Tubos Reunidos S A : 2023 - Statement of Non-Financial Information and Independent limited assurance report

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

1. In conversation with...
2. Tubos Reunidos
3. 2023 milestones and figures
4. Group strategy
5. Commitment to the environment -E-
6. Evolving in terms of Society -S-
7. Governance that transforms -G-
8. Appendices

1. In conversation with Carlos López de las Heras

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

In conversation with Carlos Lopez de las Heras

CEO of Tubos Reunidos Group

In 2023 we celebrated our 131st anniversary at Tubos Reunidos Group. This significant milestone took place in a context filled with major global challenges for us.

International conflicts, especially the war in Ukraine and the conflict between Israel and Palestine, have created geopolitical uncertainty which, given the highly interdependent nature of the globalised economy, have affected us all in some way, both as individuals and as businesses.

Here at Tubos Reunidos, we saw higher manufacturing costs in recent years, mainly due to high energy prices, a shortage of supplies and logistical difficulties which, alongside other issues, have emerged from this international scenario.

Nonetheless, over the course of our history spanning over a century, we have shown that agility with which we act, make decisions and adapt to ever-changing business environments is one of our greatest strengths. This year of tough challenges was further testament to our resilience, whereby we have thrived in the face of adversity and come out stronger.

The year ended on a positive result for us - we sold 183,000 tonnes of product and our EBITDA profitability rose by 65% in 2023.

And most importantly for us, growth came in a sustainable manner.

Sustainability is a key factor for us and is strongly integrated into all aspects of our corporate culture and organisation. Our future Sustainability Master Plan is testament to this. We are fully committed to laying the foundations for sustainable transformation and establishing a strong ESG culture.

We have therefore made, and will continue to make, sustainability and decarbonisation the cornerstones of our commercial strategy and

THE YEAR ENDED ON A POSITIVE RESULT FOR US: WE SOLD 183,000 TONNES OF PRODUCT AND OUR EBITDA PROFITABILITY ROSE BY 65% IN 2023.

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

1. In conversation with...
2. Tubos Reunidos
3. 2023 milestones and figures
4. Group strategy
5. Commitment to the environment -E-
6. Evolving in terms of Society -S-
7. Governance that transforms -G-
8. Appendices

factors that make us stand out from our com- petitors. In this vein, we are working on manufacturing low-emission pipes - the crown jewel of our sustainability objectives and a product not currently available on the market.

Nevertheless, we are aware that in order to achieve these objectives, we must never lose sight of our main value: our people. Their knowledge and dedication are the heart and soul of our Company. That is why we continuously work on talent recruitment and re- tention, creating a stimulating, stable and safe work environment where our workers can develop and reach their maximum poten- tial, and one that new talent wants to join and grow alongside us.

The digital transformation of our business was another important aspect we have focused on throughout the year. This objective fits both our sustainability aspirations and the value we place on our professionals. In this sense, digitalising our organisational and production processes leads to greater efficiency and cost savings, while freeing our workers from basic repetitive duties so they can perform tasks with greater added value.

Moreover, we supported this digitalisation process through major reinforcement of cy- bersecurity, with a view to ensuring our sys- tems, processes and data are secure, and safeguarding the invaluable trust our customers have in us.

We are aware of the ESG challenges ahead and have set ourselves ambitious goals.

We fully aim to become an ally for customers on their journey towards decarbonisation.

I would like to end this brief letter by thanking all Tubos Reunidos Group employees for their support, effort and continued dedication. Their commitment was crucial to our success as a group over the course of this year. I would also like to thank the Board of Directors, sha- reholders, customers, suppliers, institutions and other partners for placing their trust in the Group.

Tubos Reunidos' continued growth and 131 years of history are all thanks to you. The future continues to shine bright for the Group.

WE ARE FULLY COMMITTED TO LAYING THE FOUNDATIONS FOR SUSTAINABLE TRANSFORMATION AND ESTABLISHING A STRONG ESG CULTURE.

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

1. In conversation with...
2. Tubos Reunidos
3. 2023 milestones and figures
4. Group strategy
5. Commitment to the environment -E-
6. Evolving in terms of Society -S-
7. Governance that transforms -G-
8. Appendices

2. Tubos Reunidos

1. Group presentation
2. Mission, Vision and Values
3. 131 years of history
4. Environment and key trends
5. Collaborations

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

2.1. Group presentation

Tubos Reunidos, S.A. and subsidiaries (hereinafter, "Tubos Reunidos", "Grupo Tubos Reunidos" or "The Group") is a Group with a long history in the steel industry. We operate in markets with the highest consumption and growth, with a presence in over 45 countries across five continents.

A team of more than 1,350 professionals currently work to create value, both in the sector and for our customers, continually advising and supporting them, and making our know- how, capacity for innovation and talent available to them.

We manufacture seamless steel pipes for many different applications, incorporating the necessary requirements into our manufacturing processes to meet the most demanding market standards.

OUR MAIN ACTIVITIES COVER

Our products are in high demand across the energy industry, whether in traditional oil and gas sectors, or in the most innovative areas (so- lar energy, wind, biofuels, green hydrogen, geothermal energy etc.).

Other sectors that require our pipes include the petrochemical and refining industry, mechanical engineering, lifting and handling ma- chinery, mining, construction and mobility.

Our core operations focus on the comprehensive production of seamless steel pipes, from initial raw material input (mainly scrap) to the end pro- duct. This activity is mainly concentrated at Tubos Reunidos Group, S.L.U., a key company within our Group, at its facilities in Amurrio (Álava) and Valle de Trápaga (Vizcaya).

Semi-premium and premium connection threading for OCTG ("Oil Country Tubular Goods") pipelines, carried out by RDT, Inc. at the Beasley (Texas) plant and by Tubos Reunidos Premium Threads, S.L. at the Iruña de Oca (Álava) plant.

The activity of marketing OCTG pipes in the US is carried out by Tubos Reu- nidos America, Inc. In turn, Tubos Re- unidos Group carries out marketing activities for all other products and markets in which we operate. The activity encompasses everything linked to pipe delivery to end customers, including sales.

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

1. In conversation with...
2. Tubos Reunidos
3. 2023 milestones and figures
4. Group strategy
5. Commitment to the environment -E-
6. Evolving in terms of Society -S-
7. Governance that transforms -G-
8. Appendices

R&D CENTERS

COUNTRIES WITH SALES OFFICE

COUNTRIES WITH SALES AGENCY

We currently have four production plants:

WE HAVE A TECHNICAL AND COMMERCIAL SERVICE DISTRIBUTED INTERNATIONALLY

TUBOS MILL

At the Amurrio (Álava) plant we manufacture hot-rolled or cold-drawn carbon, alloy and martensitic stainless steel pipes with outside diameters of up to 8 inches.

PRODUCTOS MILL

At the Valle de Trápaga (Vizcaya) plant, we specialise in manufacturing large hot- rolled, seamless carbon, alloy and stainless steel piping, i.e. with outside diameters ranging from 8 to 28-30 inches.

RDT

At the Beasley (Texas) plant, we provide drilling equipment and specialised services to the OCTG sector, with our semi- premium BTX thread, as well as deliverables tailored to customer requirements.

TUBOS REUNIDOS PREMIUM THREADS (TRPT)

In Iruña de Oca (Álava). This joint venture with Marubeni Itochu Steel processes pipes from the Amurrio plant, applying premium connections for drilling.

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

1. In conversation with...
2. Tubos Reunidos
3. 2023 milestones and figures
4. Group strategy
5. Commitment to the environment -E-
6. Evolving in terms of Society -S-
7. Governance that transforms -G-
8. Appendices

Our markets

Energy industry:

Upstream sector: We manufacture piping for oil and gas drilling and extraction, as well as for carbon storage, geothermal energy and mining. The piping has API or proprietary certifications and meets the most stringent market requirements. We are able to adapt designs to meet any demand.

The production process uses high-quality steel with various alloys, e.g. those with a high chromium content, thus guaranteeing resistance to high pressure, extreme temperatures and corrosion.

Midstream sector: This encompasses activities linked to oil and gas transport and stora- ge, including liquefied natural gas.

We provide specialised piping for land and sea transport of oil, natural gas and other li- quids, such as hydrogen, as well as piping for storage and transformation at processing plants. The piping is designed with specific features, ensuring long-lasting performance in harsh environments and against high temperatures.

Downstream sector: Regasification of natural gas and refined oil products (petrol, diesel, kerosene etc.) for subsequent distribution and sale.

We are one of the leading specialised pipe manufacturers serving the needs of the re- fining, petrochemical, biofuel and power generation sectors.

Offshore wind power: Supplying precision pipes to construct offshore wind turbine struc- tures. We have extensive experience in manufacturing pipes at the required sizes for the most ambitious projects, ensuring reliability and performance even in harsh environments.

Solar thermal energy sector

NON-FINANCIAL

INFORMATION

STATEMENT 2023

TABLE OF CONTENTS

1. In conversation with...
2. Tubos Reunidos
3. 2023 milestones and figures
4. Group strategy
5. Commitment to the environment -E-
6. Evolving in terms of Society -S-
7. Governance that transforms -G-
8. Appendices

Mechanical engineering sector:

We manufacture special steel and pipes for the engineering industry, in a wide range of tailored sizes and thicknesses. Different types and grades of steel are used in production.

Downstream-pressure parts:

We provide piping components and pressure equipment to the market for engineering work, biomass plants, thermal plants and re- fineries. Our experience enables us to offer a wide range of products capable of operating under high pressure and temperatures inherent to these activities.

Mobility:

We are certified under international standard IATF 16949:2016 for quality management systems in the automotive industry.

Construction:

Our structural pipes are excellent for uses where high material characteristics need to be combined with lighter weights. The products can be used in civil engineering and metal structures.

WE DEVELOP AND MANUFACTURE SEAMLESS CARBON AND STAINLESS STEEL PIPES IN HIGH ALLOYS AND GRADES, INCLUDING STEEL TAILORED TO SPECIFIC CUSTOMER REQUIREMENTS. THIS IS POSSIBLE THANKS TO OUR EXTENSIVE METAL KNOWLEDGE AND OWNING OUR OWN STEELWORKS.