1	Segment information

As mentioned in section II. AP – C, the Segment Information is disclosed as follows:

Reportable operating segments

(All amounts in millions of U.S. dollars)

Year ended December 31, 2018	Tubes			Other		Continuing operations			Discontinued operations
IFRS - Net Sales		7,233			426		7,659			-
Management view - operating income		702			81		783			-
Difference in cost of sales		112			7		119			-
Direct cost and others		127			6		133			-
Absorption		(15	)		1		(14	)		-
Differences in depreciation and amortization		(34	)		0		(34	)		-
Differences in selling, general and administrative expenses		(2	)		6		4			-
Differences in other operating income (expenses), net		-			-		-			-
IFRS - operating income		777			95		872			-
Financial income (expense), net							37			-
Income before equity in earnings of non-consolidated companies and income tax							909			-
Equity in earnings of non-consolidated companies							194			-
Income before income tax							1,103			-
Capital expenditures		346			3		349			-
Depreciation and amortization		645			19		664			-

Year ended December 31, 2017	Tubes			Other			Continuing operations			Discontinued operations
IFRS - Net Sales		4,966			323			5,289			12
Management view - operating income		115			48			163			3
Difference in cost of sales		164			1			165			(1	)
Direct cost and others		115			-			115			(1	)
Absorption		49			1			50			-
Differences in depreciation and amortization		(3	)		-			(3	)		-
Differences in selling, general and administrative expenses		14			(6	)		8			-
Differences in other operating income (expenses), net		2			-			2			-
IFRS - operating income		292			43			335			2
Financial income (expense), net								(23	)		-
Income before equity in earnings of non-consolidated companies and income tax								312			2
Equity in earnings of non-consolidated companies								116			-
Income before income tax								428			2
Capital expenditures		550			8			558			-
Depreciation and amortization		594			15			609			-

Year Ended December 31, 2016	Tubes			Other			Continuing operations			Discontinued operations
IFRS - Net Sales		4,015			278			4,294			235
Management view - operating income		19			19			38			62
Difference in cost of sales		(108	)		(8	)		(116	)		4
Direct cost and others		(114	)		(8	)		(122	)		4
Absorption		6			-			6			-
Differences in depreciation and amortization		28			-			28			-
Differences in selling, general and administrative expenses		(5	)		1			(4	)		-
Differences in other operating income (expenses), net		(5	)		-			(5	)		-
IFRS - operating (loss) income		(71	)		12			(59	)		66
Financial income (expense), net								22			-
(Loss) income before equity in earnings of non-consolidated companies and income tax								(37	)		66
Equity in earnings of non-consolidated companies								71			-
Income before income tax								34			66
Capital expenditures		752			33			785			2
Depreciation and amortization		643			14			657			5

Transactions between segments, which were eliminated in consolidation, are mainly related to sales of scrap, energy, surplus raw materials and others from the Other segment to the Tubes segment for

$52,

$53

and

$47

million in

2018,

2017

and

2016,

respectively.

In addition to the amounts reconciled above, the main differences in net income arise from the impact of functional currencies on financial result, deferred income taxes as well as the result of investment in non-consolidated companies and changes on the valuation of inventories according to cost estimation internally defined.

Segment information (Cont.)

Geographical information

(all amounts in thousands of U.S. dollars)	North America		South America		Europe		Middle East & Africa		Asia Pacific		Unallocated (*)		Total continuing operations		Total discontinued operations
Year ended December 31, 2018
Net sales		3,611,509		1,462,044		724,733		1,559,988		300,314		-		7,658,588		-
Total assets		7,971,311		2,489,522		1,913,589		588,746		482,563		805,568		14,251,299		-
Trade receivables		791,190		280,801		215,202		383,358		66,815		-		1,737,366		-
Property, plant and equipment, net		3,859,060		1,133,113		848,178		94,040		129,517		-		6,063,908		-
Capital expenditures		196,220		68,603		77,467		2,047		5,136		-		349,473		-
Depreciation and amortization		441,705		108,558		82,769		10,389		20,936		-		664,357		-

Year ended December 31, 2017
Net sales		2,451,357		1,142,142		545,777		937,439		211,789		-		5,288,504		11,899
Total assets		7,925,520		2,975,599		2,002,658		391,029		441,546		661,866		14,398,218		-
Trade receivables		582,204		234,877		214,944		135,524		46,511		-		1,214,060		-
Property, plant and equipment, net		3,914,229		1,190,145		878,788		102,481		143,500		-		6,229,143		-
Capital expenditures		430,142		58,949		57,285		7,562		4,153		-		558,091		145
Depreciation and amortization		354,091		126,273		93,900		12,094		22,282		-		608,640		-

Year ended December 31, 2016
Net sales		1,320,297		1,210,527		565,173		1,055,994		141,601		-		4,293,592		234,911
Total assets		7,467,842		2,803,848		1,925,784		593,649		482,132		578,603		13,851,858		151,417
Trade receivables		229,390		204,746		161,291		308,919		50,339		-		954,685		33,620
Property, plant and equipment, net		3,652,032		1,237,391		847,318		106,941		158,257		-		6,001,939		41,470
Capital expenditures		646,545		59,780		35,270		24,166		19,201		-		784,962		1,911
Depreciation and amortization		381,811		128,458		113,875		11,053		21,912		-		657,109		5,303

There are

revenues from external customers attributable to the Company’s country of incorporation (Luxembourg). For geographical information purposes, “North America” comprises Canada, Mexico and the USA (

33%

); “South America” comprises principally Argentina (

13%

), Brazil and Colombia; “Europe” comprises principally Italy and Romania; “Middle East and Africa” comprises principally Egypt, Kazakhstan, Nigeria and Saudi Arabia and; “Asia Pacific” comprises principally China, Japan, Indonesia and Thailand.

(*) For

2018

includes Investments in non-consolidated companies, for

2017

and

2016

includes Investments in non-consolidated companies and Other equity investments for

$21.6

million (see Note

and

Revenue is mainly recognized at a point in time to direct customers, when control has been transferred and there is

unfulfilled performance obligation that could affect the acceptance of the product by the customer. Tenaris’s revenues related to governmental institutions represents aproximately

14%

and

16%

2018

and

2017

respectively. At

December 2018,

2017

and

2016,

the Company recognized contract liabilities related to customer advances in the amount of $

62.7,

56.7

and

39.7

million, respectively. These amounts related to years

2017

and

2016

were reclassified to revenues during the subsequent year. In these periods,

significant adjustment in revenues were performed related to performance obligations previously satisfied.