Q2 2026 Empresa Distribuidora y Comercializadora Norte SA Earnings Call

August 11, 2026

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[Company Representative] (EDENOR): To take advantage of highly productive growth opportunities in Argentina. We have now completed a full year since the approval and implementation of the five-year tariff review for the period 2025-2030, including monthly automatic adjustments. In April 2026, the five-year tariff review for 2025 and 2030 was approved, which includes automatic adjustments based on a formula for the Value-Added Distribution amount, weighted 33% by Consumer Price Index and 67% by Wholesale Price Index, plus an additional 0.42% monthly adjustment above inflation in real terms. In May 2025, we normalized our debt with CAMMESA. Since April 2024, we have been paying full 100% of the current monthly invoices for energy purchase from CAMMESA, and we are fully complying with the payments under our existing plans with CAMMESA that call for monthly payments over 60 and 69 remaining installments.

Speaker #2: To take advantage of highly productive growth opportunities in Argentina, we have now completed a full year since the approval and implementation of the 5-year tariff review for the period 2025–2030, including monthly automatic adjustments.

Speaker #2: In April of 2026, the 5-year tariff review for 2025 and 2030 was approved, which includes automatic adjustments based on a formula for the value-added distribution amount weighted 33% by consumer prices index and 67% by wholesale price index, plus an additional 42.042% monthly adjustment above inflation in real terms.

Speaker #2: In May of 2025, we normalized our debt with CAMESA, since April of 2024 we have been paying full 100% of the current monthly invoices for energy purchase from CAMESA and we are fully complying with the payments under our existing plans with CAMESA that call for monthly payments over 60 and 69 remaining installments.

Speaker #2: In October of 2025, EDENOR submitted the regulatory asset claim for the difference in tariff adjustments between 2019 and 2023, as calculated independent third parties.

[Company Representative] (EDENOR): In October 2025, EDENOR submitted the regulatory asset claim for the difference in tariff adjustments between 2019 and 2023, as calculated by independent third parties. Following up on this, the government submitted a draft bill to the National Congress of Argentina proposing a framework to regularize our regulatory asset for the past differences in tariffs from 2019 to 2023 period. During 2025, the value-added amount increased a total of 37% against 32% raise in the Consumer Price Index and the 41% devaluation of the peso against the USD. The average monthly tariff adjustment since 2024, August through year-end 2025, was 3.1%. In December 2025, the ENRE authorized the company to modify the frequency of meter readings from bimonthly to monthly. The regulation aims to provide users with a clearer, more transparent, and more timely signal regarding their energy consumption.

Speaker #2: Following up on this, the government submitted a draft bill to the Argentine Congress proposing a framework to regularize our regulatory asset for past differences in tariffs from the 2019 to 2023 period.

Speaker #2: During 2025, the value-added amount increased a total of 37% against 32% raise in the consumer price index and the 41% devaluation of the peso against the US dollar.

Speaker #2: The average monthly tariff adjustment since 2024 August through year-end 2025 was 3.1%. In December of 2025, the ENRE authorized the company to modify the frequency of meter readings from bimonthly to monthly.

Speaker #2: The regularization aims to provide users with a clearer, more transparent, and more timely signal regarding their energy consumption. The impact was reflected in the first quarter of this year.

[Company Representative] (EDENOR): The impact was reflected in the Q1 of this year. For the Q2 2026, the accumulated monthly adjustments to the Value-Added Distribution amount were 20% versus an inflation rate of 17%. In July, the VAT adjustment was 2.95%, and in August was 1.78%. We believe that these events have positioned the company to be more dynamic, with more favorable financing results going forward. This will also enable us to continue our strong investment program and further improve our service level and service quality. In May 2026, 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 the tariff has translated into significant improvements in EDENOR's financial performance.

Speaker #2: For the second quarter of 2026, the accumulated monthly adjustments to the value-added distribution amount were 20% versus an inflation rate of 17%, and in July the VAT adjustment was 2.95%, and in August was 1.78%.

Speaker #2: We believe that these events have positive positioned the company to be more dynamic, with more favorable financing results going forward. This will also enable us to continue our strong investment program and further improve our service level and service quality.

Speaker #2: In May 2026, the government appointed the new authorities for the new gas and electricity regulatory agency, each of whom has a strong background and broad experience in the energy field.

Speaker #2: The normalization of the tariff has translated into significant improvements in EDENOR's financial performance. Excluding the one-off gain recognized of 224 billion pesos in June 2025 related to the CAMESA settlement, EBITDA increased by 94% year-to-year during the first 6 months of 2026.

[Company Representative] (EDENOR): Excluding the one-off gain recognized of ARS 224 billion in June 2025 related to the CAMMESA settlement, EBITDA increased by 94% year-to-year during the first six months of 2026. The collectability rate has consistently remained high, being 96.27% in Q2. Financial results, revenues. Revenues in Q2 2026 were ARS 918 billion, which is up 10% year-over-year in real terms versus the prior year, helped by higher tariffs and reduction in subsidies. Energy sales evolution. EDENOR's total number of customers in the quarter rose to 3.41 million clients, up 1.3% versus the prior year. This rise was due to an increase in the number of residential, medium-sized, and small-sized commercial clients, industrial, and metering system.

Speaker #2: The collectivity rate has consistently remained high, being 96.27% in the second quarter. Financial results: revenues. Revenues in the second quarter of 2026 were 918 billion pesos, which is up 10% year over year in real terms versus the prior year.

Speaker #2: Helped by higher tariffs and reduction in subsidies. Energy sales evolution: EDENOR's total number of customers in the quarter rose to 3.41 million clients up to 1.3% versus the prior year.

Speaker #2: This raise was due to an increase in the number of residential medium-sized and small-sized commercial clients, industrial and winding system. The rise was helped by market discipline measures, including the installation of 4,863 energy meters in the second quarter of 2026, which are designed to convert informal unreported connections into fully transparent connections in electricity distribution system.

[Company Representative] (EDENOR): The rise was helped by market discipline measures, including the installation of 4,863 energy meters in Q2 2026, which are designed to convert informal, unreported connections into fully transparent connections in electricity distribution system. Energy sales for the quarter were 1.9% year-to-year to 5,676 gigawatts, driven by the impact of demand from residential customers due to lower temperature and demand from medium-sized commercial clients. Distribution margin. For Q2 2026, our distribution margin rose 1% year-to-year to ARS 335 billion. For the first six months, the accumulated distribution margin was ARS 748 billion, 7% more versus six months of 2025, due to the increase in the tariff and the reduction in subsidies in the energy cost, which has averaged 3% per month. EBITDA.

Speaker #2: Energy sales for the quarter were up 1.9% year-over-year to 5,676 gigawatt-hours, driven by increased demand from residential customers due to lower temperatures and from medium-sized commercial clients.

Speaker #2: Distribution margin: for the second quarter of 2026, our distribution margin rose 1% year-to-year to 335 billion pesos, and for the first 6 months the accumulated distribution margin was 748 billion pesos, 7% more versus 6 months of 2025.

Speaker #2: Due to the increase in the tariffs and the reduction in subsidies in the energy cost, which have averaged 3% per month. EBITDA: looking at EBITDA during the first 6 months of 2026, EBITDA totalized 314 billion pesos, compared to 386 billion pesos in the same period of 2025.

[Company Representative] (EDENOR): Looking at EBITDA, during the first six months of 2026, EBITDA totalized ARS 314 billion compared to ARS 386 billion in the same period of 2025. The decline was because of the one-time gain of ARS 225 billion that was recognized in Q2 2025. That was related to the settlement agreement with CAMMESA for outstanding balances. Excluding this non-current effect, EBITDA would have increased 94% year-to-year. The improvement in EBITDA during the first six months of 2026, excluding the CAMMESA settlement effect, was primarily driven by stronger revenues as a result of the five-year tariff review, including the 320% initial adjustment in February 2024, plus additional monthly tariff adjustments since then that have an average of 3%.

Speaker #2: The decline was because of the one-time gain of 225 billion pesos that was recognized in the second quarter of 2025, which was related to the settlement agreement with CAMMESA for outstanding balances.

Speaker #2: Excluding this non-current effect, EBITDA would have increased 94% year-over-year. The improvement in EBITDA during the first six months of 2026, excluding the CAMESA settlement effect, was primarily driven by stronger revenues as a result of the 5-year tariff review, including the 320% initial adjustment in February 2024, plus additional monthly tariff adjustments since then that have averaged 3%.

Speaker #2: The accumulated VAT increase in 2025 was 37%, versus inflation of 32%. From January to June 2026, the VAT rose more than 20%, in line with 17% inflation.

[Company Representative] (EDENOR): The accumulated VAT increase in 2025 was 37% versus inflation of 32%, and from January to June 2026 period, the VAT rose more than 20%, in line with 17% inflation. Higher energy purchase cost, reflecting in the reduction in government subsidies. ARS 27 billion were recognized in June 2026 for pending receivables from the national government under a mutual agreement based on the cost of energy consumed in lower-income neighborhoods during 2024 and 2025. I would like to highlight our ongoing efforts to manage costs, where we saw important progress, which made an important contribution to the rise in EBITDA. Operating expenses for the first six months decreased by 8%, reaching a total of ARS 603 billion. Cost management contributed to the positive results with a focus on streamlining operations and technology.

Speaker #2: Higher energy purchase cost, reflecting in the reduction in government subsidies. 27 billion pesos were recognized in June of 2026 for pending receivables from the national government under a mutual agreement based on the cost of energy consumed in lower income neighborhoods during 2024 and 2025.

Speaker #2: I would like to take a highlight of our ongoing efforts to manage costs, where we saw important progress, which made an important contribution to the rise in EBITDA.

Speaker #2: Operating expenses for the first 6 months decreased by 8%, reaching a total of 603 billion pesos. Cost management contributed to the positive results, with a focus on streamlining operations and technology.

Speaker #2: The savings are related to our opex, review plan initiated in 2025, including the development and retirement plan aimed at promoting talent-driven renewals and for workforce optimization.

[Company Representative] (EDENOR): The savings are related to our OPEX review plan initiated in 2025, including the development and retirement plan aimed at promoting talent renewals and for workforce optimization, which results in a 2% reduction in salaries expenses and a 37% decrease in pension plan cost. Material consumption declined 39% due to inventory management optimization. ENRE penalties were down a substantial 24%, driven by changes in evaluation mechanisms as defined by the regulatory entity and improved service indicators. Net financial results. In the Q2, the net financial expenses declined 28% to ARS 106 billion, due primarily to a reduced impact of interest expenses on the debt with CAMMESA and the realization of our debt obligation according to the signed agreement. This more than offset the higher interest expense on a new debt outstanding. Net results.

Speaker #2: Which results in a 2% reduction in salaries expenses and a 37% decrease in pension plan cost. Material consumption declined 39% due to inventory management optimization.

Speaker #2: Henry penalties were down a substantial of 24%, driven by changes in evaluation mechanisms as defined by the regulatory entity and improved service indicators. Net financial results: in the second quarter, the net financial expenses declined 28% to 106 billion pesos due primarily to a reduced impact of interest expenses on the debt with CAMESA, and the realization of our debt obligation according to the signed agreement.

Speaker #2: This more than offset the higher interest expense on a new debt outstanding. Net results: the second quarter saw a profit of 31 billion pesos, down 75% versus the second quarter of 2025, which was due to the comparison against the second quarter of 2025 profits of 224 billion pesos, which includes the gain from the settlement agreement with CAMESA.

[Company Representative] (EDENOR): The Q2 saw a profit of ARS 31 billion, down 75% versus the Q2 of 2025, which was due to the comparison against the Q2 of 2025 profits of ARS 224 billion, which includes the gain from the settlement agreement with CAMMESA. Adjusting for this, the underlying operating trends were positive because of the positive impact of tariff adjustments and cost reductions. CapEx. We invested ARS 92 billion in the Q2 of 2026, with accumulated CapEx for the six months of 2026 was ARS 167 billion. Our investment spending reflects our firm commitment to improve service quality, which is reflected in the significant improvement in our main operating indicators.

Speaker #2: Adjusting for this, the underlying operating trends were positive because of the positive impact of tariff adjustments and cost reductions. Capex: we invested 92 billion pesos in the second quarter of 2026, with accumulated capex for the 6 months of 2026 was 167 billion pesos.

Speaker #2: Our investment spending reflects our firm commitment to improve service quality which is reflected in the significant improvement in our main operating indicators. During 2024 and 2025, investments were above historical average level, in order to complete the construction of new substations and continue the enhancement of telecontrol and telesupervision.

[Company Representative] (EDENOR): During 2024 and 2025, investments were above historical average level in order to complete the construction of new substations and continue the enhancement of Telecontrol and Telesupervision, as well as to install smart meters for all the large customers. We highlight our key projects that are underway, including the new substation in Moreno and the expansion of the Bancalari substation. We are also planning additional projects for 2026, including replacing the Newbery substation with the new facility and the interconnection to Colegiales substation in June of this year. We also continue to work to transform our network into a smart network by installing increasing number of remote control points, Telesupervision points, as well as smart meters. These allow us to quickly resolve problems that arise in the network remotely, which we do by isolating any part of the system, experience a service problem, and then re-establishing service.

Speaker #2: As well as the installed smart meters for all the large customers. We highlight our key projects that are underway, including the new substation in Moreno and the expansion of the Bancalari substation.

Speaker #2: We are also planning additional projects for 2026, including replacing the Newbery substation with the new facility and the interconnection to Colegiales substation in June of this year.

Speaker #2: We also continue to work to transform our network into a smart network, by installing increasing number of remote control points, telesupervision points, as well as smart meters.

Speaker #2: This allow us to quickly resolve problems that arise in the network remotely, which we do by isolating any part of the system experience as service problem and the re-establishing service.

Speaker #1: Excuse me, the Colegiales substation will be connected during August of this year, not June of this year. The operating indicators: now let's look at a few of the key operating indicators.

[Company Representative] (EDENOR): Excuse me, the Colegiales substation will be connected during August of this year, not June of this year. The operating indicators. Now let's look at a few of the key operating indicators. Energy losses. Our energy losses for the Q2 of 2026 were 15.82%. 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 complemented by our market discipline initiatives that are aimed at curbing inefficiencies and irregularities. Also, analytical tools powered by artificial intelligence have improved inspection efficiency, and our market discipline actions continue to detect and rectify irregular connections. It is important to remember that of the 15.82% total losses, a full 9.56% are losses recognized by our regulatory entity in our tariff. Quality of service.

Speaker #1: Energy losses: our energy losses for the second quarter of 2026 were 15.82%, reducing energy losses is a top priority and our multidisciplinary teams are working constantly to find innovation ways to combat energy losses.

Speaker #1: This 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 efficiency, and our market discipline actions continue to detect and rectify irregular connections.

Speaker #1: It is important to remember that of the 15.82% total losses, a full of 9.56% are losses recognized by our regulatory entity in our tariff.

Speaker #1: Quality of service: as mentioned earlier, our investment plan is continuing to contribute to improvements in our service quality, by reducing the duration and frequency of outages.

[Company Representative] (EDENOR): As mentioned earlier, our investment plan is continuing to contribute to improvements in our service quality by reducing the duration and frequency of outages, which have been on a downward path since 2017. These levels are and have been comfortably exceeding the levels required by the regulatory entity. For Q2, the SAIDI and SAIFI service quality indicators show continued strong performance at 5.6 hours and 2.7 hours average outages per client at a record low level, and down 48% and 34%, respectively, compared to the levels of 2021 a year. This recovery in service is mainly due to the strong and consistent levels of investment that the company has made over the last nine years. Investments have been focused on implementing improvements in operational processes and the adoption of technology applied to the operations and management of the network.

Speaker #1: Which have been on a downward path since 2017. These levels are and have been comfortably exceeding the levels required by the regulatory entity. For the second quarter, the SAIDI and SAIFI service quality indicators show continuing strong performance, at 5.6 hours and 2.7 hours average outages per client, at a record low level, and down 48% and 34% respectively compared to the levels of 2021 year.

Speaker #1: This recovery in service is mainly due to the strong and consistent levels of investment that the company has made over the last 9 years.

Speaker #1: Investments have been focused on implementing improvements in operational processes and the adoption of technology applied to the operations and management of the network. The high and medium-term network can be operated remotely on 100%.

[Company Representative] (EDENOR): The high and medium-term network can be operated remotely on 100%. Financial debt. As of the end of June, total senior notes plus loan outstanding was $1.159 billion, with a net debt of 30 June of $303 million. A key position over the last few years, which continue in 2026, has been improved in our debt ratings in recent years as a result of the improvement in our risk profile due to important changes in the regulatory framework. On 26 June 2026, S&P Global Ratings upgraded the company issuer credit ratings, national scale, issued rating, and global medium-term notes program rating from RAA+ to RAA-, while revising the outlook from positive to stable. On 7 August 2026, Fitch Ratings raised the long-term rating from A+ to AA- with a positive outlook.

Speaker #1: Financial debt: as of the end of June, total senior nodes plus loan outstanding was 1 billion 159 million dollars, which a net debt of June 30th of 303 million dollars.

Speaker #1: A key position over the last few years which continue in 2026 has been improved in our debt ratings in recent years, as a result of the improvement in our risk profile, due to important changes in the regulatory framework.

Speaker #1: On June 26th of 2026, Standard & Poor's upgraded the company issuer credit ratings national scale issued rating and global medium-term notes program rating from RAA+ to RAA-, while revising the outlook from positive to stable.

Speaker #1: On August 7th of 2026, fixed located local sorry raised the long-term rating from A+ to AA-, with a positive outlook. Also on August 7th of 2026, Moody's upgraded company's national scale rating from AA-, to A+.

[Company Representative] (EDENOR): Also on 7 August 2026, Moody's upgraded company's national scale rating from AA- to A+. Financial debt. During July, we successfully executed two debt market transactions, the issuance of $213 million in Class 11 Notes, and on July, we reopened the Class 10 Notes, bringing the total outstanding amount to $750 million. These transactions reinforce our diversified funding strategy and improve flexibility to pursue strategic growth opportunities, including the potential acquisition of 70% of Metrogas, while we are also supporting our ongoing liability management strategy. On 7 August 2026, we fully redeemed our Class 9 Senior Notes, bringing our pro forma total senior notes outstanding. As of 10 August, to approximately $1.4 billion. As you know and you can see, we maintain a very manageable debt maturity profile with no maturities during the next year. New businesses.

Speaker #1: Financial debt: During July, we successfully executed two debt market transactions: the issuance of $213 million in Class 11 notes, and in July we also reopened the Class 10 notes.

Speaker #1: Bringing the total outstanding amount to 750 million dollars. These transactions reinforce our diversified funding strategy and improve flexibility to pursue strategic growth opportunities, including the potential acquisition of 70% of MetroGas, while we are also supporting our ongoing liability management strategy.

Speaker #1: On August 7th of 2026, we fully redeemed our class 9 senior nodes, bringing our pro forma total senior nodes outstanding, as of August 10, to approximately 1.4 billion dollars.

Speaker #1: As you know, and you can see, we maintain a very manageable debt maturity profile with no maturities during the next year. New businesses: we want to share our vision for new businesses and how we are positioning to the company for long-term expansion, diversification, and value creation.

[Company Representative] (EDENOR): We want to share our vision for new businesses and how we are positioning the company for long-term expansion, diversification, and value creation. As a starting point in 2024, the company amended its corporate purpose to provide greater flexibility and to activate capture opportunities arising from the energy transition and the broader electrification of the economy. This was a deliberated and strategic decision that opens the door to a much wider set of growth avenues. Our business development is anchored in three core drivers: capturing growth in the energy sector, expanding growth, both vertical and horizontal integration, and continue moving towards complementary diversification. In terms of strategy, we intend to capitalize on a dynamic energy M&A landscape, leveraging the ongoing privatization program, which presents several competing opportunities across the energy value chain.

Speaker #1: As a starting point, in 2024, the company amended its corporate purpose to provide greater flexibility and to activate capture opportunities arising from the energy transition and the broader electrification of the economy.

Speaker #1: This was a deliberated and strategic decision that opens the door to a much wider set of growth avenues. Our business development is anchored in three core drivers: capturing growth in the energy sector, expanding growth both vertical and horizontal integration, and continuing moving towards complementary diversification.

Speaker #1: In terms of strategy, we intend to capitalize on a dynamic energy M&A landscape, leveraging the ongoing privatization program with presents several competing opportunities across the energy value chain.

Speaker #1: We will also seek to drive synergies through integration with our core business, while remaining alert to opportunities in complementary assets. In terms of scope, the sector we are targeting includes 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 aligning with where we have the energy sector is heading.

[Company Representative] (EDENOR): We will also seek to drive synergies through integration with our core business, while remaining alert to opportunities in complementary assets. In terms of scope, the sector we are targeting includes 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 alignment with where we have the energy sector is heading. The bottom line is clear. This strategy is designed to deliver expansion, diversification, and value for both our investors and our clients. Metrogas acquisition. Bidding offers were submitted on 23 July. Our bid was submitted together with Andina PLC to acquire YPF's stake in Metrogas, which represents 70% of the share capital with voting rights, together with a bid of 5% of the shares in MetroENERGÍA, a subsidiary of Metrogas.

Speaker #1: The bottom line is clear: this strategy is designed to deliver expansion, diversification, and value for both our investors and our clients. MetroGas acquisition: bidding offers were submitted on July 23.

Speaker #1: Our bid was submitted together with Andina Energy PLC to acquire YPF's stake in MetroGas, which represents 70% of the share capital with voting rights, together with a bid for 5% of the shares in MetroEnergía.

Speaker #1: A subsidiary of MetroGas: EDENOR is the one which will be acquiring 100% of the IPF participation on the sale. Citibank has been the financial advisor of the bidding process.

[Company Representative] (EDENOR): EDENOR is the one which will be acquiring 100% of the YPF participation on the sale. Citibank has been the financial advisor of the bidding process. EDENOR offer has been accepted yesterday afternoon in the YPF board of directors, and the closing of the transaction is subject to the complementation of certain present conditions, like the 20-year extension of the concessional license until 2047 and other government approvals. We cannot assure our estimate when the closing and the transaction and the take of control will take place. We would not be operating the company until the change of control is completed, so the information available is limited to what is publicly available. Synergies and rationale. As we explained before, the company corporate purpose was amended to provide complementary diversification.

Speaker #1: EDENOR offer has been accepted yesterday afternoon in the IPF board of directors, and the closing of the transaction is subject to the complementation of certain present conditions.

Speaker #1: Like, the 20-year extension of the concession license until 2047, and other government approvals. We cannot assure our estimate when the closing and the transaction and the take of control will take place.

Speaker #1: We would not be operating the company until the change of control is completed. So the information available is limited to what is publicly available.

Speaker #1: Synergies and rationale: As we explained before, the company's corporate purpose was amended to provide complementary diversification. We view this transaction as an opportunity to consolidate our position as a leading energy company in Argentina, combining our existing electricity distribution with MetroGas's premier natural gas distribution network. By bringing together two of the largest utility companies servicing the Buenos Aires metropolitan area, with 5.8 million customers of electricity and natural gas, EDENOR is in a unique position to unlock significant operational, commercial, and institutional synergies, including commercial operations and administration.

[Company Representative] (EDENOR): We view this transaction as an opportunity to consolidate our position as a leading energy company in Argentina, combining its existing electricity distribution with Metrogas' premier natural gas distribution network. By bringing together two of the largest utility companies servicing the Buenos Aires metropolitan area, with 5.8 million customers of electricity and natural gas, EDENOR is a unique position to unlock significant operations, commercial, institutional synergies, including commercial operations and administration. We are strongly committed with a long-term view and vision of our business in the country, and we are committed to maintain and improve Metrogas' governance standards and quality of service according to EDENOR's high-quality standards. We emphasize EDENOR's deep institutional knowledge of Argentinian regulatory environment and the operational demands of large-scale utility concessions.

Speaker #1: We are strongly committed, with a long-term view and vision of our business in the country, and we are committed to maintaining and improving MetroGas governance standards and quality of service according to EDENOR's high-quality standards.

Speaker #1: We emphasize EDENOR's deep institutional knowledge of Argentina regulatory environment and the operational demands of large-scale utility concessions. We recognize MetroGas have a strong market position, extensive infrastructure, and a loyal customer base as a key asset that will underpin substantially growth, while the combination of both networks enables a comprehensive view of the household energy consumption across the ANBA and a platform for value-added services going forward.

[Company Representative] (EDENOR): We recognize Metrogas have a strong market position, extensive infrastructure, and a loyal customer base as a key asset that will underpin substantially growth, while the combination of both networks enables a comprehensive view of the household energy consumption across the AMBA and a platform for value-added services going forward. EDENOR brings to this transaction its extensive experience operating large-scale electricity distribution network under the Argentinian regulatory framework, as well as an established institutional relationship with regulators, government authorities, and key stakeholders in the energy sector, including its operational experience and deep knowledge of the AMBA market. Final remarks. We remain highly optimistic about our future. EDENOR is in a solid position, benefiting from recent changes that have strengthened its financial profile and positioning the company for an extended period of positive performance. We believe we are prepared to show strong growth in the coming years.

Speaker #1: EDENOR brings to this transaction its extensive experience operating large-scale electricity distribution network under the Argentina regulatory framework, as well as an established institutional relationship with regulators, government authorities, and key stakeholders in the energy sector, including its operational experience and deep knowledge of the ANBA market.

Speaker #1: Final remarks: we remain highly optimistic about our future. EDENOR is in a solid position, benefiting from recent changes that have strengthened its financial profile and positioned the company for an extended period of positive performance.

Speaker #1: We believe we are prepared to show strong growth in the coming years. Long-term, we are well prepared for the coming energy transitions, new technologies, increasing efficiencies, and environmental considerations.

[Company Representative] (EDENOR): Long term, we were well-prepared for the coming energy transitions, new technologies, increasing efficiencies, and environmental considerations. EDENOR's long-term concession and strong market presence provide a stable foundation for sustainable growth and competitive advantage. We have a dominant market position. The company is the largest electricity distribution company in Argentina, operating under a long-term concession in the highest income and most densely populated areas of the country. Economic equilibrium was restored following the completion of the five-year tariff review, which will guide tariffs until 2030, including automatic monthly adjustments above inflation, which follow a significant tariff increase granted in February 2024, and monthly increases onwards, being off 37% in 2025 and 20% year-to-date through June 2026. We also, as mentioned, were able to normalize current payments with CAMMESA since April 2024, plus honoring all pending past obligations with CAMMESA in 72 and 75 installment payment plans.

Speaker #1: EDENOR's long-term concession and strong market presence provide a stable foundation for sustainable growth and competitive advantage. We have a dominant market position. The company is the largest electricity distribution company in Argentina, operating under a long-term concession in the highest-income and most densely populated areas of the country.

Speaker #1: Economic equilibrium was restored following the completion of the five-year tariff review, which will guide tariffs until 2030, including automatic monthly adjustments above inflation. This follows a significant tariff increase granted in February 2024.

Speaker #1: And monthly increases onwards, being 37% in 2025 and 20% year to date through June of 2026. We also, as mentioned, were able to normalize current payments with CAMMESA since April 2024, plus honor all pending past obligations with CAMMESA in 72- and 75-installment payment plans.

Speaker #1: We have a strong commitment to excellence. EDENOR has consistently prioritized and sustained a stable investment program over many years, which has contributed to its significant improvement in service quality.

[Company Representative] (EDENOR): We have a strong commitment to excellence. EDENOR has consistently prioritized and sustained a stable investment program over many years, which has contributed to a significant improvement in service quality. The company's investment program allows EDENOR to maintain its leading position and to take advantage of opportunities offered by new technologies that will help us for further enhanced growth opportunities. The company maintains a strong capital structure and conservative policies supporting by an almost 30% track record in international equity market and establish access to debt capital markets, in the local market and in the international market. EDENOR expects to take advantage of market opportunities in its distribution business, including the implementation of new technologies and improve efficiencies. We expect that once Metrogas acquisition is completed, we will be able to consolidate and improve our position as an energy leader.

Speaker #1: The company's investment program allows EDENOR to maintain its leading position and to take advantage of opportunities offered by new technologies that will help us for further enhanced growth opportunities.

Speaker #1: The company maintains a strong capital structure and conservative policies, supported by an almost 30% track record in the international equity market and established access to debt capital markets.

Speaker #1: In the local market and in the international market. EDENOR expects to take advantage of market opportunities in its distribution business, including the implementation of new technologies and improved efficiencies.

Speaker #1: We expect that once MetroGas acquisition is completed, we will be able to consolidate and improve our position as an energy leader. We are led by a seasoned and highly experienced management team, which was able to deliver consistent improvements in the key operating indicators.

[Company Representative] (EDENOR): We are led by a seasoned and highly experienced management team, which was able to deliver consistent improvements in the key operating indicators. Our improving financial results have improved the long-term outlook and provide more visibility for our debt ratings. Since September 2024, the credit rating agencies have upgraded both the national and global ratings by an average of four and five notches. Our operating indicators continue to improve. Our working capital is now positive and has benefit from the improved revenues generation. In October 2025, our regulatory asset claim was filed with the government for the past differences in tariff adjustments calculated by the independent third parties. The executive branch submitted a draft bill to Congress, proposed a regulatory asset regularization framework. With this, now, we would like to open the call for you for questions.

Speaker #1: Our improving financial results have improved the long-term outlook and provide more feasibility for our debt ratings. Since September of 2024, the credit rating agencies have upgraded both the national and global ratings by an average of 4.5 notches.

Speaker #1: Our operating indicators continue to improve. Our working capital is now positive and has benefited from the improved revenue generation. In October 2025, our regulatory asset claim was filed with the government for the past differences in tariff adjustments calculated by the independent third parties, and the executive branch submitted a draft bill to Congress to propose our regulatory asset regulation framework.

Speaker #1: With this now, we would like to open the call for you for questions to ask questions, please send written message to IR EDENOR through the question and answer identified yourself and stating that you have a question.

[Company Representative] (EDENOR): To ask questions, please send written message to IR EDENOR through the question and answer, identify yourself, and stating that you have a question. We thank you very much for your support and engagement as shareholder and bondholder.

Speaker #1: We thank you very much for your support and engagement as a shareholder and bondholder.

Speaker #2: Okay. Thank you very much. We have some questions and let's see Milena from balance is asking in case of the Congress approves the bill of the regulatory assets, how do you expect the debt with CAMESA will regularize?

[Company Representative] (EDENOR): Okay. Thank you very much. We have some questions. Andres Cialino from Balanz is asking, in case the Congress approves the bill of the regulatory assets, how do you expect the debt with CAMMESA will regularize? What assumptions are you working with?

Speaker #2: What assumptions are you working with?

[Company Representative] (EDENOR): In case it is approved, we will be able to write off the debt with CAMMESA. In the Congress draft legislation, it also states that it is going to be included, the income tax effect of writing off the debt of CAMMESA. So it will improve our balance sheet, because the debt with CAMMESA will be not more in the records of the company.

Speaker #1: In case this is approved, we will be able to write off the debt with CAMESA and in the Congress draft documentation also stables that it's going to be included the effect of the income tax effect of writing off this debt of CAMESA.

Speaker #1: So, it will improve our balance sheet because the debt with CAMESA will no longer be in the records of the company.

[Company Representative] (EDENOR): Just two additions. One of them is the debt to be written off eventually would be the face value of the debt.

Speaker #3: Just to additions, one of them is the debt to be written off eventually would be the face value of the debt. As opposed to what we have in our financial statements, which is a present value calculation.

[Company Representative] (EDENOR): Exactly

[Company Representative] (EDENOR): as opposed to what we have in our financial statements, which is a present value calculation.

[Company Representative] (EDENOR): That's the face value would be around USD 345 million equivalent. Second comment is that, bear in mind that it would improve our cash flow as well, because the monthly servicing of that debt is around the equivalent of USD 6 million.

Speaker #3: That's the face value would be around 345 million dollars equivalent. Second comment is that bear in mind that it would improve our cash flow as well because the monthly servicing of that debt is around the equivalent of 6 million dollars.

Speaker #1: Exactly.

[Company Representative] (EDENOR): Exactly.

Speaker #2: Okay. We have another question from Chanel Cole. Hello. Regarding the MetroGas acquisition announced yesterday, EDENOR's bid remains being jointly with Andina PLC. When is the transaction expected to be closed?

[Company Representative] (EDENOR): Okay. We have another question, from Channel Call. Hello. Regarding the Metrogas acquisition announced yesterday, Edenor's bid remains being jointly with Andina PLC. When is the transaction expected to be closed?

[Company Representative] (EDENOR): Well, perhaps two answers to it. One of them, yeah. The bid was submitted jointly in our offer, jointly with Andina. That's correct. Although Edenor would be acquiring the full stake that would be sold by YPF. So in terms of shares, control, and cash flow as well, it would be borne by Edenor as such. Second, timing. Yesterday we signed the SPA. Then, as was mentioned, it's subject to some regulatory approval and the extension of the concession time framework. We expect this to occur before year-end, maybe towards around the Q3 of this year.

Speaker #3: Well, perhaps two answers to it. One of them, yeah, the bid was submitted jointly in our offer jointly with Andina, that's correct, although EDENOR would be acquiring the full stake that it would be sold by YPF.

Speaker #3: So in terms of shares, control, and cash flow as well, it would be borne by EDENOR as such. Second timing, well, yesterday we signed the SPA, so then as was mentioned, it's subject to some regulatory approval and the extension of the concession time, framework, and we need we expect this to occur before year end, maybe towards around the third quarter of this year.

[Company Representative] (EDENOR): There is another question regarding the mandatory tender offer, from Balanz, from Andres Cialino, regarding Metrogas. Could you provide more color on how the OPA or OTP from the minority shares will take place? There is another related question from Allaria on the same way. It's saying, regarding CNV regulations, will the acquisition of Metrogas, if approved, trigger the mandatory tender offer for the remaining 30% stake in Metrogas? Will the offer price for this remain on the higher between the bid price and the 180-day average trading price? Secondly, adjusting for the post quarter. Let's ask the first

Speaker #2: There is another question regarding the mandatory tender offer. From balance, from Andresi Migliano regarding MetroGas, could you provide more color on how the OPA or OTP from the minority shares will take place?

Speaker #2: And there is another related question from a ladder on the same way. It's saying, regarding CNB regulations, will the acquisition of MetroGas be approved trigger a mandatory tender offer for the remaining 30% stake in MetroGas?

Speaker #2: Will the offer price be determined on the higher between the deal price and the 180-day average trading price? And then secondly, adjusting for the post-quarter—well, let's answer this first and then go to the next question.

[Company Representative] (EDENOR): I'm sorry.

[Company Representative] (EDENOR): Then go to the next question.

Speaker #1: Yeah, it's going to be an OPA process, of course, but that will be implemented after the transaction is closed. Thirty days after the transaction is closed, we will start the OPA process.

[Company Representative] (EDENOR): Yeah, it's going to be an OPA process, of course, but that will be implemented after the transaction is closed. 30 days after the transaction is closed, we will start the OPA process. In terms of the procedure, how it will calculate it, yes, exactly, will be the average of 180 days and the price that we have paid. That's going to be the

Speaker #1: And in terms of the how it will calculate it, yes, exactly, it will be the average of 180 days and the price that we have paid.

[Company Representative] (EDENOR): In terms of the procedure, how it will calculate it, yes, exactly, will be the average of 180 days and the price that we have paid. That's going to be the

Speaker #1: That's going to be the.

Speaker #2: Yes.

[Company Representative] (EDENOR): Yes. According to the rules.

[Company Representative] (EDENOR): Yeah.

[Company Representative] (EDENOR): According to the rules of-

Speaker #1: According to the rules of CNB.

[Company Representative] (EDENOR): There are regulations of the local SEC called CNV, OPA tender, just in case. But, yeah, we are going to follow the regulations-

Speaker #3: Yeah, regulations of the local SEC, called CNB. OPA is tender, just in case. But yeah, we are going to follow the regulations that would be in place at that point, and the current ones are subject to some interpretation.

[Company Representative] (EDENOR): Rules

[Company Representative] (EDENOR): that would be in place at that point. The current ones are subject to some interpretation.

Speaker #2: And Julia is also asking about, from a ladder, adjusting for the post-quarter-end bond issuance and the payment of MetroGas, what would the pro forma net financial debt look like?

[Company Representative] (EDENOR): Julia also is asking, from Allaria, adjusting for the post-quarter and bond issuance and the payment of Metrogas, what would the pro forma net financial debt look like? We can tell how it is

Speaker #2: We can tell how it is. As of today.

[Company Representative] (EDENOR): As of today.

Speaker #1: See, as of today, as we said in the presentation—I think it's on page 21—the total debt that we have with notes is $1.4 billion.

[Company Representative] (EDENOR): As of today, as we said in the presentation, I think it is in page 21. Total debt that we have with notes is USD 1.4 billion. Total debt, including the bank loans, is USD 1.6 billion. Net debt of the company is going to be USD 447 million.

Speaker #1: And total debt including the bank loans is 1.6 billion dollars. And net debt of the company is going to be 447 million dollars.

[Company Representative] (EDENOR): Just bear in mind also that our EBITDA for the year not necessarily would be the linear extrapolation from what we had the first H1 of the year, but it is going to be, we expect, higher than the previous year, taking out the one-time effect.

Speaker #3: Just bear in mind also that our EBITDA for the year will not necessarily be a linear extrapolation from what we had in the first half of the year, but we expect it to be higher than the previous year—taking out the one-time CAMESA effect—from the recurring EBITDA.

[Company Representative] (EDENOR): Yes.

Speaker #2: Another important thing is that, once we have the acquisition completed—if that happens—we will consolidate, because of accounting rules and the fact that we will have the controlling stake.

[Company Representative] (EDENOR): Another important thing is that once we have the acquisition completed, if that happens, we will consolidate, because of accounting rules, and we are having the controlling stake, the numbers of Metrogas. So our EBITDA will be different.

Speaker #2: The numbers of MetroGas, so our EBITDA will be different.

Speaker #3: See, yeah. And MetroGas, as such, bear in mind, last year had an EBITDA of $175 million equivalent. This year should be higher, as explained. And MetroGas, as such, has net indebtedness of close to around zero.

[Company Representative] (EDENOR): Metrogas as such, bear in mind, last year had an EBITDA of $175 million equivalent. This year should be higher, as explained. Metrogas, as such, has a net indebtedness of close around zero.

Speaker #1: Yes, actually, it's positive—$45 million positive.

[Company Representative] (EDENOR): Yes. Actually, it is positive. $45 million positive.

Speaker #3: Yeah.

[Company Representative] (EDENOR): Yes. The first six months of EBITDA for Metrogas that was reported last week was ARS 100 million equivalent.

Speaker #2: The first six months of EBITDA for MetroGas that was reported last week was $100 million equivalent.

[Company Representative] (EDENOR): For the six-month period of 2026. That is public information.

Speaker #1: For the six-month period of 2026, that's public information.

[Company Representative] (EDENOR): Yes. All the information we are talking about from Metrogas is public.

Speaker #2: All the information we are talking about from MetroGas is public.

[Company Representative] (EDENOR): Is public.

Speaker #1: It's public.

Speaker #2: And there is a final question from Dimitros. From Bevan Howard, he's asking what is your refinance strategy in our priorities?

[Company Representative] (EDENOR): There is a final question from Dimitros, from Bell and Howard. He is asking, "What is your refinance strategy and our priorities?

[Company Representative] (EDENOR): Well, the financial strategy, we think, we are now, we have raised the money to execute the Metrogas transaction. We expect that to be closed, but we are still pending regulatory and other approvals. The other things that are under consideration are relatively minor, and we will, in the next several months, essentially be working with what we have on our plate nowadays, which was mentioned in the presentation, the scope there. But it will not be requiring significant amounts of liquidity other than the Metrogas transaction. So we have a relatively good profile in our indebtedness. After this, there are almost no maturities next year.

Speaker #3: Well, the financial strategy, we think, well, we are now we raise the money to execute the MetroGas transaction. We expect that to be closed, but we'll still pending regulatory and other approvals.

Speaker #3: So the other things that are under consideration are relatively minor. And we will, in the next several months, essentially be working with what we have on our plate nowadays.

Speaker #3: Which was mentioned in the presentation. The scope is there. But it won't require significant amounts of liquidity other than the MetroGas transaction. So we'll have a relatively good profile in our indebtedness after this.

Speaker #3: There are almost no majorities next year. And well, there are there will be rollover to some extent in 28, but we'll improve a bit the profile within MetroGas when and if we get there, given the fact that we think we can optimize their numbers and their cash flow going forward to create some shareholders value regarding that transaction.

[Company Representative] (EDENOR): There would be a rollover to some extent in 2028, but we will improve a bit the profile within Metrogas, when and if we get there, given the fact that we think we can optimize their numbers and their cash flow going forward to create some shareholders' value, regarding that transaction. So it is basically within those lines.

Speaker #3: So, it's basically within those lines.

Speaker #1: Yeah, we have a very good maturity profile of the debt. As you can see in the presentation, and in the chart there. So we do not foresee more than paying what is due this year.

[Company Representative] (EDENOR): Yeah, we have a very good maturity profile of the debt, as you can see in the presentation and in the chart there. So we do foresee more than paying what is due this year and then refinancing the rest of the debt in the local and in the international market in both.

Speaker #1: And then refinancing the rest of the debt. In the local and in the international market involved.

[Company Representative] (EDENOR): Mm-hmm. We don't have any maturity for next year.

Speaker #2: But we don't have any maturity for next year.

[Company Representative] (EDENOR): No, exactly.

Speaker #1: No, exactly.

[Company Representative] (EDENOR): That is important. I don't have more questions. I can give you a couple of minutes if there are more.

Speaker #2: That is important. I don't have more questions. I can give you a couple of minutes if there are more.

Speaker #1: Thank you. If there are no more questions, thank you for participating in our quarterly conference call. And please do not hesitate to contact our team of investor relations department for any further inquiries you may have.

[Company Representative] (EDENOR): Thank you. If there are no more questions, thank you for participating in our quarterly conference call. Please do not hesitate to contact our team of Edenor Investor Relations department for any further inquiries you may have. Good morning to all of you, and have a nice day.

Speaker #1: And good morning to all of you and have a nice day.

[Company Representative] (EDENOR): Goodbye

Q2 2026 Empresa Distribuidora y Comercializadora Norte SA Earnings Call

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