Empresa Distribuidora Y Comercializadora Norte S.A. (Edenor) American Depositary Shares

Good morning, my name is Lucila Ramacho, Investor Relations Deputy Manager at the ENOR. On behalf of the ENOR, we would like to thank everybody for participating in these conference calls to discuss the results of the second quarter that ends in June 30, 2025. We also have an important recent development and advances in our efforts to strengthen our position as an energy leader. If you would like to receive our annual release or presentation, you can download them easily from the investor relations sections on our website located at www.edenor.com or contact our investor relations teams to request the document. This event is being recorded. After the company remarks are completed, there will be a question and answer section for which you may submit questions through the webcast chat. Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of Adenauer Management and on information currently available to the company. They involve risks, uncertainties, and assumptions because they relate to the future event and therefore depends on circumstances that may or may not occur in the future. Investors should understand that general economic conditions, industry conditions, and other operating factors could also affect the future results of the denier and could cause results to differ materially from those expressed in such forward-looking statements. Now, let me pass the call to Germán Ralph, our CFO, who will guide us through the presentation. Thank you.

Thank you, Lucila. Good morning and welcome to everyone. Your presence here is very important to us and we hope to provide you with a good understanding of Adenor's performance during the second quarter of 2025. Highlights and relevant events. Before moving to the discussions of details of our financial performance during the second quarter of 2025, I would like to take a few minutes to highlight some very relevant and positive developments as shown in slides number 5. Accumulated EBITDA for the first six months rose to 289 billion pesos, which reflects a sharp improvement in operating results due to the tariff increases starting with the 319% adjustment that was received in February 2024, followed by 4% average monthly value-added distribution adjustments since August of last year, plus the five-year tariff review implemented since May of 2025. Their results also includes a gain of 168 billion pesos due to the positive effect of the regularization of the agreement with CAMESA for the payment of energy purchases from previous periods. Excluding this gain, the accumulated EBITDA as of June 30, 2025 is 121 billion pesos. During May 2025, all pending balance with CAMESA for past energy purchases were included in three payments plans of 72 or 75 installments, depending on the plan. Last week we successfully issued 95 million dollars in new nodes, with 80 million dollars in class 8 nodes and 20 billion pesos in class 9 nodes. As far as our credit ratings is concerned, in June, Standard & Poor's raises its global scale rating from CCC+, to B-, with a stable outlook. During July 2025, Standard & Poor's upgraded the company's institutional and global negotiations bond program rating on the national scale from Republic of Argentina BBB to Republic of Argentina BBB-, with a stable outlook. At the same time, Moody's raises its long-term global scale rating from CAA1 to B3, changing its outlook from stable to positive. regulatory framework. As we already highlighted, the tariff increases that were given in February 2024 and the average monthly increases of 4% since August 2024, followed by the implementation of the five-year Tariff Review, have driven a sharp rise in the operating results, with in the second quarter of 2025 EBITDA rising 222 billion pesos from 108 billion pesos in the second quarter of 2024. The five-year tariff review granted the company an increase of 14.35% over inflation. This is being applied gradually in order to limit the inflation effects on the broader economy in Argentina, which is in line with the government's status policy. 3% went into effect in May 1st, 2025, and further adjustments of 0.42% are being implemented over inflation, as I said before, from June 1st, 2025 until November 1st, 2027, plus a monthly adjustment for inflation with a formula that made up of 33% of consumer price index and 67% wholesale price index. Wholesale Practice Index always follows evaluation. Together, these adjustments total 3.24% for June, 0.75% in July, and 2.1% in August. CAMESA debt. As I mentioned earlier, the tariff increases that we have received since February 2024 have been a key driven of improvement in earnings and cash flow, which will allow us to pay 100% of the current monthly invoices for the energy purchase since April 2024, as well as paying all the financing plans that we have outstanding with CAMISA. On May 21, we signed a plan to regularize debt for energy purchases that have not been included in the existing payment plans over a total of 72 installments with a 12-month grace period and an interest rate of 3%. interest rates used by CAMESA adjusted semi-annually. In addition, a prior existing plan, whose installments were adjusted based on the energy price in megawatts, was converted into pesos at the energy applicable megawatt price of October 2024, with an interest rate of also 50% of the interest rate used by CAMESA. with the same condition as the current plan, 75% installments remaining as of May, with no grace period. The positive impact of these agreements resulted in a gain included in the second quarter of 2025, resulting of 168,220 million pesos. The regulatory claim for past tariff adjustment differences is still pending and represent approximately three to four times what we owe to Jamesa. Financial results. Revenues. Revenues rose 2% in real terms in the second quarter of 2025 to 622,989 million pesos versus 608,876 million pesos for the same period of last year. This was mainly due to tariff normalization as explained before. Energy sales evolution. As mentioned, the second quarter of 2025 energy sales volume increases 1.85% year-to-year to 5,668 GW, led by the effect of lower temperature and demand from residential customers. Illinois customers base at the second quarter of 2025 reached 3.36 million people, 2% more versus the second quarter of 2024. This raise was mainly due to an increase in residential and medium-sized commercial clients. The raise was helped by market discipline measures, including the installation of 9,951 energy meters in the second quarter of 2025, which are designated to convert informal, unreported connections into fully transparent connections in the electricity distribution system. Distribution Margin For the first six months of 2025, our distribution margin rose to 523 billion pesos, mainly due to the increase in the tariff as a result of the tariff normalization process, partially offset by higher energy costs due to the reduction in subsidies and higher sales volumes. EBITDA. Looking at the EBITDA for the second quarter of 2025, EBITDA of 222,338 million pesos was recorded and an improvement for the 107,969 million pesos registered in the same period of the previous year. A gain of 168 billion pesos is included due to the positive effect of the reorganization agreements with CAMESA for the outstanding balance. With this effect, the accumulated EBITDA as of June 30th is 121 billion pesos without the effect of CAMESA debt. Positive impact was due to higher revenues as a result of the increase year-to-tariff review included the 319% in August and all the monthly adjustments that have been given since August 2024 of 4% on average. Increases cost of energy purchase due to the reduction in subsidies which established limits of 250 kilowatts in customers' N3 and 350 kW in customers' N2. Net financial expenses. Net financial expenses of 110 billion pesos in the second quarter of 2025 were lower than the same period of the previous year, less 40% versus the second quarter of 2024, primarily due to the reduction impact of interest on debt with CAMESA and interest on penalties. Net results. On the net income line, Elenor posted a net profit of 93 billion pesos compared to a profit of 68 billion pesos in the second quarter of 2024. The difference mainly due to much lower accounting gains related to inflation due to the sharp drop of year-to-year of inflation and the higher income tax charges, offset by the positive effect of the CAMESA agreement. Not included the CAMESA agreement resulted benefits from improvement operating results and lower financial expenses. CAPEX. As of June 30th, 2025, we invested 163 billion pesos in line with our 225 CAPEX plan. Our investment spending reflects our firm commitment to improve service quality, which is reflected in the significant improvement in our main operating indicators. We highly our expansion of Zapalorto substation, the new 132 electroduct Zapalorto Merlo and the new step-down transformer in Puerto del Lagos. We continue to work to transform our network into a smart network by insulating increasing numbers of remote control points, telesupervision points, as well as smart meters. This allow us to solve problems that raise in the network remotely and quickly, which we do by isolating any part of the system experience a service problem and reestablishing the service to the rest of the customers. We can do this without sending a team physically to the location within a few minutes. More than 44% of the customers are resolved in less than three minutes. Let's look at the key operating indicators. Energy losses. Our energy losses for the last 12 months were 15.55%. as of the second quarter, little change from 15.18% in 2024. Reducing energy losses is a top priority and our multidisciplinary teams are working constantly to find innovation ways to combat energy losses. These efforts are completely complemented by our market discipline initiatives that are aimed at curbing inefficiencies and irregularities. Also, analytical tools powered by artificial intelligence have improved inspection efficiencies, and our market discipline actions continue to detect and rectify irregular connections. It is important to remember that the 15.55% total loss, a fall of 9.58%, are losses recognized by the regulator in our tariff. Quality of services. As mentioned earlier, our investment plan is continued to contribute improvements in service quality by reducing the duration and frequency of outages, which have been on the down path since 2017. These levels are and have been comfortable exceeding the levels required by the regulatory entity. For the second quarter, the CIDI and CIFI service quality indicators shows continuous strong performance at 7.8 hours and 3.1 average outages per client in a quarter. At recorded low levels and down 72% and 66% respectively compared to 2017 levels. This recovery in services is mainly due to the strong level of investment that the company has been doing since then. Investment has been focused on implementing improvements in operational process and the adoption of technologies applied to the operations and management of the network. Financial debt. On August 7, we successfully issued $95 million in Class A and 9 nodes at attractive rates. Class A nodes in dollars. amount 80 million dollars receive offers of close to 81 million dollars interest rate 8.5 percent with b annual payments amortization 12 months due to in august 2026 argentine law class one class nine shares in class nine sorry in pesos amount 20 billion pesos approximately 15 million dollars receive offers for 25 billion pesos. Interest rate, Tamar, which is the local interest rate, plus 6, with quarterly installments. Amortization bullet also, 12 months due in August 7, 2026, Argentine law. Financial debt. With the improvement in our risk profile due to important changes on the regulatory front, as we mentioned before, Standard & Poor's raises its global scale rating from CCC to B- with a stable outlook. Standard & Poor's also upgraded the company's institutional and global renunciation bond program rating on the national scale from BBB to BBB- with a stable outlook. Furthermore, Moody's raises its long-term global scale rating from CAA1 to B3, changing its outlook from stable to positive. As you can see, the maturity schedule of the debt as of June 2025. In August, we canceled notes class 6 for 18 million pesos, which was make a total of 54 million dollars, sorry, canceled during 2025. Closure remarks. The five-year tariff review was completed according to schedule and improved the long-term outlook of the company and providing more visibility for ratings with accumulated EBITDA of 289 billion pesos in the first months of 2025. Remember that taking out the Caimesa effect is 122 billion pesos, the EBITDA of 2025 first six months. Camisa debt regularization, all outstanding balance are now included in the three payments plans to be paid over 72% and 72 and 75 installments. The company successfully completed bonds issue of $95 million. As I said, 80 million in dollars and 20 billion in pesos. As part of our energy transition strategy and the expansion of our corporate business, we recently made our first minority investment in the lithium and copper business in two projects in the pre-exploration stage in the northern Argentina, Polymetales Copper and the Antofagia Cartaderas Anacasti Lithium. With this, now we would like to open the call to questions. To ask a question, please send a written message to IR Eleanor through a question and answers menu. Identify yourself and stating that you have a question. We thank you again for your support and your engagement as a shareholder and bondholder. Thank you very much for participating in our quarterly conference call. Please do not hesitate in contacting our Investor Relations Department for any further inquiries you may have. Good morning to all of you and have a nice day.