2012

2

Contents

� Overview and Strategy

� Financial Results

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 2011-2016 150 Mll Eur investment plan under execution

5

Business Lines

% of Sales*, 2012:

Seamless tubes Automotive Distribution

• Manufacture of Small and Medium size diameter Tubes

• TIER 1 supplier of tubular-shaped components and other autoparts such as suspension "links“

• Distribution of tubular products (carbon and alloy steel, copper, PPR ...), fittings, insulation and related products

• Manufacture of Large size diameter tubes

• Cold rolled seamless steel tubes

82% 9%8%

* Other businesses: 1% of sales

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Core Seamless Steel Tube Manufacturing Business

� Production sites located in the Basque Country (Nor thern Spain)

� Wide portfolio of products

� Production process vertically integrated

Tubos Reunidos Industrial

Manufacture of small and mid-size

diameter tubes

Productos Tubulares

Manufacture oflarge diameter

tubes• Diameter: 26.7 – 180 mm. (6-120mm

upon cold-drawn).

• Thickness: 2.6 – 19 mm.

• Carbon, alloyed and high alloy.

• Diameter: 190-558 mm.

• Thickness: 6.30 – 120 mm.

• Carbon, high alloy and stainless.

69% of sales 31% of sales

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Global Commercial Footprint

25 Agents

9 Delegations

Seamless Tube Business

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Sales in International Markets

% of Seamless Steel Tubes sales, €M% of Consolidated Sales, €M

� Historic Presence in International Markets

� Geographic Diversification

� 87% of Seamless Steel Tubes Sales in International Markets

� 54% of Seamless Steel Tubes Sales out of Europe

57% 57% 58% 63% 65% 69% 75% 78%

2005 2006 2007 2008 2009 2010 2011 2012

Spain International markets

3,3%

8,3%

15,9%

26,8%

33,4%

12,4%

5,0%

7,1%

14,1%

31,3%

29,7%

12,7%

0% 5% 10% 15% 20% 25% 30% 35% 40%

New Markets

Middle East

Far East

North America

Europe

Spain

2012 2011

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Energy Sector

OCTG (Oil Country

Tubular Goods)

Pressure Pipes Line Pipes

Oil & Gas: Drilling, Casing, Tubing

High -Pressure

&Temperature Service: Heaters,

Boilers, Heat exchangers

High Pressure, Fluid

Conduction

Oil & Gas: 44%

Power Generation: 23%

Petrochemicals: 16%

Other: 17%

Energy Sector: 83 % of sales

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Focus on Special Products and in niche segments

63 % of sales (2012)

LARGE DIAMETER TUBES IN HIGH ALLOY AND STAINLESS STEELS

Process pipes for power generation and petrochemicals in extreme conditions

TUBES OF HIGH COLLAPSE RESISTANCE

OCTG: unconventional E&P technologies

TUBES FOR HIGH PRESSURE – HIGH TEMPERATURE REQUIREMENTS

TUBES OF SPECIAL LENGTH: UP TO 27 METERS

HRSG power generation

Heat exchangers for termosolar plants

Critical and super critical boilers for power generation plants

DIVERSIFIED PORTFOLIO

22% 11%

5%25%

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Focus on Special Services: Flexibility

• Medium – size projects

• Spot Market

• Repairs

DELIBERY LEAD TIMES

ORDER SIZES

FINISHING REQUIREMENTS

SPECIAL DIAMETER, THICKNESS AND LENTH COMBINATIONS

FLEXIBILITY

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Strategic Lines and Positioning Target

Differentiation: large companies QUALITY + SPECIALI ZATION and FLEXIBILITY of our size

� Diversification

� Major consumer markets

� High growth markets

� R&D&I

� Special products: greatest growth and profitability

� Diversified portfolio of niche segments

� Differentiation in delivery lead times and order sizes: flexibility

� Efficient production processes

� Cost control

� Low leverage

Global Presence

Specialization in High Value-Added

Products Service Quality and Flexibility

Competitiveness and Financial

Strength

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Strategic Plan 2011-2016: Objectives & Achievements

1

2011 2012 2016

Focus on our Core Business:Seamless Steel Tubes

2012: Only 1 non core business

78%

61,7%

3,5%

90%

70%

10%

Energy Sector (% of sales, €)

Specialization (% of sales, €)

New markets (% of sales, €)

Investment Plan (% executed)

83%

63%

5%

2

3

4

5 2012: 25%, 2013: 50%

Increase margins vs volume

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€150M� 2012: 35 Mll Eur

Investment Plan 2012-2016

Goals:� To increase the volume of special products

manufactured

� To increase the range of special products

� To enter new markets through new products

� To consolidate leadership in high value-added niches

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Premium Products for the Energy Sector

� Larger and more efficient power generation facilities, with work cycles at higher pressure and temperature…

� Special steels with resistance to high pressures, temperatures and aggressive environments

� Larger diameters, thicknesses and lengths that maximise performance with lower assembly costs

Oil & Gas

PowerGeneration

TR R&D&I: Premium Products

� “Non-conventional” E&P: Directional Wells, Shale Gas, Off-shore, Arctic Grades,…

� High alloy / specific composition steels: more resistant to corrosion, pressure and temperature

� Special finishing processes: threads, coatings, upsetting

� New diameter / thickness combinations

Special pipes with more complex specifications

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Strengthen Presence in Current and New Markets

USA Europe

China/KoreaIndia

Middle East

Mexico

South America

Sub-Saharan

Africa

North Africa

Eastern Europe

Current Markets

New Markets

Financial Information

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Seamless Steel Tubes Sales*, €M Seamless Steel Tubes EBITDA*, €M

Seamless Steel Tubes EBIT*, €M Seamless Steel Tubes Net Profit*, €M

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2012: Seamless Steel Tubes Business

Sales, €M EBITDA, €M

� Reduction in sales volumes: demand affected in main markets, Europe and US (2nd

semester)

� EBITDA margin increase: better mix and competitiveness improvements

� Net Profit decrease : higher amortizations and financial expenses

Net Profit, €M

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Distribution Business: Reorganisation & Plan for Future

Reorganisation: � Terminate tertiary business, including currently associated structure and assets

Plan for the 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

� 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

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Consolidated Results 2012: Key Figures

� Impact of the new strategic definition of the distr ibution 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 margin improvement: 14.6% in 2012 vs. 13.2% in 2011

� Same level of net profit than in year 2011

Sales, € M Resultado Neto

Seamless Steel Tubes Automotive & Other

Distribution

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Consolidated Cash Flow 2012: Key Figures

� Positive cash generation affected by extraordinary credit tax payment of 20 Mll Eur in 2012

� Long-term financing structure, 89% of net financial debt in 2012, and 95% on 1T 2013

� Undrown credit facilities available for 64 Million Euros

11%

89%

Net DebtFinancial Structure

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Consolidated Income Statement 2012 (€K)

Consolidated Profit & Loss Account 1Q 2013 1Q 2012 201 2 2011

Net Sales 95.196 128.014 464.727 499.581

EBITDA 10.598 20.962 49.574 62.214

% / net sales 11,1% 16,4% 10,7% 12,5%

Amortization 6.985 6.601 26.606 21.210

EBIT 3.613 14.361 22.968 41.004

Net Financial Result -2.693 -3.007 -10.443 -9.403

Pre tax Profit 920 11.355 12.525 31.601

Taxes 2 -3.191 -1.477 -6.426

Net Profit before minorities 922 8.164 11.048 25.175

Discounted Operations 0 0 0 -341

Minority Interests 242 -44 -475 -399

Net Profit 1.164 8.120 10.573 24.435

Financial figures in the income statements for year 2011 and 2012 have been reformulated by reclassifying the distribution activity from "discontinued operations" and "held for sale" to "continuing operations", to allow them to be correctly compared with the financial data for year 2012.

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Consolidated Balance Sheet 2012 (€K)

Consolidated Balance Sheet 1Q 2013 2012 2011

Non Current Assets 400.986 404.268 382.549

Inventory and Accounts Receivables 214.844 220.148 235.650

Cash and Cash equivalents 64.255 51.295 64.169

Current Assets 279.099 271.443 299.819

Assets held for sale 10.922 11.240 11.499

Total Assets 691.007 686.951 693.867

Equity 244.543 243.588 238.326

Deferred Income 9.054 9.369 5.965

LT interest bearing debt 174.850 160.185 159.919

Other liabilities 69.684 66.489 61.526

Non current liabilities 244.534 226.674 221.445

ST interest bearing debt 73.255 71.019 66.162

Accounts payable and others 119.621 136.301 156.420

Current Liabilities 192.876 207.320 222.582

Liabilities from assets held for sale 0 0 5.549

Total liabilities 691.007 686.951 693.867

Net Financial Debt, Million Eur 184 180 164