Enel-Codensa increased investments by 45% in Q1 2021

• The service quality in Bogota and Cundinamarca had a positive result thanks to the investment plan.
• At the end of the first quarter of the year, the Company achieved an all-time record decrease in the frequency of service interruptions per customer (SAIFI) of 31% and in the duration of such interruptions (SAIDI) of 42% with respect to the first quarter of the previous year.

Bogota, April 29, 2021

Financial Results Q1 2021

^{(1) Short-term financial debt + Long-term financial debt - Cash and other financial assets}

^{(2) Figure as of December 2020}

Lucio Rubio Díaz, General Manager of Enel in Colombia, declared: “The results obtained at the end of the first quarter show a significant improvement in the service quality indicators in Bogota and Cundinamarca. The frequency of power interruptions was reduced by (31%) and their duration by (42%), as a result of the robust investment plan that the Company has been implementing focused on the modernization, automation and commissioning of new electrical infrastructure to support the growth of the city and the department. All this allows us to improve the quality of life of our communities and customers". 

Revenue increased by 3.7%, explained by:

• An increase in the Distribution Charge, due to the recognition of the greater regulatory asset base approved with the new CREG resolution 122 of 2020 and also to the application of quality incentives that did not impact the first quarter of the previous year.
• The best margin recorded as a result of the Producer Price Index (PPI) to which the distribution remuneration component included in the energy bill is indexed.
• Higher income as a result of the sale charge, due to an increase in the Consumer Price Index (CPI).
• Better performance of value-added products due to the entry into operation of the three electric bus yards between December 2020 and February 2021, which were built and supplied by Enel-Codensa through its Enel X business line. Additionally, higher income in the insurance segment and in the incorporation of the public cleaning service in the Enel-Codensa bill, due to the collection contract with two new cleaning operators in the municipalities of Facatativá and Soacha.

This increase in revenue was partially offset by:

• A lower regulatory premium due to the effect of a higher volume of losses and adjustments in the billing of unrecorded consumption.
• An increase in other expenses of variable supplies and services, in particular, related to higher costs of the Industry and Trade Tax (ICA)
• A lower margin in the credit card business, specifically with Crédito Fácil Codensa, due to the pandemic’s effects on the portfolio.

On the other hand, fixed costs, represented by personnel costs and operation and maintenance costs, dropped 7%. This effect was mainly due to the decrease in maintenance operations in Bogota, which were carried out intensively in 2020 to comply with the Service Quality Improvement Plan signed with the Superintendence of Residential Public Services.

As a result, EBITDA increased YoY by 7.4%, showing resilience and strength in its cash generation in addition to the costs and expenses optimization, positively impacting the operating margin.

• EBIT reflects the decrease in depreciation due to the change in the useful lives of computer systems in accordance with their real expectation after a technical evaluation. It also shows a decrease in the provision of commercial debtors as a result of the improvement in the company’s collection profile.
• Net Income increased YoY by 20.2%, reflecting the increase in EBIT and a lower effective income tax rate of 1% approved by the National Government's Economic Growth Law and the recognition of the tax discount for the payment of the Industry and Commerce Tax. This effect was offset by an increase in financial expenses derived from a higher level of debt compared to the previous year as a result of the financing of the investment plan.

Net Financial Debt shows a slight YoY increase of 4.4%, in line with the financing of the robust investment plan that Enel-Codensa has been implementing and which is reflected in the results of the operation.

During the first quarter of 2021, Enel-Codensa made investments for 228,694, a 45% YoY increase. The investments focused on the quality plan, the replacement of assets, especially in rural areas, public lighting in Bogota and greater investments in the Bogota Metro project, whih includes activities such as the undergrounding of the networks in the areas where this project will be developed.

 Operating Results Q1 2021

^{(1) Energy demand within the Codensa network, does not include losses from the National Interconnected System}

^{(2) System Average Interruption Duration Index}

^{(3) System Average Interruption Frequency Index}

• The decrease in domestic energy demand and the energy demand in the area of ​​influence of Enel-Codensa is explained by the slow recovery of the different economic sectors with higher energy consumption, mainly industries and trade, after the decrease in consumption during strict lockdown. However, the trend of the last twelve months is positive, especially during the month of March, driven by demand from the industrial segment thanks to the gradual reopening.
• As of March 31, 2021, accumulated energy sales in the regulated market in the area of influence of Enel-Codensa amounted to 3,723 Gwh, equivalent to a YoY decrease of 0.69%. It is important to highlight the 3.3% YoY growth in March, as a rebound effect of the strong contraction observed in the same month of the previous year with the emergence of COVID-19.
• The average energy loss rate of Enel-Codensa increased by 0.24%, associated with a lower denominator compared to March 2020, as a result of the low energy demand due to the lockdown measures in response to COVID-19.
• The total number of Enel-Codensa customers increased due to new connections, in line with the company’s organic growth.
• The positive results in supply quality indicators were achieved thanks to the implementation of the Integrated Quality Plan. This project has involved electrical and forestry maintenance activities and investments in the construction of power substations and new circuits, network automation and connectivity of remote-controlled equipment, among others, in addition to the improvement in travel times due to confinements. As a result of the above, at the end of the first quarter of the year we achieved a historical record in the reduction of the frequency of service interruptions per customer (SAIFI) of 31% and in the duration of such interruptions (SAIDI) of 42% with respect to the first quarter of the previous year.

Dividends:

During the first quarter of 2021, Enel-Codensa paid a total of COP $135,652 million in dividends to its shareholders.