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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
Edenor Investor Day 2017
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
Edenor Investor Day 2017
4
2Q Results | Revenue from Sales (ARS billion | %)
2Q
20
18
2Q
20
19
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
(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
expensesOther 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
Edenor Investor Day 2017
GROSS MARGIN(in ARS million)
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9 13
Edenor Investor Day 2017
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%)
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
(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
Edenor Investor Day 2017
7
2Q Results | Revenue from Sales (ARS billion | %)
2Q
20
18
2Q
20
19
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
(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
expensesOther 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
Edenor Investor Day 2017
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
Edenor Investor Day 2017
9
2Q Results | Revenue from Sales (ARS billion | %)
2Q
20
18
2Q
20
19
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
(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
expensesOther 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
Edenor Investor Day 2017
Financial Results(in ARS million)
2Q 2018Exchange
Differences
Commercial
Interest
CAMMESAFinancial
Interest
Changes in
fair value of
Financial
Assets 2Q 2019Others
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9 17
Edenor Investor Day 2017
11
2Q Results | Revenue from Sales (ARS billion | %)
2Q
20
18
2Q
20
19
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
(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
expensesOther 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
Edenor Investor Day 2017
12
Labilities regularization agreement(ARS billion)
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
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
Edenor Investor Day 2017
2.936
2.355
2019 2018
Adjusted EBITDA(in ARS million)
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9 19
(*) 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
Edenor Investor Day 2017
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)
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
15%
50%
26%
1%
5%4%
Edenor Investor Day 2017
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
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
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
Edenor Investor Day 2017
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
E a r n i n g s R e l e a s e | 2 Q 2 0 1 9
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
Edenor Investor Day 2017
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
E a r n i n g s R e l e a s e | 1 Q 2 0 1 9 22
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