Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — Gas Transporter of the South — H1 2021 Earnings Presentation
46 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Aug 19, 2021
Slide 1: Al 30 de junio de 2021
AL 30 DE JUNIO DE 2021
Slide 2: Financial Statements as of June 30, 2021 - Index
TRANSPORTADORA DE GAS DEL SUR S.A. FINANCIAL STATEMENTS AS OF JUNE 30, 2021 INDEX 01. ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2021 02. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Statements of comprehensive income Statements of financ
Slide 3: Activities of the Company in 1S2021 and 1S2020
Activities of the Company in 1S2021 and 1S2020 Revenues Revenues for 1S2021 increased Ps. 1,002 million compared to 1S2020, mainly as a consequence of the increase in revenues from the Liquids Production and Commercialization and Other services segments, partially offset by the decrease in revenues
Slide 4: Other Services
Other Services Revenues derived from the Other Services segment increased Ps. 452 million in 1S2021 compared to the same period of 2020. This increase is due to higher revenues corresponding to: (i) transportation and conditioning services for natural gas in Vaca Muerta; (ii) compression and treatme
Slide 5: Cost of sales and expenses breakdown
Natural Gas Purchase 8,398 40% 7,694 38% 704 9% Labor costs 2,690 13% 2,824 14% (234) (5%) Taxes, fees and contributions 2,098 10% 2,170 10% (72) (3%) Repair and maintenance 1,418 7% 1,411 7% 7 0% Other fees and third party services 1,822 9% 1,887 9% (65) (3%) Depreciations 3,931 19% 3,727 18% 204 5
Slide 6: Financial results and income tax
The positive variation is mainly due to the lower net foreign exchange, generated as a consequence of the reduction in the net liability position during 1S2021 and the higher gain recorded by the gain on net monetary position due to the increase in the net monetary liability position. These effects
Slide 7: Net decrease in cash and cash equivalents
During 1S2021, the net decrease in cash and cash equivalents was Ps. 2,805 million. Regarding the cash flow used in financing activities, it decreased by Ps. 5,261 million as a result of: (i) payments made in 2020 for the acquisition of treasury shares, (ii) the lower cancellation of financial debts
Slide 8: 2Q2021 comprehensive income
During 2Q2021, the Company obtained comprehensive income of Ps. 3,391 million, compared to comprehensive income of Ps. 2,612 million obtained in the same period of 2020. Total revenues for 2Q2021 increased Ps. 1,771 million compared to the same period of the previous year.
Slide 9: 2Q2021 Other Services and costs
The Other Services segment reported an increase of Ps. 192 million, mainly explained by higher natural gas transportation and conditioning services in Vaca Muerta and natural gas treatment and compression services. These effects were partially offset by lower natural gas pipeline construction servic
Slide 10: 2Q2021 operating and financial results
Other negative operating results in 2Q2021 recorded a positive variation of Ps. 58 million. In 2Q2021, financial results suffered a positive variation of Ps. 3,671 million, compared to those registered in the 2020 period. This variation is mainly due to: (i) the effect of the foreign exchange rate,
Slide 11: Consolidated Comprehensive Income Summary
5. Consolidated Comprehensive Income Summary Summary of the consolidated comprehensive income information for the six-month periods ended June 30, 2021, 2020, 2019 and 2018:
Slide 12: Consolidated Cash Flow Summary
6. Consolidated Cash Flow Summary Summary of the consolidated cash flow information for the six-month periods ended June 30, 2021, 2020, 2019 and 2018:
Slide 13: Cash flow summary (thousands of Argentine Pesos)
(in thousands of Argentine Pesos) ‘Cash flows provided by operating activities 13,511,336 17,475,959 _10,788,161 8,520,421 Cash flows used in investing activities (45,992,892) (10,997,317) (28,934,348) (15,636,576) Cash flows used in financing activities (623,896) (5,584,866) (17,673,597) 18,680,293
Slide 14: Operating data: gas transportation and NGL production
Second quarter ended June 3( 2021 2017 2021 2020 2019 2018 2017 Gas Transportation Average frm contracted capaaty Gn billions of cubic feet per day ("Bef/d")) 2.92 2.91 2.91 2.87 2.78 2.92 2.92 2.92 2.87 2.78 Average daly delvenes (in BA/d) 2.27 2.14 2.28 2.39 2.29 2.47 2.21 2.41 2.66 2.53 NGL produ
Slide 15: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 16: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 17: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 18: Luis Alberto Fallo
Luis Alberto Fallo Chairman of the Board of Directors
Slide 19: Subsidiary control as of June 30, 2021
Detailed data reflecting subsidiary control as of June 30, 2021 is as follows: Company Incorporation country Closing date Main activity Telcosur Argentina December 31 Telecommunication Services CTG TGSLatam Argentina Bolivia December 31 December 31 Electrical power related services Hydrocarbons and
Slide 20: Segment information, six months ended June 30, 2021
Six-month period ended June 30, 2021. Production and NaturalGas — Commercialization Other ‘Transportation of Liquids Services Telecommunications Eliminations Total Revenues 10,994,321, 22,039,550 3,132,234 191,549 = 36,357,654 Intercompany revenues from sales 458,568 = - = (458,568) = Cost of sales
Slide 21: Revenues by market and opportunity
The breakdown of revenues by market and opportunity for the six-month periods ended June 30, 2021 and 2020 is as follows:
Slide 22: Revenue by destination market and timing, 2021
ended June 30, 2021 and Palen Commercialization Other Services Telecommunications Total Per destination market External Market = 3345010 = = 3345.00 Local Market T0554 531 12,694,540 5 133,234 191549 27,012,644 Total 70,994,321 72,039,550 3,132,234 191,549 36,357,654 Timing of revenue recognition: O
Slide 23: Revenue by destination market and timing, 2020
“month period ended June 30, 2020 Production and Tear Gas, Commercialization Other Services Telecommunications Total of Liquids Per destination market External market 5540787 Z 540,787 Local market 16,097,475 10,815,356 _2572,299 300,032 29,715,162 Total 16,027,475 16,456,143 2,572,299 300,032 35,35
Slide 24: Movement of allowance for doubtful accounts
The movement of the allowance for doubtful accounts is as follows:
Slide 25: Allowance for doubtful accounts movement table
Balances as of 12/31/2019 = Inflation adjustment restatement (4,003) additions © 292,275 Applications : Decreases ‘Balances as of 06/30/2020 278.272 Inflation adjustment restatement (41,324) Additions Applications = Decreases “ (169,232) Balances as of 12/31/2020 67,716 Inflation adjustment restatem
Slide 26: Movement of allowance for doubtful accounts
The movement of the allowance for doubtful accounts is as follows:
Slide 27: Allowance for doubtful accounts table
For doubtful accounts Balances as of 12/31/2019 230,092 Inflation adjustment restatement (27,318) Additions = Applications = Decreases = Balances as of 06/30/2020 202,774 Inflation adjustment restatement (36,813) Additions = Applications = Decreases = Balances as of 12/31/2020 165,961 Inflation adju
Slide 28: Operating expenses
2021 2020 Operating expenses Regulated Non-regulated Administrative _Selling Financial Accounts Total activities activities expenses expenses expenses Total Salaries, wages and other compensations 2,187,291 950,926 729,680 388,652 118,033 - 2,270,372 Social security taxes 503,586 222,368 166,495 84,
Slide 29: Other operating results, net
l) Other operating results, net
Slide 30: Description of securities
06/30/2021 12/31/2020 Description of seaurities Face Amount Cost Book Book Name and issuer value value value Transporte y Servicios de Gas en Uruguay S.A. Ps.Uru.1 196,000 148 9,502 10,695 Emprendimientos de Gas del Sur S.A. (in liquidation) $1 116,130 1,649 532 14 Gas Link S.A. $1 502,962 6,997 151
Slide 31: Share of gain from associates
12. SHARE OF GAIN FROM ASSOCIATES
Slide 32: Property, plant and equipment: cost and depreciation
06/30/2021 12/31/2020 Cost Depreciations and Impairment ‘Accumulated at ‘Accumulated at Beginning End of the beginning at the end Net book Net book ‘Account of the year Additions Retirements. Transfers the period of the year Retirements. Fortheperiod Rate % of the period value value Pipelines 112,26
Slide 33: Loans
14. LOANS Short-term and long-term loans as of June 30, 2021 and December 31, 2020 comprise the following:
Slide 34: Loans denominated in US dollars
Loans, except bank overdraft, are totally denominated in US dollars. During the six months ended June 30, 2021 and 2020, through various transactions, the Company acquired 2018 Notes for a nominal value of US$ 2,030,000 and US$ 17,584,000 for which it paid Ps. 323,896 and Ps. 1,252,181, respectively
Slide 35: Maturities of financial debt
The maturities of current and non-current financial debt, net of issuance costs, as of June 30, 2021 are as follows:
Slide 36: Income tax expense at statutory rate
Income tax expense computed at the statutory tax rate on pre-tax income differs from the income tax expense for the six-month periods ended June 30, 2021 and 2020 as follows:
Slide 37: Income tax reconciliation
06/30/2021 _ 06/30/2020 Nat income before income tax 14,516,502 11,344,061 Current tax rate 35% 30% Net loss before income tax for the period at the tax rate 5,079,397) (3,403,218) Tax effects for ~ Restatement by inflation PEPER 7,153,300 = Variation in tax loss carryforward 691,599 = ~Exempt incom
Slide 38: Financial instruments by category and hierarchy
17. FINANCIAL INSTRUMENTS BY CATEGORY AND HIERARCHY 17.1 Financial instrument categories There have been no significant changes regarding the accounting policies for the categorization of financial instruments to the policies disclosed in the financial statements as of December 31, 2020. The categor
Slide 39: Financial assets and liabilities, June 30, 2021
June 30, 2021 Finandal assets at value Total CURRENT ASSETS Trade receivables = 7529,830 __7,629/830 ‘Other receivables: = 116,722 1,116,722 Other financial assets at amortized cost E 23,663 23,663 Other financial assets at fair value through profit or loss. 5,586,438 = 5,586,438 Cash and cash equiv
Slide 40: 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 41: Assets and liabilities in foreign currency
06/30/2021 12/31/2020 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 equivalents uss 1,359 95.520 (1) 129,812 us$ 45,454 4,778,751 Other financial assets at amortized co
Slide 42: Related party transactions
As of June 30, 2021, tgs holds Ps. 622,256 corresponding to dollar-linked notes issued by CT Barragán S.A. that accrue an annual rate of 4% above the exchange rate published in Communication “A” 3500 of the BCRA. The bullet principal is paid back on June 4, 2023. The book value of the notes is discl
Slide 43: Six-month period ended June 30, 2020
Six-month period ended June 30, 2020:
Slide 44: Associates and joint agreement
23. ASSOCIATES AND JOINT AGREEMENT Associates with significant influence Link: Link was created in February 2001, with the purpose of the operation of a natural gas transportation system, which links TGS’s natural gas transportation system with the Cruz del Sur S.A. pipeline. The connection pipeline
Slide 45: Report on review of interim financial information
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION To the Shareholders, President and Directors of Transportadora de Gas del Sur S.A. Legal address: Don Bosco 3672, 5 th Floor Ciudad Autónoma de Buenos Aires CUIT N° 30-65786206-8 I. Report on the Financial Statements Introduction 1. We have reviewed
Slide 46: Auditors' review report conclusion
English translation of the original report issued in Spanish for publication in Argentina on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. C
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