Empresa Distribuidora y Comercializadora Norte Sociedad Anónima : Fourth quarter 2020 - Earnings Release

Efficiency and

Proximity

EARNINGS RELEASE

FOURTH QUARTER 2020

Results for the fourth quarter 2020

Ticker: EDN

Ratio: 20 Class B shares = 1 ADR

Share Cap. Net of repurchases: 875 million shares | 43.8 million ADRs

Market Cap. net of repurchases1:

ARS 22.7 bn | USD 151 million

Investor Relations Contacts:

Leandro Montero

Chief Financial Officer

Federico Mendez

Planning and Investor Relations Manager

ir.edenor.com |[e-mail]

Tel: [phone]

Buenos Aires, Argentina, March 10, 2021. Empresa Distribuidora y Comercializadora Norte S.A. (NYSE/BYMA:

EDN) ("edenor" or "the Company"), Argentina's largest electricity distributor both in terms of number of customers and energy sales, announces its results for the fourth quarter of 2020. All figures are stated in Argentine Pesos at constant currency, and the information has been prepared in accordance with International Financing Reporting Standards

("IFRS"), except for what is expressly indicated in the Statements of Comprehensive Income (Loss), which are expressed at historical values.

Conference Call Information

There will be a conference call to discuss 4Q20 results on Thursday, March 11, 2021, at 12:00 p.m. Buenos Aires time / 10:00 a.m. New York time.

The presentation will be given by Leandro Montero, edenor's Chief Financial Officer. For those interested in participating, please dial:

+ 1 [phone] in the United States; [phone] if outside the United States; [phone] in Argentina.

Or via the internet by clickingHERE.

Participants should use conference ID "Edenor" and dial in five minutes before the call is set to begin. There will also be a live audio webcast of the conference atir.edenor.com.

4Q 2020

EARNINGS CONFERENCE CALL

To join the conference call, pleaseclick HERE

1 Listing as of 3/9/2021, ARS 25.90 per share and USD 3.45 per ADR

SUMMARY OF RESULTS FOR THE FOURTH QUARTER 2020

In million of Pesos in constant purchising power	12 Months	4Q
2020	2019	Δ%	2020	2019	Δ%
Revenue from sales 91,316	122,437	(25%) 18,265	24,600	(26%)
Adjusted EBITDA	4,306	14,002	(69%) (1,414)	680	na
Net income (17,698)	16,518	na (15,660)	(2,386)	556%
Capital expenditures	11,073	13,501	(18%) 3,243	2,562	27%

Revenue from sales decreased by 26%, reaching ARS 18,265 million in 4Q20, mainly due to the tariff freeze in both the Distribution Value Added and the seasonal price passed on to tariffs, which entailed a decrease in revenues in real terms. This decrease results from the non-application of the inflation adjustment on Own Distribution Costs (CPD) since March 2019, as well as the maintenance of the price of energy (the last 5% increase was in May 2019). On its part, the sales volume remained practically constant, with changes in the distribution on account of the increase in residential consumption and the decrease in consumption by commercial and industrial customers as a result of the changes generated by the pandemic.

Adjusted EBITDA decreased by ARS 2,094 million, recording losses for ARS 1,414 million in 4Q20, against profits for

ARS 680 million in the same period of the previous year. This decrease is mainly accounted for by the decline in the gross margin due to lower sales in real terms as a result of the tariff freeze, which was partially offset by a slight improvement in energy losses, and operating costs that remained practically constant.

Net results accumulated losses for ARS 15.660 million in 4Q20, experiencing a ARS 13,274 million decrease compared to the same period of 2019. The variation is mainly due to the impairment of the Company's assets for ARS 17,396 million. Indications of loss of value have been identified in the assets of the Company as of December 31, 2020, various possible scenarios and weighing factors such as the current macroeconomic context and the projection of the Company's business in the medium and long term have been taken into account. Additionally, a lower operating result is observed, for ARS 2,168 million in 4Q20. These effects were partially offset by a lower income tax for ARS 5,757 million generated mainly by the impact of the assets impairment in deferred taxes for ARS 5,219 million.

Investments in 4Q20 reached ARS 3,243 million, representing a 27% increase compared to the same period of the previous year, which reflects the Company's efforts although its gross margin has been reduced because of the tariff freeze and the restrictions generated by the pandemic throughout the year. These higher investments compared to the same period of 2019 are due to the recovery in Q4 of the deferments in investments of the previous months as a consequence of the delays caused by the preventive and mandatory social isolation ("ASPO"). The lack of predictability in the near future as a consequence of the tariff freeze and the accumulated drop in demand registered over the last years may affect the pace of investments in the ambitious plan set by edenor, always making sure this slowdown does not affect compliance with service quality indicators, which have exceeded regulatory requirements.

RELEVANT EVENTS

Sale of Edenor's Controlling Stake

On December 28, 2020, Pampa Energía S.A., holder of 100% of edenor's Class A shares representing 51% of its capital stock, acting as seller, entered into a share purchase agreement with Empresa de Energía del Cono Sur S.A, with Integra Capital S.A., and Messrs. Daniel Eduardo Vila, Mauricio Filiberti and José Luis Manzano, acting as guarantors.

The agreed purchase price consists of (i) 21,876,856 Class B shares of edenor, representing 2.41% of

Edenor's capital stock and voting rights; (ii) USD 95 million; and (iii) a contingent payment for 50% of the generated gain in case of change of control in the Buyer or Edenor during the first year after the closing of the Transaction or as long as the Price Balance is pending settlement. The Price in Cash is paid in 3 installments: the first one, in the amount of USD 5 million, was paid after the signing of the agreement; the second one, in the amount of USD 50 million, will be paid on the Closing date, subject to the fulfillment of the precedent conditions; and the third one, in the amount of USD 40 million, must be paid on the first anniversary of the Closing date. The Price Balance will accrue a nominal annual fixed interest rate of 10% as from the Closing date, payable on a quarterly basis.

In this respect, on February 17, 2021, Pampa Energía's shareholders meeting approved this transaction and, as of the issuance of this report, the approval procedure by the Regulatory Agency is in progress.

CBs Buyback Offer on account of the Change of Control

In relation to the previous section, as Edenor has outstanding market debt, its issuance prospectus contemplates this situation in section 10.3:

"Each CB holder will be entitled to require the Company to repurchase all or any part of that holder's CBs through the presentation of a Change of Control Offer. This offer will be made for 100% of the FV, plus accrued and unpaid interest as of that date. Besides, the offer will be made within 30 days of the change of control (in the case of Edenor, from the sale's approval by Pampa and the ENRE), indicating the specific repurchase date, which will take place between 30 and 60 days after the sending of the notice of the change of control offer."

In this regard, the Company has contacted different banks specialized in debt restructuring to evaluate the possible courses of action, among which are considered (i) to require a waiver consent to the change of control clause, and (ii) to offer a restructuring of the debt that allows, at the same time, to extend the maturity terms, beyond any other alternatives that the buyer of the majority share package of the Company is evaluating in the event that the transaction is perfected.