Transportadora De Gas Del Sur Sa Class B · BCBA:TGSU2
Transportadora De Gas Del Sur Sa Class B — Gas Transporter of the South — FINANCIAL STATEMENT AS OF 30, SEPTEMBER 2020
46 slides from Transportadora De Gas Del Sur Sa Class B's investor presentation, Nov 24, 2020
Slide 1: tgs@
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Slide 2: Financial Statements as of September 30, 2020 - Index
TRANSPORTADORA DE GAS DEL SUR S.A. FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2020 INDEX 01. ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE NINE-MONTH PERIOD ENDED SEPTEMBER 30, 2020 02. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Statements of comprehensive income Statement
Slide 3: Activities of the Company in 9M2020 and 9M2019
Activities of the Company in 9M2020 and 9M2019 Revenues Revenues for 9M2020 decreased by Ps. 5,495 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 9M202
Slide 4: Increase in volumes dispatched
The increase in the volumes dispatched is mainly due to the increase in deliveries of ethane after PBB Polisur SRL, the only customer to whom this product is commercialized, suffered in July 2019 technical problems in its facilities that prevented the normal supply of ethane Likewise, there was an i
Slide 5: Other operating results
Other operating results The other operating results recorded a positive variation of Ps. 202 million mainly as a result of the recognition of the collections received for insurance recovery and lower charges for provision for contingencies. Net financial results In 9M2020, the financial results show
Slide 6: Exchange rate variation and liquidity
The nominal exchange rate had a variation of Ps. 16.29 for each US dollar (27%) during 9M2020, as opposed to Ps. 19.89 for each US dollar (53%) during 9M2019. 2. Liquidity The Company’s primary sources and application of funds during 9M2020 and 9M2019 are shown in the table below:
Slide 7: Cash flow used in investing and financing activities
Net cash flow used in investing activities suffered a positive variation of Ps. 4,736 million mainly due to lower funds for the acquisition of capital goods after the completion of the works related to the midstream business in Vaca Muerta and as a consequence of the impact of COVID-19, partially of
Slide 8: 3Q2020 results
During 3Q2020, total income amounted to Ps. 391 million, compared to Ps. 58 million for 3Q2019. Total revenues increased Ps. 340 million in 3Q2020 compared to 3Q2019. Revenues from the Natural Gas Transportation segment in 3Q2020 decreased by Ps. 2,073 million, compared to 3Q2019. The negative varia
Slide 9: Other Services segment and cost of sales
The Other Services segment reported an increase of Ps. 101 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: 3Q2020 financial results
In 3Q2020, financial results were positive by Ps. 853 million compared to 2019. This positive variation is mainly due to the effect of the foreign exchange rate in 3Q2020. This effect was partially offset by the negative impact generated by financial assets and a lower positive effect on a net monet
Slide 11: Consolidated Comprehensive Income Summary
5. Consolidated Comprehensive Income Summary Summary of the consolidated comprehensive income information for the 9M2020, 9M2019 and 9M2018:
Slide 12: Consolidated Cash Flow Summary
6. Consolidated Cash Flow Summary Summary of the consolidated cash flow information for 9M2020, 9M2019 and 9M2018:
Slide 13: Cash flow figures (in thousands of Argentine Pesos)
(in thousands of Argentine Pesos) Cash flows provided by operating acivities 20,814,647 10,805,713 5,679,950 Cash flows used in investing activities (20,447,156) (25,183,270) (10,423,778) Cash flows used in financial activities (4,371,182) (13,983,299) 12,452,804 Net decrease in cash and cash equiva
Slide 14: Gas Transportation and NGL operating data
2020 Gas Transportation Average frm contracted capaaty Gn billions of cubic feet per day ("Bcf/d")) 2.92 Average daily deliveries (in Bcf/d) 2.29 NGL production and commer: ‘Production Ethane (in short tones) 284,576 Propane (in short tones) 330,858 Butane (in short tones) 229,833 Natural Gasoline (
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: Subsidiary control and COVID-19 impact
Detailed data reflecting subsidiary control as of September 30, 2020 is as follows: Company Incorporation country Closing date Main activity Telcosur Argentina December 31 Telecommunication Services CTG Argentina December 31 Electrical power related services Economic context and Impact of COVID-19 (
Slide 20: Segment information, nine months ended September 30, 2020
Nine-month period ended September 30, 2020 Production and Natural Gas i Other ‘Transportation of Liquids Services __Telecommunications Eliminations, Total Revenues 16,541,108 18,678,374 2,869,178 290,567 = 38,379,297 Intercompany revenues from sales 549,115 = = = (549,115) = Cost of sales (6,801,284
Slide 21: Revenues by market and opportunity
The breakdown of revenues by market and opportunity for the nine-month periods ended September 30, 2020 and 2019 is as follows:
Slide 22: Revenue breakdown, nine months 2020
Nine-month period ended September 30, 2020 ateencaed Other Services Telecommunications Total Per destination market External Market = 3.760.306 z = 3.760.306 Local Market 76,547,108 14,918,068 869,178 250,567 34,618,921 Total 76,541,108 18,678,374 2,369,178 290,567 38,379,227 Timing of revenue recog
Slide 23: Revenue breakdown, nine months 2019
Nine-month period ended September 30, 2019 Production and ateencaed : Other Services Telecommunications Total of Liquids Per destination market External market 72556 Z TORT 556 Local market 21,429,811 12,917,071 240,482 265,351 36,852,715 Total 21,429,811 19,938,727 2,240,482 265,351 43,874,371 Timi
Slide 24: Movement of allowance for doubtful accounts
The movement of the allowance for doubtful accounts is as follows:
Slide 25: Allowance movements
Balances as of 12/31/2018 ‘Additions Applications Decreases Balances as of 09/30/2019 ‘Additions Applications Decreases Balances as of 12/31/2019 (24,409) Inflation adjustment restatement Additions © 187,631 Applications = Decreases = Balances as of 09/30/2020 163,222 Included in “Selling expenses”.
Slide 26: Trade receivables
09/30/2020 12/31/2019 Current Non Current Current Non Current ‘Commons: 5,596,719, = 7,774,936 = Ur 37,675 z 16,965 : Natural Gas Transportation 2,727,197. = 7,636,638 = Production and Commercialization of Liquids 2,281,654 = 2,337,674 = Other services 549,593, = 783,656 = Related parties (Note 22)
Slide 27: Allowance for doubtful accounts
For doubtful accounts Balances as of 12/31/2018 250,424 Inflation adjustment restatement (68,408) Additions = Applications = Decreases = Balances as of 09/30/2019 182,016 Inflation adustment restatement (9.225) Additions © 2,991 Applications Decreases = Balances as of 12/31/2019 165,782 inflation ad
Slide 28: Tax payables
09/30/2020 12/31/2019 Gurrent. ‘Non Current Current ‘Non Current Health and safety tax 15,434 = 15,956 E Withholdings for income tax made to third parties 135,860 = 181,869 = Turnover Tax 109,735 zi 104,763 2 Taxon exports = = 88,443 = VAT 22,695 = = = UT others = = ai = Others: SENSED = 2,404 = Tot
Slide 29: Operating expenses
2020 2019 Operating expenses Regulated — Non-regulated Administrative Seling Financial Accounts Total activities activities expenses expenses expenses Total Salaries, wages and other compensations 2,434,182 1,094,939 771,551 430,543 137,149 - 2,844,418 Social security taxes 579,312 243,991 168,574 1
Slide 30: Other operating results, net
l) Other operating results, net
Slide 31: Issuer Information on investments in associates
09/30/2020 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 32: Share of gain / (loss) from associates
12. SHARE OF GAIN / (LOSS) FROM ASSOCIATES
Slide 33: Property, plant and equipment
09/30/2020 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 _—-Forthe period Rate % of the period value value Pipelines 77,807,256 - (31,672) 2,
Slide 34: Loans denominated in US dollars
Loans are totally denominated in US dollars. During the nine-month period ended September 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 gene
Slide 35: Leases and loans activity
2020 Leases liabilities Other payables 2019 Beginning balance 2,920,474 38,333,051 38,922,166 Inflation adjustment restatement (739,130) (7,573,951) _ (12,642,784) Accrued interest 165,931 1,871,450 2,044,290 Effect of foreign exchange effect 688,738 8,796,779 16,982,143 VAT unpaid installments 10,7
Slide 36: Specific tax loss provision
As of September 30, 2020, the Company generated a specific tax loss derived from financial results of Ps. 718,626. In order to determine the recoverability of such loss, the Company takes into consideration the reversal of deferred items, its tax planning and projections of specific future taxable i
Slide 37: 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 38: Financial instruments, September 30, 2020
September 30, 2020 Financial assets Financial assets at amortized at fair value cost Total CURRENT ASSETS: Trade receivables = 5,797 881 5,797 B81 Other receivables = 438 396 438 396 Other financial assets at amortized cost = 8,359,183 8,359,183, Other financial assets at fair value through profit o
Slide 39: Financial instruments, December 31, 2019
December 31, 2019 Financial assets Financial assets atfairvalue at amorized cost Total CURRENT ASSETS Trade receivables = 7.952.444 7.952.444 Other receivables - 581,304 581,304 Derivative financial instruments 336,614 = 336,614 (Other financial assets at amortized cost = 1287413 282,413 ‘Cash and c
Slide 40: Fair value of financial assets
The fair value amount of the financial assets is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As of September 30, 2020, the carrying amount of certain financial instruments used by the
Slide 41: Assets and liabilities in foreign currency
09/30/2020 12/31/2019 Foreign currency ‘Amount Foreign currency ‘Amount and amount Exchange in local and amount in local jn thousands: rate currency in thousands currency CURRENT ASSETS Cash and cash equivalents us$ 54,600 75.980 (1) 4,148,508 uss 143,920 10,552,779 Derivative financial instruments
Slide 42: Significant related party transactions
The detail of significant transactions with related parties for the nine-month periods ended September 30, 2020 and 2019 is as follows: Nine-month period ended September 30, 2020:
Slide 43: Related party revenues and costs
Revenues Costs Financial results Production and Company Other services Gas purchase and others ‘Compensation for technical assistance Revenues for administrative services Interest expense Controlling shareholder: CIESA = = 39 ‘Associate which exercises joint control on the controlling shareholder: P
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: 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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