Vallourec in 2014 2 Worldreginfo - Acd21f38-96C9-4D60-9799-3E388e20877c NEWS 2014

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Vallourec in 2014 2 Worldreginfo - Acd21f38-96C9-4D60-9799-3E388e20877c NEWS 2014 NEWS 2014 Vallourec Page 2 WHERE HISTORY IS BEING WRITTEN Page 16 in 2014 THE PURSUIT OF EXCELLENCE AND DIFFERENCE Page 24 THE ENERGY OF YOUR ACTIVITY REPORT CHALLENGES Page 34 WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c 2 NEWS 2014 8 VAM® CELEBRATES 50 YEARS OF SUCCESS! 10 OUTLOOK 12 VISION Interview with Philippe Crouzet, Chairman of the Management Board Message from Vivienne Cox, Chairman of the Supervisory Board THE WORLD OF VALLOUREC 16 WHERE HISTORY IS BEING WRITTEN Our three major markets Closer to our customers Focus Africa tomorrow THE VALLOUREC LABEL 24 THE PURSUIT OF EXCELLENCE AND DIFFERENCE Industrial excellence: premium across-the-board Commercial excellence: creating more value for our customers Corporate Social Responsibility: Vallourec’s commitments Focus Innovation every day THE VALLOUREC TEAM 34 THE ENERGY OF YOUR CHALLENGES Expert and proud to be part of Vallourec Safety: priority for one and all Focus Vallourec women 42 FINANCIALS Our governance Closer to our shareholders Financial results and responsible performance targets WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c NEWS 2014 NEWS 2014 Inauguration Inventory Vallourec Star recycles of Vallourec adjustments 99% of its water Saudi Arabia by major partners The Youngstown Manufacturers (Ohio) plant has set Association, earning In mid-2014, products. These up a state-of-the-art the 2014 Petrobras, a major events significantly water treatment Environmental customer of the impacted Vallourec’s facility that meets Management and Group in Brazil, order book and all recommendations Recycling Award. decided to performance in 2014, of the Steel significantly reduce but without its tube inventories. diminishing Large EAMEA zone confidence operators also in the long-term adjusted inventories attractiveness of Vallourec’s first the Group at the and deferred tenders these two markets. premium finishing heart of the world’s on premium plant for oil and gas leading oil-producing tubes in the Middle country. The unit is East, the Dammam dedicated to heat plant brings treatment of tubes Vallourec closer and threading to its customer, of the VAM® line of Up to the Kingdom’s premium connections national oil company, and has an annual Saudi Aramco, capacity of 100,000 and positions metric tons. 5,000 40 years of expertise Zero lost-time accidents meters serving the nuclear in 4 years: Vallourec Mexico the depth at which the industry wins the 2014 Vallourec reservoirs of the Kaombo Safety Award. project are operated offshore Vallourec has been Valinox Nucléaire from Angola using Vallourec’s a partner of the has produced over French nuclear 40,000 kilometers tubular solutions. industry since its of tubes, Vallourec Drilling beginning and is the the equivalent only company able of the Earth’s Products develops its to supply all of the circumference. activities in Argentina tubes needed by Today, 80% of a nuclear plant, nuclear power plants Six unconventional seeking to make in all sizes and all worldwide are drilling assemblies the country energy steel grades. Since equipped with were allocated to independent by 1974, subsidiary Vallourec tubes. Vallourec Drilling 2030. This should Products, drive the establishing the development of company’s position shale gas resources New Award for CSR in the developing in Argentina, which market. The ranks third in the commitments Argentine world behind the Vallourec was again Responsibility government is U.S. and China. Iconic chrome recognized for its by Agefi at good practices the 2014 Corporate of motorcycle in Corporate Social Governance Awards. 4 suppliers were recognized manufacturer Harley with 2014 Vallourec Supplier's Davidson supplied Awards for their performance by Vallourec Vallourec qualified in the categories: to equip the new Chinese “Competitiveness,” “Quality Vallourec Tubos do 338,000 meters Brasil will supply of tubes will be used ACP1000 standard reactor, and deadlines,” “Innovation” 552 metric tons to mass produce confirming its reputation for and “CSR.” Vallourec places of seamless cold engine and rear technical excellence in the a high priority on working drawn tubes protection bars, Chinese market, which exclusively for as well as spare with a network Harley Davidson. parts for fans of the represents half of the global of responsible suppliers. No less than legendary brand. nuclear market. Vallourec in 2014 2 WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c NEWS 2014 Mobile and adaptable in height, jack-up rigs enable exploration and drilling of deposits in shallow waters (up to 200 meters). Between 1,300 and 2,500 metric tons of tubes are required to equip this type of platform. With demand growing worldwide, Vallourec quality is making the difference in an intensely competitive market. In 18 months, the Group booked 50,000 metric tons of orders. Its Oceanfit® steel grade is designed for extreme temperatures of -50 °C / -60 °C and Arctic waters, opening new possibilities. Activity report 3 WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c NEWS 2014 NEWS 2014 Vallourec strengthens its VAM® connections testing capacities worldwide Test and certify excellence: that’s Vallourec’s A new ultramodern testing station at the Aulnoye- commitment and the key to its reputation. Aymeries center doubles testing capacities. The Group has the resources to offer increasingly Here too, the tests performed involve make-up sophisticated connections to meet the most and break-out operations, simulation of combined stringent regulations and new customer loads (tension or compression, interior and exterior requirements. A tour of the world of Vallourec. pressure), deformation, resistance to high temperatures and fatigue. The Group has three full-scale VAM® connections test The new center being built in Brazil will also conduct centers in France (Aulnoye-Aymeries), the U.S. full-scale testing of proprietary connections, enabling (Houston) and Indonesia (Batam), with a fourth center qualification to the highest industry standards being built in Brazil (Belo Horizonte). and the specific requirements of the Brazilian market. Capacity was doubled to 8,400 m2 at the Houston All of these investments illustrate Vallourec’s commitment center in 2012, which is specifically designed to test to excellence and its ability to push the frontiers of tubes for shale hydrocarbons and offshore projects technological innovation for the benefit of its customers. in the Gulf of Mexico. The VAM® connections are subject to the most extreme full-scale testing to demonstrate sealing qualities. THE MAIN CONSTRAINTS TO WHICH CONNECTIONS ARE SUBJECTED IN A PRE-SALT FIELD Weight of the column Tension Riser Marine currents Fatigue Water Casing tubes Production tubes (tubing) Layers of salt Rocks Exterior pressure Salt Rising of the fluid Oil Interior 2,000 bar 200 pressure technicians and Rocks 250° Celsius engineers dedicated ® Increase in temperature The pressure and temperature levels to to testing VAM of the cemented tubes which connections are regularly tested. connections. Compression Vallourec in 2014 4 WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c NEWS 2014 All Vallourec! The deployment of the One Vallourec project is complete. Today, all sites worldwide, all safety equipment and all media proudly carry the Vallourec brand, colors and values. Vallourec demonstrated its ability to support highly complex offshore projects in winning the contract for the Kaombo project, operated by Total E&P Angola: 27,000 metric tons of tubes and premium connections, designed for particularly difficult drilling conditions. WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c NEWS 2014 NEWS 2014 In taking the pedestrian bridge that runs to Mont Saint-Michel, one can appreciate the insularity and unspoiled beauty of the World Heritage Site. The 760-meter bridge is supported by 124 columns that are both thin and strong… and are tubes produced by Vallourec. Vallourec in 2014 6 WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c NEWS 2014 400 metric tons of high-performance steel tubes form the 124 columns that support the bridge. The seamless tubes, with a maximum length of 9.5 meters, are ideally proportioned: 24.45 centimeters in diameter, 4 centimeters thick at the ends of the structure and 6 centimeters in the central section for supporting the passage of 2.5 million visitors a year. They are resistant to wind, the constant motion of the sea and salt water through a special anti-corrosion coating. Deck Tube thickness Central section: 6 centimeters Ends of the bridge: 4 centimeters Tube 24.45 centimeters in diameter Maximum length 9.50 meters WorldReginfo - acd21f38-96c9-4d60-9799-3e388e20877c NEWS 2014 NEWS 2014 VAM® CELEBRATES 50 YEARS OF SUCCESS! In 1965, the Vallourec team led by Alexandre Madrelle launched a revolutionary connection. Since then, VAM® premium connections have linked more than tubes: they connect people, projects and countries. They have become the benchmark reference and a symbol of Vallourec’s values. INNOVATION PROXIMITY Our R&D teams continuously design and develop premium On all projects and onshore solutions that are both innovative and offshore platforms throughout ® and competitive, to meet the the world, 24/7, a VAM expert requirements of our customers. is always at your side. VAM® Field Service Vallourec offers on-site solutions for oil and gas projects - VAM® solutions are born. Partnership with Sumitomo Metal 1985 Vallourec signs a 10-year research ® First VAM® patent
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