LEADER IN PREMIUM TUBULAR SOLUTIONS 2018 Group presentation 2017 Financial year
WHO WE ARE? Présentation du Groupe 2016 2
SOLUTION-MAKERS The benchmark reference of tubular solutions for the energy sector and other applications that present the most demanding challenges The largest portfolio on our markets products and services for every segment, from standard to premium Close to our customers ~19,000 employees* 50 production facilities in more than 20 countries Highly innovative 6 advanced R&D and 4 connection test centers in France, Germany, Brazil and the U.S.A. A trusted partner helping our customers to meet their challenges in all areas of business, from technology to supply chain, value creation and local production * Permanent and temporary contracts 2018 Group presentation 3
A TRUSTED PARTNER 2,256kt 3,750m 2m Sales Volume Sales EBITDA Europe 15.8% North America 27.6% Asia & Middle East 31.3% REVENUE 2017 South America 16.3% Rest of the world 9% 2018 Group presentation 4
WHEREVER OUR CUSTOMERS NEED US VALLOUREC S NEW INDUSTRIAL FOOTPRINT FEATURES EQUIVALENT CAPACITIES IN FOUR REGIONS. EACH SERVES ITS MARKETS THROUGH ROUTES OPTIMIZED FOR COST AND TIME, FROM PRODUCTION TO DELIVERY. 2018 Group presentation 5
OUR BUSINESSES 68.5% OIL AND GAS (INCLUDING PETROCHEMICALS) 10.9% POWER GENERATION 20.6% INDUSTRY & OTHER 2018 Group presentation 6
OUR ACTIVITIES Présentation du Groupe 2016 7
AT THE HEART OF THE MOST COMPLEX INDUSTRIAL APPLICATIONS OIL AND GAS Premium tubes, connections and services for exploration and operation of oil and gas fields, including the most complex ones POWER GENERATION A wide range of tubes needed to build conventional and nuclear power plants INDUSTRY Hollow sections, seamless tubes and hollow bars for industrial markets: mechanical engineering, automotive and construction industries 2018 Group presentation 8
OIL & GAS ALL THE TUBES, FROM WELLS TO PROCESSING UNITS Exploration and production OCTG*: casing, tubing and VAM premium connections Drill pipes Risers Services Accessories Transport for oil and gas Offshore and onshore line pipes Welding solutions and services for offshore and onshore projects Tubes for umbilicals Premium welded stainless steel tubes with high-performance technical characteristics Hydrocarbon processing Pipe and fittings for industrial fluid and hydrocarbon processing industry THE MOST RELIABLE SOLUTIONS FOR EXTREME CONDITIONS * Oil Country Tubular Goods 2018 Group presentation 9
OIL & GAS OCTG PREMIUM TUBULAR SOLUTIONS FOR ALL APPLICATIONS Deep wells Corrosive environments Deviated and horizontal wells HP/HT (High pressure /High temperature) Offshore Shale Gas Arctic Puits à grande portée HP/HT Deep Well VAM SG VAM EDGE SF VAM 21 HT Low Temp Grades CLEANWELL Technology VAM HTF- NR VAM HTTC VAM HP VAM 21 VAM 21 Expandable Salt Dome Drilling products Sour Service Conventional Advanced VAM MUST Hydroclean, Sour Service Grades VAM TOP VAM 21 High Collapse Grades VAM Express VM 125 SS PREMIUM SOLUTIONS TO ACCESS INCREASINGLY COMPLEX DEPOSITS * Oil Country Tubular Goods 2018 Group presentation 10
OIL & GAS FOCUS ON OUR OFFER FOR PLATFORMS 9 6 1 Drill pipe 2 Tool joint 3 Casing 1 3 4 7 8 4 Tubing 5 Connection 6 Production riser 2 5 7 Flowline 8 Umbilicals 9 Serimax welding solutions Platform during drilling process Platform during production process A WIDE RANGE OF PRODUCTS AND SERVICES FOR OFFSHORE AND ONSHORE PLATFORMS 2018 Group presentation 11
OIL & GAS SUPPORTING CUSTOMERS WITH HIGH VALUE ADDED SOLUTIONS EDUCATION REPAIR SERVICES WELL DESIGN FIELD SERVICES PRODUCTION TECHNICAL SUPPORT ACCESSORIES MANAGEMENT PROCUREMENT & DELIVERY WELL COORDINATION STOCK MANAGEMENT FROM TECHNICAL SUPPORT TO SUPPLY CHAIN MANAGEMENT AND FIELD SERVICE 2018 Group presentation 12
POWER GENERATION THE WORLD S BROADEST PORTFOLIO OF SEAMLESS TUBES FOR POWER PLANTS Market leader in conventional thermal and nuclear power plants with a complete range of tubes Seamless carbon and alloy steel tubes Seamless nickel-alloy tubes Services Premium supplier Integrated production process for steel tubes Complete offer of tubular products Strong technological leadership Fully engaged in Enhancing efficiency and reliability of all type of power plant Reducing CO 2 emissions of conventional power plant (supercritical and ultrasupercritical) Increasing level of safety of existing and new build nuclear reactor 2018 Group presentation 13
INDUSTRY LIGHT-WEIGHT, HIGH-STRENGTH FOR A WIDE RANGE OF APPLICATIONS Hollow sections, tubes and hollow bars for industrial markets: Mechanical engineering Cranes, hydraulic cylinders, agricultural machinery, OCTG mechanicals parts, etc. Automotive All types of vehicles, both light or heavy Construction Bridges, stadiums, offshore jack-up platforms, airport terminals, exhibition halls, etc. Steel grades suited to a wide range of applications 2018 Group presentation 14
PARTNERING WITH OUR CUSTOMERS TO MEET ALL THEIR CHALLENGES OIL & GAS POWER GENERATION INDUSTRY 2018 Group presentation 15
OUR ASSETS AND COMMITMENTS Présentation du Groupe 2016 16
SAFETY OUR FIRST PRIORITY Vallourec Drilling Products France won the 2016 Global Safety Award The total number of recordable accidents declined in 2016. We even outpaced our target, even though, for the first time in 2016 our safety objectives included subcontractors' activity in our plants. Safety Day 2017 Jean-Pierre Michel The 8 Golden Rules 1. Safety attitude 2. Traffic of engines & pedestrians 3. Lifting of loads 4. Hand tools 5. Working at heights 6. Confined spaces 7. Energy management/loto* 8. Health protection * LOTO = Lock Out Tag Out 2018 Group presentation 17
SAFETY A CONTINUOUS IMPROVEMENT PROGRAM TRIR 2017* Accident frequency rate with and without lost time 3.13 SEVERITY RATE 2017 0.045 LTIR 2017* Accident frequency rate with lost time 1.24 2018 objectives* LTIR: 1.2 TRIR: 2.8 0 Accidents: The ultimate objective * Considering the Group s employees, temporary staff and subcontractors 2018 Group presentation 18
STRONG INNOVATION CULTURE SERVING CUSTOMERS Maintaining our technological leadership and anticipating our customers needs Providing innovative solutions and products, improving manufacturing processes Key technological challenges: OIL & GAS: responding to the increasing complexity of oil and gas reservoirs and transport (onshore and offshore) POWER GENERATION: contributing to the improvement of power plant efficiency and extending their lifespan INDUSTRY: reducing the weight of mechanical engines, designing lighter structures 2018 Group presentation 19
AT THE FOREFRONT OF INNOVATION 500 researchers and technicians 6 research centers 16 new patents filed and 4 connection test centers 60 million devoted to R&D in 2016 2018 Group presentation 20
A STRONG COMMITMENT TO ENVIRONMENTAL RESPONSIBILITY Respect our environment and protect biodiversity Limit the use of natural resources and implement clean and safe technologies Preventing all pollution Reducing water consumption Recovering waste Reducing disturbances Improve the energy efficiency of our equipments and reduce the carbon emissions of our production processes 4 indices SBF 120, Next 150, Ethibel Sustainability Index (ESI) 2018 Group presentation 21
ENVIRONMENTAL RESPONSIBILITY KEY FIGURES* 40% of energy consumed from renewable sources 94.4% of waste recycled 89% of production from ISO 14001 certified sites 53% of steel produced from recycled scrap 38% of production from ISO 50001 certified sites *2016 figures 2018 Group presentation 22
THE MEN AND WOMEN OF VALLOUREC: PASSIONATE AND COMMITTED* The expertise and diversity of our employees are key to Vallourec s success Respect, fairness and skills development are at the heart of our human resources philosophy Vallourec University is open to all employees The Experts program builds loyalty among employees with specialized knowledge in key professions such as metallurgy and rolling Women@Vallourec is a network open to all the women and men in the company 506,459 HOURS OF TRAINING 3.5% OF THE CAPITAL HELD BY EMPLOYEES 11% OF WOMEN MAKE UP OVERALL WORKFORCE AND 22% OF ITS MANAGERS *2016 figures 2018 Group presentation 23
www.vallourec.com Figures and 28/02/2018 data: 2017 financial year CHARTE POWERPOINT Présentation HAVAS du Groupe PARIS 2016 POUR VALLOUREC 24