Investor Presentaiton
IPSCO Sale
Key highlights of the Transaction
22 Mar
2019
Stock Purchase Agreement signed with Tenaris
US$1,209m agreed aggregate cash-free, debt-free price
18 Dec
2019
The U.S. Department of justice approved Tenaris's
acquisition of IPSCO from TMK
2 Jan
2020
Transaction successfully closed
The Americas segment key operating and financial
indicators (a)
TMK
(US$m)
2016
2017
2018
2019
Pipe sales (kt)
282
673
804
520
Revenue
368
989
1,349
889
Adj. EBITDA (b)
(72)
114
164
30
Margin (%)
neg.
11.5%
12.1%
3.3%
Transaction benefits for TMK
Source: TMK data
In line with the strategy of international assets' monetization
Allows to reduce leverage and focus on the key markets: Russia
and Europe
Retaining TMK's position as one of the leading pipe producers
globally even post-IPSCO sale
Contributes to higher stability of cash flows and margins due to
reduced exposure to the U.S. market
Maintaining TMK's shipments to the North American market due to
signing the master distribution agreement with Tenaris, allowing
TMK to sell its OCTG and line pipe products to the USA and Canada
market for the next 6 years
Transaction benefits for TMK
■ The consideration received by TMK, following contractual
adjustments, amounted to $1,067 million (as estimates as of the
closing date)
The majority of the proceeds received by TMK from the sale of IPSCO
were used to repay TMK's indebtedness within 60 days from the date
when such proceeds were received
TMK continues focusing on deleveraging, aiming to achieve a long-
term target Net Debt to Adjusted EBITDA ratio of 2.5x or lower
Notes: (a) The Americas segment financial information disclosed in the IFRS statements mostly consisted of IPSCO's results
(b) Adjusted EBITDA represents profit/(loss) for the period excluding finance costs and finance income, income tax (benefit)/expense, depreciation and amortization, foreign exchange (gain)/loss, impairment/ (reversal of impairment) of non-current assets, movements in
allowances and provisions (except for provisions for bonuses), (gain)/loss on disposal of property, plant and equipment, (gain)/loss on changes in fair value of financial instruments, share of (profit)/loss of associates and other non-cash, non-recurring and unusual items
TMK
4View entire presentation