Energy That Transforms Us

Sustainability Report 2019 > Energy That Transforms Us

Sustainability Report 2019 > > 2 — 3 Table of Contents

Impact of Letter from Letter from the COVID-19 the Chairman the CEO Pandemic 01 02 03 About Us Sustainability Governance, Ethics and Integrity 04 05 06 Economic Environmental Social Performance Performance Performance 07 GRI Content Index > 4 — 5 Impact of the COVID-19 Pandemic

n March 11, 2020, the World Health Organization contractors’. Measures derived from COVID-19 measures and news in relation to protocols and 1. Take care of our people. Always prioritize declared the Coronavirus (COVID-19) are significantly affecting the national, regional other Covid-19 news through internal health and safety, in compliance with health Ooutbreak a global pandemic and global economy, due to impacts on the chain communication channels. regulations. Protect the jobs of our people. as it rapidly spread around the world, having of supply and significant increase of economic • A dedicated page on COVID-19 was created on Collaborate with employees who require affected more than 190 countries. Most of the uncertainty, as evidenced by higher volatility of the Intranet, where employees have access to support, encouraging teamworking to come out governments are taking restrictive measures to asset prices and exchange rates, and a decrease all information: protocols, rules, news and stronger and better. prevent propagation. in long-term interest rates. advice. 2. Safeguard revenues and costs. Minimize • A section on Covid-19 was added to the website costs to those that are strictly required. Work In Argentina, where the company operates, on To cope with this pandemic and considering that www.ypfluz.com with information relevant to closely with clients to make sure that they will March 12, 2020 Decree 260/2020 established the electric power generation has been declared an communities and stakeholders. continue paying for supplied energy. Reinforce sanitary emergency status to manage COVID-19, essential activity, the company has implemented • ­ Needs in the communities near the sites where strict discipline in investments, prioritizing those and on March 19, the National Government issued protocols and actions intended to protect people the company operates were identified through that generate income as early as possible. Decree 297/2020 establishing a mandatory and and remain in operation during the crisis. The regular online meetings. Sanitation and hygienic 3. Support strategic clients and suppliers. Stay preventive lockdown. The lockdown has been main actions include the following: supplies and PCR kits were donated to nearby close to clients, understand their needs and how repeatedly extended and is still in force. Electric hospitals, as well as sanitizing products and we can help them by build on and improve our power generation was declared an essential • Early in March 2020 we created a COVID-19 face masks to other nearby entities. relations with them in the long term. Honor service and was permitted to continue operating Crisis Committee, which holds daily meetings • Drills of suspected cases are being carried out energy delivery commitments. Maintain since the beginning of the quarantine period, while to monitor the situation, discuss published at all sites to make sure that an adequate availability and power generation of equipment electrical infrastructure works were declared regulations and recommendations and to response is in place in case of a potential case in operation. Deliver projects completion. Detect essential as of April 6. So far, the measures implement measures to protect the company, of COVID-19. strategic suppliers willing to support the company adopted as a result of the pandemic include, its operations and - most importantly – its • Testing and additional preventive measures have and work in the long term. among other, prohibition of dismissals without people. The Committee has published a series been established for workers from locations 4. Emerge from the crisis stronger. Develop and good cause due to personnel cutdown or force of Protocols and Procedures to prevent with epidemiological transmission. apply new technologies to improve performance. majeure, general restriction on the circulation of COVID-19, to ensure sanitary conditions of the Have a team ready to grow. Use this period to people, general traveling restrictions, suspension facilities and continued operations. It has also All employees of the company have been adapting learn, train, improve operations, share of visas, partial or total shutdown of public and published at a fast pace to innovate in the way they work, knowledge and grow. Continue to work strongly private institutions, suspension of sports events, a Works and Services Protocol that applies to all including those who work from home and those in new projects, so that they are “ready to start” restrictions on operation of museums and tourist personnel involved in construction projects, who are performing essential tasks at the plants. and able to grow our market share in the attractions and vacation extension. including contractors’ and subcontractors’ They are all learning every day to overcome the generation segment. personnel. obstacles that this pandemic brought to the Through Decree 576/2020, on June 29, the • The company implemented a remote operation organization of their daily routines, making efforts Government adopted more restrictive measures system to minimize the potential impact of COVID- to maintain the efficiency required from each role in the City of Buenos Aires and surrounding areas 19, focused on personnel’s health and safety. and coordination as required by the team. (AMBA), and it allowed provincial governments • Workers were issued circulation permits to to ease or impose restrictions on activities based ensure their transfer at their workplaces While the current context is overly complex, on certain parameters considering the local without problems. given that we are faced with a global health, development of COVID-19. While all provinces and • The company adapted its employee training economic and financial crisis, the company has districts have permitted operation of essential program to a full online mode and developed decided to focus on the following priorities: services, many of them apply restrictions, or new content such as cross-area talks and online lockdown periods that hinder normal training delivered by ITBA, among others. development of the company’s activities and its • Employees were kept continuously updated of > 6 — 7 Letter from the Chairman

e have been experiencing a large direct and transparent communication with energy transformation in these last our shareholders, clients, suppliers and the W years as a result of the growing communities where our thermal plants and demand for new forms of supply, including wind farms are located. taking care of natural resources and the planet to combat the effects of climate change. We celebrate being able to present our second YPF Luz Sustainability Report -a Electric energy is a fundamental resource document that reflects how we work, the and at YPF Luz we are committed to generate results of our management in 2019 and our it in a safe, efficient and sustainable manner vision of the future in terms of economic, to contribute to the development of our social and environmental impacts. country, its industries, its economy and the daily wellbeing of all Argentine people. The report is prepared under the international Global Reporting Initiative (GRI) We have incorporated new technology and standard and was subjected to an analytic efficient processes to generate natural gas- review process by Deloitte, which ensures based thermal energy, and to ensure greater transparency and accuracy of the availability of energy at all times, which is data presented. supplemented with renewable energy, thus In addition, it is in line with Sustainable taking advantage of wind, one of our Development Goals of the 2030 Agenda country’s natural resources with unique approved by the United Nations. characteristics in the world. I invite you to get to know the 2019 We are a young power generation company sustainable management of our business. that has invested over 1500 million dollars in Argentina in only 7 years and we now have 9 operation centers and 7 projects under construction in 4 provinces.

We endeavor to improve our work day after day to provide a safe, sustainable and quality Santiago Martínez Tanoira service, always protecting our collaborators Chairman of the Board and strengthening the relationship through > 8 — 9 Letter from the CEO

t YPF Luz we are responsible for generating ISO 50.001 in Tucumán and La Plata, reaching an For this reason, this report includes a special annex electric energy, a resource that is essential aggregate number of 6 operating centers with this on COVID-19 which describes how the pandemic Afor all Argentineans. Doing so in an efficient certification. We also obtained the ISO 45.001 affected our industry and our business. We also and sustainable manner is key to our growth, certification for Workplace Health and Safety describe the measures we are taking to safeguard always caring for the environment and sustaining management at the La Plata Cogeneration Plant. the health and safety of our workers and the our ongoing commitment to our stakeholders, in Standards help build a culture of excellence and continuity of our operations and construction the context of constant transformation. No doubt reach results expected from the management works, and how we developed and implemented this is the way towards the growth we have chosen system promoting efficient, reliable, transparent protocols and procedures to ensure that the at YPF Luz. and safe operations and processes. essential service we provide is always available.

2019 was a year of hard work, achievements and The Manantiales Behr Wind Farm exceeded our learning that have made us stronger as a team. capacity expectations, and it ranks among the most Throughout the year we have invested an aggregate efficient worldwide. In 2019 the wind farm was the amount of USD 494MM and our EBITDA reached largest renewable energy producer in the country USD 219MM. We had a successful debut in national and generated at least 25% more than any other and international financial markets, with our first renewable energy farm in Argentina. note issuances, which allowed us to fund the Martín Mandarano growth of the company. This reflects the strong We managed to increase water use efficiency, Ceo of YPF LUZ interest and confidence of investors in YPF Luz. reducing 15.5% the use of this key resource required in most industrial processes, including Today we are generating electric energy for almost electric power generation. two million Argentines from nine operating centers and we continue investing in the country. In line Our main differentiating attribute is our people. For with our diversification approach, we are building this reason, we invested in training at all levels, 637MW of electric power thermal and renewable totaling 21,224 hours of training and more than 52 energy, through seven projects. hours per employee on average. And we continue growing as a team. We are 338 employees with a On June 16, there was an unprecedented and solid culture that is transmitted to each one of historical outage or “black out” nationwide that those who are part of our value chain. raised an alert among all generators in the country to give a fast response and provide the National We articulated encounters with leaders from the Interconnected System (SADI) with the energy communities where we have operations and required to restore the service. The professionalism projects, in spaces that promote communication and coordinated work of our operations team and engagement. We launched the “YPF Luz managed to make available to the grid in a short Volunteers” program in which 30% of the company time all our energy in a safe manner, to meet the employees participated with commitment to needs of Argentines. implement activities with a focus on education and improved quality of life and infrastructure. From an environmental perspective, we continue focusing our efforts on minimizing the impact of No doubt, the exceptional context of the COVID-19 our operations and maximizing the efficiency of our pandemic today poses a new challenge that demands generation processes. In line with these efforts, we fast, efficient and focused responses to ensure certified two new thermal plants in accordance with business sustainability, always caring for our people. > 10 — 11 01. About Us YPF LUZ in Numbers GRI Content 102-7

We generate power to supply for 3,500,000 households.

ECONOMIC PERFORMANCE USD 219 MM USD 494 MM USD 332 MM EBITDA Investments Sales revenues 6,459 GWH 1,819 MW 637 MW Energy sold Installed capacity Under construction

UNDER CONSTRUCTION 2,673,465 455,298 KTON -15.5% TN of emissions liquid effluents for Water extraction

of Eq CO2 irrigation of Loma Campana Green Lung 100% 8% 6 of effluents used for Energy generated from ISO 50.001 irrigation at Loma Campana renewable sources certified plants

SOCIAL PERFORMANCE 338 20% 21,224 Employees Women Employee training hours 30% 0.90 0.74 Participation in Corporate Driving Accident Frequency Volunteers Program behavior index Rate (AFR) 90% 1,500 Driving Social investment Behavior Index beneficiaries

GOVERNANCE AND COMPLIANCE 10% 1,200 Women in Verified management positions1 third parties 1 Women in the Board of 100% 93% Directors, Management Management team trained Personnel trained Team and Audit in Compliance in Compliance Committee. About Us Sustainability Report 2019

Company Profile

GRI Content 102-1, 102-2, 102-3, 102-4, 102-5, 102-6, 102-7, EU1

PF LUZ2 is a company formed by a Diversified Portfolio passionate and committed team, with Y the vision of generating new energy for Argentines; more sustainable, reliable and efficient power that contributes to the energy Renowned development of the country and the markets in Sponsors which we operate, generating sustainable power from available natural resources, and providing competitive energy solutions to our customers Efficient and Sustainable with a focus on developing and strengthening Technology our people as a differentiating element.

We endeavor to lead the development of renewable Assets in operation and energies and efficient and reliable thermal projects under construction energy power generation, using state-of-the-art with geographical diversity technology to supply YPF, industrial clients and the Argentine electricity market. For this purpose, we generate power from different assets, and 2 YPF Energía Eléctrica S.A. is a corporation we are building new projects across the country. organized under the laws of the Argentine Republic. Its legal address is Av. Córdoba 111, 14th Floor, City of Buenos Aires.

We are a leading company dedicated to power generation in Argentina. Currently, we have an installed capacity of 1,819 MW that is supplied to the wholesale and industrial markets, and we are building additional capacity of 637 MW. About Us Sustainability Report 2019 > 14 — 15

MAP OF OUR POWER GENERATION ASSETS. We have an operational installed capacity of MISSION, VISION AND 1,819 MW, including a 30.76% stake in Central VALUES Dock Sud, and we contribute to the wholesale and industrial market with about 4.6% of the GRI Content 102-16, 102-26 maximum installed capacity in Argentina and 5.9% of the power demanded in 2019. In addition, We contribute to YPF’s goal of we have construction projects for an installed Transforming lives through energy. capacity of 637 MW. OUR MISSION MW in Operation* We are a profitable, efficient and sustainable power generation company, focused on Tucumán Power Central Dock Sud CC streamlining natural resources and contributing Renewable Thermal MW Generation + GT - 869,5 MW to the energy development of Argentina and the MW 1,720 Complex - CC YPF LUZ PARTICIPATION 30.76% markets where we operate. 99 - 829 MW OUR VISION El Bracho GT To become one of the leading companies in the - 267 MW electric power generation sector, leader in Total renewable energies, operating under 1,819 El Bracho CC internationally renowned safety, technology, - 198 MW efficiency, and quality standards. MW under Construction STRATEGIC GUIDELINES La Plata Cogeneration I To achieve our mission and vision, YPF Luz’s Renewable Thermal MW - 128 MW activities are conducted within the framework MW 340 of the following strategic guidelines: 297 La Plata Cogeneration II Loma Campana I - 85 MW GT - 105 MW

Total Loma Campana II Los Teros I WF 637 GT - 107 MW - 123 MW Sustainable Leadership Competitive Loma Campana Los Teros II WF growth with in the power energy Este Engines - 52 MW *including the 30.76% stake financial generation solutions for - 17 MW in Central Dock Sud. profitability market, with our clients. and focus on discipline. renewable We supply CAMMESA (Compañía energies. Cañadón León WF Administradora del Mercado Mayorista - 122 MW Eléctrico), YPF and other industrial Manantiales Behr WF customers with conventional energy - 99 MW generated by thermal power plants Manantiales Behr Engines and renewable energy generated by - 57 MW the Manantiales Behr Wind Farm. Efficient, Develop and Social and reliable, strengthen environmental transparent, our people sustainability and safe as a in our IN OPERATION UNDER CONSTRUCTION We lead the Renewable Energy Forward Market operations differentiating operations. (MATER) and we are a reliable energy supplier and element. for important companies nationwide. processes. 1,819 MW 637 MW CC: Combined cycle THERMAL – 1,720 MW THERMAL - 341 MW WF: Wind farm More information at: RENEWABLE – 99 MW RENEWABLE - 296 MW GT: Gas turbine https://www.ypfluz.com/TheCompany About Us Sustainability Report 2019 > 16 — 17

Once the strategic guidelines were defined, the company. This information was used as an input The company’s 2019-2023 Strategic Plan envisages • Internal Processes Board of Directors initiated a value-setting in the definition process involving the an increase in the installed capacity of efficient - Ensure competitive costs that guarantee process based on inputs from YPF Luz Management Team together with regional thermal and renewable energy generation, effciency in operations. employees. Through an initial survey, employees managers and, finally, it was validated and through new developments and acquisitions. The - Establish effective communication with all indicated values that should represent the reviewed with employee representatives through plan contemplates objectives stakeholders. the Workplace Climate Committee. in four areas: - Efficient management in compliance with applicable regulations, policies and OUR VALUES • Financial processes. - Grow sustainably with profitability and - Reach excellence in social and value creation. environmental sustainability of our operations. - Remain creditworthy to secure growth. • Our People • Market and Context - Form a solid and consolidated team. - Increas market share with leadership in the - Keep a high level of technical expertise renewable sector. and professionalism. AGILITY COMMITMENT FOCUS ON RESULTS - Develop client portfolio of energy PPAs. - Strengthen leadership. - Become the main supplier of energy to - Feel proud of belong. YPF S.A. - Develop other business opportuities that ensure sustainability.

TEAM WORKING PASSION SUSTAINABILITY

Get to know our values in detail at: https://www.ypfluz.com/TheCompany#mision

HISTORY

With 7 years operating in the power generation market, we are proud of our results and the excellent team of professionals and investors accompanying us with effort, passion and commitment toward continued growth.

2011 2013 2016 2017 2018 2019

1,819 MW 1,819 MW 1,325 MW 1,096 MW 829 MW

August Central July November November January February July December Access to capital Corporate Volunteer Manantiales Behr 6 plants certified CC Tucumán Dock Sud Loma Loma Loma TG El La Plata Manantiales Manantiales markets through Program Wind Farm, largest under the ISO CC San Miguel (30.76%) Campana Campana I Campana II Bracho Cogeneración Behr - Stage I Behr - Stage II issuance of notes in capacity factor in 50001 standard de Tucumán 267 MW Este 105 MW 107 MW 267 MW 128 MW 50 MW 49 MW an aggregate amount Argentina 829 MW 17 MW of USD 500 million YPF August March June creates the YPF Energía GE becomes Launch of Electric Eléctrica is an investor Energy born More information at: division. https://www.ypfluz.com/IR/TheCompany About Us Sustainability Report 2019 > 18 — 19

Main Activities WE DEVELOP RENEWABLE Installed Capacity Material Issue: System Efficiency ENERGY PROJECTS GRI Contents 102-2, 102-9, EU1, EU11 We are committed to contribute to the energy development of the country in a responsible Engines Renewable manner, prioritizing quality, preservation of the 1% 6% POWER GENERATION PROJECT environment, and protection of people’s health Cogeneration LIFE MANAGEMENT and safety. We incorporate technology and Thermal 8% accompany Argentina’s growth with investments. 94%

> > > YPF Luz seeks to lead the country’s energy transformation, developing all potential of Project Development Engineering Contracting natural resources, to supply more and improved Gas Combined energy across Argentina, in line with the turbine cycle • Definition of Strategy • Identification of technical • Definition of procurement worldwide trend towards a cleaner energy 31% 54% • Identification and analysis of requirements based on modality (bidding process, transition. new developments technology (thermal, comparative pricing, direct • Identification of opportunities renewable, etc.) contracting) THERMAL ENERGY (ongoing projects) • Selection of adequate • Incorporation of new suppliers We operate highly efficient and available thermal Power Generation • Public hearing or consultation technology • Analysis of bids and negotiation power plants, that are supplemented by renewable • Environmental and social impact • Definition of modality (turn key • Approval and adjudication energy and optimize the use of a highly important evaluation contract or own construction resource in Argentina: natural gas. Engines Renewable management + technology). 1% 8% RENEWABLE ENERGY We operate renewable energy farms with the best Cogeneration Thermal technology available, at places where renewable 13% 92% > > > resources are best optimized, and we offer this energy to industrial clients under long-term Construction Operation and Maintenance Termination contracts. Gas turbine Combined • Management of suppliers with • Procurement management for • Disassembling of facilities. COGENERATION 21% cycle awarded Contracts. supplies, spare parts and fuels. • Demolition of buildings and We operate a cogeneration plant, which improves 58% • Monitor project progress and • Maintenance service construction works. efficiency and the environmental impact of compliance with technical management. • Final disposal of parts and industrial processes and increases reliability of Excluding Central Dock Sud. requirements. • Logistics and foreign trade. equipment. energy supply. • Logistics and foreign trade. • Insurance and performance • Cleaning and land restoration. • Insurance and performance bonds. DISTRIBUTED GENERATION 3 Based on data published by CAMMESA, Manantiales bonds. We operate distributed generation plants, which Behr generated 526 GWh of electric energy in 2019, are designed for industries or areas that are equivalent to 7% of total renewable energy CORPORATE MATERIALS AND SERVICES isolated from the national interconnected grid, generated in the country and 11% of wind power. > Hardware, software, foreign trade, audits, certifications, insurance > with reliable and efficient equipment. The wind farm generated at least 25% more than and others any other renewable energy farm in Argentina, thus More information at: becoming the largest productive farm in the https://ypfluz.com/Noticias/NoticiaCompleta/59 country. This is evidence of the great work We generate energy from our thermal WE CREATE THE ENERGY performed in the project development (since 2013) power plants and our wind farm, with INDUSTRIES NEED for site selection and excellence in operation of YPF innovation, technology, passion and We are focused on generating the energy needed YPF Luz’s Manantiales Behr LUZ in the first wind farm of the company. commitment, to efficiently take by each client, and we seek to provide the energy Wind Farm ranked first in 2019 advantage of the country’s natural solution most suitable to their needs, whether in terms of capacity factor of resources and contribute to sustainable through the supply of thermal or renewable renewable energy . Its average energy development nationwide and energies, cogeneration or distributed energy capacity factor was 61.8 % of worldwide. solutions, always focused on efficient, profitable the installed capacity during and sustainable solutions. the first 15 months of operation, with peaks of up to 71%. > 20 — 21

Commitments and Alliances GRI Content 102-12, 102-13

Managerial Contribution Work Position of Funds Team

Sustainable Development Team

Foundations and Companies Group (GDFE) (*) Ù Ù

Argentine Business Council for Sustainable Development (*) Ù

Argentine Network of the United Nations Global Compact (*) Ù

Sector Associations and Chambers

Electric Power Generators’ Association of Argentina Ù Ù Ù (AGEERA)

Argentine Wind Chamber (CEA) Ù Ù Ù

Argentine Chamber of Renewable Energies (CADER) Ù Ù Ù

American Chamber of Commerce in Argentina (AMCHAM) Ù Ù

* We participate in these organizations through the YPF Group.

Representatives of the company actively ANNUAL MEETING OF YPF participated in industry associations and in over FOUNDATION GRANTEES 30 academic and industry events in Argentina, Martín Mandarano participated in the Annual and 4 international events. Some of them Meeting of YPF Foundation Grantees, where he included: delivered a conference on renewable energies to 200 attendees. SOUTH AMERICAN ASSEMBLY We participated in the assembly that gathered RETURN ON ENVIRONMENT (ROE) AWARD the main leaders of the energy sector in the The YPF Luz’s team at Loma Campana was given region. Martín Mandarano, CEO of YPF Luz, the ROE Award, granted by Suez company, for participated as a member of the "Energy the results obtained in water treatment in the Transition" panel, in which he pointed out that power generation process, and final disposal in the combination of renewable and conventional the Green Lung (Pulmón Verde). This decrease energies is the future. in water use was 168,000 m3, equivalent to the annual consumption of 920 households4. ARGENTINA WIND POWER 2019 We participated in the forum of conferences and INTERNATIONAL MINISTERIAL FORUM exhibitions about the growth of renewable CLEAN ENERGY energies. In front of an audience of 200 people, We were distinguished for energy management Marcos Browne, then Chairman of the company, and reduction of emissions in La Plata led the panel "Conversation with YPF about the Cogeneration in 2019. energy transition in Argentina," and our CEO participated in the panel "Experiences, challenges and realities of wind energy generators," together with other representative of the sector. 4 Based on household use of four inhabitants according to the WHO. > 22 — 23 02. Sustainability Sustainability Management GRI Content 102-7

Sustainability is in our DNA. We are • Operational Excellence: We seek to a reliable power generation company, generate highly reliable, available and with efficient and sustainable efficient energy through operational operations. excellence in the management of our assets. We prioritize financial discipline Our corporate mission is to be a reliable, to ensure the company’s economic efficient and sustainable company. sustainability and profitability. Sustainability is, in addition, one of our corporate values, and one • Environmental Commitment: We focus of our strategic guidelines. For this reason, on efficient thermal power generation it is ingrained in our policies and that streamlines the use of gas and management processes. minimizes its environmental impact, and on renewable energies. We seek

We understand sustainability as the to diminish CO2 emissions from our working approach that drives ongoing and operations through technology long-term economic, social and improvements and energy efficiency. environmental growth. We pursue We help our clients implement energy sustainability in all our day-to-day actions solutions with low environmental impact. and decisions. We believe that sustainability requires a responsible effort, striking a • Care for our people: Our people’s balance between our business development health, safety and development are our and profit generation for our shareholders, priority. We actively strive to embrace and the creation of value for the country diversity and inclusion. We promote and the communities where we operate. social engagement of our employees through a corporate volunteer program. YPF Luz has developed a Sustainability strategy focused on the following elements: • Social commitment: We maintain fluid communication with the communities • Integrity: Compliance and integrity are where we operate. We manage the at the core of all our activities. We apply impacts of our activities on the these standards to our value chain. We community. We contribute through promote a compliance culture among programs that contribute to education, our employees. the environment and the infrastructure of the communities where we operate. We promote adoption of high standards in our value chain. Sustainability Sustainability Report 2019 > 24 — 25

Contribution to Sustainable Social Environmental commitment commitment Development Goals Relation with Corporate communities Culture GRI Content 102-12 Social investment in Training & development education and energy Organization climate Grievances and queries Health and safety t YPF Luz, we are committed to contribute SDGs that relate to reduction of carbon emissions mechanism Diversity to the achievement of Sustainable and sustainable production, in addition to Corporate volunteer actions A Development Goals (SDG) laid down by supporting education. Based on an analysis we the United Nations at a global level, with a more conducted (in which we used the SDG Compass significant contribution. We are focused on those tool), the SDGs considered to be Integrity & a priority for YPF Luz are: Compliance (negrita) at the Associated How we contribute center of all our Sustainable Development Goal activities Goals to the 2030 Agenda Ensure inclusive and equitable 4.3 Internship and New Professionals quality education and promote 4.4 Programs. lifelong learning opportunities 4.7 Energy Talks (600 participants) Care for our peple Operative excellence for all. Horticulture and recycling workshops (236 participants) Corporate Culture Financial discipline Training & development Operational excellence Organization climate Reliable energy Health and safety Focus on quality Ensure availability and 6.3 Treatment of 100% of our effluents. Diversity sustainable management of 6.4 100% use of liquid effluents irrigation Corporate volunteer water and sanitation for all. at Loma Campana actions 15.5% reduction in water extraction.

Ensure access to affordable, 7.1 527Gw of renewable energy These pillars are integrated in the business cross-business areas of QEHS, HR, Supply safe, reliable, sustainable and 7.2 297MW of renewable energy under strategy, are intended to carry out responsible Chain, Compliance and Institutional Relations. modern energy for all. 7.3 construction operations and strength YPF Luz’s long-term Energy efficiency in our thermal generation processes competitiveness, boosted by ethics and integrity In 2020 the company will create a Sustainability 6 plants with ISO 50.001 Certification. processes to broaden the impact of the initiatives. Committee and set medium- and long-term Generation of efficient, sustainable goals in line with the SDGs and the Paris and renewable energy. Meeting sustainability goals is the responsibility Agreement. Operational Excellence Policy. of each of the business areas and the Health, Safety, Environment & Quality Policy.

Promote sustained, inclusive 8.5 Internship and New Professionals and sustainable economic 8.8 Programs. growth, full and productive Health, Safety, Environment & Quality employment and decent work Policy. for all. Compliance Policy 338 employees, 769 suppliers, 72 contractors with 1874 active workers. Sustainability Sustainability Report 2019 > 26 — 27

Associated How we contribute Sustainable Development Goal Goals to the 2030 Agenda Stakeholders Build Resilient infrastructure, 9.1 Deployment of state-of-the-art promote inclusive and 9.4 technology and efficiency in GRI Contents 102-40, 102-42, 102-43 sustainable industrialization production processes. and foster innovation. Supply of renewable energy to industries. 527GW/h of renewable energy 297MW of renewable energy under construction Supply of renewable energy to 15 industrial clients

Make cities and human 11.6 Sustainable Cities Program in settlements inclusive, safe, Tucumán. resilient and sustainable. Renewable Energy Talks Horticulture and recycling workshops (236 participants) Forestry days (109 participants)

Fixation of 3024tn of Co2 through Loma Campana Green Lung

Ensure sustainable consumption 12.2 Generation of 6,451.4 GW/h of and production patterns. 12.5 efficient electric power (8% 12.6 renewable) Sustainability Report 34% reduction in liquid effluent discharges

Take urgent action to combat 13.1 Contribution of 100,000 seedlings climate change and its impacts. 13.2 to the Department of Environment 13.3 of Tucumán. Fixation of 3024tn of Co2 through We are committed to encouraging the To achieve our Strategic Guidelines, we believe the Loma Campana Green Lung, growth of the country and creation of value that it is essential to have a smooth and using 100% effluents for irrigation. for our shareholders, our clients and the constructive relationship with all our Health, Safety, Environment & communities where we operate. stakeholders. For this reason, we have mapped Quality Policy. and prioritized our stakeholders at each site, Forestry days (109 participants) and we have an action plan at each site.

Strengthen the means of 17.7 Associative project at Lules implementation and revitalize 17.16 (Tucumán) together with Arcor, the Global Partnership for 17.17 San Miguel, YPF Foundation and Stakeholders Who are they Communication and Dialogue Channels Sustainable Development. GDFE. Joint work with communities, Personnel Company Employees Meetings, presentations, quarterly meetings, various NGOs, other companies breakfasts, bulletin boards, e-mailings, and business chambers. Intranet, social media: Linkedin- Workplace, Energies Talks together with YPF Compliance Channel, Questions and Grievances Foundation (600 participants) Channel, Lunches with the CEO, Workplace Horticulture and recycling Climate Committee, Employee Service (SAE), workshops (236 participants) Corporate Website, Sustainability Report. Forestry days (109 participants) Trade Unions Trade unions representing Meetings with union representatives, letters, our employees. formal notes, Compliance Channel, Questions The analysis conducted to identify the impact of • Identification of priority Goals among stakeholders. and Grievances Channel, Corporate Website, YPF Luz on Sustainable Development Goals was • Identification of priority Goals in Argentina. Sustainability Report. based on: • Thorough analysis of Goals and objectives. Investors National and International. Annual Report and Financial Statements, • Benchmark of the main sustainability Earnings Release, Investors website www. initiatives and sector companies. ypfluz.com/ir, Reports required by CNV, Compliance Channel, Questions and Grievances Channel, Sustainability Report. Sustainability Sustainability Report 2019 > 28 — 29

Stakeholders Who are they Communication and Dialogue Channels The Institutional Relations We believe that permanent CAMMESA is our largest client, for it purchases Department coordinates communication with our energy on account and behalf of the demand Suppliers Meetings, Compliance Channel, Questions and relations among the areas stakeholders is of utmost which is not met under private agreements. It Suppliers for productive, Grievances Channel, Supplier Service, and different stakeholders importance. The is also the agency responsible for coordinating related and non-productive Corporate Website, Sustainability Report purchases of goods and and oversees internal and communication channels power dispatch, which requires close services. external communications, with each group are used coordination. marketing, public affairs frequently, and the topics Clients CAMMESA and other Meetings, events, e-mailings, surveys, Social and social investment. that are discussed YPF is the company’s principal shareholder, industrial clients. Media: Linkedin, Compliance Channel, through them are reviewed as well as its main industrial client, land-owner Questions and Grievances Channel, Corporate by the relevant areas. and supplier of certain supplies and services. Website, Sustainability Report We maintain a close relationship in constant Internal communication to employees is accomplished alignment with multiple areas of the company. Government National, provincial and Meetings with governmental agency through channels such as the Intranet, Workplace, and controlling municipal governmental representatives, Accountability reports under emails and digital bulletin boards, which supplement As concerns the media, the company maintains authorities authorities, and other applicable laws, Annual Report and Financial direct communication between each employee direct and frequent communication. The controlling agencies. Statements, letters, formal notes, E-mailings, and their leader, to ensure the senior management Institutional Relations Department oversees site visits, Compliance Channel, Questions and guidelines reach all. reception and answering of press requests, Grievances Channel, Corporate Website, Sustainability Report coordinating the relation with the company’s In 2019, over 150 internal communications were speakers and preparing and distributing formal Media Specialized media. Press releases, Advertising, Site visits, events, sent to employees, reporting new hires and statements to the media. In 2019 the media Social Media: Linkedin, Compliance Channel, relocations, company milestones, benefits, covered events and milestones of the company. Questions and Grievances Channel, organizational structure, salary changes, Corporate Website, Sustainability Report performance evaluations, events and relevant Community: The company’s philosophy is to information about various departments maintain an open and fluent dialogue that helps Chambers and Meetings, letters, formal notes, events, (technology, engineering, supply chain, etc.) as identify the impact of its activities and the Associations Organizations with which Compliance Channel, Questions and Grievances well as general company news. community needs, to jointly define a social we maximize our activities Channel, Corporate Website, Sustainability investment program, that is implemented Report. The relation with trade unions is channeled with the involvement of the company volunteer Community Communities near the sites, Meetings with community leaders at each site through the Human Resources Department, employees. Meetings are held with the the community at large, where the company operates, talks about which has an Employment Relations division. community at each site at least every six months. non-for-profit associations energy, site visits, corporate literature, The main trade unions are: APUAYE (Association with which we work, conferences, e-mailings, press releases, of Water and Electricity University Graduates), In 2019, we started to universities, primary and surveys, working meetings, Compliance APJAE (Association of Water and Electricity design the YPF Luz secondary schools. Channel, Questions and Grievances Channel, Corporate Website, Sustainability Report Senior Staff) and Luz y Fuerza (Electricity and Stakeholder Policy, to Power Workers Union). record and promote transparent and Government and controlling authorities: The constructive relations electric power sector is governed by national with our stakeholders. laws and regulations, and the business is regulated by national, provincial and local authorities. Periodic meetings are held with authorities from the provinces and municipal districts where we operate and where we have projects under construction. Regular meetings are held with CAMMESA, ENRE and the Argentine Secretariat of Electric Energy, to request access to the transmission system and as agent of the Wholesale Electricity Market. Communications take place in the form of notes and/or by phone when concerned with medium-term commercial, scheduling and operating issues. This information is handled by the Commercial sector. Sustainability Sustainability Report 2019 > 30 — 31

Questions and Grievances Questions received Total Internal External Handling in 2019 by site Report and Material Issues GRI Content 103-3 GRI Content 102-21, 102-44, 102-45, 102-46, 102-47, Tucumán Power 31 1 30 Generation Complex 102-50, 102-52, 102-53, 102-54, 102-56, 103-1 We have a questions and In accordance with the grievances handling Questions and Grievances La Plata 2 - 2 system in place that Policy, any question or ur second annual Sustainability Report GRI Standards, as well as the content and quality ensures traceability, grievance received must Loma Campana 3 - 3 covers the period from January 1 to principles. follow-up of and response be recorded for follow-up O December 31, 2019. Quantitative data to each grievance or purposes. Any suggestion, Los Teros 13 - 13 from the previous year is included for The process included the following steps: comment received, both question and grievance comparative purposes. It has been prepared in 1. Identification of impacts, risks and internally and from third received is recorded in a Manantiales Behr 4 - 4 accordance with the Global Reporting Initiative opportunities arising from: parties. In 2019, 119 single database, where (GRI) standards -core option-, and the Electric questions and grievances follow-up on the issue Cañadón León 1 - 1 Utilities Sector Supplement. The report includes • Issues considered by Management and were received, and they is recorded until closure, the activities of the business group comprised by business strategy (including issues proposed were answered within including details about General 65 1 64 the parent company YPF Energía Eléctrica SA by the shareholders). no more than 10 days. the claimant, areas involved and its subsidiaries Y-GEN, Y-GEN II, Y-GEN III, • Aspects arising from the GRI Standards. and other relevant data. Total 119 2 117 Y-GEN IV, LUZ del Cerro S.A., LUZ del Valle S.A., • Material issues identified by other businesses LUZ del León S.A., Y-LUZ Inversora S.A.U., from the sector and the region. The questions and grievances mechanism YPF-EE Comercializadora S.A.U. and its • Other guidelines and documents specialized are periodically disclosed, both through associate Inversora Dock Sud S.A. in different issues that address corporate the internal communication channels and Questions & grievances received in 2019 by type Sustainability through posters and notifications to the For comments, suggestions or questions community. relating to this Report or its contents, contact: 2. Based on the identification of potential Grievances Questions sugerenciasypfluz@ypf.com. material issues, a survey was conducted among The questions and grievances handling system 15% 85% our stakeholders, including the Steering is confidential. It is managed by the Institutional As part of the dialogue with our stakeholders in Committee, which defined the most relevant Relations Department, which grants access on a the preparation of this Report, we analyzed the issues that should be included in this Report. case-by-case basis to the areas that are required core issues that should be contained in this Based on this analysis, we have identified the to take action. Efforts are made to respond all document, by means of an assessment survey. following material aspects, and we have questions and grievances within 10 days. If no We received 126 responses, including feedback determined where their main impacts take place. satisfactory response can be given within this from all stakeholders described above. This period, the stakeholder is informed on progress. Report was subject to an analytic assessment process performed by Deloitte & CO S.A., • All third parties have access through the form encompassing an analysis on application of the Questions & grievances received Total available at ypfluz.com, by email to in 2019 by type [email protected], or they can leave a note at any of our sites. Grievances 3

• Employees may write to the same email, use Questions 116 the website form or an anonymous form available on the Intranet. Donations requests 23 Stakeholder assessment Economic, social and + MATERIALITY Questions related to renewable environmental impacts 9 > Company assesssment > energies and energy efficiency Questions about Projects under 13 Construction

We responded to 100% of Other questions 71 List of potential identified Materiality List of grievances and questions issues survey relevant issues received. Total 119

In 2020 we are planning to add suggestion boxes at each site, to receive suggestions and grievances from employees and third parties. Sustainability Sustainability Report 2019 > 32 — 33

Material Issue Scope Associated GRI standard Capítulo Material Issue Scope Associated GRI standard Capítulo

System Approach to ensure GRI Sectorial- 1.2.3 Main Activities Energy Use Use of energy in the GRI 302- Energy 5.1 Comprehensive Efficiency power generation and Availability and Reliability 4.1 The Electricity course of our Quality, Environment, availability to clients. GRI Sectorial- System Market in Argentina operations. Health and Safety Efficiency 4.3 Operations Management 5.2 Quality Management Occupational Health Impacts in relation to GRI 403- Occupational 5.1 Comprehensive 5.3 Environmental and Safety occupational health and Health and Safety Quality, Environment, Management safety, including Health and Safety 5.2.1 Energy and employees and Management Emissions contractors. 5.2 Quality Management 6.2 Occupational Health Employment Creation of direct and GRI 401- Employment 6.1 Our People and Safety indirect jobs, and the 6.1.1 Diversity and employment conditions Equal Opportunities Air Emissions and Impacts of GHG GRI 305- Emissions 5.1 Comprehensive we offer. Greenhouse Gases emissions and other Quality, Environment, Diversity and Equal Diversity and Equal GRI 405- Diversity and 3.1 Corporate (GHG) significant emissions Health and Safety Opportunities Opportunities at work. Equal Opportunity Governance and Capital into the air, which are Management Structure defined as the discharge 5.2 Quality Management 6.1 Our People of substances into the 5.3 Environmental 6.1.1 Diversity and Equal atmosphere. Management Opportunities 5.3.1 Energy and Emissions Customer Satisfaction Customer perception Own indicators 4.5 Clients and satisfaction about Energy Management, GRI Sectorial- Demand- 4.3 Operations products or services sold. Efficiency development and Side Management promotion of renewable energies. Anti-Corruption Impacts in relation to GRI 3.4 Business Ethics corruption and relevant 205- Anti-corruption and Integrity Waste Generation, treatment GRI 306- Effluents 5.1 Comprehensive management. Management and disposal of waste at and Waste Quality, Environment, the sites where we Health and Safety operate. Management Risk Management and Regulatory Compliance GRI 307- Environmental 3.2 Electric Market 5.2 Quality Management Regulatory Compliance and/or regulations in Compliance Regulatory Framework 5.3 Environmental the social, economic GRI 419- Socioeconomic 3.3 Risk Management Management and environmental Compliance 3.4 Business Ethics 5.3.4 Comprehensive spheres. and Integrity Waste Management 4.3 Operations 5.3 Environmental Employee Training Training and GRI 404- Training 6.1 Our People Management and Education Professional and Education 6.1.1 Diversity and Equal 5.3.3 Water and Development Opportunities Effluents of our Employees. 6.1.2 Development and Training Human Rights Our direct impact on GRI 406- Non-discrimination 3.4 Business Ethics Human Rights through GRI 407- Freedom of and Integrity Water and Effluents Impacts on water GRI 303- Water and 5.1 Comprehensive our own actions and Association and 4.6 Suppliers resources through Effluents Quality, Environment, operations, as well as Collective Bargaining 6.1 Our People extraction, water use Health and Safety the indirect impact GRI 408- Child Labor 6.1.1 Diversity and and discharge of Management through our value chain. GRI 409- Forced and Equal Opportunities effluents. 5.2 Quality Management Compulsory Labor 6.1.2 Development 5.3 Environmental GRI 412- Human Rights and Training Management Assessment 5.3.3 Water and Effluents Local Community Impacts on local GRI 413- Local 5.3.2 Biodiversity Economic Reference to the GRI 201- Economic 4.2 Economic Results Programs and communities where we Communities 6.3 Our Communities Performance economic value Performance Investment operate and how we generated and manage them, including distributed (EVG&D), social and environmental among other direct impacts on biodiversity. economic impacts. > 34 — 35

MATERIAL ISSUES

Based on collected information, we developed a • Material economic, environmental and Materiality Matrix to disclose the material social impacts of the company (X axis). issues, according to the following variables: • Substantial influence on stakeholders’ assessments and decisions (Y axis).

X AXIS- YPF Luz Impact 3.00 3.25 3.50 4.00 4.25 4.50 5

4.90

4.80

2 4.70 1 9 7 3 4 6 5 10 8 4.60 13 15 14 11 12 16 4.50 Y AXIS- Relevance to stakeholders to Y AXIS- Relevance

4.40

4.30

4.20

4.10

4.00

1. System Efficiency 9. Energy Use 2. Occupational Health and Safety 10. Employment 3. Gas and Greenhouse Gas Emissions 11. Diversity and Equal Opportunities 4. Energy Efficiency 12. Customer Satisfaction 5. Waste Management 13. Anti-corruption 6. Employee Education and Training 14. Risk Management and Regulatory Compliance 7. Water and Effluents 15. Human Rights 8. Economic Performance 16. Local Community Programs and Investment > 36 — 37 03. Corporate Governance Governance, Ethics and Capital Structure and Integrity Material Issue Diversity and Equal Opportunities GRI Contents 102-18, 102-19, 102-22, 102-23, 102-25, 102-28, 405-1

Corporate The Board of Directors of YPF Luz Governance establishes the company’ strategic guidelines.

The pillars of YPF Luz´s corporate governance Our management model is based on a system are transparency, shareholder scheme of division of functions between the involvement, adequate functioning of the Board Chairman of the Board of Directors and the of Directors and the independence of the Chief Executive Officer (CEO). The Chairman external auditor. Together with the Bylaws, the is focused on strategic and investment Sustainability Report, the Code of Corporate decision-making, and the CEO is focused on Governance and the Code of Ethics and implementation of this strategy and the Conduct highlight the company’s determination company’s management. As of July 2020, the to provide for good corporate governance, Board of Directors consisted of the following transparency and sustainability. members:

BOARD OF DIRECTORS*

Name Position Nationality Age

Santiago Martínez Tanoira Chairman Argentinian 47 Raghuveer Kurada Vice Chairman American 55 Diego Martín Pando Regular Director Argentinian 46 Diego Celaá Regular Director Argentinian 48 Patricio Da Re Regular Director Argentinian 40 Carlos Alberto Weiss, Regular Director Argentinian 60 Mauricio Alejandro Martín Regular Director Argentinian 48 Tyson Rory Yates Regular Director American 51 Juan Manuel Jassom Alternate Director Argentinian 49 Patricio Martínez Morini Alternate Director Argentinian 39 Gastón Marcelo Laville Bisio Alternate Director Colombian 35 María Eugenia Bianchi Pintos Alternate Director Argentinian 34 Carlos Alberto San Juan Alternate Director Argentinian 50 Fernando Gómez Zanou Alternate Director Argentinian 48 Amanuel Haile-Mariam Alternate Director American 40 Cody Castaneda Alternate Director American 38 *Composition of the Board of Directors as of August 31, 2020.

For more information about our Board of Directors visit: https://www.ypfluz.com/IR/MembersOfTheBoard Governance, ethics and integrity Sustainability Report 2019 > 38 — 39

At the Annual Shareholders Meeting, the ensures compliance with the Interest Conflict Shareholders review the Board’s performance in Policy (included in the company’s Code of Ethics relation to legal requirements. In accordance and Conduct), for which a procedure has been with the Shareholder Agreement, YPF Luz does designed and published. This procedure is not allocate any remuneration to its Board of intended to prevent conflicts that may arise in Directors. All members of the Board of Directors this area with respect to personnel, directors of YPF Luz are professionals with an extensive and third parties related to the company. career in energy, finance and administration, who hold executive senior offices in the MANAGEMENT COMMITTEES controlling shareholding companies, i.e. YPF The Committees in charge of decision making S.A. and GE EFS. with economic, environmental, social and governance impact are listed below: The Board of Directors assesses the performance of the Steering Committee and

Committee Objective Frequency

Steering Committee Approves the procedures and decides matters to Monthly, as needed. be presented to the Board. STEERING COMMITTEE AUDIT COMMITTEE Business Committee Analyzes the progress of the company’s results. Monthly The organization’s executive functions are Luis Rodolfo Bullrich, Regular Statutory Auditor Social Investment Approves donations and social investment actions. Every two months delegated to the Steering Committee, consisting of: Marcela Inés Anchava, Regular Statutory Auditor Committee Santiago Carregal, Regular Statutory Auditor QEHS Committees Reviews QEHS objectives, goals and progress Every two months with Héctor Martín Mandarano, CEO Nicolás Perkins, Alternate Statutory Auditor based on QGAP, ESGAP and SHGAP. Shares the CEO’s participation Gabriel Ábalos, Finance Manager Francisco Muruzeta, Alternate Statutory Auditor experiences, difficulties, solutions and Monthly on sites Alejandro Avayú, Procurement and Supply Diego Agustín Chighizola, Alternate Statutory improvement opportunities among sites thus favoring integration and team coordination. Manager Auditor Ricardo H. Castañeda, Manager of Legal Affairs Patricio Cipollone, Business Manager For more information about our Audit Workplace Climate Discusses workplace climate surveys and proposes Monthly Mariana Iribarne, Institutional Relations Committee visit: Committee improvements. Manager https://ypfluz.com/RI/Comision Energy Efficiency Sets efficiency objectives and goals. Reviews Quarterly at each site Jorge Ravlich, Electricity Business Manager Committees current energy situation. Detects process Santiago Sajaroff, Chief Operating Officer improvement opportunities. Sebastián Torres, Chief Compliance Officer Capital Structure Climate Change Assesses current environmental performance Biannual & Head of Internal Audit Committee and contribution to climate change. Raises To become one of the leading companies in the opportunities for improvement of processes and * Composition of the Management Committee as energy sector with self-financed growth, in March projects. Drives enthusiasm for environmental behaviors in line with the organization’s goals of August 31, 2020. 2018 General Electric (GE EFS) joined as a and values. shareholder, with a capital contribution of US$275 For more information about our Steering million. As of December 31, 2019, the share Committee members: capital of YPF Luz consisted of: https://www.ypfluz.com/ManagementTeam

OPESSA* 2.31% 24.99%

72.70%

*OPESSA is a company controlled by YPF S.A. Governance, ethics and integrity Sustainability Report 2019 > 40 — 41

Electric Market Risk Management Regulatory Framework Material Issues: Risk Management and Regulatory Compliance GRI Contents 102-29, 102-30, 102-31, 103-3 Material Issue: Risk Management and Regulatory Compliance GRI Content 103-2

ur Internal Control System has control governance impacts. To this end, we conducted ELECTRIC MARKET demand for electricity with renewable energy—a mechanisms in place that contribute to a risk assessment in relation to each of the Law 24,065/92, and the implementing percentage which must be increased gradually O assuring compliance with current laws company’s departments. To manage the risks regulations introduced by Decree No. 1398/92, until reaching 20% by 2025. To meet the annual and regulations, reliability of financial and findings of the Internal Audit, we began comprise the core regulatory framework of the renewable energy demand as required by law, at information and efficiency of our operations. implementation of an automatic management electric sector, as supplemented by the rules set YPF Luz we started to develop renewable energy system to keep process traceability, by the Secretariat of Energy concerning electric projects. We provide large users with on-site In 2019, the Compliance and Internal Audit transparency and to optimize management power generation and commercialization. ENRE self-supply solutions or enter into mid- and Department started to map the business of the department. (Argentine Electricity Regulator) is the long-term power purchase agreements with risks to prepare the Risk and Corporate regulatory, oversight and control authority of the them, based on their individual production and Control Matrix that will include the risks In 2020 we will initiate an assessment on electric power industry and the enforcement energy supply needs. inherent to YPF Luz and will enable us to existing controls and associated monitoring authority of Law 24,065. CAMMESA oversees the identify and assess management of activities, to mitigate identified risks and the dispatch, scheduling and economic arrangement operational, financial, strategic and corporate existence of potential residual risks. Gradual progress in the demand that should be of the Argentine Interconnected System, known met with renewable energy as required by Law in Spanish as SADI, the Wholesale Electric No. 27,191 Market (WEM), and it also acts as collecting entity for all WEM agents. 2017-2018 8% 3,000 MW

THERMAL POWER 2019-2020 12% 5,800 MW Business Ethics and Integrity The sale of thermal power is ruled by the Secretariat of Energy and is developed under 2021-2022 16% 7,600 MW Material Issues: Risk Management and Regulatory several regulatory frameworks, out of which YPF Compliance, Anti-corruption, Human Rights Luz is subject to Resolution No. 1/2019, 2023-2024 18% 8,400 MW GRI Contents 102-16, 102-17, 103-2, 103-3, 205-1, 205-2, 205-3, 406-1 Resolution No. 21/2016 and Resolution SE 269/2008 (distributed self-generation). Since 2025 20% 10,200 MW

RENEWABLE ENERGIES t YPF Luz we have set goals related to In 2019 we included the Internal Audit In 2015, the Argentine government enacted Law For more information about Compliance and Internal Audit to function within the sphere of the Compliance No. 27,191 to foster renewable energies. energy regulations visit: A assure the highest standards of Department to strengthen our control According to this law, all users are required to https://ypfsausyeepro01.blob.core.windows.net/ regulatory compliance and transparency and processes. In this sense, in the second half meet a portion of their electric power demand informacion-financiera/35/Attachments/ integrity in our key operations and processes, of 2019 an audit plan was devised and from clean sources. This law was regulated by Estados%20Financieros.pdf with the commitment from our employees implemented. This plan enabled us to Decree No. 531/2016 and Resolution No. (Page 58) and third parties on the activities they carry out. validate processes in critical areas of the 281/2017 (Renewable Energy Forward Market company and identify opportunities for - MATER). Large users (industrial clients) may We are committed to protecting our good improvement, with the aim of reinforcing either self-generate renewable energy or buy it name and reputation, and that of our control mechanisms and day-to-day under a power purchase agreement with a partners, clients, and employees. We abide processes. All actions resulting from the renewable energy producer. Effective since 2018, by a Compliance culture which is not limited audits included the plan were jointly large users are required to cover 8% of their to observing the “letter” (rules, policies, managed by the Compliance & Internal regulations, and processes), but also the Audit Department and the Departments “spirit” of the law, where the company’s involved, to implement the recommended actions. leaders play a key role in building and strengthening this culture. Governance, ethics and integrity Sustainability Report 2019 > 42 — 43

Compliance building and strengthening the organizational Program Compliance culture.

The main areas that comprise our In developing our Compliance Program, we Compliance Program are: risk management, considered the industry we are engaged in and training program, reporting channels, third the size of our operations. Each element of the party control, communication and a training Program has been developed in line with the program with a special focus on ethical values that we foster, and it is divided anti-corruption. into four major pillars, which represent the areas to be more careful about, not only from The purpose of our Compliance Program is to the point of view of Compliance risk prevention, ensure that YPF Luz’ personnel are aware of the detection and mitigation, but also from the risks of Compliance that are proper to their standpoint of the organizational culture we specific area and contribute to prevention and foster. These pillars, which contain the key mitigation, with solid ethical values. The elements of the Program, are: company’s leaders play an essential role in

RISK MANAGEMENT COMPLIANCE CHANNEL Trained Personnel with third parties, and to prevent or mitigate Total* • Risk assessments • Case management system by category situations that may damage the image and • Policies and procedures • Investigations reputation of the company. The Procedure • Regulatory repository • Automatic metrics and monitoring Management Departments 22 establishes that all third parties related to the • Automatic controls company must have a Compliance assessment Office Heads 42 • Contact with regulators prior to approval by the company, and undergo Coordination/Supervision 53 a due diligence process, if needed.

Professionals, Analysts and Operators 106 Through the due diligence processes, the company seeks to efficiently manage its relations with Technicians 64 third parties, to prevent and mitigate risks associated with corruption, establishing adequate Interns 4 control and monitoring actions to this end. CULTURE LEADERSHIP Total 291 Systems are being implemented to guarantee an • Face-to-face and online trainings • Lead-by-Example culture efficient management of these risks. • Communication schedule • Leaders’ communications *93% of payroll committed • Scheduled activities - 313 employees. A new Conflict of Interest Management Procedure • Initiatives was developed and implemented. This procedure A Third-Party Control Procedure was implemented, includes a disclosure and monitoring process, whereby the company seeks to determine parameters through an automatic tool, to ensure update of for efficient risk management in relationships information and immediate control of each case. In 2019 we delivered anti-corruption and Compliance face to face trainings to 93% of the company’s training to raise awareness on corruption risks personnel, in which representatives from all and create a culture of integrity, reinforcing the operations took part, and including 100% of YPF The program is intended to prevent, detect ethical values and the importance of compliance Luz Steering Committee members. and correct improprieties or situations that do with internal and external rules. We delivered not conform to the company’s Code of Ethics and Conduct, applicable policies and procedures and current regulations, and it establishes zero tolerance against corruption. Governance, ethics and integrity Sustainability Report 2019 > 44 — 45

COMPLIANCE AND INTERNAL AUDIT ACHIEVEMENTS 2019 CODE OF ETHICS AND CONDUCT Access from the Intranet of YPF Luz Code of Ethics Comprehensive revision of YPF’s Code of Ethics and Conduct. The Code is a tool that provides guidance on the values promoted by the company. Third Party Control Over 1,200 verified third parties 13 due diligence processes We have a Code of Ethics and Conduct in place Obligation to include a Compliance and Internal Audit clause that guides our people’s day-to-day actions. It Email: in all contracts with third parties established applies to directors and employees of YPF Luz, [email protected] as well as to third parties related to the Risk Management Implementation of a Risk Control System company. 14 assessments* 100% of risks mapped We have several mechanisms for dissemination of the Code and its policies, which include Conflicts of Interest Tool for disclosure and management of conflicts of interest publication on the website, the Intranet, the Phone: 100% of received statements reviewed. Compliance portal, emails to employees, 0800- 122- 0278 training and digital bulletin boards, among other. Communication More than 20 communications 100% of Management and employees informed on anti-corrup- For more information about our Code of Ethics tion policies and procedures and Conduct, visit: Redesigned and updated Compliance Intranet https://ypfluz.com/RI/Compliance 18% improvement of Climate Survey 2019 vs. 2018. Website: https://canalcomplianceypfluz.lineaseticas.com/ Compliance Redesigned and updated Compliance Website. COMPLIANCE CHANNEL All YPF Luz personnel may raise questions or Training 100% of Management and 93% of personnel received The company offers various channels for its potential grievances through their leaders or anti-corruption training. employees and related third parties to make the Compliance and Internal Audit Department. • Loma Campana 28 people questions or potential complaints if they detect • Manantiales Behr 23 people violations of the Code of Ethics and Conduct, In 2019 we had no confirmed cases • City of Buenos Aires 115 people applicable laws or potential improper behaviors of corruption or discrimination. • Tucumán 89 people affecting the company. In addition to the • Los Teros 4 people conventional channels, such as the Compliance • La Plata 33 people and Internal Audit Department and the Human Resources Department, the company also makes *The 14 assessments correspond to 100% available the “Compliance Channel”. of the company´s departments. The Compliance Channel is a communication channel to report situations and/or behaviors that may constitute an actual or potential violation to the provisions of the Code of Ethics and Conduct. We encourage YPF Luz employees and third parties to use this channel, and we take the necessary measures to keep anonymity and confidentiality to ensure that they are protected from retaliation. The Compliance Channel can be accessed in several ways, including: > 46 — 47 04. The Electric Market Economic in Argentina Performance Material Issue: System Efficiency GRI Content 103-2

Our strategy is intended to Since YPF Luz and In December 2019 Argentina had an installed reach a leading position in its subsidiaries are capacity of 39,660 MW, 2.8% more than in the electric power generation a group of companies 2018. 61.9% was derived from thermal market in Argentina. We are engaged in a business sources; 27.3% from hydroelectric power developing projects and focused on the plants; 6.4% from non-conventional business structuring to Argentine market, renewable energy (NCRE: wind, solar, achieve this challenging goal. we manage the renewable hydroelectric sources and business in the biofuels) and 4.4% from nuclear power plants. context of the development In 2019, 1,605 MW were incorporated to the of the main system. Most of the new capacity was derived macroeconomic from renewable sources (858 MW wind variables of the country. From a demand energy, 241 MW solar energy and 22 MW standpoint, in 2019 electric consumption biogas) under the RenovAr contracts and reached 128,915 GWh, a 3.1% fall compared Resolution 202/2016 and under private to 2018 (133,010 GWh). contracts (MATER). On the other hand, 484 MW of thermal power derived from projects EIn 2019 household demand accounted for awarded through Resolution 287/2017. In 43% of the total system demand, large users turn, 483 MW were put out of service from 28% and small-sized commercial and inefficient thermal equipment. Keeping pace industrial users (demand lower than 300 KW with demand, power generation in 2019 per month) 29%; thus, the market share decreased 4.5% compared to the same remained similar to 2018. Household period the previous year, reaching 131,247 demand fell 2.7% compared to 2018. On the GWh. Thermal power generation (61%) and other hand, commercial users recorded a hydroelectric power (27%) continued as the 3.1% decrease and large users 3.6%, mainly main sources of energy used to meet as a result of the economic slowdown. demand. Non-conventional renewable energies (NCRE) accounted for 6% of total generation in 2019, reaching almost 8% in the last quarter of the year, a 133% growth compared to 2018. Lastly, nuclear energy 129TWh accounted for 6%. Cumulative Demand 2019

-3.1% Compared to 2018 Economic performance Sustainability Report 2019 > 48 — 49

Wind power was the main source of non- during the year, increasing its share from 90.2% 2019 2018 In 2019, YPF Luz had access to the capital markets, conventional renewable energy in the country in 2018. Consumption reached 17,207 MMm3 or both at the local and international level. (64%), followed by renewable hydroelectric 47.1 MMm3/d, 5% lower than consumption in EBITDA 1and2 219 186 power (19%), solar (10%) and biofuels (7%). The 2018, mainly due to a decrease in demand, and (in million Dollars) • Issuance of Series I Notes: On May 10, 2019, Investments 2 capacity factor for each technology was 45% the addition renewables energies. Thermal 494 377 YPF Energía Eléctrica S.A. issued Series I for wind power, 33% for power from renewable power generation was supplemented by (in million Dollars) Notes in the domestic market for a principal hydroelectric sources, 29% for solar and 64% consumption of liquid fuels and carbon, which amount of USD 75 million, at an annual for biofuels. reached 2.1 MMm3/d of equivalent gas, 39% of * EBITDA = operating result + amortization and nominal rate of 10.24%, due on May 10, 2021. consumption in 2018. depreciation-income from remeasurement of The issuance was reopened on June 7 for a Natural gas is the main fuel used for thermal pre-existing shares - participation in associated principal amount of USD 25 million, to power generation, accounting for 95.7% of total companies and joint ventures - results after supplement the amount that had been income tax for the year corresponding to authorized for this Series. discontinued operations. • Issuance of Series II Notes: On July 25, 2019, ** Argentine Pesos were converted into Dollars at YPF Energía Eléctrica S.A. issued Series II Economic Results the average exchange rate as of the close of Notes in the international market, for a business published by Banco Nación: 1Q18: 19.6 principal amount of USD 400 million, at an Material Issue: Economic Performance of the Organization ARS/USD; 2Q18: 23.6 ARS/USD; 3Q19: 32.0 ARS/ annual nominal rate of 10%, due on July 25, 2026. GRI Contents 102-7, 102-10, 102-45, 103-2, 103-3, 201-1, 201-4 USD; 4Q18: 37.0 ARS/USD; 1Q19: 39.1 ARS/USD; 2Q19: 43.8 ARS/USD; 3Q19: 50.1 ARS/USD; 4Q19: 59.3 ARS/USD. Direct economic Value The company increased its market share Figures stated 2019 2018 Generated and Distributed for renewable energies from 4.5% in 2018 in million Dollars to 6.7% in 2019, a 48.9% increase year on year. Sales revenues5 331.6 243.0 We issued our first note on the international In compliance with current legal provisions and We seek to capture market opportunities with the market for US$ 400 million with a 7-year bylaws, we issued our Annual Report and most cost and technology-efficient proposals, Total Assets6 2,054.5 1,540.3 maturity term. The proceeds from this Financial Statements under the International always embracing ongoing improvement. financing will be used in investment Financial Reporting Standards, for YPF Energía Accordingly, we take a forward-looking approach, Total Liabilities6 1,292.9 861.5 projects under construction to add 637 MW Eléctrica S.A. as of December 31, 2019. The main considering the new market trends: renewable to those currently in operation. entities included in our Financial Statements energies, electric mobility, energy storage Total Shareholders’ Equity6 761,6 678.8 are: Y-GEN, Y-GEN II, Luz del León S.A., YPF-EE (batteries), and the complementarity between “We are enormously proud of the results Comercializadora S.A.U., Central Dock Sud and renewable and conventional energies. We * Argentine Pesos were converted into Dollars at the from this first international issuance. YPF Inversora Dock Sud. leverage the existing synergies with our average exchange rate for each quarter as published Luz is a young company that has been shareholders: in the case of YPF, in respect of by Banco Nación for each period: 1Q18: 19.6 ARS/ doing business for only 7 years in the In 2019 tax savings obtained from the grant natural gas and Vaca Muerta production; in the USD; 2Q18: 23.6 ARS/USD; 3Q19: 32.0 ARS/USD; power generation market; it has managed of a provincial tax exemptions amounted to case of General Electric, regarding its technology 4Q18: 37.0 ARS/USD; 1Q19: 39.1 ARS/USD; 2Q19: to achieve an important position that has 4,779,348 Dollars7 know-how to drive and accelerate power 43.8 ARS/USD; 3Q19: 50.1 ARS/USD; 4Q19: 59.3 paved the way for the strong support we generation projects. To execute this ambitious ARS/USD. received from international markets today.” plan, our economic and financial strategy is ** Argentine Pesos were converted into Dollars as based the following principles: of the end of each period at the exchange rate Martín Mandarano, prevailing as of the year end and published by CEO of YPF Luz • Strict allocation of capital to investment Banco Nación: 2019: 59.8 ARS/USD; 2018: 37.6 projects above the target profitability. ARS/USD. • Achieve sustained positive cash flows. • Maintain financial discipline. To achieve a leading position in the power generation • Add value to our shareholders. market in Argentina, we work towards project development and business structuring. Accordingly, 5 Argentine Pesos were converted into in 2019 we made investments for approximately Dollars at the average exchange rate U$S 494 million, mainly focused construction of as of the close of business published projects that will contribute an additional capacity by Banco Nación: 1Q18: 19.6 ARS/ of 637 MW. USD; 2Q18: 23.6 ARS/USD; 3Q19: 32.0 ARS/USD; 4Q18: 37.0 ARS/USD; 1Q19: 39.1 ARS/USD; 2Q19: 43.8 ARS/ USD; 3Q19: 50.1 ARS/USD; 4Q19: 59.3 ARS/USD. Economic performance Sustainability Report 2019 > 50 — 51

The table below shows the direct economic value S.A.’s Audited Consolidated Financial Statements generated and distributed, as proposed by GRI, as of December 31, 2019 and 2018, which have Operations to report on the company’s own economic been issued in Argentine Pesos, with the performance. It is stated in million Dollars and relevant unqualified Auditor’s Report issued by Material Issues: Risk Management and Regulatory Compliance, has been derived from YPF Energía Eléctrica Deloitte & Co S.A. System Efficiency, Energy Efficiency GRI Contents 102-2, 102-3, 102-4, 102-6, 102,10, 102-11, 102-15, 103-2, 103-3, EU1, EU2, EU10, EU11 Direct economic value generated and distributed 2019 2018 1 (figures stated in million Dollars ) We comply with safety and technology • OPIC External Audit (Cañadón León) Economic Value Generated 378,867 348,046 standards to produce electric power and • Mott Mac Donald external audits on Y-GEN and contribute to the energy development of Y-GEN II (El Bracho, Tucumán) Sales revenues 331.6 242.9 Argentina and its industries. • External audit on the environmental and social plan at YGEN (Loma Campana) Income from financial investments 12.2 6.3 YPF Luz’s management system is focused on • External audits IRAM for ISO and audit on the mitigating occupational, industrial and process- ERM environmental and social improvement Equity income in affiliates2 15.0 7.8 related risks, operating within the framework of plan under the IFC standards (Manantiales Behr). the company’s Operational Excellence Policy, Other operating income3 12.4 90.9 the main purposes of which include: Generated 2019 2018 power Other financial results 7.5 - • Ensure people’s wellbeing and protect our assets. Power Economic Value Distributed (291,529) (182,839) • Maximize production and efficiency, generation 6,451.4 7,658.6 streamlining the use of available resources. (in GWh) Operating costs (147.7) (67.4) Thermal • Honor our commitments to our internal and 5,924.7 92% 7,510 98% external clients. power* Payroll and employee’s benefits (22.9) (21.7) Renewable • Ensure safe and environmentally-friendly 526.6 8% 148.6 2%** Payments to the government (taxes, duties and contributions) energy (61.5) (40.1) production processes. and Income tax * Excluding the 30.76% stake in Central Dock Sud in Other operating expenses - (11) Our commitment to ongoing improvement power generation. policies compels us to revise the suitability of our ** The Manantiales Behr Wind Farm began operations Cost of interest accrued on loans (59.1) (19.4) Operational Excellence Policy and goals for in full in November 2018. This explains the constant adjustment to the changes required by difference in percentage of power generation with Other financial results - (34.0) the market and applicable laws. the same installed capacity. Get to know our Operational Excellence Policy at: Community investments 0.2 N/A http://bit.ly/ypfluz-PEO

Economic Value Retained 87,338 165,207 In conducting all our operations, we monitor fuel consumption, air quality, water, and noise 1 The table is stated in million Dollars and arises from YPF Energía Eléctrica S.A.’s consolidated emissions. We implement strict quality, safety, Financial Statements as of March 31, 2019; it was prepared on a comparative basis with environment and energy efficiency programs, respect to the relevant Auditors’ Report issued by Deloitte & Co S.A. Argentine Pesos were and pursue international certifications to ensure Generation of renewable converted into Dollars based on the average exchange rate for each quarter prevailing at sustainability and safety across all our energy from the period-end and published by Banco Nación: 1Q18: 19.6 ARS/USD; 2Q18: 23.6 ARS/USD; 3Q19: operations, with an extensive internal and Manantiales Behr Wind 32.0 ARS/USD; 4Q18: 37.0 ARS/USD; 1Q19: 39.1 ARS/USD; 2Q19: 43.8 ARS/USD; 3Q19: 50.1 external auditing program to ensure compliance Farm reached 526.6 GWh ARS/USD; 4Q19: 59.3 ARS/USD. with those standards. Accordingly, the following –254% more than in 2018. 2 On February 2, 2018, the company assigned and transferred to YPF a 27% equity interest it external audits were conducted in 2019: held in Consorcio Área Ramos, in the province of Salta. The profits & losses from the Consortium, until that date, are not included in the table. 3 In March 2018, the company completed the fair value re-measurement of its preexisting 66.67% equity interest in Y-GEN and Y-GEN II, resulting in a profit of 1,785,033, accounted for as income (loss) from continued operations. This amount reflects the positive difference arising from comparing the fair preexisting interest value, which amounted to 3,224,724, to the value of the investment accounted for under the equity method on the acquisition date, which amounted to 1,439,691 (figures stated in thousand Pesos). Economic performance Sustainability Report 2019 > 52 — 53

2019 2018 YPF Luz Generation Results 2019 2018

Power generation (in GWh)* 6,451.4 7,658.6 Loma Campana I Generation (in GWh) 705.56 432.40 Central Generación Tucumán 3,714.2 5,232.1 Availability (without scheduled maintenance) 80.3% 59.3%

Loma Campana I 705.6 432.4 Fuel Consumption Gas Eq (M nm3/day) 0.44 0.28

Loma Campana Este 45.4 34.0 Specific Consumption Kcal/KWh 1,964 1,964 Loma Campana II La Plata Cogeneration 818.7 873.4 Generation (in GWh) 503.93 395.40

Manantiales Behr Wind Farm 526.6 148.6 Availability (without scheduled maintenance) 82.6% 87.0%

3 Loma Campana II - Y-GEN 503.9 395.4 Fuel Consumption Gas Eq (M nm /day) 0.33 0.26 Specific Consumption Kcal/KWh 2,011 2,011 El Bracho Thermal Power Plant - Y-GEN II 136.9 542.7 La Plata Cogeneration *Excluding Central Dock Sud. Generation (in GWh) 818.75 873.40

Availability (without scheduled maintenance) 78.9% 95.9%

2019 2018 Fuel Consumption Gas Eq (M nm3/day) 0.54 0.56

Availability (without scheduled maintenance) 84.6% 90.0% Specific Consumption Kcal/KWh 1,976 1,976 San Miguel de Tucumán Fuel consumption Gas Eq (M nm3/day) 3.67 4.56 Generation (in GWh) 1480.73 2,208.10

* * Specific consumption Kcal/KWh 1,869.55 1,844.1 Availability (without scheduled maintenance) 76.7% 96.7%

Calculated data based on CAMMESA’s data as of March 2020. Generation data differ by 6.61 Fuel Consumption Gas Eq (M nm3/day) 0.91 1.28 GWh from reports submitted in 2019, given that CAMMESA updates previous reported data upon Specific Consumption Kcal/KWh 1,790 1,790 release of each report. * Weighted average consumption by generated energy. Tucumán

Generation (in GWh) 2233.47 3,024.00

We have 1,819 MW of power intended Availability (without scheduled maintenance) 91.6% 99.2% for the industry and efficient energy development, generated at high- Fuel Consumption Gas Eq (M nm3/day) 1.34 1.75 technology facilities distributed Specific Consumption Kcal/KWh 1,786 1,786 nationwide. El Bracho

Generation (in GWh) 136.88 542.70

Availability (without scheduled maintenance) 89.5% 97.4%

Fuel Consumption Gas Eq (M nm3/day) 0.11 0.43

Specific Consumption Kcal/KWh 2,449 2,449 PE Manantiales Behr

Generation (in GWh) 526.65 148.64

Availability (without scheduled maintenance) 99.2% 95.4%

Fuel Consumption Gas Eq (M nm3/day) 0 0.00

Specific Consumption Kcal/KWh 0 0 Economic performance Sustainability Report 2019 > 54 — 55

YPF LUZ MARKET TOTAL YPF LUZ * 2019 2018 2019 2018

Generation (in GWh) 6,406 7,624 131,247 137,482

Availability (without scheduled maintenance) 84.6% 90.0% 80.0% 81.0%

Fuel Consumption Gas Eq (M nm3/day) 3.67 4.56 49.61 54.80

Specific Consumption Kcal/KWh 1,869.5 1,844.1 1898.2 1,918

* Excluding Dock Sud and Loma Campana Este. ** Weighted average consumption by generated energy. Source: Internally prepared information based on CAMMESA’s data.

LA PLATA Renewable Plant, with an installed capacity of 267 MW. In This is a power plant with an installed capacity of Generation 2019 2018 Thermal power generation Results (in GWh) 2019, the assets of the GE Gas Turbine of El 128 MW, which supplies steam to YPF’s industrial Regarding thermal generation, we aimed to Bracho Thermal Power Plant were added to the complex and electric power to CAMMESA. In YPF Luz incorporate assets that make efficient use of SAP-PM maintenance management system, December 2019 a contractual service agreement Renewable gas, since gas is the least environmentally while the relevant assessment of the was executed with GE, to guarantee availability 526.6 148.64 Generation impactful fossil fuel in electric power maintenance plans that are being processed will due to maintenance of the GE Gas Turbine of generation. In 2019, YPF Luz’s entire thermal be uploaded in 2020. Cogeneration La Plata. Also, in 2019, the assets of MATER Generation 526.6 148.64 generation was based on gas, while national gas La Plata Cogeneration Plant 1 (LPC1) were added utilization by thermal power producers was LOMA CAMPANA to the SAP-PM maintenance management system, Market 94.9%, on average. The Loma Campana Thermal Power Plant (located with their respective maintenance plans to Renewable in Añelo, province of Neuquén) includes two standardize the maintenance process across the 7,812.14 3,350.22 Generation TUCUMÁN thermal power plants with aeroderivative gas company. Tucumán Power Generation Complex (located in turbines: Loma Campana I, with an installed MATER Generation 0.19 0.25 El Bracho, province of Tucumán) is comprised by capacity of 105 MW, and Loma Campana II, with an CENTRAL DOCK SUD S.A. Tucumán Thermal Power Plant, with an installed installed capacity of 107 MW. The complex also YPF Luz owns a 30.76% equity interest in this Market Share capacity of 447 MW, and San Miguel de Tucumán includes Loma Campana Este, a thermal power company and is responsible for the Commercial Renewable Thermal Power Plant with and installed capacity plant located within the Loma Campana oil & gas Department. However, Enel is responsible for the 6.7% 4.5% Generation of 382 MW. In addition, in January 2018, we production concession area, 18 km away from Loma operations and relationships with third parties. started to operate El Bracho Thermal Power Campana I and II, with an installed capacity of 17 MW. The Dock Sud Power Plant (located in Avellaneda, MATER Generation 35.3% 88.2% province of Buenos Aires) has a total installed capacity of 869.5 MW, of which 267 MW are Own information based attributable to the stake held by YPF Luz. on CAMMESA’s data.

For more information on our operation sites, visit: MANANTIALES BEHR WIND FARM https://www.ypfluz.com/OurAssets/Home The Manantiales Behr Wind Farm (located in Manantiales Behr, province of Chubut), built on a currently operational oil & gas reservoir owned Renewable generation by YPF, has 30 Vestas wind turbines with a capacity of 3.3 MW each, and a total installed We strive to develop reliable, efficient and capacity of 99 MW. The wind farm is connected to sustainable energy, with world-class technology, the Argentine Grid Transmission System (SADI)

so industries can rely on this CO2 emissions-free and CAMMESA has assigned it priority dispatch resource. We have an operational wind farm and for the sale of renewable energy in the MATER8. two wind farms under construction to supply renewable energy to Argentina’s leading companies. 8 Renewable Energy Forward Market. Economic performance Sustainability Report 2019 > 56 — 57

Digital transformation SAP S/4 HANA In the second half of 2019, we carried out Phase In 2019 we deployed the OSIsoft PI System®, an I of the SYLUZ Project and deployed a suite of intelligent tech-platform that monitors power SAP solutions consisting of SAP S/4 HANA and generation and processes of all our assets in real ARIBA Sourcing. It was an important milestone time and allows access from mobiles. This platform for the organization, given that we could have has enabled improved optimization of maintenance our own system with independent accountability processes at sites (Thermal power plants and wind and technological innovation. farm) that translates into continued improvements and greater efficiency in operations. The project was developed in stages using a work methodology known as “Active”. It is based on fast SCRUM /Design Thinking methodologies, We guarantee our operational results which enabled optimization of implementation by managing our processes, deadlines and configuration of the new system. developing adequate management We formed a multidisciplinary team, based on systems and applying new standard features and process best practices technologies with innovation criteria, suggested by SAP. We encompassed the review that enable operational sustainability. and configuration of the Finance and Accounting, Sales, Invoicing, Payments, Purchases, Warehouses and Maintenance modules. Regarding processes and technology, in 2019 we conducted a Process Mapping and implemented The months of November and December were SAP S/4 HANA. critical to migrate data to the new system. We established a Black Out period and devised a plan PROCESS MAPPING for progressive suspension of recording and running Since we are a young company, we have had to of the then operational LP0 YPF SA and ARIBA (YPF) define of our own policies, standards, processes systems. Data were extracted and migrated to the and procedures, to develop our strategy and our LP3 YPF Luz and ARIBA YPF Luz systems. business model. All areas of the company are in constant expansion, which requires alignment of The first days of January 2020 deployment was work processes to avoid hurdles, excess carried out (migration of open items and user workload, incidents, etc. Accordingly, in 2019, activation) thus completing the commissioning of over 50 processes were surveyed, including the the new systems SAP LP3 and ARIBA YPF Luz. following actions: Loading Factor The wind farm has the largest capacity factor in and Availability 2019 2018 the country: 61.7%. In 2019, it was the wind farm • We documented the main activities of the company. Renewable Energy that contributed the largest amount of renewable • We conducted the mapping of relations among Manantiales Behr Wind Farm energy to the Argentine interconnection system, Departments, with focus on achievement of in excess of 526.6 GWh. results. Capacity Factor 61.7% 50.3% • We created a company-wide vision. In 2019 arrangements were made for a media visit • We set the bases for subsequent stages in the Availability Factor9 97.7% 87.5% to the Manantiales Behr Wind Farm, in which 20 process management deployment. journalists from national and provincial media • Over 200 sub-processes were detailed, including nationwide participated, and where executive mapping of the main systems that support each process 7 Se calcula como la capacidad officers of the company presented the results for remunerada/capacidad instalada. the first operational period. We could determine a chain value and high-level processes, which represent and formalize YPF For more information on Manantiales Behr, visit: Luz’ current operation. https://ypfluz.com/Activo/Index/8 Economic performance Sustainability Report 2019 > 58 — 59

YPF LUZ VALUE CHAIN

ING, RISK A LANN ND C Y, P OM EG PL AT IA R NC ST E ENVIRONMENT, HEALTH AND PEOPLE SAFETY

RELATIONSHIPS GE WER NER WITH OTHERS O AT P IO N

PROJECTS MIGRATION IN NUMBERS:

Technical locations 26,437 C O N M IO M AT ERCIALIZ SUPPLY CHAIN Materials 19,198 Roadmaps FINANCE AND 19,161 ADMINISTRATION Maintenance notices 6,932 Maintenance TECHNOLOGY orders 5,545 AND INNOVATION Preventive maintenance 5,078

Requests 3,190

Suppliers 2,205 PHASE I Equipment 1,396

YPF LUZ YPF Order requests 1,211

BANCOS ARIBA Contracts 675 ARIBA AFIP

Users 312 > SAP HP2 Safety roles 203 SAP S/4 HANA > SUCCESS PAYROLL BANCOS CONCUR FICO / MM / PM / PS FACTORS

Clients 73 > During the rest of 2020, features and integration SYLUZ Project is expected to be completed > ACTIVE DIRECTORY with other tools are expected to be expanded in with the implementation of the SAP suite GDI the Purchases, Finance and Accounting modules. Successfactors and Concur. In the second half of the year, Phase II of the Economic performance Sustainability Report 2019 > 60 — 61

Projects under Installed Client or construction in Location Technology Progress Year Projects Capacity counterparty 2019 GRI Contents 102-10,102-11,102-15 La Plata La Plata, 85 MW CAMMESA Cogeneration 91%* 2018 Cogeneration II Buenos Aires

“A clean and efficient energy future implies El Bracho CC** El Bracho, 198 MW CAMMESA Steam turbine 93%* 2018 not only the incorporation of renewable Tucumán – combined cycle energy sources but also the introduction of efficiency improvements in all 7 Works Manantiales Behr Manantiales 57 MW YPF Engine-driven 57%* 2019 production processes. Technology Thermal Power Behr, Chubut generator Interconnection works innovation and renovation at the thermal Plant 3 substations + over 50 km lines plants enable us to deliver firm power to Los Teros I Wind Azul, Buenos 123 MW MATER Wind 92%* 2018 the Argentine electric grid, and to Farm Aires supplement renewable energies considering their intermittent nature. We Los Teros II Wind 52MW 7%* 2019 are building two wind farms and investing Farm in efficient thermal power projects based 340 MW on natural gas –the cleanest conventional Cañadón León Cañadón León, 122 MW CAMMESA y Wind 74% 2019 340 MW *** resource for thermal power generation– of thermal power Wind Farm Santa Cruz MATER 297 MW because we are certain that natural gas of wind power and renewal energies are the perfect Santa Cruz Norte Pico Truncado- N/A CAF/Province 132Kv 2019 economic complement to develop Line Caleta Olivia, of Santa Cruz Transmission sustainable energy for Argentina.” Santa Cruz Line * Extent of physical progress as of January 2020 Martín Mandarano, ** Resolution 287/2017 297 MW *** CEO of YPF Luz Renovar 2.0 Program, awarded for 99 MW of wind power

Our strategy to contribute a larger volume of +1.100 highly efficient and renewable energy generation to the energy matrix is reflected in the employed people We aim to produce profitable, efficient construction of new projects. In 2019, works and reliable energy, by building new were planned for a total of 637 MW distributed thermal power plants and renewable in 7 projects, of which 340 MW relate to high- INTERCONNECTION WORKS energy farms, with world-class efficiency thermal power projects and 297 MW technology, to supply YPF and other to wind power projects. Therefore, construction industries and to commercialize in the increased by 30% compared to 2018. In addition 132 KV - 350 MVA Wholesale Electric Market (WEM). to works exclusively intended for power generation, electric infrastructure works were +5 traffic developed to improve access to clean and efficient energies across different locations where the projects are carried out. This required 500 KV - 425 MVA the construction of 3 high-voltage substations, medium- and high-voltage transmission lines, +2 traffic and changes in the electric infrastructure of the Interconnected System (SADI). Economic performance Sustainability Report 2019 > 62 — 63

Thermal power generation • Steam turbine: The high-pressure and projects intermediate pressure sections were LA PLATA COGENERATION II MANANTIALES BEHR assembled. We are building a new 85MW cogeneration power THERMAL POWER PLANT • Cooling Tower: We progressed in the plant at the La Plata Industrial Complex owned It consists in the installation of 5 high-efficiency TUCUMÁN – CLOSING verticalization of the main cell structure. by YPF, the power output will be sold CAMMESA 11.5MW engines, totaling 57 MW. This power OF OPEN CYCLE • Equipment Supply: All equipment is on site. and the steam to YPF S.A. for its production plant will meet the demand of the node where The closing of the new 267 MW gas turbine to a process. The plant was awarded by Resolution the 99 MW Manantiales Behr Wind farm is combined cycle is underway, to add 198 MW, and Upon conclusion of the combined cycle, the 287/17, to add 85 MW of electric power and located. The power plant will supplement the improve the whole plant’s efficiency. Tucumán Power Generation Complex, produce 200 t/h of steam. wind farm output, to improve energy availability Commissioning is expected to take place in 2020. consisting of three thermal combined for YPF reservoirs and local communities, thus Progress in 2019: cycles, will supply electric power to more Progress in 2019: turning the Wind Farm and the Power Plant into than 1.3 million users, which is equivalent •We mounted the heat recovery steam generator a hybrid generation node. • HRSG: We completed the mounting of the 10 to 4.2% of the country’s peak demand. (HRSG), the gas turbine and generator along with modules comprising the boiler circuits and all auxiliary equipment, diverter damper, power the assembly of the main pipes. We performed transformer and electric room of the Plant, and hydraulic tests on finished circuits. the power center mounted. •Changes to the control room at La Plata Cogeneration I, for integration of La Plata Cogeneration II. •Start of plant pre-commissioning works. Economic performance Sustainability Report 2019 > 64 — 65

Renewable generation LOS TEROS WIND FARM • 37 km of internal roads. The wind farm will be interconnected at the projects The wind farm will have 45 General Electric • 30 foundations. Each consists of 50 tons of same point as Los Teros I Wind Farm and will wind turbines, with an installed capacity of 175 iron and 500 m3 of concrete. supply power to the MATER exclusively. With the addition of the Los Teros and MW and an estimated capacity factor of 53%. • Arrival and transportation to the site of 32 Progress in 2019: Cañadón León wind farms, greenhouse gas CAMMESA has assigned it priority dispatch for wind turbines emissions will be reduced by 740,000 TON eq the sale of renewable energy in the MATER. The • Substation: Civil work was carried out and • Soil surveying works.

CO2 each year. wind farm will be built on 3,300-hectares, 45 km equipment started to be mounted. • Mounting of concrete plant away from Azul, and will require a total • Mechanical assembly was completed for • Opening of access roads We are making progress in the construction of two investment of more than USD 200 million. the first wind turbine. • Excavations for the foundations new wind farms: Los Teros, located in Azul, province of Buenos Aires, which will have an The wind farm is distributed in two facilities and • Los Teros II: This wind farm will be located in the The wind power generated at Los Teros I and installed capacity of 175 MW and Cañadón León, will be built in two stages: vicinity of Los Teros Wind Farm with 123 MW. This II will avoid emissions of 8.5 million tons of located in Cañadón Seco, province of Santa Cruz, second stage began in late 2019 and will CO2 over 20 years, compared to the same with an installed capacity of 122 MW. After • Los Teros I: installed capacity of 123 MW. 32 contribute an additional capacity of 52 MW, from power generation by a thermal power plant, completion of these projects, we will have wind turbines of 3.83 MW each, laid out across 13 wind turbines of 4 MW each, distributed on accounting for diesel savings of 81,800 m3 or increased our renewable energy capacity by 4 private fields, with a total area of 2,500 1,000 hectares. natural gas savings of 130 million m3. additional 297 MW. hectares. Progresses in 2019: Economic performance Sustainability Report 2019 > 66 — 67

Clients

Material Issue: Customer Satisfaction GRI Contents 102-2, 102-6, EU3, 103-2, 103-3

We generate renewable energies with 2019 2018 safety, efficiency, technology and quality standards to supply power to important Industrial Clients 15 12 industries and foster the energy development of Argentina. Industrial Clients - % 19% 16% of energy sold e produce electric power from thermal and renewable sources, CAMMESA 1 1 W and sell the power produced to our clients, which are classified into two main CAMMESA - % of 10 81% 84% segments: CAMMESA and private clients. energy sold

CAÑADÓN LEÓN WIND FARM Infrastructure projects The energy sold to CAMMESA in 2019 was derived 100% from thermal sources and Regarding our commercial strategy, we are making With a USD 160 million investment, the HIGH-VOLTAGE LINE was produced by Tucumán Power Generation progress to develop a world-class client portfolio, Cañadón León Wind Farm will have an SANTA CRUZ NORTE Complex (Resolution 1/2019), La Plata to supply power from renewable energy derived installed capacity of 122 MW that will enable We began construction of a 53-km high-voltage Cogeneration (Resolution 1/2019), Loma from wind farms in operation and under it to supply 600,000MWh/year of renewable line to interconnect the towns of Pico Truncado, at Campana (Resolution 21/2016 and self- construction, through long-term contracts that energy that will meet a demand equivalent to the Santa Cruz Norte substation, and Caleta Olivia, generation), and Central Dock Sud assure low risk and predictable cash flows. 150,000 households and will avoid emissions at a new Substation to be constructed as part of (Resolution 1/2019).

of 312,000 TON of CO2 each year. the project. This line will enhance the service In addition, in October 2019, the Argentine infrastructure in the region, improving the quality The main industrial client in 2019 was YPF, which Government authorized YPF Energía Eléctrica Construction of the wind farm began in early 2019. of life of the inhabitants of Caleta Olivia and bought 1,174 GWh for its operations, of which 64% Comercializadora S.A.U –a company 100% owned It will have 29 wind turbines of 4.2 MW each. The surrounding areas; it will also allow to channel the corresponds to thermal energy and the remaining by the YPF Luz Group– as WEM trading agent. power output of 122 MW will be commercialized as power output from the Cañadón León Wind Farm 36% to renewable energy. This initiative is intended to increase the supply follows: 100 MW to supply CAMMESA and 22 MW through an interconnection in the area of Cañadón The energy acquired by YPF from the Manantiales of renewable energies through the for the MATER. Progress in 2019: Seco. The work was assigned to YPF Luz by the Behr Wind Farm represented 80% of the total commercialization of third-party energy, acting CAF, and it is financed by the Province of Santa Cruz. renewable energy produced by YPF Luz. This as an intermediary between supply and the • Arrival of 19 wind turbines at Puerto Deseado energy allowed it cover 16% of its renewable growing industry demand. and transportation of 3 wind turbines to the energy needs and to become one of the first wind farm. Projects under development companies to comply with the requirements of 10 Compañía Administradora del Mercado Mayorista • 19 foundations were completed. and assessment Law 27,191 on Renewable Energies. Eléctrico Sociedad Anónima.

The rest of YPF Luz’s clients are large As part of the strategic growth plan, projects industrial users, which in 2019 acquired have been assessed and developed to continue renewable energies produced at Manantiales increasing the project portfolio underway. In Behr Wind Farm, through the MATER. 2019 we assessed non-conventional renewable energy and thermal power projects for about 2,500 MW. Each one of them is focused on meeting different demands in a sustainable manner, ensuring environmental and business sustainability. Economic performance Sustainability Report 2019 > 68 — 69

TERM OF RENEWABLE ENERGY HOLCIM ARGENTINA WILL FULFILL ITS According to a customer satisfaction CONTRACTS BY COMPANY PLANTS WITH OUR RENEWABLE ENERGY survey, YPF Luz’s service was rated YPF Luz will supply wind power from Los Teros 9.4 (out of 10), with a Net Promoter Wind Farm, for operations at the five concrete Score (NPS) of 8.86. Renewable facilities owned by Holcim Argentina in Buenos energy clients mainly appreciated the 3 or less Aires, Córdoba, Mendoza and Jujuy. With this impact on shareholders and parent initiative, Holcim Argentina will produce 1.2 companies, clients and communities million tons of concrete per year using where they operate.. renewable energy, that is the equivalent to 5 building 105,000 houses or 3,000 km of two-lane roads. This will enable the company to reduce CO2 emissions by 63,000 tons upon replacing thermal power with wind power. The emissions 10 that will be avoided will be equivalent to 60 thousand flights from Córdoba to Buenos Aires. EVENTS WITH OUR CLIENTS In-company training session on wind power CLADD AND ENOD EXECUTED AN generation for Toyota Argentina S.A. 15 AGREEMENT WITH YPF LUZ FOR THE As part of the activities carried out during the SUPPLY OF RENEWABLE ENERGY FOR THEIR month of the Environment at Toyota, we were TEXTILE MANUFACTURING FACILITIES IN invited to the Zárate plant, in the province of BUENOS AIRES AND LA RIOJA Buenos Aires, where we delivered a talk about 20 Cladd and Enod executed a 10-year agreement renewable energy generation for its employees. for 30% of their production to be carried out Today, 25% of Toyota Argentina’s output is using renewable energy, that is the equivalent to produced using YPF Luz’s renewable energy. 5,000 tons of fabrics for clothing per year. As a 21 result of this agreement, YPF Luz will supply Training Session on the MATER for companies power from Los Teros Wind Farm at 17.6 GW/h at Pilar Industrial Park. *Contract signed in 2019. per year for the textile manufacturing facilities This event was organized together with the located in San Martín and Morón, in the province consortium of owners of Pilar Industrial Park of Buenos Aires, and for the plant located in the (Parque Industrial Pilar) and the Business RENEWABLE ENERGY SUPPLIED province of La Rioja, which is equivalent to the Chamber of Parque Industrial Pilar to inform on BY PEMB – YEAR 2019 (MWH) electric consumption of 4,766 households. The the opportunities offered by YPF Luz to fact that 30% of Cladd’s and Enod’s production is companies needing to purchase power from carried out using wind power means that their renewable energy sources. A presentation was YPF PEMB Profertil Indura Eco de los Andes value chain may manufacture about 18 million made about the Forward Market, which 423 39 5 3 clothes with fabrics using wind power. In terms encompassed regulations, market development Coca-Cola of mitigation of greenhouse gases, the in Argentina, business opportunities and Roca 24 agreement will enable the company to save footprint in the MATER. YPF’s Natural Gas 2 9,184 tons of carbon dioxide emissions. market division also participated in this session. Slots 2 Training Session on the MATER Toyota at the German Chamber of Commerce. 20 Nestlé Minera Aguilar 9 0,2 Business opportunities provided by the MATER Otros to companies that choose to purchase power 21 from renewable energy sources from YPF Luz were presented at this session. It was carried out for the second consecutive year, reinforcing the *Contract signed in 2019. relationship with the companies that are members of the German chamber. We provide our industrial clients with For more information, visit: reliable, efficient and sustainable energy https://www.ypfluz.com/Clients solutions, adapting them to their needs. Economic performance Sustainability Report 2019 > 70 — 71

Share based on amount Late in 2019, the Supplier Management Division Suppliers of purchases from Suppliers was created, and new processes started to be designed for supplier qualification and Material Issue: Human Rights performance assessment11. To this end, groups GRI Contents 102-8, 102-9, 102-10, 103-2, 103-3, 407-1, 408-1, 409-1, 412-3 Foreign Domestic were defined by items of service and materials suppliers suppliers that apply to the different businesses of YPF Luz. 29% 71% Each of them has a unique criticality, that depends As part of YPF Luz’s policies, we assess our In 2019 we had 769 active suppliers, of on different assessment criteria and established suppliers of goods and services to ensure which 704 were local and 65 were foreign. attributes, related to the potential impacts on the compliance with our policies. company when faced with a deviation in supply by the supplier. Our supply chain is governed by guidelines and Suppliers by origin 2018 policies to align the technical, tax, legal, and cost Therefore, the division started to work on requirements, with ethical values and development of a tool for YPF Luz intended to environmental, labor, and social security Foreign Domestic YPF Luz worked with 72 complete a pre-qualification process at a requirements as might be applicable. In this 8% 92% contractors, which employed preliminary stage, prior to the bidding process, regard, our Code of Ethics and Conduct, and our 1,874 active people. and a qualification process based on the products commitment to sustainability, are applicable to all and services offered by the supplier. The contractors, subcontractors, suppliers of goods requirement level varies depending on the product and services, and business partners. The Code of 2019 or service to be purchased. Prior to each Ethics and Conduct has a Human Rights clause is adjudication, the supplier is required to comply required to all suppliers: “ Contractors 72 with compliance, business, economic-financial, Human Rights: Respect for Human Rights is an quality, management capacity, safety and essential requirement to develop the activities of Active people 1,874 environmental requirements, among others. the Company, which ensures its protection in its Suppliers by origin 2019 scope of action”. Loma Campana 200 In turn, in 2019, different areas of the company worked together to deploy our own SAP Ariba Manantiales Behr - Base Los These requirements are included in the stages of Foreign Domestic 1,150 system, independent from YPF S.A. This implies, our procurement process –pre-selection, 8% 92% Teros among other things, having our own platform for validation, adjudication, and assessment– which in City of Buenos Aires 12 all suppliers of the company. 2019 involved all suppliers defined as critical to preserve the reliability of our operations. Tucumán 408 In December 2019, we implemented a supplier service through different channels enabled for The general procurement and contracting Buenos Aires 137 this purpose, which is also in charge of managing conditions are intended to govern the relationships new registrations and updates of all suppliers in between YPF Luz and its suppliers and contractors the system. as to the purchase of goods or the execution of * The aggregate number of active people on our sites contracts for works or services. These conditions Purchase Volume 2019 employed by contractors was 1,874. Note that some Email: –which are accepted by suppliers upon submitting of them have worked at more than one site. [email protected] their bids– set basic obligations and Phone: responsibilities in terms of ethics and conduct, Foreign Domestic No suppliers have been identified with 0810-122-9681 (option 2) compliance, environment, health and safety, and suppliers suppliers risks related to freedom of association labor conditions. 10% 90% and collective bargaining, child labor and forced or compulsory labor. Before executing a contract, YPF Luz assesses 11 We are working on a tool for management of each supplier based on its compliance with the supplier qualifications and performance company’s policies and applicable laws and assessments. regulations. Since some of our suppliers are also suppliers to YPF S.A., their available background information and assessments are taken into consideration by the procurement team when analyzing them. > 72 — 73 05. Comprehensive Quality, Environment, Environmental Health & Safety Management performance Material Issues: Energy Use, Water and Effluents, Gas and GHG Emissions, Waste Management, Occupational Health and Safety health GRI Contents 103-2, 103-3, 403-1, 403-2, 403-4, 403-7

We have a QEHS policy in place that Quality, environment, health and safety reinforces our commitment to operate (QEHS) management is based on three in harmony with our environment. principles that guide our commitment and corporate culture:

Ensure safe working Minimize our Maintain a healthy conditions by embracing environmental impact. workplace for all workers local and internationally and the communities at renowned best practices. which we develop our activities.

Based on these principles, we defined 11 strategic vectors:

Leadership Management Incident Audits Risk Regulatory System Management Management Compliance

Emergency Contractor Health Prevention of Training Management Management Negative Environmental & Social Impact

GAP= SHGAP / ESGAP / QGAP

We also defined the Goal and Action Plans companies in the electric power generation (GAPs): sector, leader in renewable technologies, embracing internationally recognized safety, • Health and Safety Goal and Action Plan technology, efficiency, and quality standards. (SHGAP). • Environment and Social Goal and Action Our Quality, Environment, Health and Plan (ESGAP). Safety Policy lays the groundwork to build • Quality Goal and Action Plan (QGAP). upon our strategic guidelines and QEHS plans.

Our integrated QEHS management helps Get to know our Quality, Environment, streamline resources and deliver better Health and Safety Policy at: results to become one of the leading https://www.ypfluz.com/Sustainability Environmental performance Sustainability Report 2019 > 74 — 75

Quality

Material Issues: Energy Use, Water and Effluents, Gas and GHG Emissions, Waste Management, Occupational Health and Safety GRI Contents 102-11,103-2, 103-3, 403-1

t YPF Luz we have a quality program in procedures, current laws and regulations place that centralizes monitoring on and stakeholders. As of 2019 we have the A all QEHS certifications and compliance following certifications: with the quality requirements of our internal

ISO ISO ISO OHSAS ISO ISO Certificacions 9001 14001 50001 18001 45001 55001

El Bracho Thermal Power Plant (Open cycle) • • • •

San Miguel de Tucumán Thermal • • •* • Power Plant

Tucumán Power Plant • • •

La Plata Cogeneration Power Plant • • •* •* In the case of La Plata YPF Luz QEHS Loma Campana I • • • •* •* La Plata Cogeneration was Cogeneration, the Integration Sessions certified under ISO 45001, certifications under Loma Campana II • • • •* •* which promotes safe and ISO 45001 and ISO With the participation of all QEHS leaders from healthy conditions, and 50001 were added to the operating sites and sites under Loma Campana Este • • • •* •* fosters permanent the integrated constructions, we continued holding the YPF Luz improvement. This is one management system, QEHS Integration Sessions, where we presented Manantiales Behr Wind Farm •* • more step towards improving that was already the strategic guidelines and goals for 2019, with our safety, technology, certified under ISO follow up over time. As planned, a session took *Certifications obtained in 2019. efficiency and quality standards. 14001 and ISO 9001. place at each of the operational sites throughout These certifications the year. As a result of these meetings, areas for represent a significant improvement were detected to achieve sustainability integration, agility and efficiency as a team. All operations of YPF Luz have implemented an Internal Audit Training milestone, in line with our goal of becoming one In addition, a participative and reflexive Environmental Management System. They are of the leading companies engaged in power atmosphere was developed to improve the certified under ISO 14001 and ISO 9001 and have Two training sessions were carried out: one in generation in the country with world-class safety, management system and contribute to the an internal and external audit plan in place to each half of the year, based on ISO standards, technology, efficiency and quality standards. company’s goals. monitor management systems and indicators. general concepts of integrated management systems and specific to internal audits. They Monthly follow-up is performed on all operational INTEGRATED MANAGEMENT SYSTEM To optimize energy output, improve and were attended by 20 employees from different sites. sites through QGAP (Quality Goal and Action Plan). In 2019 the Manantiales Behr Wind Farm streamline processes and reduce greenhouse This plan is based on the strategic action vectors implemented a management system that integrates gases, six thermal power plants have been In 2019, the Loma Campana Thermal Power under our QEHS Policy. In turn, we have weekly Quality, Environment, Health and Safety certified under ISO 50001 Energy Management Complex obtained the certification under ISO meetings of the QEHS Committees, at which we Management, successfully passing the internal Systems. In 2018 we certified El Bracho, Loma 45001 Occupational Health and Safety complete an integrated follow-up, considering and external audits. As a result of these audits Campana I, II and Loma Campana Este power Management and ISO 55001 Industrial Asset quality, the environment, health and safety, and we could obtain the certification of our plants, and in 2019 we added La Plata Management, which are added to ISO 14001 at which the relevant events of the week are management system under the IRAM-ISO Cogeneration and San Miguel de Tucumán Environmental Management System, ISO 9001 discussed, including achievements and those 9001:2015 Quality standards, and to retain the Thermal power plants. Quality Management System and ISO 50001 pending or to be completed soon. IRAM-ISO 14001:2015 Environmental Standard. Energy Management System. Environmental performance Sustainability Report 2019 > 76 — 77

Environmental Management To achieve adequate preparation for Energy and Emissions environmental management, training Material Issues: Energy Use, Material Issues: Risk Management and Regulatory Compliance, Energy Use, Water sessions were held on environmental laws Gas and GHG Emissions and Effluents, Gas and GHG Emissions, Waste Management by Province (Buenos Aires, Tucumán, GRI Contents 103-2, 103-3, 302-1, 302-3, 302-4, GRI Contents 102-11,103-2, 103-3 Neuquén, Mendoza, San Juan, Chubut, Santa 305-1, 305-4, 305-5, 305-7 Cruz), environmental regulations passed by ENRE and TAD (Remote Processes and We strive to reduce energy consumption in e strive to care for the environment • Monitoring birdlife and bats throughout the Applications) –a platform through which our operations. As a result of a permanent and to achieve ongoing improvement entire life cycle of wind projects. permits, and compliance reports are optimization of our processes, we received W in our day-to-day management • Enhancing the environmental baselines of our processed before multiple enforcement the ISO 50001 certification in six thermal processes, to be a profitable, efficient, and environmental impact assessments, including authorities. In addition, in 2019 training power plants, an international standard sustainable energy company that streamlines archeological and paleontological surveys. sessions were held on ISO standards for that certifies improvement of the energy the use of natural resources and contributes • Taking a coordinated approach to the internal auditors of YPF Luz. management system at each organization. to energy development in Argentina. management of environmental and social aspects, communicating our projects and In 2019 we obtained seven environmental For more information, visit: QEHS Management is a process that begins future operations to the community and to our permits for renewable energy projects from solar https://www.linkedin.com/posts/ at the very first stage of each project’s life stakeholders to ensure environmental and and wind sources, and for conventional energy ypfluz_ypfluz-activity-6634124325026881537-IrH2 cycle. This allows for an early risk social sustainability. projects, two of which are under IFC standards. identification so that preventive, control, mitigating, and/or compensation actions can Environmental management at YPF Luz is be planned. Each change or new project is contained in its Operational Excellence Policy, Energy consumption by the company (in GJ) 2019 2018 analyzed as part of the integrated and its implementation follows the guidelines of management system. OHSAS 18001 (Safety), ISO 14001 (Environment) Total fuel consumption 47,563,235 53,103,389 and ISO 9001 (Quality). One of the central We also engage in the identification of aspects of this Policy is environmental care and Total fuel consumption from non-renewable sources 47,521,042 53,083,728 applicable legal requirements (national, it includes guidelines such as prevention, provincial, and municipal) and international rational energy use, efficiency in use of Total fuel consumption from renewable sources 42,193 19,661 best practices and standards. Several of our resources, reduction of emissions into the projects were subject to environmental and atmosphere; and an adequate management of Electricity, heating and steam purchased for consumption 44,755 31,093 social audits which we implement following waste focused on reduction. the standards of the International Finance Self-generated electricity, heating, cooling and steam 27,928,812 30,350,075 Corporation (IFC), as in the case of the As part of the management system, we receive Manantiales Behr Wind Farm, funded by IDB regular audits (both internal and external), to Electricity, heating, cooling and steam sold 27,199,654 29,675,671 Invest. We leverage this experience by raising see to its implementation, identifying deviations our internal QEHS standards, including: and opportunities for improvement. We Total energy consumption* 48,337,148 53,808,886 implement Environmental Management Programs, which are reviewed by oversight *Total energy consumption (in GJ) = Consumed non-renewable fuel + Consumed renewable authorities every six months. Monitoring is also fuel + Electricity, heating, cooling and steam purchased to be consumed + Self-generated We drive actions performed through the QEHS Committees, while electricity, heating, cooling, and steam – electricity, heating, cooling and steam sold. ongoing reviews are handled by the Management System Department. Each member of YPF Luz to enhance has a strong commitment, driven by the leadership of our Management Team. environmental sustainability. Environmental performance Sustainability Report 2019 > 78 — 79

Since implementation of the Energy Energy intensity For the 2019 Report, the annual emissions value Did you know? An Emissions 2019 2018 Management System, the company’s energy (in GJ/MWh) was more solid than in 2018, which serves as a Reduction Certificate is a consumption could be reduced, resulting in an baseline for comparative purposes. Therefore, negotiable document equivalent energy intensity decrease of 2.35% over 2018. Energy intensity* 6.23 6.38 for this Report, the reduction of GHG emissions is to one ton of carbon dioxide Some measures implemented to enhance energy calculated considering the annual difference of (CO2), the emission of which is performance in power generation assets were: * Total energy consumption in emissions from 2018 to 2019. This difference is sought to be avoided. This GJ/Produced energy in MWh. due to a reduction of energy produced by the certificate may be acquired by • Increased awareness and training in energy company. individuals and companies, to efficiency. contribute to and certify the • Reviewed and upgraded process control and Reduction of Energy reduction of their carbon footprint. 2019 2018 measuring equipment. Consumption (in GJ) Reduction of GHG • Reviewed equipment maintenance plans and 2019 2018 emissions (in tCO eq) procedures to streamline efficiency. Reduction of Energy 2 5,471,739.19 N/A* • Implemented new energy efficiency standards Consumption in the energy service and product procurement Reduction of GHG 343,171 N/A* process. * We took the 2018 annual total consumption as a emissions Today, YPF Luz may issue 266,482 • Replaced lighting fixtures with LED. comparative basis. certificates, based on the period from the • Monitored and measured energy performance * The value mentioned in the 2018 Sustainability beginning of operations to December 31, based on energy efficiency indicators. Report is not comparable to the value reported 2019, which is equivalent to 266,482 tons of

• Created the Energy Efficiency Committee. Direct emissions of greenhouse gases, in in this year. avoided CO2. The Wind Farm has the capacity tons of equivalent carbon dioxide, to generate certificates for an estimated

The reduction in consumption also derives from decreased 11.4%, reaching 2.7 million tons. 250,000 tons of CO2 a year. conditions and variables of the energy demand in Significant air emissions 2019 2018 the reference period. A 5,471,739.1963 GJ (in kg) difference was obtained, accounting for a 10.17% Direct emissions of GHG 2019 2018 decrease compared to 2018. (in tCO eq) Nitrogen oxides (NOx) 5,175,810 5,262,874 2 7,758,004 MWh Energy intensity was redefined as a new specific Total direct emissions Volatile organic compounds 2,673,464 3,016,636 272,730 295,337 Electric Energy Produced parameter and was included as a denominator: of GHG (scope 1) (VOC) energy produced in MWh; therefore, it cannot be compared to the energy intensity indicator Tucumán 1,547,355 - Particles (PM) 82,370 63,865 mentioned in the 2018 Sustainability Report. The redefined energy intensity (GJ/MWh) for 2018 was Loma Campana 566,358 - 2,673,465 tn 6.38. Upon comparing the annual values, the In February 2019, the Manantiales Behr Wind Farm CO equivalent emitted energy intensity was reduced by 2.35%. La Plata Cogeneration 559,751 - obtained validation of Emissions Reduction Certificates 2

(241,571 tCO2e a year) under the Verified Carbon Standard (VCS), the main voluntary carbon market worldwide. This ensures the project quality and CO Equivalent Emitted 2 2019 2018 Intensity of compliance to commercialize the certificates on by Site (in Ton) 2019 2018 GHG Emissions the domestic and international voluntary market. Loma Campana 566,358 366,781 Intensity of GHG 0.34 0.36 emissions* La Plata Cogeneration 559,751 460,246

*Tons of CO equivalent/Energy produced in MWh. 2 Tucumán 1,547,355 2,189,607 The calculation includes CO2, NOX, N2O, COVNM, CO and CH gases and particle emissions. 4 Manantiales Behr WF 0 0 Environmental performance Sustainability Report 2019 > 80 — 81

mortality impact due to collision and electrocution. Finally, to add more value to the forest program, There was no evidence of bats at the site. Passive share this experience and leverage synergies monitoring was carried out in areas surrounding with other corporate programs such as the the site through ultrasonic detection systems and Volunteer Program, throughout the year, we using mist nets, at preliminary project stages. implemented an internalization process concerning the nursery’s operations, engaging TREE NURSERY all our employees in several activities (Family Day, Volunteers at Schools, etc.) At the Tucumán Power Generation Complex, YPF Luz has a nursery based on seedling Water and Effluents production. In 2019, 130,000 seedlings were Material Issues: Risk Management and delivered to the Province of Tucumán, under an Regulatory Compliance, Water and Effluents agreement with the Environment Secretariat. GRI Contents 103-2, 103-3, 303-1, 303-2, 303-3, 303-4, 303-5 We have implemented a cooperation strategy with Tucumán’s Environment Secretariat (SEMA, YPF Luz’s Environmental Monitoring Plans for its Spanish acronym), as part of the encompass periodical monitoring of its liquid Provincial Re-forestry Program, with a final effluents, by permanently monitoring scope of 1.8 million trees that will be planted compliance with permissible discharge limits12. province-wide. Biodiversity behavioral analysis. This enabled us to implement Water Withdrawal 2019 2018 Material Topics Investment and Local adequate control measures since the wind farm SEMA has prioritized forestry and re-forestry (in Kton)* Community Programs design stage. efforts in certain degraded areas of the Province GRI Contents 103-2, 103-3, 413-1 of Tucumán, primarily, floodable areas. In Total water withdrawal** 4,746 5,613 The Biodiversity Management Plan developed addition, jointly with municipal governments, a at Manantiales Behr Wind Farm has three plan was designed to forest urban and peri-urban Surface water 1,043 769 We transform wind into energy, and we objectives: areas. This program is carried on by producing do it while caring for biodiversity. 100,000 trees per year (native and exotic Underground water 3,703 4,844 • To establish methodologies for restoration species), coordinating efforts for the sustainable In addition to our Environmental Management of the affected areas. development of trees, their breeding at nurseries * Calculated according to the unit used in our Plans which include preventive, monitoring, • To monitor birdlife on an ongoing basis. atTucumán Power Generation Complex , and environmental reporting corporate tool (APA). mitigation and compensation actions, we • To take measures to reduce the impact their subsequent delivery to SEMA. ** Fresh water. implement a Bird and Bat Monitoring Plan in the on wildlife. early stages of our wind projects, designed in In 2019, the second stage of production and Water withdrawal, discharge of liquid accordance with international standards. Studies were carried out to assess the extent of delivery of 100,000 trees was implemented while effluents and waste, have decreased year plant coverage in locations with oil -related the baseline genetic material began to be on year 15.5%, 34% and 1.1%, respectively. At Manantiales Behr, Cañadón León, Los Teros I activities to obtain indicators of passive produced for the third stage, which will be y Los Teros II Wind Farms, we have established rehabilitation processes developed in the Wind produced and delivered in 2020. Also, progress There is a significant difference in the surface birdlife monitoring plans to survey the specific Farm. In view of the arid and semiarid is being made in the creation of new terms of water discharge volume, given that at the richness and variety of birds present in the wind characteristics of the Patagonian ecosystems, reference to launch a bidding process for Tucumán Power Plant, real values began to be farms and on the high-voltage lines, we measure periodic monitoring and observations are production of the second batch of 300,000 forest recorded in 2019. All surface water discharge nesting, survey bats, and, in particular, at the conducted to assess the ability of these seedlings, for the period 2021-2023. declared in this point is related to the Plant and Manantiales Behr Wind Farm (which is ecosystems for natural restoration and the time all water discharge reused for irrigation relates operational) we keep a record of wind-related required for ecological succession. As a result of to Loma Campana. mortality. These monitoring programs will these plant surveys, plant coverage recovery can continue throughout the life cycle of the wind be estimated. This recovery was achieved with farms, to minimize the impact on biodiversity in tilling works on lands under recovery, following 12 Applicable regulations and, if the area. the construction stage. applicable, IFC standards.

In 2019 we raised the birdlife monitoring Surveys were initiated on birdlife 20 months standards for target species. Vantage points were before the start of operations at the Wind Farm. added, in accordance with the specifications of As a result of these early surveys, action could be the Good Practice Guide for Wind Development in taken regarding the design of the overhead Argentina. We recorded additional flying transmission lines, with specific measures taken characteristics at strategic areas for a better since the construction stage to reduce the bird Environmental performance Sustainability Report 2019 > 82 — 83

• In 2019 we used 455,298 kilotons of liquid Comprehensive Waste 60% EAPORATION effluents to irrigate the Green Lung. Management • 100% of effluents were used for irrigation, distributed as follows: direct tree irrigation: 80%; Material Issue: Waste Management firebreak irrigation: 15%; backwash and irrigation GRI Contents 103-2, 103-3, 306-2, 306-4 of perimeter fence: 5%. • The lung has a water reservoir with a capacity of The waste management process encompasses a 2.25 kilotons, that enables irrigation independent comprehensive process, with emphasis on waste from operation of the thermal power plants. classification, segregation, treatment and final • The Green Lung is a part of the Loma Campana disposal and, where feasible, donations. For waste power generation process and operates 365 days transportation, treatment and final disposal, in 100% WATER WITH REFRIGERATION a year, with three full-time workers entirely assets where multiple options are available, we dedicated to its care as well as an agronomist carry on a tender process, following which waste NEUQUEN that studies and improves the forest management is handled by the awardee (authorized RIER 3 KILOMETRES GREEN LUNG development. contractor). Waste transportation, treatment and LOMA CAMPANA 40% LIQUID EFFLUENTS • Effluents are distributed across the lung over a final disposal contractors are subject to ongoing COMPLE linear length of 150 kilometers of drip irrigation. controls and monitoring. • The lung contributes to the fixation of approximately 3,024 tons of CO2 per year We have a Corporate Waste Management Policy Water discharge (in kton) 2019 2018 Forestation has yielded (estimate based on a 72-hectare plantation with in place, which sets out the procedures specific outstanding results, both in a fixing of 42 t/ha/year). to each operating site. We also deliver training Total water discharge 612 926 terms of tree growth as well to minimize the use of disposable packages and as in terms of promotion of For more information, visit: encourage recycling initiatives. In 2019, in Surface water 157 734 a suitable habitat for the https://www.linkedin.com/posts/ Tucumán we continued to work on a compost development of native ypfluz_vacamuerta-activity-6600475195050430464-hCjh project using organic waste, mainly derived Water for reutilization birdlife and fauna. from the offices, cafeteria and tree trimming 455 192 (irrigation)* for forestation purposes. To this end, organic material is collected in the nursery area * Total liquid effluents already treated are reused for following preparation for these purposes. irrigation of the forestation named “Green Lung”, located within a hydric stress area. Waste by type and disposal 2019 2018 As an environmentally and socially viable solution method (in kg) Water consumption (in kton) 2019 2018 to manage the liquid effluents of the Loma Campana Power Generation Complex, we Total Waste 234,900 237,489 Total water consumption 4.134 4.687 developed a 132-hectare Green Lung with a population of 100,000 poplars set in a challenging Hazardous Waste 98,219 44,622 Total water consumption in environment from an agronomic point of view, 588 577 hydric stress areas * entirely irrigated with effluents generated by the Non-hazardous waste 136,681 192,867 thermal power plants. This project –agreed upon * Total water consumption in hydric stress areas with the Añelo Municipality and Neuquén’s Bureau (only LC) = Consumed surfaced water (only of Water Resources– allows to reuse the plant’s- attributable to LC) – Water discharged at LC (reused controlled liquid effluents to irrigate a 132-hectare All generated hazardous for irrigation in its entirety). area of poplars. This action provides multiple waste is transported, treated environmental and social benefits, such as avoiding and disposed of in accordance The water we use in the power generation water and wind erosion, capturing CO2 by means of with current laws. processes can be divided by source of origin. As the poplars’ photosynthesis process favoring a a result of this categorization, we find surface suitable environment for the development of local and underground water. In the case of Tucumán, fauna, and enhancing the visual impact of this arid area. it derives from an underground source and it is where the largest water consumption takes place. > 84 — 85 06. Social Performance Our People Material Issues: Employment, Training and Education, Diversity and Equal Opportunities, Human Rights GRI Contents 103-2, 103-3

ur Human Resources Policy and The Human Resources team provides the Strategy sets out the guiding necessary tools and helps define consistent O principles for human relations criteria to take better actions and make at YPF Luz, namely: better decisions; it supports leaders and managers in the development of their management and leadership skills, and implements each people-related action, as well as all practices that help position YPF Luz as a recognized company in the employment market. These actions Respect Transparency encompass those required to: and Trust and Honesty • develop and empower our employees, building a work and corporate culture, • retain the best technicians and professionals, • develop young professionals and internship programs, Integrity, Cooperation, • Implement initiatives aimed at fostering Inclusion and Teamwork and integration, inclusion, diversity, gender Ethical Conduct Help to achieve equality, and non-discrimination on any in all our actions goals basis, • offer competitive salaries and wages, • ensure an adequate value proposition for each employee, and • be a leading company in implementing lines of work to achieve these goals and strengthen our employer brand at the Open and Fluid Employees’ local and regional levels. Communication Safety and at all levels Wellbeing

People management is a non-delegable duty of leaders and managers, who must support the professional development, offer opportunities, listen and communicate, care for individual comments, and respond to every request. Social performance Sustainability Report 2019 > 86 — 87

Diversity and Equal 2019 2018 2019 2018 2019 2018 Opportunities Employees by type of Employees by sex 100% 100% Coordinación/Supervisión Material Issues: Employment, Employee Training employment contract and sex and Education, Diversity and Equal Opportunities, Men 80% 79% Full-time Men 80% 79% Human Rights GRI Contents 102-8, 102-41, 103-2, 103-3, 401-1, Women 20% 21% Men 80% 79% Women 20% 21% 401-2, 401-3, 404-2, 405-1, Employees by employment Professionals, analysts 338 297 Women 20% 21% contract and sex and operators

Fostering a diversity and inclusion-driven culture Permanent 336 292 Part-time Men 63% 65% is one of the strategic initiatives embedded in YPF Luz’s human resources management that Men 267 234 Men 100% 40% Women 37% 35% will help achieve our strategic goals. We work to ensure mutual respect and a comfortable, healthy Women 69 58 Women 0% 60% Technicians and safe working environment. The company’s Employees by location and by Code of Ethics and Conduct requires employees Interns 2 5 Men 96% 96% not to discriminate against anyone based on race, age average (in years) religion, political or union-related beliefs, Men 2 2 Loma Campana 36 35 Women 4% 4% national origin, YPF Luz seeks to foster a language, sex, Women 0 3 Manantiales Behr 37 36 Interns corporate culture open to marital status, diversity, integration of age, disability Employees by location and sex City of Buenos Aires 38 38 Men 100% 40% multicultural visions consistent or any other with the company’s behavioral individual Loma Campana 100% 100% Tucumán 41 41 Women 0% 60% values and internal rules. difference. Under Employees no circumstances Men 100% 100% Buenos Aires 41 42 338 297 will the company by age group tolerate any conduct of harassment, abuse of Women 0% 0% Employees by location 22 to30 years old 58 56 authority, threats, intimidation, moral harassment, offensive behavior or any other form of aggression Tucumán 100% 100% Neuquén 9% 10% 31 to 40 years old 135 114 or hostility resulting in an intimidating environment. The company has made channels and mechanisms Men 89% 89% Tucumán 35% 35% 41 to 50 years old 109 97 available to make any relevant complaints in case of a breach, ensuring that not retaliation takes place. Women 11% 11% City of Buenos Aires 34% 34% Over 50 years old 36 30

Buenos Aires (including Los We have a Recruitment Policy in place, which Manantiales Behr 100% 100% 15% 13% establishes the general guidelines for hiring, Teros and La Plata) including non-discrimination of any nature. In all Men 96% 92% Manantiales Behr 7% 8% events, the recruitment policy must be consistent Employees by job category with technical and generic qualifications required Women 4% 8% for the position and must be oriented to be as and gender inclusive as possible in terms of candidates Buenos Aires 100% 100% Managers that are best suited to the profile and needs of the company. Applications from graduates are Men 92% 92% Men 96% 91% encouraged through visits to technical schools. Women 8% 8% Women 4% 9%

City of Buenos Aires 100% 100% Head Offices

Men 56% 57% Men 80% 80%

Women 44% 43% Women 20% 20% Social performance Sustainability Report 2019 > 88 — 89

New Hires 2019 2018 Employee Turnover 2019 2018 • Sindicato Regional de LUZ y Fuerza de la 2019 2018 Patagonia (LyF Pat.): 4 employees Total number of new hires 63 169 Total turnover 17 14 • Asociación de Profesionales Universitarios del APSEE 6 5 Agua y la Energía (APUAYE): 48 employees New hires by sex 63 169 Turnover by sex • Asociación del Personal Jerárquico del Agua y Neuquén 26 23 la Energía (APJAE): 25 employees Men 49 123 Men 13 12 • Asociación del Personal Superior de Empresas FATLyF 7 6 de Energía (APSEE): 6 employees. Women 14 46 Women 4 2 APUAYE 7 5 100% of our employees who are part of a trade New hires by location 63 169 Turnover by location union are under the collective bargaining APJAE 12 12 agreements. Employees are given a two week Neuquén 3 5 Neuquén 2 1 notice in case of any significant changes that Chubut 8 7 may substantially impact their employment. Tucumán 23 15 Tucumán 3 4 APUAYE 2 1 2019 2018 City of Buenos Aires 24 95 City of Buenos Aires 7 4 APJAE 2 3 Permanent employees by Buenos Aires (including Buenos Aires (including Province and union-related 338 297 11 39 3 3 LyF PAT 4 3 Los Teros and La Plata) Los Teros and La Plata) status

Manantiales Behr 2 15 Manantiales Behr 2 2 Non-bargaining 177 160 Interns 2 5

New hires by age groups 63 169 Turnover by age groups Tucumán 23 23 Tucumán 2 2

22 to 30 years old 20 31 22 to 30 years old 5 3 Buenos Aires 20 16 City of Buenos Aires 0 2

31 to 40 years old 31 66 31 to 40 years old 9 5 City of Buenos Aires 115 98 Chubut 0 1

41 to 50 years old 12 58 41 to 50 years old 2 2 Neuquén 4 6

Over 50 years old - 14 Over 50 years old 1 4 Chubut 15 17 COMPENSATION AND BENEFITS

Rate of New Hires 19% 57%13 Rate of employee turnover14 6% 5% Bargaining 159 132 YPF Luz favors competitive, attractive, motivating and fair compensation structures. Our Tucumán 93 78 employees’ compensation has a fixed component, comprising wages and additional items according In the context of promoting equal opportunities RELATIONSHIP WITH TRADE UNIONS FATLyF 45 39 to applicable bargaining agreements, and a across all processes and spaces of the company, 53% of employees hold non-represented variable portion, which is linked to performance in 2019 we launched a Diversity Program and positions, while the remaining 47% are APUAYE 39 31 and goal achievement, and social security developed specific workshops on gender equality, represented by the following unions, by function benefits, making up an employee’s total intended to reconsider and question our and geographic area: APJAE 9 8 compensation. paradigms. There were 6 half-day intensive workshops with a total of 608 hours, 100 • Federación Argentina de Trabajadores de LUZ Buenos Aires 32 24 We monitor the changes in the market’s participants from the City of Buenos Aires, La y Fuerza (FATLyF): 53 employees macroeconomic variables to calculate the annual Plata, Tucumán and Manantiales Behr. • Sindicato de LUZ y Fuerza de Capital Federal FATLyF 1 0 cost-of-living adjustment to salaries. This (LyF Cap.): 23 employees. adjustment is applicable to non-bargaining and In addition, 15 women identified with career LyF CAP 23 19 bargaining employees, according to their development potential were included in management- respective collective negotiations. related leadership training, such as Inspiring APJAE 2 0 Leader, Motivating Leader, Management Program, 13 All hires were taken into account, including Management of compensation is based on pay and technical programs. They were developed transfers from YPF S.A. bands for non-bargaining personnel and wage together with YPF SA and the main universities of 14 Turnover rate calculated with respect to the scales for bargaining employees, depending on Argentina: ITBA, AUSTRAL, Di Tella, etc. number of departures over the average number each case. In this way, the company ensures of employees during the year *100%. higher internal equity among all employees. Social performance Sustainability Report 2019 > 90 — 91

Parental Leave 2019 2018 Intern Benefits: position. On the other hand, we have career • Health Insurance plan. coaches and/or mentors, particularly for new Employees who had 336 292 • Statutory life insurance. professionals or interns joining the company. leave rights • End-of-year gift. Men 267 234 • Snacks/meals card. We surveyed the training needs of all our • Transportation to operations. employees distributed across 5 sites. Women 69 58 In addition, the workplace quality of life was We identified over 300 training units to be Employees who used 4 7 enhanced, with benefits that promote balance implemented. their leave between job and personal life: Men 3 6 We held 23 assessment meetings with leaders • Stipend for child day care for children up to from all sectors, covering all our headcount and Women 1 1 4 years old. developing our 2019 Annual Training Program. • Child Birth gift. An app was developed for internal training Employees who returned 4 6 • School kit for parents with school age children. assessment and development, to share the to work after leave • Flexible working hours and home-office option company’s know-how through cross-divisional Men 3 6 arranged with each leader, if the function allows it. trainings on a wide range of topics including, • Reduced working hours and unpaid extended among others, SAP for procurement users, anti- Women 1 0 maternity leaves. corruption management, operation of thermal • Additional paternity leave days. power plants, solar power, YPF Luz projects, and Active employees 4 6 • Vacation time in addition to the time established by law. impact of chemical process on energy generation. after 12 months • Discounts on products and services and for the Men 3 6 purchase of vehicles. The training actions plans are subject to review Average salary for women to 2019 • Birthday benefit. on an ongoing basis, and annually, at the time of average salary for men Women 1 0 performance appraisal to update each Women / men compensation (%) 97% employee’s requirements and needs. Rate of return to work 100% 94% Training and Development Material Issues: Employee Training, Human Rights In 2019, our performance-linked compensation Retention rate 100% 94% GRI Contents 103-2, 103-3, 404-1, 404-2, 404-3, 412-2 included a bonus for 175 non-bargaining All full time employees were employees and 159 bargaining employees. We encourage the development of our subject to performance Aimed at motivating and rewarding people for Concerning benefits, the policy and scope were employees’ professional career and appraisal. the annual achievement of the business goals, strengthened to improve the quality of life of our generate value because we believe the the program was based on a set of measurable, employees. These benefits include: success of organizations depends on what specific goals and indicators established at corporate people build. level under YPF’s Management-by-Objectives • Short- and long-term bonuses. Program for each business unit and individual. • Family health insurance plans. Training is an important part of our company’s • Personal loans up to 3 salaries. culture. All employees, regardless of their level BONUS AND • Saving and pension plans with company or seniority, are aware of the need to constantly INCENTIVE PLANS matching contributions. improve their competences, aptitudes, and skills. YPF Luz has a short-term variable incentive • Optional life insurance, additional to the Each sector leader understands and commits to program, involving cash payments to the statutory life insurance, which provides supporting their team members along their participating employees, which is linked to the coverage in case of an incapacitating accident individual career development plans and will achievement of company and business unit or disease. establish the necessary actions to ensure performance goals, as well as individual goals • Transportation for staff engaged in operations. everyone’s professional development. These on each employee’s performance appraisal, • Cafeteria and meals at sites, and discounts in plans must contain specific technical training depending on their bargaining status. Inclusion lunch for corporate personnel. actions (inherent to the respective discipline, in one program or another will depend on the • Discounts at fitness centers for employees and supplementary, or horizontal), generic and/or area and professional category of each employee. relatives. management-related, and as applicable to an employee’s current or future position.

We develop training road maps establishing the main, but not all, contents an employee needs to know and deal with according to his or her Social performance Sustainability Report 2019 > 92 — 93

Employee training hours 2019 2018 In line with our training approach intended to promote In 2019 we implemented an We finished the second year position according to their profile. Professional respect for human rights, activities were carried important employee of the Energy Post- careers at our company are developed based on Total training hours 21,224 12,542 out in connection with related issues, for example, training program, reaching Graduate Course that was an individual plan, in line with personal interests we encouraged participation in an intensive week 21,224 hours of training, jointly developed with ITBA, and the company’s needs. Compensation is Tucumán 7,424 6,506 in the program developed by GE on Leadership equivalent to 63 hours per which has had more than 40 differentiated and will increase according to (Crotonville) for all of our first-line managers and employee. students in the 2 editions. established guidelines and on merit (both the fixed Neuquén 2,023 1,595 aimed at industry leaders worldwide, intended to The course promotes and the variable portions of an employee’s promote motivational skills based on cultural pluri- concept integration of the remuneration). Ciudad de Buenos Aires 8,199 2,323 participation. We participated in various self- business and market among professionals in leadership and leadership programs organized by different areas of the company, focused on the For more information, visit: Buenos Aires 2,198 928 the company to develop management skills that energy industry and the characteristics and https://www.ypfluz.com/NuevosProfesionales ensure respect, development and motivation of management of the electric market. Chubut 1,382 1,190 those who are part of the company. Over 10 TESTIMONIAL repetitions of the YPF Luz Compliance and Code We developed the 1st in-company Post-Technical FACUNDO ÁVILA, SOUTH REGION Average training 63 42 of Ethics workshop were held. These workshops Program together with Universidad Tecnológica In September 2018, a few months after I graduated, hours by individual encompass aspects related to respectful behavior Nacional, a one-and-a-half-year program. It is I decided to move from Corrientes to the South of Average training hours by gender that do not entail discrimination in any of the addressed to technical, maintenance and operations Patagonia, accepting the challenge of joining the activities we carry out. All employees were trained employees, and is mainly intended to professionalize YPF Luz Family as a New Professional. Direct and Men 63 42 in the 10 LIFE-SAVING GOLDEN RULES, intended our personal across all locations. Twenty-five nonstop, I started my functions at the Manantiales to value comprehensive care at workplace. We participants started the program. In 2019 participants Behr Wind Farm, where I am now holding the Women 59 42 developed the in-company auditor course completed the subjects in the initial module position of Electric Maintenance Engineer. I have the providing in-house training to employees for intended to balance the level of technical privilege of being part of a dynamic and cross- Average training hours by category detection of any deviations from certified knowledge, to continue attending our industry- disciplinary work team, where I can apply my standards, which contemplate as part of their specific courses in 2020. technical expertise and analytical skills. I am very Management 158 31 items, formal mechanisms for each employee to satisfied because I have been, and I am always make complaints of abusive behaviors and INTERNSHIP PROGRAM heard when making decisions. Day after day I gain Head Offices 76 39 suggest improvements: mailbox, committee, Under this program, interns have an opportunity countless experiences, training and learn a lot employee representative, etc. to gain on-the-job experience, which helps them from my workmates, who make huge contributions Coordination/Supervision 70 63 supplement their academic education. to my professional development. Our in-company workshops on diversity and Throughout the program, the intern receives I would with no doubt recommend any young Technicians 45 30 inclusion are 100% oriented to strengthen mutual support from a mentor who will guide the professional searching for a job and interested in respect, promote equal opportunities and raise onboarding process, convey our culture and the electric energy market to apply to be a part of Professionals, Analysts 50 50 matters that may help us grow as a company in business practices, and conduct assessments the YPF Luz New Professionals Program. and Operators the direction of inclusion. and follow-up during this first stage of an intern’s Training by type 100% 100% professional career. This experience provides TESTIMONIAL 2,796 hours of training in Human Rights a global business vision and helps acquire SAMUEL OLIVA, SOUTH REGION Generic 27% 15% policies and procedures, delivered to all differentiating management and leadership tools. In February 2019 I joined YPF Luz and was assigned our personnel15. to work at the Manantiales Behr Wind Farm as a Technical 73% 85% For more information, visit: New Professional in the General Services area https://www.ypfluz.com/Pasantias providing support to Warehouses, and South Language course 85 75 Operations. While on the New Professionals NEW PROFESSIONALS program, the experience was highly gratifying and Corporate 81% 31% For 9 months, we support our new hires to help rewarding. I could attend courses, talks, training them acquire a deep understanding of the sessions and participated at meetings with other Operations North 1% 51% company and its operating sites. We also deliver onboarding NPs. I would like to thank YPF Luz for trainings on technical, management and generic trusting me and giving the opportunity to work at a Operations Center 5% 4% skills. At the end of this period, the new company that is constantly growing at a steady pace. professionals will continue their job on a business Operations West 1% 7%

15 Operations South 9% 7% Workshops directly related to Human Rights, as well as talks about Compliance and related QEHS. Social performance Sustainability Report 2019 > 94 — 95

We build high-performance teams in a YPF LUZ QUARTERLY MEETINGS cooperative environment that fosters open Four YPF Luz Meetings were held throughout the discussion and aims to create a suitable year. These quarterly meetings are attended by workplace climate. all employees to provide them with updates on the company. The Meetings include a space for WORKPLACE CLIMATE COMMITTEE questions and comments made directly to the The Workplace Climate Committee is formed by CEO and the Management Team. representatives from all sites and is coordinated by Human Resources. All employees are invited YPF LUZ VALUES RECOGNITION to join the Committee. Representatives from At Quarterly Meetings, teams that have shown each site are selected through a draw among outstanding performance for achieving any goal in candidates on an annual basis. A regular member line with the company’s values receive a special and an alternate member are designated for each recognition. In 2019 four quarterly recognitions site. The Committee analyzes the results of the were granted, as well as a special recognition Workplace Climate Survey and proposes actions to the maintenance and operations team that and initiatives to improve workplace climate, contributed to restoring power supply upon which are assessed by the management team. occurrence of the blackout on June 16, 2019. The “Birthday” benefit was implemented as a result of the proposals made in 2019. INTERNAL COMMUNICATION CAMPAIGNS We seek to promote our personnel’s commitment “IN FAMILY” PROGRAM to engaging in responsible conduct. In 2019 the Being aware of the importance of the role each main campaigns to be noted included: the “Energy family plays in our personnel’s daily life, we have Efficiency Campaign,” “YPF Luz Values Campaign,” organized family visits at La Plata, Manantiales “Suggestions and Grievances Campaigns,” the Behr (Chubut), Tucumán, Loma Campana (Neuquén) “Compliance Channel Campaign,” among others. Organizational Climate Based on our annual Climate and Commitment operations and the Corporate Offices in Buenos Survey, we gathered actions and suggestions Aires. Employees’ children could play along with Our people’s energy is a differentiating from our work team. In 2019 the survey their parents, got to know their workplace, and value, which is reflected in their commitment, encompassed more than 50% of employees (169 the operations and visions of our company. teamwork, and passion for their day-to-day people). The general level of satisfaction with the activities to achieve results. company was 82%. LUNCHES WITH THE CEO We organized 15 Lunches with the CEO, which consist of face-to-face meetings to maintain closer and personal dialogues. Initiatives and Results by dimension proposed improvements that were later worked on by the Management Team resulted from these BRAND YPF 84% 13% 3% meetings with an “open agenda”.

COMMITMENT 82% 13% 5%

% Favorable. Percentage % Neutral. Percentage of Unfavorable. Percentage of respondents who were of respondents who were not of respondents who were not according to a dimension or item. Neither agree nor disagree according to a dimension with a dimension or item. or item. Social performance Sustainability Report 2019 > 96 — 97

Safety • Incident and accident management, Occupational Health and Safety investigations and improvement actions. The wellbeing of our work team is an essential • Industrial asset risk management. Material Issues: Occupational Health and Safety pillar of our corporate culture, with special • Regulatory compliance assurance. GRI Contents 103-2, 103-3, 403-1, 403-2, 403-3, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10 focus on prevention. The YPF Luz culture • Emergency management, evacuation drills. means caring for each other and always • Contractor management. going forward in the same direction: to • Driving behavior index management. For YPF Luz, caring for the health and 2019 2018 achieve efficient, reliable, transparent and • Hand care prevention campaign. safety of all people working at its safe operations. • Psychoactive Substance Control Program operations is a top priority, including Hours worked 4,052,003 1,671,345 (alcohol and drugs). suppliers and contractors. We have established strategic action lines and • Training and implementation of the SIGEO tool YPF Luz 645,274 489,166 keep a monthly record of the progress made on in all assets of the company. Our QEHS Policy and our internal procedures the Safety and Health Goal and Action Program • Over 32,900 hours of safety training (both for are applicable to both our employees and Contractors 3,406,729 1,182,179 (SHGAP). Some of the actions completed in 2019 our own personnel and contractors). contractors and set out, as core principles, included: • We trained both to our own personnel and Participants in Training ensuring safe working conditions and 16,069 6,021 contractors in commitment to safety, by maintaining a healthy work environment for all Sessions • Safety leadership among Senior Management. dissemination of 10 Life-Saving Golden Rules workers and the communities where we operate. YPF Luz 994 749 • Participation in safety committees, internal and To observe these principles, our occupational external audits. health and safety management seeks to Contractors 15,075 5,272 • safety and environment training to leaders. preserve the integrity of people, our own and • Review, update and adjustment of our corporate third party’s property, assuming that: Training Hours 32,972 8,183 safety procedures.

• All occupational incidents, accidents and YPF Luz 3,059 2,014 diseases can be prevented. • Compliance with all applicable occupational Contractors 29,913 6,169 10 LIFE-SAVING GOLDEN RULES health and safety standards is the responsibility of all individuals developing activities at all ad s afety areas of the company. standards, training delivered to our own personnel Ro W or • Raising awareness among individuals and contractors was reinforced, and field k a t he contributes to the welfare at the workplace, monitoring works were also reinforced through k ig or h and to the better individual and collective preventive safety observations, control over w t

n development of the workplace community. contractors’ personnel permits through the hired io t a resources system (HRS), safety shutdowns and v a c x L We promote ongoing learning review of safety programs, among other actions. i E f t i for our people, by delivering G GOL n IN D V E A N g

S R comprehensive training and - o E U p L F support at each stage of I E e

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C h n o a i n t a g l e o m s I a r n e a g w e o m P

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s Pr ce o pa jec s tio ed n a fin nd Con contact area Social performance Sustainability Report 2019 > 98 — 99

The priority we give to safety is reflected in We implemented and applied Standard All our industrial assets personnel and weekly coordination meetings at which all 2019 2018 10.096 on Workplace Risk Assessment and contractors are covered by an Occupational managers take part. These meetings invariably Standard 10.065 on Safety and Environmental Health and Safety Management System begin with a QEHS incident analysis, which may Incidents 48 33 Risk Management in Industrial Assets. subject to internal and external audits. involve an incident occurred at our own or another company. An analysis is jointly YPF Luz 8 12 DRIVING BEHAVIOR INDEX (DBI) • We delivered first aid, CPR with use of AED performed on the failure and actions that could We monitor the Driving Behavior Index (DBI) on a and Ergonomics training courses. have been taken to prevent it. Contractors 40 21 weekly basis for all employees who have a license • A new Annual Training Plan was implemented to drive YPF Luz-owned vehicles, having achieved for operating staff, including the following ACCIDENT AND ENVIRONMENT MANAGEMENT a 0.9 index well below the annual target of 3.0. topics: first aid and CPR, cardiovascular (GAMA) AND OPERATIONAL EXCELLENCE prevention, ergonomics, drug use, HIV and MANAGEMENT SYSTEM (SIGEO) Incidents/Accidents by Sector 2019 other communicable diseases, nutrition, Until August 2019, we used the GAMA System Driving Behavior Index (DBI) training in occupational health in compliance to record and monitor incidents, accidents, with SRT Resolution 905/15 at all assets. Sites in operation 42% investigations, improvement actions, and • We controlled and monitored the results of 2.5 employees joining and leaving the company. In Sites under construction 58% 2.30 examinations with prevalent diseases and September, we started managing them with the 2 records of health-related non-compliance SIGEO tool. 1.60 (actual goal attainment with focus on risk 1.5 1.30 groups and active employed population). 1.10 In 2019 we recorded: 1.40 1.10 1.10 • Annual checkups were performed in Incidents/Accidents by Type 2019 1 1.20 0.90 0.80 0.90 0.90 0.80 • 3 computable lost time accidents (CLTA), which 0.90 0.90 0.90 0.90 0.90 accordance with SRT Resolution 37/10, with 0.5 0.70 0.70 0.70 involved contractor’s personnel. 0.60 0.60 an outstanding rate of compliance by staff at Industrial Incidents 16 0.40 • 12 emergency and evacuation drills at all 0 all assets. operating sites of YPF Luz. Incidents on Means of Transport 4 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC • A medical care email was made available to • Delivery of personal protective equipment as the employees to provide a direct contact required, based on the tasks performed and Personal Accidents 28 2019: 0.90 2018: 1.07 mechanism. personal fire-proof and electric arc-resistant • Notification, control and monitoring was personal protective clothing duly certified under implemented for absent workers for illness the IRAM-NFPA Standards, to all our personnel. There were no records of deaths resulting Occupational Health or family member illness reasons. from an occupational disease or condition, • We implemented a database to have access 2019 2018 or any injury caused by an accident at work Regarding our employees’ health, we monitor and to exams and medical results. (in relation to our own personnel or contractors. keep record of their annual medical checkups and • Psychometric examinations were performed register them in our health management systems. to check the ability to drive at all assets. Accident Frequency 0.74 0 Rate (AFR). Goal ‹1 We analyze the results of preventive exams, Incidents or Accidents 2019 identifying prevalent cases. Based on this, we design by body part and execute preventive campaigns, segmented by 2019 prevalent disease and by specific segments of the affected populations. Arm/hand 39% • We timely report to leaders and managers any Knee 3% non-compliance with periodical checks (both All our sites have health care preventive and risk checks, following applicable units in place for employees Face/nose 11% laws and regulations). and contractors, and medical • We implement a Flu Vaccination Campaign. emergency action plans in Head 4% • We train our staff in First Aid and CPR, place, prioritizing specific Ergonomics and Nutrition. care at the initial moments of Legs/feet 29% • We manage the medical checkups of our an incident. personnel and contractors. Lumbar 14% • We assess and register the respective medical clearances in outsourced resource systems. Social performance Sustainability Report 2019 > 100 — 101

representatives. The program encompassed Our Communities USD 24268.4 training to develop skills required for their role Donations as skillful and proactive speakers in various Material Issues: Investment and Local Community Programs situations and times of crisis in the public sphere. GRI Contents 103-2, 103-3, 413-1 We contribute to economic and social development USD 38889.6 by way of several initiatives and activities: Investment in Activities Horticulture and Recycling Day: In 2019, we implemented a program involving workshops on horticulture and waste separation with focus on USD 181,790.5 prevention, waste generation reduction and the Environmental Investment16 classification required to enable recycling at eight schools near the community of El Bracho, Tucumán. This program consisted of 2 training sessions at each school, carried out together with USD 244,948.5 teachers and volunteers of YPF Luz, and students Total could prepare a vegetable garden and learned about its care and maintenance. For assembly of the fence, we used recycled pallets in disuse from 1500 our operations. beneficiaries • Schools 8 • Students 173 • Teachers and Assistants 20 • Delivered Resources 128 The Institutional Relations Department implements Community Engagement Plans at each site where the company operates. These plans are revised every six months and serve as a basis to mitigate risks and improve community engagement. e seek to foster an open and Our Social Investment Strategy has the seamless dialogue with each following goals: A community engagement manager has been W community to identify the impacts appointed at each of the company’s sites. In the resulting from our activities, address • Improve the quality of life and infrastructure first quarter of 2019, we trained them on how to 16 Delivery of 100,000 seedlings to the questions and complaints, and take social of the communities where we operate. listen and become involved with the community community of Tucumán in compliance with investment actions relevant to each community • Contribute to enhancing education quality. and other stakeholders, in their role as local Resolution No. 429 signed with SEMA. and our employees. • Foster knowledge development and dissemination to benefit the community, with The Policy on Social Investment and Donations emphasis on the efficient use of energy and establishes the parameters for implementation of renewable energies. corporate social responsibility initiatives. We seek • Cooperate with professional, business and to make contributions that offer creative, flexible community associations, whose efforts may and efficient solutions to the needs of the communities complement YPF Luz’s operations and help where we operate. The policy encompasses every improve services to the public. donation, volunteer action, commitment, community engagement action or any other investment The 2019 Social Investment Plan included associated with social, community or institutional over 40 activities determined with the projects. Each donation or social investment action communities at all locations where we conducted by YPF Luz is assessed and approved operate. We carried out activities, by a Social Investment Committee with members including horticulture and recycling from the Institutional Relations Department, workshops, forestry sessions, game Compliance, QEHS, Human Resources, Legal assembly workshops, talks and training Affairs and the CEO. seminars on renewable energies. Social performance Sustainability Report 2019 > 102 — 103

Energy talk with YPF Luz leaders: Over 10 talks Training in the workshops Vos y la Energía (You and presentations were carried out in fairs, seminars and Energy) organized by the YPF Foundation: and local events, to promote the company’s activities This workshop is designed to train YPF Luz and educate on electric power generation and volunteers to be able to convey, in a playful and renewable energies. In 2019 we continued working appealing manner, elementary concepts on together with YPF Foundation in the process of energy and energy efficiency to children in energy transformation, through training and primary schools (preferably from 8 to 12 years promotion activities using the Renewable Energy old). It is based on contents and pedagogic Mobile Classroom, where employees and experts guides for teachers, designed by the YPF of YPF Luz shared their knowledge on renewable Foundation in its Program Vos y la Energía. In energy and development of projects such as 2019, more than 20 volunteers were trained in Manantiales Behr in Comodoro Rivadavia, Azul Buenos Aires. and Bahía Blanca which were attended by more than 600 people. DONATIONS • 1,000 poplars from our Green Lung to the We cooperated with our professionals in the community of Añelo. review of contents for the educational institution • 100 gas cylinders to schools in Tucumán, that were Instituto de Educación Técnico Profesional de used to prepare breakfasts and lunches for students. Añelo, a regional project led by Fundación YPF, • Reuse of resources to create social value: More which coordinates the contributions and efforts than 50 pallets for assembly of vegetable gardens from the public and private sector to ensure and in Tucumán. improve technical vocational training options for • 4 fire extinguishers to the kindergarten Jardín de people, focused on the development of Vaca Muerta. infantes Mil Grullas de La Plata. • Furniture for schools in Ensenada and Tucumán. We worked together with YPF Foundation, the Foundations and Companies Group (Grupo de Fundaciones y Empresas), Local Innovation Corporate Volunteer Work Network (Red para la Innovación Local) in a public-private cooperation project for social Forestry Days: In 2019 we carried out forestry Improvements to Juanito Foundation Premises: inclusion of youth through sports and culture in activities together YPF Luz volunteers. Trees were YPF Luz volunteers participated in a day to Lules, Tucumán. In a collaborative manner and The company initiated a Volunteer donated to the community of Cañadón Seco and improve spaces and the playground at Juanito in coordination with the municipal government Program, in which 91 volunteers Añelo. The trees were planted together with students Foundation (Buenos Aires) together with and other companies, an interventional prototype participated (30% of staff), who from Schools 350 and 100 at the park known as children residing in the child care facilities. was prepared for the creation of "Club de Jóvenes" contributed a total number of 461 “Plaza de las Escuelas”, in Añelo, we cultivated them (Youth Club) based on refunctioning an existing hours of volunteer work. at the nursery of our Green Lung, containing 100,000 Assessment of electric installations with YPF sports club in the area. poplars that were irrigated daily using effluent water Luz experts: In 2019 four surveys were conducted from the Loma Campana Facilities. Over 100 on educational institutions of El Bracho and In addition, we contributed to detecting challenges students and 9 volunteers participated. Añelo, to determine the electric conditions of and mapping players in the communities where their premises. Reports were submitted to each we operate through the design of an Action Plan The volunteer program has been incorporated as Site Visits: Over 10 guided visits were carried out institution with recommendations from our experts. in Comodoro Rivadavia, Cañadón Seco and part of the company’s corporate culture, and it is in Manantiales Behr, Tucumán, Loma Campana Ensenada implemented by YPF Foundation. In an essential element of our Social Investment and the projects under construction Los Teros and Community Meetings: Ten meetings were held the case of Comodoro Rivadavia and Ensenada, Strategy to contribute to the progress of people Cañadón León. At each visit, we presented what to follow up on social investment actions and we also participated as a jury member in an and communities, with active employee the company does, the importance of electric improve the dialogue with stakeholders at each Ideatones that enables collaborative engagement. energy, renewable energies and energy efficiency, of our sites. co-designing projects that will be implemented in and we described in detail the activities carried the city. These plans are intended to provide tools In 2019, the Steering Committee approved and out at the relevant site. Community Volunteer Work: As a result of the for participative urban planning towards sustainable developed the Policy on Corporate Volunteering, Children’s Day campaign, our employees donated development of cities where the energy industry so that personnel can participate in social over 100 presents to Juanito Foundation. operates, through a methodology that enables investment activities at each of the sites. The Company volunteers customized each present early identification of priority projects for the city, Institutional Relations Department oversees the to be given to the children on their special day. for subsequent design of an action plan on a program planning and implementation. collaborative basis. Social performance Sustainability Report 2019 > 104 — 105

In 2019: Corporate Volunteer Work 2019 We are certain that our employees are • 30% participation of company employees in “I loved helping and working together with the best asset, and we believe that each volunteer work. the whole team that visited the Valdocco Volunteers 91 of us can contribute our time, skills • Over 460 hours of volunteer work in more than Foundation; I will participate again next time”. and talent to projects and activities to 40 activities. Maximiliano de Jolly, Cañadón Seco. Men 52 help those who need it the most.

“Great experience; I encourage more “These activities make us feel that our Women 39 volunteers to get involved.” small contribution can help those in need”. Joaquín Aguirregabiría, Buenos Aires. Horacio de Babino, La Plata. Hours of volunteer work by gender 461

“An unforgettable and inexplicable “Excellent initiative, and great for the Men 235 experience. So gratifying that it fills the commitment of the school and students.” soul. I am grateful for the opportunity to Carla de Vega Rengel, Tucumán. Women 226 take part”. Delfina Ruiz O´Connor, Tucumán. > 106 — 107 07. GRI Content 102-55

GRI Content Index YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. 2019 Sustainability Report

Sustainable GRI Content Page or reference Omission Development Standard Goals GRI 102 - GENERAL DISCLOSURES 2016 1. Perfil de la Organización 102-1 Name of the organization 14 Activities, brands, products, and 102-2 14, 20, 53, 69 services 102-3 Location of headquarters 14, 53 102-4 Location of operations 14, 53 102-5 Ownership and legal form 14 102-6 Markets served 14 , 53, 69 102-7 Scale of the organization 13, 14, 50 Information on employees and 102-8 72, 88 8 - 10 other workers 102-9 Supply chain 20, 72 Significant changes to the 102-10 organization and its supply 50, 53, 62, 72 chain Precautionary principle or 102-11 53, 62, 76, 78 approach 102-12 External initiatives 23, 27 102-13 Membership of associations 23

Installed capacity, broken down EU1 by primary energy source and by 14, 20, 53 regulatory regime

Net energy output broken down EU2 by primary energy source and by 53 regulatory regime

Number of residential, EU3 industrial, institutional and 69 commercial customer accounts 2. Strategy Statement from senior 102-14 4, 6 decision-makers Key impacts, risks, and 102-15 4, 6, 25, 53, 62 opportunities 3. Ethics and Integrity Values, principles, standards, 102-16 17, 43 16 and norms of behavior Mechanisms for advice and 102-17 43 16 concerns about ethics GRI content index Sustainability Report 2019 > 108 — 109

YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. 2019 Sustainability Report 2019 Sustainability Report

Sustainable Sustainable GRI GRI Content Page or reference Omission Development Content Page or reference Omission Development Standard Standard Goals Goals GRI 102 - GENERAL DISCLOSURES 2016 The management approach and its 103-2 50 4. Governance components 102-18 Governance structure 39 103-3 Evaluation of the management approach 32, 50 102-19 Delegating authority 39 GRI 201- ECONOMIC PERFORMANCE (2016) Consulting stakeholders on economic, Direct economic value generated and 102-21 33 16 201-1 50, Note 1 8 - 9 environmental, and social topics distributed Composition of the highest governance Financial assistance received from 102-22 39 5 - 16 201-4 50 body and its committees government 102-23 Chair of the highest governance body 39 16 ANTI-CORRUPTION 102-25 Conflicts of Interest 39 GRI 103- MANAGEMENT APPROACH (2016) Role of highest governance body in Explanation of the material topic 102-26 17 16 103-1 33 setting purpose, values, and strategy and its boundary Evaluating the highest governance The management approach and its 102-28 39 103-2 43 body’s performance components Identifying and managing economic, Evaluation of the management 102-29 43 16 103-3 32, 43 environmental, and social impacts approach Effectiveness of risk management GRI 205- ANTI-CORRUPTION (2016) 102-30 43 processes Operations assessed for risks related 205-1 43 16 Review of economic, environmental, to corruption 102-31 43 and social topics Communication and training about anti- 205-2 43 16 5. Stakeholder Engagement corruption policies and procedures 102-40 List of stakeholder groups 29 Confirmed incidents of corruption 205-3 43 16 102-41 Collective bargaining agreements 88 8 and actions taken 102-42 Identifying and selecting stakeholders 29 AVAILABILITY AND RELIABILITY 102-43 Approach to stakeholder engagement 29 GRI 103- MANAGEMENT APPROACH (2016) 102-44 Key topics and concerns raised 33 Explanation of the material topic 103-1 33 6. Reporting Practices and its boundary Entities included in the consolidated The management approach and its 102-45 33, 50 103-2 49, 53 financial statements components Defining report content and topic 103-3 Evaluation of the management approach 32, 53 102-46 33 boundaries GRI- AVAILABILITY AND RELIABILITY 102-47 List of material topics 33 Planned capacity against projected 102-48 Restatements of information There is no restatement of information. electricity demand over the Long term, EU10 53 There are no changes in the broken down by energy source and 102-49 Changes in reporting reporting process. regulatory regime 102-50 Reporting period 33 DEMAND-SIDE MANAGEMENT 102-51 Date of most recent report Year 2018 GRI 103- MANAGEMENT APPROACH (2016) 102-52 Reporting cycle 33 Explanation of the material topic 103-1 33 Contact point for questions regarding and its boundary 102-53 33 the report The management approach and its 103-2 53 Claims of reporting in accordance with components 102-54 33 the GRI Standards 103-3 Evaluation of the management approach 32, 53 102-55 GRI content index 108 SYSTEM EFFICIENCY 102-56 External assurance 33 GRI 103- MANAGEMENT APPROACH (2016) MATERIAL TOPICS- GRI 200 ECONOMIC STANDARDS Explanation of the material topic 103-1 33 ECONOMIC PERFORMANCE and its boundary GRI 103- MANAGEMENT APPROACH (2016) The management approach and its 103-2 49, 53 Explanation of the material topic components 103-1 33 and its boundary 103-3 Evaluation of the management approach 32, 53 GRI content index Sustainability Report 2019 > 110 — 111

YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. 2019 Sustainability Report 2019 Sustainability Report

Sustainable Sustainable GRI GRI Content Page or reference Omission Development Content Page or reference Omission Development Standard Standard Goals Goals GRI- SYSTEM EFFICIENCY Nitrogen oxides (NOX), sulfur oxides 3 - 12 - 14 305-7 (SOX), and other significant air 79 Average generation efficiency of - 15 EU11 thermal plants by energy source and 20, 53 emissions by regulatory regime EFFLUENTS AND WASTE ENERGY GRI 103- MANAGEMENT APPROACH (2016) GRI 103- MANAGEMENT APPROACH (2016) Explanation of the material topic 103-1 33 Explanation of the material topic and its boundary 103-1 33 and its boundary The management approach and 103-2 75, 76, 78, 85 The management approach and its its components 103-2 75, 76, 78, 79 components Evaluation of the management 103-3 32, 75, 76, 78, 85 103-3 Evaluation of the management approach 32, 75, 76, 78, 79 approach GRI 302- ENERGY (2016) GRI 306- EFFLUENTS AND WASTE (2016) Energy consumption within the 7 - 8 - 12 306-2 Waste by type and disposal method 85 3 - 6 -12 302-1 79 organization - 13 306-4 Transport of hazardous waste 85 3 - 12 7 - 8 - 12 ENVIRONMENTAL COMPLIANCE 302-3 Energy intensity 79 - 13 GRI 103- MANAGEMENT APPROACH (2016) 7 - 8 - 12 Explanation of the material topic 302-4 Reduction of energy consumption 79 103-1 33 - 13 and its boundary WATER AND EFFLUENTS The management approach and its 103-2 42, 43, 53, 78, 83 GRI 103- MANAGEMENT APPROACH (2016) components Explanation of the material topic 103-3 Evaluation of the management approach 32, 43, 53, 78, 83 103-1 33 and its boundary GRI 307- ENVIRONMENTAL COMPLIANCE (2016) The management approach 103-2 75, 76, 78, 83 In 2019, no fines or penalties were and its components imposed on YPF LUZ for non-compliance Non-compliance with environmental 103-3 Evaluation of the management approach 32, 75, 76, 78, 83 307-1 with environmental laws and 16 laws and regulations GRI 103- MANAGEMENT APPROACH (2018) regulations, nor were there any cases Interactions with water as a shared submitted to mediation proceedings. 303-1 83 6 - 12 resource MATERIAL TOPICS - GRI 400 SOCIAL STANDARDS Management of water discharge- EMPLOYMENT 303-2 83 6 related impacts GRI 103- MANAGEMENT APPROACH (2016) GRI 303- WATER AND EFFLUENTS (2018) Explanation of the material topic 103-1 33 303-3 Water withdrawal 83 6 and its boundary 303-4 Water discharge 83 6 The management approach and its 103-2 87, 88 303-5 Water consumption 83 6 components EMISSIONS 103-3 Evaluation of the management approach 32, 87, 88 GRI 103- MANAGEMENT APPROACH (2016) GRI 401- EMPLOYEMENT (2016) Explanation of the material topic New employee hires and employee 103-1 33 401-1 88 5 - 8 - 10 and its boundary turnover The management approach and its 103-2 75, 76, 78, 79 Benefits provided to full-time employees components 401-2 that are not provided to temporary or 88 3 - 5 - 8 Evaluation of the management part-time employees 103-3 32, 75, 76, 78, 79 approach 401-3 Parental leave 88 5 - 8 GRI 305- EMISSIONS (2016) OCCUPATIONAL HEALTH AND SAFETY 3 - 12 - 13 GRI 103- MANAGEMENT APPROACH (2016) 305-1 Direct (Scope 1) GHG emissions 79 - 14 - 15 Explanation of the material topic 103-1 33 305-4 GHG emissions intensity 79 13 - 14 - 15 and its boundary 305-5 Reduction of GHG emissions 79 13 - 14 - 15 The management approach and its 103-2 75, 76, 98 components 103-3 Evaluation of the management approach 32, 75, 76, 98 GRI content index Sustainability Report 2019 > 112 — 113

YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. 2019 Sustainability Report 2019 Sustainability Report

Sustainable Sustainable GRI GRI Content Page or reference Omission Development Content Page or reference Omission Development Standard Standard Goals Goals GRI 103- MANAGEMENT APPROACH (2018) NON-DISCRIMINATION Occupational health and safety GRI 103 MANAGEMENT APPROACH - 2016 403-1 75, 76, 98 8 management system Explanation of the material topic 103-1 33 Hazard identification, risk assessment, and its boundary 403-2 75, 98 8 and incident investigation The management approach and its 103-2 43, 87, 88 403-3 Occupational health services 98 8 components Worker participation, consultation, and 103-3 Evaluation of the management approach 32, 43, 87, 88 403-4 communication on occupational health 75 8 - 16 GRI 406 NON-DISCRIMINATION 2016 and safety Incidents of discrimination and 406-1 43 5 - 8 Worker training on occupational health corrective actions taken 403-5 98 8 and safety FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 403-6 Promotion of worker health 98 3 GRI 103 MANAGEMENT APPROACH - 2016 Explanation of the material topic 103-1 33 Prevention and mitigation of occupational and its boundary 403-7 health and safety impacts directly linked 75, 98 8 The management approach and its by business relationships 103-2 72 components GRI 403 OCCUPATIONAL HEALTH AND SAFETY (2018) 103-3 Evaluation of the management approach 32, 72 Workers covered by an occupational GRI 407 FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING 2016 403-8 98 8 health and safety management system Operations and suppliers in which the 403-9 Work-related injuries 98 3 - 8 - 16 407-1 right to freedom of association and 72 8 403-10 Work-related ill health 98 3 - 8 - 16 collective bargaining may be at risk TRAINING AND EDUCATION CHILD LABOR GRI 103- MANAGEMENT APPROACH (2016) GRI 103 MANAGEMENT APPROACH - 2016 Explanation of the material topic Explanation of the material topic 103-1 33 103-1 33 and its boundary and its boundary The management approach and its The management approach and its 103-2 87, 88, 93 103-2 72 components components 103-3 Evaluation of the management approach 32, 87, 88, 93 103-3 Evaluation of the management approach 32, 72 GRI 404- TRAINING AND EDUCATION (2016) GRI 408 CHILD LABOR 2016 Average hours of training per Operations and suppliers at significant 404-1 93 4 - 5 - 8 - 10 408-1 72 8 - 16 year per employee risk for incidents of child labor FORCED OR COMPULSORY LABOR Programs for upgrading employee skills 404-2 88, 93 8 GRI 103 MANAGEMENT APPROACH - 2016 and transition assistance programs Explanation of the material topic 103-1 33 Percentage of employees receiving and its boundary 404-3 regular performance and career 93 5 - 8 - 10 The management approach and its 103-2 72 development reviews components DIVERSITY AND EQUAL OPPORTUNITY 103-3 Evaluation of the management approach 32, 72 GRI 103- MANAGEMENT APPROACH (2016) GRI 409 FORCED OR COMPULSORY LABOR 2016 Explanation of the material topic Operations and suppliers at significant 103-1 33 and its boundary 409-1 risk for incidents of forced or 72 8 The management approach and its compulsory labor 103-2 87, 88 components SECURITY PRACTICES Evaluation of the management GRI 103 MANAGEMENT APPROACH - 2016 103-3 32, 87, 88 approach Explanation of the material topic 103-1 33 GRI 405- DIVERSITY AND EQUAL OPPORTUNITY (2016) and its boundary Diversity of governance bodies The management approach and its 405-1 39, 88 5 - 8 103-2 93 and employees components 103-3 Evaluation of the management approach 32, 93 GRI content index Sustainability Report 2019 > 114 — 115

YPF LUZ - YPF ENERGÍA ELÉCTRICA S.A. Note 1: 2019 Sustainability Report

Sustainable GRI Direct economic value generated and distributed. 2019 2018 Content Page or reference Omission Development Standard Goals ECONOMIC VALUE GENERATED 18,577.1 9,378.8 HUMAN RIGHTS ASSESSMENT GRI 103 MANAGEMENT APPROACH - 2016 Revenues 16,113.9 7,124.9 Explanation of the material topic 103-1 33 and its boundary Revenues from financial investments 516.5 200.9 The management approach and its 103-2 72, 93 components Equity income in affiliates 778.2 268.0 103-3 Evaluation of the management approach 32, 72, 93 GRI 412 HUMAN RIGHTS ASSESSMENT 2016 Other operating income 712.8 1,785.0 Employee training on human rights 412-2 93 policies or procedures Other financial results 455.7 -

Significant investment agreements and ECONOMIC VALUE DISTRIBUTED (14,350.5) (4,886.7) contracts that include human rights 412-3 72 clauses or that underwent human rights screening Operating Costs 7,265.2 (2,054.5) LOCAL COMMUNITIES Payroll and employee’s benefits (1,098.3) (611.8) GRI 103- MANAGEMENT APPROACH (2016) Explanation of the material topic and its 103-1 33 Payments to the Government (taxes, duties and contributions) and income tax (3,017.2) (696.7) boundary The management approach and its 103-2 82, 102 Other operating expenses - (0.3) components 103-3 Evaluation of the management approach 32, 82, 102 Cost of interest accrued on loans (2,961.0) (606.0) GRI 413- LOCAL COMMUNITIES (2016)

Operations with local community Other financial results - (917.4) 413-1 engagement, impact assessments, and 82, 102 development programs Community investments 8,8 N/D SOCIOECONOMIC COMPLIANCE GRI 103- MANAGEMENT APPROACH (2016) ECONOMIC VALUE RETAINED 4,226.6 4,492.1 Explanation of the material topic and its 103-1 33 boundary Figures in thousand Argentine Pesos. The management approach and its 103-2 42, 43, 53 components 103-3 Evaluation of the management approach 32, 43, 53 GRI 419- SOCIOECONOMIC COMPLIANCE (2016) In 2019, there were no violations of Non-compliance with laws and socioeconomic laws and regulations that 419-1 regulations in the social and economic have given rise to the imposition of 16 area significant fines or non-monetary penalties. CUSTOMER SATISFACTION GRI 103- MANAGEMENT APPROACH (2016) Explanation of the material topic and its 103-1 33 boundary The management approach and its 103-2 69 components 103-3 Evaluation of the management approach 32, 69

Own Net Promoter Score (NPS) 69 Indicator More information About YPF Luz

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Credits Content Arrangement Institutional Relations Department, YPF Luz

Technical Assistance: AG Sustentable (ADD LOGO attached)

Design: Tholön Kunst Visual Communication

Analytic Assessment: Deloitte & Co S.A Acknowledgements To the members of YPF Luz’s Sustainability Committee and all employees who made their contributions to this report.

YPF S.A.’s Sustainability and Communication Departments

YPF Foundation ypfluz.com