Empresa Distribuidora Y Comercializadora Norte S.a. Class B · BCBA:EDN
Empresa Distribuidora Y Comercializadora Norte S.a. Class B — Q4 2023 Earnings Presentation
29 slides from Empresa Distribuidora Y Comercializadora Norte S.a. Class B's earnings presentation, Mar 11, 2024
Slide 1: Earnings Presentation Fourth Quarter 2023
EARNINGS PRESENTATION Fourth Quarter 2023 March 11th, 2024 EARNINGS RELEASE FOURTH QUARTER 2023
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking Edenor undertakes no obligation to publicly update In particular, this presentation and the information The material that follows is a information and statements. Forward-looking its forward-looking statements, whether as a result contained herei
Slide 3: Agenda
AGENDA ❖ Highlights ❖ Financial Results ❖ Operating Indicators ❖ Financial Debt ❖ Sustainability, technology and innovation ❖ Final Remarks EARNINGS PRESENTATION FOURTH QUARTER 2023 3
Slide 4: Highlights
EARNINGS PRESENTATION FOURTH QUARTER 2023 01 Highlights
Slide 5: Relevant Events
Relevant Events Resolution No. 102/2024 01/26/24: Public Hearing Automatic monthly update established new tariffs transitory adjustment of mechanism (polynomial including an increase in VAD Value Added Distribution formula) applicable from May of 319.20%, applicable from (“VAD”) 2024. 02/16/24. (AFT
Slide 6: New Strategies
New ❖ EDENOR, the leading electricity distribution company in Argentina, plans to transition Strategies from being a traditional utility to a broad energy leader with a bright future by: ✓ Building on the strengths of its existing business. ✓ Expanding to supply clean energy as part of the energy tr
Slide 7: Financial Results
EARNINGS PRESENTATION FOURTH QUARTER 2023 02 Financial Results
Slide 8: Revenues
Revenues Fourth Quarter sales declined 17% due to weak volumes and delay in tariff adjustments Revenues +9% 701.098 640.994 -17% 120.423 144.991 EARNINGS PRESENTATION FOURTH QUARTER 2023 8 2023 2022 4Q23 4Q22
Slide 9: Energy Purchases
Energy Purchases Fourth Quarter Energy Purchase costs fell 32% Energy Purchases 458,944 +3% 446,030 -32% 111,699 75,848 EARNINGS PRESENTATION FOURTH QUARTER 2023 9 2023 2022 4Q23 4Q22
Slide 10: Energy Sales Evolution
Customers Evolution Revenues Breakdown Energy In thousand Sales +1% Residential Small Commercial Evolution Medium Commercial Industrial Wheeling System Others Sales declined 17% during 2023, driven by weak residential Turnover by type of customer │ QoQ in GWh EARNINGS PRESENTATION FOURTH QUARTER 202
Slide 11: Distribution Margin
In Millions of pesos Distribution 47,190 Margin Margins rose 34% due to lower Energy Purchase costs EARNINGS PRESENTATION FOURTH QUARTER 2023 11
Slide 12: EBITDA
EBITDA EARNINGS PRESENTATION FOURTH QUARTER 2023 12
Slide 13: Net Financial Expenses
Net Financial +26% Expenses In Millions of pesos 0% EARNINGS PRESENTATION FOURTH QUARTER 2023 13
Slide 14: Net Results
4Q 2022 Net Results 14,1 In Millions of pesos Other Agreement Net Financial RECPAM Income Net Results Revenues Energy Distribution Operating Operating Operating on the Tax Results Expenses Reg.Of Oblig. purchases Margin Expenses Income 4Q 2023 0,4 EARNINGS PRESENTATION Other FOURTH QUARTER 2023 Net
Slide 15: Capex
Capex Investment Classification % of total +17% ARS 123,628 In Millions of pesos ARS 105,571 EARNINGS PRESENTATION FOURTH QUARTER 2023 15
Slide 16: Investments
Investments Invested 4,274 million dollars since 1992 In the last 11 years we invested USD 2,252 M (average of USD 205 M per year) 2013 - 2023 CAPEX EXECUTED BY EDENOR USD 2.3 BN- AVERAGE USD 205 M PER YEAR EARNINGS PRESENTATION FOURTH QUARTER 2023 16
Slide 17: Operating Indicators
EARNINGS PRESENTATION FOURTH QUARTER 2023 03 Operating Indicators
Slide 18: Energy Losses
Evolution % TAM of energy losses Energy Losses Total Losses Recognized Evolution of unrecognized losses in GWh EARNINGS PRESENTATION FOURTH QUARTER 2023 18
Slide 19: Quality of Service
Quality of Service SAIDI hours / year / customer SAIFI times / year /customer Client Satisfaction: 85,1% -75% -64% Real Required EARNINGS PRESENTATION FOURTH QUARTER 2023 Note: SAIDI: System Average Interruption Duration Index SAIFI: System Average Interruption Frequency Index
Slide 20: Financial Debt
EARNINGS PRESENTATION FOURTH QUARTER 2023 04 FINANCIAL DEBT
Slide 21: Financial Debt
❖ Amount: USD 96 Million Financial Notes Class 3 • USD 34 Million (Exchange Class 2- 57% acceptance ) Debt Nov-26 • USD 62 Million (New Money) ❖ Rate: 9.75% ❖ Interest Payment: Biannual ❖ Amortization: Bullet ❖ Amount: ARS 3,577 Million (Eq USD 4 Million) Successful Placement Notes Class 4 ❖ Rate: +
Slide 22: Maturity Schedule
Financial Debt as of December 2023 (in millions of dollars) Maturity Schedule The Company has Debt Proforma with managed to extend recent issuances the tenor of its (in millions of dollars) financial debt Class 3&4 Class 2 Class 1 EARNINGS PRESENTATION FOURTH QUARTER 2023 22
Slide 23: Rating Agencies
Rating Agencies EARNINGS PRESENTATION FOURTH QUARTER 2023 23
Slide 24: Sustainability, Technology and Innovation
EARNINGS PRESENTATION FOURTH QUARTER 2023 05 SUSTAINABILTY, TECHNOLOGY AND INNOVATION
Slide 25: Sustainability, Technology and Innovation
Sustainability, Technology and Innovation Intelligent Network Solar Panels Clients self-generation and EDN and clients´ We plan to lead a selling of electricity. roofs and terraces. transformation of the electricity network to a smart network through technology and innovation Energy Efficiency Elect
Slide 26: Sustainability Report 2023
Sustainability Report 2023 On 03/08/24 the Board of Directors approved the 10th Sustainability Report 2023 with its “Limited Security Report” issued by PwC Argentina. Prepared in reference to the standards of the Global Reporting Initiative (GRI) and the Sustainability Accounting Standards Board (SA
Slide 27: Environmental Performance 2023
✓ We promote the circular economy Environmental Perfomance 2023 ✓ Waste traceability ✓ 85.1% Client Satisfaction Social Perfomance 2023 ✓ Scholarship and Tutoring Program ✓ We promote the Integrity Program Governance 2023 ✓ Training and outreach 27
Slide 28: Final Remarks
EARNINGS PRESENTATION FOURTH QUARTER 2023 05 FINAL REMARKS
Slide 29: Final Remarks
FINAL ❖ Focused on future transformational growth. REMARKS ❖ Positive Outlook for material improvement in EBITDA/Net Income post recent regulatory changes (VAD +319.2%; automatic monthly update mechanism starting May 2024). 300 250 200 150 100 50 0 2016 2017 2018 2019 2020 2021 2022 2023 2024 -50 -1
Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) — Q4 2023 Earnings Presentation on 6ix