Meudon (France), May 16th, 2024 Vallourec, a world leader in premium tubular solutions, announces today its results for the first quarter 2024. The Board of Directors of Vallourec SA, meeting on May 15th 2024, approved the Group's first quarter 2024 Consolidated Financial Statements. First Quarter 2024 Results Cash generation capability of New Vallourec on display with sixth straight quarter of deleveraging International OCTG pricing remains strong due to robust demand pipeline across multiple geographic regions Market demand remains stable in the US; industry inventories have normalized Expect to reduce net debt further in the second quarter Target initiation of capital returns to shareholders in 2025 at the latesta HIGHLIGHTS First Quarter 2024 Results Effects of New Vallourec plan and Value over Volume strategy on display: Tubes EBITDA margin of 23.6% up 277bps sequentially and 135bps year-over-year Tubes EBITDA per tonne of €751 increased sequentially and year over year despite lower US pricing Group EBITDA of €235 million down 16% sequentially and 27% year over year Tubes EBITDA of €220 million down 12% sequentially and 21% year over year due to reductions in US pricing and lower volumes, largely driven by the closure of Germany Mine & Forest EBITDA of €30 million down 29% sequentially and 37% year over year due to lower sales volumes and lower non-cash forest revaluation effects Adjusted free cash flow €172 million; total cash generation €102 million Deleveraging ahead of plan: net debt declined sequentially and more than halved year over year from €1,000 million in Q1 2023 to €485 million in Q1 2024 Second Quarter 2024 Outlookb Group EBITDA is expected to moderately decline versus Q1 due to US Tubes market dynamics: For the Tubes segment, increased volumes and EBITDA in our international portfolio are expected to be more than offset by lower prices and volumes in the US Mine & Forest EBITDA is expected to move closer to the €100 million annualized run-rate Net debt is expected to decline further versus the Q1 2024 level Full Year 2024 Outlooka Group EBITDA margin expected to remain strong through 2024 due to robust international Tubes pricing in backlog and further operational improvement Net debt is expected to decline meaningfully versus the Q1 2024 level Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer, declared: "Our first quarter results confirm the merits of the New Vallourec plan and our Value over Volume strategy. Following the closure of our German rolling mills at the end of 2023, our Tubes profitability per tonne and EBITDA margin took meaningful steps higher despite lower volumes in the first quarter. We also continue to deliver on our goal to decrease our net debt, which we reduced again by €85 million sequentially and €515 million year over year. "The international OCTG market remains strong. We see a robust pipeline of new order opportunities across the Middle East, Africa and North Sea, and accordingly, market prices remain favorable. In the US, a reset in market expectations has caused some further incremental pricing pressure. That said, market demand remains stable and inventories have normalized. We remain disciplined in executing our Value over Volume strategy both in the US and globally. "We are seeing clear opportunities to deliver differentiated value to our customers via our premium product offering. In the Middle East, our customers are increasingly focusing on developing their gas resources, for which they demand premium connections. Continued momentum in deepwater exploration and development campaigns is leading to strong demand for our high-end products in mission-critical offshore applications. Finally, in North America, operators' desire to drill ever-longer laterals in their horizontal wells is driving strong demand for our high-torque connections. "On March 12th, we announced that ArcelorMittal had reached an agreement to purchase Apollo's stake in Vallourec. The deal is expected to close in the second half of 2024, following the completion of various regulatory approvals. We are delighted to welcome ArcelorMittal as a reference shareholder and look forward to finding ways to enhance value with this industrial partner. "In April, we successfully executed our holistic balance sheet refinancing. This marked a major step towards our objective of making Vallourec crisis-proof. Through these transactions, we have extended our debt and liquidity facility maturities, increased our available liquidity, and reduced our debt service costs. We now benefit from greater visibility and financial flexibility for the years to come. Alongside this transaction, our significant progress in reshaping Vallourec has been recognized by all three of the major ratings agencies. S&P has upgraded our rating for the fourth time since we announced the New Vallourec plan, which now stands at BB+, Outlook stable. We are also delighted to welcome the addition of Moody's and Fitch, which rate Vallourec Ba2, Outlook positive and BB+, Outlook positive, respectively. "We are now notably ahead of schedule on our plan to reach zero net debt by year-end 2025 at the latest. As such, we anticipate that we will initiate our return of capital to shareholders in 2025 at the latest.c" Key Quarterly Data in € million, unless noted Q1 2024 Q4 2023 Q1 2023 QoQ chg. YoY chg. Tubes volume sold (k tonnes) 292 382 431 (90) (139) Iron ore volume sold (m tonnes) 1.4 1.7 1.5 (0.4) (0.1) Group revenues 990 1,276 1,338 (286) (348) Group EBITDA 235 280 320 (45) (85) (as a % of revenue) 23.7% 22.0% 23.9% 1.8 pp (0.2) pp Operating income (loss) 174 198 257 (25) (84) Net income, Group share 105 105 156 0 (51) Adj. free cash flow 172 275 194 (103) (22) Total cash generation 102 149 151 (47) (49) Net debt 485 570 1,000 (85) (515) CONSOLIDATED RESULTS ANALYSIS   In Q1 2024, Vallourec recorded revenues of €990 million, down (26%) year over year, which was also (26%) at constant exchange rates. The decrease in Group revenues reflects: (32%) volume decrease mainly driven by the closure of the European rolling mills and decreased shipments in Oil & Gas Tubes in North America 7% price/mix effect (1%) Mine and Forest effect 0.1% currency effect In Q1 2024, EBITDA amounted to €235 million, or 23.7% of revenues, compared to €320 million (23.9% of revenues) in Q1 2023. The decrease was largely driven by lower average selling prices in Tubes in North America, offset by improved Tubes results outside of North America. In Q1 2024, operating income was €174 million, compared to €257 million in Q1 2023. Financial income (loss) was negative at (€20) million, compared to (€46) million in Q1 2023. Net interest expense in Q1 2024 was (€15) million compared to (€26) million in Q1 2023. Income tax amounted to (€46) million compared to (€53) million in Q1 2023. This resulted in positive net income, Group share, of €105 million, compared to €156 million in Q1 2023. Earnings per diluted share was €0.43, versus €0.66 in Q1 2023, reflecting the above changes in net income as well as an increase in potentially dilutive shares largely related to the Company's outstanding warrants, which are accounted for using the treasury share method. RESULTS ANALYSIS BY SEGMENT Tubes: In Q1 2024, Tubes revenues were down 26% year over year due to a 32% reduction in shipments, offset by a 9% increase in average selling price. This decrease in shipments was largely attributable to the closure of Vallourec's German rolling operations as a result of the New Vallourec plan and decreased shipments in North America. Tubes EBITDA decreased from €279 million in Q1 2023 to €220 million Q1 2024 due to decreases in profitability in North America offset by improvements in the rest of the world. Mine & Forest: In Q1 2024, iron ore production sold was 1.4 million tonnes, decreasing by 9% year over year. In Q1 2024, Mine & Forest EBITDA reached €30 million, versus €48 million in Q1 2023, largely reflecting lower sales volumes, lower forest revaluation effects and higher costs. CASH FLOW AND FINANCIAL POSITION Cash Flow Analysis In Q1 2024, adjusted operating cash flow was €235 million versus €299 million in Q1 2023. The decrease was attributable to lower EBITDA, offset by reduced financial cash out. Adjusted free cash flow was €172 million, versus €194 million in Q1 2023. Lower adjusted operating cash flow was partially offset by a smaller working capital build versus the prior year period. Total cash generation in Q1 2024 was €102 million, versus €151 million in Q1 2023. The decrease was attributable to lower adjusted free cash flow as well as higher restructuring charges and non-recurring items. Net Debt and Liquidity As of March 31, 2024, net debt stood at €485 million, a significant decrease compared to €1,000 million on March 31, 2023. Gross debt amounted to €1,551 million including €43 million of fair value adjustment under IFRS 9. Long-term debt amounted to €1,352 million and short-term debt totaled €199 million. As of March 31, 2024, the liquidity position was very strong at €1,714 million, with cash amounting to €1,066 million, availability on our revolving credit facility (RCF) of €462 million, and availability on an asset-backed lending facility (ABL) of €186 million (d). COMPLETION OF BALANCE SHEET REFINANCING In April 2024, we executed a significant and holistic balance sheet refinancing that has substantially extended our debt maturities and reduced our financial costs. The key elements of this operation include: Entry into a new 5-year €550 million multi-currency revolving credit facility (RCF) with a substantially diversified, global banking group Entry into an upsized and extended 5-year $350 million asset-backed lending facility (ABL) in the United States Issuance of 8-year $820 million 7.5% senior notes and entry into a cross-currency swap to hedge Vallourec's currency exposure on its new senior notes with a euro-effective interest rate of approximately 5.8% Redemption of the full €1,023 million of previously outstanding 8.5% Senior Notes due 2026 Repayment of approximately €68 million of the €262 million PGE (prêts garantis par l'Etat) during the transaction and repayment of the remaining amount by December 31, 2024. The successful completion of this refinancing further strengthens Vallourec's financial position and sustainably improves its cash flow generation. Accordingly, the Group will benefit from both greater visibility and financial flexibility over the coming years. Vallourec estimates that this process will generate a recurring net economic benefit in a range of €30 to €35 million per year. Furthermore, Vallourec now maintains credit ratings with all three of the major ratings agencies. Vallourec's issuer rating with S&P, has been upgraded for the fourth time since we announced the New Vallourec plan and now stands at BB+, Outlook stable. We furthermore welcome the addition of Moody's and Fitch, which rate Vallourec Ba2, Outlook positive and BB+, Outlook positive, respectively. SECOND QUARTER AND FULL YEAR 2024 OUTLOOKE In the second quarter of 2024, based on our assumptions and current market conditions, Vallourec expects: Group EBITDA to moderately decline versus Q1 due to US Tubes market dynamics: For the Tubes segment, increased volumes and EBITDA in our international portfolio will be more than offset by lower prices and volumes in the US Iron ore production sold will be slightly higher sequentially with Mine & Forest EBITDA moving closer to the €100 million annualized run-rate Net debt to decline further versus the Q1 2024 level For the full year 2024, based on our assumptions and current market conditions, Vallourec expects: Group EBITDA margin to remain strong through 2024, driven by: Continued strong performance in Tubes, due to robust international Tubes pricing in backlog and further operational improvement Iron ore production sold of approximately 6 million tonnes Total cash generation to be positive Net debt to decline meaningfully versus the Q1 2024 level Information and Forward-Looking Statements This press release 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 Universal Registration Document filed with the AMF on March 14, 2024, under filing number n° D. 24-0113. 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 press release does not constitute any offer to purchase or exchange, nor any solicitation of an offer to sell or exchange securities of Vallourec. or further information, please refer to the website https://www.vallourec.com/en . Presentation of Q1 2024 Results Conference call / audio webcast on May 16th at 9:30 am CET To listen to the audio webcast: https://channel.royalcast.com/landingpage/vallourec-en/20240516_1/ To participate in the conference call, please dial (password: "Vallourec"): +44 (0) 33 0551 0200 (UK) +33 (0) 1 7037 7166 (France) +1 786 697 3501 (USA) Audio webcast replay and slides will be available at: https://www.vallourec.com/en/investors About Vallourec Vallourec is a world leader in premium tubular solutions for the energy markets and for demanding industrial applications such as oil & gas wells in harsh environments, new generation power plants, challenging architectural projects, and high-performance mechanical equipment. Vallourec's pioneering spirit and cutting edge R&D open new technological frontiers. With close to 15,000 dedicated and passionate employees in more than 20 countries, Vallourec works hand-in-hand with its customers to offer more than just tubes: Vallourec delivers innovative, safe, competitive and smart tubular solutions, to make every project possible. Listed on Euronext in Paris (ISIN code: FR0013506730, Ticker VK), Vallourec is part of the CAC Mid 60, SBF 120 and Next 150 indices and is eligible for Deferred Settlement Service. In the United States, Vallourec has established a sponsored Level 1 American Depositary Receipt (ADR) program (ISIN code: US92023R4074, Ticker: VLOWY). Parity between ADR and a Vallourec ordinary share has been set at 5:1. Financial Calendar May 23rd 2024July 26th 2024November 15th 2024 Annual General MeetingRelease of Second Quarter and Half Year 2024 ResultsRelease of Third Quarter and Nine Month 2024 results For further information, please contact: Investor relations Connor LynaghTel: +1 (713) Press relations Héloïse Rothenbühler Tel: +33 (0)1 41 03 77 Individual shareholdersToll Free Number (from France): 0 805 65 10 10   APPENDICES The Group's reporting currency is the euro. All amounts are expressed in millions of euros, unless otherwise specified. Certain numerical figures contained in this document, including financial information and certain operating data, have been subject to rounding adjustments. Documents accompanying this release: Tubes Sales Volume Mine Sales Volume Foreign Exchange Rates Tubes Revenues by Geographic Region Tubes Revenues by Market Segment Key Performance Indicators (KPIs) Summary Consolidated Income Statement Summary Consolidated Balance Sheet Key Cash Flow Metrics Summary Consolidated Statement of Cash Flows (IFRS) Indebtedness Liquidity Reconciliation of New Cash Metrics Definitions of Non-GAAP Financial Data Tubes Sales Volume in thousands of tonnes 2024 2023 YoY chg. Q1 292 431 (32%) Q2 - 396 - Q3 - 343 - Q4 - 382 - Total 292 1,552 - Mine Sales Volume in millions of tonnes 2024 2023 YoY chg. Q1 1.4 1.5 (9%) Q2 - 1.9 - Q3 - 1.8 - Q4 - 1.7 - Total 1.4 6.9 - Foreign Exchange Rates Average exchange rate Q1 2024 Q4 2023 Q1 2023 EUR / USD 1.09 1.08 1.07 EUR / BRL 5.38 5.40 5.58 USD / BRL 4.95 4.99 5.19 Quarterly Tubes Revenues by Geographic Region in € million Q1 2024 Q4 2023 Q1 2023 QoQ% chg. YoY% chg. North America 450 548 658 (18%) (32%) South America 153 230 189 (33%) (19%) Middle East 162 212 112 (24%) 45% Europe 51 57 152 (11%) (67%) Asia 68 89 54 (23%) 26% Rest of World 48 61 92 (20%) (48%) Total Tubes 932 1,196 1,258 (22%) (26%) Quarterly Tubes Revenues by Market in € million Q1 2024 Q4 2023 Q1 2023 QoQ% chg. YoY% chg. YoY % chg. at Const. FX Oil & Gas and Petrochemicals 762 1,017 1,021 (25%) (25%) (25%) Industry 119 112 214 6% (44%) (46%) Other 51 67 23 (24%) 125% 133% Total Tubes 932 1,196 1,258 (22%)