Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — Gas Transporter of the South — Q1 2019 Earnings Presentation
42 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, May 23, 2019
Slide 1: Financial Statements as of March 31, 2019
TRANSPORTADORA DE GAS DEL SUR S.A. FINANCIAL STATEMENTS AS OF MARCH 31, 2019 INDEX 01. ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2019 02. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Statements of comprehensive income Statements of fi
Slide 2: Activities of the Company in 1Q2019 and 1Q2018
Activities of the Company in 1Q2019 and 1Q2018 Revenues Revenues for 1Q2019 increased by Ps. 1,389.1 million from the same period last year. This increase is mainly due to the increase in sales revenues of the Natural Gas Transportation and Liquids Production and Commercialization business segments.
Slide 3: Plan Hogar, Other Services and Vaca Muerta pipeline
On January 28, 2019, the Secretariat of Energy issued Resolution No. 15/2019, which modifies the price of products marketed under Plan Hogar program. As of February 1, 2019, prices rose to Ps. 9,154 and Ps. 9,042 per ton of butane and propane (this at the date of the resolution), respectively, while
Slide 4: Other operating results
Other operating Results The other operating results experienced a negative variation of Ps. 21.4 million mainly as a result of the higher charge for provisions for contingencies. Net financial results The negative financial results for 1Q2019 had a negative effect of Ps. 468.3 million compared to th
Slide 5: Net financial results and exchange rate impact
This negative variation is mainly due to the impact of the foreign exchange rate loss, net for Ps. 463.0 million as a result of the depreciation of the Argentine peso with respect to the US dollar occurred in 1Q2019. The selling exchange rate for the peso ended on March 31, 2019 in a value of Ps. 43
Slide 6: Net change in cash and cash equivalents
The positive net change in cash and cash equivalents for 1Q2019 was Ps. 3,018.1 million lower than that generated in the same period of 2018. Cash flow generated by operations showed a decrease of Ps. 19.7 million compared to 1Q2018, mainly derived from the higher payment of income tax. This effect
Slide 7: Statement of financial position summary
(in thousands of Argentine pesos) 3/31/2019 12/31/2018 Non-current assets 46,681,798 42,983,040 Current assets 25,787,866 25,673,985. Total assets 72,469,664 68,657,025 Shareholders” equity 36,678,972 34,299,454 Minority interest 15 ii Total shareholders equity 36,678,987 34,299 465 Non-current liab
Slide 8: Consolidated Cash flow summary
5. Consolidated Cash flow summary Summary of the consolidated cash flow information for 1Q2019 and 1Q2018:
Slide 9: Statistical Data (Physical units)
6. Statystical Data (Physical units)
Slide 10: Physical units: transportation and NGL production
Three-month period ended March 31, 2019 2018 2017 2016 2015 Gas Transportation Average firm contracted capacity (in billions of cubic feet per day ("Bcf/d")) 2.91 2.87 2.78 2.83 2.83 Average daily deliveries (in Bcf/d) 2.18 2.45 2.05 2.14 1.97 NGL production and commercialization © Production Ethane
Slide 11: Gregorio Werthein, Director acting as chairman
Gregorio Werthein Director acting as chairman
Slide 12: Gregorio Werthein, Director acting as chairman
Gregorio Werthein Director acting as chairman
Slide 13: Gregorio Werthein, Director acting as chairman
Gregorio Werthein Director acting as chairman
Slide 14: Gregorio Werthein, Director acting as chairman
Gregorio Werthein Director acting as chairman
Slide 15: Segment information, three months ended March 31, 2019
Three-month period ended March 31, 2019 Production and Natural Gas Commercialization Other Transportation of Liquids Services Telecommunications Eliminations Total Revenues 3,965,609 4,820,518 342,865 50,793 = 9,179,785 Intercompany revenues from sales. 108,130 = = = (408,130) = Cost of sales (1,445
Slide 16: Revenue recognition timing, March 31, 2019
Three-month period ended March 31, 2019 Production and Natural gas commercialization transportation of liquids Other services _Telecommunications Total Timing of revenue recognition: Over the time 3,965,609 203,070 342,865 50,793 4,562,337 Ata point in time = 4,617 448 = = 4,617 448 Total 3,965,609
Slide 17: Segment information, three months ended March 31, 2018
Three-month period ended March 31, 2018 Production and Natural Gas = Commercialization Other Transportation of Liquids Services Telecommunications Eliminations _Total Revenues, 3,443,769 3,903,461 412,389 31,040 = 7,790,659 Intercompany revenues from sales 141,608 = = = (441,608) = Cost of sales (2,
Slide 18: Revenue recognition timing, March 31, 2018
Three-month period ended March 31, 2018 Production and Natural gas |= Commerc tion transportation of liquids Other services _Telecommunications Total Timing of revenue recognition: Over the time 3,443,769 184,207 412,389 31,040 4,071,405 Ata point in time = 3,719,254 = = 3,719,254 Total 3,443,769 3,
Slide 19: Other receivables
03/31/2019 12/31/2018 Current Non Current Current Non Current VAT credit balance 668,030 = 332,818 = Other tax receivables 1,334 1690 11,071 2,266, Prepaid expenses 36,572 = 52,932 = Advances to suppliers 1,699,287 = 2,051,626 = Subsidies receivables 113,727 = 324,610 = Guaranteed deposits 1,492 = 1
Slide 20: Allowance for doubtful accounts
The movement of the allowance for doubtful accounts is as follows:
Slide 21: Allowance movements
For doubtful accounts Balances as of 12/31/2017 Additions Applications Decreases Balances as of 03/31/2018 Additions 146,885 Applications Decreases Balances as of 12/31/2018 146,885 Inflation adjustment restatement (44,364) Additions Applications Decreases Balances as of 03/31/2019 132,521 { The tot
Slide 22: Cash and cash equivalents
03/31/2019 12/31/2018 Cash and banks 6,486,536 6,610,446 UT Cash and banks 153 170 Fixed terms deposits 10,917,145 676,238 Mutual funds 1,239,071 2,379,493 Interest-bearing accounts 8,704 8,766,689 UT Mutual funds 14,366 15,922 Total 18,665,975 18,448,958
Slide 23: Contract liabilities by segment
03/31/2019 12/31/2018 Current Non Current Current Non Current Natural Gas Transportation 75,426 1,526,492 75,346 1,328,798 Production and Commercialization of Liquids 19,936 275,245 28,279 282,723 Other services 2,236 16,089 2,237 16,760 UT 34,068 = 37,761 = Total 131,666 _ 1,817,826 143,623 1,628,2
Slide 24: Other payables
03/31/2019 12/31/2018 Current Non Current Current Non Current UT Other Mabilities 164,601 = 81,601 = Provision for compensation for the Board of Directors and Supervisory Committee 7,364 7 5.995 7 Others 1,673 = 1,822 = Total 173,638 = 89,418 =
Slide 25: Tax payables
03/31/2019 12/31/2018 Current Non Current Current Non Current Withholdings for income tax made to third parties 103,215 = 122,613 = Health and safety tax 9,684 = 9,743 = Tax on exports 40,921 = Turnover Tax 72,381 = 69,512 = UT Others 2,709 = 3,050 = Others 4,533 = 19,223 = Total 233,443 = 224,141 =
Slide 26: Cost of sales
For the three-month period ended March, 31 2019 2018 Inventories at the beginning of the year 399,324 203,661 Purchases 2,370,058 1,963,258 Operating costs (Note9j.) 1,910,501 1,681,616 Inventories at the end of the period (240,755) (283,946) Total 4,439,128 3,564,589
Slide 27: Operating expenses
2019 2018 Operating expenses Non Regulated Regulated + Administrativ Selling Financial Accounts Total Activities Activities eexpenses —_ expenses expenses Total Salaries, wages and other compensations 486,309 251,645 125,609 82,078 26,977 - 438,799 Social security taxes 115,072 50,950 27,013 29,751
Slide 28: Other operating results, net
l) Other operating results, net
Slide 29: Other financial assets at amortized cost
m) Other financial assets at amortized cost
Slide 30: Payroll and social security taxes payable
03/31/2019 12/31/2018 Current Non Current Current Non Current Vacation benefit payable 159,841 = 189,191 = Annual bonus payable 33,613 = = = Gratifications payable 94,231 = 147,820 = Social security taxes payable 81,993 = 74,684 = UT 12,197 = 13,520 = Total 381,875 = 425,215 =
Slide 31: Joint arrangements
11. JOINT ARRANGEMENTS The breakdown of the amounts included in the statements of financial position related to the Company's participation in the UT as of March 31, 2019 and December 31, 2018, and its results for the three-month periods as of March 31, 2019 and 2018 is the following:
Slide 32: Share of profit from associates
12. SHARE OF PROFIT FROM ASSOCIATES
Slide 33: Property, plant and equipment
03/31/2019 12/31/2018 Cost Depreciation Accumulated at Accumulated at Beginning End of the beginning at the end Net Net Account of the year Additions Retirements Transfers the period ~— ofthe year__—-Retirements For the period Rate % —of the period ~— book value —_—book value Pipelines 44,254,072 23
Slide 34: Loans denominated in US dollars
Loans are totally denominated in US dollars. The activity of the loans as of March 31, 2019 and 2018 is the following:
Slide 35: Financial leasing maturities
The following are the maturities of the financial leasing in force as of March 31, 2019 (not including issuing costs):
Slide 36: Provisions for legal claims
For legal claims and others Balances as of 12/31/2017 321,323 Inflation adjustment restatement (20,633) Additions 25,384 | Uses (89) Decreases (413) “ Balances as of 03/31/2018 325,572 Inflation adjustment restatement (133,806) Additions 220,744 * Uses (999) Decreases (112) * Balances as of 12/31/20
Slide 37: Financial assets and liabilities, March 31, 2019
March 31, 2019 Financial assets at Financial assets at fair value amortized cost Total CURRENT ASSETS: Trade receivables = 3,731,636 3,731,636 Other receivables: = 348,941 348,941 Derivative financial instruments 112,791 = 112,791 Other financial assets at amortized cost = 5,230 5,230 Cash and cash
Slide 38: Fair value measurement hierarchy and estimates
1.2 Fair value measurement hierarchy and estimates According to IFRS 13, the fair value hierarchy introduces three levels of inputs based on the lowest level of input significant to the overall fair value. These levels are: · Level 1: includes financial assets and liabilities whose fair values are e
Slide 39: Assets and liabilities in foreign currency
03/31/2019 12/31/2018 Foreign currency Amount Foreign currency Amount and amount —_ Exchange in local and amount in local (in thousands) rate currency (in thousands) currency CURRENT ASSETS Cash and cash equivalent US$ 406,637. 43.150 17,546,387 US$ 361,017 15,005,536 Financial derivative instrument
Slide 40: Related party transactions, March 31, 2019
The detail of significant transactions with related parties for the three-month periods ended March 31, 2019 and 2018 is as follows: Three-month period ended March 31, 2019:
Slide 41: Three-month period ended March 31, 2018
Three-month period ended March 31, 2018:
Slide 42: Related party transactions detail
Financial Revenues Costs results Company Production and Gas Compensation Revenues for Natural Gas commercialization Other purchase for technical administrative Interest Transportation of liquids services _andothers _ assistance services expense Controlling shareholder: CIESA = = = = = 49 = ‘Associat
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