Procurement Solutionswww.exiros.com

Procurement Solutions

Exiros procures premium quality materials and servicesat competitive prices for its customers worldwide. The company’s multidisciplinary team counts with 500 employees dedicated to ensuring the successful execution of the many phases in the process that ends with the on-time delivery of goods and services to its customers. Exiros is the Procurement Company of the Techint Group, a diversified international business group operating worldwide with annual sales of approximately 25.5 billion dollars.As a global service company, Exiros delivers procurement solutions on the basis of its extensive industry and market knowledge employing state-of-the-art technology.Exiros centralizes the purchasing operations of Tenaris

and Ternium, the steel business companies of the Techint Group, and a portion of Techint Engineering & Construction’s. Exiros consolidates as much as 8 billion dollars in purchases within 14 countries. Fully owned by Tenaris and Ternium, Exiros aims to provide effective procurement solutions for its shareholders as well as other third party companies.Exiros’s global operations -based in Uruguay- are part of a trading unit that leverages on a consolidated demand and capitalizes solid market know-how in Europe, Middle East & Asia, North America, Mexico & Central America and the Southern Cone. Additionally, its holding company’s office operates in The Netherlands.

Exiros

Exiros around the world

8billion dollars in purchases within 14 countries.

Commercial offices

ChinaBeijingQingdao

IndonesiaJakartaCilegon

CanadaSault St. MarieCalgary

MexicoPueblaNuevo LeonColimaVeracruz Guatemala

Villa Nueva

ColombiaCartagenaManizalesMedellin

BrazilSao PauloRio

UruguayMontevideo

ArgentinaBuenos AiresCampanaSan Nicolás

USAHoustonBlythevilleLouisville

RomaniaZalau

The NetherlandsAmsterdam

CalarasiItalyBergamo

NigeriaOnne

TenarisTamsa’s new rolling mill in Veracruz, Mexico.

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.

Values

Quality, excellence and technological development in servicesExiros listens constantly to its customers in order to further improve its services as well as invest in researching new management strategies, and rethinking processes and systems.

Transparency with shareholders, customers, suppliers and employeesThe company’s commitment to open and transparent adminis-tration, based on respect for internal norms and regulations, is essential to establish mutual trust and helps to develop com-petitive advantages. Exiros’ business is set on the base of law, rules and regulations applying across its areas of responsibility.

Efficiency and competitiveness Close work with suppliers in the framework of a solid, long-term relationship is fundamental in order to satisfy customer expectations and needs. Through its Development and Incentives Program, Exiros aims to motivate suppliers with potential by offering them training and support to manage export processes and obtain international certificates.

Human Resources, at the heart of ExirosExiros recruits highly talented people all over the world from cen-ters of academic excellence, ensuring the development of a work-force with a varied educational, cultural and geographical back-ground, sharing one vision and equal standards of competence.

Exiros offers procurement specialist expertise such as global supply source analysis and advice for defining negotiation strategies as well as for signing short, medium or long-term contracts. For steel industry customers, Exiros carries out an in-depth analysis of their production processes to expand their supply options, optimize their mix of materials and re-view the overall costs of supplies to enhance competitiveness.Exiros also operates as a trader for steelmaking companies for certain key raw materials such as iron ore, HBI, and pig iron.

Cutting-edge technologyThe Exiros IT team builds and maintains the technological architecture that supports the complete purchasing process, from the arrival of a purchase request by customers, to the payment of products or services provided by suppliers. Buyers share a unique technological platform globally, which includes a catalog of more than 600,000 items. Also, it allows measuring both buyers’ and suppliers’ performance, and offer continuous improvement of its service while operating with great transparency.

A step ahead in procurement services

Raw MaterialsExiros purchases raw materials on behalf of its customers on the basis of a broad-based understanding of the products required which involves in-depth market analysis and research, products and suppliers’ development, and total cost analysis. Tenaris and Ternium mills use these materials to produce the steel required to manufacture

Materials, Repairs and Operations (MRO)The MRO area purchases materials which are not directly related to production output yet are critical to this process, such as electrical, mechanical and hydro-pneumatic materials; metallic elements, pumps, valves, bearings and filters.

Industrial ServicesThe Exiros Services Department administrates the contracts for all services provided by third party companies. These include transportation, logistics, engineering, manpower and industrial cleaning.

Production Tools and SuppliesThe Production tools’ purchasing area specializes in sourcing supplies such as rolling cylinders and flat steel rolls used in the production process for both steelmaking and steel rolling.

Capital ExpendituresExiros Capital Expenditures procures the full range of equipment and tools required for special investments such as green or brown-field projects. This includes upgrading equipment or plants as well as providing project’s management services in order to help customers meet their objectives.

1 2

3 4 5

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.

Key Exiros areas

steel products worldwide. Iron ore, scrap, coke, coal, refractories and electrodes, and Ferro alloys are some of the materials purchased by this department.

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.

Exiros is a young, global, results-oriented company in a process of steady expansion through continuous interac-tion between its multidisciplinary teams working in a cross-cultural environment. For Exiros, the professional and personal development of its employees is of paramount importance. The high qual-ity of the services delivered by the company is the result of the combination of select talent and technology in a truly global organization.

Flexibility and teamwork are at the base of Exiros’ Human Resources philosophy. Knowledge is transmitted at individual level through ongoing training and shared globally using tools and trainings especially developed for this purpose. All the learning, instruction and training processes are subject to continuous improvement. Employees are encouraged to make the most of exciting challenges to create new solutions based on the world class procurement know-how acquired within the Techint Group during the past 50 years.

A unique cultural mosaic

For Exiros, Quality, Health, Safety and Environment (QHS&E) management are among its top priorities as a global corporate citizen. Most of suppliers hired by Exiros offer their services inside Tenaris and Ternium mills, thus sharing the same Safety standards as these companies is required while working together. Exiros’ unique position enables the company to contribute to the improvement of its suppliers’ HSE capabilities during the early stages of the relationship with current and potential providers.

The QHS&E management system developed by Exiros is being implemented together with Tenaris and Ternium in line with an exacting agenda, which emphasizes interaction with each customer’s safety teams.Furthermore, in order to balance its competitive offers with safer service performance, Exiros works to establish and maintain long-term partnerships with its suppliers, including detailed HSE improvement plans with strict controls, timetables and targets.

Keeping safety a top priority

Exiros places a premium value on building long-lasting relationships with its suppliers and working with them as partners in order to meet customer expectations and needs. 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.

Companies wishing to find out more about becoming a supplier and operating with Exiros, should visit www.exiros.com.

Suppliers: The perfect environment for a company on the move

12* Number of suppliers from whom Exiros purchased good or services during 2013.

thousand active vendors* worldwide.

Ternium is a manufacturer of flat and long steel products with production centers in Argentina, Mexico, Colombia, Guatemala and the United States. It is one of the leading steel companies in Latin America.Ternium manufactures a wide range of products through integrated processes that involve the extraction of iron ore from its own mines. These include semi-finished steel, flat-rolled products, long products, welded tubes and beam, and roll-formed products.

Techint Engineering & Construction provides Engineering, Procurement, Construction, Operation and Maintenance services for major projects, taking into deep account the environment and quality of life of the neighboring communities.In seven decades, the company has developed more then 3.500 projects in 45 countries. It comprises more than 22.000 employees, including corporate, professional staff and subcontractors that perform 79 million annual man-hours of construction and engineering.

With production centers in key geographical locations, Ternium offers high standards of quality and service. It has become a preferred supplier in its local markets and more widely in the Americas where demand for its steel products is steadily increasing.The combined professionalism and commitment of Ternium’s strong workforce complement its considerable manufacturing resources. The company reaches out to international markets through a broad network of service and distribution centers across the continent.

Techint E & C develops important projects in Latin America, Europe, USA, the Middle East and Africa, taking advantage of a common synergy and acting under the same values and quality standards. Thanks to its “multilocal” presence, it has acquired a deep understanding of local conditions as well as technical standards, laws and regula-tions in the regions where it operates. Employing state- of-the-art systems and procedures, Techint E & C executes projects using the technologies that best fit the needs of each client.

Ternium

Techint Engineering & Construction

Tenaris is a leading supplier of tubes and related services for the world’s energy industry and certain other industrial applications. Tenaris has an annual production capacity of 6 million tons of tubular products.Tenaris consists of a network of manufacturing facilities, service yards and commercial offices that span the globe.

They provide casing and tubing, line pipe and various other mechanical and structural steel pipes for different applications: drilling, completion, production and transportation of oil and gas; specialized industrial and automotive applications and power plant applications. 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.

Tenaris

Tailor made solutions for dynamic customers

Exiros procured 4 billion dollars in goods and services for Ternium in Argentina, Brazil, Colombia, Guatemala, Mexico, and the United States during 2013.

Exiros procured 143 million dollars in goods and services for Techint Engineering & Construction during 2013.

San Nicolas mill, Buenos Aires, Argentina. During 2013, Exiros procured 1.7 billion dollars in goods and services for Ternium in Argentina.

Sierra Gorda, Chile. During 2013, Exiros procured goods and services for Techint Engineering & Construction in Argentina, Brazil, Chile, Ecuador, Mexico, Peru and Uruguay.

Exiros procured 3.9 billion dollars in goods and services for Tenaris worldwide during 2013.

TenarisAlgomaTubes mill, Sault Sainte Marie, Canada. Pipes lay on the cooling bed after undergoing the rolling process. Exiros procured some 158 million dollars for TenarisAlgomaTubes during 2013.

Techint Group’s commitment to its supply chain

The Techint Program for small and middle-sized companies was born as a corporate initiative to support the growth of the Techint Group’s supply chain in Argentina and Mexico. It has become a way of institutionalizing cooperation and promoting association between the group, its customers and suppliers by providing the following:

• Industrial assistance• Training and Human Resources recruitment• Commercial assistance• Financial assistance• Institutional assistance

Since the very start, Techint has focused on boosting the competitiveness of its customers and suppliers by promoting its production investments, increasing its export capabilities and developing the domestic market.

Part of the ProPymes program involves a range of intern-ships and trainee opportunities for young people to help the companies involved to leverage their know-how and share management tools.

Learn more at: www.programapropymes.com

Procurement Solutionswww.exiros.com