#1CFE CFE Comisión Federal de ElectricidadⓇ CFE Investor Presentation August 2, 2021#2Key Highlights 2Q 2021 EBITDA was 63.3 billion pesos* Total Income in 2Q 2021 was 286 billion pesos Total Assets of 2.2 trillion pesos We have increased our customer base to 46.2 million from 45.0 million accounts in June 2020, reaching 99% of the Mexican population A 0.9% decrease in 6M 2021 of the average price per kWh from 1.876 pesos in 6M 2020 to 1.860 pesos Source: CFE *EBITDA adjusted for net labor cost of the period CFE Comisión Federal de ElectricidadⓇ CFE 1#3CFE at a Glance in 2Q 2021 CFE Total assets: 2,201 billion Current Assets: pesos 281.0 billion pesos Total Revenue: 286.0 billion pesos Equity: 566.6 billion pesos Operating Result: 6.8 billion pesos Generation Capacity: 58,894 MW Transmission Grid: 110,315 km Distribution Grid: 872,161 km Fiber Optic Grid: 55,263 km Electricity Generated 6M 2021(1): 20.8 TWh CFE generates 66% (2) of the electricity in Mexico and provides power to 99% of the population. Total Revenue: 15.5% Operating Costs: 50.5% 2Q 2021 vs. 2Q 2020 User Accounts: 2.7% Subsidy: 0.7% (1) Total Electricity generated by CFE from January to December 2020. Includes Independent Power Producers (IPPs). (2) Includes IPPs. Source: CFE, CFE Generación, CFE Distribución; CFE Transmisión; CFE SSB CFE Comisión Federal de ElectricidadⓇ 2#4Account Evolution and Breakdown User Accounts (millions) As of 1Q 2021, our user accounts reached 46.2 million Account Breakdown by Sector 2Q 2021 Industrial Agricultural 6.8 4.9 12 18.7 34.2 0.8% 0.3% Services 0.5% Commercial 45.6 46.2 44.5 9.4% 42.2 42.5 40.8 89.0% Residential Revenue Breakdown by Sector 2Q 2021 Services Agricultural Commercial 12.4% 2.7% 3.7% 21.8% 1970 1980 1990 2000 2010 2016 2017 2018 2019 2020 2T21 Residential 59.5% Industrial Source: CFE CFE Comisión Federal de ElectricidadⓇ 3#55,401 1970 13,692 Evolution of Installed Capacity (MW) 24,442 1980 1990 35,869 2000 59,003 57,872 58,894 55,564 55,891 55,265 51,611 2010 2016 2017 2018 2019 2020 2Q 2021 Of that total, 73% corresponds to CFE, and 27% belongs to Independent Power Producers. Source: CFE CFE Comisión Federal de ElectricidadⓇ 4#6Туре Installed Generation Capacity 2Q 2021 As of June 2021, clean technologies accounted for 26.1% of total installed capacity Plants Units IPPS* 33 504 ■ Steam Hydroelectric 60 167 Turbogas 43 102 17.1% ■ Combined Cycle 26.1% Combined Cycle 19 80 ■ Turbogas Steam 21 58 Internal Combustion 5 27 (Diesel) Geothermal 4 27 ■ Internal Combustion ■ Coal 9.3% Coal-Fired 3 15 42.2% Wind-Driven & Photovoltaic 10 50 10 0.6% 4.8% ■ Clean Technologies Hydroelectric Nuclear Wind Efficient cogeneration Geothermal Bioenergy Photovoltaic Nuclear Power 1 2 Total Source: CFE *Independent Power Producers 194 992 CFE Comisión Federal de ElectricidadⓇ 5#7Transmission and Distribution Infraestructure National coverage through 9 offices covering 55 zones The transmission and sub- transmission lines ° USA (MPERIAL V PAPO 200 СРО СНО (USA) (USA) DIABLO AZCARATE ° LOWO REA OVIZ CPP MD VE STA NCE O O APO PLO ADD Oavs KON CO OBAY www QSON OLEN CUN CCAN Ove bow ECC SPOO BAC CHOO COT HTS PV GM ENO Atru EMY CHO OLMO ° LROO PES TPO GMD BRY Q CUT VA AND RAP MAZO UCA DANO PRO PHP QPM HRCO PMX O TRY TUR ° OLFG ° APA TIZ TCM PYGO ARX O JRB A MAN O CYO CA TK VAE TTE TTH ACS KMC SAO NEC PHC TUV VIC CTG EVDO PNN AMP (USA) ACD AGA ३०- CFI OTSU AML NOP CFDO OATI OLVE RE OPEN CEY CRO AVO VAJ A KCRO CADET CPM ATK SOX LOOMAD XAL CHNO PBD TEX ZOC MZT MPT OCPOLLAP OXL LRP MDO CDS DVA FTE HOL OCTO COY COY MERGE OCE PEV ESR AUR O ARA AR BOS SNG REC CBD M VOG USA) EST C TEM VER MAGA CRU NUR O BRNO TYA TOKO CJM XOCO FAA FRO LAM ADC ORAI (Sharyland) pax AGU OCRS ETR Ou pos ACOA POPET TOLO TTC TAX O (EAP) 127 HEX MORO TOP YTP YCP ATE T ZAP CMR LTH 13 TRS LED MZL CMU MZD PNGO LAJ JOM CAL ° PMY JEP CIK O TEC PZA MMP CEN LLGOOTE FRO CD GUE OEPS ZAMFP O ODO ATV EAA ADBLO TO DEAD AGM LYE KDAO OLA CPY ATC DETALLE DEL AREA METROPOLITANA DE LA CIUDAD DE MÉXICO PAE O vo SIMBOLOGÍA TED ZPO LNT CBL POS BAJ ALT TPC VTPO TMH TMTUVOMA SUBESTACION CENTRAL GENERADORA CENTRAL EÓLICA CENTRAL FOTOVOLTAICA LINEA DE 400 KV ORP goo o ATO HTTE PRO ATN ABA STMOP OPPT SMO WAN OCOM MTA DOG. QUPP CEL POATE OCHO AP OPT ATSOHEX LT FUTURA TIA O NOWO OP Oca C **** LTAISLADAS EN 400 KV OPERANDO EN 230 KV LINEA DE 230 KV CABLE DE 230 KV LINEA DE 161, 138 KV LINEA DE 115, 69 KV ICABLE DE 115 LINEA DE 34.5 KV CABLE DE 34.5 KV ° ZAPOO MZLO YCFO PED CUP MP QAUC CHE TUM OD Apec AT CMU CREC LTS COC CLA ESA V TC ITP COPO OND TOCO KLY LAB TMD CHM MID CTS ° LCP NKS EDO OLAT BELICE MPS MSP TSP OPO POW OT MMT SABANG THP LBR represent 2.7x the circumference of the Earth о ~110,315 km of transmission and sub-transmission lines covering the 32 Federal Entities of Mexico 草 ~872,161 km of distribution lines in all the country 55,263 km of fiber optic lines, the second largest telecommunication network in the country. 13 International connections with USA (11), Guatemala (1) and Belize (1). Source: CFE Transmisión, CFE Distribución CFE Comisión Federal de ElectricidadⓇ 6#8Evolution of Technical and Non Technical Distribution Losses* 18.0% Luz y Fuerza del Centro liquidation 16.1% 16.0% 15.3% 15.9% 13.9% 14.0% 11.8% 14.6% 12.4% 11.6% 11.7% 11.2% 12.0% 11.6% 11.2% 12.5% 13.1% 11.6% 11.6% 11.7% 10.0% 11.6% 11.0% 11.0% 10.0% 9.5% 8.0% 6.0% 4.0% 2.0% 0.0% 6.0% 2023p 2022p June 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 Low and medium voltaje, less than 34,500 volts. P: proyected Source: CFE Distribución CFE Comisión Federal de ElectricidadⓇ 2024p 7#9115.0% 110.0% 105.0% Electrical Energy Sales Collection Index* 109.6% 101.2% 101.1% 100.0% 98.3% 99.4% 99.1% 96.5% 97.4% 97.4% 97.5% 96.4% 95.0% 95.3% 95.5% 95.2% 94.5% 97.2% 95.2% 93.7% 94.0% 93.9% 93.8% 90.0% 85.0% 80.0% January February March April May June July August September October November December January February March April May 2019 June 2020 100.0% 97.5% 111.9% 100.8% Average: 97.5% 95.9% 95.8% 94.1% 93.9% 2021 Collection Index (IC) is defined as the percentage of income from energy sales with respect to total billing, has remained constant with respect to the last 2 and a half years average. Source: CFE Suministro Básico * Energy sales income/ billing CFE Comisión Federal de ElectricidadⓇ 8 92.9%#10+ Financial Results Total Revenues 285.9 billion pesos Total revenues at the end of the 2nd quarter 2021 were 15.5% higher compared to the same period of 2020 as a result of higher sales of fuels to third parties of 26.3 billion pesos (effect of rising international fuel prices) and the increase of 4.8 billion pesos in energy sales (effect of gradual reactivation of economic sectors). Operating Costs 279.1 billion pesos Operating costs registered an increase of 50.5% compared to the 2Q2020. Energy costs (own and third parties) were 170 billion pesos, higher by 86.4 billion pesos (103.4%), due to the accumulated effect of disruption of Natural Gas prices observed in the 1Q2021 and the price increase of the Natural Gas benchmark indexes during the 2Q2021. Operating Results 6.8 billion pesos Financing Costs 25.2 billion pesos Foreign Exchange Profit 9.1 billion pesos Taxes 4.8 billion pesos Net Result (14.1) billion pesos Total Assets 2,201 billion pesos Operating income decreased 55.3 billion pesos compared to the 2Q2020, as a consequence of the increases observed in Natural Gas prices during the first semester of the year Financial costs decreased 6.3 billion pesos compared to 2Q2020, due to the adoption of the policy of refinancing loans and due to monetization of the favorable market value of financial instruments. As of the 2Q2021, an exchange profit of 9.1 billion pesos was recorded due a 13.8% peso appreciation compared to the same period of 2020, equivalent to 135.3 billion pesos. Taxes were 3.6 billion pesos higher than those at the end of 2Q2020.. Net loss is mainly explained by a collateral effect of the increases in fuel prices during the first and second quarters of 2021 and by a gradual economic recovery of lesser magnitude. Total Liabilities 1,635 billion pesos Equity 566 billion pesos Source: Financial Statements CFE CFE Comisión Federal de ElectricidadⓇ 9#11Revenues jun-21 3.3% 14.8% 4.5% Total Revenues Revenues jun-2020 ☐ Energy Transport Services 17.0% Energy Sales 4.2% 2.0% 285.9 3.9% 247.6 12.6% billion pesos Energy Sales to Third Parties billion pesos 64.8% Subsidy 72.9% ■ Other Income • • As of June 2021, CFE's total revenues increased 15.5% compared to the same period in 2020, as a result of higher sales of fuels to third parties for 26.3 billion pesos and to an increase in revenue from energy sales, mainly due to higher demand in the commercial sector of 16.2%. Revenues from federal subsidies as of June 2021 were 42.2 billion pesos. During April, 21.0 billion pesos were received in advance transfers that were recorded as a liability under "Other accounts payable and accrued liabilities", which will be recognized in income from subsidies as they accrue during the year. Source: Financial Statements CFE CFE Comisión Federal de ElectricidadⓇ 10#12Operating costs jun-2021 Operating Costs Operating Costs jun-2020 2.2% 4.2% 12.2% 8.1% 1.7% 0.6% 0.6% 279.1 47.5% billion pesos 11.8% 13.5% 18.7% ■Third party energy and fuel supplies ■ Salaries and related costs ■Maintenance, materials and general services 39.1% 185.5 ■Taxes and duties 9.8% billion ■Wholesale Electricity Market pesos (MEM) costs 0.8% Employee benefit costs 5.2% 0.7% → Depreciation 6.0% 17.5% Other costs • • 'Energy and other fuels' increased by 93.6 billion pesos and 'Energy and other fuels to third parties' by 26.5 billion pesos compared to the same period of 2020, as a consequence of the accumulated effect of the disruption event in Natural Gas prices observed during the third week of February 2021 and the increase in international Natural Gas prices, reaching levels close to 4 dollars per MMBTU. There was a 4.9 billion pesos reduction in 'Maintenance, materials and general services', which offset the increases in 'Salaries and related costs'. Source: Financial Statements CFE CFE Comisión Federal de ElectricidadⓇ 11#13Financial Information 2Q 2019, 2Q 2020 and 2Q 2021 Total Revenues (billion pesos) 259.2 247.6 2Q-2019 246.1 2Q-2019 2Q-2020 Operating Costs (billion pesos) 185.5 2Q-2020 Source: CFE, Financial Statements, CFE Suministro Básico CFE Comisión Federal de ElectricidadⓇ 285.9 1.915 2Q-2021 6M-2019 279.1 13.1 Average Price (pesos/kWh) 1.876 6M-2020 Operating Results (billion pesos) 62.1 1.860 6M-2021 6.8 2Q-2021 2Q-2019 2Q-2020 2Q-2021 12#1465.8 Financial Information Jun-2019, Jun-2020 and Jun-2021 EBITDA* (billion pesos) 115.0 63.3 352.0 Jun-2021 Jun-2019 Jun-2019 Jun-2020 Debt to EBITDA** (number of times) 6.5 4.8 4.6 Financial Debt (billion pesos) 409.0 Jun-2020 393.1 Jun-2021 EBITDA** to Current Liabilities (number of times) 2.9 2.5 2.5 Jun-2020 Jun-2021 Jun-2019 Jun-2020 Jun-2021 Jun-2019 Source: CFE, Financial Statements **EBITDA anualized fpr last 12 months *EBITDA adjusted for net labor cost of the period CFE Comisión Federal de ElectricidadⓇ 13#15Debt as of June 30, 2021* (million pesos) 77,643 Debt Profile 2Q 2021 Discounting the effect of currency fluctuation, increase on debt balance from December 2020 to June 30, 2021 was of 8.5%. MOODY'S Baa1 361,207 Deuda 31-dic-2020 * Does not include accrued interest payable. Nueva deuda Debt Maturity Profile as of June 30, 2021 (million pesos) 50,000 45,000 40,000 35,000 40,121 37,976 35,995 11,306 11,491 10,711 46,257 5,828 44,575 1,234 393,041 Amortizaciones Fluctuación Cambiaria Deuda 30-jun-2021 30,000 26,123 25,000 6,733 21,805 20,000 40,429 28,814 14,811 11,962 15,000 26,485 25,284 11,420 10,000 19,390 9,842 5,844 6,371 5,508 5,000 9,843 4,969 5,576 4,676 1,694 4,280 O 1,228 Source: CFE 2021 2022 Documentada CFE Comisión Federal de ElectricidadⓇ ■Pidiregas 31,351 29,614 4,280 25,819 4,103 27,070 21,716 23,594 17,279 1,833 15,840 1,384 15,842 6,955 15,446 15,842 14,456 3,956 4,067 6,020 2,767 2,888 1,188 ថ្មី 2045 2046-2050 2051 Negative STANDARD & POOR'S BBB Negative Fitch Ratings BBB- Stable 14#16Without Hedges With Hedges Disciplined Financial Risk Management 2Q 2021 Debt by type of currency Local 39.1% 60.9% 72.1% Local *After hedging el 99% of foreign debt in usd. Source: CFE CFE Comisión Federal de ElectricidadⓇ 27.9% Foreign Debt by type of interest rate Floating 29.8% Floating Foreign* 26.3% 70.2% Fixed 73.7% Fixed 15#17Relevant Financing Transactions 2Q 2021 CEBURES On May 25, 2021, CFE issued 10.0 billion pesos in Certificados Bursátiles (CEBURES) in three tranches: Tranche Maturity Amount (billion pesos) Coupon Rate CFE 21 1.5 years 4.87 TIIE + 0.57% CFE 21-2 3.8 years 2.59 TIIE + 0.75% CFE 21U 10 years 2.54 5.45% ✰ Proceeds will be used for the payment of previously acquired debt, therefore the transaction didn't increase CFE's indebtness. The issuance had an over-subscription of 1.8 times, proving investors interest in CFE. * The weighted financing rate was 5.05%, below the financial cost with respect to other financing options, and the financial cost of the three tranches was below the benchmarks established in the secondary market. Source: CFE CFE Comisión Federal de ElectricidadⓇ 16#181 2 Fibra E Distribution As of June 30, 2021, Fibra E CFE traded at 28.01 pesos per cetificate. On that day also, CFECapital carried out the distribution of the CFE FIBRA E, corresponding to the 13 week period from March 2021 to May 2021. The total amount distributed was 881.62 million pesos. Series Distribution per cetificate* A B 0.7725 0.7824 3 4 2021 remains a very complex year for the global economy due to the SARS- COV2 pandemic; However, the vaccination program in Mexico has favored the reactivation of the productive sectors, which in turn has promoted the transmission sector in order to consolidate its recovery. This distribution has been the highest corresponding to second quarters of previous years since the establishment of Fibra E. The next distribution will take place on September 30, 2021 * Certificados bursátiles fiduciarios de inversión en energía e infraestructura.. Source: CFE Capital For more information visit: http://cfecapital.com.mx/ CFE Comisión Federal de ElectricidadⓇ 17#19CFE Comisión Federal de ElectricidadⓇ ANNEXES#20ESTADOS DE RESULTADOS INTEGRALES CONSOLIDADOS CONDENSADOS AL 30 DE JUNIO DE 2021 Y 2020 (cifras en millones de pesos) Concepto Acumulado Variación Junio 2021 % Junio 2020 % 2021 vs 2020 Ingresos 285,963 100.00% 247,624 100.00% 38,339 15.48% Ingresos por venta de energía 185,343 64.81% 180,460 72.88% 4,883 2.71% Ingresos por subsidio 36,069 12.61% 9,706 3.92% 26,363 271.62% Ingresos por servicios de transporte de energía 9,343 3.27% 5,062 2.04% 4,281 84.57% Ingresos por venta de combustibles a terceros 42,279 14.78% 42,000 16.96% 279 0.66% Otros ingresos, neto 12,929 4.52% 10,396 4.20% 2,533 24.37% Costos 279,168 97.62% 185,504 74.91% 93,664 50.49% Energéticos y otros combustibles y transporte 132,483 46.33% 72,572 29.31% 59,911 82.55% Costo de combustibles vendidos por terceros 37,575 13.14% 11,054 4.46% 26,521 239.92% Remuneraciones y prestaciones al personal 33,058 11.56% 32,533 13.14% 525 1.61% Depreciación 22,488 7.86% 18,211 7.35% 4,277 23.49% Obligaciones laborales 4,643 1.62% 9,594 3.87% (4,951) -51.61% Mantenimiento, materiales y servicios generales 1,573 0.55% 1,246 0.50% 327 26.24% Impuestos y derechos 1,587 0.55% 1,529 0.62% 58 3.79% Costos MEM 34,048 11.91% 34,680 14.01% (632) -1.82% Otros gastos 11,713 4.10% 4,085 1.65% 7,628 186.73% Resultado de operación 6,795 2.38% 62,120 25.09% (55,325) -89.06% Resultado de financiamiento 16,067 5.62% 157,764 63.71% (141,697) -89.82% Otros gastos financieros, netos 2,347 0.82% 7,746 3.13% (5,399) -69.70% Gastos por intereses, neto 22,904 8.01% 23,881 9.64% (977) -4.09% Pérdida (utilidad) cambiaria, neta (9,184) -3.21% 126,137 50.94% (135,321) -107.28% Resultado antes de impuestos (9,272) -3.24% (95,644) -38.62% 86,372 -90.31% Impuestos a la utilidad 4,799 1.68% 1,137 0.46% 3,662 322.08% Resultado neto (14,071) -4.92% (96,781) -39.08% 82,710 -85.46% Fuente: Dirección Corporativa de Finanzas, Comisión Federal de Electricidad. Estados Financieros cifras a junio de 2021 CFE Comisión Federal de ElectricidadⓇ 18#21ESTADOS DE SITUACIÓN FINANCIERA CONSOLIDADA CONDENSADA AL 30 DE JUNIO DE 2021 y 2020 (millones de pesos) Concepto ACTIVO Acumulado Junio 2021 % Diciembre 2020 % Variaciones Activo circulante Efectivo y equivalentes de efectivo Cuentas por cobrar, neto 280,986 12.8% 233,567 10.8% 47,418 20.3% 148,086 6.7% 111,914 5.2% 36,172 32.3% 120,165 5.5% 109,765 5.1% 10,399 9.5% Inventario de materiales para operación 12,735 0.6% 11,888 0.6% 847 7.1% Préstamos a los trabajadores 16,361 0.7% 15,275 0.7% 1,086 7.1% Plantas, instalaciones y equipos, neto 1,191,552 54.1% 1,203,814 55.7% (12,262) -1.0% Instrumentos financieros derivados 15,768 0.7% 14,623 0.7% 1,145 7.8% Otros activos 55,750 2.5% 50,876 2.4% 4,873 9.6% Activo por derecho de uso, neto 470,907 21.4% 477,711 22.1% (6,805) -1.4% Impuesto diferido activo 169,966 7.7% TOTAL ACTIVO 2,201,290 100.0% 164,451 2,160,317 7.6% 100.0% 5,514 3.4% 40,969 1.9% PASIVO A corto plazo 189,816 8.6% 8.0% 172,594 17,220 10.0% Deuda a corto plazo y porción circulante de la deuda a largo 38,090 1.7% 2.5% -16,066 -29.7% 54,156 plazo Otras cuentas por pagar y pasivos acumulados 115,082 5.2% 87,863 4.1% 27,492 31.4% Impuestos a la utilidad 8,791 0.4% 6,393 0.3% 2,398 37.5% Impuestos y derechos 4,117 0.2% 3,513 0.2% 329 8.7% Pasivo por arrendamiento a corto plazo 23,736 1.1% 20,669 1.0% 3,067 14.8% A largo plazo 1,444,912 65.6% 1,410,411 65.3% 34,500 2.4% Deuda a largo plazo 357,292 16.2% 309,392 14.3% 47,900 15.5% Beneficios a los empleados 488,494 22.2% 487,325 22.6% 1,169 0.2% Otros pasivos a largo plazo 24,952 1.1% 25,608 1.2% (657) -2.6% Pasivo por arrendamiento a largo plazo 574,174 26.1% 588,086 TOTAL PASIVO 1,634,728 74.3% 1,583,005 27.2% 73.3% (13,912) -2.4% 51,720 3.3% Patrimonio 566,562 25.7% 577,312 26.7% (10,751) -1.9% Aportaciones recibidas del Gobierno Federal 5 0.0% 5 0.0% 0.0% Aportaciones en especie (Gobierno Federal) 95,004 4.3% 95,004 4.4% 0.0% Resultados acumulados 57,289 2.6% 74,305 3.4% (17,016) -22.9% Otras partidas de resultado integral 394,295 17.9% 389,822 18.0% 4,473 1.1% Participación no controladora 19,969 0.9% 18,176 0.8% 1,792 9.9% PASIVO + PATRIMONIO 2,201,290 100.0% 2,153,005 100.0% 40,969 1.9% Fuente: Dirección Corporativa de Finanzas, Comisión Federal de Electricidad. Estados Financieros cifras a junio de 2021 CFE Comisión Federal de ElectricidadⓇ 19#22Investor Relations [email protected] CFE Comisión Federal de ElectricidadⓇ