Financial Statements

2025

2025

Operating revenue

Other comprehensive income:

2025

1. Statement of Compliance and Accounting Standards Applied

   The consolidated financial statements as of December 31, 2025, and 2024 have been prepared in accordance with the Accounting and Financial Reporting Standards Accepted in Colombia (NCIF), which are based on International Financial Reporting Standards (IFRS), together with their interpretations, translated into Spanish and issued by the International Accounting Standards Board (IASB).

   The NCIF were established by Law 1314 of 2009 and regulated by Single Regulatory Decree 2420 of 2015, a compilation of the accounting regulations in force in Colombia, as amended by Decrees 2496 of 2015, 2131 of 2016, 2170 of 2017, 2483 of

   2018, 2270 of 2019, 1432 of 2020, 938 of 2021, 1611 of 2022, and 1271 of 2024.

   In addition, in compliance with applicable laws, decrees, and other regulations, the Company applies the following accounting criteria issued specifically for Colombia by regulatory authorities:

   • External Circular 36 of 2014 of the Financial Superintendency of Colombia, which sets forth the accounting treatment of net positive differences arising from the first-time application of the NCIF (Colombian Financial Reporting Standards), which may not be distributed to offset losses, carry out capitalization processes, distribute profits and/or dividends, or be recognized as reserves, and may only

     be utilized only when they have been effectively realized with third parties, other than related parties, in accordance with the principles of the NCIF. Net negative differences shall not be taken into account for the statutory controls applicable to financial statement preparers of issuers of securities subject to control.

   • Decree 2496 of December 23, 2015, which establishes that the parameters for determining post-employment benefits in accordance with IAS 19 Employee Benefits must correspond to Decree 2783 of 2001 as the best market approximation; For the year 2016, Decree 2131 of December 22, 2016, eliminated the requirement to apply these assumptions for the measurement of post-employment benefits; it remains applicable only for the purposes of financial disclosure. Decree 1625 of 2016 stipulates that the calculation of pension liabilities must be disclosed in accordance with the parameters established in that regulation and, in the case of partial pension commutations, in accordance with Decree 1833 of 2016, along with the differences from the calculation performed in accordance with IAS 19 Employee Benefits.

   For legal purposes in Colombia, the separate financial statements are the primary financial statements and serve as the basis for the distribution of dividends and other appropriations.

2. Going concern assumption

   The consolidated financial statements have been prepared on a going concern basis, and as of December 31, 2025, there are no material uncertainties related to events or conditions that cast doubt on the ability of any group company to continue as a going concern. The group has the liquidity and solvency required to continue operating its business for the foreseeable future.

   In compliance with the provisions of Decree 1378 of October 28, 2021, the Group continuously monitors the financial statements, financial information, and projections of the company to determine the existence or possibility of asset impairments and insolvency risks. Although the current ratio is less than 1, this situation is primarily due to specific circumstances that do not affect operating performance or liquidity and do not constitute warnings of impairment or insolvency risk that cast doubt on the group's ability to continue as a going concern.

3. Basis of Preparation

   The Group's bylaws require it to close its books, prepare, and issue general-purpose consolidated financial statements once a year, on December 31 of each period. The items included in the Group's consolidated financial statements are expressed in millions of Colombian pesos, which is the Group's functional currency and the presentation currency, and corresponds to the currency of the primary economic environment in which the entities operate. All information is presented in millions of pesos and has been rounded to the nearest thousand, unless otherwise indicated.

   The consolidated financial statements have been prepared on an accrual basis, except for the statement of cash flows. The measurement basis is historical cost, with the exception of the following items included in the consolidated statement of financial position:

   • Derivative financial instruments are measured at fair value.

   • Certain non-derivative financial instruments are measured at fair value through profit or loss.

   • Assets held for sale are measured at fair value less costs to sell.

   • With respect to employee benefits, the defined benefit asset is recognized as the net total of plan assets, plus unrecognized past service costs and unrecognized actuarial losses, less unrecognized actuarial gains and the present value of the defined benefit obligation.

   Historical cost is generally based on the fair value of the consideration given in the exchange of goods and services at initial recognition.

   Fair value measurements:

   Several of the Group's accounting policies and disclosures require the measurement of fair values for both financial and nonfinancial assets and for financial and non-financial liabilities.

   Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The fair value of certain financial assets and liabilities is determined on a date close to the financial statement date for recognition and disclosure.

   These judgments include factors such as liquidity risk, credit risk, and volatility. Changes in assumptions regarding these factors could affect the reported fair value of financial instruments.

   When estimating fair value, the Group considers the characteristics of the asset or liability if market participants take those characteristics into account when performing the valuation on the measurement date. Fair value for measurement and/or disclosure purposes in the consolidated financial statements is determined on that basis, except for equity-settled transactions within the scope of IFRS 2 Share-based Payment, lease transactions within the scope of IFRS 16 Leases, and measurements that

   have certain similarities to fair value but are not the same, such as net realizable value in IAS 2 Inventories or value in use in IAS 36 Impairment of Assets.

   Fair value measurements are categorized as Level 1, 2, or 3 based on the extent to which the inputs to those measurements are observable, and according to their significance to the measurements as a whole, as described below:

   • Level 1 inputs are quoted (unadjusted) prices in active markets for identical assets and liabilities to which the entity has access as of the measurement date.

   • Level 2 inputs are those other than quoted prices included in Level 1 that are observable for an asset or liability, either directly or indirectly.

   • Level 3 inputs are data that are not observable for an asset or liability, which reflect the assumptions that market participants would use when pricing the asset or liability, including assumptions regarding risk.

   The Group has applied the accounting policies, judgments, estimates, and significant accounting assumptions described in Note 2, Statement of Compliance and Basis of Presentation, and Note 5, Significant Accounting Judgments and Estimates. These judgments include factors such as liquidity risk, credit risk, and volatility. Changes in assumptions regarding these factors could affect the reported fair value of financial instruments.

4. Principles of Consolidation of Financial Statements

   The consolidated financial statements include the financial statements of Celsia S.A. and the entities controlled by the company. Control is achieved when the company has power over an investee, is exposed to, or has rights to variable returns from its relationship with the investee, and has the ability to use its power over the investee to influence the amount of the investor's returns.

   The company reassesses whether or not it controls an investee if facts and circumstances indicate that there have been changes to one or more of the three elements of control mentioned above. In assessing control, the company considers, among other factors, existing substantive voting rights, contractual agreements between the entity and other parties regarding relevant activities, and the rights and ability to appoint and remove key members of management.

   When the company holds less than a majority of the voting rights in an investee, it has control over the investee if those voting rights are sufficient to give it the practical ability to direct the investee's relevant activities unilaterally. The company considers all relevant facts and circumstances when assessing whether its voting rights in an investee are sufficient to give it control, including:

   • The size of the company's percentage of voting rights relative to the size and dispersion of the percentages held by other voting rights holders;

   • Potential voting rights held by the company, other shareholders, or other parties;

   • Rights arising from contractual agreements; and

   • Any additional facts or circumstances indicating that the company does or does not have the current ability to direct the relevant activities at the time decisions need to be made, including voting patterns at previous shareholders' meetings.

   The consolidation of a subsidiary begins when the company obtains control over the subsidiary and ends when it loses control of it. The revenues and expenses of a subsidiary acquired or sold during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the company obtains control until the date the company ceases to control the subsidiary.

   Gains or losses from each component of other comprehensive income are attributed to the company's owners and noncontrolling interests. The total comprehensive income of subsidiaries is attributed to the company's owners and noncontrolling interests even if the results attributable to non-controlling interests have a negative balance.

   Investments over which Celsia S.A. has control are consolidated using the full consolidation method, under which the following are added to the financial statements of the parent company or controlling entity: all of the subsidiaries' assets, liabilities, equity, and results, after eliminating, at the parent company or controlling entity, the investment made by the parent company in the subsidiaries' equity, as well as any intercompany transactions and balances existing as of the date of preparation of the financial statements, and after aligning the subsidiaries' accounting policies with those of the parent company.

   The consolidated financial statements adequately disclose the magnitude of the resources under exclusive control, thereby providing an approximate measure of the economic level of the liability attributable to Celsia S.A.

   As of the date of the financial statements, the subsidiaries are as follows:

   • In Colombia:

     Porvenir II S.A.S. E.S.P. and Colener S.A.S., the latter through Colener II S.L. and majority shareholder of Celsia Colombia

     S.A. E.S.P., which in turn consolidates Compañía de Electricidad de Tuluá S.A. E.S.P. (CETSA E.S.P.), Celsia

     Colombia Inversiones S.A.S., Enerbit S.A.S. E.S.P., Celsia Internet S.A.S., Parque Solar Andrómeda I S.A.S. E.S.P., and Anolis Renovables S.A.S., the latter two acquired in April 2025.

   • Abroad:

   GAC Perú S.A.C. in Peru, Bahía Las Minas Corp., and Celsia Centroamérica S.A.; the latter, in turn, consolidates Cativá Development S.A. and C-Energy Solution S.A. (formerly CJ Energy S.A.) in Panama; and, in Costa Rica, Celsia Costa Rica

   S.A. and Enerwinds de Costa Rica S.A., which, in turn, consolidates the companies Landco La Gloria S.A., which in turn consolidates Proyecto Eólico Buena Vista S.A., Proyecto Eólico Limonal S.A., and Proyecto Eólico La Gloria S.A.; Celsia Centroamérica S.A. consolidated Celsia Honduras S.A. de C.V. in Honduras through September 2025; this company was sold as part of the energy efficiency asset sale transaction.

   To date, Cativá Development S.A., C-Energy Solution S.A., Proyecto Eólico Buena Vista S.A., Proyecto Eólico La Gloria S.A., and Proyecto Eólico Limonal S.A. have not commenced commercial operations.

   Hidromanta Invest S.L.U. is a subsidiary of Celsia Centroamérica S.A. acquired for the purpose of partial resale. This company owns 100% of the shares of Ibereólica Caravelí S.A.C. and Peruana de Inversiones en Energías Renovables S.A.

   1. Changes in the company's ownership interest in a subsidiary

      Changes in the company's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The carrying amounts of the company's interest and the noncontrolling interests are adjusted to reflect changes in their relative ownership interests in the subsidiary. Any difference between the amount by which noncontrolling interests were adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the parent.

      When the parent company loses control of a subsidiary, the gain or loss is recognized in profit or loss and is calculated as the difference between (i) the sum of the fair value of the consideration received and the fair value of the retained interest, and (ii) the previous carrying amount of the subsidiary's assets (including goodwill), liabilities, and any non-controlling interests.

      Amounts previously recognized in other comprehensive income in relation to that subsidiary are accounted for as if the parent had directly sold the relevant assets (i.e., reclassified to profit or loss or transferred to another equity category as specified or permitted by applicable IFRSs).

      The fair value of the retained investment in the former subsidiary, as of the date control was lost, shall be considered the fair value for the purposes of the initial recognition of a financial asset in accordance with IFRS 9 Financial Instruments, or, where applicable, the cost of the initial recognition of an investment in an associate or joint venture.

      The figures presented below were taken from the separate financial statements of the company and its subsidiaries as of December 31, 2025, and 2024, which have been certified and audited in accordance with applicable legal regulations:

      2025

      Registered Office		of Equity interest (*)	Assets Liabilities Equity Earnings
      Colombia
      Celsia S.A.	Medellín	-	5,310,226	814,881	4,495,345	190,908
      Colener S.A.S.	Medellín	100.00%	3,954,285	1,387	3,952,898	272,694
      Celsia Colombia S.A. E.S.P.	Yumbo	65.11%	13,294,884	8,303,257	4,991,627	426,549
      Tuluá Electricity Company, Inc. (E.S.P.)	Tuluá	64.16%	229,301	35,663	193,638	40,550
      Porvenir II S.A.S. E.S.P.	Medellín	100.00%	240	3,063	(2,823)	(28,888)
      Celsia Colombia Inversiones S.A.S.	Yumbo	65.11%	155,214	50,583	104,631	(1,243)
      Enerbit S.A.S. E.S.P.	Medellín	65.11%	77,794	36,742	41,052	(19,615)
      Celsia Internet S.A.S.	Medellín	65.11%	396,795	237,448	159,347	(18,407)
      Parque Solar Andrómeda I S.A.S. E.S.P.	Bogotá	65.11%	3,873	76	3,797	(177)
      Anolis Renovables S.A.S.	Bogotá	65.11%	21,600	1,048	20,552	(2,234)
      Central America
      Bahía Las Minas Corp.	Panama	51.24%	2,458	501	1,957	83
      Celsia Centroamérica S.A.	Panama	100.00%	1,136,399	18,070	1,118,329	30,900
      Celsia Honduras S.A. de C.V. (1)	Honduras	60.00%	-	-	-	3,185
      Celsia Costa Rica S.A.	Costa Rica	100.00%	336	2,618	(2,282)	(302)
      Enerwinds de Costa Rica S.A.	Costa Rica	65.00%	25,312	2	25,310	(17)
      Landco La Gloria S.A.	Costa Rica	65.00%	27,828	12	27,816	(4)

      Percentage

      2025

      Spain

      Percentage

      Address of Equity interest

      (*)

      Assets Liabilities Equity Income

      Colener II S.L. Spain 100.00% 3,215,772 231,761 2,984,011 101,753

      Peru

      GAC Peru S.A.C. Peru 100.00% 558 548 10 (1,581)

      Non-controlling interest - - 1,743,674 153,228

      2024

      Percentage

      	Address	of ownership (*)	Assets	Liabilities	Equity	Earnings
      Colombia
      Celsia S.A.	Medellín	-	5,615,033	842,728	4,772,305	630,322
      Colener S.A.S.	Medellín	100.00%	3,805,654	12,250	3,793,404	204,932
      Celsia Colombia S.A. E.S.P.	Yumbo	65.11%	13,837,464	9,100,037	4,737,427	325,532
      Tuluá Electricity Company, Inc. (E.S.P.)	Tuluá	64.16%	222,404	42,168	180,236	28,305
      Porvenir II S.A.S. E.S.P.	Medellín	100.00%	28,277	2,211	26,066	(1,279)
      Celsia Colombia Inversiones S.A.S.	Yumbo	65.11%	156,976	50,475	106,501	16,887
      Enerbit S.A.S. E.S.P.	Medellín	65.11%	44,794	15,763	29,031	(14,948)
      Celsia Internet S.A.S.	Medellín	65.11%	362,440	187,886	174,554	(21,534)
      Central America
      Bahía Las Minas Corp.	Panama	51.24%	3,022	842	2,180	(4,284)
      Celsia Centroamérica S.A.	Panama	100.00%	1,398,920	126,382	1,272,538	34,905
      Celsia Honduras S.A. de C.V.	Honduras	60.00%	212,166	110,510	101,656	2,665
      Celsia Costa Rica S.A.	Costa Rica	100.00%	579	2,924	(2,345)	(735)
      Enerwinds de Costa Rica S.A.	Costa Rica	65.00%	29,720	4	29,716	(209)
      Landco La Gloria S.A.	Costa Rica	65.00%	32,646	1	32,645	(95)
      Spain
      Colener, II S.L.	Spain	100.00%	3,125,437	140	3,125,297	(133)
      Non-controlling interest			-	-	1,734,898	115,419

      (1) Celsia Honduras S.A. de C.V. was sold in September 2025 as part of the transaction involving the sale of energy efficiency assets.

      (*) The effective ownership percentage corresponds to the ownership interest in the consolidated financial statements; however, the subsidiary's nominal ownership interest in the investments may vary.

      The assets, liabilities, equity, and results of foreign companies correspond to the balances after the process of alignment with Celsia S.A.'s accounting policies.

      Intercompany balances and transactions, as well as any unrealized income or expense arising from transactions between companies, are eliminated during the preparation of the consolidated financial statements. Unrealized gains arising from transactions with companies in which the investment is accounted for using the equity method are eliminated from the investment in proportion to the company's ownership interest in the investment. Unrealized losses are eliminated in the same manner.

   2. Reconciliation of results between the consolidated and separate financial statements of the parent company:

1. Cash and cash equivalents-Cash is recognized when a cash inflow from business operations is generated.

   Restricted cash is recognized when a cash inflow is generated from a third party for a specific purpose, or when some type of restriction is placed on bank accounts or cash equivalents.

   Cash in foreign currency is recognized when a cash inflow is received in a currency other than the company's functional currency, using the exchange rate in effect on the date the transaction occurs.

   Cash equivalents are recognized when the company holds highly liquid investments with a maturity of less than three months from the date of acquisition and a negligible risk of change in value.

2. Foreign Currency Transactions-Transactions denominated in a currency other than the Group's functional currency (foreign currency) are recorded using the exchange rates in effect on the dates the transactions occur. At the end of each reporting period, monetary items denominated in foreign currency are translated at the exchange rates in effect on that date. Non-monetary items recorded at fair value and denominated in foreign currency are translated at the exchange rates in effect on the date the fair value was determined. Non-monetary items calculated on a historical cost basis in foreign currency are not translated.

   The exchange rates used for such translations are those certified by the Colombian Financial Superintendency.

   Foreign exchange differences on non-monetary items are recognized in income for the period in which they arise, except for:

   • Exchange differences arising from foreign-currency-denominated loans related to assets under construction for future productive use, which are included in the cost of such assets as an adjustment to the costs of interest on those foreign-currency-denominated loans; provided that they do not exceed the borrowing costs of a liability with similar characteristics in the functional currency of the group companies.

   • Exchange differences arising from transactions related to foreign exchange hedges; and

   • Foreign exchange differences arising from monetary receivables or payables related to a foreign operation for which payment is neither planned nor possible (thus forming part of the net investment in the foreign operation), which are initially recognized in other comprehensive income and reclassified from equity to profit or loss upon the settlement of the non-monetary items.

1. Financial Instruments-Financial assets and liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument.

   Financial assets and liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issuance of financial assets and liabilities (other than financial assets and liabilities designated at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or liabilities, as appropriate, upon initial recognition. Transaction costs directly attributable to the acquisition of financial assets or liabilities designated at fair value through profit or loss are recognized immediately in profit or loss.

   When estimating the fair value of an asset or liability, the Group considers the characteristics of the asset or liability if market participants take those characteristics into account when valuing the asset or liability as of the measurement date. Fair value for measurement and/or disclosure purposes in these consolidated financial statements is determined on that basis, except for lease transactions, within the scope of IFRS 16 Leases and measurements that have certain similarities to fair value but are not fair value, such as net realizable value in IAS 2 Inventories or value in use in IAS 36 Impairment of Assets.

   • Level 1 inputs are quoted (unadjusted) prices in active markets for identical assets and liabilities to which the entity has access as of the measurement date.

   • Level 2 inputs are inputs other than the quoted prices included in Level 1, which are observable for an asset or liability, either directly or indirectly.

   • Level 3 items are items that are not observable for an asset or liability.

   1. Financial assets-The Company and its subsidiaries recognize a financial asset on their statement of financial position when, and only when, it becomes part of the contractual terms of the instrument; likewise, they recognize a conventional purchase or sale of financial assets on the contract date.

   2. Financial liabilities and equity instruments-Debt and equity instruments are classified as financial liabilities or equity, in accordance with the substance of the contractual agreement and the definitions of financial liability and equity instrument.

      The classification of a financial instrument as a financial liability or an equity instrument determines whether the interest, dividends, losses, or gains related to it are recognized as revenue or expense in net income for the period.

   3. Classification and Subsequent Measurement-Trade receivables and debt securities issued are initially recognized when they are originated; all other financial assets and liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument.

      1. Financial assets-Upon initial recognition, a financial asset is classified as measured at: amortized cost; fair value through other comprehensive income-debt investment; fair value through other comprehensive income-equity; or fair value through profit or loss.

         A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at fair value through profit or loss:

         • It is held within a business model whose objective is to hold assets to collect contractual cash flows; and

         • Its contractual terms give rise on specific dates to cash flows that are solely payments of principal and interest on the outstanding principal amount.

           A debt investment is measured at fair value through other comprehensive income if it meets the following two conditions and is not designated as at fair value through profit or loss:

         • It operates within a business model whose objective is achieved through the collection of contractual cash flows and the sale of financial assets; and

         • Its contractual terms give rise, on specific dates, to cash flows that are solely payments of principal and interest on the outstanding principal amount.

           Upon initial recognition of an equity investment that is not held for trading, the group may irrevocably elect to present subsequent changes in the fair value of the investment in other comprehensive income. This election is made on an investment-by-investment basis.

           The Group may make an irrevocable election at the time of initial recognition to present subsequent changes in fair value in other comprehensive income for specific investments in equity instruments that would otherwise be measured at fair value through profit or loss.

           Fair value through profit or loss

           The Group classifies a financial asset as measured at fair value through profit or loss, unless it is measured at amortized cost or at fair value through other comprehensive income.

           The Group may irrevocably designate a financial asset as measured at fair value through profit or loss when doing so eliminates or significantly reduces any inconsistency in measurement or recognition, that is, when there is an accounting mismatch.

           The group has a separate classification for:

         • Assets that are required to be measured at fair value through profit or loss; and

         • Assets designated as at fair value through profit or loss

           The Group recognizes in profit or loss for the period in which the gain or loss on a financial asset measured at fair value occurs, unless it is part of a hedging relationship, as described in the chapter on derivatives and hedging transactions.

           Fair value through other comprehensive income

           The Group classifies a financial asset measured at fair value through other comprehensive income if both of the following conditions are met: (i) The financial asset is held within a business model whose objective is achieved by collecting contractual cash flows and selling financial assets. (ii) The contractual terms of the financial asset give rise, on specified dates, to cash flows that are solely payments of principal and interest on the outstanding principal amount.

           The Group may make an irrevocable election at the time of initial recognition to present subsequent changes in fair value in other comprehensive income for specific investments in equity instruments that would otherwise be measured at fair value through profit or loss.

      2. Equity instruments-An equity instrument consists of any contract evidencing a residual interest in the assets of an entity after deducting all of its liabilities.

         The repurchase of the company's and its subsidiaries' own equity instruments is recognized and deducted directly from equity. No gain or loss is recognized in profit or loss arising from the purchase, sale, issuance, or cancellation of the group's own equity instruments.

      3. Financial liabilities-Financial liabilities are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost.

         Financial liabilities at fair value through profit or loss

         A financial liability is classified as at fair value through profit or loss when it is a financial liability classified as held for trading or as at fair value through profit or loss.

         The Group irrevocably designates a financial liability as measured at fair value through profit or loss when:

         • Such designation eliminates or significantly reduces a measurement or recognition inconsistency that might arise; or

         • The financial liability is part of a group of financial assets or liabilities, or both, which is managed and whose performance is evaluated on a fair value basis, in accordance with the risk management documented by the company and its subsidiaries, or its investment strategy, and information is provided internally on that basis; or

         • It forms part of a contract containing one or more embedded instruments, and IFRS 9-Financial Instruments-permits the entire combined contract to be designated at fair value through profit or loss.

           Financial liabilities at fair value through profit or loss are measured at fair value, with any gain or loss arising from remeasurement recognized in profit or loss. The net gain or loss recognized in the income statement includes any interest paid on the financial liability.

           Financial liabilities at amortized cost

           The Group classifies all financial liabilities as subsequently measured at amortized cost using the effective interest method, except:

           • Financial liabilities that are accounted for at fair value through profit or loss.

           • Financial liabilities arising from a transfer of financial assets that do not meet the requirements for derecognition.

           • Financial guarantee contracts.

           • Commitments to grant a loan at an interest rate below market rates.

   4. Derivative financial instruments-The Group enters into a variety of financial instruments to manage its exposure to interest rate and foreign exchange risks, including foreign exchange hedging contracts, interest rate swaps, and foreign currency purchases and sales.

      Derivatives are initially recognized at fair value on the date the derivative contract is entered into and are subsequently remeasured to fair value at the end of the reporting period. The resulting gain or loss is recognized in profit or loss immediately, unless the derivative is designated and effective as a hedging instrument, in which case the timing of recognition in profit or loss depends on the nature of the hedging relationship.

   5. Impairment of financial assets-The Group recognizes a provision for expected credit losses on investments in debt instruments measured at amortized cost or at fair value through other comprehensive income, lease receivables, as well as on loan commitments and financial guarantee contracts. No impairment loss is recognized for investments in equity instruments. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since the initial recognition of the respective financial instrument.

      For trade receivables, lease receivables, or contractual assets, the Group recognizes expected credit losses based on expected losses over the asset's entire life, assessed individually for significant receivables and collectively for receivables that are not individually significant.

      To assess whether there has been a significant increase in credit risk, the group considers the risk of default over the expected life of the financial instrument, as well as the occurrence of renegotiations or changes in the cash flows of accounts receivable.

      To determine expected credit losses, credit risk is monitored by customer type, which are grouped according to their characteristics, including business segment, market type, and service class. Loss rates are based on historical collection performance using monthly averages by service class. Trade receivables and other accounts receivable relate primarily to energy customers in the regulated and unregulated markets, in the residential, commercial, industrial, and government sectors.

      Due to the nature of the wholesale market (energy exchange and bilateral contracts with third parties), an individual impairment analysis is performed on the associated accounts receivable, ranging from a preliminary review of the third parties to securing the portfolio with collateral or promissory notes, the latter only in the case of third parties with a good credit rating.

      The Group recognizes in the period's results, as a gain or loss from impairment, the amount of expected credit losses (or reversals) by which the allowance for credit losses must be adjusted as of the reporting date.

      The measurement of expected credit losses recognized by the Group must reflect:

      1. an unbiased probability-weighted amount determined by evaluating a range of possible outcomes;

      2. the time value of money; and reasonable and supportable information available at no cost or disproportionate effort as of the filing date regarding past events, current conditions, and forecasts of future economic conditions.

      3. reasonable and supportable information available at no cost or disproportionate effort as of the reporting date regarding past events, current conditions, and forecasts of future economic conditions.

   6. Financial asset written off-The Group writes off an account receivable if, and only if, the contractual rights to the cash flows from the account receivable expire.

      Upon writing off a receivable or a portion thereof, the difference between the following is recognized in profit or loss for the period:

      1. Its carrying amount and

      2. The sum of the consideration received

   7. Discharged financial liability-A financial liability shall be derecognized if, and only if, the Group's obligations expire, are settled, or are fulfilled. The difference between the carrying amount of the discharged financial liability and the consideration paid or payable is recognized in profit or loss.

1. Borrowing costs-Borrowing costs directly attributable to the acquisition, construction, or production of qualifying assets-which are assets that require a substantial period of time before they are ready for use or sale (more than one year)-are capitalized as part of the cost of those assets until the assets are ready for use or sale. The Group considers a substantial period of time to be a period longer than one year.

   Income earned from the temporary investment of resources pending use in the construction or production of qualifying assets is deducted from borrowing costs to be capitalized as an increase in the asset's cost.

   All other borrowing costs are recognized in income during the period in which they are incurred.

2. Consolidation and Business Combinations-Companies over which Celsia S.A. has control are consolidated as of the acquisition date using the full consolidation method, which involves the consolidation of all their assets, liabilities, revenues, expenses, and cash flows into the consolidated financial statements, after making the appropriate adjustments and eliminations for transactions within Celsia S.A.

   The results of subsidiaries acquired during the fiscal year are included in the consolidated statements of income as of the effective date of acquisition.

   Celsia S.A. accounts for business combinations using the acquisition method when control is transferred to the company. The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired; any resulting goodwill is subject to annual impairment tests. Any gain on a bargain purchase is recognized immediately in income. Transaction costs are recorded as an expense when incurred, except when they relate to the issuance of debt or equity instruments.

   The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are generally recognized in income.

   Any contingent consideration is measured at fair value as of the acquisition date. If an obligation to pay the contingent consideration that meets the definition of a financial instrument is classified as equity, it shall not be remeasured, and its subsequent settlement shall be accounted for within equity. Otherwise, the other contingent consideration is remeasured to fair value at each balance sheet date, and subsequent changes in the fair value of the contingent consideration are recognized in profit or loss.

   If equity-settled grants (replacement grants) must be exchanged for grants held by employees of the acquiree (acquiree grants), all or part of the amount of the acquirer's replacement grants is included in the measurement of the consideration transferred in the business combination. This determination is based on the market-based value of the replacement grants compared to the market-based value of the acquiree's grants and the extent to which the replacement grants relate to service prior to the business combination.

   The consolidation of the operations of subsidiaries has been carried out in accordance with the following basic principles:

   1. At the acquisition date, the assets and liabilities of the acquired entity are recognized at fair value, except that:

      1. Deferred tax assets or liabilities and liabilities or assets related to employee benefit plans are recognized and measured in accordance with IAS 12 Income Taxes and IAS 19 Employee Benefits, respectively.

      2. Assets (or disposal groups) classified as held for sale in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations are measured in accordance with that standard.

         In the event of a positive difference between the acquisition cost of the subsidiary and the fair value of its assets and liabilities, including contingent liabilities, corresponding to the parent company's interest, this difference is recorded as goodwill.

         If the difference is negative, it is recognized as a credit to the consolidated statement of comprehensive income. Acquisition-related costs are recognized as an expense as they are incurred.

   2. The value of non-controlling interests in the fair value of the net assets acquired and in the results of the consolidated companies is presented, respectively, in the consolidated statement of financial position.

   3. The financial statements of foreign companies whose functional currency is not the peso are translated as follows:

      1. Assets and liabilities (including comparative figures) are converted at the closing exchange rate on the date of the corresponding statement of financial position.

      2. Revenue and expenses for each statement presenting net income and other comprehensive income (including comparative figures) are converted at the exchange rate on the date of each transaction. For practical reasons, a monthly average exchange rate is used, provided that it has not fluctuated significantly.

      3. All resulting exchange differences are recognized in other comprehensive income and remain in a separate component of equity until the subsidiary is disposed of.

   The cumulative foreign exchange difference arising from the translation, to the extent attributable to non-controlling interests, is allocated to them and recognized as part of non-controlling interests in the consolidated statement of financial position.

   When goodwill arises from the acquisition of a foreign business, as well as adjustments to the fair value of assets and liabilities arising from such an acquisition, they are treated as assets and liabilities of the foreign operation and are therefore translated at the closing exchange rate.

3. Goodwill-The Group measures goodwill acquired in a business combination at cost, which is the excess paid in the business combination over the Group's interest in the net fair value of the identifiable assets, liabilities, and contingent liabilities.

   Goodwill arising from the acquisition of subsidiaries is measured at cost less accumulated impairment losses. Goodwill is not amortized; instead, it is tested for impairment annually or sooner if there are indications of a potential loss in the asset's value. Goodwill arising from a business combination is allocated to each of the company's cash-generating units (CGUs) or groups of CGUs expected to benefit from the synergies of the combination, and the criteria referred to in Note 35 Joint Arrangements are applied; internally generated goodwill is not recognized as an asset.

   1. Subsequent measurements-Goodwill is measured at cost less any accumulated impairment losses. For investments accounted for using the equity method, the carrying amount of goodwill is included in the carrying amount of the investment, and any impairment loss is allocated to the carrying amount of the investment accounted for using the equity method as a whole.

   2. Impairment of goodwill-The Group tests annually for impairment of goodwill acquired in a business combination. Impairment must be determined for goodwill by assessing the recoverable amount of the cash-generating unit (CGU) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount to which the goodwill has been allocated, the Group recognizes an impairment loss.

      The Group determines the recoverable amount by comparing the higher of its fair value less costs to sell and its value in use.

      If either of these two values exceeds the carrying amount of the asset under review, it is considered that no impairment loss exists and it will not be necessary to estimate the other. For the calculation of the recoverable amount of inventories, goodwill, and intangible assets, value in use is the criterion used by Celsia S.A. in virtually all cases.

4. Taxes - Income tax expense includes current income taxes and surcharges for the period and the effect of deferred taxes. Current and deferred taxes are recognized as revenue or expense and are included in net income, except when they relate to items in other comprehensive income or directly in equity, in which case the current or deferred tax is also recognized in other comprehensive income or directly in equity, respectively.

   1. Current tax - Current tax payable is based on taxable income recognized during the year. Taxable income differs from the income reported in the statement of comprehensive income due to items of taxable or deductible income or expenses in other years and items that are never taxable or deductible. The current income tax liability is calculated using tax rates enacted or substantively enacted at the end of the reporting period. The provision for income tax and surtaxes is determined based on taxable income or deemed income, whichever is greater, estimated at rates specified in the tax law.

   2. Deferred tax - Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities included in the financial statements and the corresponding tax bases used to determine taxable income. A deferred tax liability is generally recognized for all taxable temporary differences. A deferred tax asset shall be recognized for all deductible temporary differences to the extent that it is probable that the entity will have future taxable income against which to utilize those deductible temporary differences. These assets and liabilities are not recognized if the temporary differences arise from the initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither taxable income nor accounting profit.

      In a business combination, assets and liabilities are recognized at their fair value as of the acquisition date. Similarly, the recognition of deferred tax assets and liabilities in a business combination affects the amount of goodwill arising from the combination, or the recognized value of a bargain purchase.

      A deferred tax liability must be recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except for those where the group is able to control the reversal of the temporary difference and where there is a possibility that the difference may not reverse in the near future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are recognized only to the extent that it is probable that the group will have future taxable income against which to utilize those temporary differences and when there is a possibility that they may reverse in the near future.

      The carrying amount of a deferred tax asset must be reviewed at the end of each reporting period and reduced to the extent that it is considered probable that sufficient taxable profit will not be available in the future to allow all or part of the asset to be recovered.

      Deferred tax assets and liabilities must be measured using the tax rates expected to apply in the period in which the asset is realized or the liability is settled, based on the rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

      The measurement of deferred tax liabilities and deferred tax assets shall reflect the tax consequences that would result from the manner in which the group expects, at the end of the reporting period, to recover or settle the carrying amounts of its assets and liabilities.

      Current and deferred taxes shall be recognized in profit or loss, except when they relate to items recognized in other comprehensive income or directly in equity, in which case the current or deferred tax is also recognized in other comprehensive income or directly in equity, respectively; in the case of a business combination, when current or deferred tax arises from the initial accounting for the business combination, the tax effect is accounted for as part of the accounting for the business combination.

      3.10.3 Recognition of taxable temporary differences - Deferred tax liabilities arising from taxable temporary differences are recognized in all cases, except where:

      • They arise from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination, and the transaction date does not affect accounting profit or the tax base;

      • They relate to differences associated with investments in subsidiaries, associates, and joint ventures over which the group has the ability to control the timing of their reversal, and it is not probable that they will reverse in the foreseeable future.

      3.10.4. Recognition of deductible temporary differences-Deferred tax assets arising from deductible temporary differences are recognized provided that:

      • It is probable that sufficient future taxable income will be available to offset them, except in cases where the differences arise from the initial recognition of assets or liabilities in a transaction that is not a business combination and that, at the transaction date, does not affect accounting profit or the tax base;

      • They relate to temporary differences associated with investments in subsidiaries, associates, and joint ventures to the extent that the temporary differences are expected to reverse in the foreseeable future and positive future taxable income is expected to be generated to offset the differences.

      Deferred tax assets that do not meet the above conditions are not recognized in the statement of financial position (separate or consolidated). The Group reassesses at year-end whether the conditions for recognizing deferred tax assets that were previously unrecognized have been met.

      Tax planning opportunities are considered in the assessment of the recoverability of deferred tax assets only if the Group intends to adopt them or is likely to adopt them.

      3.10.5 Measurement - Deferred tax assets and liabilities are measured using the tax rates applicable in the periods in which the assets are expected to be realized or the liabilities settled, based on enacted or substantively enacted legislation, and after considering the tax consequences arising from the manner in which the Group expects to recover the assets or settle the liabilities.

      At the end of the fiscal year, the Group reviews the carrying amount of deferred tax assets with a view to reducing that amount to the extent that it is unlikely that sufficient future taxable income will be available to offset them. The companies' non-monetary assets and liabilities are measured in their functional currency. If tax losses or gains are calculated in a different currency, exchange rate fluctuations give rise to temporary differences and the recognition of a deferred tax liability or asset, and the resulting effect is charged or credited to income for the period.

      3.10.6. Offsetting and Classification-The group offsets deferred income tax assets and liabilities only if there is a legally enforceable right to offset them with the tax authorities and such assets and liabilities relate to the same tax authority, and the same taxpayer, or to different taxpayers who intend to settle or realize the current tax assets and liabilities on a net basis or to realize the assets and settle the liabilities simultaneously, in each of the future fiscal years in which significant amounts of deferred tax assets or liabilities are expected to be settled or recovered. Deferred tax assets and liabilities are recognized in the statement of financial position (separate or consolidated) as non-current assets or liabilities, regardless of the expected date of realization or settlement.

5. Contingencies-The Group does not recognize contingent assets or liabilities; it only discloses them. Contingent liabilities may develop in ways not initially anticipated; therefore, they must be assessed on an ongoing basis to determine whether an outflow of resources embodying economic benefits has become probable. If so, a provision must be recognized in the financial statements for the period in which the change in the probability of occurrence occurred. Contingent assets are assessed on an ongoing basis; when the realization of the revenue is virtually certain, the corresponding asset is no longer contingent in nature, and it is therefore appropriate to recognize it.

   The balance of the provision for litigation covers lawsuits filed against the Group by third parties. In the opinion of management, following appropriate legal advice, the outcome of these litigations is not expected to differ significantly from the amounts provisioned as of December 31, 2025, and 2024.

6. Assets held for sale - Non-current assets (or disposal groups) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use, and the sale is considered highly probable. These assets are measured at the lower of their carrying amount and fair value less costs to sell, except for deferred income tax assets, assets arising from employee benefits, financial assets, and investment properties, which are recorded at fair value.

1. Share Capital

   1. Common stock

      Common stock is classified as equity. Incremental costs directly attributable to the issuance of common stock are recognized as a deduction from equity, net of any tax effect. The reserves recorded are those authorized by the General Shareholders' Meeting; in addition to the 10% legal reserve based on the year's results, the remaining reserves may be used to support expansion plans or projects or to meet the group's financing needs.

      The Commercial Code requires companies to set aside 10% of their annual net income, as determined under local accounting standards, as a legal reserve until the balance of this reserve equals 50% of the subscribed capital. The mandatory legal reserve is not distributable prior to the company's liquidation, but may be used to absorb or reduce annual net losses. Balances of the reserve in excess of 50% of the subscribed capital are freely available to shareholders.

      A share premium is recognized when there is a difference between the par value of the share and the amount paid.

   2. Repurchased treasury shares

1. Revenue Recognition-The group recognizes its ordinary revenue such that the transfer of goods or services committed to customers is recorded at an amount that reflects the consideration the entity expects to receive in exchange for the goods or services.

   1. Identification of performance obligations-At the inception of contracts, the group assesses the commitments made to customers by recognizing a performance obligation for each distinguishable good or service. A good or service is distinguishable when:

      • The customer can benefit from the good or service on its own, and,

      • The obligation to transfer the good or service to the customer can be identified separately from other obligations assumed.

        A series of distinct goods or services that are substantially the same are recognized as a single performance obligation if:

      • They are obligations that are satisfied over time.

      • The same method is used to measure the satisfaction or fulfillment of the performance obligations.

        For the Group, in almost all cases, the consideration is in the form of cash or cash equivalents, and the amount of revenue is the amount of cash or cash equivalents received or receivable. However, when the consideration is received over a period exceeding one year, the fair value of such consideration may be less than the nominal amount of cash or cash equivalents to be received; therefore, the amortized cost method is applied, discounting future cash flows at a market rate. (See Note 3.3 Financial Instruments).

   2. Sale of goods-Revenue from the sale of goods should be recognized when the goods are delivered, ownership has been transferred, and each of the following conditions is met:

      • The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;

      • The Group retains no involvement in the day-to-day management of the goods sold to the extent usually associated with ownership, nor does it retain effective control over them;

      • The amount of revenue can be measured reliably;

      • It is probable that the entity will receive the economic benefits associated with the transaction; and

      • The costs incurred, or to be incurred, in connection with the transaction can be measured reliably.

   3. Sale of Energy-Revenue is recognized in the income statement on an accrual basis when there has been an increase in future economic benefits related to an increase in assets or a decrease in liabilities, and its amount is reliably measurable. Upon recognition of revenue, all associated costs and expenses are recognized

      Revenue from generation activities primarily comes from energy sales through bilateral contracts to the regulated and unregulated markets, the Exchange, the secondary frequency regulation service (AGC), and the Reliability Charge.

      CREG Resolution 071 of 2006 approved the current methodology for the payment of the Reliability Charge to generators in the Wholesale Energy Market (MEM).

      The methodology for compensating transmission activities is known as regulated revenue, through which the maximum annual revenues paid to each transmission operator are established, based on the assets they actually own within the National Transmission System (STN). These revenues are collected through charges for use of the STN, which are paid by the suppliers (demand side) of the National Interconnected System (SIN). The billing and collection resulting from the application of the STN usage charges are managed centrally through the STN Settlement and Account Administrator, who bills and settles the usage charges.

      For the purposes of remuneration for distribution activities, the CREG (Energy and Gas Regulatory Commission) defines the applicable remuneration, which is reviewed every five years in accordance with regulatory provisions. The established remuneration methodology is linked to a quality framework.

      The marketer's revenue comes from purchasing energy from the MEM and selling it to end users, for which billing, metering, collection, portfolio management, and customer service activities are carried out, among others.

      Revenue from energy sales in the regulated and unregulated markets is recognized based on kilowatts consumed by customers, whether billed or unbilled; revenue from the sale of related services is recognized upon billing. Unbilled energy at the end of the month is estimated based on internal and external information, the latter provided by the energy market regulator.

   4. Revenue from service contracts is recognized based on the contract's stage of completion, which is determined as follows:

      • Installation fees are recognized as revenue from ordinary activities based on the stage of completion of the installation, determined as the proportion of the total estimated time required for installation that has elapsed at the end of the reporting period;

      • Service fees included in the price of products sold are recognized based on the proportion of the total cost of the service provided for the product sold.

   5. Dividend and interest income-Income from investment dividends is recognized once the shareholders' rights to receive such payment have been established (provided that it is probable that the economic benefits will flow to the company and that the ordinary income can be measured reliably).

      Interest income from a financial asset is recognized when it is probable that the Group will receive the economic benefits associated with the transaction and the amount of revenue can be measured reliably. Interest income is recognized on a time basis, with reference to the outstanding principal and the applicable effective interest rate, which is the discount rate that exactly smooths the estimated cash flows receivable or payable over the expected life of the financial instrument to the net carrying amount of the financial asset upon initial recognition.

      The financial income and expenses recognized by the Group are primarily associated with returns generated and paid to financial institutions and income from customer financing.

   6. Rental Revenue - Payments received from operating leases are recognized as revenue in the income statement on a straight-line basis over the term of the lease, unless another allocation method is considered more representative.

2. Recognition of Expenses-The Company and its subsidiaries recognize their costs and expenses as economic events occur, ensuring they are systematically recorded in the corresponding accounting period, regardless of the flow of monetary or financial resources (cash). An expense is recognized immediately when a disbursement does not generate future economic benefits or when it does not meet the requirements for recognition as an asset.
3. Earnings per Share-The Company and its subsidiaries present data on basic and diluted earnings per share for their common stock. Basic earnings per share are calculated by dividing net income attributable to common shareholders by the weighted average number of common shares outstanding during the fiscal year, adjusted for treasury stock held.

1. Reportable operating segments-In conducting its business, Celsia operates based on a priority focus on its core business, consisting of the generation, transmission, distribution, and sale of electricity, gas, and related services, and establishes two major business lines, each based on a geographic area: Colombia and Central America.

   The Group discloses separate information on each of the operating segments, in accordance with the definition of segments (see Note 31-Operating Segments).

2. Related Parties-For the purposes of IAS 24 Related Party Disclosures, the company considers as related parties its associates and joint ventures, entities that exercise joint control or significant influence, its subsidiaries, and key management personnel.

1. Employee Benefits-The Group recognizes a liability for employee benefits when employees have rendered services in exchange for benefits to be paid in the future, and recognizes an expense as it receives the economic benefits derived from such services.

   Employee benefits are classified into short-term benefits, post-employment benefits, other long-term benefits, and termination benefits.

   Defined contribution plans are recognized as an expense in the period in which employees render the services entitling them to the corresponding contributions.

   Defined benefit plans are recognized as a net liability equal to the present value of the defined benefit obligation less the fair value of plan assets, if any. The defined benefit obligation is calculated annually by an independent actuary using the projected unit credit method. Actuarial gains and losses are recognized immediately in other comprehensive income and are not subsequently reclassified to profit or loss. The recognition of any defined benefit asset is limited to the present value

   of the economic benefits available, in the form of future refunds or reductions in future contributions, taking into account minimum funding requirements where applicable.

   1. Other long-term employee benefits - The Group's net obligation for other long-term benefits corresponds to the present value of the future benefit that employees have earned for services rendered in the current and prior periods. These obligations are measured using actuarial techniques, and new measurements are recognized directly in profit or loss in the period in which they arise.

   2. Termination benefits - Termination benefits are recognized as an expense when the Group cannot withdraw the benefit offer or when it recognizes the costs of a related restructuring, whichever occurs first. When these benefits are expected to be settled more than 12 months after the reporting period, they are measured at present value.

   3. Short-term employee benefits - Short-term employee benefits are recognized as an expense when the related service is rendered and are measured on an undiscounted basis. A liability is recognized for the amount expected to be paid when there is a legal or constructive obligation arising from services rendered and the amount can be estimated reliably.

   4. Liabilities for equity-based payments - The Group recognizes as liabilities the benefits granted to employees under equity-based payment arrangements that are settled in cash, in accordance with the provisions of IFRS 2 - Share-based Payment. These liabilities are recognized based on services rendered and are measured at fair value at each reporting date until settlement. Changes in fair value are recognized in net income for the period. The expense associated with these agreements is recognized over the vesting period, taking into account the fulfillment of vesting conditions, the employees' service period, and the best estimate of the number of rights expected to vest by the end of that period. Contributions made by the Group to institutional plans associated with share-based payment arrangements are recognized directly as a decrease in equity, since the underlying asset of such plans consists of Celsia S.A. treasury shares. Consequently, changes in the fair value of such shares are not recognized.

1. IMPLEMENTED IN COLOMBIA AS OF JANUARY 1, 2025

   Amendment to IAS 21 - Lack of Interchangeability

   In August 2023, the International Accounting Standards Board issued an amendment to IAS 21 regarding the lack of currency convertibility, effective for annual periods beginning on or after January 1, 2025. The Group does not engage in transactions in currencies that are not convertible into its functional currency; therefore, this amendment had no impact on the financial statements.

2. IMPLEMENTED IN COLOMBIA AS OF JANUARY 1, 2027

   Decree 1271 of 2024 incorporated IFRS 17 Insurance Contracts into the Colombian regulatory framework, a standard that establishes the principles for the recognition, measurement, presentation, and disclosure of issued insurance contracts, as well as certain reinsurance and discretionary participation investment contracts.

   The Group does not issue insurance contracts or investment contracts with discretionary participation features; consequently, it does not anticipate any impacts resulting from the adoption of this standard. However, the Group will continue to conduct analyses and monitor regulatory developments to ensure proper compliance once the standard becomes effective in Colombia on January 1, 2027.

3. STANDARDS ISSUED BY THE IASB NOT YET ADOPTED IN COLOMBIA

   OECD Pillar Two Rules - Amendments to IAS 12

   In 2024, the IASB issued amendments to IAS 12 that provide temporary relief regarding the recognition and disclosure of deferred taxes related to legislation implementing the OECD's Pillar Two rules. Although these amendments have not yet been incorporated into the Colombian technical framework, the Company has applied the minimum effective tax rate of 15% established in local regulations since 2023 and, in line with this relief, does not recognize deferred taxes associated with this tax. No additional impacts arising from the amendments issued by the IASB have been identified.

   Amendments to IFRS 9 and IFRS 7-Classification and Measurement of Financial Instruments

   On May 30, 2024, the IASB issued amendments to IFRS 9 and IFRS 7, effective as of January 1, 2026, primarily related to the classification, measurement, and disclosures of financial instruments. The Company evaluated these amendments and did not identify any material impacts on its financial statements.

   IFRS 18 - Presentation and Disclosure in Financial Statements

   IFRS 18 replaces IAS 1 and introduces changes to the structure of the income statement, aggregation and disaggregation principles, and disclosures for management-defined performance measures. It is scheduled to take effect on January 1, 2027, subject to its incorporation into the Colombian technical framework. The company has not early adopted this standard and will assess its impact in due course once it is formally incorporated.

   IFRS 19 - Subsidiaries without Public Accountability: Disclosures

   The standard allows eligible subsidiaries to apply reduced disclosure requirements while maintaining the measurement and recognition principles of full IFRS. Its application is voluntary and is expected to be effective for annual reporting periods beginning on or after January 1, 2027, with early adoption permitted.

   The Group will analyze potential eligibility and the advisability of its application once the standard is adopted in Colombia. During 2025, the Group did not early adopt any standards or amendments issued by the IASB.

4. INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB) STANDARDS - CLIMATE CHANGE

1. Significant judgments in applying accounting policies that do not present a significant risk of materially affecting the next period

   In accordance with paragraph 122 of IAS 1 Presentation of Financial Statements, the following are the judgments made by management during the application of accounting policies that have a significant effect on the amounts recognized in the separate financial statements. These judgments are distinct from the estimates referred to in paragraph 125 of the same IAS, as management does not believe they present a significant risk of causing material adjustments in the subsequent accounting period.

   1. Cash-Generating Units

      When performing impairment tests on non-financial assets, assets that do not individually generate cash inflows that are largely independent of the cash flows generated by other assets or groups of assets must be grouped with the cash-generating unit to which the asset belongs, which is the smallest identifiable group of assets that generates cash inflows for the group; that is, to a large extent, independent of the cash flows derived from other assets or groups of assets. Management uses its judgment in determining the Cash-Generating Units for the purposes of impairment testing, in accordance with the provisions of IAS 36 Impairment of Assets.

      Cash-Generating Units (CGUs) were identified based on the businesses operating within the group, such as Generation, Transmission and Distribution, Marketing, and Internet. Considering the significance of each business and its ability to generate cash flows, the CGUs are associated with each business.

      To strengthen their businesses, Celsia and its subsidiaries determine the allocation of capital to be invested by business unit and conduct their analyses of return on investment from the same perspective. For the purposes of analyzing whether to remain in a business, the company always considers the sector in which it operates rather than individual assets. However, each business analyzes its UGEs independently, based on the grouping of assets or businesses that synergistically contribute to the group.

   2. Determination of the lease term for contracts with renewal options and leases whose term is automatically extended at the end of the original term

      Determining the lease term requires judgment on the part of management, particularly in contracts that include automatic renewal or extension options. In such cases, the Group assesses whether it is reasonably certain that these options will be exercised, taking into account economic incentives, historical experience, and the expected use of the asset. Changes in these assessments may affect the carrying amounts of right-of-use assets and lease liabilities.

   3. Current Income Tax

      Celsia and its subsidiaries recognize current income tax amounts in the consolidated financial statements given the volume of operations. The determination of current income tax is based on management's best interpretation of applicable laws and best practices in the jurisdictions in which it operates. The reasonableness of this estimate depends on management's ability to integrate complex tax and accounting standards and to consider changes in applicable laws.

      Uncertain tax positions are situations where the tax treatment is unclear, either because there are no explicit regulations on the matter or because there are differing judicial and doctrinal interpretations of the applicable treatment, making it impossible to legally guarantee the taxpayer's course of action. Celsia and its subsidiaries may face uncertain tax positions primarily regarding the deductibility of certain expenses or the differential treatment of certain income in tax returns. To date, no provision has been recognized for uncertain tax positions classified as remote or possible in the legal proceedings initiated by the relevant entity. The probability analysis is based on expert opinions and the interpretation of current tax regulations in the applicable jurisdiction.

   4. Pension Plans and Other Defined Post-Employment Benefits

      The liability for pension plans and other post-employment benefits is estimated using the projected unit credit method, which requires the use of financial and demographic assumptions, including but not limited to the discount rate, inflation rates, expected salary increases, life expectancy, and employee turnover rates. The estimation of the liability, as well as the determination of the values of the assumptions used in the valuation, is performed by an independent external actuary, taking into account market conditions existing as of the measurement date.

      Given the long-term nature of these benefit plans, the estimates are subject to a degree of uncertainty. The determination of actuarial assumptions requires the use of professional judgment; any change in actuarial assumptions directly impacts the value of the pension and other post-employment benefit obligations.

   5. Fair value of financial instruments and financial derivatives that are not Level 1