Business combinations

Acquisition of Saudi Steel Pipe Company

Acquisition

January 21, 2019,

Tenaris acquired

47.79%

of the shares of SSP, a welded steel pipes producer listed on the Saudi stock market, for a total amount of

SAR530

million (approximately

$141

million). The amount was paid with Tenaris cash in hand. SSP’s facilities are located in the Eastern Province of the Kingdom of Saudi Arabia and have a manufacturing capacity of

360,000

tons per year. SSP started its operations in

1980

and serves energy industrial and commercial segments, is qualified to supply products with major national oil companies in the region.

Upon closing of the acquisition,

four

Tenaris’s nominees were appointed as new members of the SSP’s board of directors and a Tenaris senior executive was appointed as managing director and chief executive officer of SSP. Such appointment was ratified at the shareholders meeting of SSP held on

May 7, 2019,

where the shareholders also approved the reappointment of the Tenaris’s nominees until

June 6, 2022.

The Company has begun consolidating SSP’s balances and results of operations as from

January 21, 2019.

Fair value of net assets acquired

The application of the purchase method requires certain estimates and assumptions specially concerning the determination of the fair values of the acquired intangible assets and property, plant and equipment as well as the liabilities assumed at the date of the acquisition. The fair values determined at the acquisition date are based mainly on discounted cash flows and other valuation techniques.

The allocation of the fair values determined for the assets and liabilities arising from the acquisition is as follows:

Fair value of acquired assets and liabilities:	SAR million			$ million

Property, Plant and Equipment		671			179
Customer relationship		305			81
Investment in associated		77			21
Working capital		167			45
Cash and Cash Equivalents		32			9
Other Receivables		11			3
Borrowings		(304	)		(81	)
Employees end of service benefits		(59	)		(16	)
Deferred Tax Liabilities		(47	)		(13	)
Net assets acquired		853			228

Tenaris acquired

47.79%

of total assets and liabilities shown above, approximately

$109

million. As of the result of the acquisition, the Company recognized a Goodwill of approximately

$32.9

million. Tenaris has chosen to recognize the non-controlling interest at the proportionate share of the acquiree’s net identifiable assets.

The acquired business contributed revenues for

$170.6

million with a minor contribution to Tenaris’s margin for the period starting

January 21, 2019

and ending

December 31, 2019.

If the acquisition had occurred on

January 1, 2019,

consolidated revenue and profit after tax would have

not

changed significantly.

The purchase price allocation has been done with the assistance of a

third

party expert.

Acquisition of Garrett

September 2017,

Tenaris acquired

100%

of Garrett (a pipe services and trucking business) through the payment of a price of

$10.4

million.

If the acquisition had occurred on

January 1, 2017,

Tenaris’s unaudited pro forma net sales and net income from continuing operations would

not

have changed materially.