Tenaris S A : Consolidated Condensed Interim Financial Statements

Tenaris S.A. Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2021

TENARIS S.A.

CONSOLIDATED CONDENSED INTERIM FINANCIAL

STATEMENTS

March 31, 2021

26, Boulevard Royal - 4th Floor. L - 2449 Luxembourg

R.C.S. Luxembourg: B 85 203

Tenaris S.A. Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2021

CONSOLIDATED CONDENSED INTERIM INCOME STATEMENT

(all amounts in thousands of U.S. dollars, unless otherwise stated)		Three-month period ended March 31,
	Notes	2021	2020
Continuing operations		(Unaudited)
Net sales	3	1,181,789	1,762,311
Cost of sales	4	(882,999)	(1,293,665)
Gross profit		298,790	468,646
Selling, general and administrative expenses	5	(255,026)	(357,045)
Impairment charge (1)		-	(622,402)
Other operating income (expense), net		7,827	1,256
Operating income (loss)		51,591	(509,545)
Finance Income	6	5,698	1,877
Finance Cost	6	(4,675)	(8,442)
Other financial results	6	10,754	(15,742)
Income (loss) before equity in earnings of non-consolidated companies and
income tax		63,368	(531,852)
Equity in earnings of non-consolidated companies		79,141	1,889
Income (loss) before income tax		142,509	(529,963)
Income tax		(41,744)	(135,769)
Income (loss) for the period		100,765	(665,732)
Attributable to:
Owners of the parent		106,346	(660,068)
Non-controlling interests		(5,581)	(5,664)
		100,765	(665,732)
Earnings (losses) per share attributable to the owners of the parent during the
period:
Weighted average number of ordinary shares (thousands)		1,180,537	1,180,537
Continuing operations
Basic and diluted earnings (losses) per share (U.S. dollars per share)		0.09	(0.56)
Basic and diluted earnings (losses) per ADS (U.S. dollars per ADS) (2)		0.18	(1.12)

1. Impairment charge in 2020 corresponds to a charge of $622 million impacting the carrying value of goodwill of the CGUs OCTG USA, IPSCO and Coiled Tubing for $225 million, $357 million and $4 million respectively, and the carrying value of fixed assets of the CGU Rods USA for $36 million.
2. Each ADS equals two shares.

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

(all amounts in thousands of U.S. dollars)	Three-month period ended March 31,
	2021	2020
	(Unaudited)
Income (loss) for the period	100,765	(665,732)
Items that may be subsequently reclassified to profit or loss:
Currency translation adjustment	(60,506)	(72,195)
Change in value of cash flow hedges and instruments at fair value	(2,354)	(6,383)
From participation in non-consolidated companies:
- Currency translation adjustment	(10,846)	(29,195)
- Changes in the fair value of derivatives held as cash flow hedges and others	(1,148)	551
Income tax relating to components of other comprehensive income	(2,943)	280

		(77,797)	(106,942)
Items that will not be reclassified to profit or loss:
Remeasurements of post employment benefit obligations	188	-
Income tax on items that will not be reclassified	(682)	-
Remeasurements of post employment benefit obligations of non-consolidated companies	(372)	(6)
		(866)	(6)
Other comprehensive (loss) for the period, net of tax	(78,663)	(106,948)
Total comprehensive income (loss) for the period	22,102	(772,680)
Attributable to:
Owners of the parent	25,124	(766,638)
Non-controlling interests	(3,022)	(6,042)
		22,102	(772,680)

The accompanying notes are an integral part of these Consolidated Condensed Interim Financial Statements. These Consolidated Condensed Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the fiscal year ended December 31, 2020.

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Tenaris S.A. Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2021

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

(all amounts in thousands of U.S. dollars)		At March 31, 2021		At December 31, 2020
	Notes	(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment, net	8	6,081,084		6,193,181
Intangible assets, net	9	1,411,761		1,429,056
Right-of-use assets, net	10	229,415		241,953
Investments in non-consolidated companies	14	1,024,127		957,352
Other investments	11	280,474		247,082
Deferred tax assets		208,788		205,590
Receivables, net		155,482	9,391,131	154,303		9,428,517
Current assets
Inventories, net		1,910,293		1,636,673
Receivables and prepayments, net		80,029		77,849
Current tax assets		159,059		136,384
Trade receivables, net		907,738		968,148
Derivative financial instruments	12	9,006		11,449
Other investments	11	649,878		872,488
Cash and cash equivalents	11	695,245	4,411,248	584,681		4,287,672
Total assets			13,802,379				13,716,189
EQUITY
Capital and reserves attributable to owners of the parent			11,288,012				11,262,888
Non-controlling interests			182,131				183,585
Total equity			11,470,143				11,446,473
LIABILITIES
Non-current liabilities
Borrowings		294,649		315,739
Lease liabilities	10	193,161		213,848
Deferred tax liabilities		277,848		254,801
Other liabilities		231,812		245,635
Provisions		80,602	1,078,072	73,218		1,103,241
Current liabilities
Borrowings		246,440		303,268
Lease liabilities	10	39,437		43,495
Derivative financial instruments	12	4,047		3,217
Current tax liabilities		65,272		90,593
Other liabilities		202,820		202,826
Provisions		8,931		12,279
Customer advances		52,569		48,692
Trade payables		634,648	1,254,164	462,105		1,166,475
Total liabilities			2,332,236				2,269,716
Total equity and liabilities			13,802,379				13,716,189

The accompanying notes are an integral part of these Consolidated Condensed Interim Financial Statements. These Consolidated Condensed Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the fiscal year ended December 31, 2020.

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Tenaris S.A. Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2021

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

(all amounts in thousands of U.S. dollars)

Balance at December 31, 2020

Income (loss) for the period

Currency translation adjustment

Remeasurements of post employment benefit obligations, net of taxes Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes

From other comprehensive income of non-consolidated companies

Other comprehensive (loss) income for the period

Total comprehensive (loss) income for the period

Changes in non-controlling interests (4)

Balance at March 31, 2021

Balance at December 31, 2019 (Loss) for the period

Currency translation adjustment

Change in value of instruments at fair value through other comprehensive income and cash flow hedges, net of taxes

From other comprehensive income of non-consolidated companies

Other comprehensive (loss) for the period

Total comprehensive (loss) for the period

Changes in non-controlling interests

Balance at March 31, 2020

			Attributable to owners of the parent
				Currency				Non-
	Share	Legal	Share	Translation	Other	Retained		controlling
	Capital (1)	Reserves	Premium	Adjustment	Reserves (2)	Earnings (3)	Total	interests	Total
									(Unaudited)
	1,180,537	118,054	609,733	(958,374)	(345,217)	10,658,155	11,262,888	183,585	11,446,473
	-	-	-	-	-	106,346	106,346	(5,581)	100,765
	-	-	-	(60,316)	-	-	(60,316)	(190)	(60,506)
	-	-	-	-	(494)	-	(494)	-	(494)
	-	-	-	-	(8,046)	-	(8,046)	2,749	(5,297)
	-	-	-	(10,846)	(1,520)	-	(12,366)	-	(12,366)
	-	-	-	(71,162)	(10,060)	-	(81,222)	2,559	(78,663)
	-	-	-	(71,162)	(10,060)	106,346	25,124	(3,022)	22,102
	-	-	-	-	-	-	-	1,568	1,568
	1,180,537	118,054	609,733	(1,029,536)	(355,277)	10,764,501	11,288,012	182,131	11,470,143
			Attributable to owners of the parent
				Currency				Non-
	Share	Legal	Share	Translation	Other	Retained		controlling
	Capital (1)	Reserves	Premium	Adjustment	Reserves (2)	Earnings (3)	Total	interests	Total
									(Unaudited)
	1,180,537	118,054	609,733	(957,246)	(336,902)	11,374,782	11,988,958	197,414	12,186,372
	-	-	-	-	-	(660,068)	(660,068)	(5,664)	(665,732)
	-	-	-	(72,118)	-	-	(72,118)	(77)	(72,195)
	-	-	-	-	(5,802)	-	(5,802)	(301)	(6,103)
	-	-	-	(29,195)	545	-	(28,650)	-	(28,650)
	-	-	-	(101,313)	(5,257)	-	(106,570)	(378)	(106,948)
	-	-	-	(101,313)	(5,257)	(660,068)	(766,638)	(6,042)	(772,680)
	-	-	-	-	1	-	1	(20)	(19)
	1,180,537	118,054	609,733	(1,058,559)	(342,158)	10,714,714	11,222,321	191,352	11,413,673

1. The Company has an authorized share capital of a single class of 2.5 billion shares having a nominal value of USD1.00 per share. As of March 31, 2021 and 2020 there were 1,180,536,830 shares issued. All issued shares are fully paid.
2. Other reserves include mainly the result of transactions with non-controlling interest that do not result in a loss of control, the remeasurement of post-employment benefit obligations and the changes in value of cash flow hedges and in financial instruments measured at fair value through other comprehensive income.
3. The restrictions to the distribution of profits and payment of dividends according to Luxembourg Law are disclosed in note 15.
4. Mainly related to the agreement for the construction of Tenaris Baogang Baotou Steel Pipes Ltd. See note 20.

The accompanying notes are an integral part of these Consolidated Condensed Interim Financial Statements. These Consolidated Condensed Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the fiscal year ended December 31, 2020.

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Tenaris S.A. Consolidated Condensed Interim Financial Statements for the three-month period ended March 31, 2021

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CASH FLOWS

(all amounts in thousands of U.S. dollars)		Three-month period ended March 31,
	Notes	2021	2020
Cash flows from operating activities		(Unaudited)
Income (loss) for the period		100,765	(665,732)
Adjustments for:
Depreciation and amortization	8, 9 & 10	144,469	166,977
Impairment charge		-	622,402
Income tax accruals less payments		12,091	86,258
Equity in earnings of non-consolidated companies		(79,141)	(1,889)
Interest accruals less payments, net		(46)	3,136
Changes in provisions		4,036	(11,490)
Changes in working capital		(83,326)	316,971
Currency translation adjustment and others		(28,354)	(555)
Net cash provided by operating activities		70,494	516,078
Cash flows from investing activities
Capital expenditures	8 & 9	(45,291)	(68,044)
Changes in advance to suppliers of property, plant and equipment		(3,104)	(427)
Acquisition of subsidiaries, net of cash acquired		-	(1,063,848)
Proceeds from disposal of property, plant and equipment and intangible assets		4,923	518
Changes in investments in securities		176,932	31,294
Net cash provided by (used in) investing activities		133,460	(1,100,507)
Cash flows from financing activities
Changes in non-controlling interests		-	1
Payments of lease liabilities		(15,900)	(14,961)
Proceeds from borrowings		94,605	219,158
Repayments of borrowings		(168,271)	(314,494)
Net cash (used in) financing activities		(89,566)	(110,296)
Increase (decrease) in cash and cash equivalents		114,388	(694,725)
Movement in cash and cash equivalents
At the beginning of the period		584,583	1,554,275
Effect of exchange rate changes		(3,844)	(19,686)
Increase (decrease) in cash and cash equivalents		114,388	(694,725)
At March 31,		695,127	839,864
		At March 31,
Cash and cash equivalents		2021	2020
Cash and bank deposits		695,245	841,722
Bank overdrafts		(118)	(1,858)
		695,127	839,864

The accompanying notes are an integral part of these Consolidated Condensed Interim Financial Statements. These Consolidated Condensed Interim Financial Statements should be read in conjunction with our audited Consolidated Financial Statements and notes for the fiscal year ended December 31, 2020.

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