Compañía de Transporte de Energía Electrica en Alta Tensión Transener S A : Consolidated financial statements 30-06-2023

Compañía de Transporte de Energía

Eléctrica en Alta Tensión Transener S.A.

Consolidated Financial Statements as of December 31, 2022 and for the fiscal years ended December 31, 2022 and 2021

Free translation from the original prepared in Spanish for publication in Argentina

Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A.

Index to Consolidated Statements

	Page
Independent auditor's report	2
Consolidated Statement of Comprehensive Income for the fiscal years ended December 31, 2022 and
2021	7
Consolidated Balance Sheets as of December 31, 2022 and 2021	8
Consolidated Statements of Changes in Equity for the fiscal years ended December 31, 2022 and 2021.	9
Consolidated Statements of Cash Flows for the fiscal years ended December 31, 2022 and 2021	10
Notes to the Consolidated Financial Statements	12

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translation from the original prepared in Spanish for publication in Argentina

Report of Independent auditor's report

To the shareholders, President, and Directors of Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. Legal address: Maipú 1 - 11th

Floor City of Buenos Aires

Tax Code No. 30-66314877-6

Report on the audit of the consolidated financial statements

Opinion

We have audited the consolidated financial statements of Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. and its subsidiary ("the Company"), including the consolidated statement of financial position at December 31, 2022 and the consolidated statements of comprehensive income, of changes in shareholders' equity, and of cash flows for the year then ended, as well as the notes to the consolidated financial statements, which include a summary of the most significant accounting policies and other explanatory information.

In our opinion, the attached consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2022, as well as the consolidated comprehensive income and consolidated cash flows for the fiscal year then ended, in accordance with the International Financing Reporting Standards (IFRS).

Basis for our opinion

We performed our audit in accordance with International Standards on Auditing (ISAs). These standards were adopted as audit standards in Argentina through Technical Pronouncement No. 32 of the Argentine Federation of Professional Councils in Economic Sciences (FACPCE), as approved by the International Auditing and Assurance Standards Board (IAASB). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence

We are independent of the Company in accordance with the International Code of Ethics for Professional Accountants (including the International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA Code of Ethics) together with the requirements that are applicable to our audit of the consolidated financial statements in Argentina, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code of Ethics.

Price Waterhouse & Co. S.R.L., Bouchard 557, 8th floor, C1106ABG - City of Buenos

Aires P: +(54.11) 4850.0000, www.pwc.com/ar

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translation from the original prepared in Spanish for publication in Argentina

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters

Recoverability of long-livednon-financial assets

At December 31, 2022, the Company's Property, plant and equipment amounted to $88,577,881. As mentioned in Note 3.8 to the consolidated financial statements, the Company tests for the recoverability of its long-livednon-financial assets periodically, or when certain events or changes occur involving potential impairment of assets, compared to their recoverable value, which is measured as the value in use at year

end. The value in use is calculated based on the projected discounted cash flow

1. Cash flow is prepared based on estimates of the future performance of certain variables that are sensitive to the determination of the recoverable value, such as: (i) the nature, timing, and modality of rate increases; (ii) demand projections; (iii) variations in the costs to be incurred; and (iv) macroeconomic variables, such as growth rates, inflation rates, and exchange rate, (v) discount rate used for cash flows. Additionally, to compare the expected cash flows with the carrying amount of long-lived non- financial assets, the Company has used an evaluation of scenarios based on the probabilities of occurrence to determine the expected value in use.

This is a key audit matter as it involves the exercise of critical judgment and material assumptions made by the Company's Management which are subject to uncertainty and future events. Moreover, it led to a high degree of judgment and effort by the auditor when performing the procedures to assess the cash flow projections made by the Company's Management and to test the significant assumptions.

How our audit addressed the key audit matter

The audit procedures performed relating to this key audit matter included, among others:

 assessing the estimation methodology;

 testing significant assumptions such as (i) the nature, timing, and modality of rate increases; (ii) demand projections; (iii) variations in the costs to be incurred; (iv) macroeconomic variables, such as growth rates, inflation rates, and exchange rate, (v) discount rate used for cash flows, and testing the integrity, precision, and relevance of the underlying data used. The significant assumptions were compared with available data on economic trends;

 assessing the history of estimates made by Management and the defined evaluation of scenarios; and carrying out sensitivity analyses on the significant assumptions to assess the value in use variations that would be produced due to changes in assumptions;

 testing the arithmetic correction of the model of discounted cash flows; and

 assessing the integrity of the disclosures included in the consolidated financial statements.

Skilled professionals specialized in the subject matter performed the assessment of the methodology and significant assumptions used in the projected cash flows estimated by the Company's Management.

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from the original prepared in Spanish for publication in Argentina

Accompanying information to the consolidated financial statements ("Other information")

The other information comprises the Annual Report and Summary of Activity. The Company's Board of Directors is responsible for the other information.

Our opinion on the consolidated financial statements will not cover the Other information and, therefore, we do not express any audit conclusion.

In relation to our audit of the consolidated financial statements, our responsibility is to read the other information and, when doing so, consider whether such information is materially inconsistent with the consolidated financial statements or with our knowledge obtained in the audit or if for any other reason it appears to contain a material misstatement. Based on the work performed, and as regards those matters that are within our field of competence, if we consider that there is a material misstatement in the Other information, we have to report it. We have nothing to report in this regard.

Board of Directors and Audit Committee responsibilities relating to the consolidated financial statements

The Board of Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. is responsible for the preparation and fair presentation of the Consolidated Financial Statements in accordance with the IFRS, and for such internal control as the Board determines is necessary to enable the preparation of consolidated financial statements that are free of material misstatement, whether due to fraud or error.

In preparing these Consolidated Financial Statements, the Board is responsible for assessing the Company's

ability to continue as a going concern, for disclosing, as applicable, matters relating to going concern and for using the going concern basis of accounting unless the Board either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Company's financial reporting process.

Auditors' responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance that the consolidated financial statements as a whole are free from material misstatements, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the consolidated financial statements.

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