Presentación de PowerPoint · Edenor Investor Day 2017 3 Relevant Events Implementation of the...

EARNINGS RELEASE

Second Quarter 2019

August 12, 2019

Edenor Investor Day 2017

E a r n i n g s R e l e a s e | 2 Q 2 0 1 9 2

The material that follows is a presentation of general background information about Edenor as of the date of the presentation. It is

information in summary form and does not purport to be complete. No representation or warranty, express or implied, is made

concerning, and no reliance should be placed on, the accuracy, fairness, or completeness of this information.

This presentation contains forward-looking information and statements. Forward-looking statements are statements that are not

historical facts. These statements are only predictions based in our current assumptions, expectations and projections about future

events. Forward-looking statements may be identified by the words “believe,” “expect,” “anticipate,” “target,” or similar expressions. While

Edenor's management believes that the expectations reflected in such forward-looking statements are reasonable, investors are

cautioned that forward-looking information and statements are subject to various risks and uncertainties, many of which are difficult to

predict and are generally beyond the control of Edenor, which could cause actual results and developments to differ materially from those

expressed in, or implied or projected by, the forward-looking information and statements.” Further, if Edenor’s actual results are less

favorable than those shown in the projections or if the assumptions used in the projections prove to be incorrect, Edenor may not be able

to make dividend payments in the amount forecasted, or at all. Edenor undertakes no obligation to publicly update its forward-looking

statements, whether as a result of new information, future events, or otherwise, nor makes any representation or warranty, expressed or

implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied upon

as a promise or representation. Management is not making and you should not infer any representation about the likely existence of any

particular future set of facts or circumstances.

This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for,

underwrite or otherwise acquire, any securities of Edenor nor should it or any part of it form the basis of, or be relied on in connection

with, any contract to purchase or subscribe for any securities of Edenor. Persons who intend to purchase or subscribe for securities of

Edenor in any potential future offering are reminded that any such purchase or subscription may be made solely on the basis of the

information contained in the prospectus or offering circular in connection with such proposed offering. In particular, this presentation and

the information contained herein are not an offer of securities for sale in the United States.

The market and competitive position data, including market forecasts, used throughout this presentation was obtained from internal

surveys, market research, publicly available information and industry publications. Although we have no reason to believe that any of this

information or these reports are inaccurate in any material respect, we have not independently verified the competitive position, market

share, market size, market growth or other data provided by third parties or by industry or other publications. Edenor does not make any

representation as to the accuracy of such information.

Disclaimer


3

Relevant Events

Implementation of the Transfer of Jurisdiction and Liabilities Regularization Agreement

• May 10, 2019

• Transfer of jurisdiction from the Federal Government to the Province of Bs As and CABA

• Termination of the pending reciprocal claims originated in the 2006-2016 transition period

• Disbursements for an approximate total amount of ARS 7.6 bn

• Federal Government offsets outstanding liabilities for an approximate amount of ARS 6.9 bn

Moody’s Change in Outlook

• July 16, 2019

• Affirmation of edenor’s corporate rating at “B1” and its domestic rating at “Aa3.ar”

• Change in outlook from stable to negative

• Reflects the same change in outlook on the sovereign debt rating

Termination of the Share Buyback Program

• June 12, 2019

• Acquisition: 1.9 mm own Series B shares as ADRs

• Total amount: ARS 74 mm | Avge. price: USD 17.33 per ADR

E a r n i n g s R e l e a s e | 2 Q 2 0 1 9


4

2Q Results | Revenue from Sales (ARS billion | %)

2Q

20

18

2Q

20

19


(2.1)

-66.6%

Revenue

from sales

Energy

purchases

Gross

margin

Operating

expensesOther operating

expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

Revenue

from sales

Energy

purchases

Gross

margin

Operating


expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

+21.0% +18.9% +23,8% +17.6% +40% NA+63% +8.3% NA NA


GROSS MARGIN(in ARS million)



6

Energy Sales Evolution

Turnover b/ type of customer │ QoQ (in GWh)

Customers Evolution(in thousands)

Energy Sales Breakdown | 2Q 2019

Medium Commercial

Residential

Small Commercial

Others

Industrial

Wheeling System

5,344 (11.7%)


(266)(45) (41)

(57)(97)

11 4,849

(10.0%) (10.0%) (6.3%) (10.0%) +3.3%

41,6%

8,4%7,6%

17,4%

17,9%

7,1%

2.980

3.088

Jun '18 Jun '19


7


2Q

20

18

2Q

20

19


(2.1)

-66.6%

Revenue

from sales

Energy

purchases

Gross

margin

Operating


expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

Revenue

from sales

Energy

purchases

Gross

margin

Operating


expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

+21.0% +18.9% +23,8% +17.6% +40% NA+63% +8.3% NA NA


OPEX(in ARS million)

+114%

Supplies consumption Depreciation of property, plant and

equipment

+37%

ENRE penalties

+26%

Fees and remuneration for services

+21%

2019 | (342)2018 | (160)

2019 | (963)2018 | (705)

2019 | (855)2018 | (678)

2019 | (1.121)2018 | (828)

15E a r n i n g s R e l e a s e | 2 Q 2 0 1 9


9


2Q

20

18

2Q

20

19


(2.1)

-66.6%

Revenue

from sales

Energy

purchases

Gross

margin

Operating


expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

Revenue

from sales

Energy

purchases

Gross

margin

Operating


expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

+21.0% +18.9% +23,8% +17.6% +40% NA+63% +8.3% NA NA


Financial Results(in ARS million)

2Q 2018Exchange

Differences

Commercial

Interest

CAMMESAFinancial

Interest

Changes in

fair value of

Financial

Assets 2Q 2019Others



11


2Q

20

18

2Q

20

19


(2.1)

-66.6%

Revenue

from sales

Energy

purchases

Gross

margin

Operating


expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

Revenue

from sales

Energy

purchases

Gross

margin

Operating


expenses

Net operating

income (loss)

Financial

resultsRECPAM

Income

tax

Net income

(loss)

Labilities

regularization

agreement

+21.0% +18.9% +23,8% +17.6% +40% NA+63% +8.3% NA NA


12

Labilities regularization agreement(ARS billion)


8,9

1,4

1,4

3,00,2

13,1

Payables toCAMMESA

Loans fromCAMMESA

Penalties Expenses Labilities regularizationagreement

Impact on revenue

from sales:

Framework agree. &

social tariff caps


2.936

2.355

2019 2018

Adjusted EBITDA(in ARS million)


(*) The liabilities regularization agreement discontinues the updating of penalties corresponding to the transition

period (2006-2016) in future quarters

2019 2018

Net operating income 1.656 1.185

(+) Depreciations 963 705

EBITDA 2.619 1.890

(+) Penalties - Retroactive effect - 99

(+) Penalties - Actualization (*) 208 291

(+) Commercial Interests 109 75

Adjusted EBITDA 2.936 2.355


1.169 1.422

728

784

2T 2018 2T 2019

14

Capital Expenditures(in ARS million & %)

2,206

1,897

Expansion

Maintenance

New connections

Grid enhancements

Network maintenance and improvements

Legal requirements

Communications and telecontrol

Other investment projects

Capex Breakdown Capex Evolution(% | ARS million)


15%

50%

26%

1%

5%4%


8,68,0

9,58,9 8,7

9,0

6,96,4

9,79,1

8,4

7,4

6,0

3,00

4,00

5,00

6,00

7,00

8,00

9,00

10,00

11,00

2012 2013 2014 2015 2016 2017 2018 LTMjun-19

2019E 2020E 2021E

15

Quality of service


SAIDI Path hrs │ year │ customer

SAIFI Path times │ year │ customer

Requested quality standardsReal

31,5

27,7

33,0

26,6 25,8

27,6

22,7

18,6

30,328,9

26,3

21,8

13,7

7,00

12,00

17,00

22,00

27,00

32,00

37,00

2012 2013 2014 2015 2016 2017 2018 LTMjun-19

2019E 2020E 2021E


1.400

2.050 2.010

1.082

2.332

1.136

2015 2016 2017 @ Jun'18 2018 @ Jun'19

461

621

805

445 512

625

1Q 2Q 3Q 4Q

16

Energy Losses

Per Quarter TAM

20192018

In GWh


In Percentage

Per Quarter Per Period

16,3%

18,6%

20,4%

17,1%

17,4%

19,2%

1Q 2Q 3Q 4Q

17,1%17,5%

18,0% 18,2%

18,5% 18,6%

1Q 2Q 3Q 4Q


191176

226216

164

38

1325

164

54

36

68

97 127

2015 2016 2017 2018 2Q19 2019 2020 2021 2022

Indebtedness(in USD million)

ICBC Loan

Amount | USD 164 MM

Maturity | October 2022

Rate | 9.75%

Senior Note 2022

27%

Fin. Debt

MK

Note: (1) @ Aug 8, 2019

(1)

Amount | USD 38 MM

Maturity | 4 installments since April 2019

Rate | 6 month Libor + spread of 3% semi-annual incremental

Rate swap | 2.87%

201


First repayment: USD 12.5MM | April 11th, 2019

Local Global

raA B

Stable Stable

Aa3.ar B1

Negative Negative

Risk Ratings – 2022 Corporate Bonds

July '19

July '19

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