IPSCO Inc.
CIBC World Markets
Institutional Investor Conference
February 16, 2006
Information contained in this document other than historical information, may be considered forward-looking.
Forward-looking statements can be identified by the use of forward-looking words such as “believes,”
“expects,” “may,” “will,” “should,” “seeks,” “approximately,” “intends,” “plans,” “estimates” or “anticipates”
or the negative of these terms or other comparable words, or by discussions of strategy, plans or intentions.
Forward-looking information reflects management’s current views of future events and financial performance
that involve a number of risks and uncertainties. The factors that could cause actual results to differ
materially include, but are not limited to, the following: (1) general economic conditions; (2) changes in
financial markets; (3) political conditions and developments, including conflict in the Middle East and the war
on terrorism; (4) changes in the supply and demand for steel and our specific steel products; (5) the level of
demand outside of North America for steel and steel products; (6) equipment performance at our
manufacturing facilities; (7) the occurrence of any material lawsuits; (8) the availability of capital; (9) our
ability to properly and efficiently staff our manufacturing facilities; (10) domestic and international
competitive factors, including the level of steel imports into the Canadian and U.S. markets; (11) economic
conditions in steel exporting nations; (12) trade sanction activities and the enforcement of trade sanction
remedies; (13) supply and demand for scrap steel and iron, alloys and other raw materials; (14) supply,
demand and pricing for the electricity and natural gas that we use; (15) changes in environmental and other
regulations, including regulations arising from the Canadian Parliament’s ratification of the Kyoto Protocol,
and the magnitude of future environmental expenditures; (16) inherent uncertainties in the development and
performance of new or modified equipment or technologies; (17) North American interest rates; and (18)
exchange rates.
This list is not exhaustive of the factors which may impact our forward-looking statements. These and other
factors should be considered carefully and users should not place undue reliance on our forward-looking
statements. As a result of the foregoing and other factors, no assurance can be given as to any such future
results, levels of activity or achievements and neither we nor any other person assumes responsibility for the
accuracy and completeness of these forward-looking statements. We undertake no obligation to update
forward-looking statements contained in this presentation.
Special Note Regarding
Forward-Looking Statements
IPSCO At A Glance
One of North America’s leading steel plate and pipe
producers. IPSCO is a $4+ billion market capitalization stock,
dual-listed as “IPS” on the NYSE and TSX.
Uniquely positioned to capitalize on cyclical trends, employing
a “steel short” strategy to optimize pricing, production and
margins based on current demand across its markets -
industrial, transportation and energy.
A company with modern, state of the art facilities,
management depth and experience, and focus on low-cost
production and profitable growth - propelling the company to
record sales, record production and record earnings of $11.96
per diluted share in 2005
3
Thunder Bay
Minot
Dickinson
Saskatoon
Edmonton
Lisle
Winnipeg
Brandon
Surrey
Calgary
Red Deer
Regina
Geneva
Montpelier
Camanche
St. Paul
Toronto
Houston
Mobile
Blytheville
Note: Capacity in Tons
Houston, Texas
Temper Mill and
Cut-to-Length Line 300,000
Geneva, Nebraska
Pipe Mill 120,000
Camanche, Iowa
Pipe Mill 250,000
Calgary, Alberta
Pipe Mill 300,000
Red Deer, Alberta
Pipe Mill 155,000
Surrey, British Columbia
Cut-to-Length Line
150,000
Toronto, Ontario
Temper Mill and
Cut-to-Length Line 300,000
St. Paul, Minnesota
Temper Mill and
Cut-to-Length Line 300,000
Regina, Saskatchewan
Steelworks 1,000,000
Pipe Mills 650,000
Cut-to-Length Line 150,000
Montpelier, Iowa
Steelworks 1,250,000
Mobile, Alabama
Steelworks 1,250,000
Blytheville, Arkansas
Pipe Mill 300,000
Steel Products
Tubular Products
Coil Processing
Scrap Processing Centers
Operational Headquarters
Diverse Production And Geographic Capacity
4
IPSCO’s Products
Tubular Products
Steel Mill Products
2005 Sales Distribution
Energy
Tubulars
22%
Cut-to-Length
15%
Discrete
Plate Coil
54%
Large
Diameter
Tubulars 2%
Non-Energy Tubulars
6%
5
Sales Distribution by End Markets
2005 All Products
2005 Steel Mill Products
Oil & Gas
Industry
5%
Construction
Products
5%
Machinery &
Industrial
Equipment
6%
Pipe & Tube
Manufacturing
10%
Rail
Transportation
4%
Shipbuilding/
Marine
Equipment
7%
Service
Centers/
Distributors
62%
Other
1%
Energy
48%
Transportation
25%
Construction
12%
Machinery &
Industrial
Equipment
15%
6
IPSCO’s Energy Exposure
IPSCO is leveraged to the energy sector through
multiple channels:
Direct exposure through pipe business
Exploration and development - OCTG
Gathering and distribution – line pipe
Transmission – large diameter line pipe
Direct exposure through plate to energy fabricators
Wind Towers, Offshore Platforms, Oilfield Tanks, etc
Indirect exposure through sales to pipe making customers
Two of top ten customers are major energy pipe producers
Indirect exposure through suppliers of equipment to
operators in energy sector
Construction equipment, transportation (rail and barge)
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Top Plate Producer in North America
Full Year 2004
Oregon/Jindal = No/partial melt
Top 3 > 75% of shipments
Source: Estimated from Company filings & First River
Note: Includes Plate in Coil Form
Source: Estimated from Company filings & First River
0
500
1,000
1,500
2,000
2,500
3,000
3,500
8
Plate Consumers – Late-Cycle Performers
9
Plate Production is Cost
Competitive Globally
IPSCO utilizes latest technology
North America mills relative to other
nations have availability and cost
advantage to scrap
Man-hours per ton are best-in-class
10
Growth Driver: Expansion of Value
Add Plate Products
Normalized Plate
Quench Temper Plate
Heavier Gauge Plate
Higher Strength As Rolled Plate
Blast & Painted Plate
11
Strong Position in North American Tubes
Top 3 > 40% of North American Capacity
Energy tubulars represent 80% of tubular shipments
0
200
400
600
800
1,000
2004 Energy Tubular Shipments
12
Tubular Shipments
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Energy Tubulars
LD Energy Tubulars
Non-Energy Tubulars
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Growth Driver: Energy Tubular
Regina
Red Deer
Camanche
Calgary
Blytheville
= High drilling activity areas
Rig Count – Canada
Rig Count – US
High natural gas prices are expected to drive higher rig counts, which
in turn will drive consumption of energy tubulars
Source – Baker Hughes
700
900
1,100
1,300
1,500
1,700
1
7
12
18
24
29
35
41
46
52
2002
2003
2004
2005
2006
Week
Current (Week 5)
Rig Count =1,513
0
200
400
600
800
1
7
12
18
24
29
35
41
46
52
2002
2003
2004
2005
2006
Week
Current (Week 5)
Rig Count = 727
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Growth Driver: Large Diameter Pipe
Drivers
Project-based orders
Gaining market share
Need for large pipelines to
bring natural gas from Alaska
and Northern Canada to
markets
Mackenzie Pipeline
Alaska Pipeline
Expanding core competency
with Frontier Pipe Research
Unit
Production facilities located to
capitalize on eventual
construction
Additional infrastructure will
be required around northern
pipelines
2006 looks very promising
Berg
Cheyenne Plains
East Texas Expansion
Prudhoe Bay
Alaska
Fairbanks
Kenai
Valdez
Mackenzie
Delta
Yukon
Northwest
Territories
British
Columbia
Alberta
Edmonton
Saskatchewan
Camrose
Portland
Calgary
Regina
Ontario
Nunavut
Hamilton
NAPA
IPSCO LDP Mill
Alaska Natural Gas
Transportation System
Mackenzie Valley Pipeline
Alliance Pipeline
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The Outlook For IPSCO’s Pipe Is Strong
High energy prices driving hydrocarbon exploration,
development, transportation together with the
development of alternative energy sources
Exploration and development drilling (OCTG) is at a
high level
Steel intensive oil sands development
Numerous large diameter transmission lines in
development stage:
Oil from Alberta to markets on West Coast or US refineries
Multiple transmission lines in the US
The Northern lines
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Full Year 2005
Operating Performance
+38
$8.69
$11.96
Diluted EPS
+29
455
586
Net Income
+43
619
884
Income Before Tax
+36
663
898
Operating Income
+20
$2,531
$3,033
Sales
B/(W)
% Chg.
2004
2005
Fourth consecutive record year of sales and production
Record operating profit per ton of $259
Record full year earnings
Record coil and plate production of 3.4M tons
Record energy tubular shipments of 775,000 tons
$ millions except EPS
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Industry-Leading Profitability
* Full Year 2004, Q4 2005 and Full Year 2005
Include Benefit Corridor and other charges
Operating Income % to Sales
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Algoma
Dofasco
U.S. Steel
AK
Mittal
IPSCO
Steel
Dynamics
Nucor
Maverick
LoneStar
NS Group
Grant
Prideco
Full Year 2004
Q1 2005
Q2 2005
Q3 2005
Q4 2005
Full Year 2005
l-------------------Integrated---------------------l
l-----------Mini-mills------------l
l----------------Tubular---------------l
*
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* Full Year 2004, Q4 2005 and Full Year 2005
Include Benefit Corridor and other charges
Integrated
Mini-mills
Industry-Leading Profitability
Operating income per ton
-$50
$0
$50
$100
$150
$200
$250
$300
Algoma
Dofasco
U.S. Steel
AK *
IPSCO
Steel Dynamics
Nucor
Full Year 2004
Q1 2005
Q2 2005
Q3 2005
Q4 2005
Full Year 2005
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Employee Incentives Aligned
with Shareholder Interest
Incentives based on
productivity, safety, and/or
corporate profitability
All Other Employees
Rewarded for achieving
Budget Goals and Return on
Equity
Key Managers
Rewarded for Return on
Capital and Performance
Relative to Peers
Senior Officers
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Growth Strategy: Strategic Capital
Expenditures
Increase Heat Treating Capabilities – Expanding production
capacities in higher value heat treat, quench and tempered pipe in
Calgary, Alberta and plate in Mobile, Alabama
Eliminate Bottlenecks – Rebalancing processes and executing Six
Sigma programs within each facility that will unlock added capacity and
improve asset utilization
Expand Finishing Processes – Investing in new value-added
processes that improve the mix and margins of our product lines
Broaden Product Offerings – Expand pipe diameter offerings in
casing to include larger popular diameters in high collapse grades of
steel
Strategic Synergies – Invest in projects that create synergies with our
core business strategies
21
Outlook
Believe end-user demand for steel mill products will
remain relatively stable in 2006
Expect high oil and gas prices will continue to drive high
rig counts and demand for OCTG products
Expect spiral pipe mill will run at near capacity
throughout 2006
Anticipate that higher costs of steel making inputs will
result in some margin compression in 1Q06
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Conclusion
IPSCO:
Is Globally Competitive on cost and quality
Has Significant Market Share in the plate and pipe
markets it serves with complimentary product lines
Leads in New Technologies necessary to make value-
added steel and energy pipe for the oil & gas industry
Employs a “Steel Short” strategy across
complementary product lines which enables IPSCO to
optimize production and profitability
Possesses Financial Flexibility to support an
opportunistic expansion/acquisition strategy
Positioned to outperform our peers through the cycle -
creating long-term SHAREHOLDER VALUE
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Thank You
David Sutherland
President and Chief Executive Officer
Dave Sutherland has been President and CEO of IPSCO Inc. since January, 2002. He
joined IPSCO in 1977. Early in his career he held senior managerial positions in the
staff areas of Employee and Industrial Relations in Regina. In April, 2000 Sutherland
moved to the company’s newly formed operational headquarters in Lisle, Illinois, a
suburb of Chicago. He was promoted to Executive Vice President and Chief Operating
Officer in April, 2001, and to President and CEO just nine months later.
Dave Sutherland’s IPSCO career has seen him work in all aspects of the company’s
business – steel, tubulars, and coil processing. He has held important line and staff
positions and has been deeply involved in both manufacturing and sales. During Dave
Sutherland’s tenure with IPSCO the company has grown from a relatively small
Western Canadian steel and pipe company to a NAFTA – based bi-national multi
location developer and producer of high quality steel and tubular products. IPSCO sales
have increased over 360% since 1997 to nearly $2.5 billion US in 2004.
In addition to his broad experience in all aspects of IPSCO’s business, Dave Sutherland
possesses a Bachelor of Commerce degree from the University of Saskatchewan and a
Masters of Business Administration from the Katz Graduate School of Business at the
University of Pittsburgh.
Mr. Sutherland also holds directorships with the Steel Manufacturers Association (SMA)
where he is Treasurer, the American Iron & Steel Institute (AISI) where he is the Vice
Chair, the Canadian Steel Producers Association (CSPA) where he is Chair, the
International Iron & Steel Institute (IISI), National Association of Manufacturers (NAM)
and the C.D. Howe Institute. He is a member of the Canadian Council of Chief
Executives and of the Council’s North American Security and Prosperity Initiative.
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Thomas Filstrup
Director of Investor Relations
Mr. Filstrup joined IPSCO in August 2005 after more than 20 years of investor
relations and financial experience with Whirlpool Corporation, where he was most
recently Director, Investor Relations.
Mr. Filstrup joined Whirlpool at its corporate headquarters in Benton Harbor,
Michigan in 1983 and held various positions in the internal audit department. In
1988 Mr. Filstrup was named Director of Investor Relations where he developed
Whirlpool’s first investor relations marketing program. From 1988 to 1997 Mr.
Filstrup was also responsible for managing the assets of the company’s $2 billion
Pension and 401(k) plans. Prior to joining Whirlpool, he was self-employed and
owned and operated three restaurants in the Austin, Texas area.
Mr. Filstrup earned his MBA from Northwestern University and his B.S. in
Mechanical Engineering from the University of Michigan. He has been active with
the National Investor Relations Institute (NIRI) as both a member of the National
Board of Directors and Chair of the Audit Committee. Mr. Filstrup is also a
member of the NIRI Senior Roundtable and MAPI Investor Relations Council.
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