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, 2019	Tubes			Other			Continuing operations			Discontinued operations
IFRS - Net Sales		6,870			424			7,294			-
Management view - operating income		857			73			929			-
Difference in cost of sales		(105	)		3			(102	)		-
Differences in depreciation and amortization		(1	)		(0	)		(1	)		-
Differences in selling, general and administrative expenses		(1	)		1			(0	)		-
Differences in other operating income (expenses), net		6			-			6			-
IFRS - operating income		755			77			832			-
Financial income (expense), net								19			-
Income before equity in earnings of non-consolidated companies and income tax								852			-
Equity in earnings of non-consolidated companies								82			-
Income before income tax								934			-
Capital expenditures		338			12			350			-
Depreciation and amortization		523			17			540			-

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			-
Differences in depreciation and amortization		(34	)		-		(34	)		-
Differences in selling, general and administrative expenses		(2	)		6		4			-
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	)
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			-

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

$36,

$52

and

$53

million in

2019,

2018

and

2017,

respectively.

There are

material differences between total reportable segments’ revenues and the entity’s revenue under IFRS.

The main differences between operating income under IFRS view and the management view are mainly related to the cost of goods sold and other timing differences. See Section II. A. C. Segment Information.

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.

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, 2019
Net sales		3,429,911		1,391,288		738,880		1,382,172		351,804		-		7,294,055		-
Total assets		7,885,120		2,227,044		2,282,775		958,424		609,663		879,965		14,842,991		-
Trade receivables		612,809		176,173		149,321		319,406		90,451		-		1,348,160		-
Property, plant and equipment, net		3,771,570		1,129,260		816,721		254,858		117,608		-		6,090,017		-
Capital expenditures		169,390		113,999		55,169		4,578		7,038		-		350,174		-
Depreciation and amortization		276,046		105,308		82,400		42,520		33,247		-		539,521		-

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		-

(*) For

2019

and

2018

includes Investments in non-consolidated companies, for

2017

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

$21.6

million. See Note

and

33.

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 (

31%

); “South America” comprises principally Argentina (

12%

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

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 approximately

21%,

15%

and

17%

2019,

2018

and

2017

respectively.

Tubes segment revenues by market:

Revenues Tubes (in million US dollar)	2019		2018		2017
Oil and Gas		5,757		6,042		4,034
Hydrocarbon Processing and Power Generation		534		602		484
Industrial and Other		579		589		448
Total		6,870		7,233		4,966

December 2019,

2018

and

2017,

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

$82.7,

$62.7

and

$56.7

million, respectively. These amounts related to years

2018

and

2017

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

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