EMPRESA DISTRIBUIDOR

EDN
End-of-day quote. End-of-day quote  - 01/20
27.35ARS 0.00%

Empresa Distribuidora y Comercializadora Norte Sociedad Anónima : Q3 2020 - Financial Statement

11/12/2020 | 08:35am

CONDENSED INTERIM FINANCIAL STATEMENTS

AS OF SEPTEMBER 30, 2020 AND FOR THE NINE AND THREE-

MONTH PERIOD ENDED SEPTEMBER 30, 2020

PRESENTED IN COMPARATIVE FORM

(Stated in thousands of constant pesos - Note 3)

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

Legal Information

2

Condensed Interim Statement of Comprehensive (Loss) Income

3

Condensed Interim Statement of Financial Position

4

Condensed Interim Statement of Changes in Equity

6

Condensed Interim Statement of Cash Flows

7

Notes to the Condensed Interim Financial Statements:

1

|

General information

9

2

|

Regulatory framework

11

3

|

Basis of preparation

13

4

|

Accounting policies

14

5

|

Financial risk management

15

6

|

Critical accounting estimates and judgments

17

7

|

Contingencies and lawsuits

19

8

|

Revenue from sales and electric power purchases

20

9

|

Expenses by nature

22

10

|

Other operating income (expense), net

23

11

|

Net financial expense

23

12

|

Basic and diluted (loss) profit per share

24

13

|

Property, plant and equipment

25

14

|

Right-of-use asset

27

15

|

Other receivables

27

16

|

Trade receivables

28

17

|

Financial assets at fair value through profit or loss

28

18

|

Inventories

29

19

|

Cash and cash equivalents

29

20

|

Share capital and additional paid-in capital

29

21

|

Allocation of profits

29

22

|

Trade payables

30

23

|

Other payables

30

24

|

Borrowings

31

25

|

Salaries and social security taxes payable

31

26

|

Income tax and deferred tax

32

27

|

Tax liabilities

33

28

|

Provisions

33

29

|

Related-party transactions

33

30

|

Ordinary and Extraordinary Shareholders' Meeting

34

31

|

Termination of agreement on real estate asset

35

Report on Condensed Interim Financial Statements' Review

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

Glossary of Terms

The following definitions, which are not technical ones, will help readers understand some of the terms used in the text of the notes to the Company's Condensed Interim Financial Statements.

Terms

Definitions

BCRA

Central Bank of Argentina

BICE

Banco de Inversión y Comercio Exterior

BNA

Banco de la Nación Argentina

CABA

City of Buenos Aires

CAMMESA

Compañía Administradora del Mercado Mayorista Eléctrico S.A.

(the company in charge of the regulation and operation of the wholesale

electricity market)

CNV

National Securities Commission

CPD

Company's Own Distribution Cost

CSJN

Supreme Court of Justice of Argentina

CTLL

Central Térmica Loma de la Lata S.A.

DNU

Executive Order issued on the grounds of Necessity and Urgency

EASA

Electricidad Argentina S.A.

edenor

Empresa Distribuidora y Comercializadora Norte S.A.

ENRE

National Regulatory Authority for the Distribution of Electricity

FACPCE

Argentine Federation of Professional Councils in Economic Sciences

FIDUS

FIDUS Sociedad de Garantías Recíprocas

GWh

Gigawatt/hour

IAS

International Accounting Standards

IASB

International Accounting Standards Board

ICBC

Industrial and Commercial Bank of China

IEASA

Integración Energética Argentina S.A.

IFRIC

International Financial Reporting Interpretations Committee

IFRS

International Financial Reporting Standards

IMF

International Monetary Fund

MEM

Wholesale Electricity Market

OSV

Orígenes Seguros de Vida S.A.

PBA

Province of Buenos Aires

PEN

Federal Executive Power

PESA

Pampa Energía S.A.

RDSA

Ribera Desarrollos S.A.

RECPAM

Gain (Loss) on exposure to the changes in the purchasing power of the currency

REM

Market Expectations Survey

RTI

Tariff Structure Review

SACME

S.A. Centro de Movimiento de Energía

SACDE

Sociedad Argentina de Construcción y Desarrollo Estratégico S.A.

SEGBA

Servicios Eléctricos del Gran Buenos Aires S.A.

WHO

World Health Organization

1

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

Legal Information

Corporate name: Empresa Distribuidora y Comercializadora Norte S.A.

Legal address: 6363 Av. del Libertador Ave., City of Buenos Aires

Main business: Distribution and sale of electricity in the area and under the terms of the Concession Agreement by which this public service is regulated.

Date of registration with the Public Registry of Commerce:

  • of the Articles of Incorporation: August 3, 1992
  • of the last amendment to the By-laws: May 28, 2007 - Note 30

Term of the Corporation: August 3, 2087

Registration number with the "Inspección General de Justicia" (the Argentine governmental regulatory agency of corporations): 1,559,940

Parent company: PESA

Legal address: 1 Maipú Street, CABA

Main business of the parent company: Study, exploration and exploitation of hydrocarbon wells, development of mining activities, industrialization, transport and sale of hydrocarbons and their by-products, and the generation, transmission and distribution of electricity. Investment in undertakings and in companies of any nature on its own account or on behalf of third parties or associates of third parties in Argentina or abroad.

Interest held by the parent company in capital stock and votes: 55.14%

CAPITAL STRUCTURE

AS OF SEPTEMBER 30, 2020

(amounts stated in pesos)

Subscribed and

Class of shares

paid-in

(See Note 20)

Common, book-entry shares, face value 1 and 1

vote per share

Class A

462,292,111

Class B (1)

442,210,385

Class C (2)

1,952,604

906,455,100

(1) Includes 31,380,871 treasury shares as of September 30, 2020 and December 31, 2019.

(2) Relates to the Employee Stock Ownership Program Class C shares that have not been transferred.

2

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

edenor

Condensed Interim Statement of Comprehensive (Loss) Income for the nine and three-month period ended September 30, 2020 presented in comparative form

(Stated in thousands of constant pesos - Note 3)

Nine months at

Three months at

Note

09.30.20

09.30.19

09.30.20

09.30.19

Revenue

8

65.920.650

88.286.803

23.033.163

30.469.013

Energy purchases

8

(41.727.716)

(55.510.382)

(14.307.046)

(19.338.420)

Subtotal

24.192.934

32.776.421

8.726.117

11.130.593

Transmission and distribution expenses

9

(13.506.842)

(14.736.956)

(4.438.420)

(4.091.484)

Gross margin

10.686.092

18.039.465

4.287.697

7.039.109

Selling expenses

9

(7.402.319)

(6.872.203)

(2.509.420)

(1.910.068)

Administrative expenses

9

(3.078.759)

(3.448.423)

(1.016.490)

(1.196.142)

Other operating income (expense), net

10

312.662

(1.049.731)

(86.348)

(387.297)

Gain from interest in joint ventures

(625)

504

(3)

(3)

Operating profit

517.051

6.669.612

675.436

3.545.599

Agreement on the Regularization of Obligations

-

20.999.057

-

840.008

Financial income

11

16.293

54.866

3.640

6.398

Finance costs

11

(5.412.677)

(5.717.693)

(2.239.220)

(846.711)

Other finance costs

11

(1.730.338)

(4.277.858)

(200.191)

(3.596.133)

Net finance costs

(7.126.722)

(9.940.685)

(2.435.771)

(4.436.446)

Monetary gain (RECPAM)

6.001.774

11.693.566

2.477.886

2.704.230

(Loss) Profit before taxes

(607.897)

29.421.550

717.551

2.653.391

Income tax

26

(1.230.878)

(12.362.917)

(616.318)

(2.300.501)

(Loss) Profit for the period

(1.838.775)

17.058.633

101.233

352.890

Comprehensive (loss) income for the period attributable to:

Owners of the parent

(1.838.775)

17.058.633

101.233

352.890

Comprehensive (loss) profit for the period

(1.838.775)

17.058.633

101.233

352.890

Basic and diluted (loss) profit per share:

(Loss) Profit per share

12

(2,10)

19,49

0,12

0,40

The accompanying notes are an integral part of the Condensed Interim Financial Statements.

3

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

edenor

Condensed Interim Statement of Financial Position

as of September 30, 2020 presented in comparative form

(Stated in thousands of constant pesos - Note 3)

Note

09.30.20

12.31.19

ASSETS

Non-current assets

Property, plant and equipment

13

126,953,869

124,434,052

Interest in joint ventures

10,574

13,699

Right-of-use asset

14

310,066

320,533

Other receivables

15

19,252

31,977

Total non-current assets

127,293,761

124,800,261

Current assets

Inventories

18

1,807,274

2,366,942

Other receivables

15

784,504

355,851

Trade receivables

16

16,631,718

15,305,839

Financial assets at fair value through profit or loss

17

-

3,427,004

Cash and cash equivalents

19

9,002,111

503,201

Total current assets

28,225,607

21,958,837

TOTAL ASSETS

155,519,368

146,759,098

4

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

edenor

Condensed Interim Statement of Financial Position

as of September 30, 2020 presented in comparative form (continued)

(Stated in thousands of constant pesos - Note 3)

Note

09.30.20

12.31.19

EQUITY

Share capital and reserve attributable to the owners

of the Company

Share capital

20

875.074

875.074

Adjustment to share capital

20

32.763.810

32.763.810

Treasury stock

20

31.381

31.381

Adjustment to treasury stock

20

703.097

703.097

Additional paid-in capital

20

454.494

454.494

Cost treasury stock

(2.754.800)

(2.754.800)

Legal reserve

2.328.795

1.583.522

Voluntary reserve

38.523.376

24.363.181

Other comprehensive loss

(264.848)

(264.848)

Accumulated (losses) profits

(1.838.775)

14.905.468

TOTAL EQUITY

70.821.604

72.660.379

LIABILITIES

Non-current liabilities

Trade payables

22

480.100

453.955

Other payables

23

5.703.228

4.937.680

Borrowings

24

7.476.877

10.069.650

Deferred revenue

1.487.098

331.777

Salaries and social security payable

25

340.465

295.514

Benefit plans

845.726

643.577

Deferred tax liability

26

25.133.465

24.635.341

Provisions

28

2.123.245

2.533.683

Total non-current liabilities

43.590.204

43.901.177

Current liabilities

Trade payables

22

32.132.639

15.601.562

Other payables

23

3.080.494

4.418.052

Borrowings

24

1.290.798

2.038.191

Derivative financial instruments

12.656

252.122

Deferred revenue

31.720

6.567

Salaries and social security payable

25

2.305.617

2.956.801

Benefit plans

51.119

62.794

Income tax payable

26

498.012

2.419.207

Tax liabilities

27

1.354.772

2.179.572

Provisions

28

349.733

262.674

Total current liabilities

41.107.560

30.197.542

TOTAL LIABILITIES

84.697.764

74.098.719

TOTAL LIABILITIES AND EQUITY

155.519.368

146.759.098

The accompanying notes are an integral part of the Condensed Interim Financial Statements.

5

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

edenor

Condensed Interim Statement of Changes in Equity for the nine-month period ended September 30, 2020 presented in comparative form

(Stated in thousands of constant pesos - Note 3)

Other

Adjustment to

Adjustment to

Additional paid-

Cost treasury

Voluntary

comprehesive

Accumulated

Total

Share capital

share capital

Treasury stock

treasury stock

in capital

stock

Legal reserve

reserve

loss

(losses) profits

equity

Balance at December 31, 2018

883.344

33.020.317

23.111

446.590

454.494

(2.018.809)

288.559

693.335

(258.546)

24.964.808

58.497.203

Ordinary and Extraordinary Shareholders'

Meeting held on April 24, 2019

-

-

-

-

-

-

1.294.963

23.669.846

-

(24.964.809)

-

Acquisition of own shares

(8.270)

(256.507)

8.270

256.507

-

(735.991)

-

-

-

-

(735.991)

Profit for the nine-month period

-

-

-

-

-

-

-

-

-

17.058.633

17.058.633

Balance at September 30, 2019

875.074

32.763.810

31.381

703.097

454.494

(2.754.800)

1.583.522

24.363.181

(258.546)

17.058.632

74.819.845

Other comprehensive loss

-

-

-

-

-

-

-

-

(6.302)

-

(6.302)

Loss for the three-month period

-

-

-

-

-

-

-

-

-

(2.153.164)

(2.153.164)

Balance at December 31, 2019

875.074

32.763.810

31.381

703.097

454.494

(2.754.800)

1.583.522

24.363.181

(264.848)

14.905.468

72.660.379

Ordinary and Extraordinary Shareholders'

Meeting held on April 28, 2020 (Note 30)

-

-

-

-

-

-

745.273

14.160.195

-

(14.905.468)

-

Loss for the nine-month period

-

-

-

-

-

-

-

-

-

(1.838.775)

(1.838.775)

Balance at September 30, 2020

875.074

32.763.810

31.381

703.097

454.494

(2.754.800)

2.328.795

38.523.376

(264.848)

(1.838.775)

70.821.604

The accompanying notes are an integral part of the Condensed Interim Financial Statements.

6

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

edenor

Condensed Interim Statement of Cash Flows

for the nine-month period ended September 30, 2020

presented in comparative form

(Stated in thousands of constant pesos - Note 3)

Note

09.30.20

09.30.19

Cash flows from operating activities

(Loss) Profit for the period

(1.838.775)

17.058.633

Adjustments to reconcile net (loss) profit to net cash flows from

operating activities:

Depreciation of property, plants and equipments

13

4.451.260

4.303.702

Depreciation of right-of-use assets

14

193.386

128.530

Loss on disposals of property, plants and equipments

13

94.890

64.446

Net accrued interest

11

4.413.890

4.681.962

Exchange difference

11

2.113.125

4.715.542

Income tax

26

1.230.878

12.362.917

Allowance for the impairment of trade and other receivables, net of recovery

9

3.019.560

1.159.830

Adjustment to present value of receivables

11

120.438

11.340

Provision for contingencies

28

259.763

1.455.513

Changes in fair value of financial assets

11

(265.391)

(573.993)

Accrual of benefit plans

9

426.575

322.084

Net gain from the repurchase of Corporate Notes

11

(374.412)

2.854

Gain from interest in joint ventures

625

(504)

Income from non-reimbursable customer contributions

10

(13.553)

(6.386)

Other financial results

133.073

-

Agreement on the Regularization of Obligations

-

(20.999.057)

Monetary gain (RECPAM)

(6.001.774)

(11.693.566)

Changes in operating assets and liabilities:

Increase in trade receivables

(5.580.452)

(6.616.307)

Increase in other receivables

(508.854)

(298.962)

Decrease (Increase) in inventories

48.987

(615.659)

Increase in deferred revenue

1.256.933

-

Increase in trade payables

4.781.657

5.852.881

Increase in salaries and social security payable

274.181

229.377

Decrease in benefit plans

(321.808)

-

Decrease in tax liabilities

(515.373)

(237.477)

(Decrease) Increase in other payables

(159.807)

1.392.812

Derivative financial instruments payments

(279.486)

-

Decrease in provisions

28

(56.059)

(86.967)

Payment of income tax payable

(2.475.343)

(2.924.127)

Subtotal before variation in debt with CAMMESA

4.428.134

9.689.418

Net increase from funds obtained - Commercial financing CAMMESA

12.763.475

-

Net cash flows generated by operating activities

17.191.609

9.689.418

7

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

edenor

Condensed Interim Statement of Cash Flows

for the nine-month period ended September 30, 2020

presented in comparative form (continued)

(Stated in thousands of constant pesos - Note 3)

Note

09.30.20

09.30.19

Cash flows from investing activities

Payment of property, plants and equipments

(6.450.965)

(10.581.843)

Net collection of financial assets

-

1.630.903

Redemtion net of money market funds

2.955.463

1.941.190

Mutuum charges granted to third parties

33.785

195.681

Mutuum payments granted to third parties

-

(206.723)

Collection of receivables from sale of subsidiaries

6.764

15.074

Net cash flows used in investing activities

(3.454.953)

(7.005.718)

Cash flows from financing activities

Payment of borrowings

(750.349)

(901.085)

Payment of financial lease liability

(254.417)

(186.491)

Payment of interests from borrowings

(556.276)

(584.774)

Repurchase of Corporate Notes

(3.597.950)

(138.669)

Acquisition of own shares

-

(735.999)

Net cash flows used in financing activities

(5.158.992)

(2.547.018)

Increase in cash and cash equivalents

8.577.664

136.682

Cash and cash equivalents at the beginning of year

19

503.201

52.146

Exchange differences in cash and cash equivalents

(143.165)

108.972

Result from exposure to inflation

64.411

(2.364)

Increase in cash and cash equivalents

8.577.664

136.682

Cash and cash equivalents at the end of the period

19

9.002.111

295.436

Supplemental cash flows information

Non-cash activities

Agreement on the Regularization of Obligations

-

20.999.057

Adquisition of advances to suppliers, property, plant and equipment through

(615.002)

(427.260)

increased trade payables

Adquisition of advances to suppliers, right-of-use assets through increased

(182.919)

-

trade payables

The accompanying notes are an integral part of the Condensed Interim Financial Statements.

8

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 1 | General information

History and development of the Company

edenor was organized on July 21, 1992 by Executive Order No. 714/92 in connection with the privatization and concession process of the distribution and sale of electric power carried out by

SEGBA.

By means of an International Public Bidding, the PEN awarded 51% of the Company's capital stock, represented by the Class "A" shares, to the bid made by EASA, the parent company of edenor at that time. The award as well as the transfer contract were approved on August 24, 1992 by Executive Order No. 1,507/92 of the PEN.

On September 1, 1992, EASA took over the operations of edenor.

As a consequence of the merger processes of EASA and its parent IEASA with and into CTLL, and, in turn, of the latter with and into PESA, formalized in 2018, at present, PESA is the controlling company of edenor.

The corporate purpose of edenor is to engage in the distribution and sale of electricity within the concession area. Furthermore, among other activities, the Company may subscribe or acquire shares of other electricity distribution companies, subject to the approval of the regulatory agency, assign the use of the network to provide electricity transmission or other voice, data and image transmission services, and render advisory, training, maintenance, consulting, and management services and know-how related to the distribution of electricity both in Argentina and abroad. These activities may be conducted directly by edenor or through subsidiaries or related companies. In addition, the Company may act as trustee of trusts created under Argentine laws.

The Company's economic and financial situation

In the last fiscal year, the Company recorded negative working capital. This situation is due mainly to the suspension of the electricity rate update from February 2019 to date, in spite of the constant increase of the operating costs and the investments necessary, both for the operation of the network and to maintain the quality of the service, in a context of inflation and sustained recession in which the Argentine economy has been since mid-2018. The Company has been significantly affected by the freeze on electricity rates, therefore, its revenues are at December 2018 values, in spite of the high levels of inflation experienced over the last twenty months and the uncertainty we face as to when the update of costs will be finally recognized.

Additionally, this situation was exacerbated by the effects of the COVID-19 pandemic, which has had a severe social, economic and financial impact and whose long-term consequences are uncertain and difficult to assess for the global economy. Most of the world's countries implemented exceptional actions, which had an immediate impact on their economies, as rapidly evidenced by the falls recorded in production and activity indicators. The governments' immediate response to these consequences was the implementation of tax aids to sustain their citizens' income and thereby reduce the risk of a breakdown in the chain of payments, avoiding an economic and financial crisis.

With regard to our country, the Argentine economy was facing a recession, and the outbreak of the pandemic in March 2020 complicated that scenario even more, affecting the Company directly, mainly as a consequence of: (i) increases in the delinquency rate, due to the suspension of both due dates and disconnection actions, and the provision of electricity free of charge, all this for certain customer segments; (ii) the fall in demand during the first months after the pandemic was declared at the local level, as a consequence of a lower industrial activity, partially offset by the increase recorded in residential consumption; (iii) the interruption of the chain of payments; and (iv) the levels of electricity theft.

In this regard, the Company's Board of Directors is currently assessing different alternatives aimed at obtaining the necessary funds to reverse the aforementioned effects.

9

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

This whole situation is aggravated by a complex and vulnerable economic context, as reflected by the country's economic conditions described below:

  1. Economic contraction by an estimated 11.8% for 2020 (IMF - October 2020 World Economic Outlook Report), due to both the difficulty in obtaining credit and the effects of the COVID-19;
  1. Increase of both public spending and fiscal deficit;
  1. Declining inflation but still at high levels that are expected to remain over time;
  1. Between January 1 and September 30, 2020, the devaluation of the Argentine peso against the United States dollar amounted to 21%, in accordance with the BNA's rate of exchange;
  1. Imposition of currency restrictions by the monetary authority, which directly affect the value of the foreign currency for certain restricted foreign exchange transactions taking place outside the MULC.

As for the currency restrictions, the BCRA's prior authorization is required for certain transactions, such as the Company's transactions associated with the payment of imports of goods from abroad that are necessary for the provision of the service. These currency restrictions, or those implemented in the future, could affect the Company's ability to access the MULC in order to acquire the foreign currency necessary to face its operating and financial obligations.

Additionally, the enactment, by the end of 2019, of Law No. 27,541 on Social Solidarity and Production Reactivation in the framework of the Economic Emergency, whereby the PEN was authorized to keep electricity rates under federal jurisdiction unchanged for one hundred and eighty days, the ENRE's instruction directing edenor not to increase its electricity rates, and the issuance on June 19, 2020 of Executive Order No. 543 that extended said period for another one hundred and eighty calendar days, postponing the update of the electricity rate schedule, impact directly on the Company's financial soundness.

Despite the previously described situation, it is worth pointing out that, in general terms, the quality of the electricity distribution service has been significantly improved, both in duration and frequency of power cuts. In view of the continuous increase of the costs associated with the provision of the service, as well as the need for additional investments to meet the demand, the Company, as previously mentioned, is analyzing different measures aimed at mitigating the negative effects of this situation on its financial structure, minimizing the impact on the sources of employment, the execution of the investment plan, and the carrying out of the essential operation, maintenance and improvement- related works that are necessary to maintain the provision of the public service, object of the concession, in a satisfactory manner in terms of quality and safety.

It is in this regard that the Company was forced to partially postpone payments to CAMMESA for energy purchased in the Wholesale Electricity Market ("MEM") as from the maturities that have occurred since March 2020; payment obligations which, although the Company has been partially regularizing, as of September 30, 2020 accumulate a principal balance of $ 20,118,862, plus interest and charges for $ 1,264,461.

Taking into consideration that the realization of the measures necessary to reverse the manifested negative trend depends on the occurrence of certain events that are not under the Company's control, the Board of Directors has raised substantial doubt about edenor's ability to continue as a going concern, which may result in the Company's being obliged to defer certain payment obligations or unable to meet expectations for salary increases or the increases recorded in third-party costs.

Nevertheless, these condensed interim financial statements have been prepared assuming that the Company will continue to operate as a going concern and do not include the effects of the adjustments or reclassifications that might result from the outcome of these uncertainties.

1 0

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 2 | Regulatory framework

At the date of issuance of these condensed interim financial statements, there exist the following changes with respect to the situation reported by the Company in the Financial Statements as of December 31, 2019, mainly as a consequence of the public health emergency, associated with the effects of the COVID-19, declared in Argentina as from March 20, 2020, the ending of which, as well as its effects, is uncertain as it is dependent on the development of the pandemic.

a) Intervention of the Regulatory Authority

On March 16, 2020, by means of Executive Order No. 277/20, the PEN provided, within the framework of the public emergency and in accordance with the provisions of Law No. 27,541 on Social Solidarity and Production Reactivation, for the intervention of the ENRE until December 31, 2020.

b) Freeze on Electricity Rates

On June 19, 2020, DNU No. 543/2020 was issued, whereby the authority to keep the electricity rates under federal jurisdiction unchanged was extended for an additional term of 180 calendar days.

Nevertheless, at the date of issuance of these financial statements, the Company has duly submitted to the ENRE the adjustment request of its Own Distribution Costs (CPD), pursuant to the provisions of Appendix XV of ENRE Resolution No. 63/2017 "Procedure for determining the electricity rate schedule", in accordance with the following detail:

Period

Date of

CPD

application

adjustment

Dec. 18 - Jun. 19

Aug. 19 (1)

19.05%

Jun. 19 - Dec. 19

Feb. 20

24.65%

Dec. 19 - Jun. 20

Aug. 20

12.97%

  1. The CPD adjustment applicable in August 2019 was deferred until January 2020 by means of the
    Electricity Rate Schedule Maintenance Agreement.

The indicated CPD and the other concepts detailed in the "Electricity Rate Schedule Maintenance Agreement" entered into with the Federal Government on September 19, 2019, neither transferred to tariffs nor authorized to be collected by other means accumulate as of September 30, 2020 a total of approximately $ 15,606,000, without considering interest.

As a consequence of the described situation, the Chamber of Deputies gave preliminary approval to the 2021 budget bill, which, in its section 87, provides for a system for the settlement of debts with CAMMESA and/or the MEM that Distribution Companies had accumulated as of September 30, 2020, whether on account of the consumption of energy, power, interest and/or penalties, in accordance with the conditions to be set out by the application authority, which may provide for credits equivalent to up to five times the monthly average bill or to sixty-six percent of the existing debt, whereas the remaining debt is to be paid in up to sixty monthly installments, with a grace period of up to six months, and at the rate in effect in the MEM, reduced by fifty percent. At the date of these condensed interim financial statements, its approval by the Senate is still pending.

1 1

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

  1. Effects related to the COVID-19
    1. Suspension of customer service in commercial offices: on March 21, 2020, by means of Resolution No. 3/2020, the ENRE resolved to instruct distribution companies to: i) immediately suspend customer service, with the closure of all the commercial offices during the mandatory and preventive social isolation period; ii) implement an electronic system to deal with customer commercial proceedings/inquiries and claims; and iii) provide only for the movement of those human resources required for the continuity of the essential provision of the public service of electricity distribution in the technical and operational aspects of their respective areas. Furthermore, by means of ENRE Note dated July 2, 2020, the ENRE reiterated its instruction as to only provide for the movement of those human resources required for the continuity of the essential provision of the public service of electricity distribution in the technical and operational aspects of the respective networks.
    2. Prohibition against the interruption of service provision: on March 25, 2020 the PEN issued DNU No. 311/2020 and its subsequent regulation, as amended, prohibiting utility companies from shutting off services to certain customers (detailed therein) as from March 1, 2020, during the period between April 24, 2020 and December 31, 2020 (extended for 180 calendar days by DNU 543/2020). Additionally, the Order provides that the customers who have a prepaid system and do not pay for the recharges, will receive the service as normal and usual during that same period. The detailed aspects impact directly on the Company's operations, its economic and financial situation, and outlook as the necessary resources to deal with those situations have not been defined.
    3. System of payment for the service: by means of Resolution No. 173/2020 (which regulates DNU 311/2020, as amended by DNU 756/2020), on April 18, 2020, the Ministry of Productive Development provided that the consumers benefitted from the prohibition against the interruption of the service due to non-payment of up to seven bills (universe of customers mentioned in the preceding paragraph), may pay their unpaid bills for the electricity distribution service in up to 30 monthly, equal and consecutive installments with an interest rate to be determined by the application authority, with the first installment maturing on September 30, 2020. This resolution applies only to a specific group of customers, which is deemed to be in a more vulnerable situation, detailed in the resolution, and whose scope at the date of issuance of these condensed interim financial statements is still pending definition by the application authority. Furthermore, the financing may be applied to the purchase of energy the Company makes from the MEM associated with these consumptions.
    4. Consumption estimate: in the framework of the mandatory and preventive social isolation provided for by the PEN and the provisions of ENRE Resolution No. 3/2020, on April 13, 2020, the Regulatory Authority authorized the Company to apply the methodology for validating meter readings and consumption estimates (ENRE Resolution No. 209/2018), excluding the cases of remote readings and non-metered consumptions. Furthermore, the ENRE issued two instructions, one of them on April 30, 2020 and the other on May 5, 2020, in relation to the application of the aforementioned methodology, mainly with regard to the communication to be provided to customers, the mechanisms for challenging meter readings and the information about this process to be provided on a periodical basis to the Regulatory Authority. Subsequently, on May 6, 2020, the ENRE authorized Distribution Companies to perform meter reading activities for the electricity consumption of medium and large demand user categories, tariff 2 and 3.

In this regard, by means of Resolution No. 27/2020, the ENRE resolved that in the case of T1R (small-demand residential tariff) category users with no remote meter reading, the lowest consumption recorded over the last three years prior to the issuance of the bill for the same estimated period is to be applied until actual meter readings are available.

1 2

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Furthermore, by means of Resolution No. 35/2020, the ENRE resolved that T2 (medium- demand), T3 (large-demand) and Wheeling system tariff category users subject to compliance with the mandatory lockdown, who have suffered a reduction of at least 50% in their demand for power, may either suspend payment or make partial payments on account of the contracted power under electricity supply contracts, until 70% of the demand is recovered, maintaining the obligation to pay the other charges.

Finally, on May 15, 2020, by means of note dated May 15, 2020, the ENRE instructed the Company to begin to carry out reading tasks of T1 (small-demand tariff) users' meters so that the billing reflects actual consumption.

In this regard, it was provided that if from the previous consumption estimate process a difference arises in favor of the user, it must be reimbursed by the Company in the first bill with actual reading. Furthermore, if the difference is in favor of the Company, the resulting amount will have to be paid in 6 equal and consecutive installments, which will be included in the bills to be issued with the consumption recorded as from September 1, 2020, which was extended to November 1, 2020. Finally, by means of note dated October 26, 2020, the ENRE suspended the commencement of the payment of the installments of the amounts owed by T1 (small-demand tariff) users until new instructions are given in this regard.

Furthermore, by means of DNU No. 875/2020 dated November 7, 2020, the PEN provided for the Mandatory, Preventive and Social Distancing, lifting certain restrictions in the CABA and the AMBA (Buenos Aires Metropolitan Area).

All that which has been previously described impacts on the Company's economic and financial situation.

d) Penalties

At the date of issuance of these condensed interim financial statements, and despite the unilateral breach by the grantor of the concession of the Electricity Rate Schedule Maintenance Agreement signed with the Federal Government on September 19, 2019, the Company has complied with the payment of the six penalty-related installments, whose payment had been deferred.

Furthermore, on June 3, 2020, by means of Resolution No. 42/2020, the ENRE approved the new methodology for crediting and distributing the penalties payable to all the active users, and the regulations of the methodology for crediting the penalties payable to disconnected users, as well as the manner in which distribution companies must produce that information and send it to the ENRE. As of September 30, 2020, the totality of the penalties payable to active users have been credited.

Note 3 | Basis of preparation

These condensed interim financial statements for the nine-month period ended September 30, 2020 have been prepared in accordance with the provisions of IAS 34 "Interim Financial Reporting", incorporated by the CNV.

These condensed interim financial statements for the nine-month period ended September 30, 2020 have not been audited; they have been reviewed by the Independent Accountant in accordance with ISRE 2410, whose scope is substantially less than that of an audit performed in accordance with applicable auditing standards. The Company's Management estimates that they include all the necessary adjustments to fairly present the results of operations for each period. The result of operations for the nine-month period ended September 30, 2020 and its comparative period as of September 30, 2019 do not necessarily reflect the Company's results in proportion to the full fiscal year. They were approved for issue by the Company's Board of Directors on November 10, 2020.

The condensed interim financial statements are measured in pesos (the legal currency in Argentina) restated in accordance with that mentioned in this Note, which is also the presentation currency.

1 3

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

These condensed interim financial statements must be read together with the audited Financial Statements as of December 31, 2019 prepared under IFRS.

Comparative information

The balances as of December 31 and for the nine and three-month period ended September 30, 2019, as the case may be, disclosed in these condensed interim financial statements for comparative purposes, arise as a result of restating the annual Financial Statements and the Condensed Interim Financial Statements as of those dates to the purchasing power of the currency at September 30, 2020, as a consequence of the restatement of the financial information described hereunder. Furthermore, certain amounts of the financial statements presented in comparative form have been reclassified in order to maintain consistency of presentation with the amounts of the current periods (Note 4).

Restatement of financial information

The condensed interim financial statements, including the figures relating to the previous year/period, have been stated in terms of the measuring unit current at September 30, 2020, in accordance with IAS 29 "Financial reporting in hyperinflationary economies", using the BCRA Market Expectations Survey index for the last month of the period, inasmuch as the FACPCE index was not yet available at the closing date of the Company's accounting processes.

The inflation rate applied for the period between January 1, 2020 and September 30, 2020, based on that indicated in the preceding paragraph, amounted to 22.8%. It does not cause significant distortions that, in the Company's opinion, could affect the interpretation of these condensed interim financial statements or investor decisions if the definitive index established by the FACPCE, which was published subsequent to the closing of the Company's accounting process, had been used.

Note 4 | Accounting policies

The accounting policies adopted for these condensed interim financial statements are consistent with those used in the preparation of the Financial Statements for the last financial year, which ended on December 31, 2019, except for the classification of commercial interest and surcharges in the statement of comprehensive (loss) income, as the Company believes that the concepts related to interest for delinquency in the payment of trade receivables and surcharges applied to customers due to late payment or other associated penalties provide relevant information about the operation and operating cash flows of the business; therefore, they are disclosed within the other operating income account. The Company's Management believes this disclosure reflects the impacts of the operating cycle, allowing for homogeneity of treatment with other concepts such as the impairment of receivables, particularly taking into consideration the current context detailed in Notes 1 and 2 that increased the delay in the time taken to make payments, including in the latter case the restriction on some measures aimed at limiting delays in payment from customers.

Accounting standards, amendments and interpretations issued by the IASB in the last few years, effective as of September 30, 2020 and adopted by the Company:

  • IAS 1 "Presentation of financial statements" and IAS 8 "Accounting policies" (amended in October 2018). The amendment clarifies the definition of "material" for ease of understanding.
  • IFRS 16 "Leases", amended in May 2020. It permits lessors, as a practical expedient, not to assess whether a lease modification exists in the event of rent concessions occurring as a direct consequence of the COVID-19. It applies to annual periods beginning on or after June 1, 2020. The cumulative effect is recognized as an adjustment to the opening balance of retained earnings at the beginning of the period in which the amendment is first applied, with early adoption permitted.

1 4

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

  • IFRS 17 "Insurance Contracts", published in May 2017. It replaces IFRS 4 - an interim standard issued in 2004 that allowed entities to account for insurance contracts using their local accounting requirements, resulting in multiple application approaches. IFRS 17 establishes the principles for the recognition, measurement, presentation, and disclosure of insurance contracts, and applies to annual periods beginning on or after January 1, 2021, with early adoption permitted if entities also apply IFRS 9 and IFRS 15. The Company has not early adopted this standard.
  • IAS 16 "Property, Plant and Equipment", amended in May 2020. It eliminates the possibility of deducting from the cost of property, plant and equipment any proceeds from the sale of items produced while bringing the asset to the location, carrying out its installation process and preparing it for its intended use. It is applicable retrospectively from January 1, 2022, with early adoption permitted. The Company has not early adopted this standard.
  • IAS 37 "Provisions, contingent liabilities and contingent assets", amended in May 2020. It specifies that the unavoidable cost of fulfilling an onerous contract is the lower of the cost of fulfilling its provisions and the amount of any compensation or penalties arising from failure to fulfil it. It applies to annual periods beginning on or after January 1, 2022, with early adoption permitted. The Company has not early adopted this standard.

There are no new IFRS or IFRIC applicable as from this period that have a material impact on the Company's condensed interim financial statements.

Note 5 | Financial risk management

Nota 5.1 | Financial risk factors

The Company's activities and the market in which it operates expose the Company to a series of financial risks: market risk (including currency risk, cash flows interest rate risk, fair value interest rate risk and price risk), credit risk and liquidity risk.

Additionally, the difficulty in obtaining financing in the international markets could affect some of the Company's business variables, such as interest rates, foreign currency exchange rates and the access to sources of financing.

With regard to the Company's risk management policies, there have been no significant changes since the last fiscal year end.

1 5

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

  1. Market risks
  1. Currency risk

As of September 30, 2020 and December 31, 2019, the Company's balances in foreign currency are as follow:

Amount in

foreign

Exchange

Total

Total

Currency

currency

rate (1)

09.30.20

12.31.19

ASSETS

CURRENT ASSETS

Other receivables

USD

6,167

76.180

469,802

73,568

EUR

37

89.390

3,307

-

JPY

54,609

0.723

39,460

-

CHF

5

82.768

414

-

Financial assets at fair value through profit

or loss

USD

-

76.180

-

3,427,034

Cash and cash equivalents

USD

17,110

76.180

1,303,440

147,872

EUR

10

89.390

894

908

TOTAL CURRENT ASSETS

1,817,317

3,649,382

TOTAL ASSETS

1,817,317

3,649,382

LIABILITIES

NON-CURRENT LIABILITIES

Borrowings

USD

98,148

76.180

7,476,877

10,069,650

TOTAL NON-CURRENT LIABILITIES

7,476,877

10,069,650

CURRENT LIABILITIES

Trade payables

USD

9,773

76.180

744,537

666,042

EUR

171

89.390

15,286

35,014

CHF

-

82.768

-

18,864

NOK

-

8.211

-

572

Borrowings

USD

16,944

76.180

1,290,798

2,038,191

Other payables

USD

9,087

76.180

692,248

668,444

TOTAL CURRENT LIABILITIES

2,742,869

3,427,127

TOTAL LIABILITIES

10,219,746

13,496,777

  1. The exchange rates used are the BNA exchange rates in effect as of September 30, 2020 for US Dollars (USD), Euros (EUR), Swiss Francs (CHF) Norwegian Krones (NOK) and Japanese Yens (JPY).
  1. Fair value estimate

The Company classifies the measurements of financial instruments at fair value using a fair value hierarchy that reflects the relevance of the variables used to carry out such measurements. The fair value hierarchy has the following levels:

  • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
  • Level 2: inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (i.e. prices) or indirectly (i.e. derived from the prices).
  • Level 3: inputs for the asset or liability that are not based on observable market data (i.e. unobservable inputs).

1 6

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

The table below shows the Company's financial assets and liabilities measured at fair value as of September 30, 2020 and December 31, 2019:

LEVEL 1

LEVEL 2

TOTAL

At September 30, 2020

Assets

Cash and cash equivalents:

Money market funds

7,788,668

-

7,788,668

Total assets

7,788,668

-

7,788,668

Liabilities

Derivative financial instruments

-

12,656

12,656

Total liabilities

-

12,656

12,656

At December 31, 2019

Assets

Financial assets at fair value through profit or loss:

Money market funds

3,427,004

-

3,427,004

Cash and cash equivalents

Money market funds

306,729

-

306,729

Total assets

3,733,733

-

3,733,733

Liabilities

Derivative financial instruments

-

252,122

252,122

Total liabilities

-

252,122

252,122

  1. Interest rate risk

Interest rate risk is the risk of fluctuation in the fair value or cash flows of an instrument due to changes in market interest rates. The Company's exposure to interest rate risk is mainly related to its long-term debt obligations.

Indebtedness at floating rates exposes the Company to interest rate risk on its cash flows. Indebtedness at fixed rates exposes the Company to interest rate risk on the fair value of its liabilities. As of September 30, 2020 and December 31, 2019 all the loans were obtained at fixed interest rates, except for a loan applied for by the Company and granted by ICBC Bank as from October 2017 for a three-year term at a six-month libor rate plus an initial 2.75% spread, which will be adjusted semi- annually by a quarter-point. The Company's policy is to keep the largest percentage of its indebtedness in instruments that accrue interest at fixed rates.

Note 6 | Critical accounting estimates and judgments

The preparation of the condensed interim financial statements requires the Company's Management to make estimates and assessments concerning the future, exercise critical judgments and make assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities and revenues and expenses.

These estimates and judgments are permanently evaluated and are based upon past experience and other factors that are reasonable under the existing circumstances. Future actual results may differ from the estimates and assessments made at the date of preparation of these condensed interim financial statements, mainly under the current circumstances posed by the COVID- 19 pandemic mentioned in Notes 1 and 2, which could affect the Company's operations and the judgment exercised by Management in each and every aspect related to predictive situations.

1 7

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

In the preparation of these condensed interim financial statements, there were no changes in either the critical judgments made by the Company when applying its accounting policies or the information sources of estimation uncertainty with respect to those applied in the Financial Statements for the year ended December 31, 2019, except for certain parameters that are described below:

  1. Impairment of long-lived assets

The Company analyzes the recoverability of its long-lived assets on a periodical basis or when events or changes in circumstances indicate that the recoverable amount of assets, which is measured as the higher of value in use and fair value less costs to sell at the end of the period, may be impaired.

Due to that described in Note 1, and taking into consideration the impacts on the Company's economic and financial equation, the projections made by edenor at December 31, 2019 have been updated at March 31, 2020, there being no new indicators showing that an impairment may exist concerning the recoverability of its property, plant and equipment.

The value in use is determined on the basis of projected and discounted cash flows, using discount rates that reflect the time value of money and the specific risks of the assets under consideration.

Cash flows are prepared based on estimates concerning the future performance of certain variables that are sensitive to the determination of the recoverable amount, among which the following can be noted: (i) nature, timing, and modality of the electricity rate increases and/or recognition of cost adjustments; (ii) demand for electricity projections; (iii) development of the costs to be incurred; (iv) investment needs appropriate to the service quality levels required by the Regulatory authority, and

  1. macroeconomic variables, such as, growth rates, inflation rates and foreign currency exchange rates, among others.

The Company has made its projections under the assumption that in the next few years it will obtain the delayed electricity rates updates to which it is entitled in accordance with the applicable regulations, using a Discount rate (WACC) in dollars of 11.41% and taking into account the following effects resulting from the situation mentioned in Note 1:

  • Decrease in demand of 15% for the months of April, May and June; 10% for the month of July, and 5% for the months of August, September and October 2020, compared to the average demand recorded in the last few months;
  • Decrease in collections of 40% for the months of April, May and June; 25% for the month of July, and 10% for the months of August, September and October 2020;
  • Reduction of 8% and 16% in operating expenses and capital expenditures, respectively.

However, given the complexity of the country's macroeconomic scenario, exacerbated by the effects of the pandemic, the Company's Management is not in a position to ensure that the future performance of the assumptions used in making its projections will be in line with what it has estimated at the date of preparation of these condensed interim financial statements.

In order to consider the estimation risk included in the projections of the aforementioned variables, the Company has taken into consideration three alternative probability-weighted scenarios, which are detailed below:

  1. Scenario called Optimistic scenario: the Company forecasts that the CPD increases will be transferred to tariffs as from January 2021. Furthermore, as from that date, the outstanding balances, net of the debt with the MEM generated in 2020 plus interest and updates, would begin to be recovered in 12 monthly installments. Additionally, from February 2021 the CPD adjustments related to each period would be transferred to tariffs. As from February 2022, a new RTI period would come into effect, which would imply a redefinition of revenues to face larger investments and an increase in the level of activity. Probability of occurrence assigned 5%.

1 8

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

  1. Scenario called Intermediate scenario: the Company forecasts that the CPD increases will be transferred to tariffs in January 2021, July 2021 and January 2022. Furthermore, in January 2021, the outstanding balances, net of the debt with the MEM generated in 2020 plus interest and updates, would begin to be recovered in 18 monthly installments (estimated average of installments - Note 2.c.3). Additionally, from February 2021 the CPD adjustments related to each period would be transferred to tariffs. Probability of occurrence assigned 70%.
  2. Scenario called Pessimistic scenario: The RTI would be breached. Moreover, the Company forecasts that 80% of the CPD increases will be transferred to tariffs in January 2022 and January 2023. Furthermore, in January 2022, 80% of the outstanding balances, net of the debt with the MEM generated in 2020 plus interest and updates, would begin to be recovered in 18 monthly installments (estimated average of installments - Note 2.c.3). As from February 2021, 80% of the CPD adjustments related to each period would be transferred to tariffs. Probability of occurrence assigned 25%.

The Company has assigned to these three scenarios the previously detailed probability of occurrence percentages based mainly on experience and giving consideration to the current economic and financial situation.

At the date of these condensed interim financial statements, the demand and collection indicators used for the test for recoverability of long-lived fixed assets carried out as of March 31, 2020 have improved, which allows the Company to conclude that there are no new indicators showing that an impairment may exist.

Note 7 | Contingencies and lawsuits

As of September 30, 2020, the provision for contingencies has been recorded to face situations existing at the end of each period that may result in a loss for the Company if one or more future events occurred or failed to occur.

At the date of issuance of these condensed interim financial statements, the variation recorded in the United States dollar exchange rate and, mainly, the significant decrease recorded in interest rates compared to the fiscal year ended December 31, 2019, as a consequence of a combination of external factors and the local macroeconomic context, have resulted in a decrease as of September 30, 2020 in the Company's estimates of the amounts related to the different contingencies and lawsuits. Note 28.

1 9

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 8 | Revenue from sales and energy purchases

We provide below a brief description of the main services provided by the Company:

Sales of electricity

Small demand

Relates to the highest demand average recorded over 15 consecutive

segment:

minutes that is less than 10 kilowatts. In turn, this segment is subdivided into

Residential use

different residential categories based on consumption. This segment also

and public

includes a category for public lighting. Users are categorized by the Company

lighting (T1)

according to their consumption.

Medium

Relates to the highest demand average recorded over 15 consecutive

demand

minutes that is equal to or greater than 10 Kilowatts but less than 50

segment:

Kilowatts. The Company agrees with the user the supply capacity.

Commercial and

industrial

customers (T2)

Large demand

Relates to the highest demand average recorded over 15 consecutive

segment (T3)

minutes that is greater than 50 Kilowatts. In turn, this segment is subdivided

into categories according to the supply voltage -low, medium or high-, from

voltages of up to 1 Kilovolt to voltages greater than 66 Kilovolts.

Other:

Revenue is recognized to the extent that a renewal of the Framework

(Shantytowns/

Agreement has been formalized for the period in which the service was

Wheeling

accrued. In the case of the service related to the Wheeling system, revenue

system)

is recognized when the Company allows third parties (generators and large

users) to access to the available transmission capacity within its distribution

system upon payment of a wheeling fee.

Other services

Right of use of

Revenue is recognized to the extent that the rental value of the right of use

poles

of the poles used by the Company's electricity network has been agreed

upon for the benefit of third parties.

Connection and

Relate to revenue accrued for the carrying out of the electricity supply

reconnection

connection of new customers or the reconnection of already existing users.

charges

2 0

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Energy purchases

Energy

The Company bills its users the cost of its purchases of energy, which

purchase

includes charges for purchases of energy and power. The Company

purchases electric power at seasonal prices approved by the ENRE. The

price of the Company's electric power reflects the costs of transmission and

other regulatory charges.

Energy

Energy losses are equivalent to the difference between energy purchased

Losses

and energy sold. These losses can be classified into technical and non-

technical losses. Technical losses represent the energy lost during

transmission and distribution within the network as a consequence of the

natural heating of the conductors and transformers that carry electricity from

power generation plants to users. Non-technical losses represent the

remainder of the Company's energy losses and are mainly due to the illegal

use of its services or the theft of energy. Energy losses require that the

Company purchase additional energy in order to meet the demand and its

Concession Agreement allows it to recover from its users the cost of these

purchases up to a loss factor specified in its concession for each rate

category. The current loss factor recognized in the tariff by virtue of its

concession amounts to approximately 9.1%.

Sales of electricity Small demand segment: Residential use and public lighting (T1) Medium demand segment: Commercial and industrial (T2) Large demand segment (T3) Other: (Shantytowns/Wheeling system) Subtotal - Sales of electricity

Other services Right of use of poles Connection and reconnection charges Subtotal - Other services

Total - Revenue

Energy purchases (1)

09.30.20

09.30.19

GWh

$

GWh

$

9,041

42,149,157

8,336

53,331,101

1,014

7,430,492

1,165

11,204,545

2,389

13,927,841

2,620

22,378,892

2,983

2,076,794

3,107

1,013,623

15,427

65,584,284

15,228

87,928,161

298,770

276,746

37,596

81,896

336,366

358,642

65,920,650

88,286,803

09.30.20

09.30.19

GWh

$

GWh

$

19,292

(41,727,716)

19,065

(55,510,382)

  1. As of September 30, 2020 and 2019, includes technical and non-technical energy losses for 3,865 GWh and 3,837 GWh, respectively.

2 1

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 9 | Expenses by nature

The detail of expenses by nature is as follows:

Expenses by nature at 09.30.20

Transmission and

distribution

Selling

Administrative

Description

expenses

expenses

expenses

Total

Salaries and social security taxes

5,118,243

838,245

1,122,925

7,079,413

Pension plans

308,403

50,509

67,663

426,575

Communications expenses

110,328

306,001

332

416,661

Allowance for the impairment of trade and other

receivables

-

3,019,560

-

3,019,560

Supplies consumption

1,403,465

-

104,922

1,508,387

Leases and insurance

401

261

201,703

202,365

Security service

199,325

24,193

20,325

243,843

Fees and remuneration for services

2,531,051

1,363,522

924,009

4,818,582

Public relations and marketing

-

15,270

-

15,270

Advertising and sponsorship

-

7,866

-

7,866

Reimbursements to personnel

15

85

488

588

Depreciation of property, plants and

3,501,383

521,770

428,107

4,451,260

equipments

Depreciation of right-of-use asset

19,339

38,677

135,370

193,386

Directors and Supervisory Committee

members' fees

-

-

21,378

21,378

ENRE penalties

314,668

235,504

-

550,172

Taxes and charges

-

980,676

44,531

1,025,207

Other

221

180

7,006

7,407

At 09.30.20

13,506,842

7,402,319

3,078,759

23,987,920

(1) Includes recovery of technical service quality-related penalties for $ 396,216.

The expenses included in the chart above are net of the Company's own expenses capitalized in Property, plant and equipment as of September 30, 2020 for $ 1,099,818.

Expenses by nature at 09.30.19

Transmission and

distribution

Selling

Administrative

Description

expenses

expenses

expenses

Total

Salaries and social security taxes

5,564,741

929,784

1,244,273

7,738,798

Pension plans

231,601

38,697

51,786

322,084

Communications expenses

85,813

342,750

16,608

445,171

Allowance for the impairment of trade and other

-

1,159,830

-

1,159,830

receivables

Supplies consumption

1,360,218

-

119,460

1,479,678

Leases and insurance

-

209

214,159

214,368

Security service

249,867

45,471

74,044

369,382

Fees and remuneration for services

2,449,378

1,468,680

1,143,299

5,061,357

Public relations and marketing

-

48,012

-

48,012

Advertising and sponsorship

-

24,733

-

24,733

Reimbursements to personnel

79

189

856

1,124

Depreciation of property, plants and equipments

3,385,313

504,473

413,916

4,303,702

Depreciation of right-of-use asset

12,853

25,706

89,971

128,530

Directors and Supervisory Committee

members' fees

-

-

22,537

22,537

ENRE penalties

1,396,302

1,551,251

-

2,947,553

Taxes and charges

-

732,037

48,363

780,400

Other

791

381

9,151

10,323

At 09.30.19

14,736,956

6,872,203

3,448,423

25,057,582

The expenses included in the chart above are net of the Company's own expenses capitalized in Property, plant and equipment as of September 30, 2019 for $ 1,139,905.

2 2

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 10 | Other operating income (expense), net

Note

09.30.20

09.30.19

Other operating income

Income from customer surcharges

978.595

973.792

Commissions on municipal taxes collection

148.975

119.703

Fines to suppliers

62.128

141.861

Services provided to third parties

87.951

188.071

Related parties

29.a

42.381

27.540

Income from non-reimbursable customer

13.553

6.386

contributions

Other

39.643

26.174

Total other operating income

1.373.226

1.483.527

Other operating expense

Gratifications for services

(36.268)

(116.299)

Cost for services provided to third parties

(70.868)

(107.220)

Severance paid

(14.930)

(19.158)

Debit and Credit Tax

(547.711)

(738.871)

Provision for contingencies

(259.763)

(1.455.513)

Disposals of property, plant and equipment

(94.890)

(64.446)

Other

(36.134)

(31.751)

Total other operating expense

(1.060.564)

(2.533.258)

Other operating income (expense), net

312.662

(1.049.731)

Note 11 | Net finance costs

09.30.20

09.30.19

Financial income

Financial interest

16.293

54.866

Finance costs

Commercial interest

(3.194.831)

(3.460.430)

Interest and other

(2.118.133)

(2.244.647)

Fiscal interest

(95.814)

(5.543)

Bank fees and expenses

(3.899)

(7.073)

Total finance costs

(5.412.677)

(5.717.693)

Other financial results

Changes in fair value of financial assets

265.391

573.993

Net gain from the repurchase of

374.412

(2.854)

Corporate Notes

Exchange differences

(2.113.125)

(4.715.542)

Adjustment to present value of receivables

(120.438)

(11.340)

Other finance costs

(136.578)

(122.115)

Total other finance costs

(1.730.338)

(4.277.858)

Total net finance costs

(7.126.722)

(9.940.685)

2 3

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 12 | Basic and diluted (loss) profit per share

Basic

The basic (loss) profit per share is calculated by dividing the (loss) profit attributable to the holders of the Company's equity instruments by the weighted average number of common shares outstanding as of September 30, 2020 and 2019, excluding common shares purchased by the Company and held as treasury shares.

The basic (loss) profit per share coincides with the diluted (loss) profit per share, inasmuch as the Company has issued neither preferred shares nor Corporate Notes convertible into common shares.

(Loss) Profit for the period attributable to the owners of the Company Weighted average number of common shares outstanding

Basic and diluted (loss) profit per share - in pesos (*)

Nine months at

Three months at

09.30.20

09.30.19

09.30.20

09.30.19

(1.838.775)

17.058.633

101.233

352.890

875.074

875.074

875.074

875.074

(2,10)

19,49

0,12

0,40

(*) As of September 30, 2019, includes the result of the Agreement on the Regularization of Obligations.

2 4

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 13 | Property, plant and equipment

Tools, Furniture,

vehicles,

Meters and

equipment,

High, medium

Transformer

communications

Lands and

and low voltage

chambers and

and advances to

Construction in

Supplies and

buildings

Substations

lines

platforms

suppliers

process

spare parts

Total

At 12.31.19

Cost

2,937,978

27,069,344

77,064,236

32,833,965

4,913,480

27,766,420

298,583

172,884,006

Accumulated depreciation

(561,920)

(8,429,490)

(25,345,238)

(11,002,523)

(3,110,783)

-

-

(48,449,954)

Net amount

2,376,058

18,639,854

51,718,998

21,831,442

1,802,697

27,766,420

298,583

124,434,052

Additions

15,895

1,229,000

58,504

181,898

349,993

5,144,306

86,371

7,065,967

Disposals

-

(1,282)

(20,482)

(73,126)

-

-

-

(94,890)

Transfers

150,705

3,595,021

3,277,656

2,173,956

174,258

(9,228,718)

(142,878)

-

Depreciation for the period

(64,135)

(798,804)

(2,059,476)

(1,047,568)

(481,277)

-

-

(4,451,260)

Net amount 09.30.20

2,478,523

22,663,789

52,975,200

23,066,602

1,845,671

23,682,008

242,076

126,953,869

At 09.30.20

Cost

3,104,578

31,890,029

80,306,848

35,089,716

5,437,613

23,682,008

242,076

179,752,868

Accumulated depreciation

(626,055)

(9,226,240)

(27,331,648)

(12,023,114)

(3,591,942)

-

-

(52,798,999)

Net amount

2,478,523

22,663,789

52,975,200

23,066,602

1,845,671

23,682,008

242,076

126,953,869

  • During the period ended September 30, 2020, the Company capitalized as direct own costs $ 1,099,818.
  • Includes $ 1,311,326 in additions, related to a 500/220 kW - 800 MVA transformer bank in General Rodriguez transformer station (section 8, item 8.2 of the agreement entered into by the Company, the BICE bank and CAMMESA on April 24, 2014); with a contra-account in Deferred revenue.

2 5

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Tools, Furniture,

vehicles,

Meters and

equipment,

High, medium

Transformer

communications

Lands and

and low voltage

chambers and

and advances to

Construction in

Supplies and

buildings

Substations

lines

platforms

suppliers

process

spare parts

Total

At 12.31.18

Cost

2,737,673

26,007,768

71,890,671

29,747,803

5,017,894

25,328,919

368,895

161,099,623

Accumulated depreciation

(460,491)

(7,506,474)

(22,991,206)

(9,748,599)

(2,389,572)

-

-

(43,096,342)

Net amount

2,277,182

18,501,294

48,899,465

19,999,204

2,628,322

25,328,919

368,895

118,003,281

Additions

30,839

5,741

68,558

227,345

1,466,002

7,942,633

129,721

9,870,839

Disposals

-

-

(6,243)

(58,203)

-

-

-

(64,446)

Transfers

173,479

878,371

3,496,690

1,935,752

(1,575,009)

(4,683,331)

(225,952)

-

Depreciation for the period

(88,104)

(697,219)

(2,004,481)

(959,327)

(554,571)

-

-

(4,303,702)

Net amount 06.30.19

2,393,396

18,688,187

50,453,989

21,144,771

1,964,744

28,588,221

272,664

123,505,972

At 06.30.19

Cost

2,941,991

26,891,880

75,287,964

31,826,898

4,908,891

28,588,221

272,664

170,718,509

Accumulated depreciation

(548,595)

(8,203,693)

(24,833,975)

(10,682,127)

(2,944,147)

-

-

(47,212,537)

Net amount

2,393,396

18,688,187

50,453,989

21,144,771

1,964,744

28,588,221

272,664

123,505,972

  • During the period ended September 30, 2019, the Company capitalized as direct own costs $ 1,139,905.

2 6

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 14 | Right-of-use asset

The leases recognized as right-of-use assets in accordance with IFRS 16 are disclosed

below:

09.30.20

12.31.19

Total right-of-use asset by leases

310,066

320,533

The development of right-of-use assets is as follows:

09.30.20

12.31.19

Balance at beginning of period / year

320,533

-

Incorporation by adoption of IFRS 16

-

518,370

Additions

182,919

3,761

Depreciation for the period / year

(193,386)

(201,598)

Balance at end of the period / year

310,066

320,533

Note 15 | Other receivables

Note

09.30.20

12.31.19

Non-current:

Financial credit

15,931

27,192

Related parties

29.d

3,321

4,785

Subtotal

19,252

31,977

RDSA credit

2,125,890

2,611,424

Allowance for the impairment of other receivables

(2,125,890)

(2,611,424)

Total non-current

19,252

31,977

Current:

Credit for Real estate asset

31

64,753

73,568

Judicial deposits

76,085

84,287

Security deposits

35,206

30,632

Prepaid expenses

55,039

18,677

Advances to personnel

1,665

-

Financial credit

17,688

54,985

Advances to suppliers

21,281

304

Guarantee deposits on derivative financial

436,021

-

Tax credits

21,436

18,644

Related parties

29.d

25,766

31,651

Other

877

83

Subtotal

755,817

312,831

Debtors for complementary activities

109,300

123,292

Allowance for the impairment of other receivables

(80,613)

(80,272)

Total current

784,504

355,851

The value of the Company's other financial receivables approximates their fair value.

The other non-current receivables are measured at amortized cost, which does not differ significantly from their fair value.

2 7

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

The roll forward of the allowance for the impairment of other receivables is as follows:

09.30.20

09.30.19

Balance at beginning of year

2,691,696

146,001

Increase

92,608

31,648

Result from exposure to inlfation

(497,678)

(40,993)

Recovery

(80,123)

(24,686)

Balance at end of the period

2,206,503

111,970

Note 16 | Trade receivables

09.30.20

09.30.19

Current:

Sales of electricity - Billed

12,363,252

9,475,856

Framework Agreement (1)

9,003

11,059

Receivables in litigation

232,924

263,962

Allowance for the impairment of trade receivables

(3,892,556)

(1,899,449)

Subtotal

8,712,623

7,851,428

Sales of electricity - Unbilled

6,969,524

7,114,876

PBA & CABA government credit

947,497

308,769

Fee payable for the expansion of the transportation and

2,074

30,766

others

Total current

16,631,718

15,305,839

  1. Additionally, as disclosed in Note 2.e) to the Financial Statements as of December 31, 2019, the Province of Buenos Aires and the Federal Government have a debt with the Company, for the consumption of electricity by low-income neighborhoods and shantytowns, which as of September 30, 2020 amounts to a total of $ 2,352,226, related to the October 2017-September 2020 period. The indicated amount does not include interest and no revenue for this concept has been recognized by the Company.

The value of the Company's trade receivables approximates their fair value.

The roll forward of the allowance for the impairment of trade receivables is as follows:

09.30.20

09.30.19

Balance at beginning of the year

1,899,449

1,702,302

Increase

3,007,075

1,152,868

Decrease

(487,567)

(599,835)

Result from exposure to inlfation

(526,401)

(489,886)

Balance at end of the period

3,892,556

1,765,449

Note 17 | Financial assets at fair value through profit or loss

09.30.20

12.31.19

Current

Money market funds

-

3,427,004

2 8

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 18 | Inventories

09.30.20

12.31.19

Current

Supplies and spare-parts

1,773,961

2,277,850

Advance to suppliers

33,313

89,092

Total inventories

1,807,274

2,366,942

Note 19 | Cash and cash equivalents

09.30.20

12.31.19

09.30.19

Cash and banks

1,213,443

196,472

193,424

Money market funds

7,788,668

306,729

102,012

Total cash and cash equivalents

9,002,111

503,201

295,436

Note 20 | Share capital and additional paid-in capital

Additional paid-

Share capital

in capital

Total

Balance at September 30, 2020 and

34,373,362

454,494

34,827,856

December 31, 2019

As of September 30, 2020, the Company's share capital amounts to 906,455,100 shares, divided into 462,292,111 common, book-entry Class A shares with a par value of one peso each and the right to one vote per share; 442,210,385 common, book-entry Class B shares with a par value of one peso each and the right to one vote per share; and 1,952,604 common, book-entry Class C shares with a par value of one peso each and the right to one vote per share.

Note 21 | Allocation of profits

The restrictions on the distribution of dividends by the Company are those provided for by the Business Organizations Law and the negative covenants established by the Corporate Notes program. As of September 30, 2020, the Company complies with the indebtedness ratio established in such program.

If the Company's Debt Ratio were higher than 3, the negative covenants included in the Corporate Notes program, which establish, among other issues, the Company's impossibility to make certain payments, such as dividends, would apply.

Additionally, in accordance with Title IV, Chapter III, section 3.11.c of the CNV, the amounts subject to distribution will be restricted to the amount equivalent to the acquisition cost of the Company's own shares.

2 9

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 22 | Trade payables

Note

09.30.20

12.31.19

Non-current

Customer guarantees

257.369

261.767

Customer contributions

222.731

192.188

Total non-current

480.100

453.955

Current

Payables for purchase of electricity - CAMMESA

2.b

21.383.323

5.364.546

Provision for unbilled electricity purchases - CAMMESA

2.b

6.303.982

6.066.197

Suppliers

3.979.535

3.736.863

Advance to customer

396.983

350.143

Customer contributions

31.444

37.906

Discounts to customers

37.372

45.907

Total current

32.132.639

15.601.562

The fair values of non-current customer contributions as of September 30, 2020 and December 31, 2019 amount to $ 44,560 and $ 55,379, respectively. The fair values are determined based on estimated discounted cash flows in accordance with a representative market rate for this type of transactions. The applicable fair value category is Level 3 category.

The value of the rest of the financial liabilities included in the Company's trade payables approximates their fair value.

Note 23 | Other payables

Note

09.30.20

12.31.19

Non-current

ENRE penalties and discounts

5,614,290

4,830,368

Financial Lease Liability

(1)

88,938

107,312

Total Non-current

5,703,228

4,937,680

Current

ENRE penalties and discounts

2,743,958

4,160,169

Related parties

29.d

11,290

15,436

Advances for works to be performed

12,986

7,537

Payment agreements with ENRE

9,603

59,252

Financial Lease Liability

(1)

300,045

164,822

Other

2,612

10,836

Total Current

3,080,494

4,418,052

The value of the Company's other financial payables approximates their fair value.

3 0

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

(1) The development of the financial lease liability is as follows:

09.30.20

12.31.19

Balance at beginning of period / year

272.134

-

Incorporation by adoption of IFRS 16

-

518.370

Increase

182.919

3.761

Payments

(254.417)

(260.914)

Exchange difference and gain on net monetary position

188.347

10.917

Balance at end of the period / year

388.983

272.134

Note 24 | Borrowings

09.30.20

12.31.19

Non-current

Corporate notes (1)

7,476,877

10,069,650

Current

Interest from corporate notes

312,045

176,228

Borrowing

978,753

1,861,963

Total current

1,290,798

2,038,191

(1) Net of debt issuance, repurchase and redemption expenses.

On September 28, 2020, the Company paid in the market the Corporate Notes it had in its portfolio, for a total of USD 78,108 nominal value, equivalent to $ 5,952,267. At the date of these condensed interim financial statements, the Corporate Notes that remain outstanding amount to USD 98,210 nominal value.

The fair values of the Company's non-current borrowings as of September 30, 2020 and December 31, 2019 amount approximately to $ 5,741,517 and $ 9,762,393, respectively. Such values were determined on the basis of the estimated market price of the Company's Corporate Notes at the end of the period/year. The applicable fair value category is Level 1 category.

Note 25 | Salaries and social security taxes payable

09.30.20

12.31.19

Non-current

Early retirements payable

29,201

48,515

Seniority-based bonus

311,264

246,999

Total non-current

340,465

295,514

Current

Salaries payable and provisions

1,974,099

2,584,988

Social security payable

305,350

337,295

Early retirements payable

26,168

34,518

Total current

2,305,617

2,956,801

The value of the Company's salaries and social security taxes payable approximates their fair

value.

3 1

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 26 | Income tax and deferred tax

09.30.20

12.31.19

Current

Provision of income tax payable

672,580

3,567,482

Tax withholdings

(174,568)

(1,148,275)

Total current

498,012

2,419,207

The detail of deferred tax assets and liabilities is as follows:

09.30.20

12.31.19

Deferred tax assets

Trade receivables and other receivables

1.153.834

680.522

Trade payables and other payables

696.771

738.891

Salaries and social security payable

244.662

139.469

Benefit plans

108.182

132.890

Tax liabilities

18.513

21.645

Provisions

728.281

826.217

Deferred tax asset

2.950.243

2.539.634

Deferred tax liabilities

Property, plants and equipments

(24.649.862)

(24.129.678)

Financial assets at fair value through profit or

loss

(320.093)

(255.716)

Borrowings

(2.605)

(4.247)

Adjustment effect on tax inflation

(3.111.148)

(2.785.334)

Deferred tax liability

(28.083.708)

(27.174.975)

Net deferred tax liability

(25.133.465)

(24.635.341)

The detail of the income tax expense is as follows:

09.30.20

09.30.19

Deferred tax

(498,124)

(7,472,510)

Current tax

(672,580)

(4,769,078)

Difference between provision and tax return

(60,174)

(121,329)

Income tax expense

(1,230,878)

(12,362,917)

09.30.20

09.30.19

Profit for the period before taxes

(607,897)

29,421,550

Applicable tax rate

30%

30%

Result for the period at the tax rate

182,369

(8,826,465)

Gain on net monetary position

(846,596)

(1,847,455)

Income tax expense

1,062,053

1,124,264

Adjustment effect on tax inflation

(1,568,530)

(2,100%,471)

Difference between provision and tax return

(60,174)

(16,790)

Income tax expense

(1,230,878)

(12,362,917)

3 2

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 27 | Tax liabilities

09.30.20

12.31.19

Current

Provincial, municipal and federal contributions and taxes

378,884

219,912

VAT payable

635,156

1,599,417

Tax withholdings

145,496

180,650

SUSS withholdings

8,542

10,356

Municipal taxes

186,694

169,237

Total current

1,354,772

2,179,572

Note 28 | Provisions

Non-current

Current

liabilities

liabilities

Contingencies

At 12.31.19

2,533,683

262,674

Increases

339,639

45,757

Decreases

(147,209)

91,150

Recovery

(125,633)

-

Result from exposure to inflation for the period

(477,235)

(49,848)

At 09.30.20

2,123,245

349,733

At 12.31.18

2,021,312

354,030

Increases

1,272,118

183,395

Decreases

(37,763)

(49,204)

Result from exposure to inflation for the period

(688,928)

(116,426)

At 09.30.19

2,566,739

371,795

Note 29 | Related-party transactions

The following transactions were carried out with related parties:

  1. Income

Company

Concept

PESA

Impact study

SACDE

Reimbursement expenses

09.30.2009.30.19

39,841

27,077

2,540

463

42,381

27,540

  1. Expense

Company

PESA

SACME

OSV

FIDUS

ABELOVICH, POLANO & ASOC.

Concept

Technical advisory services on financial matters

Operation and oversight of the electric power transmission system

Hiring life insurance for staff

Legal fees

Legal fees

09.30.2009.30.19

(133.073)(123.064)

(74.300)(75.176)

(16.004)(19.855)

(3.505)-

  1. (1.469)

(227.593) (219.564)

3 3

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

On October 30, 2020, the Company's Board of Directors resolved to extend the term of the Technical Advisory Agreement with PESA for a term of five years to commence from September 19, 2020. Except for the term of the agreement, the other conditions remain unchanged with respect to the duly approved addenda in 2010 and 2015, described in Note 36 to the Financial Statements as of December 31, 2019.

  1. Key Management personnel's remuneration

09.30.2009.30.19

Salaries

208,607

239,590

The balances with related parties are as follow:

  1. Receivables and payables

09.30.20

12.31.19

Other receivables - Non current

SACME

3,321

4,785

Other receivables - Current

FIDUS SGR

25,000

30,710

SACME

766

941

25,766

31,651

Other payables

SACME

(11,290)

(15,436)

Note 30 | Ordinary and Extraordinary Shareholders' Meeting

The Company Ordinary and Extraordinary Shareholders' Meeting held on April 28, 2020 resolved, among other issues, the following:

  • To approve edenor's Annual Report and Financial Statements as of December 31, 2019;
  • To allocate the $ 13,088,100 profit for the year ended December 31, 2019 (at the purchasing power of the currency at September 30, 2020 amounts to $ 14,905,468) to the:
    • Statutory reserve: $ 654,400 (at the purchasing power of the currency at September 30, 2020 amounts to $ 745,273);
    • Discretionary reserve: $ 12,433,700 (at the purchasing power of the currency at September 30, 2020 amounts to $ 14,160,195) under the terms of section 70, 3rd paragraph, of Business Organizations Law No. 19,550.
  • To approve the actions taken by the Directors and Supervisory Committee members, together with their respective remunerations;
  • To appoint the authorities and the external auditors for the current fiscal year;
  • To approve the amendment of Sections Nos. 13, 19, 23, 25 and 33 of the By-laws, subject to the approval of the ENRE and any other relevant administrative authority;
  • To approve the consolidated text of the By-laws with the proposed amendments.

3 4

C O N D E N S E D I N T E R I M

F I N A N C I A L S T A T E M E N T S

N O T E S

Note 31 | Termination of agreement on real estate asset

With regard to the real estate asset to be constructed, acquired by the Company in November 2015, the subsequent termination of the agreement due to RDSA's default in August 2018 and the respective legal actions brought by the Company against the seller and the insurance company, and with respect to the settlement agreement dated September 30, 2019 that the Company entered into with Aseguradores de Cauciones S.A., the following events stand out as of the date of issuance of these condensed interim financial statements, in addition to those mentioned in our annual Financial Statements:

  • With regard to the USD 1 million receivable resulting from the agreement with Aseguradora de Cauciones S.A., the Company has received payment of the first installment for USD 100,000, which fell due on April 21, 2020. Furthermore, in the second quarter of 2020, the Company entered into an agreement on the extension of maturity dates, pursuant to which the following payments were renegotiated: a) the second installment for USD 50,000, whose maturity date was July 20, 2020 -which was received by the Company-; b) the third installment for USD 70,000 maturing on October 19, 2020, which was collected by the Company at the date of these condensed interim financial statements; and c) the remaining balance of the second and third installments for USD 180,000 determined according to the original maturity of payments, plus the related interest, which will fall due on November 15, 2020. The rest of the quarterly payment schedule remains unchanged.
  • With regard to RDSA reorganization proceedings, the Company has filed ancillary proceedings for review of the amount declared inadmissible, which, at the date of issuance of these condensed interim financial statements, are at the final stage for producing evidence. Due to the pandemic declared by the WHO on March 11, 2020 and the mandatory and preventive social isolation ordered by DNU 297/2020, and the subsequent extensions thereof, the originally set procedural time limits have been extended, with the exclusivity period in order for the reorganization debtor to propose one or more reorganization plans and obtain the consent required by law for the confirmation of the eventual agreement being currently underway.

RICARDO TORRES

Chairman

3 5

Disclaimer

EDENOR - Empresa Distribuidora y Comercializadora Norte SA published this content on 12 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 November 2020 13:34:01 UTC

© Publicnow 2021
Copier lien
All news about EMPRESA DISTRIBUIDORA Y COMERCIALIZADORA NORTE SOCIEDAD ANÓNIMA
12/29
12/28
11/12
08/14
08/14