Empresa Distribuidora y Comercializadora Norte Sociedad Anónima : Q1 2021 - Financial Statement

CONDENSED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2021 AND FOR THE THREE-MONTH

PERIOD ENDED MARCH 31, 2021

PRESENTED IN COMPARATIVE FORM

(Stated in millions 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	12
4	|	Accounting policies	13
5	|	Financial risk management	13
6	|	Critical accounting estimates and judgments	15
7	|	Contingencies and lawsuits	16
8	|	Revenue from sales and energy purchases	16
9	|	Expenses by nature	18
10	|	Other operating income (expense), net	19
11	|	Net finance costs	19
12	|	Basic and diluted (loss) earnings per share	20
13	|	Property, plant and equipment	21
14	|	Right-of-use asset	23
15	|	Inventories	23
16	|	Other receivables	23
17	|	Trade receivables	24
18	|	Financial assets at amortized cost	24
19	|	Financial assets at fair value through profit or loss	25
20	|	Cash and cash equivalents	25
21	|	Share capital and additional paid-in capital	25
22	|	Allocation of profits	25
23	|	Trade payables	26
24	|	Other payables	26
25	|	Borrowings	27
26	|	Salaries and social security taxes payable	27
27	|	Income tax and deferred tax	28
28	|	Tax liabilities	29
29	|	Provisions	29
30	|	Related-party transactions	29
31	|	Ordinary and Extraordinary Shareholders' Meeting	30
32	|	Termination of agreement on real estate asset	31
33	|	Change of control	31

Report on review of Condensed Interim Financial Statements

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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

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

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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 31

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 MARCH 31, 2021 (amounts stated in pesos)

			Subscribed and
Class of shares			paid-in
			(See Note 21)
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 March 31, 2021 and December 31, 2020.
2. Relates to the Employee Stock Ownership Program Class C shares that have not been transferred.

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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 three-month period ended March 31, 2021 presented in comparative form

(Stated in millions of constant pesos - Note 3)

	Note	03.31.21	03.31.20
Revenue	8	21,023	29,365
Energy purchases	8	(12,747)	(18,320)
Subtotal		8,276	11,045
Transmission and distribution expenses	9	(5,204)	(5,187)
Gross margin		3,072	5,858
Selling expenses	9	(2,438)	(2,432)
Administrative expenses	9	(1,327)	(1,183)
Other operating income	10	550	858
Other operating expense	10	(749)	(461)
Operating profit		(892)	2,640
Financial income	11	14	11
Finance costs	11	(4,428)	(1,738)
Other finance costs	11	75	(1,071)
Net finance costs		(4,339)	(2,798)
Monetary gain (RECPAM)		5,416	2,399
Profit before taxes		185	2,241
Income tax	27	(841)	(1,211)
(Loss) Profit for the period		(656)	1,030
Comprehensive (loss) profit for the period attributable to:
Owners of the parent		(656)	1,030
Comprehensive (loss) profit for the period		(656)	1,030
Basic and diluted (loss) profit per share:
(Loss) Profit per share (argentine pesos per share)	12	(0.75)	1.18

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

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