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

Good morning and welcome. This is Lucila Gamacho, investor relations and equity manager at Edenor. On behalf of Edenor, we would like to thank everybody for participating in this conference call to discuss the results of the first quarter of 2026. We will also highlight important recent developments and advances in our report to strengthen our position as an energy leader. If you would like to receive our earnest release or presentation, you can download them easily from the investor relations sections of our website located at www.edenor.com or contact our investor relations team to request the development. 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 Eden Oil Management and on the information currently available to the company. They involve risks and uncertainties and assumptions because they are related to the future events 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 Edenor and could cause results to differ materially from those expressed in such forward-looking statements. Now, let me pass the call to Germán Ralf, our CFO, who will guide us through the presentation.

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 Edenor's performance during the first quarter of 2026. Agenda, highlights and regulatory framework. Before moving to discussion of details of our financial performance during the first quarter of 2026, I would like to take a few minutes to highlight that Edenor has demonstrated a major improvement in results over the last several years. led by a restoration of healthy regulatory environment and a substantial improvement economic situation in Argentina. These factors, combined with our focus on continuous operational improvements and modernization, have positioned the company well to take advantage of a highly attractive growth opportunity in Argentina. We have now completed our full year since the approval of the implementation of the five-year tariff, including monthly automatic adjustments. By the end of April of 2025, the five-year tariff review process for 2025 and 2030 period was approved, which included an automatic adjustment based on a formula for the value-added distribution weighted 33% by a consumer price index and 67% by the wholesale price index, plus an additional of 0.42% above inflation in real terms. On May 21 of 2025, we normalize our debt with CAMISA. We are, since April 2024, paying 100% of the current monthly invoices for energy purchases from CAMESA and are fully complying with payments under our existing payment plan with CAMESA, that call for monthly payments over 64 and 62 remaining installments. In October 2025, Adenauer submitted the regulatory asset claim for differences in tariff adjustments between 2019 and 2023, as calculated by independent third parties. The Secretary of Energy has been analyzing the company's complaints. In May 2026, a new law is being discussed in Congress regarding the specific claim. During 2025, the VAT increased a total of 37% against a 32% raise in the consumer price index and a 41% devaluation of the peso against the US dollar. The average monthly tariff adjustment since August of 2024 through year 2025 was 3.1%. In December of 2025, the regulatory entity authorized the company to modify the frequency of meter readings from bimonthly to monthly. The regulations aims to provide us users with a clearer and more transparent and more timeline signal regarding their energy consumption. The impact was reflected in the first quarter of 2026. The accumulated monthly adjustment VAT of 9% versus an inflation rate of 9% is the first quarter 2026 numbers. In April, the VAT adjusted was 2.04% and in May, 4.1%, including the E-factor. In addition, as we mentioned above, the government also submitted a bill to the Argentine Congress proposing a framework to regularize our regulatory assets for past differences status of 2019 to 2023. We believe that this event has positioning the company to be more dynamic with more favorable financial results going forward. This will enable us to continue our strong investment program and further improve our services. In May 2006, the government appointed the new authorities for the new gas and electricity regulatory agency, each of whom has strong background and broad experience in the energy field. The normalization of tariffs has been clearly reflected in improvement in E&R's financial performance, with a 127% raise in EBITDA for the first three months of 2026. The collectivity rate has consistently remained high, being 95.68% in the first quarter of this year. Financial Results Revenues Revenues in the first quarter of 2016 were 847 billion pesos, which was flat in real terms versus the prior year, which was due to benefit of higher tariffs and subsidies reduction, offset by a slight decline in volume and a lower energy purchase cost, which are direct pass-through to consumers. The quarter reflects the positive impact of the monthly measuring of energy consumption. Energy sales evolution. A north of the customers in the quarter rose to 3.4 million, up 1.4% versus the prior year. This raise was mainly due to an increase in residential and medium-sized commercial clients. The raise was helped by market disciplinary measures, including the installation of 2,765 energy meters in the first quarter of 2016. which are designated to convert informal and reported connections into fully transparent connections in an electricity distribution system. Energy sales for the first quarter were down 1.6% year-to-year to 5,853 gigawatts, mainly driven by the impact of lower demand from residential customers due to lower temperatures during the summer and for the effect of the economic and industrial demand. Distribution margin. For the first quarter of 2016, our distribution margin rose 13% to 387 billion pesos, mainly due to the increase in tariffs, which have an average of 3% per month, as we said before. EBITDA. Looking at EBITDA for the first quarter of 2016, EBITDA rose 127% to 191 billion pesos, an improvement for from the 84 billion pesos registered in the first quarter of 2026. The main improvement was due to a strong revenue as a result of the five-year tariff review, including a 320% increase initially adjusted in February of 2024, plus additional monthly tariff adjustments in an average of 3%. The accumulated VAT increase in 2026 was 37% versus inflation of 32%, and for the January-March 2026 period, the VAT rose 9% and inflation was 9%. Energy purchase costs in the first quarter declined 9% due to a lower demand from residential customers due to upset low temperatures during the summer, lower economic activity at industrial times, and an adjustment in energy purchase price that were lower than inflation. I would like to take a few minutes to highlight our ongoing efforts to manage costs, where we saw important progress, which made an important contribution to our raise in EBITDA. Operating expenses for the first quarter of 2026 decreased by 9%, reaching a total of 282 billion pesos. Cost management contributed to the positive results, with a focus on streamlining operations and technology. The savings are related to our OPEX review plan initiated in 2025, including the development and retirement plan aimed at proportioning current renewal and workforce optimization, which resulted in a 5% reduction in salary expenses and a 37% decrease in pension cost plans. User consumption declined 22% due to inventory management optimization and third-party services costs were down 14%. Entry penalties were down substantially 45% driven by the change in the valuation mechanisms as defined by the regulator and improved the service indicators. Finally, in March of 2016, We recognize spending receivables from the national government for a total of 20 billion pesos. This is a mutual agreement at Guardamarco based on the cost of energy consumed in the lower income neighborhoods in 2024 and 2025. Next, financial results. In the first quarter, the net expense financial expenses declined 23% to 71 billion pesos due to primarily a reduction of the impact of interest expenses on the debt with CAMESA and the realization of debt obligations according to this agreement signed with CAMESA last year. The first quarter saw a profit of 119 billion pesos up 147% versus the first quarter to be identified led by the positive impact of the tariff adjustments and the increasing webcam and lower operating expenses topics we invested 70 billion pesos in the first three months of the year our investment spending reflects our firm commitment to improve service quality which is reflected in significant improvements in our main operating indicators we highlight our key projects that are underway, including the new substation in Moreno and the expansion of the Pantallari substation. We are also planning additional projects for 2026, including replacement of New Bridge substation with the new facilities and the interconnection of the Colegiali substation in June of this year. We also continue to work to transform our network into a smart network by installing increasing numbers of remote control points. There is a provision point as well as more meters. These allow us to quickly resolve problems that raise in the network remotely, which is where we do isolation of any part of the system experience a service problem and establish service very quickly. Operating indicators. Now let's take a look of a few of the key operating indicators. Energy losses. Our energy losses for the first few months were 15.3%, down from 15.7% at the end of December of 2025. Reducing energy losses is a top priority for us. Our multidisciplinary teams are working constantly to find innovation ways to combat energy losses. These efforts are 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 15.3% total losses are full of 9.62% are losses recognized by the regulatory entity in our targets. The first three months of 2026 energy losses were 15.3%. Quality of Service As mentioned earlier, our investment plan is continuing to contribute the improvement in service quality by reducing the duration and frequency of outages, which have been a downward path since 2017. These levels are and have been comfortably exceeding the levels required by the regulatory For the first quarter, the CIDI and CIFI service quality indicators showed continuing strong performance at 6.1 hours and 2.9 average outages per client at record low levels and down 78% and 67% respectively compared to the 2017 levels. This recovery in services may be due to the strong consistent level of investment that the company has been doing for the last nine years investments have been focused on implementing improvements in operational process and the adoption of technology applied to the operations and management of the network financial debt in february the company reopened a senior node class 7 for an amount of 19 million dollars this brought the total outstanding senior node 7 to 475 million dollars In March, the company prepared the senior notes class 8 for $80 million plus interest. As of the end of March, the total senior notes plus loans outstanding was $832 million with a net debt at March 31, 2026. The total net debt is $463 million. A key positive over the last few years, which continues in 2026, has been improved in our ratings in recent years as a result of improvements in our risk profile due to important changes in the regulatory framework. On March of 2026, FIX upgraded the long-term issuance rates from A to A+, and the short-term issuance rate from A1 to A1+. financial debt recent developments last month in april of 2026 we raised 550 million dollars in a senior note plus 10 with offers of nearly 1.2 billion dollars and completed a cash tender of 175 million dollars in siri notes class 7. the tender reduced the outstanding senior notes class Use of proceeds was applied for the cancellation of $175 million in senior notes class 7 plus $26.7 million for a portion of senior notes class 3 and 5. This enabled us to achieve a $200 million reduction in net debt. Financial debt position. This brought our total senior notes outstanding pro forma to US$1 billion. As you can see here, we have a varied manager maturity schedule with no maturities for the next years. New businesses. We want to share with you our vision of new businesses and how we are positioning the company for a long-term expansion, diversification and value creation. As a starting point, in 2024, the company amended its corporate bylaws for the purpose to provide greater flexibility and to actively capture opportunities arising from the energy transition and the broader electricity electrification of the economy. This was a delivered and strategic decision that opens the door to a much more wider set of growth avenues. Our business development is anchored in two core drivers, capturing growth in the energy sector and expanding through both vertical and horizontal integration. In terms of strategy, we intend to capitalize on a dynamic energy M&A landscape, leveraging to an ongoing prioritization program which presents several competing opportunities across the energy value chain. We will also seek to drive synergies through integration with our core business while remaining alert to opportunities in the complementary assets. In the terms of scope, the sector we are targeting, including electric transportation and grid expansion, generation and storage, electric mobility, including oil and gas downstream, energy infrastructure and natural gas distribution and commercialization. A broad and well-diversified set of verticals and aligned with the energy sector is heating. The bottom line is clear. This strategy is designed to deliver expansion, diversification, and value for both our investors and our consumers. Final remarks. We remain highly optimistic about our future. Results have benefited significantly from tariff normalization. We have now complemented a full year since the approval of the implementation of the five-year tariff review with an EBITDA rating a sharp of 127%. year to year in the first quarter, $291 million. The overall improvement has underpined an improvement in debt ratings and working capital. It has also enabled us to continue our investment program with positive results in all our main key operating indicators. With the regularization of our debt with Camisa, all outstanding balances are now included in key payment plans to be paid over 64 and 72 remaining installments. This week, as we said, the national government also submitted a draft of a law to the Argentine Congress to provide a framework to regularize the regulatory asset claim for the difference of tariff adjustments since 2019 and 2023. Our diversified financial strategy has also enabled us to have consistent access to local and international capital markets. Finally, I would like to mention that we remain committed to looking for other opportunities to take advantage of our enormous changes taking place in Argentina and in the global energy market. This was reflected in our change in 2024 in our strategy to provide increasing flexibility and capture opportunities related to energy transition and electrification of the economy. With this, now we would like to open to call to your questions. To ask a question, please send a written message to IR Eleanor through the question and answers menu. Identify yourself and say that you have a question. We thank you very much for your support and your engagement as shareholders and also as co-holders. We know that in October of last year, sorry, we present the claim of the regulatory asset base and the government has sent last week to Congress to pass a law regarding this consideration. And now this is in the process of the commission of the Congress, of the Energy Commission, analyzing the project of the law. And then we go to deputies and then to senators. So it will take probably one month or more than a month to come to an agreement with that from the government side.

Another question from Andres. How much should we expect for CAPEX to be during 2026?

Investment in the first quarter was 70 billion pesos, approximately 49 million dollars. For 2026, we anticipate CAPEX will be in the range of 170, 180 million dollars. This is somewhat lower than 2025 spending, which was higher for specific reasons, particularly the certain market conditions in 2024 and 2025. We expect our CAPEX program will be very robust and solid with projects that are spending current project range. This should enable us to continue to expand the network and in coming years to take advantage of our growing market and continue to adapt for new technologies.

First of all, congratulations on the strong set of results delivered this quarter regarding the operation performance aside from the 20 billion pesos non-recurring gain related to the Cuadro Marco, were there any other one-time benefits in fact in the margin expansion? Furthermore, are there other relevant drivers you would highlight? Any further information to help isolate the running run rate and better understand the machine's sustainability for the rest of the year would be greatly appreciated. Thank you.

Okay, thank you for the congratulations. We are very proud that we have very good results for this quarter. I'm completely according to what you said is the $20 billion pesos effect of AcordoMarco is one time effect. And there is another effect that is the metering of monthly metering instead of bi-monthly metering has also increased the revenue base of this quarter. And it's also one time effect. So we are expecting for EBITDA according to what the rating agencies have established. The rating agencies are thinking that our EBITDA for the full year is going to be close to $320 million. So that will be the run rate that we suggest you to consider when you do your predictions. Okay, if there are no more questions, thank you very much for participating in our quarterly conference call. And please do not hesitate to contact us or our investor relations department for any further inquiries you may have. Good morning to everybody and have a nice weekend. A nice week. Sorry.