Empresa Distribuidora y Comercializadora Norte Sociedad Anónima : Financial statements 31.03.2024

CONDENSED INTERIM FINANCIAL STATEMENTS

AS OF MARCH 31, 2024 AND FOR THE

THREE-MONTH PERIOD ENDED MARCH 31, 2024

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

Report on review of Condensed Interim Financial Statements

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
AMBA	Buenos Aires Metropolitan Area
BCRA	Central Bank of Argentina
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	Distribution Own Cost
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
GWh	Gigawatt hour
IAS	International Accounting Standards
IASB	International Accounting Standards Board
IFRIC	International Financial Reporting Interpretations Committee
IFRS	International Financial Reporting Standards
IGJ	Inspección General de Justicia (the Argentine governmental regulatory agency of corporations)
MEM	Wholesale Electricity Market
MWh	Megawatt hour
PBA	Province of Buenos Aires
PEN	Federal Executive Power
RECPAM	Gain (Loss) on exposure to the changes in the purchasing power of the currency
RT	Electricity Rate Review
SACME	S.A. Centro de Movimiento de Energía
SE	Energy Secretariat
VAD	Distribution Added Value

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 Bylaws: April 10, 2023

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: Empresa de Energía del Cono Sur S.A.

Legal address: 1252 Maipú Ave., 12th Floor - CABA

Main business of the parent company: Investment company and provider of services related to the distribution of electricity, renewable energies and development of sustainable technology

Interest held by the parent company in capital stock and votes: 51%

CAPITAL STRUCTURE AS OF MARCH 31, 2024 (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)	442,566,330
Class C (2)		1,596,659
		906,455,100

1. Includes 30,852,251 treasury shares as of March 31, 2024 (Note 20).
2. Relates to the Employee Stock Ownership Program Class C shares (Note 20).

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 Income (Loss)

for the three-month period ended March 31, 2024 presented in comparative form

(Stated in millions of constant pesos - Note 3)

	Note	03.31.24	03.31.23
Revenue	8	276,157	270,771
Energy purchases	8	(160,419)	(195,559)
Distribution margin		115,738	75,212
Transmission and distribution expenses	9	(73,673)	(69,671)
Gross profit		42,065	5,541
Selling expenses	9	(41,175)	(29,861)
Administrative expenses	9	(24,066)	(22,716)
Other operating income	10	5,433	8,262
Other operating expense	10	(4,461)	(5,963)
Operating result		(22,204)	(44,737)
Financial income	11	115	5
Financial costs	11	(113,589)	(146,720)
Other financial results	11	(100,576)	11,638
Net financial costs		(214,050)	(135,077)
Monetary gain (RECPAM)		221,494	157,031
Loss before taxes		(14,760)	(22,783)
Income tax	26	65,627	(15,856)
Income (Loss) for the period		50,867	(38,639)
Comprehensive income (loss) for the period attributable
to:
Owners of the parent		50,867	(38,639)
Comprehensive income (loss) for the period		50,867	(38,639)
Basic and diluted income (loss) per share:
Income (Loss) per share (argentine pesos per share)	12	58.13	(44.16)

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

3

C O N D E N S E D F I N A N C I A L S T A

I N T E R I M T E M E N T S

edenor

Condensed Interim Statement of Financial Position as of March 31, 2024 presented in comparative form (Stated in millions of constant pesos - Note 3)

ASSETS

Non-current assets

Property, plant and equipment

Interest in joint ventures

Right-of-use asset

Other receivables

Total non-current assets

Current assets Inventories Other receivables Trade receivables Financial assets at fair value through profit or loss Cash and cash equivalents Total current assets TOTAL ASSETS

Note	03.31.24	12.31.23
13	1,953,999	1,930,124
	86	86
14	6,249	5,367
16	3	4
	1,960,337	1,935,581
15	76,248	60,369
16	53,231	51,621
17	205,224	100,975
18	144,310	125,281
19	25,207	13,840
	504,220	352,086
	2,464,557	2,287,667

4

C O N D E N S E D F I N A N C I A L S T A

I N T E R I M T E M E N T S

edenor

Condensed Interim Statement of Financial Position

as of March 31, 2024 presented in comparative form (continued)

(Stated in millions of constant pesos - Note 3)

	Note
EQUITY
Share capital and reserve attributable to the
owners of the Company
Share capital	20
Adjustment to share capital	20
Treasury stock	20
Adjustment to treasury stock	20
Additional paid-in capital	20
Cost treasury stock
Legal reserve
Voluntary reserve
Other comprehensive loss
Accumulated losses
TOTAL EQUITY
LIABILITIES
Non-current liabilities
Trade payables	22
Other payables	23
Borrowings	24
Deferred revenue
Salaries and social security payable	25
Benefit plans
Deferred tax liability	26
Provisions	28
Total non-current liabilities
Current liabilities
Trade payables	22
Other payables	23
Borrowings	24
Deferred revenue
Salaries and social security payable	25
Benefit plans
Tax liabilities	27
Provisions	28
Total current liabilities
TOTAL LIABILITIES

03.31.2412.31.23

875	875
516,633	516,633
31	31
11,077	11,077
7,150	7,150
(42,365)	(42,365)
35,814	35,814
346,826	346,826
(5,256)	(5,256)
(154,584)	(205,451)
716,201	665,334
1,843	2,422
277,657	240,963
127,285	67,236
20,621	20,430
3,887	3,713
8,466	7,463
660,176	725,803
10,943	14,951
1,110,878	1,082,981
458,837	365,329
87,524	44,486
52,903	76,816
50	76
26,736	40,386
578	876
7,816	7,033
3,034	4,350
637,478	539,352
1,748,356	1,622,333

TOTAL LIABILITIES AND EQUITY

2,464,557

2,287,667

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

5

C O N D E N F I N A N C I A L

S E D I N T E R I M S T A T E M E N T S

edenor

Condensed Interim Statement of Changes in Equity for the three-month period ended March 31, 2024 presented in comparative form

(Stated in millions of constant pesos - Note 3)

		Adjust-		Adjust-							Accumula-	Total
		ment to		ment to	Additional	Cost				Other	ted
						equity
	Share	share	Treasury	treasury	paid-in	treasury	Legal	Voluntary	Other	comprehen-	(losses)
	capital	capital	stock	stock	capital	stock	reserve	reserve	reserve	sive results	profits
Balance at December 31, 2022	875	516,581	31	11,129	7,086	(42,365)	35,814	346,826	-	(3,831)	(278,792)	593,354
Loss for the three-month period	-	-	-	-	-	-	-	-	-	-	(38,639)	(38,639)
Balance at March 31, 2023	875	516,581	31	11,129	7,086	(42,365)	35,814	346,826	-	(3,831)	(317,431)	554,715
Other Reserve Constitution - Share-based compensation plan	-	-	-	-	-	-	-	-	64	-	-	64
Payment of Other Reserve Constitution - Share-based	-	52	-	(52)	64	-	-	-	(64)	-	-	-
compensation plan
Other comprehensive results	-	-	-	-	-	-	-	-	-	(1,425)	-	(1,425)
Income for the nine-month complementary period	-	-	-	-	-	-	-	-	-	-	111,980	111,980
Balance at December 31, 2023	875	516,633	31	11,077	7,150	(42,365)	35,814	346,826	-	(5,256)	(205,451)	665,334
Income for the three-month period	-	-	-	-	-	-	-	-	-	-	50,867	50,867
Balance at March 31, 2024	875	516,633	31	11,077	7,150	(42,365)	35,814	346,826	-	(5,256)	(154,584)	716,201

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 three-month period ended March 31, 2024

presented in comparative form

(Stated in millions of constant pesos - Note 3)

Cash flows from operating activities

Income (Loss) for the period

Adjustments to reconcile net (loss) income to net cash flows from operating activities: Depreciation of property, plant and equipment Depreciation of right-of-useassets Loss on disposals of property, plant and equipment Net accrued interest Income from customer surcharges Exchange difference Income tax Allowance for the impairment of trade and other receivables Adjustment to present value of receivables Provision for contingencies Changes in fair value of financial assets and financial liabilities Accrual of benefit plans Loss on integration in kind of Corporate Notes Income from non-reimbursablecustomer contributions

Other financial costs Monetary gain (RECPAM)

Changes in operating assets and liabilities: Increase in trade receivables Increase in other receivables Increase in inventories Increase in deferred revenue Increase in trade payables Increase (Decrease) in salaries and social security payable Decrease in benefit plans Increase in tax liabilities Increase in other payables Decrease in provisions Net cash flows generated by operating activities

Note	03.31.24	03.31.23
	50,867	(38,639)
13	24,977	23,621
14	1,623	1,037
13	236	349
11	113,122	146,714
10	(4,224)	(3,885)
11	2,434	527
26	(65,627)	15,856
9	442	2,789
11	1,160	368
28	1,940	1,891
11	91,795	(17,820)
9	3,838	3,531
11	975	-
10	(60)	(46)
11	4,212	5,287
	(221,494)	(157,031)
	(130,770)	(53,472)
	(17,740)	(26,232)
	(11,197)	(5,248)
	154	4
	152,260	110,280
	1,538	(6,982)
	(294)	(1,311)
	3,166	2,587
	25,286	2,382
28	(610)	(368)
	28,009	6,189

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 three-month period ended March 31, 2024

presented in comparative form (continued) (Stated in millions of constant pesos - Note 3)

	Note	03.31.24	03.31.23
Cash flows from investing activities
Payment of property, plants and equipments		(42,704)	(34,590)
(Purchase) Sale net of Mutual funds and negotiable instruments		(47,770)	23,358
Net cash flows used in investing activities		(90,474)	(11,232)
Cash flows from financing activities
Proceeds from borrowings		79,592	25,813
Payment of lease liability		(2,410)	(1,714)
Payment of interests from borrowings		(1,406)	-
Payment of Corporate Notes issuance expenses		(2,336)	(884)
Net cash flows generated by financing activities		73,440	23,215
Increase in cash and cash equivalents		10,975	18,172
Cash and cash equivalents at the beginning of the year	19	13,840	7,695
Exchange difference in cash and cash equivalents		544	1,614
Result from exposure to inflation		(152)	(70)
Increase in cash and cash equivalents		10,975	18,172
Cash and cash equivalents at the end of the period	19	25,207	27,411

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

8