Compañía de Transporte de Energía Electrica en Alta Tensión Transener S A : Results of 1Q21

Buenos Aires, May 10th, 2021

Results for three-month period ended on March 31st, 2021

Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. ("Transener" orthe "Company") announces the results for three-monthperiod ended on March 31st, 2021

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Transener, Argentina's leading electricity transmission company, announces results for three-month period ended on March 31st, 2021.

Main results for three-month period ended on March 31st, restated in constant currency at March, 20211

José S. Refort

Chief Financial Officer

Andrés G. Colombo

Accounting and Tax Manager

([e-mail])

Marcelo A. Fell

Financial Manager

([e-mail])

Consolidated net revenues of AR$ 3.702,4 million, 26,1% lower than the AR$ 5.009,5 million for same period last year, mainly due to the lack of the semiannual tariff adjustments since February 2020.

Consolidated EBITDA2 of AR$ 1.572,0 million, 41,6% lower than the AR$ 2.692,7 million for same period last year, mainly due to a decrease of AR$ 1.307,1 million in net revenues, partially offset by lower operating and administrative expenses of AR$ 117,5 million.

[e-mail]

Tel:	(5411) 5167-9301

www.transener.com.ar

www.transba.com.ar

Consolidated net profit attributable to the owner of the parent of AR$ 443,7 million, 70,4% lower than the AR$ 1.497,2 million for same period last year, mainly due to a lower operating profit of AR$ 1.174,0 million and a higher loss in financial results of AR$ 116,7 million, partially offset by a lower income tax charge of AR$ 237,3 million.

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 March 31st, 2021, consolidated outstanding principal debt amounted to US$ 98,5 million, corresponding exclusively to the Class 2 Notes at 9,75%, of which US$ 12,5 million have been purchased by Transba, and were in the portfolio as of that date.

These notes will fully amortize in August 2021 and there is no additional financial debt due until that date.

Regarding Transener's ratings, in March 2021 S&P Global Ratings modified the global rating of "CCC+" to "CCC-", and the local rating of "raBB" to "raCCC", in both cases with a negative outlook.

2. Tariff Situation

On December 23rd, 2019, the Solidarity Law entered into effect, establishing that the tariff schemes for electricity under federal jurisdiction would not have updates, with the possibility of initiating an extraordinary review of the current FTR, for a term not exceeding 180 days.

During the year 2020, the ENRE did not apply the semiannual tariff adjustments according to the FTR, remaining effective the updated tariff scheme as of August 2019.

On December 16th, 2020, the Executive issued Decree No. 1020/20, initiating the current FTR review for the public service of natural gas and electricity transportation and distribution, under federal jurisdiction. This process cannot exceed 2 years. Taking into consideration public interest reasons, the current FTR agreements must be suspended until these reviews come to an end. The ENRE or ENARGAS, and the Economy Ministry will enter into the transitional and definitive agreements ad referendum of the Executive. Likewise, the abovementioned period of 180 days without tariff scheme updates was extended for 90 days or until the new transitional tariff schemes come into force.

On January 19th, 2021, under Resolution No. 17/21, the ENRE initiated the proceedings for the transitory settlement of the public service of transportation tariff, in order to determine a Transitional Tariff Scheme until the Definitive FTR Review Agreement is achieved. The Company received an information requirement to initiate this process, which the Company has already complied with, prioritizing the operating and administrative expenses and capital expenditures necessary to maintain the quality of the service.

On March 3rd, 2021, under Resolutions No. 54/21 and 55/21, the ENRE called for a public hearing on March 29th, 2021, in order to inform and receive opinions regarding the Transitional Tariff Scheme of Transener and Transba, respectively, within the FTR review process and with prior character to the tariff definition.

On April 14th, the Closing of the Public Hearings Report was published in the Official Bulletin. As of the date of issuance of this report, the ENRE has not issued the final resolution.

On the other hand, on July 3rd, 2018, the ENRE informed the initiation of the proceedings to determine the remuneration of the Independent Transmitters under the operation and maintenance period: TIBA (Transba), Fourth Line (Transener), YACYLEC and LITSA. Regarding this, on October 8th, 2018, the operating and administrative expenses, the capital expenditures and the tariff pretension corresponding to Fourth Line and TIBA were presented to the ENRE. To date, the ENRE has not issued the Resolution on this matter yet.

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3. The Impact of COVID - 19 in Argentina

The health emergency has brought about significant changes in the operational and management strategy, involving the implementation of certain policies and established protocols in the areas of the Company, particularly, at control centers and other critical operational areas, to prevent the spread of COVID-19 among employees and to ensure ongoing service supply.

It is not possible to anticipate how the impact of COVID-19 will continue to affect the economy, in general and the Company, in particular, and to what extent the Company's business and the results of its operations will be affected in the future. However, given its current financial strength, the Company estimates that it will be able to continue meeting its financial commitments for the next twelve months.

The Company's management permanently monitors the variables that affect its business, to define its course of action and identify the potential impact on its equity and financial situation. The Company's interim condensed consolidated financial statements as of March 31st, 2021 should be read in light of these circumstances.

4. Operating Information

The Company continues to carry out the execution of the investment plan, maintaining as of March 31st, 2021 commitments for the acquisition of capital expenditures for an amount of approximately AR$ 2.476 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
  Nueva San Juan - Rodeo Substations Interconnection
  Construction and assembly of approximately 162 km of a 500kV EHVL, its connection to a new field in 132kV in the New San Juan Substation and construction of a 132kV courtyard in the Rodeo Substation.
  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 500kV EHVL.
  Rincón Santa María - Resistencia II Interconnection
  Construction and assembly of approximately 275 km of 500kV EHVL and expansion of Resistencia and Rincón Santa María Substations.
  Santa Cruz Norte Completion - 132kV output to Caleta Olivia
  Expansion to be completed by YPF Luz in order to interconnect the Parque Eólico Cañadón León.
• Works under the SE Resolutions Nº 1/2003 and 821/2006
  Almafuerte Substation
  Acquisition of a new 500/132kV-300MVA transformer.
  New 25 de Mayo Substation
  Civil works and electromechanical assembly of the new 500/132kV Substation.
  Fast connection works
  Fast back-up phase connection for Esperanza Substation.

Expansion of Atucha 220/132 kV Substation - Auxiliary services

Execution of 13,2kV outputs.

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Rosario Oeste and Malvinas Argentinas substations

Construction of the bases for two 3x200 MVA transformer banks with phases as spare parts.

• 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 Construction of the microwave link to provide communications assistance to the works in progress. Detailed engineering revision in advance.
  Santa Cruz Norte Substation - Expansion of the capacity in transformation for Parque Eólico Cañadón León (YPF Luz)
  Construction of a new structure with the incorporation of a third transformer.

Gran Formosa substation - Expansion 132kV

Construction of a line output field for REFSA.

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.

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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 2015.

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	MARCH JUNE SEPTEMBER		MARCH JUNE SEPTEMBER		MARCH JUNE SEPTEMBER		MARCH JUNE SEPTEMBER 2019 - DECEMBER	JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER			2021 - MARCH
2015 - DECEMBER	2016 - DECEMBER	2017 - DECEMBER	2018 - DECEMBER	2020 - DECEMBER	JANUARY FEBRUARY
Transba
8.0
7.0
6.0
5.0

7.0 FAILURE LIMIT

4.0

3.0

COMPANY FAILURES

2.0 1.0

0.0

2015 - DECEMBER MARCH JUNE SEPTEMBER 2016 - DECEMBER MARCH JUNE SEPTEMBER 2017 - DECEMBER MARCH JUNE SEPTEMBER 2018 - DECEMBER MARCH JUNE SEPTEMBER 2019 - DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER 2020 - DECEMBER JANUARY FEBRUARY 2021 - MARCH

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