Central Puerto S.A.

Good morning, ladies and gentlemen. Welcome to Central Puerto's second quarter of 2025 earnings conference call. A slide presentation is accompanied today's webcast and will be also available on the investor section of the company's website, www.centralpuerto.com slash en slash investors. All participants will be in a listen-only mode during the presentation. After that, 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 Relations Support section on the company's corporate website at www.centralpuerto.com. In addition, a replay of today's call will be available in upcoming days by accessing the webcast link at the same section of the Central Puerto's website. Our host today will be Mr. Fernando Bonet, Central Puerto's CEO, Mr. Enrique Terranio, the company's CFO, Mrs. Maria Laura Feller, Head of Investor Relations, and Mr. Alejandro Diaz-Lopez, Head of Corporate Finance. Maria Laura, please go ahead.

Good day. Thank you, Rector. Before we begin, please be aware that this presentation contains four looking statements based on current outlooks and assumptions. Such statements involve risks and uncertainties that may cause actual results to differ materially. Also, U.S. dollar figures presented may be impacted at the non-cash level, as our financial statements are written in Argentine pesos and subsequently converted into U.S. dollars solely for comparability and analysis purposes. Investors are advised to review the full disclaimer and financial statements available on Central Puerto's website and public filings. Adjusted EBITDA is a non-IFRS measure and should not be considered separately, so please refer to our financial statements. In the second quarter of 2025, the adjusted EBITDA was $61.4 U.S. million, which reflects a 32% decrease compared to $89.9 U.S. million in the previous quarter, and above 35% compared to the second quarter of year 2024. Last 12 months, adjusted EBITDA was $309.9 U.S. million, and 8% above the full year 2024. In the second quarter, funding for the collections was of $17.2 million. Total generation volumes in this quarter were 4,372 GWh, a 24% decrease compared to the first quarter, and 12% decline year-on-year. The decrease compared to the previous quarter is primarily due to the one-time schedule upgrade and maintenance of Central Costanera's Mitsubishi combine cycle and the steam turbine 6 from Central Puerto's complex. Revenues in this quarter were of $179.6 US million, a decrease of 8% compared to the previous quarter and an increase of 7% compared to the same quarter of the previous year. From total revenues in this quarter, 89.6% of total revenues came from energy sales. Such revenues in this quarter decreased from the previous quarter due to the seasonality of spot capacity charges and lower volumes as discussed before. These effects were partially offset by additional self-managed fuel procurement from the T6 plant and other fuels procurer. On the regulatory front, spot prices in pesos adjusted every month for inflation, as set by Energy Secretariat, adding up to a compounded 5.1% for the quarter. And in addition, still on the regulatory front, last Thursday, the National Executive Branch released a decree 476, with further definitions on hydroconcessions, which we will review later. in the following slide. Capital expenditures in the semester were 102.4 US million dollars and were mainly allocated to the 155 megawatts of installed capacity we are building. From this additional capacity, 140 megawatts will come from the closing of the Brigadier-López combined cycle. while 15 MW from the San Carlos Solar project. Both projects were at an approximate 80% completion at the end of the quarter, with an expected COD before year-end. Finally, our solid financial position is reflected in the balance statement of the quarter, with a resulting net leverage ratio of 0.56 times the last 12 months adjusted EBITDA. As discussed before, the Energy Secretariat has allowed monthly adjustments to peso-denominated electricity spot prices to reflect inflation. Regarding the Piedra del Águila concession extension, last Thursday the National Executive Branch issued the Decree No. 476. This decree established a new set of terms and a required payment for an adhesion agreement. It also granted an additional 90-day period for the current concession and opens the possibility for it to be extended until the end of the year. Second quarter adjusted EBITDA decreased 32% quarter over quarter, mainly due to the seasonality of capacity charges and the maintenance works in the Costanera and Central Puerto plants. that impacted in lower revenues and additional OPEX related to such maintenance works. The resulting last 12 months adjusted EBITDA is 8% above full year 2024 adjusted EBITDA. Also to account for this quarter's results, PONIMBEMEM collections were $17.2 US million. Power generation volumes of the quarter were impacted by Central Costanera's Mitsubishi combined cycle with 1,200 GWh below the previous quarter. Also, the Central Puerto's steam turbine 6 was below the previous quarter by 186 GWh. This resulted in a total cycle availability of 73% and an average steam turbine and gas turbines availability of 60%. The steam production increased 20% in the second quarter compared to the previous quarter. Total revenues were $176 U.S. million, while energy generation-related revenues were $160.9 U.S. million. In the second quarter, spot revenues were impacted by the seasonal capacity charges established under Resolutions 59 and 294. This led to a quarter-over-quarter revenue reduction of $19.2 million. Additionally, the lower volume sold impacted in the energy component of spot revenues by $12.5 U.S. million. These effects were partially offset by additional $18.4 U.S. million from self-managed fuel procurement for our T6 plant and other fuels as authorized under Resolution 21. Spot peso-denominated prices represented 16% of total revenues, and during the quarter, such prices maintained parity with inflation and the exchange rate variation. Our ongoing pipeline of projects is a cornerstone of our growth strategy. Let's begin with Brigadier López, a thermal power project that is nearing completion. With the closing of the Brigadier López Combined Cycle, we are adding 140 MWh to its current capacity, bringing the total installed capacity to 421 MWh. Total project investment will be of approximately US$185 million, and we are on track for commercial operation in the fourth quarter of 2025. Next, we have the San Carlos Solar Project, which will deliver 15 MW of installed capacity with an estimated capex of $18 U.S. million. Like Ridadía López, San Carlos is expected to be operational before year-end. Finally, we turn to Alamitos, a wind project planned for 130 MW with potential expansion to 150 MW, depending on final technology offers. With an estimated investment of $130 or $50 US million, Alamitos is currently in the bidding phase for power generation technology and engineering services. Construction is scheduled to begin in the first quarter of 2026. Also, Central Puerto is participating in the battery storage tender process. We submitted bids for 150 megawatts through Central Puerto and 50 and the process is ongoing with final definitions expected by the end of August. Let us also briefly touch on the hydroponcision extensions. Last Friday, the National Executive Branch released new conditions that are under our analysis at this moment. As discussed earlier, our strong balance sheet and financial flexibility is reflected in these figures. Our standing financial debt was $409 U.S. million as of June 13. Cash, cash equivalents, and current financial assets balance was $235 U.S. million. The resulting net leverage ratio was 0.56 times the last 12 months adjusted EBITDA. Outstanding credit under the funding program stood at $166.5 US million and is being collected in monthly installments through May 2028. Also, it is good to remark that our capital expenditures of this semester were fully financed by our operating cash flow. in the demand reflect the seasonal effect of the second quarter of the year, where the temperatures were milder compared to the previous quarter. On the composition of the offer, hydroelectric power generation is being impacted by low water levels. Total system install capacity remains quite stable. Now to conclude, we would like to share our takeaways for the second quarter of the year. Starting from our growth plan that is already adding around 300 MW of installed capacity, reflecting our active focus on growth opportunities, with the Brigadier López combined cycle closing and the San Carlos Solar Farm that are nearing conclusion, and the Alamitos Wind Farm that is currently in the design phase. We are also looking forward to the developments in the battery storage center process and hydroconcession development. On the operational front, we have highlighted our operation efficiency and availability advocacy for high standards, which are reflected in the Central Costaneras-Misubishi Combined Cycle maintenance works and the upgrade of the steam turbine 6 from Central Puerto's complex. On the regulatory front, we expect additional government disclosure to the ongoing electricity market reform, including economic signals to expand our self-managed procurement of fuels as allowed under Resolution 21. Thank you for your attention. Now we can move to the Q&A session.

Thank you very much for the presentation. We will now begin the Q&A section for investors and analysts. If you wish to ask a question, please click on Raise Hand. If your question has already been answered, you can leave the queue by clicking on Put Hand Down. Please hold while we poll for questions. Our first question comes from Martin Arancet with Balance. You can open your microphone.