Tenaris S A : Consolidated Condensed Interim Financial Statements Quarterly Results

CONSOLIDATED CONDENSED INTERIM FINANCIAL STATEMENTS

For the six-month period ended June 30, 2022

TENARIS S.A.

26, Boulevard Royal - 4th Floor

L-2449 - Luxembourg

R.C.S. Luxembourg: B 85203

Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM INCOME STATEMENT

			Three-month period ended		Six-month period ended
			June 30,		June 30,
			2022		2021		2022		2021
	Notes		(Unaudited)		(Unaudited)
Net sales	3		2,800,474		1,528,511		5,167,515		2,710,300
Cost of sales	4		(1,735,342)		(1,113,782)		(3,257,284)		(1,996,781)
Gross profit			1,065,132		414,729		1,910,231		713,519
Selling, general and administrative expenses	5		(411,740)		(296,785)		(776,662)		(551,811)
Other operating income (expense), net	6		9,453		33,750		13,530		41,577
Operating income			662,845		151,694		1,147,099		203,285
Finance Income	7		6,441		21,517		15,266		27,215
Finance Cost	7		(6,127)		(5,831)		(7,962)		(10,506)
Other financial results	7		(11,771)		(6,074)		(19,879)		4,680
Income before equity in earnings of non-consolidated
companies and income tax			651,388		161,306		1,134,524		224,674
Equity in earnings of non-consolidated companies	15		103,102		145,829		190,706		224,970
Income before income tax			754,490		307,135		1,325,230		449,644
Income tax			(120,464)		(16,953)		(187,771)		(58,697)
Income for the period			634,026		290,182		1,137,459		390,947

Attributable to:

Shareholders' equity

Non-controlling interests

Earnings per share attributable to shareholders' equity during the period:

Weighted average number of ordinary shares (thousands)

Basic and diluted earnings per share (U.S. dollars per share) Basic and diluted earnings per ADS (U.S. dollars per ADS) (*)

1. Each ADS equals two shares.

			293,940
	636,718	1,139,492	400,286
			(3,758)
	(2,692)	(2,033)	(9,339)
	634,026		290,182		1,137,459			390,947
	1,180,537		1,180,537		1,180,537		1,180,537
	0.54		0.25		0.97		0.34
	1.08		0.50		1.93		0.68

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, 2021.

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Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME

Income for the period

Items that may be subsequently reclassified to profit or loss:

Currency translation adjustment

Reclassification of currency translation adjustment reserve (*) Change in value of cash flow hedges and instruments at fair value Income tax relating to components of other comprehensive income From participation in non-consolidated companies:

• Currency translation adjustment
• Changes in the fair value of derivatives held as cash flow hedges and others

Items that will not be reclassified to profit or loss:

Remeasurements of post employment benefit obligations

Income tax on items that will not be reclassified Remeasurements of post employment benefit obligations of non- consolidated companies

Other comprehensive (loss) income for the period

Total comprehensive income for the period

Attributable to:

Shareholders' equity

Non-controlling interests

Three-month period ended	Six-month period ended
June 30,		June 30,
2022		2021	2022		2021
(Unaudited)	(Unaudited)
634,026		290,182	1,137,459		390,947
(75,098)		42,972	(47,013)		(17,534)
(71,252)		-	(71,252)		-
4,917		2,910	(7,320)		556
-		532	-		(2,411)
(22,380)		18,649	8,481		7,803
(519)		472	(2,095)		(676)
(164,332)		65,535	(119,199)		(12,262)
25		705	(301)		893
(139)		(1,046)	(139)		(1,728)
(486)		3,353	(512)		2,981
(600)		3,012	(952)		2,146
(164,932)		68,547	(120,151)		(10,116)
469,094		358,729	1,017,308		380,831
472,140		362,484	1,019,683		387,609
(3,046)		(3,755)	(2,375)		(6,778)
469,094		358,729	1,017,308		380,831

1. As of June 30, 2022 as result of NKKTubes' definitive cease of operations, the currency translation adjustment reserve belonging to the shareholders has been reclassified with impact in the income statement. For more information see note 35 to the Company's audited Consolidated
   Financial Statements for the year ended December 31, 2021.

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, 2021.

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Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION

		At June 30, 2022				At December 31, 2021
	Notes	(Unaudited)
ASSETS
Non-current assets
Property, plant and equipment, net	9	5,662,744				5,824,801
Intangible assets, net	10	1,358,935				1,372,176
Right-of-use assets, net	11	109,340				108,738
Investments in non-consolidated companies	15	1,539,006				1,383,774
Other investments NC	12	184,222				320,254
Derivative financial instruments NCA	13	8,279				7,080
Deferred tax assets		264,161				245,547
Receivables, net		228,610		9,355,297		205,888		9,468,258
Current assets
Inventories, net		3,370,139				2,672,593
Receivables and prepayments, net		134,661				96,276
Current tax assets		201,786				193,021
Trade receivables, net		1,890,697				1,299,072
Derivative financial instruments CA	13	27,064				4,235
Other investments C	12	559,827				397,849
Cash and cash equivalents	12	636,571		6,820,745		318,127		4,981,173
Total assets				16,176,042						14,449,431
EQUITY
Shareholders' equity				12,649,677						11,960,578
Non-controlling interests				144,371						145,124
Total equity				12,794,048						12,105,702
LIABILITIES
Non-current liabilities
Borrowings		16,931				111,432
Lease liabilities	11	83,315				82,694
Deferred tax liabilities		279,799				274,721
Other liabilities		236,224				231,681
Provisions		93,312		709,581		83,556		784,084
Current liabilities
Borrowings		727,497				219,501
Lease liabilities	11	29,357				34,591
Derivative financial instruments CL	13	12,811				11,328
Current tax liabilities		232,437				143,486
Other liabilities		317,846				203,725
Provisions		10,045				9,322
Customer advances		343,613				92,436
Trade payables		998,807		2,672,413		845,256		1,559,645
Total liabilities				3,381,994						2,343,729
Total equity and liabilities				16,176,042						14,449,431

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, 2021.

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Consolidated Condensed Interim Financial Statements

For the six-month period ended June 30, 2022 - all amounts in thousands of U.S. dollars, unless otherwise stated

CONSOLIDATED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY

					Shareholders' equity
						Currency						Non-
			Share	Legal	Share	Translation	Other	Retained				controlling
			Capital (1)	Reserves	Premium	Adjustment	Reserves (2)	Earnings (3)	Total		interests	Total
													(Unaudited)
Balance at December 31, 2021	1,180,537	118,054	609,733	(1,051,133)	(336,200)	11,439,587	11,960,578			145,124	12,105,702
Income (loss) for the period	-	-	-	-	-	1,139,492	1,139,492			(2,033)	1,137,459
Currency translation adjustment	-	-	-	(46,688)	-	-	(46,688)			(325)	(47,013)
Reclassification of currency translation adjustment reserve (4)	-	-	-	(71,252)	-	-	(71,252)			-	(71,252)
Remeasurements of post employment benefit obligations, net of taxes	-	-	-	-	(470)	-	(470)			30	(440)
Change in value of instruments at fair value through other comprehensive
income and cash flow hedges, net of taxes	-	-	-	-	(7,273)	-	(7,273)			(47)	(7,320)
From other comprehensive income of non-consolidated companies	-	-	-	8,481	(2,607)	-	5,874			-	5,874
Other comprehensive (loss) for the period	-	-	-	(109,459)	(10,350)	-	(119,809)			(342)	(120,151)
Total comprehensive income (loss) for the period	-	-	-	(109,459)	(10,350)	1,139,492	1,019,683			(2,375)	1,017,308
Acquisition and other changes in non-controlling interests	-	-	-	-	-	-	-			1,622	1,622
Dividends paid	-	-	-	-	-	(330,584)	(330,584)			-	(330,584)
Balance at June 30, 2022	1,180,537	118,054	609,733	(1,160,592)	(346,550)	12,248,495	12,649,677			144,371	12,794,048
					Shareholders' equity
						Currency						Non-
			Share	Legal	Share	Translation	Other	Retained				controlling
			Capital (1)	Reserves	Premium	Adjustment	Reserves (2)	Earnings (3)	Total		interests	Total
													(Unaudited)
Balance at December 31, 2020	1,180,537	118,054	609,733	(958,374)	(345,217)	10,658,155	11,262,888		183,585	11,446,473
Income (loss) for the period		-	-	-	-	-	400,286	400,286		(9,339)	390,947
Currency translation adjustment	-	-	-	(17,418)	-	-	(17,418)		(116)	(17,534)
Remeasurements of post employment benefit obligations, net of taxes	-	-	-	-	(835)	-	(835)		-	(835)
Change in value of instruments at fair value through other comprehensive
income and cash flow hedges, net of taxes	-	-	-	-	(4,532)	-	(4,532)		2,677	(1,855)
From other comprehensive income of non-consolidated companies	-	-	-	7,803	2,305	-	10,108		-	10,108
Other comprehensive (loss) income for the period		-	-	-	(9,615)	(3,062)	-	(12,677)		2,561	(10,116)
Total comprehensive income (loss) for the period		-	-	-	(9,615)	(3,062)	400,286	387,609		(6,778)	380,831
Acquisition and other changes in non-controlling interests (5)	-	-	-	-	-	-	-		4,885	4,885
Dividends paid	-	-	-	-	-	(165,275)	(165,275)		(3,207)	(168,482)
Balance at June 30, 2021			1,180,537	118,054	609,733	(967,989)	(348,279)	10,893,166	11,485,222		178,485	11,663,707

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 June 30, 2022 and 2021 there were 1,180,536,830 shares issued. All issued shares are fully paid.
2. Other reserves includes 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 16.
4. Related to NKKTubes' cease of operations. For more information see note 35 to the Company's audited Consolidated Financial Statements for the year ended December 31, 2021.
5. Mainly related to the agreement for the construction of Tenaris Baogang Baotou Steel Pipes Ltd.

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, 2021.

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