Slides
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Q3 2025 Results November 14, 2025
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2 Legal Disclaimer Forward-Looking Statements This presentation includes 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. 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. 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 March 27, 2025, under filing number n° D. 25-0192. Accordingly, readers of this document are cautioned against relying on these forward-looking statements. These forward-looking statements are made as of the date of this document. Vallourec disclaims any intention or obligation to complete, update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws and regulations. This presentation does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Vallourec. For further information, please refer to the website www.vallourec.com Other Information Future dividends and share buyback authorizations will be assessed on a yearly basis by the Board of Directors taking into account any relevant factor in the future, and will be subject to Shareholders’ approval. The Board of Directors will have discretion to employ share buybacks throughout the year, up to the limits authorized by the relevant resolution approved by the Annual General Meeting. Quarterly statements are unaudited and not subject to any review. Half-year financial statements were subject to limited review by statutory auditors. Unless otherwise specified, indicated variations are expressed in comparison with the same period of the previous year.
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3 Agenda Topic Speaker Slide 1 Executive Summary Philippe Guillemot, Chairman of the Board & Chief Executive Officer 4 2 Market Environment Philippe Guillemot, Chairman of the Board & Chief Executive Officer 7 3 Q3 2025 Results Review Sascha Bibert, Chief Financial Officer 11 4 Outlook & Key Takeaways Philippe Guillemot, Chairman of the Board & Chief Executive Officer 20 5 Appendices 23
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1 Executive Summary Philippe Guillemot Chairman of the Board & Chief Executive Officer
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5 Executive Summary Strong EBITDA and bottom-line, continued cash generationResults & Outlook • Q3 EBITDA in-line with guidance; strong net income of €134m aided by execution of strategic projects • Group EBITDA of €210m at midpoint of guidance; Group EBITDA margin 23%, the highest since Q1 2024 • Tubes EBITDA per tonne increased by more than 25% sequentially to €621 • Total cash generation of €67m, net debt reduced to €140m • Q4 Group EBITDA expected to range between €195m and €225m; second half EBITDA improvement confirmed Strong US customer demand; major contract win in BrazilCommercial & Operational • Vallourec’s domestic US footprint paying off: high level of customer demand reflected in recent bookings • Major commercial win: expanding market share in Brazil via new Long-Term Agreement (LTA) with Petrobras • Delays in specific customer orders weighing on International shipments in Q4 Please see “Definitions of Non-GAAP Financial Data” in the Appendix. Optimizing capital structure and shareholder returnsOther Highlights • Further capital structure streamlining with 10% redemption of 2032 senior notes • Announced warrant holders meeting to enable flexibility in capital return options in 2026
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6 Margin and Return Gap: Major Milestone Achieved Source: Company Filings. 1Return on invested capital defined as GAAP operating income less normalized taxes (assumed at a blended statutory rate), divi ded by shareholders’ equity, non-controlling interests, and all financial debt, lease debt, and derivative liabilities, less any short-term financial assets including cash & equivalents, short-term investments, and short-term derivative assets Margin Gap Closed in Third Quarter Tubes EBITDA per Tonne (Peer vs. Vallourec, $) Strong ROIC From Asset Streamlining Trailing 12 Month Return on Invested Capital1 Progress since New Vallourec plan announcement in May 2022 (10%) (5%) – 5% 10% 15% 20% 25% 30% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 Vallourec Peer (900) (800) (700) (600) (500) (400) (300) (200) (100) – 100 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 Quarterly Trailing 12 Months
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2 Market Environment Philippe Guillemot Chairman of the Board & Chief Executive Officer
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8 US OCTG Market: Stable Demand, OCTG Intensity Increasing Sources: Baker Hughes, OCTG Situation Report Q4 Oil Drilling Steady, Gas Momentum Continues Rig Count 0 25 50 75 100 125 150 0 100 200 300 400 500 600 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Oil (L Axis) Gas (R Axis) OCTG Consumption per Rig Continuing to Increase 4 5 6 7 8 9 10 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Annualized US OCTG Consumption (ktonnes) per Horizontal Rig
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9 US OCTG Market: Slowing Imports, Pricing Stable at Healthy Level Sources: PipeLogix, US Department of Commerce. “Major Welded Importers” include Korea, Taiwan, Vietnam and Turkey. September data is incomplete due to US government shutdown. Imports To Decrease Due to Higher Tariffs Monthly OCTG Imports (Thousand Tonnes) Seamless Market Prices Stable in Q3 Seamless OCTG Prices ($ / Tonne) – 50 100 150 200 250 Jan-24 May-24 Sep-24 Jan-25 May-25 Sep-25 All Others Major Welded Importers 2,514 2,263 2,122 2,233 2,395 2,509 2,553 2,551 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Oct-25
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10 International OCTG Market: Varying Trends Across Key Markets Sources: Baker Hughes, RigLogix, Rystad Energy. OCTG pricing reflects average price in period for L80 tubes (Premium) in Jebel Ali (Middle East) and North S ea. Selective Moderations in Drilling Activity Indexed Rig Count (2024 Average = 100) Diverging Regional Pricing Trends Seamless OCTG Price ($ / Tonne) 2,567 2,500 2,417 2,358 2,233 2,150 2,050 2,000 2,750 2,767 2,800 2,833 2,850 2,817 2,750 2,700 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Oct-25 Middle East North Sea 75 80 85 90 95 100 105 110 115 120 125 Jan-24 Apr-24 Jul-24 Oct-24 Jan-25 Apr-25 Jul-25 Oct-25 Middle East Onshore Middle East Offshore Other International Onshore Other International Offshore
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3 Q3 2025 Results Review Sascha Bibert Chief Financial Officer
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12 Execution Track Record Group EBITDA Margin (%) Total Cash Generation (€m) Net Working Capital Days Net Cash (Debt) (€b) – 10% 20% 30% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 (240)(190) (93) 323 151 118 150 149 101 44 136 253 104 57 67 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 (1.2) (1.4) (1.5) (1.1) (1.0) (0.9) (0.7) (0.6) (0.5) (0.4) (0.2) 0.0 0.1 (0.2) (0.1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 0.37b shareholder return 108 95 99 86 50 75 100 125 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025
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13 Key Group Figures Revenues € Million 894 863 911 Q3 2024 Q2 2025 Q3 2025 Adjusted Free Cash Flow € Million 189 88 69 Q3 2024 Q2 2025 Q3 2025 EBITDA € Million 168 187 210 Q3 2024 Q2 2025 Q3 2025 Net Cash (Debt)* € Million (240) (201) (140) Q3 2024 Q2 2025 Q3 2025 * Including Serimax accounted as assets & liabilities held for sale in Q2 2025 Please see “Definitions of Non-GAAP Financial Data” in the Appendix Guidance
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14 Tubes Production and Revenue Details Thousand Tonnes Volume Sold € / Tonne 292 362 314 293 303 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Average Selling Price € Million Revenues Revenue Mix by Geography % of Revenues Revenue Mix by Market % of Revenues * Avg. FX rates over 1H25 applied to Q3 2025 metrics Please see “Definitions of Non-GAAP Financial Data” in the Appendix 2,888 2,710 2,910 2,610 2,807 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 842 981 912 764 850 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 39% 40% 17% 22% 16% 15% 28% 23% Q3 2024 Q3 2025 Rest of World South America Middle East North America 83% 81% 10% 10% 7% 8% Q3 2024 Q3 2025 Other Industry Oil & Gas and Petrochemicals
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15 Tubes Profitability EBITDA and EBITDA Margin € Million and % of Revenues 162 185 166 145 188 19% 19% 18% 19% 22% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 EBITDA per Tonne € / Tonne 556 511 528 494 621 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Please see “Definitions of Non-GAAP Financial Data” in the Appendix
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16 Mine & Forest Performance Production Sold Million Tonnes 1.3 1.6 1.6 Q3 2024 Q2 2025 Q3 2025 Revenues € Million 66 87 83 Q3 2024 Q2 2025 Q3 2025 Average Iron Ore Market Price1 $ / Tonne (Quarterly Average) 99 98 102 Q3 2024 Q2 2025 Q3 2025 EBITDA € Million and % of Revenues Please see “Definitions of Non-GAAP Financial Data” in the Appendix 1Market price refers to Platts 62% Fe CFR China Index 22 45 35 33% 52% 42% Q3 2024 Q2 2025 Q3 2025
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17 Group Net Income Analysis Net Income, Group Share (Q3 2025) € Million and % of Revenues 210 134 22 46 19 34 23% 15% EBITDA D&A Financial income (loss) Other Income tax Net income, Group share Net Income Evolution Net Income, Group Share (€ Million) (35) (415) 6 78 157 159 76 105 105 111 73 163 86 40 134 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 Please see “Definitions of Non-GAAP Financial Data” in the Appendix
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18 Cash Flow Analysis Q3 2025 Cash Flow Metrics € Million Cash Conversion Adjusted Operating Cash Flow Less Capex / EBITDA 210 170 69 67 61 EBITDA Adj. op. cash flow Adj. FCF Total cash generation (Increase) decrease in net debt Please see “Definitions of Non-GAAP Financial Data” in the Appendix 2022 adjusted free cash flow figures are treated “as reported” and do not reflect foreign exchange differences. 15% 30% 39% 43% 77% 44% 54% 66% 76% 31% 48% 49% 58% 38% 63% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025
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19 Debt and Liquidity Debt Evolution Net Cash (Debt) (€ Million)1 Liquidity Evolution 552 900 1,103 1,098 809 835 462 462 550 550 550 550 189 177 224 232 177 175 1,203 1,539 1,877 1,880 1,536 1,560 Y/E Y/E Y/E Q1 Q2 Q3 2022 2023 2024 2025 Cash and cash equivalents Available RCF Available ABL € Million 1 Includes approximately €7 million in cash held in Serimax in Q2 2025 that was accounted for in assets & liabilities held for sale Please see “Definitions of Non-GAAP Financial Data” in the Appendix (140) (911) (2,000) (1,500) (1,000) (500) – 500 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2022 2023 2024 2025 Net debt Gross debt
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4 Outlook & Key Takeaways Philippe Guillemot Chairman of the Board & Chief Executive Officer
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21 2025 Operational Outlook Fourth Quarter 2025 Full Year 2025 Tubes Volumes to increase slightly sequentially EBITDA per tonne to remain broadly similar to Q3 Volumes to increase slightly in H2 vs. H1 EBITDA per tonne to improve in H2 vs. H1 due to improvements in price and mix Mine & Forest Production sold to be around 1.4mt Production sold to be around 6.2mt Group EBITDA to range between €195m and €225m EBITDA to range between €799m and €829m Please see “Definitions of Non-GAAP Financial Data” in the Appendix
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22 Key Takeaways We remain focused on improving profitability and return on invested capital as we drive Vallourec towards operational excellence. Vallourec’s vertically-integrated US footprint is paying dividends with customer demand remaining very strong in the US. Shareholder return will consider 2025 total cash generation and outstanding warrants.3 2 1
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5 Appendices
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24 Key Performance Indicators Volume sold in thousand tonnes for Tubes and million tonnes for Mine & Forest. H&O = Holding & Other; Int = Intersegment Transactions. Values for percentage changes not shown where not meaningful. Please see “Definitions of Non-GAAP Financial Data” in the Appendix Quarterly Figures Year-to-Date Figures Abs. Chg. Calculations Q3 2025 Q2 2025 Q3 2024 QoQ chg. YoY chg. YTD 2025 YTD 2024 YoY chg. Volume sold 303 293 292 3% 4% 909 935 (3%) Revenues (€m) 850 764 842 11% 1% 2,527 2,805 (10%) Average Selling Price (€) 2,807 2,610 2,888 8% (3%) 2,779 3,001 (7%) EBITDA (€m) 188 145 162 30% 16% 498 592 (16%) EBITDA per Tonne (€) 621 494 556 26% 12% 548 633 (13%) Capex (€m) 25 19 25 30% 0% 77 93 (18%) Volume sold 1.6 1.6 1.3 (1%) 18% 4.8 4.1 16% Revenues (€m) 83 87 66 (5%) 26% 260 215 21% EBITDA (€m) 35 45 22 (22%) 59% 133 68 96% Capex (€m) 14 12 11 17% 25% 41 25 67% Revenues (€m) 32 65 50 (50%) (35%) 143 144 (0%) EBITDA (€m) (16) (5) (14) (227%) (15%) (31) (40) 24% Revenues (€m) (54) (53) (64) (3%) 15% (164) (195) 16% EBITDA (€m) 3 3 (2) – – 4 (1) – Revenues (€m) 911 863 894 6% 2% 2,766 2,969 (7%) EBITDA (€m) 210 187 168 12% 25% 604 618 (2%) Capex (€m) 39 32 36 22% 7% 121 121 (0%) TubesInt. H&O Mine & ForestTotal
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25 Tubes Revenue Breakdown Revenue by Market Please see “Definitions of Non-GAAP Financial Data” in the Appendix Revenue by Region Quarterly Figures Year-to-Date Figures in € million Q3 2025 Q2 2025 Q3 2024 QoQ % chg. YoY % chg. YTD 2025 YTD 2024 YoY % chg. North America 336 359 331 (6%) 2% 1,080 1,164 (7%) Middle East 183 137 143 34% 28% 514 551 (7%) South America 131 112 136 17% (4%) 366 458 (20%) Asia 102 80 108 27% (5%) 302 284 6% Europe 51 30 84 72% (40%) 117 184 (36%) Rest of World 46 47 40 (1%) 16% 148 164 (10%) Total Tubes 850 764 842 11% 1% 2,527 2,805 (10%) Quarterly Figures Year-to-Date Figures in € million Q3 2025 Q2 2025 Q3 2024 QoQ % chg. YoY % chg. YoY % chg. at Const. FX YTD 2025 YTD 2024 YoY % chg. YoY % chg. at Const. FX Oil & Gas and Petrochemicals 693 629 698 10% (1%) 5% 2,102 2,338 (10%) (7%) Industry 89 76 85 17% 4% 9% 240 304 (21%) (13%) Other 69 59 60 17% 15% 20% 185 163 13% 18% Total Tubes 850 764 842 11% 1% 7% 2,527 2,805 (10%) (6%)
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26 Income Statement Please see “Definitions of Non-GAAP Financial Data” in the Appendix Quarterly Figures Year-to-Date Figures € million, unless noted Q3 2025 Q2 2025 Q3 2024 QoQ chg. YoY chg. YTD 2025 YTD 2024 YoY chg. Revenues 911 863 894 48 17 2,766 2,969 (204) Cost of sales (644) (577) (633) (66) (11) (1,919) (2,076) 157 Industrial margin 268 286 262 (19) 6 846 893 (47) (as a % of revenue) 29.4% 33.2% 29.3% (3.8) pp 0.1 pp 30.6% 30.1% 0.5 pp Selling, general and administrative expenses (82) (92) (84) 10 2 (256) (263) 7 (as a % of revenue) (9.0%) (10.7%) (9.4%) 1.6 pp 0.4 pp (9.2%) (8.8%) (0.4) pp Other 25 (7) (9) 32 34 14 (13) 26 EBITDA 210 187 168 23 42 604 618 (13) (as a % of revenue) 23.1% 21.7% 18.8% 1.4 pp 4.2 pp 21.9% 20.8% 1.0 pp Depreciation of industrial assets (38) (38) (46) 1 8 (117) (135) 18 Amortization and other depreciation (8) (10) (8) 2 0 (28) (25) (3) Impairment of assets 0 0 (5) (0) 5 (1) 1 (2) Asset disposals, restructuring costs and non-recurring items 28 (36) 15 64 13 (16) (62) 45 Operating income (loss) 192 103 124 89 68 442 397 45 Financial income (loss) (19) (5) (19) (13) (0) (34) 18 (52) Pre-tax income (loss) 173 97 105 76 68 409 415 (6) Income tax (34) (52) (28) 18 (6) (130) (114) (16) Share in net income (loss) of equity affiliates (0) (0) (0) 0 (0) (1) 1 (2) Net income 139 45 78 94 62 278 302 (24) Attributable to non-controlling interests 6 6 5 0 0 19 13 6 Net income, Group share 134 40 73 94 61 259 289 (30) Basic earnings per share (€) 0.57 0.17 0.32 0.40 0.25 1.11 1.26 (0.15) Diluted earnings per share (€) 0.53 0.16 0.30 0.37 0.23 1.04 1.19 (0.15) Basic shares outstanding (millions) 234 234 230 0 4 234 230 4 Diluted shares outstanding (millions) 250 249 244 1 7 250 243 6
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27 Balance Sheet Please see “Definitions of Non-GAAP Financial Data” in the Appendix Assets 30-Sep-25 31-Dec-24 Liabilities 30-Sep-25 31-Dec-24 Equity - Group share 2,249 2,512 Net intangible assets 27 33 Non-controlling interests 85 89 Goodwill 46 34 Total equity 2,334 2,601 Net property, plant and equipment 1,715 1,842 Bank loans and other borrowings 810 962 Biological assets 70 61 Lease debt 40 41 Equity affiliates 14 17 Employee benefit commitments 59 75 Other non-current assets 102 150 Deferred taxes 80 84 Deferred taxes 162 180 Provisions and other long-term liabilities 278 266 Total non-current assets 2,136 2,317 Total non-current liabilities 1,266 1,428 Inventories 1,111 1,170 Provisions 55 83 Trade and other receivables 479 671 Overdraft & other short-term borrowings 102 141 Derivatives - assets 120 36 Lease debt 19 26 Other current assets 218 234 Trade payables 702 795 Derivatives - liabilities 142 132 Other current liabilities 279 325 Total current assets 2,763 3,213 Total current liabilities 1,299 1,502 Assets held for sale and discontinued operations (0) 1 Liabilities held for sale and discontinued operations (0) – Total assets 4,899 5,531 Total equity and liabilities 4,899 5,531 Cash and cash equivalents 835 1,103
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28 Cash Flow Summary Please see “Definitions of Non-GAAP Financial Data” in the Appendix Quarterly Figures Year-to-Date Figures In € million Q3 2025 Q2 2025 Q3 2024 QoQ chg. YoY chg. YTD 2025 YTD 2024 YoY chg. EBITDA 210 187 168 23 42 604 618 (13) Non-cash items in EBITDA (7) (20) (14) 13 7 (33) (5) (28) Financial cash out 3 (27) (17) 29 19 (21) (77) 56 Tax payments (36) (38) (20) 2 (16) (107) (89) (19) Adjusted operating cash flow 170 103 117 67 53 444 448 (4) Change in working capital (43) 43 102 (86) (145) 78 109 (31) Gross capital expenditure (39) (32) (36) (7) (3) (121) (121) 1 Foreign exchange differences (20) (26) 6 6 (25) (77) 8 (85) Adjusted free cash flow 69 88 189 (20) (120) 325 444 (119) Restructuring charges & non-recurring items (29) (34) (73) 6 44 (117) (211) 93 Asset disposals & other cash items 27 3 19 24 8 21 48 (27) Total cash generation 67 57 136 10 (68) 228 281 (53) Shareholder returns – (370) – 370 – (370) – (370) Total cash generation after shareholder returns 67 (313) 136 380 (68) (142) 281 (423) Non-cash adjustments to net debt (6) 0 (11) (7) 5 (19) 49 (69) (Increase) decrease in net debt 61 (313) 124 374 (64) (161) 331 (492)
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29 Financial Indebtedness and Liquidity (a) Refers to ACC (Advances on Foreign Exchange Contract) and ACE (Advances on Export Shipment Documents) program in Brazil (b) Gross debt as of December 31, 2024 included a €77 million overdraft that was repaid in early January. (c) Vallourec entered into 4-year cross-currency swaps (CCS) to hedge the EUR/USD currency exposure related to its USD 2032 Senior Notes. The fair value of the CCS related to the EUR/USD hedging of the principal of the notes is consequently included in the net debt definition. (a) As of December 31, 2024, cash, net of overdrafts was €1,024 million. The €77 million overdraft reflected in the year end 2024 figures was repaid in early January. (b) This $350m committed ABL is subject to a borrowing base calculation based on eligible accounts receivable and inventories, among other items. The borrowing base at September 30th 2025 was approximately $218m. Availability is shown net of approximately $13m of letters of credit and other items. Please see “Definitions of Non-GAAP Financial Data” in the Appendix Financial Indebtedness Liquidity In € million 30-Sep-25 31-Dec-24 Cash and cash equivalents (a) 835 1,103 Available RCF 550 550 Available ABL (b) 175 224 Total liquidity 1,560 1,877 In € million 30-Sep-25 31-Dec-24 7.500% 8-year USD Senior Notes due 2032 614 771 1.837% PGE due 2027 180 176 ACC ACE (a) 72 39 Other (b) 44 117 Total gross financial indebtedness 911 1,103 Less: cash and cash equivalents 835 1,103 Plus: fair value of cross currency swap (c) 63 (21) Total net financial indebtedness 140 (21)
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30 Adjusted free cash flow is defined as adjusted operating cash flow +/- change in operating working capital and gross capital expenditures. It corresponds to net cash used in operating activities less restructuring and non-recurring items +/- gross capital expenditure. Adjusted operating cash flow is defined as EBITDA adjusted for non-cash benefits and expenses, financial cash out and tax payments. Asset disposals and other cash items includes cash inflows from asset sales as well as other investing and financing cash flows. Change in working capital refers to the change in the operating working capital requirement. Data at constant exchange rates: The data presented “at constant exchange rates” is calculated by eliminating the translation effect into euros for the revenue of the Group’s entities whose functional currency is not the euro. The translation effect is eliminated by applying Year N-1 exchange rates to Year N revenue of the contemplated entities. EBITDA: Earnings Before Interest, Taxes, Depreciation and Amortization is calculated by taking operating income (loss) before depreciation and amortization, and excluding certain operating revenues and expenses that are unusual in nature or occur rarely, such as: • impairment of goodwill and non-current assets as determined within the scope of impairment tests carried out in accordance with IAS 36; • significant restructuring expenses, particularly resulting from headcount reorganization measures, in respect of major events or decisions; • capital gains or losses on disposals; • income and expenses resulting from major litigation, significant roll-outs or capital transactions (e.g., costs of integrating a new activity). Financial cash out includes interest payments on financial and lease debt, interest income and other financial costs. Foreign exchange differences reconciles select items in the cash flow statement to their effective cash impact. This effect is related to intra-group financing, including related FX hedging. Definitions of Non-GAAP Financial Data and Concepts
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31 Definitions of Non-GAAP Financial Data and Concepts Gross capital expenditure: gross capital expenditure is defined as the sum of cash outflows for acquisitions of property, plant and equipment and intangible assets and cash outflows for acquisitions of biological assets. (Increase) decrease in net debt (alternatively, “change in net debt”) is defined as total cash generation +/- non-cash adjustments to net debt. Industrial margin: The industrial margin is defined as the difference between revenue and cost of sales (i.e. after allocation of industrial variable costs and industrial fixed costs), before depreciation. Lease debt is defined as the present value of unavoidable future lease payments. Midcycle or normalized earnings and cash flow simulations and related assumptions do NOT represent guidance, a forecast, a target or an outlook of Vallourec for any particular financial year, but aim to represent an abstract average across cycles and across different circumstances to illustrate, in a volatile and unpredictable environment, the theoretical functioning of the New Vallourec. Conceptually these should be understood as approximate levels to be observed on average, over a long period of time and through various economic and commodity price environments. Net debt: Consolidated net debt (or “net financial debt”) is defined as bank loans and other borrowings plus overdrafts and other short-term borrowings minus cash and cash equivalents plus the fair value of the cross-currency swaps related to the EUR/USD hedging of the principal of the $820 million 7.5% senior notes. Net debt excludes lease debt. Net working capital requirement is defined as working capital requirement net of provisions for inventories and trade receivables; net working capital requirement days are computed on an annualized quarterly sales basis.
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32 Definitions of Non-GAAP Financial Data and Concepts Non-cash adjustments to net debt includes non-cash foreign exchange impacts on debt balances, IFRS-defined fair value adjustments on debt balances, and other non-cash items. Non-cash items in EBITDA includes provisions and other non-cash items in EBITDA. Operating leverage defined as the sum of industrial fixed cost/tonne and SG&A/tonne divided by total cost per tonne Operating working capital requirement includes working capital requirement as well as other receivables and payables. Restructuring charges and non-recurring items consists primarily of the cash costs of executing the New Vallourec plan, including severance costs and other facility closure costs. Return on invested capital (ROIC): defined as GAAP operating income less normalized taxes (assumed at a blended statutory rate), divided by shareholders’ equity, non-controlling interests, and all financial debt, lease debt, and derivative liabilities, less any short-term financial assets including cash & equivalents, short- term investments, and short-term derivative assets. Total cash generation is defined as adjusted free cash flow +/- restructuring charges and non-recurring items and asset disposals & other cash items. It corresponds to net cash used in operating activities +/- gross capital expenditure and asset disposals & other cash items. Working capital requirement is defined as trade receivables plus inventories minus trade payables (excluding provisions).
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33 Share Information and Financial Calendar Share Information Euronext Paris ISIN code: FR0013506730 Ticker: VK USA: American Depositary Receipt (ADR) ISIN code: US92023R4074 Ticker: VLOWY Investor Relations Contact Email: Connor.Lynagh@vallourec.com Alternate: investor.relations@vallourec.com www.vallourec.com Financial Calendar • February 26, 2026: Publication of Fourth Quarter and Full-Year 2025 Results Upcoming Investor Events • November 17, 2025: Exane BNP Paribas Mid-Cap CEO Conference (Paris) • November 18, 2025: TD Cowen Energy Conference (New York) • December 9, 2025: CIC Forum (Paris) • December 12, 2025: Bernstein Investor Breakfast (Paris)