EDN Empresa Distribuidora Y Comercializadora Norte SA

First Quarter 2016 Page 1

Buenos Aires, Argentina, May 12, 2016 . Empresa Distribuidora y Comercializadora Norte S.A. (NYSE: EDN; Buenos Aires Stock Exchange: EDN) (“EDENOR” or “the Company”), Argentina’s largest electricity distributor, today announced its results for the first quarter of 2016. All figures are stated in Argentine Pesos and have been prepared in accordance with International Financing Reporting Standards (“IFRS”). Solely for the convenience of the reader, Peso amounts as of and for the quarter ended on March 31, 2016 have been translated into U.S. Dollars at the selling price quoted by Banco de la Nación Argentina of AR$ 14.70 per U.S. Dollar.

HIGHLIGHTS

Note No. 120,151 issued by the ENRE

On April 15, 2016, the ENRE issued the Note No. 120.151, establishing that all fines and penalties imposed by the ENRE after April 15, 2016 (whether with respect to events occurring on or after such date or events occurring prior to the date thereof but for which fines or penalties had not been imposed on us by such date, that include a reference to “Note No. 120,151”, must be valued according to the KWh values in effect as of the last date of the semester or period during which the event giving rise to the penalty occurred, including any increases or adjustments applicable to our “remuneration” at such date.  In addition, fines and penalties that fall within the purview of the Note will accrue interest from the last date of the semester on which the event giving rise to the penalty occurred until the date they are paid by us.  The amount registered to reflect accrued interest according to the Note was AR$. 129.0 million.

Compensation to customers

On March 28, 2016, we were notified of Resolution No. 31/2016 of the ENRE pursuant to which we were instructed to compensate the small residential customers (T1R) who had been affected by the power outages occurred during the period between February 12, 2016 and February 18, 2016. The amount of such compensation depends on the duration of each relevant power outage. The total compensation to be paid amounts to AR$. 73 million.

RTI

On April 1, 2016, the ENRE issued Resolution 55/16, which approves the 2016 Integral Tariff Revision Program and establishes the criteria and methods to be applied in the RTI process, as well as the compensation and penalties regulation together with the tentative schedule including details of the working plan to be submitted.

In our opinion, the RTI process will have to factor in a revised analysis of our distribution costs, modifications to our quality of service standards and penalty scheme and, finally, a revision of our asset base and rate of return, such as,  among other: (i) the treatment to be given to the outstanding amounts granted under the loans for consumption (mutuums) to cover the insufficiency of the funds deriving from the FOCEDE; (ii) the conditions for the settlement of the outstanding debt with CAMMESA as of the date of issuance of Resolution No. 32/15; (iii) the treatment to be given to the penalties and discounts determined prior and subsequent to the Adjustment Agreement; and (iv) an agreement on quality levels and a new system of penalties and discounts that provides for an adequate transitional period until the tariff schedule resulting from the RTI is fully implemented.

First Quarter 2016 Page 2

Appointment of new Board of Directors’ members

The Ordinary and Extraordinary General Shareholders’ meeting held on April 28th 2016 appointed permanent and alternate members of the Board of Directors and Audit Commission.

Revenue from sales increased 208.7% to AR$ 2,990.1 million in the first quarter of 2016 compared to AR$ 968.6 million in the first quarter of 2015, mainly explained by the tariff increase obtained since February 1, 2016  and to an increase in volume of energy sold in GWh for about 2.0%.

Volume of energy sold increased 2.0% to 5.671 GWh in the first quarter of 2016 from 5,567 GWh in the first quarter of 2015, basically due to an increase of 6.0% in medium commercial customers, and a 3.0% growth in industrial and wheeling system customers.

Electricity power purchases increased 2.5% to AR$ 1,317.3 million in the first quarter of 2016 compared to AR$ 523.0 million in the same period of 2015, mainly due to the increase in the average purchase price since February 1, 2016.

Net operating income decreased AR$ 677.7 million amounting a gain of AR$ 238.3 million in the first quarter of 2016 compared to a gain of AR$ 916.0 million in the same period of 2015. This negative result was due to a 81.8% increase in operating expenses, mainly due to the raise in the accrued fines and penalties do to the changes in the estimation introduced by Note No.120.151 of the ENRE, a 41% increase in salaries and a reduction in the amounts obtained through SE Resolution 32/15 and to a CMM (Cost Monitoring Mechanism) adjustment of AR$1,008 million.

The operating expenses increase was basically explained by higher transmission and distribution expenses of AR$ 620.2 million, by greater selling expenses of AR$ 116.8 million and by an increase in administrative expenses of AR$ 91.8 million.

Net loss shows a decrease of AR$ 594.9 million, amounting a loss of AR$ 125.0 million in the first quarter of 2016, compared to a gain of AR$ 469.9 million in the same period of 2015, mainly due to the operating results explained above and to a decrease of AR$ 257.6 in financial results basically due to the devaluation of the AR$/US$, partially offset by the sales increase and the income tax provision.

First Quarter 2016 Page 4

Sales

The following table shows our energy sales by customer´s category (in GWh) and its number of clients:

Capital Expenditures

Edenor’s capital expenditures during the first quarter of 2016 totaled AR$ 628.8 million, compared to AR$ 334.3 million in the first quarter of 2015. This increase was mainly due to the increase in costs and key facilities for ensuring the proper provision of the service.

Our capital expenditures in the first quarter of 2016 mainly consisted of the following:

         ·             AR$ 32.4 million in new connections;

         ·             AR$ 482.3 million in grid enhancements;

         ·             AR$ 70.0 million in network maintenance and improvements;

         ·             AR$ 0.3 million in legal requirements;

         ·             AR$ 7.5 million in communications and telecontrol;

         ·             AR$ 36.4 million of other investment projects.

For the three-month period ended March 31, 2016, our Capital Expenditures totalized to AR$ 628.8 million compared to AR$ 334.3 million in 2015, including capitalized costs and interests in property, plant and equipment.

First Quarter 2016 Page 5

Energy Losses

In the first quarter of 2016 energy losses increased to 14.5% compared to 13.9% in the same period of 2015.

Indebtedness

The outstanding principal amount of our dollar denominated financial debt is US$ 191.2 million, consisting of US$ 14.8 million principal amount of Senior Notes due on 2017 and US$ 176.4 million principal amount of Senior Notes due on 2022.

First Quarter 2016 Page 6

About EDENOR

Empresa Distribuidora y Comercializadora Norte S.A. (Edenor) is the largest electricity distribution company in Argentina in terms of number of customers and electricity sold (both in GWh and Pesos). Through a concession, Edenor distributes electricity exclusively to the northwestern zone of the greater Buenos Aires metropolitan area and the northern part of the city of Buenos Aires, which has a population of approximately 7 million people and an area of 4,637 sq. km. In 2015, Edenor sold 22,380 GWh of energy and purchased 22,127 GWh, with net sales of approximately AR$ 3.8 billion and net income of AR$ 1,142.4 million.

This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management’s current view and estimates of future economic circumstances, industry conditions, Company performance and financial results. The words “anticipates”, “believes”, “estimates”, “expects”, “plans” and similar expressions, as they relate to the Company are intended to identify forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties, including those identified in the documents filed by the Company with the U.S. Securities and Exchange Commission. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

Edenor S.A.

6363 Del Libertador Avenue, 4th Floor

(C1428ARG) Buenos Aires, Argentina

Fax: 5411.4346.5358

investor@edenor.com

www.edenor.com

Conference Call Information

 

 

 

There will be a conference call to discuss Edenor’s quarterly results on Friday, March 17, 2016, at 11:00 a.m. Buenos Aires time / 10:00 a.m. New York time. For those interested in participating, please dial + 1(844) 854-4411 in the United States or, if outside the United States, +1(412) 317-5481 or 0-800-444-2930 in Argentina. Participants should use conference ID Edenor and dial in five minutes before the call is set to begin. There will also be a live audio webcast of the conference at www.edenor.com in the Investor Relations section.

For additional information on the Company please access: www.edenor.com ; www.cnv.gob.ar

First Quarter 2016 Page 7

Financial tables have been converted into U.S. dollars at a rate of AR$ 14.70 per dollar, the selling rate as of March 31, 2016, solely for the convenience of the reader.

First Quarter 2016 Page 8

Financial tables have been converted into U.S. dollars at a rate of AR$ 14.70 per dollar, the selling rate as of March 31, 2016, solely for the convenience of the reader.

First Quarter 2016 Page 9

Condensed Interim Statements of Comprehensive Income (Loss) for the three-month

periods ended March 31, 2016 and 2015

Financial tables have been converted into U.S. dollars at a rate of AR$ 14.70 per dollar, the selling rate as of March 31, 2016, solely for the convenience of the reader.

First Quarter 2016 Page 10

Financial tables have been converted into U.S. dollars at a rate of AR$ 14.70 per dollar, the selling rate as of March 31, 2016, solely for the convenience of the reader.

First Quarter 2016 Page 11

Condensed Interim Statements of Cash Flows

for the three-month periods ended March 31, 2016 and 2015

  (Continued)

Financial tables have been converted into U.S. dollars at a rate of AR$ 14.70 per dollar, the selling rate as of March 31, 2016, solely for the convenience of the reader.

First Quarter 2016 Page 12

Financial tables have been converted into U.S. dollars at a rate of AR$ 14.70 per dollar, the selling rate as of March 31, 2016, solely for the convenience of the reader.