Central Puerto: 2Q2021

2Q 2021 Results Analysis

Revenues increased to Ps. 12,3 billion in the 2Q2021, as compared to Ps. 10,8 billion in the 2Q2020. This 14% increase was mainly due to:

(i) a 39% increase in Spot Sales/Energia Base (Revenues from Resolution 1, SEE 19, SGE 70 and amendments) which totaled Ps. 6,2 billion in the 2Q2021 as compared to 4,5 billion in the 2Q2020, due to higher generation from the hydro plant Piedra del Aguila, the steam turbines, the recovery to average production of the Siemens branded combined cycle of the Luján de Cuyo plant and Terminal 6.

(ii) a 30% increase in the Steam Sales, which totaled Ps. 0,4 billion in the 2Q2021, compared to Ps. 0,3 billion in the 2Q2020, as the steam production increased 5% in the quarter.

partially offset by:

(iii) an 5% decrease in Sales under contracts, which amounted to Ps. 5,4 billion during the 2Q2021, as compared to Ps. 5,7 billion in the 2Q2020.

Gross profit was Ps. 5,5 billion in the 2Q2021, compared to Ps. 5,7 billion in 2Q2020. This decrease was due to a 33% increase in the costs of sales that totaled Ps. 6,7 billion, compared to Ps. 5,1 billion in the 2Q2020, which was partially offset by the above-mentioned variation in revenues.

This rise in the cost of sales was primarily driven by:

(i) a 31% increase in costs of production, which totaled Ps. 5,6 billion in the 2Q2021, as compared to Ps. 4,2 billion in the 2Q2020 mainly due to i) an increase in depreciations of Ps. 0,5 billion and ii) an increase in maintenance expenses of Ps. 0,6 billion.

Gross Profit Margin was 45% during the 2Q2021, as compared to 53% in the 2Q2020.

Operating income before other operating results, net, was Ps. 4,8 billion, compared to Ps. 4,9 billion in the 2Q2020. This 2% decrease was due to (i) the above-mentioned drop in gross profits, which was partially offset by (ii) a 10% decrease (in real terms) in administrative and selling expenses that totaled Ps. 0,75 billion in the 2Q2021, as compared to Ps. 0,83 billion in the 2Q2020, mainly driven by a Ps. 0,1 billion reduction in taxes among other expenses.

Adjusted EBITDA was Ps. 4,7 billion in the 2Q2021, compared to Ps. 11,4 billion in the 2Q2020. This decrease was mainly due to:

(i) A Ps. 3.2 billion or 496% increase in the item "Impairment of property, plant and equipment and intangible assets as stated above on the highlight´s section, related to the Brigadier Lopez and Lujan de Cuyo´s plants.

(ii) A 76% decrease in foreign exchange difference on operating assets, mainly related to trade receivables, that generated a Ps. 1,1 billion gain during the 2Q2021, compared to Ps. 4,6 billion during the 2Q2020 due to a lower depreciation of the Argentine peso during the quarter and lower trade receivables balances maintained . As reference, in the 2Q2021, the Argentine peso depreciated 3.77%, compared to 9.19% during the 1Q2020.

(iii) a 6% decrease in interest from clients which totaled Ps. 0,098 billion during the 2Q2021, compared to Ps. 0,096 billion of 2Q2020, mainly related to lower receivables balances and lower Libor Rate.

This was partially offset by:

(iv) A 25% increase in depreciations and amortizations that totaled Ps. 2,3 billion during the 2Q2021, as compared to Ps. 1,8 billion during the 2Q2020.

As a result , Adjusted EBITDA excluding FX difference and interests related to FONI trade receivables and Impairment on property, plant and equipment was Ps. 6,9 billion in the 2Q2021, compared to Ps. 7,2 billion in 2Q2020.

Consolidated Net loss was Ps. 4,4 billion and Net loss for shareholder was Ps. 4,4 billion or (Ps. 2.95) per share or (Ps. 29.5) per ADR, in the 2Q2021 , compared to a Consolidated Net Income of Ps. 3.3 billion and Net Income for shareholder of Ps. 3,3 billion, respectively, or Ps. 2.19 per share or Ps. 21.9 per ADR, in the 2Q2020. In addition to the above-mentioned factors, net income was negatively impacted by:

(i) higher income tax expenses that amounted to Ps. 3,4 billion in the 2Q2021, compared to Ps. 0,9 billion in the 2Q2020, mainly due to the recent changes in the corporate income´s tax rate explained above in the highlight´s section.

(ii) lower financial income that amounted to Ps. 0,2 billion negative in the 2Q2021, compared to Ps. 2,1 billion positive in the 2Q2020, mainly due to interest rate swap´s losses and the net income on financial assets at fair value in 2Q2020 of Ps 2,1 billion.

and positively impacted by:

(iii) lower financial expenses which amounted to Ps. 2,9 billion during the 2Q2021, compared to Ps. 7,5 billion in the 2Q2020 as there were less foreign exchange difference, which decreased from Ps. 6,2 billion in 2Q2020 to Ps. 2,1 billion for 2Q2021, mainly due to a lower depreciation of the argentine peso during the quarter and a lower debt balance denominated in USD.

Additionally, the share of profit of associates was a Ps. 0,4 billion loss during the 2Q2021 compared to loss of Ps. 0,1 billion in the 2Q2020, mainly due to lower results from the operations of Ecogas due to lack of tariff adjustments for the natural gas distribution business.

Finally, the gain on net monetary position totaled Ps. 0,02 billion during the 2Q2021, as compared to Ps. 0,2 billion in the 2Q2020.

FONI collections totaled Ps. 2,4 billion in the 2Q2021, -including VAT, associated to the FONI trade receivables for Vuelta de Obligado Plant, compared to Ps. 2,0 billion of 2Q2020. The amounts are being collected on time and according to the signed contract.

1H 2021 Results Analysis

Revenues were Ps. 23,53 billion in the 1H2021 , similar to Ps. 23,46 billion in the 1H2020. There was :

(i) a 4% increase in Sales under contracts, which amounted to Ps. 11,4 billion during the 1H2021, as compared to Ps. 11,0 billion in the 1H2020, mainly due to the renewable division, as La Genoveva I, Manque and Los Olivos operated the full period given their CODs during 2020.

(ii) a 20% increase in the Steam Sales, which totaled Ps. 0,7 billion in the 1H2021, compared to Ps. 0,6 billion in the 1H2020, as the steam production increased 4% in the period.

partially offset by:

(iii) a 3% decrease in Spot Sales/Energia Base (Revenues from Resolution 1, SEE 19, SGE 70 and amendments) which totaled Ps. 10,8 billion in the 1H2021 as compared to 11,2 billion in the 1H2020, mainly due to the decrease in energy generation form the hydro plant Piedra del Águila. This was partially offset by (i) tariff adjustment approved by Resolution 440 and (ii) higher thermal generation as described before.

Gross profit was Ps. 11,1 billion in the 1H2021, compared to Ps. 13,1 billion in 1H2020. This 16% decrease was due to (i) a 21% increase in the costs of sales that totaled Ps. 12,5 billion, compared to Ps. 10,3 billion in the 1H2020.

This rise in the cost of sales was primarily driven by:

(i) A 24% increase in purchases of materials and spare parts which totaled Ps. 2,4 billion during the 1H2021, as compared to Ps. 2,1 billion in the 1H2020

(ii) a 19% increase in costs of production, which totaled Ps. 10,1 billion in the 1H2021, as compared to Ps. 8,5 billion in the 1H2020 mainly due to i) an increase in depreciations of Ps. 0,8 billion and ii) an increase in maintenance expenses of Ps. 0,8 billion.

Gross Profit Margin was 47% during the 1H2021, as compared to 56% in the 1H2020.

Operating income before other operating results, net, was Ps. 9,4 billion, compared to Ps. 11,3 billion in the 1H2020. This 17% decrease was due to (i) the above-mentioned drop in gross profits, which was partially offset by (ii) a 11% decrease (in real terms) in administrative and selling expenses that totaled Ps. 1,6 billion in the 1H2021, as compared to Ps. 1,8 billion in the 1H2020, mainly driven by a reduction of Ps. 0,2 billion in taxes and a Ps 0,1 billion in maintenance expenses.

Adjusted EBITDA was Ps. 15,4 billion in the 1H2021, compared to Ps. 23,3 billion in the 1H2020. This decrease was mainly due to:

(v) A Ps. 2,0 billion or 107% increase in the item "Impairment of property, plant and equipment and intangible assets as stated above on the highlight´s section and in the quarter analysis, mainly related to the Brigadier Lopez and Lujan de Cuyo´s plants.

(vi) A 50% decrease in foreign exchange difference on operating assets, mainly related to trade receivables, that generated a Ps. 4,3 billion gain during the 1H2021, compared to Ps. 8,5 billion during the 1H2020 due to a lower depreciation of the argentine peso during the period and lower trade receivables balances maintained. As reference, in the 1H2021, the Argentine peso depreciated 13.75%, compared to 17.79% during the 1H2020.

(vii) a 27% decrease in interest from clients which totaled Ps. 1,6 billion during the 1H2021, compared to Ps. 2,2 billion of the 1H2020.

This was partially offset by:

(viii) A 20% increase in depreciations and amortizations that totaled Ps. 4,4 billion during the 1H2021, as compared to Ps. 3,7 billion during the 1H2020.

As a result, Adjusted EBITDA excluding FX difference and interests related to FONI trade receivables and Impairment on property, plant and equipment was Ps. 14,2 billion in the 2H2021, compared to Ps. 16,3 billion in 2H2020.

Consolidated Net loss was Ps. 3,7 billion and Net loss for shareholder was Ps. 3,7 billion or (Ps. 2.48) per share or (Ps. 24.81) per ADR, in the 1H2021 , compared to a Consolidated Net Income of Ps. 4,8 billion and Net Income for shareholder of Ps. 4,8 billion, respectively, or Ps. 3.17 per share or Ps. 31.7 per ADR, in the 1H2020. In addition to the above-mentioned factors, net income was negatively impacted by:

(iv) higher income tax expenses that amounted to Ps. 3,9 billion in the 1H2021, compared to Ps. 3,5 billion in the 1H2020, mainly due to the recent changes in the corporate income´s tax rate explained above in the highlight´s section.

(v) lower financial income that amounted to Ps. 0,3 billion in the 2Q2021, compared to Ps. 2,3 billion in the 1H2020, mainly due to a reduction on net income on financial assets at fair value compared to Ps. 2.2 billion of 1H2020.

and positively impacted by:

(vi) lower financial expenses which amounted to Ps. 10,7 billion during the 1H2021, compared to Ps. 14,3 billion in the 1H2020 as there were less foreign exchange difference, which decreased from Ps. 10,2 billion in 1H2020 to Ps. 7,4 billion for 1H2021, mainly due to a lower debt balance denominated in USD.

Additionally, the share of profit of associates was a Ps. 0,7 billion loss during the 1H2021 compared to a loss of Ps. 0,01 billion in the 1H2020, mainly due to lower results from the operations of Ecogas due to lack of tariff adjustments for the natural gas distribution business.

Finally, the gain on net monetary position totaled Ps. 0,2 billion during the 1H2021, as compared to Ps. 0,7 billion in the 2Q2020.

FONI collections totaled Ps. 3,6 billion in the 1H2021, -including VAT, associated to the FONI trade receivables for Vuelta de Obligado Plant, compared to Ps. 4,5 billion of 1H2020. The amounts are being collected on time and according to the signed contract.

In the months of January and February 2020, CAMMESA has completed all scheduled payments of principal and interest in accordance with the FONI agreement for Termoeléctrica José de San Martín S.A. ("TJSM") and Termoeléctrica General Manuel Belgrano S.A. ("TMB").

Financial Situation

As of June 30, 2021, the Company and its subsidiaries had Cash and Cash Equivalents of Ps. 0,3 billion, and Other Current Financial Assets of Ps. 11 billion .

The following chart breaks down the Net Debt position of Central Puerto (on a stand-alone basis) and its subsidiaries:

Cash Flows of the 1H 2021

Net cash provided by operating activities was Ps. 6,6 billion during the 1H2021 . This cash flow arises from (i) Ps. 11 billion from the operating income obtained during the 1H2021, (ii) Ps. 6,4 billion due to a decrease in the stock of trade receivables, mainly related to the FONI collections, (iii) Ps. 1,6 billion in collection of interests from clients, including the ones from FONI, during the period and (iv) a Ps. 3,9 billion non-cash impairment of property, plant and equipment charge included in the operating income, which was partially offset by (v) a Ps. 4,4 billion non-cash foreign exchange difference on trade receivables, (vi) a Ps. 7 billion in net monetary position loss, (vii) a Ps. 3,6 billion from income tax paid, and (viii) a Ps. 4,3 billion reduction in trade and other payables, other non-financial liabilities and liabilities from employee benefits.

Net cash used in investing activities was Ps. 0,6 billion in 1H 2021 . This amount was mainly due to (i) Ps. 2,3 billion in payments for the purchase of property, plant, and equipment mainly related to the construction of Terminal 6 thermal project, which was partially offset by (ii) Ps. 1,6 billion obtained from the sale of short-term financial assets, net and (iii) Ps. 0,1 billion in dividends collected from ECOGAS.

Net cash used in financing activities was Ps. 6,0 billion in the 1H 2021 . This amount was mainly the result of Ps. 1,0 billion Bank and investment accounts overdrafts obtained, net, (ii) Ps. 4,7 billion in loans paid, mainly related to the loans received for the expansion projects, and (iii) Ps. 2,3 billion in interest and financial expenses paid, mainly related to those loans.

D. Tables

a. Consolidated Statement of Income

b. Consolidated Statement of Financial Position

c. Consolidated Statement of Cash Flow

E. Information about the Conference Call

There will be a conference call to discuss Central Puerto's Second Quarter 2021 results on August 12, 2021, at 11.00 AM Eastern Time.

The conference will be hosted by Mr. Fernando Bonnet, Chief Executive Officer, and Enrique Terraneo, Chief Operating Officer. To access the conference call, please dial:

Participants (Toll Free): +1-877-407-8035

International Participants: +1-201-689-8035

The Company will also host a live audio webcast of the conference call on the Investor Relations section of the Company's website at www.centralpuerto.com Please allow extra time prior to the call to visit the website and download any streaming media software that might be required to listen to the webcast. The call will be available for replay on the Company website under the Investor Relations section.

You may find additional information on the Company at:

• http://investors.centralpuerto.com/
• www.sec.gov
• www.cnv.gob.ar

Glossary

In this release, except where otherwise indicated or where the context otherwise requires:

• "BCRA" refers to Banco Central de la República Argentina , Argentina's Central Bank,
• "CAMMESA" refers to Compañía Administradora del Mercado Mayorista Eléctrico Sociedad Anónima ;
• "COD" refers to Commercial Operation Date, the day in which a generation unit is authorized by CAMMESA (in Spanish, "Habilitación Comercial") to sell electric energy through the grid under the applicable commercial conditions;
• "Ecogas" refers collectively to Distribuidora de Gas Cuyana ("DGCU"), Distribuidora de Gas del Centro ("DGCE"), and their controlling company Inversora de Gas del Centro ("IGCE") ;
• "Energía Base" (legacy energy) refers to the regulatory framework established under Resolution SE No. 95/13, as amended, currently regulated by Resolution SE No. 440;
• "FONINVEMEM" or "FONI", refers to the Fondo para Inversiones Necesarias que Permitan Incrementar la Oferta de Energía Eléctrica en el Mercado Eléctrico Mayorista (the Fund for Investments Required to Increase the Electric Power Supply) and Similar Programs, including Central Vuelta de Obligado (CVO) Agreement;
• "p.p.", refers to percentage points;
• "PPA" refers to power purchase agreements.

Disclaimer

Rounding amounts and percentages: Certain amounts and percentages included in this release have been rounded for ease of presentation. Percentage figures included in this release have not in all cases been calculated on the basis of such rounded figures, but on the basis of such amounts prior to rounding. For this reason, certain percentage amounts in this release may vary from those obtained by performing the same calculations using the figures in the financial statements. In addition, certain other amounts that appear in this release may not sum due to rounding.

This release contains certain metrics, including information per share, operating information, and others, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods.

OTHER INFORMATION

Central Puerto routinely posts important information for investors in the Investor Relations support section on its website, www.centralpuerto.com. From time to time, Central Puerto may use its website as a channel of distribution of material Company information. Accordingly, investors should monitor Central Puerto's Investor Support website, in addition to following the Company's press releases, SEC filings, public conference calls and webcasts. The information contained on, or that may be accessed through, the Company's website is not incorporated by reference into, and is not a part of, this release.

CAUTIONARY STATEMENTS RELEVANT TO FORWARD-LOOKING INFORMATION

This release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to in this Earnings Release as "forward-looking statements") that constitute forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words ‘‘anticipate'', ‘‘believe'', ‘‘could'', ‘‘expect'', ‘‘should'', ‘‘plan'', ‘‘intend'', ‘‘will'', ‘‘estimate'' and ‘‘potential'', and similar expressions, as they relate to the Company, are intended to identify forward-looking statements.

Statements regarding possible or assumed future results of operations, business strategies, financing plans, competitive position, industry environment, potential growth opportunities, the effects of future regulation and the effects of competition, expected power generation and capital expenditures plan, are examples of forward-looking statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies, which may cause the actual results, performance, or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

The Company assumes no obligation to update forward-looking statements except as required under securities laws. Further information concerning risks and uncertainties associated with these forward-looking statements and the Company's business can be found in the Company's public disclosures filed on EDGAR (www.sec.gov).

Adjusted EBITDA

In this release, Adjusted EBITDA, a non-IFRS financial measure, is defined as net income for the year, plus finance expenses, minus finance income, minus share of the profit of associates, minus depreciation, and amortization, plus income tax expense, plus depreciation and amortization, minus net results of discontinued operations.

Adjusted EBITDA is believed to provide useful supplemental information to investors about the Company and its results. Adjusted EBITDA is among the measures used by the Company's management team to evaluate the financial and operating performance and make day-to-day financial and operating decisions. In addition, Adjusted EBITDA is frequently used by securities analysts, investors, and other parties to evaluate companies in the industry. Adjusted EBITDA is believed to be helpful to investors because it provides additional information about trends in the core operating performance prior to considering the impact of capital structure, depreciation, amortization, and taxation on the results.

Adjusted EBITDA should not be considered in isolation or as a substitute for other measures of financial performance reported in accordance with IFRS. Adjusted EBITDA has limitations as an analytical tool, including:

• Adjusted EBITDA does not reflect changes in, including cash requirements for, working capital needs or contractual commitments;
• Adjusted EBITDA does not reflect the finance expenses, or the cash requirements to service interest or principal payments on indebtedness, or interest income or other finance income;
• Adjusted EBITDA does not reflect income tax expense or the cash requirements to pay income taxes;
• although depreciation and amortization are non-cash charges, the assets being depreciated or amortized often will need to be replaced in the future, and Adjusted EBITDA does not reflect any cash requirements for these replacements;
• although share of the profit of associates is a non-cash charge, Adjusted EBITDA does not consider the potential collection of dividends; and
• other companies may calculate Adjusted EBITDA differently, limiting its usefulness as a comparative measure.

The Company compensates for the inherent limitations associated with using Adjusted EBITDA through disclosure of these limitations, presentation of the Company's consolidated financial statements in accordance with IFRS and reconciliation of Adjusted EBITDA to the most directly comparable IFRS measure, net income. For a reconciliation of the net income to Adjusted EBITDA, see the tables included in this release.

Contact information:

Chief Financial Officer

Enrique Terraneo

Investor Relations Officer

Nicolas Macchi

Tel (+54 11) 4317 5000 ext.2447

www.centralpuerto.com

inversores@centralpuerto.com

SOURCE: Central Puerto