#1Mrttrtta CFE Comisión Federal de Electricidad® CFE Investor Presentation Results as of March 31, 2021 Investor Call May 5, 2021#2Disclaimer CFE Comisión Federal de ElectricidadⓇ The information contained in this presentation (the "information") has been prepared by Comisión Federal de Electricidad ("CFE" or "the company") and may contain forward-looking statements on the future performance of the company, economic, general industry information that reflect CFE's expectations and/or projections. These expectations and/or projections can also be made in oral or written form during this presentation, in the ensuing questions and answers session, during individual discussions, in press releases and statements to the media, and in other kinds of written or recorded materials, as well as in oral statements made by our officers, directors or employees to third parties. These expectations and/or projections may differ substantially from future events. Furthermore, CFE and its officers, directors and employees bear no responsibility or obligation whatsoever regarding the veracity, accuracy or deviation of the information set forth in this presentation versus other information provided, published, or otherwise made available by the company, its officers, directors, and employees, or from any other source, to the general public or to an individual party. The information hereby presented is provided with informative purposes solely, must not be considered part of a binding obligation for CFE to conduct any present, future, or potential transaction of any form or kind, and shall not be deemed as any sort of investment, partnership, association, securities purchase, legal, accounting, financial or economic recommendation whatsoever. No independent third party has revised or provided an opinion on the historical data, value, or performance of the company offered in this presentation. All information speaks only as of its relevant dates, and CFE undertakes no obligation to update or revise any of it, whether as a result of new information, present, potential, or future events, or otherwise. For more relevant information on CFE, the company encourages the access of the Internet sites of Bolsa Mexicana de Valores, S. A. B. de C. V. (www.bmv.com.mx) and Comisión Nacional Bancaria y de Valores (www.cnbv.gob.mx), as well as its own site at www.cfe.mx This presentation is not an offer to sell any securities and is not soliciting an offer to buy any securities. 1#3CFE Key Highlights in 1Q 2021 CFE Comisión Federal de ElectricidadⓇ EBITDA was 18.8 billion pesos Total Income in 1Q 2021 was 152.6 billion pesos Total assets reached 2.21 trillion pesos We have increased our customer base to 45.9 million from 44.7 million accounts in March 2020, reaching 98.9% of the Mexican population A 3.9% decrease in 1Q 2021 of the average price per kWh from 1.961 pesos in 1Q 2020 to 1.885 pesos Source: CFE CFE 2#4CFE CFE at a Glance in 1Q 2021 CFE at Glance in Total Assets: Current Assets: 2,206 billion pesos 225.8 billion pesos Equity: 539 billion pesos Total Revenue: 152.6 billion pesos Operating Result: (5.8) billion pesos Distribution Grid: CFE Comisión Federal de ElectricidadⓇ Generation Capacity: 58,655 MW Transmission Grid: 110,305 km 872,161 km , Electricity Generated in 1Q 2021 (1): 47 TWh Fiber Optic Grid: 55,263 km CFE generates 64% (2) of the electricity in Mexico and provides power to 98.99% of the population. Total Revenues: 22.0% Operative Costs: 63.6% 1Q 2021 vs. 1Q 2020 User Accounts: 2.6% Subsidy: 1.3% (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 3#5Account Evolution and Breakdown Count Evolution and User Accounts (millions) As of 1Q 2021, our user accounts reached 45.9 million Account Breakdown by Sector As of 1Q 2021 Industrial 0.8% Commercial Services 0.5% 12 6.8 4.9 18.7 34.2 45.6 45.9 44.5 42.2 42.5 40.8 9.7% CFE Comisión Federal de ElectricidadⓇ Agricultural 0.3% 88.7% Residential Revenue Breakdown by Sector As of 1Q 2021 Services Agricultural 3.8% 2.3% Commercial 12.3% 22.5% Industrial 1970 1980 1990 2000 2010 2016 2017 2018 2019 2020 1Q21 59.1% Residential Source: CFE#6Evolution of Installed Generation Capacity (MW) 5,401 13,692 24,442 35,869 51,611 CFE Comisión Federal de ElectricidadⓇ 59,003 57,872 58,655 55,564 55,891 55,265 1970 1980 1990 2000 2010 2016 2017 2018 2019 2020 1Q 2021 Of that total, 73% corresponds to CFE, and 27% belongs to Independent Power Producers. Source: CFE 5#7Installed Generation Capacity Installed Generati As of March 2021, clean technologies accounted for ~ 26.0% of total installed capacity. CFE Comisión Federal de ElectricidadⓇ Туре Plants Active Units CFE's Transition Towards Cleaner Electricity Generation IPPS* 33 504 ■ Steam Hydroelectric 60 167 Turbogas 41 92 17.1% ■ Combined Cycle Combined Cycle 19 60 26.2% 80 ■ Turbogas Steam 21 58 Internal Combustion LO 5 (Diesel) Geothermal 4 27 27 27 27 9.3% Coal-Fired 3 15 Wind-Driven & 4.4% 5 10 0.6% Photovoltaic 42.4% ■Internal Combustion ■ Coal ■ Clean Technologies • Nuclear Power 1 2 Hydroelectric Nuclear Wind Efficient cogeneration Geothermal Bioenergy Photovoltaic Total 192 982 Source: CFE *Independent Power Producers#8Transmission and Distribution Infrastructure ion and Distribution intre National coverage through 9 offices covering 55 zones. The transmission and sub- transmission lines represent 2.7x the circumference of the Earth CFE Comisión Federal de ElectricidadⓇ USA OMPERIAL V.) ° (U.S.A.) (USA) DIABLO AZCARATE Lox O POEA OVAL SIA ON PEN SYC FIC OAU PLO ADUO SYS OZA 8 ARX JRB PYCOYD c EL TH CEY HRCO TCC/ TUL QPM PMXO OLFO JA Ccz APA Z 0 FORT TOM MAN TTE KMC AC O 840 O IRO NEC РНО VAE TUV EVDO VIC сто CFO AMP POVAJ OTBU CRO AVDF 200 ECA EPO EX PBD A MZT CFDO QAT BOX OLEN (USA) KCRO CPM ATK HLI CYCO OSMN BACO CND PCCN BAN AVI AUA OCU ° AML NOP SOLVE JLC XAL MAD 0. MPT CPO MDO O REM OPEN CHNO LAP OIXL LRP DVA PEV BRAUR V ves HOL MOR PIE MUS осто ARA OZAR AYO ENO NAVO REC CEO USA) VOG BOO EST O TEM ENGO AM NURO LAA CHRY BR ° YA VER MAGA CRU PALO MULO MUN TONS O CJM хосо LIVU O LHOO bru O CMU LA FRO Aucou RAI (Sharyland) AQU ETR FOR CIL AND RAP voax CUI MYA CAM NACO PET (EAP) ESCAM GRR RET ARBO TEC ATROM O TOL OTTC OCRE OPDB ACOA 0 MORO TOP ATE O AHEX TP YCP NO CAC O INERY LA LIZ LIN 100 CMU TRS HAD MTF SLR PNQO MZD JEP JOM TECO PZA LLCO-OUTE -0 30 PMY EPS QUE MZL DETALLE DEL AREA METROPOLITANA DE LA CIUDAD DE MÉXICO SLIPO OSLO ATC SIMBOLOGÍA AGM LYE KD ALS LS VOLIT OAGI CPY CNITOA QA PAE ALT TED OLNI BAMES ANP POS CENTRAL GENERADORA VTRO TUH THOT TTUVOMIA CENTRAL EÓLICA CUN FRAU O CENTRAL FOTOVOLTAICA SUBESTACIÓN LINEA DE 400 KV ATO O PROT ATN MAN OCCM AV CEL MTA LT FUTURA DE 500 KV HVDC CRP QUPP ANDO OAIX OM LT AISLADAS EN 400 KV OPERANDO EN 230 SNEA DE 230 KV MAM Ou ALBO HEXA 85720 OTPX A O OUR MEA OTU LACO CABLE DE 230 KV LINEA DE 161, 138 KV LINEA DE 115, 69 KV CABLE DE 115 LÍNEA DE 34.5 KV CABLE DE 34.5 KV CEN NE CMU MALO 100 VILA OLA TCL LIS OCH ESA LOCAO MAU SLC gu AUL INS 111 CU O OMO LCP NKS: EDO BELICE OLAI C Jos TSP MIT SABANG BAULVU LVN THP LBR ~110,305 km of transmission and sub-transmission lines covering the 32 Federal Entities of Mexico ~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 7#918.0% Evolution of Technical and Non Technical Distribution Losses 16.0% Luz y Fuerza del Centro liquidation 16.1% 14.0% 11.8% 12.5% 12.0% 11.6% 11.2% 10.6% 11.7% 11.6% 11.0% 10.0% 8.0% 6.0% 15.3% 15.9% 13.9% 14.6% CFE Comisión Federal de ElectricidadⓇ 13.1% 12.4% 11.7% 11.2% 11.6% 11.0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Source: CFE Distribución#10115.0% 110.0% 105.0% Electrical Energy Sales Collection Index* Sales Collection In 101.2% 100.0% 98.3% 95.0% 95.3% 97.2% 90.0% 85.0% 80.0% January February Source: CFE Suministro Básico * Energy sales income/billing March 2019 101.1% 97.4% 95.2% 99.4% 93.7% 96.4% 95.5% 109.6% Average: 97.9% 100.0% 99.1% 97.5% 96.5%- 97.4% 97.5% 95.2% 94.5% 94.0% 93.9% 93.8% April May June July August September October November December January February March April May June July August September October November December 2020 January CFE Comisión Federal de ElectricidadⓇ 111.9% 100.8% 94.1% 95.9% February March 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 years average. 2021#11= Financial Results for 1Q 2021 CFE Comisión Federal de ElectricidadⓇ Total Income 152.6 billion pesos Operating Costs 158.4 billion pesos During 1Q 2021 total income was 22.1% higher than 1Q 2020. Sales of electricity (86.9 billion pesos) register a decrease of 4.4 billion pesos versus the same quarter last year. This effect was compensated mainly with sales to third parties of 23.6 billion peso as result of the begining of economic recovery of industrial and manufacturing sectors. Operating costs increased 67.8% versus 1Q 2020. Energy and Other fuels supplies increased 68.3 billion pesos (33.0%) versus 1Q 2020, caused by the disruption event of Natural Gas prices. Operating Results (5.8) billion pesos Financial Costs 13.1 billion pesos Exchange Rate Loss 13.9 billion pesos Taxes 2.8 billion pesos The Operating Result decreased 36.4 billion pesos versus 1Q 2020, due to the increase of Natural Gas prices observed in Texas, US. Financial costs decreased 4.8 billion pesos versus 1Q 2020 as a result of the strategies implemented to reduce and mitigate the adverse effect of Natural Gas prices. As of March 2021, CFE registered a foreign exchange income as result of the apreciation of 3.2% of mexican peso versus the same quarter last year. Taxes were 2.8 billion pesos lower than 1QTR 2020. II Net Result (35.6) billion pesos Total Assets 2,206 billion pesos Source: Financial Statements CFE Net result of (35.6) billion pesos due to the gas price disruption of prices caused by extreme weather in Texas, U.S.A., during February 2021. Total Liabilities 1,667 billion pesos Equity 539 billion pesos 11#12• • Income mar-21 Total Income CFE Comisión Federal de ElectricidadⓇ Income mar-2020 3.0% 4.0% 2.1% 7.3% Energy transport services 13.9% 16.8% Energy sales 152.6 3.9% 125.0 Billion ■energy sales to third parties Billion pesos pesos 18.7% 57.0% ■ Subsidy 73.2% ■ Other income In 1Q 2021, Total income increase by 22.1%, compared to 1Q 2020, due to larger third party fuel sales of 23.6 billion pesos which compensated the 4.9% decrease in energy sales. Subsidy income remain constant at around 20 billion pesos, while energy transport and other income reached 8.1 billion. Source: Financial Statements CFE 12#13Operating Costs Operating Costs mar-2021 5.6% 10.0% 1.8% 0.5% Operating Costs mar-2020 18.3% CFE Comisión Federal de ElectricidadⓇ ■ Energy and fuel supplies ■Third party energy and fuel supplies ■Salaries and related costs 10.1% 43.8% 94.4 mil mdp 10.6% 158.4 mil mdp 51.8% 0.8% 5.2% 0.7% 0.6% 19.1% 18.3% 2.8% ■ Maintenance, materials and general services ■ Taxes and duties ■ Whole Electricity Market (MEM) costs Employee benefit costs Depreciation During 1Q 2021 'Energy and fuel costs' increased by 40.6 billion pesos, while 'Third party energy and fuel supplies' increased 27.6 billion pesos due to the disruption event in Texas, USA, caused by extreme weather conditions which stopped natural gas supply. 'Maintenance, materials and general services' decreased 1.9 billion pesos, and 'Salaries and related costs', decreased by 0.4 billion pesos. Source: Financial Statements CFE 15#14Financial Information 1Q 2019, 1Q 2020 and 1Q 2021 Total Revenues (billion pesos) 119.5 125.0 1Q-2019 1Q-2020 125.4 1Q-2019 Operating Costs 152.6 CFE Comisión Federal de ElectricidadⓇ Average Price (pesos/kWh) 1.950 1.961 1.885 1Q-2021 1Q-2019 (billion pesos) 158.4 94.4 1Q-2020 Source: CFE, Financial Statements BMV, CFE Suministro Básico 1Q-2020 Operating Results (billion pesos) 30.6 1Q-2021 -5.9 1Q-2021 1Q-2019 1Q-2020 -5.8 1Q-2021 13#1520.2 Mar-2019 5.6 Financial Information 12:2019, 1Q 2019, 1Q 2020 and 1Q 2021 EBITDA* (billion pesos) 57.4 Mar-2020 Debt to EBITDA** (number of times) 4.9 363.5 18.8 Mar-2021 Mar-2019 CFE Comisión Federal de ElectricidadⓇ Financial Debt (billion pesos) 418.8 Mar-2020 436.7 Mar-2021 EBITDA ** to Current Liabilities (number of times) 6.4 4.55 3.96 2.38 Mar-2019 Mar-2020 Mar-2021 Mar-2019 Mar-2020 Mar-2021 Source: CFE, Financial Statements BMV **EBITDA anualized fpr last 12 months *EBITDA adjusted for net labor cost of the period 14#16Source: CFE 20277 2022 2023 363,549 Debt Profile 1Q 2021 2021 CFE Comisión Federal de ElectricidadⓇ Discounting the effect of currency fluctuation, increase on debt balance from December 2020 to March 31 2021 was of 17.7%. MOODY'S Debt as of March 31, 2021 (millions of pesos) Baa1 Negative Debt as of Dec 31 2020 New Debt Debt Maturity Profile as of March 31, 2021 (millions of pesos) 2024 2025 225 2026 67,531 3,201 8,472 436,651 20,605 STANDARD & POOR'S 46,926 BBB Negative 20,605 Amortizations Currency Fluctuation Available Funding Working Capital Pidiregas 62,556 17,002 53,726 47,381 47,184 39,231 5,963 11,480 19,571 20,605 33,637 30,468 11,650 25,985 10,873 23,738 17,318 4,210 17,943 15,042 41,221 16,464 4,165 35,902 34,155 24,205 1,873 24,949 27,582 4,084 1,424 12,152 22,764 10,004 21,775 16,070 19,572 2,847 15,040 5,166 5,038 6,263 1,236 2027 2227 2028 - 2031 2032 2033 - 2041 2042 2043 2044 2045 19 2046-2051 416,046 Fitch Ratings BBB- Final Value Stable#17Disciplined Financial Risk Management 1Q 2021 After Hedging Before Hedging Debt by currency Domestic 36.1% 65.6% Domestic *after hedging, 99% of the debt in USD Source: CFE 63.9% 34.4% Foreign Debt by rate type Floating Rate Floating Rate Foreign* 30.5% 27.1% CFE Comisión Federal de ElectricidadⓇ 69.5% Fixed Rate 72.9% Fixed Rate 16#18Source: CFE Relevant Financing Transactions 1Q 2021 1Q 144 A Reg S Bond CFE Comisión Federal de ElectricidadⓇ On February 2, 2021, CFE issued a 2 billion dollar 144 A Reg S bond in two tranches. Part of the procedes (1 billion usd) will be used to refinance the CFE- 21 bond which matures on May 26, 2021, and the rest will be used for corporate purposes. Amount (USD millions) Maturity Yield 1,200 10 years 3.348% 800 30 years 4.677% The yields for both tranches are the lowest in CFE's history for bonds with similar duration. 18#19Fibra E 1 As of March 31, 2021, Fibra E traded at 27.57 MXP per certificate. 2 On that day also, CFECapital carried out the distribution of the CFE FIBRA E, corresponding to the 13 week period from December 2020 to February 2021. The total distributed amount was 651.3 million pesos: Series Distribution per Certificate* A B 0.575 0.565 3 4 2020 proved to be a highly complex year for the global economy, due to the SARS-COV2 pandemic. However, the electricity transmission sector proved to be resilient, mantaining its performances throughout the year. This distribution shows the performance of the electricity transmission sector during a period of gradual economic reactivation, and that of the productive sectors which made increasing reimbursements to transmission. The next distribution will take place on June 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Ⓡ 18#20ANNEXES CFE Comisión Federal de ElectricidadⓇ 19#21Unaudited Condensed Consolidated Statements of comprehensive income (MXN millions) CFE Comisión Federal de ElectricidadⓇ Change Concept Acumulated March 2021 March % % 2021 vs 2020 2020 Revenues 152,578 100% 125,002 100% 27,576 22% Electricity supply service revenue 86,986 57% 91,475 73% (4,489) -5% Subsidy income 21,279 14% 21,000 17% 279 1% Freight revenue 4,613 3% 2,618 2% 1,995 76% Third party fuel revenue 28,551 19% 4,871 4% 23,680 486% Other income, net 11,149 7% 5,038 4% 6,111 121% Costs 158,412 104% Energy and other fuel supplies 81,994 54% 94,419 76% 41,327 63,993 68% 33% 40,667 98% Energy and other fuel supplies third party 30,287 20% 2,621 2% 27,666 1056% Salaries and related costs 16,871 11% 17,314 14% (443) -3% Depreciation 15,801 10% 17,315 14% (1,514) -9% Employee benefits costs 8,862 6% 9,508 8% (646) -7% Maintenance, materials and general services 2,916 2% 4,886 4% (1,970) -40% Tax and duties 953 1% 678 1% 275 41% Wholesale Electrical Market costs (MEM) 728 0% 770 1% (42) -5% OPERATING RESULTS (5,834) (4%) 30,583 24% (36,417) (119%) Comprehensive financing result, net 26,969 18% 151,764 121% (124,795) (82%) Financial income and cost, net 1,769 1% Interest expense 11,335 7% Foreign exchange (income) loss 13,865 9% NET LOSS INCOME BEFORE INCOME TAX AND OTHER COMPREHENSIVE INCOME Income tax NET INCOME (32,803) (21%) 2,804 2% (35,607) (23%) 6,382 5% 11,573 9% 133,809 107% (121,181) (97%) (4,613) (72%) (238) (2%) (119,944) (90%) 88,378 73% 618 (121,799) 0% 2,186 354% (97%) 86,192 71% 20 Source: Dirección Corporativa de Finanzas, Comisión Federal de Electricidad. Financial Statements as of March 31, 2021#22Unaudited Condensed Consolidated Statements of Financial Position (MXN millions) Concept Acumulated As of March 31 2021 % As of December 2020 % Assets Change Current Assets Cash and cash equivalents Accounts receivable, net Inventory of materials for operation, net Loans to employees Plants, facilities and equipment, net Derivative financial instruments Other assets Right of use assets 277,392 10% 134,827 5% 233,567 10% 111,914 5% 43,825 19% 22,913 20% 131,030 5% 109,765 5% 21,265 19% 11,535 1% 11,888 1% (353) -3% 15,861 1% 1,196,451 56% 18,040 1% 54,705 3% Deferred tax assets 164,974 TOTAL ASSETS 2,205,898 478,475 22% 8% 100% 15,275 1% 1,203,814 56% 14,623 50,876 477,711 22% 586 4% (7,363) -1% 1% 3% 3,417 23% 3,829 8% 764 0% 164,451 2,160,317 8% 523 0% 100% 45,581 2% PASIVO Current liabilities 183,106 11% 172,594 8% 10,512 6% Loans and borrowings and current installments of long term 70,135 4% 54,156 2% 15,979 30% debt Other payables and accrued liabilities 84,591 5% 87,863 4% (3,272) -4% Other taxes and duties payable Income tax Current installments of lease liabilities Non Current liabilities Long term debt Long-term employee benefits Other long-term liabilities 2,253 0% 3,280 0% 22,847 1% 1,483,543 89% 366,216 22% 486,389 29% 6,393 1% (4,140) -65% 3,513 0% (233) -7% 20,669 1% 2,178 11% 1,410,411 65% 73,132 5% 309,392 14% 56,824 18% 487,325 23% (936) 0% Long term lease liabilities 29,219 2% 601,719 36% 25,608 1% 3,611 14% 588,086 27% 13,633 2% TOTAL LIABILITIES 1,666,649 100% 1,583,005 73% 83,644 5.3% Equity 539,249 24% 577,312 27% (38,063) -6.59% Contributions received from the Federal Government Contributions in kind received from the Federal Government 5 0% 5 0% 0% 95,004 4% 95,004 4% 0% Accumulated results 34,036 2% 74,305 3% (40,269) -54% Other comprehensive income 390,852 18% 389,822 19% 1,030 0% Non-controlling interests LIABILITIES + EQUITY 2,205,898 19,352 1% 100% 18,176 1% 1,176 6% 2,153,005 100% 52,893 2% Source: Dirección Corporativa de Finanzas, Comisión Federal de Electricidad. Financial Statements as of March 31, 2021. 221 21#23CFE Comisión Federal de ElectricidadⓇ Investor Relations [email protected] 22 22