Procurement Solutions

Procurement Solutions Exiros

Exiros procures premium quality materials and services at As a global service company, Exiros delivers procurement competitive prices for its customers worldwide. The company’s solutions on the basis of its extensive industry and multidisciplinary team counts with 450 employees dedicated market knowledge employing state-of-the-art technology. to ensuring the successful execution of the many phases in Exiros centralizes the purchasing operations of Tenaris and the process that ends with the on-time delivery of goods and Ternium, the steel business companies of the Techint Group. services to its customers. Exiros consolidates as much as 7 billion dollars in purchases Exiros is the Procurement Company of the Techint Group, within 12 countries. Fully owned by Tenaris and Ternium, a diversified international business group operating world- Exiros aims to provide effective procurement solutions for wide with annual sales of approximately 22 billion dollars. its shareholders as well as other third party companies.

Exiros around the world Commercial offices

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

billion dollars in purchases 7 within 12 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 im- relationship is fundamental in order to satisfy customer expec- prove its services as well as invest in researching new manage- tations and needs. Through its Development and Incentives ment strategies, and rethinking processes and systems. Program, Exiros aims to motivate suppliers with potential by offering them training and support to manage export processes Transparency with shareholders, customers, and obtain international certificates. suppliers and employees The company’s commitment to open and transparent adminis- Human Resources, at the heart of Exiros tration, based on respect for internal norms and regulations, Exiros recruits highly talented people all over the world from is essential to establish mutual trust and helps to develop centers of academic excellence, ensuring the development of competitive advantages. Exiros’ business is set on the base of law, a workforce with a varied educational, cultural and geographical rules and regulations applying across its areas of responsibility. background, 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, contracts. 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 their payment of products or services provided by suppliers. supply options, optimize their mix of materials and review the Buyers share a unique technological platform globally, 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 criti- contracts for all services provided by third party range of equipment and tools required for special cal to this process, such as electrical, mechanical companies. These include transportation, logistics, investments such as green or brown-field projects. and 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 manufacturing 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 interaction Resources philosophy. Knowledge is transmitted at individual 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 quality to continuous improvement. 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 organization. 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 partnerships 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 move

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 10,000 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 goods or services 10 between 2009-2011. Tailor made solutions for dynamic customers

Tenaris Tenaris is a leading supplier of tubes and related services tions: drilling, completion, production and transportation for the world’s energy industry and certain other industrial of oil and gas; specialized industrial and automotive applica- applications. Tenaris has an annual production capacity tions and power plant applications. of 6 million tons of tubular products. Their state-of- the-art manufacturing facilities are strategi- Tenaris consists of a network of manufacturing facilities, cally located in major oil and gas markets, allowing them service yards and commercial offices that span the globe. to serve their customers with a local or regional presence. They provide casing and tubing, line pipe and various other mechanical and structural steel pipes for different applica-

Exiros procured 3.5 billion dollars in goods and services for Tenaris TenarisAlgomaTubes mill, Sault Sainte Marie, Canada. Pipes lay on the worldwide during the past fiscal year. cooling bed after undergoing the rolling process. Exiros procured some 142 million dollars for TenarisAlgomaTubes during the last fiscal year. Ternium Ternium is a manufacturer of flat and long steel products With production centers in key geographical locations, with production centers in Argentina, Mexico, Colombia, Ternium offers high standards of quality and service. It has Guatemala and the United States. It is one of the leading become a preferred supplier in its local markets and more steel companies in Latin America. widely in the Americas where demand for its steel products Ternium manufactures a wide range of products through is steadily increasing. integrated processes that involve the extraction of iron ore The combined professionalism and commitment of Ternium’s from its own mines. These include semi-finished steel, flat- strong workforce complement its considerable manufactur- rolled products, long products, welded tubes and beam, and ing resources. The company reaches out to international roll-formed products. markets through a broad network of service and distribution centers across the continent.

Exiros procured 3.4 billion dollars in goods and services for Ternium San Nicolas mill, Buenos Aires, Argentina. During the past fiscal year, in Argentina, Brazil, Colombia, Guatemala, Mexico, and the United States Exiros procured 2 billion dollars in goods and services for Ternium during the past fiscal year. in Argentina. 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 internships and suppliers by providing the following: 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 Disclaimer Exiros has produced this brochure for general information only. While every effort has been made to ensure the accuracy of the information contained within this publication, Exiros does not assume any responsibility or liability for any loss, damage or injury resulting from the use of information and data herein. Exiros services are only subject to the Company’s standard Terms and Conditions or otherwise to the terms resulting from the respective contracts of sale, services or license, as the case may be. The information in this publication is subject to change or modification without notice. For more complete information please contact an Exiros representative or visit our website at www.exiros.com.