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TEI&C S.A.

Annual Report and Consolidated Financial Statements
as of June 30, 2010

TEI&C S.A.

Annual Report and Consolidated Financial Statements
as of June 30, 2010

A.4 | TEI&C S. Peru. Construction of a 408 km 34” gas pipeline and the respective facilities. . The company PERU LNG Project.

5 484. procurement.530 998 08-09 09-10 07-08 08-09 09-10 .9 35% 09-10 21. Due to its wide experience in the market. thus assuring the quality required by the client. it is capable of developing high complexity projects.598. the Company relies on highly trained human resources.603 20.5 9% 21. Revenue 09 . Energy. taking care of the environment and the well-being of the communities.530.6 14% 114.598 1.636 1.4 211. Oil Refineries. Interest ROE 1. construction and management services to develop and execute major engineering and construction projects.6 87. Industrial Plants. (TEI&C) generates value to its clients and shareholders by providing design. 9% USD millions Personnel 07-08 997.8 19% 07-08 20.036 Revenue Key figures Revenue EBITDA EBITDA % Net Income Equity with Min. from basic design to execution. Mining.4 605.7 6% 08-09 1.3 213.10 by geographic area 29% 21% Argentina Brazil Peru Mexico Central America and Caribbean Canada Chile Others 3% 20% 4% 6% 14% With the aim of providing high impact integral solutions.A. a global network of suppliers and well-proven management skills. state-of-the-art engineering and constructions techniques.6 13% 171. Nowadays.1 372.10 by business segment 16% 7% 3% 11% Energy Iron & Steel and others industries Oil & Gas Pipelines Mining 27% 33% Others Revenue 09 . the Company provides services to the following market segments: Oil & Gas Upstream. and Major Civil and Architecture Works.Annual Report | 5 TEI&C S. TEI&C develops its projects under ISO 9001 standards.

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Index 09 09 12 15 17 22 24 25 28 30 31 33 34 38 40 104 Board of Directors’ Report Overview of the Year Major Works in Progress per Country Current Structure Economic and Financial Information Prospects for Fiscal Year 2010-2011 Board of Directors Legal Information Report of the Auditors Consolidated Statement of Financial Position Consolidated Income Statement Consolidated Statement of Comprehensive Income Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Consolidated Financial Statements TEI&C and subsidiaries’ activities for the period 2009-2010 .

Supplies and Mechanical Assembly at the Ancillary Building of the Reactor. .A. Argentina.8 | TEI&C S. Atucha II Project. Lima. Engineering Services.

for Nucleoeléctrica Argentina S. from Canada. respectively. works were continued for the assembly of the piping system in the UKA building of Atucha II Nuclear Power Plant. Brazil. downstream such project. TEI&C and its subsidiaries recorded sales for USD 1.53 billion. Regarding the activities developed in the energy sector in Argentina. industrial and energy areas. In addition. from Canada.A. In the mining area. for Mina Pirquitas Inc. providing engineering. in January 2010. procurement and construction management activities of the Pirquitas Mine Project. construction. the Company obtained the Acknowledgement of Completion for the engineering. In November 2009. Argentine Branch. Peru and Mexico. operational and management services to a wide range of clients in the infrastructure. other important projects were developed in Bolivia. Central America and Canada by its subsidiaries. the works regarding the extension of the Veladero Mine were completed and the Company continued with the detail engineering and procurement management works for the development of the Pascua Lama project. . works at Los Caracoles Hydroelectric Station were completed for Energía Provincial Sociedad del Estado (EPSE) in the province of San Juan. This is a project of a similar size as Los Caracoles. whose works started in January 2010. In addition. The most significant projects were developed in Argentina. Both contracts are performed by Barrick Gold Corp. and both generation units became operational in July and December 2009. Chile. Besides. a contract was executed with the same client for the construction of the Punta Negra dam. procurement. subsidiary of Silver Standard Resources Inc.Annual Report | 9 Board of Directors’ Report Overview of the year During the fiscal year ended in June 2010.

the Company maintained its leading position in the pipeline market by getting two new contracts – Jungle Loops and the Addition of a fourth pump to the LNG transportation system while continuing to carry out other maintenance services.A. On the other hand.10 | TEI&C S. During the fiscal year. in December 2009. (TEBRA) continued with the development of large projects for Petrobras. and at the Landulpho Alves de Matarife Refinery (RLAM). an agreement was executed with Petrobras Bolivia for engineering. During the fiscal year ended in June 2010. EPC works were finished concerning the Central Thermoelectric Plant of 750 MW. In turn. Within the market of high voltage transmission lines and substations. the Company’s subsidiary Techint Engenharia e Construção S. TEI&C and its subsidiaries recorded sales for USD 1. procurement and construction of the Third Processing Train of Sábalo Gas Treatment Plant. In Peru. Progress was made in engineering. In addition. for Comisión Federal de Electricidad (CFE). . Chiquintirca Gas Compression Plant was also accomplished by May 2010 while Loop de la Costa Gas Pipeline was finished by June 2010. for Transportadora Associada de Gás – TAG de Petrobras. procurement and construction (EPC) activities at the Presidente Bernardes de Cubatão Refinery. thus resuming activities in the Bolivian market. Peru LNG a 408 KM 34’’ gas pipeline was successfully completed in January 2010. at Lot I Tanks of Refinaria do Nordeste (RNEST).A. the project in Gasduc III was successfully completed. In Mexico. the projects of SE 1125 Distribution-Second Phase and SLT 1119 for CFE were continued. this subsidiary was awarded the contract to develop EPC works in Complexo Petroquimico do Rio de Janeiro (COMPERJ). TEBRA continued rendering maintenance and improvement services for the off-shore platforms at Macaé Northeast and Marlim. In Brazil. All this contracts were executed for TGP . In the oil & gas sector.53 billion.

basic and detail engineering works. as well as two contracts with Anglo American Sur S. In Saudi Arabia. Tanajib-Manifa Water Pipeline. and Engineering Services for Compañía Minera Casale. was awarded the Plant Maintenance Service and Sea Water Drive Systems Construction Contract for Minera Escondida Limitada. is in full swing since last May 2010. for Municipalidad de Maldonado. an EPC including 1. the Company’s subsidiary Techint Chile S. Works in the iron & steel plants continued.A. (EPR). Industrial Cleaning and Electromechanical Maintenance. Pluspetrol Peru Corporation S. bidding C and EPC projects for execution of pipelines and facilities in these areas belonging to clients such as Enbridge. In Uruguay. the Company’s subsidiary Saudi Techint Ltd. Repsol – YPF Transportadora de Gas del Perú (TGP) and . de C. (TENCO) is carrying out.. crossing through six countries of Central America for Empresa Propietaria de la Red S. Suncor and Husky. as the final user.A. including Exxon Mobil. the Subsidiary has focused its efforts on developing activities in the Oil Sands and other oil & gas producing areas in Western Canada. Techint E&C Inc. (TEMEX) continued working in the Sistema de Interconexión de Países de America Central (SIEPAC Project). the Alky Acid Unit and Acid Regeneration Unit of the Gasoline Optimization Program Upgrade Project for Petroleum Company of Trinidad and Tobago (PETROTRIN).V. and TerniumSiderar. In the area of steel & iron services. continued rendering services of Heavy Duty Cleaning. for TenarisSiderca. and adhering to. (SAUTEC) has successfully completed the subcontract it was working on. In the engineering market. Corporación Vial de Uruguay and Obras Sanitarias del Estado. Meanwhile. In the second part of the period. the Company’s subsidiary Techint International Construction Corp. with Saudi Arabian Oil Co. importance of. and in search of the constant improvement of safety & health and the continuous training of human resources. the Company’s subsidiary Techint S. through its subsidiaries. Additionally. the strict compliance of the rules and regulations which govern the protection of the environment. the Project awarded last fiscal year. CNRL. a 345-km long pipeline. in Argentina and for TerniumHylsa and TenarisTamsa in Mexico. for JGC Corporation.850 km of transmission lines and 16 substations.A. procurement. the Company keeps involved in different projects in the civil and water infrastructure sector. the following activities were carried out: concept. assistance for the development of technical specifications. and assessment of investment and site assistance projects for several clients. All these activities were undertaken recognizing the In Canada.A.A. the Company. (TECAN) successfully completed the Alberta Clipper Project. under an engineering. and construction management (EPCM) contractual arrangement. In Central America and the Caribbean.Annual Report | 11 In Chile. . Nuayyim ASL Crude Increment Facilities Project.

A.A.A. The main projects currently in progress are listed below. (Petrobras) Petroleo Brasileiro S.A. (Petrobras) ThyssenKrupp (C.A. Country Project Client Contract total amount USD millions 368 236 Argentina Punta Negra Engineering Services.A.S. . Minera Esperanza (Antofagasta Minerals S. Empresa Propietaria de la Red S. Anglo American Sur S. Abreu e Lima (RNEST)(a) ThyssenKrupp Companhia Siderúrgica do Atlantico Canada Canadian Mainline Pipeline Project (Alberta Clipper Project)(a) Enbridge Pipelines Inc.Atucha II Barrick Gold Corp. Major works in progress per country TEI&C’s subsidiaries provide full engineering. Ternium . (Petrobras) Petroleo Brasileiro S.A. Barrick Gold Corp.A. construction. 251 Central America and the Caribbean Gasoline Optimization Program Upgrade(a) SIEPAC 1(a) SIEPAC 2 SIEPAC Substations Petroleum Company of Trinidad and Tobago Ltd.A.12 | TEI&C S. Supplies and Mechanical Assembly at the Ancillary Building of the Reactor Pascua Lama(a) Veladero Mine(a) Works and Services in plants Energía Provincial Sociedad del Estado (EPSE) Nucleoeléctrica Argentina S. Bernardes de Cubatão Refinery (RPBC) Lot I Tanks Refineria do Nordeste.Tenaris COMPERJ Petroquimicos basicos Petroleo Brasileiro S. procurement.A.) Compañía Minera Casale Minera Escondida Limitada 318 139 57 43 156 133 1 14 (b) Chile Replacement of Mineral Pipeline and Reclaimed Water System Esperanza Water Pipeline and Concentrate Pipeline Engineering Services for water and concentrate transportation system Mechanical Maintenance . operational and management services to develop and execute major engineering and construction projects.058 782 380 200 3 Brazil Unidad de Coque Retardado (COMPERJ) Diesel Unit of Landulpho Alves-Mataripe Refinery (RLAM)(a) Gasoline Unit of Pres. Consorcio Abengoa-Inabensa (APCA) Empresa Propietaria de la Red S.) 136 54 59 (b) 1.

Early Works Expansion of LNG transportation system . Transportadora de Gas del Perú S.Annual Report | 13 Country Project Client Contract total amount USD millions 91 46 87 (b) 33 (b) 126 73 14 Mexico SLT 1119 Transmission and Transformation of the Southeast (a) 195 SE 1125 Distribution (2° phase) Works and Services in plants Petacalco Project Comisión Federal de Electricidad Comisión Federal de Electricidad Ternium Hylsa .Addition of fourth pump Saudi Arabia Bolivia Tanajib .Manifa Water Pipeline Third Processing Train of the Sabalo Gas Treatment Plant JGC Corporation Petrobras Bolivia 48 87 Uruguay Maldonado Effluents Sanitation of Ciudad de la Costa Road 18 Sanitation of Maldonado Bridge over Jose Ignacio Stream Obras Sanitarias del Estado Obras Sanitarias del Estado Corporación Vial del Uruguay (CVU) Obras Sanitarias del Estado Municipalidad de Maldonado 37 20 8 5 2 (a) Projects under a consortium.A. (TGP) Peru Camisea Maintenance Jungle Loops . The amount corresponds to total contract amount at 100%. (TGP) Transportadora de Gas del Perú S.A.TenarisTamsa Comisión Federal de Electricidad Compañía Operadora de Gas del Amazonas S. . (b) The amount corresponds to annual estimated sales.A.

14 | TEI&C S.A. Canada Pipelines Canadian Mainline Pipeline Project (Alberta Clipper Project) Mexico Iron & Steel Plants Ternium Plant in Monterrey Tenaris Plant in Veracruz Energy Central Expansion Petacalco SLT 1119 Transmission and Transformation of the Southeast 195 SE 1125 Distribution (2nd phase) Central America and the Caribbean Oil & Gas Gasoline Optimization Program Upgrade Energy Siepac Lots I and II Siepac Substations Peru Pipelines Addition of a fourth pump Jungle Loops CAMISEA Pipeline Maintenance Bolivia Oil & Gas Third Processing Train for Sábalo Chile Mining Plant Maintenance Services Replacement of Mineral Pipeline – Los Bronces Construction of Stations and Singular Points – Los Bronces Pipelines Esperanza Water and Concentrate Pipelines Brazil Oil & Gas Gasoline Unit at RPBC Diesel Unit at RLAM Lot I Tanks at RNEST Coke Unit (COMPERJ) Uruguay Infrastructure Sanitation of Maldonado Maldonado Effluents Sanitation of Ciudad de la Costa Road 18 Bridge over Jose Ignacio Stream Others-Arabia Pipelines Tanajib .Manifa Water Pipeline Argentina Mining Pirquitas Mine Veladero Mine Pascua Lama Energy Atucha II Punta Negra Hydroelectric Station Iron & Steel Plants Ternium Plant in Campana Tenaris Plant in San Nicolas .

2010 will be the enforcement date. (COMEI) 60% of the shareholding in Norpower. in June 2010. Besides. In August 2009. By mid-April 2010.I. TEMEX wound up three companies whose purposes had already been performed. In December 2009.Annual Report | 15 Current Structure During the fiscal year ended June 30. but to this date this company has not engaged in any business activities. and of Sociedad Carbonser.L. (TEMEX) continued with transactions aimed at reorganizing its business areas.V.A.F and 38. TEI&C recorded the following changes in the participating interests of related companies in the engineering. In March.A.I. 2010. it transferred together with Constructora Mexicana Electromecánica y de Instrumentación. TEMEX sold its whole participating interest. resolved that next December 31. the spin off of Tecnomatter and the subsequent merge of the spin off with Sidernet.A. subsidiary of TEMEX Carbonser S.V. For the purpose of unification of the end of the fiscal year of engineering and construction companies.V. de C.A.A. the Board of Directors’ Meeting of TEI&C held on December 9. . the governing bodies have determined December 31 as the most suitable date. S. (PREGLOSID) subscribed and paid in a capital increase in its subsidiary Sidernet Mexicana S.P de C. (TPP). thus becoming also the European holding of this business by concentrating the operations in Argentina.V. for USD 1. Preglosid S.A. to companies of the energy sector of the Techint Group. .U.V. Canada and Central America.A. capital stock and voting rights of Techint Compañía Técnica Internacional S.V. de C.A. Tecnopower S. de C..A.71% of the capital stock of Techint Inversiones S.I. and Sidernet S. the latter becoming the successor for the supply of steel and iron services.A. since the relevant contract undertaking such purchase had been executed in November 2008. Mexico. PREGLOSID increased its capital stock.50% of the capital stock) it held in the Argentine company Prestaciones Globales Siderúrgicas S. de C. S. Upon this transaction. TEI&C contributed to PREGLOSID the direct participating interest (97. Therefore... the shareholders of the Argentine companies Tecnomatter Instalaciones y Construcciones S. 97. TIC) the direct participating interests it held as of such date in Argentine engineering and construction companies.94% of the . S. TIC increased its capital stock. Throughout this fiscal year. was created.V.A. and 100% of the shares of TGT de México.7 million. In June 2010. construction and service business (see further detail in note 1 of the Financial Statements): In September 2009.C. (hereinafter.L.A resolved a corporate reorganization.V. de C. de C. thus consolidating in its shareholders’ equity the transactions for the supply of steel and iron services recorded in Argentina. de C. Upon this transaction.A. 2009. After the recomposition of capital of Terminal Portuarias del Pacífico S. the Company contributed to Techint Ingeniería y Construcciones S.V.A.V. TEMEX acquired 25% of the shares of Sociedad Mexcarbón S. consisting in the capitalization of both companies. the Mexican subsidiary Techint S. de C. S.A. Mexico and Venezuela.U. Finally. de C.

(Canada) 100% Techint Servic S. (Argentina) Servicios Siderúrgicos SERSISA S.29% FLINWOK 4% 96% 100% Techint S.A.I.81% TEARG 1.99% 100% Energ Tamaulipas S.A.A.A.A.5% TEI&C S. (Mexico) 99% 1% Techint Chile S.06% TEINVA 49% Others Tanks Tech S.92% Techint Inversiones S. (Mexico) 7. (Mexico) 70% CARBONSER S.F.L. (Mexico) 51% Coincar S.A.A.A. de C. (Spain) 97.L.V. de C.V.V. Inv.V. (Mexico) 100% Techint S.V.V.A.84% 62. (Venezuela) 75% 25% 99% 1% Cia. (Mexico) 50% Others .V.A.88% Flinwok S.V.5% 100% 99.C.V. (Mexico) 60% 40% Techint E&C S. (Argentina) Sidernet S.A. de C. Conc (Argentina) 1.94% Techint S. Ferroviaria S.A. (Guatemala) 1% 20% Others Ferroexpreso Pampeano S.71% BV de NIEUWE WEG (the Netherlands) 99.V.U. (Argentina) Costa Azul BMVT S.A. is as follows: TEI&C S. de C. de C. (Mexico) 51% 50% 50% Others TECHINT (Trinidad & Tobago Branch) 95% TENCO (Colombia Branch) 60% 49% Others Elina 406 S.A.01% 99.A. de C.A.A. (El Salvador) 96% 4% 0.L.C.I.A.38% FLINWOK SOCOMINTER (Brazil) 77. (Chile) 50% Techint Comp Tec Int S.A. (Argentina) TEBRA (Brazil) 99. de C.86% Others 2. (Mexico) 50% 50% MEXCARBON S.A.A.F.A. de C. (Bolivia) Saudi Techint Ltd (Saudi Arabia) 40% Others 50% Others BVT LNG Costa Azul S.F.A.A. (Argentina) 80% 0.A.A. de C.A.V.999% 0.A.F. de C.V. de C. (Uruguay) 100% Techint E&C Inc.16% Others Techint S.A. 30% Other OT Nitroelina S.R.A. 2010.A.14% 22.09% TEI&C S.A.L. Const y Serv Ltda (Chile) 50% Others Tecnomatter In y Cons S. (Mexico) Techint Ing y Const S.19% FLINWOK SICI S.I.0001% Techint Comp Tec Int S. de C.68% 2.V. (Peru) 76.V.A. (Uruguay) 100% 100% PREGLOSID S.C. (Spain) 100% Techint Ing y Const S.I.A. The family tree for TEI&C (including the most important companies) as of June 30.91% Techint Int Const Corp (TENCO) (Bahamas) Prest.94% 53.16 | TEI&C S.A.5% TEARG Sidernet de Vz C.U. (Argentina) 100% 100% 3. 97% Sidernet S. Siderúrgicas S. Glob. de C. (Uruguay) 96.12% Techint S. (Mexico) 97. (Nicaragua) 65% 35% Others Fluor Techint S. (Venezuela) 100% COMEI S. (Mexico) 2. (Mexico) 60% 40% 99% Techint S.I.I. (Panama) 37. (Argentina) 38.5% TEINVA 2.R.A. (Honduras) 98% 2% 23. de C.

0 9. as compared to USD 211.7 21.3) 171.7 10.9) (4.6 million.3 million. Depreciation and Amortization) for this fiscal year amounted to a total of USD 213.3 (1. Tax.5 171. Revenues of the fiscal year ended June 30.8 (3. Gross margin reached USD 304.4) 174. EBITDA (Earnings before Interest.6 114.598. representing a 4% decrease with respect to the previous fiscal year. net Operating income Gain from the purchase and sale of shares and investments Financial results.2 (14.7 (56.4 million with respect to the previous fiscal year.8 0. 2010 reached the sum of USD 1.4 (1. administrative and selling expenses Other income and expenses.530.225.6 million and 13% of the previous fiscal year.5) 109.1) 2. an increase of USD 38. respectively.Annual Report | 17 Economic and financial information Summary of Income Statement USD millions June 30.2 5.7 165. 2009 1. 2010 Revenues from construction contracts and other services Cost of sales Gross profit General.3 (2. net Result from investments in companies Income before income tax Income tax expense Net income from continuing operations Income / (Loss) from discontinued operations Net income for the year Attributable to Equity holder of TEI&C Non-Controlling interests 109.530.0 157.5) 1.8 4.332.6 (134.2) 266.2 (0.7) 304.2 (109.6 million.4 June 30.5 The Company’s very good performance during this fiscal year is reflected in its economic and financial position.4 1. .4) 189.2 114. growing from 17% to 20% on sales. representing 14% on sales.9) 164.5 162.

mainly originated by the escalation in the different markets where the Company operates. mainly due to a decreased value in some Property. mainly due to exchange differences. amounts to USD 319. General. representing an increase of USD 112.2 million at the beginning of the fiscal year.2 1.1 113.7 28.0 1.9 million.2 in the previous fiscal year.2 34. with respect to sales showed an increase. With respect to an increase mainly due to revaluation of property. plant and equipment and borrowings.1 million. Finally. administrative and selling expenses. Plant & Equipment as a result of the assessment performed by independent professionals.3 1. The increase of USD 127.171.5 million is mainly due to the income obtained. Thus.7 804.9 million.203. Summary of Balance Sheet USD millions June 30.0 1.171. respectively. respectively. as of the end of the fiscal year.8 450. The other operating results have recorded a loss of USD 4.8 TEI&C’s consolidated majority shareholders’ equity as of June 30. Financial results showed a loss of USD 2. 2010 Non Current Assets Current Assets 399. net income was USD 114. .8 802. the revaluation of machinery.7 91.4 million. representing 9% with respect to 7% of the previous fiscal year.18 | TEI&C S.7 million as compared to USD 450. net of cash dividend distribution (USD 33 million). Current liabilities. representing 8% of revenues. there was Current assets have recorded similar values to those of the previous fiscal year.9 Equity Shareholders Non-Controlling interests Non Current Liabilities Current Liabilities 577. 2009 369. compared to the profit of USD 21. Within non-current assets and liabilities.203. as compared to the sum of USD 171.9 million with respect to fiscal year 2008/09.A. the decrease is due to a sharp decline in borrowings and trade and other payables.9 595.5 million and 11% in previous period. 2010 reaches USD 577.8 484. the Company’s working capital.9 June 30.

71 1.0 (8.8 As regards the financial situation. mainly. 2009 131.1 million.1) 56.6 million along the fiscal year.4 June 30.35 1.0 3.0 101. Regarding financing activities. Related to investment activities.8) 100.0) (116. there was a cash and cash equivalents net increase of USD 59.4 million. 2010 Net cash and cash equivalents at the beginning of the year Net cash generated by operating activities Net cash (used in) generated by investing activities Net cash (used in) financing activities Net increase in cash and cash equivalents Effect of exchange rates changes Net cash and cash equivalents at the end of the year 222. 2010 Financial solvency Liquidity Indebtedness Gross margin 2. generated an application of funds of USD 116. The main financial indicators are: Indicators June 30.42 17% All indicators are very satisfactory. net of proceeds from disposal of those assets. .2) 222.99 20% June 30.66 0. which is mainly associated to the income for the period.Annual Report | 19 Summary of Cash Flow Statement USD millions June 30.6 282.8 199.01 1. 2009 1.4 (38.1 (27.1 million from its operating activities. the repayment of borrowings and the dividend distribution (USD 33 million). there was a cash decrease of USD 27 million due to the purchases of fixed assets. TEI&C’s cash increased USD 199. net of the items that didn’t generate cash movements and an increase in the working capital. and reveal TEI&C’s good performance in the execution of its operations.4 37. with a final balance of USD 282.

• Redefinition and establishment of the main Quality Since its implementation. and partners such as Fluor Daniel. the goals of which are focused on reducing sub-standard actions and conditions to prevent accidents. simplification of processes and value added in each of our operations. Indicators for products associated to the Projects developed by the Company. 7 million hours to refineries and 5 million hours to industrial works without disabling accidents. In particular. application of coherent preventive procedures for all the Company’s units together with an ongoing and widespread training. the Integrated Management System (IMS) has proved to be suitable for a corporate management focused on prevention as to industrial safety. with respect to our clients. as well as sub-contractors. individual performance is monitored by means of a specific indicator. environmental protection and the welfare of communities. compliance with local laws. by deeply focusing on the cross-sectional . Regarding the latter. in addition to the recognition for good performance in prevention by our leading clients. a special focus on the quality of the products and services provided.A. In this respect. Health. collaborators. The IMS is audited by Det Norske Veritas (DNV) and certified under international standards (ISO 14. Safety and Environment (HSE) Techint has developed a preventive vision focused on a commitment to safety. In the 2009 – 2010 period. as well as the acknowledgement of clients. in addition to performing other actions addressed to equipment and facilities and to safety in the working place. we are clearly oriented to continuous improvement.PACS). we have completed the following actions: • Substantial completion of the review and update of the Company’s Documentary Database. this entails To minimize the repetition of accidents.20 | TEI&C S. Petrobras and Hunt Oil. This approach involves management and workers alike. 21 million hours were devoted to pipeline works.001:2004 and OHSAS 18. and by innovating in methods such as behaviorbased safety and preventive safety observation at work (OST). occupational health. and this shows a substantial improvement in preventive control in execution of works. TACOP (Tablero de Comando de Actividades Operativas de Prevención – Preventive Actions Command Switchboard. suppliers and the communities where it operates. shareholders. From our processes standpoint. 10 million hours to oil & gas services. thus promoting a strong commitment of employees to become aware and internalize preventive conducts. The system is focused on the identification of risks associated to the work developed by the Company. health and environmental protection.001:2007). paying special attention to efficiency. • Quantitative and qualitative improvement of measurement of Client’s Satisfaction in the different projects. the IMS has resulted in the reduction of global accident rates (Frequency Rate and Seriousness Rate) by over 80%. Quality The Company is always seeking to constantly meet and exceed the expectations of its clients. such as Barrick. with the basic goal of reducing occurrence of behaviors characterized by non-compliance with safe operating rules and practices.

With a remarkable emphasis on development of technical and managerial competencies. . • In December 2009. This planning is translated into recruitment. Thus. by establishing the status follow-up of each one of them in the projects. The foundations of the training plan continued to be the Project Management Program. It also seeks to prevent problems and ensure the predictability of results in order to comply with our commitment to meet and exceed the expectations of all related stakeholders. such as those addressed to supervisors of the Company’s projects. implement and follow up plans for personnel development and training. as well as the external and in-house programs carried out in the Engineering Direction. as well as an alert system for the different functional areas with a direct responsibility. These actions allowed that over 3% of worked man-hours were devoted to training. Other programs are also worth mentioning. • Boosting and improvement in measurement and use of quality management indicators for projects. The long training cycles in this industry demand a strict planning in order to anticipate the skills that will be required to face business challenges. during this fiscal year.Annual Report | 21 analysis of information obtained and on generating actions for improvement. training and development plans involving all the Company’s personnel. in particular the PQI (Project Quality Index). Techint seeks to have within the Company the talent required to take part in the projects submitted by our clients. addressed to professionals in different areas of the Company with the potential required to hold key positions in project management. focused on the unification and improvement of methodologies and the reliance on truthful and updated information so as to minimize risks. and the Young Professionals Program. • Improvement of the single database of findings follow-up. the Company was recertified pursuant to ISO 9001:2008 of Quality Management Systems (certification in force since 1996). the Company developed a training program that comprised different corporate levels. seeking to speed up the insertion of newly graduated professionals in the business. Human resources Human resources management is based on the use of several tools enabling to draft. The Company’s Management has decided to maintain the direction adopted in previous years.

Mexico. Brazil. so as to work hand in hand with our clients from the initial stages of study of their investment projects. as well as in processing facilities – such as petrochemical plants and refining – in Brazil (Premium I and Premium II).A. we continue working to accompany our clients under the new market conditions. In the Oil & Gas sector. expertise or track record. Colombia. Thus. We foresee important opportunities for the execution of engineering and construction works in Oil and Gas Transportation Projects in Peru. Peru and Trinidad & Tobago. especially where this presence makes the difference due to our knowledge. the Company is closely following the development of projects in Argentina. Against this backdrop. These alternatives include the search for technical and financing strategies that may involve the multilateral lending agencies and export-promotion agencies of other countries. Colombia. . industrial and energy works. expertise or track record. in order to offer creative alternatives that facilitate investment decision-making. especially where this presence makes the difference due to our knowledge. Peru and Trinidad & Tobago where we are planning to participate in the corresponding bidding processes. Prospects for fiscal year 2010-2011 Although last year’s international crisis has not yet concluded and still affects the activity of the markets where the Company operates. Bolivia and Colombia (where we were recently awarded the engineering contract of OCENSA’s pumping stations. the Company subsidiaries’ strategy is to focus on keeping an active presence in the market of large infrastructure. The Company subsidiaries’ strategy is to focus on keeping an active presence in the market of large infrastructure. In Argentina a contract was signed after the end of the fiscal year for the construction of a new gas oil hydrotreatment (HTG) plant of La Plata refinery for YPF and the Company keeps . we anticipate reasonable general perspectives since clients seem to have decided to continue with various investment projects. industrial and energy works.22 | TEI&C S. Canada. the first one since the reopening of Bogota’s business office).

showing its skills in the completion of important projects of a multidisciplinary nature and its high compliance rate. a project in which the Company is working at an early stage. carbon developments in Colombia. assistance and cooperation. Regarding the Mining area. thus proving the Company’s active involvement in the Argentine nuclear plan. Statoil. CNRL among others. Vale has strong expansion programs where we plan to bid. in Argentina. In Bolivia. In this case. besides the urban infrastructure for sporting events taking place in 2014 and 2016. TX. the Company expects to quote several works for gas separation plants. After the end of this fiscal year. In Brazil. We would also like to acknowledge financial institutions. In the Infrastructure sector. the Company seeks to keep its current share in the Power Transmission and Distribution system of the Mexican market. next year it is expected to participate in similar or minetype projects in the oil sands for Total.Annual Report | 23 its business activities for future undertakings. Meanwhile. and has participated in bids submitted to private clients. works will continue at the Punta Negra hydroelectric station and other products are being analyzed. the Company will continue analyzing several opportunities regarding energy projects and civil infrastructure. mainly in sanitation. as well as the water and sewage of Ciudad de la Costa in Canelones. In the Energy area. the Company’s presence will be reinforced with the beginning of Stage III of the Argentine-Chilean bi-national project of Pascua Lama and the participation in the EPC activities at Río Colorado Potassium Mine. and in Brazil. as the sector becomes stable and the prices of the main minerals recover and/or improve. The Board of Directors . This Board wishes to express its gratitude to all employees of TEI&C and its subsidiaries for the cooperation and effort shown in the project carried out during the fiscal year. The Company has also focused on the segment of engineering services which seems to be an interesting niche for development in the Mexican market. a contract was executed for a new stage in the Atucha II project. we foresee important opportunities in copper and other mineral developments in Peru and Chile. At the beginning of the new fiscal year. a liquids pipeline for Transcanada that runs from Hardisty in Alberta to facilities in Houston. And Oil Sands where Techint has participated in bid processes for EPC thermal (in-situ) projects for Husky Energy. The brief description above shows the Company’s willingness and efforts to maintain its presence and leadership in the Latin American engineering and construction market. railways. and ports. the proposal of the KepcoSamsung-Techint consortium was signed with Comisión Federal de Electricidad for the Combined Cycle Power Plant North II project. it is majorly pursuing opportunities in two fields Pipelines (with projects out for bid from major clients such as Transcanada and Enbridge) where Techint will participate in the bidding process for the Canadian portion of Keystone. suppliers. recently awarded to our subsidiary by Intendencia Municipal de Canelones. we foresee high activity in this area. Such projects include San Carlos / Melo / Frontera High Voltage Line in Uruguay. In Mexico. customers and sub-contractors for their trust. we expect that the activities in several projects –suspended because of the crisis– will be resumed. with an active participation in this sector. In Argentina. urban transport system. in Canada.

Board of Directors President Carlos Eduardo Bacher Vice president Eduardo Nicolás Rocca Couture Directors Ricardo Pascale María Virginia Jubin Vértiz Mario Osvaldo Lalla Luis Pablo Solari Damonte. 2009. Officers were appointed at the Board of Directors’ Meeting held on that same date. Directors were appointed at the Regular Shareholders’ Meeting held on December 2.A. .24 | TEI&C S.

181.Consolidated Financial Statements | 25 Legal Information Denomination: TEI&C S. Jersey Channel Islands Parent Company activity: Investments Parent Company: Shares: 88.67% Votes: 88.67% 1 2 See note 14 to the consolidated financial statements UYU: Uruguayan Pesos . 2105 Registry number: RUC 21-5098860012 Capital Stock: Shares: 5.181.274 1 Face Value: UYU 5.537.A.537.274 2 Parent Company: Techint Limited Legal address: Equity Trust House 28-30 The Parade. Legal Address: La Cumparsita 1373 7th Floor Montevideo (11200) (598-2) 901-9091 Company activity: Investments Date of registration: February 16. 2005 Expiration of Company Charter: February 16. Helier. JE4 8XY St.

.A. Punta Negra Hydroelectric Station. San Juan.26 | TEI&C S. Argentina.

Consolidated Financial Statements | 27 .

.

.

350 4.490 23. 2010 June 30.662 1.sale liabilities Trade and other payables Construction contracts work in progress Other liabilities Total liabilities Total equity and liabilities The accompanying notes are an integral part of these consolidated financial statements.175 34. 2010 and 2009 All amounts in USD thousands Notes Assets Non-current assets Property.780 91.731 67 1.339 102.763 254.076 41. 2009 4 5 6 7 8 16 309.091 83.134 605.230 594.939 27.A.163 1.939 98.774 38.463 3.472 113.389 6.862 36.287 158 223.376 2.914 15 17 18 19.for .614 17.265 458.642 28.953 116. plant and equipment Intangible assets Investments in associated companies Other investments Trade and other receivables Deferred income tax assets Current assets Inventories Derivative financial instruments Trade and other receivables Construction contracts work in progress Held .648 35. Consolidated Statement of Financial Position at June 30.480 40.808 .969 686.140 802.342 598.776 450.211 36.906 92.171.925 15 16 17 18 18.203.203.765 9 12 8 11 7 13 35.139 369.848 366.340 65.808 577.sale assets Other investments Cash and cash equivalents Total assets Equity and Liabilities Equity Capital and reserves attributable to the Company's equity holders Non-controlling interests Total equity Non-current liabilities Borrowings Deferred income tax liabilities Trade and other payables Other liabilities Current liabilities Borrowings Held .658 30.308 269.567 804.171.for .603 304.821 6.479 355 6.176 1.30 | TEI&C S. June 30.131 94.883 1.723 2.789 484.542 94.043 1.735 399.750 484.752 5.010 283.

571 27 27 29 (124. 2009 1.118 (11.851) 164.Consolidated Financial Statements | 31 Consolidated Income Statement for the years ended June 30.812 4.794 246 28 28 6 9.598. 2010 and 2009 All amounts in USD thousands Notes Continuing operations Revenues from construction contracts and other services Cost of sales Gross profit General and administrative expenses Selling expenses Other income and expenses.196) 266.575 114.387 (3.594) 1.802 24 5.530.409 (1.225.008 157.213 (101.controlling interests Net Income for the year The accompanying notes are an integral part of these consolidated financial statements.513 171.903) (7.387 162.551 109. 2010 June 30.551 .678 53.944) (4.374) 174.332.724 165.251) 171.724 10.542) 109. net Operating income Gain from the purchase and sale of shares and investments Financial income Financial costs Result from investments in associated companies Income before income tax Income tax expense Income from continuing operations Discontinued operations Income / (Loss) from discontinued operations Net Income for the year (1) (1) Attributable to: Equity holders of the Company Non .693 30 (56.191 (32.189) 2.337 27 (1.033) (384) 189.038 9.982) (9.236 114. June 30.151 1.766) 304.176 (14.

Gasoline Optimization Program Upgrade Project. As of June 30.32 | TEI&C S. .A. 2010. Trinidad and Tobago. the physical progress rate was 94%.

controlling interests 12 4 4 June 30.977 7. .387 55.828) 215 120.995 (4. 2009 171.042 June 30.178 3. 2010 114.967) (158) (215) 165.065 165.893 The accompanying notes are an integral part of these consolidated financial statements. 2010 and 2009 All amounts in USD thousands Notes Net Income for the year Other comprehensive income: Gain on revaluation of PP&E Decrease of revaluation of PP&E Depreciation of reserve for revaluation surplus Decrease of reserve for revaluation surplus due to PP&E disposal Currency translation differences Cash flow hedge Other comprehensive income for the year net of tax Attributable to: Equity holders of the Company Non .653 240 120.Consolidated Financial Statements | 33 Consolidated Statement of Comprehensive Income for the years ended June 30.269 508 (60.551 6.042 120.893 157.

2009 (1) The dividends were approved by the Board of Directors’ meeting held on May 8.293 - 72. 2008 Net income for the year Other comprehensive income Gain on revaluation of PP&E net of tax (see note 4) Depreciation of reserve for revaluation surplus net of tax Decrease of reserve for revaluation surplus due to PP&E disposal net of tax Changes in equity reserves (see note 12) Currency translation differences Total comprehensive income for the year Capital Surplus (see note 1) Disposals of reserve for investment sale Resolution of the Special Shareholders' meeting held on 09. 2009.08: Capitalization of irrevocable contributions Resolution of the Shareholders' meeting held on 11.293 .controlling interests Balance at June 30.07.317 - 2. 2009 and May 20. 2010 and 2009 All amounts in USD thousands Attributable to the Company’s Equity Holders Capital Stock Irrevocable Contributions Legal Reserve Balance at June 30.317) - 218. Consolidated Statement of Changes in Equity for the years ended June 30.317 (72. 2009 and were ratified by the Shareholder's meeting held on December 2.A.08: Board of Directors' fees Dividend distribution (1) Changes in non .218 - 72.535 - 2. 146.34 | TEI&C S.30.

513 (9.Controlling Interests Total Equity (1.266 183.925 .884) - 63.267 484.018 6.178 3.030 (11.243 9.647 162.154) (2.511 215 (60) (20.428) 51.Consolidated Financial Statements | 35 Capital Surplus Cumulative Translation Adjustments 9.269 508 215 (60.914) 60.893 9.828) 120.087 14.178 (14.500 - 20.750 (60) (20.127 (51.555) (51.758) (11.507) - 215 215 11.709 171.038) (42.555) - Reserve for PP&E Revaluation Surplus Other Reserve Retained Earnings Non .000) 224.196 3.914) - - - - - - - (4.000) 14.551 6.927) (2.038 18.273) 240 - 372.914 (11.267 34.

218. Consolidated Statement of Changes in Equity (Cont.02. .632 - 218.535 - - 2.A.) for the years ended June 30.10 (2): Capital Surplus (see note 1) Changes in non . 2010 (2) The dividends were approved by the Board of Directors and will be ratified by the next Shareholder's meeting.controlling interests Balance at June 30.09: Board of Directors' fees Legal Reserve Dividend distribution Dividend distribution approved by the Board of Directors’ Meeting held on 02.535 - 11.36 | TEI&C S. 2009 Net income for the year Other comprehensive income Gain on revaluation of PP&E net of tax (see note 4) Decrease of revaluation of PP&E net of tax (see note 4) Depreciation of reserve for revaluation surplus net of tax Decrease of reserve for revaluation surplus due to fixed assets disposal net of tax Changes in equity reserves (see note 12) Currency translation differences Total comprehensive income for the year Resolution of the Shareholders' meeting held on 12.925 The accompanying notes are an integral part of these consolidated financial statements.293 9.25. 2010 and 2009 All amounts in USD thousands Attributable to the Company’s Equity Holders Capital Stock Irrevocable Contributions Legal Reserve Balance at June 30.

430) - Reserve for PP&E Revaluation Surplus Other Reserve Retained Earnings Non .000) 2.428) (2.995 (4.015 124.632) (24.476) (44.750 4.024 - 215 (215) (215) - 224.511 55.535 - (9.967) (10.771 4.981 (13.562 (13.087 109.776 .771) (4.598 (72) (9.562 (1.681) 605.967) (215) (158) 165.038) - 51.430) (2.000) 34.272 7.042 (72) (24.925 114.387 55.575 218 2.Consolidated Financial Statements | 37 Capital Surplus Cumulative Translation Adjustments (42.000) 305.812 10.777 (4.000) 2.134 (9.858) 87.681) 28.015) 36.Controlling Interests Total Equity (4.065 - 484.

473 6.242 724 (4.619 617 (11.429 (244) 14.584) (310) 414 61.123 (67.148) 29.924) (30.399) 5.340 (586) (205) (246) (2.577) 11. 2009 114.534) 2. net and others Result from other investments Result from the sale of shares and investments Result from investments in associated companies Changes in balances corresponding to: Trade accounts receivable Material and supplies Trade and other payables Other liabilities Held .600) 7.640) (159) (10.948) (2.112 6. Consolidated Statement of Cash Flows for the years ended June 30.722 (1.768) (1.209) 199.014) (384) 99.for .386) 101.428 (410) (13.964 (12.A.458 .551 48.081 (23. 2010 and 2009 All amounts in USD thousands Notes Cash flows from operating activities Net Income for the year Adjustments to reconcile net income to cash flow operations PP&E depreciation Intangible amortization Construction contracts in progress Net provisions Net allowance for doubtful accounts Tax accrued Social security costs Unrealized gain / losses on derivate financial instruments Gain from the sales of PP&E Impairment loss Interest accrued from trade and other receivables Discount at current value credits Interest accrued from borrowings Financial results. 2010 June 30.061) 18.362) (80.033 812 (35.215 671 (25.387 171.304) 16.sale assets and liabilities net Currency translation adjustments Net cash generated by operating activities 6 7 28 29 4 8 30 20 4 5 June 30.701 (3.639) (18.38 | TEI&C S.724) 53.327 (21.

842 3.082) 5.991) 10.711) (976) 12. equipment and vehicles.282 (95) 37. 2010 June 30. 2010 and 2009 All amounts in USD thousands Notes Cash flows from investing activities Proceeds from disposal of PP&E Purchases of PP&E Purchases of intangible assets Proceeds from sales of other investments and investment in associated companies (net) Derivative financial instruments Increase due to business combination (see note 1) Decrease due to sale of subsidiaries (see note 1) Net cash (used in) / generated by investing activities Cash flow from financing activities Repayments of borrowings (net) Changes in non-controlling interests Board of Director’s fees Dividend distribution Net cash used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at the beginning of the year Effect of exchange rate changes Cash and cash equivalents at the end of the year Non .565 13 282.460 (26.810 7.635 (41. net of tax effects and decrease The accompanying notes are an integral part of these consolidated financial statements.508 6.842 3.957 (54.000) (116.848) 100.000) (38.019 222.426 (14.) for the years ended June 30.178 .058 130. June 30.Consolidated Financial Statements | 39 Consolidated Statement of Cash Flows (Cont.411) 5 (915) (2.200) 222.952) (60) (20.Cash transactions Finance leases Gain on revaluation of machinery.984 (8.470 50.836) (3. 2009 24.879) (11.120) (72) (33.213) 61.448 (71.071) 56.526 (4.

Financial instruments by category 11. Borrowings 16. Other investments n. Held-for-sale assets 12. Use of estimates e. Property. Property. Cash and cash equivalents 14.A. Foreign currency translation d. Derivative financial instruments k. Employee benefits u. Consolidation c. Inventories 10. Trade and other payables 18. Accounting policies a. Inventories l. Held for sale assets and liabilities and discontinued operations 3. Deferred income taxes 17. plant and equipment 5.40 | TEI&C S. Provisions v. Offsetting financial instruments j. Cash and cash equivalents q. Trade and other payables p. Impairment of non-financial assets h. Basis of preparation b. Investments in associated companies 7. Financial risk management 4. Trade and other receivables o. plant and equipment f. Other investments 8. Construction contracts work in progress m. Derivative financial instruments 13. Revenue recognition w. Current and deferred income tax t. Intangible assets g. Equity r. Index 1. Borrowings s. Trade and other receivables 9. Intangible assets 6. Other liabilities to the Notes to the Consolidated Financial Statements . Share capital 15. General Information 2. Financial assets i. Leases x.

Cost of sales and expenses by nature 28. net 30. Participation in Joint Ventures 22. Employee benefits 21. Other income and expenses. Restricted assets 24. Subsidiaries 27.Consolidated Financial Statements | 41 19. Provisions 20. Income tax expense 31. Discontinued operations 25. Contingencies and commitments 23. Subsequent events . Main contracts in progress 32. Related party transactions 26. Financial results 29.

P de C.889 shares. (“TEMEX”) continues with transactions aimed at reorganizing its business areas.A. de C. (“PREGLOSID”) • As a result of the capital contribution made in March 2010 by the Company in Socominter Sociedade Comercial Internacional Ltda.A.6 million). the Company contributed to Techint Ingeniería y Construcciones S. our direct shareholding in SOCOMINTER is 0.000. S.. References in these consolidated financial statements to “TEI&C” or “Company” refer to TEI&C S. (“TPP”).50% of the capital stock. sold its whole participating interest in TPP Finally. Upon this transaction. In December 2009.F and 125.A.L. the Mexican subsidiary Techint S. . Central America and Mexico.e.398.I.99. and of Carbonser. de C. the new Company’s participating interest is 5.A. TEI&C contributed to PREGLOSID the direct participating interest it held in the Argentine company Prestaciones Globales Siderúrgicas S. (“TIC”) the direct participating interests it held as of such date in Argentine engineering and construction companies.94340% of the capital stock and voting rights. a company controlled by Techint Limited. Elinatech S. was created. the company Elina Sureste S.V.A.V. was registered in Uruguay in February 2005 and is a part of the Techint Group (“TG”). and 100% of the shares of TGT de México.A.I. Canada. construction and services. in . By mid-April 2010. in September 2010. representing 97. to companies of the energy sector of the Techint Group.A. subscribed and paid in a capital increase in its subsidiary Sidernet Mexicana S.A. it transferred together with Constructora Mexicana Electromecánica y de Instrumentación.A.U. S. subsidiary of TEMEX. S. de C.V. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. S. • In March 2010.A. (“TEI&C”). de C. S. TEI&C experienced some changes in its investment portfolio as regards its participating interests in companies related to the engineering.A.V.U. for 21. Besides. Elina 407. de C. unless otherwise stated 1. and the spin off merger of the latter with its parent company. 140. Techint Engenharia e Construção S. de C. • Throughout this fiscal year. and after the end of the fiscal year.V. TEI&C’s purpose is to engage in investments by holding equity interests in companies or organizations whose corporate purpose includes engineering.V. After the recomposition of capital of Terminales During the current fiscal year.42 | TEI&C S.A.002 shares plus an issue premium for EUR 81.. construction and service businesses.A.981.I.A. since the relevant contract undertaking such purchase had been executed in November 2008.080 shares.A. de C. General Information TEI&C S.. (COMEI) 60% of the shareholding in Norpower. (“SOCOMINTER”).A. S.V.L. representing 38. and its consolidated subsidiaries.V. de C. Portuarias del Pacífico S. TEMEX wound up the companies the purpose of which had already been performed or which were inactive. Carbonser S.A.186 shares.445. The difference between the price paid and the book value was charged to equity as capital surplus (USD 2. TIC increased its capital stock. which took place in May. In August 2009. de C.70538% of the capital stock of Techint Inversiones S.. de C.V. i.C.699. Upon this transaction. including the following: Tecnomatter.V.088%. representing 97.A. but to this date this company has not engaged in any business activities.V. (“TEBRA”).516.A. June 2010. (“TEARG”).A.V. 8.A.. thus becoming also the European holding of this business by concentrating the operations in Argentina.e.. Tecnopower S.V.V. Preglosid S. PREGLOSID increased . de C. i.999. of Techint Compañía Técnica Internacional S. TEMEX acquired 25% of the shares of Mexcarbón S. de C. and therefore. de C. was also wound up. which are detailed as follows: • In September 2009.909 shares .

Mexico and Venezuela.7 million) is being disclosed in the Consolidated Income Statement under “Gain from the purchase and sale of share and investments” including the return of goodwill. • During April 2009. during the fiscal year. dams.A.032 common shares..9 million) is being disclosed in the Consolidated Income Statement under “Gain from the purchase and sale of share and investments” In November 2008. de C. equal to 100% of the outstanding shares. including the following: Corporación Mexicana de Promociones Energéticas. de C.A. to take part in construction projects for buildings. de C.A. TEI&C created TIC.4 million whereas Techint E&C Inc. The difference between the price paid and the book value was charged to equity as capital surplus (USD 9. consisting in the capitalization of both companies. the Board of Directors’ Meeting of TEI&C held on December 2. (a Spanish company).001 shares plus an issue premium for the sum of EUR 1.A. resolved a corporate reorganization.5 million (USD 0. Hidro La Yesca.V. In September 2008. 2010 will be the enforcement date.A. S.V. dwelling houses and transformation industrial plants for any kind of industries and activities. and Elina Noreste S. 2009 TEARG founded Techint Ingeniería y Construcción Bolivia S. S.V. (“TECAN”) (a Canadian company) increased its capital stock in CAD 0. a subsidiary of Techint International Construction Corp. and executed a contract undertaking to purchase 25% of the shares of Mexcarbón S. from its parent company B. S.V.A.A.. Techint Chile S. de C. • In June 2010.. (TENCO) (“TENCO”). the Company acquired the control over the Mexican company TEMEX through the purchase of 51. de C.V. de C. In addition. the shareholders of the Argentine companies Tecnomatter Instalaciones y Construcciones S. 2009. S.8 million.A. This expansion in the business geographical area in Mexico and Canada required TEI&C to make capital contributions in the Dutch company for the sum of USD 34.V. (“TECHI”). Divat. roads. TEI&C experienced some changes in its investment portfolio. de C. several transactions were concluded in TEMEX in order to reorganize its business areas. Impretech Infraestructura. • For the purpose of unification of the end of the fiscal year of engineering and construction companies. de Nieuwe Weg. • During February 2009.A.V.4 million). The net loss generated by this transaction (USD 1. (“TMR”) and Sidernet S. • Throughout the previous fiscal year. Promociones e Ingeniería de Proyectos.V. resolved that next December 31.A.. the new Company’s participating interest is 6.A.636.A.A. and Servicios Industriales Comin S. TEMEX . Therefore.V. .A.. a company organized pursuant to the laws of The Netherlands. TEMEX received capital contributions for USD 38. The profit generated by this transaction (USD 11. which are detailed as follows: • In July 2008. de C. de C. thus consolidating in its shareholders’ equity the transactions for the supply of steel and iron services recorded in Argentina. sold 40% of the shares in Techint S. TEMEX wound up the companies the purpose of which had already been performed or which were inactive. the governing bodies have determined December 31 as the most suitable date. a Spanish company.500. exercised the put option on the 51% equity interest of Proyectos y Montajes Comin S.A.A. • On July 21. TEMEX transferred 10% of its shareholding in Servicios Múltiples de Burgos.V. the latter becoming the successor for the supply of steel and iron services. Laguna de Cuyutlan LNG. and therefore. the spin off of Tecnomatter and the subsequent merger of the spin off with Sidernet. de C. Proyecto La Yesca. unless otherwise stated its capital stock. the purpose of which is the administration .. During the previous fiscal year. Consequently.A. S.V. S.499. S.Consolidated Financial Statements | 43 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.A.99. S.0 million). de C. and of Carbonser. S.V.

in accordance with IFRS. a number of factors arose in the Venezuelan economy that led the Company to reconsider the treatment it follows with respect to the translation of the financial statements of subsidiaries.A. 2010 was 4. the Company increased its direct participating interest in Techint Engenharia e Construção S. the devaluation of the Bolivar fuerte. financial assets and liabilities (including derivative instruments) at fair value through profit or loss. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. These consolidated financial statements were approved for issue by the Company’s Board of Directors on October 29. de Nieuwe Weg as capital contribution. unless otherwise stated.A. finally. In May 2009. which at June 30. through the purchase of 18. The areas involving a higher degree of judgment of complexity. available-for-sale assets.V. use of certain critical accounting estimates. Certain comparative amounts have been reclassified to conform to changes in presentation in the current year. • In June 2009. Within these factors it is worth highlighting the level of cumulative inflation over the past three years. 2009 the figures were not restated. Venezuela a..S.d. The main implications of this circumstance are as follows: • At June 30. 2010 and adopted by the Company The following standards and amendments have been published and were mandatory for the Company in the year ended June 30.25% and 15% of the shares from TENCO and TEARG. under the historical cost convention. TIC received 100% of the outstanding securities of B. • Adjustment of the income statement to reflect the financial loss caused by the impact of inflation in the year on net monetary assets (loss of purchasing power). Basis of preparation These consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). or the areas where assumptions and estimates are significant to the consolidated financial statements. Classification of Venezuela as a hyperinflationary economy During the fiscal year. as modified by the revaluation of machinery equipment and vehicles (“Revaluation of PP&E”). respectively. unless otherwise stated and management of security and share interests. Accounting policies The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. are disclosed in note 2. as issued by the International Accounting Standards Board (“IASB”). It also requires management to exercise its best judgment in the process of applying the Company’s accounting policies. These policies have been consistently applied to all the years presented. 2010. dollars (“USD”). The preparation of consolidated financial statements in conformity with IFRS requires the must be considered a hyperinflationary economy. which is the functional currency of TEI&C.44 | TEI&C S. As a result. • All components of the financial statements of the Venezuelan companies have been translated at the closing exchange rate. 2.3 Bolivares fuertes per USD Standards and amendments effective in the year ended June 30. the restrictions to the official foreign exchange market and. The consolidated financial statements are presented in thousands of U. 2010: . and translation of subsidiaries whose functional currency is the currency of a hyperinflationary economy.

The revised standard introduces the concept of a statement of comprehensive income. The revised standard introduces a number of changes in the accounting for business combinations that will impact the amount of goodwill recognized. there is no impact on the presentation of the Company’s results of operations. In particular. 2009.Consolidated Financial Statements | 45 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. unless otherwise stated IAS 1 (Revised) “Presentation of Financial Statements” was issued in September 2007 and was effective for annual periods beginning on or after January 1. The revised standard provides the option of presenting items of income and expense and components of other comprehensive income either as a single statement of comprehensive income or in two separate statements. The standard is not applicable until January 1. issued in 2003. The Company has elected to present two statements: an income statement and a statement of comprehensive income. in whole or in part. As the change in accounting policy only results in additional disclosures. 2009. The standard also specifies the accounting when control is lost. Any remaining interest in the entity is re-measured to fair value. the amendment requires disclosure of fair value measurements by level of a fair value measurement hierarchy. financial position or cash flows. in November 2009. “Consolidated and separate financial statements” (effective July 1. amendments and interpretations to existing standards that are not yet effective and have not been early adopted by the Company The following standards. It supersedes IAS 24. 2009. which enables users of the financial statements to analyze changes in a company’s equity resulting from transactions with owners separately from nonowner changes. and a gain or loss is recognized in profit or loss. the reported results in the period that a business acquisition occurs and future reported results. The amendment requires enhanced disclosures about fair value measurements and liquidity risk. 2011. IAS 24 (revised) is mandatory for periods beginning on or after January 1. financial position or cash flows. 2013 but is available for early adoption. amendments and interpretations to existing standards have been published and are not yet effective for the Company in the year ended June 30. The revised standard requires the effects of all transactions with non-controlling interests to be recorded in equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. The consolidated financial statements have been prepared under the revised disclosure requirements. The adoption of the standard did not have a material impact on the presentation of the Company’s results of operations. IFRS 3 (Revised) “Business Combinations” was issued in January 2008 and will apply to business combinations occurring on or after July 1. This standard addresses the classification and measurement of financial assets and is likely to affect the Company’s accounting for its financial assets. IAS 24 (Revised). The Company’s management has not yet assessed the potential impact that the application of IFRS 9 will have on the Company’s financial statements. is permitted. IFRS 7 (Amendment) “Financial instruments: Disclosures” was issued in March 2009 and is effective for annual periods beginning on or after January 1. IAS 27 (Revised). The revised standard clarifies and simplifies the definition of a related party and removes the requirement for government-related entities to disclose details of all transactions with the government and other government-related entities. “Related party disclosures” issued . Standards. ‘Related party disclosures’. 2010: IFRS 9 “Financial Instruments” issued in November . Earlier application. 2009. . 2009).

options or warrants) that are denominated in a currency other than the functional currency of the issuer. such rights issues were accounted for as derivative liabilities. The excess of the cost of acquisition over the fair value of TEI&C share of the identifiable net assets acquired is recorded as goodwill. the difference is recognized directly in the income statement. The amendment states that. equity instruments issued and liabilities incurred or assumed at the date of acquisition. liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. The purchase method of accounting is used to account for the acquisition of subsidiaries by TEI&C. though they are not relevant to the Company’s operations: • IFRS 1 (Amendments). if such rights are issued pro rata to an entity's existing shareholders for a fixed amount of any currency. they shall disclose this fact. Improvements to International Financial Reporting Standards In May 2010. the assets and liabilities of such companies (and their respective subsidiaries) are accounted for at the predecessor’s cost. IAS 32 (Amendment). “Prepayments of a minimum funding requirement” .46 | TEI&C S. If entities apply these amendments to an earlier period. The Company is assessing the impact in the results of operations.A. The cost of an acquisition is measured as the fair value of the assets given. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. they should be classified as equity. other standards and interpretations to existing standards not yet effective and not adopted by the Company before. • IFRIC 19 “Extinguishing financial liabilities with equity instruments” . The amendment is effective for annual periods beginning on or after February 1. Consolidation Subsidiary companies Subsidiaries are entities which are controlled by TEI&C as a result of its ability to govern an entity’s financial and operating policies generally accompanying a shareholding of more than 50% of the voting rights. financial position or cash flows. Prior to the amendment. Acquisition-related costs are expensed as incurred. “Financial instruments: Presentation on classification of rights issues” issued in October 2009. regardless of the currency in which the exercise price is denominated. • IFRIC 14 (Amendment). on 'Financial instrument disclosures” . The amendment addresses the accounting for rights issues (rights. 2010. Subsidiaries are consolidated from the date on which control is exercised by the Company and are no longer consolidated from the date control ceases. As follows. the IASB published the annual improvements with several international accounting and financial reporting standards amendments. reflecting the carrying amount of such assets and liabilities contributed . unless otherwise stated The application of this revised standard is not expected to have a significant impact on the presentation of the Company’s results of operations. This cost includes the fair value of any asset or liability resulting from a contingent consideration arrangement. The Company’s management estimates that the application of these amendments will not have a material effect on the Company’s financial condition or results of operations. Identifiable assets acquired. 2011. If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired. If the companies acquired were under common control. b. financial position or cash flows. “First time adoption. Entities shall apply these amendments for annual periods beginning on or after January 1.

See note 21 to the consolidated financial statements. When the Company’s share of losses in an associate equals or exceeds its interest in the associate. The Company’s share of its associates’ postacquisition profits or losses is recognized in the income statement. Gains or losses on disposals to non-controlling interests are also recorded in equity. balances and unrealized gains on transactions between TEI&C and its subsidiaries have been eliminated in consolidation. assets and liabilities on a line-by-line basis with similar items in TEI&C’s financial statements.V. unless it has incurred obligations or made payments on behalf of the associate. ) are jointly controlled entities. any retained interest in the entity is remeasured to its fair value. generally accompanying a shareholding of between 20% and 50% of the voting rights (see note 6). ” which involve the establishment of a corporation. unless otherwise stated to the Company. According to the laws of the countries of certain subsidiaries. the difference between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in equity. the consolidated financial statements include the financial position of the abovementioned companies at historical book values and no adjustment has been made to reflect fair values at the time of the contribution. When TEI&C ceases to have control or significant influence. Unrealized losses are also eliminated. Accordingly.Consolidated Financial Statements | 47 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. Material inter-company transactions. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment indicator of the asset transferred. These legal reserves are not available for dividend distribution and can only be released to absorb losses. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by TEI&C. TEI&C’s interest in jointly controlled entities is accounted for by the proportionate consolidation method. Unrealized gains on transactions between TEI&C and its associated companies are eliminated to the extent of TEI&C’s interest in the associated companies. For purchases from noncontrolling interests. including any other unsecured receivables. See note 26 to the consolidated financial statements for the list of consolidated subsidiaries. and its share of post-acquisition movements in reserves is recognized in reserves. The difference between the price paid and the historical book value was charged to equity. Financial statements of associated companies have been adjusted where necessary to ensure consistency with IFRS. a portion of the profit of the year is separated to constitute statutory reserves until they reach statutory capped amounts. The cumulative post-acquisition movements are adjusted against the carrying amount of the investment. Joint Ventures Joint Ventures (“J. Investments in associates are accounted for by the equity methods of accounting and are initially recognized at cost. with the change in carrying amount recognized in profit or loss. . net of any accumulated impairment loss. Transactions and non-controlling interests The Company treats transactions with noncontrolling interests as transactions with equity owners of TEI&C. partnership or other entity in which each venturer has an interest. TEI&C consolidates its share of the joint ventures’ individual income and expenses. Associated companies Associated companies are entities in which TEI&C has significant influence but not control. the group does not recognise further losses. The Company’s investment in associates includes goodwill identified on acquisition.

a loss on the transaction is recognized immediately if the loss provides evidence of a reduction in the net realizable value of current assets. c. or an impairment loss. Monetary assets and liabilities in currencies other than the functional currency are translated at the year-end exchange rate. in which case income and expenses are translated at the rate on the dates of the transactions). The financial statements of companies whose functional currency is the currency of a hyperinflationary economy are adjusted to reflect the changes in purchasing power of the local currency.S.S. The financial statements of subsidiaries companies whose functional currency is the currency of a hyperinflationary economy are adjusted for inflation in accordance with the procedure described in the following paragraph prior to their translation to USD. which is the functional currency of TEI&C. The consolidated companies’ first record transactions using their functional currency and their financial statements are then translated to U. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. iii Translation of balances and results of consolidated companies The results and financial position of all the consolidated companies that have a functional TEI&C assesses the qualitative characteristics of the economic environment of the country. and the corresponding exchange gains and losses are recognized in the income statement. ii Balances and transactions in currencies other than the functional currency Transactions in currencies other than the functional currency are accounted for at the exchange rates prevailing on the date of the transactions. such that all items in the statement of . dollars. all the items of the financial statements are converted to USD using the closing exchange rate. • all resulting exchange differences are recognized as a separate component of equity. The consolidated financial statements are presented in thousands of U. any accumulated translation adjustment would be recognized in the income statement as part of the gain or loss on sales. The Company does not recognise its share of profits or losses from the joint ventures that result from the Company’s purchase of assets from the joint ventures until it re-sells the assets to an independent party. dollars with the only purpose of being consolidated by TEI&C. Amounts shown for prior years for comparative purposes are not modified. • income and expenses for each income statement are translated at an average exchange rate. However. unless otherwise stated The Company recognises the portion of gains or losses on the sale of assets by the Company to the joint ventures that is attributable to the other ventures. Once restated. Foreign currency translation i Functional and presentation currency Items included in the financial statements of each entity in which TEI&C holds participating interests are measured using the currency that best reflects the economic substance of the underlying events and circumstances relevant to that entity (“the functional currency”).A. In the case of sale or other disposition of any such subsidiary. such as the trends in inflation rates over the previous three years. currency different from the Company’s presentation currency are translated into the presentation currency as follows: • assets and liabilities of each balance sheet are translated at the closing rate on the date of that balance sheet. To determine the existence of hyperinflation. (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates.48 | TEI&C S.

e. the depreciation and amortization and the provision for cost and contingencies. Where the final tax outcome of these matters is different from the amounts that were initially recorded. The future actual results may differ from estimates made as of the date of preparation of these consolidated financial statements. Income taxes The Company is subject to income taxes in numerous jurisdictions. d. in the case of machinery. client credit worthiness and changes in client payment terms. at certain moment the recoverable amounts of assets. Other estimations In addition. TEI&C considers the estimated outcome for each of the construction contracts which are in progress. Buildings are depreciated using the straight-line . equipment and vehicles used in the construction business. including expectations of future events that are believed to be reasonable under the circumstances. equipment. Significant judgment is required in determining the worldwide provision for income taxes. Property. There follows a description of the most relevant estimates used to prepare these consolidated financial statements: Percentage of completion method The Company uses the percentage-of-completion method in accounting for its contract revenues and expenses.Consolidated Financial Statements | 49 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. as well as income and expenses recorded during the reporting period. profit and loss are restated monthly by applying appropriate adjustment factors. Land and buildings Land and buildings are stated at historical cost. Furthermore. in determining the contract revenue. Allowances for doubtful accounts Management maintains an allowance for trade and other receivables to account for estimated losses resulting from the inability of clients to make required payments. There are transactions and calculations for which the ultimate tax determination is uncertain. TEI&C has adopted fair value as the measurement criterion (see note 4). Use of the percentage-of-completion method requires the Company to estimate the services performed to date as a proportion of the total services to be performed. and all income and expense. Estimates and judgments are continually evaluated and are based on historical experience and other factors. the Company’s Management makes estimations to calculate. TEI&C has adopted historical acquisition or construction cost less accumulated depreciation as the measurement criterion for PP&E. Use of estimates The preparation of consolidated financial statements requires Management to estimate and evaluate both recorded and contingent assets and liabilities as of a certain date. However. unless otherwise stated financial position not expressed in current terms (non-monetary items) are restated by applying a general price index at the financial statement closing date. plant and equipment Machinery. Management bases its estimates on the aging of accounts receivable balances and historical write-off experience. The difference between initial and adjusted amounts is taken to profit or loss. such differences will impact the current and deferred income tax assets and liabilities in the period in which such determination is made. vehicles and others As a general rule. TEI&C recognises liabilities for anticipated tax audit issues based on estimates of whether additional taxes will be due. When evaluating the adequacy of an allowance for trade receivables.

A. furniture and fixtures. Buildings and improvements Production equipment Vehicles. in the reserve for PP&E revaluation surplus are transferred to retained earnings. Goodwill on acquisitions of subsidiaries is included in intangible assets and it is tested for impairment annually as part of the overall balances (see note 5). Direct costs include the software development employee costs and an appropriate portion of relevant overhead. . and adjusted if appropriate. and other equipment Land 20-50 years 10-20 years 4-10 years Not depreciated Goodwill TENCO and subsidiaries Computer software development costs recognized as assets are amortized over their estimated useful lives (not exceeding five years). Such assets are valued at their acquisition or construction cost less accumulated depreciation. by applying annual ratios sufficient to terminate the value of each item as of the end of their estimated useful life or upon termination of concession. f.A. Costs that are directly associated with the production of identifiable and unique software products controlled by TEI&C and that will probably generate economic benefits exceeding costs beyond one year. whichever occurs first. are recognized as intangible assets. it is written down immediately to its recoverable amount. which will be transferred to the assignor upon termination of the concession. unless otherwise stated method.50 | TEI&C S. Impairment losses on goodwill are not reversed. Repairs and maintenance expenses are charged Fixed assets of Ferroexpreso Pampeano S. The residual values and useful lives of significant machinery. Useful lives used to calculate depreciation charges are as follows: to the consolidated income statement during the financial period in which they are incurred. by applying annual ratios sufficient to terminate the value of each item as of the end of their estimated useful life. (“FEPSA”) These assets represent improvements on the assets received under concession by FEPSA. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. construction equipment and vehicles are reviewed. When revalued assets are sold. Costs associated with developing or maintaining computer software programs are charged to expenses as incurred. the amounts included Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold. as well as those devoted to service rendering. Gains and losses on disposals are determined by comparing proceeds with carrying amounts. The straight-line method has been used to calculate depreciation. These costs are amortized over their estimated useful lives (three to five years). Where the carrying amount of an asset is higher than its estimated recoverable amount. Intangible assets Systems development Acquired computer software licenses are capitalized on the basis of the costs incurred to acquire and bring to use the specific software. at each yearend date.C. Goodwill represents the excess of the cost of an acquisition over the fair value of the Company’s share of the net identifiable assets of the acquired subsidiaries at the date of acquisition.

For the purposes of assessing impairment. An impairment loss is recognized for the amount by which the carrying amount of the asset exceeds its recoverable amount. Derivatives are also categorized as held for trading unless they are designated as hedges. i. Offsetting financial instruments Financial assets and liabilities are offset and the net amount reported in the statement of financial . which is the higher of an asset net selling price and its value in use. Goodwill is valued at original cost.I. Financial assets carried at fair value through profit or losses are initially recognized at fair value and transaction costs are expensed in the statement of income. g. (“COINFER”) Goodwill represents the greater cost derived from the investment in the subsidiary FEPSA as a result of the compulsory subscription and payment of the portion of capital corresponding to Ferrocarriles Argentinos (16%) and the portion corresponding to staff (4%) pursuant to the concession contract. it is calculated over the term of the concession of the service provided by FEPSA. Recognition and measurement Regular purchases and sales of financial assets are recognized on the trade . Financial assets are derecognized when the rights to receive cash flows from the investments have expired or have been transferred and the Company has transferred substantially all risks and rewards of ownership. They are included in current assets. • Available-for-sale financial asset Available-for-sale financial assets are non-derivatives that are either designated in this category or not classified in any of the other categories.date . Assets in this category are classified as current assets. including intangible assets. Financial assets at fair value through profit or loss are financial assets held for trading. Investments are initially recognized at fair value plus transaction costs for all financial assets not carried at fair value through profit or loss. loans and receivables. They are included in non-current assets unless management intends to dispose of the investment within 12 months of the end of the reporting period. are not subject to amortization and are tested annually for impairment. A financial asset is classified in this category if acquired principally for the purpose of selling in the short-term. less accumulated amortization.A. Financial assets The Company classifies its financial assets in the following categories: at fair value through profit or loss. Available-for-sale financial assets and financial assets at fair value through profit or loss are subsequently carried at fair value. Property and equipment and other non-current assets subject to depreciation. and available for sale. except for maturities greater than 12 months after the date of the statement of financial position. • Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. The classification depends on the purpose for which the financial assets were acquired. are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Loans and receivables are carried at amortized cost using the effective interest method.Consolidated Financial Statements | 51 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. These are classified as non-current assets. unless otherwise stated Compañía Inversora Ferroviaria S. Management determines the classification of its financial assets at initial recognition. for example Goodwill.the date on which the Company commits to purchase or sell the asset.F. Impairment of non-financial assets Assets that have an indefinite useful life. assets are grouped at the lowest levels for which there are separately identifiable cash flows. • Financial assets at fair value through profit or loss. h.

or realize the asset and settle the liability simultaneously. The allowance for obsolescence has been calculated based on Management’s analysis of aging. prepayments or other assets. contract revenue is recognized to the extent of contract costs incurred where it is probable those costs will be recoverable. The amounts accumulated in equity are disclosed in the consolidated income statement in the periods in which the hedged item affects gains and losses. j. The Company designates certain derivatives as hedges of a particular risk associated with a highly probable forecast transaction as cash flow hedge. They are presented as inventories. When the outcome of a construction contract can be reliably estimated. When the outcome of a construction contract cannot be reliably estimated. the expected loss is immediately recognized as an expense. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. The fair values of various derivative instruments are disclosed in note 12. depending on their nature. Derivative financial instruments Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. the nature of the item being hedged. l. The stage of completion is measured by reference to the relationship contract costs incurred for work performed to date bear to the estimated total costs for the contract.A. unless otherwise stated position when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis. . Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. TEI&C also documents its assessment. Cash flow hedge The effective portion of changes in the fair value of derivatives denominated and qualified as cash flow hedging is disclosed in other Comprehensive income. technology and functions or their ultimate purpose or use. Inventories Inventories are stated at the lower of cost or net realizable value less the corresponding allowance for obsolescence. Net realizable value is the estimated selling price in the ordinary course of business. Contract costs are recognized when incurred. The Company documents at the inception of the transaction the relationship between hedging instruments and hedged items. When it is probable that total contract costs will exceed total contract revenue. contract revenue and contract costs are acknowledged by the percentage of completion method. and if so. as well as its risk management objectives and strategy for undertaking various hedging transactions. less the costs of completion and direct selling expenses. both at hedge inception and on an ongoing basis. In general. of whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.52 | TEI&C S. cost is determined by using weighted average price. k. Construction contracts work in progress A construction contract is a contract specifically negotiated for the construction of an asset or a combination of assets that are closely interrelated or interdependent in terms of their design. The gain or loss related to the ineffective portion is immediately disclosed in the consolidated income statement. The method of recognizing the resulting gain or loss depends on whether the derivative is designated as a hedging instrument.

o. demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. p. Trade and other payables Trade and other payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. . other reserve. Equity Ordinary shares are classified as equity. subsequently measured at amortized cost less provision for impairment. Cash and cash equivalents Assets recorded in cash and cash equivalents are carried at fair market value or at historical cost which approximates fair market value. fair value and subsequently measured at amortized cost using the effective interest method. The balances of the consolidated statement of changes in equity at June 30. irrevocable contributions. unless otherwise stated When a construction contract includes reimbursable works and the Company is responsible for providing design. q. legal reserve. For the purposes of the consolidated statement of cash flows.Consolidated Financial Statements | 53 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2010 and 2009 include: • The value of share capital. Investments in companies in which TEI&C has less than 20% of the voting rights are valued at cost. Bank overdrafts are included within borrowings in current liabilities in the consolidated statement of financial position. An allowance for doubtful accounts is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of receivables. Other investment funds comprise mainly financial resources within offshore trusts. Trade and other receivables Trade and other receivables are initially measured at their fair value. Trade and other payables are recognized initially at TEI&C presents as a liability (within Construction contracts work in progress) the gross amount due to clients for construction contract for all contracts in progress for which progress billings exceed costs incurred plus recognized profits (less recognized losses). capital surplus. n. because its fair value cannot be measured reliably. unless the effect of discounting is material. construction equipment and supplies. m. which are classified as financial assets “at fair value through profit and loss” or “available for sale” . TEI&C shows as an asset (within Construction contracts work in progress) the gross amount due from clients for construction contracts for all contracts in progress for which costs incurred plus recognized profits (less recognized losses) exceed progress billings. reserve for PP&E revaluation surplus. Other investments Other investments include deposits in investments funds and equity instruments. cash and cash equivalents comprise cash on hand. If not. they are presented as non-current liabilities. engineering and construction services and labor and all equipment and materials. the amount of these works is recognized in revenues and costs. which is generally their nominal value. the purpose of which is exclusively to ensure that the financial needs for the normal development of their operations are met. Accounts payable are classified as current liabilities if payment is due within one year or less. and retained earnings in accordance with IFRS.

• Non-controlling interests in subsidiaries. Deferred income tax is recorded in full. any difference between proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the life of the borrowings.A. Dividends distributions are recorded in the Company’s financial statements when Company’s shareholders have the right to receive the payment. Such liabilities are calculated by independent actuaries.Programa de Seguro de Vida com Cobertura por Sobrevivência”These programs . Employee benefits Certain TEI&C’s subsidiaries have in force benefit plans under the modality of “non-funded defined benefits” and “other long-term benefits” which. The provisioned liabilities for such employee benefits are recorded at the current value of the future flows of funds. t. the amount being charged during the relevant employees’ remaining years of services up to the moment when the conditions necessary for the granting of each benefit are satisfied. Deferred income tax is provided on temporary differences arising on investments in subsidiaries.54 | TEI&C S. . Borrowings are subsequently stated at amortized cost using the effective yield method. on temporary differences arising between the tax basis of assets and liabilities and their carrying amounts in the financial statements. except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. unless otherwise stated • The currency translation differences of TEI&C’s subsidiaries. subject to certain conditions established by such companies. s. r. using the “Projected credit unit” method. at least once a year. Deferred tax assets are recognized to the extent that it is probable that future taxable profit will be available to offset temporary differences.Plano Gerador de Benefício Livre” and “ VGBL . Currently enacted tax rates are used in the determination of deferred income tax. Other subsidiaries have implemented a supplementary pension benefit plan with two programs: “PGBL . Pension plans and other post-retirement benefits Certain TEI&C’s subsidiaries officers are covered by a specific employee retirement plan designed to provide retirement. Borrowings Borrowings are initially recorded based on the fair value of the net proceeds. or when interim dividends are approved by the Board of Directors in accordance with the by-laws of the Company. associates and joint ventures. are granted during the term of employment and after retirement. termination and other benefits to those officers. Both programs are defined contribution plans. which plans are recorded following the guidelines of accounting rules and regulations in force and effect. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. using the liability method. are generally funded through payments by the subsidiaries to independent insurance companies. Borrowings are classified as current liabilities unless TEI&C has an unconditional right and firm intention to defer settlement of the liability for at least twelve months after the balance sheet date. Current and deferred income tax The current income tax charge is calculated on the basis of the tax laws in force in the countries in which TEI&C and each one of its subsidiaries operate.

unless otherwise stated TEI&C’s subsidiaries are accumulating assets for the ultimate payment of those benefits in the form of investments. (b) Extraordinary contributions. or • past practice has created a valid expectation in employees that they will receive a bonus/profitsharing and the amount can be determined before the financial statements are issued. Benefits falling due more than twelve months after balance sheet date are discounted to present value. or providing termination benefits as a result of an offer made to encourage Basic contribution – Companies are committed to contribute amounts equal to the amounts contributed by the employees up to certain limits. Contribution plans A defined contribution plan is a pension plan under which the companies pay fixed contributions to a separate entity. Liabilities for profit-sharing and bonus plans are expected to be settled within twelve months and are measured at the amounts expected to be paid when they are settled. Profit-sharing and bonus plans A liability for employee benefits in the form of profit-sharing and bonus plans is recognized in other provisions when there is no realistic alternative but to settle the liability and provided at least one of the following conditions is met: • there is a formal plan and the amounts to be paid are determined before the time of issuing the financial statements. The laws in the different countries in which TEI&C’s subsidiaries carry out their operations provide for pension benefits to be paid to retired employees from government pension plans and/ or private funds managed plans. Termination benefits Termination benefits are payable whenever an employee’s employment is terminated before the normal retirement date or whenever an employee accepts voluntary redundancy in exchange for these benefits. Contributions by the companies include: (a) TEI&C’s subsidiaries recognize termination benefits when it is demonstrably committed to either terminatimg the employment of current employees according to a detailed formal plan without possibility of withdrawal. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available. nor are they segregated from TEI&C’s other assets.Are non-mandatory contributions that can be made on a voluntary basis either by the companies or the employees. Retirement costs are assessed using the projected unit credit method: the cost of providing retirement benefits is charged to the statement of income over the service lives of employees based on actuarial calculations. Actuarial gains and losses are recognized over the average remaining service lives of employees. Amounts payable to such plans are generally calculated based on a percentage of employee salaries and are accounted for on an accrual basis. Due to these conditions. The investments are not part of a particular plan. the plan is classified as “unfunded” under IFRS. voluntary redundancy. The contributions are recognized as employee benefit expense when they are due. . using applicable interest rates.Consolidated Financial Statements | 55 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. This provision is measured at the present value of the estimated future cash outflows. Benefits provided by the plan are calculated on a seven-year salary average. Companies have no further payment obligations once the contributions have been paid.

the lessee’s incremental borrowing cost is used.l. for example under an insurance contract. Thus. Other revenues Other revenues earned by TEI&C are recognized on the following bases: • Interest income: on the effective yield basis. v. the present value of the minimum lease payments. The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit liabilities is the book value of the group of assets and liabilities. The nature of its contracts implies that TEI&C has to manage risks regarding uncertain conditions in the hiring of procurement. if lower. The post tax profit or loss of the discontinued operations is shown as a single amount on the face of the consolidated income statement. using a straight-line basis over the term of the contract. a business component that represents a separate major line of business or geographical area of operations it classifies such operations as discontinued. When TEI&C expects a provision to be reimbursed. . it is probable that an outflow of resources will be required to settle the obligation. exchange rates. Financial risk management The nature of TEI&C’s operations as well as its multinational character expose the Company to a variety of risks. Leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Provisions Provisions are recognized when TEI&C has a present legal or constructive obligation as a result of past events. unless otherwise stated u. Payments made under operating leases (net of any incentives received from the lessor) are charged to the income statement on a straight-line basis over the period of the lease. and a reliable estimate of the amount can be made. discontinued operations When the Company intends to dispose of. The measurement of the held-for-sale assets and • Dividend income from investments in other companies: when TEI&C’s right to collect is established w. including the effects of changes in foreign currency.56 | TEI&C S. 3. or classify as held for sale. each determined at the inception of the lease. Held for sale assets and liabilities and Sales of services The Company sells maintenance services. Revenue recognition Revenues and cost recognition for long-term construction contracts See note 2. Leases Leases in which a significant portion of the risks and rewards of ownership are transferred from the lessor to TEI&C are classified as finance leases. liquidity risk and interest rates risk. the carrying amount of this held-for-sale assets and liabilities does not represent their fair value at the moment of the measurement. otherwise. See amounts of assets and liabilities held under finance leases in note 23. separate from the other results of the Company. TEI&C recognizes finance leases as assets and liabilities in the statement financial position at amounts equal to the value of the leased property or. At the commencement of the lease term. which is usually a large part of the scope of work. capital risk.A. the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. The revenue is generally recognized in the period the services are provided. Any initial direct costs of the lessee are added to the amount recognized as an asset. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. concentration of credit risk. in the lease should this be practicable to determine. x.

102) (2. SVC= El Salvador Colon.689) 43. NIO= Nicaraguan Cordoba Oro. UYU= Uruguayan Peso. For some of these exposures.587 24. However.190 - PEN 29. the Company or its subsidiaries enter into derivative transactions in order to manage potential adverse impacts on the Company’s financial performance.322 12.701 (1.689) 42. Management evaluates exposures on a consolidated basis to take advantage of its global and multinational activity.012 BRL 24.221 149.459 UYU (183) 2. CAD= Canadian Dollar. The year end ratio of debt to total equity (where “debt” comprises all financial borrowings and “equity” is the sum of financial borrowings and shareholders’ equity) is 0. CHL= Chilean Peso.545 CHL 12. HNL= Honduran Lempira.282 2.713 2.06 as of June 30.545 13. BOB= Bolivian Peso. 2009. VEF= Venezuelan Bolivar Fuerte .021 1.713 2. GTQ= Guatemalan Quetzal.035 VEF (371) - Total (183) 282 (10) 508 208 (41) 18. EUR= Euro.087 SAR (978) (1.322 EUR - MXN 1.390 ARS= Argentine Peso. There are significant monetary balances held by the Company at each year-end that are denominated in US dollars (non-functional currency).18 as of June 30.087 29.961 12 1.218 2. 2010 Functional Currency (in thousand USD) Net monetary position Asset / (Liability) ARS BOB CAD EUR GTQ HNL MXN NIO SVC USD VEF ARS (10) 1 1. The Company does not have to comply with regulatory capital adequacy requirements.961 12 1.Consolidated Financial Statements | 57 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.658 (1. SAR= Saudi Riyal. PEN= Peruvian Nuevo Sol.592 125. unless otherwise stated To manage the high volatility related to these financial matters.658 24.891 2. BRL= Brazilian Real. the Company transacts in currencies other than the respective functional currencies of the subsidiaries. MXN= Mexican Peso. in comparison with 0. a) Capital Risk The Company seeks to maintain an adequate debt to total equity ratio considering the risks involved in the industry and the markets where it operates. The following tables show a breakdown of the TEI&C’s net monetary position in various currencies for the main functional currency in which the Company operates: June 30. 2010.080) USD 282 666 208 (41) 18.587 CAD 13. b) Foreign exchange risk TEI&C’s business activities are conducted in the respective functional currencies of the subsidiaries.

It is normal practice that the Company reserves the right to suspend the project if there is a remarkable breach of the contract term. and typically relate to problems characterized as technical matters.901 19. The following table sets forth details of the age of trade receivables: .514 65. c) Credit risk Most accounts receivable relate to clients operating in a range of industries and countries with contract which require ongoing payments as the development project progresses. under the Company’s control.079 1.352 MXN 2.294) USD (70) 1. CAD= Canadian Dollar.078 36. 2010 of a simultaneous 1% favorable or unfavorable movement in the main exchange rates would result in a maximum pre-tax gain or loss of approximately USD 1.362 34. a) it may be a significant value in the development of works or in the provision of services. 2009 Functional Currency (in thousand USD) Net monetary position Asset / (Liability) CAD EUR GTQ HNL MXN NIO SVC USD VEF ARS (9) (261) 989 719 BRL 1. b) it is beyond the Company’s control.308) (1.e relating to the risk inherent in the service rendered. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. i.079 CAD (43) 3.901 SAR 14 (1. BOB= Bolivian Peso. However. The Company’s net exposure to the currency other than the functional currency is managed on a case-bycase basis. EUR= Euro. partly by hedging certain expected cash flows with foreign exchange derivative contracts. GTQ= Guatemalan Quetzal. 2009.328 CHL 2.821 5.494 thousands as compared with a maximum pre-tax gain or loss of approximately USD 659 thousands at June 30. unless otherwise stated June 30.369 64 230 (14) 473 56. In general the greatest risk for such assets is the risk of not collecting a trade account receivable. SAR= Saudi Riyal. PEN= Peruvian Nuevo Sol.566 UYU (904) (904) VEF (592) (2.352 2. UYU= Uruguayan Peso. VEF= Venezuelan Bolivar Fuerte The Company estimates that the impact under IFRS on the net exposure at June 30.858 ARS= Argentine Peso.514 7. This is because. MXN= Mexican Peso. SVC= El Salvador Colon.58 | TEI&C S.410 1. CHL= Chilean Peso. upon the rendering of services or upon completion and delivering of the project.A. NIO= Nicaraguan Cordoba Oro.329) Total (9) 1. HNL= Honduran Lempira. the risk of customers being unable to make a payment in such contracts is considered to be low.369 64 230 (14) 473 5. BRL= Brazilian Real.737) (3. in particular the non-payment of amounts owed.440 PEN 19.371 3.

June 30. The following table summarizes the proportions of variable-rate and fixed-rate debt as of each year end.886) 10.989 At the date of these consolidated financial statements most credits past due 1-180 days have been collected. and cash equivalents. 2009).Consolidated Financial Statements | 59 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. e) Interest rate risk management TEI&C financing strategy is to maintain adequate financial resources and access to additional liquidity. Receivables overdue for more than 180 days are in the process of approval for payment by the ENARGAS (Argentine Gas Regulatory Board).104 Past due 1 .923) 213. TEI&C has a conservative approach to the management of its liquidity.816 Not Due 167. 2010 TEI&C has counted on cash flows from operations as well as additional bank financing to fund its transactions. d) Liquidity risk Management maintains sufficient cash and cash equivalents to finance normal operations and believes that TEI&C also has access to market for short-term working capital requirements.723 Past due > 180 days 21. During the year ended June 30.875 (10. unless otherwise stated June 30. 2010 Trade Receivables Allowance for doubtful accounts Net Value Trade Receivables 224. which consists of cash The Company’s financing strategy is to manage interest expense using a mixture of fixed-rate and variable-rate debt.904 Percentage 65% 35% Percentage 66% 34% .739 (10.690 13.217 35. short-term money market funds and highly liquid short-term securities. Liquid financial assets as a whole are 24% of total assets at June 30.180 days 35. 2010 Borrowings Fixed rate Variable rate 24.104 167. comprising cash in banks. 2009 Borrowings 69. TEI&C holds its cash and cash equivalents primarily in USD.760 (37) 35.266 June 30. See note 15 for the maturity of borrowings and note 17 for the maturity of trade and other payables. 2010 (19% at June 30.

196 309.275 25.521) (74) (8. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. See note 10 – “Determining fair values” .868) (151.033) (1.470) 71. 2010 (2) Equipment and machinery 115. the Company’s income and operating cash flows are substantially independent from changes in market interest rates.558) (48.976 and decrease of revaluation of PP&E USD 5.092 150.264) (10.569 (6.138 56.028 41.494 2.356 109.687) (305. 4.212 55. Property. 2010 55. plant and equipment The item evolution is as follows: Non-current Lands and buildings Beginning of the year Additions Disposals Annual depreciation Translation differences Other movements Revaluation Surplus Impairment loss June 30. 2009).005) (72.941 (11.196 Total June 30.092 (1) It includes deferred costs of our subsidiary FEPSA and miscellaneous assets.808.A. (2) It includes gain on revaluation of PP&E USD 76.138 Other assets (1) 53.297 48.701) 309. The Company estimated that.446 (568) 56.883 615.616) 150.734) 27.593 (2.723 49. total profit for the year ended June 30.60 | TEI&C S.186 8.143 128.619) Net Value June 30. if interest rates would have been 100 basic points higher. unless otherwise stated As the Company has no significant interest-bearing assets.794 (3.000) (12. 2010 254.985 (2.244) (122) 5.960 301.517 (4.654 13. 2010 would have been USD 132 thousands lower (USD 359 thousands lower at June 20.202) 1.294) (23.110) (72) 2.342 Accumulated Depreciation (20.059) (61.168 (5. The item consists in the following: Original Value Land and buildings Equipment and machinery Vehicles Other assets Total June 30. f) Fair value estimation The carrying amount of financial assets and liabilities with maturities of less than one year approximates to their fair value.261 2.376 50. with all other variables held constant.297 Vehicles 36.158) (1.205 (517) 48.723 . 2010 75.

215) (37.866) (53.944 (1.856 79 14.376 Lease rentals amounting to USD 44.229) 2. 2009 49. 2009 49.885) (20.696 (789) Total June 30. As per International Accounting Standard No.333) (62.219 (5.275 36.271 (2.859) (291. construction equipment and vehicles.866 5.459 Accumulated Depreciation (18.031 49.513 545.654 254.440) (133) 9.534 6. 2010.590) 49.376 (1) It includes deferred costs of our subsidiary FEPSA and miscellaneous assets. Technical appraisal of PP&E On June 30.003) (9.132 102.413 9. 16 “Property.261 115.857) (66.989 13. a technical appraisal was performed by external professionally qualified valuation specialists in relation to machinery.252) (8.896) 944 - Equipment and machinery 106.963) 5.946 thousand relating to the lease of machinery. 2009 268.014 1.083) Net Value June 30.356) Other assets (1) 66. unless otherwise stated The item evolution is as follows: Non-current Lands and buildings Beginning of the year Additions Disposals Annual depreciation Translation differences Other movements Revaluation Surplus Increase due to business combinations (see note 1) Decrease due to sale / deconsolidation of subsidiaries (see note 1) June 30. Management believes that the resulting value approximates fair value.634) (23.202 (1.846) 1.642 23.750) (10.186 53. 2009 67.186 53.Consolidated Financial Statements | 61 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. The item consists in the following: Original Value Land and buildings Equipment and machinery Vehicles Other assets Total June 30.352) (8.802 (95) (1.988 (1.654 254.864 (2.236 (445) Vehicles 44.360) (5. plant and equipment” (“IAS 16”).275 36.261 115.519 116.506 26. when an item of property .857 8. construction equipment and vehicles.102) (11.034) (143.295 259. are included in the income statement. based on periodic valuations of the assets in order not to differ materially from their fair value at the financial statements date.

328 thousand) in other comprehensive income and accumulated in equity under the heading of “Reserve for PP&E revaluation surplus”The decrease in the carrying amount of . age and condition. The difference between depreciation of appraised assets and depreciation of the historical values of such assets is charged against accumulated results.701 thousand) has been recorded in the Consolidated Income Statement in “Other income and expenses. June 30. This approach consists in obtaining information from recent sales or offers of assets bearing similar characteristics. state of conservation and degree of obsolescence.218 (132.628) 84. asset as a result of revaluation (amounting to USD 5.981 The straight-line method has been used to calculate depreciation. The increase in value of machinery. equipment and vehicles had been valued at historical cost. Such criteria take into account factors such as the age of each asset. Machinery.62 | TEI&C S. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. probable residual or expected life.976 thousand (2009: USD 9. net of tax effects. The decrease of prior revaluation increases of the same asset were charged to other comprehensive income and accumulated in equity under “Reserve for PP&E revaluation surplus” amounted to USD 5. 2009 168. through (i) the retirement of the equipment appraised or (ii) depreciation charges. unless otherwise stated and equipment is revalued. thousand (2009: USD 3. Correction factors that take into account the status of the market offer and demand prevailing as of the date of the appraisal. construction equipment and vehicles resulting from the technical appraisal performed on June 30.A.230 . 2010 June 30. probable residual useful life. If machinery.858 (156. The “cost less depreciation” method was used to obtain the fair value of assets with a restricted sales market. net” during the fiscal year ended . These subsidiaries intend to perform this appraisal with the frequency required by IAS 16 in order to keep fair values of appraised assets updated.522 Depreciation was computed based on generally used and accepted engineering criteria which led to establishing the reasonable value of PP&E.808 thousand and has been recorded net of tax effects USD 841 thousand.696) 35. construction equipment and vehicles corresponding to the subsidiaries that did not make the abovementioned revaluation are not significant. The “sales comparison” method was used to obtain the fair value of these assets for which there is a wide and transparent secondary market. The “Reserve for PP&E revaluation surplus” is reversed. 2010. by applying annual ratios sufficient to terminate the value of each item as to the end of their estimated useful life. the entire class of property and equipment to which that asset belongs should be revalued. Historical cost Accumulated depreciation Residual value 240. 2010 amounted to USD 76. state of conservation and asset obsolescence are applied to the sales price. The market value was obtained by applying the depreciation ratio to the value of a new asset. the relative age. the values would have been the following: June 30.506 thousand) and has been recorded net of tax effects USD 20.

479 .478) Net Value at June 30.447 (2.839 2. 2010 2.839 915 (760) 102 2.304) (12.174) (1.447) - Goodwill COINFER 870 (87) (143) 640 June 30. Intangible assets The item evolution is as follows: Systems development Beginning of the year Additions Amortization Translation differences June 30. 2010 2.870 15.096 Goodwill COINFER 640 (52) (22) 566 June 30.662 The item consists in the following: Original Value Systems development Goodwill – COINFER Total June 30.463) (380) 2.662 The item evolution is as follows: Systems Goodwill TENCO development and subsidiaries Beginning of the year Additions Amortization Increase due to business combination (see note 1) Decrease due to business combination (see note 1) Translation differences June 30.096 566 2. 2009 4. unless otherwise stated 5.532 976 (671) 485 (2.140 Accumulated Amortization (11.270 1.215 976 (584) 485 (16) (237) 1. 2010 13.Consolidated Financial Statements | 63 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2009 1.479 915 (812) 80 2. 2010 1.

A. 2009 1.402) 2.296) (11. 2009 12. unless otherwise stated The item consists in the following: Original Value Systems development Goodwill – COINFER Total June 30.A.L. 2009 the investment is recorded in liabilities (1) June 30.926) Net Value at June 30. Consorcio Stabile Infrastrutture Other Total Investment in associated companies (1) At June 30. Construcción y Servicios Ltda. 2010 Beginning of the year Translation differences Dividends received Result from investments Sale and disposal of investments Investment adquisition and contributions Increase due to business combination (see note 1) Amount recorded in liabilities at the beginning of the year Amount recorded in liabilities at the end of the year End of the year 355 208 2.389 40% 50% 0.64 | TEI&C S.479 6.01% - June 30.R.671 355 .389 June 30.724 (254) 1. de C.630) (1. Fluor Techint S.405 Accumulated Amortization (10.671) 1.469 1.027 (2. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2009 Book value % of ownership 170 185 355 100% 50% 30% - 886 297 206 1. 2010 Book value % of ownership Non-Current Norpower S.839 640 2. Investments in associated companies June 30.936 14. 2009 120 84 (972) (384) 238 (1.V.

2010 Non-Current Government Bonds Other investment fund La Nacion’s Trust fund Other Total other investments Current Low liquidity funds in correspondent accounts Government Bonds Temporary placements Total other investments 6.763 4.L.184 9. Others 2.V. revenues and results of the most important associated companies as of June 30.821 162 59 6. Fluor Techint S. 2009 34 5.597 140 37 6.010 June 30. de C. 2009 408 (792) (384) The following amounts represent the assets.886 Liabilities 7.291 Revenues 5.774 990 20 1. 2010: Assets Norpower S.400 9. liabilities. 2010 Fluor Techint S. Norpower S.329 705 (310) 2.A.A.R.584 36.L.Construcción y Servicios Ltda. Construcción y Servicios Ltda. unless otherwise stated The result from investments has arisen from the Company’s participation in the results of the following companies: June 30.V. 9.659 7.R.241 Results 1.Consolidated Financial Statements | 65 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. de C.076 137 21 158 . Other investments June 30.724 June 30.

076 (205) 205 1.73%) .251 (138) (20) 6. 2009 Servicios y Prestaciones Techint Funchal .076 281 (57) 138 (204) 158 6.A. acquired 80. 2009 6.774 158 (5) 33 990 (166) 1.33% (a) June 30.66 | TEI&C S.091 (33) (360) 6.Serviços.78% equity interest of Techint Compañía Técnica Internacional S.197) 159 (448) 21 1.A. Comércio e Gestão de Projetos Lda.448 (1. unless otherwise stated June 30. (97. 2010 Non-Current At the beginning of the year Translation differences Result from other investment Investments currently consolidated Increase of other investments Reclassification Decrease of other investments At the end of the year Current At the beginning of the year Translation differences Reclassification Increase of other investments Decrease of other investments At the end of the year (a) During the year ended June 30.84%) and Cotecol Compañía Técnica de Construcciones S. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.010 Increase due to business combination (see note 1) of this company and increased its indirect participation in Compañía Interamericana de Trabajos Civiles Comintrac S. therefore the Company controls 97.A.A (97.

090 26.639 2.940 40.340 301.953 June 30. unless otherwise stated 8.862 565 2.393 3.239 3.173 13.874 1. 2010 Non-Current Other trade receivables .985 9.841 32.855 42.491 5.569 47.250 727 6.240 968 41. 2009 15.494 366.net Trade receivables from related parties (see note 25) Invoice holdback Other trade receivables – net Other receivables from related parties (see note 25) Other receivables Advanced to suppliers and subcontractors Prepayments Tax credit Total trade and other receivables 12.212 613 3.477 11.net Guarantee deposit for investment acquisition Receivables for sales of investments Invoice holdback Tax credit Trade receivables from related parties (see note 25) Other receivables from related parties (see note 25) Other Total trade and other receivables Current Trade receivables .Consolidated Financial Statements | 67 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.256 38. Trade and other receivables June 30.032 914 8.283 25.816 28.170 8.480 213.091 .265 458.876 28.755 5.

2010 Non-Current Values at the beginning of the year Translation Additions Values at the end of the year Current Values at the beginning of the year Translation Increase due to business combination (see note 1) Reversal Additions Used Values at the end of the year (15) 870 855 10.A.976 (2. 2009 30. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.424 324 (2.808) 140 (272) 28 (1.109) 10. 2009 14.996) 27.955 425 (529) 73 (1) 10.68 | TEI&C S.955 9. unless otherwise stated At June 30. 2010 Materials and spare parts Others Valuation allowance Total Inventories 41. Inventories The item consists in the following: June 30.752 .923 June 30.786 160 (6.098) 35.848 June 30. 2010 and 2009 the evolution of the allowance for doubtful accounts that was deducted from Trade receivables is: June 30.

unless otherwise stated At June 30.324 349.567 290.340 2. 2010 and 2009 the evolution of the valuation allowance that was deducted from inventories is: June 30.705 139.470) 6.504 (111) 2.567 640. Financial instruments by category At June 30.261 350.261 350.616 173.996 118 (24) 4.328 37 37 349.922 35. 2010 Assets as per balance sheet Assets at fair value through the profit and loss Loans and receivables Available for sale Total Trade and other receivables Other investments Cash and cash equivalents Total 6.340 2.784 283.705 139.757 283.338 7.Consolidated Financial Statements | 69 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.478 (1.098 June 30.996 10.338 990 350. 2010 Values at the beginning of the year Translation Reversal Additions Used Values at the end of the year 2.616 173.689 Liabilities as per balance sheet Other financial liabilities at amortized cost Total Borrowings Financial lease liabilities Trade and other payables Other liabilities Total 35.922 . 2009 742 (139) 2.

Inputs other than quoted prices included within level 1 that are observable for the asset or liability.104 450. derived from prices). Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. Assets Cash and cash equivalents Other investments Total Level 1 283.140 684.567 6. as prices) or indirectly (that is.A. • Level 2.010 445. as permitted by the transitional provisions of the standard. The following table presents the assets that are measured at fair value at June 30.241 6.789 6.617 290. 2010. unobservable inputs).324 . Comparative information is not presented for • Level 1.501 209.620 15.140 234.241 450.757 290.431 131.234 223.184 Level 2 - Level 3 140 140 Total 283.620 15.562 89.Quoted prices (unadjusted) in active markets for identical assets or liabilities. 2009 Assets as per balance sheet Derivatives used for hedging Assets at fair value through the profit and loss Loans and receivables Available for sale Total Derivative financial instruments Trade and other receivables Other investments Cash and cash equivalents Total 476 476 4.Inputs for the asset or liability that are not based on observable market data (that is.241 59 59 5. The different methods have been defined as follows: • Level 3. the first year of application.567 6.562 Determining fair values The table below analyzes financial instruments carried at fair value. either directly (that is. by valuation method.880 Liabilities as per balance sheet Other financial liabilities at amortized cost Total Borrowings Financial lease liabilities Trade and other payables Other liabilities Total 89. unless otherwise stated At June 30.431 131.010 445.70 | TEI&C S.175 223.265 450.501 209.

Derivative financial instruments As of June 30. Held-for-sale assets The item consists in the following: June 30. 2010 Discontinued operations (see note 24) Advances to suppliers for equipment to be sold Other investment Total held – for – sale assets 45 22 67 June 30. has generated a net income of USD 476 thousand.451 thousand. In addition. 2009 Assets 476 4. 2008 the Company entered into a foreign-currency swap with an initial amount of BRL 10. 2009. all the Company’s outstanding derivative financial instruments were realized. the Company has no foreign currency forward contracts as of such date. The swap had a 361 days maturity and matured on October 27. the settlement of 8 contracts was recorded in results. 2010.500. and (ii) charge to results for USD 169 thousand for those hedged contracts that turned out to be ineffective. On October 31. 2009 4. There are no derivatives outstanding as of June 30.048 239 4. Under the swap the Company receives a fixed amount of USD plus interest of 5. net of the tax effect.265 Liabilities - . 2009. 2010 Liabilities - At June 30. unless otherwise stated 11. 2008 for USD 1. 2009 is USD 4. The net fair values of derivative financial instruments at the balance sheet date were: Net fair value of derivative financial instruments Assets Forward foreign exchange contracts Swap foreign currency Total - At June 30.Consolidated Financial Statements | 71 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. and has been stated in accounting records as follows: (i) charge to other reserves of the equity for USD 215 thousand.469 thousand was reversed.789 5. As of June 30. the Company has denominated as accounting hedging some future contracts for the sale of USD the reasonable value of which contracts as of June 30.95% and pays interest at 100% of the Interbank Deposit Certificate. during the year ended on June 30. equivalent to USD 5.789. 2009. In addition.287 12. The fair value as of June 30. the reasonable value of such contracts in force as of June 30.000. 2010. 2009. which amounts to USD 92 thousand. the settled expense of which contracts was USD 3.

2010 Cash and cash equivalents Bank overdrafts Total cash and cash equivalents 283.A. 2008 the authorized capital stock amounts to UYU 4. 2010 (1) Ordinary shares 5.000 thousand. 2010 Cash at bank and on hand Short-term bank deposits Total cash and cash equivalents 56. 2008. . 2009 At June 30. Cash and cash equivalents June 30.537 UYU 586.537 thousands.534 283. At June 30.426 June 30.181.830 thousand) from Techint Investments NV. Share capital The composition of the Company’s capital is as follows: In thousands of shares On June 26.537 30. unless otherwise stated 13.317 thousand). the parent company of Techint Limited.600.464 223. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.842 14. the capitalization and the change in the type of shares are under process of authorization in the AIN.033 227. 2009 69. 2009 223.140 Cash.140 (298) 222.567 June 30. The Special Shareholders' Meeting of September 5.181.181.000 thousand (equivalent to Number of shares At June 30.537 (1) 5.72 | TEI&C S.181.537 5. the Special Shareholders’ Meeting decided to increase the authorized capital to UYU 5. to be replace by bearer shares after the Auditoría Interna de la Nación (AIN) authorization The ordinary shares have a value of UYU 1 per share and one vote per five shares. The new authorized capital.567 (1. (1) Including a provisional certificate by UYU 581.500.676 153. All issued shares are fully paid. cash equivalents and bank overdrafts include the following for the purposes of the consolidated statement of cash flows: June 30.141) 282. 2008 ratified the decisions taken at the previous Special Shareholders' Meetings and decided to change from nominative shares to bearer shares and capitalize all the pending irrevocable contributions (USD 72.000 thousand and accepted an Irrevocable Contribution of USD 30.

Banco Itaú S.A. Banco Itaú BBA S.80% 16.003 TEARG Standard Bank Argentina S.A (New York) Banco Itaú S.A. unless otherwise stated 15. 848 10 18. Standard Bank Argentina S.A.A. Borrowings Company Lender Amount June 30.A.C.A – Interbank Techint Cía.I.658 Sidernet Mexicana S. 2010 Currency Interest Rate June 30.A (New York) HSBC Bank Argentina S.80% 14. .V. Banco Internacional del Perú S.051 262 693 2. Techint S.A.A.C. Caterpillar Leasing Chile S. 39 (*) 365 (*) 13 10.Consolidated Financial Statements | 73 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.70% 12.648 CLP USD - 4. de C. Other Banco Nacional de México S.A.A.A.Uruguay TECHI Sidernet S. TENCO Banco Itaú BBA S.85% - 45 41 34 435 (*) 248 2.A.928 (*) 6.00% LIBOR 6M + 2% 5.A. Santa María Financial S. HSBC Bank (Uruguay) S.A.80% - 408 220 40 (*) 42 6.A. 2009 Amount Non-Current COINFER Banco Supervielle S.445 - ARS ARS ARS USD USD - 16.A. CGM Leasing Argentina S. BBVA Banco Frances S.A. Técnica Internacional S. - - - 136 (*) Banco Itaú Chile S.A.A. HSBC Bank Perú S. (*) Variable Rate .

50% 14. Banco Itaú Argentina S.176 251 411 211 39 29 ARS ARS - 16.A CGM Leasing Argentina S. Standard Bank Argentina S.407 1.242 (*) 870 (*) 210 597 2.80% 2.A. 13 (*) 32 1.00% 9. Santa María Financial S. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.00% TMR BBVA Banco Frances S.A.A.y F. Sociedad Comercial del Plata S. USD LIBOR 6M + 2% USD ARS USD USD ARS ARS USD USD USD LIBOR + 2.5% 14.021 6. Agrupación Fdo.75% 6. (New York) Banco Itaú S. BBVA Italia Banco Itaú BBA S.A. 2010 Currency Interest Rate June 30.110 337 1.A.A.000 1.74 | TEI&C S. Santa María Financial S. HSBC Bank Argentina S.80% - 62 317 (*) 228 475 132 12. Prestaciones Globales Siderúrgicas S.A. Banco Itaú S.A.A.00% 8. Banco Hipotecario S. Financ.A. Prestaciones Globales Siderúrgicas S.A.A. Copartic.A.A.A.A. Sidernet S.A. (New York) Banco Itaú BBA S.00% 2.y F.166 (*) 440 (*) 27 220 2.338 (*) 47 (*) 180 (*) 210 682 273 50 TEARG BBVA Banco Frances S.A Banco de San Juan S.I. 2009 Amount Current COINFER Banco Supervielle S.A.A. Santa María S. unless otherwise stated Company Lender Amount June 30. (Brazil) Standard Bank Argentina S.80% 11. ACE . HSBC Bank Argentina S.A.A.A. Banco Hipotecario S.A.I.A.00% 12. Santa María S. Banco Itaú BBA S.

HSBC Bank (Uruguay) S.A. Banco Itaú Chile S.A.203 (*) 10. 273 1.103 19.531 136 220 71 (*) USD USD CLP USD USD - LIBOR 6M + 2.463 Techint Inversiones S. Sidernet Mexicana S.A .50% 7. Santander S.85% 4. (Canada) Other (*) Variable Rate .00% - 18.A.A. de C.00% 7.344 TECHI Techint S.F.A.94% 3.56% - 150 171 260 96 (*) 20. Técnica Internacional S. HSBC Bank (Uruguay) S. (Canada) BNP Paribas S.I.A. Caterpillar Leasing Chile S.018 5. Banco Nacional de México S.A.5% 5.A.65% 3.70% 7.A. BNP Paribas S. 2010 Currency Interest Rate June 30. TECAN BNP Paribas S.A.015 1. Banco Itaú BBA S.00% LIBOR + 2.V. Crédit Uruguay Banco S.240 98. HSBC Bank Perú S.C.167 1. Banco Nacional de Mexico S. 600 284 42 (*) 5.I.Consolidated Financial Statements | 75 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.A.y F.Interbank Techint Cía. TEMEX Santa María S.I. 2009 Amount Current TENCO Banco Itaú BBA S.A.A.A.A.412 1. .A.Uruguay HSBC Bank (Uruguay) S. (Spain) Banco Nacional de México S. Banco Internacional del Perú S.876 2.000 5.A. unless otherwise stated Company Lender Amount June 30.A.A.325 3.308 USD UYU MXN USD USD - 4.C.A.A.Interbank Banco Internacional del Perú S.A .160 271 6.

2 years 414 2.565 2.735 Deferred Income Tax Liabilities TEARG TENCO’s Subsidiaries FEPSA Other (14. 2010 Financial leases Other borrowings Total borrowings Interest to be accrued June 30.308 713 11.4 years 207 2.341 17.635 429 2 .s.868 16.073 165 - 4 . Deferred income taxes As further explained in note 2.504) (35. At June 30. as the impact of discounting is not significant.967 19. The main subsidiaries generating deferred income tax balances are detailed below: June 30.609 98. 2009 Financial leases Other borrowings Total borrowings Interest to be accrued - 1 year or less 1. 16.583 1 .259) (179) (30.867) (3..160) (9. 2010 June 30.866 3.011 6.3 years 400 2.A.721 - The fair value of borrowings equals their carrying amount.139 (10.682 414 40.556) (10.110 276 23 23 - 3 .854 86.620) (9.684 6.463 1.710 3.765 49 - Over 5 years 37 6.614) Deferred Income Tax Assets TEBRA Sidernet de Venezuela C.106 2.083 1.979 388 3.76 | TEI&C S. 2010 and 2009 the Company discloses under the caption “deferred income tax assets” the net balance recognized by those subsidiaries that recorded a net deferred income tax asset.548 2. TEMEX’s Subsidiaries Other 36.082 65.490) . unless otherwise stated The maturity of borrowings is as follows: Without due date June 30.959) (7.A. while the net balance recognized by those subsidiaries that recorded a net deferred income tax liability has been disclosed under “deferred income tax liabilities” in the consolidated statement of financial position. 2009 45.5 years 217 2. TEI&C and most of the Company’s subsidiaries are subject to income taxes.639 3. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.624 3.

970 1. Other Subtotal Deferred Income Tax Liabilities Committed investment FEPSA Different criterion used to assess the tax gain/ (loss) of the J.Iglys S.V.342 11.245 1.731 29 3.308 353 June 30.Techint Cía.299 11.Impregilo S.Argentina) .161 644 502 23.760 1.Argentina) .874 17. unless otherwise stated At June 30.(Suc.997 2.774 34. Técnica Internacional S.914 37.A.Consolidated Financial Statements | 77 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.414 2.C.493 31.A.705 1.p. PP&E Exchange differences Deferred income/Construction contracts PP&E revaluation (see note 4) Inventories Effect of restatement in constant currency Other Subtotal Net deferred income tax asset 54.C.I.348 93. 2010 and 2009 the deferred tax balance is originated by the following items: June 30. 2010 Deferred Income Tax Assets Tax-loss carry-forwards Provisions Deferred costs/Construction contracts Exchange differences Advances from clients Different criterion used to assess the tax gain/ (loss) of the J.Iglys S. 2010 Deferred tax assets to be recovered within 12 months Deferred tax liabilities to be recovered within 12 months 21.334 .I.A.A.741 2.525 The amounts shown in the balance sheet include the following: June 30. .Techint Cía.065 98.Impregilo S.069 26.436 349 41.V. Técnica Internacional S. . (Suc.097 5.908 40.284 5.294 618 1.303 - 1.A.p.199 740 1.A.865 94.507 59. 2009 44.

199 386 (2.760 (411) 621 11.418 94.342 Committed investment FEPSA Deferred Tax Liabilities At the beginning of the year Translation differences PP&E revaluation Income statement charge / (Credit) At the end of the year 11.284 170 (2.761) 19.681) 20.914 40.245 June 30.699) 1.A.457) 37.885) 31.874 (1.140 (4.414 (928) 20.78 | TEI&C S.908 3.864 93.741 2.308 2.162 59.432 419 311 5.085) 5.731 4.705 1.380 41. 2010 At the beginning of the year Translation differences Increase due to business combinations (see note 1) Decrease due to sale of subsidiaries (see note 1) PP&E revaluation (net) (see note 4) Future contracts Income statement (charge) / credit At the end of the year 34.815 54.097 .525 6.525 The evolution of deferred income tax assets and liability during the year is as follows: Tax-loss carryforwards Provisions Deferred costs/ Construction contracts Advances from clients Other Total Deferred Tax Assets At the beginning of the year Translation differences Income statement charge / (Credit) At the end of the year 44.264 (221) 98.140 15.292) (416) 14. unless otherwise stated The evolution of net deferred income tax asset / (liability) during the year is as follows: June 30.605 512 (1.880) 2.303 5 1.299 4. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.184 34.774 (2. 2009 (13.945 (20.997 5.710 (18) 449 (92) 33.970 Deferred Income/ Construction contracts PP&E revaluation Inventories Other Total 23.294 437 2.493 17.191 6.140) (16.

616 17.028 27. Trade and other payables June 30. 17.463 33. 2009 767 2.120 1.131 .211 149.951 3.272 21.816 2. 2010 Non-Current Trade payables Social security and other taxes Total trade and other payables Current Trade payables Social security and other taxes Amounts due to related parties (see note 25) Other payables Total trade and other payables 467 22.Consolidated Financial Statements | 79 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. unless otherwise stated The tax loss carry-forwards mature as detailed below: June 30.203 108.744 23.906 June 30.302 3.799 269.444 114.862 192.543 4.974 107.206 304. 2010 Year 2010 Year 2011 Year 2012 Year 2013 Year 2014 Year 2015 Year 2016 Year 2017 Year 2018 Year 2019 Year 2020 Without maturity 2 38 82 1.372 20 113 18. 2009 246 17. In this regard.729 198. sufficient to be used before their legal prescription.568 112.716 32.129 89 20. 2010.564 The recoverable value of deferred tax assets depends on the existence of future income subject to income tax. Management estimates that TEI&C’s subsidiaries will generate sufficient taxable income in future periods so as to offset the net balance of deferred income tax assets recorded at June 30.784 87 2.280 31.049 220.345 June 30.

653 784 2.917 36.198 1.607 81.332 748 9.300 76. 2010 Non-Current Provisions (see note 19) Amounts due to related parties (see note 25) Other liabilities Total other liabilities Current Provisions (see note 19) Advances received on construction contracts Advances received on construction contracts from related parties (see note 25) Amounts due to related parties (see note 25) Other liabilities and provisions Total other liabilities 26.021 4.000 5.327 94.677 115 1.4 years Over 4 years At June 30.392 36.906 269.472 14.789 June 30.198 2.230 .390 102. 2010 Trade and other payables Total Trade and other payables 8.750 1.736 4.110 269.021 1.80 | TEI&C S.113 3. unless otherwise stated The maturity of trade and other payables is as follows: Without due date 1 year or less 1 .3 years 3 . Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.166 4.906 7.146 7.110 8.146 2.780 10.A. Other liabilities June 30.2 years 2 .736 18. 2009 31.

2009 Translation Reversal Additions (a) Used Values at June 30.107 1.300 (2) (1.819) 6.107 5 (2.485 (108) 5.141) 9.586 3.113 1.046 Taxes 5.754 4.118 (488) 630 Total 17.853 (1. unless otherwise stated 19.733 Other 11.208 (346) 6.459 Other 522 (124) 1.137 (525) 6.500) 790 3.776 (602) (697) 6.121 503 (5) 1.888 (3. 2008 Translation Additions Increase due to business combination (see note 1) Used Values at June 30.332 10.000 (805) 10.975 138 (2.704) 20. 2010 6.005 (10.586 Civils 7.078) 14.647 (1.238) (7.497 (312) 4.257 4.289) 4.061 394 (5.975 7 (1) 1. the amount estimated by the Company and its legal counsel that should be paid to settle such dispute. therefore.118) 1.371 10.640 (1.607 (a) The Saudi Techint Ltd.625 Taxes 6. 2009 Current Values at June 30.718) 7.950 (1.586 Civils 3.023) 11.459 (16) (1.261 630 6.388 (4. i.970 1.512) (10.586 3.300 .887 (2.113 2.242 Total 31.548) (2.061 3.290 (2.270 (326) 1.907 (3.408) 3.’s minority shareholder filed a complaint against TENCO before the 15th Commercial Tribunal of the Board of Grievances of Saudi Arabia seeking relief for damages and claim.093) 26.970 468 (555) 1.907 (2.Consolidated Financial Statements | 81 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.500) 7.281 3. the Company created an allowance for USD 6 million.837) 31. 2009 Translation Reversal Additions Used Values at June 30.e.360) 7.693 (342) 4. Provisions Labor Non-Current Values at June 30.553) 1. 2009 6.568 (341) 47 3.000) 2. 2008 Translation Reversal Additions Increase due to business combination (see note 1) Used Values at June 30.181 193 9.825 10.533 1.081) 8.625 14 960 (1. Labor Non-Current Values at June 30. 2010 Current Values at June 30.

2009 Present value of unfunded obligations Costs for services rendered in the past not recorded Unrecognized actuarial losses Liability in the consolidated statement financial position 27. 2010 Year ended June 30.849) 13.907) 17. 2009 Current service cost Interest cost Net actuarial (gains) losses recognized in the year Amortization of costs for services rendered in the past not recorded Total included in Labor costs 2.496 2. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.242 . Employee benefits Non-funded defined benefits and other long-term benefits The amounts recognized in the consolidated statement financial position are determined as follows: Year ended June 30.428 1.033 (1.201 2.251) (7.875 18.A. unless otherwise stated 20.881 1.82 | TEI&C S. 2010 Year ended June 30.544 321 6.833 879 515 6.005 The amounts recognized in the income statement are as follows: Year ended June 30.578 (724) (4.

respectively.242 (1. 2010 and 2009. unless otherwise stated The amounts and movements in the liabilities recognized in the consolidated statement financial position are determined as follows: Year ended June 30. the main actuarial premises used for calculation of such plans contemplate a discount rate of 7% and of 6% (real) and a salary increase rate of 2% and 3 %. 2010 TEBRA contributed USD 1.419) 69 6.005 (387) (315) 6.629) 17.229 to the defined contribution plans.58% (real) for both years and a salary increase rate of 6.377) 13.005 At June 30.Consolidated Financial Statements | 83 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2009 At the beginning of the year Translation Transfers and new participants of the plan Total expense Services rendered in the past not recorded Contributions paid At the end of the year 13.490 (2. Contribution plans During the year ended June 30.875 10. 2010 Year ended June 30.40% respectively. The actuarial premises used in TEMEX for calculation of such plans contemplate a discount rate of 8. .428 773 (1.08% and 6.

V.320 - 60.Unión Transitoria de Empresas Complejos “Los Caracoles” and “Punta Negra“ (1) 26. 2010 Main Joint Ventures Total J. .Unión Transitoria de Empresas .A.Alumina do Norte do Brasil S. The following balances represent the J..445 3.182 971 50.A (Sucursal Argentina).00% - - - 34.00% 2. . . .C.I. Ma.00% Techint Cia.B.998 2.Boilermaking (2) Consórcio Techint UMSA III . Re. . .C.00% 1.p. unless otherwise stated 21.010 - 80.s was recorded through proportional consolidation of assets.A.V. .00% 2.Panedile Argentina S. procurement and construction activities. Técnica Internacional S.FLUOR Inc.C.Proyecto: Pascua Lama (1) 1.Proyecto: Expansión Veladero (1) 2. .Unión Transitoria de Empresas – Subte Linea A (1) 588 88 50.C.071 26.011 65.250 50.Luis M.I.V.84 | TEI&C S.471 2.A.363 50.V. Técnica Internacional S.C.'s Liabilities June 30.'s Assets Total J.677 518 50.A.FLUOR Inc.846 50.Impregilo S.00% Consórcio Techint UMSA II .V. .'s Liabilities % of Total J.580 65.V. Técnica Internacional S.A.Unión Transitoria de Empresas .683 75.s which also perform engineering. The Company’s participation in those J. Técnica Internacional S.Electromechanical Assembly West Area (2) - - - 30.Complejo Penitenciario Ezeiza (1) 17.I.C.C.Iglys S.Roggio e Hijos S.Alumina do Norte do Brasil S.450 24.00% Techint Cia.00% 14.00% . liabilities and results. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.A.Unión Transitoria de Empresas .820 75. Pagliara S. .Unión Transitoria de Empresas .00% 20.162 236 60.00% Techint Cia.00% Techint Cia.V. Malla 332 (1) 1. Participation in Joint Ventures The Company’s subsidiaries were part of different J.A. 2009 % of ownership Techint Cia.'s Assets ownership Total J.248 1.00% Techint Cia. Técnica Internacional S.s assets and liabilities at June 30.00% 12.A. . . .219 131 60.A.A.A. Técnica Internacional S.e I.e I.I. 2010 and 2009: June 30.A.362 12.A.

532 58.Engineering.985 13.Waupisoo Project (4) Techint / Somerville .00% 50.574 174 46.V.00% 70 26.741 82.Lot I Tanks Refinaria do Nordeste.LNG Costa Azul Project (4) (1) Controlling interest through TEARG.V. unless otherwise stated June 30.Consolidated Financial Statements | 85 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.105 60.425 50.00% 97.631 8.00% 50.Chiquintirca Gas Compression Plant (3) Techint / Somerville .623 8.907 60. Abreu e Lima (RNEST) (2) Consórcio Andrade Gutierrez .00% 33.765 47. (2) Controlling interest through TEBRA.734 50.266 10.00% 43.396 17.233 60.00% 75 1.968 50.Mataripe Refinery (RLAM) (2) Consórcio Odebrecht-Techint (ODETECH)-Gasduc III (2) Tamburí Comércio de Máquinas e Serviços de Engenharia Ltda.00% 16.858 50.Clipper Project (4) Techint / Black & Veatch .661 29.AG) (2) ABB Lummus Techint Trinidad Joint Venture .Techint (AG-TECH) Diesel Unit of Landulpho Alves . Procurement and Management Services (3) 17.452 1.500 50.390 2.00% 50.00% 50.V.946 13.142 50.00% 196 54.880 17.00% 50.735 50. 2010 Main Joint Ventures Total J.V.00% 50.485 50.551 60. 2009 % of ownership Consórcio Techint Confab UMSA .003 11.Construction Management Services (1) 136. (3) Controlling interest through TENCO.702 22.093 1.Gasoline Optimization Program Upgrade .00% Chiquintirca Joint Venture .00% 13.774 3.704 49.00% .'s Liabilities % of Total J.'s ownership Assets Total J.655 8.00% 812 2. (Tamburí) (2) Consórcio Andrade Gutierrez . 13.'s Liabilities June 30.00% 7.00% 51.00% 50.Petroleum Company of Trinidad and Tobago Limited .00% 50.'s Assets Total J.448 10.Petroleum Company of Trinidad and Tobago Limited .456 2.103 50.00% 50.097 2.Techint (TE . (4) Controlling interest through TEMEX.00% ABB Lummus Techint Bahamas Joint Venture .856 80.416 50.Gasoline Optimization Program Upgrade .Corridor Project (4) Techint / Somerville .679 3.518 10.

86 | TEI&C S.A.

Notes to the Consolidated Financial Statements
All amounts are shown in USD thousands, unless otherwise stated

The following balances represent the J.V.s results at June 30, 2010 and 2009: June 30, 2010 Main Joint Ventures J.V.'s Results % of ownership J.V.'s Results June 30, 2009 % of ownership

Techint Cia. Técnica Internacional S.A.C.I. - Panedile Argentina S.A. - Unión Transitoria de Empresas - Complejos “Los Caracoles“ and “Punta Negra“ (1)

11,258

75.00%

(17,278)

75.00%

Techint Cia. Técnica Internacional S.A.C.I. - Impregilo S.p.A (Sucursal Argentina) - Iglys S.A. - Unión Transitoria de Empresas - Complejo Penitenciario Ezeiza (1)

(2,200)

65.00%

1,784

65.00%

Techint Cia. Técnica Internacional S.A.C.I.- Luis M. Pagliara S.A.Unión Transitoria de Empresas-C. Re. Ma. Malla 332 (1) Techint Cia. Técnica Internacional S.A.C.I. - B. Roggio e Hijos S.A. Unión Transitoria de Empresas - Subte Linea A (1) Techint Cia. Técnica Internacional S.A.C.e I. - FLUOR Inc. - Unión Transitoria de Empresas - Proyecto: Pascua Lama (1) Techint Cia. Técnica Internacional S.A.C.e I. - FLUOR Inc. - Unión Transitoria de Empresas - Proyecto: Expansión Veladero (1) Consórcio Techint UMSA II - Alumina do Norte do Brasil S.A. Boilermaking (2) Consórcio Techint UMSA III - Alumina do Norte do Brasil S.A.Electromechanical Assembly West Area (2) Consórcio Techint Confab UMSA - Lot I Tanks Refinería do Nordeste, Abreu e Lima (RNEST) (2) Consórcio Andrade Gutierrez - Techint (AG-TECH) Diesel Unit of Landulpho Alves - Mataripe Refinery (RLAM) (2) Consórcio Odebrecht - Techint (ODETECH) - Gasduc III (2)

(117)

60.00%

(88)

60.00%

(572)

50.00%

(1,174)

50.00%

1,229

50.00%

505

50.00%

2,625

50.00%

4,405

50.00%

-

-

329

60.00%

-

-

6,338

80.00%

17,146

60.00%

480

60.00%

10,542

50.00%

27,388

50.00%

78,316

50.00%

39,610

50.00%

Consolidated Financial Statements | 87

Notes to the Consolidated Financial Statements
All amounts are shown in USD thousands, unless otherwise stated

June 30, 2010 Main Joint Ventures J.V.'s Results % of ownership J.V.'s Results

June 30, 2009 % of ownership

Tamburí Comércio de Máquinas e Serviços de Engenharia Ltda. (Tamburí) (2) Consórcio Andrade Gutierrez - Techint (TE - AG) (2) ABB Lummus Techint Trinidad Joint Venture - Gasoline Optimization Program Upgrade - Petroleum Company of Trinidad and Tobago Limited - Construction Management Services (1)

2,352

50.00%

3,790

50.00%

4,806 (1,805)

50.00% 50.00%

4,554

50.00%

ABB Lummus Techint Bahamas Joint Venture - Gasoline Optimization Program Upgrade - Petroleum Company of Trinidad and Tobago Limited - Engineering, Procurement and Management Services (3)

(486)

50.00%

1,836

50.00%

Chiquintirca Joint Venture - Chiquintirca Gas Compression Plant (3) Techint / Somerville - Waupisoo Project (4) Techint / Somerville - Corridor Project (4) Techint / Somerville - Clipper Project (4) Techint / Black & Veatch - LNG Costa Azul Project (4)
(1) Controlling interest through TEARG. (2) Controlling interest through TEBRA. (3) Controlling interest through TENCO. (4) Controlling interest through TEMEX.

4,905 180 1,595 114,489 (2,017)

60.00% 50.00% 50.00% 50.00% 50.00%

6,845 13,090 36,584 46,090 22,218

60.00% 50.00% 50.00% 50.00% 50.00%

88 | TEI&C S.A.

Notes to the Consolidated Financial Statements
All amounts are shown in USD thousands, unless otherwise stated

22. Contingencies and commitments a. Guarantees and bonds granted TEI&C and its subsidiaries have entered into a series of guarantee contracts with third parties through which they undertake the unconditional and irrevocable obligation to guarantee the prompt and complete payment and performance of certain liabilities incurred by related parties. In addition, Granted in favor of:
(in million of USD)

certain of the Company’s subsidiaries issued a number of guarantees to provide for the obligations assumed in the normal course of business. As of June 30, 2010 and 2009, TEI&C issued the following guarantees on behalf of other companies, as follows:

June 30, 2010

June 30, 2009

SIDOR C.A. Barrick Explotaciones Arg. S.A. Caterpillar Financial Services Corporation Siderca S.A.I.C. ABB Lummus Global Overseas Corporation ABB Lummus Global Inc. JGC Arabia Limited JGC Corporation Anglo American Sur S.A. Total

10.9 23.0 0.3 0.8 7.0 9.5 18.4 30.1 116.2 216.2

10.9 23.0 6.7 0.8 7.0 9.5 57.9

b. Works executed under a trust, construction, and leasing agreement TEARG, as a member of the J.V. Techint Compañía Técnica Internacional S.A.C.I. – Impregilo S.p.A. (Sucursal Argentina) – Iglys S.A., has signed a contract with the Argentine Government for the construction of a penitentiary institution, under the turnkey system, located in Ezeiza, province of Buenos Aires, payable in 60 quarterly installments as canon, nominated in USD. The J.V. accepted the pesification of canons at a ARS 1-USD 1 rate and the application of the Reference Stabilization Index (RSI) until the effective date of payment, according to the Agreements executed by the J.V. with the Ministry of Justice and Human Rights, dated November 19, 2003 and September 9, 2004. The canons collected plus RSI

after the Agreement dated September 9, 2004, were Nos. 17, 18, 19, 20, 21 and 22. On the other hand, before execution of such Agreement, canon No. 8 was also collected plus RSI in January 2003. That notwithstanding, the J.V. received from such Ministry payments for several canons not applying the RSI, which have been taken by the J.V. as partial payments of the total amount due and payable arising from the Agreement dated September 9, 2004. Thus, from January 2006 to the date of issue of these financial statements, the J.V. received as partial payment a total amount of USD 40,0771 thousand corresponding to canons 10 to 16 and 23 to 43 at a ARS 1-USD 1 rate, not applying the RSI. Taking into account this situation, in the past fiscal

Consolidated Financial Statements | 89

Notes to the Consolidated Financial Statements
All amounts are shown in USD thousands, unless otherwise stated

year the J.V. Management made a new estimate of the date of probable collection of the RSI past due and to become due. The proportional participation of TEARG in the total balance receivable of the J.V. with the Argentine Government as of May 31, 2010 amounts to USD 56,6301 thousand (at May 31, 2009: USD 62,776 thousand). The amount of such credit recorded in these consolidated financial statements, which arises from discounting the amounts mentioned above from their current value on May 31, 2010, is equal to USD 28,285 thousand, capital USD 10,087 thousand and RSI USD 18,1981 thousand, (at May 31, 2009: USD 31,802 thousand, capital USD 12,962 thousand and RSI USD 18,8401 thousand) of which the amount of USD 10,857 thousand is past due at June 30, 2010 (at June 30, 2009: USD 10,514 thousand). All these financial credits correspond to the canons receivable from the Argentine Government, due and to become due, which were recorded as per the Agreement executed on September 9, 2004 with the Undersecretariat of Coordination and Innovation under the National Ministry of Justice and Human Rights, in Pesos at a rate of ARS 1-USD 1 and adjusted with RSI up to December 31, 2008. As from such date, credits were no longer adjusted with RSI as a result of the filing of the Arbitration Claim before the International Court of Arbitration of the International Chamber of Commerce stated in the following paragraph. Taking into account the Ministry of Justice’s delay as to a resolution and payment of the overdue debt, Santander Río Trust S.A., in its capacity as
(1) Outstanding collecting amounts are nominated in argentine peso. The figures shown in USD belong to the amounts in argentine pesos which were translated at the year end exchange rate.(2010: USD 1 – ARS 3,931 and 2009: USD 1 – ARS 3,797)
1 1 1 1 1

Trustee and Grantor of the Leasing, on July 4, 2008, following the J.V.’s express instructions, submitted a note demanding payment of amounts due. Upon failure to answer by the Ministry of Justice, on November 28, 2008, an Arbitration Claim was filed before the International Court of Arbitration of the International Chamber of Commerce, for the purpose of appointing an arbitration tribunal consisting of three arbitrators and to hold the respondent, the Argentine Government, liable for payment of the amounts claimed plus any interest that may be accrued and the new terms of the debt to expire during the arbitration process. The arbitration claim was notified to the Argentine Government in May 2009, the Arbitral Tribunal was constituted and the process is now at the stage of issue of the Mission Statement. In the opinion of the J.V.’s Management and of its legal advisors, it is estimated that, by application of the legal rules and regulations regarding pesification (application of RSI to due canons) which should be applicable to this contractual structure, the J.V. has a solid legal position to collect its credits within the scope of the abovementioned legal rules and regulations. In May 2009, the J.V. was informed of the passing of Executive Order No. 541/09, which empowers UNIREN to renegotiate the Construction, Trust and Leasing Agreement executed in 1998 in relation to Penitentiary Complex I (Ezeiza). The J.V. has not consented to the provisions of such executive order by virtue of the defects thereof. On June 18, 2009, a letter was submitted through Santander Río Trust S.A., in its capacity as Trustee and Grantor of the Leasing, following the J.V.’s express instructions, to the above-stated respect claiming the unlawful nature of such executive order.

and Banco de Galicia y Buenos Aires.A. They primarily comprise infrastructure (main and secondary railway network). pledge. c.992 thousand and USD 17. fixed facilities and other. respectively. not to transfer and/or in any manner dispose of.246 thousand respectively. except for the wear and tear over time and the normal use.275 thousand and USD 12. either in a transaction or a series of transactions. grant At June 30.A. TEMEX Coincar S. 2009: USD 322 thousand). nor to distribute dividends. liabilities for finance leases amount to USD 1.A. respectively. therefore. Under the Credit Facility Agreement entered into by Coincar S. Those resources have been paid by assigning the above-mentioned collection rights. the subsidiary FEPSA received from Ferrocarriles Argentinos assets of its own to be used in the operation (included in “Property. all or a substantial portion of any of its assets. (COINFER) Licensed assets: In conformity with the regulations established in the bid specifications and the License Agreement. the Company had USD 4.884 thousand) in assets granted as guarantee for different proceedings. TEARG At June 30. 2010 and 2009.579 thousand.90 | TEI&C S. at no additional cost. 2010. no provision was set up.007 thousand (at June 30. 2010 and 2009. included in the account "Borrowings" (current and non-current. Restricted assets TENCO and subsidiaries At June 30.F.639 thousand and USD 28. transportation material (locomotives and coaches). real property (warehouses and buildings). TEBRA At June 30. without the prior consent of the majority of the banks that granted the Credit Facility Agreement. the net carrying amounts of the PP&E held under finance lease amount to USD 5.163 thousand) and USD 13 thousand (at June 30. loan and/or loan for use. respectively). The amounts of these contingencies amount as of June 30. plant and equipment” non-current).A. mortgage. . Other Contingencies and uncertainties The company has tax and civil lawsuits for which the legal advisors consider the possibility of loss is possible and. which are supported with percentage-of-completion certificates for projects in process. Upon expiration of the license.A. unless otherwise stated As of the date of issue of these financial statements. pay fees to the company’s directors or consultants.198 thousand for civil contingencies. assign in ownership and/or use and/or usufruct. the assets will be returned to Ferrocarriles Argentinos. the claimants and respondent continue holding conversations in order to assess the possibility of an eventual solution of the conflict. Compañía Inversora Ferroviaria S. while the arbitration proceeding continues.A. 2009: USD 1. levy in any manner whatsoever.433 thousand. At June 30. 2010 to USD 9. in their normal condition of maintenance. agrees not to sell nor cause to be sold.I. a security and/or personal interest with respect to. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. Coincar S. 2010. goods and/or rights to be acquired in the future. with Banco Río de la Plata S. goods and/or rights and/or of its assets. 2010 and 2009. there are PP&E with a residual book value of USD 748 thousand (at June 30.611 thousand for tax contingencies and USD 4. 2009: USD 5. 23. 2009: USD 1.655 thousand) which are pledged as guarantee for liabilities under leasing agreements for USD 279 thousand (at June 30. TEMEX and its subsidiaries had obtained resources from financial entities amounting to USD 45. lease and/or enter into a leasing.

’s shares of public use and social interest. the Supreme Court of Justice declared the constitutionality of the organic nature and ordered the transformation of SIDOR C.A. 2008. 2007 and classified a group of assets and liabilities as held-for-sale. the President of Venezuela sent to the Supreme Court of Justice an Executive Order with the rank. SIDOR and Sidernet executed the Agreement for Early Termination of “The Contract” . 24. except for expatriated personnel. 2009: USD 1. except as otherwise provided for in such document. Based on the facts and circumstances described above the Company ceased consolidating Sidernet and Sersisa’s results of operations as from July 1. 2009: USD 955 thousand) and USD 10 thousand (at June 30. (“Sersisa”)’s only client.A. whereby both parties stated that the business relationship existing between them by virtue of such Contract was terminated. Discontinued operations In April 2008. On April 29. and therefore.A.A. 2008.. all the obligations to do (affirmative covenants) assumed by the companies deriving from the execution of “The Contract” became extinguished.836 thousand) which are pledged as guarantee for liabilities under leasing agreements for USD 622 thousand (at June 30.A. the Sidernet’s management sent a notification to SIDOR C. and declared the activities performed by SIDOR C. its affiliates and subsidiaries.Consolidated Financial Statements | 91 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2009. on June 12. Sidernet de Venezuela C. S. 2008. At June 30.A. together with the stock of spare parts. The results of operations generated by Sidernet and Sersisa as held-for-sale were presented as discontinued operations in these financial statements. 2008.’s new board stating its intention to transfer the services rendered by the Company to SIDOR C. SIDOR was notified of the company’s intention to early terminate the contract. (“Sidernet”) and Servicios Siderúrgicos Sersisa. Final Receipt of services and delivery of equipment and spare parts. On April 30. 2008. On May 9. respectively). included in the account "Borrowings" (current and non-current.A. fixtures and fittings and other investments made. as well as to transfer its entire and detailed payroll. the Government of the Bolivarian Republic of Venezuela made public its decision to nationalize SIDOR C. 2010.A.. of public use and social interest. value and force of an Organic Law (Ley Orgánica de Ordenación) to regulate the companies involved in iron & steel activities in the Region of Guayana. the National Assembly of Venezuela agreed to declare SIDOR C. for such Court to render an opinion on the constitutional standing of the Executive Order’s organic nature. which early termination took place on April 7. tools and consumables in the inventory. its affiliates and subsidiaries into state-owned companies. . through the sale of all its pieces of equipment. On such date. tasks and services required to perform such activities. unless otherwise stated Sidernet S.205 thousand (at June 30. as well as the works. On September 26. there are PP&E with a residual book value of USD 1. Based on the foregoing. and the services paid in advance as of the date the service is transferred.A. 2009: USD 628 thousand).

969 12. 2009 7. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.931) 5.135) 10.302 (2.251) .142) (3.581 (5.885) 238 (371) (3. net (see note 29) Operating profit / (loss) Financial results. unless otherwise stated Analysis of the result of discontinued operations: June 30.167 (4.92 | TEI&C S. 2010 Revenues from construction contracts and other services Cost of sales (see note 27) Gross (loss) / profit General and administrative expenses (see note 27) Other income and expenses.A.276 (2.236 June 30. net (see note 28) Results before income tax Income tax (see note 30) Results from discontinued operations (494) (494) (1.513) 262 (3.305) 2.173) 13.

965 8 8 June 30. The ultimate parent of the group is San Faustin N.Consolidated Financial Statements | 93 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.Chile 3. Construcción y Servicios Limitada .363 3.L. Notes Non-Current Assets Trade receivables from related parties Other receivables from related parties Trade receivables Fluor Techint S.755 June 30. 2010 914 8.070 3.V. Construcción y Servicios Limitada . 2009 9.120 2.67% of the company’s shares.000 4.L. 2010 Sales of goods and services Fluor Techint S. Year-end balances with related parties others than the Parent Company.410 26.Chile Norpower S.067 2.051 784 2.876 3.639 June 30.206 2.R.V. unless otherwise stated 25.750 2.699 2. de C.244 103 103 42.090 748 115 1. 2009 .R.240 Current Assets Current Liabilities Transactions with associated parties June 30. which owns 88.A. Trade receivables from associated parties Trade receivables from related parties Other receivables from related parties Non-Current Liabilities Other liabilities due to related parties Borrowings from related parties Advances received on construction contracts from related parties Other liabilities due to related parties Trade and other payables due to related parties Borrowings from related parties 8 8 8 18 15 18 18 17 15 711 1. Related party transactions The group is controlled by Techint Limited.166 3.

914 The aggregate compensation of the directors and executive officers earned during 2010 and 2009 amounts to USD 12. . 2009 220. 2010 Sales of goods and services Purchases of goods and services 191. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.889 thousand.105 thousand and USD 9.592 20.206 6.773 June 30. unless otherwise stated Transactions with related parties others than the Parent Company June 30.94 | TEI&C S.A. respectively.

de C. Nitroelina. Subsidiaries Country Company % of ownership June 30.00% (4) 100.00% 100. Servicios y Prestaciones Techint Funchal .V.00% 50. de C. S.Serviços.00% 100.00% (2) 100. Sidernet S.86% 51. Saudi Techint Ltd.00% 100.00% 51. de C.V.00% 100. Compañía Interamericana de Trabajos Civiles Comintrac S.V. S. Elina Sureste. Fidelis Management S. unless otherwise stated 26.A.A.A.V.A.V.00% 100.00% 100. Elinatech.00% 100. de C.14% 100. Comércio e Gestão de Projetos Lda.00% 50.Consolidated Financial Statements | 95 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.00% 100.00% 50.00% (2) 25.V.00% 100.A.00% 100. S. SICI .00% 99.V. Prestaciones Globales Siderúrgicas S. de C.V.V Socominter Sociedade Comercial Internacional Ltda. Norgas S.00% 100. de C.00% 100.00% 99. Coincar S.00% 100. Preglosid S.A. Energía Tamaulipas S.00% (1) 50. Cimimontubi S.00% 100.00% 50. S. de C.A.86% 51. Norpower.00% 100. Sidernet Mexicana S.A. de C.A.A. S. Holland Mexico Argentina Mexico Mexico Venezuela Argentina Ecuador Argentina Mexico Colombia Mexico Mexico Mexico Mexico Mexico Mexico Argentina Panama Uruguay Mexico Mexico Argentina Mexico Spain Argentina Saudi Arabia Venezuela Portugal Mexico Argentina Venezuela Mexico Brazil Mexico 100.A.A. Servicios Siderúrgicos Sersisa.00% 100.A.V. S.00% 51.A.00% 50.V. de Nieuwe Weg BVT LNG Costa Azul. Carbontec. de C.A. de C. de R. 2010 (*) % of ownership June 30.00% 100. Elina de Occidente.A.00% 65.F.A. 2009 (*) B.A.V.I.A. Elina 406.00% 100.00% 50. S.00% (3) 100.V.00% 100.A.00% 77. de C.A.A.00% 100.A.00% 77.00% 50.00% 60.00% 100.00% 65. de C. Constructora Mexicana Electromecánica y de Instrumentación.A.C.00% 100.00% 100.00% 53. Compañía Inversora Ferroviaria S.00% (6) 100.00% . Carbonser. Sidernet de Venezuela C.L.L.U.V. S.A. S.00% 100. Cotecol Compañía Técnica de Construcciones S.00% (4) 100.00% (2) 70.A.V. Tanks Technologies. de C.A. Elina LT. S.A. Caminos del Oeste S.00% 60.00% 100.V.00% 100. Flinwok S. S.V.00% 50.00% 100.14% 100. Mexcarbón.00% 100. de C. S. de C.Servicios de Ingeniería y Construcciones Industriales S.00% 25.00% 53.00% 70.00% (1) 25. S. de C. S.A. Ferroexpreso Pampeano S.

de C.A. Techint Compañía Técnica Internacional S.C.00% 100.I. these companies were wound-up.00% 100. de C.00% 100. 2010 (*) % of ownership June 30. unless otherwise stated Country Company % of ownership June 30. de C.L.00% 100.00% 100.00% 100. de C. Techint.96 | TEI&C S. Techint Compañía Técnica Internacional S.00% 100. TGT de México.00% (3) 66. Techint Servicios. 2009.00% 100. S. Terminales Portuarias del Pacífico.A.00% 100. Techint Ingeniería y Construcciones. de C.A.V. Techint Inversiones S. de C. (7) On August 27.00% (2) TEMEX has the power to govern the financial and operating policies of the entity (3) During the fiscal year.00% 100. Tecnomatter Instalaciones y Construcciones S.V.V.V.66% (5) (7) 100.00% 100. S. TEMEX sold 100% shares owned in TGT de Mexico SA de C. S.00% 100. S.00% 100.00% 100.A. (TENCO) Techint Ingeniería y Construccion Bolivia S. Techint.P.A. de C.C.00% 100. S. Techint Nigeria Limited Techint S.00% 100.F.I.A.00% (2) 100.V.V. Techint Engenharia e Construção S. Chile Argentina Uruguay Venezuela El Salvador Brazil Canada Bahamas Bolivia Spain Argentina Nigeria Peru Guatemala Honduras Mexico Nicaragua Panamá Mexico Argentina Mexico Mexico Mexico Mexico 100.00% 100.00% 100.00% 100.A.A.00% 100. de C.A. S. Tecnomatter S. TEMEX sold 60% of its shares in Norpower.00% 100. 2009.A.00% 100. Techint. S.A.00% 100.I.00% 100.00% 100.00% 100. (6) On August 27.U.00% 100. Inc.A. assets. S.I.V.A. S.00% 100. Tecnopower S.A. liabilities and results are not included in the consolidated financial statements because the Company decided to set up an allowance for the full investment value.00% 100.00% 100.00% 100. Techint Compañía Técnica Internacional S.F.A de C.00% 100.00% 100. (1) At June 30.V. Techint.00% 100. S. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.A.A.F.00% 100. (*) Direct and indirect participating interests are included. 2009 (*) Techint Chile S.A.C. 2010 the Company decided to include its proportional shareholders’ equity in the liabilities since the subsidiary has a negative shareholders’ equity.V. Techint E&C. Techint International Construction Corp.A.00% 100. (4) Controlling interest through Compañía Inversora Ferroviaria S.A. At June 30. .00% 100.A.A. (5) See note 1.I.00% (5) 12. S.00% 100.V.A.I. Techint. Techint E&C. 2009.

693 .586 42.297 246.748 219. rates and contributions Fees and technical advice Sub-contract for services Purchases of material and supplies PP&E depreciation Intangible assets Amortization Work structure expenses Office structure expenses Participation in J.Consolidated Financial Statements | 97 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.310 9.594 589.481 37.173) 124.692 - 511.631 58.879 8.235 130.944 7.360.760 53. 2010 June 30.V.083 20.126 53.903 4.118 9.952 565 4.348 1.494 33.084 293.190) 1. 2009 Labor costs Taxes. balances Unallocated costs Subtotal Discontinued operations (See note 24) Total June 30.892 53.359 (1.634 28.332.880 1.215 671 18.469 51.033 812 27.213 263.400 205.226.009 157 23.203 7.449.883 (8.481 27.362.225.667) 1. 2010 Total June 30.260 (494) 1.785 95 54 14 1.132 50.854 1.155 (1.034 247.774 44.651 44.196 66. 2009 519.311 48.024 655 3.305 15. unless otherwise stated 27.048 36.441. Cost of sales and expenses by nature Cost of sales General and administrative expenses Selling expenses June 30.766 1.116 222 2.944 9.126 10.242 1.065 58.982 101.328 126.

374) (2.832) (304) (101) (3.Iglys S.867) (5.730) (35. unless otherwise stated 28.T.191 (18.A (Suc.507 (316) 53.648) (1.687) 9. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2009 21.C.344) (6. Técnica Int.491) 3.805 June 30.969) (2. Financial results June 30. S.782) (20.123 2. Holding results Other 10.A.A.033) Discontinued operations (see note 24) (6. .E.p.458 (32.U.551) (5.189) .835 29.870 26 15.118 Costs Interests and indexation Net foreign exchange transaction Derivate financial instruments Holding results Comissions Other (7.061 274 214 53.Impregilo S. Argentina) .I.011) Discontinued operations (see note 24) 8.600 2.98 | TEI&C S.822 (11.723 586 1.A. 2010 Income Interests and indexation Net foreign exchange transaction Derivate financial instruments Discount at current value credits Techint Cia.

701) 601 819 9. unless otherwise stated 29.399 (5. net June 30.008 Discontinued operations (see note 24) (13.969) (4.851) .639 (5.970 1.246 (238) 1.363) 1. Other income and expenses.Consolidated Financial Statements | 99 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2009 4. 2010 Gain from the sale of PP&E Impairment loss Net result for provisions for legal claims and contingencies Other 13.118 June 30.

944) (3. Income tax expense June 30.374) From discontinued operations (see note 24) 4. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.A.931 (56.505) (110) (488) (14.765) 2. 2010 Current income tax Deferred income tax (45. 2009 (64.582 (2.724 (2.514 (1. unless otherwise stated 30.112) (262) (14.473) June 30.696 (684) 3.112) . 2010 Tax calculated at the applicable rate on the result for the year Effect of restatement in constant currency Result due to participating interests in subsidiaries and related companies Sale of participating interests Dividends earned Provisions for deferred tax assets Recognition of deferred tax assets Tax benefit arising from the reversal of impairment of net operating losses recognized in prior years PP&E Tax-deductible interest on own capital Non-deductible expenses Other.100 | TEI&C S.367 8.184 (14.296) 33.626) 2.066) 1.180 544 (7.388) (16.473) June 30.261) (61.050 1.542) The net difference between the tax calculated at the rate in effect in each country and the total charge for the year is generated by the following: June 30.419 1.045 37. 2009 (47. net Income Tax (60.410) 5.085) (61.153 4.

(1) 118 50 (2) 28 118 (2) 16 (2) .Minera Esperanza Replacement of Mineral Pipeline and Reclaimmed Water System Arabia Manifa Water Pipeline Uruguay Av. Supplies and Mechanical Assembly at the Ancillary Building of the Reactor . 2010 Country / Work Physical progress Total contract amount (USD million) June 30. unless otherwise stated 31.Renewal of Stations Bolivia Third Processing Train of the Sábalo Gas Treatment Plant Peru LNG Pipeline Chiquintirca Gas Compression Plant Loop de la Costa Gas Pipeline Camisea Maintenance Chile Construction of Sea Water Drive Pipeline.Consolidated Financial Statements | 101 Notes to the Consolidated Financial Statements All amounts are shown in USD thousands. 2009 Physical Total contract amount progress (USD million) Argentina Campana Refinery Los Caracoles Hydroelectric Station Punta Negra Hydroelectric Station Engineering Services. Ferreira Aldunate Sanitation of Maldonado Road 18 Maldonado Effluents Sanitation of Ciudad de la Costa 100% 18% 10% 20% 0% 7 5 8 37 20 50% 67% 4 15 48 67% 11% 133 156 100% 100% 100% 428 127 50 152 72% 71% 23% 416 110 (3) 38 123 3% 87 100% 100% 3% 95% 100% 100% 100% 100% 80 280 368 236 54 30 136 15 82% 98% 67% 89% 99% 75% 97% 70 224 (1) . 2010 and 2009.Atucha II Veladero Mine Pirquitas Mine Pascua Lama Underground "A" Line . the main contracts are the following: June 30. Main contracts in progress At June 30.

unless otherwise stated June 30.A.Complexo Petroquímico do Río de Janeiro (COMPERJ) Mexico SE 1125 Distribution SE 1125 Distribution .102 | TEI&C S. Subsequent events After June 30. 2009 Physical Total contract amount progress (USD million) Brazil Maintenance and Improvement of Offshore Platforms at Macaé – Northeast Maintenance and Improvement of Offshore Platforms at Macaé – Marlim Gasoline Unit of President Bernardes de Cubatão Refinery (RPBC) Diesel Unit of Landulpho Alves-Mataripe Refinery (RLAM) Lot I Tanks Refinaria do Nordeste.(2) 100% 67% 90% 100% 30 46 91 158 95% 14% 98% 30 91 (4) 158 100% 100% 100% 90 73 251 100% 100% 60% 90 (2) 73 (2) 224 (2) 94% 100% 72% 74% 64% 318 96 43 139 57 88% 99% 40% 52% 55% 293 (2) 92 43 139 57 (3) The Company's participation is 60% (4) The Company's participation is 43% 32. no events. Abreu e Lima (RNEST) Gasduc III Unidad de Coque Retardado . . situations or circumstances have occurred which might significantly affect the Company's equity or financial position.058 100% 95% 58% 18% 4% 60% - 155 201 332 628 (2) 157 (3) 295 (2) .Phase II SLT 1119 Transmission and Transformation of the Southeast Central Expansión Petacalco Thermoelectric Plant Canada Waupisoo Pipeline Project Corridor Pipeline Expansion Project Canadian Mainline Pipeline Project Central America & Caribbean Gasoline Optimization Program Upgrade Project for Petroleum Company of Trinidad and Tobago Pipeline Limón – La Garita Siepac Substations Siepac I Siepac II (1) The Company's participation is 75% (2) The Company's participation is 50% 100% 100% 92% 49% 30% 100% 1% 149 202 380 782 200 387 1. which have not been adequately contemplated or mentioned in these consolidated financial statements. 2010. 2010 Country / Work Physical progress Total contract amount (USD million) June 30. Notes to the Consolidated Financial Statements All amounts are shown in USD thousands.

000 m of cables and 5. 2. The main physical amounts are: 11.Consolidated Financial Statements | 103 Gasoline Unit of President Bernardes de Cubatão Refinery (RPBC). .917 instruments.400 m3 of concrete. 730 tons of metallic structures.300 tons of equipment. 1. Brazil.549 tons of piping. 423.

the progress rate of construction is 3%. a contract was executed between Empresa Provincial S. TEI&C subsidiaries’ activities for the period 2009-2010 Revenue 457 369 325 ARGENTINA During the fiscal year ended in June 2010. Civil works were completed during this fiscal year. 20 Km. the main water resource of the province of the same name. at 100% of the JV. . This project is on the San Juan River. The main projects developed during the fiscal year include: Energy Los Caracoles Hydroelectric Station . With a power of 125 MW. The total contract amount was USD 280 million. Works were commenced in January 2010. and to add 65 MW to the generation system of the Province. The project was handled by the Techint-Panedile Argentina S. As of June 30. and this would represent a significant step towards San Juan’s power self-sufficiency. total revenue in the country amounted to USD 325 million.E.A. the construction of the river deviation channel and the engineering tasks devoted to review the executive design are in progress.Energía Provincial S. respectively. In November 2009. Joint Venture (JV).E. at present. Punta Negra Hydroelectric Station – Energía Provincial S. Los Caracoles will provide a mean power capability of 715 GWh. The two generation units 07-08 08-09 09-10 became operational in July and December 2009. The contract amount is USD 368 million and the execution term is 54 months. where the Company has a 75% participating interest. Its purpose is to generate power and improve the stream-flow regulation of San Juan River.A. which is essential for San Juan’s economy. and the works are now in the warranty period since the Company has already obtained the Provisional Acknowledgments of Receipt. and it is intended to increase the regulation of this river.E.104 | TEI&C S. and the Techint-Panedile JV where the Company has a 75% participating interest. downstream Los Caracoles project. 2010.

Annual Report | 105

Engineering Services, Supplies and Mechanical Assembly at the Ancillary Building of the Reactor - Nucleoeléctrica Argentina S.A. - Atucha II. This is a service contract to perform the piping system assembly in the ancillary building of the reactor (UKA building). This building is divided into four main sectors, having different functions: radioactive waste processing and storage, heavy water enrichment, ventilation systems, locker rooms and access to restricted zone. This project is carried out in two stages. The first stage corresponds to piping assembly and comprises 235 tons of supports and 280 tons of piping. The physical progress rate for the piping assembly as of June 30, 2010, is 95%. The second stage, the contract of which was executed after the end of the fiscal year, comprises piping ends, Civil Works, Painting, Insulation and Auxiliary Electricity Services, in the same Building. Both stages works will reach USD 236 million.

Mining
In this sector, the Company has the experience and resources required to perform civil works, roads, runways, assembly of processing plants, installation of tubing and soil movement. Sales during the fiscal year reached the sum of USD 29 million. During the period under analysis, the Company kept on developing the following projects: Veladero Mine - Barrick Gold Corp. In October 2009, the Company completed the works of extension of the current facilities, executed in association with Fluor Argentina Inc., under a JV on a 50%/50% basis. The total amount was USD 54 million. Also in October 2009, Techint was awarded the repair of 3.5 km. of the transportation belt as well as works on 30” piping corresponding to part of the

106 | TEI&C S.A.

During the fiscal year ended in June 2010, total revenue in the country amounted to USD 325 million.

second stage of pumping, which works were completed in May 2010. Pirquitas Mine - Mina Pirquitas Inc. Argentine Branch. During this fiscal year, Mina Pirquitas Inc. Argentine Branch, subsidiary of Silver Standard Resources Inc. from Canada, acknowledged receipt of the project, upon execution of the Acknowledgement of Completion in January 2010. The works consisted in the provision of services of basic and detail engineering, procurement management, construction direction and start-up of an opencast silver, tin and zinc mine, with facilities to process 9,000 tons a day through flotation and gravimetric concentration. The total contract amount was USD 30 million. Pascua Lama - Barrick Gold Corp. Bi-national gold and silver mining undertaking, located in the border between Chile and Argentina. The Company is associated in a JV with Fluor Daniel Argentina Inc. Argentine Branch (on a 50%/50% basis) to carry out the works divided into three phases: Phase I Consolidation of Basic Engineering and Feasibility Study of the Project; Phase II - Detail Engineering and Procurement Management, and Phase III - Construction Management and Construction. During this fiscal year, works were continued in Phase II, starting in April 2007. The total expected amount for this phase is USD 136 million. In addition, the preliminary works have been started for commencement of Phase III, which phase is expected to begin during the next fiscal year.

Architecture and infrastructure works
As regards infrastructure activities, the Company has the capacity and expertise required to develop projects related to roads, highways, bridges, tunnels, railroad and underground tracks, aqueducts, ports, airports, effluent and sewage water treatment plants, dams and telecommunication systems. In addition, the Company performed architectural works, such

Annual Report | 107

as business offices and buildings, housing unit complexes, cultural and educational premises, penitentiary complexes and hospitals. During this fiscal year, the following projects were developed:

Oil & Gas
Campana Refinery - ESSO. During the first half of the fiscal year, the works committed under Assignment No. 10 of the EPC – RC- 1585 umbrella contract were completed. The works developed comprised management

Renewal of Line A Underground Stations – Secretaría de Transporte de la Nación. This project was performed under a JV with Benito Roggio e Hijos S.A., where the Company holds a 50% participating interest, and for a total amount of USD 15 million. During this fiscal year, the works were completed and delivered. Such works consisted in the completion of the overall renewal of several underground stations of the Line A of the City of Buenos Aires. Crema 332 - Dirección Nacional de Vialidad (National Road Department). The contract included the performance of recovery and maintenance works in the roads of the province of San Juan and was awarded to the Joint Venture (JV) formed by the Company and L. M. Pagliara S.A. (with a 60% and a 40% participating interest, respectively). Works were completed on May 2, 2010, and maintenance works are currently in progress to obtain the Provisional Acknowledgement of Receipt. The total contract amount was $ 61 million, at 100% of the JV. Road 14 - Dirección Nacional de Vialidad (National Road Department). The contract was awarded to the Joint Venture (JV) formed by the Company, with a 60% participating interest, and ICF S.A. and Hidraco S.A., with a 20% each. The works consisted in the construction of a second roadway on National Road No. 14, in the province of Corrientes, in the so-called Tranche No. 7, between the junction with National Road No. 127 and the junction with Provincial Road No. 126. During this fiscal year, the Dirección Nacional de Vialidad approved the assignment by the Company of 100% of its participating interest in such JV to ICF S.A.

service, development of engineering, procurement and construction for the re-adaptation of the facilities for import and export of low-sulfur fuels (50 ppm), the execution of a new 33kv line, in a covered duct way (with a total length of 1,150 m), as well as facilities for interconnection of the Campana Refinery with the HMU (Hydrogen Manufacturing Unit). In October 2009, the applicable turnover / acceptance notices were signed, and during the subsequent 2-month period the demobilization and closing of the project took place. The final accumulated certified amount was USD 80 million

Iron & Steel Industry and Other Industries
The Company has developed highly specialized resources to provide design, engineering, construction and main maintenance services to steel-making plants, lamination workshops, blast and electric furnaces, production facilities, metallurgical plants, aluminum-making plants and precious metals plants. The amount of sales reached during this fiscal year was USD 64 million. Several works were executed in Argentina for Tenaris Siderca and Ternium Siderar, among which the following stand out: Ternium Iron & Steel Projects. Relining of Blast Furnace 1. The project consists in increasing the capacity of Blast Furnace 1 from 3000 Tn/day to 3600 Tn/day. The scope of works includes: change

Total man-hours used were approximately 4. The most remarkable works performed during this fiscal year include the change of five beams in Section 7 fume extraction . expansion of Rancho Negro (electrical room).108 | TEI&C S. lifting of Conveyor Belt 5. among other tasks. This company provides services towards the ports of Bahía Blanca. construction of an INBA granulation system and alternative granulation basin and new electrical rooms. assembly of a control tower. New extension of Silo High Voltage Line (Línea Alta de Silos . is the concession holder of the railway cargo transportation. using 562. assembly of two new automated trippers. construction of a new casting room. Other Investments and Services Railway Cargo Transportation Ferroexpreso Pampeano S. (FEPSA). Total income of the period reached USD 10. Total income in this fiscal year reached the sum of USD 48 million. Rosario. .F . using 2. directed from a control tower.5 million and the general progress rate is 99%..9 million.10.000 man-hours.A.5 million man-hours. increase of refrigeration system capacity (construction of new pump rooms and cooling towers). a company under the control and corporate decision of Techint through Compañía Inversora Ferroviaria S.700 and the progress rate during the fiscal year was 100%. of internal heat-resisting steel and cover in tap hole area. Total man-hours used in LAS were 186. 2nd stage in the steel-making area and extraordinary repair of Plant 2009 .I.A. The scope of works included: disassembly of the existing Coke Conveyor Belt and replacement by the new C1A and C1B conveyor belt.A. new extension of the whole power source line and lighting of the sector and assembly of level sensors at silos.LAS). Tenaris Iron & Steel Projects.

of the City of Buenos Aires. the temporary commissioning of which occurred in May 2003.. 2007. the Court passed a ruling approving the composition settlement agreed between the company and its creditors and thus. which represents a 15% volume reduction with respect to the preceding period. 07-08 08-09 09-10 396 331 243 . stockers and large-scale producers within a vast area of the Wet Pampa region. the reorganization proceedings are terminated. On December 30.Annual Report | 109 San Lorenzo and San Martín to exporters. Iglys S. Revenues for this fiscal year have increased by 19%.p. 26. On May 22. Gebr. iron & steel units. Benito Roggio e Hijos S. Puentes del Litoral S.Victoria The Company is a minority stockholder (with an 8% participating interest) and together with Impregilo S.A. and Iecsa S. Hochtief Aktiengesellschaft Vorm. forms the road company connecting the city of Rosario (Santa Fe) and Victoria (Entre Ríos).4 million tons of cargo were transported. power generation. Helfmann. 2009. In addition. construction..Rosario . Sideco Americana S.A.A. As of the date of this Annual Report. 13. the reorganization proceedings concerning such company began before the National Court of First Instance in Commercial Matters No. assembly. (TEBRA) Brazil performs activities related to engineering. transportation systems and infrastructure works in general. During this fiscal year. offshore projects. Revenue BRAZIL Techint Engenharia & Construção S. 3. works management.A.A. negotiations continue to settle the Concession Contract with the Unidad de Renegociación de Contratos de Obras y Servicios Públicos (UNIREN)..A..A. Court Clerk Office No. transmission and distribution. the Company has paid the obligations undertaken in such composition settlement. . from USD 39 million to USD 396 million.

14. The main physical amounts are 9.732 instruments. The activities started in April 2009 and will be completed in May 2012. supply of materials. start-up and assisted operation of the HDT of Diesel (U-37) and UGH (U-38) units. State of São Paulo. . . Petroleo Brasileiro S.A.A.commissioning. a contract was executed with Petrobras for the preparation of the consistency review of the basic project.Gasoline Unit of President Bernardes de Cubatão Refinery (RPBC). commissioning and technical assistance during the pre-operation and start-up of the units of Cracked Gasoline Hydrodesulphurization (HDS). 2008. 21. 1.751 tons of equipment.5m. and 2. Petroleo Brasileiro S. supplies of bulk material. State of Bahía.570 tons of piping. State of Pernambuco. support and tests for the pre-operation of Lot I Tanks of RNEST Refinery. During the current fiscal year.000 m2 of concrete. The updated value of the contract is USD 200 million (at 100% of the consortium). On June. the Power Sub-station SE-37 and the Control Room (K-3701) at the Refinery Landulpho Alves de Mataripe. in Ipojuca. civil construction. preparation of the detail project.000 m of cables and 5. The general progress rate of the project is 92%. commissioning and technical assistance during the pre-operation.300 m2 of painting.0 m.549 tons of piping. The total execution term is expected to be 36 months. 2009. The main physical amounts reach: 11.000 m of cables.7m high. electromechanical assembly. In March 2007. partial supply of equipment.A.917 instruments. 408 tons of metallic structures. The works are performed under a Lump Sum Contract.300 tons of equipment. and 2. pre. a contract was entered into with Petrobras for the preparation of the consistency review of the basic project. a contract was signed with Petrobras for the preparation of the consistency review of the basic project.430 tons each).558 tons of assembly and 177.A. The main physical amounts are: 11. . civil construction. in which Techint has a 60% participating interest.Diesel Unit of Landulpho Alves-Mataripe Refinery (RLAM). preparation of the detail project. supplies of bulk material. conditioning. pre-commissioning. . 4. Oil & Gas Petroleo Brasileiro S.110 | TEI&C S.7m high. electromechanical assembly. detail engineering. preservation. civil construction.400 m3 of concrete.637 m3 of concrete. On March. and 670 tons each) and eight crude oil tanks (Ø 98. 1. The general progress rate of the project is 30%. belonging to Petrobras. The total updated contract value amounts to USD 380 million. The general progress rate is 49%. 730 tons of metallic structures. electromechanical assembly. 14. partial supply of equipment. 240.Lot I Tanks Refinaria do Nordeste. The project includes three raw water tanks (Ø 65. supply of equipment. under a horizontal consortium (50% / 50%) with Andrade Gutierrez. 2. works were performed in the following projects: It is a Lump Sum contract for an updated total amount of USD 782 million. 423. It is a Lump Sum Contract being executed under a consortium with Equipamentos y Usiminas Mecânica. Diethanolamine (DEA) and Coke Gasoline Hydrotreatment (HDT) at the Refinery Presidente Bernardes de Cubatão. Abreu e Lima (RNEST).

78. In August.Annual Report | 111 Petroleo Brasileiro S.Gasduc III – Pacote 01. – Retarded Coke Unit –Complexo Petroquímico do Río de Janeiro (COMPERJ). within a contractual term of 36 months.938 instruments.A. Pipelines Transportadora Associada de Gás . and 4. civil construction. a contract was executed with COMPERJ Petroquimicos Basicos for the preparation of the consistency review of the basic project. of Petrobras. pre. conditioning and support to the pre-operation of Package I of Gasduc III Gas Pipeline Project. tests. 4. civil. special works. a contract was executed with Transportadora Associada de Gás – TAG. The general progress rate is 1%. 2010.411 tons of piping. The main physical amounts are as follows: 46. 2008. supplies of bulk material. electromechanical assembly.204 m3 of concrete. with guaranteed physical amounts. preparation of the detail project.062 tons of metallic structures. mechanical. for the consistency review of basic engineering. over one million meters of electricity and instrument cables. instrumentation and hydraulic works. partial supply of equipment. Techint is part of the TE-AG Consortium with Andrade Gutierrez.433 tons of static and rotating equipment. The total value of the contract is USD 1.commissioning. with a 50% participating interest each. On April. Manipulation and Storage Yard (U6821) and 2 Electrical Sub-stations.529 meters of electroducts. 2. 7. electrical. under the leadership of Techint. and construction and assembly of the trunk line. commissioning and technical assistance during the pre-operation and assisted operation start-up of the Retarded Coke Unit (U2200).058 billion (at 100% of the Consortium). . It is an EPC Lump Sum contract.

in the State of Río de Janeiro. .Maintenance and Improvement of Offshore Platforms at Macaé. with Unit Prices. Both contracts are for unit prices and are developed in 10 offshore platforms in the Campos Basin. the pipeline will cover 178 km and will go from Estación de Cabiúnas to Estación de Campos Elíseos. located in the municipality of Duque de Caxias. Overall. construction management.112 | TEI&C S. The contract encompasses the rendering of Technical Support and Management Services. Iron and Steel Industry and Other Industries ThyssenKrupp – Companhia Siderúrgica do Atlântico (CSA). The general progress rate of the project is 57%. USD 202 million. The Northeast contract was completed in March 2009. including technical analysis. The updated contract value is USD 3. and will be executed under a horizontal consortium with Constructora Norberto Odebrecht S. Such pipeline will have a 38" diameter and will be 104 km long. opposite to the shores of the State of Rio de Janeiro. The works were completed in January 2010. whereas the Marlim contract was completed in September 2009.4 million and the works are estimated to be completed by June 2011. divided into two contracts: Northeast. USD 149 million and Marlim. The updated value of the contract is USD 387 million (at 100% of the consortium).A. contract management and audit management.A. It is an EPC contract. among other activities. whereas the Marlim contract was completed in September 2009. .A. The Northeast contract of maintenance and improvement of Offshore Platforms at Macaé was completed in March 2009. preparation of welding procedures. (50% / 50%). Package I of the gas pipeline extends from Macaé to Cachoeiras de Macacú. Off Shore Petroleo Brasileiro S. The updated contract value is USD 351 million.

of new projects throughout the country. The total amount of this renewal is USD 126 million. The project was completed in January 2010 (Mechanical Completion Certificate Date).A. this contract was renewed for a thirtymonth period. and includes USD 43 million corresponding to purchases made directly by the client.A. the Company partnered with GyM S. The total contract amount is USD 152 million by June 2010. To carry out this project. respectively. The main activities included consistency review of engineering provided by the client.L. The Company provides the maintenance of this gas pipeline. 07-08 08-09 09-10 . and formed the Proyecto Chiquintirca Consortium. The contract total amount was USD 127 million. For next years. (TGP).R. Construction of a 408 km 34” gas pipeline and the respective facilities. Revenue 317 259 106 The main projects developed during this fiscal year were as follows: LNG Pipeline . The contract amount was USD 428 million.mainly at early stages . Chiquintirca Gas Compression Plant Transportadora de Gas del Perú S.A. The project was completed in May 2010. The contract consisted in the construction of a gas compression plant. we foresee good chances of sustainable development through the identification and progress in execution . assembly and pre-commissioning tasks. In July 2010.PERU LNG S.Annual Report | 113 PERU The fiscal year ended with a minimum sales decrease in the country as a result of the progress in the projects under development. Camisea Maintenance – Compañía Operadora de Gas del Amazonas S. with a 60% and 40% participating interest. the supply of materials (excluding the casing and main equipment) as well as construction.

the Company received from TGP the notice to proceed with the construction of a 107 km 24” gas pipeline and the respective facilities.Transportadora de Gas del Perú S. The total amount of this first scope of the project is around USD 73 million and it is expected to be completed in March 2011. including detailed engineering and early works activities (erection of camps.Addition of fourth pump (TGP). (TGP).A. Expansion of LNG transportation system . Loop de la Costa Gas Pipeline . the Company received from TGP the notice to proceed with the early services for the construction of two pipelines of 32” and 24” 150 km each. the Company was awarded two new Projects: Jungle Loops – Early Works (TGP). . 2010. issue of permits. On February. land rental and others activities). by adding a fourth pump in each pumping station. The total amount of this project is around USD 14 million and it is expected to be completed in April 2011. As of June 2010. the Company received from TGP a contract and notice to proceed with the Expansion of the LNG transportation system. the project reached an 8% progress rate.114 | TEI&C S.A. The total amount of the contract was USD 50 million and it was completed in January 2010. 2009. . The project started in July 2010. two of them in the jungle and the other two in the mountain section. On June. During this fiscal year. The project was accomplished by January 2010. In March 2010.

the project reached a 100% progress rate and the contract amount was USD 30 million. 2010.Annual Report | 115 MEXICO In the year ended on June 30. Hidalgo and Queretaro. the project reached a 100% progress rate and the total contract amount was USD 158 million. in the city of Petacalco.V. supply. de C. As of June 30. Turnkey contract for design. 2010. Lump sum financed public works contract and unit price contract with CFE for the execution of six works: four distribution substations and two high voltage lines with a length of 111 km. Techint S. testing and commissioning of a new power generation unit of 750 MW of the Central Thermoelectric Power Station Presidente Plutarco Elías Calles. . construction. As of June 30. SE 1125 Distribution – CFE.A. whose locations are in the states of San Luis Potosi. Revenue 210 171 53 The main projects developed during this fiscal year were as follows: 07-08 08-09 09-10 Energy Central Expansion Petacalco Thermoelectric Plant – Mitsubishi – Comisión Federal de Electricidad (CFE). (TEMEX) consolidated its ongoing projects in this country and continues working in the development of new business. The Company’s scope of work is the balance of plant of the unit. Guerrero. TEMEX has participated in the engineering and construction of major industrial and infrastructure projects. 2010. Throughout its history.

located in the state of Tabasco. and the recovery. such number will exceed 1. there are 3. Provision of personnel and materials for the execution of construction works (including civil and electro mechanic works) and structure mountings. Maintenance and steel & iron services works were continued with an average headcount of 1. SLT 1119 Transmission and Transformation of the Southeast – CFE. the Company unloaded 5.116 | TEI&C S. In the year ended on June 30. As of June 30. de C. The sales obtained during the fiscal year amounted to USD 17. Worth mentioning are some works executed in Churubusco Plant. The contract is being developed under a consortium where TEMEX participating interest is 43%. It is estimated that in the first four-month period of 2011. 2010. Carbonser. the service comprises the transportation and processing of slag. Lastly. In Universidad Plant the most important works were the completion of a shipping warehouse. Construction Works at Veracruz Plant – Tenaris.A. the Company executed different works in Ternium plants all over Monterrey and Puebla in Mexico. like the construction and assembly of a cold lamination facility and the construction of rolls transfer line.V. Lump sum financed public works contract and unit price contract with CFE for the execution of engineering. the project reached a 67% progress rate and the contract amount was USD 46 million. In the 09/10 fiscal year. 2010. supply and transportation of installation materials. S. 195 SE 1125 Distribution (2nd phase) – CFE. the consolidated sales were for USD 64 million. was established on 8 August 1994 and its main activity is to provide services to load and transport coal to the Power Plant President Plutarco Elias Calles.800 persons.000 people. At present. 2010. located in Petacalco Guerrero. in Puebla Plant there were works related to a steel bars storage system and installation of a casting machine system.4 million. supervision of civil and electro mechanic works.06 million tons Iron and Steel Industry and Other Industries Construction Works at Monterrey Plant – Ternium. equipment inspection. there are around 500 persons. In general terms. cutting and classification of junk.089 persons working on a direct basis. During the period. Aguascalientes and Zacatecas. In the North Plant the Company was working in the construction and assembly of a cooling water system and smoke collection system. Heavy Duty Cleaning Service – Tenaris. The current contract in force was awarded in 2009 for a 9-year term. preoperative tests. in the Plant Expansion Project contract and the main contract. A. Provision of personnel and materials for the execution of construction works (including civil and electro mechanic works) and structures erection. and technical support to allow for the start up of electric substation and transmission lines. the . the overall progress for the project was 90% and the contract total amount was USD 91 million. In Juventud Plant main works were the construction of trailer entrance and external illumination systems. At present. hydrogen system construction and the demolition of several buildings. The annual billing was approximately USD 5. Petacalco Project – CFE. whose locations are in the states of San Luis Potosi. As of June 30.5 million. but there were peaks of 600 people working for this contract on a direct basis. Lump sum financed public works contract and unit price contract with CFE for the execution of nine works: six distribution substations and three high voltage lines with a length of 168 km.

A.A. power generation. During this fiscal year. the Company received the notice to proceed regarding the contract for “Construction of Sea Water Drive System and Transportation and Concentrate System” [“Construcción del Sistema de Impulsión de Agua de Mar y Sistema de Transporte y Concentrado”]. engages in activities related to engineering. the notice to proceed and then.Annual Report | 117 of coal and delivered 5. from Anglo American Sur S. transmission and distribution..A. During July 2009. the Company resumed its level of activity. which had suffered a decrease during the previous fiscal year.80 million tons to the CFE terminal in Lázaro Cárdenas. transportation systems and infrastructure works in general. Anglo American Sur S. In December 2009. CHILE Founded in 1951. In addition. the contract Revenue 146 110 7 07-08 08-09 09-10 . mining projects. Total revenue for this fiscal year amounted to USD 33 million.88% participating interest in Techint Chile S. the Company received. procurement and construction (EPC) contract and the scope of works contemplates the construction of the concentrate transportation system. Works were performed mainly in the following projects: Minera Esperanza – Construction of Sea Water Drive System. consisting in the line to transport concentrate from the Mina Esperanza plant to the port of Michilla. with the applicable energy dissipation station. Tenco holds a 76. – Replacement of Mineral Pipeline and Reclaimed Water System.A. The work consists in an engineering. which shall transport water from fore bay at the port of Michilla to a pool near the Esperanza plant. Techint Chile S. works contemplate the construction of the sea water transportation and drive system. The amount of the contract is USD 133 million and the execution term is 14 months.’s capital stock. for Minera Esperanza. construction and assembly of pipelines.

A. This contract contemplates the service of mechanical maintenance of Los Colorados. which shall constitute addenda to the contract for the Mineral Pipeline and Reclaimed Water System already executed with Anglo American. 2011 and the total amount of the contract is USD 156 million. The term for completion of all aspects of the contract is July 30. In April 2010. Anglo American Sur S. Construction of Stations and Singular Points for the reclaimed water system. the new contract “Service of Mechanical Maintenance per Families and Equipment of Processes” [“Servicio de Mantenimiento Mecánico por Familias y Equipos de Procesos”] was executed with Minera Escondida (MEL). the work contemplates an expansion of the capacity of the recirculated water drive system from Las Tórtolas to the grinding facility. on the existing track. The work consists in replacement of pipes corresponding to Phase I of the existing mineral pipeline and the implementation of a new 28” mineral pipeline.A. In addition. from San Francisco upper sector to Las Tórtolas sector. The term of the contract is until October 31. by means of a new drive system contemplating the reutilization of pipe sections of Phase I to be replaced. New 28” Mineral Pipeline and Reclaimed Water System (Phase II)” [“Construcción de Tuberías Reemplazo Fase 1-A. Minera Escondida Limitada Service of Mechanical Maintenance. Laguna Seca and Área Seca de Hidrometalurgia concentration plants. .118 | TEI&C S. for “Construction of Replacement Pipes Phase 1-A. the Company received the notice to proceed regarding the works related to the stations corresponding to the reclaimed water system for Los Bronces Development Project. During November 2009. 2012. Nuevo Mineroducto 28” y Sistema de Agua Recuperada (Fase II)] for their Los Bronces Development Project.

In May 2010. TECAN. In addition. the Company received the notice to proceed with works of basic and detail engineering of the water and concentrate transportation system of the Cerro Casale Project owned by Barrick Gold and Kinross. Works will be executed in collaboration with Brass.Annual Report | 119 Sociedad Contractual Minera el Morro (Detail Engineering Service). Techint E&C Inc. Techint E&C Inc (TECAN) completed the execution of most of the works under the ongoing contracts. either as a stand-alone company or in partnership with other firms. The delivery and subsequent move of Techint Chile’s office will take place in the first half of 2011. Compañia Minera Casale – Engineering Services for water and concentrate transportation system. As of June 2010. is waiting for the results of some of such bids. Revenue 107 58 07-08 08-09 09-10 . The execution term is 15 months. the Company was awarded “El Morro” project by Sociedad Contractual Minera El Morro (Xstrata Copper). services were completed and the Company received the final acknowledgment of receipt. CANADA During the fiscal year 2009 – 2010. The scope of the contract contemplated detail engineering of Phase I of the desalinated sea water transportation system located in the 3rd Region of Chile. The efforts were focused on developing activities in the Oil Sands and other oil & gas producing areas in Western Canada. During June 2009. two flats (2600 m2) were bought in the region of Las Condes (Santiago) to move Techint Chile’s offices. has bidded C and EPC projects for the execution of pipelines and facilities in these areas belonging to clients such as Enbridge. In December 2009. Suncor and Husky. CNRL.

The contract was signed in March. and works are expected to be completed by fall 2010. Electric Power Research Institute. Snamprogetti.A.120 | TEI&C S. a sum provided for the warranty period. originally structured as a Cost plus Fee. with a total length of 345 km and 36" diameter. Cimarron Engineering and Stantec in the design of a CO2 slurry pipeline to transport sulfur. 4 and 5.Interpipeline Funds. The mechanical completion took place in November 2008. The project includes Spreads 3. The contract. SNC Lavalin. 2010. Business Development/ Engineering CO2 Slurry Pipeline Joint Industry Project -Pathfinders. 2008. (TECAN) completed the execution of most of the works under the ongoing contracts. The main projects developed during this fiscal year were as follows: Pipelines Corridor Pipeline Expansion Project (CPX) and Products Pipeline NPS 20 . through a JV on a 50%/50% basis. The contract total amount is USD 73 million. and Spreads 3 and 4 received Final Acknowledgement as of September 2009. The contract was awarded in July 2007 to the JV formed by TECAN and Robert B. Somerville. During the fiscal year 2009 – 2010. coke.As part of the Pathfinders Group. Techint jointly participates with Enbridge. As of June 30. where the Company has a 50% participating interest. Syncrude. The Spread 5 was substantially completed in October 2009. the Joint Venture is working in the correction of deficiencies and warranty attention in the three spreads. The contracts have been paid in full by Enbridge with the exception of the 10% Holdback and the Warranty Fund.6 million. Somerville. Techint E&C Inc. Final completion notice was received on January 29th. The total contract amount is USD 250. 2010. TECAN associated with Robert B. The works under this contract included a 32 km 42" pipeline and a second one of 42 km 20" pipeline. Canadian Mainline Pipeline Project (Alberta Clipper Project) . limestone and other solid products from the .Enbridge Pipelines Inc. To undertake this project. was replaced for the Spread 5 by a Lump Sum plus Unit Prices contract.

the overall progress for the project was 100% and the contract amount was USD 95. construction and pre-commissioning management. plus a fixed fee of USD 10. 123 kilometer pipeline. the physical progress rate was 94%. Revenue 144 Oil & Gas Gasoline Optimization Program Upgrade Project for Petroleum Company of Trinidad and Tobago (PETROTRIN). 07-08 08-09 96 49 09-10 Pipelines Pipeline Limón – La Garita Refinadora Costarricense de Petroleo S. civil works. outfitting.6 million.9 million. start-up assistance and performance tests for the Gasoline Optimization Program. plus three pumping stations in Costa Rica.A. 2010. CB&I). Lump sum turnkey contract for the design of final engineering. engineering. 2010. final testing and startup of SIEPAC line 1. The amount of the contract for the JV is USD 74. As of June 30. and include several works that are being executed by the Company’s subsidiaries. It comprises the following works: basic and detail engineering. procurement management. CENTRAL AMERICA AND THE CARIBBEAN Sales in this region reached USD 96 million.Annual Report | 121 Fort McMurray area to the Southern markets in a pipeline with dense phase CO2 as the carrier. The purpose of the Electrical . Energy SIEPAC 1 – Empresa Propietaria de la Red S.6 million.A. This project is being developed in Trinidad and Tobago by a joint venture with ABB Lummus Global Overseas Corporation (currently. construction and startup of a 12-inch. the supply of materials and equipment. electromechanical works. Turnkey contract involving the design. commissioning assistance.5 million for procurement management in addition to refundable costs of around USD 232. As of June 30. in which the Company holds a 50% participating interest.

Oil & Gas Third Processing Train of the Sábalo Gas Treatment Plant – Petrobras Bolivia S. 2010.A. Lump sum turnkey subcontract for the design of final engineering. As of June 30. assembly. the Company and Petrobras Bolivia S. commissioning.A. pre-commissioning.A. Contract for design. was founded on July 21.A. civil works. the supply of materials and equipment.122 | TEI&C S. the project reached a 74% progress rate and the total contract amount was USD 139 million. interconnection. the project reached a 72% progress rate and the contract amount was USD 43 million. final testing and startup of SIEPAC II. Panama and Costa Rica (SIEPAC II). start-up and performance test of the Third Processing Train of Sábalo Gas Treatment Plant. SIEPAC Substations – Empresa Propietaria de la Red S. is to take part in construction projects for buildings. 2009. Such contract contemplates the expansion of the plant by means of the construction of a processing plant of gas from well-head. the overall progress for the project was 64% and the contract amount was USD 57 million.A. 2009. SIEPAC II – Consorcio Abengoa. El Salvador and Honduras (SIEPAC I) as well as Nicaragua. roads.Inabensa (APCA). 2010. which connect the 15 substations pertaining to this project. executed a contract for construction. dams. As of June 30. located at Tarija. supply. dwelling houses and transformation industrial plants for any kind of industries and activities. testing and startup of the SIEPAC I and II Projects. BOLIVIA Techint Ingeniería y Construcción Bolivia S. Interconnection System for the countries of Central America (SIEPAC) is to establish an electrical market in the region that will traverse Guatemala. construction. 2010. On December 28. sweetening with amines and . As of June 30. electromechanical works.

The execution term is 36 months. Some works related to construction site facilities and setting out have already been performed. URUGUAY Our historical presence in Uruguay was again ratified during this fiscal year. 1 land outfall of 4 kilometers and civil and architecture works in 7 pumping stations. of road works at Ciudad de la Costa. Sales reached the amount of USD 16 million. Belfi. for an amount of USD 37 million. and the commencement of works is planned for the next fiscal year. A contract was entered into with OSE for USD 20 million for the construction of 34 Km of sanitation networks. exceeding the sales of the previous period. The contract. as well as the construction of Condensate Storage Tanks and other facilities required for the operation of the Plant. During this period. Montec.Annual Report | 123 adjustment of dew point. comprises the construction of 35 kilometers of tubing. The execution term is 18 months and the contract amount is USD 87 million. the Company started the works related to the call for bids “Treatment and final disposal of Maldonado and Punta del Este system effluents” [“Tratamiento y disposición final de efluentes del sistema Maldonado y Punta de Este”]. and so far the project reached a 20% progress rate. Sanitation of Ciudad de la Costa. to be executed by Montec. and 1 off-shore outfall. 56 Km. including the following: Maldonado Effluents. In January 2010. to be executed by Techint. The development of projects within the road and water markets continued. Belfi and Obras Sanitarias del Estado (OSE). of gutters and 32 Km. entered into between the consortium TECHINT. works were commenced under the contract executed with Ministerio de Transporte y Obras Públicas through Corporación 07-08 08-09 09-10 Revenue 13 14 16 . 1 km long. Road 18. Department of Canelones.

Vial de Uruguay. which will connect the Tanajib . remarking the elaboration of around 60. This project consists in an 18” pipeline.0 million. in addition to infrastructure works at Planta del Chileno. UGD Maldonado. Av. plus foundation works. Ferreira Aldunate.Punta del Este. Ferreira Aldunate (to the North of downtown Maldonado) which included. This contract was executed with Municipalidad de Maldonado for USD 7 million. Works executed include: sanitation of Punta del Este and Maldonado. awarded last year. including placement of 200 m3 of reinforced concrete and construction of 24 prefabricated beams. CVU. started in August 2009 and have reached a 70% progress rate.000 tons of asphalt mixtures for which around 70. removal and replacement of pavement and network maintenance in both cities. Bridge over José Ignacio Stream. Works. hydraulic infrastructure and lighting works. Works consisted in the construction of a double paved way and surrounding streets on the current Av.000 tons of rock must be ground. For this contractual phase. Works consist in the structural reinforcement of 22 km of road in the Department of Treinta y Tres. In May 2010. for an amount of USD 8 million. in addition to road works. Sanitation of Maldonado . we started the works under the contract with JGC at Tanajib – Manifa. the works under this contract were completed. A bridge is being built over José Ignacio Stream. Department of Maldonado.124 | TEI&C S. upon agreement on a third contractual phase for USD 5.A.Manifa Water Pipeline – JGC Corporation. verge reconstruction and signaling. Works were resumed for OSE. During this period. about 60 km long. SAUDI ARABIA Pipelines Tanajib . under a contract with Corporación Vial del Uruguay for an amount of USD 2 million. the works have reached an 18% progress rate.

Assistance to complete basic and detail engineering works. • Petrotrin Alky Acid Project (Trinidad & Tobago). • TGP . Conceptual. Conceptual. Basic engineering and project feasibility study.NGL Fourth Pump Expansion (Peru). Technical bidding terms for EPC contract.Annual Report | 125 water treatment plant and the Central Processing Facilities. was around 1. detail and basic engineering. Construction engineering works of piping installations. Completion of detail engineering. Technical bidding terms for EPC contract. • PLUSPETROL – Camisea 2nd Expansion (Peru). • MINERA ESPERANZA – Esperanza Pipelines (Chile). Construction engineering and assistance for works. Conceptual and basic engineering. including detail engineering of works for the deviation of San Juan River. It also includes a surface facility with a manual cut-off valve halfway along the course. as well as procurement. Procurement management of equipment and material. measured in man-hours. work schedule and control budget. Procurement management of equipment and materials. plus the preparation of bidding conditions for the extension of Malvinas and Pisco plants.Chiquintirca Gas Compression Plant (Peru). Completion of basic engineering and detail engineering. • Perú LNG (Perú). including management of purchase orders placed by the client. Gas separation and fractioning plants of Camisea.Camisea Loops de la Selva (Peru). Completion of basic engineering. • Esso Clean Fuels Project (Campana). Detail engineering and procurement. basic and detail engineering. • Pascua Lama Project . work schedule and investment estimate. Detail engineering and preparation of the bidding conditions for an EPC contract. • Atucha II Nuclear Plant (Argentina). Detail engineering. Detail engineering. Basic engineering and project feasibility study. • TGP . • TGN-TGS Loops (Argentina). • Pirquitas Mine Project (Jujuy). detail engineering and procurement management. among which the following are highlighted: • Punta Negra Hydroelectric Station (San Juan).8 million. including management of purchase orders. The main engineering works performed are related to projects under development and others already completed. . • TGP . basic and detail engineering and assistance for works.Barrick Gold (Argentina-Chile).NG Loop de la Costa Expansion (Peru). the level of activity developed. Conceptual and extended basic engineering. • El Morro Water Pipeline (Chile). Detail engineering and procurement. The contract total amount is USD 48 million with a twoyear term for execution. Detail engineering for the expansion of the gas transportation pipeline network • Camisea Expansion (Peru). Conceptual. ENGINEERING During this fiscal year. • YPF – Sulfur Reduction Phase 1 (Argentina). • TGP . Procurement management of equipment and material.

126 | TEI&C S. . before they enter the CND for subsequent calibration of the latter.BAR CUTTING 2 (Campana . Installation of new bar REVAMPING (Campana -Argentina).A. • PETROBRAS – COMPERJ (Brazil). one loading device and one walking beam each one. consequently.FAT3 .Mexico). INDUCTION FURNACE • Cerro Casale (Chile). the Company put the emphasis on the specialization of procurement headcount and the increased use of IT tools.Argentina). cutting lines of 2.LC2F-PEMA. In this respect. organizing the structure based on demand. with a focus on the following aspects of procurement management: (i) Increasing the contribution of value by focusing the purchasing strategy on the critical success factors.LC2F (Continuous cold-strip mill) . Engineering.BAR LOADING TABLE FOR HOT MILL #2 (Canada). Insertion in 3 existing ways of tilting rotators to perform a 90° turn of master tubes.Los Bronces.RNEST (Brazil).Argentina). Installation of all cold-cycle equipment for the new plant of TENARIS TAMSA. • TENARIS . Installation of new refrigerated pipelines for primary extraction of dust in furnace 5 and non-refrigerated pipelines for secondary extraction of furnace 4 – Steel-making area. Detail engineering for a slurry line for Barrick mining company. Detail engineering for transmission lines and electrical sub-stations. • EPR – Siepac Bahías & Líneas (Mexico). PROCUREMENT The main works performed regarding supplies are associated to the projects under development stated in the preceding section. (ii) Encouraging the specialization of the sector and. productivity and strategic factors. seeking to optimize costs. • TENARIS . Detail engineering for a new coking unit at the Petrochemical Complex of Río de Janeiro. • PETROBRAS . management total cost.AJUS 1 / 2 / 3 – Non-Destructive Control Equipment (CND) ENTRANCE (Campana . Detail engineering for five power transmission lines and two transformation sub-stations.FAT3 (Veracruz .Argentina). Procurement contributes to improve the Company’s competitiveness by means of a comprehensive revision of the respective purchasing strategies and of processes and procedures. Detail engineering for a storage tanks’ yard. • TENARIS .Mexico). and the design of a new reel carrier.CASING THERMAL TREATMENT (Veracruz . reliability and transparency in management. The project addressed the replacement of 2 induction furnaces. Pipelines and Stations (Chile): Two contracts. • TENARIS . including detail engineering completion.8 tons for L2C2 consisting of 1 roller. Detail engineering for transmission lines and electrical sub-stations.LACO 2 HOT LAMINATION . • TENARIS . Installation of a new bar loading line. • ANGLOAMERICAN / BECHTEL . • CFE – SE 1125 Distribution Second Phase (Mexico). • TENARIS . Installation of seamless tubing thermal treatment up to 7” . • CFE – SLT 1119 Southeast Transmission and Transformation 1st Phase (Mexico).STEEL-MAKING AREA – FUME EXTRACTION (Campana . • TENARIS .

assistance and allocation of equipment to the different projects for use. in addition to the administration. monitoring their needs throughout the development of projects. continued to provide assistance to Warehouse and General Services –areas that centralize the Company’s logistics. the Company will keep on working on the abovementioned actions which will impact on the management indicators defined. TEPAM. The investment value in machinery. and subsequently. In the area of building infrastructure. with the purpose of setting the aging of such machinery in 5 years. we acquired a location in La Negra. maintenance. TECHINT EQUIPMENT DIVISION (TEPAM) During this fiscal year. The program for the total renewal of TEPAM equipment in 10 years continues. this will help reduce costs for repairs and obtain a competitive improvement.Antofagasta (Chile) and we entered into a rental agreement in Chincha Alta (Peru) in order to comply with the requests of our internal clients.Annual Report | 127 (iii) Boosting the use of IT supporting systems for bids and suppliers’ management. with the objective of supporting the beginning of works upon commissioning. vehicles and tools for the 2009-2010 fiscal year was USD 21.8 million. repair. . During the next fiscal year.

A.TEI&C S. .