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 MARCH 31,2020
43 slides from Transportadora De Gas Del Sur Sa Class B's investor presentation, May 29, 2020
Slide 1: Slide 1
Slide 2: Financial Statements as of March 31, 2020 - Index
TRANSPORTADORA DE GAS DEL SUR S.A. FINANCIAL STATEMENTS AS OF MARCH 31, 2020 INDEX 01. ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2020 02. CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS Statements of comprehensive income Statements of fi
Slide 3: Activities of the Company in 1Q2020 and 1Q2019
Activities of the Company in 1Q2020 and 1Q2019 Revenues Revenues for 1Q2020 decreased by Ps. 1,554 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 1Q202
Slide 4: Natural gasoline agreement, other services and costs
The agreement regarding the commercialization of natural gasoline was successfully renewed. This agreement with Petrobras Global Trading B.V. will be extended for the period February 1, 2020 to January 31, 2021, and allows the Company to obtain improvements in the price. Other Services Revenues deri
Slide 5: Other operating results and net financial results
Other operating results The other operating results recorded a positive variation of Ps. 106 million mainly as a result of the recognition of the collections received for insurance recovery. Net financial results In 1Q2020, the financial results showed a positive variation of Ps. 596 million with re
Slide 6: Net financial results variation and liquidity
This positive variation is mainly due to the increase in the net monetary position due to the increase in the net monetary liability position, the higher result recognized by derivative financial instruments and the result of the acquisition of Notes. These effects were partially offset by the highe
Slide 7: Cash and cash equivalents variation
During 1Q2020, the net variation in cash and cash equivalents suffered a negative variation of Ps. 6,462 million. This decrease was contributed by the increase in cash flows used in investment activities of Ps. 3,445 million, mainly driven by the increase in cash flows by the acquisition of financia
Slide 8: Consolidated Comprehensive Income Summary
4. Consolidated Comprehensive Income Summary Summary of the consolidated comprehensive income information for the 1Q2020, 1Q2019 and 1Q2018:
Slide 9: Consolidated Cash Flow Summary
5. Consolidated Cash Flow Summary Summary of the consolidated cash flow information for 1Q2020, 1Q2019 and 1Q2018:
Slide 10: Cash flow summary (in thousands of Argentine Pesos)
192020 192019 (in thousands of Argentine Pesos) 2018 Cash flows provided by operating activities 5,195,983 5,004,033 5,033,249 Cash flows used in investing activities (8,325,416) (4,880,353) (433,650) Cash flows (used in) / provided by financial activities (3,228,528) (20,126) (10) Net (decrease) /
Slide 11: Operating data: gas transportation and NGL production
Three-month period ended March 3. 2020 2019 2018 201. Gas Transportation ‘Average firm contracted capacity (in billions of cubic feet per day ("Bcf/d") 2.91 2.91 2.87 2.78 Average daily deliveries (in Bcf/d) 2.19 2.18 2.15 2.05 NGL production and commercialization ¢ Production Ethane (in short tones
Slide 12: Gustavo Mariani, Chairman of the Board
Gustavo Mariani Chairman of the Board of Directors
Slide 13: Gustavo Mariani, Chairman of the Board
Gustavo Mariani Chairman of the Board of Directors
Slide 14: Statements of changes in equity
Batances at December 31, 2018, Comprehensive income forthe tee: onth etd Balances at Merch 3, 2019, aecation ofthe Orsay Shrehlirs” Meeting el oh A 1, 2018 Taga Raseve Denes aya Fase for contol expendures,ocqustion of treasury shares andor dens Ovitendspoyment Comprehensive income forthe nine-nth er
Slide 15: Gustavo Mariani, Chairman of the Board
Gustavo Mariani Chairman of the Board of Directors
Slide 16: Segment information, three months ended March 31, 2020
Three-month period ended March 31, 2020 Production and NaturalGas Commercialization Other Transportation of Liquids Services Telecommunications Eliminations Total Revenues 5,391,515 5,856,858 754,390 117,874 " 12,120,637 Intercompany revenues from sales 146,243 E z : (446,243) E Cost of sales (2,182
Slide 17: Summary of significant statement items
9. SUMMARY OF SIGNIFICANT STATEMENT OF FINANCIAL POSITION AND STATEMENT OF COMPREHENSIVE INCOME ITEMS a) Other receivables
Slide 18: Other receivables
03/31/2020 12/31/2019 Current Non Current Current Non Current Tumover tax credit balance 45,387 = 54,432 = VAT credit balance 566,406 = 1,093,357 = Income tax credit balance () = = 45,733 = Other tax receivables 1266 2,381 1,317 1504 Prepaid expenses 63,000 = 97,370 = ‘Advances to suppliers 784,799
Slide 19: Provisions movement
Balances as of 12/31/2018 Additions Applications Decreases Balances as of 03/31/2019 Additions Applications Decreases Balances as of 12/31/2019 Additions © Applications 158,497 Decreases Balances as of 03/31/2020 158,497 17 Tnduded in "Sdling expenses”
Slide 20: Movement of the allowance for doubtful accounts
The movement of the allowance for doubtful accounts is as follows:
Slide 21: Allowance for doubtful accounts
For doubtful accounts Balances as of 12/31/2018 218,817 Additions (21,398) Applications = Decreases = Balances as of 03/31/2019 197,419 Inflation adjustment restatement (55,175) Additions @) 2,614 Applications = Decreases = Balances as of 12/31/2019 144,858 Inflation adjustment restatement (9,831) A
Slide 22: Taxes payable
03/31/2020 12/31/2019 Current Non Current Current Non Current Health and safety tax 15,702 = 13,942 = Withholdings for income tax made to third parties 147,748 = 158,914 = Tumover Tax 99,173 = 91,540 = Tax on exports 12,790 = 77,280 = UT Others 696 = 366 = Others 16,466 = 37,054 = Total 292,575 = 37
Slide 23: Cost of sales
For the three-month periods ended March 31, 2020 2019 Inventories at the beginning of the year 330,211 594,881 Purchases 3,022,430 3,530,721 Operating costs (Note 9j.) 3,181,124 2,846,110 Inventories at the end of the period (646,955) (358,657) Total 5,886,810 6,613,055
Slide 24: Expenses by nature
Accounts Salaries, wages and other compensations Social security taxes Compensation to Directors and Supervisory Committee Professional services fees Technical operator assistance fees Materials Third parties services Telecommunications and post expenses Rents Transports and freight Easements Office
Slide 25: Other operating results, net
l) Other operating results, net
Slide 26: Other financial assets at amortized cost
m) Other financial assets at amortized cost
Slide 27: Payroll and social security payables
03/31/2020 12/31/2019 Current Non Current Current Non Current Vacation benefit payable 286,438 = 328,287 Supplementary annual salary payable 54,437 == = ‘Annual bonus payable 90,469 a 220,621 Social security taxes payable 97,286 =: 140,549 UT 1674 == 6,569 Total 530,304 = 696,026 =
Slide 28: 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, 2020 and December 31, 2019, and its results for the three-month periods as of March 31, 2020 and 2019 is the following:
Slide 29: Share of gain/(loss) from associates
12. SHARE OF GAIN / (LOSS) FROM ASSOCIATES
Slide 30: Share of results of associates
For the three-month periods ended March 31, 2020 2019 EGS (in liquidation) 5 (1579) TGU (27) 68 Tink 35,254 (160) Total 3,232 (6,671)
Slide 31: Property, plant and equipment
03/31/2020 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 67,986,891 - : 53,738
Slide 32: Loans and notes acquired
Loans are totally denominated in US dollars. During the first quarter 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, which amounted to
Slide 33: Financial leasing maturities
The following are the maturities of the financial leasing in force as of March 31, 2020 (not including issuing costs):
Slide 34: Deferred assets and liabilities
Deferred assets (liabilities) 03/31/2020 12/31/2019 ‘Allowance for doubtful accounts = 785 Tax credits discounted value loss = 382 ‘Account receivables discounted value 437 785 Provisions for legal claims and other provisions 168,450 166,212 Financial leases 624,745 644,311 Contract liabilities 535,
Slide 35: Financial instruments by category and hierarchy
17. FINANCIAL INSTRUMENTS BY CATEGORY AND HIERARCHY 1.1 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 categori
Slide 36: Financial assets and liabilities, March 31, 2020
March 31, 2020 Financial assets at Financial assets fair value at amortized cost Total CURRENT ASSETS Trade receivables = 7,382,845 7,382,845 Other receivables = 437,528 437,528 Derivative financial instruments 582,566 = 582,566 Other financial assets at amortized cost = 6,748,337 6,748,337 Cash and
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
CURRENT ASSETS: Cash and cash equivalents Derivative financial instruments Other financial assets at amortized cost Trade receivables Other receivables Total current assets TOTAL ASSETS CURRENT LIABILITIES Trade payables Loans Contract liabilities Total current liabilities NON CURRENT LIABILITIES Lo
Slide 39: Related party balances
03/31/2020 12/31/2019 Accounts Accounts Accounts Accounts Company receivable payable receivable payable Controlling shareholder: CIESA 37 = 40 = Associate which exercises joint control on the controlling shareholder: Pampa Energia @ 312,376 2,641,441 225,543 2,672,160 Associate which exercises signi
Slide 40: Related party transactions
Additionally, during the three-month period ended March 31, 2020, the Company received from SACDE Sociedad Argentina de Construcción, construction engineering services for Ps. 184,371, which are activated within the balance of PPE. Three-month period ended March 31, 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: 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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