trailers, transmission and power train
drawing, heat treatments, NDT testing and
components
tubular parts processing, focused on
• 
Three automotive service centers in Argentina,
designing tailor-made products to meet
Mexico and Romania work with teams able to
customers’ needs
perform high added-value operations
Tenaris
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An Integrated R&D Network
Tenaris is responsible for developing and testing the tubular
products used in many of the world's most advanced oil and gas
exploration, production and processing activities and in
specialized mechanical applications
Five dedicated R&D centers located in:
• 
One Wedge Technology Group in Houston,
United States
• 
Argentina
• 
Italy
• 
About 360 researchers
• 
Japan
• 
Collaboration with selected external R&D
• 
Mexico
• 
Brazil
Tenaris
laboratories, product testing centers and
universities
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An Integrated R&D Network
From our research and development centers we perform specific
scientific and technological research into:
• 
TenarisHydril premium connections
• 
Manufacturing processes such as
• 
• 
• 
Products for power generation and
industrial applications
steelmaking, hot-rolling, heat treatment and
• 
Drill pipe
non-destructive inspection and some others
• 
Sucker rods
• 
Nanotechnology
• 
Corrosion-resistant materials and sour
Tracking of tubular products and process
control
String design and novel solutions for field
applications
Tenaris
service steels
• 
Welding metallurgy
• 
Flowlines and risers
April 20, 2016
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An Integrated R&D Network
• 
Full-scale and resonant fatigue testing of
premium connections
• 
Structural reliability of line pipe and risers
and development of specialized products
for challenging deep water, ultra-deep
water and high temperature/ high pressure
projects
Coating and surfaces
Our laboratories develop and apply different
types of coating, paint and other products to
provide protection against corrosion and
abrasion, insulation or for other industry
needs.
Tenaris
April 20, 2016
29
Pursuing the Highest Standards in QHSE
• 
• 
QHSE standards and objectives integrated into
all management processes
1,40
Principles of sustainable development integrated
1,20
into all operations
• 
Employee health and safety, customer
satisfaction and environmental protection are
key business drivers
• 
QHSE policy encompasses suppliers and the
entire supply chain
• 
CO2 Emissions –
Sites with steel production
Since 2009, Tenaris has each year received the
1,00
0,80
0,31
0,35
0,34
0,30
0,30
0,32
0,32
0,36
0,57
0,60
0,58
0,55
0,55
2011
2012
2013
2014
2015
0,60
0,40
0,20
0,00
Climate Action Recognition award
Other upstream emissions
granted by Worldsteel, for its
Electricity upstream emissions
participation in the CO2 data
Direct emissions
collection program
Tenaris
0,44
0,30
Methodology: worldsteel Association
Facilities included: Siderca, Silcotub Steel Shop, Tamsa, Dalmine.
April 20, 2016
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Pursuing the Highest Standards in QHSE
• 
IT tools and ongoing training to enhance
awareness of Quality and HSE issues
• 
Continuous investment in plants, people and
processes to improve QHSE performance
• 
• 
• 
Zero tolerance program:
focusing on behavior that
puts the life and integrity
of employees at risk
Lost Time Injury Frequency rate
Accidents per million man/hours
3.5
3.0
5,0
2.5
3,4
2.0
1.5
Safe Hour program: pre-planned one-hour walk
1.0
twice a week by top and middle management to
0.5
hold safety conversations with mill employees
0.0
3.2
3.0
3,7
3,2
2.2
3
2.7
2.5
2,2
2011
2012
2013
2014
2,7
2015
Completion of OHSAS 18001 and ISO 14000
certification for all sites, aiming to be a globallycertified company by end-2016
Tenaris
April 20, 2016
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Investing in Our People
• 
Corporate university to fuel Tenaris’s competitive
advantage through high quality training and
strategic partnerships with the line
• 
Personnel employed by country
21,740 employees
Dec. 2015
54 hours of training per salaried employee and
47 hours of training (excluding On the Job
Training) per hourly employee in 2015
• 
Global Trainee Program: 2-year program for
recent university graduates
• 
International, culturally diverse team
• 
Working environment that fosters creativity,
initiative, teamwork and professional growth
• 
Compensation system designed to ensure
external and internal quality and reward
performance
Tenaris
Others
7%
USA
10%
Argentina
25%
Romania
7%
Brazil
9%
Mexico
23%
Japan
2%
Italy
9%
Canada 3%
Colombia 3%
Indonesia
2%
April 20, 2016
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Community Development
• 
Conviction that industry contributes to
lasting and equitable economic growth
• 
Working together with local authorities and
non-governmental organizations to
promote and obtain support for the
company’s industrial values within the local
Investment in Community programs
US $11.9 million
2015
Social inclusion and
sustainability
6%
Health
1%
communities
• 
Programs include Roberto Rocca
Education
57%
Education Program, Technical Education
Support, Merit Awards, Roberto Rocca
Technical School, AfterSchool Program,
Volunteers in Action, Latin American Film
Culture
36%
Festivals and Toni El Suizo's global bridge
building activities, among others
Tenaris
April 20, 2016
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Integrity and Transparency
• 
Code of Conduct applicable to all
employees
• 
Guiding principles of integrity and
transparency for relations between
employees, suppliers, customers
and third parties
• 
Transparency line open for employees,
suppliers, customers and shareholders
• 
Rigorous international standards for
corporate governance, financial reporting
and information disclosure
Tenaris
April 20, 2016
34
Business Conduct Compliance
• 
Comprehensive Business Conduct Compliance
Program held by a compliance officer (BCCO)
and implemented by top management
• 
Risk assessment to identify and prevent
compliance risks across the organization
• 
Integrity risk evaluation of third parties to qualify
and certify their credentials and reputation
• 
Regular in-person and online digital training for all
employees and third parties
• 
Monitoring to verify implementation of anti-bribery
regulations
• 
Ethics, transparency and open communications
throughout our relations are core values for Tenaris
and of equal importance as other business and
essential company matters
Tenaris
April 20, 2016
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Tenaris
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