Q2 2026 Grupo Energia Bogota SA ESP Earnings Call

August 14, 2026

Karen Bibiana Guzmán Vanegas: Good morning. Welcome to Grupo Energia Bogota Q2 2026 financial and operating results conference call. The results reports were published yesterday and are available on GEB's website for your reference. The conference will start with an overview of the quarter's results, the main events in the economic environment, followed by the group's financial milestones. At the end of the presentation, a Q&A session will follow. on the bottom right of your screens, you will find a question and answer section for you to write your questions at any time, or you can raise your hand if you would like to ask your questions live. Our conference speakers will be the CEO, Juan Ricardo Ortega, the CFO, Jorge Tabares, and the financing and investor relations manager, Karen Guzman. Juan Ricardo, the floor is yours.

Operator: Good morning. Welcome to Grupo Energia Bogota Q2 2026 financial and operating results conference call. The results reports were published yesterday and are available on GEB's website for your reference. The conference will start with an overview of the quarter's results, the main events in the economic environment, followed by the group's financial milestones. At the end of the presentation, a Q&A session will follow. on the bottom right of your screens, you will find a question and answer section for you to write your questions at any time, or you can raise your hand if you would like to ask your questions live. Our conference speakers will be the CEO, Juan Ricardo Ortega, the CFO, Jorge Tabares, and the financing and investor relations manager, Karen Guzman. Juan Ricardo, the floor is yours.

Speaker #1: Good morning. Welcome to Grupo Energía Bogotá Q2 2026 Final Channel Operating Results Conference Call. The results reports were published yesterday and are available on the GEB website for your reference.

Speaker #1: The conference will start with an overview of the quarter's results and the main events in the economic environment, followed by the group's financial milestones. At the end of the presentation, a Q&A session will follow.

Speaker #1: On the bottom right of your screens, you will find a question-and-answer section where you can write your questions at any time, or you can raise your hand if you would like to ask your questions live.

Speaker #1: Our conference speakers will be the CEO, Juan Ricardo Ortega; the CFO, Jorge Tavares; and the Financing and Investor Relations Manager, Karen Guzman. Juan Ricardo, the floor is yours.

Juan Ricardo Ortega: Thank you. Good morning, everyone. Welcome to our Q2 2026 earnings calls. It is my pleasure to present the key operational and strategic developments across the group during the quarter. Yesterday, 13 August, Grupo Energia Bogota commemorated the 130th anniversary of its founding. The extraordinary journey of growth, transformation, and value creation has established the company as a leading multinational platform in electricity transmission and natural gas transportation and distribution, with operations across Colombia, Peru, Brazil, and Guatemala. Throughout more than a century of history, the group has contributed to the economic and social development of millions of people by delivering essential infrastructure that enhances competitiveness, improves communities' quality of life, and generates sustainable value for shareholders, investors, and all stakeholders. This milestone is ultimately a recognition of our ability to evolve and successfully navigate challenging economic environments, together with the talent and commitment of our people.

Speaker #2: Thank you. Good morning, everyone. Welcome to our Q2 2026 earnings call. It is my pleasure to present the key operational and strategic developments across the group during the quarter.

Speaker #2: Yesterday, August 13, Grupo Energía Bogotá commemorated the 130th anniversary of its founding. The extraordinary journey of growth, transformation, and value creation has established the company as a leading multinational platform in electricity transmission and natural gas transportation and distribution, with operations across Colombia, Peru, Brazil, and Guatemala.

Speaker #2: Throughout more than a century of history, the group has contributed to the economic and social development of millions of people by delivering essential infrastructure.

Speaker #2: That enhances competitiveness, improves communities' quality of life, and generates sustainable value for shareholders, investors, and all stakeholders. This milestone is ultimately a recognition of our ability to evolve and successfully navigate challenging economic environments, together with the talent and commitment of our people.

Juan Ricardo Ortega: This milestone is ultimately a recognition of our ability to evolve and successfully navigate challenging economic environments, together with the talent and commitment of our people. We will continue building on the legacy while preparing to address future challenges and seize opportunities that contribute to the development of the territories wherever we operate. Regarding our results, adjusted EBITDA for the H1 of the year totaled approximately COP 3.2 trillion, representing a 5% decrease compared to the H1 of 2025. The comparison reflects in part the COP 153 million dividend declared by Grupo Argos that had some one-offs in the prior year, as well as the impact of the appreciation of the Colombian peso against other currencies and the current natural gas supplies constraints in Colombia that is clearly impacting TGI.

Speaker #2: We will continue building on the legacy while preparing to address future challenges and seize opportunities that contribute to the development of the territories wherever we operate.

Juan Ricardo Ortega: We will continue building on the legacy while preparing to address future challenges and seize opportunities that contribute to the development of the territories wherever we operate. Regarding our results, adjusted EBITDA for the H1 of the year totaled approximately COP 3.2 trillion, representing a 5% decrease compared to the H1 of 2025. The comparison reflects in part the COP 153 million dividend declared by Grupo Argos that had some one-offs in the prior year, as well as the impact of the appreciation of the Colombian peso against other currencies and the current natural gas supplies constraints in Colombia that is clearly impacting TGI. Over the last 12 months, EBITDA reached approximately COP 5.8 trillion, increasing 5% year-over-year. on 29 July, the group completed the first dividend payment of 2026, distributing approximately COP 1.4 trillion to more than 26,000 shareholders.

Speaker #2: Regarding our results, adjusted EBITDA for the first half of the year totaled approximately $3.2 trillion, representing a 5% decrease compared to the first half of 2025.

Speaker #2: The comparison reflects, in part, the COP 153 billion dividend declared by Argos, that had some one-offs in the prior year, as well as the impact of the appreciation of the Colombian peso against other currencies, and the current natural gas supply constraints in Colombia that are clearly impacting TGI.

Juan Ricardo Ortega: Over the last 12 months, EBITDA reached approximately COP 5.8 trillion, increasing 5% year-over-year. on 29 July, the group completed the first dividend payment of 2026, distributing approximately COP 1.4 trillion to more than 26,000 shareholders. In accordance with the distribution approved by the general shareholders meeting in March. Fitch and Moody's Rating reaffirmed GEB's international credit rating with stable outlook, highlighting the resilience of our regulated business, the geographic diversification of our portfolio, our financial discipline, and our ability to execute our growth strategy. Both agencies also recognize the strategic potential of Brazil as a long-term growth platform. Supported by the consolidation of Gebbras and the development of Verene Energia alongside La Caisse, one of the world's leading institutional investors.

Speaker #2: Over the last 12 months, EBITDA reached approximately $5.8 trillion, increasing 5% year over year. On July 29th, the group completed the first dividend payment of 2026, distributing approximately $1.4 trillion to more than 26,000 shareholders.

Juan Ricardo Ortega: In accordance with the distribution approved by the general shareholders meeting in March. Fitch and Moody's Rating reaffirmed GEB's international credit rating with stable outlook, highlighting the resilience of our regulated business, the geographic diversification of our portfolio, our financial discipline, and our ability to execute our growth strategy. Both agencies also recognize the strategic potential of Brazil as a long-term growth platform. Supported by the consolidation of Gebbras and the development of Verene Energia alongside La Caisse, one of the world's leading institutional investors. Moody's further stated that the group continues to maintain a strong capacity to mitigate risk associated with El Niño phenomenon, despite uncertainty regarding the intensity and duration of future weather events. Let's move to the next slide, please. Now we'll see the operational and market highlights.

Speaker #2: In accordance with the distribution approved by the General Shareholders' Meeting in March, the payment reflects the economic value generated and shared with those who are part of the group's shareholder base.

Speaker #2: Fitch Moody's rating reaffirmed GEB's international credit rating with stable outlook. Highlighting the resilience of our regulated business, the geographic diversification of our portfolio, our financial discipline, and our ability to execute our growth strategy.

Speaker #2: Both agencies also recognized the strategic potential of Brazil as a long-term growth platform, supported by the consolidation of Libra and the development of Verene alongside La Caisse, one of the world's leading institutional investors.

Juan Ricardo Ortega: Moody's further stated that the group continues to maintain a strong capacity to mitigate risk associated with El Niño phenomenon, despite uncertainty regarding the intensity and duration of future weather events. Let's move to the next slide, please. Now we'll see the operational and market highlights. Here I would like to begin with the recent developments in Brazil. In mid-July, we successfully closed the transaction with Axia Energia, the old Eletrobras, completing the acquisition, funded entirely by our own resources, of the remaining 49% equity interest in the four electricity transmission concessions companies in Brazil, a strategic market for the group. Full ownership of these concessions represent the first step towards the creation of the joint control platform with La Caisse.

Speaker #2: Moody's further stated that the group continues to maintain strong capacity to mitigate risk associated with the El Niño phenomenon, despite uncertainty regarding the intensity and duration of future weather events.

Speaker #2: Let's move to the next slide, please. Now we'll see the operational and market highlights, and here I would like to begin with the recent developments in Brazil.

Juan Ricardo Ortega: Here I would like to begin with the recent developments in Brazil. In mid-July, we successfully closed the transaction with Axia Energia, the old Eletrobras, completing the acquisition, funded entirely by our own resources, of the remaining 49% equity interest in the four electricity transmission concessions companies in Brazil, a strategic market for the group. Full ownership of these concessions represent the first step towards the creation of the joint control platform with La Caisse. The agreement continues to advance through the corresponding regulatory approvals in Brazil, a process that will position us as the fifth-largest private transmission player in Brazil. In Colombia, the environmental authority, Autoridad Nacional de Licencias Ambientales, approved the amendment of the environmental license for the Chivor II - Norte 230 kilovolts project, enabling the full execution of the project, a 162-kilometer transmission line.

Speaker #2: In mid-July, we successfully closed the transaction with Axia Energy, the former Electrogas, completing the acquisition—funded entirely by our own resources—of the remaining 49% equity interest in the four electricity transmission concession companies in Brazil.

Speaker #2: A strategic market for the group. Full ownership of these concessions represents the first step towards the creation of the joint control platform with La Cais. The agreement continues to advance through the corresponding regulatory approvals in Brazil, a process that will position us as the fifth-largest private transmission player in Brazil.

Juan Ricardo Ortega: The agreement continues to advance through the corresponding regulatory approvals in Brazil, a process that will position us as the fifth-largest private transmission player in Brazil. In Colombia, the environmental authority, Autoridad Nacional de Licencias Ambientales, approved the amendment of the environmental license for the Chivor II - Norte 230 kilovolts project, enabling the full execution of the project, a 162-kilometer transmission line. This decision allows progress on the strategic project aimed at strengthening transmission systems reliability and meeting growing electricity demand in Bogota and central Colombia.

Speaker #2: In Colombia, the environmental authority ANLAF approved the amendment of the environmental license for Chivor Seco Norte 230 kV project, enabling the full execution of the project of 162 km transmission line.

Juan Ricardo Ortega: This decision allows progress on the strategic project aimed at strengthening transmission systems reliability and meeting growing electricity demand in Bogota and central Colombia. This is absolutely critical because both the hydroelectricity of El Guavio and Chivor require maintenance during the summer times, and for that, the city will need to bring its energy from other areas of Colombia. With progress over 80%, Colectora continues to establish itself as a cornerstone project for Colombia's energy transition. Construction of transmission lines and substations is advancing as planned. The substation is finished, and there are just a couple of towers that need to be built in order to finish the project. This is supported by extensive community engagement efforts and a robust environmental management strategy focused on the biodiversity protection and the compliance with all the project commitments.

Speaker #2: This decision allows progress on the strategic project aimed at strengthening transmission system reliability and meeting growing electricity demand in Bogotá and central Colombia. This is absolutely critical because both the hydroelectric plants of El Guavio and Chivor require maintenance during the summer months, and for that, the city will need to bring its energy from other areas of Colombia.

Juan Ricardo Ortega: This is absolutely critical because both the hydroelectricity of El Guavio and Chivor require maintenance during the summer times, and for that, the city will need to bring its energy from other areas of Colombia. With progress over 80%, Colectora continues to establish itself as a cornerstone project for Colombia's energy transition. Construction of transmission lines and substations is advancing as planned. The substation is finished, and there are just a couple of towers that need to be built in order to finish the project. This is supported by extensive community engagement efforts and a robust environmental management strategy focused on the biodiversity protection and the compliance with all the project commitments.

Speaker #2: With progress over 80% collectora continues to establish itself as a cornerstone project for Colombia's energy transition. Construction of transmission lines and substations is advancing as planned.

Speaker #2: The substation is finished, and there are just a couple of towers that need to be built in order to finish the project. This is supported by extensive community engagement efforts and a robust environmental management strategy focused on the biodiversity protection and the compliance with all the project commitments.

Juan Ricardo Ortega: The critical infrastructure will enable the renewable energy generated in La Guajira to be injected into the National Interconnected System. This is a great opportunity for the country of the winds of the Guajira to be brought as competitive energy. In the electricity generation business, Enel Colombia continues to generate significant value with our investment portfolio, supported by higher contracted volumes, the recovery of spot market electricity prices, and continued expansion of its renewable generation platform. The commissioning of Guayepo III during Q1 2026, together with the contribution from the Parque Solar Atlántico, currently in its testing phase, further strengthen Enel Colombia's position as the country's leading solar power generator with approximately 1,115 gigawatt hour of generation and over 1.7 gigawatts of power.

Speaker #2: The critical infrastructure will enable the renewable energy generated in La Guajira to be injected into the national interconnected system. This is a great opportunity for the country, as the winds of La Guajira can be brought in as competitive energy.

Speaker #2: In the electricity generation business, Enel Colombia continues to generate significant value with our investment portfolio, supported by higher contracted volumes that recovery of spot market electricity prices and continue expansion of its renewable generation platform.

Speaker #2: The commissioning of Guayepo 3 during the first quarter of 2026, together with the contribution from the Atlantic Solar Park, currently in its testing phase, further strengthens Enel Colombia's position as the country's leading solar power generator, with approximately 1,115 gigawatt-hours of generation and over 1.7 gigawatts of power.

Juan Ricardo Ortega: The allocation of 21% of firm energy obligations in the reliability charge auction for the 2029/2030 delivery period, supported by a portfolio comprising of 12 generation units, four hydroelectric, seven solar, and one thermal plant, reaffirming the company's strategic role in ensuring long-term energy security. In the distribution segment, at Associate Enel Colombia continued to deliver solid and resilient performance driven by demand growth, expansion of the regulatory asset base, and competitive tariff component uptakes. As a result, the contribution margin increased by 15% year-over-year. At TGI, however, the regulatory and market environment continued to present significant challenges for Colombia's natural gas sector. The market remains affected by constraints associated with the limited gas availability, creating pressures on supply conditions and commercial dynamics across the industry.

Speaker #2: The allocation of 21% of firm energy obligations in the reliability charge auction for the 2029-2030 delivery period is supported by a portfolio comprising 12 generation units—4 hydroelectric, 7 solar, and 1 thermal plant—reaffirming the company's strategic role in ensuring long-term energy security.

Speaker #2: In the distribution segment, our associate Enel Colombia continues to deliver solid and resilient performance, driven by demand growth, expansion of the regulatory asset base, and competitive tariff component updates.

Speaker #2: As a result, the contribution margin increased by 15% year over year. At TGI, however, the regulatory and market environment continues to present significant challenges for Colombia's natural gas sector.

Speaker #2: The market remains affected by constraints associated with the limited gas availability creating pressures on supply conditions and commercial dynamics across the industry. Despite this environment, the company continues to closely monitor regulatory and market developments while proactively managing its operational and commercial strategy to mitigate potential impacts and preserve service quality and reliability.

Juan Ricardo Ortega: Despite this environment, the company continues to closely monitor regulatory and market developments, while proactively managing its operational and commercial strategy to mitigate potential impacts and preserve service quality and reliability. This is going to be a gap at the most a year or a couple of years while the molecule is found by other means. Finally, the newly elected Fujimori administration has identified natural gas notification and acceleration of the energy infrastructure investment as strategic priorities for the 2026/2031 period, promoting energy decentralization, regulatory simplification, and the attraction of private investments. If implemented as respect, these initiatives will create favorable conditions for the development of natural gas distribution and transportation projects, strengthening the growth outlook for the group's assets in the country, and produce very positive performance. I will now hand the call over to Jorge Tabares, Chief Financial Officer, who will present the financial performance for the quarter.

Speaker #2: This is going to be a gap at the most year or couple of years while the molecule is found by other means. Finally, the newly elected Fujimori administration has identified natural gas massification and acceleration of the energy infrastructure investment as strategic priorities for the 2026-2031 period, promoting energy decentralization regulatory simplification, and the attraction of private investments.

Speaker #2: If implemented as we expect, these initiatives will create favorable conditions for the development of natural gas distribution and transportation projects, strengthening the growth outlook for the group's assets in the country and producing very positive performance.

Juan Ricardo Ortega: If implemented as respect, these initiatives will create favorable conditions for the development of natural gas distribution and transportation projects, strengthening the growth outlook for the group's assets in the country, and produce very positive performance. I will now hand the call over to Jorge Tabares, Chief Financial Officer, who will present the financial performance for the quarter. Please, Jorge, go ahead. Thank you, everyone.

Speaker #2: I will now hand the call over to Jorge Tavares, Chief Financial Officer, who will present the financial performance for the quarter. Please, Jorge, go ahead.

Juan Ricardo Ortega: Please, Jorge, go ahead. Thank you, everyone.

Speaker #2: Thank you, everyone.

Speaker #1: Thank you, Juan Ricardo. Good morning, everyone. As of June, operating results were influenced by the 10% average appreciation of the Colombian peso against the U.S. dollar, in addition to other factors.

Jorge Andrés Tabares: Thank you, Juan Ricardo. Good morning, everyone. As of June, operating results were influenced by the 10% average appreciation of the Colombian peso against the US dollar. In addition to other factors, operating revenue decreased 13% year-over-year, including a COP -166 billion negative translation effect. All figures are going to be in Colombian billions. Of all segments, natural gas distribution was the most affected by FX translation, with COP 145, equivalent to 87% of the total translation effect. The segment results reflect a 6% reduction in pass-through revenues, which do not generate margins for Cálidda and Contugas, and are related to network expansion and gas transportation activities. At Cálidda, excluding lower pass-through revenues, the quarter reflected a stable distribution revenue performance in functional currency, partly explained by the definition of the average distribution tariff, which was favorable for the company.

Jorge Tabares: Thank you, Juan Ricardo. Good morning, everyone. As of June, operating results were influenced by the 10% average appreciation of the Colombian peso against the US dollar. In addition to other factors, operating revenue decreased 13% year-over-year, including a COP -166 billion negative translation effect. All figures are going to be in Colombian billions. Of all segments, natural gas distribution was the most affected by FX translation, with COP 145, equivalent to 87% of the total translation effect. The segment results reflect a 6% reduction in pass-through revenues, which do not generate margins for Cálidda and Contugas, and are related to network expansion and gas transportation activities.

Speaker #1: Operating revenue decreased 13% year over year, including a 166 billion negative translation effect. All figures are going to be in Colombian billions. Of all segments, natural gas distribution was the most affected by effects translation.

Speaker #1: With 145 COP, equivalent to 87% of the total translation effect. The segment results reflect a 6% reduction in pass-through revenues, which do not generate margins for CALIDA and CONTUGAS, and are related to network expansion and gas transportation activities.

Jorge Tabares: At Cálidda, excluding lower pass-through revenues, the quarter reflected a stable distribution revenue performance in functional currency, partly explained by the definition of the average distribution tariff, which was favorable for the company. At Contugas, distribution margin revenues decreased 23% year-over-year, PEN 5.4 million, mainly due to lower demand from the fishing sector associated with the El Niño phenomena. The natural gas transportation business contracted 11% year-over-year, mainly due to the reduction of the regulatory WACC from 11.88 to 10.94, and lower fixed charge revenues associated with capacity contracting adjustment by shippers.

Speaker #1: At CALIDA, excluding lower pass-through revenues, the quarter reflected a stable distribution revenue performance in functional currency, partly explained by the definition of the average distribution tariff, which was favorable for the company.

Jorge Andrés Tabares: At Contugas, distribution margin revenues decreased 23% year-over-year, PEN 5.4 million, mainly due to lower demand from the fishing sector associated with the El Niño phenomena. The natural gas transportation business contracted 11% year-over-year, mainly due to the reduction of the regulatory WACC from 11.88 to 10.94, and lower fixed charge revenues associated with capacity contracting adjustment by shippers. This trend is consistent with lower structural demand and reflects current natural gas supply availability and pricing conditions in the market. In the electricity segment, the appreciation of the Colombian peso against the US dollar generated an estimated 7, while the appreciation of the Colombian peso against the Peruvian sol resulted in an additional 14 impact. These foreign exchange effects put pressure on revenues in both the transmission and distribution businesses, which reported year-over-year declines of 4% and 6% respectively.

Speaker #1: At CONTUGAS, distribution margin revenues decreased 23% year over year, to $5.4 million, mainly due to lower demand from the fishing sector associated with El Niño phenomena. The natural gas transportation business contracted 11% year over year, mainly due to the reduction of the regulatory WACC from 11.88% to 10.94%, and lower fixed charge revenues associated with capacity contracting adjustment by shippers.

Jorge Tabares: This trend is consistent with lower structural demand and reflects current natural gas supply availability and pricing conditions in the market. In the electricity segment, the appreciation of the Colombian peso against the US dollar generated an estimated 7, while the appreciation of the Colombian peso against the Peruvian sol resulted in an additional 14 impact. These foreign exchange effects put pressure on revenues in both the transmission and distribution businesses, which reported year-over-year declines of 4% and 6% respectively.

Speaker #1: This trend is consistent with lower structural demand and reflects current natural gas supply availability and pricing conditions in the market. In the electricity segment, the appreciation of the Colombian peso against the US dollar generated an estimated 7%.

Speaker #1: While the appreciation of the Colombian peso against the Peruvian sol resulted in an additional 14% impact, these foreign exchange effects put pressure on revenues in both the transmission and distribution businesses, which reported year-over-year declines of 4% and 6%, respectively.

Jorge Andrés Tabares: Operating costs decreased 15%, COP 166, mainly due to a COP 110 FX translation effect, representing 66% of the total reduction. In natural gas distribution, the foreign exchange translation totaled COP 100 billion impact, followed by a reduction in pass-through cost at Cálidda. Natural gas transportation costs decreased 9.4% compared to Q2 2025, primarily due to lower maintenance expenses, reduced emergency response costs, and lower line pack gas consumption. In transmission, the foreign exchange translation effect amounted to COP 3, which together with lower depreciation and maintenance expenses, explains the COP 9 reduction reported in the segment. Administrative expenses declined 24% year-over-year, mainly explained by a COP 18 foreign exchange translation effect, and a lower provision related to Air-e receivable portfolio within the electricity transmission segment.

Jorge Tabares: Operating costs decreased 15%, COP 166, mainly due to a COP 110 FX translation effect, representing 66% of the total reduction. In natural gas distribution, the foreign exchange translation totaled COP 100 billion impact, followed by a reduction in pass-through cost at Cálidda. Natural gas transportation costs decreased 9.4% compared to Q2 2025, primarily due to lower maintenance expenses, reduced emergency response costs, and lower line pack gas consumption. In transmission, the foreign exchange translation effect amounted to COP 3, which together with lower depreciation and maintenance expenses, explains the COP 9 reduction reported in the segment. Administrative expenses declined 24% year-over-year, mainly explained by a COP 18 foreign exchange translation effect, and a lower provision related to Air-e receivable portfolio within the electricity transmission segment.

Speaker #1: Operating costs decreased 15%, 166 COP, mainly due to 110 effects translation effect, representing 66% of the total reduction. In natural gas distribution, the foreign exchange translation total 100 billion impact, followed by a reduction in pass-through cost at CALIDA.

Speaker #1: Natural gas transportation cost decreased 9.4% compared to the second quarter of '25, primarily due to lower maintenance expenses, reduced emergency response cost, and lower line pack gas consumption.

Speaker #1: In transmission, the foreign exchange translation effect amounted to 3, which together lowered depreciation and maintenance expenses, explains the COP 9 reduction reported in the segment.

Speaker #1: Administrative expenses declined 24% year over year, mainly explained by a COP 18 billion foreign exchange translation effect, and a lower provision related to the residual portfolio within the electricity transmission segment.

Jorge Andrés Tabares: The latter generated a COP 95 positive impact following a change in the expected credit loss methodology, under which the general approach was applied to the Air-e portfolio in accordance to IFRS 9. Administrative expenses in the natural gas transportation segment increased 42%, mainly associated with the regasification project, reflecting higher spending on technical study subscriptions and legal advisory services. The COP 5 increase in operating margins across segments was primarily impacted by the following factors. The natural gas transportation segment, which reflects the most significant impact on operating income as a result of lower revenues associated with the current constraints in natural gas availability, weakening industrial demand, and recent reduction in the regulatory WACC to 10.94%, in addition to higher administrative expenses related to the regasification project.

Jorge Tabares: The latter generated a COP 95 positive impact following a change in the expected credit loss methodology, under which the general approach was applied to the Air-e portfolio in accordance to IFRS 9. Administrative expenses in the natural gas transportation segment increased 42%, mainly associated with the regasification project, reflecting higher spending on technical study subscriptions and legal advisory services. The COP 5 increase in operating margins across segments was primarily impacted by the following factors. The natural gas transportation segment, which reflects the most significant impact on operating income as a result of lower revenues associated with the current constraints in natural gas availability, weakening industrial demand, and recent reduction in the regulatory WACC to 10.94%, in addition to higher administrative expenses related to the regasification project.

Speaker #1: The latter generated a COP 95 positive impact following a change in the expected credit loss methodology, under which the general approach was applied to the AIRE portfolio in accordance to IFRS 9.

Speaker #1: Administrative expenses in the natural gas transportation segment increased 42%, mainly associated with the regasification project, reflecting higher spending on technical studies, subscriptions, and legal advisory services.

Speaker #1: The 5% increase in operating margins across segments was primarily impacted by the following factors: the natural gas transportation segment, which reflects the most significant impact on operating income as a result of lower revenues associated with the current constraints in natural gas availability, weaker industrial demand, and the recent reduction in regulatory WACC to 10.94%, in addition to higher administrative expenses related to the regasification project.

Jorge Andrés Tabares: Second, the pressure of the FX effect on the US dollar and Peruvian soles currency denominated income from our Peruvian gas and electricity distribution businesses, as well as on transmission in Colombia and Guatemala. This was partially counteracted by the related provision of the Air-e receivables in the transmission segment, in which we use the expected losses methodology. As of June, the total Air-e receivables balance amounts to COP 284 billion. On the next slide, I will discuss the main factors explaining the evolution of net income during the quarter. Net income reached COP 702, increasing 15% year-over-year, driven primarily by equity method income, particularly the strong results delivered by Enel Colombia following the recovery in the spot market electricity prices. Financial income increased by COP 25 due to the increase in term deposits and improved investment returns.

Speaker #1: And second, the pressure of the FX effect on the US dollar and Peruvian soles currency-denominated income from our Peruvian gas and electricity distribution businesses, as well as on transmission in Colombia and Guatemala.

Jorge Tabares: Second, the pressure of the FX effect on the US dollar and Peruvian soles currency denominated income from our Peruvian gas and electricity distribution businesses, as well as on transmission in Colombia and Guatemala. This was partially counteracted by the related provision of the Air-e receivables in the transmission segment, in which we use the expected losses methodology. As of June, the total Air-e receivables balance amounts to COP 284 billion. On the next slide, I will discuss the main factors explaining the evolution of net income during the quarter. Net income reached COP 702, increasing 15% year-over-year, driven primarily by equity method income, particularly the strong results delivered by Enel Colombia following the recovery in the spot market electricity prices. Financial income increased by COP 25 due to the increase in term deposits and improved investment returns.

Speaker #1: This was partially counteracted by the related provision for AIRE receivables in the transmission segment, in which we used the expected losses methodology. As of June, the total was $284 billion pesos.

Speaker #1: On the next slide, I will discuss the main factors explaining the evolution of net income during the quarter. Net income reached 702, increasing 15% year over year, driven primarily by equity method income, particularly the strong results delivered by Enel Colombia following the recovery in spot market electricity prices.

Speaker #1: Financial income increased by 25%, due to the increase in term deposits and improved investment returns. Financial expenses increased 11%, mainly due to the impact of the $500 million international bond issuance completed in October '25.

Jorge Andrés Tabares: Financial expenses increased 11%, mainly due to the impact of the $500 million international bond issuance completed in October 2025. Foreign exchange decreased 71%, mainly reflecting the impact of foreign currency denominated financial obligations and the appreciation of the Colombian peso against the US dollar during the quarter, which generated a favorable valuation effect of the US dollar-denominated liabilities. The equity method increased by COP 119, primarily driven by Enel Colombia and Gebbras, which benefited from a 0.5 percentage points increase in the IPCA index in Brazil. Income tax expenses increased 147% year-over-year, mainly due to the higher deferred tax effects associated with dollar-denominated debt movements. As a result, the controlling net income increased 18% year-over-year, reaching COP 662.

Jorge Tabares: Financial expenses increased 11%, mainly due to the impact of the $500 million international bond issuance completed in October 2025. Foreign exchange decreased 71%, mainly reflecting the impact of foreign currency denominated financial obligations and the appreciation of the Colombian peso against the US dollar during the quarter, which generated a favorable valuation effect of the US dollar-denominated liabilities. The equity method increased by COP 119, primarily driven by Enel Colombia and Gebbras, which benefited from a 0.5 percentage points increase in the IPCA index in Brazil. Income tax expenses increased 147% year-over-year, mainly due to the higher deferred tax effects associated with dollar-denominated debt movements. As a result, the controlling net income increased 18% year-over-year, reaching COP 662.

Speaker #1: Foreign exchange decreased 71%, mainly reflecting the impact of foreign currency-denominated financial obligations and the appreciation of the Colombian peso against the US dollar during the quarter, which generated a favorable valuation effect on the US dollar-denominated liabilities.

Speaker #1: The equity method increased by 119, primarily driven by Enel Colombia and G-Brass, which benefited from a 0.5 percentage point increase in the IPCA index in Brazil.

Speaker #1: Income tax expenses increased 147% year over year, mainly due to the higher first tax effects associated with dollar-denominated debt movements. As a result, controlling net income increased 18% year over year, reaching 662.

Jorge Andrés Tabares: The group's equity method income increased 23% year-over-year, reaching COP 629 during the quarter, primarily driven by Enel Colombia, which reported a more than 50% year-over-year increase in net income during the April to June period, supported by the strong performance of generation business. Results benefited from the recovery in spot electricity prices and continued growth in power demand. Regarding our Brazilian associates, particularly Gebbras, the results improved by the increase in IPCA mentioned during the quarter, which impacted positively the performance of regulated assets. The contribution from our Peruvian associates was negatively impacted by approximately 10%, mainly due to the appreciation of the Colombian peso against the USD.

Jorge Tabares: The group's equity method income increased 23% year-over-year, reaching COP 629 during the quarter, primarily driven by Enel Colombia, which reported a more than 50% year-over-year increase in net income during the April to June period, supported by the strong performance of generation business. Results benefited from the recovery in spot electricity prices and continued growth in power demand. Regarding our Brazilian associates, particularly Gebbras, the results improved by the increase in IPCA mentioned during the quarter, which impacted positively the performance of regulated assets. The contribution from our Peruvian associates was negatively impacted by approximately 10%, mainly due to the appreciation of the Colombian peso against the USD.

Speaker #1: The group's equity method income increased 23% year over year, reaching 629 during the quarter, primarily driven by Enel Colombia, which reported a more than 50% year over year increase in net income during the April to June period, supported by the strong performance of the generation business.

Speaker #1: Results benefited from the recovery in spot electricity prices and continued growth in power demand. Regarding our Brazilian associates, particularly G-Brasil, the results improved due to the increase in EPCA mentioned during the quarter, which positively impacted the performance of regulated assets.

Speaker #1: The contribution from our Peruvian associates was negatively impacted by approximately 10, mainly due to the appreciation of the Colombian peso against the US dollar.

Speaker #1: Let's move to the next slide, please. Investments executed through June totaled $265 million, representing a 10% year-over-year increase, mainly driven by the electricity transmission business in Colombia, which accounted for 66% of the total investment and increased 23% compared to Q2 '25.

Jorge Andrés Tabares: Investments executed through June totaled COP 265 million, representing a 10% year-over-year increase, mainly driven by the electricity transmission business in Colombia, which accounted for 66% of the total investment and increased 23% compared to 2025. This reflecting a continued execution of legacy projects such as Colectora, Chivor II - Norte, Refuerzo Suroccidental, and Sogamoso. The second most important investment focus remains natural gas distribution, led by Cálidda. The 17% reduction compared to the same period last year reflects the business' growing operational maturity, which naturally requires lower levels of infrastructure and network expansion investments. The updated five-year organic CapEx plan amounts to approximately COP 1.7 billion, led by investments in the electricity transmission segment associated both with projects currently under construction and future awarded projects.

Jorge Tabares: Investments executed through June totaled COP 265 million, representing a 10% year-over-year increase, mainly driven by the electricity transmission business in Colombia, which accounted for 66% of the total investment and increased 23% compared to 2025. This reflecting a continued execution of legacy projects such as Colectora, Chivor II - Norte, Refuerzo Suroccidental, and Sogamoso. The second most important investment focus remains natural gas distribution, led by Cálidda. The 17% reduction compared to the same period last year reflects the business' growing operational maturity, which naturally requires lower levels of infrastructure and network expansion investments.

Speaker #1: This reflects the continued execution of flagship projects such as Collectora, Chivor–Tunorte, Refuerzo Suroccidental, and Sogamoso. The second most important investment focus remains natural gas distribution led by Calida. The 17% reduction compared to the same period last year reflects the business's growing operational maturity, which naturally requires lower levels of infrastructure and network expansion investments.

Jorge Tabares: The updated five-year organic CapEx plan amounts to approximately COP 1.7 billion, led by investments in the electricity transmission segment associated both with projects currently under construction and future awarded projects. While the natural gas transportation segment reflects a higher investment outlook, driven primarily by the development of the IPAT projects and ongoing network maintenance programs.

Speaker #1: The updated five-year organic capex plan amounts to approximately $1.7 billion, led by investments in the electricity transmission segment associated with projects currently under construction as well as future awarded projects.

Speaker #1: Meanwhile, the natural gas transportation segment reflects a higher investment outlook, driven primarily by the development of the EPAT projects and ongoing network maintenance programs.

Jorge Andrés Tabares: While the natural gas transportation segment reflects a higher investment outlook, driven primarily by the development of the IPAT projects and ongoing network maintenance programs. Adjusted EBITDA for the quarter reached COP 813, declining 24% year-over-year, mainly reflecting the comparison against Q2 2025, when Grupo Argos had declared COP 153 dividend. Results were also impacted by a -57 FX effect. As shown in the chart on the upper right, the variation in controlled EBITDA was primarily driven by the gas businesses. TGI, which accounts for 40% of the variation, reflects lower transportation volumes and higher expenses associated with the regasification project. Cálidda, accounting for 27%, was mainly affected by depreciation of the Colombian peso against the USD.

Speaker #1: Let's move to the next slide. Adjusted EBITDA for the quarter reached 813, declining 24% year over year, mainly reflecting the comparison against Q2 25, when Argo had declared 153 in dividends.

Jorge Tabares: Adjusted EBITDA for the quarter reached COP 813, declining 24% year-over-year, mainly reflecting the comparison against Q2 2025, when Grupo Argos had declared COP 153 dividend. Results were also impacted by a -57 FX effect. As shown in the chart on the upper right, the variation in controlled EBITDA was primarily driven by the gas businesses. TGI, which accounts for 40% of the variation, reflects lower transportation volumes and higher expenses associated with the regasification project. Cálidda, accounting for 27%, was mainly affected by depreciation of the Colombian peso against the USD.

Speaker #1: Results were also impacted by a negative $57 FX effect. As shown in the chart on the upper right, the variation in controlled EBITDA was primarily driven by the gas businesses. TGI, which accounts for 40% of the variation, reflects lower transportation volumes and higher expenses associated with the regasification projects.

Speaker #1: Calida, accounting for 27%, was mainly affected by depreciation of the Colombian peso against the US dollar. In others, ContuGas reported a significant decline due to the appreciation of the Colombian peso, lower gas demand during the first fishing season, and the lack of billing to customer TENGDA during the period.

Jorge Andrés Tabares: In others, Contugas reported a significant decline due to the appreciation of the Colombian peso, lower gas demand during the first fishing season, and the lack of billing to customer Tenga during the period. I will now hand the presentation over to Karen Guzmán, financing and investor relations manager, who will cover the debt section. Please go ahead, Karen.

Jorge Tabares: In others, Contugas reported a significant decline due to the appreciation of the Colombian peso, lower gas demand during the first fishing season, and the lack of billing to customer Tenga during the period. I will now hand the presentation over to Karen Guzmán, financing and investor relations manager, who will cover the debt section. Please go ahead, Karen.

Speaker #1: I will now hand the presentation over to Karen Guzman, Financing and Investor Relations Manager, who will cover the debt section. Please go ahead, Karen.

Speaker #2: Thank you, Jorge. Good morning, everyone. Turning to financial position during the second quarter, we maintained an active and disciplined approach to managing our debt profile.

Karen Bibiana Guzmán Vanegas: Thank you, Jorge. Good morning, everyone. Turning to financial position during the Q2, we maintain an active and disciplined approach to managing our debt profile, focused on preserving financial flexibility and maintaining a capital structure aligned with the group's long-term growth objectives. As of June, consolidated debt totaled $5.7 billion, of which 53% corresponds to GEB and 47% to our operating subsidiaries. Our financial structure continues to reflect a balanced risk profile, with 53% of debt at a fixed rate and 47% at floating rates, primarily indexed to SOFR, IBR, and CPI. In terms of currency composition, 63% of debt is denominated in US dollars, 34% in Colombian pesos, and 3% in Peruvian soles. In addition, 17% of the total debt portfolio is hedged through derivative instruments to mitigate foreign exchange exposure.

Karen Guzmán: Thank you, Jorge. Good morning, everyone. Turning to financial position during the Q2, we maintain an active and disciplined approach to managing our debt profile, focused on preserving financial flexibility and maintaining a capital structure aligned with the group's long-term growth objectives. As of June, consolidated debt totaled $5.7 billion, of which 53% corresponds to GEB and 47% to our operating subsidiaries. Our financial structure continues to reflect a balanced risk profile, with 53% of debt at a fixed rate and 47% at floating rates, primarily indexed to SOFR, IBR, and CPI. In terms of currency composition, 63% of debt is denominated in US dollars, 34% in Colombian pesos, and 3% in Peruvian soles. In addition, 17% of the total debt portfolio is hedged through derivative instruments to mitigate foreign exchange exposure.

Speaker #2: The company focuses on preserving financial flexibility and maintaining a capitalist structure aligned with the group's long-term growth objectives. As of June, consolidated debt totaled $5.7 billion, of which 53% corresponds to GEB and 47% to our operating subsidiaries.

Speaker #2: Our financial structure continues to reflect a balanced risk profile, with 53% of debt at a fixed rate and 47% at floating rates, primarily indexed to SOFR, IBR, and CPI.

Speaker #2: In terms of currency composition, 63% of the debt is denominated in US dollars, 34% in Colombian pesos, and 3% in Peruvian soles. In addition, 17% of the total debt portfolio is hedged through derivative instruments to mitigate foreign exchange exposure.

Speaker #2: In this regard, foreign exchange risk remains appropriately managed through the natural diversification of our cash flows across Colombian pesos, Peruvian soles, and Brazilian reais, complemented by both natural and financial hedging strategies.

Karen Bibiana Guzmán Vanegas: In this regard, foreign exchange risk remains appropriately managed through the natural diversification of our cash flows across Colombian pesos, Peruvian soles, and Brazilian reais, complemented by both natural and financial hedging strategies. In this context, during June, we executed a USD 160 million principal-only swap on the international bond issued in 2025, taking advantage of the appreciation of the Colombian peso against the US dollar, while further strengthening the portfolio foreign exchange risk management strategy. Consistent with our long-term funding strategy, we also advanced the filing process before the Colombian Ministry of Finance and Public Credit for the execution of a USD 600 million syndicated loan facility. From a credit metrics perspective, we closed the quarter with stronger financial indicators.

Karen Guzmán: In this regard, foreign exchange risk remains appropriately managed through the natural diversification of our cash flows across Colombian pesos, Peruvian soles, and Brazilian reais, complemented by both natural and financial hedging strategies. In this context, during June, we executed a USD 160 million principal-only swap on the international bond issued in 2025, taking advantage of the appreciation of the Colombian peso against the US dollar, while further strengthening the portfolio foreign exchange risk management strategy. Consistent with our long-term funding strategy, we also advanced the filing process before the Colombian Ministry of Finance and Public Credit for the execution of a USD 600 million syndicated loan facility. From a credit metrics perspective, we closed the quarter with stronger financial indicators.

Speaker #2: In this context, during June, we executed a $160 million principal-only swap on the international bond issued in 2025, taking advantage of the appreciation of the Colombian peso against the U.S. dollar, while further strengthening the portfolio of our foreign exchange risk management strategy.

Speaker #2: Consistent with our long-term funding strategy, we also advanced the filing process before the Colombian Ministry of Finance and Public Credit for the execution of a $600 million syndicated loan facility.

Speaker #2: From a credit metrics perspective, we closed the quarter with stronger financial indicators. Consolidated leverage, measured as net debt to EBITDA, improved from 3.3 times to 3 times compared to the same period last year, supported by 5% growth in last 12 months EBITDA and a robust cash position.

Karen Bibiana Guzmán Vanegas: Consolidated leverage measure of net debt to EBITDA improved from 3.3x to 3x compared to the same period last year, supported by 5% growth in last 12 months EBITDA and a robust cash position. Likewise, our EBITDA to interest expense coverage ratio increased from 4.8x to 5.8x, mainly as a result of the appreciation of the Colombian peso against the US dollar. In addition, we benefited from a lower average cost of US dollar-denominated debt, reflecting a more favorable interest rate environment compared to the same quarter of the previous year. At the subsidiary level, Cálidda made approximately USD 10 million in amortization payments on its existing IDB facility, reducing the outstanding balance to approximately USD 60 million.

Karen Guzmán: Consolidated leverage measure of net debt to EBITDA improved from 3.3x to 3x compared to the same period last year, supported by 5% growth in last 12 months EBITDA and a robust cash position. Likewise, our EBITDA to interest expense coverage ratio increased from 4.8x to 5.8x, mainly as a result of the appreciation of the Colombian peso against the US dollar. In addition, we benefited from a lower average cost of US dollar-denominated debt, reflecting a more favorable interest rate environment compared to the same quarter of the previous year. At the subsidiary level, Cálidda made approximately USD 10 million in amortization payments on its existing IDB facility, reducing the outstanding balance to approximately USD 60 million.

Speaker #2: Likewise, our EBITDA-to-interest expense coverage ratio increased from 4.8 times to 5.8 times, mainly as a result of the appreciation of the Colombian peso against the US dollar.

Speaker #2: In addition, we benefited from a lower average cost of U.S. dollar-denominated debt, reflecting a more favorable interest rate environment compared to the same quarter of the previous year.

Speaker #2: At the subsidiary level, Calida made approximately $10 million in amortization payments on its existing IDV facility, reducing the outstanding balance to approximately $60 million.

Karen Bibiana Guzmán Vanegas: Meanwhile, at Electro Dunas, we successfully refinanced approximately PEN 141 million of short-term debt, extended maturities, and secured more competitive financing conditions, including an interest rate reduction of approximately 30 basis points. Additionally, we obtained PEN 57 million in short-term financing to support working capital requirements and ongoing capital investment execution. With that, I will hand the call back to Jorge to continue with the ESG section.

Karen Guzmán: Meanwhile, at Electro Dunas, we successfully refinanced approximately PEN 141 million of short-term debt, extended maturities, and secured more competitive financing conditions, including an interest rate reduction of approximately 30 basis points. Additionally, we obtained PEN 57 million in short-term financing to support working capital requirements and ongoing capital investment execution. With that, I will hand the call back to Jorge to continue with the ESG section.

Speaker #2: Meanwhile, at Grupo Dunas, we successfully refinanced approximately 141 million Peruvian soles of short-term debt, extended maturities, and secured more competitive financing conditions, including an interest rate reduction of approximately 30 basis points.

Speaker #2: Additionally, we obtained 57 million soles in short-term financing to support working capital requirements and ongoing capital investment execution. With that, I will hand the call back to Jorge to continue with the ESG section.

Speaker #1: Thank you, Karen. The group continues to strengthen its social impact across the territories where it operates through initiatives for well-being and prosperity, benefiting more than 300,000 people during the first half of the year.

Jorge Andrés Tabares: Thank you, Karen. The group continues to strengthen its social impact across the territories where it operates through initiatives aimed at creating conditions for wellbeing and prosperity, benefiting more than 300,000 people during the H1. Investments accounted for approximately $6.6 million, by which the group advanced programs focused on education, employability, entrepreneurship, and community development. Key milestones included the launch of the new phase of Legacy for the Territories, the continued expansion of access to natural gas service, and recognition received by Cálidda's Community Kitchens program in Peru. Environmental stewardship remains a strategic priority for GEB. During the period, the group invested more than $4 million in environmental compliance, climate change adaptation initiatives, waste management programs, and environmental management systems.

Jorge Tabares: Thank you, Karen. The group continues to strengthen its social impact across the territories where it operates through initiatives aimed at creating conditions for wellbeing and prosperity, benefiting more than 300,000 people during the H1. Investments accounted for approximately $6.6 million, by which the group advanced programs focused on education, employability, entrepreneurship, and community development. Key milestones included the launch of the new phase of Legacy for the Territories, the continued expansion of access to natural gas service, and recognition received by Cálidda's Community Kitchens program in Peru. Environmental stewardship remains a strategic priority for GEB. During the period, the group invested more than $4 million in environmental compliance, climate change adaptation initiatives, waste management programs, and environmental management systems.

Speaker #1: Investments accounted for approximately $6.6 million, by which the group advanced programs focused on education, employability, entrepreneurship, and community development. Key milestones included the launch of the new phase of Legacy for the Territories, the continued expansion of access to natural gas service, and recognition received by Calida's community kitchens program in Peru.

Speaker #1: Environmental stewardship remains a strategic priority for GEV. During the period, the group invested more than $4 million in environmental compliance, climate change adaptation initiatives, waste management programs, and environmental management systems.

Jorge Andrés Tabares: These efforts contributed to a carbon footprint that remained 13% below target, while the recovery and reuse of more than 122,000 tons of waste and the recognition received by Cálidda to the Peru Carbon Footprint platform that demonstrates tangible progress in the group's environmental performance. Finally, strengthening corporate governance and sustainability standards that remain a priority across the organization. In this regard, GEB and La Santigi were recognized for the fourth consecutive year as the top three companies in the Ranking de Empresas de la Veeduría Distrital conducted by Bogota oversight office, reinforcing the group's commitment to transparency, integrity, and long-term value creation for all stakeholders. To summarize the quarter, I would say resilient results in a challenging environment, primarily affected by the appreciation of the Colombian peso against the US dollar and lower volumes in the natural gas transportation businesses. Our regulated assets continue to demonstrate strong operational and financial stability.

Jorge Tabares: These efforts contributed to a carbon footprint that remained 13% below target, while the recovery and reuse of more than 122,000 tons of waste and the recognition received by Cálidda to the Peru Carbon Footprint platform that demonstrates tangible progress in the group's environmental performance. Finally, strengthening corporate governance and sustainability standards that remain a priority across the organization. In this regard, GEB and La Santigi were recognized for the fourth consecutive year as the top three companies in the Ranking de Empresas de la Veeduría Distrital conducted by Bogota oversight office, reinforcing the group's commitment to transparency, integrity, and long-term value creation for all stakeholders.

Speaker #1: These efforts contributed to a carbon footprint that remained 13% below targets, while the recovery and reuse of more than 122,000 tons of waste, and the recognition received by Calida through the Peru Carbon Footprint Platform, demonstrate tangible progress in the group's environmental performance.

Speaker #1: Finally, strengthening corporate governance and sustainability standards remains a priority across the organization. In this regard, GEB, LASA, and TGI were recognized for the fourth consecutive year as the top three companies in the district companies ranking conducted by the Bogotá oversight office, reinforcing the group's commitment to transparency, integrity, and long-term value creation for all stakeholders.

Speaker #1: To summarize the quarter, I would say resilient results in a challenging environment, primarily affected by the appreciation of the Colombian peso against the US dollar and lower volumes in the natural gas transportation business.

Jorge Tabares: To summarize the quarter, I would say resilient results in a challenging environment, primarily affected by the appreciation of the Colombian peso against the US dollar and lower volumes in the natural gas transportation businesses. Our regulated assets continue to demonstrate strong operational and financial stability. Net income increased 15% year over year to COP 702 billion, supported by the contribution of strategic investments, particularly in Enel Colombia, as well as improvements in financial management.

Speaker #1: Well-regulated assets continue to demonstrate strong operational and financial stability. Net income increased 15% year-over-year, supported by the contribution of strategic investments, particularly in El Colombia, as well as improvements in financial management.

Jorge Andrés Tabares: Net income increased 15% year over year to COP 702 billion, supported by the contribution of strategic investments, particularly in Enel Colombia, as well as improvements in financial management. The group continues to maintain a strong financial flexibility with a net debt to EBITDA of 2.96x, COP 140 million of CapEx executed during the quarter, and a long-term investment portfolio, approximately COP 1.7 billion, focused on future growth. Key value drivers continue to strengthen, supported by the performance of Enel Colombia, the consolidation of the group's Brazilian platform, and the continued advancement of major transition projects in Colombia. ESG leadership remains a core differentiator to approximately $11 million investment in social and environmental initiatives, emission reductions exceeding internal targets, and multiple governance sustainability recognitions. The group continues to strengthen its position as a regional benchmark in sustainability and corporate governance. Thank you once again for your interest in the group.

Speaker #1: The group continues to maintain strong financial flexibility, with a net debt to EBITDA of 2.96, CAPEX of $140 million executed during the quarter, and a long-term investment portfolio of approximately $1.7 billion focused on future growth.

Jorge Tabares: The group continues to maintain a strong financial flexibility with a net debt to EBITDA of 2.96x, COP 140 million of CapEx executed during the quarter, and a long-term investment portfolio, approximately COP 1.7 billion, focused on future growth. Key value drivers continue to strengthen, supported by the performance of Enel Colombia, the consolidation of the group's Brazilian platform, and the continued advancement of major transition projects in Colombia. ESG leadership remains a core differentiator to approximately $11 million investment in social and environmental initiatives, emission reductions exceeding internal targets, and multiple governance sustainability recognitions. The group continues to strengthen its position as a regional benchmark in sustainability and corporate governance. Thank you once again for your interest in the group. We will now open the floor for the question.

Speaker #1: Key value drivers continue to strengthen, supported by the performance of Enel Colombia, the consolidation of the group's Brazilian platform, and the continued advancement of major transmission projects in Colombia.

Speaker #1: ESG leadership remains a core differentiator, with approximately $11 million invested in social and environmental initiatives, emission reductions exceeding internal targets, and multiple governance and sustainability recognitions.

Speaker #1: The group continues to strengthen its position as a regional benchmark in sustainability and corporate governance. Thank you once again for your interest in the group.

Speaker #1: We will now open the floor for questions.

Jorge Andrés Tabares: We will now open the floor for the question.

Karen Bibiana Guzmán Vanegas: Thank you. Thank you very much for the presentation. We will now move to the question and answer section. If you would like to ask a question, please press star 2 on your phone and wait to be prompted. If you are dialed in by the web, you can type your question in the box provided or request to ask a voice question. We already have some text questions in the queue, so we will start with the first one from Daniel Guardiola from BTG Pactual. "Hi, good morning, and thanks for the presentation. Regarding Brazil acquisition, returns on the additional 49%. Following the acquisition of Axia Energia's remaining 49% stake in Gebbras, GEB now owns 100% of four Brazilian concessions.

Operator: Thank you. Thank you very much for the presentation. We will now move to the question and answer section. If you would like to ask a question, please press star 2 on your phone and wait to be prompted. If you are dialed in by the web, you can type your question in the box provided or request to ask a voice question. We already have some text questions in the queue, so we will start with the first one from Daniel Guardiola from BTG Pactual. "Hi, good morning, and thanks for the presentation. Regarding Brazil acquisition, returns on the additional 49%. Following the acquisition of Axia Energia's remaining 49% stake in Gebbras, GEB now owns 100% of four Brazilian concessions.

Speaker #3: Thank you. Thank you very much for the presentation. So, we'll now move to the question and answer section. If you'd like to ask a question, please press star 2 on your phone and wait to be prompted.

Speaker #3: If you're online, then via the web you can type your question in the box provided, or request to ask a voice question. We already have some text questions in the queue, so I will start with the first one from Daniel Guardiola from BTG Pactual.

Speaker #3: Hi, good morning, and thanks for the presentation. Regarding the Brazil acquisition and returns on the additional 49%—following the acquisition of Axia and the remaining 49% stake in GBRAS, GEB now owns 100% of four Brazilian concessions.

Speaker #3: Can you disclose the expected equity internal rate of return or return on invested capital for the incremental investment, and compare it with GEB's cost of capital and the returns available from organic transmission opportunities in Colombia?

Karen Bibiana Guzmán Vanegas: Can you disclose the expected equity internal rate of return or return on invested capital on the incremental investment and compare it with GEB cost of capital and the returns available from organic transmission opportunities in Colombia?

Operator: Can you disclose the expected equity internal rate of return or return on invested capital on the incremental investment and compare it with GEB cost of capital and the returns available from organic transmission opportunities in Colombia?

Speaker #1: Thank you, Daniel, and good morning, everyone. I'm Jorge Tavares. So, given that this is an M&A competitive environment, the precise figures we cannot disclose, but it is accretive. The return on investment that we could get from new acquisitions in Brazil is perhaps about between 200 and 300 basis points above our cost of capital.

Jorge Andrés Tabares: Thank you, Daniel, and good morning, everyone. I am Jorge Tabares. Given that this is an M&A competitive environment, the precise figures we cannot disclose, but it is accretive. The return on investment that we could get from new acquisitions in Brazil is perhaps between 200 and 200 basis points above our cost of capital. We see the cost of capital, given the current high interest rate environment, we always take a relatively smooth approach in which we consider the last 3 years' cost of capital, and the fact that our debt is long-term debt supports, to an extent, that. Compared to the greenfield developments in transmission in Colombia, we recently have been asking or requiring projects to deliver a little bit more than 200 basis points, more in the 300 basis points range, for new projects in Colombia.

Jorge Tabares: Thank you, Daniel, and good morning, everyone. I am Jorge Tabares. Given that this is an M&A competitive environment, the precise figures we cannot disclose, but it is accretive. The return on investment that we could get from new acquisitions in Brazil is perhaps between 200 and 200 basis points above our cost of capital. We see the cost of capital, given the current high interest rate environment, we always take a relatively smooth approach in which we consider the last 3 years' cost of capital, and the fact that our debt is long-term debt supports, to an extent, that.

Speaker #1: And we see the cost of capital as, given the current high interest rate environment, we always take a kind of a relatively smooth approach in which we consider the last three years' cost of capital. And the fact that our debt is long-term debt supports that to an extent.

Jorge Tabares: Compared to the greenfield developments in transmission in Colombia, we recently have been asking or requiring projects to deliver a little bit more than 200 basis points, more in the 300 basis points range, for new projects in Colombia. Those two are the broad considerations to assess value creation in those two strategies, acquisitions and greenfield developments. The precise figures, as I said, given that it is a competitive environment in both places, is not possible to disclose.

Speaker #1: Compared to the greenfield developments in transmission in Colombia, we recently have been asking or requiring projects to deliver a little bit more than 200 basis points, more in the 300 basis points range.

Speaker #1: For new projects in Colombia, those two are kind of the broad considerations to assess value creation in those two strategies: acquisitions and greenfield developments.

Jorge Andrés Tabares: Those two are the broad considerations to assess value creation in those two strategies, acquisitions and greenfield developments. The precise figures, as I said, given that it is a competitive environment in both places, is not possible to disclose.

Speaker #1: The precise figures, as I said, given that it's a competitive environment in both places, are not possible to disclose.

Karen Bibiana Guzmán Vanegas: Okay. Thank you very much. Second question from Daniel is on ISA. There has been market discussion around potential change in ISA ownership structure. Strategically, would increasing GEB's exposure to ISA be consistent with your capital allocation framework? More broadly, what financial and strategic criteria would have to be met for GEB to consider a transformational transaction of that size?

Operator: Okay. Thank you very much. Second question from Daniel is on ISA. There has been market discussion around potential change in ISA ownership structure. Strategically, would increasing GEB's exposure to ISA be consistent with your capital allocation framework? More broadly, what financial and strategic criteria would have to be met for GEB to consider a transformational transaction of that size?

Speaker #3: Okay, thank you very much. The second question from Daniel is on ISA. There has been market discussion around a potential change in ISA's ownership structure. Strategically, would increasing GEB's exposure to ISA be consistent with your capital allocation framework?

Speaker #3: More broadly, what financial and strategic criteria would have to be met for GEB to consider a transformational transaction of that size?

Jorge Andrés Tabares: Since 5 years ago, we have said openly that ISA is an interesting asset if the owner would like to sell. Currently, we are in a slightly different place because it is a very big transaction for us, and we have successfully deployed capital in our both organic and inorganic structure. Any possible transaction, which we currently are not working on, because the owner has not disclosed any willingness to sell the asset, we will consider it with maintaining a very clear view on our financial capacity. Perhaps it will have to be with co-investors. In the past, we have spoken generally with potential co-investors, and that could be a possibility. If our leverage increases over our medium-term targets to maintain the investment grade, we will have to structure a very clear path to delever to those levels.

Jorge Tabares: Since 5 years ago, we have said openly that ISA is an interesting asset if the owner would like to sell. Currently, we are in a slightly different place because it is a very big transaction for us, and we have successfully deployed capital in our both organic and inorganic structure. Any possible transaction, which we currently are not working on, because the owner has not disclosed any willingness to sell the asset, we will consider it with maintaining a very clear view on our financial capacity. Perhaps it will have to be with co-investors. In the past, we have spoken generally with potential co-investors, and that could be a possibility. If our leverage increases over our medium-term targets to maintain the investment grade, we will have to structure a very clear path to delever to those levels.

Speaker #1: So, since five years ago, we have said openly that ISA is an interesting asset if the owner would like to sell. Currently, we're in a slightly different place because it's a very big transaction for us, and we have successfully deployed capital in both our organic and inorganic structure.

Speaker #1: So, any possible transaction which we currently are not working on, because the owner has not disclosed any willingness to sell the asset, we'll consider it.

Speaker #1: We are maintaining a very clear view on our capacity—on our financial capacity—so perhaps it will have to be with co-investors. In the past, we have spoken generally with potential co-investors, and that could be a possibility.

Speaker #1: And if our leverage increases over our medium-term targets to maintain the investment grade, we'll have to structure a very clear path to deliver to those levels in terms of the strategic intent or strategic logic of it.

Jorge Andrés Tabares: In terms of the strategic intent or strategic logic of it, Transmission Colombia is a business we know very well, and scale is an important factor in that business. We do not know much about roads, and perhaps that will not be a strategic asset for us, but making any other judgments is premature. The same thing with the Brazilian transmission portfolio. Those two are industries and assets that we know well and that we are interested in. Of course, in Peru, we are co-owners with ISA. We are 40%, so we know the asset very well. The knowledge of the industry, the long-term prospect of the industry, especially transmission industry, is what will be appealing for us. You are rightly pointing that this will be transformational.

Jorge Tabares: In terms of the strategic intent or strategic logic of it, Transmission Colombia is a business we know very well, and scale is an important factor in that business. We do not know much about roads, and perhaps that will not be a strategic asset for us, but making any other judgments is premature. The same thing with the Brazilian transmission portfolio. Those two are industries and assets that we know well and that we are interested in. Of course, in Peru, we are co-owners with ISA. We are 40%, so we know the asset very well. The knowledge of the industry, the long-term prospect of the industry, especially transmission industry, is what will be appealing for us. You are rightly pointing that this will be transformational. In case the owner decides to sell and we decide to participate, a lot of structuring needs to be done in order to be able to access to that investment from the GEB side.

Speaker #1: Transmission Colombia is a business we know very well, and scale is an important factor in that business. We don't know much about roads, and perhaps that won't be a strategic asset for us, but that's premature.

Speaker #1: Making any other judgments is premature. The same thing with the Brazilian transmission portfolio. So, those two are industries and assets that we know well and that we are interested in.

Speaker #1: And of course, in Peru, we are co-owners with ISA. We're at 40%, so we know the asset very well. The knowledge of the industry, and the long-term prospects of the transmission industry in particular, are what will be appealing for us.

Speaker #1: You're rightly pointing out that this will be transformational, and in case the owner decides to sell and we decide to participate, a lot of structure needs to be done in order to be able to access that investment from the GEB side.

Jorge Andrés Tabares: In case the owner decides to sell and we decide to participate, a lot of structuring needs to be done in order to be able to access to that investment from the GEB side.

Speaker #3: Thank you. Thank you very much. Third question from Daniel is about TGI. How much of TGI's EBITDA decline came from the lower WEC versus lower contracted capacity?

Karen Bibiana Guzmán Vanegas: Thank you. Thank you very much. Third question from Daniel Guardiola is about TGI. How much of TGI's EBITDA decline came from the lower WACC versus lower contracted capacity? Could the final correct tariff review materially change the 10.94% WACC?

Operator: Thank you. Thank you very much. Third question from Daniel Guardiola is about TGI. How much of TGI's EBITDA decline came from the lower WACC versus lower contracted capacity? Could the final correct tariff review materially change the 10.94% WACC?

Speaker #3: Could the final, correct tariff review materially change the 10.94% WEC?

Jorge Andrés Tabares: We expect that we are going to be able to charge the new WACC as soon as the new rates are in place, which we have expected momentarily for a few months now. It is about COP 6,000 million per month. The numbers reflected in the quarter are about COP 17,000 million of negative impact.

Speaker #1: So we expect that we're going to be able to charge the new WAC as soon as the new rates are in place, which we have expected momentarily for a few months now.

Jorge Tabares: We expect that we are going to be able to charge the new WACC as soon as the new rates are in place, which we have expected momentarily for a few months now. It is about COP 6,000 million per month. The numbers reflected in the quarter are about COP 17,000 million of negative impact.

Speaker #1: It's about 6,000 million pesos per month. So, what the numbers reflected in the quarter are about 17,000 million pesos of negative impact.

Speaker #3: Thank you. Last question from Daniel is about El Niño exposure. How would an El Niño scenario impact NL Colombia generation EBITDA?

Karen Bibiana Guzmán Vanegas: Thank you. Last question from Daniel Guardiola is about El Niño exposure. How would El Niño scenario impact Enel Colombia generation EBITDA?

Operator: Thank you. Last question from Daniel Guardiola is about El Niño exposure. How would El Niño scenario impact Enel Colombia generation EBITDA?

Jorge Andrés Tabares: Enel is extremely well-placed to navigate El Niño. Yesterday, NOAA published an updated forecast, and now the possibilities are like 90% of a very strong Niño, which is reflected in the current spot prices in Colombia as generators are trying to save water to ensure that they can fulfill the contracts. Perhaps the best way to explain is compared to 2024, we enter the second part of the year with the reservoir levels not at the optimal levels, and at the Enel, specifically at Enel portfolio. That, plus the activation of the Estatuto para Situaciones de Riesgo de Desabastecimiento, caused financial pain in the Q4 Enel results in 2024. The first semester has been very good. They have been able to save water. The fact that they have a little bit more of solar capacity provides more flexibility in the portfolio.

Jorge Tabares: Enel is extremely well-placed to navigate El Niño. Yesterday, NOAA published an updated forecast, and now the possibilities are like 90% of a very strong Niño, which is reflected in the current spot prices in Colombia as generators are trying to save water to ensure that they can fulfill the contracts. Perhaps the best way to explain is compared to 2024, we enter the second part of the year with the reservoir levels not at the optimal levels, and at the Enel, specifically at Enel portfolio. That, plus the activation of the Estatuto para Situaciones de Riesgo de Desabastecimiento, caused financial pain in the Q4 Enel results in 2024. The first semester has been very good. They have been able to save water. The fact that they have a little bit more of solar capacity provides more flexibility in the portfolio.

Speaker #1: In NL, it's extremely well placed to navigate the Niño. Yesterday, the NOAA published an updated forecast, and now the possibilities are like 90% of a very strong Niño.

Speaker #1: This is reflected in the current spot prices in Colombia, as generators are trying to save water to ensure that they can fulfill the contracts.

Speaker #1: Perhaps the best way to explain this is by comparing it to 2024. We enter the second part of the year with the reservoir levels not at optimal levels.

Speaker #1: And at the NL specifically, at NL portfolio, that plus the activation of the Estatuto de Gestión de Riesgo de Desabastecimiento caused financial pain in the fourth quarter at NL results in 2024.

Speaker #1: The first semester has been very good. They have been able to save water. The fact that they have a little bit more solar capacity provides more flexibility in the portfolio.

Speaker #1: And perhaps more relevant is that the rainfall patterns on the eastern side of the country, where NL plants are located, have received much more water than the western part of the country, so all the Antioquia generation has been receiving very little water.

Jorge Andrés Tabares: And perhaps more relevant is that the rainfall patterns in the eastern side of the country, where Enel plants are located, have received much water than the western part of the country. So all the Antioquia generation has been receiving very little water. So our, meaning Enel, reservoirs are about 90%. In fact, the bigger one is like at 97% last time we checked. So we are very well placed, and we have been constructively saving water, and to an extent, being able to capture some of the spot prices that have evolved here over the last two months. So overall, we expect that Enel is going to have a very solid year, and different from the 2023, 2024 El Niño, the company is going to over-deliver the budget, compared to the negative impact that we went through, both in April and November of 2024.

Jorge Tabares: And perhaps more relevant is that the rainfall patterns in the eastern side of the country, where Enel plants are located, have received much water than the western part of the country. So all the Antioquia generation has been receiving very little water. So our, meaning Enel, reservoirs are about 90%. In fact, the bigger one is like at 97% last time we checked. So we are very well placed, and we have been constructively saving water, and to an extent, being able to capture some of the spot prices that have evolved here over the last two months. So overall, we expect that Enel is going to have a very solid year, and different from the 2023, 2024 El Niño, the company is going to over-deliver the budget, compared to the negative impact that we went through, both in April and November of 2024.

Speaker #1: So our main NL reservoirs are about 90%. In fact, the bigger one is at around 97%, last time we checked. So we're very well placed, and we have been constructively saving water and, to an extent, being able to capture some of the spot prices that have evolved here over the last two months.

Speaker #1: So overall, we expect that NL is going to have a very solid year, and different from the '23-'24 Niño, the company is going to over-deliver the budget compared to the negative impact that we went through both in April and November of 2024.

Speaker #3: Thank you. Thank you very much. Next, we have two tax questions from Nicole Morales Ortega, Credit Corp Capital. Could you explain the reduction in accounts receivable from ERI?

Karen Bibiana Guzmán Vanegas: Thank you. Thank you very much. Next, we have two text questions from Nicole Morales Ortega, Credicorp Capital. Could you explain the reduction in accounts receivables from ARE? Have you reached any agreements with ARE regarding the payment of its outstanding balances? And second question, what impact do you expect El Niño to have on your businesses? Overall, do you believe the effect will be positive or negative?

Operator: Thank you. Thank you very much. Next, we have two text questions from Nicole Morales Ortega, Credicorp Capital. Could you explain the reduction in accounts receivables from ARE? Have you reached any agreements with ARE regarding the payment of its outstanding balances? And second question, what impact do you expect El Niño to have on your businesses? Overall, do you believe the effect will be positive or negative?

Speaker #3: Have you reached any agreement with ERI regarding the payment of its outstanding balances? And second question, what impact do you expect El Niño to have on your businesses?

Speaker #3: Overall, do you believe the effect would be positive or negative?

Jorge Andrés Tabares: Yeah. This is the fact that we applied our general expected losses methodology in this quarter. In the last year, we were provisioning 100% of the receivables. So on an ongoing basis, the right thing to do is to apply the expected losses. Now, we are seeing signals from the new government recognizing the importance of ISA to pay the receivables, mainly the impact on thermal plants that are very critical to support the electricity system through El Niño. In fact, we were looking at the numbers recently, and it is a bit surprising that not all thermal plants are delivering at full capacity. And speculating, one of the reasons may be that they do not have enough cash to put into the business, or they are not willing to commit more cash to the business given the huge size of receivables that some of the thermal plants have.

Jorge Tabares: Yeah. This is the fact that we applied our general expected losses methodology in this quarter. In the last year, we were provisioning 100% of the receivables. So on an ongoing basis, the right thing to do is to apply the expected losses. Now, we are seeing signals from the new government recognizing the importance of ISA to pay the receivables, mainly the impact on thermal plants that are very critical to support the electricity system through El Niño.

Speaker #1: Yes, this is due to the fact that we applied our general expected losses methodology. In this quarter, and in the last year, we were provisioning 100% of the receivables.

Speaker #1: So, on an ongoing basis, the right thing to do is to apply the expected losses. Now, we are seeing signals from the new government recognizing the importance of AIDE to pay the receivables.

Speaker #1: Mainly, the impact is on thermal plants, which are very critical to supporting the electricity system through El Niño. In fact, we were looking at the numbers recently, and it is a bit surprising that not all thermal plants are delivering at full capacity.

Jorge Tabares: In fact, we were looking at the numbers recently, and it is a bit surprising that not all thermal plants are delivering at full capacity. And speculating, one of the reasons may be that they do not have enough cash to put into the business, or they are not willing to commit more cash to the business given the huge size of receivables that some of the thermal plants have. But we are seeing constructive signals, and again, recognition of the very critical importance for the government to pay its debt. And government as the owner of this company, due to the intervention.

Speaker #1: And speculating, one of the reasons may be that they don't have enough cash to put into the business, or they are not willing to commit more cash to the business given the huge size of receivables that some of the thermal plants have.

Speaker #1: But we are seeing constructive signals, and again, recognition of the very critical importance for the government to pay its debt—and the government as the owner of this company due to the intervention.

Jorge Andrés Tabares: But we are seeing constructive signals, and again, recognition of the very critical importance for the government to pay its debt. And government as the owner of this company, due to the intervention.

Karen Bibiana Guzmán Vanegas: Thank you. Thank you very much. Next question is a text question from Evan Walker, '91. Hi there. Congratulations on the results. Can management update us any color on the current status of discussions regarding a potential acquisition of the controlling ISA stake from Ecopetrol?

Operator: Thank you. Thank you very much. Next question is a text question from Evan Walker, '91. Hi there. Congratulations on the results. Can management update us any color on the current status of discussions regarding a potential acquisition of the controlling ISA stake from Ecopetrol?

Speaker #3: Thank you. Thank you very much. Next question is a text question from Ivan Walker, 91. Hi there. Congratulations on the results. Can management update us?

Speaker #3: Any color on the current status of discussions regarding a potential acquisition of the controlling ESA stake from Ecopetrol?

Jorge Andrés Tabares: Hi, Evan. Thank you for the question. This is a speculation, so from us, we have not disclosed anything. As I said, we do not have a team working on this transaction as of now. We need a signal from the owner that they are willing to sell and what is the structure of the potential divestment. Going back to my answer to Daniel Guardiola, at that point, we will have to structure solid financial engineering and strategy to be able to access this asset, because it is a very big asset. We will intend to do it if that happens. If we are not doing anything now, I will say that it is unlikely that anything happens in the next 9 months.

Jorge Tabares: Hi, Evan. Thank you for the question. This is a speculation, so from us, we have not disclosed anything. As I said, we do not have a team working on this transaction as of now. We need a signal from the owner that they are willing to sell and what is the structure of the potential divestment. Going back to my answer to Daniel Guardiola, at that point, we will have to structure solid financial engineering and strategy to be able to access this asset, because it is a very big asset. We will intend to do it if that happens. If we are not doing anything now, I will say that it is unlikely that anything happens in the next 9 months. No president has been appointed to Ecopetrol, and the way we see that is that a new person needs to come in, kind of go through the learning curve a little bit, understanding the status of the company, most likely a lot of fixes, and then getting into more strategy conversations as this one.

Speaker #1: Hi Evan. Thank you for the question. This is speculation. So, from us, we have not disclosed anything, and as I said, we don't have a team working on this transaction as of now.

Speaker #1: We need a signal from the owner that they are willing to sell, and what the structure of the potential divestment would be. Going back to my answer to Daniel Guardiola, at that point we'll have to structure solid financial engineering and strategy to be able to access this asset, because it's a very big asset.

Speaker #1: But we'll intend to do it if that happens. So, if we're not doing anything now, I will say that it's unlikely that anything happens in the next nine months.

Jorge Andrés Tabares: No president has been appointed to Ecopetrol, and the way we see that is that a new person needs to come in, kind of go through the learning curve a little bit, understanding the status of the company, most likely a lot of fixes, and then getting into more strategy conversations as this one.

Speaker #1: Ecopetrol has no president—no one has been appointed to Ecopetrol. And the way we see that is that a new person needs to come in, kind of go through the learning curve a little bit, and understand the status of the company.

Speaker #1: Most likely a lot of fixes, and then getting into more strategic conversations like this one.

Speaker #3: Okay, thank you. Thank you very much. Our next question is a text question from Diego Gomez Jimenez, Banco Davivienda. What were the sources of investment in Brazil, and how will that affect dividend distribution?

Karen Bibiana Guzmán Vanegas: Okay. Thank you. Thank you very much. Our next question is a text question from Diego Gómez Jiménez, Banco Davivienda. What were the sources of investment in Brazil, and how will that affect dividend distribution?

Operator: Okay. Thank you. Thank you very much. Our next question is a text question from Diego Gómez Jiménez, Banco Davivienda. What were the sources of investment in Brazil, and how will that affect dividend distribution?

Jorge Andrés Tabares: We only paid the minor acquisition of the Gebbras participations. The Verene, the bigger transaction is still under approvals. We expect that around the beginning of Q3, the actual settlement will happen. We have some cash at hand and some credit lines or credits that are fully ready to disperse, and that is going to be the main source of the cash to pay for the transaction. Remember, we are not paying to La Caisse. We are contributing cash to the company. So at the time we close the transaction, Verene will have about $600 million new dollars to fund acquisitions. In fact, there is a lot of dynamic in the Brazilian electricity transmission market that the company is evaluating. Early stages, but opportunities to dispose that capital and putting it to work are diverse. The transaction is dividend accretive.

Jorge Tabares: We only paid the minor acquisition of the Gebbras participations. The Verene, the bigger transaction is still under approvals. We expect that around the beginning of Q3, the actual settlement will happen. We have some cash at hand and some credit lines or credits that are fully ready to disperse, and that is going to be the main source of the cash to pay for the transaction. Remember, we are not paying to La Caisse. We are contributing cash to the company. So at the time we close the transaction, Verene will have about $600 million new dollars to fund acquisitions.

Speaker #1: We have not paid; we only paid the minor acquisition of the Yebraz participations. The Berenne, the bigger transaction, is still under approvals. We expect that around the beginning of Q3, the actual settlement will happen.

Speaker #1: We have some cash at hand and some credit lines, or credits, that are fully ready to disburse. And that's going to be the main source of the cash to pay for the transaction.

Speaker #1: Remember, we're not paying to La Case. We are contributing cash to the company. So at the time we close the transaction, Berenne will have about $600 million to fund acquisitions.

Speaker #1: And in fact, there is a lot of dynamism in the Brazilian electricity transmission market that the company is evaluating in the early stages, but opportunities to deploy that capital and put it to work are diverse.

Jorge Tabares: In fact, there is a lot of dynamic in the Brazilian electricity transmission market that the company is evaluating. Early stages, but opportunities to dispose that capital and putting it to work are diverse. The transaction is dividend accretive. Given the debt we are taking, it is on the 6% range in US dollars. The return of the investment is much higher than that. This is going to be positive on the dividend side once we close, and especially during 2027, which we will have the full benefit, because in 2026 we will only have a benefit for a few months.

Speaker #1: The transaction is dividend accretive. So, given the debt we are taking, it's in the 6% range in US dollars. The return on the investment is much higher than that.

Jorge Andrés Tabares: Given the debt we are taking, it is on the 6% range in US dollars. The return of the investment is much higher than that. This is going to be positive on the dividend side once we close, and especially during 2027, which we will have the full benefit, because in 2026 we will only have a benefit for a few months.

Speaker #1: So this is going to be positive on the dividend side. Once we close, and especially during 2027, we will have the full benefit, because in 2026 we'll only have a benefit for a few months.

Speaker #3: Thank you. Thank you very much. Our next question is a text question from Gulen Tencer, Reinsurance Group of America. Could you please address leverage, credit metrics, and ratings?

Karen Bibiana Guzmán Vanegas: Thank you. Thank you very much. Our next question is a text question from Golan Tenser, Reinsurance Group of America. Could you please address leverage credit metrics and ratings, seeing that there is continued pressure on Colombia ratings, which is high right now, and Bogota low BBB? What do you need to do to maintain IG ratings in the foreseeable future?

Operator: Thank you. Thank you very much. Our next question is a text question from Golan Tenser, Reinsurance Group of America. Could you please address leverage credit metrics and ratings, seeing that there is continued pressure on Colombia ratings, which is high right now, and Bogota low BBB? What do you need to do to maintain IG ratings in the foreseeable future?

Speaker #3: Seeing that there is continued pressure on Colombia's ratings, which is high right now, and Bogota is low BBB, what do you need to do to maintain investment grade ratings in the foreseeable future?

Speaker #1: Thank you, Gulen. So, there are two ways of looking at the rating on our intent. And our strategic approach is that we benefit from investment grade.

Jorge Andrés Tabares: Thank you, Golan. There are two ways of looking at the ratings. Our intent and our strategic approach is that we benefit from investment grade. We would like to be investment grade. All the actions from the corporate level on strategy always take into consideration the maximum leverage on a medium-term sustained basis to maintain the leverage. That is about 4x net debt to EBITDA is the key metric. There is also a cash flow metric. In that one, we are fairly comfortable that we are within the metric by a good margin. If we do acquisitions that are sizable that overshoots that 4x, the conversation with the rating agency always is, we will delever to the 4x soon, 12, 18 months. There is an impact of what is going to happen here in the Verene Brazilian transaction with La Caisse.

Jorge Tabares: Thank you, Golan. There are two ways of looking at the ratings. Our intent and our strategic approach is that we benefit from investment grade. We would like to be investment grade. All the actions from the corporate level on strategy always take into consideration the maximum leverage on a medium-term sustained basis to maintain the leverage. That is about 4x net debt to EBITDA is the key metric. There is also a cash flow metric. In that one, we are fairly comfortable that we are within the metric by a good margin. If we do acquisitions that are sizable that overshoots that 4x, the conversation with the rating agency always is, we will delever to the 4x soon, 12, 18 months. There is an impact of what is going to happen here in the Verene Brazilian transaction with La Caisse.

Speaker #1: We would like to be investment grade, and all the actions from the corporate level and strategy always take into consideration the maximum leverage on a medium-term sustained basis to maintain the leverage.

Speaker #1: And that's about four times net debt to EBITDA, the key metric. There is also a cash flow metric, but in that one we're fairly comfortable that we are within the metric by a good margin.

Speaker #1: If we do acquisitions that are sizable, that overshoot that four, the conversation with the rating agency always is that we will delever to the four times soon.

Speaker #1: 12, 18 months. There is an impact of when, like this, what's going to happen here in the Berenne, Brazilian transaction with La Caze. Once you pay, leverage grows, but you cannot capture the EBITDA until you go through the next 12 months.

Jorge Andrés Tabares: Once you pay, leverage grows, but you cannot capture the EBITDA until you go to the next 12 months. Currently, we are below 3 times, as Karen mentioned in the presentation. We overshoot, but then we go back in 12 months closer to the 4 times. That is always the dynamic when we do acquisitions. On the organic CapEx perspective, because CapEx is deployed relatively smoothly, that does not have a significant impact. Although we do have, as mentioned, also a significant portfolio of organic opportunities, about COP 1.7 billion over the next 5 years. We already delivered half of this year, so it is a little bit lower than that. Now, the second aspect, which is perhaps what you are pointing is, okay, what if the Colombian government or the District of Bogota. This is a judgment.

Jorge Tabares: Once you pay, leverage grows, but you cannot capture the EBITDA until you go to the next 12 months. Currently, we are below 3 times, as Karen mentioned in the presentation. We overshoot, but then we go back in 12 months closer to the 4 times. That is always the dynamic when we do acquisitions. On the organic CapEx perspective, because CapEx is deployed relatively smoothly, that does not have a significant impact. Although we do have, as mentioned, also a significant portfolio of organic opportunities, about COP 1.7 billion over the next 5 years. We already delivered half of this year, so it is a little bit lower than that. Now, the second aspect, which is perhaps what you are pointing is, okay, what if the Colombian government or the District of Bogota. This is a judgment.

Speaker #1: So, initially, currently we are below three times, as we are going to the point, as Karen mentioned in the presentation. And we overshoot, but then we go back in 12 months closer to the four times.

Speaker #1: And that's always the dynamic when we do acquisitions. On the organic capex perspective, because capex is deployed relatively smoothly, that does not have a significant impact.

Speaker #1: Although we do have, as mentioned, also a significant portfolio of organic opportunities—about $1.7 billion over the next five years. We already delivered half of this this year.

Speaker #1: So it's a little bit lower than that. Now, the second aspect, which is perhaps what you're pointing to, is: okay, what if the Colombian government or the District of Bogota—this is a judgment.

Jorge Andrés Tabares: My judgment from the city of Bogota, given the current administration and the responsibility in which they manage the finances, and the health of the city economics and economic dynamics, I do not think the city is going to trigger any action. From the sovereign perspective, we have less control. Yes, we are linked to the government because of the methodology of the rating agencies. Moody's is more directly, because we are fully linked to the sovereign and the city. The sequence is national government, city is linked to that, and we are linked to the city on the Moody's perspective. On Fitch, we are enabled 2 notches above the sovereign because our country ceiling is Peru, given the size of our investments in Peru. In that, we are a little bit more protected on the Fitch side.

Jorge Tabares: My judgment from the city of Bogota, given the current administration and the responsibility in which they manage the finances, and the health of the city economics and economic dynamics, I do not think the city is going to trigger any action. From the sovereign perspective, we have less control. Yes, we are linked to the government because of the methodology of the rating agencies. Moody's is more directly, because we are fully linked to the sovereign and the city. The sequence is national government, city is linked to that, and we are linked to the city on the Moody's perspective. On Fitch, we are enabled 2 notches above the sovereign because our country ceiling is Peru, given the size of our investments in Peru. In that, we are a little bit more protected on the Fitch side.

Speaker #1: My judgment from the city of Bogotá, given the current administration and the responsibility with which they manage the finances, I don't think an action—and the health of the city's economics and economic dynamics—I don't think the city is going to trigger any action.

Speaker #1: From the sovereign perspective, we have less control. And yes, we are linked to the government because of the methodology of the rating agencies. Moody's is more direct because we are fully linked to the sovereign and the city.

Speaker #1: The sequence is national government, city, is linked to that. And we are linked to the city from Moody's perspective. On Fitch, we are enabled to two notches above the sovereign because our country ceiling is Peru, given the size of our investments in Peru.

Speaker #1: So in that, we are a little bit more protected on the Fitch side. But if Moody's decides to act on the government, they automatically and mechanically act on us and the city, on us.

Jorge Andrés Tabares: If Moody's decides to act on the government, they automatically and mechanically act on us and the city on us. Now, given the signals that the current government, there has been a day and night change in the way public finances are being treated. The last 4 years, fiscal discipline, efficiency, savings, austerity were not words that were used at all at any point. Because of that, the public finances deteriorated very significantly over the period. All the signals that the newly appointed government has given the markets are signals of responsibility, of fiscal discipline, and furthermore, of support from multinational, from multilateral banks, a very strong support to help navigate this very bad shape of the public finances in which the country was received.

Jorge Tabares: If Moody's decides to act on the government, they automatically and mechanically act on us and the city on us. Now, given the signals that the current government, there has been a day and night change in the way public finances are being treated. The last 4 years, fiscal discipline, efficiency, savings, austerity were not words that were used at all at any point. Because of that, the public finances deteriorated very significantly over the period. All the signals that the newly appointed government has given the markets are signals of responsibility, of fiscal discipline, and furthermore, of support from multinational, from multilateral banks, a very strong support to help navigate this very bad shape of the public finances in which the country was received.

Speaker #1: Now, given the signals from the current government, there has been a day and night change in the way public finances are being treated. So, for the last four years, fiscal discipline, efficiency, savings, and austerity were not words that were used at all at any point.

Speaker #1: And because of that, the public finances deteriorated very significantly over the period. All the signals that the newly appointed government has given the markets are signals of responsibility, of fiscal discipline, and furthermore, of support from multilateral banks—a very strong support to help navigate this very bad shape of the public finances in which the country was received.

Jorge Andrés Tabares: What is also going to support the public finances is that the private sector, given the signals that they are receiving, a total change of anti-investment, anti-private sector of the last 4 years, that also should create a healthy dynamic of both economic growth and, at the end, more taxes for the public finances. I think actions on the public finances, given all of these, are, I would say, very unlikely in the next 18 months or so. Again, not just the signals, not just the discipline perspective, but the people appointed. Again, a totally different approach. Appointing people with experience, people with all the academic credentials to run offices compared to the previous government, in which that was very rarely the case, if at all. Again, from the corporate side, we are very disciplined.

Jorge Tabares: What is also going to support the public finances is that the private sector, given the signals that they are receiving, a total change of anti-investment, anti-private sector of the last 4 years, that also should create a healthy dynamic of both economic growth and, at the end, more taxes for the public finances. I think actions on the public finances, given all of these, are, I would say, very unlikely in the next 18 months or so. Again, not just the signals, not just the discipline perspective, but the people appointed. Again, a totally different approach. Appointing people with experience, people with all the academic credentials to run offices compared to the previous government, in which that was very rarely the case, if at all. Again, from the corporate side, we are very disciplined. From the public finances side, we do not have control, but we are seeing very solid signals from the government.

Speaker #1: What is also going to support the public finances is that the private sector, given the signals that they are receiving—a total change from the anti-investment, anti-private sector stance of the last four years—should also create a healthy dynamic of both economic growth and, in the end, more taxes for the public finances.

Speaker #1: So, I think actions on the public finances, given all of these, are, I would say, very unlikely in the next 18 months or so.

Speaker #1: Again, not just the signals, not just the discipline perspective, but the people appointed. Again, a totally different approach: appointing people with experience, people with all the academic credentials to run offices.

Speaker #1: Compared to the previous government, in which that was very rarely the case, if at all. So again, from the corporate side, we're very disciplined. From the public finances side, as well.

Jorge Andrés Tabares: From the public finances side, we do not have control, but we are seeing very solid signals from the government.

Speaker #1: We do not have control, but we are seeing very solid signals from the government.

Speaker #2: Thank you. Thank you very much. Before we move on to the next questions, just a quick reminder to our audience: if you're connected via phone and would like to ask a voice question, please press star two (*) on your phone keypad and wait for your name to be prompted.

Karen Bibiana Guzmán Vanegas: Thank you. Thank you very much. Maybe before the next question, just a quick reminder to our audience. If you are connected via the phone and you would like to ask a voice question, please press star 2 on your phone keypad and wait for your name to be prompted. Our web participants can also request to ask a voice question or send their question as a text. Our next question

Operator: Thank you. Thank you very much. Maybe before the next question, just a quick reminder to our audience. If you are connected via the phone and you would like to ask a voice question, please press star 2 on your phone keypad and wait for your name to be prompted. Our web participants can also request to ask a voice question or send their question as a text. Our next question

Speaker #2: Our web participants can also request to ask a voice question or send their question as a text. Our next question.

Jorge Andrés Tabares: Roland, the only point that, just to follow up, as my team is pointing here, just 2 days ago, Fitch affirmed in the annual review our rating. This is a rating action based on all the updated information from our side. So where we are now with the projections, we are solid within the rating. That is based on a deleveraging trajectory that we offer or that we presented to the agency, mainly due to the Brazilian acquisition.

Jorge Tabares: Roland, the only point that, just to follow up, as my team is pointing here, just 2 days ago, Fitch affirmed in the annual review our rating. This is a rating action based on all the updated information from our side. So where we are now with the projections, we are solid within the rating. That is based on a deleveraging trajectory that we offer or that we presented to the agency, mainly due to the Brazilian acquisition.

Speaker #1: Golan, the other point—just to follow up, as my team is pointing out here—just two days ago, Fitch affirmed in the annual review our rating, and this is a rating action based on all the updated information from our side.

Speaker #1: So, as where we are now with the projections, we are solid within the rating. We are, and that is based on a deliberate trajectory that we offer—or that we presented—to the agency, mainly due to the Brazilian acquisition.

Speaker #2: Thank you. Thank you very much. Our next question is a text question from Sergio Daniel Torres. Davivienda Corredores, what is the debt management strategy once the payments for the Axia acquisition in Brazil are completed?

Karen Bibiana Guzmán Vanegas: Thank you. Thank you very much. Our next question is a text question from Sergio Daniel Torres, Davivienda Corredores. What is the debt management strategy once the payments for the Axia acquisition in Brazil are completed, given that the resulting leverage level leaves limited headroom for additional debt?

Operator: Thank you. Thank you very much. Our next question is a text question from Sergio Daniel Torres, Davivienda Corredores. What is the debt management strategy once the payments for the Axia acquisition in Brazil are completed, given that the resulting leverage level leaves limited headroom for additional debt?

Speaker #2: Given that the resulting leverage level leaves limited headroom for additional debt.

Jorge Andrés Tabares: Effectively, when we pay for the Brazilian transaction, we are going to be within a little bit above from our long-term target. Enel is helping us a lot this year. TGI, on the other side, is having this batch of losing volumes, and everybody is chasing new molecules and long-term contracts to recapture that market. I think Enel is going to have a bigger contribution than TGI this year, and that is going to allow us. And the new dividends from Brazil next year is also going to improve EBITDA. From the organic investment perspective, it is mostly neutral. We do have to take some debt, but it is on a marginal basis. Perhaps the limited headroom that you point in, Sergio, it will be for material new acquisitions. Currently, we are not working on one.

Speaker #1: So effectively, when we pay for the Brazilian transaction, we're going to be a little bit above our long-term target. And Ellis is helping us a lot this year. TGI, on the other side, is having this badge of losing volumes and everybody's chasing new molecules and long-term contracts to recapture that market.

Jorge Tabares: Effectively, when we pay for the Brazilian transaction, we are going to be within a little bit above from our long-term target. Enel is helping us a lot this year. TGI, on the other side, is having this batch of losing volumes, and everybody is chasing new molecules and long-term contracts to recapture that market. I think Enel is going to have a bigger contribution than TGI this year, and that is going to allow us. And the new dividends from Brazil next year is also going to improve EBITDA. From the organic investment perspective, it is mostly neutral.

Speaker #1: I think Enel is going to have a bigger contribution than TGI this year, and that is going to allow us—and the new dividends from Brazil next year are also going to improve EBITDA.

Speaker #1: From the organic investment perspective, it's mostly neutral. So, we do have to take some debt, but it's on a marginal basis. So perhaps the limited headroom that you point out, Sergio, will be for material new acquisitions.

Jorge Tabares: We do have to take some debt, but it is on a marginal basis. Perhaps the limited headroom that you point in, Sergio, it will be for material new acquisitions. Currently, we are not working on one. Once we get to that opportunity, we need to assess what is the impact on value creation, on overall leverage, the EBITDA contribution that that transaction could bring, and what is the most efficient way of financing that. But it is premature to talk about that at this point.

Speaker #1: And currently, we're not working on one. So, once we get to that opportunity, we need to assess what is the impact on value creation and overall leverage.

Jorge Andrés Tabares: Once we get to that opportunity, we need to assess what is the impact on value creation, on overall leverage, the EBITDA contribution that that transaction could bring, and what is the most efficient way of financing that. But it is premature to talk about that at this point.

Speaker #1: The EBITDA contribution that that transaction could bring, and what's the most efficient way of financing that. But it's premature to talk about that at this point.

Speaker #2: Okay, thank you. Thank you very much. Just a final reminder: if you are connected via phone and would like to ask a voice question, please press star two (*) on your phone keypad and wait for your name to be prompted.

Karen Bibiana Guzmán Vanegas: Okay. Thank you. Thank you very much. Just a final reminder. If you are connected via the phone and you would like to ask a voice question, please press star 2 on your phone keypad and wait for your name to be prompted. If you are connected via the web, you can also request to ask a voice question or send your question as a text. I will just give a moment or so for any additional question to come in.

Operator: Okay. Thank you. Thank you very much. Just a final reminder. If you are connected via the phone and you would like to ask a voice question, please press star 2 on your phone keypad and wait for your name to be prompted. If you are connected via the web, you can also request to ask a voice question or send your question as a text. I will just give a moment or so for any additional question to come in.

Speaker #2: If you're connected via the web, you can also request to ask a voice question or send your question as a text. I'll just give a moment or so for any additional questions to come in.

Speaker #1: Thank you very much for your interest, and our IR team remains open to any further questions that may come up. Thank you very much.

Jorge Andrés Tabares: Thank you very much for your interest, and our IR team remains open to ask further questions that may come up. Thank you very much.

Jorge Tabares: Thank you very much for your interest, and our IR team remains open to ask further questions that may come up. Thank you very much.

Karen Bibiana Guzmán Vanegas: Thank you. This concludes the call for today. We are now closing all the lines. Thank you and goodbye.

Operator: Thank you. This concludes the call for today. We are now closing all the lines. Thank you and goodbye.

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Q2 2026 Grupo Energia Bogota SA ESP Earnings Call

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