Q1 2022 Results Investor presentation

May 19, 2022

18 May, 2022 1

LEGAL DISCLAIMER

Forward-Looking Statements

This presentation may include forward-looking statements. These forward-looking statements can be identified by the use of forward-looking terminology, including the terms as "believe", "expect", "anticipate", "may", "assume", "plan", "intend", "will", "should", "estimate", "risk" and or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts and include statements regarding the Company's intentions, beliefs or current expectations concerning, among other things, Vallourec's results of operations, financial condition, liquidity, prospects, growth, strategies and the industries in which they operate. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. These risks include those developed or identified in the public documents filed by Vallourec with the French Financial Markets Authority (Autorité des marches financiers, or "AMF"), including those listed in the "Risk Factors" section of the Registration Document filed with the AMF on April 19, 2022, under filing number n° D.22-0305. Readers are cautioned that forward-looking statements are not guarantees of future performance and that Vallourec's or any of its affiliates' actual results of operations, financial condition and liquidity, and the development of the industries in which they operate may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, even if Vallourec's or any of its affiliates' results of operations, financial condition and liquidity, and the development of the industries in which they operate are consistent with the forward-looking statements contained in this presentation, those results or developments may not be indicative of results or developments in subsequent periods.

2

THE NEW MANAGEMENT TEAM FOR A "NEW VALLOUREC"

Philippe Guillemot

  • Chairman and Chief Executive Officer
    • Joined March 2022
    • Strong Industry and transformation background
    • Prior positions included CEO at Elior Group, COO at Alcatel Lucent, Chairman & CEO at Areva T&D

Sascha Bibert

  • Chief Financial Officer
    • Joined April 2022
    • Energy and capital markets background
    • Prior positions included CFO of Uniper, Düsseldorf and CFO of EnerjiSA, Istanbul

A new management team to accelerate Vallourec's transformation

Increase focus and commitment to energy transition opportunities

3

FY 2022 EBITDA NOW EXPECTED TO BE SIGNIFICANTLY ABOVE 2021

Q1 2022 results in

line with

expectations

  • 395 kt shipped, up 10% year-over- year
  • €916 million revenue, a 30% year-over-year led by North America
  • €45m reported EBITDA negatively impacted by the iron ore mine shutdown; normalized level of ~€130m
  • €(230)m Free Cash Flow impacted by €(217)m working capital build-up reflecting higher forward volume expectations and raw material price increases

~€130m

€80m

€45m

Q1 2021 EBITDA

Q1 2022 normalized*

EBITDA

Secular story: long term industry fundamentals

Tight OCTG market

Strong market

dynamics

    • Global E&P capex projected to increase significantly for next 4 years
  • Drilling activity
    • Current rig count up 63% from Covid-trough
    • Substantially more upside as current count is only 78% of pre-Covid level
    • North America: very tight market, strong price environment
    • Middle East: high activity particularly in UAE and Iraq
    • Africa: strong development especially in North Africa
    • South America: solid market conditions
  • Favorable price evolution in inflationary environment

Outlook

  • FY 2022 EBITDA now expected to be significantly above 2021 despite Q1 impacted by mine shutdown**

Vallourec initiatives €230m of recurring EBITDA and €250m ongoing cash up-lift

* Normalized predominantly for operation of iron ore mine

** Refer to slide 20 for assumptions underlying outlook

4

CREATE A "NEW VALLOUREC"

Initial CEO observations

  • Strongholds
    • Deep customer relationships
    • Global reach with market leading products
    • Strong engineering culture
    • Expertise beyond historical tubular business
  • Opportunities
    • Increase low-cost manufacturing base
    • Entrepreneurial approach to be reshaped to focus on value not volume
    • Accelerate cultural change to adapt to fast evolving market

New dynamic

  • Accelerate strategy execution
    • Lower fixed costs and substantially lower break-even point
    • Invest into energy transition
    • Build on company's strong existing ESG credentials
  • Strengthen performance-based culture

Next steps

  • Launch of closure process for German plants
  • Refocus European plants to support new global strategy
  • Significant reduction of overhead to mirror new industrial footprint

Focus on value not volume, culture of continuous improvement €230m EBITDA improvement (+€100m compared to November 2021 announcement)

5

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Vallourec SA published this content on 19 May 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 May 2022 07:51:08 UTC.