Empresa Distribuidora y Comercializadora Norte SA Q4 FY2021 earnings call

• Edenor guarantees electricity distribution to 3.2 million customers, serving ~11 million people.
• SAIDI and SAIFI improved by 13% and 11% respectively compared to Dec 2020.
• Revenues from sales down 11% in Q4 2021 due to tariff negotiation.
• Investment in 2021 was ARS 16,246 million, 3% change from prior year.
• Regulatory framework: Public hearing and decree updates related to tariffs and investments.
• Q3 2021 gross margin fell 13%, EBITDA up 94% in Q4 2021 but adjusted EBITDA down 20% annualized.
• Energy sales volume up 10% in Q4 2021, 8% annualized. Customer base rose 2%.
• Financial losses in Q4 2021 up 71% to ARS 8,292 million.
• 2021 investments included various substation and network constructions.
• SAIDI and SAIFI below RTI targets for 2021 end. Energy losses down 17% in Q4 2021.
• 41,862 integrated energy meters installed in 2021, 13,303 in Q4.

Revenues from sales in the fourth quarter of 2021 were 11% lower in real terms compared to Q4 2020, mainly due to ongoing tariff negotiation for distribution value added. Investment reached ARS 16,246 million in 2021, a 3% change from the previous year. SAIDI and SAIFI indicators improved by 13% and 11% respectively over the last 12 months. Volume of energy sales increased 10% in Q4 2021 to 5,241 GWh compared to 4,752 GWh in Q4 2020. Customer base rose by 2% to over 3.2 million customers.

• The company is in the process of negotiating with the regulatory entity for another increase in VAD.

• Uncertainties related to ongoing tariff negotiations with the regulatory entity.
• General economic and industry conditions that could affect future results as mentioned in forward-looking statements.

Q: Do you expect any other increases in VAD for the remaining of the year?

A: Yes, we are in the process of negotiating that with the regulatory entity and we are working very close to them to find a solution for that and able to have another increase in our VAD