Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — Gas Transporter of the South — FINANCIAL STATEMENTS AS OF JUNE 30, 2020
43 slides from Transportadora De Gas Del Sur Sa Class B's investor presentation, Aug 25, 2020
Slide 1: tgs@
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Slide 2: Financial Statements as of June 30, 2020 - Index
TRANSPORTADORA DE GAS DEL SUR S.A. FINANCIAL STATEMENTS AS OF JUNE 30, 2020 INDEX 01. ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2020 02. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Statements of comprehensive income Statements of financ
Slide 3: Activities of the Company in 1S2020 and 1S2019
Activities of the Company in 1S2020 and 1S2019 Revenues Revenues for 1S2020 decreased by Ps. 5,399 million from the same period last year. This decrease is mainly due to the decrease in revenues of the Liquids Production and Commercialization business segment. Natural Gas Transportation During 1S202
Slide 4: Liquids and Other Services revenues
The lower deliveries of ethane and exports of butane were partially offset by the higher exports of propane and natural gasoline and the higher contribution of butane to the local market. The agreement regarding the commercialization of natural gasoline was successfully renewed. This agreement with
Slide 5: Operating costs 2020 vs 2019
2020 2019 Variation Concept MMof$ %/Total MMof$ %/Total MMof$ —_%/ Total Natural Gas Purchase 5,129 38% 7,421 45% (2,292) (31%) Labor costs 1,881 14% 2,052 13% (474) (8%) Taxes, fees and contributions 1,446 10% 1,853 12% (407) (22%) Repair and maintenance 940 7% 984 6% (44) (4%) Other fees and third
Slide 6: Financial results variation
This negative variation is mainly due to the higher foreign exchange loss resulting from the increase in the net liability position denominated in US dollars and the variation in the exchange rate. The nominal exchange rate had a variation of Ps. 10.57 for each US dollar (18%) during 1S2020, as oppo
Slide 7: Cash and cash equivalents variation
During 1S2020, the net variation in cash and cash equivalents suffered a negative variation of Ps. 24,474 million. This variation was contributed by the increase in cash flows used in investment activities of Ps. 11,957 million, mainly driven by the decrease in cash flows by the acquisition of finan
Slide 8: 2Q2020 total income and revenues
During 2Q2020, total income amounted to Ps. 1,741 million, compared to Ps. 5,798 million for 2Q2019. Total revenues decreased Ps. 3,753 million in 2Q2020 compared to 2Q2019. Revenues from the Natural Gas Transportation segment in 2Q2020 decreased by Ps. 2,058 million, compared to 2Q2019. The negativ
Slide 9: Other Services segment and cost of sales 2Q2020
The Other Services segment reported an increase of Ps. 209 million, mainly explained by higher natural gas transportation and conditioning services in Vaca Muerta and the increase in the foreign exchange rate on U.S. dollar-denominated revenues. These effects were partially offset by lower natural g
Slide 10: Other operating and financial results 2Q
Other negative operating results in 2Q2020 recorded a positive variation of Ps. 59 million. In 2Q2019, financial results were negative by Ps. 3,764 million compared to 2019. This negative variation is mainly due to: (i) the effect of the foreign exchange rate after the appreciation of the Argentine
Slide 11: Consolidated Comprehensive Income Summary
5. Consolidated Comprehensive Income Summary Summary of the consolidated comprehensive income information for the 1S2020, 1S2019 and 1S2018:
Slide 12: Consolidated Cash Flow Summary
6. Consolidated Cash Flow Summary Summary of the consolidated cash flow information for 1S2020, 1S2019 and 1S2018:
Slide 13: Cash flow figures (in thousands of Argentine Pesos)
(in thousands of Argentine Pesos) Cash flows provided by operating acivities 11,649,961 7,191,689 5,579,950 Cash flows used in investing activities (7,331,118) (19,288,444) (10,423,778) Cash flows (used in) / provided by financial activities (3,723,028) (11,781,713) 12,452,804 Net increase / (decrea
Slide 14: Gas Transportation and NGL volumes
2020 Gas Transportation Average frm contracted capaaty Gn billions of cubic feet per day ("Bcf/d")) 2.91 Average daily deliveries (in Bcf/d) 214 NGL production and commer: ‘Production Ethane (in short tones) 173,220 Propane (in short tones) 221,806 Butane (in short tones) 156,056 Natural Gasoline (i
Slide 15: Horacio Turri, Chairman of the Board
Horacio Turri Chairman of the Board of Directors
Slide 16: Horacio Turri, Chairman of the Board
Horacio Turri Chairman of the Board of Directors
Slide 17: Horacio Turri, Chairman of the Board
Horacio Turri Chairman of the Board of Directors
Slide 18: Horacio Turri, Chairman of the Board
Horacio Turri Chairman of the Board of Directors
Slide 19: Six-month period ended June 30, 2020 segment information
Six-month period ended June 30, 2020 Production and Natural Gas Commercialization Other ‘Transportation of Liquids Services Telecommunications Eliminations Total Revenues 10,684,362 10,970,124 1,714,766 200,010 = 23,569,262 Intercompany revenues from sales 317,106 = = = (317,106) = Cost of sales (4,
Slide 20: Revenues by market and opportunity
The breakdown of revenues by market and opportunity for the six-month periods ended June 30, 2020 and 2019 is as follows:
Slide 21: Six-month period ended June 30, 2020 revenues
ix-month period ended June 30, 2020 Te can Other Services Telecommunications Total Per destination market External Market = 3.760.306 = = 3,760,306 Local Market T0684 562 7,209,818 1,714,766 200,010 79/808/956 Total 70,684,362 10,970,124 1,714,766 200,010 23,569,262 Timing of revenue recognition: Ov
Slide 22: Six-month period ended June 30, 2019 revenues
Six-month period ended June 30, 2019 Production and Tara Gasy Commercialization Other Services Telecommunications Total of Liquids Per destination market External market 5152572 = ENEPEIZ Local market 73,289,345 9,123,462___1,252,270 150718 23,815,795 Total 13,289,345 14,275,834 1,252,270 150,718 28
Slide 23: Allowance for doubtful accounts movement
The movement of the allowance for doubtful accounts is as follows:
Slide 24: Allowance movement balances
Balances as of 12/31/2018 = Additions = Applications = Decreases = Balances as of 06/30/2019 = Additions = Applications = Decreases = Balances as of 12/31/2019 Inflation adjustment restatement (335) Additions © 194,839 Applications : Decreases = Balances as of 06/30/2020 185504 T Included in "Sellin
Slide 25: Trade receivables current and non current
06/30/2020 12/31/2019 Current Non Current Current Non Current ‘Commons: 5,493,873 = 7,193,586, = Ur 37,675 : 15,698, E Natural Gas Transportation 583,914 = 7,280,946 = Production and Commerciaization of Liquids 1,119,145 = 2,162,881 : Other services 753.139 = 725,061 : Related parties (Note 22) 229,
Slide 26: For doubtful accounts
For doubtful accounts Balances as of 12/31/2018 210,048 ‘Additions (20,540) Applications = Decreases = Balances as of 06/30/2019 189,508 Inflation adjustment restatement (38,890) Additions © 2,768 ‘Applications = Decreases = Balances as of 12/31/2019 153,386 Inflation adjustment restatement (48,211)
Slide 27: Operating expenses
2020 2019 Operating expenses Regulated Non-regulated Administrative Selling Financial Accounts Total activities __attivities. expenses _—_expenses expenses Total Salaries, wages and other compensations 1,513,493 678,380 481,950 267,452 85,711 - 1,710,016 Social security taxes 368,380 164,939 108,890
Slide 28: Other operating results, net
l) Other operating results, net
Slide 29: Issuer Information
06/30/2020 12/31/2019 Issuer Information Description of securities Last financial statemets issued Face Amount — Cost. Book Main Date Common Net (loss)/ gain Shareholders’ % of Common Book Name and issuer value value business stock _ for the period equity Stock value Transporte y Servicios de Gas Pi
Slide 30: Share of gain / (loss) from associates
12. SHARE OF GAIN / (LOSS) FROM ASSOCIATES
Slide 31: Property, plant and equipment cost and depreciation
06/30/2020 12/31/2019 Cost Depreciation 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 ofthe year Retirements For the period + Rate % of the period value value Pipelines 71,989,426 - - 61,232 7
Slide 32: Loans denominated in US dollars
Loans are totally denominated in US dollars. During the six-month period ended June 30, 2020, through various transactions, the Company acquired 2018 Notes for a nominal value of US$ 17,584,000, for which an average price of US$ 71.53 was paid for each US$ 100 of nominal value. The result generated,
Slide 33: Other payables and loans activity
2020 Other payables Beginning balance 2,702,103 35,466,800 Inflation adjustment restatement (515,333) (4,355,404) Accrued interest 102,887 1,150,295, Effect of foreign exchange effect 441,833 5,470,970 VAT unpaid installments 9,218 = Acquisition of notes result = (333,400) Payment of loans™) (65,140
Slide 34: Deferred assets / (liabilities)
Deferred assets / (liabilities) 30/06/2020 31/12/2019 ‘Allowance for doubtful accounts = S31 Tax credits discounted value loss = 405 ‘Account receivables discounted value 168 831 Provisions for legal claims and other provisions 184,331 175,998 Financial leases 658,915 682,243 Contract liabilities 55
Slide 35: 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, 2019. The categor
Slide 36: Financial assets and liabilities June 30, 2020
June 30, 2020 Financial assets at amortized cost Total CURRENT ASSETS Trade receivables : 5590470 5590,.470 ‘Other receivables : 426.514 426.514 Other financial assets at amortized cost = 4,631,473 4,631,473 Cash and cash equivalents 5,779,030 5,274,863 11,053,893 Total current assets 5,779,030 15,9
Slide 37: 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 38: Assets and liabilities in foreign currency
06/30/2020 12/31/2019 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 us$ 67,627 70.260 “) 4,751,473 us$ 143,920 9,763,723 Derivative financial instruments u
Slide 39: Related party balances
06/30/2020 12/31/2019 Accounts Accounts Accounts Accounts Company receivable payable receivable payable Controlling shareholder: CIESA = = 42 = Associate which exercises joint control on the controlling shareholder: Pampa Energia 218,039 2,709,304 238,821 2,829,476 Associate which exercises signific
Slide 40: Related party transactions
Additionally, during the six-month period ended June 30, 2020, the Company received from SACDE Sociedad Argentina de Construcción, construction engineering services for Ps. 365,316, which are activated within the balance of PPE. Six-month period ended June 30, 2019:
Slide 41: 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 42: 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 43: Auditors' 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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