Compañía de Transporte de Energía Electrica en Alta Tensión Transener S A : Results of 4Q22

Buenos Aires, March 7th, 2023

Results for fiscal year ended on December 31st, 2022

Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. ("Transener" or the "Company") announces the results for fiscal year ended on December 31st, 2022

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Transener, Argentina's leading electricity transmission company, announces the results for fiscal year ended on December 31st, 2022.

Main results for fiscal year ended on December 31st, 2022, restated in constant currency at December, 20221

José S. Refort

Chief Financial Officer

Andrés G. Colombo

Accounting and Tax Manager

([e-mail])

Marcelo A. Fell

Financial Manager

([e-mail])

[e-mail]

Tel:	(5411) 5167-9101

www.transener.com.ar

www.transba.com.ar

Consolidated revenues of AR$ 31,545.5 million, 6.6% lower than the AR$ 33,766.2 million for last year, due to the tariff adjustments granted by ENRE in May 2022, retroactive to February 2022 (67% Transener and 69% Transba), were not sufficient to maintain the revenues level, measured in constant currency.

Consolidated EBITDA2 of AR$ 7,245.5 million, 32.5% lower than the AR$ 10,728.3 million for last year, mainly due to the decrease of 6.6% in revenues and the increase of 4.9% in operating costs.

Consolidated profit attributable to the owners of the company of AR$ 1,709.9 million, compared to a loss of AR$ 2,547.9 million for last year, mainly due to a lower income tax charge originated in the impact of the tax rate increase in 2021 on the deferred tax payable.

Main results for the Fourth Quarter of 2022

Consolidated revenues of AR$ 6,341.0 million, 14.5% lower than the AR$ 7,415.5 million for same period last year. The tariff adjustments granted by ENRE in May 2022, retroactive to February 2022 (67% Transener and 69% Transba), were not sufficient to maintain the revenues level, measured in constant currency.

Negative consolidated EBITDA2 of AR$ 908.9 million, compared to a positive consolidated EBITDA of AR$ 1,035.9 million for same period last year, mainly due to the decrease of 14.5% in revenues and the increase of 11.7% in operating costs.

Consolidated loss attributable to the owners of the company of AR$ 851.5 million, 85.3% higher than the AR$ 459.6 million for same period last year, mainly due to the decrease in revenues and the increase in operating costs.

1Expressed in constant currency, in accordance with IAS 29.

2Consolidated EBITDA represents consolidated operating results before depreciation.

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1. Financial Situation

As of December 31st, 2022, Transener maintains a principal balance of AR$ 527.8 million from a loan for working capital of AR$ 1,000 million, entered into with the Banco de la Nación Argentina in July 2021.

Regarding Transener's ratings, Fix Scr S.A. Credit Rating Agency maintained the long-term issuer rating of A+ (arg) with stable outlook.

2. Tariff Situation

On February 25th, 2022, under Resolutions No. 68/2022 and No. 69/2022, the ENRE approved the new tariff scheme from February 1st, 2022, establishing an increase of 25% for Transener and 23% for Transba, applicable to the values of August 2019. Considering the difference between the Financial and Economic Projections filed before the ENRE and the granted tariff amounts, the Company requested access to the file and a preliminary challenge. On March 15th, 2022, the Company filed an appeal for reconsideration against Resolutions No. 68/2022 and 69/2022. On May 9th, 2022, under Resolutions No. 147/2022 and No. 148/2022, the ENRE reconsidered and modified the actual values since February 1st, 2022, establishing an increase of 67% for Transener and of 69% for Transba, applicable to the values of August 2019.

Since August 2022, the Company has submitted notes to and has held meetings with the Secretariat of Energy and ENRE in order to request the updates of the transitory tariff scheme applicable since September 2022, on account of the tariff increase to be determined for 2023. For such purposes, the Company filed the Financial and Economic Projections for 2023 along with a detailed explanatory document and the capital expenditures plan. Likewise, the Company made a presentation to the Board of Directors of CAMMESA, indicating the criticality of the electricity transmission sector.

On October 20th, 2022, the ENRE, under Resolution No. 539/2022, called to a public hearing to be held on November 30th, 2022, in order to inform and listen to the opinions regarding the proposals of the concessionaires of the public electricity transmission service, aimed at obtaining a temporary update of the tariff scheme, within the RTI renegotiation process and prior to defining the tariffs to be applied by the concessionaires.

On the other hand, on December 6th, 2022, the Executive, through Decree No. 815/2022, extended for another year Decree No. 1020/2020, issued in December 2020, which had initiated the renegotiation of the current FTR for a maximum period of 2 years.

Subsequently, on December 29th, 2022 the ENRE, in order to maintain in 2023 the purchasing power of the revenues granted by Resolutions No. 147/2022 y 148/2022, through Resolutions No. 698/2022 and 702/2022 set the hourly values of current remunerations since January 1st, 2023, establishing an increase of 154,5% and 154,1% over the current values since February 2022 for Transener. and Transba, respectively.

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3. Operating Information

The Company continues to carry out the execution of the investment plan, maintaining as of December 31st, 2022 commitments for the acquisition of capital expenditures for an amount of approximately AR$ 4,300 million.

Transener, as the concessionaire of the extra high voltage electric power transmission network, is in charge of the supervision of the expansions of the network.

Here follows the most significant works in progress under Transener's supervision:

• Federal Plan for Transmission Works
  Electrical Interconnection in 500kV Bahía Blanca - Mar del Plata, Connection in 132kV to Villa Gesell and Complementary Works - North Trench
  Construction and assembly of the new Vivoratá 500/132kV Substation, with eight 132kV outputs and expansion of Bahía Blanca Substation. Construction of the 500kV EHVL.
• Works under the SE Resolutions No. 1/2003 and 821/2006
  New 25 de Mayo Substation
  Civil works and electromechanical assembly of the new 500/132kV Substation.
  Ezeiza Substation - Installation of shunt capacitive compensation banks
  Output on Transener's side in 220 kV to EDESUR's side, where the banks will be installed.
• Other works to be undertaken by the Wholesale Electricity Market (WEM) Agents
  Río Santa Cruz Hydroelectric Exploitation
  Cóndor Cliff and La Barrancosa Hydroelectric Power Plants- 500kV EHVL and Complementary Works Anticipated detailed engineering revision and inspections in factories.
  Resistencia Substation - Fields 01 and 02 outputs in 132kV Adequacy of both line outputs with equipment update.
  Cobos Substation - DAG Hub Node (Puna Solar-AltiplanoSolar-Cauchari Solar Generators) Installation required by DAG (Automatic Generation Disconnection) system and covered by the photovoltaic generators mentioned above.
  Puerto Madryn Substation Expansion - Transformation Capacity (Goldwing Loma Blanca VI Eolic Park)
  Installation of 600 MVA of 500/138/34.5 kV transformers bank (T3PY).
  Rosario Oeste Substation Expansion (for EPESF) - Output 132 kV DT HVL to Godoy Substation Commissioning of the Field N° 4 of the 132kV Rosario Oeste Substation yard for line output to Provincias Unidas, by armored cable.

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Business Development

Given its position as a leader in electricity transmission, Transener is involved in the supply of operation and maintenance services, engineering, testing and commissioning of lines and substations for new works or for the expansion of existing works in the 500kV system.

Transener maintains its main contracts with the following customers:

• Minera Alumbrera Ltd.
• Yacylec S.A.
• Transportadora del Norte S.A.
• Transportadora Cuyana S.A.
• AES Argentina Generación S.A.
• Nucleoeléctrica Argentina S.A.
• Transportel Minera II S.A.

Rate of failures

The rate of failures represents the quality of the service provided. The following charts show the quality of the service provided by Transener and Transba as from December 2018.

Transener and Transba Concession Agreements state a maximum rate of failures of 2.5 and 7.0 outages per 100 km over a 12-month period, respectively.

Transener

3.0

2.5

2.5 FAILURE LIMIT

2.0

1.5

COMPANY

FAILURES

1.0

0.5

0.0

JUNE

SEPTEMBER

JUNE

SEPTEMBER

JUNE

SEPTEMBER

JANUARY FEBRUARY MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

DECEMBER

MARCH

DECEMBER

MARCH

DECEMBER

MARCH

DECEMBER

OCTOBER

NOVEMBER

DECEMBER

2018 -

2019 -

2020 -

2021 -

2022 -

4

Transba

8.0

5.0	7.0 FAILURE LIMIT

4.0 COMPANY FAILURES

3.0

2.0

1.0

0.0

DECEMBER

MARCH

JUNE

SEPTEMBER

DECEMBER

MARCH

JUNE

SEPTEMBER

DECEMBER

MARCH

JUNE

SEPTEMBER

DECEMBER

JANUARY

FEBRUARY

MARCH

APRIL

MAY

JUNE

JULY

AUGUST

SEPTEMBER

OCTOBER

NOVEMBER

DECEMBER

2018 -

2019 -

2020 -

2021 -

2022 -

5