Empresa Distribuidora y Comercializadora Norte SA Q2 FY2022 earnings call

• Edenor maintains electricity distribution services for 3.2 million customers (serving approx. 11 million people).
• SAIDI and SAIFI indicators improved by 16% and 8% respectively for the last 3 months compared to the same period last year.
• Refinanced financial debt, with a new $52 million issue rated as a social bond by Fitch Argentina.
• In June 2022, tariff adjustment occurred with an average 14% increase in residential category and 15% in general category.
• Subsidy segmentation regime for residential electricity and gas users: Levels 2 and 3 users have no new increases in 2022; Level 1 pays full cost gradually.
• Credit ratings updated in May 2022: S&P confirmed institutional rating, Moody's lowered Class 9 senior notes rating.
• First quarter results: gross margin down 16%, EBITDA loss, energy sales up 8.3%, customer base up 2.1%.
• SAIDI and SAIFI indicators at lowest in company history, improved service levels due to investment plan since 2014.
• Energy losses decreased by 17.6% in 2Q 2022, with inspections, meter installations, and new systems implemented.

Revenues from sales were 6% lower in real terms compared to the second quarter of 2022, mainly due to inflation differences and a frozen tariff. The gross margin accumulated as of June 30, 2022 was ARS 24,212 million, a 16% fall from the same period the previous year. EBITDA decreased to a loss of ARS 5,503 million. Energy sales volume increased by 8.3% to 5,919 gigas in the second quarter of 2022. Customer base rose by 2.1% to over 3.2 million customers. Capital expenditures totaled ARS 8,655 million in the first 6 months of 2022, a 15% decrease in real terms compared to the same period in 2021. Breakdown of capital expenditures: ARS 674 million in new connections, ARS 1,638 million in grid enhancement, ARS 1,329 million in maintenance, etc.

• Forward-looking statements involve risks, uncertainties, and depend on future circumstances that may not occur.
• General economic and industry conditions could affect future results.
• Tariff freeze and inflation impact revenues.
• Credit rating changes (Moody's lowering rating, S&P changing credit watch) pose risks.
• Risks related to recidivism and fraud in energy recovery.