Grupo Argos S.A. (GRUPOARGOS) Earnings Call Transcript & Summary

Good morning, everyone. I would like to thank you for joining us today. This conference will be dedicated to presenting Grupo Argos' financial results at the close of the fourth quarter of 2025. Here with us today are Jorge Mario Velasquez, Alejandro Piedrahita, Rafael Olivella and the management team from Odinsa, the Real Estate business and Pactia. I would like to remind you that all the information for the quarter, along with the presentation we'll be using during the conference call is available on our website. To download it, go to the financial information menu and then to the report section. We are also broadcasting this results conference via an X Space I invite you to move on to Slide 3 of the presentation to begin the meeting, for which I give the floor to Jorge Mario Velasquez, CEO of Grupo Argos.

Good morning to everyone. Thank you, Carolina. I would like to express my special thanks to you all for joining us today. Today, we are going to present our results at the close of 2025 year of solid financial and operational performance for Group Argos and its businesses and also of strategic achievements that reaffirm our commitment and conviction in the company's ability to continue generating value for all its shareholders and stakeholders. The organization not only manages a robust base of assets in infrastructure and construction materials but it also has a portfolio of projects worth close to COP 10 billion to capitalize on the growing demand for these sectors throughout its entire geographical footprint. Let's talk about the performance of our actions in 2025. In 2025, the organization took a decisive step in its history with the execution of the spin-off project which ended the cross-shareholdings between Grupo Argos and Grupo Sura. As a result, our shareholders increased their investment in Grupo Argos by over 20% and they received 0.23 Grupo Sura shares for each share they held previously in the company. With this milestone, Grupo Argos' consolidated its position as a company 100% focused on construction materials and infrastructure with a robust portfolio of projects, our presence in 19 countries and territories with leading businesses in the sector and as a simpler and more specialized and focused issuer. The transaction created a virtuous circle with benefits for shareholders for Grupo Argos and for the capitals market reflected in the share performance during 2025. At year-end, the combined value considering the stake in Grupo Argos plus 0.23 Grupo Sura shares that each shareholder received was equivalent to approximately COP 30,000 per ordinary share at COP 23,000 per preferred share. These figures compared to the share price at the beginning of 2025 when Grupo Argos still included its investment in Grupo Sura represents an increase of 45% for ordinary shares and 47% for preferred shares. On Slide 4, the 2 bars show the series of transactions that from 2023 until the spin-off completed in July 2025 have transformed the structure of Grupo Argos. Throughout this process, which included its share swaps, the joint takeover bid for Nutresa, the liquidation of Sociedad Portafolio and spin-off of Cementos Argos and Grupo Argos with Grupo Sura. The company converted a portfolio composed of 45 million shares of Grupo Nutresa and 131 million shares of Grupo Sura valued by -- at that time by the market at COP 8.7 trillion. This is in May 2023 in results for the shareholders. On the one hand, the cancellation of [ 156 million ] treasury shares equivalent to 80% of its outstanding shares and the direct delivery of [ 197 million ] shares in Grupo Sura. Overall, the value of this portfolio received by shareholders amounts to over COP 15 trillion, an increase of over 70% compared to the starting point of these operations. In other words, Group Argos has not only moved towards a simpler structure that will enhance its future, but this transformation also gone hand-in-hand by an appreciation that its shareholders can now perceive directly, both through the shares they now own in Grupo Sura and through an increase in their participation in Grupo Argos derived from the cancellation of the treasury shares that I mentioned previously. On Slide 5, you can see the current composition of Grupo Argos' portfolio, which as of February 2026 amounted to COP 16.8 trillion, calculated as the market value of listed assets on the one hand and the carrying value of unlisted assets. Cementos Argos represents close to COP 8.2 trillion, almost half of the portfolio followed by Celsia with cop 2.9 trillion, Odinsa with COP 2.4 trillion. The Real Estate business with COP 2.1 trillion, Pactia with around COP 1 trillion. This is a portfolio that is 100% focused on infrastructure and construction materials, diversified by sectors and geographies and with assets that generate stable and predictable cash flows. Today, we highlight the flexibility of Grupo Argos' balance sheet and we can see Cementos Argos cash position as a catalyst to capture profitable growth opportunities. In particular, Argos materials, the aggregates platform with which Cementos Argos reenters the United States market is consolidated as a first step for profitable growth within an ambitious pipeline of projects. This portfolio, backed by a separate net debt of less than COP 1 trillion at a ratio of 0.7x net debt over EBITDA, provides the company with the ability to execute its business plan without -- to execute an ambitious business plan without compromising its financial strength. The company's vision in this new stage, that is 100% focused on infrastructure and building materials, was shared with our analysts and institutional investors of every February 19 and 20 at our Investor Day, where together with the management team of Cementos Argos, Celsia, Odinsa, the Real Estate business and Pactia. We covered the details of strategic advances, capital allocation, the growth goals and the priorities defined to consolidate our road map towards 2030. All Investor Day material is available on our website for consultation by all our shareholders and the market at large. Now let's move to Slide 6 of our presentation that summarizes the targets the company has set for 2030, structured around 4 main axes. First of all, to multiply the value of our portfolio by 1.9x. Taking Grupo Argos' arbitrage price per share from COP 21,000 currently to over COP 40,000 per share. Second, to multiply distributions to our shareholders by 2.3x going from a dividend of COP 6.68 per share to COP 1,000 per share. And third, increase financial flexibility by reducing net debt from slightly over COP 1 trillion to less than COP 300 billion, which is a reduction of over COP 700 billion. And fourth, deepen its asset management role by multiplying 3.7x the assets under management that generate fees from around $1.2 billion currently to close to $4.6 billion. This goals reflects the conviction that profitable growth, discipline capital allocation and simplification of the structure are the levers that will continue to enhance our investment portfolio. Along the same line of commitment to the transmission of value to our shareholders that I just mentioned. On Slide 7, you can see the evolution of the share buyback program that Grupo Argos has promoted in the 3 listed companies of the business group. On a consolidated basis, this program has executed over COP 1.9 trillion since its approval in 2023, generating a value of over COP 460 billion for the company's shareholders when considering the average price of which the shares have been bought back at the current market prices of those shares. Grupo Argos nearly 27 million shares have been bought back under the current program for over COP 390 billion at an average price of COP 11,084 per ordinary share and COP 9,487 per preferred share, generating an increase of 3.4% in ordinary share price and 2.4% in preferred share prices. This has been in addition to the shares that the company has received and canceled as a result of the transactions that put an end to the cross holdings with Grupo Sura and Grupo Nutresa that I mentioned before that are equivalent to increases for shareholders by eliminating 196 million shares of close to 20%. Beyond the direct return that these programs have represented, their execution has been a catalyst for the liquidity and market depth of our shares. Since the start of the program, the trading volume of Grupo Argos ordinary shares has tripled and that of its preferred share has multiplied by 33x. Given the success of the current program, which expires in March 2026, the approval of a new buyback program for COP 500 million over the next 3 years will be proposed to the Grupo Argos Shareholders' Meeting. Over the last 2 years, Grupo Argos has consolidated close to COP 12 trillion in income. In 2024, COP 7.6 trillion and COP 4.3 trillion in 2025, reflecting the company's capacity to generate value in its businesses and investments. Of note are the profits associated with the combination of assets between Argos U.S. and Summit Materials and the gain from the exchange of shares of Grupo Nutresa that were recorded in 2024. And for which they are added to the sales of Cementos Argos stake in Summit Materials and the materialization of the investment in Grupo Sura in 2025. This produced the above-mentioned results. Although these are nonrecurring operations that must be considered to analyze operating results, these are part of the company's work that continuously seeks to maximize the value of its portfolio for the benefit of its shareholders, plus analysis of the figures below also includes the evolution of recurring earnings from our businesses. which is the most accurate indicator of operating performance rather than simply the consolidated figures without adjustments for nonoperating items. For details of the main adjustments to be considered for 2024 and 2025, please see Slide -- on Page 8 of your presentation. Looking at the consolidated results for 2025, Grupo Argos booked revenues of COP 11.7 trillion, a 7% reduction compared to 2024 and EBITDA of COP 2.9 trillion, 10% year-on-year growth and an EBITDA margin of 25%, 400 basis points above 2024. Income of COP 4.3 trillion and net income to the majority shareholder of COP 2.8 trillion. When looking at the pro forma financial statements, making the adjustments mentioned above, EBITDA has grown 60% and consolidated net income was COP 1.1 trillion, 3.4x greater than in 2024. Regarding the separated financial statements for Grupo Argos recorded revenues of COP 2.5 trillion and EBITDA of COP 1.8 trillion and a net profit of COP 4.6 trillion, which is historic for the company, which includes COP 3.2 trillion in income corresponding to the closure of the spin-off project, which represents growth of 84% compared to the COP 2.5 trillion in income in 2024, which when incorporating the nonrecurring profits described above because the second consecutive year in which Grupo Argos achieves historical income levels. Thus, in the consolidated financial statements when adjusted and looking only at the results derived from our all recurring operations, it is evident that the separate pro forma revenues for 2025 were COP 1 trillion, growing 86% year-on-year. EBITDA was COP 694 billion, 4x higher than in 2024, and net income was COP 449 billion, 11x higher than pro forma results for 2024. In summary, although the results for the year show effects from extraordinary transactions, the material profits from investments actively managed for years when adjusted for these effects, the operating results of the infrastructure business are solid and show growth compared to comparable figures in 2024. This is confirmed by the fact that after the spin-off, the company received ratification from credit rating institutions had a credit rating of AAA, the highest of the local skill [indiscernible] ratings, S&P Global and Fitch ratings, which is a sign of the structural soundness of our indebtedness. I would now like to invite you to look at the results of our businesses on the slide that's on Page 12. Cementos Argos ended 2025 with a clear focus on the profitability of its operations and the transmission of value to its shareholders. During the year, the company distributed ordinary and extraordinary dividends of close to COP 1 trillion executed over COP 1 trillion in buybacks, including 65.6 million shares at a price of COP 13,659 per share, equivalent to 5% of its outstanding shares and spun off its shares in Grupo Sura for a total of COP 3.5 trillion in distributions to its shareholders. Grupo Argos participated in the buyback mechanism and received cash revenues of COP 493 billion, which it used to reduce its net indebtedness. In parallel, the company made progress in reentering the U.S. market with the creation of Argos materials, its aggregate export platform aimed at the coastal markets of the Gulf of Mexico and the Southeast of the country where there is a structurally unmet demand for a product that offers better margins and higher multiples than cement and concrete. During the fourth quarter, the operation was ready for test shipments and quality results were obtained that maintain the DOT certification process in the destination states. The company plans to develop a potential production of over 10 million tonnes per year and an incremental EBITDA, which we hope -- which we expect will be close to USD 200 million by 2030. With these achievements, Cementos Argos successfully ended its Sprint 3.0 program. And with the presentation of its result of 2025, the company announced the launch of a new program called Sprint 4.0, which focuses on consolidating its presence in the United States and increasing its stock's liquidity. The program plans to -- as was mentioned previously, the program plans to maintain an EBITDA margin of between 24% and 26%, bring EBITDA of its operations in Latin America to close to $400 million and raise its return on capital employed above 60%, distribute close to COP 720 billion in dividends this year and launch and scale the aggregates to between 2 million and 3 million tonnes with positive EBITDA as early as 2027. The company is also closely monitoring developments in Venezuela. Cementos Argos has the experience, relevant experience in that market and in that industry, and it has the capabilities required to resume its position in that country and to continue to advance in the judicial process of claiming the expropriation of its assets in 2006, which has never been paid nor recognized with the openness to explore all alternatives to achieve effective compensation and to play an active role in the reconstruction of a country that has very high growth potential in construction and infrastructure as part of its reconstruction process. Moving on to the financial results for the year. Cementos Argos recorded consolidated revenues of COP 5.1 trillion, 3% lower than the previous year with an adjusted EBITDA after eliminating nonrecurring activities of COP 1.28 trillion, growing 7%, reaching a margin of 25%, which is 215 basis points higher than the previous year. In the fourth quarter, revenue was COP 1.3 trillion, a reduction of 2.5% compared to the same period in 2024. And adjusted EBITDA stood at COP 347 billion with a 27.2% margin. In turn, volumes showed signs of stabilization. Cement shipments reached to 2.1 million tonnes, 3% growth compared to the fourth quarter of 2024, while concrete shipments stood at 599,000 cubic meters, growing 2%. The recovery of the industry in Colombia accelerated throughout -- especially at the end of the year, while strong economic fundamentals supported consumption in -- high consumption in Honduras and Guatemala and demand remained stable and dynamic in the Dominican Republic. The company maintains a disciplined, efficient operation with a robust financial position which allows it to continue focused on capturing growth opportunities in its key markets and generating sustainable value for all its shareholders. Now please turn to the results of the energy business on Slide 14. Celsia ended 2025 capitalizing on the normalization of weather conditions with more efficient and profitable generation supported by greater water supply and lower thermal requirements. There is a great difference in the makeup of generation in 2024 and 2025. 2024 was more thermal with higher costs. And in 2025, there was greater hydro generation that provides improved margins as we will see below. During the year, the company put into operation Careto, its first wind farm in Colombia with an installed capacity of 9.6 megawatts located near to the city of Barranquilla. This project demonstrates the potential of the wind resource in regions beyond La Guajira and reinforces the organization's commitment to diversifying its energy matrix through unconventional renewable sources. C2Energia, the investment vehicle that develops and build solar farms of more than 8 megawatt capacities ended the year with 480-megawatt potential in operation which generated 544 gigawatt hours of energy, 7% higher than in 2024 as a result of the maturation of the portfolio and its operational management. In addition, it has a pipeline of 112 megawatt potential currently under construction and 410 megawatt potential in early stages of development, which will allow it to, before 2027, achieve the goal that we had given ourselves of having built and installed 1 gigawatt of operational solar capacity in Colombia. On the international front, Celsia advanced in the development of its renewable portfolio which has invested over $1.2 billion in Peru. 28-megawatt [ Carvelli ] farm is 68% complete. It will come into operation in the second half of 2026. In addition, in that country, the [ Hidromanta ] hydroelectric plant is in operation and delivering energy through Celaris Energy, Celsia marketer in Peru that serves basically the industrial segment. Likewise, the company announced the creation of Atera in partnership with Brookfield which designs [indiscernible] installs and operates energy efficiency solutions for industries and trade. This platform was aboard with over 500 active customers an investment plan of over $500 million by 2030. It contributed to reducing Celsia's net debt by close to COP 400 billion. With the launch of this company, the assets under management of the energy business manager reached approximately $1.67 billion. On the commercial front, Celsia served over 1.3 million customers and delivered over 3,900 gigawatt hour during the year. Now let's look at Celsia's financial results, which during the year, received COP 5.4 trillion in consolidated revenue. EBITDA was COP 1.7 trillion, 12% and an EBITDA margin of 31%, 900 basis points above levels for 2024. In the fourth quarter, consolidated revenue stood at COP 1.3 trillion and EBITDA was COP 345 billion with a 28% margin. The year-over-year reduction in revenue is mainly due to price normalization and improved hydro generation compared to a 2024 that was impacted by the El Nino phenomenon. At the end of 2025, Celsia's consolidated net debt stood at COP 4.68 trillion with a net debt-EBITDA ratio of 2.8x. The company plans to bring its debt below COP 3.8 trillion in 2026. I would like to invite you to look at the results statement for Odinsa. This can be found on Slide 16. Odinsa closed 2025, consolidating its evolution as an investment platform in road and airport concessions, together with Macquarie Asset Management. On the airport platform, El Dorado International Airport mobilized 45 million passengers in the year, a slight reduction compared to 2024 by capturing a higher proportion of international passengers and remaining the main hub for connecting passengers and cargo in Latin America. In a consolidated matter, the airport managed by Olisa mobilized 50 million passengers. And on average Colombia moved through one of our airports once per year. The El Dorado Max project advanced in its feasibility phase with an estimated investment of COP 10 billion to expand capacity to 67 million -- sorry, COP 10 trillion capacity to 67 million passenger per year is expected in 2026, a feasibility advancing in the award process between 2027 and '28 will be approved. Added to this commitment is a private initiative of the new Cartagena airport with an initial capacity of 11 million passengers and an estimated investment of COP 6 trillion, and this will complement the airport assets of this country, to convert it into a regional and global connection hub. On the roadway front, the platform recorded average daily traffic of 112,000 vehicles in 2025, growing 4% compared to the previous year. The second phase of the Tunel de Oriente completed its financial closure for COP 1.8 trillion and its execution is progressing at over 20%. During the year, the Fernando Botero roadway interchange was commissioned in advance, which optimizes connectivity between Tunel de Oriente, the airport and the municipalities of Rio Negro and [indiscernible]. A key milestone in 2025 was the creation of Odinsa Aguas, a platform, which as we had announced is an investment vehicle in water infrastructure that complements its roadway at airport operations. As a first step, a contract was signed to acquire TICSA in Mexico for approximately $84 million. This is a company with more than 40 years' experience, a presence in 20 states at EBITDA of close to $29 million in 2024. This acquisition, which we expect to be completed in -- or concluded in coming weeks, will be funded primarily by dividends received from Opain and Quiport in 2025, including process from the successful debt restructuring of Quiport Airport, Mariscal Sucre Airport comprised of $200 million syndicated loan and $300 million in international bonds, which registered an over demand of 7.5x. This issuance obtained a B rating from Fitch and Standard & Poor's, which is higher than Ecuador sovereign bonds, which reflects the international markets trust in Odinsa's management and in the strength of an asset that has been consecutively positioned as the best regional airports in South America according to Skytrax. On the financial front, Odinsa presented solid results driven largely by the higher valuation recorded by the equity method of the private equity fund associated with higher asset values due to the second stage of the Tunel de Oriente. Consolidated revenue in 2025 stood at COP 292 billion, a growth of 46% compared to 2024, while EBITDA was COP 190 billion, an increase of 68%. Consolidated net income amounted to COP 148 billion, an increase of 65% year-on-year. Moving on to operating results. In the fourth quarter, the roadway platform recorded a total traffic of 10.9 million vehicles, growth of 3% compared to the same period of the previous year. Of note is the growth in Autopista de Cafe [indiscernible] both of which grew 6% and Tunaoriente, which grew 5%. In the airport platform, total passenger traffic during the quarter reached 12.5 million passenger of which 11.1 million to correspond to the El Dorado Airport. Although Opain recorded, as I mentioned before, a 9% reduction in passengers explained by a change in airline seat supply strategies. Its financial performance was positive with 33% growth in EBITDA and 85% growth in net income thanks to better fares and higher unregulated revenue. In turn, Quiport mobilized 1.3 million passengers, a growth of 5% and inaugurated, at the end of the year, the expansion years, the expansion works of the airport for $74 million that will expand its processing capacity from 5 million to over 7 million passengers per year. In the real estate return business, you can detail of this slide. Effective gross revenue was COP 125 billion, growing 32% year-on-year and EBITDA for the quarter was COP 65 billion with an increase of 93% year-on-year. However, after adjusting for divestments, effective gross revenue and EBITDA decreased by 1%. In terms of the same assets for the accumulated year, effective gross revenue and EBITDA grew 7% and 8% compared to 2024. It should be highlighted that at the end of the period, the fund had a non-hotel portfolio occupancy of 97%, representing an increase of 360 basis points compared to the previous quarter. So far this year, with the cutoff of December 2025, the contracts for 121,000 square kilometers were renewed and new contracts for 74,000 square meters were placed. Compared to the fourth quarter of 2024, the commercial sector recorded the highest growth in effective gross revenue with an increase of 11.4% followed by the office sector with an increase of 6.5%. In the retailers, sales per square meter of brands grew 5.7% year-on-year, while total traffic remained stable. As for the Hotel segment, RevPAR growth of 33% was recorded compared to the fourth quarter of 2024, standing at COP 228,000. This result is mainly attributed to an increase in the occupancy of Movich 26 in Bogota, which grew from 50% to 69%. Finally, The fund continues to actively manage its capital structure optimization. I want to highlight that over the last 12 months, Pactia has reduced its debt stock by 12%, closing the year with a loan-to-value ratio of 28.9%, which is equal to a reduction of 520 basis points compared to 2024. I invite you now to briefly move on to the real estate business figures, which can be found on Slide 20 of your presentation. However, during the fourth quarter of 2025, the real estate business had cash revenues of COP 150 billion, an increase of 82% compared to the fourth quarter of 2024. With these results, the year ended with cash flow revenues of close to COP 250 billion and a net cash flow of COP 70 billion which is 14% higher than figures for the previous year. EBITDA for the quarter was positive and higher than that recorded in the same period of the previous year from a negative result in 2024 to a consolidated EBITDA of COP 49 billion in 2025. During the quarter, 2 lots were needed in Barranquilla, which added to the sales of other periods allowed at the year to end with COP 186 billion in nonsocial housing businesses in Barranquilla and transactions that introduced 1,710 new housing units to the market. In Baru, the investment cycle at the Sofitel Baru Cartagena was completed with the sale of our stake, which provided an annual effective return of [ 16% ] for us. From a strategic perspective, Sofitel fulfilled its role as a key anchor of Grupo Argos 1,100 hectare master plan on this island, helping to close 3 additional land deals for hotel projects in Baru. And this highlights that the potential of the Baru island as one of the most attractive tourist destinations in the region. On the sustainability front in terms of a climate change, I am happy to confirm that we fulfilled the commitments we had made for 2030 as a business group in advance what had we achieved a 40% reduction in CO2 equivalent emissions intensity per million of consolidated revenue. And simultaneously, we achieved a 64% reduction in absolute emissions compared to a target we had given ourselves 37%. These results were complemented by recognition that we received in the S&P Global 2026 Yearbook, where Cementos Argos was included in the top 1% of construction -- of global construction materials industries with a score of 86 points over 100. Grupo Argos is placed in the top 5% with 84 over 100; Celsia, the top 10% of electricity companies with 85 over 100 point; and Odinsa was made a member of the year, but for the first time with 71 over 100. In addition, Grupo Argos has consolidated its position in the top 10 of Merco ESG for the sixth consecutive year ranking sixth on this occasion. These recognitions encourage us and reaffirm that sustainability is a competitive advantage that supports financial results and strengthen the confidence of institutional investors in our organization. To close and finally, as is public knowledge. This will be my final earnings call as CEO of Grupo Argos. I would like to thank -- deeply thank all the shareholders, analysts who have accompanied us over the years and whose trust has been fundamental to execute together with a marvelous team, the road map that we drew up in 2016. And with great satisfaction, I must say that we completely fulfilled the commitments and the targets that we had given ourselves. Grupo Argos is now is well prepared, deleveraged, focused with a pipeline of projects that is powerful in fundamental industries that are very powerful and hand-in-hand with a marvelous human team that can move this company to a new stage to continue to create value for all the shareholders and for the community at large. I'd like to take advantage of this moment to deeply thank Alejandro Piedrahita, the company's CFO, who is here to my left, with whom I also was lucky enough to walk down this path for the last [ 8 ] years to build a great part of the company's strategy and to develop the strategy that you can see materialized in fact and in data. This has been done impeccably at a dedicated manner, professional manager manner. With superlative energy and we have been able to materialize the achievements that have been expressed here I also had the privilege of the accompanied by an exceptional human being throughout this period, which makes me doubly happy. So I want to publicly also thank him, reiterate my admiration, my affection for the great professional and the great human being he has been throughout this time, and I wish him the best at his future. Right. So we close the presentation with this, and I'd like to give the floor to Carolina to receive any questions you may have.

[Operator Instructions]. The first question comes from [indiscernible]. There are 3 questions. The first one is asked what is the expectation of the ROE and the net profit of the company for 2026? What are our expectations regarding the Pactia business? And the third question is, if we could give him more information regarding the plan the Mexican government has to empower the water treatment business in this company and how the Odinsa will benefit?

I'm going to share the answers so that we can hear from people who know this. I'm going to ask Alejandro to update us on the expectations on ROE and net income expectations. [indiscernible] I'd like to ask Mauricio who has good knowledge of the investment on Argos.

So thank you very much. First of all, I would like to start by explaining the evolution of the ROE in 2025. It's very important that on a level of separated equity and what boost COP 18 trillion to COP 11 trillion. When we compare that with the profit that was generated in the separated balance sheet, which was COP 3 trillion that says that our ROE was close to 42%, which is important shared equity. So obviously, there are special transactions, a little of what we have tried to focus on in many of our conversations and which are related to the variable compensation of executives with indicators that are more focused on return on invested capital. ROIC last year was 10.5% with a capital cost of 9.9%. So the company is generating volume, which is of the order of close to 60 basis points. The strategic objective of this company is that ROIC is above 200 basis points which is the best practice internationally. As regards to projected figures for 2026, our ROIC target is close to 11%. 10.6%, 11% of ROIC and maintaining our capital costs, which we think will be close to 9.9%, 10%. So the goal is to move from 60 basis points to 100 basis points of value generation of return on invested capital. That is goal for 2026. And ROIC is the metric that we're using in the company rather than ROE.

Okay, Andres?

To talk about the perspectives of Pactia, we need to understand the context that we are in this real estate returns business has different cycles and the cycle that we're undergoing right now of high interest rates has some implications of main one of these is that the existing assets, the good assets can be -- have better returns because of the cost of the cost of the business more difficult or there are less new projects than have existed traditionally and occupations in the sector and prices are very good. And so this favors Pactia with stabilized assets and we are trying to increase returns on those assets so that we can -- so the fund can achieve certain indicators that could make us a very attractive option when interest rates open up the field for new investors to move into this business. This is cyclical. We have very good assets right now, but it's difficult to attract investment. But if everything goes up and down, then this cycle will invert, and there will be more and more capital to invest in this and that where we're becoming positioned to be the most attractive option for anyone who wants to become a part of a private real estate equity fund. And finally, we are selecting the assets that we want to divest in. And the money from this has 2 main usages is: One for paying debt; and two, for moving into better assets that will improve the fund's yields. And the return on debt, the reduction of debt that was mentioned before, is allowing us to improve our annual cash generation and that improves the funds indicators and returns for investors.

Thanks, Andres. And finally, Mauricio, if you can give us your point of view on the plans, the overall plans for the management of water resources.

Thank you very much, Jorge Mario. Thank you, Santiago, for your question. The policy and the new law that is -- but in Mexico for water is favorable for a company like TICSA. TICSA over so many years has accumulated important experience. This policy has 3 focuses. The first one is cleaning rivers and treatment. Water treatment is going to be fundamental for this and the level of demands for spills into rivers are [ so rivers is going to be very high. ] It hardens policies for use and disposal of water by large industries and this means that a professional provider of this type of services will have a greater free flow for action. And as regards to water concessions, wish to clarify, let's remember that we are not a part of water concessions, but we are contributing water to the system through reuse and treatment. This has a direct impact on agricultural industry, not on other industries. So is policy that is very favorable to us. On the other hand, the Mexican government is interested in promoting 9 industrial zones to create conditions on the border. And this goes to the question that Jorge Mario asked. And this is providing water to the large-scale industries that are being installed in the country. Today, on the northern border between Mexico and the United States, there is a current treaty that obliges the United States to supply water during part of the year and Mexico during the other part of the year. And water scarcity has been such that there are a number of investments that are being implemented there to make sure that water is not a restriction for a large industry. So finally, the policy is favorable to someone like TICSA, which has a history of over 200 water treatment plants and currently operates at 10, which is what we're acquiring in the first phase, but they have an experience of over 200 water treatment plants throughout the country.

The question is from [indiscernible] he asks us what do we expect from the impact on equity regarding the profit of [indiscernible]

We give the floor to [indiscernible] who has done preliminary estimation of this cost, so he can talk about it.

Thank you very much. [indiscernible] of equity tax will be on 1st March 2026, the estimations, the net fiscal equity of Grupo Argos consultant will be around in the case of separating Grupo Argos, we are estimating an impact of COP 9 billion. These will be paid during 2026, a single time in 2 installments in April and May this year.