BNP PARIBAS HIGH YIELD & LEVERAGED FINANCE CONFERENCE 19th January 2017

Information

2

Full year consolidated financial statements at 31 December are audited

Half year financial statements are subject to limited review by Statutory

Auditors

To date, third quarter 2016 financial information has not been audited nor

subject to limited review by Statutory Auditors

Unless otherwise specified, indicated variations are expressed in

comparison with the same period of the previous year

Information and Forward-Looking Reflections

This document contains forward-looking statements. These statements include financial forecasts and estimates as well as assumptions on which they are based, statements related to projects, objectives and expectations concerning future operations, products and services or future performance. Although Vallourec’s management believes that these forward looking statements are reasonable, Vallourec cannot guarantee their accuracy or completeness and these forward-looking statements are subject to numerous risks and uncertainties that are difficult to foresee and generally beyond Vallourec’s control, which may mean that actual results and developments may differ significantly from those expressed, induced or forecasted in the forward-looking statements. These risks include those developed or identified in the public documents filed by Vallourec with the AMF, including those listed in the “Risk Factors” section of the Registration Document filed with the AMF on 16 March 2016 (N° D.16-0141).

Today’s Presenters

3

Olivier Mallet

Chief Financial Officer since 2008

More than 20 years financial experience in various industries

Etienne Bertrand

Investor Relations & Financial Communication since 2006

More than 30 years in the Group in several positions

Frédéric Bernet

Corporate Treasury and Financing since 2014

More than 20 years financial experience in Finance and Treasury departments

(PSA, Sequana)

4

CONTENTS

I. Company Overview

II. Update on Operating Environment and Group Strategy

III. Credit Highlights

IV. Financial Summary

V. Q&A

VI. Appendix

CHARTE POWERPOINT VALLOUREC 4

19/01/2017 CHARTE POWERPOINT VALLOUREC

Company Overview

5

Vallourec at a glance

6

(1) Including Petrochemicals

1 At December 31, 2015 (permanent and temporary contracts)

Key clients

Key segments

Global leader in premium tubular solutions operating across diversified end markets and geographies

Revenue share

(2016 LTM Sept)

Worldwide presence with 21,000 employees1 in more than 20 countries

Over 50 production facilities worldwide delivering a large spectrum of products for diversified applications,

geographies and sectors

Highly innovative with 6 advanced R&D and 4 connection test centers located in France, Germany, Brazil

and the U.S. employing over 500 researchers and technicians

A clear and constant strategy: more premium, more local, more competitive

2016 LTM Sept Figures:

Sales volume: 1,225kt

Sales: €2,988m

64%

16% 19%

€581m €492m €1,915m

OIL & GAS POWER GENERATION INDUSTRY

Vallourec product offering and applications

7

OIL & GAS POWER GENERATION

Key components for conventional and nuclear power plants

Higher efficiency achieved for ultra super critical

conventional coal fired power plants

Drill pipe

Tool joint

Casing Tubing

Connection

Production riser

Flowline

Umbilicals

Welding

Conventional power plant Nuclear power plant

Leading-edge solutions for every application in the oil

and gas industry

OCTG1 tubes including premium VAM2® connections

designed for oil and gas well equipment

Complete range of drill pipes

Line pipes and accessories3

INDUSTRY

Construction – Tubular

solutions in infrastructure and

complex architectural projects

Mechanical Engineering –

tubes and rings for cranes, axles,

• hydraulic cylinders, mining and farming machinery

Automotive – suspension and transmission parts, structural

and passive safety components, shock absorbers, bearings

for all types of vehicles4

Copyright: Total

1 Oil Country Tubular Goods, which entails products, mainly tubes, designed for oil and gas well equipment encompassing casing, tubing and accessories 2 Brand name of seamless pipe connections co-developed by NSSMC and Vallourec 3 For onshore and offshore hydrocarbon transportation as well as tubes for umbilicals 4 Light to off-highway vehicles

Vallourec global industrial and commercial footprint

8

North

America

17%

Europe

22% Asia1

26%

Global footprint ensures efficient production profile and facilitates access to local customers

RoW 2

17%

Steel mills (5) Tube mills (21) R&D (6) Finishing unit (34) Sales & Services office Plantation and mine X% YTD Sept 2016 sales split

1 Includes Middle East 2 Includes other parts of South America except Brazil and rest of the world

Brazil

18%

Major R&D Hub

Streamlined manufacturing operations

Center of excellence for high end premium in OCTG tubes and

connections, power generation and European industrial applications

Tianda rolling mill fully acquired in 2016

New facility specialised in nuclear island

tubes

Finishing facilities for OCTG and PowerGen

Fully integrated setup : steel and

rolling mills in Belo Horizonte , new

state-of-the-art still and rolling mills

in Jeceaba finishing lines, upstream

integration in Mine and Forrest.

Fully integrated set up : steel mill , rolling mills

(including a new state-of-the-art small diameter mill),

finishing linesl

RoW: Local finishing lines for OCTG

(Saudi, Nigeria,….)

19/01/2017 CHARTE POWERPOINT VALLOUREC

Update on Operating Environment and Group Strategy

9

855

(77) (233)

(500)

0

500

1 000

2014 2015 Sept 2016 LTM

Unprecedented industry challenges impacted Vallourec operations

10

E&P capex1 programmes significantly cut

Oil price plummeted in late 2014

$20

$70

$120

janv.-14 mai-14 sept.-14 janv.-15 mai-15 sept.-15 janv.-16 juin-16 oct.-16

WTI spot price Brent spot price

$53

$51

Oil rig count dropped

0

1 000

2 000

3 000

4 000

juin-13 nov.-13 avr.-14 sept.-14 févr.-15 juil.-15 déc.-15 mai-16 oct.-16

World US

481

1,547

Source: Bloomberg

Source: Baker Hughes Vallourec’s performance was severely impacted

Spending by oil & gas companies has been

significantly impacted by the sharp drop in oil prices

since 2014

Cost and capex cuts, optimised inventories

Significant price pressure on tubular goods

Power generation and Industry also faced a

challenging macroeconomic environment

These conditions have led to a significant drop in

demand and prices for Vallourec’s products

5 701

3 803

2 988

(500)

1 000

2 500

4 000

5 500

7 000

2014 2015 Sept 2016 LTM

(33.3%)

Revenue (€m) EBITDA (€m)

15.0% n.m.

Source: Company filings

1

2

3 margin n.m.

Vallourec reacted with well-designed strategic initiatives to fully benefit from market recovery

11

EBITDA related initiatives

Independently from any market recovery, c. 50% of 2020 targeted benefits to be achieved in 2018

1 Incremental EBITDA impact to be achieved by 2020, pre inflation, assuming O&G markets have returned to normal levels 2 Consolidating Vallourec Tubos do Brasil and Vallourec & Sumitomo Tubos do Brasil (VSB) into New VSB with Vallourec as a majority stakeholder (84.6%); finalised on 1 October 2016 3 Nippon Steel & Sumitomo Metal Corporation 4 €989m was extended of the total €1.1bn

€750m

Consolidating

structure

Merging Brazilian operations2, with full consolidation of the new entity

Acquiring Tianda in China €100m

Reinforcing

competitiveness

Implementing productivity improvement, efficiency and cost cutting initiatives

Reducing European production capacity and focusing on high added-value products ~€400m

Optimising

footprint Developing production in Brazil and China low cost hubs €250m

EBITDA impact1

Cooperation

with NSSMC3

Vallourec and NSSMC3 agreed to deepen their more-than-30-years-long co-operation in R&D and continue co-

development of premium connections

Anchor investors Bpifrance and NSSMC increased their equity stakes to 15% each during the last rights issue

Initiatives to strengthen balance sheet and capital structure

Cash proceeds Divestments of non-core assets and some Brazilian forest assets; tax synergies from VSB merger

Strengthened

capital structure

Successfully completed a €959m capital increase in May 2016

Secured committed financing from banks, including partially extended4 maturities on €1.1bn syndicated RCF

Market recovery to allow for the full benefit of such strategic initatives and positive volume impact

associated with operational leverage mitigated by price pressure

11

19/01/2017 CHARTE POWERPOINT VALLOUREC

Credit Highlights

12

Credit highlights

13

1 Favourable long-term trends

World leader in premium tubular solutions 2

Extensive technological expertise and brand trust-recognition 3

State-of-the-art integrated and fully invested industrial set-up 4

Strong focus on cost reduction 5

Strengthened capital structure supported by committed anchor

investors 6

Strong and experienced management team 7

IEA1 estimates the excess supply, will be

largely eliminated by end of 2017

Rebalancing of oil supply & demand

should support recovery of oil prices…

… Driving major E&P capex

programmes

Natural reservoir depletion of existing fields

to remain the key driver impacting oil supply

& demand balance

(~6%) pa impact on oil supply

Favourable long-term trends

14

1

Market dynamics hint at a recovery of the Oil & Gas sector in the near future

Demand for oil is expected to increase significantly

Source: IEA1 – Oil Market Report Sept. 2016

Demand / supply balance

Natural depletion of existing fields should drive OCTG2 demand

Source: Wood Mackenzie

0

10 000

20 000

30 000

40 000

50 000

60 000

70 000

80 000

90 000

100 000

2005A 2010A 2015E 2020E 2025E 2030E 2035E 2040E

Thousand b

arr

els

per

day

Segregated condensate

Yet-to-find

World crude and condensate production outlook

Fields in production

OIL & GAS

1 International Energy Agency 2 Oil Country Tubular Goods

Worldwide leader in Premium Tubes

15

First seamless pipe actor to put new capacity

dedicated to shale in the US

Recognised technology leader globally for

complex well designs

Unmatched technical leadership and strong R&D

Differentiation through global premium services

(network of over 200 VAM licensees, accessories

shop…)

Key partner in construction of modern supercritical

or ultra-supercritical thermal power plants

European leader in seamless tubes for

mechanicals premium applications

Leading positions in various, niche markets across the globe

1 Ball-bearings manufactured from seamless tubes

2

Premium OCTG in the USA 1

Premium OCTG in Brazil 1

Ball-bearings1 tubes in Europe 2

Premium tubes for power

generation applications

Drill pipes globally 2

1

Extensive technological expertise and brand trust-recognition

16

Proven

know-how &

technology

Industry

benchmark

for quality

Close

collaboration

with

customers

3

VAM® connections setting the standard

of quality and innovation for over 50 years

Developed over 30 product lines to meet

the most strict quality standards for

operating in the harshest conditions

Products tested and used in the most

ambitious projects

6 dedicated R&D centres in France,

Germany, Brazil and the US

4 dedicated test centres in France, US,

Brazil and Indonesia

Over 500 researchers and technicians

dedicated to R&D

16 21 22 20

0

20

40

2012 2013 2014 2015

Number of new patents filed

1 For example ultra deep water and pre-salt fields

In November 2015, Vallourec signed a five-

year contract with Total for OCTG

Vallourec has provided an extensive range

of premium offshore solutions for such

demanding projects as:

Total E&P operations in Angola

Total gas field project in the North Sea

Developed innovative tubular

solutions for E&P in hard-to-access

deposits1

~80% of the products sold today did

not exist in 2009

To strengthen co-operation, Vallourec

opened an R&D in Brazil close to

Petrobras CENPES research centre

Case study

Case study

% of

revenues 1.7% 1.6% 1.7% 2.2%

R&D expense (€mm)

93 87 96

82

0

50

100

2012 2013 2014 2015

Steel mills

Tube mills

R&D

Finishing unit

Sales & Services office

Plantation and mine

North

America

Brazil

Europe

China

Anticipated capacity shift 1 (kt)

State-of-the-art integrated and fully invested industrial set-up

17

4

A global industrial set-up with highly competitive low-cost export routes

1,350 (47%)

750 (26%)

800 (28%)

700 (25%)

550 2 (20%) 750

(27%)

800 (29%)

A unique position with high-end rolling

and finishing capabilities

in all regions

Global capabilities

redeployed with a shift from Europe

to Asia and the Americas

Two highly

competitive routes developed in Brazil and

China for international

O&G markets

2014 2018

Oil and gas local

market supply

New highly

competitive

production

hub

New highly

competitive

production

hub

Centre

of technological

excellence

1 Excluding 300kt in Jeceaba as NSSMC’s purchase agreement 2 Including 200kt for exports

Total: 2,900 Total: 2,800

State-of-the-art integrated and fully renewed industrial set-up

18

4

438

529

676

873 909

803

567

388

268

2007 2008 2009 2010 2011 2012 2013 2014 2015

Asia

South America

North America

Europe

Modern, fully invested facilities with limited future CAPEX requirements

Normative CAPEX assumed to be c. m350€

Investments into the

premium pipe mill (PQF) in

Jeceaba (2007 – 2012)

Commissioned in 2011

OCTG / Line pipe for export

Belo Horizonte tube mills

dedicated for domestic

markets

The exceptional spend on

strategic projects initiated in

2008 is now behind

Previous cycle of major

investments occurred in late

1970’s

Investment into a new pipe

mill (FQM) in Youngstown

(Ohio, US) (2010-2013)

Commissioned in 2013

OCTG for US shale market

Centralized management

combining MPM & FQM

rolling mills

Expansion of production

capacity in Vallourec

Changzhou for PowerGen

applications (2010-2013)

Valinox Nucleaire Tubes

Guangzhou (2010-2013)

Strategic minority share in

Tianda Oil Pipe (2011); full

control end 2016

OCTG focus on exports

Ma

jor

pro

du

cti

on

hu

bs

Historical CAPEX spend by region (€m)

Brazil NA China

Strong focus on cost reduction…

19

5

Valens plan introduced in February 2015

Cost reduction of €350m by 2017

Focus on cash optimization through CAPEX reduction and WCR optimisation

Transformation plan rolled out in February 2016

Additional savings, on top of €350m Valens 2015 plan, of €150m

Current savings in line with objectives

> €100m savings achieved in 2015

> €60m achieved in H1 2016

Proven ability to adapt and implement effective cost cutting measures

Strict CAPEX discipline Effective cost cutting

Proven ability to cut costs

388

268

200

2014 2015 2016 est.

CAPEX,

in €m

SG&A,

in €m

410

383

331

9M 2014 9M 2015 9M 2016

Reducing global headcount

Global headcount

FY 2014 H1 2015 FY 2015 H1 2016 9M 2016

-1,600

-1,900

-1800 -300

Total reduction of

5,600,

(22% vs 2014)

200 280

300

580

Target cost reduction

'10

Achieved cost

reduction '10

Additional initiatives ('11-'13)

Cost savings

achieved in '08-'13 period

+€80m

In €m

CAPTEN

(’08-’10)

CAPTEN+

(’11-’13)

(48)% (18)%

…and development of an optimized industrial footprint

20

5

Optimising

operations

Developing

new routes

from Tianda

Fixing capacity

issues

Optimized industrial footprint with new highly competitive hubs

Rationalization of Brazilian activities through the merger of VSB & VBR

Shut down of 2 blast furnaces and steel mill in Belo Horizonte

Supply agreement with NSSMC

Capex optimization and rationalization of forest assets

G&A and tax synergies

Leveraging the Jeceaba plants’ superior competitive position for export

Optimized and highly competitive Brazilian operations

In 2016 Vallourec has taken full control of Tianda Oil Pipe

A state of the art PQF mill

Qualified by Tier1 customers

In partnership since 2011

Developed and enlarged offering of highly competitive solutions

VAM connections on Tianda’s highly competitive tubes

Streamlining European operations…

Closure of 2 out of the 4 large rolling mills (France)

Sale of majority stake in steel mill and disposal of Vallourec Heat

Exchanger Tubes

…to create an optimized European footprint

Rolling activities concentrated in Germany, finishing activities in France

Sustained emphasis on R&D Finishing hub

Hot rolling

hub

Brazil

A single integrated

and optimized

production set up

- BRL/USD

benefits

China

Highly competitive route

for Chinese and

International

O&G markets

- Lower cost

export route

Strengthened capital structure…

21

6

Balanced debt maturities…

In May 2016, new €450m RCF due in

Feb 2020

Credit facilities extended in July 2016

€1.1 billion RCF due in 2020, of

which c.€1.0bn extended to Feb

2021

€400 million RCF due in 2019

extended to July 2020

€90 million RCF due in 2019

extended to Feb 2021

3 583

347 895 44

420 17

614

Liquidity Sept. 2016

2016 2017 2018 2019 2020 2021 & after

Undrawn Credit Facilities Other long-term

Bonds Short term debt

Successful c.€1bn capital increase in

April 2016

€514m by Bpifrance and NSSMC

€480m by other shareholders

...supported by a solid liquidity profile

Strong support from key stakeholders

Capital

increase

Banks

commitments

227 90 400

1 100

450

959

357

Column2 Column3

Solid liquidity profile providing flexibility to implement strategic initiatives

and positioning the company for market recovery

Cash and cash eq.

Capital increase

Total cash

and cash

eq. of

€1,316m

RCF extended to ’21

for €989m

RCF extended to ‘20

RCF extended to ‘21

Other undrawn RCF

Total

undrawn

credit

lines of

€2,267m

In €m

In €m

New RCF due ‘20

… supported by committed anchor investors

22

Public (70%)

including employees (2.7%)

6

Strong support from well-renowned, key stakeholders

Source: Bloomberg, company information

Vallourec’s ownership structure (share of capital)

Cements the industrial partnership that has lasted

more than 40 years

Further synergies created and collaboration fostered

BPI France and NSSM reiterated their commitment to Vallourec

by increasing their stakes to 15% each after successful rights issue in April 2016

Before rights issue

(December 2015)

After rights issue

(September 2016)

15.0%

15.0%

5.3%

1.5%

Public (93.2%)

including employees

French state-owned bank and sovereign wealth fund

dedicated to promoting the financing and

development of companies in France

Illustrates French government’s strong interest in

Vallourec and strategic importance of the company

Strong and experienced management team 7

Chairman of the Management Board Philippe Crouzet

30 years of experience form the manufacturing industry Chairman of the Management Board since 2009

Chief Financial Officer Olivier Mallet

More than 23 years financial experience in various industries

CFO since 2008

Jean-Pierre Michel 38 years in the Group

Technology & Industry

Philippe Carlier 20 years in the Group

Development & Innovation

Didier Hormet 22 years in the Group

Europe Africa

Hubert Paris 18 years in the Group

Middle East Asia

Edouard Guinotte 18 years in the Group

South Americ a

Alexandre Lyra 24 years in the Group

North America

Nicolas de Coignac 23 years in the Group

As of April 3rd, 2017

23

19/01/2017 CHARTE POWERPOINT VALLOUREC

Financial Summary

24

Summary financials

25

Revenue under pressure following sharp drop in oil price Significant fixed cost base has resulted in negative EBITDA

Working capital has adapted to reduced level of activity Completion of investment cycle resulted in optimized capex

1 874 1 825 1 805 2 038

1 318

1 759

1 335

0

500

1 000

1 500

2 000

2 500

2011 2012 2013 2014 2015 9M 2015

9M 2016

909 803

567

388 268

159 100

0

250

500

750

1 000

2011 2012 2013 2014 2015 9M 2015

9M 2016

% of

revenues 17.2% 15.1% 10.2% 6.8% 7.0% 5.4% 4.7%

5 296 5 326 5 578 5 701

3 803

2 942 2 127

0

2 000

4 000

6 000

2011 2012 2013 2014 2015 9M … 9M …

940 786

920 855

(77)

0

(156) (400)

0

400

800

1 200

2011 2012 2013 2014 2015 9M 2015

9M 2016

EBITDA

margin 17.7% 14.8% 16.5% 15.0% (2.0%) 0.0% (7.3%)

Revenue EBITDA

Working Capital Capex

Source: Company information

Q&A

26

19/01/2017 CHARTE POWERPOINT VALLOUREC

Appendix

27

5-year historical simplified consolidated income statement

28

Year ended Dec 31 (€ in millions) 2011 2012 2013 2014 2015

Revenues 5,296 5,326 5,578 5,701 3,803

COGS (3,745) (3,940) (4,036) (4,248) (3,353)

SG&A (612) (600) (623) (597) (528)

EBITDA 940 786 920 855 (77)

D&A (257) (303) (343) (361) (347)

Impairment of assets and goodwill 0 (2) (26) (1,104) (296)

Asset disposals and restructuring costs 10 (7) (17) (51) (118)

Operating profit 693 474 534 (661) (838)

Net financial items (49) (98) (91) (62) (75)

Profit before tax 645 376 443 (723) (913)

Income tax (192) (112) (148) (158) 15

Net profit of equity affiliates 4 7 4 2 (0)

Net profit from continuing operations 457 271 299 (878) (898)

Consolidated net profit 457 271 299 (878) (898)

Group share 402 217 262 (924) (865)

Source: Company information

5-year historical simplified consolidated balance sheet

29

Year ended Dec 31 (€ in millions) 2011 2012 2013 2014 2015

Net property, plant and equipment 4,066 4,320 4,151 3,523 3,161

Other non current assets 1,558 1,683 1,676 1,554 1,192

Inventories and work-in-progress 1,389 1,430 1,423 1,490 1,066

Trade and other receivables 1,058 969 1,099 1,146 545

Financial instruments 40 59 92 28 20

Other current assets 183 203 296 343 307

Cash & cash equivalents 902 546 563 1,147 631

Assets held for sale 0 0 0 0 69

Total Assets 9,195 9,210 9,300 9,232 6,991

Equity, Group share 4,830 4,796 4,601 3,743 2,646

Non-controlling interests 380 417 385 426 392

Provisions and deferred tax 329 356 360 433 465

Employee benefits 117 115 182 244 224

Bank debt 2,095 2,160 2,194 2,694 2,150

Other long term liabilities 92 197 213 215 32

Financial instruments 116 15 24 173 152

Trade payables 669 678 833 807 523

Tax and other current liabilities 567 476 509 496 347

Liabilities disposal for sale 0 0 0 0 60

Total Equity and Liabilities 9,195 9,210 9,300 9,232 6,991

Source: Company information

5-year historical simplified consolidated cash flow statement

30

Year ended Dec 31 (€ in millions) 2011 2012 2013 2014 2015

Cash flow from operating activities (FFO) 638 541 709 683 (229)

Change in WCR + decrease, (increase) (337) (66) (183) (20) 632

Net cash flow from operating activities 301 475 526 662 403

Gross capital expenditure (909) (803) (567) (388) (268)

Asset disposals & other items 7 3 49 4 5

Other investing activities, including acquisitions (67) (14) 9 9 (15)

Net cash flow from investing activities (970) (814) (509) (375) (279)

Free cash flow (602) (325) 8 278 139

Dividends paid during the year (106) (183) (63) (163) (69)

Proceeds drawn from new borrowings 1,158 708 2,126 2,741 417

Repayments of borrowings (236) (557) (2,030) (2,332) (858)

Others 108 69 23 8 (43)

Net cash flow from financing activities 925 36 56 255 (553)

Impact of changes in exchange rate (22) (14) (56) 22 (55)

Overall change in cash 234 (318) 17 564 (484)

Source: Company information

Investor Relations Contact - Vallourec Group

Tel: +33 1 49 09 39 76 / email: investor.relations@vallourec.com

www.vallourec.com

Leader in Premium Tubular Solutions

31