Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — Gas Transporter of the South — 9M2018 Earnings Presentation
48 slides from Transportadora De Gas Del Sur Sa Class B's earnings presentation, Nov 23, 2018
Slide 1: Business segment information for 9M2018 and 9M2017
The following table includes the business segment information for 9M2018 and 9M2017:
Slide 2: Activities of the Company during 9M2018 and 9M2017
Activities of the Company during 9M2018 and 9M2017 Net revenues Net revenues for 9M2018 increased by Ps. 11,310.8 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 busin
Slide 3: Other operating results
Other operating results The other operating results recorded a negative variation of Ps. 554.1 million mainly explained by the Ps. 553.4 million payment in May 2018 as a consequence of the adverse ruling issued by the International Court of Arbitration (“ICC”) from the arbitration process before the
Slide 4: Net financial results and foreign exchange impact
This negative variation is mainly due to the impact of the foreign exchange rate loss, net for Ps. 4,846.8 million as a result of the depreciation of the Argentine peso with respect to the US dollar occurred in 9M2018, mainly in the financial indebtedness. The selling exchange rate for the peso ende
Slide 5: Net variation in cash and cash equivalents
The net positive variation in cash and cash equivalents in 9M2018 was Ps. 4,467.9 million, Ps. 3,846.7 million higher than the cash and cash equivalents variation reported in 9M2017. The increase in the net cash flow was due to a higher cash flow provided by operations for Ps. 4,613.3 million, prima
Slide 6: 3Q2018 comprehensive income
For the 3Q2018, TGS posted total comprehensive income of Ps. 784.4 million, compared to Ps. 518.1 million recorded in the 3Q2017. Total net revenues for 3Q2018 increased by Ps. 5,042.0 million from 3Q2017. Net revenues from Natural Gas Transportation segment during the 3Q2018 increased by Ps. 2,319.
Slide 7: Consolidated Comprehensive Income Summary
5. Consolidated Comprehensive Income Summary Summary of the consolidated comprehensive income information for the nine-month periods ended September 30, 2018, 2017, 2016, 2015 and 2014:
Slide 8: Consolidated Cash Flows Summary
6. Consolidated Cash Flows Summary Summary of the consolidated cash flows information for the nine-month periods ended September 30, 2018, 2017, 2016, 2015 and 2014:
Slide 9: Statistical Data (Physical Units)
7. Statistical Data (Physical Units)
Slide 10: Statistical data: nine-month and third quarter
Nine-month period ended September 30, Third quarter ended September 30, 2018 2017 2016 2015 2014 2018 2017 2016 2015 2018 Gas Transportation “Average firmcontracted capacity Gn billons of cubic feet per day(‘Bcf'd")) 2-88 278 278 285 285 290 279 27 287 28 Average daily deliveries Gn Bcf'é) 257 245 2
Slide 11: Other Information and Outlook
9. Other Information TGS share market value in Buenos Aires Stock Exchange at closing of last business day (in Argentine pesos per share) January 90.05 32.40 17.00 7.60 4.13 February 83.50 36.80 21.00 9.10 4.20 March 81.75 43.90 17.30 12.70 4.58 April 78.05 46.30 18.00 12.00 5.14 May 84.30 53.30 18.
Slide 12: Condensed Interim Consolidated Statements of Financial Position
Luis Alberto Fallo Vice - Chairman of the Board of Directors English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION AS OF SEPTEMBER 30, 2018 AND DECEMBER 31, 2017 (Stated
Slide 13: Condensed Interim Consolidated Statements of Changes in Equity
Luis Alberto Fallo Vice - Chairman of the Board of Directors English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2018 AND
Slide 14: Condensed Interim Consolidated Statements of Cash Flows
Luis Alberto Fallo Vice - Chairman of the Board of Directors English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2018 AND 2017 (S
Slide 15: Notes: General Information, Business Overview
Luis Alberto Fallo Vice - Chairman of the Board of Directors English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (
Slide 16: Revenue recognition policies (IFRS 15)
In addition, as of September 30, 2018, the Company has recognized Contract Assets for unbilled work in progress by Ps. 100,615. In Note 8 – Business Segment information, the Company includes disaggregated revenue information from contract with customers into categories that depict the nature, amount
Slide 17: Derivative financial instruments
Derivative financial instruments Initial recognition and subsequent measurement Derivative financial instruments are recognized at their fair value at inception and subsequently measured at their fair value and disclosed as assets or liabilities depending if it is gain or loss. Derivative financial
Slide 18: Business segment information, nine months 2018
Nine-month period ended September 30,2018 Other Services Total Revenues fom sales LLO7L816 91.222 = 19.41.7901 Tntercompany revenues fom sales 354718 - - = ‘G5aT18) = Costof sales (940.609) (5885569) (633270) 354718 Administrative expenses (38678, (41,066) 7043) = Selling expenses (TLD, 237579) (685
Slide 19: Revenue by geographical market and timing
Nine-month period ended S eptember 30, 2018 Production and commercialization of Natural gas transportation liquids Other services _Telecommunications Total Primary geographical market: External market : 3,042,767 - - 3,042,767 Domestic market 3,993,561 6,213,335 1,071,816 91,222 16,369,934 Total 8,9
Slide 20: Net revenues by type of service
Net Revenues as of September 30, 2018 and 2017 according to the type of service in each business segment: a) Natural gas transportation:
Slide 21: Summary of significant financial position and income items
9. SUMMARY OF SIGNIFICANT STATEMENT OF FINANCIAL POSITION AND STATEMENT OF COMPREHENSIVE INCOME ITEMS a) Other receivables
Slide 22: Other receivables
09/30/2018 12/31/2017 Current Non Current Current ‘Non Current VAT credit balance : - 105,367 - Other tax receivables 10,785 1781 7,229 2,564 Prepaid expenses 58,647 : 21,783 - Advances to suppliers 1,478,616 : 375,505 : Subsidies receivables 232,977 : 173,311 : Others UT receivables 26,936 : 2,247
Slide 23: Allowance for doubtful accounts
The movement of the allowance for doubtful accounts is as follows: English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMA
Slide 24: Allowance balances
Balances as of 12/31/2016 Balances a5 of 09/30/2018 The pial amount is recorded in Selling Expens=
Slide 25: Cash and cash equivalents
09/30/2018 12/31/2017 Cash and banks 4,401,927 664,910 UT Cash and banks 172 a7 Time deposits 490,135 : Mutual funds 2,060,150 1,263,969 Bank account 3,658,223 659,448 UT Mutual funds 11,763 64,005 Total 12,622,370 2,652,803
Slide 26: Advances from customers
e) Advances from customers (1)
Slide 27: Other payables
(1) For additional information, see Note 4 – “IFRS 15, revenue recognition.” English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATI
Slide 28: Other payables detail
09/30/2018 12/31/2017 Current Non Current Current ‘Non Current UT Other payables 24,457 - - - Compensation to the Board of Directors and Supervisory Committee 3771 - - - Justice Fee payable 31,882 : 31,882 : Others 2.974 : 1,665 : Total 63,084 = 33,547 =
Slide 29: Trade payables
09/30/2018 12/31/2017 Current Non Current Current ‘Non Current Suppliers 1,306,338 : 1,332,298 : UT Suppliers 87,999 : 7,610 : Customers (credit balances) 9.234 : 10,736 : Related companies (Note 22) 276,574 : 102,659 : Total 1,680,145 = 1,453,303 =
Slide 30: Expenses by nature
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3) ________
Slide 31: Net financial results
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3, unless o
Slide 32: Other operating results, net
l) Other operating results, net
Slide 33: Joint arrangements
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3, unless o
Slide 34: Share of profit from associates
12. SHARE OF PROFIT FROM ASSOCIATES
Slide 35: Property, plant and equipment
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3, unless otherwise stated) _
Slide 36: Loans and issuance of notes
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3, unless o
Slide 37: Loan activity
Loans are totally denominated in US dollars. The activity of the loans as of September 30, 2018 and 2017 is the following:
Slide 38: Financial leasing maturities
The following are the maturities of the financial leasing in force as of September 30, 2018 (not including issuing costs):
Slide 39: Income tax
For the three-month period _For the nine-month period ended S eptember 30, ended S eptember 30, 2018 2017 2018 2017 ‘Current Income tax (462,547) (299,163) (761,888) (1,001,349) Deferred Income tax 146,635 33,653, 243,166 31,531 Total income tax 15,912) 265,510) 1,518,722) _ (969,818)
Slide 40: Financial instruments by category and hierarchy
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3, unless o
Slide 41: Financial instrument categories table
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3, unless o
Slide 42: 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 43: Regulatory framework
English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2018 AND COMPARATIVE INFORMATION (Stated in thousands of pesos as described in Note 3, unless o
Slide 44: Related party transactions 2018
The detail of significant transactions with related parties for the nine-month period ended September 30, 2018 and 2017 is as follows: English translation of the original prepared in Spanish for publication in Argentina TRANSPORTADORA DE GAS DEL SUR S.A. NOTES TO THE CONDENSED INTERIM CONSOLIDATED F
Slide 45: Related party transactions 2017
Nine-month period ended September 30, 2017:
Slide 46: Associates and joint agreement
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 ext
Slide 47: Auditor review report
English translation of the original report issued in Spanish for publication in Argentina Scope of review 4. Our responsibility is to express a conclusion on the accompanying condensed interim consolidated financial statements based on our review, which was conducted in accordance with International
Slide 48: Auditor report: additional information
English translation of the original report issued in Spanish for publication in Argentina presented together with the condensed interim financial statements to comply with CNV regulations, arise from the corresponding condensed interim consolidated financial statement as of September 30, 2018 attach
Gas Transporter of the South — 9M2018 Earnings Presentation on 6ix