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.
Special Note Regarding
Forward-Looking Statements
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.
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
Energy
Tubulars
22%
Cut-to-Length
15%
Discrete
Plate Coil
55%
Large
Diameter
Tubulars 2%
Non-Energy Tubulars
6%
2005 Sales Distribution
5
Customers by Product Line
Over 600 Customers
Steel Mill Products
Tubular Products
Representative Customers
Representative Customers
6
OEM’s
31%
Distributor
69%
OEM’s
44%
Distributor
56%
Sales Distribution by End Markets
2005 All Products
2005 Steel Mill Products
Shipbuilding/
Marine
Equipment
7%
Rail
Transportation
4%
Oil & Gas
Industry
5%
Construction
Products
5%
Industrial
Equipment
6%
Pipe & Tube
Manufacturing
10%
Machinery &
Centers/
Distributors
62%
Other
1%
Service
Transportation
25%
Construction
12%
Machinery &
Industrial
Equipment
15%
Energy
48%
7
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)
8
Historical Shipments – 1982 - 2005
We have grown both Tubular and Steel Mill Products
Average CAGR = 10.8%
500,000
1,000,000
1,500,000
1,000,000
2,000,000
3,000,000
Tubular Products
Steel Mill Products
-
-
9
Top Plate Producer in North America
Full Year 2005
Oregon/Jindal = No/partial melt
Top 3 > 75% of shipments
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
10
Plate Consumers – Late-Cycle Performers
11
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
12
Growth Driver: Expansion of Value
Added Plate Products
Normalized Plate
Quench Temper Plate
Heavier Gauge Plate
Higher Strength As Rolled Plate
Blast & Painted Plate
13
Strong Position in North American Tubes
0
200
400
600
800
1,000
1,200
2005 Energy Tubular Shipments
Top 3 > 40% of North American Capacity
Energy tubulars represent 80% of tubular shipments
14
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
15
History of innovation dating back
decades:
First in the world with X70 grade
line pipe (1970)
Arctic grade line pipe (1971)
Just in time oilfield OCTG supply
(1974)
First in Canada with heat treated
alloy OCTG (1983)
High strength, low alloy, weldable
steels
Sour service ERW line pipe steels
Premium casing connections for
thermal and horizontal wells
Frontier Pipe Research Centre
Expansion (2005)
Low cost producer
Integrated steel and pipe
maker
Geographically well
positioned
Steady facility upgrades
Low man-hours per ton
Multiple competencies in
multiple mills
Bullet mill technology
(Blytheville)
Six Sigma based continuous
improvement
IPSCO is a Technology and
Low Cost Leader in Pipe
16
Annual Pipe Production
Capacity By Location
120,000
120,000
Geneva, NB
Total
Small
Diameter
(ERW)
Medium
Diameter
(ERW)
Large
Diameter
(Spiral)
1,725,000
1,125,000
300,000
300,000
Total
300,000
300,000
Blytheville, AR
200,000
200,000
Camanche, IA
155,000
155,000
Red Deer, AB
300,000
300,000
Calgary, AB
650,000
50,000
300,000
300,000
Regina, SK
17
Typical Product of Pipemills*
OCTG, Line Pipe and
Blytheville ERW Mill --------
HSS
Geneva ERW Mill -----------
OCTG, Line Pipe and
Camanche ERW Mill -------
OCTG, Line Pipe and HSS
Red Deer REW Mill ---------
OCTG
Calgary ERW Mill ------------
OCTG, Line Pipe and HSS
Regina 2” ERW Mill ---------
Medium Diameter Line Pipe,
Regina 24” ERW Mill -------
Large Diameter Line Pipe
Regina Spiral Mills ----------
* Small Diameter unless otherwise stated
Large OCTG
Standard Pipe
Standard Pipe
18
Competitors:
Major North American Energy Pipe Producers
Diameter Range
0
5
10
15
20
25
30
35
40
45
50
55
IPSCO
Oregon
Berg
USS
ACIPCO
Stupp
NSS
Maverick
LSS
V&M Star
Finished Product Outside Diameter (OD) - Inches
19
Growth Driver: Energy Tubular
Regina
Red Deer
Camanche
Calgary
Blytheville
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
= High drilling activity areas
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
100
200
300
400
500
600
700
800
1
7
12
18
24
29
35
41
46
52
2002
2003
2004
2005
2006
Week
Spring Breakup
Current (Week 5)
Rig Count = 727
20
Large Diameter – Spiral Market >24”
The outlook is very strong
Booked near capacity for the balance of the year
Enbridge commitment reserves 160,000 tons of
production time beginning in the second half of
2006
Potential Future Projects: 2,600,000 tons
Alaska Gas Producers
Mackenzie Valley Pipeline
Oil Sands Pipelines
21
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
22
Powerful Product Synergies
Product Marketing
Cost Minimization
Flexibility in Optimizing Product Production
The Combination of Steel Production with
downstream value added process are very
powerful in:
to Match Market Demand
23
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
24
Industry-Leading Profitability
Operating Income as a % of 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
*
* Full Year 2004, Q4 2005 and Full Year 2005 Include Benefit
Corridor and other charges
25
* Full Year 2004, Q4 2005 and Full Year
2005 Include Benefit Corridor and other
charges
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
Integrated
26
Cash Flow Summary
2005
2004
$586
$455
83
80
(138)
(96)
(29)
(67)
(10)
(23)
(133)
(109)
(230)
(141)
Net Income
Amortization
Working Capital
Capital Expenditures
Common Share Dividends
Common Share Repurchase
Retirement of Preferred Shares
Repayment of Debt
27
Balance Sheet/Key Metrics
12/31/05
12/31/04
$ in Millions
Cash and Equivalents
Inventories
Receivables
Accounts Payable
Long-Term Debt
Total Debt to Capital
$583
$355
$506
$434
$389
$340
$304
$247
$317
$542
15.8%
29.5%
28
Recordable Accidents
Per 200,000 Hours Worked
1
2
3
4
5
6
7
8
9
10
0
2002
2003
2004
2005
8.6
6.5
5.3
3.4
29
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
30
IPSCO Positioned To Grow
The Company has 50 years experience in the oil
and gas sector
Has the financial resources to invest in new
opportunities
With steel mills now positioned, strategy is to
increase steel take-away capability
Energy sector pipe is a desirable, value added outlet for steel
IPSCO has significant room to grow in North American
energy pipe market
Current direction is to grow state-of-the-art capability
through greenfield construction and/or acquisition
31
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
32
Financial Strategy: Use of Cash
Invest In The Business – modest capital spending needs; strong
cash flow provides good defense in downturns
Make Smart Acquisitions – looking for geographic and
complementary acquisitions, not willing to overpay
Return Cash To Shareholders – increased dividend from Cdn $0.25
in 2004 to Cdn $0.56 2005; repurchased 2.8 million shares ($133M)
Maintain Strong Balance Sheet – debt (including Montpelier lease)
to total capitalization of 15.8% at year-end; net cash as of December
31 of $252M ($583M cash & equiv. less $331M long-term debt);
33
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 first quarter 2006
34
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
35
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.
37
Vicki Avril
Senior Vice President and Chief Financial Officer
Ms. Avril joined IPSCO in May 2004 after nearly 30 years of financial, treasury and accounting
management experience including 23 years in the steel industry.
From 2001 to 2003 Ms. Avril served as Senior Vice President and Chief Financial Officer of Wallace
Computer Services, a $1.6 billion publicly held print management company. Ms. Avril was deeply
involved in the sale of Wallace to Moore Corp., forming MooreWallace, the third largest printing
company in the United States. Prior to joining Wallace, Ms. Avril was Vice President Finance and
Chief Financial Officer for Inland Steel Industries, the $5 billion NYSE-listed parent company of steel
manufacturer Inland Steel and steel distributor Ryerson Tull, headquartered in Chicago, Illinois. Prior
to assuming the CFO slot, Ms. Avril also served Inland for four years as Corporate Treasurer and
Director of Planning and earlier in her career received numerous promotions in the finance, treasury
and accounting functions over her 23 years with Inland.
Ms. Avril earned her MBA in Finance from the University of Chicago and her B.S. in Accounting from
the University of Illinois. She serves as a Director of Greif, Inc. a $2 billion NYSE-listed company that
is a world leader in industrial packaging products and services. She also serves on their Audit,
Compensation and Stock Options Committees.
38
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.
39