Empresa Distribuidora y Comercializadora Norte SA (EDN) 2023 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and thank you for joining. At this time, we would like to welcome everyone to Edenor's First Quarter 2023 Earnings Conference Call. We would like to inform you that this event is being recorded. (Operator Instructions)

早上好，女士們先生們，感謝您的加入。此時，我們歡迎大家參加 Edenor 2023 年第一季度收益電話會議。我們謹通知您，該事件正在被記錄。 （操作員說明）

Before proceeding, let me mention that forward-looking statements are based on the beliefs and assumptions of the Edenor's management and on information currently available to the company. They involve risks, uncertainties and assumptions because they relate to future events, and therefore, depend 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.

在繼續之前，我要指出的是，前瞻性陳述是基於 Edenor 管理層的信念和假設以及公司目前掌握的信息。它們涉及風險、不確定性和假設，因為它們與未來事件相關，因此取決於未來可能發生或不發生的情況。投資者應了解，總體經濟狀況、行業狀況和其他經營因素也可能影響 Edenor 的未來業績，並可能導致結果與此類前瞻性聲明中表達的結果存在重大差異。

Now I'll turn the conference over to Mr. German Ranftl, CFO of Edenor. Thank you.

現在我將會議交給Edenor 首席財務官German Ranftl 先生。謝謝。

Good morning, everyone, and thank you for joining. Welcome to Edenor's earnings webcast for the first quarter 2023. As you know, you can always call any member of our team for more details on the results of the period or any doubts you may have. Edenor continues to guarantee the electric distribution services to all its 3.2 million customers, which represent a population of approximately 11 million people. Our mission is to provide a social responsible electricity distribution service, leading the energy transition that contributes to improve people's quality of life, business and community development as well that of our employees, bondholders and shareholders. We are committed to our community, which is why we have adopted the best environmental, social and governance practices.

大家早上好，感謝您的加入。歡迎收看 Edenor 2023 年第一季度的收益網絡廣播。如您所知，您可以隨時致電我們團隊的任何成員，了解有關該期間業績的更多詳細信息或您可能有的任何疑問。 Edenor 繼續保證其所有 320 萬客戶（約 1100 萬人口）的配電服務。我們的使命是提供對社會負責的配電服務，引領能源轉型，為改善人們以及我們的員工、債券持有人和股東的生活質量、商業和社區發展做出貢獻。我們致力於社區，這就是我們採用最佳環境、社會和治理實踐的原因。

First of all, we will focus on the highlights. Edenor has exceeded the investment levels of the previous quarter by 82%. As a result of the company was able to maintain its quality of services for all its clients, which shows our record results in our customer perception and services quality. This was part of our summer plan implemented for our network in service, reaching our best historical records in our key indicators, SAIDI and SAIFI, representing the duration and frequency of energy cuts. At the closing of the first quarter, shown an improvement of 19% and 13% compared to the same period of the last year and extreme below the requirements applied by the regulatory entity, but increases after the hearing held on January 2023. ENRE authorized an increase in VAD in 2 tranches, being 108% as of April 1, this has been implemented already, and Edenor is collecting these revenues; and an additional 74% from June 1, 2023, Resolution 241-23.

首先，我們要聚焦亮點。 Edenor的投資水平比上一季度增加了82%。因此，公司能夠保持為所有客戶提供的服務質量，這表明我們在客戶認知和服務質量方面取得了創紀錄的成績。這是我們為服務網絡實施的夏季計劃的一部分，在代表能源削減的持續時間和頻率的關鍵指標 SAIDI 和 SAIFI 中達到了我們的最佳歷史記錄。第一季度末，與去年同期相比分別提高了 19% 和 13%，遠低於監管機構的要求，但在 2023 年 1 月舉行的聽證會後有所增加。ENRE 授權VAD 分兩期增加，截至4 月1 日增加108%，這已經實施，Edenor 正在收取這些收入；從 2023 年 6 月 1 日起，增加 74%（第 241-23 號決議）。

Start of the RTI process, ENRE Resolution No. 363 of 2023 approved to start the process as of January 1. The ENRE will prepare the guidelines on the development skills that will govern the process. It will convene public hearings to evaluate distribution and transporters' proposals and to listen to the interested sectors opinions. It will carry out the technical, economical assessment necessary to specify for the 5-year period 2024-2028, the service quality parameters, the adjustments of current procedures and regulations and the investments to be done by the concession companies.

RTI 流程啟動，ENRE 2023 年第 363 號決議批准從 1 月 1 日起啟動該流程。ENRE 將製定管理該流程的開發技能指南。它將召開公開聽證會，評估分銷和運輸商的建議，並聽取有關部門的意見。它將進行必要的技術、經濟評估，以確定 2024-2028 年 5 年期間的服務質量參數、現行程序和法規的調整以及特許權公司將進行的投資。

Winter season energy resolutions. Resolution No. 323 of 2023, approved the Winter Seasons Schedule for the MEM submitted by CAMMESA for the first period between May 1, 2023 and October 3, 2023.

冬季能源決議。 2023年第323號決議批准了CAMMESA提交的2023年5月1日至2023年10月3日第一期MEM冬季時間表。

Regarding our corporate debt, additional and senior notes Class 2 were issued on March 7 for $30 million, hard dollars maturing in November 2024. We would like to thank you, our bondholders and investors for the trust in our company, considering that the company received orders for more than $50 million for the last issuance.

關於我們的公司債務，我們於 3 月 7 日發行了 2 級額外票據和優先票據，面額為 3,000 萬美元，硬通貨將於 2024 年 11 月到期。考慮到公司收到了上次發行的訂單金額超過5000 萬美元。

Regarding rating, this is the summary of our rating agencies. In March 2023, Fix maintained the Long-Term issue rating and that of the Existing Bond A- , improving the negative outlook to stable. Given the downgrade of Argentina's country rating, S&P Global Ratings downgraded Argentina long-term foreign currency rating from CC+ to CC- (sic) [CCC+ to CCC-]. At the same time, the rating in the national scale was lower by BB- to CCC with a negative trend. In May 2023, Moody's Local Argentina confirmed the BBB.AR Argentine rating changes the negative outlook to stable.

關於評級，這是我們評級機構的總結。 2023年3月，Fix維持長期發行評級和現有債券A-的評級，將負面展望提升至穩定。鑑於阿根廷國家評級被下調，標準普爾全球評級將阿根廷長期外幣評級從CC+下調至CC-（原文如此）[CCC+至CCC-]。與此同時，全國范圍內的評級由BB-降至CCC，呈負面趨勢。 2023 年 5 月，穆迪阿根廷當地確認 BBB.AR 阿根廷評級將負面展望調整為穩定。

The gross margin corresponding to the first quarter of 2023 was ARS 19,319 million, which represents a fall of 24% compared to the same period of the year. This is mainly due to a tariff delay in an inflationary context, partially offset by the volumes levels of the energy, which were increased due to record temperatures registered in the first quarter of this year, especially during March. On February 28, 2023, as mentioned, the ENRE approved the new tariff scheme, being 108% as of April 1 and an additional 74% for June 1 of 2023.

2023年第一季度對應的毛利率為193.19億阿根廷比索，同比下降24%。這主要是由於通貨膨脹背景下的關稅延遲，部分被能源產量水平所抵消，由於今年第一季度創紀錄的氣溫，特別是三月份，能源產量水平有所增加。如前所述，ENRE 於 2023 年 2 月 28 日批准了新的關稅計劃，自 4 月 1 日起稅率為 108%，2023 年 6 月 1 日起額外稅率為 74%。

EBITDA showed a decrease of ARS 7,890 million, reaching a negative result of ARS 5,175 million in the first quarter of 2023. This fall is mainly explained by the tariff freeze offset by an improvement in energy losses and a higher operating cost. The new tariff approved on February 28 applied only in April and June of 2023.

EBITDA 減少 78.90 億阿根廷比索，2023 年第一季度達到 51.75 億阿根廷比索的負數。這一下降主要是由於電價凍結被能源損失改善和運營成本上升所抵消。 2月28日批准的新關稅僅適用於2023年4月和6月。

Energy sales evolution. The volume of energy sales increased by 16% (sic) [18.6%], reaching 6,480 GWh in the first quarter of 2023 against 5,470 GWh for the same period of 2022 due to the record of temperatures. Furthermore, Edenor's customer base rose by 1% compared to the same period of the previous year, reaching more than 3.2 million customers, mainly on account of the increase in residential customers and small commercials as a result of the market discipline actions and the installation of the last year of more than 565 integrated energy meters that were mainly intended for the regularization of clandestine connections.

能源銷售的演變。由於創紀錄的氣溫，2023 年第一季度能源銷售量增長了 16%（原文如此）[18.6%]，達到 6,480 GWh，而 2022 年同期為 5,470 GWh。此外，Edenor的客戶群較上年同期增長1%，達到超過320萬客戶，主要是由於市場紀律行動和安裝了住宅客戶和小型商業客戶的增加。去年，超過565 個集成電錶主要用於規範秘密連接。

Financial results were a loss of ARS 34,826 million for the first quarter of 2023, increasing its losses by 73%. This difference is mainly due to the higher interest accrued on the debt incurred with CAMMESA, which as a result of March 31, 2023, accumulated an overdue principal balance of ARS 71,533 million plus interest and surcharges in the amount of ARS 111,597 million. It is important to highlight that CAMMESA invoices due on March and April 2023 were paid in full. So not generating new debt with CAMMESA. As explained before, an agreement with CAMMESA was signed on December 2023, and the remaining balance of ARS 38,650 million will be canceled in 96 installments with 6 months of grace period and an interest rate of 50% of the market interest rate.

2023 年第一季度財務業績虧損 348.26 億阿根廷比索，虧損增加 73%。這一差異主要是由於 CAMMESA 債務應計利息較高，截至 2023 年 3 月 31 日，該債務累計逾期本金餘額為 715.33 億澳元，加上利息和附加費為 1,115.97 億澳元。需要強調的是，2023 年 3 月和 4 月到期的 CAMMESA 發票已全額支付。因此不會與 CAMMESA 產生新的債務。如前所述，與CAMMESA於2023年12月簽署協議，剩餘餘額386.5億阿根廷比索將分96期取消，並有6個月的寬限期，利率為市場利率的50%。

Net income decreases by 51%, reaching losses for ARS 9,961 million in the first quarter of 2023 against ARS 5,757 million for the same period in 2022. There was a higher loss in the operating income, higher financial charges due to deferral of the payment of obligations with the Wholesale Electricity Market and a higher positive result for exposures to change in purchasing power, RECPAM.

淨利潤下降 51%，2023 年第一季度虧損 99.61 億阿根廷比索，而 2022 年同期為 57.57 億阿根廷比索。營業收入損失更大，由於推遲支付財務費用，財務費用也更高。批發電力市場的義務以及購買力變化暴露的更高積極結果，RECPAM。

Capital expenditures. During the first 3 months of 2023, Edenor capital expenditure totalizes to ARS 9,986 million against ARS 5,448 million in 2022, an increase of 92% (sic) [82%] in real terms compared to the same period of the previous years. The higher investments were in the line of our summer plan to improve our services and network reliability.

資本支出。 2023 年前 3 個月，Edenor 資本支出總計為 99.86 億澳元，而 2022 年為 54.48 億澳元，與往年同期相比實際增長 92%（原文如此）[82%]。更高的投資符合我們的夏季計劃，以改善我們的服務和網絡可靠性。

Investments in the first quarter of 2023 were as follows: ARS 7,956 million in electricity-related activities, ARS 682 million in systems and others and ARS 1,346 million in project staff costs. In order to meet demand, improve services quality and reduce nontechnical losses, most of the investments were assigned to the increase in capacity installations of remote control equipments and medium-voltage network, connections of new suppliers and installations of self-managing energy meters. All investments are made prioritizing to protect the environmental and safety of our public roads.

2023 年第一季度的投資如下：電力相關活動投資 79.56 億澳元，系統及其他投資 6.82 億澳元，項目員工成本 13.46 億澳元。為了滿足需求、提高服務質量、減少非技術損失，大部分投資用於增加遠程控制設備和中壓網絡的容量安裝、新供應商的連接以及安裝自管理電能表。所有投資均優先考慮保護公共道路的環境和安全。

Energy losses. In the first quarter of 2023, energy losses experienced a 16% decrease against 13.8% for the same period of the previous years. The works of multidisciplinary teams to develop new solutions to energy losses continues as well as a market discipline, DIME actions aiming to reduce them. Analytical and artificial intelligence tools were used to enhance effectiveness in the routing of inspections. And DIME actions continued with the objective of detecting and normalizing irregular connections, fraud and energy theft.

能量損失。 2023年第一季度，能源損失下降16%，而去年同期為13.8%。多學科團隊致力於開發新的能源損失解決方案，市場紀律和 DIME 行動旨在減少能源損失。使用分析和人工智能工具來提高檢查路線的有效性。 DIME 行動仍在繼續，其目標是發現不正常的連接、欺詐和能源盜竊並使其正常化。

In addition, during the first period January to March 2023, 79,483 inspections of Tariff 1 were conducted with a 50% efficiency, while the same period of the previous year's, 78,734 inspections have been conducted with 54% efficiency. More than 565 integrated meters, MIDE, were installed during 2023.

此外，在2023年1月至3月的第一階段，關稅1號檢查進行了79,483次，效率為50%，而去年同期則進行了78,734次檢查，效率為54%。 2023 年安裝了超過 565 個集成儀表 MIDE。

Regarding recovery of energy. Besides the normalization of customers with MIDE meters, clandestine customers with conventional meters were also put back to normal. Moreover, a new energy balance system was implemented as well as the development of micro-balances in private neighborhoods. In all cases, a rate of recidivism in fraud has been observed.

關於能量回收。除了使用MIDE電錶的客戶恢復正常外，使用傳統電錶的秘密客戶也恢復正常。此外，還實施了新的能源平衡系統以及私人社區微平衡的發展。在所有案件中，都觀察到欺詐的累犯率。

To conclude, let me summarize the principal events occurred since the change of control. On June 30, 2023, Edelcos acquired the control of Edenor. In July 2021, consent for the changes of control acceleration clause was reached successfully. Between April and October 2021, the bond of $98 million was exchanged and canceled, issuing a new bond of $55 million due in May 2025 and listed in BYMA and as a social bond. On September 2022, a new issue of Class B notes for $30 million issued in 9.75% Argentine law is due on November 2024. As a result, the debt has been clarified all the maturities horizon for the coming years. By the year-end, we reached our best historical records in services quality regarding frequency and duration of power outages as well as customer satisfaction index.

最後，讓我總結一下自控制權變更以來發生的主要事件。 2023年6月30日，Edelcos獲得了Edenor的控制權。 2021年7月，成功達成控制權變更加速條款同意。 2021年4月至10月期間，9800萬美元的債券被交換和註銷，發行了2025年5月到期的5500萬美元的新債券，並作為社會債券在BYMA上市。 2022 年9 月，根據阿根廷法律發行的新發行的3000 萬美元B 級票據將於2024 年11 月到期，該票據的利率為9.75%。因此，該債務已明確了未來幾年的所有到期期限。截至年底，我們在停電頻率、停電持續時間以及客戶滿意度指數方面的服務質量均達到了歷史最佳記錄。

We also signed the agreement to cancel and compensate credits with CAMMESA according to the law approved by the Congress, with our remaining debt to be paid in installments as explained below. Recently, the new tariff approval will help to reach a path of normalization of the sector.

我們還根據國會批准的法律與CAMMESA簽署了取消和補償信貸的協議，剩餘債務將分期償還，如下所述。最近，新關稅的批准將有助於該行業走上正常化之路。

Finally, last March 7, the company issued an additional $30 million bond outstanding, receiving orders for more than $50 million. All of the above show our management KPIs reaching as well as a look to give, again, trust to our investor and bondholders.

最後，去年 3 月 7 日，該公司額外發行了 3000 萬美元的未償還債券，收到的訂單超過 5000 萬美元。上述所有內容都表明我們的管理關鍵績效指標已達到目標，並希望再次贏得投資者和債券持有人的信任。

This concludes my review on Edenor, and I would like to thank you for your support showed by our investors and bondholders and your interest in participating today. We are now open for questions through our chat.

我對 Edenor 的評論到此結束，我要感謝您對我們的投資者和債券持有人的支持以及您今天參與的興趣。我們現在可以通過聊天接受提問。

Okay. There are no questions. So thank you for joining this conference call, and have a nice day. Thank you, everybody, for hearing our conference.

好的。沒有問題。感謝您參加本次電話會議，祝您有美好的一天。謝謝大家聆聽我們的會議。