CELSIA S.A. E.S.P. (CELSIA) Earnings Call Transcript & Summary

[Interpreted] [Operator Instructions] Thank you so much for being connected to our teleconference. We want to tell you that we are also broadcasting from the X platform on a space where at this moment, we have 20 people. Coming up next, I'm going to give the floor to Ricardo Sierra, leader of Celsia. Welcome, Ricardo.

[Interpreted] Thank you, Gonzalo. Welcome to this conference of wrap-up results for the 4 trimester. As well as the shareholder meet Board said that we can share some of the cash flow that we had from the sale of some assets that we had in Central America. So it's a nice combination, and we have that is well received by our investors. Let's remember the last year we had an appraisal of 6.5%. And talking about the close of the year, it ended up in COP 2,160, contrasting with the change of coal cap of 7.7%, considering dividends and increase of 6.5%. The total return for 2023 was 18%. That has been outdated because we started executing the program on 3 of the shared restitution through the BBC mechanisms to increase liquidity in the market. And in this way, contribute to improve the price forming until February 2nd, we bought over 225 million actions for COP 428 million. The increased amount of shares to 428,000 shares compared with 190,000 shares that we were having from 2023. So taking these to 25% above the negotiated volume that year. Talking from February, the repurchase has been suspended given the rules of this mechanism that has been defined by BBC. We're going to continue with the execution of the program through our independent mechanism with a value to require to up to COP 10 billion, and the price production will go with the cost of the change on the BBC in the days of the warning and the closing date of the actions on BBC or tomorrow of Thursday, 22nd of February. So in the 25th and 29th, we hope that we can have these offers. And this fashion with this 10,000, we will be able to compensate the time that we were outside the market and give a little bit more liquidity to our share. Afterwards, we are going to go directly to the repurchase through transactional mechanisms. In the transactional mechanisms, I'm telling you that we have always been operating with a maximum that has been allotted every single day. Now let's go with the company results with this year. We have the company set up with something working with profits on 12% for 2023. We had 16.36% in 2026, we had something level of 1 single digit. This reconfiguration of the operations in Colombia to have in a single device, the optimization of the assets of the portfolio and increasing the unregulated activities and all the work that we have done in new technologies allow us to have these results. From 2017, we started the structuring and creation of the things that you have heard from us that are the investment platforms. Now they have a sizable and relevant size. And we are working about this because we have had growing scenarios, and they have allowed profitability that we would have been able to have before. So let's see how the company has been structured to see this new value dimension for Celsia and their shareholders. Celsia represents the meeting of 2 big businesses under the same umbrella. On the one side, we have the energy businesses that includes generation, distribution and trading of energy and the adjoining products with assets at our property of Celsia, South Colombia, Latin & Central America is a traditional business of energy or as we know it outside the typical U.K. businesses. On the other hand, we have an asset management model that incorporates best platforms where we are the only partners, but we're also developing the commercial representation of the assets before the electrical market. We develop and build projects that we have in these platforms. We also have some margins from the operation and maintenance of the assets. And in general terms, we are attentive to working with all these elements. Also, we soon hope that we can incorporate within these our activities in Peru and add other growing fronts. It's interesting these 2 in 1 that is Celsia now that allow us to continue creating powerful value creation mechanisms for our shareholders, both from our traditional activities like from the other fronts that help us to move constantly in this dynamic world of energy. Let's talk now about each one of these cornerstones. In our business, we have a capability of 1.4 megawatts. The brine that we have that are remunerating the 3.38 elements in the component of transmission broadcasting is a catering to more than 1.3 million customers in the commercialization part. In our asset management, we have, in this moment, 3.7 billion of operational assets in the platforms, C2 Energy, Laurel, Tesorito and Caoba. So you can see how sometimes we lose the reading of this, and we need to make this visible to explain a bit more in detail these 2 worlds that are living together in Celsia. In the business energy model, during their profound exercise, we have some income of COP 4.93 billion with an EBITDA of COP 1.51 billion. And the net profit of this business went to COP 463 billion. On the side of the platforms that are under the asset management model added income for COP 1 billion, and EBITDA of COP 546,000 billion and some net profits of COP 108,000 billion. These final results from the platforms of the asset management are not being consolidated in our financial statements. As you can see, this is a powerful interesting strategy generates value and allow us to be in growth and the company to be in electrical work that is in gel and a very interesting model on growth. Let's continue working now with the financial results, and we're going to give floor to our CFO, so that he can share this information with us.

[Interpreted] Thank you, Ricardo, and good day for everybody talking about the different challenges that we have had for this call. As usual, the detailed analysis of the state results and the financial information, you can find in their reports that have been published in their different investors. It's important to mention that the fourth trimester, we have the sale of the assets of Central America that increased the work of the attendance that generated a lower profit compared with COP 1.2 million. The agreement of sale had a fixed price for January 2023. For this reason, we have to review all the movements of the relationships as we have done so far. So we also registered in this last trimester with an agreement with the claiming that we had with the project profit that gave a net expense of COP 6.5 billion. Cost-related income in the fourth semester were COP 1.66 billion, with a reduction of 6.2% concerning the same period of the prior year. Operations in Colombia were 95.7% and Central America provided 4.3% given this investment are concerning what we have done. In Colombia, the results were characterized, but an increase on the generation of 32%, explained by a higher sales rate that compensates the lower volume of energy that was generated. Within this income, we consider more than COP 9 billion into activation of the coverage of the climate parametric that we had during this trimester. In the commercialization business, we had a growth of 13%, explained mainly for a higher rate in the regulated market and a higher demand, which compensates the lower income from the fee option rate that was diminished concerning last year. The income of the using connection of networks also increase this time, 22% given a higher IPP and IPC year-over-year, the assets and commercial operation and the adjustment of the regulatory WACC. In Central America, we had $16.7 million, out of which $11.9 million related to the creation of energy and the other income with the business of customer attention with solar projects and other operational services were $4.7 million. Consolidated income in 2023 were COP 6.3 billion and registered a growth of 11.6% concerning last year. On sales, we had COP 1.23 million, a reduction of 6.7%. So far, the cost of sale has been 42 billion, and in this case with a growth of 14.1% by increase of the generation costs linked with higher thermal request due to El Nino, especially in electric energy. Admirative expenditures were COP 89 million, with a reduction of 27.1%, given the optimization on the expenses by the austerity campaign that we've internally promoted in the company. This linked with the recovering of the portfolio of CNC Delmar and the commercial portfolio. So far, that means COP 344.5 billion, that is 4.25% lower than what we had with the prior year. EBITDA to trimester was COP 439.8 billion and had showed a reduction of 0.9% before the other trimester of 2023. The EBITDA was located in 26.7%. And EBITDA accumulated is 3.8% and was located in COP 1.85 billion, having a margin of 29.7%. When we isolate the commercial representation and the BOT sales that Ricardo was mentioning Santiago, is part of the management service of the platforms. EBITDA merely of this energy service is the 38%, so it goes line with that work. Net financial expenditures were COP 186.8 billion, having a reduction of 12.7% explained by a reduction on the amount of expenditure given out this investment in Central America and lower investment rates, both given the indexing areas and the others. So far, the financial expenses have reached COP 872.6 billion. That is 54.8% more than the interest that we had during 2022. So the taxes to profits were COP 25,000 million. The trimester was reduced 69.2%, mainly because we had higher tax benefits associated to investment and the engine operation of the solar park. The accumulated of 2023 had good elements about COP 183 million and registers a reduction of 48.1% versus 2022. Net consolidated earnings were COP 66.3 million and in the year, COP 348.8 billion. The accumulated amount that we have controlled trimester at COP 14.5 million and the year was COP 193.4 million. For the net earnings of the year, the 2 topics that are more interesting for us that we're highlighting are the once associated to the financial movements of the situation of the assets in Central America and the closing of the agreement that we have from the beginning. In the numbers that we have, the company closed the year with a consolidated of COP 4.83 million. Now we're delivering 7.34 in the EBITDA. The mean life is 5.33 years and we finished with a consolidated work of COP 56,000 million. In the platforms, we were talking about platforms in C2 Energy. We tripled the income in the year, while having COP 130 billion with EBITDA of COP 112.8 billion. La Guajira that is our solar platform on a lower scale. We have COP 13.8 billion and EBITDA of COP 148.2 billion. Tesorito has an extraordinary income on INR 859,000 million and EBITDA of COP 112 billion. And finally, in Caoba it had income for COP 483.8 million with a growth of 27% and EBITDA of COP 248.2 billion. That also means at 25%. All the numbers that I just mentioned in the platform have not been consolidated with our financial results, and they are part of these assets that we have already mentioned. So with this, I finish the analysis of the financial data. Thank you so much.

Thank you so much, Esteban. I would like to highlight something else that related to the topic of the financial data. EBITDA that has been consolidated shows COP 1.83 million. And when we add up the associated elements, we have COP 2.83 billion. Now we are managing assets for over COP 12.5 million, both in those energy services like in the other assets. These businesses and the growth strategy has allowed us to yield our results for shareholders, and we hope that is an important part of growth and profitability in the future. So it's not a minor element, COP 20.8 million that we have in EBITDA in the asset management, and it has grown with more than 2 digits probably for the next 2 to 3 years with investment plans that we have already defined. We are going to continue giving you an detailed idea of both worlds that we have inside Celsia. So that you can cover our numbers, you can make a calculation analysis, and we can recalculate the topics that we have in the projection of the value from Celsia. We can talk also about the total investment that we had last year. We managed investments for more than COP 1.14 million distributed as follows: investment for the operational continuity for 200 million investment for expansion for COP 197 million, investment in Central America for COP 700 million and investment for the platforms for over COP 665 million. So you can see clearly how this is presented. We had the money ligated in utilities in Colombia and in the sole growth of their platforms in Colombia, we did investments for almost COP 300 million more. That's good. Now concerning results and growth, we had summoning for the Careto 500 kilovolts with a small network 1-kilometer and double circuit in the call for action, we had 6 offers, and we managed to have to be selected. Project like this that is given reliability to the system, and the Caribbean region is expanding their capability in the coast and is going to be able to get many meetings of good size in the area. The project considers associated lines that are going to be connected to the Comayagua and 400 volts. And the petition is going to have the possibility to have more lines and more transformers. The project should be operating in 2027. In the hydric generation, we still are managing this topic of the work of our centrals, and we have investment of generation, the thermal support as well as climate coverage with all the purpose of sorting out in the best way possible the linear phenomenon and be able to provide energy to our friends with competitive prices. To wrap up, the ASG of the last year through Celsia foundation, we work with the contributions given by the foundation. We were able to improve the school infrastructure of La Nina educational seats in 4 departments next to our operation, and we hope the work of more than 560 teachers, improving their capabilities and competencies. And with these, we were able to cover more than 50,000 students with all the country. In all the programs, we were able to benefit more than 85,000 people, some of these initiatives were delivery of safe water filters with the group Orica's foundation scholarships to have access to higher education. We see a marvelous program in the group and to bring children that don't have the capabilities to study, and we are giving them a chance to have a leap in their lives and their families and also we developed a program for improvement in our neighboring communities. From ReverdeC community, we also have 3.3 million trees. We restore 1,105 hectars, 11 hydrographic basins and we have reached almost 16 million of planted trees and more than 7.2 hectares since the program started in 2016. That means that we have also been certified a neutral carbon company for the second year in a row. So these are main elements. We are going to answer all the discussions and all the comments you have.

Thank you, Ricardo. Thank you for the proper topic. So in this moment, we are going to get ready to receive the questions from the participants. [Operator Instructions]. There is a first question on the platform with [ Juan Bulgarin, ] he was asking the following: Regards. You just mentioned that the company is focused on profitability. Profitability for shareholders is higher than the profitability of these and higher than WACC.

We use as our measurement parameter in the return that we give on the work that we do. For the closure when we finished 2023, we had a pandemic. And for the closure of 2023, they have the official data that is 18%, given the something that we calculated that is going to be 15-53. That means that we are effectively above our mean cost of capital. On the other side, we are also measuring for the purposes of our profitability exercise for the shareholder. We are talking with the shareholder the repository in English, that is some other dividends that we paid with the work in the action. And during 2023, what we have is that the combination both of dividends and the word that we had last year is around 18%.

Thank you, Esteban. Also we have one from Bulgari, with the percentage that we consider in prior meetings, It was saying that we were going to study these dividends every 2 months. But now we're talking about every 4 months. Can we give some additional information?

Well, basically, on the strategy of the management of the cash flow of the company 4 months allow us to model properly our cash flow needs. And if you see this, it's a custom that we have been handling for so many years, that we have many people that are accustomed to receive their dividends in this fashion.

Next question from Juan Bulgarin. What percentage was considered for the increase of the tax review. What is the procedure that you have for having a tax company to review this information.

[Interpreted] Juan, that goes with increase. For this year, we had a budget an increase of 25.8%. Well, basically the IPC. If you take into account last year, the price was COP 182 million, basically, we are about to pay in this period COP 198 million, 6099.22 million. Now given the corporate policies that we have to consider that the Article 5 is where we establish how we work with the tax review. It's important to take into account that the elements have to be presented at least 5 days before the date for the finishing of this. That means 5 days before the 21st, because also our QR code is something that you can easily find in Internet establishes that circular that we as issue, the pension funds are considering important elements, and we have to meet the external foreign element and the super financial, where we basically we are establishing the usefulness of these international standards and we are talking about this work and others. So when a shareholder wants to send our proposition on top of everything that we mentioned in the request, they need to have their share proposal, experience and others, the value that is going to be paid and all the documents that are going to tell us that they have the suitability that we mentioned, including the statutes, the government and the first element that we are mentioning.

Okay. Now we're going to go with the questions that we have live. We have one person that is [indiscernible] that is from Chile.

[Interpreted] I just wanted to make a question from the regulatory perspective in Colombia about the proposal or the reform to the public services that is intended by the President to send to the Congress. I don't know if you have an idea on the matter? And what do you think that can happen through these proposition?

Sure. Let me tell you a bit about our reaction. Yesterday, we have communicated from Anesco where it says that it summarizes quite well what we are thinking about the reform yesterday, we saw something from Minister of Mines saying that this was not the official text, but it was a text that was filtered. I don't know how and that they wanted to do something more agreed on so that it covers the needs that we have in the sector. Now from Celsia, we want to tell you that we share the position of Andres with his talk because I think that the reform of these Act 442, 443 was properly developed 30 years ago. And 30 years ago, it was done to solve many problems that we had in Colombia. I'm going to tell you about many of them. We're going to talk about coverage of 4 homes that we had in Colombia. We have one without energy. Now practically, we have full coverage in Colombia. Now talking about quality, Act 442 and 443, it's a product of the trauma that was generated by a turn off that we didn't -- maybe many of you didn't live. But there was a really hard 11 months. We had difficulties of energy supply in Colombia that was a fuel cost that was very expensive for us. So when we talk about quality and capability was managed because we gave our income and possibility so that the financial service, the fixed sector and the public energies can develop different projects and can continue competing. And this is what we have in Colombia. In Colombia, we have an ecosystem that even in the last element, we see that 30% of the offers that we have were effectively different and 80% were again, different developers or different parts of the world that are investing in Colombia. So the coverage, quality capability of energy generation and when we see prices that is one of the arguments that we see the most in the country. When we see prices, we have to be very careful. We have done a great analysis that is being linked with the Peruvian company [indiscernible] that is doing some studies in Latin America, where we can measure what primary cost of the energy service in Colombia, considering the other countries of the world. And we are like #5. But when we see the ones that are under working are field systems. And I want to make clarity into these because we have it Venezuela too. We can have our system in Venezuela because they have so many difficulties and so many issues from the things that happened and that the cost as cited to have energy are enormous, and they are not only considered in these. And that goes with many problems too. So the problems are still generating lots of difficulties to the customers. That has already been overcome. And I think that this act once to go back to a world to a scenario where the competitors where the private capital or mixed capital allow us to bring innovation to develop new products and new services. And probably Martino, there are going to be things that are going to be improved. We cannot deny this. And there are some special topics that have to be considered in terms of rates on the Northern Coast that we have canalize with not for defining a problem, we cannot load to all a system that has generated energy origins for all Colombia in an incredible manner. So basically, those are our comments. And we will continue making a follow-up to our groups and the things that we can do.

Then another question concerning the spot price. There was attempt from Craig that last year also wanting to put a cap on these on having 532, then it was left idle. Now we see there is around 600. And with Nino finishing in April, do you think that for the second half of the year, you see the spot price for the second half of 2024 taking into account or assuming that is moving from the Nino finishing on April.

It's an interesting comment, Martino. We had high prices, something interesting happens. National government make the choice not to allow to explore more gas. And the commodities, especially on the carbon and coal have gone up. Those are technologies that are coming to replace hydro because remember, this country is 17%, 18% of the yearly generation ends up being hydro and is really high to buy that cap. So we have 2 important plans, the closure of [indiscernible]. There was a gas plant that was very highly efficient Northern Coast, Ituango. And also, we saw that is a magic of the competence where we have the largest offer. So when we are offering this, we have to generate an incentive to make more generation, not to reduce or to take to the state players. So there's the first comment in terms of rates, and I'm leaving Carlos to explain the initiative that we have.

[Interpreted] As you're saying, or as you said, the regulator presented a proposal of putting a cap to the energy price and making some adjustments to the way that they are dispatching resources. And these proposals have not been complete. I'm talking about the reactions that we have from different trades and from the companies on the potential impact that we can have in this proposal in the rates, increasing them and also with sustainability of the thermal agents because it was affecting the profitability. The proposal is in a standby as we said. The price and Ricardo was explaining a bit the causes of this was worse levels until the last one. The [ El Nino ] hasn't finished. Our dams are still down, are below 50%. Hydrology still low, and we cannot rule out that when we see the responsibility that all the people have to take care of the resource until the things are completed, we can see some price spikes. As you were mentioning in the end of the question, we have that we have finished with the El Nino phenomenon. The hydrology has formalized and we can have prices similar to the ones that we had in prior years for that period of the year.

Now we're going to answer to another question that we have in Zoom, but the ones that we have written. Alejandro said, are you working in projects of works for taxes?

[Interpreted] Yes, Alejandro, we are still developing some projects. The program has been quite virtuous for us. We have been able to work in different communities and different projects with some marvelous numbers and some great impact. We have done more than 28 projects, more than COP 226 million have been invested in these elements in the department, something that happens with Santiago Arango, is that we have done more than 14 kilometers of roads. And we have improved the more than 1,700 educational institutions and 25 development centers, more than 286 elements that have been pretty nice. But unfortunately, it hasn't been so good that it increased withholding of taxes that we had and that is a problem. So now we have some nice balances in favor, but what is giving us issues -- We can apply more to work for taxes. We are around COP 600,000 million. And if we go to COP 67,000, we have fostered we have increased our reform to the management of these retention so that the big shareholders can effectively start executing this work. We are doing this work of convincing the Ministry of Environment, different institutions because we need to do this. We are the second largest player in this area in the region besides car petrol, and we are going to be out due to these circumstances. So thank you for asking. It's a great program that has allowed us to connect with the communities too.

I was telling you that we are in a space to in vivo X, and we have a question from [indiscernible] investor. Triple question 3 in 1. What is the indebtment level of the company? And what percentage is going to be considered in the variable rent? And if we are going to have different mechanisms for fixed assets for 2024 to reduce the expenditure taking advantage of the reduction of the rates that we are going to have this year.

The total depth of the company's COP 4.88 billion. Out of them in the total, 54% of our debt is going to be variable for IBR. 38% is variable associated to IFC and only 8% of this is seated to others. This is done because the rates also have readjustments associated to the IPCC. And what happens is that in the natural, we have a coverage, the way that we are working with these, and that's why we have to consider mostly at that index debt to IBRD and not much on rates. Every month, we try to make recommendations. And it's important to mention that half of that debt is in bonds and we cannot make more optimizations in the long-term program. But what I think that what we have and what we have shown in our debt is that every day we try to optimize particularly in these things that we are seeing in our work.

Thank you so much, Esteban and thank you to the investors and all the people that is with us in this moment seeing our conference. So let's go back to Zoom. We have a question from Juan Muñoz he raised his hand. Please go ahead.

[Interpreted] You just mention something about the El Nino phenomenon. I wanted to clarify what is the forecast that you have for El Nino for this year? Or what do you see concerning El Nino phenomenon in Colombia? And how do you see the level of the dams concerning what you already mentioned because they are already below the 18% in general levels in Colombia. And the second thing concerning El Nino phenomenon. I don't know if you can explain a bit what do you think that you have done differently in this El Nino phenomenon compared with the Rio one to have the results that you're having at this moment in the last trimesters?

[Interpreted] Great, I think that we will have to paraphrase a bit your question. So how are we phasing El Nino phenomenon, but how we done differently compared to 2016, 2017? What are our dam levels and a little bit of the approach of how we're going to behave so that we can listen to the question properly in the different channels that we are using. We are trying to be very prudent with our presentation because our projections, the volatility of this climate is really accelerated. We are seeing some warming up that are different than others that we had from other times. We're talking about some levels that we didn't have ever. So with the team, we have a specialized people that are working with the climate, they said that we have to be very highly cautious not to say that we want unless we have this. So let me give you data. The general system of dams in the country is below 50, is 49% as we speak. But accelerated, it lost a lot of dams last year. It has been 12%-15% that it has lost and that puts us in certain jeopardies. These ends in April. So everybody has to be very prudent with water. And our dams are well. We are doing what we call our medium curve of these and we are depending on the terms we have different levels. The sense dams are not essential. We're talking about dams that the largest will last 2 to 3 months if we start taking them from that top to the technical level, the minimal level. So we are tranquil from that point of view. Other thing is the question that we had a great question you make is what did with different? We had a configuration of assets that is really important. We did the same with 2015, 2016, we had some delicate issues. First, our sizable thermal plant with a lot of needs of working in this base to operate efficiently. And besides that, we had regulatory problems from the termination of the scarcity level. And what it made is that we had some months operating with a higher cost than the one that we had in the system. And that was only the petrol that we used to determine the scarcity price that was not the one that we had in the majority of the elements that we have. It was a regulatory area that was made, that was fixed at the end of El Nino and have some problems. And we have some technical issues too. In El Nino, as we said, black and white, but sometimes it's not enough. Sometimes it comes with different black swans traveling at the same time. And we get to different areas we are friends from EPM from Water pay. And we had several problems. We had some thermals that left the market given the financial results so that created a huge chaos. And we were heavily struck and the Board made our reconfiguration plan of the assets. So what's coming next? We sold this part with thermal assets is highly valuable for the country that has a lot of input that for our asset configuration was not the best one. And we replaced this with Tesorito, a plan that has 11 engines that are very important that are turned on in 3 minutes. We can have 30 megs each one. That gives a lot of flexibility. And in this El Nino in these elements have allowed us to give to important support and to work with the financial results that we need. Also, we grew a lot in our portfolio. We were the first ones that decided to get this technology in Colombia. And now we're leaders. We have 300 megawatts in operation that have helped a lot. We see how this technology works well in El Nino. We are having PCH of all of them that we have a great fleet of PCH. Also, from a financial standpoint, we have made climate coverage that allow us to ensure that we can have compensation depending on the length of El Nino and our parties. It's an innovation that financial team has developed. Now I'm talking about reconfiguration, some additional things that I wanted to mention on the sales of the BPA, we're still executing and we have a balance of $6 million, $25 million, for example, in this purchase of energy to the assets that we have, that is all national coverage mechanism that we have had. We have been highly committed with our energy sales process in our political policy to continue with this coverage. And the other thing that I was having that is different at that moment is that we are focusing on protecting important things. We're focusing on protecting the net profit, and we want to work with this. Not all so much in a project of EBITDA because many of them are being activated in different manners, depending on the EBITDA. And we have different participation but we are focusing mostly on protecting the work of the company and the net profit that we had that were our 2 largest plans in the '25 to '26. More than the entering of EBITDA, what paints us the most was registering the profits that we had and having the problems the cash flow issues that give us issues with the assets that we had. And that, obviously, from that moment, we have to work with that to put them on. So as to wrap up with this reconfiguration, remember that the company change, as we said before, at the beginning of the conference, we have 2x their distribution customers. So we acquired this, and we have these assets of transmission and others. And we have the growth of the platforms that you were mentioning. So El Nino, you can see Jan Jose and with its cross the fingers on knocking wood and let's hope that the country works well. We have to celebrate every time that is works well. Thank you so much.

For the people that we see that arrived after the beginning, we are having a conference of results of Celsia S.A on the 4th trimester of 2023. And being the last semester, the information of the last year, the one that we have already mentioned. We have a question from Simon Tieloppiez in the Zoom platform where we are also transmitting says, How much do you wait to recover the money of the fee rate because the increase is for it to recover this topic. I'm talking about El Nino phenomenon, what are the conditions of the energy for the different programs and the commercialization that we have from Celsia.

[Interpreted] That's great. The exposure, we have the hiring policy for our customers of distribution. We are very committed. We started buying the energy that we need in 2028 from now. So when we have 2023 and 2024, we were one of the companies with the best hiring levels. So our customers in El [indiscernible] basically, and in Tolima, they have had a stability in the generation component. So we have to talk about the generation component. We are talking that only have 35% of the rate they have had a high stability. Now we have exposure levels of around 10%, taking into account imagining our average between the 2 markets. So you're always going to see a highly conservative policy of keeping the exposure level of our customers in the middle and long term. Now concerning the question you were making on the rate option, CREG last year at the end of the year, had a firm resolution that allows to add up to the normal calculation of the rate, our fixed rate with which we are recovering this balance. Celsia works with this resolution with this mechanism, we can say that in the value market, we can have the unmet that we have from the tax rate in 1.2 years. In the case of Tolima market, we are hoping that this recovery happens in 5 years, give or take.

A question from Jennifer Sandoval through the app of the questions and answers from Zoom. Are you concerned that the information that you have on reliability cannot be made with the guarantees licenses and others? And the second, especially because it wasn't presented to these.

I'm going to give you some context about the survey. We presented the information that we have. We have already issued all of them, and we have 2 projects that we are developing. One is a solar farm that is called Caoba of 200 megawatts. It was an anything like this because the cutting price was lower than the one that we were requesting. But we also presented Tesorito-II. Tesorito-II was presented, unfortunately, the offer that we had all the topics when we do a competitive offer. We need to cover a lot of risks of the gas supply. And unfortunately, we couldn't reach a strategy that could generate all the tranquility to present the offer in a responsible manner. We are going to continue working with Tesorito-II. We're convinced that the country needs this, we had 248 thermal megawatts. We have signed 48. Out of them, we had 18 megs that is repowering of a plant that we have in Cartagena, of Pro-Electrica. And we signed another 30 megawatts that basically are biobased, some forestry issues and management of solid waste. So I want to tell you about the dimension of the 200 megawatts. Even when we see this, what was signed, it was 83 of solar energy, so joys are signed. All the solar part is the equivalent of a thermal plant of 432 megawatts that means that Tesorito only is going to be half of what we signed in energy. So we believe we are confident that there is a missing part if we see the high scenario of the demand of the CREG that can be equivalent to almost 5.3 gigawatts hour, which will be planned of 643 megawatts. So we believe there is a space that the government considers an auction for technology because I think it was clear that there is a need of reliability versus what we managed to do with the solar part. Otherwise, we will continue working and Tesorito having the return point with a competitive edge and being able to do it. On the other hand, we want to take advantage of Weinsolar, we had 400 megs. But our solar strategy is not conditioned to reliability sources. That means that we now have 300 megawatts that are developing, we're going to get to 600 completed by the end of the year. Additionally, we have around other 600-700 megawatts that are in stage close to the B2B and that rely from the reliability at cost relatability fee.

Can we give you from 8% to 13% of the cost of a high-scale solar farm.

So for you to take into account if we believe that there were many offers that put an offer to ensure management and a higher capability of the different operation rates, different players and different strategies that happen in this, quite interesting, too. And we are celebrating that we can create many of these assigned projects or as you said, Celsia has almost 1,000 megawatts that are developing or is building besides the reliability elements. So the solar revolution is still in fire, and we hope that we continue consolidating this technology that you know that Celsia has been great fans having evangelizes and we believe in that one. I don't know Esteban or Carlos has a comment on that.

Ana Guasca from Corredores Davivienda. Can you share more detail about other operational income items, understanding that we are registering a transaction from certain platforms? What type of transactions are we doing? And how are we registering them?

That doesn't go with the platforms in that rubric for the sake of the competitors, we also talk about the main elements that we are handling. In the part of the transaction of the comprehensive transaction, it was moving to the state that we were requesting. One of them is other operational income, where we are recovering an important part of the acknowledgment of long-term work that we had from the agreement that we have that is disappearing. So we have 400 net expenses and that is part of the composition of the movements. That goes in GAAP.

Thank you, Esteban. Alejandro make the question, do the works for taxes. There is a comment that is very interesting. I mentioned this because it's important to highlight the topic. It was in other areas and the were taxes it was spectacular. Thank you for the social impact that we have in this work in areas has affected as the ones that we have. Then Florencia raised the hand, the floor is yours.

[Interpreted] A follow-up concerning the rate fees and the coverage options. Maybe you can remind me the exact amount, how much would it be that you will be recovering 1.5 years or 2. And now concerning the climate coverage. I don't know if you can give us more detail about the triggers and others. Thank you so much.

First thing is that as the total market the 3 markets, Tolima, Bahia and Toluviejo market, we have around COP 466 million to recover. Out of these, COP 466 million, we had already made some agreements with a multilateral banking to have an important part of the treasury. So we are recovering money to provide service to the multilateral banking that is accompanying us in this process. So with the 3 markets, we had COP 462 million. Against the coverage, I can tell you here that we probably we have something of certain elements that we structure these parameters with 2 triggers. One of the most evident is the current of El Nino phenomenon because our interest was working with this into specific moments. So one of the triggers is specifically the input that is given by the system. And the second, basically, it's a construction that we did with the base price to be in a proper place. Those are the 2 parameters that we included inside our instruments.

Next, we have a question for Andres. Can you give an opinion about the expectations that we have 2024 and '25. And second comment on the future of alternative energies in the regulation.

We have an investment plan that is very interesting in the plan in our solar action. We are developing 300 megawatts, and we are ready to build with our business of 600 to 700 additional megawatts so that the 2026, 2027, we can have 100.3 megawatts. Many of them don't have a financial decision in the end, and that is the work that has been developed by their work team and solar photovoltaic by the office. Talking about transmission and distribution, we were mentioning in the conference that we had Careto, the substation. We are evaluating having some other callings in the year. And we are thinking about finishing the construction of Toluviejo and having all the engineering and the construction for the second line of Valle de Aburrá. So we are doing these and Level 3 and 4 from Tolima that are still in development process. That on that one hand, the progress with these 2 platforms that is the strong area. And we were telling you we had this offer that was located with the things that we already mentioned the reasons. And we are going to continue working strongly on improving and offering perhaps to the government and the CREG competitive offer that is interesting that the country needs. In the Peru business, we want to tell you that we continue moving forward with the final permits to continue constructing the wind park of Caracoli. We have done well, and we are very positive on what we are going to achieve in the last 3 months, the last permits. And with these, we can continue with the construction in the country. And we are still moving forward on setting up other type of complementary assets and setting out our platform type model for the development are our development strategy and investment in Peru that every time has more content and more thrilled with the capabilities that we find. And in the energy business, I want to make several comments. The first one, we have to talk with the regulatory topic, regulatory topic it's a situation that has to be managed in the best way possible. And we have to take the argument that allow this country to continue competing to allow us to continue developing businesses to have confidence because in the end, this is what is interesting for all our customers and consumers in general for their competitiveness in something so important like the energy supply. We're going to continue phasing these, and we have a high challenging quality. Last year, we had something really strong given the remain of the first semester, and we had some quality problems that we haven't been able to cater. Security has also been attach complicated for us or not had, but are plenty. There are areas where we're having issues on certain times. And we will have to continue working with the authorities. So to avoid customers seeing problems with the supply. So on these topics, we are going to be optimistic and working with all our efforts. We have some innovation front that the is 2 companies that are working in the Internet business. that comes well, Internet is overcoming 75,000 customers. We are reaching a positive point of sale, if you see a stand-alone company. We're still a tad behind. But we are still working on this, and we are developing the investment plan. We are highly thrilled and [ highly ] motion with the company, and we have the merit with our digital commercialized trader that you know that is giving the hard rock options that is around 7,000 customers is meeting their Service quality milestones is developing some new platforms for complementary services, and we are very thrilled with the acceptance that we have had from customers and especially from the constructors that are having great value for the work. So that is a picture of what we have so far.

Thank you so much, Ricardo. A question from Andres Moncado.

[Interpreted] I see the work of platforms, even though you talk about 2 years. Can you share more detail about the potential and the power of this area? And when is it going to be consolidated in the financial statements for Celsia?

These platforms started in 2019 strongly. That means that we have 4 or 5 years of coverage in each one of them. The decision that we made is that they are separated in vehicles from Celsia Colombia, and they are handled in this fashion so that we can have management strategies, development strategies that accommodate the type of asset that we are looking for. So I'm not going to tell you that you're going to see them integrated within the balance of Celsia Colombia. That's why our work is important. We have to do a high pedagogy work with investors so that you can know how we can see these investments. And what is the future impact that we're going to have for you, our shareholders. But in general terms, they are going to be separated.

Just to remind some numbers that we are managing in the asset management, talking about assets and EBITDA. It's almost COP 3.7 billion in assets, what we have integrated in each one of these operations. And in general terms, we were most COP 548 million on EBITDA, we had in the sum of each one of these platforms that we had and the volume that we have. So we are reaching the point where EBITDA management, the company is COP 4.3 million. And we are talking that this is shaping up to 35% of the EBITDA of the company. And this was in a period of 4 years, and the growth is coming in that right way. When we see the CapEx is almost twofold the CapEx that we have in the platform versus the energy business. So you're going to continue seeing the growth of the EBITDA that goes in that fashion. And I guess that creates a lot of enthusiasm for us too.

Well, let me tell you there are more questions. I see that we have a lot of participation, the people from Zoom. Julian. Congratulations for the results in such a challenging environment. In the balance, there is an important definition on things that we have in sale going from COP 2.9 billion to 2.66 billion. This is also reflected in a reduction of COP 1.2 billion in the equity. Why do we have a deviation of the assets and the equity in the balance?

We had already made a choice on disinvesting the assets that we had in Central America. With the elements that we have in debit means that for the end of 2022, with the information that we were mentioning, you're talking about noncurrent assets and others to reflect the assets and the liabilities that we were going to invest. So there was a movement that was given in 2023. That is the effect on the balance that the operation ended and these assets are not longer part of the financial state.

The fact that we had a reduction was almost $200 million in debt that we didn't consolidate that the buyer had and we had around $160 million in the cash an agreement for $50 million to pay $140 million, $150 million in cash.

How much of these do we have outside? And how much are we going to use clearly for the payment of the dividend that we told you yesterday and today?

Clearly, after receiving this information for treasury, we have to check how do we wear with the company for these assets.

How is going the construction of the wind parks in LaGuardia? Have you considered selling these projects due to the difficulties that you have had?

We continued with the process of licensing, and we haven't finished it yet. We are evaluating all the possibilities for the management of this project. The more surely, we're going to sell these or we're going to try to sell these. I guess that some investors are interested in to this. Let's hope that we can develop, please. Please remember that in the development of these projects, you have to hire the equipment almost 3 years in advance because the low production slots are very complex in different producers and we had the device already produced and ready for dispatch. That's why we have to move forward to Peru. And part of the things that we're going to do with the Caracoli project is that we're going to have a sizable amount of these things to install.

Are you going to see any quick entrance to Peru on the equipment?

We are also thinking about the development to see if we are capable of starting to develop wind outside Guajira. It's harder the work, but we are selling in technology in different places to see if these can work for us.

Thank you, Ricardo. In X space the people is asking us for the perspective from Bucaramanga. Where can we see the investment that has been done there?

We don't have a specific place where we are publishing our investment plan is not available yet. But what we can tell you is that investment for Visa mainly are focused on the large block. The first one is the construction, as Ricardo said, explanation of solar of 300 megawatts that we have in this moment in construction that is large farms where we highlight 133 megawatts in Tolima. We highlight 60 megawatts in Escobal and some other large firms around the country. There is a sizable amount of the CapEx that we have for this year, and that is around $300 million, what we can see in the solar farms.

Okay. But please, maybe you can tell us a bit about the cash flow that we have on this in this sense so that you don't misunderstood that CapEx.

I'm going to review that. That is done by the investment vehicle that we basically we have 50% and is not going to show other meaningful cash flow for this year. We thank the development efforts and all the work that we have done with our commitment to continue with our business and the structure that we have been developing in that vehicle. I have already made the work to check these elements on 2024. The other thing is the development of the infrastructure that we have, particularly of the large project that we have is this compliance element. And in Caoba started the process of sourcing of this investment to this company are COP 296,000 million plus some additional elements in the assets and transmission assets in Sahagún and some additional works in some direct connection elements that we have. Tesorito, we don't have anything yet specifically talking and talking about the Energy Services, we are considering investing less than COP 600 million, especially on maintenance activities and on the activities that we usually know in the business or service provision. That is only building these lines of low voltage for the neighborhoods for the new organizations in the different districts. Basically, those are better investments for the people.

Thank you, Esteban. There is an assistant that says what kind of progress have you had from the solar progress in Peru?

I guess that we're talking about the wind project. In Peru, we have a development team. We are mapping opportunities of solar parks that have moved forward. And also Esteban has worked the possibility that some of the parks that we have in parks that are Caracoli the possibility of the purchase of another park that they can be hybrid. That means that we can have a solar possibility to complete these. So we are doing full in Peru. We have a important strategy to have a comprehensive element that gives value to the investors.

This is linked with another question we had on the topic. How do you see the project that has been done? And have you considered the battery plan?

In Peru, we have been doing an interesting analysis as a told by Ricardo only to come with a project that we close these when we work with the different institutions and a wide and comprehensive strategy to work with this proven area. And something more attained in the exercise. There are many places where we have connection capability. This year, the office in charge of investments in the government of Peru is launching several visits for the transmission elements and working with services at the end of this decade to have new expansions in the solar area. We have also lied batteries in Peru, different on what we have. We have the capability of having some other resources, particularly, for example, with customers that is helping us with the power data so it's also part of the different alternatives that we are seeing that we are exploring. And in Peru is something interesting to what is solar technology, either solar technology in Peru is starting to coincide with an increase in the consumption at that moment. Peru was similar to Colombia. The consumption peak was in the morning and the afternoon. It has been increasing the consumption at midday. And of course, that matches their solar work. We see an interesting opportunity to this type of generation.

Okay. So in this moment, we're finished with our Q&A session. I don't see any other questions. There is one question in the system. In other parts of the world, we have seen that the solar farms have introduced smaller coats cattle. Have you thought about that?

No, with lesser cattle, we are thinking mostly about the systems. But we have an advanced pilot very interesting of agrotech farms is something that we have been doing in Tolima, where we are linking with small organizations of agricultural producers, and we are working with different vegetables so that these [ critsymbiosis ]. And the most important part, we have risen other crops. We've given the options that we can have the crops in the area, and we have a proper work. So there is an advanced pilot that is being done, and we hope that we can replicate this year later on.

This is interesting to be a lot of coordination at all type of crop, not everything can be done in this way, but we have been working on experimentation on this, but I guess that we can complete this. In Israel, they are doing this successfully. These are highest tractors and they work like greenhouses. But I understand the reference maybe where we're missing a storage with a prior question.

Okay. There are more participation. There is some comments to your work on Twitter and [indiscernible] says a great question. Thank you so much for the patience and information.

That's why we are here for. I don't know if you have any other final remarks. Now just to tell you, Ken, that we are quite happy with the reacquisition program where the small amount we have been able to recover prices. We were saying that almost 20% the decrease of the action from the moment that we started yield with the closure price of 20%. If these numbers were out, we talk about profitability of 30%. That will be great. We would missing that, but it is a great step for our shareholders. People are heavily committed to continue this reacquisition program and to do everything needed so the price exec is the proper one. And we can do a joint work, a joint effort to continue with the assembly to join us on March 20th because we are going to do our judicial deployment of the 2 worlds that are coexisting in Celsia. And we're going to invite you to an investment day that we hope that the invitation is going to be done in a week on the 1st fortnight of April so that you can join us, and we can provide all the detail of these 2 worlds that we have in Celsia so that you can understand and appraise well. Thank you so much. Thanks to all the Celsia's Group because we are reporting a year's work of 300 people that were really glad that we are selling kilowatts all day. Thank you.

Thanks to all the people that have participated with us. We wait for you on March 20 at 9:00 in the shareholders' assembly. We have the calling to some of the projects of the country and the ones that we have in the social networks because this information is going to be informed every single day with the results, how it fares in our social networks and LinkedIn and others. Thank you so much. And I hope you have a great day. See you on March 20th.