Central Puerto S.A.

Good morning and welcome to the Central Puerto conference call following the results announcement for the first quarter ended on March 31st, 2022. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. If you do not have a copy of the press release, please refer to the investor support section on the company's corporate website at www.centralpuerto.com. A replay of today's call may be accessed by accessing the webcast in the investor support section of the Central Puerto corporate website. Before we proceed, please be aware that all financial figures were prepared in accordance with the IFRS and are stated in Argentinian pesos. unless otherwise noted. It's worth noting that the financial statements for the first quarter ended on March 31, 2022, include the effects of the inflation adjustments. Accordingly, the financial figures mentioned during the call, including the data from previous periods and the growth comparisons, have been stated in terms of Argentine pesos at the end of the reporting period. Also, please note that certain statements made by the company during the conference call are forward-looking statements and we refer you to the forward-looking statements section of our earnings release and recent filings with the SEC. Central Puerto assumes no obligation to update forward-looking statements except as required under applicable securities law. To follow the discussion better, please download the webcast presentation available on the company's website. Please be aware that some of the numbers mentioned during the call may be rounded to simplify the discussion. On the call today from Central Puerto is Fernando Bonet, Chief Executive Officer, Enrico Terraneo, Chief Financial Officer, and Milagros Grande, Financial Manager. And now, I will turn the call over to Fernando Bonet. Mr. Bonet, you may begin.

Thank you very much. Good morning and welcome. We are joining you today with our management team from Buenos Aires, Argentina to report results for the first quarter 2022. After the presentation, we will answer any question you may have. I would like to begin today's call by analyzing the recent events, the industry in general, and finally the operating figures of the first quarter 2022. Milagros will present the most recent financial news and results. First, I would like to comment on the latest regulatory news in the industry. On April 21, the Secretary of Energy issued the Resolution 238-2022, which updates remuneration prices for energy and capacity of units under energy-advanced regulatory framework. Remuneration values increased by 30% retroactively to February 2022, An additional 10% increase will become effective in June 2022. This resolution also eliminates the use factor adjustment that reduced the capacity payment calculation for the units with lower dispatch. In our steam turbines with low dispatch, this change implies an improvement of approximately 30% in their capacity payments. now i would like to comment on the main metrics of the industry as you can see on page four in terms of stone capacity the system reached 42 871 megawatts in the first quarter 2022 resulting in a 1.4 percent increase compared to the first quarter of 2021 mainly based in a new renewable project developed As of March 31, 2022, the installed capacity continued to be 59% thermal, 25% hydro, 12% renewables, and 4% nuclear. In the first quarter of 2022, energy generation increased 1% to 35,719 GWh, compared to 35,000 GWh in the first quarter of 2021, mainly due to a 37% increase in nuclear, 24% increase in renewables, and 2% increase in thermal, partially offset by a decrease of 25% in hydro. Renewables rise was due to a new installed capacity and nuclear is due to a higher ATUCA1 and ATUCA2 availability. For thermal units, there was an overall lower availability, 76% for the first quarter of 2022, as compared to 81% in the first quarter of 2021. During the first quarter of 2022, main sources of energy generation continued to be thermal with a 65% share and hydro and renewables represented 13.9% and 13.6% respectively, while nuclear was 7.3%. Finally, as you can see on page 5, energy demand increased 4.3% up to 34,520 GWh compared to 33,087 GWh in the first quarter of 2021, where commercial users grew 7%, residential grew 5%, rate users grew 4%, and industry keeps the same level at the first quarter of 2021. Rises in different demand segments in the first quarter of 2022 were related to the recovery of the economy activity and lower COVID-related restrictions. As of first quarter of 2022, demand structure is 45% represented by residential users, 29% by commercial activity, and the remaining 26% is related to industrial and commercial-grade demand. Going now to our key performance indicator for the quarter, as you can see on page 5, energy generation during the first quarter of 2022 was 4,585 GWh of electricity, 32% higher than the same period of 2021. The increase was mainly caused by 36% increase in energy generation for thermal sources Specifically, Terminal 6 and Lorenzo Power Plant full operation as combined cycle, and higher dispatch of Central Puerto steam turbines due to a higher demand, partially offset by certain unavailability of Lujan de Cuyo cogeneration. And 26% increase in Piedra El Águila due to CAMESA's decision to increase dispatch regardless the low water inflows, reducing the dam level. Steam production during the first quarter of 2021 increased 76% totaling 461,000 tons produced due to the Terminal 6 San Lorenzo power plant full operation and good performance of Lujan de Cuyo cogeneration plant. Regarding the availability of our thermal units during the first quarter of 2022, of which 84%, in line with the strong availability history of Central Puerto's equipment. As a reference, the market average availability for thermal units for the first quarter of 2022 was 76%, according to data from CAMESA. And now I will turn the call over to Milagros, who will comment on the financial highlights.

Thank you, Fernando. First, I would like to comment on certain key financial information related to the Brigadier López Financial Trust. On April 5, 2022, the existing financial debt under the Brigadier López Financial Trust that was acquired together with the power plant was cancelled. As of December 2021, the amounts due on this Trust were $32 million. This financial debt accrued interest at an annual rate equal to the rate of LIBOR Plus 5, or 6.25%. The scheduled final maturity of this indebtedness was August 2022, but was cancelled in April as a policy of liability management reducing financial costs. I now will comment on the results of the first quarter of 2022. Going now to the results for this quarter as you can see on page 7, our revenues were 17.2 billion pesos as compared to 15.8 billion during the first quarter of 2021. This 8.8% increase was mainly due to an 8% increase in energía base sales, which totaled 7 billion pesos as compared to 6.5 billion pesos in the first quarter of 2021, because of a 19% increase in generation and a rise of 30% in tariffs under the new resolution 238 of 2022, which is lower than inflation that reached 55.1% in the last 12 months. Also, there was a 7% increase in sales under contracts, which totaled 9 billion pesos in the first quarter of 2022 as compared to 8.4 billion pesos in the first quarter of 2021, mainly due to the full COD of Terminal 6 San Lorenzo power plant, which represented an increase in generation of 523 GWh as compared to 35 GWh in the first quarter of 2021. And finally, a 93% increase in steam sales, which totaled 0.8 million pesos in the first quarter of 2022, representing a 76% increase in steam production, compared to 0.4 billion pesos from the same period of 2021. Going now to page 8, we can see the changes in our EVDA, excluding impairment and phony effects difference and interest, which was 12.9 billion pesos. in the first quarter of 2022 compared to 10.2 billion pesos in the first quarter of 2021. This 27% increase was driven by the following changes. A 9% increase in revenues explained before, a 6% decrease in cost of sales that totaled 7.6 billion pesos in the first quarter of 2022 as compared to 7.99 billion pesos in the first quarter of 2029 mainly due to lower operational costs. A 19% decrease in administrative outstanding expenses that totaled 1 billion pesos during the first quarter of 2022 as compared to 1.2 billion in the first quarter of 2021. And finally, to a 22% other operating results that totaled 4.4 billion pesos during the first quarter of 2022 compared to 5.6 mainly due to the insurance recovery related to Lujan de Cuyo and Manga sites. On page 9, we can see the consolidated net income that was 4.8 billion pesos compared to consolidated net income of 1 billion pesos in the same period of 2021. In addition to the factors mentioned before, the net income was affected positively by less financial expenses amounting to 4.7 billion pesos in the first quarter of 2022, compared to 10.8 billion pesos in the first quarter of 2021, mainly due to the reduction of investments and the corresponding interest due. negatively by higher income tax for the period which grew from 0.7 billion pesos in the first quarter of 2021 compared to 1.8 billion pesos in the first quarter of 2022. A loss related to exposure to the changing purchasing powers of the currency that totaled 3.1 billion pesos compared to 0.3 billion pesos in the first quarter of 2021. Money collection related to trade receivables and wealth obligata plans totaled 2 billion pesos in the first quarter of 2022 as compared to 1.7 billion in the first quarter of 2021. The amounts are being collected on time according to the signed contract. Going to page 10, you can see our cash flow for the first quarter of 2022. Next, net cash provided by operating activities was 8.1 billion pesos, this including 2 billion pesos in collections from world-wide installments. Net cash used by investing activities was 6 billion pesos mainly due to acquisition of short-term financial assets. Thank you, and now we invite you to ask any question you may have.