YPF Sociedad Anónima : CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED) (Form 6-K)

August 17, 2021 at 09:24 am EDT

CONDENSED INTERIM CONSOLIDATED

FINANCIAL STATEMENTS AS OF JUNE 30, 2021

AND COMPARATIVE INFORMATION (UNAUDITED)

Table of Contents

English translation of the condensed interim consolidated financial statements originally filed in Spanish with the Argentine Securities Commission ('CNV'). In case of discrepancy, the condensed interim consolidated financial statements filed with the CNV prevail over this translation

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

CONTENT


Note		Description	Page
		Glossary of terms	1
		Legal Information	2
		Consolidated statements of financial position	3
		Consolidated statements of comprehensive income	4
		Consolidated statements of changes in shareholders' equity	5
		Consolidated statements of cash flow	7
	Notes to the condensed interim consolidated financial statements:
1		General information, structure and organization of the business of the Group		8
2		Basis of preparation of the consolidated financial statements		9
3		Seasonality of operations		12
4		Acquisitions and dispositions		13
5		Financial risk management		13
6		Segment information		14
7		Financial instruments by category		16
8		Intangible assets		16
9		Property, plant and equipment		17
10		Right-of-use assets		20
11		Investments in associates and joint ventures		20
12		Inventories		22
13		Other receivables		22
14		Trade receivables		22
15		Cash and cash equivalents		23
16		Provisions		23
17		Income Tax		24
18		Taxes payable		25
19		Salaries and social security		25
20		Lease liabilities		25
21		Loans		26
22		Other liabilities		28
23		Accounts payable		28
24		Revenues		28
25		Costs		31
26		Expenses by nature		31
27		Other net operating results		32
28		Net financial results		32
29		Investments in joint operations		33
30		Shareholders' equity		33
31		Earnings per share		33
32		Issues related to Maxus Entities		34
33		Contingent assets and contingent liabilities		34
34		Contractual commitments		35
35		Main regulations and other		36
36		Balances and transactions with related parties		41
37		Employee benefit plans and similar obligations		43
38		Assets and liabilities in currencies other than the Peso		44
39		Subsequent events		45

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YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

GLOSSARY OF TERMS


Term		Definition
AESA		Subsidiary A-Evangelista S.A.
AFIP		Argentine Tax Authority
Associate		Company over which YPF has significant influence as provided for in IAS 28
BCRA		Central Bank of the Argentine Republic
BNA		Banco de la Nación Argentina
BO		Official Gazette of the Argentine Republic
CAMMESA		Compañía Administradora del Mercado Mayorista Eléctrico S.A.
CDS		Associate Central Dock Sud S.A.
CGU		Cash-Generating Units
CIMSA		Subsidiary Compañía de Inversiones Mineras S.A.
CNDC		Argentine Antitrust Authority
CNV		Argentine Securities Commission
CPI		Consumer price index
CSJN		Argentine Supreme Court
CT Barragán		Joint venture CT Barragán S.A.
Eleran		Subsidiary Eleran Inversiones 2011 S.A.U.
ENARGAS		Argentine National Gas Regulatory Authority
FACPCE		Argentine Federation of Professional Councils in Economic Sciences
FASB		Financial Accounting Standards Board
Group		YPF and its subsidiaries
GPA		Associate Gasoducto del Pacífico (Argentina) S.A.
IAS		International Accounting Standard
IASB		International Accounting Standards Board
IEASA (former ENARSA)		Integración Energética Argentina S.A. (former Energía Argentina S.A.)
IFRIC		International Financial Reporting Interpretations Committee
IFRS		International Financial Reporting Standard
Joint venture		Company jointly owned by YPF as provided for in IFRS 11
JO		Joint operation
LGS		Argentine General Corporations Law No. 19,550 (T.O. 1984), as amended
LNG		Liquified natural gas
LPG		Liquefied Petroleum Gas
MEGA		Joint Venture Company Mega S.A.
MEGSA		Mercado Electrónico del Gas S.A.
Metroenergía		Subsidiary Metroenergía S.A.
Metrogas		Subsidiary Metrogas S.A.
MINEM		Former Ministry of Energy and Mining (Ministerio de Energía y Minería)
MMBtu		Million British thermal units
NO		Negotiable Obligations
Oiltanking		Associate Oiltanking Ebytem S.A.
Oldelval		Associate Oleoductos del Valle S.A.
OLCLP		Joint Venture Oleoducto Loma Campana - Lago Pellegrini S.A.
OPESSA		Subsidiary Operadora de Estaciones de Servicios S.A.
OTA		Associate Oleoducto Trasandino (Argentina) S.A.
OTC		Associate Oleoducto Trasandino (Chile) S.A.
PEN		National Executive Branch
Peso		Argentine Peso
Profertil		Joint Venture Profertil S.A.
Refinor		Joint Venture Refinería del Norte S.A.
RTI		Integral Tariff Review
SE		Secretariat of Energy
SEE		Secretariat of Electric Energy
SEC		U.S. Securities and Exchange Commission
SGE		Government Secretariat of Energy
SRH		Hydrocarbon Resources Secretariat
Subsidiary		Company controlled by YPF in accordance with the provisions of IFRS 10
TFN		National Fiscal Tribunal
Termap		Associate Terminales Marítimas Patagónicas S.A.
TSEP		Transportation system entry point
UHaF		Under-Secretariat of Hydrocarbons and Fuels
US$		U.S. dollar
US$/Bbl		U.S. dollar per barrel
Y-GEN I		Joint venture Y-GEN Eléctrica S.A.U.
Y-GEN II		Joint venture Y-GEN Eléctrica II S.A.U.
YPF Brasil		Subsidiary YPF Brasil Comercio Derivado de Petróleo Ltda.
YPF Chile		Subsidiary YPF Chile S.A.
YPF EE		Joint venture YPF Energía Eléctrica S.A.
YPF Gas		Associate YPF Gas S.A.
YPF Holdings		Subsidiary YPF Holdings, Inc.
YPF International		Subsidiary YPF International S.A.
YPF or the Company		YPF Sociedad Anónima
YPF Ventures		Subsidiary YPF Ventures S.A.U.
YTEC		Subsidiary YPF Tecnología S.A.
WEM		Wholesale Electricity Market

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YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

LEGAL INFORMATION

Legal address

Macacha Güemes 515 - Ciudad Autónoma de Buenos Aires, Argentina

Fiscal year number 45

Beginning on January 1, 2021

Principal business of the Company

The Company's purpose shall be to perform, on its own, through third parties or in association with third parties, the study, exploration, development and production of oil, natural gas and other minerals and refining, marketing and distribution of oil and petroleum products and direct and indirect petroleum derivatives, including petrochemicals, chemicals, including those derived from hydrocarbons, and non-fossil fuels, biofuels and their components, as well as production of electric power from hydrocarbons, through which it may manufacture, use, purchase, sell, exchange, import or export them. It shall also be the Company's purpose to render, directly, through a subsidiary or in association with third parties, telecommunications services in all forms and modalities authorized by the legislation in force after applying for the relevant licenses as required by the regulatory framework, as well as the production, industrialization, processing, commercialization, conditioning, transportation and stockpiling of grains and products derived from grains, as well as any other activity complementary to its industrial and commercial business or any activity which may be necessary to attain its objective. In order to fulfill these objectives, the Company may set up, become associated with or have an interest in any public or private entity domiciled in Argentina or abroad, within the limits set forth in the Bylaws.

Filing with the Public Registry

Bylaws filed on February 5, 1991 under No. 404, Book 108, Volume A, Sociedades Anónimas, with the Public Registry of Buenos Aires City, in charge of the Argentine Registrar of Companies (Inspección General de Justicia); and Bylaws in substitution of previous Bylaws, filed on June 15, 1993, under No. 5,109, Book 113, Volume A, Sociedades Anónimas, with the above mentioned Registry.

Duration of the Company

Through June 15, 2093.

Last amendment to the Bylaws

April 29, 2016 registered with the Argentine Registrar of Companies (Inspección General de Justicia) on December 21, 2016 under No. 25,244, Book 82 of Corporations. In addition, an amendment dated April 30, 2021 is in process of registration with the Argentine Registrar of Companies.

Capital structure

393,312,793 shares of common stock, Pesos 10 par value and 1 vote per share.

Subscribed, paid-in and authorized for stock exchange listing (in Pesos)

3,933,127,930

PABLO GERARDO GONZÁLEZ

President

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YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AS OF JUNE 30, 2021 AND DECEMBER 31, 2020 (UNAUDITED)

(Amounts expressed in millions of Pesos)


	Notes			June 30, 2021		December 31, 2020
ASSETS
Noncurrent Assets
Intangible assets		8			43,799		39,119
Property, plant and equipment		9			1,518,979		1,379,527
Right-of-use assets		10			46,696		44,081
Investments in associates and joint ventures		11			125,539		107,112
Deferred income tax assets, net		17			2,532		2,629
Other receivables		13			16,684		14,657
Trade receivables		14			5,276		8,531
Investment in financial assets		7			3,447		-

Total noncurrent assets			1,762,952			1,595,656

Current Assets
Assets held for disposal			-			494
Inventories		12			124,197		100,137
Contract assets		24			1,401		871
Other receivables		13			44,256		34,369
Trade receivables		14			140,500		108,146
Investment in financial assets		7			37,730		28,934
Cash and cash equivalents		15			51,669		54,618

Total current assets			399,753			327,569

TOTAL ASSETS			2,162,705			1,923,225

SHAREHOLDERS' EQUITY
Shareholders' contributions			10,588			10,385
Reserves, other comprehensive income and retained earnings			718,759			666,845

Shareholders' equity attributable to shareholders of the parent company			729,347			677,230

Non-controlling interest			6,304			6,165

TOTAL SHAREHOLDERS' EQUITY			735,651			683,395

LIABILITIES
Noncurrent Liabilities
Provisions		16			219,153		186,488
Deferred income tax liabilities, net		17			196,445		119,609
Income tax liability		17			3,313		3,571
Taxes payable		18			194		215
Salaries and social security		19			4,434		3,860
Lease liabilities		20			26,476		24,172
Loans		21			588,984		527,575
Other liabilities		22			903		2,961
Accounts payable		23			1,059		710

Total noncurrent liabilities			1,040,961			869,161

Current Liabilities
Provisions		16			7,421		6,133
Contract liabilities		24			7,432		6,824
Income tax liability		17			968		740
Taxes payable		18			19,823		15,764
Salaries and social security		19			16,760		14,934
Lease liabilities		20			22,377		22,098
Loans		21			121,858		150,731
Other liabilities		22			8,332		9,062
Accounts payable		23			181,122		144,383

Total current liabilities			386,093			370,669

TOTAL LIABILITIES			1,427,054			1,239,830

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY			2,162,705			1,923,225

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

PABLO GERARDO GONZÁLEZ

President

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YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH AND THREE-MONTH PERIOD ENDED JUNE 30, 2021 AND 2020 (UNAUDITED)

(Amounts expressed in millions of Pesos, except per share information, expressed in Pesos)


				For the six-month period ended June 30,		For the three-month period ended June 30,
	Notes			2021		2020		2021			2020
Net income
Revenues		24			550,763			308,228				315,873			133,558
Costs		25			(447,471	)		(292,736	)			(248,940	)		(146,822	)

Gross profit / (loss)			103,292			15,492			66,933				(13,264	)

Selling expenses		26			(45,966	)		(37,044	)			(26,021	)		(23,168	)
Administrative expenses		26			(20,037	)		(14,132	)			(10,912	)		(7,383	)
Exploration expenses		26			(963	)		(856	)			(804	)		(140	)
Impairment of property, plant and equipment		9			-			(57,429	)			-			(57,429	)
Other net operating results		27			(331	)		15,323				(55	)		7,940

Operating profit / (loss)			35,995			(78,646	)		29,141				(93,444	)

Income from equity interests in associates and joint ventures		11			6,555			3,720				1,439			2,300
Financial income		28			41,661			51,623				19,314			30,817
Financial loss		28			(67,771	)		(67,814	)			(35,448	)		(37,680	)
Other financial results		28			10,947			10,782				5,262			12,075

Net financial results		28			(15,163	)		(5,409	)			(10,872	)		5,212



Net profit / (loss) before income tax			27,387			(80,335	)		19,708				(85,932	)

Income tax		17			(75,896	)		1,638				(65,970	)		884

Net loss for the period			(48,509	)		(78,697	)		(46,262	)			(85,048	)

Other comprehensive income
Items that may be reclassified subsequently to profit or loss:
Translation differences from subsidiaries, associates and joint ventures			(4,511	)		(4,090	)		(1,346	)			(2,277	)
Result from net monetary position in subsidiaries, associates and joint ventures⁽¹⁾			9,758			3,762			5,055				1,568
Items that may not be reclassified subsequently to profit or loss:
Translation differences from YPF			95,315			99,346			31,195				56,453

Other comprehensive income for the period			100,562			99,018			34,904				55,744



Total comprehensive income / (loss) for the period			52,053			20,321			(11,358	)			(29,304	)

Net loss for the period attributable to:
Shareholders of the parent company			(47,083	)		(78,418	)		(45,017	)			(84,630	)
Non-controlling interest			(1,426	)		(279	)		(1,245	)			(418	)
Other comprehensive income for the period attributable to:
Shareholders of the parent company			98,997			98,277			34,127				55,429
Non-controlling interest			1,565			741			777				315
Total comprehensive income / (loss) for the period attributable to:
Shareholders of the parent company			51,914			19,859			(10,890	)			(29,201	)
Non-controlling interest			139			462			(468	)			(103	)
Earnings per share attributable to shareholders of the parent company:
Basic and diluted		31			(119.93	)		(199.84	)			(114.67	)		(215.67	)

(1)	Result associated to subsidiaries, associates and joint ventures with the Peso as functional currency. See accounting policy in Note 2.b.1 to the annual consolidated financial statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements

PABLO GERARDO GONZÁLEZ

President

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YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2021 AND 2020 (UNAUDITED)

(Amounts expressed in millions of Pesos)


	For the six-month period ended June 30, 2021
	Shareholders' contributions
	Subscribed capital		Adjustment to contributions		Treasury shares	Adjustment to treasury shares	Share-based benefit plans		Acquisition cost of treasury shares		Share trading premium	Issuance premiums		Total
Balance at the beginning of the fiscal year		3,926		6,088		7		13		(144	)	502			(647	)	640	10,385
Accrual of share-based benefit plans ⁽³⁾		-		-		-		-		241		-			-		-	241
Settlement of share-based benefit plans ⁽²⁾		-		-		-		-		773		(1,287	)		476		-	(38	)
As decided by the Shareholders´ Meeting on April 30, 2021 ⁽⁴⁾		-		-		-		-		-		-			-		-	-
Other comprehensive income		-		-		-		-		-		-			-		-	-
Net loss		-		-		-		-		-		-			-		-	-

Balance at the end of the period		3,926		6,088		7		13		870		(785	)		(171	)	640	10,588


	Reserves					Equity attributable to
	Legal		Future dividends		Investments	Purchase of treasury shares		Other comprehensive income			Retained earnings		Shareholders of the parent company	Non- controlling interest		Total shareholders' equity
Balance at the beginning of the fiscal year		2,007		3,700		8,934			550			721,303		(69,649	)		677,230		6,165		683,395
Accrual of share-based benefit plans ⁽³⁾		-		-		-			-			-		-			241		-		241
Settlement of share-based benefit plans ⁽²⁾		-		-		-			-			-		-			(38	)	-		(38	)
As decided by the Shareholders´ Meeting on April 30, 2021 ⁽⁴⁾		-		(3,700	)	(8,934	)		(550	)		-		13,184			-		-		-
Other comprehensive income		-		-		-			-			98,997		-			98,997		1,565		100,562
Net loss		-		-		-			-			-		(47,083	)		(47,083	)	(1,426	)	(48,509	)

Balance at the end of the period		2,007		-		-			-			820,300	⁽¹⁾	(103,548	)		729,347		6,304		735,651

(1)

Includes 828,807 corresponding to the effect of the translation of the financial statements of YPF and, (43,203) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 34,696 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees' income tax withholdings related to the share-based benefit plans.

(3)	See Note 37.

(4)	See Note 30.

PABLO GERARDO GONZÁLEZ

President

Table of Contents

YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2021 AND 2020 (UNAUDITED) (Cont.)

(Amounts expressed in millions of Pesos)


	For the six-month period ended June 30, 2020
	Shareholders' contributions
	Subscribed capital		Adjustment to contributions		Treasury shares	Adjustment to treasury shares	Share-based benefit plans			Acquisition cost of treasury shares		Share trading premium	Issuance premiums	Total
Balance at the beginning of the fiscal year		3,924		6,085		9		16			117		177		(396	)	640	10,572
Accrual of share-based benefit plans ⁽³⁾		-		-		-		-			300		-		-		-	300
Settlement of share-based benefit plans ⁽²⁾		-		1		-		(1	)		(59	)	66		(18	)	-	(11	)
As decided by the Shareholders´ Meeting on April 30, 2020 ⁽⁴⁾		-		-		-		-			-		-		-		-	-
Other comprehensive income		-		-		-		-			-		-		-		-	-
Net loss		-		-		-		-			-		-		-		-	-

Balance at the end of the period		3,924		6,086		9		15			358		243		(414	)	640	10,861


	Reserves					Equity attributable to
	Legal		Future dividends		Investments	Purchase of treasury shares		Other comprehensive income		Retained earnings		Shareholders of the parent company	Non- controlling interest		Total shareholders' equity
Balance at the beginning of the fiscal year		2,007		2,500		44,255			500		516,786		(34,071	)		542,549		5,550		548,099
Accrual of share-based benefit plans ⁽³⁾		-		-		-			-		-		-			300		-		300
Settlement of share-based benefit plans ⁽²⁾		-		-		-			-		-		-			(11	)	-		(11	)
As decided by the Shareholders´ Meeting on April 30, 2020 ⁽⁴⁾		-		1,200		(35,321	)		50		-		34,071			-		-		-
Other comprehensive income		-		-		-			-		98,277		-			98,277		741		99,018
Net loss		-		-		-			-		-		(78,418	)		(78,418	)	(279	)	(78,697	)

Balance at the end of the period		2,007		3,700		8,934			550		615,063	⁽¹⁾	(78,418	)		562,697		6,012		568,709

(1)

Includes 627,491 corresponding to the effect of the translation of the financial statements of YPF and, (33,781) corresponding to the effect of the translation of the financial statements of investments in subsidiaries, associates and joint ventures with functional currencies other than the U.S. dollar and 21,353 corresponding to the recognition of the result for the net monetary position of subsidiaries, associates and joint ventures with the Peso as functional currency, as detailed in Note 2.b.1. to the annual consolidated financial statements.

(2)	Net of employees' income tax withholdings related to the share-based benefit plans.

(3)	See Note 37.

(4)	See Note 29 to the annual consolidated financial statements.

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

PABLO GERARDO GONZÁLEZ

President

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YPF SOCIEDAD ANONIMA

CONDENSED INTERIM CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2021 AND 2020 (UNAUDITED)

(Amounts expressed in millions of Pesos)


	For the six-month period ended June 30,
	2021			2020
Cash flows from operating activities
Net loss		(48,509	)		(78,697	)
Adjustments to reconcile net loss to cash flows provided by operating activities:
Income from equity interests in associates and joint ventures		(6,555	)		(3,720	)
Depreciation of property, plant and equipment		133,427			86,572
Depreciation of right-of-use assets		8,982			8,679
Amortization of intangible assets		2,239			1,409
Retirement of property, plant and equipment and intangible assets and consumption of materials		15,555			7,360
Charge on income tax		75,896			(1,638	)
Net increase in provisions		13,178			16,165
Impairment of property, plant and equipment		-			57,429
Exchange differences, interest and other		15,189			2,240
Share-based benefit plans		241			300
Accrued insurance		-			(3,189	)
Result from debt exchange		(1,855	)		-
Result from the assignment of areas		(472	)		(12,233	)
Result from sale of assets held for disposal		(3,121	)		-
Changes in assets and liabilities:
Trade receivables		(13,436	)		27,219
Other receivables		(3,061	)		7,267
Inventories		(10,349	)		(5,389	)
Accounts payable		10,933			(15,382	)
Taxes payables		2,728			377
Salaries and social security		(1,203	)		(843	)
Other liabilities		(3,970	)		151
Decrease in provisions included in liabilities due to payment/use		(2,754	)		(1,639	)
Contract assets		(548	)		(263	)
Contract liabilities		716			(1,219	)
Dividends received		3,794			2,096
Proceeds from collection of lost profit insurance		515			1,004
Income tax payments		(258	)		(1,456	)

Net cash flows from operating activities ^{(1) (2)}		187,302			92,600

Investing activities: ⁽³⁾
Acquisition of property, plant and equipment and intangible assets		(90,616	)		(67,886	)
Proceeds from sales of financial assets		20,540			28,172
Payments from purchase of financial assets		(31,003	)		(19,649	)
Interests received from financial assets		3,221			-
Sale of interest in areas and sale of assets		1,634			13,867

Net cash flows used in investing activities		(96,224	)		(45,496	)

Financing activities: ⁽³⁾
Payments of loans		(98,518	)		(79,057	)
Payments of interests		(29,944	)		(29,587	)
Proceeds from loans		46,921			81,588
Payments of leases		(13,980	)		(10,059	)
Payments of interests in relation to income tax		(21	)		(440	)

Net cash flows used in financing activities		(95,542	)		(37,555	)



Translation differences on cash and cash equivalents		1,515			7,892



Net (Decrease) / Increase in cash and cash equivalents		(2,949	)		17,441

Cash and cash equivalents at the beginning of the fiscal year		54,618			66,100
Cash and cash equivalents at the end of the fiscal year		51,669			83,541

Net (Decrease) / Increase in cash and cash equivalents		(2,949	)		17,441

(1)	Does not include exchange differences generated by cash and cash equivalents, which are disclosed separately in this statement.

(2)	Includes 6,576 and 6,284 for the six-month period ended June 30, 2021 and 2020, respectively, for payment of short-term leases and of the variable charge of leases related to the underlying asset use or performance.

(3)	The main investing and financing transactions that have not affected cash and cash equivalents correspond to:


	For the six-month period ended June 30,
	2021		2020
Unpaid acquisitions of property, plant and equipment and concession extension liabilities		22,738		2,918
Additions of right-of-use assets		9,528		4,302
Capitalization of depreciation of right-of-use assets		1,976		1,796
Capitalization of financial accretion for lease liabilities		584		452

Accompanying notes are an integral part of these condensed interim consolidated financial statements.

PABLO GERARDO GONZÁLEZ

President

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

(Amounts expressed in millions of Pesos, except for shares and per share amounts expressed in Pesos, or as otherwise indicated)

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP

General information

YPF Sociedad Anónima ('YPF' or the 'Company') is a stock corporation(Sociedad Anónima) incorporated under the laws of the Argentine Republic, with a registered office at Macacha Güemes 515, in the City of Buenos Aires.

YPF and its subsidiaries (the 'Group') form the leading energy group in Argentina, which operates a fully integrated oil and gas chain with leading market positions across the domestic Upstream and Downstream segments.

Structure and organization of the economic Group

The following chart shows the organizational structure, including the main companies of the Group, as of June 30, 2021:

(1)	Held directly and indirectly.

(2)	See Note 3 to the annual consolidated financial statements.

(3)	See Note 34.h to the annual consolidated financial statements.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

1.	GENERAL INFORMATION, STRUCTURE AND ORGANIZATION OF THE BUSINESS OF THE GROUP (Cont.)

Organization of the business

As of June 30, 2021, the Group carries out its operations in accordance with the following structure:

•

Upstream;

•

Gas and Power;

•

Downstream;

•

Central administration and others, which covers the remaining activities not included in the previous categories.

Activities covered by each business segment are detailed in Note 6.

Almost all operations, properties and clients are located in Argentina. However, the Group also holds participating interests in exploratory areas in Bolivia and production areas in Chile. The Group also sells lubricants and derivatives in Brazil and Chile.

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

2.a) Basis of preparation

The condensed interim consolidated financial statements of YPF for the six-month period ended June 30, 2021 are presented in accordance with International Accounting Standard ('IAS') No. 34 'Interim Financial Reporting'. These condensed interim consolidated financial statements should be read in conjunction with the annual consolidated financial statements of the Group as of December 31, 2020 (the 'annual consolidated financial statements') presented in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ('IASB').

Moreover, some additional information required by the LGS 19,550 and/or CNV's regulations have been included.

These condensed interim consolidated financial statements were approved by the Board of Directors' meeting and authorized to be issued on August 10, 2021.

These condensed interim consolidated financial statements corresponding to the six-month period ended on June 30, 2021 are unaudited. The Company´s Management believes they have included all necessary adjustments to reasonably present the results of each period on a basis consistent with the audited annual consolidated financial statements. Net Loss for the six-month period ended on June 30, 2021 does not necessarily reflect the proportion of the Group's full-year Net Loss or Profit.

2.b) Significant Accounting Policies

The most significant accounting policies are described in Note 2.b to the annual consolidated financial statements.

The accounting policies adopted in the preparation of these condensed interim consolidated financial statements are consistent with those used in the preparation of the annual consolidated financial statements, except for the valuation policy for income tax detailed in Note 17.

Functional and presentation currency

As mentioned in Note 2.b.1. to the annual consolidated financial statements, YPF has defined the U.S. dollar ('dollar') as its functional currency. Additionally, according to CNV Resolution No. 562, YPF must present its financial statements in Argentinian Pesos ('pesos').

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Effects of the translation of investments in subsidiaries, associates and joint ventures with a functional currency corresponding to a hyperinflationary economy

The results and financial position of subsidiaries with the Peso as functional currency were translated into dollars by the following procedures: all amounts (i.e., assets, liabilities, stockholders' equity items, expenditures and revenues) were translated at the exchange rate effective at the closing date of the financial statements, except for comparative amounts, which were presented as current amounts in the financial statements of the previous fiscal year (i.e., these amounts were not adjusted to reflect subsequent variations in price levels or exchange rates). Thus, the effect of the restatement of comparative amounts was recognized in other comprehensive income.

These criteria were also implemented by the Group for its investments in associates and joint ventures.

Adoption of new standards and interpretations effective as of January 1, 2021

The Group has adopted all new and revised standards and interpretations, issued by the IASB, relevant to its operations which are of mandatory and effective application as of June 30, 2021, as specified in Note 2.b.26 to the annual consolidated financial statements.

Standards and interpretations issued as from January 1, 2021 by the IASB whose implementation is not mandatory as of the closing of these condensed interim consolidated financial statements and, therefore, have not been adopted by the Group

•

Amendments to IAS 8 - Definition of accounting estimates

In February 2021, the IASB issued amendments to IAS 8, related to the definition of accounting estimates, effective for fiscal years beginning on or after January 1, 2023, on changes in accounting policies and estimates occurring as of such date, allowing for their early application.

The amendments include the definition of the concept of accounting estimates in order to help entities to distinguish between accounting policies and accounting estimates - as the previous definition was interrelated to the definition of accounting policy and could lead to an error - defining accounting estimates as 'monetary amounts in financial statements that are subject to measurement uncertainty'.

The IASB clarifies that changes in accounting estimates are accounted for prospectively, and if such changes are based both on new information which was not available when the previous measurements were made, as well as changes affecting the variables used in such estimate, they should not be treated as the correction of an error.

The Group anticipates the implementation of such amendments will not significantly affect its financial statements.

•

Amendments to IAS 1 and IFRS Practice Statement 2 - Disclosure of Accounting Policies

In February 2021, the IASB issued the following amendments to IAS 1, related to material accounting policies, applicable to fiscal years beginning on or after January 1, 2023, allowing their early application:

•

The term significant accounting policies is replaced with material accounting policies.

•

Guidance and explanatory guidance are added to help entities identify the material accounting policies required to be disclosed.

•

Accounting policies may be material, regardless of the magnitude of the amounts involved, and therefore, the nature of such policies, as well as certain conditions, such as whether they are related to the full understanding of another accounting policy deemed material, should be analyzed.

•

If the entity discloses accounting policies deemed immaterial, such disclosure should not lead to confusion.

The Group anticipates the implementation of these amendments will not significantly affect its financial statements.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

•

Amendments to IFRS 16 - Reductions in lease payments related to COVID-19 as from June 2021

In March, 2021, the IASB issued amendments applicable to fiscal periods beginning on or after 1 April, 2021, allowing their early implementation.

A lessee may decide to account for changes in lease payments as a consequence of COVID-19 pandemic arising from rent reductions in the same way it would account for the change applying IFRS 16, as if such change were not a lease modification.

This option exclusively applies to rent reductions only as a direct consequence of the COVID-19 pandemic and provided they meet the following conditions:

(i) any change in lease payments results in revised consideration for the lease that is substantially the same, or lower than, the consideration for the lease immediately preceding the change;

(ii) any reduction in lease payments affects only payments originally due until June 30, 2022 (for example, a rent reduction would meet this condition if it results in reduced lease payments until June 30, 2022 and increased lease payments beyond June 30, 2022); and

(iii) there is no significant change in the terms and conditions of the lease.

The Group expects the implementation of these amendments will have no significant impact on its financial statements.

•

Amendments to IAS 12-Deferred tax related to assets and liabilities arising from a single transaction

On May 2021, the IASB issued amendments to IAS 12 related to the initial recognition of the deferred tax in transactions in which an asset and a liability are simultaneously recognized, which are applicable to fiscal years beginning on or after January 1, 2023.

The amendments introduce an exception to the initial recognition exemption, with specifications on how entities should account for the income tax and the deferred tax in transactions in which the initial recognition of assets and liabilities give rise, at the same time, to equal amounts of taxable and deductible temporary differences. Therefore, in transactions where an asset and a liability are recognized, for example in relation to leases and abandonment or decommissioning obligations, the deferred tax generated by such transactions should be recognized.

The Group is analyzing possible effects of the implementation of these amendments could have on its financial statements.

2.c) Accounting Estimates and Judgments

The preparation of financial statements at a certain date requires Management to make estimates and assessments affecting the amount of assets and liabilities recorded, contingent assets and liabilities disclosed at such date, as well as income and expenses recorded during the period. Actual future results might differ from the estimates and assessments made as of the date of preparation of these condensed interim consolidated financial statements.

In preparing these condensed interim consolidated financial statements, significant estimates and judgments were made by Management in applying the Group's accounting policies and the main sources of uncertainty were consistent with those applied by the Group in the preparation of the annual consolidated financial statements, which are disclosed in Notes 2.b and 2.c to the annual consolidated financial statements.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

2.	BASIS OF PREPARATION OF THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS (Cont.)

Considerations concerning COVID-19 and the current economic environment

Since the beginning of 2020, the world experienced the outbreak of a virus that causes potentially deadly respiratory infections (COVID-19), which has adversely affected demand for refined products in geographical areas where the most relevant measures were implemented to control the virus' spread, which caused a lower global demand for refined products and an abnormally high volatility in this commodity.

Since the third quarter of 2020, the country resumed partially its social and economic activities, and therefore, the demand for fuels, which had significantly declined at the beginning of the pandemic, increased. For the month of June 2021, based on the gradual recovery of activity, the sales volume of gasoline and jet fuel decreased by 17% and 76%, respectively, and the sales volume of diesel increased by 3.8%, compared to June 2019.

As of the date of these condensed interim consolidated financial statements, there are some restrictions on mobility and certain activities, which are expected to gradually be relaxed as the COVID-19 vaccination plan continues and the number of contagions is reduced. Nonetheless, due to the uncertainties inherent to the scale and duration of the COVID-19 pandemic and the measures implemented to contain its spread, it is not reasonably possible to estimate the final impact this pandemic will have on the world's economy and its financial markets, on Argentina's economy, and consequently, on the Group's comprehensive results, cash flows and financial position of the Group, or its effect on access to debt markets, the contractual position with certain counterparties (including as a result of events of force majeure or other similar events under the Group's contracts), among others.

As mentioned above, the valuation of certain assets and liabilities is subject to a higher level of uncertainty, which is why the current economic context was considered in the evaluation of estimates and accounting judgments described in Note 2.c to the annual consolidated financial statements.

The Management of the Company has contemplated the impact of COVID-19 and current economic environment when preparing these consolidated financial statements and continues to consider it appropriate to adopt the going-concern basis of accounting for their presentation and valuation.

2.d) Comparative information

Amounts and other information corresponding to the year ended on December 31, 2020 and to the six-month period ended on June 30, 2020 are an integral part of these condensed interim consolidated financial statements and are intended to be read only in relation to these financial statements. Likewise, certain additional disclosures of non-significant information have been made.

3.	SEASONALITY OF OPERATIONS

Historically, the Group's results have been subject to seasonal fluctuations throughout the year, particularly as a result of the increase in natural gas sales during the winter driven by the increased demand in the residential segment. Therefore, the Group is subject to seasonal fluctuations in its sales volumes and sales prices, with higher natural gas sales in winter at a higher price. Also, seasonal fluctuations may affect the Group's gas production levels due to production cuts in non-winter periods.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

4.	ACQUISITIONS AND DISPOSITIONS

•

Assignment of CAN 100 exploration permit (offshore)

As mentioned in Note 3 to the annual consolidated financial statements, in January 2021, YPF and Shell Argentina S.A. ('Shell Argentina') and Equinor and Shell Argentina, executed the agreements under which YPF and Equinor transferred to Shell Argentina a 15% interest in CAN 100 area, respectively, YPF maintaining a 35% interest in each area. The effectiveness of such agreements was subject to certain precedent conditions, including the approval of the assignments by the SE, which were authorized by the SE on April 23, 2021. This assignment required Shell Argentina's payment of the outstanding price amounting to US$ 5 million, which was received by YPF.

5.	FINANCIAL RISK MANAGEMENT

The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, interest rate risk, and price risks), credit risk and liquidity risk. Within the Group, risk management functions are conducted in relation to financial risks associated to financial instruments to which the Group is exposed during a certain period or as of a specific date.

During the six-month period ended June 30, 2021, there were no significant changes in the administration or risk management policies implemented by the Group as described in Note 4 to the annual consolidated financial statements.

•

Liquidity risk management

Most of the Group's loans contain market-standard covenants for contracts of this nature, which include financial covenants in respect of the Group's leverage ratio and debt service coverage ratio, and events of defaults triggered by materially adverse judgements, among others. See Notes 15, 31 and 32 to the annual consolidated financial statements. The Group monitors compliance with covenants on a quaterly basis.

As of June 30, 2021, the Group is in compliace with its covenants.

Additionally, it should be noted that, under the terms and conditions of the loans that our subsidiary Metrogas has taken, the debt and interest service coverage ratio would not have been complied with, which could have accelerated the maturities of these financial liabilities. However, the financial creditors formally accepted to waive Metrogas from complying with the contractual obligation related to such financial ratios, as of June 30, 2021.

Furthermore, in terms of liquidity, it should be noted that YPF has a committed credit line as a new source of additional financing.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

6.	SEGMENT INFORMATION

The different segments in which the Group is organized take into consideration the different activities from which the Group obtains income and incurs expenses. The aforementioned organizational structure is based on the way in which the highest decision-making authority analyzes the main financial and operating magnitudes for making decisions about resource allocation and performance assessment also considering the Group's business strategy.

•

Upstream

The Upstream segment carries out all activities relating to the exploration, development and production of oil and natural gas.

Revenue is generated from (i) the sale of produced crude oil to the Downstream segment and, marginally, from its sale to third parties; (ii) the sale of produced gas to the Gas and Power segment.

•

Gas and Power

The Gas and Power segment generates its revenue from the development of activities relating to: (i) the natural gas and LNG transport and commercialization to third parties (for the six-month period ended as of June 30, 2020) and the Downstream segment, (ii) the commercial and technical operation of the LNG regasification terminal in Escobar, by hiring one regasification vessel, and (iii) the natural gas distribution.

In addition to the proceeds derived from the sale of natural gas to third parties and the intersegment, which is then recognized as a 'purchase' to the Upstream segment, and including stimulus plans for natural gas production in force (see Note 34.g to the annual consolidated financial statements), Gas and Power segment accrues a fee in its favor with the Upstream segment to carry out such commercialization.

•

Downstream

The Downstream segment develops activities relating to: (i) crude oil refining and petrochemical production, (ii) commercialization of refined and petrochemical products obtained from such processes, (iii) logistics related to the transportation of crude oil to refineries and the transportation and distribution of refined and petrochemical products to be marketed in the different sales channels.

It obtains its income from the marketing mentioned in item (ii) above, which is developed through the Retail, Industry, Agro, LPG, Chemicals and Lubricants and Specialties businesses.

It incurs in all expenses relating to the aforementioned activities, including the purchase of crude oil from the Upstream segment and third parties and the natural gas to be consumed in the refinery and petrochemical industrial complexes from the Gas and Power segment.

•

Central Administration and Others

It covers other activities, not falling into the aforementioned categories, nor do they constitute reportable business segments, mainly including corporate administrative expenses and assets and construction activities.

Sales between business segments were made at internal transfer prices established by the Group, which generally seek to approximate market prices.

Operating profit and assets for each segment have been determined after consolidation adjustments.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

6.	SEGMENT INFORMATION (Cont.)


	Upstream			Gas and Power		Downstream	Central Administration and Others	Consolidation Adjustments ⁽¹⁾			Total
For the six-month period ended June 30, 2021
Revenues from sales		2,725			80,889		459,659		12,322			(4,832	)	550,763
Revenues from intersegment sales		237,840			6,854		2,666		18,139			(265,499	)	-

Revenues		240,565			87,743		462,325		30,461			(270,331	)	550,763

Operating profit / (loss)		515			(1,844	)	49,849		(7,103	)		(5,422	)	35,995
Income from equity interests in associates and joint ventures		-			4,750		1,805		-			-		6,555
Depreciation of property, plant and equipment		107,973	⁽²⁾		1,247		20,558		3,649			-		133,427
Impairment of property, plant and equipment and intangible assets		-			-		-		-			-		-
Acquisition of property, plant and equipment		82,729			968		12,138		1,863			-		97,698
Assets		994,652			245,168		759,389		168,936			(5,440	)	2,162,705

For the six-month period ended June 30, 2020
Revenues from sales		1,074			55,476		248,015		6,652			(2,989	)	308,228
Revenues from intersegment sales		133,899			4,094		1,643		11,185			(150,821	)	-

Revenues		134,973			59,570		249,658		17,837			(153,810	)	308,228

Operating profit / (loss)		(73,128	)		(9,905	)	4,319		(10,225	)		10,293		(78,646	)
Income from equity interests in associates and joint ventures		-			2,499		1,221		-			-		3,720
Depreciation of property, plant and equipment		67,326	⁽²⁾		850		14,715		3,681			-		86,572
Impairment of property, plant and equipment		57,296			62		-		71			-		57,429
Acquisition of property, plant and equipment		36,296			1,493		7,684		2,317			-		47,790

As of December 31, 2020
Assets		914,257			209,225		646,589		152,816			338		1,923,225

(1)	Corresponds to the elimination among segments of the YPF Group.

(2)	Includes depreciation of charges for impairment of property, plant and equipment.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED

7.	FINANCIAL INSTRUMENTS BY CATEGORY

Fair value measurements

Fair value measurements are described in Note 6 to the annual consolidated financial statements.

The tables below show the Group's financial assets measured at fair value as of June 30, 2021 and December 31, 2020, and their allocation to their fair value levels:


	As of June 30, 2021
Financial Assets	Level 1		Level 2			Level 3		Total
Investments in financial assets: ^{(1) (2)}
- Public securities		9,581			-			-		9,581

	9,581			-			-		9,581

Cash and cash equivalents:
- Mutual funds		22,644			-			-		22,644

	22,644			-			-		22,644

	32,225			-			-		32,225


	As of December 31, 2020
Financial Assets	Level 1		Level 2			Level 3		Total
Investments in financial assets: ^{(1) (2)}
- Public securities		9,882			-			-		9,882

	9,882			-			-		9,882

Cash and cash equivalents:
- Mutual funds		34,586			-			-		34,586

	34,586			-			-		34,586

	44,468			-			-		44,468

(1)	Additionally, the Group has as financial assets measured at amortized cost Treasury Bills and others Public securities of 31,596 and f 19,052 as of June 30, 2021 and December 31, 2020, respectively.

(2)	Granted guarantees for contractual commitments with Exmar, see Note 33.f to the annual consolidated financial statements. As of June 30, 2021, US$ 30 million, of nominal value, were released from the said guarantee, see Note 33.e to the annual consolidated financial statements.

The Group has no financial liabilities measured at fair value.

Fair value estimates

For the six-month period ended June 30, 2021, changes in business or economic circumstances did not significantly affect the fair value of the Group's financial assets and liabilities, whether measured at fair value or amortized cost.

During the six-month period ended June 30, 2021, there were no transfers between the different hierarchies used to determine the fair value of the Group's financial instruments.

Fair value of financial assets and financial liabilities measured at amortized cost

The estimated fair value of loans, considering unadjusted listed prices (Level 1) for NO and interest rates offered to the Group (Level 3) for the other financial loans remaining, amounted to 554,893 and 560,267 as of June 30, 2021 and December 31, 2020, respectively.

The fair value of other receivables, trade receivables, investment in financial assets, cash and cash equivalents, other liabilities and accounts payable at amortized cost, do not differ significantly from their book value.

8.	INTANGIBLE ASSETS


	June 30, 2021			December 31, 2020
Net book value of intangible assets		46,574				41,245
Provision for impairment of intangible assets		(2,775	)			(2,126	)

	43,799				39,119

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

8.	INTANGIBLE ASSETS (Cont.)

The evolution of the Group's intangible assets for the six-month period ended June 30, 2021 and the year ended December 31, 2020 is as follows:


	Service concessions			Exploration rights		Other intangibles	Total
Cost		51,936			16,655		24,303	92,894
Accumulated amortization		34,290			-		20,996	55,286

Balance as of December 31, 2019		17,646			16,655		3,307	37,608

Cost
Increases		1,049			715		870	2,634
Translation effect		21,213			6,528		8,768	36,509
Adjustment for inflation ⁽¹⁾		-			-		1,070	1,070
Decreases, reclassifications and other movements		(1	)		(10,462	)	319	(10,144	)
Accumulated amortization
Increases		2,659			-		769	3,428
Translation effect		14,395			-		8,358	22,753
Adjustment for inflation ⁽¹⁾		-			-		251	251
Decreases, reclassifications and other movements		-			-		-	-
Cost		74,197			13,436		35,330	122,963
Accumulated amortization		51,344			-		30,374	81,718

Balance as of December 31, 2020		22,853			13,436		4,956	41,245

Cost
Increases		847			34		160	1,041
Translation effect		10,276			1,855		4,831	16,962
Adjustment for inflation ⁽¹⁾		-			-		1,009	1,009
Decreases, reclassifications and other movements		-			-		158	158
Accumulated amortization
Increases		1,699			-		540	2,239
Translation effect		7,148			-		4,218	11,366
Adjustment for inflation ⁽¹⁾		-			-		236	236
Decreases, reclassifications and other movements		-			-		-	-
Cost		85,320			15,325		41,488	142,133
Accumulated amortization		60,191			-		35,368	95,559

Balance as of June 30, 2021		25,129			15,325		6,120	46,574

(1)	Corresponds to adjustment for inflation of opening balances of intangible assets in subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

9.	PROPERTY, PLANT AND EQUIPMENT


	June 30, 2021			December 31, 2020
Net book value of property, plant and equipment		1,595,199				1,456,148
Provision for obsolescence of materials and equipment		(12,785	)			(11,267	)
Provision for impairment of property, plant and equipment		(63,435	)			(65,354	)

	1,518,979				1,379,527

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NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

9.	PROPERTY, PLANT AND EQUIPMENT (Cont.)

Changes in Group's property, plant and equipment for the six-month period ended June 30, 2021 and the year ended December 31, 2020 are as follows:


	Land and buildings			Mining property, wells and related equipment		Refinery equipment and petrochemical plants	Transportation equipment	Materials and equipment in warehouse			Drilling and work in progress		Exploratory drilling in progress	Furniture, fixtures and installations		Selling equipment			Infrastructure for natural gas distribution		Other property	Total
Cost		77,193			2,688,553		472,630		27,042			62,423		194,585			11,386			41,017		70,135		44,643		46,706		3,736,313
Accumulated depreciation		36,553			2,125,588		261,965		17,951			-		-			-			35,117		44,271		23,877		34,041		2,579,363

Balance as of December 31, 2019		40,640			562,965		210,665		9,091			62,423		194,585			11,386			5,900		25,864		20,766		12,665		1,156,950

Cost
Increases		62			(13,412	)	1,724		119			33,422		72,162			152			121		-		1,587		341		96,278
Translation effect		27,498			1,110,354		194,960		10,051			24,712		61,134			2,605			17,133		30,261		-		14,969		1,493,677
Adjustment for inflation ⁽¹⁾		3,600			-		-		902			421		2,575			-			537		-		16,134		3,416		27,585
Decreases, reclassifications and other movements		(589	)		93,720		13,872		205			(31,252	)	(106,547	)		(10,245	)		3,997		6,023		1,735		(516	)	(29,597	)

Accumulated depreciation
Increases		2,054			171,786		27,195		1,679			-		-			-			4,092		4,493		1,287		1,727		214,313
Translation effect		13,013			896,732		111,376		6,905			-		-			-			14,394		18,791		-		11,135		1,072,346
Adjustment for inflation ⁽¹⁾		1,801			-		-		524			-		-			-			489		-		8,629		2,497		13,940
Decreases, reclassifications and other movements		(1,647	)		(8,915	)	-		(360	)		-		-			-			(117	)	(25	)	(221	)	(569	)	(11,854	)

Cost		107,764			3,879,215		683,186		38,319			89,726		223,909			3,898			62,805		106,419		64,099		64,916		5,324,256
Accumulated depreciation		51,774			3,185,191		400,536		26,699			-		-			-			53,975		67,530		33,572		48,831		3,868,108

Balance as of December 31, 2020		55,990			694,024		282,650		11,620			89,726		223,909			3,898			8,830		38,889		30,527		16,085		1,456,148

Cost
Increases		226			205		1,782		18			24,268		70,713			369			29		-		-		88		97,698
Translation effect		13,129			536,004		94,868		4,811			10,610		28,808			460			8,531		14,852		-		7,078		719,151
Adjustment for inflation ⁽¹⁾		3,467			-		-		880			372		2,544			-			532		-		16,230		3,377		27,402
Decreases, reclassifications and other movements		(114	)		47,329		5,618		1,609			(25,267	)	(55,879	)		(1,546	)		3,121		3,251		2,195		3,000		(16,683	)

Accumulated depreciation
Increases		1,166			118,438		16,103		992			-		-			-			2,445		2,961		861		1,138		144,104
Translation effect		6,197			443,864		55,904		3,396			-		-			-			7,274		9,437		-		5,386		531,458
Adjustment for inflation ⁽¹⁾		1,799			-		-		569			-		-			-			489		-		8,500		2,568		13,925
Decreases, reclassifications and other movements		(448	)		11		-		(202	)		-		-			-			25		(4	)	(235	)	(117	)	(970	)

Cost		124,472			4,462,753		785,454		45,637			99,709		270,095			3,181			75,018		124,522		82,524		78,459		6,151,824
Accumulated depreciation		60,488			3,747,504		472,543		31,454			-		-			-			64,208		79,924		42,698		57,806		4,556,625

Balance as of June 30, 2021		63,984			715,249		312,911		14,183			99,709		270,095			3,181			10,810		44,598		39,826		20,653		1,595,199

(1)	Corresponds to adjustments for inflation of opening balances of property, plant and equipment of subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

9.	PROPERTY, PLANT AND EQUIPMENT (Cont.)

The Group capitalizes the financial cost of loans as part of the cost of the assets. For the six-month period ended June 30, 2021 and 2020, the rate of capitalization was 8.50% and 10.16%, respectively, and the amount capitalized amounted to 516 and 423, respectively, for the period mentioned above.

Set forth below is the evolution of the provision for obsolescence of materials and equipment for the six-month period ended on June 30, 2021 and the year ended December 31, 2020:


	Provision for obsolescence of materials and equipment
Balance as of December 31, 2019		6,610

Increase charged to loss		1,977
Decreases charged to profit		(1	)
Amounts incurred due to utilization		(6	)
Translation differences		2,687

Balance as of December 31, 2020		11,267

Increase charged to loss		32
Decreases charged to profit		(62	)
Amounts incurred due to utilization		(2	)
Translation differences		1,550

Balance as of June 30, 2021		12,785

Set forth below is the evolution of the provision for impairment of property, plant and equipment for the six-month period ended on June 30, 2021 and the year ended December 31, 2020:


	Provision for impairment of property, plant and equipment
Balance as of December 31, 2019		81,329

Increase charged to loss ⁽¹⁾		57,920
Decreases charged to profit ⁽¹⁾		(66,170	)
Amounts incurred due to utilization		(1,250	)
Depreciation ⁽²⁾		(42,861	)
Translation differences		36,386
Adjustment for inflation		-

Balance as of December 31, 2020		65,354

Increase charged to loss		-
Decreases charged to profit		-
Amounts incurred due to utilization		(15	)
Depreciation ⁽²⁾		(10,677	)
Translation differences		8,799
Adjustment for inflation		(26	)

Balance as of June 30, 2021		63,435

(1)	See Note 2.c to the annual consolidated financial statements.

(2)	Included in 'Depreciation of property, plant and equipment' in Note 26.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

10.

RIGHT-OF-USE ASSETS

The evolution of the Group's right-of-use assets for the six-month period ended June 30, 2021 and the year ended December 31, 2020 are as follows:


	Land and buildings			Exploitation facilities and equipment		Machinery and equipment	Gas stations		Transportation equipment			Total
Cost		1,026			23,286		32,966			5,423			13,182		75,883
Accumulated depreciation		253			6,682		3,741			777			3,039		14,492

Balance as of December 31, 2019		773			16,604		29,225			4,646			10,143		61,391


Cost
Increases		11			4,116		4,781			97			2,416		11,421
Translation differences		396			9,187		11,275			1,863			5,374		28,095
Adjustment for inflation ⁽¹⁾		7			-		-			321			-		328
Decreases, reclassifications and other movements		(90	)		(9,212	)	(23,984	)		-			(1,771	)	(35,057	)

Accumulated depreciation
Increases		325			7,315		6,336			973			6,713		21,662
Translation differences		155			3,675		2,497			380			2,525		9,232
Adjustment for inflation ⁽¹⁾		5			-		-			68			-		73
Decreases, reclassifications and other movements		(10	)		(5,260	)	(2,833	)		-			(767	)	(8,870	)

Cost		1,350			27,377		25,038			7,704			19,201		80,670
Accumulated depreciation		728			12,412		9,741			2,198			11,510		36,589

Balance as of December 31, 2020		622			14,965		15,297			5,506			7,691		44,081


Cost
Increases		9			865		1,068			492			7,094		9,528
Translation differences		180			3,801		3,425			868			2,803		11,077
Adjustment for inflation ⁽¹⁾		10			-		-			312			-		322
Decreases, reclassifications and other movements		-			(563	)	(666	)		(497	)		(8,409	)	(10,135	)

Accumulated depreciation
Increases		117			3,522		3,151			508			3,660		10,958
Translation differences		103			1,839		1,480			250			1,729		5,401
Adjustment for inflation ⁽¹⁾		9			-		-			129			-		138
Decreases, reclassifications and other movements		-			(157	)	(173	)		(197	)		(7,793	)	(8,320	)

Cost		1,549			31,480		28,865			8,879			20,689		91,462
Accumulated depreciation		957			17,616		14,199			2,888			9,106		44,766

Balance as of June 30, 2021		592			13,864		14,666			5,991			11,583		46,696

(1)	Corresponds to adjustments for inflation of opening balances of right-of-use assets of subsidiaries with the Peso as functional currency which was charged to other comprehensive income.

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

The following table shows the value of the investments in associates and joint ventures at an aggregate level, as of June 30, 2021 and December 31, 2020:


	June 30, 2021			December 31, 2020
Amount of investments in associates		12,075				9,938
Amount of investments in joint ventures		113,476				97,186
Provision for impairment of investments in associates and joint ventures		(12	)			(12	)

	125,539				107,112

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

11.

INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (Cont.)

The main movements during the six-month period ended June 30, 2021 and the year ended December 31, 2020 which affected the value of the aforementioned investments, correspond to:


	Investments in associates and joint ventures
Balance as of December 31, 2019		67,590
Income on investments in associates and joint ventures		13,270
Translation differences		26,458
Distributed dividends		(2,717	)
Adjustment for inflation ⁽¹⁾		2,511

Balance as of December 31, 2020		107,112

Income on investments in associates and joint ventures		6,555
Translation differences		14,384
Distributed dividends		(4,221	)
Adjustment for inflation ⁽¹⁾		1,709

Balance as of June 30, 2021		125,539

(1)	Corresponds to the recognition of the result for the net monetary position of associates and joint ventures with the Peso as functional currency, which was charged to other comprehensive income, as detailed in Note 2.b.1 to the annual consolidated financial statements.

The following table shows the principal amounts of the results of the investments in associates and joint ventures of the Group, calculated according to the equity method therein, for the six-month period ended June 30, 2021 and 2020. The Group has adjusted, if applicable, the values reported by these companies to adapt them to the accounting criteria used by the Group for the calculation of the equity method value in the aforementioned dates:


	Associates		Joint ventures
	For the six-month period ended June 30,		For the six-month period ended June 30,
	2021		2020		2021	2020
Net income		1,195		467		5,360	3,253
Other comprehensive income		1,719		1,143		14,374	10,833

Comprehensive income for the period		2,914		1,610		19,734	14,086

The Group does not have investments in subsidiaries with significant non-controlling interests. Likewise, the Group does not have investments in associates and joint ventures that are significant, with the exception of the investment in YPF EE.

The management information corresponding to YPF EE's assets and liabilities as of June 30, 2021 and December 31, 2020, as well as the results for the six-month period ended June 30, 2021 and 2020, are detailed below:


	June 30, 2021 ⁽¹⁾		December 31, 2020 ⁽¹⁾
Noncurrent assets		171,265		148,384
Current assets		29,757		30,659

Total assets		201,022		179,043

Noncurrent liabilities		80,487		70,190
Current liabilities		37,526		38,059

Total liabilities		118,013		108,249

Total shareholders' equity		83,009		70,794


	For the six- month period ended June 30,
	2021 ⁽¹⁾			2020 ⁽¹⁾
Revenues		19,252			9,164
Costs		(8,962	)		(4,217	)

Gross profit		10,291			4,947

Operating profit		9,921			4,088
Income from equity interests in associates and joint ventures		(275	)		64
Net financial results		(3,628	)		(312	)

Net profit before income tax		6,018			3,840

Income tax		(4,247	)		(1,440	)

Net profit		1,771			2,400

(1)	On this information, accounting adjustments have been made for the calculation of equity interest and results of YPF EE. The equity and adjusted results do not differ significantly from the YPF EE financial information disclosed here.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

12.

INVENTORIES


	June 30, 2021		December 31, 2020
Refined products		77,454			59,971
Crude oil and natural gas		38,929			33,066
Products in process		2,148			1,966
Raw materials, packaging materials and others		5,666			5,134

	124,197	⁽¹⁾		100,137	⁽¹⁾

(1)	As of June 30, 2021, and December 31, 2020, the cost of inventories does not exceed their net realizable value.

13.

OTHER RECEIVABLES


	June 30, 2021			December 31, 2020
	Noncurrent			Current			Noncurrent		Current
Receivables from services and sales of other assets		1,761				4,191			548			2,330
Tax credit and export rebates		11,743				9,390			9,283			10,060
Loans to third parties and balances with related parties ⁽¹⁾		948				2,190			814			997
Collateral deposits		2				3,932			2,062			2,152
Prepaid expenses		829				5,097			740			3,503
Advances and loans to employees		4				155			17			263
Advances to suppliers and custom agents ⁽²⁾		-				11,467			-			8,525
Receivables with partners in JO		2,202				5,294			2,334			4,143
Insurance receivables		-				-			-			1,133
Miscellaneous		650				2,678			177			1,339

	18,139				44,394			15,975			34,445
Provision for other doubtful receivables		(1,455	)			(138	)		(1,318	)		(76	)

	16,684				44,256			14,657			34,369

(1)	See Note 36 for information about related parties.

(2)	Includes, among others, advances to customs agents for the payment of taxes and import rights related to the imports of fuels and goods.

14.

TRADE RECEIVABLES


	June 30, 2021			December 31, 2020
	Noncurrent			Current			Noncurrent		Current
Accounts receivable and related parties⁽¹⁾⁽²⁾		15,064				151,160			17,392			118,665
Provision for doubtful trade receivables		(9,788	)			(10,660	)		(8,861	)		(10,519	)

	5,276				140,500			8,531			108,146

(1)	See Note 36 for information about related parties.

(2)	See Note 24 for information about credits for contracts included in trade receivables.

Set forth below is the evolution of the provision for doubtful trade receivables for six-month period ended on June 30, 2021 and for the fiscal year ended December 31, 2020:


	Provision for doubtful trade receivables
	Noncurrent			Current
Balance as of December 31, 2019		-			6,580

Increases charged to expenses		2,228			10,818
Decreases charged to income		-			(729	)
Amounts incurred due to utilization		-			-
Reclassifications and other movements		6,633			(6,633	)
Net exchange and translation differences		-			715
Result from net monetary position ⁽¹⁾		-			(232	)

Balance as of December 31, 2020		8,861	⁽²⁾		10,519

Increases charged to expenses		927			1,812
Decreases charged to income		-			(854	)
Amounts incurred due to utilization		-			(1,005	)
Reclassifications and other movements		-			(58	)
Net exchange and translation differences		-			358
Result from net monetary position ⁽¹⁾		-			(112	)

Balance as of June 30, 2021		9,788	⁽²⁾		10,660

(1)	Includes adjustment for inflation of opening balances of the provision for doubtful trade receivables in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the fiscal year, which was charged to results.

(2)	Includes 8,861 corresponding to credits with natural gas distributors for the accumulated daily differences pursuant to Decree No. 1053/2018. See Note 34.f. to the annual consolidated financial statements.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

15.

CASH AND CASH EQUIVALENTS


	June 30, 2021		December 31, 2020
Cash and banks		19,151			14,843
Short-term investments		9,874			5,189
Financial assets at fair value with changes in results⁽¹⁾		22,644			34,586

	51,669			54,618

(1)	See Note 7.

16.

PROVISIONS

Changes in the Group's provisions for the six-month period ended June 30, 2021 and for the fiscal year ended December 31, 2020 are as follows:


	Provision for lawsuits and contingencies			Provision for environmental liabilities		Provision for hydrocarbon wells abandonment obligations	Total
	Noncurrent			Current		Noncurrent	Current		Noncurrent			Current		Noncurrent	Current
Balance as of December 31, 2019		43,833			1,285		3,828			1,910			97,107		2,265		144,768		5,460

Increases charged to expenses		8,917			219		3,428			-			11,117		-		23,462		219
Decreases charged to income		(6,331	)		(1,039	)	(224	)		-			(5,249	)	-		(11,804	)	(1,039	)
Amounts incurred due to utilization		(43	)		(132	)	-			(1,330	)		-		(1,298	)	(43	)	(2,760	)
Reclassifications and other movements		(5,447	)		1,103		(2,026	)		2,026			(13,572	)	(346	)	(21,045	)	2,783
Net exchange and translation differences		9,475			498		525			12			41,185		960		51,185		1,470
Result from net monetary position ⁽¹⁾		(35	)		-		-			-			-		-		(35	)	-

Balance as of December 31, 2020		50,369			1,934		5,531			2,618			130,588		1,581		186,488		6,133

Increases charged to expenses		5,001			180		710			-			7,179		-		12,890		180
Decreases charged to income		(314	)		(955	)	(11	)		-			-		-		(325	)	(955	)
Amounts incurred due to utilization		(18	)		(64	)	-			(1,014	)		-		(636	)	(18	)	(1,714	)
Reclassifications and other movements		(975	)		1,003		(1,673	)		1,673			(632	)	632		(3,280	)	3,308
Net exchange and translation differences		4,886			244		216			4			18,295		221		23,397		469
Result from net monetary position ⁽¹⁾		1			-		-			-			-		-		1		-

Balance as of June 30, 2021		58,950			2,342		4,773			3,281			155,430		1,798		219,153		7,421

(1)	Includes adjustment for inflation of opening balances of provisions in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the period, which was charged to results.

Provisions for lawsuits, claims and environmental liabilities are described in Note 15 to the annual consolidated financial statements. Updates for the six-month period ended June 30, 2021 are described below:

16.a) Provision for lawsuits and contingencies

16.a.1) Claims arising from restrictions in the natural gas market

•

Transportadora de Gas del Norte S.A. ('TGN')

On March 5, 2021, the Company answered the Appellate Brief filed by TGN in the case for contractual default.

As of the date of these condensed interim consolidated financial statements, the case for contractual default and the claim for damages were set for rendering judgment.

16.a.2) Claims within the jurisdiction of the CNDC

On December 22, 2017, the Company had filed an extraordinary appeal against the judgment of the Court of Appeals, which was granted, and the file was submitted to the CSJN. On June 2, 2021, the CSJN forwarded the file to the National Attorney General's Office for its opinion on the legal merits of the extraordinary appeal.

16.a.3) Tax claims

•

Dispute over the cost deduction for hydrocarbon well abandonment

On June 9, 2021 YPF waived the statute of limitations for fiscal year 2014 (see Note 15.a.5 to the annual consolidated financial statements) to allow the AFIP to analyze the legal grounds for the defense filed by the Company on December 21, 2018 in the context of the administrative proceeding. In its defense, the Company claimed that well abandonment costs should be deducted from the income tax in accordance with the accrual criteria, from the moment well drilling operations begin.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

17.

INCOME TAX

According to IAS 34, income tax expense is recognized in each interim period based on the best estimate of the effective income tax rate expected at the end of the fiscal year. The amounts calculated for income tax expense for the six-month period ended June 30, 2021 may need to be adjusted in the subsequent period in case the projected effective tax rate estimate is modified based on new elements of judgment.

The calculation of the income tax expense accrued for the six-month period ended June 30, 2021 and 2020 is as follows:


	For the six-month period ended June 30,
	2021			2020
Current income tax		(781	)			(623	)
Deferred income tax		(75,115	)			2,261

	(75,896	)			1,638

The reconciliation between the charge to net income for income tax for the six-month period ended June 30, 2021 and 2020 and the one that would result from applying the prevailing tax rate on net income before income tax arising from the condensed interim consolidated statements of comprehensive income for each period is as follows:


	For the six-month period ended June 30,
	2021			2020
Net income before income tax		27,387			(80,335	)
Average tax rate		25.49	%⁽⁴⁾		30.00	%

Average tax rate applied to net income before income tax		(6,981	)		24,101
Effect of the valuation of property, plant and equipment and intangible assets, net		8,009			(24,350	)
Effect of exchange differences and other results associated to the valuation of the currency, net ⁽¹⁾		(17,872	)		2,325
Effect of the valuation of inventories		(1,657	)		(2,694	)
Income on investments in associates and joint ventures		1,639			1,116
Effect of tax rate change		(53,480	)⁽³⁾		(3,800	)⁽²⁾
Miscellaneous		(5,554	)		4,940

Income tax		(75,896	)		1,638

(1)	Includes the effect of tax inflation adjustments.

(2)	Corresponds to the remeasurement of deferred income tax at the estimated rate at the date of it reversal. See Notes 2.b.15 and 34.j to the annual consolidated financial statements.

(3)

Includes 46,150 for the effect of the change in the tax rate on initial deferred balances and 7,330 for the remeasurement of deferred tax balances of the current period at the estimate rate effective as of the date of their reversal, corresponding to the change established under Law No. 27,630. See Note 35.f.

(4)	Corresponds to the average effective tax rate of YPF and its subsidiaries in compliance with amendment to Law No. 27,630, see Note 35.f.

The Group has classified 968 as current income tax payable, which mainly include 513 corresponding to the 12 installments related to the payment facility plan related to the dispute for cost deduction for hydrocarbon wells abandonment (see Note 15 to the annual consolidated financial statements). Also, the Group has classified 3,313 as non-current income tax payable, which mainly include 3,295 corresponding to the 77 installments related to the mentioned plan.

Breakdown of deferred tax as of June 30, 2021 and December 31, 2020 is as follows:


	June 30, 2021			December 31, 2020
Deferred tax assets
Provisions and other non-deductible liabilities		17,159			14,701
Tax losses carryforward		41,761			82,601
Miscellaneous		1,942			1,629

Total deferred tax assets		60,862			98,931

Deferred tax liabilities
Property, plant and equipment		(177,365	)		(144,900	)
Adjustment for tax inflation		(70,774	)		(67,107	)
Miscellaneous		(6,636	)		(3,904	)

Total deferred tax liabilities		(254,775	)		(215,911	)

Total Net deferred tax		(193,913	)⁽¹⁾		(116,980	)⁽¹⁾

(1)

Includes (1,818) and (1,957) as of June 30, 2021 and December 31, 2020, respectively, corresponding to adjustment for inflation of the opening deferred liability of subsidiaries with the Peso as functional currency with effect in other comprehensive income and the adjustment for inflation of the period, which was charged to results.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

17.

INCOME TAX (Cont.)

The Group's tax loss carry-forwards not recognized as of June 30, 2021 amounted to 6,753, maturing between 2021 and 2025.

As of June 30, 2021 and December 31, 2020 the Group has classified as deferred tax assets 2,532 and 2,629, respectively, and as deferred tax liability 196,445 and 119,609, respectively, all of which arise from the net deferred tax balances of each of the separate companies included in these condensed interim consolidated financial statements.

As of June 30, 2021 and December 31, 2020, the causes that generate charges to other comprehensive income, did not create temporary differences for income tax.

18.

TAXES PAYABLE


	June 30, 2021		December 31, 2020
	Noncurrent		Current			Noncurrent		Current
Value Added Tax		-			3,103			-		3,523
Withholdings and perceptions		-			2,874			-		1,838
Royalties		-			4,719			-		3,886
Tax on Fuels		-			6,258			-		3,142
Turnover tax		-			610			-		227
Miscellaneous		194			2,259			215		3,148

	194			19,823			215		15,764

19.

SALARIES AND SOCIAL SECURITY


	June 30, 2021		December 31, 2020
	Noncurrent		Current			Noncurrent		Current
Salaries and social security		-			3,482			-		3,318
Bonuses and incentives provision		-			3,208			-		4,403
Vacation provision		-			6,352			-		4,812
Other employee benefits ⁽¹⁾		4,434			3,718			3,860		2,401

	4,434			16,760			3,860		14,934

(1)	Includes the voluntary retirement plan executed by the Company.

20.

LEASE LIABILITIES

June 30, 2021

December 31, 2020

Noncurrent

Current

Noncurrent

Current

Lease liabilities

26,476

22,377

24,172

22,098

The evolution of the Group's leases liabilities for the six-month period ended June 30, 2021 and for the fiscal year ended December 31, 2020, are as follows:


	Lease liabilities
Balance as of December 31, 2019		61,780

Leases increase		11,421
Financial accretion		5,706
Leases decrease		(28,914	)
Payments		(23,290	)
Exchange and translation differences, net		19,548
Result from net monetary position ⁽¹⁾		19

Balance as of December 31, 2020		46,270

Leases increase		9,528
Financial accretion		2,594
Leases decrease		(1,856	)
Payments		(13,980	)
Exchange and translation differences, net		6,291
Result from net monetary position ⁽¹⁾		6

Balance as of June 30, 2021		48,853

(1)	Includes adjustment for inflation of opening balances of lease liabilities in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the period, which was charged to results.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

21.

LOANS


						June 30, 2021	December 31, 2020
	Interest rate⁽¹⁾			Maturity		Noncurrent	Current		Noncurrent			Current
Pesos:
Negotiable obligations ⁽³⁾		16.50% - 40.37%			2021-2024		6,740			13,509			6,435	17,254
Export pre-financing		43.50% -43.50%			2021		-			1,677			-	5,465
Loans		38.00% -49.59%			2021-2024		13,441			7,463			5,375	6,818

			20,181			22,649		11,810			29,537

Currencies other than the Peso:
Negotiable obligations ⁽²⁾		0.00% -10.00%			2022-2047		555,792			60,272			496,377	62,052
Export pre-financing		2.50% -6.20%			2021-2022		-			29,310			12,608	25,662
Loans		0.83% -8.94%			2021-2027		13,011			9,627			6,780	33,480

			568,803			99,209		515,765			121,194

			588,984			121,858		527,575			150,731

(1)	Nominal annual interest rate as of June 30, 2021.

(2)	Includes 30,107 and 20,946 as of June 30, 2021 and December 31, 2020, respectively, of nominal value of NO that will be canceled in pesos at the applicable exchange rate in accordance with the terms of the series issued.

(3)	Includes 4,602 of nominal value of NO that will be canceled in dollars at the applicable exchange rate according to the conditions of the issued series.

Set forth below is the evolution of the loans for six-month period ended on June 30, 2021 and for the fiscal year ended December 31, 2020:


	Loans
Balance as of December 31, 2019		526,760

Proceed from loans		139,018
Payments of loans		(174,913	)
Payments of interest		(60,681	)
Accrued interest ⁽¹⁾		58,979
Net exchange differences and translation		187,455
Result from debt exchange ⁽²⁾		2,097
Result from net monetary position ⁽³⁾		(409	)

Balance as of December 31, 2020		678,306

Proceed from loans		46,921
Payments of loans		(98,518	)
Payments of interest		(29,944	)
Accrued interest ⁽¹⁾		30,692
Net exchange differences and translation		85,544
Result from debt exchange		(1,855	)
Result from net monetary position ⁽³⁾		(304	)

Balance as of June 30, 2021		710,842

(1)	Includes capitalized financial costs.

(2)	See Note 20 to the annual consolidated financial statements.

(3)	Includes adjustment for inflation of opening balances of loans in subsidiaries with the Peso as functional currency which was charged to other comprehensive income and the adjustment for inflation of the fiscal year, which was charged to results.

Exchange of NO

In the context of the foreign exchange restrictions established by Communication 'A' 7,106 of the BCRA (see Note 34.k to the annual consolidated financial statements) and after formal consultation to the BCRA, which was answered by the negative, with respect to possibility of complying to said regulation through the refinancing reached in July 2020 in relation to the Class XLVII NOs with maturity in 2021 (see Note 20 to the annual consolidated financial statements), and with the additional objective of easing the financial commitments of the Company for the next 2 years, on January 7, 2021, YPF launched an exchange offer of Classes XLVII, XXVIII, XIII, XXXIX, LIII, I and LIV NOs (the 'Existing Negotiable Obligations', see Note 20 to the annual consolidated financial statements), for new Classes XVI, XVII and XVIII NOs (the 'New Negotiable Obligations') denominated in dollars at a step up fixed interest rate, ranging from 1.5% to 9%, repayable between 2023 and 2033, including an initial cash payment for Class XLVII NOs.

The New Negotiable Obligations contain usual covenants, similar to those of the Existing Negotiable Obligations. In addition, Class XVI NOs are secured by (i) the assignment of collection rights arising from the export of certain exportable products under sale agreements entered into by YPF with widely recognized market traders; and (ii) a first pledge on YPF EE shares representing 50% of the outstanding capital stock and voting rights in this company, as long as at least 50% of the principal of Class XVI NOs remains outstanding.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

21. LOANS (Cont.)

On February 11, 2021, upon expiration of the early participation period for holders of Class XLVII NOs and the exchange offer for the rest of the Existing Negotiable Obligations, YPF announced that it had reached a global participation to the exchange of 32% and 59.8% of Class XLVII NOs. With such results, and taking into account that the refinancing of principal and interest of all Existing Negotiable Obligations that were included in the exchange largely exceeds the required 60% refinancing of the Class XLVII NO, on that same day the BCRA approved YPF' s access to the free exchange market to pay the cash component offered to holders that submitted Class XLVII NO in exchange, and to pay Class XLVII NOs that were not exchanged at their maturity. In addition, the BCRA authorized access to the foreign exchange market for the payment of all Class VIII NOs due in March 2021 in the amount of approximately US$ 9 million.

Therefore, on February 12, 2021, and March 1 (closing date for late participation of Class XLVII NOs holders), YPF issued new Class XVI, XVII and XVIII NOs for a total principal amount of US$ 775.8 million, US$ 747.8 million and US$ 575.6 million, respectively, and tender instructions were received to submit the Existing Negotiable Obligation as detailed below:

•

Class XLVII NO for a principal amount of US$ 247.3 million.

•

Class XXVIII NO for a principal amount of US$ 656.4 million.

•

Class XIII NO for a principal amount of US$ 201.7 million.

•

Class XXXIX NO for a principal amount of US$ 368.2 million.

•

Class LIII NO for a principal amount of US$ 190.7 million.

•

Class I NO for a principal amount of US$ 101.0 million.

•

Class LIV NO for a principal amount of US$ 213.4 million .

YPF assessed whether the instruments subject to exchange were substantially different, considering both qualitative (e.g., currency, term, rate, among others) and quantitative aspects (if the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received, and discounted using the original effective interest rates, is at least 10% different from the discounted present value of the remaining cash flows of the original financial liabilities). In this regard, the Company recognized the exchange of the NOs as a debt modification according to IFRS 9 due to the instruments subject to exchange were not substantially different. As a result of the transaction, YPF recognized a profit of 1,855 (see Note 28).

Issuance of NOs

On February 26, 2021, the Company issued (i) Class XIV Additional NOs denominated in dollars and payable in pesos at the applicable exchange rate, at a 2% fixed interest rate, due December 4, 2023 for a principal amount of US$ 75.6 million and (ii) Class XIX NOs denominated in purchase value units ('UVA' for its acronym in Spanish), at a 3.5% fixed interest rate, due 42 months after the issuance and settlement date, for a principal amount of UVA 60.5 million.

Repurchase of NOs

On April 19 and April 21, 2021, YPF has repurchased Class XI NOs for a total amount of 1,215, equivalent to a nominal value of US$ 13.6 million, which will be held in its portfolio. The NOs maturing in November 2021, were issued by the Company in May 2020 under the Frequent Issuer Regime. The repurchase has been made at an average price equivalent to 96.25% of their nominal value.

On May 12 and May 14, 2021, YPF has repurchased Class XI NOs for a total amount of 1,275, equivalent to a nominal value of US$ 13.9 million, which will be held in its portfolio. The NOs maturing in November 2021, were issued by the Company in May 2020 under the Frequent Issuer Regime. The repurchase has been made at an average price equivalent to 97.07% of their nominal value.

On July 22, 2021, YPF has repurchased Class XII NOs for a total amount of 339, equivalent to a nominal value of US$ 3.5 million, which will be held in its portfolio. The NOs maturing in June 2022, were issued by the Company in June 2020 under the Frequent Issuer Regime. The repurchase has been made at an average price with accrued interest equivalent to 100.34% of their nominal value.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

22.

OTHER LIABILITIES


	June 30, 2021		December 31, 2020
	Noncurrent		Current			Noncurrent		Current
Extension of concessions		767			776			710		711
Liabilities for contractual claims⁽¹⁾		135			5,946			2,250		7,250
Miscellaneous		1			1,610			1		1,101

	903			8,332			2,961		9,062

(1)	See Note 15 and 33.f to the annual consolidated financial statements.

23.

ACCOUNTS PAYABLE


	June 30, 2021		December 31, 2020
	Noncurrent		Current			Noncurrent		Current
Trade payable and related parties⁽¹⁾		700			174,481			682		136,930
Guarantee deposits		43			820			28		766
Payables with partners of JO		316			4,194			-		5,080
Miscellaneous		-			1,627			-		1,607

	1,059			181,122			710		144,383

(1)	For more information about related parties, see Note 36.

24.

REVENUES


	For the six-month period ended June 30,
	2021			2020
Sales of goods and services		558,025				314,439
Government incentives⁽¹⁾		11,615				4,330
Turnover tax		(18,877	)			(10,541	)

	550,763				308,228

(1)	See Note 36.

The Group's transactions and the main revenues are described in Note 6. The Group's revenues are derived from contracts with customers, except for Government incentives.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

24.

REVENUES (Cont.)

•

Breakdown of revenues

•

Type of good or service


	For the six-month period ended June 30, 2021
	Upstream		Downstream			Gas and Power		Central Administration and others	Total
Diesel		-			184,066			-		-		184,066
Gasolines		-			112,019			-		-		112,019
Natural Gas ⁽¹⁾		-			645			67,525		-		68,170
Crude Oil		-			2,802			-		-		2,802
Jet fuel		-			10,451			-		-		10,451
Lubricants and by-products		-			22,077			-		-		22,077
Liquefied Petroleum Gas		-			17,451			-		-		17,451
Fuel oil		-			11,308			-		-		11,308
Petrochemicals		-			20,913			-		-		20,913
Fertilizers and crop protection products		-			28,836			-		-		28,836
Flours, oils and grains		-			31,983			-		-		31,983
Asphalts		-			4,631			-		-		4,631
Goods for resale at gas stations		-			2,746			-		-		2,746
Income from services		-			-			-		3,114		3,114
Income from construction contracts		-			-			-		5,660		5,660
Virgin naphtha		-			6,476			-		-		6,476
Petroleum coke		-			7,417			-		-		7,417
LNG Regasification		-			-			1,717		-		1,717
Other goods and services		2,780			5,200			3,904		4,304		16,188

	2,780			469,021			73,146		13,078		558,025


	For the six-month period ended June 30, 2020
	Upstream		Downstream			Gas and Power		Central Administration and others	Total
Diesel		-			110,825			-		-		110,825
Gasolines		-			59,619			-		-		59,619
Natural Gas ⁽¹⁾		-			306			45,720		-		46,026
Crude Oil		-			5,868			-		-		5,868
Jet fuel		-			12,068			-		-		12,068
Lubricants and by-products		-			7,833			-		-		7,833
Liquefied Petroleum Gas		-			6,323			-		-		6,323
Fuel oil		-			4,306			-		-		4,306
Petrochemicals		-			9,533			-		-		9,533
Fertilizers and crop protection products		-			9,732			-		-		9,732
Flours, oils and grains		-			14,071			-		-		14,071
Asphalts		-			1,049			-		-		1,049
Goods for resale at gas stations		-			1,674			-		-		1,674
Income from services		-			-			-		1,308		1,308
Income from construction contracts		-			-			-		4,277		4,277
Virgin naphtha		-			3,285			-		-		3,285
Petroleum coke		-			2,437			-		-		2,437
LNG Regasification		-			-			3,224		-		3,224
Other goods and services		1,098			3,170			5,210		1,503		10,981

	1,098			252,099			54,154		7,088		314,439

(1)	Includes 52,065 and 32,841 corresponding to sales of natural gas produced by the Company for the six-month period ended June 30, 2021 and 2020, respectively.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

24.

REVENUES (Cont.)

•

Sales Channels


	For the six-month period ended June 30, 2021
	Upstream		Downstream			Gas and Power		Central Administration and others	Total
Gas Stations		-			199,891			-		-		199,891
Power Plants		-			8,587			19,247		-		27,834
Distribution Companies		-			-			10,252		-		10,252
Retail distribution of natural gas		-			-			14,956		-		14,956
Industries, transport and aviation		-			80,999			23,070		-		104,069
Agriculture		-			92,576			-		-		92,576
Petrochemical industry		-			28,965			-		-		28,965
Trading		-			23,458			-		-		23,458
Oil Companies		-			22,782			-		-		22,782
Commercialization of liquefied petroleum gas		-			5,982			-		-		5,982
Other sales channels		2,780			5,781			5,621		13,078		27,260

	2,780			469,021			73,146		13,078		558,025


	For the six-month period ended June 30, 2020
	Upstream		Downstream			Gas and Power		Central Administration and others	Total
Gas Stations		-			114,585			-		-		114,585
Power Plants		-			-			6,007		-		6,007
Distribution Companies		-			-			13,194		-		13,194
Retail distribution of natural gas		-			-			12,266		-		12,266
Industries, transport and aviation		-			44,623			14,559		-		59,182
Agriculture		-			41,307			-		-		41,307
Petrochemical industry		-			10,674			-		-		10,674
Trading		-			21,182			-		-		21,182
Oil Companies		-			12,160			-		-		12,160
Commercialization of liquefied petroleum gas		-			2,933			-		-		2,933
Other sales channels		1,098			4,635			8,128		7,088		20,949

	1,098			252,099			54,154		7,088		314,439

•

Target Market

Sales contracts in the domestic market resulted in 489,444 and 269,251 for the six-month period ended June 30, 2021 and 2020, respectively.

Sales contracts in the international market resulted in 68,581 and 45,188 for the six-month period ended June 30, 2021 and 2020, respectively.

•

Contract balances

The following table reflects information regarding credits, contract assets and contract liabilities:


	June 30, 2021		December 31, 2020
	Noncurrent		Current		Noncurrent	Current
Credits for contracts included in Trade Receivables		12,931		143,105		15,505	98,832
Contract assets		-		1,401		-	871
Contract liabilities		-		7,432		-	6,824

Contract assets are mainly related to the work carried out by the Group under construction contracts.

Contract liabilities are mainly related to advances received from customers under the contracts for the sale of commodities, fuels, crude oil, methanol, lubricants and by-products, diesel and natural gas, among others.

During the six-month period ended on June 30, 2021 and 2020 the Group has recognized 5,270 and 4,448, respectively, in revenues from ordinary activities arising from contracts entered into with customers in the statement of comprehensive income, which have been included in the balance for contract liabilities at the beginning of the fiscal year.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

25.

COSTS


	For the six-month period ended June 30,
	2021			2020
Inventories at beginning of year		100,137				80,479
Purchases		153,756				79,014
Production costs⁽¹⁾		304,064				219,111
Translation effect		13,043				15,217
Adjustment for inflation⁽²⁾		668				199
Inventories at end of the period		(124,197	)			(101,284	)

	447,471				292,736

(1)	See Note 26,

(2)	Corresponds to adjustment for inflation of inventories' opening balances of subsidiaries with the Peso as functional currency, which was charged to other comprehensive income.

26.

EXPENSES BY NATURE

The Group presents the condensed interim consolidated financial statement of comprehensive income by classifying expenses according to their function as part of the 'Costs', 'Administrative expenses', 'Selling expenses' and 'Exploration expenses' lines. The following additional information is disclosed as required, on the nature of the expenses and their relation to the function within the Group for the six-month period ended June 30, 2021 and 2020:


	For the six-month period ended June 30, 2021
	Production costs ⁽³⁾		Administrative expenses ⁽²⁾			Selling expenses		Exploration expenses		Total
Salaries and social security taxes		23,368			6,339			3,669			261		33,637
Fees and compensation for services		1,852			5,939			1,049			5		8,845
Other personnel expenses		6,103			436			237			103		6,879
Taxes, charges and contributions		5,271			309			14,075	⁽¹⁾		91		19,746
Royalties, easements and canons		34,165			-			42			77		34,284
Insurance		3,398			205			144			-		3,747
Rental of real estate and equipment		4,851			17			778			-		5,646
Survey expenses		-			-			-			166		166
Depreciation of property, plant and equipment		126,900			2,706			3,821			-		133,427
Amortization of intangible assets		1,780			434			25			-		2,239
Depreciation of right-of-use assets		8,456			8			518			-		8,982
Industrial inputs, consumable materials and supplies		15,739			137			310			3		16,189
Operation services and other service contracts		19,493			312			1,950			108		21,863
Preservation, repair and maintenance		32,870			919			957			11		34,757
Unproductive exploratory drillings		-			-			-			54		54
Transportation, products and charges		14,153			104			12,702			-		26,959
Provision for doubtful trade receivables		-			-			1,885			-		1,885
Publicity and advertising expenses		-			1,529			442			-		1,971
Fuel, gas, energy and miscellaneous		5,665			643			3,362			84		9,754

	304,064			20,037			45,966			963		371,030

(1)	Includes 10,104 corresponding to export withholdings.

(2)

Includes 194 corresponding to fees and remunerations of Directors and Statutory Auditors of YPF's Board of Directors. On April 30, 2021, the General Ordinary and Extraordinary Shareholders' Meeting of YPF resolved to ratify the fees of 194 corresponding to fiscal year 2020 and to approve the approximate sum of 463 as fees with respect to fees and remunerations for the fiscal year 2021.

(3)	The expense recognized in the condensed interim consolidated statement of comprehensive income corresponding to research and development activities amounted to 730.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

26.

EXPENSES BY NATURE (Cont.)


	For the six-month period ended June 30, 2020
	Production costs ⁽³⁾		Administrative expenses ⁽²⁾			Selling expenses		Exploration expenses		Total
Salaries and social security taxes		17,211			4,883			2,644			186		24,924
Fees and compensation for services		1,207			4,464			792			71		6,534
Other personnel expenses		4,240			421			208			22		4,891
Taxes, charges and contributions		3,536			157			7,346	⁽¹⁾		-		11,039
Royalties, easements and canons		19,644			-			52			37		19,733
Insurance		2,207			136			138			-		2,481
Rental of real estate and equipment		3,780			17			785			-		4,582
Survey expenses		-			-			-			210		210
Depreciation of property, plant and equipment		82,384			1,634			2,554			-		86,572
Amortization of intangible assets		1,138			253			18			-		1,409
Depreciation of right-of-use assets		8,237			-			442			-		8,679
Industrial inputs, consumable materials and supplies		9,479			37			154			21		9,691
Operation services and other service contracts		20,450			319			1,680			250		22,699
Preservation, repair and maintenance		26,817			570			771			18		28,176
Unproductive exploratory drillings		-			-			-			16		16
Transportation, products and charges		11,393			1			8,126			-		19,520
Provision for doubtful trade receivables		-			-			9,412			-		9,412
Publicity and advertising expenses		-			623			172			-		795
Fuel, gas, energy and miscellaneous		7,388			617			1,750			25		9,780

	219,111			14,132			37,044			856		271,143

(1)	Includes 4,769 corresponding to export withholdings.

(2)

Includes 44 corresponding to fees and remunerations of Directors and Statutory Auditors of YPF's Board of Directors. On April 30, 2020, the General Ordinary and Extraordinary Shareholders' Meeting of YPF resolved to ratify the fees of 83 corresponding to fiscal year 2019 and to approve the approximate sum of 123 as fees with respect to fees and remunerations for the fiscal year 2020.

(3)	The expense recognized in the condensed interim consolidated statement of comprehensive income corresponding to research and development activities amounted to 551.

27.

OTHER NET OPERATING RESULTS


	For the six-month period ended June 30,
	2021			2020
Result for sale of participation in areas		472				12,233	⁽¹⁾
Result from sale of assets held for disposal		3,121				-
Construction incentive ⁽³⁾		573				-
Lawsuits		(4,119	)			(431	)
Insurance		-				3,189	⁽²⁾
Miscellaneous		(378	)			332

	(331	)			15,323

(1)	See Note 3 to the annual consolidated financial statements.

(2)	Corresponds mainly to the total and definitive compensation for the damages that occurred in the Bandurria Sur and Loma La Lata Oeste areas.

(3)	See Note 36.

28.

NET FINANCIAL RESULTS


	For the six-month period ended June 30,
	2021			2020
Financial income
Interest income		8,271			2,652
Exchange differences		33,108			47,543
Financial accretion		282			1,428

Total financial income		41,661			51,623

Financial loss
Interest loss		(34,511	)		(31,150	)
Exchange differences		(20,628	)		(28,699	)
Financial accretion		(12,632	)		(7,965	)

Total financial costs		(67,771	)		(67,814	)

Other financial results
Results on financial assets at fair value with changes in results		4,030			(5	)
Results from derivative financial instruments		(332	)		(432	)
Result from net monetary position		5,394			2,696
Result from debt exchange ⁽¹⁾		1,855			-
Results from transactions with financial assets		-			8,523

Total other financial results		10,947			10,782

Total net financial results		(15,163	)		(5,409	)

(1)	See Note 21.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

29.

INVESTMENTS IN JOINT OPERATIONS

The assets and liabilities as of June 30, 2021 and December 31, 2020, and expenses for the six-month period ended on June 30, 2021 and 2020, of JO and other agreements in which the Group participates are as follows:


	June 30, 2021		December 31, 2020
Noncurrent assets⁽¹⁾		318,020		282,381
Current assets		7,341		6,122

Total assets		325,361		288,503

Noncurrent liabilities		24,431		21,136
Current liabilities		30,979		21,574

Total liabilities		55,410		42,710

(1)	It does not include charges for impairment of property, plant and equipment because they are recorded by the partners participating in the JO.


	For the six-month period ended June 30,
	2021		2020
Production cost		58,543		39,280
Exploration expenses		221		28

30.

SHAREHOLDERS' EQUITY

The Company's subscribed capital as of June 30, 2021, is 3,926 and 7 treasury shares represented by 393,312,793 book-entry shares of common stock and divided into four classes of shares (A, B, C and D), with a par value of Pesos 10 and 1 vote per share. These shares are fully subscribed, paid-in and authorized for stock exchange listing.

As of June 30, 2021, there are 3,764 Class A outstanding shares. As long as any Class A share remains outstanding, the affirmative vote of Argentine Government is required for: 1) mergers, 2) acquisitions of more than 50% of YPF shares in an agreed or hostile bid, 3) transfers of all the YPF's production and exploration rights, 4) the voluntary dissolution of YPF or 5) change of corporate and/or tax address outside the Argentine Republic. Items 3) and 4) also require prior approval by the Argentine Congress.

The General Ordinary and Extraordinary Shareholders' Meeting was held on April 30, 2021 and approved the financial statements of YPF for the fiscal year ended December 31, 2020, and additionally, approved the following resolution in relation to the allocation of retained earnings as of December 31, 2020: a) to completely eliminate the reserve for future dividends, the reserve for the purchase of treasury shares and the reserve for investments; b) to partly absorb accumulated losses in retained earnings up to 13,184 against the amounts corresponding to the released reserves for up to such amount.

31.

EARNINGS PER SHARE

The following table shows the net income and the number of shares that have been used for the calculation of the basic and diluted earnings per share:


	For the six-month period ended June 30,
	2021			2020
Net loss		(47,083	)		(78,418	)
Average number of shares outstanding		392,572,705			392,396,730
Basic and diluted earnings per share		(119.93	)		(199.84	)

Basic and diluted earnings per share are calculated as shown in Note 2.b.13 to the annual consolidated financial statements.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

32.

ISSUES RELATED TO MAXUS ENTITIES

Issues related to Maxus entities are described in Note 31 to the annual consolidated financial statements. Updates for the six-month period ended June 30, 2021 are described below:

•

Maxus Liquidating Trust Claim

On April 1, 2021, a hearing was held in relation to the Motion to Disqualify, where the parties submitted their respective arguments.

On April 6, 2021, the Bankruptcy Court denied the Motion to Disqualify filed by YPF and ordered the parties to file a new procedural schedule proposal by April 16, 2021.

On April 20, 2021, YPF appealed the decision of the Bankruptcy Court rejecting the Motion to Disqualify filed by YPF. On the same date, the Bankruptcy Court adopted the procedural schedule proposed by the parties with certain adjustments, ordering that the fatc discovery shall conclude by August 16, 2021 and the expert discovery by December 17, 2021.

On May 10, 2021, the Bankruptcy Court authorized YPF to file a petition with the Court of Appeals for the Third Circuit requesting a decision on the appeal filed by YPF on April 20, 2021, against the Bankruptcy Court's decision dismissing the Motion to Disqualify.

On June 1, 2021, YPF filed a petition with the Court for the Third Circuit requesting a decision by such Court regarding said appeal. On July 30, the Court of Appeals for the Third Circuit admitted YPF's petition.

As the proceeding move forward, and given the complexity of the claims and the evidence to be produced by the parties, the Company will continue reassessing the status of the case and its impact on the Group's results and financial position.

The Company, together with the other companies that are a party to the Claim, will defend itself in compliance with the applicable legal procedures and available defenses.

33.

CONTINGENT ASSETS AND LIABILITIES

Contingent liabilities and contingent assets are described in Note 32 to the annual consolidated financial statements.

33.a) Contingent liabilities

The recent events of the six-month period ended on June 30, 2021 are described below:

33.a.1) Environmental claims

•

Asociación Superficiarios de la Patagonia ('ASSUPA')

Concessionary Companies in San Jorge Gulf Basin areas

On March 29, 2021, the Court of Appeals confirmed the first instance judgment on February 8, 2021, whereby the judge resolved to declare the lack of jurisdiction of the federal courts on the grounds that an interjurisdictional damage had not been proved. This decision has not been appealed by the plaintiff, and therefore is a final and conclusive judgment.

On May 3, 2021, ASSUPA requested the Public Prosecutor's Office to investigate the possible commission of criminal offences, and demanded that of the Prosecution Unit for Investigations of Environmental Crimes ('UFIMA', by its acronym in Spanish) be involved in the investigation to provide assistance in the matter of its jurisdiction, elaborating investigation strategies and/or defining courses of action. Additionally, it requested the referral of the proceedings to the provincial courts for the continuation of the case.

On May 14, 2021, the judge rejected ASSUPA's request to refer the case to the provincial courts considering it inadmissible but informed that the proceedings would remain at the disposal of the judicial or administrative authorities that so requested, as instrumental evidence.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

33.

CONTINGENT ASSETS AND LIABILITIES (Cont.)

Concessionary companies in the Austral Basin areas

On May 12, 2021, the case was submitted to the Federal Contentious Administrative Court of Appeals for the ruling on the appeal filed by the plaintiff, which had appealed the interlocutory judgment rendered on June 23, 2020 whereby the judge decided to sustain the claim filed by YPF, among other co-defendants, ordering the transfer of the lawsuit.

33.a.2) Contentious claims

•

Petersen Energía Inversora, S.A.U. and Petersen Energía, S.A.U. (collectively, 'Petersen') and Eton Park Capital Management, L.P., Eton Park Master Fund, LTD. and Eton Park Fund, L.P. (collectively, 'Eton Park')

Judicial process in New York

On July 29, 2021, the District Court approved the new procedural schedule proposed by the parties, which extends the previous procedural deadlines, ordering that the Discovery of facts should be concluded on August 27, 2021 and the Discovery of experts on December 31, 2021. Besides, it ordered that motions for summary judgment should be completely substantiated by March 31, 2022, and the trial is scheduled for May 2022. The revised schedule, including the date for the motions for summary proceedings and the trial may be extended or modified by the District Court.

Judicial process in Spain.

On March 17, 2021, the Constitutional Court denied the appeal for constitutional protection filed by YPF on September 3, 2020, grounded on sections 41 and 44 of the Organic Law of the Constitutional Court, against the order entered on May 20, 2020 by the Provincial Court of Madrid for considering that such order violated YPF's fundamental right to effective judicial protection. On April 12, 2021, the appeal for constitutional protection filed by Argentina against the same court order was also denied.

As the process moves forward, and given the complexity of the claims and the evidence to be produced by the parties, the Company will continue reassessing the status of the case and its impact on the Group's results and financial position.

The Company will defend itself in compliance with the applicable legal procedures and available defenses.

34.

CONTRACTUAL COMMITMENTS

Contractual commitments are described in Note 33 to the annual consolidated financial statements. Updates for the six-month period ended June 30, 2021 are described below:

34.a) Agreement of extension of concessions or exploration permits

•

Río Negro

Loma Negra and La Yesera

On March 30, 2021, YPF jointly with its partners CAPEX S.A., Metro Holding S.A. and Corporación Financiera Internacional in Loma Negra area, and, additionally, San Jorge Energy S.A, in La Yesera area, executed agreements with the Province of Río Negro for the extension of the exploitation concessions of the mentioned areas for ten years, until 2034 and 2037, respectively. On April 20, 2021, such extension agreements were ratified by Provincial Decrees No. 345/2021 and No. 346/2021, respectively.

The extension agreement for La Yesera area provides an option for YPF, whereby the Company had a term of 90 days to extend such exploitation concession until 2037. In June 2021, the Company communicated the Province of Río Negro its decision not to extend the concession, and therefore, its interest in La Yesera area shall terminate in 2027.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

34.

CONTRACTUAL COMMITMENTS (Cont.)

34.b) Project investment agreements

•

Exploration agreement in the Charagua block (Bolivia)

On May 25, 2021, Law No. 1,376 was enacted, which approved the amendment to the Oil Services Agreement for the exploration and exploitation of the Charagua block executed by YPF E&P and YPFB, whereby YPF E&P assigned 40% of its whole interest and rights and duties under said Agreement to YPFB Chaco S.A., the process of notarization of the Contract is pending.

Moreover, and given the continuing COVID-19 health emergency which caused the suspension of the deadlines of the exploratory period due to a force majeure event, the first phase of the exploratory term was extended to June 4, 2021. Consequently, the second phase of the exploratory period will terminate on June 2023.

•

Letter on intent with the Province of Mendoza

On July 26, 2021, YPF signed a Letter of Intent with the Province of Mendoza, whereby, among other things, the parties, subject to the compliance of certain conditions and obtaining the respective approvals, agreed as follows: (i) to migrate production from secondary to tertiary recovery in certain areas owned by YPF; (ii) the Province will proceed to grant a royalty rate reduction, applicable to hydrocarbons produced by tertiary recovery wells; (iii) in 2022, YPF will start drilling 2 pilot wells in certain areas of its property for the purpose of exploring the Vaca Muerta formation and verifying its technical and economic potential; and (iv) the reversion of Loma de La Mina and Puesto Molina Norte Areas, from the date of the original expiration of the concessions.

35.

MAIN REGULATIONS AND OTHER

Main regulations and others are described in Note 34 to the annual consolidated financial statements. Updates for the six-month period ended June 30, 2021 are described below:

35.a) Regulations applicable to the natural gas industry

•

Natural gas and LNG exports

On April 27, 2021, SE Resolution No. 360/2021 was published in the BO, setting new terms and conditions for the Authorization Process for Natural Gas Exports (the 'Process'), for exports of natural gas through pipelines, its liquefaction in the country and its subsequent export as LNG. Besides, it repealed SGE Resolution No. 417/2019 which regulated the authorization process for natural gas exports, UHaF Resolution No. 284/2019, which established the operating procedure for natural gas exports when the domestic supply was at risk (useful cutbacks), and the reference to tariff item subject to registration under paragraph 2711.19.10 of section 3 of SRH Resolution No. 241/2017, related to LNG exports.

Such Process establishes the UHaF is the enforcement authority, and, among other things:

Modifies the classification of authorizations, establishing the following categories: a) firm Plan exports; b) firm GasAr Plan additional injection exports; c) firm basin surplus exports; d) interruptible exports (only granted once firm GasAr Plan exports are covered); e) operational exchange exports; and f) assistance agreement exports;

ii.

Establishes that IEASA (as administrator of the country's natural gas and LNG exports) and the entities representing a final demand segment (CAMMESA, generators, distributors, subdistributors, industries and CNG) will be considered 'interested third parties' in relation to export requests;

iii.

Establishes that volumes requested for exports in firm condition which are finally authorized for export will be deducted from the maximum daily quantity of the contracts executed under the GasAr Plan between CAMMESA and producers authorized to make exports; and that CAMMESA may agree with such producers, the delivery of all or part of the volumes deducted at the tendered prices (affected by the respective adjustment factors), if the demand so requires;

iv.

Regulates the process to approve GasAr Plan firm exports and establishes that the enforcement authority will process these new requests with priority over any other request in firm or interruptible condition;

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

35.

MAIN REGULATIONS AND OTHERS (Cont.)

Establishes that the enforcement authority may determine a 'useful cutback' on interruptible exports in the event of lack of supply of the domestic market;

vi.

Establishes that the enforcement authority may suspend or declare the expiration of export authorizations due to defaults on: (a) the injection commitments undertaken as base injection under the Plan GasAr, which may cause the exclusion of the producer from such Plan, and (b) the contractual commitments with distributors, CAMMESA and/or IEASA undertaken under the GasAr Plan.

On July 27, 2021, SE Resolution No. 706/2021 was published, which created a registry of LNG operators and regulated export activities. In order to obtain an export permit, LNG exporters are required to register in the respective category and ensure they have offered the possibility to acquire such product to potential domestic market agents which might be interested. Besides, as a requirement to export, they should not have breached any of the obligations established under the Resolution or be delayed in the payment of any fines imposed in relation to such obligations.

SE Resolution No. 706/2021 also establishes that the enforcement authority may issue firm LNG export permits for up to 20 years, having previously evaluated that the domestic supply of natural gas would not be affected considering the characteristics of the project and the possible impact on natural gas transportation capacity, at any stage of the production process. This permit may not be subsequently revoked or interrupted to ensure domestic market supply.

35.b) Hydrocarbons production incentive programs

35.b.1) Natural gas production incentive programs

•

Stimulus Programs for Additional Injection of Natural Gas

On June 28, 2021, the Company received payment of the final installment cancelling compensations corresponding to 2017 under the 'Natural Gas Program Bonds' for a total amount of US$ 758.8 million, payable in 29 installments.

•

Stimulus Program for Investments in Natural Gas Production Developments for Non-Conventional Reservoirs

On February 24, 2021, the Company filed motions for reconsideration against SE Resolutions No. 19 and 89, 2020 (corresponding to the Aguada Pichana Este concession), SE Resolutions No. 249, 60, 238, 49, 46, 445, 277 and 461, 2020 (corresponding to the Aguada Pichana Oeste - Aguada de Castro concession), SE Resolution No. 127/2020 (corresponding to the Estación Fernández Oro concession) and SE Resolutions No. 46, 180 and 11, 2020 (corresponding to La Ribera I and II concession), requiring the admission of those motions, the recalculation of the economic compensations based on the volumes requested by YPF and their payment plus the interests accrued until the payment date.

On March 26, 2021, the Company filed motions for reconsideration against SE Resolutions No. 135/2021, 58/2021 and 444/2020 (corresponding to the Aguada Pichana Este concession), SE Resolution No. 59/2021 (corresponding to the Aguada Pichana Oeste - Aguada de Castro concession) and SE Resolution No. 134/2021 (corresponding to La Ribera I y II concession).

On May 31, 2021, the Company filed appeals for reconsideration against SE Resolutions No. 141/2021, No. 190/2021 and No. 191/2021 (corresponding to the Aguada Pichana Oeste - Aguada de Castro concession) and SE Resolutions No. 159/2021 and No.193/2021 (corresponding to the Aguada Pichana Este concession).

On June 16 and 17, 2021, the Company filed appeals for reconsideration against SE Resolutions No. 207/2021 and No. 199/2021, respectively (corresponding to the Aguada Pichana Oeste - Aguada de Castro concession).

As of the date of these condensed interim consolidated financial statements, the motions of reconsideration filed by the Company are pending resolution by the SE.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

35.

MAIN REGULATIONS AND OTHERS (Cont.)

•

Plan for the Promotion of Argentine Natural gas Production - Supply and Demand Scheme 2020-2024 ('GasAr Plan')

On March 4, 2021, AFIP's General Resolution No. 4,939/2021 was published in the BO, establishing a procedure for the registration, application and assignment of tax credit certificates, under the securities system established in Item 40 of Annex to Decree No. 892/2020, with the purpose of ensuring the payment of the compensation to be borne by the Argentine Government defined in Item 33 of the aforementioned tax credit certificate and in compliance with the provisions of section 89 of Law No. 27,591. This General Resolution establishes that: (i) these certificates represent tax credits in U.S. dollars; (ii) these certificates may be applied to the cancellation of tax liabilities by way of tax return and advance payments, compensatory or penalty interest, fines and other charges, but are not applicable to tax withholdings by third parties; (iii) the partial use is authorized if the tax liability to be cancelled is lower; and (iv) the assignment of these certificates is admitted provided they were not partially used.

On April 9, 2021, due to roadblocks by health workers in the Province of Neuquén which affected the continuity of operations, YPF notified the SE the existence of an event of force majeure under the GasAr Plan. For the same reason, on April 27, 2021, YPF notified its clients that such roadblocks could affect the gas injection capacity to an undefined extent in the following weeks. On April 28, 2021, the roadblock affecting the operations ceased and the affected activities gradually resumed.

As of June 30, 2021, the Company received provisional compensations for a amount of 873 from Government.

35.b.2) Incentive Programs for the Production of Conventional Hydrocarbons

•

Provincial Stimulus Program - Province of Mendoza

On December 4, 2020, by Law No. 9,279, the Province of Mendoza created the program known as 'Mendoza Activates Hydrocarbons' ('Program I'), which seeks to promote the development, reactivation and increase of hydrocarbon activity. Program I will reimburse its beneficiaries, by means of tax credit certificates, any expenditures which, up to the authorizations limit specified in the regulation, are made in projects for the deployment of new wells, and/or the reactivation of existing ones, which as of the date of the Law was published, were inactive. These tax credit certificates may be used to pay the turnover tax and royalties.

On July 7, 2021, by Law No. 9,330, the Province of Mendoza created the program known as 'Mendoza Activates Hydrocarbons II' ('Program II') with the same purpose and modality as Program I, enlarging tax credit up to the authorizations limit specified in the regulation and extending the term for its use to December 31, 2025, which may be extended by the Provincial Executive Branch for a term of 3 years.

•

Provincial Stimulus Program - Province of Neuquén

By Decree No. 913/2021, published in the BO on June 16, 2021, the Province of Neuquén ordered the creation of the 'Provincial Hydrocarbon Reactivation Program' for the promotion of investment and the increase in conventional hydrocarbon production in the Province. The program contemplates a financial incentive for investments through the granting of tax benefits, by obtaining a non-transferrable tax credit certificate for up to 50% of the amount of the approved investment, which may be used until December 31, 2026 for the payment of the turnover tax, once the investments made have been certified.

•

Provincial Stimulus Program - Province of Río Negro

By Decree No. 513/2021, published in the BO on May 31, 2021, the Province of Río Negro partially regulated Law No. 5,490, which established the Regulatory Framework for the promotion of hydrocarbon production through the recovery of low-producing and inactive wells. The Regulatory Framework has the following purposes: (a) increasing hydrocarbon reserves; (b) optimizing hydrocarbon production levels; (c) increasing employment; (d) increasing public revenues; (e) boosting investment, and (f) prioritizing the hiring of provincial labor, providers and services. Beneficiaries subject to the Regulatory Framework may have the following benefits, to be determined by the enforcement authority considering the proposed and approved recovery plan: (a) reduction of the royalty rate applicable to incremental production; (b) exemption from, or reduction of exploitation royalties; and (c) tax benefits in the turnover tax in relation to incremental production.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

35.

MAIN REGULATIONS AND OTHERS (Cont.)

•

Provincial Stimulus Program - Province of Chubut

By Decree No. 278/2021, published in the BO on May 3, 2021, the Province of Chubut created the 'Hydrocarbon Industry Program', aimed to stimulate the increase in hydrocarbon production, maintaining reserves and preserving employment with the consequent strengthening of the regional production system. The Program contemplates a reduction in royalty rates applicable to incremental production.

35.c) Regulations applicable to natural gas distribution

•

Tariff renegotiation

On May 31, 2021, Decree No. 354/2021 was published, ratifying the provisional agreements related to tariff renegotiation entered into by natural gas distribution service licensees (included Metrogas), ENARGAS and the Ministry of Economy, pursuant to Decree No. 1,020/2020.

On June 2, 2021, the ENARGAS published Resolution No. 151/2021 approving the Provisional Tariff Schemes to be applied by Metrogas from the publication of the said Resolution.

35.d) Regulations applicable to electric power generation

•

Remuneration of electric power generators

On May 21, 2021, SE Resolution No. 440/2021 was published in the BO, which, among other things, adjusted the remuneration values for sales of non-contractualized energy and power, which had been set by SE Resolution No. 31/2020, with retroactive effects to February 2021, for Agents which waived, within 30 days, all claims in relation to the application of SE Resolution No. 31/2020.

35.e) Regulatory requirements applicable to the LPG industry

•

Benchmark prices for the butane commercialization chain

On April 6, 2021 SE Resolution No. 249/2021 was published in the BO, which (i) modified the subsidy amount per bottle to be granted to beneficiaries of the Household Program, for them to continue paying the price effective as of July 1, 2019 for each LPG bottle consumed for residencial use, ii) established the maximum benchmark prices for producers of butane/mixture and propane for residential use to be bottled in 10, 12 and 15 kg bottles; iii) established the maximum benchmark prices of LPG bottles of 10, 12 and 15 kg for fractionators, distributors and retailers, updating the values established in Annexes I and II to SE Resolution No. 70/15, as amended; iv) established the maximum deviations from the maximum benchmark price in each jurisdiction specified in Annex III to SE Resolution No. 70/15; and v) established the subsidy amount per bottle provided in SE Resolution No. 49/2015.

35.f) Tax Regulations

•

Law No. 27,630 - Income Tax

On June 16, 2021 Law No. 27,630 was published in the BO, introducing certain amendments to the Income Tax Law. The most relevant changes are described below:

The income tax rate for companies and permanent establishments, applicable to fiscal years beginning on or after January 1, 2021, is modified. To such end, it introduced a scale of rates ranging from 25% and 35% to be applied according to the taxpayer's accumulated taxable net profit, which amounts will be adjusted annually according to the CPI.

-	The distribution of dividends and profits is subject to a 7% rate.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

35.

MAIN REGULATIONS AND OTHERS (Cont.)

35.g) Other regulatory requirements

•

CNV Regulatory Framework (N.T. 2013)

a)	CNV General Resolution No. 873

On November 27, 2020, General Resolution No. 873/2020 was published in the BO, simplifying the filing of financial information. The main simplifications for entities filing financial information based on the IFRS are mentioned below:

- For information to be filed on a quarterly basis:

i) the filing of financial statements of companies over which the issuer exercises control, joint control or significant influence may be replaced with the disclosure in a Notes to the financial statements of the issuer of such entities' information, in compliance with the applicable rules and regulations in force for each case. If this option is exercised, the issuer will make available such financial statements, if so requested by the public.

ii) consolidated and separate (individual) financial statements for interim periods may be filed as condensed statements, as provided for in IAS 34.

- Section 12 of Chapter III, Title IV of the Rules of CNV (N.T. 2013 as amended) was repealed.

- Information required in Exhibits may be disclosed in Notes.

b)	CNV General Resolution No. 622

On March 18, 2015, the Company was registered with the CNV under the category 'Settlement and Clearing Agent and Trading Agent - Own account', record No. 549. Considering the Company's business, and the CNV Rules and its Interpretative Criterion No. 55, the Company will not, under any circumstance, offer brokerage services to third parties for transactions in markets under the jurisdiction of the CNV, and it will also not open operating accounts to third parties to issue orders and trade in markets under the jurisdiction of the CNV.

Moreover, in accordance with the amendment to the CNV Rules provided for by General Resolution No. 731/2018, the Company is subject to the provisions of Section 5 b.1 of Title VII, Chapter II, of the CNV Rules, 'Settlement and Clearing Agent - Direct Participant'. In this respect, as set forth in Section 13, Title VII, Chapter II, of the CNV Rules, as of June 30, 2021, the equity of the Company exceeds the minimum equity required by such Rules, which amounts to 38. Additionally, the balancing entry requirement established in Section 15 does not apply to the Company, as established in Section 5 b.1 of the aforementioned regulations.

c)	CNV General Resolution No. 629 and No. 813

Due to General Resolution No. 629/2014 and No. 813/2019 of the CNV, the Company informs that supporting documentation of YPF's operations, which is not in YPF's headquarters, is stored in the following companies:

i. AdeA S.A. located in Barn 3 - Route 36, Km. 31.5 - Florencio Varela - Province of Buenos Aires.

ii. File S.R.L., located in Panamericana and R.S. Peña - Blanco Encalada - Luján de Cuyo - Province of Mendoza.

Additionally, it is placed on record that the detail of the documentation given in custody is available at the registered office, as well as the documents mentioned in section 5, subsection a.3, Section I, Chapter V, Title II of the CNV Rules.

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YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

36.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES

The information detailed in the tables below shows the balances with associates and joint ventures as of June 30, 2021 and December 31, 2020 and transactions with the mentioned parties for the six-month period ended June 30, 2021 and 2020:


	June 30, 2021		December 31, 2020
	Other receivables		Trade receivables			Accounts payable		Contract liabilities	Other receivables		Trade receivables			Accounts payable		Contract liabilities
	Current		Current			Current		Current	Current		Current			Current		Current
Joint Ventures:
YPF EE		417			1,991			3,340		124			389			794		2,504		56
Profertil		6			885			1,589		-			12			641		484		-
MEGA		-			4,057			570		-			-			2,650		261		-
Refinor		-			904			102		-			-			577		75		-
OLCLP		13			-			187		-			79			7		168		-
Sustentator S.A.		-			-			1		-			-			-		2		-

	436			7,837			5,789		124			480			4,669		3,494		56

Associates:
CDS		-			151			10		-			-			144		10		-
YPF Gas		444			1,177			285		-			51			322		180		-
Oldelval		-			1			616		-			-			1		450		-
Termap		-			-			212		-			-			-		182		-
OTC		8			-			-		-			8			-		-		-
OTA		13			-			11		-			12			-		9		-
GPA		-			-			274		-			-			-		25		-
Oiltanking		-			1			466		-			-			1		304		-
Gas Austral S.A.		-			62			-		-			-			23		1		-

	465			1,392			1,874		-			71			491		1,161		-

	901			9,229			7,663		124			551			5,160		4,655		56


	For the six-month period ended June 30,
	2021					2020
	Revenues		Purchases and services			Net interest income (loss)		Revenues	Purchases and services		Net interest income (loss)
Joint Ventures:
YPF EE		2,956			3,969			-		1,542			2,190		-
Profertil		2,625			5,412			-		2,194			1,827		-
MEGA		9,652			523			-		6,013			947		-
Refinor		4,809			720			-		932			297		-
OLCLP		50			361			-		28			320		-
Sustentator S.A.		-			8			-		-			-		-

	20,092			10,993			-		10,709			5,581		-

Associates:
CDS		266			-			-		514			-		7
YPF Gas		2,342			269			-		1,067			109		3
Oldelval		7			1,602			-		56			1,359		2
Termap		-			917			-		-			561		-
OTA		1			97			-		1			26		-
GPA		-			831			-		-			654		-
Oiltanking		3			1,194			-		2			690		-
Gas Austral S.A.		191			-			-		99			-		-

	2,810			4,910			-		1,739			3,399		12

	22,902			15,903			-		12,448			8,980		12

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

36.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Cont.)

Additionally, in the normal course of business, and considering being the main energy group in Argentina, the Group's client/suppliers portfolio encompasses both private sector entities as well as national public sector entities. As required by IAS 24 'Related party disclosures', among the major transactions above mentioned the most important are:


		Balances			Transactions
		Receivables / (Liabilities)			Income / (Costs)
		June 30, 2021			December 31, 2020		For the six-month period ended June 30,
Customers / Suppliers	Ref.	2021			2020
SGE	(1) (20)		-			12,607		-		-
SGE	(2) (20)		1,912			3,330		1,901		1,762
SGE	(3) (20)		4,628			-		6,337		-
SGE	(4) (20)		271			228		285		55
SGE	(5) (20)		276			240		-		-
SGE	(6) (20)		188			625		-		138
SGE	(7) (20)		403			440		269		237
SGE	(8) (20)		6,541			6,126		-		-
Ministry of Transport	(9) (20)		780			2,802		2,823		2,276
Secretariat of Industry	(10) (20)		533			-		573		-
CAMMESA	(11)		13,025			7,098		26,613		6,841
CAMMESA	(12)		(2,023	)		(983	)	(3,584	)	(2,899	)
IEASA	(13)		7,835			5,998		4,909		5,138
IEASA	(14)		(4,195	)		(2,640	)	(1,295	)	(55	)
Aerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A.	(15)		5,608			6,009		3,632		4,126
Aerolíneas Argentinas S.A. and Austral Líneas Aéreas Cielos del Sur S.A.	(16)		-			-		(133	)	-
ANSES	(17)		-			-		-		756
Agua y Saneamientos Argentinos S.A.	(18)		2,453			-		3,121		-
Ministry of Work, Employment and Social Security and AFIP	(19)		-			-		230		-

(1)	Benefits for the Stimulus Programs for the Additional Injection of Natural Gas.

(2)	Benefits for the Stimulus Program for Investments in Natural Gas Production Developments from Non-Conventional Reservoirs.

(3)	Benefits for the Plan for the Promotion of Argentine Natural Gas Production ('GasAr Plan).

(4)	Benefits for the propane gas supply agreement for undiluted propane gas distribution networks

(5)	Benefits for the Household Program (Programa hogares con garrafa).

(6)	Benefits for recognition of the financial cost generated by payment deferral by providers of the distribution service of natural and undiluted propane gas through networks.

(7)	Procedure to compensate for the lower income that Natural Gas Piping Distribution Service Licensed Companies receive from their users for the benefit of Metrogas.

(8)

Procedure to compensate the payment of the daily differences accumulated on a monthly basis between the price of the gas purchased by Natural Gas Piping Distribution Service Companies and the price of the natural gas included in the respective tariff schemes for the benefit of Metrogas. See Note 34.f to the annual consolidated financial statements.

(9)	The compensation for providing diesel to public transport of passengers at a differential price.

(10)	Incentive for domestic manufacturing of capital goods, for the benefit of AESA.

(11)	The provision of fuel oil and natural gas.

(12)	Purchases of energy.

(13)	Sale of natural gas, LNG and provision of regasification service of LNG in Escobar.

(14)	The purchase of natural gas and crude oil.

(15)	The provision of jet fuel.

(16)	Purchase of miles for YPF Serviclub Program.

(17)	Income recognized by the Work and Production Assistance Program ('ATP') received in benefit of AESA and OPESSA.

(18)	Sale of assets held for disposal.

(19)	Income recognized by the Productive Recovery Program II ('REPRO II') in benefit of OPESSA.

(20)	Income recognized under the guidelines of IAS 20.

Additionally, the Group has entered into certain financing, investing and insurance transactions with entities related to the national public sector.

On the other hand, the Group holds Bonds of the Argentine Republic 2029 and 2030, and Treasury Bills, classified as 'Investments in financial assets'. See Note 6 to the annual consolidated financial statements.

Furthermore, in relation to the investment agreement signed between YPF and Chevron subsidiaries, YPF has an indirect non-controlling interest in CHNC with which YPF carries out transactions in connection with the mentioned investment agreement. During the six-month period ended June 30, 2021 and 2020, YPF and CHNC carried out transactions, among others, the purchases of crude oil by YPF for 21,754 and 6,233, respectively. These transactions will be consummated in accordance with the general and regulatory conditions of the market. The net balance payable to CHNC as of June 30, 2021 and December 31, 2020 amounts to 3,383 and 6,462, respectively. See Note 33.b to the annual consolidated financial statements.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

36.

BALANCES AND TRANSACTIONS WITH RELATED PARTIES (Cont.)

The table below discloses the accrued compensation for the YPF's key management personnel, including members of the Board of Directors and Vice Presidents (managers with executive functions appointed by the Board of Directors), for the six-month period ended June 30, 2021 and 2020:


	For the six-month period ended June 30,
	2021		2020
Short-term employee benefits⁽¹⁾		453			323
Share-based benefits		60			92
Post-retirement benefits		24			12
Termination benefits		11			231

	548			658

(1)	Does not include Social Security contributions of 80 and 77 for the six-month period ended June 30, 2021 and 2020, respectively.

37.

EMPLOYEE BENEFIT PLANS AND SIMILAR OBLIGATIONS

Note 2.b.10 to the annual consolidated financial statements describes the main characteristics and accounting treatment for benefit plans implemented by the Group.

i.	Retirement plan

The total charges recognized under the Retirement Plan amounted to approximately 117 and 107 for the six-month period ended June 30, 2021 and 2020, respectively.

ii.	Objective performance bonus programs and performance evaluation programs

The amount charged to expense related to the programs was 2,666 and 1,581 for the six-month period ended June 30, 2021 and 2020, respectively.

iii.	Share-based benefit plan

The amount charged to expense in relation with the share-based plans, which are disclosed according to their nature, was 241 and 300 for the six-month period ended June 30, 2021 and 2020, respectively.

During the six-month period ended on June 30, 2021 and 2020, the Company has not repurchased its own shares.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

38.

ASSETS AND LIABILITIES IN CURRENCIES OTHER THAN THE PESO


	June 30, 2021			December 31, 2020
	Amount in currencies other than the Peso			Exchange rate in force ⁽¹⁾		Total	Amount in currencies other than the Peso	Exchange rate in force ⁽¹⁾			Total
Noncurrent assets
Other receivables
U.S. dollar		21			95.52		1,970		27			83.95	2,233
Bolivian peso		7			13.72		95		7			12.06	84
Trade receivables
U.S. dollar		22			95.52		2,125		98			83.95	8,221
Investments in financial assets
U.S. dollar		36			95.52		3,447		-			-	-

Total noncurrent assets				7,637			10,538

Current assets
Other receivables
U.S. dollar		226			95.52		21,583		176			83.95	14,762
Euro		3			113.10		364		3			103.07	259
Chilean peso		6,985			0.13		908		9,242			0.12	1,109
Yen		106			0.86		91		105			0.81	85
Bolivian peso		14			13.72		191		14			12.06	168
Pound sterling		-	⁽²⁾		131.84		20		1			114.22	143
Swiss franc		-	⁽²⁾		103.11		10		-			-	-
Trade receivables
U.S. dollar		608			95.52		58,077		657			83.95	55,196
Chilean peso		4,369			0.13		568		7,108			0.12	853
Euro		15			113.10		1,696		-	⁽²⁾		103.07	2
Investments in financial assets
U.S. dollar		189			95.52		18,063		118			83.95	9,882
Cash and cash equivalents
U.S. dollar		229			95.52		21,830		126			83.95	10,593
Chilean peso		1,300			0.13		169		608			0.12	73

Total current assets				123,570			93,125

Total assets				131,207			103,663

Noncurrent liabilities
Provisions
U.S. dollar		2,084			95.72		199,439		1,991			84.15	167,542
Lease liabilities
U.S. dollar		277			95.72		26,476		274			84.15	23,069
Loans
U.S. dollar		5,942			95.72		568,803		6,129			84.15	515,765
Other liabilities
U.S. dollar		9			95.72		902		35			84.15	2,960
Accounts payable
U.S. dollar		3			95.72		313		3			84.15	275

Total noncurrent liabilities				795,933			709,611

Current liabilities
Provisions
U.S. dollar		41			95.72		3,925		40			84.15	3,367
Chilean peso		585			0.13		76		575			0.12	69
Taxes payable
Chilean peso		1,546			0.13		201		1,375			0.12	165
Salaries and social security
U.S. dollar		9			95.72		878		9			84.15	731
Lease liabilities
U.S. dollar		234			95.72		22,372		263			84.15	22,093
Loans
U.S. dollar		1,032			95.72		98,819		1,436			84.15	120,839
Chilean peso		3,000			0.13		390		2,958			0.12	355
Other liabilities
U.S. dollar		87			95.72		8,332		108			84.15	9,062
Accounts payable
U.S. dollar		897			95.72		85,893		831			84.15	69,942
Euro		30			113.57		3,406		17			103.53	1,770
Chilean peso		3,638			0.13		473		6,400			0.12	768
Yen		350			0.86		301		384			0.82	315
Pound sterling		-	⁽²⁾		132.12		33		-	⁽²⁾		113.81	25
Swiss franc		-	⁽²⁾		103.47		29		-			-	-
Real		-	⁽²⁾		19.12		5		-			-	-

Total current liabilities				225,133			229,501

Total liabilities				1,021,066			939,112

(1)	Exchange rate in force at June 30, 2021 and December 31, 2020 according to BNA.

(2)	Registered value less than 1.

Table of Contents

YPF SOCIEDAD ANONIMA

NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED)

39.

SUBSEQUENT EVENTS

On July 22, 2021, the Company issued Class XX Additional NOs denominated in dollars and payable in pesos at the applicable exchange rate, at a 5.75% fixed interest rate. The NOs will amortize semi-annually as from the fifth year, maturing in July 2032 for a principal amount of US$ 384.2 million and will be deferredly integrated: (i) 30% on July 22, 2021, (ii) 30% on September 6, 2021 and (iii) 40% on October 21, 2021.

As of the date of these condensed interim consolidated financial statements, there have been no other significant subsequent events whose effect on the Group's shareholders´ equity, the net comprehensive income or their disclosure in Notes to the financial statements for the period ended as of June 30, 2021, should have been considered in such financial statements under IFRS.

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YPF SA published this content on 17 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2021 13:23:05 UTC.

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YPF Sociedad Anónima

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ARP9897X1319

Oil & Gas Refining and Marketing

YPF Sociedad Anónima : CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2021 AND COMPARATIVE INFORMATION (UNAUDITED) (Form 6-K)

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