Tubos Reunidos S A : 2021 - Statement of Non-Financial Information and Independent limited assurance report

Non-financial NFIS statement 2021

information

The rediscovery.

Empowering the energy transition

ANNEXES

Index

2021 Developments: Our response to challenges as a strategic company 14

Leaders in providing innovative and sustainable piping solutions 06

Where we came from: Almost 130 years of history 12

TUBOS REUNIDOS GROUP, S.A.

0102

Where we are going: Driving the energy transition 20

Our contribution to Sustainable Development 25

LETTER FROM THE CHAIRMAN 03

OUR STAKEHOLDERS

360º communication 30 Materiality analysis 32

EXCELLENCE IN HEALTH AND SAFETY

0403

Health and Safety is our priority 50

Continuing the fight against COVID-19 to guarantee a safe environment 59

PEOPLE, OUR COMPETITIVE ADVANTAGE

We are our people 36

Main figures (2021 and 2020) 37

Talent development 44

Flexibility and work-life balance 47

Equality and diversity 48

GLOBAL VALUE CHAIN

From scrap meta0l to pipe: a sustaina5ble activity 63

Supporting our customers in future challenges 73

OUR CORPORATE GOVERNANCE

Professional Governing bodies 84

Prepared to anticipate and manage risk 89

The ethical framework that guides us 91

07ANEXXES 98

06

DIGITAL TRANSFORMATION AND INNOVATION

Innovation in the TRSA Group 76

New products and applications 78

Digitising the TRSA Group 79

Responsible taxation 96

2

Letter f rom the Chairman

"Fortunately, the pandemic and the increase in costs were not the only things that happened in 2021. We are proud to celebrate the recognition of the Group as a strategic company."

Francisco Irazusta Chairman

As we announced, financial year 2021 was even more complicated than what we experienced in the previous financial year due to the inertia of the market and the impact that it has on the timings of our activity. In addition, the sudden increases in energy prices, raw materials, scrap metal and fer- roalloys, along with transport, have been the major challenge for the sector in 2021. This, together with the pandemic and the international health crisis triggered by the outbreak of COVID-19, which has continued throughout the year, has hindered the recovery of market activity.

While the progress of vaccination and the joint ef- fort made by society have enabled us to witness a revival in certain countries as their mobility restric- tions have eased, that reactivation was cut short by an increase in our recurring costs, which has led to a slowdown in our progressive recovery.

Fortunately, the pandemic and the increase in costs were not the only things that happened in 2021. We are proud to celebrate the recognition of the Group as a strategic company. We thank customers, institu- tions, international analysts and banks for their trust and support, as well as the efforts of our entire team, which have enabled us to obtain a participative loan of EUR 112.8 million from the Solvency Support Fund for Strategic Companies (Fondo de Apoyo a la Sol-

"Our commitment to sustainability is not just an aspirational framework, but a roadmap for responsible growth that must go hand in hand with appropriate and transparent corporate governance."

Francisco Irazusta

Chairman

112.8

EUR 112.8 million

to the Sociedad Estatal de Participaciones Industriales

(SEPI) from the Solvency

Support Fund

vencia de Empresas Estratégicas) from the Socie-dad Estatal de Participaciones Industriales (SEPI), which will undoubtedly be key to the achievement of our objectives in the coming years.

After the confidence expressed and with renewed fi- nancial stability, we are optimistic about a new 2021- 2025 Strategic Plan that allows us to continue trans- forming the Group, endowing our facilities with the latest technologies and seeking the creation of add- ed value that has an impact on the improvement of the Group and the Company in the medium and long term. We are committed to promoting the energy transition and decarbonisation through the development and efficient manufacture of innova- tive and sustainable piping solutions. This new plan will help us to approach new markets and sectors of activity that have a special influence when it comes to clean energy and hydrogen, helping our custom- ers to successfully meet their future challenges. This year, I would like to state that, thanks to the effort and commitment of our people, we have achieved our first milestones in clean energy, and we hope that they will be the first of many.

Our commitment to sustainability is not just an as- pirational framework, but a roadmap for responsible growth that must go hand in hand with appropriate and transparent corporate governance. In 2021, and following our philosophy of continuous improve- ment, we devised a Corporate Governance Update Plan that has transpired during the year and will continue in 2022. All of these improvements and best practices will help us to achieve our goals.

The work of everyone who forms the Group has proved essential when it comes to achieving the great milestones over the past few years and will be a key part of meeting the challenges that have arisen. We must not forget that the well-being and develop- ment of everyone who makes up the company are essential parts of its success. Therefore, the commit- ment to health and safety is part of our values, and we have initiated a multi-year project, which has had a great reception and involvement at all levels. This will enable us to move towards excellence with respect to Health and Safety, improving our culture in this area and always with the objective of "zero accidents".

I would like to end this letter by thanking all the shareholders, customers, suppliers, institutions and collaborators of the Group, as well as the Company as a whole. Their support, effort and commitment have made it possible for our great project to move forward stronger and make progress more suc- cessfully than ever. We have been an agile, efficient and trusted partner for our customers for nearly 130 years, offering them our know-how, quality and in- novation through high value-added products and services, and we want to remain so with our innova- tive and sustainable piping solutions.

ANNEXES

WHO WE ARE