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Procurement Solutions Exiros

Exiros procures premium quality materials and services and Ternium, the steel of the at competitive prices for its customers worldwide. The Techint Group, and a portion of Techint & ’s multidisciplinary team counts with 500 employees Construction’s. Exiros consolidates as much as 8 billion dedicated to ensuring the successful execution of the many dollars in purchases within 14 countries. Fully owned by phases in the process that ends with the on-time delivery and Ternium, Exiros aims to provide effective of goods and services to its customers. procurement solutions for its as well as other Exiros is the Procurement Company of the Techint Group, third party companies. a diversified group operating worldwide Exiros’s global operations -based in Uruguay- are part of with annual sales of approximately 25.5 billion dollars. a trading unit that leverages on a consolidated demand and As a global service company, Exiros delivers procurement capitalizes solid market know-how in Europe, Middle East solutions on the basis of its extensive and market & Asia, North America, & Central America and the knowledge employing state-of-the-art technology. Southern Cone. Additionally, its ’s office Exiros centralizes the purchasing operations of Tenaris operates in The Netherlands.

Exiros around the world Commercial offices

The Netherlands Canada Amsterdam Sault St. Marie Romania Calgary Zalau Calarasi China USA Beijing Houston Italy Bergamo Qingdao Mexico Blytheville Puebla Louisville Nuevo Leon Colima Veracruz Villa Nueva Nigeria Onne Indonesia Cartagena Jakarta Manizales Sao Paulo Cilegon Medellin Rio Uruguay Montevideo Buenos Aires Campana San Nicolás

billion dollars in purchases 8 within 14 countries. Values

Quality, excellence and technological Efficiency and competitiveness development in services Close work with suppliers in the framework of a solid, long-term Exiros listens constantly to its customers in order to further relationship is fundamental in order to satisfy customer improve its services as well as invest in researching new expectations and needs. Through its Development and strategies, and rethinking processes and systems. Incentives Program, Exiros aims to motivate suppliers with potential by offering them training and support to manage Transparency with shareholders, customers, export processes and obtain international certificates. suppliers and employees The company’s commitment to open and transparent adminis- , at the heart of Exiros tration, based on respect for internal norms and regulations, is Exiros recruits highly talented people all over the world from cen- essential to establish mutual and helps to develop com- ters of academic excellence, ensuring the development of a work- petitive advantages. Exiros’ business is set on the base of law, force with a varied educational, cultural and geographical back- rules and regulations applying across its areas of responsibility. ground, sharing one vision and equal standards of competence.

Exiros’ mission is to offer integrated procurement services to the steel companies of the Techint Group as well as to third parties. Exiros combines the operational knowledge developed by the Group with applied technology to help its customers optimize their supply chains.

TenarisTamsa’s new rolling mill in Veracruz, Mexico. A step ahead in procurement services

Exiros offers procurement specialist expertise such as global Cutting-edge technology supply source analysis and advice for defining negotiation The Exiros IT team builds and maintains the technological strategies as well as for signing short, medium or long-term architecture that supports the complete purchasing process, . For steel industry customers, Exiros carries out an from the arrival of a purchase request by customers, to the in-depth analysis of their production processes to expand payment of products or services provided by suppliers. their supply options, optimize their mix of materials and re- Buyers share a unique technological platform globally, view the overall costs of supplies to enhance competitiveness. which includes a catalog of more than 600,000 items. Exiros also operates as a trader for steelmaking companies for Also, it allows measuring both buyers’ and suppliers’ certain key raw materials such as iron ore, HBI, and pig iron. performance, and offer continuous improvement of its service while operating with great transparency. Key Exiros areas

Exiros’ purchases are divided into five different areas, each specializing in certain products or services. The know-how accumulated in each one helps buyers to find exactly the right solution for their needs.

1 2 Raw Materials Production Tools and Supplies Exiros purchases raw materials on behalf steel products worldwide. Iron ore, scrap, The Production tools’ purchasing area specializes of its customers on the basis of a broad-based coke, coal, refractories and electrodes, in sourcing supplies such as rolling cylinders understanding of the products required and Ferro alloys are some of the materials and flat steel rolls used in the production which involves in-depth market analysis purchased by this department. process for both steelmaking and steel rolling. and research, products and suppliers’ development, and total cost analysis. Tenaris and Ternium mills use these materials to produce the steel required to manufacture

3 4 5 Materials, Repairs and Operations (MRO) Industrial Services Capital Expenditures The MRO area purchases materials which are not The Exiros Services Department administrates the Exiros Capital Expenditures procures the full directly related to production output yet are critical contracts for all services provided by third party range of equipment and tools required for special to this process, such as electrical, mechanical and companies. These include transportation, logistics, investments such as green or brown-field projects. hydro-pneumatic materials; metallic elements, engineering, manpower and industrial cleaning. This includes upgrading equipment or plants as pumps, valves, bearings and filters. well as providing project’s management services in order to help customers meet their objectives. TenarisTamsa, Veracruz, Mexico. Tenaris made an investment of 850 million dollars for the construction of a new state-of-the-art rolling mill that in 2011 made TenarisTamsa the company’s largest seamless tubes facility in the world. For this project, Exiros’ Turn Key Investments area, handled the procurement of more than 600 million dollars in services and goods for the customer.

A unique cultural mosaic

Exiros is a young, global, results-oriented company in a Flexibility and teamwork are at the base of Exiros’ Human process of steady expansion through continuous interac- Resources philosophy. Knowledge is transmitted at individual tion between its multidisciplinary teams working in a cross- level through ongoing training and shared globally using cultural environment. tools and trainings especially developed for this purpose. For Exiros, the professional and personal development of All the learning, instruction and training processes are subject its employees is of paramount importance. The high qual- to continuous improvement. ity of the services delivered by the company is the result of Employees are encouraged to make the most of exciting the combination of select talent and technology in a truly challenges to create new solutions based on the world class global . procurement know-how acquired within the Techint Group during the past 50 years. Keeping safety a top priority

For Exiros, Quality, Health, Safety and Environment The QHS&E management system developed by Exiros (QHS&E) management are among its top priorities as a is being implemented together with Tenaris and Ternium global corporate citizen. Most of suppliers hired by Exiros in line with an exacting agenda, which emphasizes interaction offer their services inside Tenaris and Ternium mills, thus with each customer’s safety teams. sharing the same Safety standards as these companies is Furthermore, in order to balance its competitive offers required while working together. with safer service performance, Exiros works to establish Exiros’ unique position enables the company to contribute to the and maintain long-term with its suppliers, including improvement of its suppliers’ HSE capabilities during the early detailed HSE improvement plans with strict controls, stages of the relationship with current and potential providers. timetables and targets.

Suppliers: The perfect environment for a company on the Exiros places a premium value on building long-lasting Companies wishing to find out more about becoming relationships with its suppliers and working with them as a supplier and operating with Exiros, should visit partners in order to meet customer expectations and needs. www.exiros.com. With a Suppliers’ Base of some 12,000 active vendors worldwide, Exiros is able to provide top quality goods and services to customers in even the most remote locations.

thousand active vendors* worldwide.

* Number of suppliers from whom Exiros purchased good or services 12 during 2013. Tailor made solutions for dynamic customers Tenaris Tenaris is a leading supplier of tubes and related services They provide casing and tubing, line pipe and various other for the world’s and certain other industrial mechanical and structural steel pipes for different applications: applications. Tenaris has an annual production capacity drilling, completion, production and transportation of oil of 6 million tons of tubular products. and gas; specialized industrial and automotive applications Tenaris consists of a network of manufacturing facilities, and power plant applications. service yards and commercial offices that span the globe. Their state-of- the-art manufacturing facilities are strategically located in major oil and gas markets, allowing them to serve their customers with a local or regional presence.

Ternium With production centers in key geographical locations, Ternium is a manufacturer of flat and long steel products Ternium offers high standards of quality and service. It has with production centers in Argentina, Mexico, Colombia, become a preferred supplier in its local markets and more Guatemala and the United States. It is one of the leading widely in the Americas where demand for its steel products steel companies in Latin America. is steadily increasing. Ternium manufactures a wide range of products through The combined professionalism and commitment of Ternium’s integrated processes that involve the extraction of iron ore strong workforce complement its considerable manufacturing from its own mines. These include semi-finished steel, flat- resources. The company reaches out to international markets rolled products, long products, welded tubes and beam, and through a broad network of service and distribution centers roll-formed products. across the continent.

Techint Engineering & Construction Techint Engineering & Construction provides Engineering, Techint E & C develops important projects in Latin Procurement, Construction, Operation and Maintenance America, Europe, USA, the Middle East and Africa, taking services for major projects, taking into deep account advantage of a common synergy and acting under the same the environment and quality of life of the neighboring values and quality standards. Thanks to its “multilocal” communities. presence, it has acquired a deep understanding of local In seven decades, the company has developed more then conditions as well as technical standards, laws and regula- 3.500 projects in 45 countries. It comprises more than tions in the regions where it operates. Employing state- 22.000 employees, including corporate, professional staff of-the-art systems and procedures, Techint E & C executes and subcontractors that perform 79 million annual man- projects using the technologies that best fit the needs hours of construction and engineering. of each client. Exiros procured 3.9 billion dollars in goods and services for Tenaris TenarisAlgomaTubes mill, Sault Sainte Marie, Canada. Pipes lay on the worldwide during 2013. cooling bed after undergoing the rolling process. Exiros procured some 158 million dollars for TenarisAlgomaTubes during 2013.

Exiros procured 4 billion dollars in goods and services for Ternium San Nicolas mill, Buenos Aires, Argentina. During 2013, Exiros procured in Argentina, Brazil, Colombia, Guatemala, Mexico, and the United States 1.7 billion dollars in goods and services for Ternium in Argentina. during 2013.

Exiros procured 143 million dollars in goods and services for Techint Sierra Gorda, Chile. During 2013, Exiros procured goods and services for Engineering & Construction during 2013. Techint Engineering & Construction in Argentina, Brazil, Chile, Ecuador, Mexico, Peru and Uruguay. Techint Group’s commitment to its supply chain

The Techint Program for small and middle-sized companies Since the very start, Techint has focused on boosting was born as a corporate initiative to support the growth of the competitiveness of its customers and suppliers by the Techint Group’s supply chain in Argentina and Mexico. promoting its production investments, increasing its It has become a way of institutionalizing cooperation and export capabilities and developing the domestic market. promoting association between the group, its customers Part of the ProPymes program involves a range of intern- and suppliers by providing the following: ships and trainee opportunities for young people to help • Industrial assistance the companies involved to leverage their know-how and • Training and Human Resources recruitment share management tools. • Commercial assistance • Financial assistance Learn more at: www.programapropymes.com • Institutional assistance

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