Health, Safety and Environment Policy. Accidents Statistics. Trends of Accident Indices. International Accident Indices. Environmental Balance Sheet

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1 HEALTH, SAFETY and ENVIRONMENT REPORT 2014 voestalpine Tubulars KINDBERG Health, Safety and Environment Policy Accidents Statistics Trends of Accident Indices International Accident Indices Environmental Balance Sheet Material and Energy Balance Sheet Trends of Input/Output Indices voestalpine Tubulars GmbH & Co KG

2 Health, Safety and Environment Report voestalpine Tubulars GmbH & Co KG Alpinestraße Kindberg-Aumühl The current Health, Safety and Environment Report of the company with location in Kindberg, voestalpine Tubulars GmbH & Co KG, specifies the company s safety, environmental measures and statistics for the year 2014.

3 Management Policy Our Management System is based on the requirements of national and international standards or specifications such as DIN EN ISO 9001, API Specification Q1, ÖNORM EN ISO 14001, ISO and BS OHSAS 18001, and, at the same time, adheres to all statutory and legal requirements. The focal points of the Management System are the criteria: quality; environment; energy; safety and health protection. Quality means to us: Flawless products Customer orientation and customer satisfaction Fulfilment of customer demands Clear responsibilities and controlled processes Flexibility and reliable delivery Safety and health protection means to us: Safe work places, working equipment and installations Protection of employees - creation of awareness Minimisation of risk of accidents - accident prevention - accident avoidance Health promotion - order & cleanliness Environment protection means to us: Conservation of resources - minimisation of emissions Avoidance of impact on the environment Legal compliance Energy management means to us: Increase in energy efficiency - reduction of energy cost Use of renewable types of energy Life-cycle management and sustainability The basis for the effectiveness and the continuous improvement process of the Management System are the high qualifications and highly developed personal responsibility of all employees as well as modern and state-of-the-art installations.

4 Accidents Statistics 2014 Accident-Indices: In the year 2014, 1,813,231 production hours were performed in the Kindberg plant. The monthly average, of voestalpine Tubulars employed: 1,027 blue collar workers In the accident statistics, five key accident indicators are evaluated. The following key accident indicators relate to wage-earners only Accident rate Accidents per 100 employees Frequency of accidents Accidents per 1 million hours Severity of accidents Lost time per accident Lost time due to accidents Lost time in % of working time Lost hours due to accidents per year and employee Accident rate Lost time due to accidents Lost hours due to accidents: The accident rate lies at 8.18 accidents per 100 employees in The working hours lost due to accidents at work amounted to 0.32% of the total hours worked in The working hours lost due to accidents at work were on average 5.58 hours/year/employee in Frequency of accidents Severity of accidents: The frequency of accidents amounted to accidents per 1 million working hours in The average working time lost per accident (accident severity) amounted to hours in 2014.

5 Industrial accidents 2014 according to the number of working days missed by injured employees: Negligible accidents: up to 3 days Minor accidents: 4 to 19 days Moderate accidents: 20 to 45 days Serious accidents: more than 45 days In 2014, a total of 84 accidents at work were reported, of which 32 were negligible, 39 minor, 6 moderate and 7 were serious accidents. Nearly half of the accidents (47%) were minor accidents with a related sick leave duration of between 4 to 19 days. Serious accidents 8% Moderate accidents 7% Negligible accidents 38% Minor accidents 47% Causes of accidents and injuries classified under parts of the body 2014: When analysing the causes of accidents, 22 of the 84 reported accidents relate to falls of the injured person and 20 accidents were caused by lacerations. 8 4 As regards injured parts of the body, the highest percentage concerned damage to hands (33 accidents), followed by 14 accidents resulting in injuries to the eyes and 13 accidents concerned damage to the legs. 3 10

6 Trends of Accident Indices: ACCIDENT RATE Compared to 2013, the accident rate in 2014 increased by 5.4%. SEVERITY OF ACCIDENTS Compared to 2013, the severity of accidents in 2014 decreased by 15.1%. LOST TIME DUE TO ACCIDENTS Compared to 2013, the lost time due to accidents in 2014 decreased by 10.6%.

7 International Accident Indices: In international accident statistics, TRIR and LTIF are evaluated. TRIR Total Recordable Incident Rate Ratio of recordable accidents to hours worked TRIR (2014) = 4.89 LTIF Lost Time Injury Frequency Ratio of total hours lost to accidents at work to hours worked LTIF (2014) = 0.27%

8 Environmental Balance Sheet 2014 The following table shows a summary of all environmental facts of voestalpine Tubulars from the Input-Output-Analysis (Material and Energy Balance Sheet) for the year MATERIAL and ENERGY BALANCE 2014 Input: Circulating materials (input in t) Output: 489, Products and packaging (t) 438, Raw materials (billets) 487, Products (steel pipes) 437, Auxiliary/Operating supplies Product packaging 1, Waste, valuable substances, existing substances (t) 73, Packaging for products 1, Existing substances Valuable substances 71, Non-hazardous waste Hazardous waste 1, Water (input in m³) 2,298,629.0 Waste water (output in m³) 2,237,281.4 Drinking/washing water from well 30,466.0 Sanitary water (indirect feed) 26,963.0 Industrial and cooling water 2,268,163.0 Process waste water (indirect feed) 35.4 Process waste water 2,210,283.0 Compressed air (input in m³) Waste air (emissions in t) 74, Compressed air 69,668,600 Gaseous emissions 74, Thereof CO 2 : Remainder (CO, NO x, SO 2, C tot, CH 4 ): 74, Dust 4.23 Solvent emissions Energy procurement Energy consumption (MWh el ) 491, Electricity (MWh el ) 79, Energy conversion (electricity) 79, Natural gas (m³) 36,977, Heating (gas) 410, Fuel (litres) 167, Operating energy (MWh el ) 1,

9 Waste: We distinguish the following waste types as: existing materials, non-hazardous waste, hazardous waste and valuable substances. Waste type Waste fractions Total 2014 in t Existing substances Glass, metal packaging, organic waste, cardboard packaging, light fraction packaging Non-hazardous Construction waste, commercial waste waste, green waste, plastic waste, thermal mix, industrial waste, abrasives, scale, etc. Hazardous waste Emulsions, oil-water mixtures, 1, waste oils, oil sludge, aqueous concentrates, operating supplies contaminated with oil, electronic waste, phosphating sludge, paint and varnish residues, mineral waste Valuable substances Scrap, shavings, scale 71, Total 2014: 73, All industrial waste is collected separately, stored in accordance with existing regulations and handed over to duly authorized waste disposal or recycling companies! Waste water: After going through various stages of treatment, the process wastewater goes directly into the river Mürz. There are four different wastewater flows: Wastewater flow Volume 2014 in m 3 Volume in m 3 per hour Limit in m 3 per hour Seamless pipe plant 1,160, CT plant 1,019, Upsetting installation 19, Phosphatizing installation 10, Total waste water 2014: 2,210,283 Waste water treatment technologies used: Seamless pipe plant: sedimentation and cooling CT plant: gravel filter and cooling Upsetting installation: pressure-release flotation Phosphating installation: neutralization plant Adherence to the threshold values of waste water streams is controlled by both the company internal chemical laboratory and external testing institutes. Emissions: Waste water load 2014 kg per year Filterable substances 35, COD 18, Hydrocarbons Phosphorous 1, Iron Ammonium 2.36 Aluminium 8.66 Nickel 1.25 Manganese 5.86 The majority of the emissions are caused by the combustion of natural gas for thermal processes, and a small percentage by use of diesel vehicles.

10 Material Required quantity 2014 Gaseous emissionen in t Natural gas 36,977,524 m 3 73, Diesel fuel 166,350 litres Total 2014: 74, Of 74, tons of gaseous emissions, the major part (i.e %) comprises 74, tons of CO 2 -emissions. The use of paint containing solvents and pure solvents resulted in solvent emissions to the amount of tons in Energy: Energy consumption consists of the use of natural gas, electric energy and fuel. Energy supply Required quantity 2014 Energy consumption in MWh Electricity 79, MWh el 79, Natural gas 36,977,524 m 3 410, Fuel 167,101 litres 1, Total 2014: 491, Material and Energy Balance by the production of 1 ton of steel pipe (2014): Energy supply: - Electricity: MWh - Natural gas: m 3 - Fuel: l Water: m 3 - Drinking water from well: m 3 - Industrial and cooling water: m 3 Compressed air: m 3 Emissions: kg - CO2: kg - CO: kg - NOx : kg - SO2 : kg - C ges : kg - Dust: kg - Solvent emissions: kg Billets: 1, kg Production: Heating Rolling Straightening Finishing Upsetting Heat Treatment Testing Threading Coupling production Conserving Erhitzen - Walzen - Adjustieren - Wärmebehandeln - Prüfen - Steel pipe: 1,000 kg Operating supplies: kg - Oil - Lubrications - Paint and lacquer - Solvents - Corrosives - Metal-workings agents - Phosphate agents - Cleaning agents Energy consumption MWh - Electricity: MWh - Natural gas: MWh - Fuel: 0,004 MWh Waste water: m 3 - Indirect sanitary water: m 3 - Direct waste water: m 3 Packaging: kg Recyclable: kg Non-hazardous waste: kg Recyclable waste: kg Hazardous waste: kg

11 Trends of Input Indices from 1998 to 2014: The specific input and output values relate to the corresponding absolute values in proportion to the volume of production. Trends of Output Indices from 1998 to 2014:

12 Imprint Content, design and layout: Management Systems Department Contact: Harald Kohlhofer T F voestalpine Tubulars GmbH & Co KG Alpinestraße Kindberg-Aumühl T.+43/50304/23-0 F.+43/50304/63-0

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